JUNE 18 - 24, 2018 | crainsdetroit.com
DEVELOPMENT
FORD’S FUTURE Train station to be part of new transportation model By Chad Livengood clivengood@crain.com
Ford Motor Co. aims to have 2,500 employees in Corktown and wants to renovate the Michigan Central Station by 2022 as part of a Detroit campus focused on developing self-driving vehicles of the future, company Executive Chairman Bill Ford Jr. said. The Ford scion and great-grandson of the company’s founder envisions creating an autonomous-vehicle technology hub in Corktown that goes beyond his own company, with up to 2,500 additional workers from suppliers and partner companies, totaling 5,000 workers in Ford-owned facilities in Detroit’s oldest neighborhood. “I would love for this to be like the Sand Hill Road of Michigan, where crainsdetroit.com
entrepreneurs, startups (and) partners all want to come and be part of this creation process,” Ford said, referring to the California road where venture capitalists fueled the meteoric rise of Silicon Valley. “That would be amazing to me, and I think that can happen. Because the future of mobility should be created in Detroit — and I believe it will be.” Bill Ford detailed the automaker’s plans for transforming Detroit’s long-vacant train station into a hub for both autonomous vehicle development and deployment during a wide-ranging joint interview with Crain’s Detroit Business and Automotive News ahead of a public event Ford Motor Co. is hosting Tuesday outside of the train station. SEE FORD, PAGE 28
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Michigan Central Station: A look back By Bill Shea bshea@crain.com
JACOB LEWKOW FOR CRAIN’S
Bill Ford: “The future of mobility should be created in Detroit.”
LONNIE A. STUMP/ ORBITAL TECHNICAL SOLUTIONS
The 105-year-old Michigan Central Station for years was the co-star of Detroit’s notorious era of “ruin porn” — it shared top billing with the sprawling decay of the Packard plant. But the dilapidated train depot is finally ready for a new solo close-up in a career revival. News that Ford Motor Co. has bought the long-vacant train station for use as office space means a thorough renovation and a second life for a building that came to symbolize, like the Packard plant and thousands
of crumbling buildings and homes, a gutted Detroit. Ford’s real estate maneuver, bringing it back to the city where Henry Ford started his eponymous auto company, may also mean that the office tower could be regularly and fully occupied for the first time since the edifice opened in 1913. In its heyday, rail companies used a few floors, but the upper stories were rarely used. It’s worth a quick look back at how we got here before the station’s next chapter is written. SEE STATION, PAGE 29
What’s next for Adient Page 8
‘Fortnite’ player gets $500k/month Page 3
US-Canada trade war hurts Michigan Page 9
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MICHIGAN BRIEFS
INSIDE
From staff and wire reports. Find the full stories at crainsdetroit.com
Consumers Energy to close coal-fired plants
Consumers Energy Co. plans to close two coal-fired units at its Karn Generating Complex near Bay City by 2023 as part of a plan to eliminate coal and reduce carbon emissions 80 percent by 2040. The Jackson-based utility announced last week it was submitting its Integrated Resource Plan to the Michigan Public Service Commission for approval. The plan outlines how the company intends to meet goals for clean energy. Consumers and Detroit-based DTE Energy Co. committed to a 25-percent renewable energy goal by 2030 under a deal with billionaire environmentalist Tom Steyer, who campaigned for a voter-imposed law on clean energy. In the Integrated Resource Plan, which electric companies are required to submit every five years with the MPSC under the state’s 2016 energy legislation, Consumers laid out plans to generate 37 percent renewable energy by 2030 and 43 percent renewable energy by 2040. Now, 11 percent of its energy is from renewable sources. It outlined concrete plans last Wednesday to dismantle its coal-fired operations. Karn 1 and 2 at Karn Generating Complex are to be retired by
2023. Campbell 1 and 2 at Campbell Generating Complex near Grand Rapids would close in 2031. The last of its coal plants, Campbell 3, would close in 2040. In April 2016, the company retired seven coal plants, including two others at the Karn complex. The Integrated Source Plan indicates the company will add 5,000 megawatts of solar energy through the 2020s and invest in wind and battery storage. “Solar is available when Michigan needs it,” said Patti Poppe, president and CEO of Consumers Energy and parent company CMS Energy, during a conference call with media. “When Michigan needs the most power is during the hot summer days.” The Karn 1 and 2 closures will impact about 300 workers. The company will work to transition employees to other locations within the company, spokesman Brian Wheeler said. About 600 people work at the utility's remaining coal-fired power plants. “The company will be working actively to care for our co-workers through this transition,” Poppe said in a statement. “We plan to support Hampton Township and the Bay region as they re-imagine the local economic landscape after these units are retired.” DTE Energy is on a similar mission to cut coal and reduce emissions after the deal with Steyer. The utility com-
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CONSUMERS ENERGY
The Karn plant in Bay City is pictured on the left side of this photo. Consumers Energy has already closed the J.C. Weadock facility on the right side of the photo.
pany has set a goal to rid itself of coal-burning power plants by 2040 to reduce carbon emissions by 80 percent by 2050. Michigan's current energy law requires the two big utilities to generate 15 percent of electricity from renewable sources by 2021; they met a previous of mandate of 10 percent in 2015.
Legislature approves $56.8 billion budget
The Republican-led Michigan Legislature put the finishing touches on a $56.8 billion state budget last week that includes a sizable increase in base aid for lower-funded K-12 dis-
tricts, more spending on roads and sets aside $100 million for Gov. Rick Snyder’s plan to link students with in-demand jobs, the Associated Press reported. The two main budget bills won approval on mostly party-line 63-46 and 66-43 votes in the House and 33-2 and 25-11 votes in the Senate. These are “great investments, but we’re also being very responsible with the investment of the hard-working taxpayer dollars,” said Senate Appropriations Committee Chairman Dave Hildenbrand (R-Lowell). “It’s a reduction in spending over (the) current year. Because of the strengthening of
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the economy, more people are working and (there is) less demand on social welfare services.” While majority GOP legislators touted record spending on K-12 schools and road infrastructure, Democrats criticized the lack of a special fund to compensate recipients of unemployment benefits who were falsely accused of fraud and also faulted a provision that could lead to teacher cuts in districts with low-performing schools that do not improve. “This might be a little bit bigger crumb than it was last year. It is still crumbs to be offered,” said Rep. Donna Lasinski (D-Scio Township, near Ann Arbor).
CORRECTION A story on Page 1 in the June 11 issue incorrectly reported that Visteon Corp. and its former CEO Tim Leuliette agreed to a settlement before presenting their cases to an arbitrator.
Notable Women in IT/Tech are on the front lines of cutting-edge technology development in Michigan. They protect network systems from ever-present cyber threats. They mentor and recruit other women in the technology field and put community service
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above all else. Crain Content Studio, the marketing storytelling arm of Crain’s Detroit Business, will name the 2018 Notable Women in IT/Tech in a special section on August 13. In that report, we’ll profile women in the information technology industry who are considered leaders in their workplaces and in the community.
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M&A
Plante Moran expands west with EKS&H acquisition By Tom Henderson thenderson@crain.com
Plante Moran is expanding its U.S. footprint from the Midwest to Colorado and announcing Monday it acquired Denver-based EKS&H, an accounting, consulting and wealth-management firm. The EKS&H team of more than 300 CPAs, 150 consultants and 750 staff officially joins Plante Moran on Oct. 1. That will make Plante Moran the 11th largest firm of its kind in the U.S., with more than 3,000 professionals in 27 offices, adding Colorado offices in Denver, Boulder and Ft. Collins and clients throughout the Western United States. EKS&H was founded in 1978 and is the largest CPA firm in Denver. Currently, Need Plante Moran to know ranks 15th. Until J Acquisition to now, its U.S. footboost Plante print was limited Moran to 11th to Michigan, Ohio largest firm of its and Illinois, with kind international offices in Shanghai, J No money China; Monterchanged hands in rey, Mexico; deal Mumbai, India; J EKS&H staff join and Tokyo, Japan. Plante Moran on The combined Oct. 1 revenue for the two firms in 2017 was nearly $626 million, with $106 million attributable to EKS&H. “We’re really excited about this,” Jim Proppe, Plante Moran’s managing partner, told Crain’s. “EKS&H and Plante Moran are known as the two great culture firms in the profession, and we’ve known each other a long time. It was the late fall when we first started seeing if this made sense; and, by January or February, it was clear that we were really aligned with each other. SEE ACQUIRE, PAGE 30
MUST READS OF THE WEEK A boost for Michigan’s entrepreneurs Great Lakes Angels partner to grow funds and new companies. Page 10
NONPROFITS
Making a business out of ‘ugly produce’
Hungry Harvest held its launch party at Eastern Market last week. JACOB LEWKOW FOR CRAIN’S
Two food-box companies market otherwise unmarketable surplus food By Sherri Welch
Need to know
Two food-box subscription companies have come into the Detroit market over the past couple of months, selling produce and other food that retailers won’t touch. Both are buying local produce that’s misshapen or otherwise unmarketable and other surplus food that would go to waste — the same types of food that nonprofit food
“ugly” produce have moved into the market over the past couple of months
swelch@crain.com
JJTwo food-box companies marketing
JJThe companies are sourcing the same types of food from some of the same places where area food rescues and food banks get donations JJSome say there’s plenty of surplus food to support both models; others suggest they should align efforts
rescues and banks target to help feed the hungry. Is there enough surplus food in the region to sustain both models? Baltimore-based Hungry Harvest began locally sourcing surplus produce and other products for its food boxes and selling them in Detroit and Ann Arbor this month. It followed Toronto-based Flash Food Inc., which brought its Flashfoodbox with surplus produce and
protein through a partnership with Tyson Foods, into the Detroit market in late April. The food-box companies are paying distress rates for “ugly produce,” apples that grew misshapen after a hail storm, oversized carrots or Brussels sprouts that turned purple after a cold snap and don’t meet retailers’ and consumers’ ideal vision. SEE PRODUCE, PAGE 27
SPORTS BUSINESS
Metro Detroit native world’s top ‘Fortnite’ player By Bill Shea bshea@crain.com
Impossibilities start to feel like inevitabilities Managing editor Michael Lee takes a look at how Detroit’s comeback is removing skepticism about big projects downtown. Page 6
Welcome to Tilted Towers. You’re dead. And if you’re lucky, you can tell your friends Tyler Blevins killed you. For the uninitiated, Tilted Towers is the name of a city in the wildly popular video game “Fortnite,” and Blevins is the metro Detroit native who is the best and most famous — and probably wealthiest — professional “Fortnite” player in the world.
Better known by his online moniker, Ninja, 27-year-old Blevins, who was born in Taylor but now lives in Chicago, has confirmed in interviews that he’s Tyler Blevins earning about $500,000 a month from subscribers to his Twitch feed, where audiences pay
to watch him and others compete at video games. “Fortnite” — specifically its Battle Royale version — is a free game played by about 3 million players at any one time on the PlayStation 4, Xbox One, PC and mobile platforms. It pits players against 99 others on a mythical post-apocalyptic island that’s littered with hidden glowing crates filled with weapons and gear. There is a variety of terrain on the island and alliteratively named places such as Tilted Towers,
Tomato Town and Moisty Mire. Players skydive from the “Battle Bus” to the island using a glider for the final descent, and the goal is to survive, scavenge materials to build fortifications and be the final player (or final team in the duo or squad variations). What makes the game unique is that an ever-shrinking deadly purple storm forces all players into a steadily smaller circular “safe zone” on the island. SEE ‘FORTNITE’, PAGE 26
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CREATING AN IMPACT INSIDE, OUTSIDE OF WORKPLACE Centria Healthcare’s mission-driven culture places high priority on social responsibility Story by Marti Benedetti for Crain Content Studio
When employees take a position with Novibased Centria Healthcare, they are signing on to more than a job. They are committing to the company’s mission-driven culture that encourages volunteering in the community. “As the nation’s fastest-growing provider of Applied Behavior Analysis (ABA) for children with autism, each and every employee is passionate about helping others,” said Matt Blouin, marketing director at Centria Healthcare. “What’s even more impressive is that the leaders at Centria are taking it one step further by encouraging employees to volunteer and give back to the community outside of our normal business operations.” Employee volunteering also provides team-building opportunities for Centria’s staff. Centria Healthcare has in place three separate arms of volunteering: ■ CentriaCares, an initiative that operates only in Michigan, provides volunteering opportunities with organizations such as Play-Place Autism and Special Needs Center in Sterling Heights, the Friendship Circle of Michigan in West Bloomfield, Art Road in Detroit and Gleaners Community Food Bank. CentriaCares launched in 2017. ■ Centria’s Activity Days offer opportunities for company employees to volunteer at events designed to bring together friends, family and the community. Those events include Autism Friendly Movies at Emagine Entertainment theaters and Superhero Autism Activity Days in Texas, New Jersey and Michigan. ■ Centria’s third arm is heavily involved in collaborating with other organizations nationally to help children with autism and their families, includ-
CHANGING LIVES CentriaJune.indd All Pages
ing sponsorships, partnerships and special events. “Our engagement in the community is an important part of who we are,” said Rick Loewenstein, chief strategy and growth officer for Centria Healthcare. “Every day we impact the lives of the people we serve and (through volunteering) impact the lives of the people who work here.” Loewenstein and Blouin said the volunteerism touches all employees -- from those working with children with autism to those employed in billing and payroll or human resources and training. CentriaCares has about 300 volunteers among its employee ranks, who are each encouraged to dedicate four hours, or a half of a work day, to volunteering each year. Many of them go further by volunteering after work or on weekends. “People want to do more than their allotted time,” Loewenstein said. Client service manager Tina Beard summed it up. “I love this about the company. It is great to give back. There are so many programs that are in need of our services.” Recently, Beard was involved in a food drive for Lighthouse of Oakland County in Pontiac. She also serves on the CentriaCares committee, bringing new ideas to Centria about opportunities and organizations that are seeking volunteers from the community, such as the Detroit Institute for Children. Each year, Centria hosts 10 Superhero Autism Activity Day events throughout the country. The events are free and open to the public to attend, and serve as a safe space for kids with autism and their families to enjoy a day of worry-free fun and adventure. Ric Geiger, Centria client service manager who, on certain Activity Days, goes under the guise Spi-
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der-Man, dons his outfit and shows up at locations such as a Southfield fitness center or Dearborn elementary school gym to engage with children with autism. The event often comes with a bounce house, an inflatable obstacle course, arts and crafts projects, and a photo booth. Geiger does this on his own time – on weekends. “The volunteering provides two things for me: I get outside the operation and I engage with the families that we help,” he said. “One of the struggles autism families have is they are limited in going out (together). We provide an autism friendly environment.”
Theater experience for the whole family The same goes for Centria’s Autism Friendly Movies, where films are shown twice a month on a Saturday morning at six Detroit-area Emagine theaters. For these special movie showings, the lighting is brighter and sound is reduced. The events allow the whole family to go to a movie in a public theater where parents don’t have to worry about their child distracting other theater-goers, as all behaviors are welcome and accepted. The films are typically family centric and blockbusters, such as “Black Panther” or “Incredibles 2.” Emagine also is running the program at its theaters in Frankfort, Ill., and later this summer at theaters in Lake Geneva, Wis. and Farmington Hills. Future plans call for Autism Friendly Movies at Emagine’s movie theaters in Minnesota. Paul Glantz, chairman of Troy-based Emagine Entertainment Inc., said he was inspired by competing theaters who hosted their own autism friendly movies. “I saw AMC was running such a program on the
“I think these events bring an element of normalcy and provide entertainment to those who might not be able to enjoy a film. I think it is awesome. I’m a proponent of the program.” Paul Glantz, Emagine Entertainment Inc. East Coast and thought this is something we should do.” He added: “Given the robust nature of the work (Centria Healthcare) does, I thought this company would be a great partner with us. I think these events bring an element of normalcy and provide entertainment to those who might not be able to enjoy a film. I think it is awesome. I’m a proponent of the program.” The movie events started two years ago with Centria volunteers serving as ushers or docents. “They make sure everyone is comfortable,” Glantz said. Melissa Boudreau, Emagine chief marketing officer, said Centria volunteers have been helpful making the program a success by spreading awareness and promoting education about autism to theater employees. “They are helping us with a training program for our staff so they know how to handle situations with the children or how to keep the lighting (and sound) at the right level for them.”
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Centria Healthcare’s Superhero Autism Activity Days are free to kids with autism and their families and allow Centria employees a chance to volunteer and interact with the clients they help every day. A bounce house, superhero characters and crafts projects are highlights of the events. Photos by Centria Healthcare.
Collaborating for autism awareness Centria Healthcare also has a strong partnership with Detroit PAL (Police Athletic League) to present an annual weeklong summer program called the Autism Sports Academy. Russ Russell, chief advancement officer at Detroit PAL, called the collaboration between PAL and Centria “pretty cool.” Centria volunteers came in last summer for a five-day pilot program whereby they trained coaches who would work with children with autism. The children were then introduced to various sports. “The kids lit up. It was like a door opened to their hearts and minds,” Russell said. This year, Russell will coordinate the program again with more children. “We know now sports can have a (positive) impact on these kids’ lives. Teamwork helps them communicate with one another.” Centria Healthcare has also developed a partnership with the Global Autism Project, a nonprofit that trains staff at autism centers around the world. Molly Ola Pinney, founder and CEO of the Global Autism Project, said her connection with Centria began a few months ago when she met CEO Scott Barry, who is now on the nonprofit’s board of directors. Centria funded the first-ever scholarship program for the Global Autism Project’s SkillCorps program, which will be used to cover tuition fees for five Board-Certified Behavior Analysts (BCBAs). The scholarship will be awarded to three BCBAs at Centria, and two BCBAs from other companies and practices. Participants in the SkillCorps program will travel with the organization in November to a yet-to-bedetermined country. Based on their skill set, volunteers will train teachers to work with children at au-
tism centers. “They will reach out to help in a country that needs such services,” Pinney said. She explained that her organization is helping people with autism in 11 countries through its SkillCorps program. “It’s a human rights concern for some families,” said Pinney, adding that there is opportunity for educating people about autism in many countries.
Centria’s social mission Loewenstein said that a committee of 12 Centria employees meets every other Friday to talk about the company’s volunteer efforts. “It is the responsibility of each employee to bring ideas for volunteering,” he said. “It’s a validation of the depth of this organization as part of the community in Michigan and seven other states.” In April, which was National Autism Awareness Month, Centria Healthcare hosted or sponsored 52 events in states where it does business. To foster collaboration at the company’s offices in Novi and Farmington Hills, twice a month Centria provides lunches for employees. “We talk about our mission at these lunches, recognize new employees and sometimes bring in speakers,” said Nicole Mulvihill, director of CentriaCares. “Volunteerism is the ribbon that runs through Centria’s purpose beyond what we do here on a daily basis,” Loewenstein said. “The company has a social mission, rare in any workplace, that permeates throughout the organization.” Learn more about working at Centria at CentriaAutism.com/careers.
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OPINION COMMENTARY
Impossibilities start to feel like inevitabilities I
t sure feels like a tipping point. Ford Motor Co.’s move to turn the battered Michigan Central Station in Corktown into a MICHAEL campus designLEE ing the Model T of the next generation is a stroke that the word “bold” doesn’t come close to summing up. There was a time, not that long ago, when a grand plan in Detroit could be met with nothing besides skepticism. An eye roll, even. “In Detroit? Never happen.” We’ve reached a point in the city’s comeback that we’re losing that reflex. The impossible seems possible. Sometimes it even seems inevitable. That’s called momentum, and it’s a good thing. At the same time, there is historical precedent for at least a droplet of worry. The economic cycle is one constant you can always depend on. Detroit famously catches pneumonia when the economy gets the flu. Grand plans become more popular and seem more plausible in a hot economy; and the longer an economy has been hot, the grander the plans become. There’s even a name for it — the “Skyscraper Curse.” That nickname describes the notion that construction of record-breaking skyscrapers signals a recession is coming. Grand plans signify grand risks. Like the Empire State Building, completed just a year after the 1929 stock market crash. Detroit’s own Fisher Building is a similar example. The collapsing economy during the Great Depression shelved plans for two additional towers. Detroit has seen a lot of big plans lately. The District Detroit, which is slooowly filling in. Dan Gilbert’s vi-
KIRK PINHO/CRAIN’S DETROIT BUSINESS
The Ford-owned Michigan Central Station on Thursday evening began displaying the Detroit city motto, which translates: “We hope for better things; it shall arise from the ashes.”
sion for the city’s tallest skyscraper on the site of a long-gone Detroit icon, the Hudson’s store, and his plans for other high-rise construction on the Monroe Block and jail site. We’ve also seen a long period of good economic times since the existential crises of the Great Recession. Ford says it will take something like four years to realize its vision for
the train station. It’s likely that after almost a decade of expansion, the economy will hit a bump or two before that four years is up. At the very least, it seems like a good bet that some of the major projects on the board in Detroit might yet not happen, or might be scaled back. One lesson we would be wise to draw from history is that plans can
change. Let’s hope the momentum continues.
More on WJR Hear Crain’s Group Publisher Mary Kramer and Managing Editor Michael Lee talk about the week’s stories every Monday morning on WJR 760 AM’s Paul W. Smith Show.
Say goodbye to the Motor City
I
am not sure whose idea it was, but all of a sudden, we are spending a heck of a lot of money to convert Detroit into a bicycle paradise. Where there once were three lanes for motorized travel, now they have cut back to two by adding some poles and turned the third lane into a bicycle lane. The city seems to be planning on a whole lot more bicycles than any of us have seen before, and they are converting our city streets into bicycle lanes all over the city. Now there must be a master plan that none of us have seen and someone is planning to announce their intentions sometime soon so we all understand why they are discriminating against cars in favor of two-
KEITH CRAIN Editor-in-chief
wheeled transport. And although I have not seen any motorcycles using these new lanes, I assume motorcycles are not allowed. I have no idea about motor scooters or motorized bicycles or even the newest electric variety of bicycles, which I am told have become the rage in certain parts
of the country. But the obvious plan in our city, which may make it very hip to the world, is to establish many miles of dedicated lanes for bicycles. We still do not seem to have dedicated high-occupancy-vehicle lanes for any of our freeways, but I am sure someone is planning that for the future. I must admit, I am mystified as to why our city is spending all this money to make these changes. My guess is that we are talking about a 20,000-to-1 ratio of cars to bicycles, and that is only when the weather is perfect in the summer. I have no idea what the plans are when it is raining or worse, snowing; maybe they will turn into snowmobile lanes to promote tourism.
Meanwhile I have been watching and listening to everything, including lots of public hearings, as the discussion proceeds forward on a section of I-375 right next to our building. It has been a few years already, and plenty more will pass before we see any construction. There has been plenty of public comment. I must have been out of town when they discussed creating these miles and miles of bicycle lanes. Certainly there must be better uses for our tax dollars than setting up something that costs plenty and serves few people. They must have a powerful lobby. We were the Motor City for a long time. Now it looks like we will have to change our name.
LETTERS
Why all the complaining about Belle Isle? To the editor: What is interesting about Belle Isle is that our Detroit island was like a ghost town for many years prior to Grand Prix racing there. People are expressing an interest in it now that we have a national event there. Where were these people before? Thirty-six years ago, our organization along with several interested people began thinking of starting Metro Detroit Youth Day. At the time, you hardly saw anyone at Belle Isle. So, in July 1981, several persons from our organization and in the community decided to host our first Youth Day on Belle Isle’s Athletic Field. We picked the site since it was not being used and would hold hundreds of kids. The late Tom Fox and Jerry Blocker along with football Hall of Famer Lem Barney, myself and others founded what eventually became the largest youth event in Michigan and the Midwest. We were disappointed with our first turnout. Only 1,200 youngsters, volunteers and parents attended. We had sports stars, games, entertainment on stage and a free lunch at the time. Where was everybody? Belle Isle was like a ghost town, as it had been for years. People have asked me several times why did you pick the Athletic Field on Belle Isle for Metro Detroit Youth Day? We picked that site in 1981 since our high school (Eastern) had no practice field, so we chose Belle Isle because it was close to school. While we can sympathize with people wanting to relive their Belle Isle experiences, an empty Belle Isle was brought to life by the Grand Prix, Metro Detroit Youth Day and the newly formed Belle Isle Conservancy. Frankly, I feel the Grand Prix helped rejuvenate Belle Isle which is a good thing. The event only lasts a few days other than for a storage area and the racetrack. All of that is cleared up within a couple of weeks, which has not been a problem. Look at the crowds the Grand Prix is bringing to Detroit from all over. Detroit is finally starting to get the attention it deserves, and much of the funding it generates comes back to Belle Isle. Our city needs places like Belle Isle and outstanding events like the Grand Prix. Let’s all pull together and bring even more outstanding things to our city without the need to condemn or criticize something. Edward Deeb, Founder Michigan Youth Appreciation Foundation Metro Detroit Youth Day Michigan Food and Beverage Association
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Dr. Mona’s new book tells how tide turned By Chad Livengood clivengood@crain.com
The Flint water crisis “was entirely preventable” and the result of an “ideology of extreme austerity,” Mona Hanna-Attisha, the Flint pediatrician who proved Flint children were being poisoned with toxic lead in their drinking water, writes in a new book. “All the budget cuts and so-called fiscal ‘responsibility’ had resulted in a winner-take-all culture, a disdain for regulations and career regulators, a rubber-stamping of bad ideas, a gross underfunding of environmental enforcement, limited understanding and expertise in public health and a disregard for the poor,” Hanna-Attisha writes in “What the Eyes Don’t See,” a memoir of Flint’s lead-tainted water crisis. The physician, the central figure in the Flint water crisis, brought Gov. Rick Snyder’s administration to its knees when she produced a scientific study of blood-lead levels in Flint kids that forced public health officials to retreat from their entrenched position that the water was safe to drink. The 332-page book, which Random House published, goes on sale June 19. “What the Eyes Don’t See” is Hanna-Attisha’s first-person account of how Flint’s attempt to save money using Flint River water turned into an environmental, public health and political disaster for Michigan and government leaders at the local, state and federal levels. Hanna-Attisha is director of the Michigan State University-Hurley Children’s Hospital Pediatric Public Health Initiative. Her quest began at the prodding of childhood friend Elin Betanzo, a water engineer who grew up with Hanna-Attisha in Royal Oak. Hanna-Attisha details how she and another researcher methodically established a link between elevated blood-lead levels in Flint children and the city’s aging pipes leaching lead into the Flint’s corrosive drinking water. Her fast-tracked study forced state government to switch Flint back to Detroit’s water pipeline. The daughter of Iraqi Chaldean immigrants, Hanna-Attisha weaves her life story into the book, detailing how her father’s struggle to draw attention to the atrocities of Saddam Hussein’s murderous regime shaped her activism for the well-being of Flint children. “I was beginning to see that my family’s saga of loss and dislocation had given me my fight — my passion and urgency,” writes the physician.
“Truth and reconciliation and restorative justice are part of healing. And investigations are important. But the law is not my job. My focus is on the health and the well-being of Flint kids.” Hanna-Attisha, a 2016 Crain’s Newsmaker of the Year, said she came to believe Snyder “cared — and was truly sorry” after a meeting with governor in which he detailed his plan to dedicate more than $100 million to Flint kids. “Even if he didn’t care and wasn’t sorry," she writes, “he knew that the balance of his political career would be judged by his response to this crisis.” The doctor doesn’t hold back in criticizing other key figures in state government who attempted to publicly beat
back the whistleblowers. In her book, the physician also takes aim at Brad Wurfel, the then-communications director of the Michigan Department of Environmental Quality, calling him the “chief villain” and “attack dog” of the Snyder administration. As the agency’s spokesman, Wurfel made a series of public comments that downplayed concerns raised by EPA whistleblower Miguel Del Toral about lead in Flint’s water. Wurfel called Del Toral a “rogue employee.” “The guy seemed to have one speed, one method — attack and destroy,” Hanna-Attisha writes about Wurfel. In statements to reporters, Wurfel called the pediatrician’s research “un-
fortunate” and said she was causing “near-hysteria.” “Flint’s drinking water is safe in that it’s meeting state and federal standards,” Wurfel said on the day Hanna-Attisha revealed the percentage of Flint kids with high lead levels nearly doubled and tripled in some areas of the city. Hanna-Attisha recalls in the book that Wurfel later apologized to her at a press conference eight days later, when state officials announced how they were responding to the lead crisis. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood
The cover of Mona Hanna-Attisha’s book
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Call for accountability Throughout the book, Hanna-Attisha sharply criticizes Snyder administration officials who dismissed complaints about Flint’s brownish water and tried to discredit research proving lead was leaching into the drinking water and that the neurotoxin was entering the bloodstreams of children. State leaders, she writes, “have to be held accountable, have to be challenged, because power corrupts, and our moral sensibility can be so dulled that we let atrocities happen right around us, unless we manage to stay constantly vigilant, sensitive, aroused, and ready to take a stand.” Hanna-Attisha, commonly referred to as Dr. Mona, reserves judgment on Snyder for his role in installing unelected emergency managers in Flint who then ignored pleas from residents about the smell and taste of the water. “Many people asked me, ‘Shouldn’t the governor go to jail?’,” she writes.
Ideal participants have a minimum of seven years business experience, and/or manage a team, and who are on the fast track for increased responsibility at any level of an organization. Participants have represented mid-size enterprises, nonprofits, Fortune 500 companies and educational institutions. For more information, contact Keenan Covington at kcovington@crain.com or 313-446-0417. You can also visit www.crainsdetroit.com/leadershipacademy.
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FOCUS MANUFACTURING
ASSESSING ADIENT’S FUTURE GETTY IMAGES/ISTOCKPHOTO
After spinoff and leadership change, company needs to improve profitability, experts say By Kurt Nagl knagl@crain.com
Bruce McDonald took to the driver’s seat when Adient plc spun off from Johnson Controls Inc. in October 2016 as a solely focused automotive seating supplier — the largest in the world. But the post-IPO afterglow has faded, and now, as one of the only major auto suppliers in the U.S. to struggle with profitability, that seat is no longer comfortable. Adient abruptly parted ways with McDonald last week and appointed former General Motors Co. CEO Frederick “Fritz” Henderson, who has been serving on its board since inception, as its interim CEO. The Plymouth-based firm’s vision of a leaner and meaner operation, capable of multiplying shareholder value and spurring growth, seems less certain. Yet optimism exists on Henderson’s ability to turn the supplier around.
Losing money The road is long as the company’s financial results continue to underperform. Adient reported a net loss of $168 million on revenue of $4.6 billion in its second fiscal quarter of this year. Investors and analysts responded as they usually do to dismal performance and uncertainty. “Wall Street typically rewards spinoffs — that’s what statistics tell you. They typically outperform the major indexes,” said Steven Wybo, senior managing director of Birmingham-based financial adviser Conway MacKenzie Inc. “The optimism is now gone and it’s all about, ‘Well, how ya doing?,’ and the numbers Adient reported are not
Bruce McDonald: Parted ways with Adient last week.
Fritz Henderson: To serve as interim CEO.
Need to know
JJAdient abruptly parted ways with Bruce McDonald JJFormer General Motors Co. CEO Frederick “Fritz” Henderson appointed JJReported a net loss of $168 million on revenue of $4.6 billion in its second fiscal quarter of this year
good.” Adient declined to comment for this story. The seat maker has yet to fully bounce back from a $1.5 billion loss in its first year of existence. Adient shares fell by 10 percent after its most recent earnings report and plummeted by as much as 17.5 percent following the announcement of McDonald’s departure, before recovering slightly. Shares were trading at $47.77 in midday trading Thursday, down nearly 40 percent year-to-date. “It’s been one misstep after another,” said David Lim, senior equity analyst with Wells Fargo Securities LLC. “The communication and expectation has been really disappointing. During this time, the value destruction on the
stocks has just been horrendous.” Wybo, whose firm specializes in operational restructurings and turnarounds, said poor performance in Adient’s case can likely be pinned on two factors: poor management and a difficult industry segment. Margins are thin in the seat supply business, and it’s tougher to make money than in other supply areas, he said. “(Adient) needs to lean out and run more efficiently, and I believe it will do that and be a successful company longterm,” Wybo said. “Revenues have grown; now it’s time to focus on profits. I suspect the new full-time person will be driving free cash flow and enterprise value by focusing on profits.” The future for the troubled supplier relies on that yet-to-be-named top executive. It’s unclear how long Henderson will serve in his interim role while Adient’s board searches for a permanent CEO. But it will fall to him to right the operational ship.
Henderson’s mission Performance in China remains a strong point, but its seat structures and mechanisms division continues to drag down the company. The 2010 acquisition of seating supplier Keiper, and its specialty seat business Recaro, and C. Rob. Hammerstein Group, both of Germany, crippled what is now Adient when it was part of Milwaukee-based JCI. It spent years integrating those companies while bleeding cash. And it continues to haunt Adient today. “My immediate focus is on better operational execution to drive meaningful
improvements in profitability and free cash flow,” Henderson said in a written statement Monday. “We know what needs to be done and we will be approaching the work ahead of us with urgency.” In the long term, Adient needs a top executive with operational and manufacturing expertise over financial fluency, Lim said, and that leader needs to be bold enough to hit the reset button. McDonald spent his entire career as a finance executive and accountant in the automotive space. “I think they need someone who’s worked intimately on the factory floor and engineered some of the products they’ve made,” Lim said.
White-knuckle era While Adient has struggled to perform, its top competitors have not been fazed by the headwinds of labor-intensive assembly and low margins. Southfield-based Lear Corp., reported record first-quarter results in April and raised its 2018 revenue outlook by $400 million to between $21.8 billion and $22 billion. Its net income rose to $353.7 million in the first quarter of this year, up 16 percent from the same quarter a year ago. It was the first earnings report under new president and CEO Ray Scott, and it calmed investor nerves over new leadership. Adient’s miscues come at a critical time of innovation and identity change in the auto industry. In tandem with automakers, seat suppliers are racing to develop features for the autonomous vehicle of the future. Lower earnings equate to fewer dollars invested prod-
uct development. What separates Adient from counterparts, of course, is that it is a spinoff, and that presents a unique road that some companies before it have traversed better than others. As part of breaking off on its own, Adient was saddled with debt that has been growing; its debt as of May is $3.68 billion, up from $3.32 billion last September. But analysts believe Adient is well-positioned to maintain its spot as the world’s largest auto seat supplier, despite all of its troubles, if it can find a way to right the ship. Economic conditions are favorable, unlike during the Great Recession, which rattled the auto industry with bankruptcies, including that of Visteon Corp. The auto electronics supplier spun off from Ford Motor Co. in 2001 and declared bankruptcy in 2009 after lack of demand caused its stocks to plunge to 2 cents a share. It emerged as a healthy company, acquiring the electronic division of Johnson Controls for $265 million in 2014. “I don’t think debt is an issue here,” Lim said of Adient’s situation. “In my opinion, this is more operational. I don’t think the company is financially distressed.” What is certain is that the seat maker must start making money if it wants to keep pace with competitors that are posting record numbers, and keep intact the vision it laid out when spinning off from JCI. As the interim CEO implements corrective actions and the board of directors decides a new direction, many will be watching closely. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl
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In a trade war with Canada, Michigan is the child left behind There is no doubt. Canada and the U.S. are engaged in a trade war. And like parents engaged in a titfor-tat spat over money, fidelity or chores, it’s the children who suffer. In this case, the child crying in the corner during this quarrel is Michigan. Late last month, the U.S. imposed tariffs of 25 percent on steel imports and 10 percent on aluminum imports against Canada, Mexico and the European Union. President Donald Trump has since threatened additional tariffs on car imports from Canada. Canada has retaliated, set to impose its own retaliatory tariffs on $12.8 billion worth of U.S. products on July 1 — Canada Day. Then the G7 Summit happened — the result of which has been a public feud between Trump and Canadian Prime Minister Justin Trudeau, both using the public platform to slam the other. First Trudeau calling the steel and aluminum tariffs “insulting.” Trump, in turn, taking to task Canada’s 270 percent tariff on imported dairy. Still enraged by Trudeau’s comments, Trump said at the summit with North Korea in Singapore overnight, “That’s going to cost a lot of money for the people of Canada.” So are new tariffs on the horizon? (Shrug emoji). But one thing is absolutely clear: Michigan has a lot to lose in this duel. Let’s go over the details, shall we? Michigan and Canada are so economically intertwined, Michigan is often called Canada’s 11th province. Michigan imported $47.4 billion in products from Canada last year, representing 33.8 percent of all imports to the state, according to data from the U.S. Census Bureau. In turn, Canada imported $24.9 billion in goods from Michigan, or 41.6 percent of all of our exports. While there is a clear disparity in the value of trade, it’s important to look at the aforementioned percentages. Michigan companies rely on Canada for 41.6 percent of their exports. Canada is an absolutely critical market for Michigan companies. Separated only by the Detroit River, Ontario is Michigan's closest trading partner by far. Michigan exports as much to Ontario as our next four largest trade partners put together — Mexico, China, Brazil and Germany. Toss in the buying power of the rest of Canada and you can add Japan, South Korea and Italy to that list. Automotive is particularly vulnerable to tariffs on both sides. In fact, if
DUSTIN WALSH dwalsh@crain.com
the White House follows through on tariffs on cars imported from Canada, Michigan’s automakers will take a significant hit. Four of Canada’s nine largest automotive companies are Dearborn-based Ford Motor Co., Detroit-based General Motors Co., Auburn Hills-based Fiat Chrysler and Southfield-based Lear Corp. Chrysler imports 22 percent of its cars sold in the U.S. from Canada, including its popular Pacifica minivan, which is assembled in Windsor. GM imports 10.6 percent of its cars sold in the U.S. from our neighbor to the north, and Ford 7.6 percent. This represents billions of dollars potentially subject to U.S.-imposed tariffs — which, of course, is bad for business. Some experts believe the immediate impact would be a reduction of U.S. sales by as much as 5 million units. LMC Automotive is more optimistic, calling for a reduction of only 1 million units. But it’s also bad for us consumers because, well, tariffs are taxes. These tariffs would raise the cost of cars by $5,000 to $7,000 on average. Our tariffs. Your pocketbook. Trump seems preoccupied with trade balances and the U.S.’s deficits with its allies — though the U.S. runs a trade surplus for Canada. He’s now turned his attention to Canada’s tariffs on milk, tweeting, “Our Tariffs are in response to his of 270% on dairy!” To his credit, Canada indeed has an exorbitant, protectionist tariff shrouding its milk industry. But there’s reason to cry over spilled milk on either side of the Ambassador Bridge. Because while the U.S. may not protect its dairy industry in the form of tariffs, the longtime use of subsidies amounts to protectionism, too. See, during the ramp-up to the Great Depression, famine was an actual worry — the Great Famine in Ireland, which cost more than 1 million lives, was only two generations removed in the early 1920s — and the U.S. government set out to supplement farmer incomes and manage crop sup-
plies at a time when farmers were getting walloped by Europe putting itself back together after World War I. Those subsidies continue today. The U.S. taxpayer paid nearly $20 billion in subsidies to farmers in 2016, part of that to the dairy industry. Canada, in a retort to the U.S. bashing of its milk tariffs, claims 73 percent of dairy farmer income is paid through subsidies, once you factor in federal margin protection and social programs, such as food stamps. And dairy production in the U.S. is strong. So strong, in fact, that we produce more milk than we can use or sell internationally. Because of diminished demand — enter almond milk and reduced demand for dairy around the globe — the U.S. is stockpiling dairy products. The U.S. had more than 800 million pounds of American cheese in reserve last year, the most since 1984, according to the U.S. Department of Agriculture. The amount of butter in reserve totals 272 million pounds, also the most since 1994, MarketWatch reported a year ago. We produce so much milk that farmers in the Midwest and Northeast dumped, yes dumped, nearly 80 million gallons of milk into their own fields between January and March of last year, according to MarketWatch reporting. In general, the subsides make our milk cheaper at the store. So while Canadians pay nearly $5 a gallon for their own milk, we pay less than $2 per gallon, sort of — you pay but don’t see the tax dollars that go toward the subsidies. Experts believe U.S. consumers would pay about $6 per gallon or more if subsidies were stripped. If Canada dropped its dairy tariff, U.S. producers would have another viable market and Canadian shoppers would have cheaper milk, but Canadian farmers would make less money. But if the U.S. gets introspective about its own tariffs, we’d have a hard time calling Canada a bad player. The U.S. puts tariffs of 350 percent tariff on tobacco and more 160 percent on shelled peanuts, among others. So both Canada and the U.S. protect certain industries, mostly due to some longstanding and overwrought historic reasons. Both parties are at fault. Both parties should get back to work on signing a new, better-for-everyone North American Free Trade Agreement. Stay together for the kids, please.
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Great Lakes Angels partner to grow funds and new companies By Tom Henderson thenderson@crain.com
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The Great Lakes Angels are partnering with local entrepreneur Doron York to raise a series of funds to help launch and grow new companies in Michigan. On July 1, Great Lakes Venture Fund LP will begin accepting investments from accredited high-net-worth investors and family offices. Fund organizers are targeting $18 million, which would dwarf other angel funds in the state. They hope to make the first investment in a very early-stage tech company by Aug. 15. The Ann Arbor-based Michigan Angels have raised three $2 million funds, which co-invest with individual members in portfolio companies. The Saginaw-based Blue Water Angels are currently raising a fund of $3 million to $5 million. But York’s plans are more ambitious than one angel-based fund. He said that late this year or early next, he will start raising two much larger funds of $50 million and $100 million to provide add-on capital to portfolio companies in the first fund as they grow and to invest in new companies. The $50 million fund would also do early-stage investing; while the larger fund, a more traditional venture-capital fund, does larger Series A funding of companies already generating revenue.
Capital need In recent years, seed- and early-stage money has been harder to come by for entrepreneurs. Venture-capital companies have become more conservative in investing, often requiring com-
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Doron York: Need more angel activity in state.
Jim Adox: Definitely a gap in funding.
Need to know
Great Lakes Venture Fund LP has $18 million target Group plans additional large funds of $50 million and $100 million each Entrepreneur partner Doron York isn't seeking institutional investors
panies to show revenue committing to investments. Ann Arbor-based Plymouth Venture Partners even changed its name to Plymouth Growth Partners to reflect its evolving business model. “At Venture Investors, we do a lot of work with early-stage companies, especially companies spinning out of large Midwest research universities, and there’s definitely a gap in funding these companies,” said Jim Adox, who manages the Ann Arbor office of Madison, Wis.-based Venture Investors LLC. Venture Investors recently announced it was raising a new fund of $100 million. “We need more angel activity in the state to help keep companies in Michigan instead of (them) having to leave,” said York. A serial entrepreneur, York is CEO and chairman of Farmington Hillsbased City Side Ventures LLC, which will manage the three funds. “Michigan is at a point in time that cries out for more angel funding,” said David Weaver, the CEO who founded the Great Lakes Angels in 2002 and CEO and president of Bloomfield Hillsbased Aimattech Consulting LLC. There are more support programs around the state to encourage entrepreneurship than ever before at a time when seed-stage funding is drying up, he said. And the shrinking base of institutional seed money could be more than replaced by angel investors.
Wasted wealth The best way to recruit angel investors, Weaver said, is through a fund that does the due diligence for them. “Most accredited investors do not understand angel investing or even know they could be one. We have so much wealth sitting on the sidelines that could be deployed if it was accessible,” he said. “I have come to the conclusion that providing a pathway for accredited investors to participate in angel deals is best met by becoming a passive investor in an angel fund. “The fund will do the heavy lifting, and investors will spread their risk.” As part of their outreach, City Side Ventures plans to hold a series of investor showcases in Farmington, Ann Arbor, Grand Rapids, Traverse City, Grosse Pointe, Bloomfield Hills, New York and Chicago. Limited partners would invest between $100,000 and $500,000 in the first fund. That fund will target techbased companies, including those in medical devices, connected vehicles, data analytics, wearable technology,
financial tech and agricultural tech. “What’s very exciting about this fund is they are very clear they will do very early-stage and pre-seed investing,” said Skip Simms, managing member of the Michigan Angel Fund and senior vice president at Ann Arbor Spark. “The need is great in that the demand from entrepreneurs for capital far exceeds what is currently being invested by angels and venture capitalists.” Charlie Moret, president and CEO of Invest Michigan, a Detroit-based nonprofit that invests in early-stage companies, said, “There’s no question about it, one of the issues we’ve been addressing is that there isn’t enough early-stage funding.” Invest Michigan, which made 80 investments in four years and 26 last year, has kept a number of struggling early-stage companies going with its funding.
Tough task “We welcome any and all capital being made available, but they haven’t had a first close yet,” Simms said cautiously. “It remains to be seen how much will be raised.” Other area VCs also welcome the idea of more early-stage capital entering the ecosystem. However, they also caution that as a first-time fund manager, York may find raising money much tougher than he imagines. Institutional investors, such as insurance companies, nonprofits and foundations, endowments and pension funds rarely, if ever, invest in first-time fund managers. York said that will not be an issue for him. “I have strong commitments,” said York, who plans to raise half of the first fund from out-of-state investors. In addition, he doesn’t plan to raise institutional money other than that from family offices and has a nationwide business and social network, including wealthy members of the financial community in Chicago who have given him early commitments of participation, he said. Though York is optimistic, Invest Michigan’s Moret said York still needs to overcome not having a history of fund management. “Without a track record, will he be able to raise that money?” he asked. “How do you prove to investors that you can make them money?” Chris Rizik, CEO and fund manager for Ann Arbor-based Renaissance Venture Capital Fund, said, “As more startups continue to be formed out of the universities and from the community, early-stage capital is both more important and more of a vexing problem throughout the Midwest. So, I believe Doron will find really good opportunities for his angel fund.” Renaissance Venture Capital recently announced it raised its third and largest fund of $81 million. York is smart to not be counting, at least at first, on finding institutional investors, Rizik said. “The toughest venture-capital fund to raise is the first one because the fund manager typically doesn’t have an investment track record that institutional investors can look at,” he said. Venture Investors’ Adox agreed, “A first-time fund raising money from friends and family and associates is a legitimate way to go.” Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2
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C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
DEALS & DETAILS CONTRACTS J Qualitech, Bingham Farms, a technology integrator and software reseller, has installed its hosted VOIP phone system at Schultz and Associates, a CPA firm, Plymouth, and Rini Realty Company, a property management company, Westlake, Ohio. Website: qualitech.net J Faurecia, Auburn Hills, an automotive technology company, has an agreement with FAW Group Corp., Changchun, China, an auto manufacturer, to develop cockpit-of-thefuture technologies and sustainable mobility solutions. Websites: faurecia.com, faw.com J American Axle & Manufacturing Holdings Inc., Detroit, an automotive supplier, has a contract to supply power transfer units, sensors that monitor traction and assist the driver through difficult weather and challenging road conditions, for Ford Motor Co. crossover vehicles with allwheel drive starting with the 2019 Ford Edge and Lincoln Nautilus. Websites: aam.com, ford.com J General Motors Co., Detroit, and Honda Motor Co. Ltd., Tokyo, Japan, auto manufacturers, have an agreement for development of new advanced-chemistry battery components, including the cell and module, to accelerate both companies’ plans for all-electric vehicles. Websites: gm.com, honda.com J eFlex Systems, Rochester Hills, a software company, has a partnership with Light Guide Systems, a product of OPS Solutions LLC, Wixom, to add augmented reality features into webbased assembly software Job Element Monitor, a work instruction module. Websites: eflexsystems.com, lightguidesys.com
EXPANSIONS J FCA US LLC, Auburn Hills, plans to establish a financial services arm to provide U.S. consumers with more options to finance vehicle purchases. FCA is exploring whether to acquire an existing financial services busi-
ness, which could include exercising an option to acquire Chrysler Capital, or to build its own finance company. Website: fcagroup.com Varroc Lighting Systems, Plymouth, an exterior vehicle lighting supplier, and its parent company, Varroc Group, Aurangabad, India, opened a customer and business development center in Tokyo. Website: varroclighting.com, varrocgroup.com J
NEW PRODUCTS J Absopure, Plymouth, provider of bottled water, has added Hot Springs, Ark.-based Mountain Valley Spring Water products to its lineup and is now delivering it to homes and offices across Michigan. Websites: absopure.com, mountainvalleyspring. com J Morpace Inc., Farmington Hills, a market researcher, has introduced DataDialogue|Pulse, a mobile app for fleet professionals. Website: morpace.com J ZipLogix, Fraser, a real estate technology company, has released the brokerage version of zipCRM, a customer relationship management system. Website: ziplogix.com
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NEW SERVICES J Cornerstone Schools, Detroit, a group of charter schools, has introduced the Cornerstone For Life Promise to provide career and college support services and tools to Cornerstone graduates, beginning with the class of 2019. Cornerstone will provide career counseling, career assessments, job placement, professional skills training, skills assessments and assistance with alumni connections to school graduates. Website: cornerstoneschools.org J Motor City Industrial LLC, Hazel Park, wholesale industrial fastener and bearing supplier, launched a new website and e-commerce platform at motorcityindustrial.com.
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J Jeremy Falendysz to director, corporate finance, UHY Advisors Corporate Finance LLC, Detroit, from managing director, Amherst Partners LLC, Birmingham.
ney, Foster Swift Collins & Smith PC, Southfield, from attorney/principal, Badalucco Law Firm, Birmingham. J George Remy to senior attorney, CND Law, Livonia, from managing member, The Law Office of George Remy, Livonia.
HEALTH CARE
MANUFACTURING
J Marie Lozon has added the role of chief of staff, Michigan Medicine, Ann Arbor, to her duties as professor of Emergency Medicine, professor of Pediatrics and Communicable Diseases and associate chief clinical officer, C.S. Mott Children's and Von Voigtlander Women's Hospital, Ann Arbor.
J David Okonoski to chief operating officer, Lucerne International Inc., Auburn Hills, from vice president and general manager, Ray Laethem Buick GMC Chrysler Dodge Jeep Ram, Grosse Pointe.
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C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
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CRAIN'S LIST: LARGEST MICHIGAN MANUFACTURERS
Ranked by 2017 revenue
Top executive(s)
Employees Revenue Revenue Jan. 2018 Number of ($000,000) % Michigan/ plants 2017/2016 change Worldwide in Michigan Michigan plant locations
Ford Motor Co. 1 American Road, Dearborn 48126 (313) 322-3000; www.ford.com
Jim Hackett president and CEO
$156,776.0 $151,800.0
3.3%
48,000 B NA
13
Dearborn, Flat Rock, Wayne, Woodhaven, Automotive Romeo, Sterling Heights, Livonia, Ypsilanti
General Motors Co. 300 Renaissance Center, Detroit 48265 (313) 556-5000; www.gm.com
Mary Barra chairman and CEO
145,588.0 149,184.0
-2.4
52,113 180,000
NA
79,183.3 C 72,794.7
8.8
33,863 80,865
10
Bay City, Brownstown Township, Detroit/ Automotive Hamtramck, Flint (3), Grand Rapids, Lansing (2), Milford, Lake Orion, Pontiac, Romulus, Saginaw, Swartz Creek, Warren, Ypsilanti, Wixom Detroit (3) Sterling Heights (2), Trenton Automotive (2), Warren (2), Dundee
62,484.0 E 48,158.0
29.7
7,450 98,000
NA
Midland, Harbor Beach, Hillsdale, Hemlock, Auburn
Packaging and plastics; automotive and transportation; building and construction
21,253.0 20,718.0
2.6
NA NA
NA
None
Household appliances
20,905.0 20,744.0
0.8
10,328 163,000
36
Holland, Brownstown Twp., Sterling NA Heights, Plymouth Twp., Grand Haven, Battle creek, Warren, New Hudson, Novi, Highland Park, Troy, Shelby Twp., Newaygo, Alto Twp., Kentwood, Auburn Hills, Grand Blanc Twp., Delta Twp., Delhi Twp., and Boyne City Rochester Hills, Detroit (2), Traverse City, Ford, GM, FCA, Daimler, BMW Roscommon, Farwell, Flint, Taylor, Southfield (HQ)
Company Address Rank Phone; website
1 2 3 4 5 6
Sergio Marchionne FCA US LLC 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO (248) 576-5741; www.fcanorthamerica.com DowDuPont (formerly Dow Chemical Co.) D Andrew Liveris, director, DowDuPont; James Fitterling, 2030 Dow Center, Midland 48674 president and COO, Dow and (989) 636-1000; www.dow.com COO for the Materials Science Division, DowDuPont Marc Bitzer Whirlpool Corp. CEO 2000 N. M-63, Benton Harbor 49022 (269) 923-5000; whirlpool.com Don Walker, CEO; Jim Tobin, Magna International of America Inc. CMO and president, Magna Asia 750 Tower Drive, Troy 48098 (248) 631-1100; www.magna.com
Clients/industries served
7
Lear Corp. 21557 Telegraph Road, Southfield 48033 (248) 447-1500; lear.com
Raymond Scott F CEO
20,467.0 18,557.6
10.3
3,839 165,000
9
8
Adient plc 49200 Halyard Drive, Plymouth 48170 (734) 254-5000; adient.com
Frederick Henderson G interim CEO; Byron Foster and Eric Mitchell, executive VPs
16,213.0 16,790.0
-3.4
4,734 85,790
7
Detroit, Warren, Lansing, Battle Creek, Automotive Lakewood, Charlotte and Madison Heights
9
ZF North America Inc. 12001 Tech Center Drive, Livonia 48150 (734) 855-2600; www.zf.com
Franz Kleiner CEO
13,970.0 14,446.0
-3.3
3,230 68,334
5
Fenton, Fowlerville, Livonia, Marysville, Lapeer
Automotive
Mike Mansuetti president
13,700.0 13,700.0
0.0
3,671 400,500
2
St. Joseph, Kentwood
10
Robert Bosch LLC 38000 Hills Tech Drive, Farmington Hills 48331 (248) 876-1000; www.boschusa.com
Automotive, industrial, consumer electronics
Samir Salman, CEO, Continental, North America region
12,966.6 H 10,951.3
18.4
2,289 233,000
7
Auburn Hills, Brimley, Dearborn, Rochester Hills, Troy
Automotive
11
Continental Automotive Systems U.S. Inc. 1 Continental Drive, Auburn Hills 48326 (248) 393-5300; www.continentalcorporation.com Kellogg Co.
Steven Cahillane CEO
12,923.0 13,014.0
-0.7
NA NA
NA
Battle Creek, Grand Rapids, Wyoming
Food products
Aptiv I 5725 Innovation Drive, Troy 48098 (248) 813-2000; www.aptiv.com
Kevin Clark president and CEO
12,884.0 12,274.0
5.0
1,239 147,050
NA
None
Automotive
Stryker Corp.
Kevin Lobo chairman and CEO
12,444.0 11,325.0
9.9
NA NA
NA
Kalamazoo, Portage
Health care
BorgWarner Inc. 3850 Hamlin Road, Auburn Hills 48326 (248) 754-9200; www.borgwarner.com
James Verrier J president and CEO
9,799.3 9,071.0
8.0
NA NA
NA
Cadillac, Livonia, Marshall
Automotive
Denso International America Inc.
Kenichiro Ito, chairman and CEO, Denso North America
9,600.0 9,700.0
-1.0
6,162 170,000
NA
Battle Creek
Automotive
Amway 7575 Fulton St. E., Ada 49355-0001 (616) 787-1000; www.amwayglobal.com
Steve Van Andel, chairman; Doug DeVos, president
8,600.0 8,800.0
-2.3
3,300 17,000
8
Ada
NA
Masco Corp.
Keith Allman president and CEO
7,644.0 7,357.0
3.9
875 26,000
NA
Ann Arbor, Adrian, Novi, Brownstown, Lapeer
Home improvement, construction
American Axle & Manufacturing Holdings Inc. One Dauch Drive, Detroit 48211 (313) 758-2000; www.aam.com
David Dauch, chairman and CEO; Michael Simonte, president
6,266.0 3,948.0
58.7
4,131 26,768
13
Three Rivers, Auburn Hills, Fraser, Oxford, GM, FCA, Nissan, Ford, Royal Oak, Troy, Litchfield, Warren, Mercedes Kingsford, Sterling Heights, Coldwater
Aisin World Corp. of America
Scott Turpin president and CEO
5,786.0 5,778.0
0.1
850 110,000
0
No plants but 7 Michigan facilities
Kellogg Square, Battle Creek 49016 12 1(269) 961-2000; www.kelloggcompany.com
13
Airview Blvd., Kalamazoo 49002 14 2825 (269) 385-2600; www.stryker.com
15
Denso Drive, Southfield 48033 16 24777 (248) 350-7500; www.denso.com/us-ca/en
17
College Parkway, Livonia 48152 18 17450 (313) 274-7400; www.masco.com
19
Centennial Drive, Northville 48168 20 15300 (734) 453-5551; www.aisinworld.com
Automotive
This list of manufacturing companies is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available.
B Company estimate. C The 2017 revenue is based on Dec. 31, 2017, euro to dollars rate of 1.2002. The 2016 revenue is based on Dec. 31, 2016, euro to dollars rate of 1.0522. D Dow Chemical Co. merged with DuPont Co. on Aug. 31, 2017, to form DowDuPont. E The year ended Dec. 31, 2017, reflects the results of Dow for the entire year and the results of DuPont for the period beginning on and after Sept. 1, 2017. F Former executive VP and president, seating. Succeeded Matthew Simoncini as president and CEO in February. G Announced June 11 that Bruce McDonald had retired. Frederick Henderson was appointed interim CEO. H The 2017 revenue figures represent NAFTA sales of Continental AG, based on a Dec. 31, 2017, euro to dollars rate of 1.2002. The 2016 revenue figures represent NAFTA sales, based on a Dec. 31, 2016, euro to dollars rate of 1.0522.
I In December 2017, Delphi Automotive plc spun off its powertrain segment as Delphi Technologies PLC (NYSE: DLPH) while Aptiv PLC (NYSE: APTV) emerged as its electric architecture and autonomous driving-focused business.
J COO Frederic Lissalde will replace Verrier, effective Aug. 1. Verrier is stepping down and will serve in a nonexecutive advisory role until he retires in February 2019. An expanded version of this list is available with a Crain’s membership at crainsdetroit.com/lists
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
CRAIN'S LIST: LARGEST OEM PARTS SUPPLIERS
Ranked by 2017 automotive original-equipment parts sales Rank
Company Address Phone; website
Top local executive(s)
OEM sales OEM sales ($000,000) ($000,000) Percent 2017 2016 change Products
1
Lear Corp. 21557 Telegraph Road, Southfield 48033 (248) 447-1500; lear.com
Raymond Scott B CEO
$20,467.0
$18,557.6
10.3%
2
Magna International of America Inc. 750 Tower Drive, Troy 48098 (248) 631-1100; www.magna.com
Don Walker, CEO; Jim Tobin, CMO and president, Magna Asia
19,571.0 C
19,381.0
1.0
Body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure and roof systems
3
Adient plc D 49200 Halyard Drive, Plymouth 48170 (734) 254-5000; adient.com
Frederick Henderson E, interim CEO; Byron Foster and Eric Mitchell, executive VP
16,213.0
16,837.0
-3.7
Automotive seating
4
ZF North America Inc. 12001 Tech Center Drive, Livonia 48150 (734) 855-2600; www.zf.com
Franz Kleiner CEO
13,970.0
10,386.0 F
34.5
Automotive braking products, transmissions, suspension, electronics
5
BorgWarner Inc. 3850 Hamlin Road, Auburn Hills 48326 (248) 754-9200; www.borgwarner.com
James Verrier G president and CEO
9,799.3
9,071.0
8.0
Engine and drivetrain systems and components
6
Denso International America Inc. 24777 Denso Drive, Southfield 48033 (248) 350-7500; www.denso.com/us-ca/en
Kenichiro Ito, chairman and CEO, Denso North America
9,600.0
8,708.0 H
10.2
Automotive air conditioning and engine cooling components and systems, including condensers, radiators, condenser, radiator and fan modules, heater cores, evaporators and HVAC units
8,978.0 F
8,497.0 F
5.7
Tires, stability management systems, electronic chassis systems, brake systems
7,600.0
8,835.0 H
-14.0
Powertrain systems, Human-Machine Interface, connectivity solutions, automated driving, driver assistance systems, driving safety systems, comfort actuators, infotainment, steering systems
6,266.0
3,948.0
58.7
Driveline and drivetrain components and systems
5,650.0 F
5,159.0
9.5
Engine bearings, pistons, piston rings, sealing systems, ignition products, systems protection products, valvetrain products, braking, lighting and wiper products
5,648.0
5,650.0 F
-0.0
Body, brake and chassis systems; electronics; drivetrain and engine components
5,300.0
5,800.0
-8.6
Automotive seating, emissions control technologies, interior systems
5,002.0 F
5,556.0 F
-10.0
Chassis, cockpit and front-end modules; ABS, ESC, MDPS, ASV parts, LED lamps, sensors, electronic control systems, airbags, hybrid powertrains, parts and power control units
4,889.2 J
3,824.0 H
27.9
Electrical, transmission, engine management and air management systems; hybrid and electric vehicle systems; climate control, powertrain thermal systems; compressors; front-end modules; driving assistance; interior controls and wiper systems; others Automotive multimedia products and components
7 8 9 10 11 12 13 14
Samir Salman, CEO, Continental, Continental Automotive Systems U.S. Inc. North America region 1 Continental Drive, Auburn Hills 48326 (248) 393-5300; www.continental-corporation.com Mike Mansuetti Robert Bosch LLC president 38000 Hills Tech Drive, Farmington Hills 48331 (248) 876-1000; www.boschusa.com David Dauch, chairman and CEO; American Axle & Manufacturing Holdings Inc. Michael Simonte, president One Dauch Drive, Detroit 48211 (313) 758-2000; www.aam.com Rainer Jueckstock, co-CEO and coFederal-Mogul LLC I chairman and CEO, Federal-Mogul 27300 W. 11 Mile Road, Southfield 48034 Powertrain; Brad Norton, co-CEO (248) 354-7700; www.federalmogul.com and co-chairman and CEO, Federal-Mogul Motorparts Scott Turpin Aisin World Corp. of America president and CEO 15300 Centennial Drive, Northville 48168 (734) 453-5551; www.aisinworld.com Kevin Lammers Faurecia North America U.S. president 2800 High Meadow Circle, Auburn Hills 48326 (248) 724-5100; www.faurecia-us.com Hyundai Mobis (formerly Mobis North America) Chung Myung-Chul, president; Young Deuk Lim, CEO 23255 Commerce Drive, Farmington Hills 48335 (248) 426-5577; www.mobis.co.kr Francoise Colpron Valeo Inc. president, Valeo North America 150 Stephenson Highway, Troy 48083 (248) 619-8300; www.valeo.com
Seating and electrical
15
Panasonic Automotive Systems Co. of America 26455 American Drive, Southfield 48034 (248) 447-7000; www.panasonic.com
Scott Kirchner president
4,498.0 F
3,716.0 H
21.0
16
Aptiv K 5725 Innovation Drive, Troy 48098 (248) 813-2000; www.aptiv.com
Kevin Clark president and CEO
4,257.0 F
4,385.0 F
-2.9
Global supplier of electronics and technologies for automotive, commercial vehicle and other market segments
17
TI Fluid Systems (formerly TI Automotive) L 2020 Taylor Road, Auburn Hills 48326 (248) 296-8000; www.tiautomotive.com
Bill Kozyra president and CEO
4,193.0
3,300.0
27.1
Automotive fluid storage, carrying and delivery technology
Yazaki North America Inc. 6801 Haggerty Road, Canton Township 48187 (734) 983-1000; www.yazaki-na.com
Bo Andersson, president and CEO of Yazaki North and Central America, and president of Yazaki Europe Michael Richardson president and board executive director
4,097.0 F
4,053.0
1.1
Connection systems, electrical distribution systems, electronic components, instrumentation
3,878.0
3,842.2
0.9
Automotive systems
3,618.1
3,472.9
4.2
Sealing and trim, fuel and brake delivery, fluid transfer and anti-vibration systems
3,536.0 F
3,425.0 F
3.2
Airbags, inflators, seatbelts, electronics, steering wheels
3,345.0
3,165.0 F
5.7
Engine components, filter systems vehicle air conditioning and engine cooling
18 19
Nexteer Automotive 1272 Doris Road, Auburn Hills 48326 (248) 340-8200; www.nexteer.com
20
Cooper-Standard Holdings Inc. 39550 Orchard Hill Place Drive, Novi 48375 (248) 596-5800; www.cooperstandard.com
Jeffrey Edwards chairman and CEO
21
Autoliv North America 1320 Pacific Drive, Auburn Hills 48326 (248) 475-9000; www.autoliv.com
Dan Garceau president, Autoliv North America
22
Mahle Industries Inc. 23030 Mahle Drive, Farmington Hills 48335 (248) 305-8200; www.us.mahle.com
Scott Ferriman president
This list of automotive suppliers is an approximate compilation. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide OEM sales. For divisions of foreign-owned companies, figure is for North American OEM sales. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. NA = not available.
B Former executive VP and president, seating. Succeeded Matthew Simoncini as president and CEO in February. C North America sales from 2017 annual report. D Adient spun off from Johnson Controls on Oct. 31, 2016, to become an independent company. E Announced June 11 that Bruce McDonald had retired. Frederick Henderson was appointed interim CEO and John Barth was appointed interim chairman. F From Automotive News. G COO Frederic Lissalde will replace Verrier, effective Aug. 1. Verrier is stepping down and will serve in a nonexecutive advisory role until he retires in February 2019. H Automotive News estimate. I Tenneco Inc. announced in April that they have agreed to acquire Federal-Mogul LLC. The deal is expected to close in the second half of this year, subject to regulatory approvals. J Crain's estimate. K In December 2017, Delphi Automotive plc spun off its powertrain segment as Delphi Technologies PLC (NYSE: DLPH) while Aptiv PLC (NYSE: APTV) emerged as its electric architecture and autonomous driving-focused business.
L Acquired by Bain Capital LLC in June 2015. In October 2017, started listing shares on the London Stock Exchange under the ticker TIFS. TI Fluid Systems has headquarters in Oxford, England, and a corporate office in Auburn Hills.
An expanded version of this list is available with a Crain’s membership at crainsdetroit.com/lists
13
Well done. Well deserved. Congratulations, Tina Freese Decker Tina Freese Decker Executive Vice President and Chief Operating Officer, Spectrum Health
on being named one of the 2018 Notable Women in Healthcare. Spectrum Health is proud to have leaders like you who are dedicated to the health and well-being of our communities.
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
S1
Colleagues of the NOTABLE WOMEN IN HEALTH CARE describe them as relentless, approachable, innovative and focused. These women advocate for patient safety, opioid-free pain relief and access to mental health. They let aspiring doctors shadow them in the operating room and in the office. They see opportunity where others see a closed door. The 35 women profiled in this report were nominated by their peers at work and in the community (more about the selection process on Page S10). Share this report onlne at crainsdetroit. com/WomenHealth, and watch for more Notable Women reports in 2018.
Shon Dwyer, M.B.A., R.N.
Jacqueline Jeruss, M.D., Ph.D.
Ashlee Holman, M.D.
Executive Director University Hospital and Frankel Cardiovascular Center
Director Breast Cancer Center
Director Pediatric Regional Anesthesia
CONGRATULATIONS TO THE LEADERS & BEST IN HEALTHCARE Women play essential roles in medicine: as leaders, policy makers, caregivers and consumers. Here at Michigan Medicine, women are making a difference every day as we create the future of healthcare through cutting-edge research and transformative patient care. We celebrate the accomplishments of our nominees and all the women working together to provide care in our communities.
uofmhealth.org
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
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MARY LU ANGELILLI
LAURA ARCHBOLD
MARCY BOROFSKY
JOAN BUDDEN
Pediatrician-in-Chief, Specialist-in-Chief, University Pediatricians President, Children’s Hospital of Michigan – Detroit Medical Center, Detroit Most recent education: Doctor of Medicine, Wayne State University Certifications: Fellow in the American Academy of Pediatrics
Vice President, Clinical Operations, Trinity Health, Livonia Most recent education: Master of Business Administration, University of Phoenix Certifications: Registered Nurse, Certified Nurse in Operating Room Nursing, Master Black Belt in Lean Six Sigma
Founder, Smile America Partners, Farmington Hills Most recent education: Master of Public Health, Columbia University Certifications: Doctor of dentistry degree
President and CEO, Priority Health, Southfield Most recent education: Master of Public Administration, Wayne State University
Dr. Mary Lu Angelilli leads with integrity and her work reflects her commitment to DMC patients and the community. Managing 250 physicians and 50 staff, Angelilli develops policies and conducts root-cause analyses to ensure care is delivered securely. An advocate for children and her staff, Angelilli is a member of the Child Abuse Academic Society and an associate professor of Pediatrics at WSU, where she teaches residents and medical students how to screen hospital admissions for suspicion of abuse and about Child Protective Services and court cases. Angelilli also advises residents on board preparedness, balancing work and home life, and how to handle academic or interpersonal difficulties during patient care. She also serves on numerous professional organizations. “Dr. Angelilli … served as Michigan Chapter American Academy of Pediatrics (MIAAP) president-elect, using her personal touch to reach out and increase membership. From there, she moved to the national stage, where she served on the National Nominating Committee of the American Academy of Pediatrics (AAP). … Her involvement with the MIAAP and the AAP helped promote the welfare of children everywhere, both in the state and nationally,” said Teresa Holtrop, M.D., executive director and medical director at Wayne Children’s Healthcare Access Program Inc.
As an encouraging leader, Laura Archbold challenges her team of five to think through solutions from a different perspective. Her group has improved patient care through oversight of the implementation of evidencebased plans of care. The work has led to decreased patient mortality, sepsis rates, length of stay and readmissions. “I’ve never been on a team where the leader has made a point to celebrate small team wins along the way. This helps to keep the team focused on the goal as well as feel proud of all the hard work done to get there,” said Trinity Health Program Leader Brandee Dunn. Archbold is executive sponsor of the Women’s Inclusion Network at Trinity Health, where she mentors, provides women with personal and professional opportunities and recruits. “Laura exemplifies the Trinity Health core values to the greatest extent. Her compassion and support of WIN is wholehearted and sincere. She is always fully present in every moment, ready to share ideas and willing to help in any aspect that she can. Laura is truly a great role model and mentor,” said Chandler Katkic, medical economics analyst II at Trinity Health.
When Marcy Borofsky founded Smile America Partners 21 years ago, she had no idea it would grow to employ an administrative staff of 150, would utilize 150 teams of dentists, dental hygienists and dental assistants, and would serve 500,000 children yearly in schools across the country. “All the patients Dr. Borofsky is responsible for treating since 1997 would fill the University of Michigan football stadium more than 100 times,” said Dorothy Quince, an administrative assistant at Mobile Dentists. Often, dental care isn’t accessible to low-income populations, and Smile America Partners not only travels to schools in 19 states to treat children but also to National Guard bases to treat members of the armed forces during military surges. Smile America Partners has received numerous grants, including those from the Robert Wood Johnson Foundation, Annenberg Foundation Schools of the 21st Century and The Jewish Fund. Working with Morgan Stanley Private Equity, Borofsky is now executive vice chair at the Smile America Partners board as well as a member. In addition to serving on the Dean’s Advisory Board of Harvard School of Dental Medicine, Borofsky is working with a team of University of Michigan School of Dentistry dentists on $18.3 million in National Institutes of Health-funded research grants to help predict the risk of cavities in young children and assess a new treatment.
In addition to skillfully navigating new product development and health financing, Priority Health’s Joan Budden is committed to expanding the connection between medical care and social determinants of health through innovations in health insurance, said Marianne Udow-Phillips, executive director of the Center for Healthcare Research & Transformation at University of Michigan. Budden, who was named one of Crain’s 100 Most Influential Women in 2016, leads the $4 billion health plan that serves 900,000 members. Under her direction, the organization designed new individual health plans, resulting in an additional 200,000-plus people receiving coverage. She also was crucial in the development of the health plan’s cost estimator tool, resulting in more than $7 million in shared savings. Building a culture of openness, Budden held listening tours across the organization’s campuses to receive employee feedback. She also produces monthly videos updating employees on current programs. Budden also serves in several industry organizations and on numerous community boards, including the Board of Directors for YMCA for Grand Rapids. “Joan’s focus on innovation and commitment to driving change in the industry to help make sure members can get the care they need at a price they can afford has been inspirational. I personally have always appreciated her willingness to support our mission and share best practices with her peers across the country,” said Ceci Connolly, president and CEO of Alliance of Community Health Plans.
Beaumont Health Congratulates
Donna Hoban, M.D. Crain’s Notable Women in Health Care 2018
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
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ALICIA BUTCHER
BARIKA BUTLER
CEO, A&C Behavioral Solutions LLC, Livonia Most recent education: Master of Arts in Behavior Analysis, Western Michigan University Certifications: Board Certified Behavior Analyst, Limited License Psychologist
CEO, Peak Performance Global; Chief Medical Officer, Behavioral Center of Michigan and Samaritan Behavioral Center; Chief Medical Officer, Detroit Wayne Mental Health Authority, Detroit Most recent education: Master in Health Care Management, Harvard University Certifications: Medical doctorate, Double board certification by the American Board of Psychiatry and Neurology
Alicia Butcher launched A&C Behavioral Solutions in 2013 to provide behavior and analytic and psychological services using Applied Behavior Analysis (ABA) on children and adults diagnosed with autism spectrum disorder, traumatic brain injury and other health conditions. For nearly a year, Butcher not only worked as a clinician but she also mentored future clinicians and initiated contracts with major health plans. Eventually, she grew her evidence-based practice from a team of five people to 40. “Alicia has already impacted the lives of so many by helping the children and their families, providing encouragement and support to her staff, and doing so while continuing to discover new ways to motivate and educate us all,” said A&C Clinical Assistant Lindsay Jewett. Butcher also believes she can provide better care by supporting her staff with professional development and additional education support. “Alicia looks at ways that she could create and invest in opportunities for people that have experiences and backgrounds outside of ABA and that would also be a benefit to the clients and families we serve,” said Christen Rae, a behavior analyst and director of Clinical Services for A&C.
A University of Michigan Distinguished Alumni Award recipient, Barika Butler is known for listening first and speaking second. She directs five physicians and numerous nurses, social workers and mental health technicians at two stand-alone psychiatric hospitals and requires them to be present on the floors so they can listen, learn and lead. “There are very few psychiatrists that I would trust to refer clients to, but … I would refer clients to Dr. Butler without hesitation, knowing that when they meet her, they will encounter an intelligent, competent, compassionate health care provider,” said Falyne J. Fry, M.D., staff psychiatrist at Counseling and Psychological Services Center and assistant clinical professor at Wayne State University. Butler developed mental health clinics at Matrix Human Services and Institute of Population Health and established and implemented telemedicine psychiatric care to youth in the underserved community of Kent County. Butler serves numerous organizations. She’s on the Board of Directors of the Detroit Wayne Mental Health Authority and the WSU School of Medicine Alumni Board of Governors membership committee. She also serves as a member of the Junior League of Detroit and mentors youth interested in STEAM fields.
JENNIFER COBB
Regional Vice President, Physician Network, Saint Joseph Mercy Health System, Canton Most recent education: Master of Health Services Administration, University of Michigan Jennifer Cobb manages 230 physicians and 450 staff members of St. Joe’s Medical Group, where she is responsible for physician recruitment, contracting, engagement, alignment and operations of the health system’s physician practices. In recent years, Cobb successfully integrated four disparate physician networks into one network known as St. Joe’s Medical Group; moved the organization to a single medical record and billing system, making it easier for patients moving between providers; implemented an ambulatory strategic plan based on population growth, community need and physician succession plans; and led the opening of several new primary care offices. For example, when there were only two obstetrics and gynecology physicians in Pontiac serving 60,000 people, Cobb recruited multilingual OB/GYNs and a pediatrician to serve the community. Cobb has the unique ability to balance the business side of health care with the personal needs of her colleagues. She looks to enhance women and underrepresented minorities in leadership and has challenged the status quo by recruiting a significant number of female physician leaders. “In her role, Jennifer works hard not only to help physicians and staff achieve their business goals but also to support them in their personal goals, such as achieving work-life balance,” said Michael K. Smith, D.O., executive consultant to the president, St. Joseph Mercy Oakland.
IT’S THE DAWN OF A NEW DAY FOR HEALTHCARE. Look who is leading the way.
Terri Kline
Eleanor Walker, M.D.
President and CEO, Health Alliance Plan Executive Vice President, Henry Ford Health System
Division Director, Breast Services Department of Radiation Oncology, Henry Ford Cancer Institute
Lynn Torossian
Dee Dee Wang, M.D.
President and CEO, Henry Ford West Bloomfield Hospital
Director, Structural Heart Imaging, Henry Ford Heart & Vascular Institute Medical Director 3D Printing, Henry Ford Innovation Institute
With every sunrise, they place their feet on the path to transform people’s lives for the better. Their leadership inspires. Their innovative ideas break new ground. And their passion never ceases to amaze us. Congratulations on being named “Most Notable Women in Healthcare.”
HOMAIRA DANISH
SH
Owner, Dr. Danish Facial Plastic Surgery and Unasource Plastic Surgery and Spa, Troy Most recent education: Doctor of Medicine, Johns Hopkins University Certifications: Double board certified in Facial Plastic and Reconstructive Surgery and Otolaryngology-Head and Neck Surgery, Fellow of the American College of Surgeons
Execu Michi Most Unive Certi Nurse
Homaira Danish focuses much of her energy on improving the community. In 2016, she earned the L. Brooks Patterson Improving the Quality of Life in Oakland County award. As a member of the Oakland County Children’s Village Foundation board, she helps raise funds for children who are wards of the state. With sponsorship from Bob Seger, she brought the high schoolers to the Dale Carnegie Program, which teaches them life skills necessary for future employment. “Dr. Danish has been like an angel sent to Oakland County Children’s Village Foundation. She has opened up her home, given her time and used her personal resources to assist in countless ways,” said Karen Joliat, co-president of Children’s Village Foundation. On the job, Danish, who uses surgical and nonsurgical techniques on her patients, pioneered a mini facelift, called the LunchTime Lift, and customizes other related procedures for patients. “Over the years of working with Dr. Danish, she has worked tirelessly to grow her practice from the ground up and provide top-notch services to more people who want to look and feel younger, with or without major surgical procedures,” said Steve McCarty, managing director, UHY Advisors Corporate Finance LLC.
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C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
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SHON DWYER
TINA FREESE DECKER
KAITLYN HEFFERAN
DONNA HOBAN
Executive Director, Michigan Medicine – University of Michigan, Ann Arbor Most recent education: Master of Business Administration, University of Michigan Certifications: Robert Wood Johnson Foundation Executive Nurse Fellowship
Executive Vice President and COO, Spectrum Health, Grand Rapids Most recent education: Master of Health Administration and Master of Industrial Engineering, University of Iowa Certifications: Fellow of the American College of Healthcare Executives
Orthopaedic Surgery Lead, Physician Assistant and Fellowship Director, Detroit Medical Center, Detroit Most recent education: Master of Science, King’s College Certifications: Certified Physician Assistant, PA in Orthopaedics
Patient Safety Officer, Beaumont Hospital, Grosse Pointe Most recent education: Doctor of Medicine, Wayne State University
Shon Dwyer is responsible for more than 5,000 employees at University Hospital and Cardiovascular Center, which has more than 600 beds. Under Dwyer’s direction, the hospital partnered with St. Joseph Mercy Ann Arbor on an Acute Care for Elders Unit; restructured leadership to include three-person partnerships between an administrator, nurse leader and physician leader; expanded the robotic surgery program and the medical observation unit; and created Central Cardiac monitoring for remote telemetry and an Electroconvulsive therapy suite for psychiatric patients. And, during Dwyer’s tenure, the hospital became No. 6 in the nation and No. 1 in the state, according to U.S. News and World Report. “Shon … has the ability to see the big picture, analyze the problem and then implement a solution,” said Dee Fenner, M.D., chair, Department of Obstetrics and Gynecology at Michigan Medicine. Dwyer also helps develop future leaders through her work with Inforum’s HealthcareNEXT. “Shon Dwyer co-chairs this group and has been among those instrumental in creating and developing unique opportunities in metro Detroit and West Michigan for women in health care to connect, build personal and professional relationships and gain understanding and insight about important health care issues,” said Inforum President and CEO Terry Barclay.
Tina Freese Decker consistently looks for ways to remove barriers and boost effectiveness. Under her leadership, Spectrum implemented a $300 million electronic medical records system, Epic, to transition to a single health record and billing platform. She also led Spectrum’s At Our Best program to improve self-awareness and emotional intelligence to help leaders prepare for the software installation. In addition, Freese Decker directed the Health Reinvented strategy, which includes programs such as the home-based primary care program to reduce costs of total care; helped integrate 12 regional hospitals; and led the strategy to reverse the trend of opioid-related deaths. Named on Crain’s list of 100 Most Influential Women in 2016, Freese Decker serves on numerous industry and community boards. “Tina is a strong voice for MHA who has helped to shape and promote the association’s strategy related to numerous public policy matters at both the state and federal level, including Medicaid and Medicare funding, graduate medical education, auto no-fault insurance reform, medical liability, certificate of need, scope of practice, the 340B drug program and many more. In addition, she has been a recognized leader in our association in the realm of patient safety and quality improvement,” said Brian Peters, CEO of Michigan Health & Hospital Association.
Kaitlyn Hefferan is the rock star of physician assistants. Leading a staff of 20, Hefferan not only makes house calls but she also was lead in educating Sports Medicine staff and streamlining the process when the DMC implemented electronic medical records. She even developed custom templates for physicians in Orthopaedics, saving each surgeon an estimated 16 hours a week. Moreover, one of her initiatives is saving DMC $230,000 a year per PA. Hefferan developed and implemented a 12-month post-graduate physician assistant fellowship program at the DMC. It’s one of only four such programs in the nation. Within two months, the program was nationally accredited, and she recruited her first trainees two months after that. A member of several industry and community organizations, Hefferan often lets aspiring medical professionals shadow her in the office or operating room and has encouraged high school and college students in the process. “Whether supporting our physicians or leading the charge to enhance the physician assistant experience, Kate is a force to be reckoned with. She seems to have no ‘off’ button. And though she repeatedly achieves success, she is never satisfied nor complacent. Instinctively, Kate is an optimal leader and an achiever, by choice,” said Chris Cowan, physician assistant in the department of Orthopaedics & Sports Medicine, DMC.
Marcy Miller Chief Clinical Officer
Donna Hoban served as senior vice president and chief medical officer of Beaumont until 2017, where she grew the Grosse Pointe hospital from a small failing institution to a thriving one known for quality care. Under her direction, the hospital earned the Magnet designation for nursing excellence. And Hoban not only promoted several women physicians to her executive team but she also increased the number of female physicians by 10 percent. “Instead of just developing programs she believed were relevant, she asked end users what they were looking for in a full-service community hospital. She then took that information and developed comprehensive programs to meet their needs,” said hospital President Rick Swaine. Hoban brought several new services to the hospital — including Level III Trauma, Lung Nodule Clinic, hyperbaric services, sleep evaluation, integrative medicine, pulmonary and cardiac rehabilitation — along with processes for measuring quality of care. Active in her community, Hoban is a member of the Board of Directors of the Grosse Pointe War Memorial, which raises money for its Fallen and Wounded Soldiers Fund, Cass Community Social Services and Guardian Angels Medical Service Dogs. “Dr. Donna Hoban … chairs one of our most important committees and serves on another. She is a thorough and thoughtful leader, determined always to do ‘the right thing’ for all affected by her decisions,” said J. Theodore Everingham, board chair, Grosse Pointe War Memorial.
Deb Polkowski Director of Hospital Readmission Reduction
Congratulations to Marcy and Deb for being selected as Notable Women in Health Care! We are honored to have your leadership making a difference in the lives of patients, families and the communities we serve!
GreatLakesCaring.com
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ASHLEE HOLMAN
JACQUELINE JERUSS
TERRI KLINE
MONA MAKKI
KR
Physician, Mott Hospital, Michigan Medicine – University of Michigan, Ann Arbor Most recent education: Doctor of Medicine, Wayne State University Certifications: Anesthesiology, Pediatric Anesthesiology, Crisis Resource Management, Comprehensive Simulation Instructors, Managing Emergencies
Director of the Breast Care Center and Breast Surgical Oncology Fellowship, Co-Director NIH T32 Surgical Oncology Training Program, Associate Professor of Surgery, Biomedical Engineering, and Pathology, Rogel Cancer Center, Michigan Medicine – University of Michigan, Ann Arbor Most recent education: Doctor of Philosophy in Breast Cancer Biology, Northwestern University Certifications: Doctor of Medicine, Breast Surgical Oncology Fellowship, Fellow of the American College of Surgeons, General Surgery by the American Board of Surgery
President and CEO, Health Alliance Plan, Detroit Most recent education: Master of Public Health, University of Michigan
Director, Community Health & Research Center, Arab Community Center for Economic and Social Services, Dearborn Most recent education: Master of Arts in Clinical Psychology, University of Detroit Mercy Certifications: Limited License Psychologist
Area Denta Most Sagin
Ashlee Holman proved herself quickly and was promoted from instructor to clinical assistant professor her first year as an attending physician. The next year, she earned a promotion to director of Pediatric Regional Anesthesia. Holman, who directs about eight nurses, technicians, fellows and resident physicians, is a medical school advisor who works toward the advancement of women. Always researching ways to push the bounds of modern medicine and improve care, she is active in the leadership of the university’s continuous improvement training by conducting medical simulation. And she strongly advocates for the provision of opioid-free medical treatment. “Ashlee is not only a compassionate and committed physician, she is a leader striving to make a difference in the lives of patients, especially as an advocate for innovative perioperative pain control,” said Dr. Lisa Vitale, Mott Hospital, Michigan Medicine. Holman is a member of several industry organizations, including the Society for Pediatric Anesthesiology.
Open-minded and persistent, Jacqueline Jeruss is involved in nearly every aspect of breast care and oncology at UM. She oversees daily operations at the center, trains future medical professionals and directs a science lab studying breast cancer therapeutics. On top of that, Jeruss started a fertility preservation program for young patients with cancer and a survivorship program for patients with breast cancer. The initiatives improve care and avert costly interventions and morbidity rates associated with delayed treatment. She also established an endowment for the fellowship and helped reestablish a breast care clinic in Flint. A member of Breast Surgery International and the International Society of Surgery, Jeruss supports breast cancer-related community outreach efforts, including Uncork for a Cure and A Sister’s Hope. “Dr. Jeruss is exceptionally compassionate with her patients and she is a wonderful person to work with,” said Kimberly Ann Hoskins, an advanced practice nurse at the Breast Care Center. “She individualizes her surgical discussions for each patient and teaches all those that train under her how to deliver outstanding care.”
Practice Transformation Institute
Applauds
Crain’s Health Care Heroes
Regardless of role, we thank these dedicated individuals as they work to improve outcomes, quality of life and the patient experience.
◆ Chris Allen ◆ Gregory Auner ◆ Najah Bazzy ◆ James Fahner, M.D. ◆ Jean Kantrowicz ◆ Molly MacDonald ◆ George Mogill, M.D. ◆ William O’Neill, M.D. ◆ Jody Burton Slowins ◆ Tolulope Sonuyi, M.D. ◆ Jeffrey Taub, M.D.
Practice Transformation Institute (PTI) offers CME and IACET-accredited experiential learning programs for the patient-centered medical home, advanced primary care and other primary care transformation initiatives. To learn more about PTI, contact Harmony Kinkle, Director of Operations, at hkinkle@transformcoach.org or call 248-519-2337.
Prepare. Transform. Improve. | www.transformcoach.org
Leading right out of the gate, Terri Kline initiated and implemented a $30 million turnaround of the 570,000-member, 1,100-employee insurance company. “When she arrived at HAP in 2016, she hit the ground running and has never looked back. She’s extremely talented and very smart, with a knack for knowing how to bring out the best in people. ... Terri has a laser-like focus on providing an exceptional customer experience for HAP members,” said Wright Lassiter III, president and CEO of Henry Ford Health System. Under Kline’s direction, HAP ceased offering individual plans on the health plan exchange. The health plan is also renegotiating contracts with customers and business partners to secure better return on investment and is implementing new medical management programs that, in part, reduce hospital readmission rates. Kline, whom staff members call approachable, instituted quarterly “state of the company” meetings to improve transparency. Her leadership reflects her experience as a caregiver, her belief that everyone should have access to quality, affordable health care and her understanding that the insurance industry has been and for the near future will be in a state of flux. Kline serves on numerous boards of directors, including Alliance of Community Health Plans, Intersect ENT, Inforum and the Grand Canyon Association, the last of which reflects her love for hiking and national parks.
Mona Makki effectively navigates the medical side of care by integrating CHRC’s behavioral, medical and public health programs and working with other divisions of ACCESS to ensure all clients get the care they need. “Mona is a passionate leader who prioritizes the client and the community. She is dedicated to ensuring that anyone who walks through the doors of ACCESS is treated with care and leaves empowered,” said Dr. Kamal Khalil, a research consultant at Team Wellness. As a domestic violence survivor, Makki also navigates cultural complexities. She worked to get imams at local mosques and employees of local courts trained in the intricacies of intimate partner violence in the Arab American community. As a result, imams have spoken out against the violence and courts now review Islamic marriage contracts during divorce proceedings. ACCESS also recently opened a domestic violence transitional care program for survivors. Makki supports women in the workplace as well. With her support, several women earned leadership roles at ACCESS. Also, under her direction, the CHRC earned several awards including the Eagle Award for Visionary Leadership from the Greater Detroit Area Health Council and recognition from the Centers for Disease Control and Prevention for CHRC’s diabetes prevention program.
The Michigan Association of Nurse Anesthetists is
f o d u o r p r members ou Toni Schmittling, CRNA
Andrea Teitel, CRNA
Crain’s Detroit Business 2018 Notable Women in Heathcare
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KRISTEN MANDICH
EWA MATUSZEWSKI
VITA MCCABE
SHERRY MCRILL
Area Operations Manager, Michigan NW, Great Expressions Dental Centers, Southfield Most recent education: Master of Business Administration, Saginaw Valley State University
CEO and Co-founder, MedNetOne Health Solutions, Rochester Most recent education: Bachelor of Arts, Wayne State University
President and CEO, Northeast Guidance Center, Detroit Most recent education: Master of Arts in Counseling Psychology, Oakland University Certifications: Limited Licensed Psychologist
Kristen Mandich is a team builder with a passion for helping people get where they want to be. She provides financial support for the 12 dental offices and practice administrators she oversees. In that role, she places emphasis on employee training and customer satisfaction. Under her tenure, GEDC implemented a new-hire orientation that decreased employee turnover and improved its customer-satisfaction rating. Mandich looks at employees as individuals and capitalizes on their strengths to make them strong team players. While Mandich doesn’t work directly with patients, she strives also to improve the patient experience and provide answers to all of their payment and billing questions. “Kristen’s passion for mentoring her colleagues has helped GEDC’s culture substantially, both internally and externally,” said Don Trabulsy, vice president of Operations at Michigan GEDC. “Her presence is invaluable and we are fortunate to have someone on our team so dedicated to see herself, her peers and her organization thrive.”
Ewa Matuszewski has an innate understanding of health, the business of health care and the payer side of the business. When she envisioned an organization that would increase patient-centered care and access to that care, she established MedNetOne. The physician’s/health management organization employs 50 people and provides infrastructure and clinical and technology services to more than 800 private practice doctors, independent care providers and behavioral health specialists. “Her ability to think outside of the box has helped to drive transformation in healthcare throughout Michigan. Ewa has always been a proponent to helping her employees succeed, while affording them opportunities for training, learning and advancement — both professionally and personally,” said Andrew Kurecka, director of Innovation, Research and Improvement at MedNetOne. In December 2017, Michigan Osteopathic Organization selected MedNetOne to administer its new physician organization, Healthcare Partners of Michigan. This year, Matuszewski partnered with Oakland University’s School of Health Sciences to present a symposium on the social determinants of health. “Ewa is a stalwart and inspiring leader with a quest for better, more efficient primary care. … Her vision is broader than sick care and health care — it’s on health,” said Paul Grundy, M.D., founding president of the Patient-Centered Primary Care Collaborative in Washington, D.C., and recently retired IBM chief medical officer.
Board Chair and Medical Director, Southeast Michigan Clinical Network; Regional Medical Director, Lung Care and Tobacco Cessation, Saint Joseph Mercy Health System, Southeast Michigan Most recent education: Master of Health Services Administration, University of Michigan Certifications: Doctor of Medicine Vita McCabe was an award-winning thoracic surgeon who developed innovative oncology programs. Then she endured her own health issues. Consequently, McCabe began to understand more, from a patient’s perspective, about physician burnout and patient-care delivery. Now, leading a team of 20 physicians, nurses and others, McCabe designs and implements solutions to reduce physician burnout and improve the patient experience and outcomes. She uses surveys, psychological interventions, simulation training and technology, such as Google glasses and e-scribes, to help doctors achieve better worklife balance and support those recovering from substance abuse, mental health issues or disabilities. “Vita McCabe … understands the importance of taking care of physicians and other health care professionals so they can take better care of their patients. … She involves herself in both the local and national movements to prevent burnout in the health care workplace,” said Dr. Kirk J. Brower, medical director of Faculty & Physician Health Initiative, Saint Joseph Mercy. McCabe also is directing a five-hospital lung cancer screening program, lung nodule quality initiative and tobacco-cessation program, which has resulted in six-month quit rates of 40 percent, above the national average of nine percent.
Sherry McRill has helped grow the Northeast Guidance Center since she was elected president and CEO in 2014. The organization, which employs about 120 medical professionals and support staff, provides primary and behavioral health care to those in need. Under McRill’s direction, NEGC projects exceed expectations. The organization last year distributed more than 1,000 coats to children and held an Adopt-a-Child holiday program and a Day of Restoration for 500 homeless people. The organization has also secured sustaining partnerships, such as those with Community Outreach for Psychiatric Emergencies; Senior Reach, which provides care for elderly adults; School-Based Behavioral Health Initiative, which places an NEGC behavioral health specialist in Detroit Public Schools; and Southwest Housing Solutions, which provides affordable homes for low-income residents. McRill also supports future medical professionals by inviting interns and residents to finish their degrees at NEGC by volunteering their hours. “We are grateful for Sherry McRill’s dedication to Northeast Guidance Center and her untiring ability to network with individuals and organizations to better the lives of individuals living with a mental illness,” said Dr. Peggy Trewn, chair of the NEGC Board and faculty member at the Eastern Michigan University School of Nursing.
DOING WHAT’S BEST IN LEADERSHIP. CONGRATULATIONS, JENNIFER! The McLaren Port Huron Board of Trustees proudly salutes
Jennifer Montgomery, MSA, RN, FACHE, for being recognized as one of Crain’s Detroit Business 2018 Notable Women in Healthcare honorees. Jennifer’s exemplary dedication to her Board, leadership team, employees, medical staff, donors, volunteers and patients is inspiring. Thank you, Jennifer, for your expertise, commitment, and diligence to ensuring the highest possible patient care experience.
mclaren.org/porthuron 810-987-5000
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MARCY MILLER
JENNIFER MONTGOMERY
CHERYL MUNDAY
MARINA NOVIKOVA
DE
Chief Clinical Officer, Great Lakes Caring Home Health and Hospice, Jackson Most recent education: Bachelor of Science in Nursing, University of Michigan Certifications: Registered Nurse, Hospice Administrator, Fazzi Leadership
President and CEO, McLaren Port Huron Hospital, Port Huron Most recent education: Master of Healthcare Administration, Central Michigan University Certifications: Fellow of the American College of Healthcare Executives, Registered Nurse
Doctor, Board Chair, Detroit Wayne Mental Health Authority, Detroit Most recent education: Doctor of Philosophy, University of Michigan Certifications: Clinical psychology
Physician and Program Director, Behavioral Neurology Fellowship, Henry Ford Health System, West Bloomfield Twp. Most recent education: Doctor of Osteopathic Medicine, Lake Erie College of Osteopathic Medicine Certifications: Board certified in both neurology and behavioral neurology
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Marcy Miller oversees the home health and hospice business lines for Great Lakes Caring, which has multiple locations in eight states. In this role, she is responsible for the accreditation status, clinical operation compliance, performance improvements, clinical services and programs, and general operational functions. Miller sees opportunities where others see a closed door. Under her direction, Great Lakes Caring rebranded three different offices and became first choice for numerous providers. In recent years, the organization was named one of the fastest-growing private companies by Inc. 5000 and a best workplace in healthcare by Fortune magazine in part for its employee assistance programs, tuition reimbursement and budget allocated to staff celebrations. “I came to know Marcy five years ago when Great Lakes Caring purchased the home care agency where I previously worked. During the acquisition, our team was learning the ‘Great Lakes Caring way’ in delivery of bedside care to patients in their homes,” said Kelly Brown, executive director of Ohio and Massachusetts Home Health. “We came to learn that the ‘Great Lakes Caring way’ was delivering the right care, at the right time, in the right place. It was a stressful time and Marcy always presented herself in a calm manner and was very patient with us.”
A former registered nurse, Jennifer Montgomery is constantly showing women in the workplace that anything is possible. She leads a staff of 1,800 at McLaren Port Huron and chose women to take the roles of chief financial officer and chief nursing officer. Montgomery successfully managed a $161 million construction project, brought new services and cancer trials to the community when she successfully opened a Karmanos Cancer Center at McLaren Port Huron, and set new records for the hospital’s operating margins, patient safety and employee satisfaction. She also collaborates with community organizations, such as the St. Clair County Health Department, to improve access to health care in the community. “Ms. Montgomery has a unique ability to foster a strong working relationship with physicians and employees. This is the cornerstone of her relentless pursuit of the highest outcomes in patient safety,” said Mona Armstrong, board chair of McLaren Port Huron. Montgomery also lends support to community organizations, including the Community Foundation of St. Clair County and Blue Meets Green economic development committee. “She sees, values and acts upon opportunities to support regional growth and prosperity and ensures that McLaren makes an impact beyond its campus,” said Randy Maiers, president of the Community Foundation of St. Clair County.
Marina Novikova rebuilt and grew an HFHS Memory Clinic, where she leads an interdisciplinary team of 10 people diagnosing and treating patients with Alzheimer’s disease, dementia and other cognitive disorders. Her clinic also collaborated with the Alzheimer’s Association – Greater Michigan Chapter to develop a clinic for patients with developmental disabilities. “Not only is she a dedicated board member but she is a vital force in our embedded social work partnership with Henry Ford Health System. Dr. Novikova is paving the way for new approaches to neurogenerative diseases and together we’ve done, and will continue to do, great things,” said Jennifer Lepard, president and CEO of the Alzheimer’s Association – Greater Michigan Chapter. As a physician diagnosing cognitive disorders, Novikova served as a site investigator for the Imaging Dementia – Evidence for Amyloid Scanning Study, which detects a core feature of Alzheimer’s disease. “Dr. Novikova combines a terrific level of knowledge with teamwork and compassion. This combination contributes to the exceptional care her patients receive,” said Danette Taylor, senior staff neurologist at HFHS. Novikova also serves as clinical assistant professor at Wayne State University School of Medicine and mentors and advances the careers of women.
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Cheryl Munday is a member and fellow of the Michigan Psychological Association and a member of the Association of Psychology Training Clinics. No-nonsense and focused, she strives to improve the lives of the underserved and most vulnerable individuals in our communities. “Dr. Cheryl Munday … has a wealth of knowledge on mental health that connects to issues, events and challenges that we face in this field of work,” said Willie Brooks, president and CEO of Detroit Wayne Mental Health Authority. “She has the ability to analyze situations and logically implement them in our daily discussions and business.” As the appointed board chair of DWMHA, Munday devotes herself to providing a data-driven, person-centered approach and has contributed to the Systems Transformation Committee, which is responsible for the service model in the public mental health system. Her work on the Program Compliance Committee ensures quality service and honest work. As an associate professor of Psychology at University of Detroit Mercy, she teaches child therapy, professional ethics and other courses to guide aspiring practitioners.
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DEB POLKOWSKI
CARRIE RHEINGANS
TONI SCHMITTLING
SHANNON STRIEBICH
Director, Hospital Readmission Reduction, Great Lakes Caring Home Health and Hospice, Jackson Most recent education: Bachelor of Science in Nursing, Walden University Certifications: Registered Nurse, Certified Health Coach for Certified Home Care
Project Manager, Washtenaw Health Initiative and Community Implementation, Center for Healthcare Research & Transformation, Ann Arbor Most recent education: Master of Public Health and Master of Social Work, University of Michigan Certifications: Michigan Limited Advanced Generalist License (social work), Leadership Detroit Class XXXVII
Owner, Collaborative Anesthesia Staffing Solutions Inc., Farmington Hills Most recent education: Doctorate of Nurse Anesthesia Practice, University of Michigan - Flint Certifications: Certified Registered Nurse Anesthetist (CRNA)
President, St. Joseph Mercy Oakland, Pontiac Most recent education: Master of Health Administration, The Ohio State University Certifications: Six Sigma Black Belt Certification, Fellow of the American College of Healthcare Executives
Deb Polkowski was clinical supervisor and branch director at Great Lakes Caring when she helped create the Hospital Readmission Reduction Department and, subsequently, became director. Polkowski researched, piloted and implemented the organization’s risk stratification software and telemedicine devices, and her team determines if the care patients receive is efficient, effective and appropriate to decrease needless rehospitalizations. One program she helped develop and implement is the Call Us First incentive program, which educates and reminds patients and their families to call Great Lakes Caring if they have questions regarding their care and before going to the hospital or emergency room. In addition, the program provides incentives to clinicians to participate in the program. Polkowski also serves as Great Lakes Caring’s accountable care organization case manager, acts as a mentor to clinical staff and helps them to work together despite their geographic differences. “Deb is a significant patient advocate, making sure that patients receive the maximum home health benefit available to them. Regardless of the business goals of a referral source or ACO, the patient always comes first for Deb,” said Marcy Miller, chief clinical officer at Great Lakes Caring Home Health and Hospice.
Carrie Rheingans’ optimism and energy help foster collaboration in community health. As the first manager of a countywide health coalition, she has helped grow the Washtenaw Health Initiative from 45 individual members and 20 member organizations to 200 individual members and 50 member organizations. Rheingans oversees the WHI Opioid Project, a coalition working with the health department, sheriff’s department and a substance abuse agency to address the opioid epidemic. “Carrie is passionate about her work and about her community, and this shows every day in her work,” said Nancy Baum, health policy director at Center for Healthcare Research & Transformation. Through Rheingans’ participation in Michigan Department of Health and Human Services activities to gather data on ways to improve health and care, she suggested creating Michigan’s State Innovation Model in Livingston and Washtenaw counties. MDHHS included this in a successful bid to the federal government, and the project has since brought more than $2 million to organizations in those counties, created an online care tool, enrolled more than 100 people in intensive social and medical care management, and screened more than 50,000 residents for social needs.
Toni Schmittling consistently looks for ways to help. As an officer in the Army Reserves, she provided anesthesia in Afghanistan’s Kandahar International Airport to Marines who secured the area in Operation Enduring Freedom. Years later, she organized and led a team to Haiti to help after the 2010 earthquake. Schmittling has also provided care in the Dominican Republic, administering anesthesia for surgeries for underserved populations; in Colombia, working to provide care to children with cleft palates; and in Guatemala, working with the underserved. Schmittling established CASSI in 2017 when Michigan Reproductive Medicine began requiring anesthesia for patients receiving in vitro fertilization. She oversees a staff of seven CRNAs. She also is helping promote legislation as co-chair of the Government Relations Committee for the Michigan Association of Nurse Anesthetists. “MRM chose the CASSI team because they consistently demonstrate the special sensitivity, compassion, insight and emotional support our patients need. Among the many anesthesia groups we interviewed, only the CASSI team could make the commitment we sought, and they show it every single day,” said Michael Mersol-Barg, M.D., medical and laboratory director, MMR.
Shannon Striebich leads more than 2,500 employees at St. Joseph’s, a 443-bed teaching hospital. In recent years, she led the hospital’s $300 million campus redevelopment, including the $145 million construction of the South Patient Tower, an 18-bed mother/baby unit, the expansion of Mercy Dental Center and a simulation center where medical students, physicians, nurses and other clinicians receive hands-on training. As lead administrator, Striebich has instilled an expectation among staff that everyone in the hospital, regardless of title, is responsible for providing excellent care and service to patients. Under her leadership, St. Joe’s became the first U.S. hospital designated as a thrombectomy-capable stroke center. Striebich also was key to the creations of the offsite Clarkston Imaging Center and the hospital’s adoption of remote-presence telemedicine technologies. Moreover, her strategic planning resulted in an increase in outpatient services and surgical volume. “Shannon … helped ensure CARE House (of Oakland County) has the resources needed to be successful. Shannon and St. Joe’s have donated two physician volunteers to perform exams, medical supplies and extra funds to purchase drinks, snacks and toiletries for children in our care. In just two years, Shannon’s personal involvement in our organization has helped more than 1,000 abused children,” said Blythe Spitsbergen, executive director of CARE House.
Congratulations
Laura Archbold for being honored as one of the 2018 Notable Women in Health Care in Michigan.
We value your commitment to the individuals and communities we serve. Laura Archbold Vice President, Operations, Unified Clinical Organization
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ANDREA TEITEL
LUANNE THOMAS EWALD
LYNN TOROSSIAN
ELEANOR WALKER
Affiliate Clinical Coordinator/Assistant Director at the University of Detroit Mercy, Detroit; Owner and President, Mobile Anesthesia Partners PLLC, West Bloomfield Twp. Most recent education: Master of Science in Anesthesia, Wayne State University Certifications: Certified Registered Nurse Anesthetist
CEO, Children’s Hospital of Michigan – Detroit Medical Center, Detroit Most recent education: Master in Hospital and Health Administration, Xavier University Certifications: Fellow of the American College of Healthcare Executives
President and CEO, Henry Ford West Bloomfield Hospital, West Bloomfield Twp. Most recent education: Bachelor of Business Administration, Eastern Michigan University Certifications: Certified Public Accountant, Fellow of the American College of Healthcare Executives
Andrea Teitel teaches the next generation of professionals at University of Detroit Mercy’s Graduate Program of Nurse Anesthesia. She also provides educational forums across the country. Teitel, who serves on Detroit Mercy’s Nurse Anesthesia admissions committee, strives to achieve a diverse student body and group of professionals. She also works to provide opportunities to women nurse anesthetists. “Andrea’s extensive knowledge and experience as a clinician makes her an ideal educator and mentor to our graduate nurse anesthesia students. Her passion for our profession and practice excellence is clearly evident in her teaching and patient care,” said Greg Bozimowski, professor at Detroit Mercy and president of Michigan Association of Nurse Anesthetists. A past MANA president, Teitel earned its Guiding Light Award for instructors who made significant contributions to the social, educational and professional development of students. “Andrea has been instrumental in being a mentor and role model for nurse anesthetists and graduate nurse anesthesia students. Her tireless dedication to our profession and state organization government relations efforts continue to be relied upon heavily,” said Toni Schmittling, president and owner at Collaborative Anesthesia Staffing Solutions. Teitel also maintains an active clinical practice as the owner of Mobile Anesthesia Partners and as an affiliate of NorthStar Anesthesia, which contracts for the Detroit Medical Center.
Luanne Thomas Ewald oversees every aspect of Children’s Hospital of Michigan, a 228-bed facility and seven outpatient centers with more than 2,000 employees. “Through Luanne’s tenacity, the Children’s Hospital of Michigan has attained higher levels of performance and quality, which have positioned the hospital for continued success,” said DMC CEO Anthony Tedeschi. In recent years, Thomas Ewald managed two major projects — the construction of a $160 million, 248,800-square-foot addition to the Detroit hospital and the opening of Children’s Hospital of Michigan – Troy. The latter is a $42 million, three-story facility with the state’s first free-standing pediatric emergency department. The building also houses a pediatric surgery center, sleep lab and subspecialty clinics serving 60,000 patients in Oakland and Macomb counties. Thomas Ewald also oversees the hospital’s annual cereal drive. “With her leadership — alongside the nurses and staff of the Children’s Hospital of Michigan — she helped raise just shy of 6 million servings of cereal through their cereal drive. This effort inspired others so much that it has gone national and includes dozens of hospitals committed to the effort,” said Gerry Brisson, president and CEO of Gleaners Community Food Bank of Southeastern Michigan.
As head of Henry Ford’s $360 million, 191-bed facility and a staff of more than 3,000, Lynn Torossian encourages a new way of thinking with HFWBH 2.0. Every 100 days, every leader in the organization must make eight changes that, for example, improve quality, safety or reduction of waste. Often, leaders make these changes using employee-generated ideas. Since 2014, the hospital made 2,000 improvements, including patient communications, employee engagement and curbside prescription refills, resulting in reduction of costs. “She believes in the power of trusting relationships, innovation and the value of partnerships,” said Barbara Rossmann, president and CEO of Henry Ford Macomb Hospitals. Torossian improved patient care by reducing inpatient length of stays and readmissions, changes in medications and training lobby staff to read TB tests to assist clinical staff. A hands-on leader, she hosts Lunch with Lynn sessions, leads a CEO Advisory Committee and has even taken shifts as a patient transporter and yoga instructor. She also serves in industry and community organizations. “Lynn has … brought her extensive expertise in health care leadership to our psychiatric residential treatment program’s governing board. Her contributions, ideas and question are always thoughtful, insightful and well founded,” said Ben Robinson, president and CEO at Rose Hill Center.
Division Director, Breast Services in the Department of Radiation Oncology, Henry Ford Cancer Institute, Brownstown Twp.; Medical Director, Center for Integrative Medicine at Henry Ford Health System, Detroit Most recent education: Doctor of Medicine, Washington University Certifications: Radiation Oncology from the American Board of Radiology
DEE DEE WANG
TAMMARA WARREN
Director, Structural Heart Imaging and Cardiac CT CoreLab at Henry Ford Hospital Center for Structural Heart Disease; Medical Director of 3D Printing at the Henry Ford Innovation Institute; Clinical Assistant Professor, Wayne State University School of Medicine, Detroit Most recent education: Doctor of Medicine, University of Michigan Certifications: Fellow of the American College of Cardiology, Fellow of the American Society of Echocardiography, Fellow of the Society of Cardiovascular Computed Tomography
COO, Planned Parenthood of Michigan, Detroit Most recent education: Master of Business Administration, Howard University Certifications: Registered Nurse and Project Management Professional
PATRICIA WILKERSONUDDYBACK
Dee Dee Wang earned the 2017 ACC Emerging Faculty award from the American College of Cardiology. She specializes in interventional imaging in structural heart interventions. And her team takes on the challenge of caring for the most critical patients using the most innovative therapies possible. She focuses her research on advancing patient safety and procedural outcomes utilizing 3D+4D imaging and 3D printing for high-risk structural heart interventions. In addition to authoring and co-authoring 27 papers, Wang is recognized as a leader in the use of 3D digital reconstruction and 3D printing, leading to a patent. “This is not theoretical. We now put this into action all the time,” said William O’Neill, medical director at the Henry Ford Center for Structural Heart Disease, of the techniques Wang pioneered. Added Sarah Anderson Goehrke, editor-in-chief at 3DPrint.com: “Spending the day with the team at HFHS was nothing short of inspiring. The technology developing around the world today can be put to use for any number of applications, but no vertical is more impactful to the human condition than health care.”
Tammara Warren previously served as chief administrative officer for Morehouse School of Medicine. Now she oversees the day-to-day operations at 19 Planned Parenthood health centers, which have a staff of 150 and receive about 99,000 patient visits annually. “In her leadership role, Tammara has helped improve the bottom line by making some operational and system improvements that have been game changers,” said Lori Carpentier, CEO, Planned Parenthood of Michigan. In the past year, Warren centralized billing and the call center and implemented frequent tracking of key performance indicators. Her “can do” quantitative solution-based methods resulted in 18 percent higher revenue in her first six months. Through community partnerships and infant and maternal mortality and morbidity data, Warren identified communities in need of access to reproductive health care. So, in February 2018, her team opened Planned Parenthood’s first Detroit Satellite Health Center, treating Corktown community patients twice monthly. Her work mentoring and recruiting earned her Howard University’s Distinguished Alumni Award in 2015. Warren is membership chair of the National Association for Health Services Executives and the National Black MBA Association. She also serves as activities chair for the Southfield Area Rotary Club. “Her professional leadership as well as her willingness to mentor others while bringing best practices for membership recruitment has been an added value to our organization,” said Southfield Rotary President Brandon Marsh.
Chief Medical Officer, Detroit Receiving – Harper-Hutzel Hospitals, Detroit Medical Center, Detroit Most recent education: Executive Master of Business Administration, University of Tennessee, Knoxville Certifications: Doctor of Medicine, Fellow of the American Academy of Emergency Medicine Physicians, Board certified in Emergency Medicine Patricia Wilkerson-Uddyback oversees strategic initiatives and leads more than 700 physicians to ensure quality and safe delivery of care at the 584-bed Detroit Receiving – Harper-Hutzel Hospitals. During her tenure, she has developed a program to reduce readmissions and streamline access; served as system executive of women’s services and created partnerships with the March of Dimes and Detroit’s Make Your Date program to reduce infant mortality; and developed the Medical Mentors Pipeline Program to expose high schoolers and college students who want to be doctors to the medical profession. Wilkerson-Uddyback also used a grant to educate patients and providers about palliative care and hospice. “Pat is a servant leader with a commitment to the community and her patients,” said Eric Ayers, M.D., Internal Medicine & Pediatrics Residency Program at the Wayne State University School of Medicine. Named to Becker’s Hospital Review’s 100 Hospital and Health System CMOs to Know in 2016 and 2017, Wilkerson-Uddyback is a member of the National Medical Association and serves on the Board of Directors for the Detroit Community Health Connection.
“Dr. Eleanor Walker is extremely creative and always thinking about alternative ways to improve the quality of life for patients with cancer,” said Benjamin Movsas, M.D., chair of the Department of Radiation Oncology at Henry Ford. Walker focuses on combining cancer treatment with integrative medicine and exercise to lessen the side effects of cancer treatment and, potentially, prevent cancer recurrence. Her studies on acupuncture reveal it reduces hot flashes and nausea, common side effects of cancer treatment. In partnership with the Henry Ford Heart and Vascular Institute, Walker established ExCITE (Exercise and Cancer Integrative Therapy Education) to customize programs for individual cancer patients and survivors. She also serves as a speaker for Henry Ford Health System’s Journey to Wellness Program at African American churches. Walker has received several industry awards, including the Federal Drug Administration Recognition of Service Award. “People are familiar with the breast surgeons who remove the cancer or the medical oncologists who deliver the chemo, but the radiation oncologists are a vital component of the breast care team. … Dr. Walker … is really one of the tops in her field,” said Kathie-Ann Joseph, M.D., chief, Breast Surgery, and co-director of the Beatrice W. Welters Breast Health Outreach and Navigation Program at New York University Langone Health.
ABOUT THIS REPORT Notable Women in Health Care was produced by Crain Content Studio, the marketing storytelling division of Crain’s Detroit Business. The Crain’s newsroom was not involved in selecting these women or creating this content. The women featured here were selected based on their career accomplishments, their involvement in nonprofits and community organizations, and evidence that they mentor others in their field, as outlined in an extensive nomination form that was written by journalists who cover the health care industry in Michigan. The nominators pay a processing fee to nominate the women; those chosen did not pay to be part of the section. Notable Women in Health Care was managed by Leslie D. Green for Crain Content Studio. For questions about this report, contact Kristin Bull, Director of Crain Content Studio, at 313-446-1608 or kbull@ crain.com. To share this report online, visit www. crainsdetroit.com/WomenHealth
Congratulations to our President and CEO, Joan Budden, for being recognized as a notable woman in healthcare. Joan’s focus on expanding access to health coverage has positioned Priority Health for continued growth, with a network that currently includes 97 percent of Michigan providers and 1 million providers nationwide.
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‘FORTNITE’ FROM PAGE 3
The zone is in different places each game, and getting caught in the storm will quickly kill your character. So will elite players like Blevins.
Getting into gaming Blevins has been a professional video game player for several years, playing “Halo” most recently until giving it up to make a career playing “Fortnite” for audiences willing to pay $5 for his Twitch feed. He gets $3.50 for every subscription. Twitch is the live streaming video platform that Amazon.com bought for $970 million in 2014. On Tuesday, Blevins won the Fortnite Celebrity Pro-Am at the Electronics Entertainment Expo in Los Angeles, earning $1 million for charity. Blevins, who didn’t respond to interview requests, won the tournament with celeb partner Marshmello, an electronic music artist. Also participating in the pro-am were Detroit Pistons players Andre Drummond and Reggie Jackson among 50 celebrities teamed with 50 "Fortnite" pros. Blevins streamed a “Fortnite” match with rapper Drake in March, and it was watched at times by more than 600,000
EPIC GAMES
Tyler Blevins won the Fortnite Celebrity Pro-Am at the Electronics Entertainment Expo in Los Angeles, earning $1 million for charity with celeb partner Marshmello, an electronic music artist.
viewers. Viewers can sometimes see a Detroit Lions poster and helmet in the background when Blevins streams from home. His success has earned him mainstream attention. Even the venerable New Yorker wrote about his success — he bailed on an interview with the mag-
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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
MANUFACTURING Mashell Carissimi Board of Directors
National Electrical Contractors Association (NECA) Tom Mittelbrun III, Executive Director of the Southeastern MI Chapter of the National Electrical Contractors Association (NECA), announced the appointment of Mashell Carissimi, owner / CEO of JMC Electrical Contracting to the NECA Board of Directors. “Mashell’s background and leadership, passion for the industry and success as an electrical contractor make her a strong choice for the NECA Board of Directors,” Mittelbrun said. “I am honored to be part of the NECA Board of Directors,” said Carissimi.
ARCHITECTURE Kimberly Montague Vice President, Director of Business Development
HKS, Inc. Kimberly Montague is vice president and director of business development at HKS Detroit, a leading international design firm. She also currently serves as 2018 president of AIA Detroit. A licensed architect with more than 29 years experience, she has worked in many capacities including principal, project manager, healthcare planner and healthcare design strategist at organizations including Herman Miller, Planetree and Albert Kahn.
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
azine — in a May 21 profile of “Fortnite’s” popularity. The magazine noted that Blevins streams 10 to 14 hours of Fortnite play every day, or about 300 hours a month, and that his wife manages his business affairs. Blevins, who alternates exotic hair colors, has 8.2 million subscribers on Twitch, some of whom pay the $5 to watch his streams without ads. He has 213.8 million total Twitch views on his channel. He also has 13.1 million YouTube followers, 5.6 million on Instagram and another 2.4 million on Twitter. He spoke to a Forbes gaming writer about the origins of his streaming success, which is fueled by a blend of a elite gaming skill at the right game at the right time, and his chatty personality. “I have realized for a long time I was missing out on millions of gamers from YouTube who do not really know about live streaming and are just ‘comfortable’ watching videos,” he said. “I knew that I had the ability to tap into that audience if I could just grow my YouTube scene and transition them to live entertainment on my Twitch page. ‘Fortnite’ blew up on YouTube shortly after I had this plan, and everything just fell into place. I also took advantage of Twitter video to make some ‘viral’ clips that just got even more attention to the stream.” Blevins is less forthcoming about his financial success, but has confirmed
the basic numbers. “So monthly revenue is always something I try not to discuss simply because I do not do it for the ‘good’ money. I have been streaming for almost 7 years, and I only recently just took off like this,” he said. “If it was solely about the money I would have stopped a while ago. That being said, multiply the sub count by 3.5 and you get the monthly income from subs.” Blevins said in the interview that he also gets ad revenue from YouTube. “I actually don’t think I can give specific numbers for contract reasons. Also, I currently have no personal sponsors as well, so there’s nothing there,” he said. Blevins also explained why he thinks the game has exploded in popularity. References to it are turning up in pro sports and elsewhere in mainstream culture — the Cleveland Indians streamed Fortnite matches on their stadium scoreboard during a rain delay earlier this season. “‘Fortnite’ really is just the perfect storm of a game. You have the fact that it’s free-to-play, on almost every platform, and everything about the game is enjoyable. The lobbies are quick, fights are fun, building adds the skill gap, weapons are unique and the color variances add that ‘OMG GOLD SCAR’ epic feeling. The treasure chests’ humming sound all the way to the headshot ‘PA DINK’ noise, it’s just perfect,” he said. The “GOLD SCAR” is a reference to “Fortnite’s” rare coveted Special Operations Forces Combat Assault Rifle (SCAR), and the gold indicates an the highest level of weapon quality. He told CNBC in May that he convinced his parents to allow him to pursue a gaming-streaming career because he maintained his grades, held a job at Noodles & Company and went to college. He said he’s saving the money apart from what he donates to charities. How long Blevins can maintain that revenue stream will depend on how long “Fortnite” remains popular — most games get supplanted by the Next Big Thing after a while — but he may be able to keep his audience if he masters whatever the next popular game is.
Gaming growth For now, it’s “Fortnite,” and its numbers are staggering. “Fortnite” first went online last year
and is the product of Cary, N.C.-based Epic Games Inc., which was founded in 1991 as Potomac Computer Systems. Until “Fortnite,” its cash cow was licensing its Unreal Engine used by a wide variety of video game developers. “Fortnite” is free but Epic makes money from micro-transactions from players who want to buy character outfits (“skins”) or other cosmetic upgrades that don’t affect gameplay. Epic earned nearly $300 million in April from such purchases, up from $223 million in March. That money is fueling charitable initiatives such as Tuesday’s pro-am, but also $100 million in player prizes that Epic will roll out later this year. China’s Tencent Games has a 40 percent stake in Epic, and reportedly recently that “Fortnite” has more than 40 million monthly active users and about 3 million playing concurrently. It has quickly surpassed its rival, PlayerUnknown’s “Battlegrounds,” that’s only available on XBox and PCs. Professional video gaming and game streams are a growing phenomenon. About 300 million people watched live video game competitions online globally last year, mostly streaming on Twitch and YouTube, according to New York City-based gaming industry analyst firm SuperData Research. Worldwide spending on digital games across consoles such as the PS4 and XBox, and PC and mobile games, reached $9 billion in April, SuperData reported. That was up 23 percent from 2017. Locally, the Detroit Pistons have invested in esports by launching a team this year as part of the NBA’s 2K league that began in May, and brands such as Detroit-based Quicken Loans Inc.’s Rocket Mortgage unit and Farmington Hills-based Living Essentials LLC, maker of the of the 5-Hour Energy drink, each announced gaming sponsorship deals. Among the major brands that have put money into esports in varying ways are State Farm, Audi, Coca-Cola, Comcast Xfinity, Gamestop, Microsoft, Sony, Google, Doritos and Red Bull. More than 600 esports sponsorship agreements have been made since the beginning of 2016, according to a Nielsen Inc. report from October. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19
SPOTLIGHT Longtime CCS president to retire
Richard Rogers, longtime president of the College for Creative Studies, plans to retire next June, capping a 25year career with the nationally known Detroit design school. The college’s board, which is chaired by Crain Communications Inc. Chairman Keith Crain, plans to Rogers launch a national search for a new CEO. During his tenure, Rogers grew the school’s reputation as one of the foremost art and design colleges in the world. CCS was ranked among the top 50 design schools in the country, according to U.S. News & World Report’s 2016 ranking of the Best Graduate Fine Arts Programs.
Michigan.com seeks new president
The business partnership that oversees Detroit’s two daily newspapers will seek a new top executive because its current president plans to retire at the end of September. Brian Priester, 54, has been president of Michigan. com and the Detroit Free Press Priester since August 2016. He said he’s retiring for personal reasons — specifically the death of his two brothers, which “really brought home to me how short life can be,” he said in a statement. He added he plans to live a “quieter life in the north woods of Wisconsin ...” Virginia-based Gannett Co. Inc. owns The Detroit Media Partnership, which does business as Michigan.
com, along with the Free Press. Gannett Mid-West Region President Eddie Tyner said a national search to replace Priester will begin immediately. He expects a new leader to be in place prior to Priester’s retirement.
LIFT hires new CEO
Lightweight Innovations for Tomorrow in Detroit hired Nigel Francis, the former car czar for the state of Michigan, as its CEO and executive director. Francis, 58, replaces Chris Conrardy, chief technology officer and vice president at Edison Welding Institute, who served as interFrancis im CEO since January. Conrardy replaced Larry Brown, who served as its top executive at its creation in 2014.
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SU DETROIT C R A I N ’ S D E T R OCRAIN I T ’B SINB EUSINESS S S // J U N E 1 8 , 2 0 1 8
PRODUCE FROM PAGE 3
They’re also purchasing surplus produce from bumper crops directly from growers, surplus meat from Tyson or other surplus food with shorter shelf lives, such as fresh bread or eggs, from local vendors. They say they aren’t competing with food rescues by design, but they are getting the food from the same types of sources or in some cases, the very same sources. The companies are too new to have put in place any sort of systems to prevent calling on the same sources. But both are donating their surplus to Oak Park-based food rescue Forgotten Harvest each week. For Flash Foods, its relationship with Forgotten Harvest will be a way to gauge the impact its model is having on local food rescue efforts, said Flash Foods founder and CEO Josh Domingues. “I’d be lying if I said this is exactly how this works and we’re never going to take away from any of the food (rescues are) sourcing,” he said. But the company doesn’t intend to take food away from any organizations rescuing it to feed the hungry, Domingues, 29, said. “While we don’t have a solution to solve this potential problem in the future ... this is something we’re cognizant of. We have open lines of communications with Forgotten Harvest, so that if it’s happening on our end, we can put an end to it.” The second Flash Foods starts sourcing food that food rescues turn to, “that’s where we cap the amount of orders we’re sending out,” he said. “To me, that’s where we fit in the market.”
A surplus of waste There is so much food going to waste, the issue of competing for what’s there may never come to fruition. The U.S. Department of Agriculture estimates that between 30 percent and 40 percent of the food supply in the U.S. goes to waste. That corresponded to about 133 billion pounds and $161 billion worth of food in 2010. At the same time, more than 42 million Americans, including 13.1 million children, lacked access to sufficient food to lead an active, healthy lifestyle in 2015, according to the Natural Resources Defense Council. Growers with misshapen produce typically won’t even pick it in the field because it’s not worth it to them, Domingues said. “Nobody will buy it.” But the food-box companies marketing seconds are proving environmentally conscious and health-minded consumers will. Just weeks into their operation here, both companies are already selling hundreds of the boxes in the region weekly. Prices range from $15 to $50, and customers can opt to donate a box to Forgotten Harvest for $36. Flash Foods is filling its boxes with help from Michigan Farm to Freezer in Detroit and sending them to consumers in the region. They include protein purchased from Tyson (which says its annual donations will not be impacted by the program) and produce from the Detroit Produce Terminal, directly from southern U.S. growers and Leamington, Ontario, grower JC Fresh Farms & Greenhouses. Forgotten Harvest is rescuing produce from JC Fresh farm, too, but there’s plenty to go around, Domingues said. “The challenge with food rescues
Attendees were able to pack their own food boxes at Eastern Market last week. JACOB LEWKOW FOR CRAIN’S
and food waste in general is logistics — who picks it up, drops it off and guarantees the safety,” he said. As adept at distributing rescued food as food rescues are, they will always be constrained by the number of trucks and amount of warehousing space they have. “We are sourcing product that is still lost in the shuffle,” Domingues said. Since launching the Detroit pilot in late April, Flash Foods has donated about 1,300 pounds of protein it did not sell to Forgotten Harvest. That’s about a quarter the amount it’s sold through its boxes in the region. The pilot is set to run through July. Continuing it will depend on the final consumer demand numbers, Domingues said, adding that Flash Food is looking to add grocery stores — another place food rescues use — to its source network. “We don’t have anything in place to make sure we’re not taking food (rescues and food banks) have already sourced,” Domingues said.
founder Evan Lutz. “We’re in no way competing with other sources to rescue produce,” he said. “There’s so much out there: I want other nonprofit and companies to get on this bandwagon. I think food rescue should be the norm in the next five to 10 years and not just a couple (of organizations) doing it,” Lutz said. The company is leasing warehouse space from an undisclosed Detroit produce company and is using contracted labor from the company to pack its food boxes. “There has been a ton of interest in the metro Detroit and Ann Arbor area. It’s our third launch … in the last year. We’ve outdone the other markets,” White said. Like Flash Foods, Hungry Harvest is donating surplus food its customers don’t buy through box orders to Forgotten Harvest each week. On average, it’s donating about 200 pounds of produce per week, and that will grow as its local subscriber base grows, Lutz said.
Demand for service
How food is rescued
Hungry Harvest began considering the Detroit and Ann Arbor markets based on requests from potential customers signing up for waiting lists on its website, Founder and CEO Evan Lutz said. The state’s agricultural prowess was another of the factors that brought it here, along with the idea it might be able to help impact hunger in the area. Outside of Detroit and Ann Arbor, the four-year-old company operates in Baltimore; Washington, D.C.; Raleigh, N.C.; Virginia and Miami. Hungry Harvest boxes are filled with locally sourced fruits and vegetables, with customers able to opt in for other items, such as eggs, bread or specialty items, as they become available. The company buys produce directly from local farms and wholesalers. It’s also working to build relationships with local vendors whose stock is nearing the end of its shelf life or those that have seen issues, such as label misprints, that prevent them from selling the products to retail chains. Purchasing from those companies limits the loss those companies will take on those products, Hungry Harvest’s Detroit marketing manager Jess White said. Hungry Harvest doesn’t seek exclusive source agreements, but the farms it buys from typically aren’t selling or donating to any other organization, said
Forgotten Harvest gets food donations from more than 800 donors today and distributes it at no charge to over 250 pantries, shelters and other local distribution sites for people facing food insecurity. Last year, it distributed 45.8 million pounds of food. At the moment, the food rescue doesn’t believe the for-profit food-box models will affect its efforts, marketing manager Chris Ivey said. “We have been told that they are currently sourcing food from farmers or growers outside of the area or they are outside of our normal sources for donations. They are not getting any produce from our grocery partners or the bigbox stores we currently source from.” The donor relationships with Hungry Harvest and Flash Foods “are another way for Forgotten Harvest to get surplus food into our already diverse supply chain that we potentially wouldn’t have had access to,” Ivey said. The larger concern for Forgotten Harvest, Domingues said, is that people may start to view Flash Food and companies like it as a way to give to people who need food rather than directly to organizations like the food rescue or other organizations working on hunger like Gleaners Community Food Bank of Southeastern Michigan or
Food Gatherers in Ann Arbor. But given Forgotten Harvest’s distribution network and its ability to buy more food for every dollar it receives, it’s brought its cost for distributing food down to a level Flash Food and its peers can never get to, he said. “The most effective way for people to donate food in the Detroit area is to donate to an organization like Forgotten Harvest.”
Competition for product If the new businesses are driving profits for farms, the produce terminal and others while delivering a quality product to consumers, “then more power to them,” Gleaners CEO Gerry Brisson said. “The impact on my food sources isn’t clear yet, but this doesn’t appear to be nearly the threat that dollar stores represented years ago.” More than a decade ago, food man-
June 18, 2018 27 ufacturers began d i v e r t i n g shelf-stable food they had been donating to food banks to dollars stores, selling it at distress rates. There’s a lot of food waste hapEileen Spring: A pening, and lot of food waste emergency food is happening. nonprofits are by no means covering the whole gamut, said Food Gatherers President and CEO Eileen Spring. The 30-year-old Ann Arbor food bank/rescue primarily rescues food from grocery stores and other consumer-facing companies, but it also gets some surplus from the University of Michigan and area farms. “We certainly want to see organizations supporting existing structures,” whether that be local farmers markets or local groups serving the hungry, she said. “That’s more than a donation. That’s working together in a way to align efforts and not duplicate or put people out of business.” The Food Bank Council of Michigan has been watching the advent of the food-box companies targeting surplus food supplies for the past several years, Executive Director Phillip Knight said. So far, the council hasn’t noted any negative effect on its food-sourcing options, which include purchasing surplus produce from farms. But the new for-profit models that are marketing “seconds or uglies” are still in their infancy. “At this point, I think we are all working together to feed hungry neighbors, reduce waste and lessen the impact on the environment,” Knight said. “We are completing one another and not competing with one another. And hopefully, that continues ... and none of our successes are the cost of another’s mission.” Sherri Welch: (313) 446-1694 Twitter: @SherriWelch
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FORD FROM PAGE 1
“It will very much be part of the fabric of the new transportation model,” Ford said of the 104-year-old train station. “And our future at Ford will be largely invented there.” The automaker’s bid to use the derelict train station to anchor a 1.2 millionsquare-foot Corktown campus hinges on getting suppliers and tech companies involved in autonomous vehicles to join it in Detroit. In the train station, Bill Ford sees a building and urban neighborhood steeped in Motor City history that will give the automaker a recruiting edge for the best minds in the world to come work for the Blue Oval. “We’re in a war for talent,” Ford said. “And there will be no place in the country that anybody will be able to work that’s a place like that.”
Four-year project — maybe Dave Dubensky, chairman and CEO of Ford Land Development Co., the automaker’s real estate arm, estimated that renovating the train station could take four years, Bill Ford said. But the construction time frame is not firm. “If it’s wrong, it’s wrong,” Ford told Crain’s and Automotive News. “But so much could happen in four years.” An untold bill awaits Ford Motor Co. to rehabilitate the once-ornate train station, with its towering columns and Roman bathhouse-like concourse that greeted passengers from Christmas of 1913 to the first few days of 1988, when the last Amtrak trains left the station. Bill Ford declined to reveal how much the company paid billionaire Manuel “Matty” Moroun’s Crown Enterprises Inc. for the station and the former Detroit schools book depository next to the depot on 14th Street. There are no plans yet for how the book depository will be used, Ford said. Ford also wouldn’t say how much the company intends to spend rehabilitating Michigan Central Station or the depository, also known as the Roosevelt Warehouse, which was ravaged by a fire in 1987. The cost of the renovation is already built into the five-year facilities plans the automaker adopted in 2016 as part of a renovation of its Dearborn headquarters and research and engineering facilities. Those projects in Dearborn remain in progress, Ford said, and the Glass House will remain the company’s world headquarters.
But Ford said tax incentives the automaker could receive played a role in purchasing the Detroit train station, though he wouldn’t divulge how much those subsidies could be worth. “If we didn’t get this on the right terms and feel we got the right incentives and feel this made really good business sense, we wouldn’t have done it,” he said. Since late last year, Ford Motor Co. says it has purchased through real estate holding companies the train station, book depository building, The Factory at Michigan and Rosa Parks and vacant land next to the Police Athletic League headquarters and ball field where Tiger Stadium once stood. In late May, about 220 employees from Ford’s electric and autonomous vehicle teams moved into The Factory, a 50,000-square-foot former hosiery factory. Those employees include Bill Ford's daughter, Alexandra English, who is part of the autonomous vehicles business team. “She loves it,” Ford said. “They all do, because of the energy.” Bill Ford indicated the company is not done buying property. He said the automaker is “close” to purchasing The Alchemy building next door to The Factory, which is listed for $2.5 million. “We haven’t yet laid out a master plan for who’s going where and what it will all look like,” Ford said. “But we’ll have a big presence there where our employees can move around from facility to facility and then get back and forth to Dearborn very quickly.”
“We haven’t yet laid out a master plan for who’s going where and what it will all look like. But we’ll have a big presence there where our employees can move around from facility to facility and then get back and forth to Dearborn very quickly.” — Ford Motor Co. Executive Chairman Bill Ford Jr.
Open to the public The automaker will formally detail its Corktown and train station plans at Tuesday’s event — a long-awaited homecoming of sorts for a company Henry Ford founded in Detroit 115 years ago this month. Ford’s last employees left the Renaissance Center in 1996 for Dearborn after the company sold the riverfront skyscrapers Henry Ford II developed in the mid-1970s to crosstown rival General Motors Co. Unlike the RenCen, Bill Ford Jr. wants the train station to be accessible to Detroiters and visitors alike. Ford said the first-floor concourse of the train station would be open to the public, filled with restaurants and retail. He envisions it as a gathering place similar to New York’s Hudson Yards and San Francisco’s ferry terminal. “One thing that’s very important to me is that this is not seen as a corporate takeover of Corktown,” Ford said. The automaker is trying to forge new relationships in the neighborhood, a
JACOB LEWKOW FOR CRAIN’S
Bill Ford Jr. said the first-floor concourse of the train station would be open to the public, filled with restaurants and retail.
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Michigan Central Station timeline Here are key dates in the history of Michigan Central Station:
April 1, 1967: The waiting room closes. Passenger traffic drops to about 1,000 daily.
with offic
May 16, 1910: Construction begins on what will become Michigan Central Station, financed by the wealthy Vanderbilt family through its Michigan Central Railroad (a subsidiary of the New York Central Railroad). It will replace a depot at Third and Jefferson.
1968: MCS’ name is changed to Penn Central Station after New York Central and Pennsylvania railroads merge to form Penn Central Transportation Co.
Jan Chic 11:30
1970: Penn Central declares bankruptcy, and four years later ends up as part of the then-government-owned Conrail successor company.
December 1912: The steel building frame is complete.
1971: The federal government forms Amtrak to run national passenger rails service, and it takes over MCS. It spends $1 million on improvements.
Dec. 26, 1913: At a cost of $2.5 million ($63 million in 2018 dollars), the station opens and the first train, bound for Saginaw and Bay City, leaves MCS at 5:20 p.m. The first arriving train, from Chicago, pulls in an hour later. 1945: Passenger traffic reaches 4,000 a day. The steel frame of Michigan Central Station is erected in 1912.
1956: New York Central System puts MCS up for sale for $5 million, but finds no buyers.
April 16, 1975: MCS is added to the National Register of Historic Places. DETROIT PUBLIC LIBRARY
Passengers line up to board a train at Michigan Central in Detroit.
June 20, 1975: Amtrak hosts a formal reopening of the waiting room. Dec. 27, 1985: New York-based Kaybee Corp. buys MCS for an undisclosed sum,
Dec Mark undi
199 Amb “Mat
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8 trendy area west of downtown that’s already seeing a spike in real estate prices following news of Ford’s arrival. Ford’s event in front of the train station in Roosevelt Park on Tuesday is open to the public on a first-come, firstserved basis. At 6 p.m., the company plans to hold an outdoor community meeting with residents at Bagley and Trumbull. “It’s really important that we become part of the community and that we’re not isolated or insulated from it,” Ford said. Ford’s cautious approach mirrors the past sentiments of the train station’s former caretaker, businessman Matthew Moroun, who quarterbacked the sale of the depot, which his father, Matty, bought in 1992. “I don’t want it to be a castle,” Moroun told Crain’s last September. Indeed, as Moroun was preparing last fall to showcase the station at the Crain’s Detroit Homecoming opening dinner on Sept. 14, Ford was already on the hunt for property in Detroit. Bill Ford said he attended an event at The Factory last summer and thought it was “a terrific building.” “Coincidently, our Team Edison, which is the AV/EV team that was being formed, was looking for their own space,” Ford said. “So we (bought) The Factory.” Businessman Thomas Buhl, who renovated The Factory with his brother, Robbie, set up a meeting in October between Moroun and Ford officials, Moroun said. Matthew Moroun and Bill Ford Jr., the scions of two of metro Detroit’s wealthiest families, both described the negotiations as respectful. “We never really hit any stumbling points with Matt along the way, which is obviously also important,” Ford said. Moroun’s family has faced years of criticism for sitting on the depot and only recently installing windows to placate Mayor Mike Duggan in a deal for riverfront land the Morouns needed to build a new Ambassador Bridge. In announcing the sale of the station, Moroun said Ford’s vision was “the grand development I was looking for.” Bill Ford said the Corktown campus “dwarfs” his past major projects to modernize the Ford Rouge plant and move the Lions football franchise back to Detroit in 2002. When asked if the train station will be his legacy, Ford replied: “Don’t put the shovel on me yet. I’m hoping I have a little bit of a runway yet and certainly wouldn’t like this to be my final act.”
AIN’S
Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood
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STATION FROM PAGE 1
Straddling the era between the Gilded Age and the Roaring Twenties, the train station once was a roaring, mammoth and ornate transportation nexus that sent soldiers to fight two world wars and welcomed home millions of passengers. It’s how you got to Detroit in an age when horses shared the streets with cars. “For 75 years, the depot shipped Detroiters off to war, brought them home, took them on vacation and sent them off to visit Grandma. It was Detroit’s Ellis Island, where many generations of Detroiters first stepped foot into the city for factory jobs,” wrote Dan Austin in the definitive history of the train station for HistoricDetroit.org. The three-story train depot and eighteen-story tower (intended to be offices and a hotel) were designed in the Beaux-Arts style by New York Citybased Warren & Wetmore and St. Paul, Minn.-based Reed and Stem firms, the architects that jointly designed New York City’s famed Grand Central Terminal, according to Austin. Featuring a sprawling concourse, marble walls, vaulted ceilings, ornate columns and an arcade of shops and dining, the building opened at a cost of $2.5 million (or $63 million in 2018 dollars), financed by the wealthy Vanderbilt family of railroad barons through its Michigan Central Railroad. The first train left the station on Dec. 26, 1913. That was weeks ahead of schedule because the depot it intended to replace caught fire that day. Michigan Central Station opened little more than a year after the Titanic sank and eight months before World War I broke out in Europe. Henry Ford was 50 years old in 1913, but his Ford Motor Co. was just a decade old. The Model T had been on the road for only five years, and in 1913 Ford sold 170,000 of them, competing against brands like Willys-Overland, Studebaker, Maxwell and Brush, that are now ghosts. In 1913, airplanes were still an exotic wonder. Detroit’s population was about 500,000 in 1913. It would peak at 1.8 million in 1950, and today is about 666,000 — or closer to what it was when the Michigan Central Station opened. Over the years, the train station would see passengers such as Presidents Herbert Hoover, Harry Truman and Franklin Roosevelt, comedian Charlie Chaplin magician Harry Houdini, and inventor Thomas Edi-
www.crainsdetroit.com
BURTON HISTORICAL COLLECTION
Travelers wait in line at gates to the tracks inside Michigan Central.
son, according to Austin and others’ research. In 1953, a train delivered 18-year-old rookie Al Kaline just down the road from Tiger Stadium. By the time the future Mr. Tiger stepped onto the Michigan Central Station platform, the building was already facing obsolescence. Construction of the nation’s vast system of highways — filled with cars produced in Detroit factories not far from the train station — and rise of domestic air travel doomed the terminal to eventual abandonment and ruin. The last train left in 1988. The building came to be owned by local trucking magnate and Ambassador Bridge owner Manuel “Matty” Moroun when be bought the prior owner’s construction liens for an undisclosed price in 1995. Critics blasted him for allowing the station to fall further into ruin; although he and his family lamented that much of the building was already stripped by 1995, and it was a costly albatross too expensive to fully renovate or demolish. So it sat. At times, Hollywood came calling to use it in movies such as “Transformers,” “Four Brothers” and “The Island.” But mainly, it sat. Decaying. A generation of vandals, scrappers, graffiti artists, blight enthusiasts keen to take elegant dystopian photos of the decay for Instagram and anyone looking to make a statement on post-industrial American decline found their ideal symbol in the Corktown train station. It served as a metaphor instead of serving passengers. A litany of ideas, ranging from realistic to silly, for the station’s future were floated over the years and each collapsed because of the gargantuan
cost required to make the train station habitable for any commercial or even basic human use. A police station. A casino. A homeland security complex. An international trade center. Offices and retail and residences, to finally spark gentrification of the Corktown neighborhood. None of it left the drawing board. Too expensive. Too risky for investors. Too bureaucratic after 9/11. And gentrification came to Corktown anyway despite the ruined train station, in the form of a popular barbecue joint. Moroun spent millions to stabilize the train station, most notably with a new roof and more than a thousand new windows. Security was stepped up. Decay was halted. Crain’s in 2017 hosted a dinner to mark its fourth Detroit Homecoming inside the station’s 110,000-square-foot concourse. As money and people began to return to Detroit, in a renaissance that’s been a boon to some places but remains theoretical in others across the city, executives at Ford began to eye the station. Henry Ford, who used the train station in his travels aboard his own private railcar, was once interested in Corktown land, but nothing came of it. Today, the Blue Oval has come to the station’s rescue. In a bit of irony almost as grand as the train station, the building constructed to serve steam and electric trains will become Ford’s new campus for its autonomous and electric-car divisions. The mode of transportation that birthed the Motor City but killed Michigan Central Station will end up saving the building. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19
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
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aily. and
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with the intent of making it a retail and office center. Jan. 5, 1988: Train No. 353, bound for Chicago, is the last train to leave MCS, at 11:30 a.m. December 1989: Real estate developer Mark Longton Jr. buys MCS for an undisclosed price. 1995: Trucking industrialist and Ambassador Bridge owner Manuel “Matty” Moroun acquires the train station
via his Controlled Terminals Inc.
prevent its destruction.
Oct. 3, 2003: Detroit Mayor Kwame Kilpatrick announces plans to buy the station and renovate it at a cost of up to $150 million as the city’s new police headquarters. The idea fails.
May 2009: Moroun announces plans to turn the train station into a federal homeland security complex. It goes nowhere.
April 7, 2009: Detroit’s City Council passes a resolution requesting the emergency demolition of MCS at Moroun’s expense. It’s placement on the National Register of Historic Places helps Michigan Central’s waiting area. BURTON HISTORICAL COLLECTION
April 2015: Moroun agrees to install 1,000-plus new windows in the train station as part of a land swap deal that gives him city park acreage he needs for his proposed second Detroit River bridge in exchange for $5 million worth of improvements to the rest of the expanded waterfront park. 2015-16: Moroun’s Warren-based Crown Enterprises Inc. spends $8 million on the station to install a new freight elevator, remove asbestos, replace the roof and add the new windows. Sept. 13, 2017: Crain’s Detroit Business hosts the opening dinner for its fourth annual Detroit Homecoming, with comedian and
Detroit native Lily Tomlin talking to about 400 former Detroiters and local business and civic leaders, inside MCS’ concourse. Matthew Moroun: Family sold the station to Ford
March 19, 2018: Crain’s breaks the news that Ford Motor Co. is in talks to buy the train station.
June 11, 2018: Ford officially announces its acquisition of MCS. The price hasn’t been disclosed. June 19, 2018: Ford schedules announcement of its plans for the train station and the Corktown neighborhood. Compiled by Bill Shea. Source: HistoricDetroit.og, Crain’s research
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.
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C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
ACQUIRE FROM PAGE 3
“This is exciting for people at Plante Moran. It creates a bigger sandbox for our people to play in. It will create opportunities. EKS&H has a very large energy Jim Proppe: practice, which Creates a bigger we currently sanbox. don’t have, and we have things they don’t have,” Proppe said. “We are excited about the opportunity to partner with Plante Moran, a like-minded firm deeply rooted in its commitment to clients and staff,” said EKS&H CEO Bob Hottman in a press release. He will remain with the combined entity. “When we began discussions with Plante Moran, we were pleased to find a true consistency of our core values and philosophy and a strong cultural alignment. Our profession will face many changes in the com-
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“It will create opportunities. EKS&H has a very large energy practice, which we currently don’t have, and we have things they don’t have.” Jim Proppe
ing years. We will be better and stronger facing them together with our new colleagues in the Midwest.” Proppe said terms of the deal would not be released “but no money changed hands.” Plante Moran has no other discussions currently with other CPA firms about possible acquisitions, he said. “We talk to firms all the time, but we don’t have any other plans at the moment. We’ll work hard to get this integrated in the coming months.” Founded in 1924, Plante Moran has spent two decades on the Fortune list of 100 Best Companies to work for, climbing into the top 20 this year. The firm has clients in all 50 states and in 124 countries, providing traditional audit, tax and wealth-management services and an array of consulting services. It serves clients in a range of industries, including manufacturing, health care, real estate, construction, private equity, not-for-profit, financial services and the public sector. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2
BANKRUPTCIES The following businesses filed for bankruptcy protection in U.S. Bankruptcy Court in Detroit June 8-14. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. J E.L. Bailey and Co. Inc., 6904 Ravines Circle, West Bloomfield Township, voluntary Chapter 7. Assets and liabilities not available. J Town Center Flats LLC, 45343 Market St., Utica, voluntary Chapter 11. Assets and liabilities not available.
C R A I N ’ S D E T R O I T B U S I N E S S // J U N E 1 8 , 2 0 1 8
31
THE WEEK ON THE WEB
RUMBLINGS
GM names first female CFO
Blue Oval on the train station? ‘Probably not’
JUNE 8-14 | For more, visit crainsdetroit.com
T
he appointment of Dhivya Suryadevara as CFO of General Motors Co. will make it the only automaker with a female CEO and CFO — and one of two Fortune 500 companies with women in both posts, Automotive News reported. The Hershey Co. is the other. Suryadevara, 39, a Harvard Business School graduate, will succeed Chuck Stevens on Sept. 1, GM said last week. Suryadevara has been GM’s vice president of corporate finance since July 2017. She will report to CEO Mary Barra, 56, who has been head of the automaker since 2014. Barra and Suryadevara are the first women in their respective positions at the automaker. “General Motors has a legacy of firsts when it comes to minorities and women,” the company said in a separate statement last Wednesday. “We’re proud of it, and it is the foundation on which we'll keep building. We still have more work to do, and we are determined to do it, the right way, for the long term. This mission has no finish line.” Suryadevara, a native of India, joined GM in 2005 and has since been a part of many of the Detroit-based company’s crucial business decisions, including its sale of Opel to PSA Group last year, GM’s acquisition of Cruise Automation, GM’s $500 million investment in ride-hailing company Lyft and a $2.25 billion investment in Cruise last month. She was GM’s treasurer from 2015 to 2017 and responsible for the management of business and investment activities of GM’s $85 billion pension operations as CEO and chief investment officer for GM Asset Management 2013-2017. “Dhivya’s experience and leadership in several key roles throughout our financial operations position her well to build on the strong business results we’ve delivered over the last several years,” Barra said in a statement.
BUSINESS NEWS J Andrew Landau, who co-founded Chalkfly LLC in Detroit in 2012 with his brother, Ryan, raised a seed funding round of $175,000 for his new company, Jewel Commerce LLC. J Quicken Loans Inc. signed a fiveyear extension of its previous sponsorship deal with the Detroit Lions. The Detroit-based lender’s Rocket Mortgage brand will now present this year’s training camp. J The Social Venture Fund, a student-led fund based at the Zell Lurie Institute for Entrepreneurial Studies at the University of Michigan’s Ross School of Business, announced it has invested in Six Foods, an insect-based food company headquartered in San Francisco. J Domino’s Pizza Inc. is awarding grants to municipalities across the U.S. to fix pothole-stricken roads. But the Ann Arbor-based pizza giant didn’t start with its home state of Michigan, despite concerns this winter and spring over lack of road-repair funding. J Tom Gores last week hired a Detroit Pistons head coach for the
W
hen businessman Matthew Moroun announced last week his family sold the Michigan Central Station to Ford Motor Co., he said the automaker’s iconic Blue Oval would “adorn” Detroit’s long-vacant train depot. But the buyer is not so sure. “I know Matt said it, but I don’t know. Probably not,” Ford Executive Chairman Bill Ford Jr. said last week in an interview with Crain’s and Automotive News. Ford said the company wants whatever signage it affixes to the 104-year-old train station to be “within the taste” of a building that’s been on the National Register of Historic Places since 1975. “In an old historic building like that, I don’t want to put some jarring new thing on,” Ford said in the interview in his 12th floor office in
Ford Motor’s Glass House headquarters in Dearborn, where the Blue Oval is prominently displayed on the roof. “As I think about signage, could we do it on the building? Yeah, but what would it look like?” Ford added. “We have to make sure it has to really fit. Could we do it next to the building on the ground? Maybe. Not really sure yet.” Ford Motor Co. has a lot of plans to work out for the train station it purchased from the Morouns last month for an undisclosed sum. The company is setting a tentative timeline of four years for renovating the old depot. Bill Ford also said he doubts the company would try changing the name of the building — an iconic Detroit landmark. “People will call it the train station anyway,” he said.
NANCY PHARES
Michigan State Fair LLC will bring carnival rides indoors this year as its now roomier venue, the Suburban Collection Showplace, completes an expansion costing more than $10 million. The Novi exhibition center expects work on an additional 180,000 feet of event space to finish ahead of the Aug. 30-Sept. 3 agriculture event and festival. With 20 percent greater indoor capacity, the state fair is substantially changing its layout and traffic flow this year, said Steve Masters, the fair’s executive director.
Detroit digits A numbers-focused look at last week’s headlines:
$124.6 M
Revenue reported by Detroit’s three casinos for May — a 3.9 percent year-over-year increase.
48 percent
The percentage gain in Detroit’s median home sale price over the past year, according to May marketing data from Realcomp Ltd. II.
$35
The price of T-shirts being sold by the Detroit Tigers that feature Rally Goose, the team’s newly adopted secondary mascot.
fourth time in his eight years as owner, bringing former Toronto Raptors coach Dwane Casey on board to replace Stan Van Gundy. J Bucharest Grill expects to open its fifth location in August. The fast-casual restaurant got its start in downtown Detroit but moved out, and now it’s returning with a bigger space aimed at drawing in downtown event traffic. J The ongoing narrative that the 2018 Detroit Tigers are a fun, interesting team despite being in Year 1 of a multi-season rebuilding cycle may have suffered a major setback when slugger Miguel Cabrera was lost for the season with an injury last Tuesday night. J PBS series “Antiques Roadshow” filmed around Meadow Brook Hall in Rochester Hills last week with a crew of 45 and help of 110 volunteers from Detroit Public Television. J Avalon International Breads is growing its Detroit presence yet
again with a cafe and grab-and-go station in the new Wayne State University Mike Ilitch School of Business. J B. Nektar Meadery in Ferndale is releasing a new line of beverages inspired by “American Gods,” a fantasy drama TV show based on a novel of the same name by English author Neil Gaiman. J Singh Development Co. LP last week began construction of a $65 million mixed-use complex on more than 4 acres of vacant land at the south end of Royal Oak. J A social network for digital currencies, automated software for machine tooling and a Hispanic party planner are among six business concepts to be developed in the University of Michigan’s Desai Accelerator this summer. J East African restaurant Baobab Fare, a Hatch Detroit winner, has signed on to take over the corner space in the redeveloped Woodward Grand building in Detroit’s New Center. Neighborhood cafe Wilda’s was signed on for the spot, but had to bow out due to lack of funding.
OTHER NEWS J The Suburban Mobility Authority for Regional Transportation has issued a warning notice of mass layoffs of bus drivers, mechanics, dispatchers and managers in the event its millage proposal in Macomb, Oakland and Wayne counties is defeated in the Aug. 7 primary election. J The University of Detroit Mercy hired Mike Davis, who once led Indiana to the NCAA finals, as its 22nd men’s basketball coach. J The 21st annual Ford Arts, Beats & Eats Aug. 31-Sept. 3 will spotlight the culinary, theater and visual arts talents of local college students and an enhanced health and wellness program, organizers announced last week.
Lt. Gov. Brian Calley said if he’s elected governor, he’ll propose spending the full $1.2 billion in the 2020 fiscal year, speeding up the road-funding plan by a year.
Calley wants to finish $1.2B road funding plan early
O
ne of the biggest caveats of Gov. Rick Snyder and the Legislature’s 2015 plan to pour an extra $1.2 billion annually into Michigan’s crumbling roads was that the new money would not fully materialize until 2021. They structured the plan to phasein the new money through a $600 million tax hike on gasoline and vehicle registration fees in 2017 and then gradually increase withdrawals from the state’s general fund budget. Lt. Gov. Brian Calley said if he’s elected governor, he’ll propose spending the full $1.2 billion in the 2020 fiscal year, speeding up the road-funding plan by a year. “One of the commitments I’m making is that we’ll complete the $1.2 billion road-funding package early in my first budget. It will be in there, $1.2 billion, as opposed to waiting until 2021,” Calley said in an interview for the Crain’s “Detroit Rising” podcast. Because of Michigan’s continued economic growth, the state’s general fund is collecting more tax revenue than previously projected, Calley said. Last week, lawmakers sent Snyder
a budget that funds $900 million of the $1.2 billion goal for the fiscal year that begins Oct. 1, $150 million more than planned in the 2015 road-funding plan. “We have the (revenue) growth to justify that,” Calley said. Calley is seeking the Republican nomination for governor in the Aug. 7 primary against Attorney General Bill Schuette, state Sen. Patrick Colbeck and Jim Hines, a Saginaw obstetrician. In the interview, Calley discussed his approach to fostering future economic development in Detroit and working to fix the city’s schools. Michigan’s new tax incentive programs allow developers or new companies to capture new income and sales taxes generated by the business or residents of new development. Calley said it’s a better approach than past incentives programs that centered around tax credits that could sometimes be worth more than a company’s total tax liability, resulting in a tax refund that depleted the state’s general fund. “We structured the incentives now such that the state can’t lose,” Calley told Crain’s.