GLBM February 2017 by M3 Group Publications

FEBRUARY 2017

INSURANCE INDUSTRY & LOCAL EDUCATION JOIN FORCES Alma Holt, Insurance Leadership Academy student

IN THIS ISSUE •

GOOGLE’S PARENT COMPANY, ALPHABET, CUTS JOBS IN RESTRUCTURING EFFORTS

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BEHIND THE SCENES WITH PRESIDENT OF AF GROUP, LISA CORLESS

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SLEEPWALKER SPIRITS AND ALE RETURNS TO REO TOWN

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FEBRUARY 2017 ON THE COVER Google’s Parent Company, Alphabet, Cuts Jobs in Restructuring Efforts.............................................10 Sleepwalker Spirits and Ale Returns to REO Town............12 Insurance industry & local education join forces.................16 Behind the Scenes with President of AF Group, Lisa Corless................................................................28

NEWS Job Growth in the U.S. and its impact on the Federal Interest Rate................................................................... 6 Starbucks CEO Howard Schultz steps down..........................8 Block Imaging: Meeting Expectations Means Saving Lives.............................................................................14

FEATURE

Commentary.................................................................................................................................................. 4 FEBRUARY 2017

Visual Breakdown..................................................................................................................................... 20 Feature: PNC Offers Opportunities for Employees & Local Children........................... 24 Feature: How Insurers are Fighting Insurance Fraud............................................................ 26 Economy ....................................................................................................................................................... 30 #GLBMIMO................................................................................................................................................ 32 Legislative Corner.................................................................................................................................... 33

INSURANCE INDUSTRY & LOCAL EDUCATION JOIN FORCES Alma Holt, Insurance Leadership Academy student

Business Calendar.................................................................................................................................... 34 Business Spotlight.................................................................................................................................... 35 Greater Lansing at a Glance................................................................................................................ 36 Notable News............................................................................................................................................. 38

IN THIS ISSUE •

GOOGLE’S PARENT COMPANY, ALPHABET, CUTS JOBS IN RESTRUCTURING EFFORTS

•

BEHIND THE SCENES WITH PRESIDENT OF AF GROUP, LISA CORLESS

•

SLEEPWALKER SPIRITS AND ALE RETURNS TO REO TOWN

Cover photography by Erika Hodges

CORRECTION In the previous issue of Greater Lansing Business Monthly, James Sopha of Jackson National Life Insurance Company was identified as President and CEO. His correct title is President of Jackson National Life Insurance Company.

Greater Lansing Business Monthly | Volume 30, Issue 2

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Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807.

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Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Manager: Jill Bailey Account Managers: Austin Ashley Megan Fleming Manny Garcia

TOMORROW’S

WORKFORCE C

ompany human resource professionals and business owners have been hand wringing for years because of a perceived lack of talent in the market. With generational shifts, advances in technology and social media obsessions, it’s difficult to push aside all the clutter of political and economic chaos to focus on a solution. I guess they could just throw those hands up into the air and accept defeat or fall into a complacency funk acknowledging that talent shortages are the new normal. Have you met any of these Eeyore-esque folks standing around the water cooler? Most businesses with big-picture leadership understand that they cannot grow and keep pace with strategic goals without a talent strategy.

Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Angela Carlone

Many factors play a role in fortifying a team-building plan. And, in many ways we need to turn to the world of education for answers. The connection between careers and learning is clear. Schools and educators have been tasked with readying a workforce since the dawn of time, however education is shifting. It isn’t just the community colleges, trade schools or apprentice programs working to build the workforces of the future. These days, we’re counting on all educational institutions including high schools.

Kerry Hidlay Nikki Nicolaou Photographer: Erika Hodges Editor: Megan Martin Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Calvin Jones — Government Relations Director, Lansing Board of Water & Light Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore

In mid-Michigan, we’re proud of the insurance sector. They are a driving force in our community and employ thousands of our friends and neighbors. And to stay on top of their games, an educated workforce is critical. Young children don’t usually profess to want a career in business or insurance. It’s our job to help the future workforce see a career path that is appealing. Insurance companies are partnering with educational institutions and higher education is reaching out to area school districts. Modern day education is all about innovation, accessibility, and suitability. Farm Bureau Insurance and AF Group have worked with Olivet College as a part of its Risk Management and Insurance program. The program has been highly rated across the country. With this in mind, Olivet College is now reaching down to local schools like Lansing School District and most recently Charlotte Public Schools to help them gain an understanding of the industry while receiving college credit. In state government, I was fortunate enough to work on the Michigan’s Career Pathways system many years ago. It was designed to bring relevance to education. After all, the more kids understand why something is important to learn and its context, the clearer the vision becomes. The partnerships among industry, higher education and the K-12 system are ways to highlight popular trends in education aimed at building tomorrow’s workforce.

Tom Ruis — Vice President, Fifth Third Bank Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Tiffany Dowling | Publisher

Diontrae Hayes — Supervisor Charter Township of Lansing

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JOB GROWTH IN THE U.S. Its impact on the Federal Interest Rate BY SARAH SPOHN

The nation is glad to be closing the book on the Great Recession’s unemployment rates and low household incomes. According to a story published in The New York Times in December 2016 by Neil Irwin, the new jobs numbers signal the end of an economic era — one which included high jobless populations last seen more than 70 years ago. Patricia Cohen (The New York Times) reported that the economy “has added private sector jobs for 80 months, put another 178,000 people on payrolls last month and pushed the unemployment rate down to 4.6 percent today from the 4.9 percent the previous month.” Michigan has seen its share of ups and downs economically, many of which were unique to the rest of the nation. In order to fully understand what the new facts and figures mean, let’s recap our outlook over the Great Recession and the last decade. Michigan State University (MSU) Economics Professor Dr. Charles Ballard spoke about the nationwide effects of the recession. “It was by far the worst downturn since the Great Depression of the 1930s,” Ballard said. “With over eight million job losses, the economy was reeling from the blow.”

“There’s no way to overstate how horrible the Great Recession was,” Ballard said. “Even though our economy is more diversified than it was before, if you go back 50 years — 25 percent of our economy was the auto industry, and now it’s six percent. But still, a huge downturn in the auto sector like we had in the great recession has to be bad for Michigan, and it was in a big way. So, the most astonishing statistic is that in one month — from December 2008 to January 2009, we lost more than 100,000 jobs. From the top to the bottom, we lost 18 percent of all the jobs we had, which was not distributed evenly across all sectors. Michigan lost half of its manufacturing jobs in that period and then, in the last six years, we’ve gained some of them back.” Locally, large employers including MSU, Sparrow Hospital, the State of Michigan and other businesses headquartered in Lansing including Liquid Web and Niowave, aided the area from being virtually wiped out, much like southeastern Michigan cities were. “The Lansing area is close to its all-time high for employment rates,” Ballard said. “Michigan is still well below its all-time high for employment, which was achieved in 2000.

Ballard spoke about Michigan’s economic highs and lows regionally during this time. “Michigan had a horrible decade in the first decade of this century,” he said. “Michigan employment peaked in the spring of 2000 and bottomed out almost exactly ten years later in the spring of 2010.” 6

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That’s because there are parts of Michigan, especially in the southeast side of the state, that were hit even harder than Lansing.” Even after the recession began to release its grip, there were still many people looking for jobs in the workforce. “It’s really only in 2015 that we finally got the labor market tight enough that workers could start getting noticeable wage increases, and so that’s why household income went up quite strongly in 2015,” Ballard said. While the new numbers show great improvement and look promising for the nation’s economy in the future, political uncertainties can greatly impact the outlook for 2017 and beyond. “We’re not really sure what policies will be enacted,” Ballard said. “We’re not sure what the administration’s proposals will be. A lot of policies require congressional approval, and the Federal Reserve has considerable power over interest rates.” Federal interest rates were increased last December, after keeping it near zero for seven

"It’s really only in 2015 that we finally got the labor market tight enough that workers could start getting noticeable wage increases, and so that’s why household income went up quite strongly in 2015." Dr. Charles Ballard, Michigan State University Economics Professor FEBRUARY 2017

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years. This December, rates were increased for the first time this year. This 0.25 percent increase takes the rate of 0.50 to 0.75 percentage points. This increase will affect homebuyers, savers and investors.

new debt. That certainly seems like it would put upward pressure on interest rates, regardless of what the Federal Reserve does. I think they’re quite likely to respond to that by fulfilling the suggestion that they would raise interest rates.”

Ballard spoke on the increased interest rates.

The unknown, and unanticipated effects are both especially hard on small business, according to Rob Fowler, president of the Small Business Association of Michigan (SBAM). Fowler is very aware of the impact of national changes on Michigan’s economy and business.

“The Federal Reserve has indicated a willingness to continue on that path, perhaps three more rate increases in the next year,” he said. “And that is certainly consistent with a lot of the things with policies that might be enacted next year.” Many of President Trump’s proposed plans and stances have been controversial and contradictory, so uncertainty is in the air for many businesses. One of such proposed changes is a not an increase, but rather, a cut. With this campaigned tax cut, the U.S. deficit would be increased, according to Ballard, by about half a trillion dollars per year. “That will mean that the U.S. Treasury will have to go into the credit markets, more and more, to look for people who are willing to lend us money, to refinance our existing debt and to finance

“Uncertainty is always a challenge for business and the sooner it comes clear what part of that agenda is going to be implemented, the better I think — for our businesses here in Michigan,” Fowler said. One thing that’s become more certain is the need for businesses, especially small businesses, to attract talent and retain employees. Many professionals start off at small companies and then find jobs at larger corporations. Small businesses have had trouble in the past retaining employees, especially with being able to afford to offer health care to their employees, with

the Obamacare generation. This is one major change that might be altered with the new President’s plans and proposals. Although the new jobless rates are down, there might be a whole new set of issues to face. Gone are the days of thousands of able-bodied workers looking for jobs, but rather workers ready for wage raises and better benefits. “I think some of our members would say now you’ll have to pay more,” Fowler said, of attracting and retaining talent, “which is an issue if you’re in business, but it’s a really good issue for Michigan.” Although some political facets like proposed legislation, laws and rates are unknown and fairly difficult to predict, the nation’s job rates reports show a light at the end of the recession’s tunnel. Sarah Spohn received her degree in Journalism from Lansing Community College. She’s a concert junkie; living and breathing in both the local and national music scene. She is proud to call Lansing her home, finding a new reason every day to be smitten with the mitten.

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PUTTING PEOPLE FIRST Starbucks CEO Howard Schultz steps down, but this isn’t goodbye BY ADAM LANSDELL

The man behind one of the largest brands in the world will be taking a step out of the spotlight this April. However, longtime CEO and Chairman Howard Schultz’s illustrious career with the coffee giant isn’t coming to an end entirely. The mantel of power is poised to shift to veteran board member, COO and acting president, Kevin Johnson, while Schultz is expected to remain on the board. On March 1, the big transition will take effect. If you recall, this isn’t the first time Schultz has left the green siren. The man, that’s often credited for establishing the framework for success that’s followed the brand since initially joining as director of operations and marketing in 1982, has thrived throughout a tumultuous journey. Bringing the brand from hometown favorite to a globally traded company is no small feat. 8

So what makes Schultz’s exit such a big deal? Back in the year 2000, when Schultz stepped away from a 13 year tenure as CEO, the company entered a downward spiral. While he maintained the role of chairman to focus on global expansion efforts, the ball was effectively out of his court. As the company continued to grow over the next half-decade, it did so too quickly, with little foresight. Stocks dropped 42 percent by 2007 and America embarked on the Great Recession. With an additional 4,000 locations having been added in this brief absence, turmoil set in. Noting the failure of his successors, Schultz saw the time fit for his return in 2009. With a company left devastated, picking back up the pieces was no easy feat – yet Schultz persevered by undertaking one of the business world’s largest and inspiring turnarounds as the dust of the economy’s crash began to settle.

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When the numbers seemed to be all that mattered, Schultz doubled down and invested in something else – the people. With the rapid expansion that occurred, the brand experienced a significant decline in quality. Employees were hastily trained and this was echoed by the dissatisfaction of its customers. In a seemingly ludicrous plan to glue the pieces back together, Schultz ceased operations at nearly 600 locations to retrain its employees. With a newfound grasp on quality and an emphasis on customer service, things began to change. Coupled with the introduction of the now infamous Starbucks Rewards program, the company was back on its feet, reaching a then all-time-high in stock value in 2011, all because of the triumphant return of the beloved CEO. So this naturally leads us to ask, why does he keep coming back? Essentially, Starbucks is his baby.

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“Over the past two decades, I have grown to know Starbucks first as a customer, then as a director on the board and, for the past two years, as a member of the management team,” remarked Schultz in the company’s official announcement of the transition. “Through that journey, I fell in love with Starbucks…” Schultz views business practices through the lens of humanity, not just profits. He not only placed a stake in the company, but its people – something that the brand maintains to this day. This strategy played a pivotal role in revitalizing the brand, and has since led to the fruition of other great brands that emulate a dedication to people. Starbucks recognizes the work of its employees on every level, offering stock options to all, acknowledging them as “partners.” It’s these intricacies toward acknowledging the importance of a team and a community above profits, that’s cemented Schultz’s legacy as a visionary in 20th century commerce.

scaling global businesses — will continue to help Starbucks navigate this new period of worldwide growth and innovation.” The future remains bright, and Starbucks looks to continue its tradition of innovation with a promise for additional premium locations. As change comes, one thing remains true, Schultz’s legacy and traditions toward putting people first will remain at the heart of this organization.

Adam Lansdell is an Alumni of Grand Valley State University, and currently a Communication Specialist with M3 Group of Lansing. With a passion for all things creative it comes as no surprise that he’s also a musician, movie buff and graphic designer. Adam spends his down time biking, and spending too much of his personal income on concert tickets or vinyl records.

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So what now? Should we fear the worse? Poignantly so, things will change. There are big shoes to be filled. Yet, Schultz is adamant that this time, history won’t repeat itself. “As I shift my focus to this next wave of retail innovation, I am sincerely pleased that Johnson, our current president, COO, a seven-year board member and my partner in running every facet of Starbucks business day-to-day over the last two years, will be assuming the duties of Starbucks chief executive officer in April 2017,” explained Schultz in an interview from Starbuck’s online Newsroom. “This move ideally positions Starbucks to continue to profitably grow our core business around the world.” While his tenure as CEO ends, Schultz promises to be more attentive as a board member. By having a more active focus this time around, Schultz plans to learn from his mistakes of negligence and retain a better handle on his responsibility to halt operations and business practices that may be detrimental to the future of the brand. Schultz is adamant that his next successor will be the right one. Having extended the offer to Johnson personally, he’s never been more excited about where the brand is headed next. “Kevin brings to the CEO role an unparalleled understanding of the market dynamics and strategic choices that have driven Starbucks to become one of the world’s most recognized and respected companies and brand,” said Schultz. “We share a passion for customer-focused innovation and a commitment to preserving Starbucks’ heritage. Our complementary backgrounds – my entrepreneurial journey building Starbucks and Kevin’s decades spent

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GOOGLE CURBS EXPANSION OF FIBER OPTIC NETWORK, CUTTING JOBS BY SARAH SPOHN

When Google underwent corporate restructuring in 2015, the ever-so-popular search engine company formed an umbrella company, Alphabet. That same year, Alphabet’s company value even surpassed prominent hardware and software mainstay Apple. A year later, Google’s parent company, Alphabet, is now restructuring. According to a New York Times article published in October 2016 by Daisuke Wakabayashi, the company is “signaling a strategy shift for one of its most ambitious and costly efforts; bringing blazing-fast web connections to homes across America.” The article also stated that Alphabet announced “it was curbing the expansion of its high-speed fiber optic internet network and reducing staff in the unit responsible for the work,” but did not provide numbers on the amount of jobs to be cut. This shift also lead Chief Executive of Access, Craig Barratt, to step down; halting new technologies and methods of deploying highspeed internet. The American multinational conglomerate Alphabet was founded in October of 2015 by two Google founders, Larry Page and Sergey Brin, in Mountainview, California. The company’s portfolio includes varying industries, everything ranging from technology, life sciences, investment capital and research. According to the founders, their name is two-fold. The same alphabet — a collection of letters making up a language, which we’re familiar with — is the core of how Google works and it also signifies the meaning of alpha: investment return above benchmark.

potential outlets of Dallas, Los Angeles and the Phoenix expansion will be halted. While Alphabet surpassed Apple’s value in 2015, the shift did not last long; as Apple once again took its place at the top of the most valuable companies. The recognizable fruit-icon computer giant is well on its way to becoming a trillion dollar business, constantly being at the front end of Forbes and Fortune 500 lists. Local Capitol Macintosh owner, David Smith, admits internet is not their area of expertise, although Apple computers are. And for most, these two go hand-in-hand. Smith spoke about the restructuring of Alphabet. “It seems that Google has realized how expensive it is to install the infrastructure — wires/cables from the source to destination (home and/or business), government permitting, digging across roads, traversing pipelines, maintenance of the lines,” Smith said. “And then getting customers to sign up and pay for a very high speed network.” The Google Fiber is just a single aspect of Alphabet, and a costly one at that. “The fiber business accounted for the bulk of $280 million in quarterly capital expenditures — money spent on things like equipment,” as stated in The New York Times. Internet is a very valuable tool in today’s workforce, even in comparison to the new millennium statistics. In 2000, the Pew Research Center found nearly half (48 percent) of American adults did not use the internet. Today, only 13 percent of U.S. adults aren’t

Google Fiber was introduced to the market in 2010 and was in an effort to compete against cable and telecommunications operators, who had great pull in the consumer internet market. Fiber optic internet and television became offered in eight metro areas including Atlanta, Nashville and Salt Lake City. The service costs $70 a month for internet and $60 for television. While the service will likely remain in current cities, the additional 10

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going online, according to a Pew Research Center analysis from September 2016. The trend continues to catch on with new generations, especially with government and social service programs encouraging and utilizing online applications rather than prior, dated methods of completion. From the data found, analysis showed that cost was a barrier, with 19 percent of U.S. adults listing the expense of internet service or computers as keeping them from utilizing the World Wide Web. Smith is well aware of the cost factor. “Yes, we all want high speed internet; but at what price point?” he questioned. The world continues to advance and the World Wide Web rides the newest, latest, greatest, fastest wave of technology. Smith spoke about the advances and likely future of the industry. “Wireless transmission is where the industry is heading as speeds ramp up faster every year,” he said. “There are still infrastructure costs, but they’re much lower and then, of course, making the sale to the end user — but that’s getting faster and less expensive every year (and more reliable).” Although Google Fiber may be starting to unravel at the seams — and a planned restructuring will soon undergo Alphabet — one thing is for sure: technology companies continue to secure their spot in the market for the most connected, utilized and essential workplace tools.

"It seems that Google has realized how expensive it is to install the infrastructure — wires/cables from the source to destination (home and/or business), government permitting, digging across roads, traversing pipelines, maintenance of the lines." David Smith, owner of Capitol Macintosh FEBRUARY 2017

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Ryan Wert, (left) executive director of the REO Town Commercial Association and Jeremy Sprague, Sleepwalker’s president, head brewer and founding partner.

SLEEPWALKER SPIRITS AND ALE RETURNS TO REO TOWN BY OMAR SOFRADZIJA | PHOTOS BY ERIKA HODGES

Jeremy Sprague needed a new home for his microbrewery. Ryan Wert needed a tenant for the building he wished to buy. And REO Town-goers needed more options for a night cap. Solutions came, as they sometimes do, via lunch. “Jeremy and I are friends. I see him probably weekly, at least,” said Wert, who is executive director of the REO Town Commercial Association. “I hounded him every time we had lunch, until he said, ‘I’ll look at REO Town.’’’ The result will be the relaunch of Sleepwalker Spirits and Ale, a microbrewery that is expected to open in the summer of 2017 at its new location at 1101 S. Washington Ave. The brewery was started in 2014 at the Allen Market Place building on Kalamazoo Street but went on hiatus last year after a partnership split. “It’s an exciting time for REO Town,” said Sprague, Sleepwalker’s president, head brewer and founding partner. “I used to live not far 12

from there. I know the area quite well. I used to go to (the original) Ramon’s (restaurant on Washington) all the time with my dad when I was a kid.”

“Obviously, REO Town has had a good five years. Especially the last year or two have been very strong,” Wert said. “We’ve had a lot of restaurants move in the last two years, but not many bars.”

Sprague said the timing of his need and that of Wert was fortunate. “Timing is everything. The fact that they were doing this (building purchase) while I was looking for a place was kind of remarkable,” Sprague said.

“One of the economic development buzzwords is to create an 18-hour district, so there’s stuff to do 18 hours a day,” Wert said. While REO Town’s eating options and roster of events have been growing, “it was just REO Town Pub after six o’clock.”

Even without a physical presence, Sleepwalker was already a familiar brand in REO Town. “As Sleepwalker was in its early stages, we started using their stuff for a lot of our REO Town events,” Wert said. “They were our exclusive beer at our events.” To Wert, Sleepwalker is a key part of the next phase of rejuvenation for REO Town. It is one of two bars (along with the Rusty Nail) scheduled to open along that stretch of Washington this year, joining REO Town Pub.

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“There are so many more bodies in the evening now, with few options,” Wert said. “It’ll be a really good thing in extending the daily life of the neighborhood.” Sprague welcomes the competition as something that will bring in more people, in turn benefiting all. “I’m really praying REO Town gets a few more eateries and even a couple more watering

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holes,” Sprague said. “I think in the next 12-18 months, it’ll be a really desirable place to go.” Sprague said customers should expect the same lineup of beers as in the old location: “They’ll be able to come back for everything we had … everything we’ve done, I want to preserve all of it. We were on the right track.”

REO Town was considered for the original Sleepwalker back in 2014.

The new 1,650 sq. ft. facility is expected to have 14 taps and an occupancy of up to 60 people. Sleepwalker will be “serving everything from grinders to pizzas, even some cold sandwiches,” Sprague said, in addition to a bar side deli case that will include cheeses, meats and pickles to go.

“Once that happened, things started looking more appealing,” Sprague said. “Some new businesses started moving in.”

“I’m a huge Zingerman’s fan,” Sprague said of the legendary Ann Arbor delicatessen. “I don’t know why we can’t have something like that in Lansing.” But, “the mission will be the same as ever,” Sprague said. “We want people to be able to come in, turn off their waking minds and relax.” “Aesthetically speaking, what we’re going to be looking at is a good reflection of Lansing and of REO Town … it definitely will have some of the grittiness that you’d expect, being in that incredible industrial area,” Sprague said.

“At that time, REO Town wasn’t looking so hot,” Sprague said. But the opening of a new Board of Water & Light facility in the neighborhood proved to be a catalyst for nearby development.

Sprague appreciates the Allen neighborhood’s help in getting his business launched. “The east side is a wonderful part of town. I was excited being a part of changing that part of Kalamazoo (Street),” Sprague said. “Being the sole survivor of Sleepwalker at Allen Market Place, I had to think, where could I get the same support?” “I needed a place that felt like home and felt like family,” Sprague said. While the original Sleepwalker relied on a pool of 57 investors, the relaunch will involve one or two partners, Sprague said. “I believe, I’m hoping they’re already lined up. We have a lot of interest, let me put it that way.”

Sprague hopes to eventually reintroduce spirits to his product lineup and open an adjacent second location offering specialty coffees and light fare. “It’ll basically be a tasting room, but it’s going to be petite,” he said. But rapid expansion beyond that isn’t planned. “Our goal was never to become a Founders [Brewing Co., a popular Grand Rapids-based brewer],” Sprague said. “I would much rather start much smaller to make sure we are treating our customers and employees the right way.” Regardless of size, the goal is getting it right, Sprague said. “We’re not going to exist without REO Town. We won’t exist without good employees. We won’t exist without a good product. To keep up with Sleepwalker’s reopening, check its website at drinksleepwalker.com. Omar Sofradzija is an adjunct journalism instructor at Michigan State University. Prior to that, he was a reporter, columnist and editor at the Las Vegas (Nev.) Review-Journal and Peoria (Ill.) Journal Star. He lives in Haslett, Mich.

Sleepwalker Spirits and Ale, a microbrewery, is expected to open in the summer of 2017 at its new location at 1101 S. Washington Ave.

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MEETING EXPECTATIONS MEANS SAVING LIVES When equipment is as good as new, patients can be too BY ALICIA PILMORE | PHOTOS BY ERIKA HODGES

Imaging equipment has been used by medical professionals since the early 20th century when x-rays were discovered and later used for diagnostic purposes. Now, whether theyâ&#x20AC;&#x2122;re used to see the severity of a broken bone, cancerous tumors or the development of a baby inside its mother, millions of individuals rely

on medical imaging equipment to aid in the treatment of their conditions. To ensure that these machines run properly, medical professionals worldwide depend on manufacturers to construct quality products. In the greater Lansing area, Block Imaging

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provides facilities all over the world with quality equipment that exceeds the expectations of medical professionals everywhere. Block Imaging, which has served the Lansing area since its founding in 1997, buys, sells, refurbishes and repairs medical imaging equipment and parts for medical facilities in a number of countries. The company focuses primarily on repurposing imaging machinery and distributing its equipment to customers in need of high-quality equipment. Not only does the equipment that Block Imaging produces help people, but its repurposing efforts help the environment as well. “Ninety percent of what we do is refurbishment,” said Block Imaging President Josh Block. “We are bringing refurbished systems that would have been thrown in a landfill and, in essence, recycling them by parting them out. For us, when we redeploy a system that was in Nebraska into Nigeria, that’s fundamentally green in the sense that we don’t have to throw the machine away.” Block Imaging is ISO-certified, meaning that all of the equipment that passes through the company’s shop leaves in like-new condition.

"We are bringing refurbished systems that would have been thrown in a landfill and, in essence, recycling them by parting them out ... we want each piece of equipment that leaves here to be, in essence, like it were new." Josh Block, Block Imaging President

“For image quality, cosmetic appearance and overall performance, we want each piece of equipment that leaves here to be, in essence, like it were new,” said Block. “Each customer is looking for something a little different … our goal is to meet the customer’s expectations and provide a quality piece of equipment for wherever it’s headed.” Keeping its customers’ needs in mind, Block Imaging also provides other services to ensure that their equipment continues to be the highest quality machinery available. The company provides its customers with repair services nationwide and throughout the world. Their commitment to serving people extends beyond its customer base; the company also takes part in initiatives like the Hope Water Project, which works to provide people in African countries with clean drinking water.

JOSH BLOCK

Block also noted that the company also sends employees to speak at conferences and encourages them to participate in other personal and professional development activities. As the company grows, it’s also continuing to add new jobs to the Lansing area. Block Imaging is currently hiring for a number of positions, and is looking to add dedicated employees to join its team. “We want people who love to be challenged and work well with others,” said Block. “Our people are driven for more and better, and that’s what makes us a great team.”

“We try to look through a global landscape,” Block said, “Our philosophy is, ‘People Matter,’ and for us, money is a means, rather than an end; we want to invest in people.”

In the 20 years since Block Imaging first opened its doors, the company has experienced a number of successes, and Block hopes to continue moving the company forward in the years to come.

While caring for people around the world is incredibly important to the company, Block noted that taking care of the people who spend every day working to make the company better is just as important.

“I don’t have all the answers to how the company will grow, but I do know that it’s assumptive that if we take care of customers and we continue to come up with new and creative ideas and have great people working for us, that growth will take care of itself,” said Block. “Where the specific opportunities lie in mobile imaging or in digital imaging, I can’t really say right now, but that’s for our team to come together and really decide where and how we’ll continue to grow.”

“Our people are our most important assets,” said Block. “We want the people who work here to love what they do.”

Block Imaging President

“Those People Matter Days can consist of a lot of different things,” said Block. “It could be a trip overseas to volunteer or something else that’s fulfilling for that employee. It gives them a chance to do something that matters to them.”

Block Imaging employs approximately 120 people at its main office in Holt, Mich. and a small number of people abroad. The company is committed to helping each of those employees maintain a positive work-life balance. Employees are encouraged to take part in “People Matter Days,” which give them opportunities to partake in both personal and professional development experiences.

For information about job opportunities at Block Imaging, visit blockimaging.com. Alicia Pilmore is a freelance writer and graduate student at Michigan State University. She loves writing, wine tasting and spoiling her cat, Pishi.

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Robert Fuehr (left), insurance instructor for Olivet College/Lansing School District, teaches Insurance Leadership Academy students. Juniors or seniors enrolled in the program spend three days in the classroom and two days at AF Group where they learn about career choices. Through the Olivet College partnership, these students are able to earn college credit.

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COVER

Mid-Michigan schools partner to boost the insurance industry BY MICKEY HIRTEN | PHOTOS BY ERIKA HODGES

While many mid-Michigan businesses struggle to attract young, highly skilled employees, few are as strategic as the insurance industry when recruiting talent.

The Lansing Economic Area Partnership (LEAP) boasts the region’s insurance and finance sectors account for 6.8 percent of total jobs, a higher concentration than in most metropolitan areas.

Its initiatives start in area high schools and extend to colleges and universities with programs, part-time jobs and internships to entice young workers into careers it needs to fill now and that are vital to its future. The insurance industry is an important segment of the Lansing-area economy, although it is often overshadowed by the traditional economic triumvirate of cars, college and capital.

Combining property and casualty companies, health companies and the region’s sprawling network of agencies, LEAP’s Vice President of Business Attraction, Brent Case, estimates the insurance industry employment at 15,000 in the greater Lansing region. It is well-positioned for growth, he said, citing the state’s favorable regulatory environment, attractive living costs, the companies that are already based here and a diverse and experienced workforce.

With six major insurance companies based in the Lansing region — AF Group, Auto-Owners Insurance, Delta Dental of Michigan, Farm Bureau Insurance of Michigan, Jackson National Life Insurance Company and Michigan Millers Mutual Insurance Co. — the industry is well established and diverse, according to economic development officials.

“The number one thing companies tell us is their need for a talent pipeline. What our schools are doing is critical to recruiting more insurance companies to our town,” Case said. LEAP is actively marketing the Lansing region to insurance-related businesses

Jalen Faulkner of Sexton High School is one of many students enrolled in the Insurance Leadership Academy.

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Jaques Warren (left), Jalen Faulkner, Karey Faulkner, Kahari Foy-Walton and Alma Holt, Insurance Leadership Academy students

VIRTUALLY ALL STUDENTS GRADUATING FROM OLIVET COLLEGE’S INSURANCE PROGRAMS FIND EMPLOYMENT IN THE INDUSTRY WITH STARTING SALARIES THAT RANGE BETWEEN $40,000 & $60,000. throughout the country, an initiative that board member and Lansing Community College (LCC) President Brent Knight said meshes neatly with the education offered at the college.

The college has about 140 students in insurance programs based in the business department and another 25 students studying actuarial science in the math department. Total enrollment at Olivet College is about 1,100.

Knight explained that by working closely with the industry and other colleges and universities, LCC has developed courses that prepare students for immediate insurance jobs or offers a pathway to advanced degrees. The college has a close relationship with Ferris State University and Olivet College, both with well-regarded insurance education programs.

Tom Humphreys, director of Olivet College’s Risk Management and Insurance Center and assistant professor of Insurance, Risk Management and Financial Planning, said the college’s focus on insurance education reflects the industry’s need for high quality talent.

Students enrolled at LCC can transfer their credits and required courses to schools like Olivet College, which has established itself as a specialist in insurance and risk management, a curriculum that includes courses in commercial and personal insurance, agency operations, negotiation and persuasive presentations, licensing and ethics. 18

“We have tremendous industry support and interaction. People from the agencies and the insurance companies will come and assist with classes and interact with students to give them a feel for the real world and how the industry is changing.” Courses dealing with commercial and personal insurance, agency operations and risk management prepare students for national

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examinations administered by the Insurance Institute of America. The insurance industry is highly regulated and a state like Michigan requires the completion of course work as a prerequisite to licensing exams. Successfully passing courses offered by Olivet College, satisfies this requirement, giving students a jump start for jobs. One of the most popular insurance programs at Olivet College is its insurance claims investigation minor. It’s a unique program in the field of claims investigation, according to the college. “It’s really one of those things that can get students hooked, like the CSI shows you see on TV,” Humphreys said. Virtually all students graduating from Olivet College’s insurance programs find employment in the industry with starting salaries that range between $40,000 and $60,000. Humphreys said a quarter of the class graduating in May 2017 already has signed job offers.

COVER

“There is such a need for high quality employees. We have companies that hire one of our graduates and who tell us that if we had four more students just like them, they’d hire them today.” What the industry values in the young workers it hires is critical thinking and analytical skills. For Olivet College graduates, handson knowledge of the insurance industry is a plus. Jackson National Life has established The Zone in East Lansing to support its recruiting initiatives. Located on Grand River Ave. in the former Barnes & Noble building (before that, Jacobson’s department store), The Zone, which opened in 2013, has provided part-time jobs for hundreds of Michigan State University students. The company sees it as a means to building a pipeline for new talent, an opportunity for students to learn about job opportunities after graduation, and for Jackson National Life to promote itself as a high-quality employer. The setting is modern and engaging, with multi-purpose space, bleacher seating for large meetings and bike storage — workplace amenities that appeal to the millennial workforce. Recruiting even younger workers to the insurance industry now starts in high schools. In December, Olivet College signed an agreement with the Charlotte School District for a program similar to one established last year between the college and the Lansing School District. “Our risk management program is an opportunity for high school students to take classes and interact with industry professionals,” said Mark Coscarella, the Lansing School District’s deputy superintendent. Juniors or seniors enrolled in the program spend three days in the classroom and two days at AF Group where they learn about career choices like agent, actuary, special investigator, marketing representative or underwriter. Through the Olivet College partnership, these students are able to earn college credit. “The students love it.” Coscarella said. “Not only are they getting technical skills and college credit, but they are learning what it’s like to be in the workforce, faced with challenges and pushed to solve complex problems. They are learning those really important soft skills that are applicable in any field.” One of the attractions is insurance industry salaries. The school district promotes the median state wages for potential jobs: insurance sales agent, $48,210; actuary, $94,340; claims examiner, $61,191; and fraud examiner, $62,510. The sense of stable employment is one of the benefits that LEAP cites for jobs with area insurance companies. “Look at the announcement recently that General Motors was laying off the third shift. That’s 900 jobs,” said Case. “Of course, we love General Motors, but the insurance industry doesn’t experience those kinds of declines.” Mickey Hirten is an award winning writer and editor. He has been executive editor of the Lansing State Journal, the Burlington Free Press in Vermont, and was the financial editor and a columnist for the Baltimore Evening Sun. He is the current president of the Michigan Press Association. His wife, Maureen Hirten, is director of the Capital Area District Library.

INSURANCE RELATED COURSES AT OLIVET COLLEGE Among the academic specialties offered at Olivet College are insurance related bachelor’s and master’s degrees. Courses preparing students for careers in the insurance industry include:

PRINCIPLES OF INSURANCE & RISK MANAGEMENT An introductory course dealing with fundamental doctrines, historical background, social value, economic influence, loss exposures and protection, insurance regulation, insurance carriers, reinsurance, marketing, underwriting and claims adjusting.

AGENCY OPERATIONS Covers the management of an insurance agency, including agency image, legal and ethical practices.

NEGOTIATION AND PERSUASIVE PRESENTATIONS Examines negotiating techniques, construction of a persuasive argument, assembly of information to support positions and proposals, use of spreadsheets and presentation software to create professional documents and presentations to support positions and proposals.

PERSONAL INSURANCE Designed to cover policy provisions and concepts common to various personal multiple-line property, casualty, life and health contracts.

COMMERCIAL INSURANCE Designed to cover policy provisions and concepts common to various commercial multiple-line property and casualty contracts.

ETHICS AND PRESENTATIONS Explores the ethical philosophies found in the world of business, including an examination of corporate social responsibility. The course culminates in presentations to groups outside of the Olivet College community.

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VISUAL BREAKDOWN

Technology is the next step ... Over the next five years

The most expensive keyword for Google AdWords Advertising is

35% of revenue will be used to increase the role of advanced technology

INSURANCE

26%

of insurers look to enter the digital security insurance sector

Such as predictive modeling and â&#x20AC;&#x153;Big Dataâ&#x20AC;? research

There are some concerns ...

77%

One in four insurers worry about competitive threats including the rise of larger, Internet-based companies

of insurers expect market conditions to remain flat or worsen over the next three years

21%

of the insurance industry looks toward social media to empower their customers by voicing their opinions

10:30 AM

However, only

see social media advancements as a concern for the future

INSUR INDU

FACTS &

As marketing platforms begin to change and evolve, companies have found it more difficult to launch new products.

32% OF THOSE WHO LAUNCHED A NEW BENEFIT OR OFFERING WERE UNSUCCESSFUL

40% 53%

of insurers are worried about growth potential for life insurance as technology and medical advancements continue to push life expectancy rates. 20

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of insurers are concerned about economic developments over the next one to three years

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100%

VISUAL BREAKDOWN

The Industry needs to overhaul its workforce ... By 2030 nearly

50% of the current insurance workforce will retire

RANCE 50-60% USTRY 27%

By the year 2018, the global demand for technical and managerial talent will

The insurance industry will need to fill

400,000

EXCEED

POSITIONS

by 2020 to remain fully staffed

of insurers believe marketing is a major hurdle

& TRENDS

while only

14.5%

There is still big money in insurance ...

On average, consumers spend an average of

$857

per month on subscriptions

admit to needing help with their digital marketing and communications

15%

of this for car insurance

26%

on health insurance

On average, major insurance companies recorded an average of nearly

$25 BILLION ANNUALLY FROM DIRECT PREMIUM EARNING Compiled by Adam Lansdell | Graphics by Nikki Nicolaou | Sources: Towers Watson, Word stream, Revmedia, Valen Analytics, Genuis Avenue, Aria Systems, Credio Insurance L

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INNOVATION TECH CENTER 91,000 SF

HANNAH PLAZA 72,764 SF

Sold by Eric F. Rosekrans, CCIM, CPM and Thomas Jamieson.

Sold by Shawn H. O’Brien, CCIM and Amy Richter-Perkins.

4200 LEGION DRIVE IN MASON 113,000 SF

7335 WESTSHIRE 13,903 SF

2960 ENA DRIVE 73,700 SF

41,000 SF IN 2016 AT ONE MICHIGAN AVENUE

730 ELMWOOD 10,697 SF

3562 JEFFERSON HWY., GRAND LEDGE 23,040 SF

Sold by Julie O’Brien.

Sold by Christopher Miller and Julie O’Brien.

Leased by Shawn H. O’Brien, CCIM.

Sold by Stephen J. Hershfield.

Leased by Eric F. Rosekrans, CCIM, CPM and Thomas Jamieson.

Leased by Christopher Miller. L

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PNC OFFERS OPPORTUNITIES FOR EMPLOYEES & LOCAL CHILDREN BY SARAH SPOHN

Being named a Fortune 500 Company is an accolade many business owners can only dream of. For PNC Bank, it’s an award they continually remain grateful for.

program, a $350 million initiative, has had quite the impact in the mid-Michigan area, according to Jennifer Sturdy, PNC Client and Community Relations director.

While work perks like cool lounges, free food Fridays, executive box seats at sporting events and nap pods are all benefits that employees look forward to, sometimes the word, “benefits” can run deeper than just fun perks.

“The program we’re involved with really makes a difference,” Sturdy said. “It makes a difference with the families that we serve and ultimately the communities that we all live and work in. It gives you a lot of pride.”

PNC Bank created an extensive volunteer program for its employees nationwide, with community involvement at the heart of its mission. Locally, the results from such volunteerism, particularly their Grow Up Great

Partnering with Impression 5 Science Center in Lansing, PNC’s Grow Up Great program solidifies the bank’s mission to give back and create a brighter future. The Science Center got its start in 1972 in an old wagon factory. Built

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in 1880, its 30,000 sq. ft. facilities and exhibits were then expanded in 2011 with the help of a $150,000 grant from the PNC Foundation. The volunteer program is what sets PNC apart from many of its competing banks and

FEATURE

other big businesses. Each employee gets 40 hours of paid time off per year, if they donate that time to childhood education, making the generous volunteer program appealing to the community and employees.

RESEARCH

Some of the partners, that mid-Michigan’s PNC employees work closely with, include grant programs from Capital Area Head Start, AL!VE health park in Charlotte, Mich., YMCA of Metropolitan Lansing and Impression 5 Science Center. Forming teams of four to 10 employees, each team has a goal to volunteer at least 100 hours, equivalent to $3,000.

CHILDREN WHO PARTICIPATE IN

The idea started in 2003 when William S. Demchak, president and chairman, challenged the PNC employee group to consider focusing their collective give as a Fortune 500 company in one area. The employees overwhelmingly decided they wanted to work with children. Early childhood education proved to be the best area for investment and the Grow Up Great program was born. Having celebrated their 12th anniversary, soon to be 13, Grow Up Great’s mission continues to have an unwavering focus on underserved kids and school readiness.

PROGRAMS

PNC considers the program a wise investment – as it they’re helping to fund children, the future workforce and improve education in neighborhoods at the same time. Research shows that children who participate in high-quality preschool programs are far more likely to experience greater success in aspects of life, such as: education, society, personal health and wealth. A recent research paper, “The Life-Cycle Benefits of an Influential Early Childhood Program,” coauthored by Nobel laureate James Heckman, a professor of economics at the University of Chicago and the director for the Center for the Economics of Human Development showed the impact. The study showed that while upfront costs for early education programs were costly, the rate of return on investment in disadvantaged children was far more impressive and proved to be an enormous social benefit. Each year, PNC hosts a ‘Great Month’ in April, celebrating and recognizing its successful efforts in raising funds and supporting childhood education across the nation. This year, in celebration of the 13th anniversary of Grow Up Great, the company’s goal is to donate one million items to the program through a collections drive. Since its inception, the program has already reached 2.5 million children, over one million teachers and has given out three million multimedia kits to students.

SHOWS THAT

HIGH-QUALITY

PRESCHOOL ARE FAR MORE LIKELY

TO EXPERIENCE

GREATER SUCCESS

IN EDUCATION,

SOCIETY & IN PERSONAL

HEALTH &

WEALTH. The program’s benefits for both employees and participants in the program are two-fold. Local area Head Start programs with kindergarten students have benefitted directly from the PNC Grow Up Great program in receiving the most basic of needs. Through the unrestricted funds, which are virtually unheard of, according to Sturdy, the program centers are able to identify the most important areas for need and handpick where the funds go. Sturdy recalled a Head Start teacher telling her how the $3,000 check from the program would allow her to purchase new supplies for the classroom, but also winter coats for three students. Kids who otherwise would wear sweatshirts or a sibling’s oversized coat were now given warm coats for cold Michigan

winter days – something other grants wouldn’t usually cover. It’s not just the kids that benefit, it’s also the ‘warm fuzzies’ that PNC employees feel while giving back. From the outside looking in, banks aren’t always viewed as giving, philanthropic entities in the community. They can be very transaction-based, not focused on customer service or making a difference in communities outside of the teller’s window. PNC is working hard to break that mold. Volunteers have seen firsthand the impact of the hours donated, a reward in itself. Meeting and seeing the students who have benefited from the fundraising helps employees to realize just how beneficial their time is to those in need. Chances are, if you ask a PNC employee about their time spent volunteering, you’re likely to hear a heartwarming story. Giving back is a major theme that many millennial job seekers look for, and another thing that makes PNC desirable as an employer, voted one of the 100 best companies to work for by Working Mother Magazine. Sturdy spoke about the new workforce of job seekers. “They want a mission that’s higher than just the company’s calling,” she said. “And this kind of fills that gap for us, so our employees that want to be engaged, that want to be involved with young families in the community, they want to give back, this is that perfect opportunity to do that.” While PNC is a huge organization with many different outlets and areas of expertise, ranging from wealth management, commercial, retail and business banking, the common cause that all employees can come together and stand behind is the Grow Up Great program. Because the volunteer program encompasses all employees, PNC is able to set itself apart from other companies with similar offerings. “A lot of companies have some sort of volunteer program, but ours focuses on every employee,” Sturdy said. “If you are a part-time teller, college student or an executive, they have the same opportunity or same ability to be involved. It’s nice for our employees to take a step back and come back to work with a whole different perspective on things.” PNC’s Grow Up Great program continues to impact millions of people – from volunteering employees to partnering grant businesses and organizations, the Head Start and early childhood education students. For PNC employees, the measurable impact is a pride they wouldn’t trade for anything. L

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HOW INSURERS ARE FIGHTING INSURANCE FRAUD BY MICKEY HIRTEN

Insurance fraud in Michigan is a $1 billion a year problem and not just for the industry. It costs the average family between $100 and $200 in premium payments annually and it’s widespread. An astounding, one in six Michigan residents knows someone who has committed insurance fraud, according to the Lansing-based Michigan Insurance Fraud Awareness Coalition. It’s a crime of opportunity, sometimes involving millions of dollars, though often much smaller false and exaggerated claims for thousands or sometimes just hundreds of dollars. The range of schemes is broad. According to the industry, common examples of fraud include false reporting of stolen cars that are actually sold or dismantled; collusion about auto accidents; staged home fires or storm damage; unnecessary or exaggerated medical treatments; even falsified death claims. “There is no single database in Michigan where fraud is reported, so we don’t really have a good handle on the amount. But we do know that 10 percent of all claims are fraudulent,” said Lori Conarton, communications director for the Insurance Institute of Michigan (IIM). “The bottom line is that as an insurance payer we all pay for fraud in our policies.”

"People are concerned about fraud and recognize that it costs them money and want to do something about it.” Lori Conarton, communications director for the Insurance Institute of Michigan 26

The IIM represents the state’s property and casualty insurers, companies that are likely to be affected by arson and auto-related frauds. Its long-established Fraud Awareness Coalition sponsors programs to prevent and uncover both crimes. It has a statewide tip program (Hotline number: 1-800-442-7766) that has paid out $628,000 in rewards to informers and led to the arrest of 1,054 individuals on arson and related charges, the IIM reports. Administered by its Arson Prevention Committee, the reporting program pays up to $5,000 for information that leads to the arrest and conviction of arsonists. According to the IIM, arson is a particularly attractive form of fraud. The coalition believes that nearly one-third of all fires in the state are arson or are deemed suspicious. In a 2015 report, the IIM tracked thousands of fires in Michigan. It labeled 189 of 652 fires (29 percent) in Ingham County as arson or suspicious. In Clinton County, 27 of 152 (18 percent) fires were questionable and in Eaton County, it was 81 of 229 (28 percent). The leading county in Michigan for arson or suspicious fires was Wayne County where 47 percent of all fires – 2,996 of 6,457 – were considered to be crime related. The IIM also supports a reporting program called HEAT (Help Eliminate Auto Thefts – 1-800-242-4328) to track fraud tied to stolen vehicles, chop shops, identify theft and carjacking. It reports that it has paid out nearly $3.8 million in rewards since 1985, led to the arrest of 3,500 suspects and recovery of $55 million in stolen property. “We get a lot of people who contact us through our website,” Conarton said. “People are concerned about fraud and recognize that it costs them money and want to do something about it.” The association believes that the state could reduce fraud by laws establishing a fraud authority and by eliminating the unlimited benefit provision attached to no-fault insurance. Conarton said that states with these policies are successful in reducing fraud.

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ONE IN SIX MICHIGAN RESIDENTS KNOWS SOMEONE WHO HAS COMMITTED INSURANCE FRAUD Source: Lansing-based Michigan Insurance Fraud Awareness Coalition

WAYNE COUNTY

leading county in Michigan for arson

47%

OF ALL FIRES WERE CONSIDERED TO BE CRIME RELATED 2015 report by the IIM

28%

29%

OF FIRES IN INGHAM COUNTY WERE LABLED AS ARSON OR SUSPICIOUS

OF FIRES IN EATON COUNTY WERE QUESTIONABLE

18%

OF FIRES IN CLINTON COUNTY WERE QUESTIONABLE

2015 report by the IIM

FEATURE

While arson and auto fraud are pervasive, cases of multi-million-dollar medical fraud are among the most brazen.

more than $333 million in corporate assets. It too has an anti-fraud hotline (1-800-482-3787).

In the forefront of addressing these crimes is Blue Cross Blue Shield of Michigan (BCBSM). It was the first insurer in the country to launch its own health care fraud investigations unit and is a national leader in the field.

According to Dan Crowell, the company’s director of corporate and financial investigations, somewhere between three and 10 percent of all health claims are fraudulent, although he believes BCBSM losses are less than the average.

Established in 1980, the insurer’s Corporate and Financial Investigations Unit, which investigates and prosecutes fraud, reports that it has recovered

He said that detailed analysis of claims as well as aggressive pursuit of tips provided by the hotline are effective in limiting losses.

“We do proactive data mining, looking for outliers, comparing specialties, procedure and diagnostic codes against their peers. It produces clues that there could be something going on,” Crowell said. The company’s investigators work with federal, state and local law enforcement agencies to prosecute health care fraudsters. “We want criminals to know that when we do find fraud, we prosecute it,” Crowell said, adding that BCBSM’s enforcement efforts have been very successful.

... THE STATE COULD REDUCE FRAUD BY LAWS

ESTABLISHING A FRAUD AUTHORITY AND BY ELIMINATING THE UNLIMITED BENEFIT PROVISION ATTACHED TO NO-FAULT INSURANCE.

Dine to Donate C

JOIN US

4 – 8 P.M. ON FEBRUARY 16 at one of six area Applebee’s

20% of the evening's earnings will go to support Komen Mid-Michigan Visit CAWLM.com for more information

PARTICIPATING LOCATIONS 1642 Packard Hwy, Charlotte

6270 S. Cedar St, Lansing

2450 Coolidge Rd, East Lansing

2284 Woodlake Dr, Okemos

5400 W. Saginaw Hwy, Lansing

2440 Ontario Dr, St. Johns

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BY MICKEY HIRTEN | COURTESY PHOTO

LISA CORLESS President of AF Group Lisa Corless, 51, was named president of the Lansing-based AF Group in May 2016. Prior to this appointment, she served as senior vice president, chief administration officer and chief of staff. Before joining AF Group, Corless served as chief operating officer for Texas Mutual Insurance Company and was responsible for all insurance operations. WHAT IS YOUR TAKE ON THE INSURANCE INDUSTRY IN THE LANSING REGION?

organization is growing and some of the other insurance organizations are growing as well.

I think it is really an exciting time to be in the insurance industry in Lansing. There is so much going on. It’s an absolutely thriving industry. We have several insurance companies that are headquartered here – more than 10,000 jobs. It’s just not what people think about when they think of insurance companies. There are a lot of tech jobs. There are data science jobs. There are investigative jobs. There are business development jobs. The industry is evolving and it’s exciting.

AS YOU LOOK AT THE INSURANCE INDUSTRY WHERE IS LANSING HEADED? IS THERE A CITY OR REGION THAT IT SHOULD BE LOOKING TO EMULATE OR EVEN DISPLACE?

Lansing as a city is really a good place to be right now. There is a lot of economic growth. The Lansing Economic Area Partnership (LEAP) and the Chamber of Commerce have done a tremendous job in attracting and representing the businesses in the region. I’ve been here for three years and I’ve seen the growth. Our 28

For insurance, we have already surpassed larger cities like Nashville. There are some cities that are really big for insurance, Hartford or Dallas for example, and there are a couple of places on the West Coast. But really for a concentration of insurance opportunities, I don’t really see any other cities this size that really compete with us. I think that we are a hidden gem. When I first started working here, I really didn’t realize what an industry mecca this was. Obviously, I knew about Blue Cross Blue Shield of Michigan and

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I know about Accident Fund and AF Group. But as I got here and started seeing all of the different companies that were here, I just wasn’t aware. AS THE INDUSTRY GROWS, ONE OF THE CHALLENGES IS ATTRACTING AND RETAINING HIGH QUALITY TALENT. WHEN YOU LOOK AT THE JOB FORCE ARE YOU FINDING WHAT YOU NEED? I have been, and continue to be, impressed with the talented and engaged, highly educated workforce that is here in the Lansing area and at this company. If there is one thing that makes us really unique, it’s the people that we employ – over 600 right here in the Lansing area and it’s really something special, something that I haven’t seen at other companies where I’ve worked. We have attracted people from all across the country, but we are finding a lot of talent right

BEHIND THE SCENES

here in the greater Lansing area. It’s a really great workforce to draw from. The school districts, the Michigan Creative Educators and the colleges are creating the leaders of the future. It’s a wealth of talented people to choose from. THERE ARE SIX LARGE INSURANCE COMPANIES IN THE LANSING AREA. IN MANY WAYS, YOU WORK TOGETHER TO PROMOTE THE INDUSTRY; IN OTHER WAYS, YOU ARE COMPETITORS. WHERE IS THE BALANCE FOR AF GROUP? Obviously, there are opportunities for collaboration. Our chief information officer is the chair of the Lansing IT Council. We just attended a Capital Area Comeback event for kids who are home from college. All of the members join together working to create the event, but we all individually talk to the candidates. It’s up to us and it’s up to them to find the right fit. There is a healthy tension between the collaboration and the competition. WHAT’S THE RIGHT FIT FOR AF GROUP? One of the things that really makes us attractive is the subtle differences in our type of business. We really focus on partnerships, with our agent community, with the employers that we insure. We partner with the physicians that take care of our injured workers. And we have a great culture, a culture that really is committed to creating an innovative and inclusive environment. And we are community minded. Just this past year the AF Group and our employees, through our sharing and caring campaign, pledged $434,000 to support several local and national charitable organizations. I think that also plays into who we are. Being philanthropic is a very important part of where we find our values. YOU TALK ABOUT INNOVATION AS A CORE ELEMENT OF THE COMPANY’S CULTURE. WHAT WOULD BE A GOOD EXAMPLE OF THAT? We have a department that is dedicated to innovation. One of the things that attracted me to AF Group was all of the innovation awards that the company has won. We have something called a Medical Center of Excellence that really helps achieve the best outcomes for the injured workers. For example, we are looking at using virtual reality in ways that might make it easier for our policy holders. We have created some software products that we use internally and some of our customers are interested in exploring it. These aren’t necessarily related to insurance. We also have a robot that we use to have people participate in meetings when they are

at a remote location. We just worked with a group in China and the Chinese team used the robot. They literally can walk around the office through the robot and interact in real time with the people they are partnering with during meetings. People don’t think about that when they think of insurance. AF GROUP WITH ITS HEADQUARTERS CHANGED THE FACE OF DOWNTOWN LANSING. WHAT ARE YOUR THOUGHTS ON THAT AND THE POTENTIAL TO GROW IN THE CITY? We’ve been in our current headquarters for almost six years. We are very proud of this building and the vision of our parent company, Blue Cross Blue Shield of Michigan, and the strong public and private partnership with the city that transformed this abandoned power plant and turned it into a state-of-the-art green headquarters. We have 600 employees, give or take a few, but we do have room to grow. We were deliberate about that. When we designed our new building there probably was a bit more room than we needed. But we wanted the ability to grow and the space to do it.

HOW ARE YOU POSITIONED FOR THE CHANGES THAT WILL HAPPEN IN YOUR INDUSTRY? WHAT’S DOWN THE ROAD? We are coming off one of our best years ever. There are going to be some challenges, but we are really well poised for them. We have the right people, talent and partnerships to take us into the future, and continue to offer the best-inclass products that are valued by our customers. We are looking to expand our current offerings and other products that our partners might want. ARE THERE CHALLENGES FOR YOUR NICHE IN THE INSURANCE INDUSTRY? There are market cycles in insurance and we are entering into one of the more competitive phases. The interest rate environment that we’ve been living with makes it even tougher. In years past, insurance companies really had to make their money on the investment market. We have to be as efficient as possible, because we are not going to make our money there. This conversation with Lisa Corless has been edited for space and clarity.

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ECONOMY

THE PUBLIC SECTOR: SERVICES PROVIDED

BY MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU

Government at the federal, state and local levels provides many services ranging from national defense to education and local park maintenance. To finance these services, the government levies taxes. The government budget shows expenditures — or outlays — on one side, and tax revenue on the other. In most years, the federal budget is in deficit and the deficit is financed by borrowing (floating government bonds). This is how the national debt accumulates. It is now about 90-100 percent of GDP, not as high as say, Japan or Belgium, is denominated strictly in U.S. currency. For these reasons, the U.S. government bonds are still considered a safe investment. This column is concerned about the expenditures side, while the next column will discuss the tax side. What kinds of goods and services are provided by the government? For the most part, these are public goods, or goods that are enjoyed collectively, as distinguished from private goods that are consumed privately. Public goods are indivisible and are consumed by all citizens regardless of whether each paid toward it. Consequently, no one person would be willing to finance public parks or police protection. If left to the private sector, such activities would be underfinanced or not financed at all. Yet, they are essential for a stable environment conducive to the conduct of private business. In other less extreme cases, the provision of public services is justified by externalities. Consider, for example, higher education. It benefits individual students directly, by enhancing their future income. And to that extent, they should pay for their own education. But, there are gains to society at large. These include, an educated citizenry, better-informed voters and an improved labor force. Such benefits are “external” to the individual, but “internal” to the society of which he or she is a part. It is the same as the case with vaccination against infectious disease: When a person in vaccinated, everyone benefits, since the risk of contracting the disease from that person is 30

reduced. To the extent that such externalities exist, a government subsidy of that activity is justified. Although the lines of demarcation between private and public goods are sometimes blurred and often controversial, the paragraphs above offer general guidelines for the type of services usually offered by the public sector. Political “liberals” define public goods as broadly as possible while political “conservatives” define them narrowly. Finally, it should be noted that the public sector mainly finances these services, it does not produce them, the goods and services it needs are purchased from the private sector. Growth in public spending has accelerated in the past forty years, and it now claims one fifth of the national output. The reasons for that growth are many and varied. They include a rise in national security expenditures because of wars and international tensions; the provision of more public services, owing to population growth and the increased urbanization of society, and the assumption of greater governmental responsibilities for the poor and less fortunate members of society. Which level of government provides what services? National defense looms large in federal government expenditures. A variety of services in the areas of education, health, energy, the environment, technology, commerce and agriculture are also provided. And finally, a very sizable item is transfers in various forms. These are income-maintenance programs that assist the aged, the disabled, the poor and the unemployed. Finally, payroll taxes, levied on both employees and employers, are channeled the Social Security Fund. Retired people draw social security payments out of this fund. State-government expenditures are concentrated in the areas of higher education, highway construction and maintenance, heath and hospital services and public welfare.

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

FEBRUARY 2017

Much the greatest share of local government expenditures is absorbed in K-12 education. Other areas of local responsibility include police and fire protection, health and welfare, and highway maintenance. This information is summarized in the following table. IMPORTANT EXPENDITURE ITEMS OF EACH LEVEL OF GOVERNMENT FEDERAL GOVERNMENT National defense Social Security payments Interest on the public debt Education Commerce and transportation Natural resources, energy and environment

STATE GOVERNMENT Higher education Highways Public welfare Health and hospitals

LOCAL GOVERNMENT K-12 education Police and fire protection Public welfare Health and hospitals Highways

Next month’s column will concentrate on the tax side of the public sector. Mordechai Kreinin is a University Distinguished Professor of Economics, emeritus at Michigan State University and past President of the International Trade and Finance Association. He is the author of about 200 articles and books about economics, including the widely used text, International Economics. He can be reached at kreinin@msu.edu or by cell phone at (517) 488-4837

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#GLBMIMO WHAT ASPECTS OF COVERAGE DO YOU THINK ARE MOST IMPORTANT WHEN LOOKING AT NEW INSURANCE POLICIES? Mark Warner I always look for the best value. It might not always be the lowest price. It is equal parts price and coverage. I also look for ease of payments and communication mobile options, etc. having a reputable online presence is also very important. #GLBMIMO

Megan Fleming The coverage map is most important to me when looking at different insurances. What if the best physician for a certain diagnosis is out of network? I have to pay top dollar, or risk the quality of care? #GLBMIMO

Manny Garcia What I look for is the most coverage that fits within my budget, medical, dental, vision, prescription coverage are important.

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

FEBRUARY 2017

LEGISLATIVE CORNER

MOVING GREATER LANSING FORWARD BY STEVE JAPINGA

The Lansing Regional Chamber of Commerce (LRCC) is the voice of business on legislative issues impacting our region. With consumer optimism at its highest level since 2001 and business optimism increasing, the projected economic outlook is extremely positive. What can we expect from the state legislature in 2017? A pressing issue is addressing the financial health of local municipalities throughout Michigan; with more than $13 billion in unfunded liabilities such as pension and retiree health care costs, this is an important issue for the future of our region and state’s economic prosperity. The greater Lansing region has municipalities that are struggling to address these costs while others have made significant progress. Legacy costs have been a priority for the Chamber and we are pleased to see the state legislature making this a top agenda item in 2017 as well. Make no mistake, there’s no silver bullet for this issue. It’s going to take everyone, especially business leaders, working together on a viable solution while ensuring financial stability for the future. In 2016, the Chamber was a partner in an insurance sector economic impact study conducted by the Anderson Economic Group that showed Lansing accounts for nearly 20 percent of the insurance jobs in the state of Michigan, with approximately 7,300 people directly employed by the insurance sector. That number grows to more than 10,000 jobs when combined with financial services. Among the major insurance companies headquartered in the region are AF Group, Auto-Owners Insurance Co., Delta Dental, Farm Bureau Insurance Co., Jackson National Life and Michigan Millers Mutual Insurance. Although this is great news for the greater Lansing region’s economy, Michigan drivers continue

Among the major insurance companies headquartered in the region are AF Group, Auto-Owners Insurance Co., Delta Dental, Farm Bureau Insurance Co., Jackson National Life and Michigan Millers Mutual Insurance. Although this is great news for the greater Lansing region’s economy, Michigan drivers continue to pay some of the highest insurance rates in the nation. to pay some of the highest insurance rates in the nation. The state legislature will be working on insurance reforms to bring down the costs for all Michigan drivers. Speaker of the House Tom Leonard (R-Dewitt) has made reforming Michigan’s no-fault auto insurance one of his top priorities in 2017. This will require the insurance industry, hospitals and consumer groups to work together to find solutions that make auto insurance affordable for all Michigan drivers. In 2017, the Chamber will be highlighting and recognizing local insurance agents and the impact they make on our local communities. My father, Don Japinga, was a successful independent insurance agent. I know firsthand the importance of insurance agents and the positive impact they have on local businesses and communities. Another issue we will be monitoring closely is business regulatory streamlining. At the Chamber, we continuously hear from members, big and small, that government regulations are making it harder and harder to do business. We must create a friendly environment for our local businesses and entrepreneurs to grow and thrive in our region. While this will be one of the top priorities for the Trump administration at the federal level, Michigan has cut more than 2,000 burdensome and unnecessary regulations since 2010. We are confident the state legislature

will continue to improve Michigan’s business climate and make us an even more competitive and attractive place to do business. Beyond supporting pro-business and pro-growth federal and state regulations, it’s also imperative that local units of government in greater Lansing continue to create an environment for businesses to grow. Our region has seen incredible economic growth, investment and job creation, but there are still challenges to overcome. There have been efforts by local elected officials to implement unnecessary regulations that would hinder our momentum. The Chamber has and will continue to advocate for pro-growth and pro-business policies that create a positive economic climate. We look forward to keeping you in the know on issues facing our region and state. Here’s to a great year! Steve Japinga is Director of Government Relations for the Lansing Regional Chamber of Commerce. He is responsible for developing and managing the Chamber’s policy priorities as well as monitoring local, state, and federal issues that may impact the business community and the Greater Lansing region. He is a graduate of Michigan State University and lives in Lansing with his wife Katherine and dogs, Charlie and George. L

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BUSINESS CALENDAR

FEBRUARY 2017 FEBRUARY 8 CALCULATING OVERTIME FOR MICHIGAN EMPLOYEES, LANSING When calculating overtime for payroll there are a number of options to factor in. Verify that your specialized payroll system is accurate and ensure you understand the proper methods for calculating overtime while accounting for such factors as hourly vs. salary, payroll frequency, holidays and shift differentials. This 60-minute webinar is $75 for members and $95 for non-members. Visit michamber.com for more information. FEBRUARY 14 EMPLOYEE THEFT, FRAUD & EMBEZZLEMENT: PREVENTION & PROSECUTION, LANSING Corporate security experts estimate that 25 to 40 percent of employees steal from their employers. The U.S. Department of Commerce estimates that employee theft of cash, property and merchandise may cost American businesses as much as $50 billion annually. Protect your business and

prevent criminal activity. This seminar is $170 for chamber members and $195 for non-members. Stop by michamber.com for more information and registration details. FEBRUARY 16 CULTIVATING A GREAT PLACE TO WORK, LANSING Being well-organized creates a huge competitive advantage and makes a big difference in the lives of people who work for you. This 60-minute webinar will show you how you can help your employees become loyal and passionate about their work and your organization through a culture of high trust, respect and personal accountability. Cost to attend this webinar is $75 for members and $95 for non-members. Visit michamber.com to register and find more information. FEBRUARY 18

FEBRUARY 21 EMPLOYMENT LAW UPDATE, LANSING Labor and employment laws are constantly changing and prove to be an endless challenge for professionals dealing with human resource issues. That’s why it’s important to start your year off right by covering new laws, regulatory changes and recent state and federal court cases in a comprehensive law update. Registration details and more information can be found at michamber.com. FEBRUARY 22

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and entertainment hub. If so, join TEAM City Market and meet with other inspired members of the community. Newbies are always welcome! Take out lunch will be available from Waterfront Bar & Grill or you can bring your own. Meetings are from noon to 1 p.m. Stop by lansingcitymarket.com for more information.

FEBRUARY 2017

Olivet College’s Cultivating Women Leaders is an annual event designed to inspire and equip young women to embrace their inner strength and realize their potential as responsible leaders. The purpose of this year’s day-long program is to provide women and students the necessary tools and resources needed to establish them as leaders for today and the future. The event will provide the opportunity for students to network and receive professional and personal development from Michigan’s finest women business leaders, as well as Olivet College’s most successful alumnae, as they learn how to overcome the obstacles and challenges that are ever present in today’s communities and workplace. Visit olivetcollege.edu/cwl2017 for more information or to register.

BUSINESS SPOTLIGHT

SPOTLIGHT ON BUSINESS: T.L. HART BY KRISTINE RICHMOND

“It’s a principle I regularly teach,” he says; “the better we get at this the better we’ll be.”

At T.L. Hart, the company’s core values frame everything they do. Take love for example. Rarely heard of in business circles, business success — as founder and President Terry Hart sees it — lies in treating others the way you want to be treated.

The company is not the cheapest in town, but works hard to compete in what Hart refers to as a ‘crazy’ industry. With painters being largely unregulated, Hart runs into low-cost and largely illegal competitors on the one hand, and higherpriced union contactors on the other.

“I take my cues from the Bible and try to put them into practice,” Hart says. “Love is practical; you need not be ‘religious’ to serve people in a way you’d like to be served.”

“There is virtually nothing standing in the way of anyone becoming a painting contractor,” he said. “So, there is this constant price-pressure applied by every new kid on the block.”

Admittedly a work in progress, Hart believes that to be the best in its field the company must be unified in serving its customers with excellence. Founded in 1985 as the cumulative effort of King’s Club, a Christian CEO group practicing strategic planning, Hart undertook to build the business of painting, focusing on Lansing’s commercial market. In its 33rd year, the firm has served thousands of customers on projects large and small, in various sectors and from coast to coast. “It all began in 1974 when my wife and I had our first child,” Hart says. “Barbara had quit her job and I was working at Sparrow Hospital, not earning enough to support our family. At the time, someone told me I could do better painting, so I left my job and started doing homes in the St. Johns area. After 10 years of wearing all the hats, I wanted to quit. That’s when the King’s Club called. Subsequently, I caught a vision for the business.”

TERRY HART Founder and President of T.L. Hart

Additionally, the company does industrial cleaning. “It’s not something we market, but we do a lot of this work for a local manufacturer.” Hart values every opportunity to serve, but believes the best likelihood for growth is in the commercial and industrial markets.

With a focus on commercial painting, the company performs work in the industrial and residential arenas.

“With the commercial customer you have the potential of ongoing business — up to 85 percent of our work is repeat; with the residential customer, you might repaint their house every 1015 years,” Hart says. “At the same time, I have 42 years of residential clients I’m grateful for. We also get new homeowners calling regularly, too. Honestly, I value every opportunity.”

“T. L. Hart is unique in that we’re capable of painting a home on one side of town and a factory on the other, ” Hart says. “ We also perform construction services — things like small build-outs, alterations and repairs for our commercial and industrial clients. They benefit from having one company to call when they need multiple things done.”

Located on West Grand River Highway in Grand Ledge, Hart frowns on just making sales, and shuns traditional sales tactics common to the industry. Rather, he believes in the development of long-term relationships as the company’s best bet for a sustained future. Given Hart’s passion is serving people, many key clients are those Hart has worked with for years. “There’s no better formula for success than taking care of people,” Hart says. “I truly care about our customers and I strive to impart that into our team.” That’s why the firm does everything it can to please people — what Hart calls “The Extra Mile Principle.” That is, going above and beyond what’s expected.

In contrast, Hart built his business from the ground up, applying principles and practices learned from involvement with The Painting and Decorating Contractors of America. To this day, he uses paid consultants and group memberships to keep his skills honed. When people buy from T.L. Hart, they can be assured they are purchasing services from a legitimate business that will provide them not only with a quality product and service, but one that will stand behind its work long-term. Of course, what makes T.L. Hart is its people. Unlike many competitors, Harts treat his tradespeople as bonafide employees, paying above average wages and with benefits like health and dental insurance, a simple IRA (matching employee contributions), and profit sharing. With regular staff meetings, employees receive training in safety, customer service and trade skills. The company seeks to operate fully above board, complying with all local, state and federal laws, including licensing and lead-safe practices. “I believe our customers appreciate the integrity and reliability they get from us,” said Hart. “My vision for T.L. Hart, Inc. is to be mid-Michigan’s best provider of painting and related services; that when people think of a painting company, they think of us.” For more information about T.L. Hart, Inc., visit tlhart.com or call (517) 627-4600. Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act. L

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LANSING AT A GLANCE

GREATER LANSING AT A GLANCE Each month, Greater Lansing Business Monthly compiles statistics showing the growth of the greater Lansing area month to month. This information is not comprehensive, but rather, a snapshot of the area’s growth throughout the year. The following is a look at the advances some of Lansing’s biggest businesses have made in the past two months.

MICHIGAN RETAILERS ASSN. INDEX

BUREAU OF LABOR STATISTICS: LABOR FORCE DATA

A monthly gauge of key retail activity in the state; values above 50 generally indicate an increase in activity.

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

Nov. ‘16

Oct. ‘16

Sept. ‘16

Aug. ‘16

Nov. '15

Sales

55.7

49.8

56.9

50.8

50.2

Inventory

55.7

44.7

66.5

51.7

Prices

51.3

50.6

52.6

49.5

Marketing/Promotion

55.9

51.5

50.1

59.9

66.2

Unemployment (1)

(P)8.6

8.9

8.2

9.1

7.6

50.1

Unemployment Rate (2)

(P)3.4

3.6

3.3

3.8

3.1

Hiring Plans

47.6

50.7

Values above 50 generally indicate an increase in activity

Nov. ‘16

Oct. ‘16

Sept. ‘16

Aug. ‘16

Nov. '15

Civilian Labor Force (1)

(P)250.0

248.1

245.5

240.6

246

Employment (1)

(P)241.4

239.1

237.4

231.5

238.3

BUREAU OF LABOR STATISTICS: WAGE & SALARY

KEY STOCKS — MONTH-END CLOSE

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

A report on price changes for key local stocks and others that reflect the health of the region's economy.

Nov. ‘16

Oct. ‘16

Sept. ‘16

Aug. ‘16

Nov. '15

(P)236.3

236

232.7

224.8

231.8

12-month % change

(P)1.9

1.8

2.7

1.4

Mining, Logging & Construction (3)

(P)7.4

7.7

7.8

7.1

Total Nonfarm (3)

12-month % change

(P)4.2

6.9

5.4

1.4

Manufacturing (3)

(P)20.9

20.9

20.2

12-month % change

(P)3.5

3.5

5.8

Trade, Transportation & Utilities (3)

(P)36.4

35.5

35.6

36.2

12-month % change

(P)0.6

1.7

0.3

3.2

Information (3)

(P)3.0

3.1

12-month % change

(P)0.0

3.3

Financial Activities (3)

(P)16.0

15.9

16.1

15.6

12-month % change

(P)2.6

1.9

Professional & Business Services (3)

(P)22.5

22.5

22.6

22.8

22.4

12-month % change

(P)0.4

-0.9

0.9

3.6

1.4

Education & Health Services (3)

(P)31.8

31.8

31.4

30.9

30.8

12-month % change

(P)3.2

3.6

-0.3

Leisure & Hospitality (3)

(P)19.6

19.8

19.7

19.2

12-month % change

(P)3.2

1.5

-1.5

1.6

Other Services (3)

(P)10.2

10.2

10.1

10.2

10.1

12-month % change

(P)1.0

-1

Government

(P)68.5

68.1

65.9

58.2

67.4

12-month % change

(P)1.6

1.6

3.6

Nov. ‘16

Oct. ‘16

Sept. ‘16

Dec. '15

Spartan Motors

32.84

26.76

26.72

31.53

37.79

General Motors

63.28

52.69

55.94

56.52

Emergent BioSolutions

9.71

9.54

7.77

11.64

16.29

Neogen

10.85

10.10

8.90

10.36

16.3

Gannett (Lansing State Journal)

18.83

18.37

16.85

18.43

16.15

Gray Broadcasting (WILX)

22.1

21.12

16.50

15.65

16.83

Media General (WLNS)

114.64

115.92

107.76

109.36

96.23

Bank of America

134.08

129.40

122.01

128.68

132.25

UPS

34.51

32.30

30.98

29.68

41.83

Home Depot

35.81

42.20

36.49

37.05

34.98

Kroger*

69.12

70.43

70.02

72.12

61.3

Macy's Inc.

42.20

36.49

37.05

36.18

39.08

Wal-Mart Stores

70.43

70.02

72.12

71.44

58.84

*Adjusted for stock split

CONSUMERS ENERGY SERVICE STARTS An indicator of the Greater Lansing region’s business and housing growth.

BUSINESS Dec. ‘16 Clinton

(1) Number of persons, in thousands, not seasonally adjusted. (2) In percent, not seasonally adjusted. (3) Number of jobs, in thousands, not seasonally adjusted. See About the data. (P) Preliminary

Dec. ‘16

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

4,047

Nov. ‘16

Oct. ‘16

4,036

4,029

Dec. '15

YOY Change

4,040

0.17%

Eaton

5,115

5,105

5,106

5,101

0.27%

Ingham

11,513

11,488

11,487

11,412

0.89%

TOTAL

20,675

20,629

20,622

20,553

0.59%

RESIDENTIAL Dec. ‘16

Nov. ‘16

Oct. ‘16

Dec. '15

YOY Change

Clinton

29,519

29,480

29,456

29,094

1.46%

Eaton

41,619

41,560

41,518

41,351

0.65%

Ingham

98,538

98,263

98,035

97,486

1.08%

TOTAL

169,676

169,303

169,009

167,931

1.04%

GRAND TOTAL

190,351

189,932

189,631

188,484

0.99%

FEBRUARY 2017

LANSING AT A GLANCE

REGIONAL SINGLE FAMILY HOMES SALES Nov. ‘16

Source: Homefinders.com, available in the Lansing State Journal

1 month change

Nov. ‘15

1 year change

Ingham County, MI Number of Sales

127

-65.86%

363

-63.51%

Average Purchase Price

113,606

-20.08%

118,530

23.54%

Minimum Purchase Price

10,000

900.0%

5,500

400.0%

Maximum Purchase Price

435,000

-89.64%

1,813,675

-33.08%

-20.21%

20.97%

Ecv. 13

In December: There were 2,456 units for sale in the county as of Dec. 13, 2016. Single-family homes have a mean list price of $173,039. The current mean list price for a condo in Ingham County is $149,424.

Clinton County, MI Number of Sales

-1.14%

135.14%

159,523

1.84%

131,198

75.32%

Minimum Purchase Price

15,000

500.0%

6,500

275.0%

Maximum Purchase Price

470,000

13.94%

429,500

17.5%

100

-1.96%

72.41%

Average Purchase Price

Average Purchase Price per Sq. Foot

In January: There were 713 units for sale in the county as of Jan 10, 2017. Single-family homes have a mean list price of $162,978. The current mean list price for a condo in Clinton County is $250,760.

Oct. ‘16

1 month change

Oct. ‘15

1 year change

Eaton County, MI Number of Sales

116

-15.33%

866.67%

Average Purchase Price

148,793

3.82%

174,417

-14.69%

Minimum Purchase Price

31,000

3.33%

65,000

-52.31%

Maximum Purchase Price

480,000

-3.42%

335,000

43.28%

-12.5%

132

-31.06%

Average Purchase Price per Sq. Foot

In January: There were 953 units for sale in the county as of Jan.10 2017. Single-family homes have a mean list price of $174,306. The current mean list price for a condo in Eaton County is $121,650.

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time at LCC, Victoria developed a strategic communication plan for the library; served as its official media contact, assisted in developing and maintaining a strong web and social media presence and created print and digital marketing pieces to support Library Services. Victoria also brings experience with professional writing and special events and program planning and coordination.

LEAP WELCOMES NEW TEAM MEMBER VICTORIA MEADOWS The Lansing Economic Area Partnership (LEAP) is pleased to announce the addition of Victoria Meadows, as the director of marketing, communications and talent, to its staff. Meadows began her career with LEAP on Jan. 3.

“I’m pleased to have joined the amazing team of economic development experts here at LEAP, and am looking forward to the year ahead.” said Meadows. “LEAP, and our entire

community of partners, across the tri-county region, continuously works to help the private sector develop impactful projects and important initiatives. I will be working hard to help get the message out that every day we are improving the lives of families and communities.” Meadows fills the vacant director of marketing, communications and talent position previously held by Sara Parkinson. Visit purelansing.com to learn more about the LEAP team.

DICKINSON WRIGHT PLLC ELECTS ATTORNEY RYAN SHANNON AS MEMBER Dickinson Wright PLLC is pleased to announce that Attorney Ryan Shannon has been elected as a new member attorney to the firm’s Lansing office, effective Jan. 1, 2017.

VICTORIA MEADOWS Director of marketing, communications and talent

Meadows joined LEAP after 20 years at Lansing Community College (LCC) as the library communications manager, where she worked to build awareness of and engagement with students, faculty and staff. During her

Ryan Shannon is a Member in the firm’s Lansing office. He focuses his practice on administrative and regulatory matters as well as appellate litigation. On behalf of multiple insurance and financial industry clients, he has drafted legislative amendments to the Michigan

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NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED.

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Insurance Code and other insurance laws. He regularly appears before the Michigan Tax Tribunal and has argued successfully on multiple occasions before the Michigan Court of Appeals. Shannon is a member of the State Bar of Michigan and is recognized as a Michigan Super Lawyer “Rising Star.” He received his B.A. from Michigan State University and his J.D. from the University of Michigan Law School.

and the University of Michigan contributed to the project.

MICHAEL MARTIN JOINS EXIT REALTY IN GRAND LEDGE EXIT Realty Select Partners in Grand Ledge recently announced the addition of Michael Martin to its team of real estate professionals.

“We’re excited to welcome Michael to EXIT Realty,” says Sue Dickinson and Mark Kraushaar, owners of EXIT Realty Select Partners. “EXIT is growing and attracting quality business people like Michael each and every day.” Martin brings his common-sense approach to solving problems and his strong work ethic and attention to detail to Real Estate.

PROMISING NEW DRUG STOPS SPREAD OF MELANOMA BY 90 PERCENT Michigan State University researchers have discovered that a chemical compound, and potential new drug, reduces the spread of melanoma cells by up to 90 percent. The manmade, small-molecule drug compound goes after a gene’s ability to produce RNA molecules and certain proteins in melanoma tumors. This gene activity, or transcription process, causes the disease to spread but the compound can shut it down. Up until now, few other compounds of this kind have been able to accomplish this. “It’s been a challenge developing smallmolecule drugs that can block this gene activity that works as a signaling mechanism known to be important in melanoma progression,” said Richard Neubig, a pharmacology professor and co-author of the study. “Our chemical compound is actually the same one that we’ve been working on to potentially treat the disease scleroderma, which now we’ve found works effectively on this type of cancer.” Scleroderma is a rare and often fatal autoimmune disease that causes the hardening of skin tissue, as well as organs such as the lungs, heart and kidneys. The same mechanisms that produce fibrosis, or skin thickening, in scleroderma also contribute to the spread of cancer. Their findings are published in the January issue of Molecular Cancer Therapeutics. “Melanoma is the most dangerous form of skin cancer with around 76,000 new cases a year in the United States,” Appleton said. “One reason the disease is so fatal is that it can spread throughout the body very quickly and attack distant organs such as the brain and lungs.”

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Martin is a property owner in Portland and is interested in serving the community he lives in.

WILLIAMSTON THEATER STARTS 2017 WITH A WORLD PREMIERE We are looking forward to having an agent with a tie to the Portland and surrounding area.

Mid-Michigan’s award winning professional theatre company, Williamston Theatre, located at 122 S. Putnam Street in downtown Williamston,

The official opening night is Friday, Feb. 3 at 8 p.m. Performances run Thursday, Friday and Saturday evenings at 8 p.m. and Sunday matinees at 2 p.m. with additional 3 p.m. matinees on Saturdays starting Feb. 4. The Conversation Sunday for A Painted Window is Sunday, Feb. 19.

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starts 2017 with the World Premiere of A Painted Window by Christy Hall. Performances began Thursday, Jan. 26 and run through Sunday, Feb. 26. Tickets are now on sale.

FEBRUARY 2017

How deep do the bonds of sisterhood go? A Painted Window catalogues the reunion of two sisters, Josephine and Sylvia, that used to giggle together late at night, yet now stand worlds apart. Forced to move in together after decades of estrangement, the two women struggle to reconcile their past, navigate the present and plan their future. A Painted Window is a beautifully crafted play about family, loss, regret and the staggering power of fear, but it’s also a keen dissection of identity, classism, racism and the havoc that consumerism, greed and entitlement have wreaked on the American Dream. Ultimately, though, this is a play about love. A Painted Window is made possible in part by an award from the Michigan Council for Arts and Cultural Affairs and the National Endowment for the Arts with additional support from the Williamston Sunrise Rotary.

CATA TO INCREASE EFFICIENCY; ELIMINATE UNDERUTILIZED SERVICES The Williamston-Webberville Connector and the Williamston Redi-Ride are two of 12 paratransit services provided by the Capital Area Transportation Authority (CATA). Ridership aboard the Williamston-Webberville Connector decreased by about 12 percent in the past fiscal year, and by 38 percent for Williamston Redi-Ride. To improve operational efficiency, CATA eliminated these services, effective Jan. 9, 2017. Customers will instead be served by CATA Rural Service (CRS) — an advance-reservation, curb-tocurb service that operates Monday through Friday from 7 a.m. until 6 p.m. Like the Connector, CATA Rural Service will connect with other CATA

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services at the Meridian Mall in Okemos, and travel to the same destinations previously served by the Williamston Redi-Ride. The CRS reservation line will book trips up to seven days in advance of the requested trip time. To book a trip, customers can call 517-394-CATA (2282). The fares for CRS are $2.25 for trips up to and including 10 miles and $3.25 for trips over 10 miles. Discounted fares for seniors 62-plus years of age, students, Medicare cardholders and persons with disabilities showing valid identification are $1 and $1.50, respectively. For more information on CRS and a copy of CATA’s no-show rules, click on the Rider Information link at cata.org.

LAFCU 2016 FUNDRAISING EFFORTS NET MORE THAN $20,000 FOR UNITED WAY LAFCU recently presented the Capital Area United Way with a check for more than $20,000 in donations raised and pledged during 2016. It’s a 12 percent increase over the previous year. Throughout 2016, LAFCU employees held a variety of events to earn money for the United Way, including a book sale ($475), dress down days ($626), a live auction ($1,046), an in-house, online auction ($1,331), a sports auction ($295), cookbook sales ($580), candy grams ($545), a loose change war ($416), and a pallet party ($220). Employee pledge donations and a corporate donation make up the balance of the funds raised. “Supporting our local community through giving to the United Way is a year-long endeavor for LAFCU employees,” said Pat Spyke, LAFCU CEO. “It exemplifies their dedication to the betterment of their communities, and it is especially rewarding to present the year-end check during this season of goodwill.”

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LEAP ANNOUNCES RFP FOR PUBLIC ART FOR COMMUNITIES GRANT Request for Proposals for LEAP’s successful Public Art for Communities Grant are now being accepted until 4 p.m. on Feb. 28, 2017. This year, LEAP seeks to add three more installations to the growing list of municipalities who have participated in the LEAP Public Art for Communities Grant. Since the program was established in 2012, 11 communities have each received $10,000 in LEAP funding, with additional support from the PNC Foundation, adding 19 public sculptures in strategic locations throughout the region. On Jan. 26, 2017 at 2 p.m., the City of Charlotte held a ceremony unveiling the latest LEAP funded installation. “Increasing access and exposure to arts and culture encourages economic development and attracts business and talent to our region,” said Bob Trezise, president and CEO of LEAP. “LEAP’s Public Art for Communities grant program has successfully contributed to the vibrant culture of our region — a place where families and communities are living better than ever.” In order to receive funding, each community must adopt a public art policy. Eligible applicants will be municipalities, businesses or organizations within Ingham, Eaton and Clinton counties. The LEAP Placemaking Committee will consider each application and three communities will each be awarded a $10,000 grant. Submission guidelines, eligibility and criteria, including the policy guideline template and the RFP can be found at purelansing.com. Grantees will be announced in March and artwork will be unveiled in October.

LAFCU NAMES LINDSAY WALTERS FIRST DIRECTOR OF ORGANIZATIONAL DEVELOPMENT LAFCU has announced the promotion of Lindsay Walters, of Delta Township, to the new position of director of organizational development. In this position, Walters serves as liaison and advisor to LAFCU’s leadership regarding development and implementation of initiatives that positively influence personnel and group, team and work units within the organization. She is also responsible for human resource programs

University. She volunteers at the Jenison-based nonprofit Adoption Associates Inc. and at her church, Riverview Church in Holt.

NAI MID-MICHIGAN/TMN COMMERCIAL IS PLEASED TO ANNOUNCE THE SALE OF LOCAL PROPERTIES NAI Mid-Michigan/TMN Commercial is pleased to announce the sale of the following properties: 5094 Grand River, Watertown Township: This multi-building industrial complex was purchased by Outdoor Specialties and now serves as their base of operation. Jim Vlahakis represented the purchaser and Nick Vlahakis represented the seller.

LINDSAY WALTERS LAFCU's Director of organizational development

232 Verlinden Street, Lansing: This 5,500 sq. ft. two story office building was purchased by a local investor and this property is scheduled to be re-developed. Nick Vlahakis represented the seller and Dave Robinson represented the purchaser.

7704 Lanac Street, Lansing: This 7,800 sq. ft. trucking cross dock will be redeveloped for a new use. Jim Salkiewicz represented the seller and Ryan Shapiro and Tony Scruby represented the purchaser. 2222 Spikes Lane, Lansing: This 5,000 sq. ft. plus light manufacturing facility was purchased by a local investor. Jim Salkiewicz represented the seller and Ryan Lowe represented the purchaser. 575 N. Cedar Street, Mason: This motel/ice cream store was purchased by an operator. Gino Baldino represented both the purchaser and seller in this transaction.

THE DAVIES PROJECT FOR MID-MICHIGAN CHILDREN RECEIVES $16,000 GRANT FROM JOE D. PENTECOST FOUNDATION The Davies Project is proud to have received a grant of $16,000 from the Joe D. Pentecost Foundation. This grant will be used to help train

that help employees achieve operational objectives and strategic business and professional goals. “The position was created so we would have a broader staff and organizational development program as LAFCU continues to grow,” said Sharon Gillison, LAFCU senior vice president of human resources. “The program will benefit employees throughout our organization, especially those interested in advancing to salaried positions. Lindsay’s experience and education well equips her for fulfilling our needs.” Walters has nearly 16 years of credit union experience. She has been with LAFCU since 2012 and most recently served as assistant vice president-call center. She has also held various positions including branch manager for credit unions in Mason and Lansing. “In this new role, I look forward to serving LAFCU by creatively planning and implementing organization-wide initiatives that promote personal growth, improve processes and infuse positive cultural changes that ultimately benefit LAFCU, its staff and its members,” Walters said. Walters holds an MBA with concentrations in organizational consulting and human resource development from Spring Arbor University and a bachelor’s degree from Michigan State

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a significant influence in cultivating a positive investment environment, and inspire dreams of small business owners throughout those communities.”

its volunteer drivers, expand its office space and personnel, and spread the word about the work it does to members of the community and families in need of its services. The Davies Project knows that the Pentecost Foundation has a long history of supporting Michigan and Lansing-based organizations, and it is honored to be named among them. In greater Lansing, where 70 percent of the children who rely on the local subspecialty clinics are on Medicaid, poor transportation options contribute to a 60 percent missed appointment rate for children with serious illnesses. The Davies Project is working hard to turn this situation around by pairing families with highly-screened and highly-trained volunteer drivers to ensure that every child has access to the subspecialty medical care and support services he or she needs. Regular attendance at appointments as well as the companionship that often develops between families and drivers is having a positive impact on the lives of families with sick children during what is frequently a very isolating time. Dependable access to medical appointments helps doctors provide timely treatment, fulfills a crucial need in the community, and improves children’s health outcomes. Funds received from the Joe D. Pentecost Foundation will give The Davies Project the ability to expand critical services to more kids and families in the community.

MICHIGAN CERTIFIED DEVELOPMENT CORPORATION PARTNERS WITH CINNAIRE TO PROVIDE $90,000 GRANT FUNDING The Michigan Certified Development Corporation (MCDC) joined with Cinnaire to provide grant funding to support the Metro Community Development Fund (Metro). In partnership with the Michigan Economic Development Corporation and Huntington Bank, Metro has established a $2 million loan fund to provide capital to micro and small businesses. The loans will be in the range of $5,000 - $250,000. Metro will focus on issuing loans in the Flint and Saginaw areas. Cinnaire provided a $50,000 grant, while MCDC provided a $40,000 grant. 44

MASON’S HOMETOWN STARS TO BE HONORED ON FEB. 8

Mark Williams, president of MCDC said, “Michigan Certified Development Corporation has a long history of investing in the growth of small businesses in the Flint and Saginaw markets through the SBA 504 loan program. MCDC is excited to partner with Metro, Cinnaire and Huntington Bank as well as the MEDC to provide the requested funding. This microloan fund will enable even more small businesses to grow and add jobs; MCDC looks forward to being a part of the solution throughout the region.” “Cinnaire has invested in both the Flint and Saginaw communities for over 20 years,” added Mark McDaniel, Cinnaire president & CEO. “These grants will support our mission of spurring economic development and creating jobs. We value our partnerships with MCDC, MEDC, Metro and Huntington Bank and look forward to working together to promote small businesses throughout Flint and Saginaw.” “We appreciate the partnership and support from Cinnaire and MCDC and thank them for making it possible for Metro Community Development to create access to capital for small businesses in the Flint Metro Area,” said Ravi Yalamanchi, CEO of Metro Community Development. “These resources have provided us the opportunity to leverage $2 Million with Huntington Bank and $700,000 in guarantee and operational support from MEDC.” “The growth of small businesses is vital for the overall health of the Michigan economy,” said Steve Arwood, Michigan Economic Development Corporation Chief Executive Officer. “Addressing the unique lending needs of small businesses requires collaboration, responsiveness and an understanding of the types of catalytic projects that foster economic development. We are confident that this funding in Flint and Saginaw will have

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FEBRUARY 2017

Each year, the Mason Area Chamber of Commerce (MACC) recognizes excellence in the Mason area at an annual Awards Dinner. Awards are presented for Citizen of the Year, Excellence in Education, Excellence in Business, President’s Award and Special Recognition. The Chamber’s 2017 Annual Awards Dinner will be held the evening of Wednesday, Feb. 8, 2017 at the Eldorado Golf Course Banquet Center at 3750 W. Howell Road. Approximately 185 people will attend the event to honor those awarded. This year, the following awards will be given to deserving businesses, groups and individuals: • Colleen Briggs of Dart Bank: 2017 Citizen of the Year Award • BAD Brewing Company: 2017 Excellence in Business Award • Elizabeth Bailey: 2017 Excellence in Education Award • Kathy Smith of Mason Insurance Agency: 2017 President’s Award • Building Twentyone: 2017 Special Recognition award • Barb Tornholm: 2017 Special Recognition Award The annual MACC Awards Dinner is generously presented and sponsored by select Chamber members including Sparrow Health System, Dart Bank, Mark Voss Agency, CP Federal Credit Union, Dart Container Corporation, Independent Bank, Mason Auto Body Repair, Mason A&W Restaurant and T.A. Forsberg Inc. See the February “Mason in Motion” newsletter for a listing of all of the generous sponsors. As part of the event, recognition is also given to retiring Chamber Board members, Chamber leadership, and 2016 volunteers. Prepaid dinner reservations are $40 per person. Credit card prepaid reservations are also taken in person at the Chamber office and by phone at (517) 676-1046.

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IT’S NOT JUST WHAT YOU KNOW. IT’S WHAT YOU DO WITH THE INFORMATION. The 2017 Mid-Michigan MarketView reports are set to be released for ofﬁce, industrial and retail sectors. These reports provide real time local market information, statistics, and conditions in Mid-Michigan. To receive the MarketView report, visit www.cbrelansing.com and join the mailing list. For other global research resources, information and tools as well as regional websites from across the globe visit: www.cbre.com/researchgateway

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