GLBM January 2017 by M3 Group Publications

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JANUARY 2017

GREATER LANSING NEWSMAKERS Top 2016 business news & 2017 projections

IN THIS ISSUE •

UPDATE: VOLKSWAGEN EMISSIONS SCANDAL

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BUSINESS TRENDS IN 2017

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BEHIND THE SCENES WITH REBECCA POYNTER, A TRUE NEWSMAKER

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BUSINESS MONTHLY

JANUARY 2017 ON THE COVER Volkswagen Emissions Scandal.....................................................6 Business Trends in 2017..................................................................14 Behind the Scenes: Rebecca Poynter........................................16 Greater Lansing Newsmakers.......................................................22

NEWS They’ve Got You Covered, But for How Much Longer?............................................................8 Implications of the LCC Tuition Hike.........................................10 Health Care in Lansing......................................................................12

GR EAT E R LAN SING

JANUARY 2017

GREATER LANSING NEWSMAKERS Top 2016 business news & 2017 projections

FEATURE

Commentary.................................................................................................................................................. 4 2016 Year in Review ................................................................................................................................. 8 Visual Breakdown..................................................................................................................................... 21 Greater Lansing at a Glance ............................................................................................................... 30 Economy ...................................................................................................................................................... 32

IN THIS ISSUE •

UPDATE: VOLKSWAGEN EMISSIONS SCANDAL

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BUSINESS TRENDS IN 2017

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BEHIND THE SCENES WITH REBECCA POYNTER, A TRUE NEWSMAKER

Real Estate .................................................................................................................................................. 34 GLBM In My Opinion............................................................................................................................. 35 Business Calendar.................................................................................................................................... 36

Cover photography by Erika Hodges

Notable News ............................................................................................................................................ 38

Greater Lansing Business Monthly | Volume 30, Issue 1

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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.

Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe. Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2016 The Greater Lansing Business Monthly, Inc. All rights reserved. Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2

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COMMENTARY

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NEW YEAR, NEW PLANS “Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business.” -Mark Sanborn

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 Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Angela Carlone Kerry Hidlay Nikki Nicolaou Photographer: Erika Hodges Editor: Megan Martin Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

hile it may be human nature to wait and see, taking too much time to make a decision can be the difference among increasing success, hovering in the same place or complete failure. No one has a crystal ball and there is speculation regarding many topics on potential change affecting businesses in the New Year from policy to economics and world news. The end of the year saw some changes in the business landscape of the Lansing area including the closing of Tony Sacco’s, Max and Erma’s and Beer Grotto. Watching the closing of business ventures is jolting and can make those witnessing it feel a sense of nervousness. It’s important to understand that while some businesses succumb to the pressure, there is still a tremendous amount of growth in this region. As a current resident on Michigan Avenue, I have had the privilege of watching some of the growth that Sparrow Health System has enjoyed. The Herbert-Herman Cancer Center has been built just across from the hospital, Gillespie Company is working to update multiple buildings on the corridor and there is the huge SkyVue building that is anchoring the south end of Frandor. There are also many other development projects planned for 2017. Developers like Gillespie Group, Eyde Company and Forsberg understand that if you’re standing still, you’re probably falling behind. This is the reason they are constantly anticipating the needs of the customer and changing their position based on factors they identified through experience. At this time of year, businesses are immersed in setting goals and writing strategic plans. To ensure that you’re staying nimble, be sure to review plans monthly to make sure you’re changing directions as quickly as possible. It’s obviously much easier for smaller organizations to weave and bob with the flow of change in the air, but ultimately all businesses need to assess plans as quickly as possible. Keep tabs on a few select areas including:

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

• News from associations including Small Business Association of Michigan, the Michigan Chamber, the Lansing Regional Chamber of Commerce and Lansing Economic Area Partnership • Development projects throughout the region • Manufacturing and retail optimism or pessimism • General news from local to international The Lansing region is set to have a solid 2017 if current trends are the indication. However, keep up on your information so you can make business decisions faster than the market. Have a dynamic New Year!

Tom Ruis — Vice President, Fifth Third Bank Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Diontrae Hayes — Supervisor Charter Township of Lansing

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Tiffany Dowling | Publisher

JANUARY 2017

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VOLKSWAGEN DEALS WITH THE AFTERMATH OF EMISSIONS SCANDAL BY ALICIA PILMORE

In September 2015, German car company, Volkswagen, issued a recall for nearly 500,000 of their automobiles in the U.S. after the Environmental Protection Agency and the California Air Resources Board found evidence of a software designed to cheat emissions tests in diesel vehicles. This sophisticated software allowed vehicles to emit approximately 40 times more pollution than is allowed. The software was found in seven different models produced between 2009 and 2015. Volkswagen felt the blow of this scandal almost immediately as stocks plummeted and the integrity

of the company was called into question. In the days and weeks following the announcement, CEO Martin Winterkorn resigned from his post, Switzerland and other countries halted sales of the company’s cars and lawsuits and criminal investigations against the company were opened in the U.S., Canada, France and Italy. By mid-October 2015, more than 8.5 million cars were recalled in Europe alone, and Volkswagen experienced its first quarterly loss in 15 years. Understanding of the software used to cheat emissions tests has increased as time has gone on; U.S. officials have stated that the software

was able to sense when the car was being tested, and activated equipment that reduced emissions. Now, more than a year after Volkswagen’s problems began, the company is still feeling the effects of the scandal. It’s been estimated that nearly 11 million Volkswagen cars worldwide are equipped with the cheating software and criminal investigations continue to surface throughout the world. The company has agreed to pay almost $15 billion to settle claims in the U.S. and must buy back or fix all affected vehicles by December 2018. In addition to reimbursing Volkswagen owners, many individual states are petitioning to

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allocate a portion of the money the U.S. receives to researching clean energy solutions. The U.S. isn’t the only country demanding compensation from the car company; in early December, South Korea’s Fair Trade Commission (FTC) announced that it would fine Volkswagen almost 37 billion won, which converts to approximately 32 million U.S. dollars, citing false advertisement as its reason for the fine.

no longer sell diesel vehicles in the U.S., and will instead focus on the sale of sport utility vehicles and electric vehicles in an attempt to increase sales in the U.S. The company also stated that it hopes to sell two to three million electric vehicles in the U.S. by the year 2025.

the company continues to invest in clean energy vehicles and cooperate with the governments conducting investigations, the company may survive the scandal that rocked Volkswagen at its core. Alicia Pilmore is a freelance writer and graduate student at Michigan State University. She loves writing, wine tasting and spoiling her cat, Pishi.

The repercussions will likely continue for Volkswagen for many months and years to come. The environmental impact of the scandal can only be speculated at this point. However, if

“Audi Volkswagen Korea made false advertisements about its cars, claiming they meet the emission requirements and have better gas mileage,” the South Korean FTC said in a statement on Dec. 6. “The company deceived consumers with its false and exaggerated advertisements, which violated fair trade laws.” Additional fines can also be expected to be administered as criminal investigations wrap up in other countries. The company has set aside 17.8 billion euros, or 19.9 billion U.S. dollars, to cover the cost of compensation, but the majority of that money will go to the U.S. As fines from countries around the world continue to be handed down to the company, Volkswagen’s standing as the largest car manufacturer in Europe has diminished and Germany’s economy is predicted to suffer. In November 2016, the company announced that it will cut 30,000 jobs by the year 2020 in an attempt to recover some costs related to the scandal. The company has more than 600,000 employees worldwide, but the majority of the jobs cut (23,000) will be from its factories and offices in Germany. The cuts are estimated to save the company nearly 3.7 billion euros. Dr. Herbert Diess, Volkswagen’s chairman of the Brand Board of Management, stated that restructuring was necessary to keep the company from going under. “Volkswagen is far behind its competitors,” said Diess in a press conference in Wolfsburg, Germany. “Volkswagen has to quickly earn more money and arm itself for the change ahead.” While Volkswagen faces problems all over the world, the effects of the scandal can be felt throughout the U.S. as well. Volkswagen dealers have experienced a drop in sales; in July, sales dropped nearly 14 percent nationwide, and the U.S. market share dropped to 1.7 percent. To compensate dealers experiencing losses due to the scandal, Volkswagen agreed to pay more than 650 dealers approximately $1.2 billion in August. The company is also said to be reevaluating its use of diesel fueled vehicles in the future. On Nov. 19, Volkswagen announced that it would

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THEY’VE GOT YOU COVERED, BUT FOR HOW MUCH LONGER? Only time will tell what Trump’s America holds BY ADAM LANSDELL

In case you hadn’t heard, there’s a new sheriff in town and change is imminent. With President-elect Donald Trump taking the reins soon, Americans are left with a staggering question: What now? A central strategy of the to-be POTUS’ campaign was highlighting the disadvantages that came along with some of President Barack Obama’s implemented plans to improve the lives of the American people. One of the most important of his tenure’s milestones being none other than the Patient Protection and Affordable Care Act. Donald Trump wasn’t the only person to express woes about what’s now more easily referred to as Obamacare. The health care plan, set into motion six years ago, has been both criticized and hailed. Celebrated for its dedication to providing all citizens with access to health care, and berated by others for its financial implications. Like many a political strife, this sample of the Obama administration’s legacy is set to change; the result of conflicting interests, during what may be history’s most pivotal transition of power between Democrats and Republicans. The fact remains: people need health care. While many are opposed to the financial burden that comes with “providing for one another,” under Obamacare, there are still those that see benefit of the programs in place – leaving many citizens concerned for their future and their ability to preserve assistance. However, many 8

Many Americans are concerned about health care changes, but insurance companies need time to implement any changes that are made. Therefore, there is probably little need to worry about 2017. Kevin Kaplan, vice president of Sales and Account Management for Sparrow’s Physicians Health Plan are struggling with the idea of potentially losing coverage for aspects like preexisting conditions or parental insurance plan retention until age 26. So what now? Based on campaign messaging, social media and general party discussion – there seems to be a few options on the drawing boards. Repealing seems the most obvious response for attempting to resurrect the sanctity of our past methods; leaving health care options up to individuals and their employees with no guaranteed coverage for those without it. However, this conversation’s solution isn’t as simple as a switch you can flick on or off. A repeal would call for a major bill to pass; meaning that Democrats, many of whom worked alongside Obama to bring the healthcare

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option to the population, would throw away their hard-earned doings. Americans are seemingly just as divided as the political parties poised to combat such a change. A poll released by The Kaiser Family Foundation found that 49 percent of Americans are either opposed to a repeal of current laws or feel that only amendments and expansions should be made to reflect the interests of all. This statistic controverts the 26 percent of the population that want the entire law repealed and the other 17 percent that would like to see the law scaled back. One of the biggest hurdles of the changes to come stands in the lane of the health insurance

NEWS

industry. Medical professionals throughout the nation are on the edge of their seats. Even the smallest of changes to regulations could signal the need for a complete overhaul of internal systems, patient treatment options and much more. Kevin Kaplan, vice president of Sales and Account Management for Sparrow’s Physicians Health Plan, one of the region’s largest health care and insurance providers, acknowledges that while there is tension in the air surrounding what’s to come, it’s important to remember that this is all about taking care of one another and planning ahead. “The biggest challenge is to manage the risk pool,” explained Kaplan. “It has always been a challenge to get everyone covered by health insurance. Young, healthy people need to contribute to help cover older and unhealthy people. We can’t only worry about getting insurance after we are sick.” Locally, there are some trends that coincide with November’s election results. People are beginning to acknowledge the importance of industry changes and are preemptively taking action

to ensure that they will be satisfied with their coverage regardless of the outcome. “The first thing PHP noticed was that concerned patients purchased more individual polices right after the election. Some people felt compelled to get coverage now to have it in place when they need it. I recommend everyone at least look at what their options are. They might qualify for a subsidy. Everyone in government who speaks about health care wants accessible, quality care.” These actions are a reflection of a large, nationwide narrative. Rightfully so, these impulsive actions may be interpreted as an onset of panic. However, Americans who have applied for Obamacare for 2017 can rest assured that they won’t be turned away in the coming year. With open-enrollment having closed, those who have applied are seemingly exempt to changes that may occur over the next year. Only with an executive order and a firm decision by congress could this become untrue, both of which would ultimately leave the Obama administration’s estimated 11.4 million people without coverage for the foreseeable future.

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“Many Americans are concerned about health care changes, but insurance companies need time to implement any changes that are made,” said Kaplan. “Therefore, there is probably little need to worry about 2017. PHP is working on our 2018 plans, which need to be filed with regulators early in the year.” Only time will tell what changes will come to the health care industry, but truth be told, they will happen. Left with only speculation, it’s important to consider your current health care options and what your next step will be. If you’re a recipient of Obamacare, it might be time to research alternative health care options. Educate yourself on the industry’s political landscape to better ensure that you and your loved ones will be protected down the road, when you might need it the most. 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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IMPLICATIONS OF THE LCC TUITION HIKE BY SARAH SPOHN

Lansing Community College (LCC) has been a cornerstone in the surrounding community since it was established in 1957. In June 2016, the LCC Board of Trustees voted to pass the highest tuition increase in the history of the higher learning center.

The initiative is expensive, hence the need for the tuition increase, which wasn’t considered without great thought. LCC has kept its tuition rates as low as it can. With rising operating costs and lowering enrollment numbers, the hike, although large, still allows LCC to be amongst the cheapest community colleges. Oakland Community College has the number one spot for lowest tuition rates, at a steady $88 per billing hour for the 2016-2017 school year.

Members gave the go-ahead in an approval of a $127 million budget for the 2016-2017 year. The budget was passed via a four to three vote, with President Brent Knight’s Operation 100% initiative at the forefront of the 12.5 percent tuition hike. This equates to an increase of $11 for in-district students ($99 per credit hour), a $22 increase for in-state students ($198 per billing hour), a $33 increase for out-of-state students ($297 per credit hour) and a $38 increase for international students ($347 per credit hour). The hiring of 20 new student success coaches and an additional four full-time faculty tutors was the main factor behind the rise, according to Richard Prystowsky, LCC provost. The plan is to have the coaches in place for the new students starting in fall 2017. “The idea here is that the academic success coaches will be working with cohorts of 10

While inexpensive tuition is a positive, it’s not the only focus the college has, according to Prystowsky.

RICHARD PRYSTOWSKY LCC Provost

students very individually, in a very purposeful way to make sure they stay on track, get through semester to semester and get toward their goal of completion,” Prystowsky said. “We realized that if we couldn’t really effectively monitor and help students stay on track, then we couldn’t get to our goal of completion, which is the Operation 100% goal.”

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“The student success is driving everything we’re doing,” he said. “The goal is every student that comes here for a certificate, degree or transfer plan — that every single one of those students will succeed in reaching that goal.” This mission requires a complete revamping of how advisors, tutors and new success coaches approach the traditional student services put in place on campus. Gone are the days when students need to go from department to department for academic advising, counseling services, testing services, career and employment services as well as other resources.

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LCC reported 14,851 enrolled students to the Integrated Postsecondary Education Data System for 2016. Last spring, there were currently 14,921 students enrolled, and the fall 2016 numbers aren’t yet available, according to Devon Bradley LCC’s public relations manager. “We do know that with community college especially, enrollment often relates to employment. So as more students get jobs, fewer students come to community colleges,” Prystowsky said.

DEVON BRADLEY LCC Public Relations Manager

“Without students having to ask who can help me, we will provide the help up front. That’s really key,” Prystowsky said. “Higher education, traditionally, has been set up so that students have to find help, they have to figure out where the resources are. But those kinds of processes have not been very helpful in getting students to their goals, so the big push here with the coaches is that students won’t have to ask where the resources are, they will have a coach from the beginning who will help them along.”

This is clearly evident when it comes to Lansing’s unemployment rate, and lowered enrollment at the heart of the city’s community college. Lansing’s unemployment rate being 3.8 percent compared to Michigan’s 4.6 percent and the national average at 5.0 percent, according to the U.S. Department of Labor Bureau of Labor Statistics. When an area has a high rate of its residents with college degree completion, the economy fares better and the job rates are higher. This is the biggest benefit of the tuition increase and the addition of success coaches.

With student success at the heart of the tuition hike, the impact the change can have on the surrounding community, given LCC’s prominent and pertinent location, is also forecast to be positive. “To the extent that we are a major player in the community, with respect to putting students in the job force and that sort of thing – the more we can help students complete degrees, the more we can help the economy locally,” Prystowsky said. “Employers talk about the need for educated, trained workforces, so the more we can help students get that training, get that knowledge, get that experience and get the job, the more we can help local businesses and statewide businesses and so on.” 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.

The college is viewing this goal as both a metric and an attitude in terms of approaching the change. “That attitude is really important because it helps us understand how we need to deliver our services,” he said. “How we need to streamline processing and how we need to create guided pathways to make students stay on track in their programs.” Student success doesn’t come solely from one academic advisor, one inspiring teacher or one career workshop, but rather a whole host of components. The new initiative will reflect the idea that success is the result of many factors, which will now be found in one place and served up-front to the students. “We realize it’s the whole college that has an impact, the whole operation,” Prystowsky said. “It’s what our application procedure is like, what our programs look like, what the faculty engagement with students is, if students need to wait for an appointment to get tutoring help, all of these things.” While the direct effects of the tuition increase are too hard to measure just yet, and there is no direct correlation to lower enrollment due to the hike, there is a direct relationship between enrollment and employment. L

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HEALTH CARE IN LANSING Employment opportunities abound BY OMAR SOFRADZIJA

Mid-Michigan’s hospitals have been where generations of area residents have gone to heal their bodies. In the New Year, those same facilities will be great places for greater Lansing job-seekers to improve their career prospects as well.

a $64 million facility across Michigan Avenue from Sparrow’s main campus near downtown Lansing and home to the Herbert-Herman Cancer Center, and expansion of Sparrow’s FastCare walk-in clinics regionally, Sparrow officials said.

created in the New Year,” Pfaff-Doody said. “Some of that is still in the forecasting stages … [but] we will definitely have some new positions, as we are adding some of those new service lines.”

Hundreds of positions — a mix of unfilled existing jobs and new ones, ranging from doctors, nurses and others who perform handson work with patients, to business support roles and manual labor – are waiting to be filled at greater Lansing’s two largest health care employers, Sparrow Health System and McLaren Health Care.

“Sparrow is always hiring. We actually onaverage have about 500 positions open and available,” said Sherry Pfaff-Doody, director of talent acquisition for Sparrow Health, which employs around 8,000 people. “Those are a mixture of new positions – some new service lines we are moving into and opening – and normal attrition.”

At the Sparrow Cancer Center specifically, “we’re expecting some new positions there, probably not a huge number in that area, but definitely some,” added Pfaff-Doody.

Driving an undetermined number of new hires will be this year’s opening of Sparrow Plaza,

“I don’t have a really good handle on what those numbers will be in terms of new positions

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At McLaren, where there are more than 100 full and part-time openings, chief operating officer Casey Kandow said the growing number of aging Baby Boomers is driving demand for health professionals, along with an increase in insured patients thanks to the Affordable Care Act.

NEWS

The health care sector is one of the largest segments of the greater Lansing economy, accounting for more than 32,000 jobs and $4.84 billion in annual economic impact “We definitely expect to grow in the next year,” he said, adding “it’s kind of difficult to say” what exact numbers may be. McLaren employs more than 2,000 people in greater Lansing.

doctors, physical therapists,” said Pfaff-Doody. “We also have a wide variety of businesstype positions, including professionals in IT, accounting and billing.”

Like at Sparrow, some of McLaren’s hiring will be driven by new initiatives that create additional jobs. “We have some projects that we’re pretty excited about that’ll definitely bring more jobs to the area,” said Kandow, declining to elaborate at this time.

Among medical positions, Sparrow said experienced nurses are in demand right now, while at McLaren there is a shortage of mental health practitioners, officials said. In hopes of alleviating the latter, McLaren has dedicated $1.5 million to Michigan State University to endow a chair in behavioral health there, Kandow said.

Over the past few decades, health care has become integral to the health of local economies alongside more stereotypical job creators like manufacturing.

That job growth is expected to continue beyond 2017. “By 2026, one of six jobs will be in the health care sector” nationwide, Kandow said.

“To be (in) a global economy, it’s imperative you have a very robust, high-tech, competitive health care industry locally,” said Bob Trezise, president and chief executive officer of the Lansing Economic Area Partnership (LEAP). “That’s a huge component.” The health care sector is one of the largest segments of the greater Lansing economy, accounting for more than 32,000 jobs and $4.84 billion in annual economic impact here, according to LEAP’s website. Those numbers include everything from hospitals and clinics to pharmacies, nursing homes and health care equipment suppliers. “Certainly, from an employment standpoint, Sparrow and McLaren together surpass General Motors in employment,” Trezise said. “Hospitals are a big employer. And they’re good jobs.” Mean hourly wages range from $31.14 for health practitioners and technical occupations, to $12.20 for health care support positions, according to LEAP’s website. “They’re an equal-opportunity employer for every skill imaginable. Literally, the hospitals are recruiting and bringing in surgeons and top-notch specialists from (all over) the world,” Trezise said. “Yet they’re also hiring maintenance people and landscaping people and security people and every mid-management position possible.”

“This is faster (job growth) than any other occupation in the nation.” Trezise said his group is working with local hospitals to support and incubate entrepreneurial efforts that stem from work being done at the medical centers. People interested in jobs at Sparrow Health System can browse open positions and apply online at sparrow.org/careers. At McLaren, job seekers can visit mclaren.org/lansing/career.aspx. “If people are interested in a career in health care, do the research” and consider volunteering, Kandow said, calling it “the best way to investigate a new career. There’s no better experience than first-hand experience.” 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 the Peoria (Ill.) Journal Star newspapers.

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ANTICIPATED BUSINESS TRENDS IN 2017 BY MICKEY HIRTEN

To see where the Lansing region is heading in 2017, look at 2016, an overall good year for the local economy. Investments announced last year by General Motors and parts suppliers will strengthen the auto industry. The Michigan Avenue corridor — considered the region’s backbone — will continue developing. Medical services, sparked by expansion of the Sparrow Hospital facilities and the prospect of a new McLaren Hospital linked to Michigan State 14

University (MSU), will continue reshaping the health care industry. The demand for student housing continues with the opening of the hulking $90 million SkyVue apartments, west of the university and a $23 million and a 219 unit apartment complex under construction by Campus Villages on Grand River in Meridian Township. Growth also is expected in the emerging senior-living housing market. And on a smaller sale, artisan breweries, coffee shops and locally sourced food service businesses

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are signaling to a younger generation of workers that the Lansing region is casting aside its stuffy, institutional image and becoming a cooler, more millennial place to settle. For small businesses, which predominate throughout the region, the focus for the coming year is people. “When we ask what keeps you up at night, the answer is talent,” said Rob Fowler, president and CEO of the Small Business Association of Michigan (SBAM). “What it means is that

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business will need to be more creative in ways to hire and retain people. It suggests wage inflation and the addition of benefits.”

Road, is for sale and according to Trezise, new developments are projected for Dunckel Road and closer to the campus on Trowbridge Road.

The pressure of low unemployment and the strong economy — a good thing, Fowler noted — creates a buyers’ market for workers. And adding to the pressure is the oft delayed, though inevitable and now accelerating, wave of baby boomer retirements.

The region’s two large hospital systems are engaged in planning large facilities adjacent to U.S. 127. McLaren and MSU have been discussing a new hospital near the intersection of Forest and Collins roads. It would serve as a teaching facility for MSU’s College of Osteopathic Medicine.

While a decline in the baby boom workforce will be felt broadly, The Conference Board, in a 2016 report, found that it will affect two labor markets particularly important in the Lansing region: health care and skilled trade labor. “The former faces rapidly growing demand as the result of an aging population. The latter category, which encompasses jobs like machinists and power plant operators, faces a dearth of new entrants to replace retiring workers,” according to The Conference Board 2016 report. “By contrast, concerns over computer and science occupations may be overstated, as the supply of workers is likely to keep up with demand.” Expect more industry related training programs to steer workers into careers. Industries as diverse as insurance, construction and metal working are focusing on apprenticeships and intern opportunities. For its latest reported fiscal year, Capital Area Michigan Works! allocated $688,444 for skilled training programs, up from $476,802 the previous year.

Further north, Sparrow Hospital announced in mid-November that it planned a still undetermined facility in the $380 million Red Cedar Renaissance development. Construction for the project, originally scheduled for 2016, is now planned for 2017, according to developer Joel Ferguson. Reflecting an improved economy, retailers throughout the state and region begin the New Year generally optimistic about their businesses. Each month, the Michigan Retailers Association polls its members on their three-month outlook. Its latest survey finds that two-thirds of those surveyed expect sales to increase and about

“It’s going to be fascinating to watch,” Trezise said, detailing projects that would unfold along the corridor. He noted that at its October Board of Trustees meeting, the university agreed to purchase property on Collins Road for its Office of Regulatory Affairs as well as staff associated with Information Technology Services. The former post office building, also on Collins

“Hiring does become more of a challenge. I haven’t heard it as a major issue, but it will be a concern. It’s not just hiring people. It’s qualified people. That’s the problem,” said Tom Scott, senior vice president of communications and marketing for the Michigan Retailers Association. But overall, he said the retail community is optimistic. 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.

We don’t take the credit

We give it.

Even as its economy diversifies, manufacturing remains a steady source of jobs. In 2016, according to the Bureau of Labor Statistics, manufacturing employment during the summer topped 21,000 for the first time since 2008. General Motors announced that it will spend $211 million to upgrade tooling and equipment at its Grand River Assembly plant. Auto parts supplier Gestamp will invest roughly $105 million to expand its operations in Mason. One of the hottest areas for new local development parallels U.S. 127. Lansing Economic Area Partnership (LEAP) President and CEO, Bob Trezise, calls it the Harrison Road corridor, extending roughly from Michigan Ave. south to Jolly Road.

that number expect an increase in marketing expenses. Slightly more than half (53.8 percent) expect higher prices while a slim minority (48.3 percent) expect reductions in inventory. The positive outlook suggests some increase in hiring plans. The survey found that more than half of retailers (53.9 percent) anticipate adding jobs. Unemployment in the Lansing/East Lansing region was just 3.3 percent in September, according to the Bureau of Labor Statistics.

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YOU’VE BEEN AT THE LANSING STATE JOURNAL SINCE AUGUST. WHAT ARE YOUR THOUGHTS ON THE DIFFERENCES BETWEEN DETROIT AND LANSING? Lansing’s a much welcome change, the community and the lifestyle. You feel at ease here. You’re not driving, getting stressed out coming to work. Your life isn’t go to work and go to bed. I think it promotes a better lifestyle. WHAT ABOUT THE NEWSPAPER BUSINESS? Detroit tends to look more like a national play because it has the audience and scope, with people from all over the country wanting their sports, their automotive news. Lansing is a hyper-local community and very united. You get that very quickly when you move here, how important it is to come together and promote the region. To be a big metropolitan media company in a market that size, you don’t get the support from the community that you do here in Lansing HAVE YOU SETTLED SOMEPLACE? I’m living here in this building (the Knapp’s Centre). I was staying here temporarily until I found a place. I found some homes on the west side that I liked, but things didn’t work. I had some people from work upstairs for a little get together. There are nice balconies and things, and they said why do you want to leave? That’s a good question. Why leave? It’s a beautiful building and right downtown. I can walk to everything. TALK ABOUT THE ROLE OF THE LANSING STATE JOURNAL. Gannett and the State Journal are very committed to local journalism. Our role in the community is to be even better, to provide watchdog journalism and at the same time promote this region. You’ve got Lansing and East Lansing. How do we all come together in the right way for this community to grow and develop? I lived in downtown Detroit before I moved here. I see a lot of the development happening there that’s happening here. You have the Eyde’s and Gillespie’s, the groups that are working on downtown. In Detroit, you had Gilbert, of course, and the folks in the Downtown Detroit Partnership. Woodward was our Michigan Avenue. This can be an Austin or a community like that if we do our part to help promote that. It’s critical.

BY MICKEY HIRTEN | COURTESY PHOTO

REBECCA POYNTER President of Gannett Mid-Michigan Rebecca Poynter, 50, was named president of the Lansing State Journal in August 2016. Previously, she was senior vice president of sales and marketing at Michigan.com, which includes oversight of advertising in the Detroit Free Press and Detroit News. 16

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THE LANSING STATE JOURNAL AUDIENCE IS CHANGING AND THE WAY YOU DELIVER NEWS AND INFORMATION TO THAT AUDIENCE IS CHANGING. WHAT DOES THAT MEAN? I learned a long time ago that you can’t tell your audience how or when to read, or what to read.

BEHIND THE SCENES

The beauty of the time and place we live in now is that we see how people want their information and what they like. You can see all of this on screens. Which stories are trending, what people are sharing. In Lansing, we have our flagship product, which of course is our print newspaper. That’s a long read and we still have core basic journalism principles that we will always follow with that. But some of our audience wants quick, fast, interesting and generally some video or something that’s interactive. How do we capture that and still bring them back to our site so they can get the important information that we want them to get to? We balance all of that. It’s funny, you can see that breaking news will spike really high and that’s great. But it’s a brief moment and things come back. We just have to make sure that we have the staff and the updates so that they can get it when they want it. WHAT’S YOUR STRATEGY FOR ATTRACTING REALLY GOOD PEOPLE TO AN INDUSTRY THAT BY MOST MEASURES IS DECLINING? We have good talent here and we are very fortunate that we are close to a university so we have a lot of access to talent on the news and advertising/marketing sides. In a bigger, national market like Detroit with its auto industry you are competing with everybody for talent. I still see a great interest in the news business and there are people who want to make a difference in their community. This is still a great job. Does it have to be something that I do for the rest of my life? Maybe not. Our world can be to have people come and create and learn about the great things that you do and then move on to other careers. But then some people stay. MOST OF YOUR CAREER HAS BEEN WITH NEWSPAPERS. BUT YOU ALSO WORKED AT COCA-COLA. WHAT WAS THAT LIKE? It was the best professional learning experience that I had because Coca-Cola is such a fabulous company and so was the training and the brand experience. You learn very quickly that you are the front person or the ambassador for that company, no matter what you do. You learn how to think and process and speak professionally. To listen and to empathize with people, but to do that in a way that doesn’t jeopardize the company’s brand. They were so excellent in tracking information. It would tell them things about flavors or their marketing. And there is also the great customer service. For anybody who called there, you would personally write them a letter. It was just that great touch. That helped me when I came back to our industry. I was doing sales and I realized that

I really liked that part of the business, the sales and marketing side. I could see where I could make such a difference because I knew how to communicate so much better to customers so they could feel good about doing business with you.

want Lansing to get the most that it can from being part of a larger group.

DID THAT APPROACH SET YOU APART FROM THE SORT OF PEOPLE WHO WORKED IN THE NEWSPAPER INDUSTRY?

It’s always about talent. Making sure that our pipeline is full. We just aren’t always recruiting or knowing people in the community who might want something here. We have to do a better job, myself included. And another challenge is getting to know people in the community.

Absolutely. Our industry is very volatile, fast paced. Mistakes are there for everybody to see. Being able to recognize and get ahead of issues in honest and transparent ways are things that I learned and didn’t shy away from.

WHAT ARE THE CHALLENGES YOU FACE HERE?

WHAT DOES GANNETT WANT FROM YOU?

WHAT KIND OF GOALS HAVE YOU SET FOR YOURSELF AND THE NEWSPAPER?

They want somebody who understands that when this is not working I’m going to focus on this area.

The Lansing State Journal is a jewel in Gannett. It has great audience numbers and has a great staff on the news and sales and marketing side. What I can help this organization with, and what I’ve already seen, is connecting the dots. Lansing has been a little isolated. I can push to get help from our larger markets for things that we are doing. I

You have to be able to focus on the big picture and not get too far down the minutia. And the other thing is letting some things go, recognizing that these are things I can control. This conversation with Rebecca Poynter has been edited for space and clarity.

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2016 YEAR IN REVIEW

A YEAR IN

REVIEW 2017 is here, so what better way to celebrate the New Year than to have a look back at 2016 and reflect on all that has happened. Here are some of the highlights we’ve pulled from the year’s local and national business news, major events and interesting tidbits:

JANUARY FEBRUARY

MARCH

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Nearly 60 schools closed due to a ‘sickout’ organized by Detroit teachers protesting the “deplorable teaching conditions” of their schools.

An Uber driver in Kalamazoo went on a shooting rampage, killing six people and injuring two others. The incident reopened the debate about the lack of regulation of ride-sharing apps.

MSU basketball player Denzel Valentine became the first Spartan to win the Associated Press award for National Player of the Year. He was also the first in Big Ten history to record 1,300 points, 700 rebounds and 500 assists.

The Michigan Food Innovation District, a development on Jolly Road designed to bring new and innovative agricultural business to the area, presented the results of its first member to join the district.

Michigan State University (MSU) elected to keep WKAR-TV on air and partner with Detroit Public Television after considering a potential sale of the broadcast. Gov. Rick Snyder activated the Michigan National Guard to assist state authorities and volunteers with the Flint Water Crisis. GM launched its car-sharing service, Maven, in Ann Arbor. The app allows users to reserve and unlock vehicles with their smartphone. NATIONAL Legendary artist David Bowie passed away after a long battle with cancer. This marks the first high-profile death of 2016, and is later followed by actors Alan Rickman and Gene Wilder and singer Prince.

The SCM World University 100 ranked MSU’s Supply Chain Management program as the best in the U.S. NATIONAL The World Health Organization declared Zika an international public health emergency. The virus had spread through more than 20 countries and the first U.S. case was reported in Hawaii. Supreme Court Justice Antonin Scalia died, leaving a 4-4 split in the court. Scalia served for 30 years and was recognized as “the intellectual anchor” of the conservative justices.

Members of the Lansing business community gathered for the annual Greater Lansing Entrepreneurial Awards and honored the nominees for innovation and inspiration. NATIONAL President Obama made a historic trip to Cuba, marking the beginning of fewer boarders between the countries and Cuba’s broadened access to the global economy.

Astronauts in the International Space Station successfully grew the first flower in space.

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Lansing Board of Water & Light faced a cyberattack locking company officials out of its internal communications systems. A $25,000 ransom was paid to regain access to its system. NATIONAL Treasury Secretary Jacob J. Lew announced that Harriet Tubman will replace Andrew Jackson on the $20 bill, becoming the first woman to be featured on paper currency since Martha Washington briefly appeared in the 19th century. The new designs will be unveiled in 2020. Microsoft sued the U.S. government over customer privacy rights, aiming at a federal law that allows authorities to examine email or online files without the user’s knowledge.

2016 YEAR IN REVIEW

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Area voters approved the $120 million “Lansing Pathway Promise” bond. The Lansing School District plans to use the funds to update older buildings in the district.

Emotions sparked during continued community discussions over CATA’s proposed Bus Rapid Transit (BRT) project. Some area business owners feared that the new design could negatively impact the local economy.

Lansing businesses cashed in on the Pokémon Go phenomenon by offering deals for players hunting for Pokémon downtown.

Lansing will make it to the big screen in “Transformers: The Last Knight.” Cast and crew of the newest movie in the popular franchise spent time in Old Town before shooting scenes for the upcoming film on Highway M 52.

Michigan’s jobless rate dipped to 4.7 percent, the lowest for the state since March 2001. NATIONAL Time Warner Media merged with Charter in a $54.7 billion purchase. In response, the FCC issued a list of requirements for Charter as the now second-largest broadband provider in the U.S. A year after one of the largest document leaks in history, the Panama Papers are turned into a searchable database published by The International Consortium of Investigative Journalists. (The files were taken from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca, and showed ways the rich can exploit secretive offshore tax regimes).

The East Lansing Financial Health Review team began studying potential new revenue sources for the city, including the implementation of an income tax. NATIONAL In a year marked with gun violence, the deadliest shooting in modern history happened when a gunman opened fire in an Orlando nightclub. He killed 49 people and wounded 53. The “Brexit” became official after a U.K. referendum to leave the European Union (EU) passed in a close 52 percent to 48 percent vote. Many were left with questions about what may happen with U.K. businesses that operate in the EU and the curbs that could be put on immigrant workers.

Capital Region International Airport soared to new heights when American Airlines began offering direct flights to Washington D.C. The Michigan-China Innovation Center opened in downtown Detroit, intended to be a portal between the two for business and investment. Since 2000, the state has attracted $3 million in investment from China. NATIONAL “Harry Potter and the Cursed Child” became the fastest-selling book in a decade when it sold 680,000 copies in its first three days on shelves. The tone of the 2016 presidential election shifted as both parties held their national conventions, Republicans nominated Donald Trump and Democrats chose Hillary Clinton, and prepared for the general election.

Lansing Mayor Virg Bernero declared a housing emergency when a local hotel, sheltering 91 people through the nonprofit, Homeless Angels, announced they were closing. NATIONAL The Summer Olympics kicked off in Rio de Janeiro, Brazil after months of international concern over the country’s ability to host a successful games. Michigan athletes performed well and won a total of 19 medals, 12 of them gold. The annual Port Huron Float Down turned into an international event when strong winds blew the 1,500 participants on rafts and boats toward the Canadian shore.

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The Michigan Senate approved two bills, SB 995 and SB 997, which will allow self-driving cars on public roads without a person in the car in case of emergency (Still awaiting approval in the House).

MSU unveiled a new bronze Spartan statue during the school’s homecoming week.

Sparrow Health System was recognized during the Lansing Regional Chamber of Commerce's 11th annual Celebration of Regional Growth Awards. Their $285 million investment in the region in the past five years was celebrated as an important economic driver for the area.

Michigan county clerks prepared for a ballot recount after Green Party candidate Jill Stein asked for one in Wisconsin. Attorneys for Donald Trump pushed back and filed an objection against the recount request.

Tesla Motors sued Michigan’s governor, attorney general and secretary of state. The company claimed that the state’s ban on direct manufacturer sales was unconstitutional. In response to a Kalamazoo driver that hit nine bicyclists, Lansing lawmakers introduced bills that would make bike safety part of driver’s training and require five foot buffers when passing bicyclists on the road. NATIONAL

East Lansing passed an ordinance allowing people over the age of 21 to use or possess less than an ounce of marijuana on private property. For those under 21, it remains a civil infraction and fine. NATIONAL Internet users in the U.S. and parts of Europe faced server outages when hackers launched an attack against Dyn, one of the largest Internet routing companies in America. An OPEC meeting in Algeria reached the first agreement to cut oil output in eight years and prices hiked to $50 a barrel.

Wells Fargo was ordered to pay $185 million in fines after news broke that the company had fraudulently opened an estimated 1.5 million bank accounts and over 500,000 credit cards. The EPA issued a notice of violation of the Clean Air Act to Volkswagen Group after discovering that the German automaker had been cheating on emissions tests for years.

The MSU Foundation launched Red Cedar Ventures, a $5 million venture investing subsidiary to assist MSU startups that are on the verge of market launch. An MSU server containing information of over 400,000 past and present students was hacked. The attacker(s) gained access to personal information including social security numbers and student ID numbers. NATIONAL Businessman-turned-politician Donald Trump won the presidential election by an electoral margin that few polls or media outlets predicted. His victory sparked protests around the country.

Police in Michigan, Indiana and Ohio came together to reduce vehicle crashes along the I 94 corridor and other major freeways with operation “Eyes on 94.” NATIONAL After months of protests in North Dakota, members of the Standing Rock Sioux tribe and their supporters celebrated after the U.S. Army Corps of Engineers halted work on the Dakota Access Pipeline. President-elect Donald Trump announced the members of his cabinet, including Michigan billionaire Betsy DeVos as education secretary.

The Chicago Cubs curse was lifted when the team won the World Series after a 108-year drought. They defeated the Cleveland Indians 8-7 in the final game of the series.

Photo from The New York Times 20

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VISUAL BREAKDOWN

HEADLINE NEWS

THAT’S TRENDING The Internet is the best way to gauge the public’s opinions. THE TOP FIVE MOST DISCUSSED TOPICS OF THE YEAR

THE TOP FIVE MOST SEARCHED TOPICS

(based on social media mentions)

(on Google U.S.)

The worldwide population is

7.3 BILLION

TRUMP/CLINTON ELECTION

43% of the world uses the internet (3.17 billion users)

#BLACKLIVES MATTER

APPLE VS. FBI: PRIVACY

DAVID BOWIE'S DEATH

PRINCE'S DEATH

POKÉMON GO MOBILE GAME

HILLARY CLINTON

DONALD TRUMP

MICROSOFT WINDOWS 10

HAMILTON MUSICAL

THERE WERE LOTS OF FAKE NEWS HEADLINES DURING THE 2016 PRESIDENTIAL ELECTION

Total Facebook engagement for top 20 election stories

Facebook’s automated newsfeed brought confusion and misconception to its users with these popular false headlines:

(August-November 2016 election)

Pope Francis Shocks The World, Endorses Trump For President

8.7M

FAKE NEWS MAINSTREAM NEWS 7.3M

WikiLeaks confirms, Hillary sold Weapons to ISIS It’s over: Hillary’s ISIS Email Just Leaked & It’s Worse Than Anyone Could Have Imagined

2.3 BILLION are active social media users

SOCIAL MEDIA AND BUSINESSES

10:30 AM

100%

Social networks earned an estimated Sponsored

$9 BILLION from advertising in 2016

Mobile ad campaigns now reach their intended audience

60% of the time

HOWEVER, COMPANIES WEREN’T ENGAGING MUCH WITH THEIR AUDIENCE… COMPANIES IGNORE

70%

of Facebook questions Compiled by Adam Lansdell | Graphics by Nikki Nicolaou Sources: Fortune.com, Nielsen, Buzzsumo, Google Trends, ContentFAC, Mashable, Twitter, Facebook, Forbes, Business Insider L

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NEWSMAKERS 2016 & ‘17 The greater Lansing area was filled with business news in 2016 and we at GLBM predict that 2017 will bring just as much exciting news to our capital region in the coming year. Here’s some of the top business news stories from 2016 as well as a few people and events we think will make a splash in the coming year:

2016 NEWSMAKERS

Virginia, Ohio and Indiana. Both cities have offered support through property tax abatements.

NEW JOBS AND TECHNOLOGY ROLL INTO MASON

“Gestamp North America is excited about the significant opportunities for growth in the state of Michigan. The Michigan Economic Development Corporation (MEDC), county and local government representatives have been extremely supportive in providing a path to allow us to secure this growth in our business from Michigan locations which will create jobs and investment in Troy, Mason and Chelsea,” said Jeff Wilson, CEO of Gestamp North America and Asian Division. “Gestamp is committed to being an industry leader in technology and products focused on increasing safety and reducing weight, and the growth in Michigan will reflect these enhancements in future vehicles.”

Mason, Mich. took center stage on the global scene as Spain-based automotive supplier Corporación Gestamp, an international supplier of metal parts and assemblies for auto manufacturers, announced plans to expand its Mason plant, bringing with it new jobs and technology to the Lansing region. The project is part of a statewide expansion that will generate a total private investment of $158.7 million to create 295 jobs. Of this amount, $90 million will be used to expand Gestamp’s Mason location, making it the company’s largest physical operation in the U.S. From this investment, nearly $16 million will be allocated towards facility expansion, while the remaining $74 million will be used to invest in advanced technology equipment. Sources from Gestamp say the Mason plant will produce hot stamped door rings, which will improve safety and crash performance of vehicles. When production begins in 2018, Mason will be the only location currently producing this product for Gestamp in North America. In addition, the company plans to open an additional operation in Chelsea, Mich. under Gestamp Washtenaw, LLC, which will include a new chassis assembly line and an electronic coat paint line. Projects produced in Mason and Chelsea will generate a total private investment of $158 million and create 235 jobs. Michigan was chosen over competing sites in Tennessee, West

LANSING WELCOMED FIRST STAND-ALONE CHICK-FIL-A RESTAURANT IN MICHIGAN On Oct. 13, local franchise owner Kate McNerney brought Chick-fil-A’s freshly prepared menu and award-winning customer service to Lansing, as she opened the first of two Michigan restaurants.

Gestamp North America plans to expand its existing headquarters in the city of Troy, Mich. investing $700,000 and creating 60 jobs. MEDC, Lansing Economic Area Partnership (LEAP) and the City of Mason partnered with Gestamp to make the Mason expansion a reality. The plant currently employs over 400 people with plans to add 40 new jobs in the areas of engineering, skilled trades, management and production. Initial site preparation activities have started at Gestamp’s Mason location. Pending approval by the City of Mason’s City Council for a property tax abatement, sources at Gestamp say that the company expects the project to be completed in time to start production in 2018.

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Chick-fil-A, located at 5617 W. Saginaw Hwy., opened Oct. 13, 2016

McNerney graduated from the University of Michigan with a degree in psychology and later earned a master’s degree of Public Administration from Central Michigan University. She served in the U.S. Air Force, Air National Guard and U.S. Air Force Reserves in Dayton, Ohio and it was there that she spent time at a Chick-fil-A restaurant learning about operator opportunities. Earlier in her career, McNerney worked as an assistant manager and event coordinator for Centennial Hall, a banquet hall and catering business in Mt.

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Pleasant, Mich. McNerney, who grew up an hour from Lansing, is thrilled to return to the state with her husband, Joe, and their three children to introduce central Michigan to Chick-fil-A.

Stadium and the Detroit City FC plays at the venerable 7,000-seat Keyworth Stadium in Hamtramck, Mich. Teams like Lansing United play on smaller community-level fields, often to smaller crowds.

“I am originally from Mount Pleasant so I was excited to be in Michigan. The Lansing community has really welcomed us, and being from Michigan it just gives me one more way to connect with our guests and vendors and make the experience event better,” said McNerney. The new Chick-fil-A at 5617 W. Saginaw Hwy., has seen amazing success since it opened its doors in the fall of 2016. Guests have traveled from all over to savor the restaurant’s freshly prepared fan favorites and gather with family and friends to enjoy the welcoming and comfortable atmosphere. The restaurant currently employs 105 individuals with anywhere from 30 to 40 staff members, scheduled to cover lunch and dinner shifts to ensure top-notch guest service and experiences. With anywhere from 3,000 to 5,000 guests visiting the location each day, it’s is no easy feat, but McNerney and her team are dedicated to providing their very best to each guest and the Lansing community as a whole. “I love working with people, everyone from team members to guests. Someone might come in and be having a bad day and we can help turn that around,” McNerney said. “Sometimes we will surprise guests with cookies or ice cream, or maybe it’s just the offer to refresh their beverage, whatever it is we want them to know they are always welcome here.”

LANSING UNITED MAKES A STAMP ON THE COMMUNITY After three successful Lansing United soccer seasons, on the field and in the front office, team owner and general manager Jeremy Sampson, believes he has a sustainable sports business. His soccer team is now well established in its league, drawing about 8,000 fans last season to its games at the East Lansing Soccer Complex and has a growing roster of corporate sponsors.

But this doesn’t bother Sampson. “What I love about the East Lansing Soccer Complex is how close you are to the field. The fans are right in the action.”

Building on the successful startup, he raised ticket prices last year and hired a new coach and general manager; and the team, absent two late game defensive collapses, would have qualified for the National Premier Soccer League’s (NPSL) playoffs. Not bad for the former WILX-TV sports reporter, who fashioned his passion for soccer into a successful sports franchise. His fulltime job is Marketing, Promotions and Ticket coordinator for the Michigan High School Athletic Association. Lansing United and the other regional teams playing in the NPSL’s Midwest Region Great Lakes West Conference, embody the ideal of amateur soccer. That’s amateur with a capital A. “The majority of the team – 90 to 95 percent – is current college players. They are registered with U.S. Soccer as amateurs,” Sampson said. The NPSL is a stepping off point for players seeking to advance through the ranks of professional soccer. “We’re the equivalent of Class-A baseball, like the Lansing Lugnuts,” he said. In fact, with teams in communities like Ann Arbor, Kalamazoo, Pontiac and Dayton, Ohio, the league is structured much like Midwest League baseball. Because it’s an amateur league, that is, no paid players, community size and finances have little effect on the quality of players acquired by the clubs. Where market differences appear is in the venues. Pontiac’s Michigan Stars play in the 6,600-seat Wisner Memorial

It’s about fan relationships, rooted in the community. For example, Sampson didn’t pick the team’s name, it was chosen by fans. “The community has supported us beyond my wildest imagination,” he said. In return, the club in past years has supported a range of charitable activities: food drives for the local food bank, donations to the Red Cross and fundraisers for Wounded Warrior Project. In the coming year, Sampson wants to focus his team’s charitable outreach on a single charity, Sparrow Health System’s Herbert-Herman Cancer Center.

JACKSON NATIONAL LIFE CONTINUES TO THRIVE IN LANSING Jackson National Life Insurance Company has long been a trusted and valued organization in the greater Lansing community and 2016 only solidified that relationship. From the newest addition of their Okemos campus opening in late 2015 to the exciting grand opening of the Jackson Teen Zone at the Boys & Girls Club in Lansing, Jackson has continued to make a lasting impact in the community. Jackson has been a part of Michigan for 55 years and continues to grow and prosper. Being located in the heart of Michigan gives the organization access to outstanding talent within a very welcoming business community. “We owe much of our success to the support of the surrounding

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In 2016 Jackson continued to shake things up with the grand opening of the Jackson Teen Zone at the Boys & Girls Club of Lansing. The renovation and 4,680 sq. ft. expansion was funded by a gift from Jackson and its associates totaling $683,000. The new space features a state-of-the-art Teen Center, conference room and lounge space, which allows the Boys & Girls Club to provide, customized tutoring and educational programs utilizing enhanced technology. But the company didn’t stop there, Jackson’s IT department hosted its third annual Charity Golf Classic, raising more than $100,000 for several local Lansing nonprofits to benefit the community in a myriad of ways. Jackson continues to make big moves and offers big support to make big things happen for greater Lansing communities.

2017 NEWSMAKERS Jackson National Life Insurance Company

community and the people who have made Jackson what it is today,” said James Sopha, president and CEO of Jackson National Life Insurance Company. But even with over a half a century of history, Jackson isn’t settling into what’s comfortable, the insurance giant is taking big steps to shift the perception of the insurance industry as a whole. Jackson believes in taking a leadership role in the areas of financial learning and empowerment, and strives to make an impact on the overall level of financial education and investing confidence in the U.S. “Jackson believes you shouldn’t wait until somebody is nearing retirement to introduce financial planning concepts. We believe in working on a larger scale to start educating kids at the elementary school level with basic money concepts and continue to educate and talk to students throughout their academic careers,” Sopha said.

GILLESPIE GROUP REFOCUSES DEVELOPMENT DOWNTOWN It’s hardly an overstatement to credit Pat Gillespie for altering Lansing’s business district. A cruise along Michigan Avenue is studded with markers that reflect his influence. Just blocks from Michigan’s State Capitol is the Stadium District complete with apartments, offices and retail shops. Across the street is the Outfield, the innovative apartment complex that looms over the baseball field at Cooley Law School Stadium. Head east and there’s The Willis Apartments sitting over Moriarty’s Pub. Next comes the Midtown Apartments, with bold colors and an international flare, nestled in the shadow of Frandor Shopping Center. Conveniently located nearby are Altu’s Ethiopian Cuisine, the Midtown Leasing Office and Battery Giant. For 2017, Gillespie is stepping back a bit from Michigan Avenue to focus on the Stadium District and the Shiawassee Street corridor. His company, the Gillespie Group, plans to add housing, manufacturing and retail entertainment to these burgeoning business districts. The Lansing-based development and property management company is adding a second building on the riverfront’s Marketplace

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

JANUARY 2017

Apartments’ site, drawing another 120 to 140 people downtown, Gillespie said. On Shiawassee Street, the company has acquired and will redevelop the former NAPA Auto Parts property, possibly for offices, warehousing, retail or mixed-use. Its development of the Lansing Brewing Company site at the corner of N. Cedar and Shiawassee streets, has already begun transforming the area. Two blocks to the east, Gillespie plans to remake the former Clara’s Lansing Station restaurant which closed in June 2016. “It’s going to be a whole new concept, with a new name and a historically renovated building,” Gillespie said. “The whole Stadium District is really dynamic. We believe it will draw tens-of-thousands of people downtown.” Gillespie continues to buy properties along Michigan Avenue. His company has acquired the site of the former Logan Bros. printing operation in the 2600 block and two houses near the Lansing Women’s Center. Down the road, and bright on Gillespie’s radar is the 14-acre Sears site. The troubled national retailer leases the dated 196,000 sq. ft. building from his company. Adjacent to Frandor Shopping Center, and in the rapidly developing neighborhood of the new SkyVue apartments and the proposed Red Cedar Renaissance, is where the development potential remains untapped. “I think we will have a pretty dramatic impact in the next 12 months,” Gillespie said. “It’s about the way our team wants to make a difference in Lansing, not purely about dollars and cents, but about how we can move the region forward.”

COMMON GROUND DECIDES TO SCALE BACK Scott Keith is president and CEO of the unwieldy sounding Lansing Entertainment & Public Facilities Authority. Sure, someone has to manage the real estate: the Lansing Center, the Lansing City Market and Cooley Law School Stadium. But the job really is about public entertainment and for this, Keith is Lansing’s social chairman, a vital role in advancing the transformation to a cool and vibrant city. For 2017, the pace of change is accelerating, as Keith and his staff shuffle resources and

COVER

water and permanent restrooms. It isn’t the stage that’s expensive. It's the cost of regrading, drainage and power. All of this could be done for five-or-six million dollars. It’s a small investment for the potential economic return of jobs and coolness factor that’s so key to attracting and retaining young workers.” While this percolates, initiatives for 2017 included an evolution of the City Market as a riverfront destination gathering spot. The city has opened up the interior of the 11,000 sq. ft. building and has about 6,000 sq. ft. of open space for venues as varied as concerts and Euchre tournaments. The success of jazz and blues concerts in the market last summer, convinces Keith that this is what the public wants at the $1.6 million facility that has struggled since it opened in April 2011.

AWOLNATION performs at 2016 Common Ground

strategies. The city is revamping Common Ground, acknowledging that the festival market is struggling and no longer viable in Lansing. What in 2016 was a six-day event, will shrink to four days in July. “It’s really more of a concert series. This is where the market is going,” he said. Of the six nights of Common Ground last year, only four were successful. “We understand that we have to evolve,” he said. What’s happening quietly, but seriously, is planning for a permanent stage at Adado Park, a development that will significantly lower the cost of staging events there. Keith said there is an informal group looking for ways to upgrade the infrastructure and facilities at the river-front park, which for most of the year is essentially an urban pasture with a few dated amenities. With better facilities, Keith envisions a Common Ground concert series with events throughout the summer. “Think of all the other activities that could take place at Adado Park if there was electricity,

Also planned for 2017 is a new event, celebrating opening day for the Lansing Lugnuts. It will be staged on the plaza in front of the stadium with bands and vendors. Keith said similar events happen at the professional level, where there are more people outside the stadium than inside. “It’s about making people excited about opening day,” he said.

FORSBERG BRINGS DEVELOPMENTS TO GREATER LANSING IN 2017 Since 1950, greater Lansing has been home to T.A. Forsberg Inc., a development and real estate company. Now, under the direction of Brent Forsberg, T.A. Forsberg Inc. has been a huge part of the Lansing community through multiple development projects and acting according to their mission statement, “Enhancing the quality of life in the communities we serve.” In 2017, Forsberg has big plans. One in particular is the development of a lifestyle community called Elevation. “My team, our partners, BSD and Randall & Branoff Development, have worked hard in the last three years designing and working with Meridian Township, during the approval process, to build

one of the greatest lifestyle communities in the Midwest,” said Forsberg about the project. Although there will be approximately 390 apartments incorporated in the end, Elevation will be more than an apartment complex. The final Elevation project consists of an entire community nestled within the greater Okemos community. Restaurants, parks, shops, trails, ponds, businesses and more will all be within walking distance of the living spaces. The best part of all is that each of these non-residential amenities will also be available to the public, not just residents of Elevation. “We are also working on building a 20,000 to 30,000 sq. ft. market that will be the focal point of this area in the region,” explained Forsberg. “We will have an outdoor pavilion, summertime festivals in our many gathering spaces and other amenities that will provide so much to what this area already has to offer.” Forsberg noted that his company plans to break ground on this project in the spring of 2017 and that T.A. Forsberg Inc. will be testing new styles of housing in the region to help keep the cost of living affordable. “I will feel accomplished when greater Lansing is considered the highest quality of life place to live in the country, based on affordability of housing, wages versus cost of living, social metrics such as access to trails

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for transportation and recreation, restaurants and other social hotspots like arts and sporting venues. My goal in the next year is to keep connecting like-minded individuals through our communities to build on these pillars,” said Forsberg, crediting his faith, his family, his friends and co-workers for his personal success. “I never focus on what I am getting out of a deal,” he said. “We have to make money to survive, but that will come if you are doing the right things for the right reasons.”

SPARROW CELEBRATES 2016 AND ANTICIPATES BIG CHANGES IN 2017 For more than 100 years, Sparrow Health System has been a part of the greater Lansing community. Located on the Michigan Avenue corridor, Sparrow has been involved in making that area of town more walkable, livable and economically vibrant..

In the New Year, Sparrow is looking forward to opening the four-story, $64 million Plaza Building, giving a home to the much-anticipated Herbert-Herman Cancer Center and other services to streamline patient care. “The Herbert-Herman Cancer Center will offer the latest technology and treatments and ongoing support services for patients and families,” explained a group of Sparrow executives. “It is designed around the multidisciplinary teams of specialists unique to Sparrow and our regular collaboration with Mayo Clinic oncologists through our membership in the Mayo Clinic Care Network.” This center will offer cutting-edge technology and new ways of fighting cancer, as well as

specially commissioned artwork, with the intention of promoting a healing atmosphere. Sparrow has also recently affiliated with Hayes Green Beach Memorial Hospital in Charlotte, Mich. which owns AL!VE, an experience-based destination health park, one of the only facilities in the country of its kind. “At Sparrow, our commitment to providing the best patient care means providing facilities that meet the needs of our region, because our patients and their families expect quality care in a healing environment, and they expect it close to home,” said Sparrow executives. In mid-Michigan, Sparrow has invested more than $285 million in construction and information technology projects in the last five years and they continue to transform care while implementing best practices in the medical field. “Part of our role as a pillar organization in Michigan’s capital city is sharing our resources to benefit the citizens of Michigan. We work hard to build and maintain mutually beneficial long-term relationships with both corporate and foundation community partners.”

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Over the course of 2016, Sparrow opened two huge assets to the health community. In July, the Gathering Place opened, which

encompasses a 4,000 sq. ft. addition and 20,000 sq. ft. of renovations, and is a modern, upscale dining area on the main campus of Sparrow Hospital that allows both patients and caregivers to relax and recharge. The Sparrow Health Center Lansing, replacing the medical/dental building, expands access to primary care, provide senior health services and offers a drive-thru pharmacy, laboratory, physical therapy, endoscopy and more.

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JOIN US WEDNESDAY, FEBRUARY 15 Be an active member of Lansing’s dynamic business community. Meet people from diverse industries to add to your network, reconnect with friends and find local resources. Join us for Connections & Coffee presented by Greater Lansing Business Monthly and Michigan State University Federal Credit Union.

8 - 9 AM F EBRUARY 15, 2017

MSUFCU HEADQUARTERS 3777 WE S T R D. EAS T L AN S I N G , M I 4 8 8 2 3

RSVP or sponsorship inquiries to melissa@m3group.biz

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

JANUARY 2017

PRESENTED BY:

For individual or group health plans, Physicians Health Plan has coverage that really works for you This fall, hundreds of thousands of Michiganders who do not have healthcare coverage are facing the daunting task of finding it through the Health Insurance Marketplace. Likewise, many small business owners are searching to provide coverage for their employees that won’t hurt the bottom line. Thankfully, there’s a solution that includes award-winning customer service and supports our mid-Michigan region: It’s called Physicians Health Plan (PHP). PHP is a locally owned and managed health plan that understands the importance of affordable healthcare and is now offering cost-effective group and individual healthcare plans, as well as a host of new services, to even more people in the region. “I’m actually very excited,” says Kevin Kaplan of PHP. “We’ve been working to improve the health of our community for more than 35 years. This year, we’re offering a new telehealth service and have expanded the availability of our Exclusive Network to cover more counties, making access to quality, affordable care easier for our members when and where they need it most.” PHP is offering a wide range of plan choices on the 2017 Exchange during open enrollment, which runs now through Jan. 31, 2017. Its expanded Exclusive Network covers Ingham, Clinton, Eaton, Ionia, Montcalm and Shiawassee counties. “There has been a lot of talk about large rate increases this year nationally, but that doesn’t mean you can’t find a plan that provides quality coverage and competitive rates,” noted Kaplan. According to Kaplan, PHP has also been successful in partnering with small businesses to provide quality, comprehensive coverage for their employees, including health and wellness programs, at a rate they can afford. Teaming up with PHP offers employees many advantages, including:

» Lower premiums » Exclusive network including local hospitals and physicians » Award-winning customer service » Extensive four-tier pharmacy coverage » Preferred partnership with Delta Dental » Additional benefits of being a subsidiary of Sparrow Health System

“We know that to an employer, and especially a small business, their workforce is very important - often like family. Together, we can find a solution that meets their needs and our awardwinning customer service means they can focus on their business while we handle ours.”

People need choice. Everyone’s talking about convenience of care. PHP works hard to keep members healthy through a range of treatment options, including FastCare, an affordable and fast alternative to an emergency room or urgent care clinic for Patients 18 months or older who need treatment for basic medical services or nonlife-threatening conditions. When your Physician isn’t available or you need emergency care like on-site X-rays, stitches or treatment for broken bones, there are Network Urgent Cares throughout mid-Michigan. And, of course, you can always choose from an expanded network of hospitals, ensuring that the healthcare you need is always within reach. New to the lineup is PHP’s innovative new telehealth service, or 24/7/365 access to a doctor through your phone, mobile app or online. For the same cost as an office visit, you can see a board-certified Physician from anywhere – home, work, or while you’re traveling.

Health plans designed for you. Whether you’re a small business in the market to cover your workforce, or an individual searching for health insurance, there is sure to be a plan designed with you, your needs, and your budget in mind. PHP is working hard to keep mid-Michigan healthy. Individuals looking for coverage can visit ChoosePHPmi.com. For small business coverage, contact your insurance agent, call PHP Sales at 517.364.8484 or visit PHPMichigan.com.

A health plan that works for you. 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.

Oct. ‘16

Sept. ‘16

Aug. ‘16

July ‘16

Oct. '15

Sales

49.8

56.9

50.8

45.7

54.1

Inventory

44.7

66.5

57.2

55.6

Prices

50.6

52.6

49.5

50.6

Marketing/Promotion

51.5

50.1

59.9

Hiring Plans

47.6

50.7

Oct. ‘16

Sept. ‘16

Aug. ‘16

July ‘16

Oct. '15

Civilian Labor Force (1)

(P)248.1

245.5

240.6

241.7

244.3

54.3

Employment (1)

(P)239.1

237.4

231.5

231

236.5

55.3

64.1

Unemployment (1)

(P)9.0

8.2

9.1

10.7

7.9

53.4

Unemployment Rate (2)

(P)3.6

3.3

3.8

4.4

3.2

Values above 50 generally indicate an increase in activity

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.

Oct. ‘16

Sept. ‘16

Aug. ‘16

(P)236.0

232.7

12-month % change

(P)1.8

Mining, Logging & Construction (3)

(P)7.7

Total Nonfarm (3)

July ‘16

Oct. '15

224.8

224.7

231.8

2.7

2.2

7.7

7.8

7.7

7.2

12-month % change

(P)6.9

6.9

5.4

4.1

Manufacturing (3)

(P)21.0

20.9

20.2

12-month % change

(P)4.0

3.5

8.2

6.9

Trade, Transportation & Utilities (3)

(P)36.1

35.5

35.6

35.2

35.4

12-month % change

(P)2.0

0.3

3.2

2.3

2.6

Information (3)

(P)3.0

3.1

12-month % change

(P)0.0

3.3

Financial Activities (3)

(P)15.9

15.9

16.1

15.6

12-month % change

(P)1.9

1.9

Professional & Business Services (3)

(P)22.5

22.6

22.8

22.4

22.7

12-month % change

(P)-0.9

0.9

3.6

3.2

Education & Health Services (3)

(P)31.7

31.4

30.9

30.8

30.7

12-month % change

(p)3.3

3.6

Leisure & Hospitality (3)

(P)19.8

19.7

19.2

20.1

19.8

12-month % change

(P)0.0

1.5

-1.5

4.1

4.2

Other Services (3)

(P)10.2

10.1

10.2

12-month % change

(P)0.0

Government

(P)68.1

65.9

58.2

12-month % change

(P)1.6

3.6

1.9

1.7

Oct. ‘16

Sept. ‘16

Aug. ‘16

Nov . '15

Spartan Motors

8.95

8.55

9.58

9.86

3.63

General Motors

34.53

31.60

31.77

31.92

36.20

Emergent BioSolutions

26.76

26.72

31.53

26.65

35.58

Neogen

63.28

52.69

55.94

59.06

Gannett (Lansing State Journal)

9.54

7.77

11.64

11.93

17.08

Gray Broadcasting (WILX)

10.10

8.90

10.36

11.23

16.75

Media General (WLNS)

18.37

16.85

18.43

17.67

15.53

Bank of America

21.12

16.50

15.65

16.14

17.43

UPS

115.92

107.76

109.36

109.22

103.01

Home Depot

129.40

122.01

128.68

134.12

133.88

Kroger*

32.30

30.98

29.68

31.99

37.66

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 Nov. ‘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

Nov. ‘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

4,036

Oct. ‘16 4,029

Sept. ‘16

Nov. '15

YOY Change

4,029

4,040

-0.10%

Eaton

5,105

5,106

5,097

5,105

0.00%

Ingham

11,488

11,487

11,483

11,359

1.14%

TOTAL

20,629

20,622

20,609

20,504

0.61%

Sept. ‘16

Nov. '15

YOY Change

RESIDENTIAL Nov. ‘16

Oct. ‘16

Clinton

29,480

29,456

29,419

29,066

1.42%

Eaton

41,560

41,518

41,503

41,306

0.61%

Ingham

98,263

98,035

97,758

97,251

1.04%

TOTAL

169,303

169,009

168,680

167,623

1.00%

GRAND TOTAL

189,932

189,631

189,289

188,127

0.96%

JANUARY 2017

LANSING AT A GLANCE

REGIONAL SINGLE FAMILY HOMES SALES

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

Oct. ‘16

1 month change

Oct. ‘15

1 year change

Ingham County, MI Number of Sales Average Purchase Price

201

-61.27%

446

-54.93%

131,707

15.96%

110,230

19.48%

Minimum Purchase Price

4,866

873.2%

5,725

-15.0%

Maximum Purchase Price

2,100,000

294.37%

998,900

110.23%

4.0%

9.86%

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 Average Purchase Price

-16.98%

41.94%

156,636

-6.04%

144,769

8.2%

Minimum Purchase Price

2,500

-3.85%

26,950

-90.72%

Maximum Purchase Price

412,500

-13.16%

532,965

-22.6%

4.0%

9.86%

Average Purchase Price per Sq. Foot

In December: There were744 units for sale in the county as of Dec. 13, 2016. Single-family homes have a mean list price of $162,846. The current mean list price for a condo in Clinton County is $244,967.

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 December: There were 1,071 units for sale in the county as of Dec. 13, 2016. Single-family homes have a mean list price of $166,798. The current mean list price for a condo in Eaton County is $121,315.

SPONSORED

EVERSTREAM FIBER TAKES LANSING BY STORM BY BRETT LINDSEY

2016 was a banner year for Everstream and we want to say thank you. Thank you for welcoming us, Lansing. Everstream is your local fiber network service provider; bringing fiber-based Ethernet, internet and data center solutions to greater Lansing and beyond. We focus on delivering best-in-class network solutions while providing an unrivaled commitment to customer service. In 2016, we joined the communities of Lansing, Grand Rapids, Kalamazoo, Detroit and Ann Arbor. Everstream significantly expanded our fiber footprint. We now total more than 9,500 route miles in Michigan, Ohio, Indiana, Illinois and Wisconsin. With comprehensive data center connectivity at 100 gigabit speeds, we provide the fastest network in our service areas.

Everstream’s network allows businesses to operate a converged IP network, capable of delivering robust voice, video and data services at speeds up to 100 gbps. We service more than 1,000 on-net buildings and connect enterprise businesses to 27 data centers. Notably, the Lansing Network Operations Center created a second NOC for the company, improving our ability to provide 24/7 customer support—a key tenet of our organization. As we move into 2017, Everstream will open our Michigan regional office in downtown Lansing’s historic Knapp’s Centre, further demonstrating our commitment to greater Lansing by investing in the region’s economic vitality and growing jobs. To date, we’ve added eight associates to our Michigan team, growing the technical, operations and sales groups as necessary to support current and new customers.

We expect to be settled into Knapp’s Centre by April. This new 6,000 sq. ft. office space is an open floor plan - an intentional configuration to facilitate communication among team members which is closely tied to Everstream’s culture. We’re a transparent company, regularly sharing an immense amount of information to make certain that everyone is up to speed with what’s going on. Lansing, thank you again for your hospitality. Throughout 2016, Everstream was given the opportunity to invest in our people, customers and network. We look forward to this trend continuing — and you should, too. Brett Lindsey, president and chief executive officer, Everstream, brings more than 25 years of experience in successful operations management and business development efforts to his position. Brett has served in executive management positions with OneCommunity, Vox Mobile, City Signal Communications and Qwest Communications. L

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ECONOMY

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

Last month’s column introduced the individual consumer and showed that (s)he buys a bundle of goods and services, subject to a budget constraint, to maximize his/her satisfaction. This column explains the position of the firm. The firm attempts to maximize its profit. It produces and sells a product for which it receives revenue. On the other side of its ledger are production costs; these consist of four productive factors: FACTOR OF PRODUCTION • Workers in various skills, otherwise called the services of labor, for which the firm pays wages and salaries. • The services of land and natural resources which it must rent and for which it pays rent. If it owns the land, we can think of it as paying rent to itself. • The services of machines, or capital, which it acquires by borrowing money, for which it pays interest. • The business services which the owner provides, known as enterprise. These include coordinating the activity of the land, labor and capital, introducing inventions into the production process and the all-important assumption of risk; the business may lose as well as earn money if production costs exceed revenue. The four types of costs (including enterprise) known as factors of production, are listed in the following table, along with their form of compensation. FACTORS OF PRODUCTION PRODUCTION FACTOR Labor in various skills Land and natural resources Capital to buy machinery Enterprise FORM OF COMPENSATION

OUTPUT EQUALS INCOME The four types of factor compensation add up to income of people in society. An important insight can now be gained: output and income are equal. They are two sides of the same coin. To show this, we use an example of a desk manufacturer. His costs are made up of wages, rent, interest and profit, and these are incomes of people who rendered the services. In addition, he buys lumber from other firms, which is a product intermediate between the raw material (forest wood) and the final good (desk). In turn, the producer of lumber also pays the four factors of production, which make up income, and buys raw materials (forest wood) purchased from a wood-chopping firm. But the output of raw wood can also be decomposed to the four factors compensations or forms of income. So, if we add up all the incomes generated in the production process it adds up to the value of the product or output. Hence, income equals output. Put another way, the price of output can be decomposed into incomes of the four factors. STAGES OF PRODUCTION Another feature to be noted in the above example is that it was made up of: • • • •

Raw material (forest wood) Intermediate production (lumber) Final good (desk) To this one can add wholesale and retail distribution which add to the price of the product and income of recipients’ same amounts

Complex manufacturing products, such as an automobile, often require hundreds of intermediate stages as parts are made and assembled into the final assembly plant. But the principle of equality between income and output remains inviolate. WE CAN NOW ADDRESS THE MAIN QUESTIONS OF MICROECONOMICS

Wages and salaries

What goods and services are to be produced and in what quantities?

Rent Interest Profit The firm’s profit is what the firm attempts to maximize. 32

In our market system, this is determined by the consumer as (s)he selects the bundle of goods and services that maximizes their satisfaction, and through these purchases sends a signal

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

JANUARY 2017

to producers about what to produce. In a regimented communist state this is decided by a planning authority. Often goods and services are excessively produced and are not sold, or are produced in insufficient quantities and shortages develop. In a capitalist system, the amounts are determined by consumer demand. How is each good and service produced? This boils down to the factor combination in the production process, such as: much labor and little machinery (labor intensive process) or much machinery and little labor (capital intensive process). The producers, taking note of the prices of labor and capital prevailing in the market, combines them in such a way as to minimize his cost. The sectoral composition of the economy is largely determined by the consumer allocation of his income and the producer organization of the production process. Today in the U.S., under five percent of the workforce is employed in agriculture; about 20 percent in manufacturing and nearly 70 percent in services. How is the income (which equals output) to be distributed? The distribution among productive factors depends on the market and the price set for each factor. But social interest sometimes attaches to the equality or inequality of income distribution and society might wish to modify the distribution generated by the market, usually to make it more equal. This is done by government through a system of taxes and subsidies: tax the rich more heavily than the poor and subsidize the poor. At the extreme, the distribution can be made very equal. But as a social objective, it must be noted that a very equal distribution can interfere with incentives to work and excel which often come from prospective pecuniary benefits. So, the view of “fair distribution” must be tempered with retention of incentives. 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

2017 Sparrow Gala

Enchanted Evening Join us for an evening of food, fun, dancing and casino-style gaming to benefit Obstetric Services at Sparrow. Tickets are available for purchase now! For details and information, please visit our website, Sparrow.org/Gala or call 517.364.3620

SATURDAY, FEB. 25, 2017 UNIVERSITY CLUB OF MSU 3435 FOREST ROAD, LANSING

Presented by

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REAL ESTATE

TRUMP PRESIDENCY Commercial real estate translation BY VAN W. MARTIN

In November, the Republican Party gained control of the White House and retained majorities in the House of Representatives and the Senate. President-elect Donald Trump assumes office on Jan. 20, and through his campaign platform and post-election statements we have a basis to anticipate his policy priorities and their potential impact on the economy and commercial real estate.

• Expansionary fiscal policy may be inflationary with respect to wages. Tax cuts could benefit renters with higher incomes and could prop up fundamentals of higherend product. • Aggressive immigration policy could decrease population growth and household formation. These demand-side concerns are most likely to affect the Class B/C properties, which have been performing very well.

POTENTIAL CRE IMPLICATIONS Office • Reduced regulation—and potentially greater economic growth due to tax cuts and higher spending—would benefit several large office-occupying industries. • Increased defense spending would benefit markets with heavy concentrations of defense-industry companies. • Significant changes to Dodd-Frank could boost office demand from the banking sector in the long term. • Unknown but anticipated changes to Obamacare could have short-term negative impact on medical office demand. • More restrictive immigration policy could constrain the available skilled-worker pool, particularly impacting the tech industry and its demand for office space. Industrial • Import-driven industrial markets and assets need to be watched given the likely more protectionist stance of Trump’s trade policy. A protectionist trade stance could negatively impact imports, which are a better indicator of industrial space demand than exports. • Given the historically tight occupancy conditions in industrial markets, a modest softening would have only limited impact. A short-term slowdown in demand may give the supply side room to grow and, over the medium term, give users more options. • There is potential for a strong positive impact on direct-to-consumer (last-mile) industrial dynamics, as stronger overall economic growth would boost consumer demand.

Retail • We foresee a net benefit as faster economic growth from fiscal stimulus could improve consumer confidence and spending, and a stronger dollar should further increase buying power. • There could be a neutral-to-negative impact on the luxury segment with increased domestic demand counterbalanced by decreased foreign demand due to a stronger dollar. • In the near term, real wage growth will drive consumption and retail sales. Tax cuts, if enacted, could aid this growth. • More restrictive immigration policy may affect labor supply and costs for retailers and restaurants. Multifamily • Less regulation on financial institutions could make home mortgage lending easier, benefitting the single-family home industry. • On the other hand, higher interest rates associated with more expansionary fiscal policy and inflation make single-family home affordability weaker. • We will continue seeing strong deliveries with units already under construction, but this should taper considerably if economic growth moderates through 2018-2019.

Interest Rates • Interest rates spiked in the aftermath of the 2016 U.S. presidential election. Despite some of the immediate market reactions, it is premature to conclude that there is or will be a decrease in capital values in commercial real estate. • Commercial real estate values will be affected over the next few months by many significant factors beyond just interest rates, especially the strength of funds flow from international and domestic sources. • Despite recent indications that China may limit the export of capital to large foreign real estate transactions, equity capital flows from international and domestic sources still remains strong by any historic measure. Furthermore, much of the post-election expansion in bond yields is related to investor funds flow/sentiment shifts from bonds to equities, as well as into sectors expected to benefit from the new administration's policies, including infrastructure and defense. However, investor sentiment could change (and decrease bond yields) should we see an uptick in market volatility or other geopolitical shock. • In short, there are too many variables at play over the next few months to reach definitive conclusions on value today. Van W. Martin, CCIM, SIOR, CRE is Chairman and Chief Executive Officer at CBRE|Martin

Sources: U.S. Marketflash | Implications of the 2016 Presidential Election for CRE, November 17, 2016 © CBRE, Inc. 2016. All rights reserved. U.S. MarketFlash | Implications of the Recent Spike in Interest Rates for Commercial Real Estate, November 28, 2016 © CBRE, Inc. 2016. All rights reserved. 34

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#GLBMIMO IN YOUR OPINION WHAT WAS THE BIGGEST LOCAL NEWS STORY OF 2016?

Ami Iceman @icemanaims @lansingbizmo #GLBMIMO I think the BRT project has had people talking all year long! Can't wait to see what 2017 brings.

Austin Ashley @artsyaustin One of the biggest #lovelansing news stories of 2016 is the controversy around the #ScottSunkenGardens and @ BWLComm. @lansingbizmo #glbmimo

Skylar Kohagen @xzub Late in 2016: #glbmimo Getting rid of lead service pipes in #lovelansing is a pretty great achievement and we're the 2nd city to do it!

BUSINESS CALENDAR

JANUARY 2017 JANUARY 4 INSPIRING AND RETAINING EMPLOYEES, LANSING Research and common sense tells us that people are more motivated and perform better when they feel listened to and included. This 60-minute webinar will explain how to give meaningful employee reviews, better handle employee issues and effectively lead at the next level with a more productive team. Cost of attendance is $75 for members and $95 for non-members. Register and find more information at michamber.com. JANUARY 10 STARTING A BUSINESS IN LANSING, LANSING Lansing Community College is offering an exciting workshop designed for individuals who are considering self-employment, or who may be at the beginning stages of starting a business.

This introductory session helps aspiring entrepreneurs assess their abilities to lead and manage a company, as well as evaluate market and sales potential for their products/services. Learn about startup costs, financing options, business planning and the necessary steps to getting started. Visit eventful.com to register for this event, or call (517) 483-1921. JANUARY 10 FINDING THE MONEY: CAPITAL SOURCES FOR SMALL BUSINESSES, EAST LANSING We all know it takes money to make money, so where can your business find the capital to launch or grow? Michigan State University Federal Credit Union will provide an overview of the many capital sources for small businesses including traditional commercial loans, government loan programs and grants, as well as many lesser known specialized sources of funding. Register for this presentation by visiting msufcu.org.

JANUARY 12 VERBAL DE-ESCALATION OF ANGER, LANSING When working with coworkers and customers, you can encounter someone who is extremely angry or agitated. Since it’s usually impossible to reason with an enraged person, it is crucial to reduce the level of distress so that discussion is possible. This webinar will explain communication strategies that will help you verbally de-escalate intense situations and prevent them from getting worse. This webinar is $75 for members and $95 for nonmembers. Stop by michamber.com to register for this informative webinar. JANUARY 18 BECOME A TALENTED TRAINER: GUIDE YOUR EMPLOYEES, TEMPS AND CONTRACTORS TO SUCCESS, LANSING Ongoing, results-driven employee training programs are critical for creating a motivated,

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skilled and effective workforce. This seminar will introduce you to the proper way to: introduce new employees, retain existing talent, reduce turnover, help coach and motivate employees and provides relevant on-the-job training. This seminar is from 9 a.m. to 3:30 p.m. at the Michigan Chamber of Commerce. To find more information or to register for this seminar, visit michamber.com. JANUARY 20 WHO LICENSES YOUR FOOD BUSINESS, LANSING Licensing of ready to eat and packaged food products can be tricky! Amy Thomas from the Ingham County Health Department and Pam Weaver from the Michigan Department of Agriculture and Rural Development will explain what needs to be done to become properly licensed. Learn how your product is categorized, who to get licensing from and what steps you’ll need to take. This seminar is from 1 p.m. to 3 p.m. at the Allen Market Place. Buy your tickets and find more information at eventbrite.com.

JANUARY 20 GLACC ANNUAL BREAKFAST AND AWARDS, LANSING Join GLACC friends, stakeholders and members to celebrate their 13 years as part of the national Clean Cities network. The GLACC community has reduced petroleum consumption in the region by more than eight million gallons and reduced greenhouse gases by nearly 50,000 tons! Attendees will network with peers and engage on opportunities to plan for or add clean fleet practices to their operations. Cost is $15 per person and includes breakfast. Register today by visiting eventbrite.com. JANUARY 24 HIRING EX-OFFENDERS, LANSING There are two questions that are legal for Michigan employers to ask applicants: “Have you ever been convicted of a crime?” and “Are there currently any felony charges pending against you?” If an applicant answers “yes” to either question, you cannot automatically disqualify the applicant from further consideration for the position. Though

many employers still automatically disqualify applicants with criminal histories, you are creating significant risk for your organization and may be missing out on an excellent potential employee. Cost to attend this webinar is $75 for members and $95 for non-members. Find more information and registration details by visiting michamber.com. JANUARY 25 WORKPLACE SAFETY STICKY SITUATIONS: WHAT WOULD YOU DO?, LANSING Work through real workplace safety situations in a small group setting with this interactive workshop. Will your solution be compliant with applicable state and federal laws as well as your own workplace policies? This workshop will help your team develop sound approaches, suitable responses and provide direction on what policies and procedures you should have in place to help you manage these situations when they do arise. This workshop is $270 for members and $295 for non-members. Visit michamber.com to register and find more information.

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LEAP CELEBRATES GROWTH OF ENTREPRENEURSHIP ACROSS LANSING REGION Lansing Economic Area Partnership (LEAP) awarded a total of $15,000 in RING (Regional Innovation Network Group) grants to five organizations that support local entrepreneurship across Clinton, Eaton and Ingham counties at “Hatched,” the Hatching finale, on Nov. 30 at the University Club of MSU in Lansing. “We at LEAP believe that in order to support local entrepreneurs, we have to have a diverse range of resources that can assist with the multitude of business ideas that our community generates,” said Tony Willis, director of New Economy at LEAP. “The RING grants are a good way to support some of our great organizations that then assist local innovators and entrepreneurs.” LEAP has awarded RING grants annually over the past three years to help support local entrepreneurial resources. The RING Grants are completely funded by LEAP and its membership.

The following organizations received RING grant funding to support their ongoing commitment to being a resource for entrepreneurs in the Lansing region. Grantees are planning to use the funding on a wide range of items, services and programs including a new website, virtual reality equipment and software, launching a new startup scholarship program and much more.

“We are excited to continue to develop and promote the Technology Innovation Center and are using these funds to expand the programming offered to TIC tenants. The support and promotion of entrepreneurship and business development is exceptional in the Lansing market, and the RING grant funding is a testament to that effort,” said Jeff Smith, managing director of the TIC.

• Technology Innovation Center (TIC), East Lansing - $5,000 • Grand Ledge Fledge, Grand Ledge - $2,000 • Allen Neighborhood Center, Lansing - $3,000 • The Lansing Runway, Lansing - $3,000 • Lansing Maker’s Network, Lansing - $2,000

DEWPOINT WELCOMES NEW EMPLOYEES TO LANSING

“The Fledge is honored to be given this grant. We are very grateful for the RING’s support of our efforts to create an entrepreneurial culture in mid-Michigan. We will be using the funds to expand our virtual reality programming efforts, adding equipment to our music studio and adding laser cutting to our CNC capabilities,” said Jerry Norris, co-founder of the Grand Ledge Fledge.

Dewpoint, a leading provider of technology consulting and implementation solutions, is pleased to welcome several new employees to Lansing: • Gail J Jacqmain – Program Manager • Vahid Azamtarrahian – Application Developer • David Al-Ashari – Solutions Architect • Nicholas Wyman – Software Engineer • David D Baer – Senior Project Manager • Connie Denbrock – Project Coordinator • Carol Wolfinger – Project Manager • Abdul Samaha – Quality Assurance

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• Corey Sexton – IT Support • Donald J Cornish – Senior Security Architect • Rebecca Bower – Project Manager • Debi Nelson – Senior Project Manager

“We have been working hard to put together a campus-wide ecosystem for entrepreneurs that embraces all of the creative talents across the university,” MSU President Lou Anna K. Simon said. “The creation of these programs addresses a critical capital gap for our own startup companies. Through Red Cedar Ventures, we can make sure the groundbreaking ideas created by Spartans reach those who need them most.”

In the last four years, MSUF has deployed over $2M in pre-seed funding to more than twenty companies. Red Cedar Ventures will continue this kind of pre-seed investment. Additionally, the Red Cedar Opportunity Fund allocates $5M to participate in select, follow-on investment rounds that are led by professional venture firms. “Many of our Michigan State University startups are working on breakthrough ideas and

CASE CREDIT UNION APPOINTS NEW MANAGERS AND VICE PRESIDENT OF MARKETING CASE Credit Union is pleased to announce three new additions to the CASE team: Ed Nicolas has been hired as the Credit Union’s new Vice President of Marketing. He joins the CASE Credit Union Executive team having recently left his position as Brand Marketing Manager at Carhartt. With over 25 years of marketing experience, Nicolas brings an extensive range of knowledge and experience to CASE Credit Union. CASE’s new Business Services Manager, Robert Whitaker, brings 25 years of experience in the financial services sector to the Credit Union. He joins CASE Credit Union’s management team having recently left his position as Retail Bank Manager, AVP at First Merit Bank of Lansing. Bill McLeod has joined CASE Credit Union as their newest Mortgage Manager. Beginning his journey in the mortgage industry 19 years ago, McLeod has developed a wide range of skills and expertise. Prior to joining CASE Credit Union’s management team, McLeod held the Mortgage Manager Position at MSU Federal Credit Union.

MICHIGAN STATE UNIVERSITY FOUNDATION LAUNCHES $5M VENTURE FUND, RED CEDAR VENTURES LLC The Michigan State University Foundation (MSUF) announces the formation of its new, $5M venture investing subsidiary, Red Cedar Ventures. Its newest program features both a pre-seed fund and an opportunity fund focused on helping MSU-based startups and technologies overcome critical funding gaps, accelerate growth and provide follow-on, growth-stage capital.

CORPORATE WELLNESS PROGRAM

YMCA OF METROPOLITAN LANSING

Encouraging a renewed commitment to healthy living and total wellness for your employees, your organization can impact the costs related to obesity, inactivity, and other health-related conditions. The YMCA will partner with you and your employees by offering a comprehensive corporate health and wellness program which can lead to a healthier, happier workforce.

OUR COMMITMENT We assist your employees and their families in managing their total health and well-being through: • • • • •

Week free trial • • • company newsletters/emails • Access to 5 branches including; indoor pools,• tracks, gyms, rockwall, and tot watch

The Y will contribute $5 per membership

One hour personal training appointment On site programming Lunch and Learns Fitness Challenges SPARK program and family activities for company gatherings

YOUR COMMITMENT Contribute toward a portion of your employees monthly membership rates: • • •

Designate representative to act as the communication liaison. Contribute a minimum of $10 towards your employees monthly membership rates. Utilize the YMCA marketing materials for promotion and company newsletters/email.

ARE YOU READY TO MAKE A COMMITMENT TO A HEALTHIER LIFE FOR YOUR EMPLOYEES?

FOR MORE INFORMATION CONTACT:

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solutions that could greatly benefit the public,” said Randolph Cowen, chair of the MSUF Board of Directors, “However, because earlystage private investment capital is not broadly available in East Lansing, these ideas struggle to get translated into commercial success.” Cowen went on to say that Red Cedar Ventures will help unlock the potential of these young companies, getting their products into the hands of businesses and consumers.

Both Red Cedar Ventures Pre-Seed and Opportunity Funds will be overseen by a Board of Directors composed of members from MSUF’s own Board of Directors. MSUF’s executive management team will oversee the day-to-day fund operations. An advisory board will be established and will draw on the expertise of leading venture capitalists from across the nation, as well as student venture analysts from MSU’s Broad College of Business.

“The Greater Lansing area is fast becoming an attractive place for inventors and entrepreneurs to start and grow their businesses,” said David Washburn, executive director of the MSUF. “Red Cedar Ventures signals the Foundation’s ongoing commitment to the health and growth of our area’s entrepreneurial ecosystem.”

CBRE|MARTIN BRINGS THREE NEW TENANTS TO STATE NEWS BUILDING IN EAST LANSING CBRE|Martin is pleased to announce the State News Building located in downtown East Lansing on the corner of East Grand River Avenue and Division Street has welcomed three new tenants including Panda Express, Blaze Pizza and Huntington National Bank. The building is now 100 percent occupied. Panda Express has leased the 439 E. Grand River Ave. corner suite. Replacement of the brick façade along Division Street with a glass storefront has made the space more inviting and airy. “The bold logo with iron block lettering combined with the new windows really sets off the corner space,” said Marty Sturgeon, director of the State News. Panda Express opened in early November. Blaze Pizza will occupy the center suite at 437 E. Grand River Ave.

Growing Together.

“Blaze Pizza has proven to be very popular literally everywhere they open, just as it has at the Frandor Shopping Center location, which opened last summer. They will be a great addition to downtown East Lansing,” said Shawn O’Brien, CCIM, senior vice president of Brokerage Services at CBRE|Martin. Blaze is looking to open its East Lansing location in March 2017.

At Mercantile Bank we are committed to strengthening business in the Lansing area. Our Commercial Team knows what it takes to grow a business here because they work and live in our community too. From business loans to payroll services, we can help you navigate the challenges you face today and tomorrow. Working with you to promote economic prosperity in our region. Moving business forward, it's just another way Mercantile is here to get you there.

Huntington National Bank will open at 431 E. Grand River Ave. Huntington is a full-service banking provider primarily operating out of an eight-state banking franchise. This will be their first East Lansing branch outside of Meijer. They will be opening in early January 2017. The State News has relocated to the second-floor office space. Jason Brunette of Martin Property Development assisted in the feasibility planning, budgeting and project management for the relocation to the second floor and the demising of the first floor space for the newly leased suites.

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CBRE|Martin Senior Vice President and Office Advisor, Eric Rosekrans, was involved in helping the State News develop the plan to create a more vibrant and financially successful asset and brought the CBRE teams together to help implement the plan. He also helped move the second-floor tenants

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so that the State News could relocate to that level. O’Brien was involved in marketing the building and was ultimately responsible for bringing all three transactions together for the landlord, while CBRE|Martin Senior Associate and Retail Advisor, Amy Richter-Perkins represented Huntington National Bank. “CBRE|Martin did a wonderful job in bringing three new tenants to get the State News Building 100 percent leased. We feel that each

of these tenants will be a welcome addition to the downtown East Lansing community,” said Sturgeon.

Capital Region International Airport (LAN), where it is now authorized to pick up and drop off air travelers.

UBER BEGINS SERVICE AT CAPITAL REGION INTERNATIONAL AIRPORT

San Francisco-based Uber joins fellow ridebooking service Lyft and local taxi services in providing ground transportation to and from the airport.

Pioneering ride-booking service, Uber, has expanded its greater Lansing operations to

“Adding Uber to our list of ground transportation service providers further enhances the convenience of using Capital Region International Airport,” said Nicole NollWilliams, the airport’s director of marketing and passenger development.

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Uber, which was founded in 2009 and entered the greater Lansing market in 2014, serves most of Ingham County and portions of Eaton, Clinton and Shiawassee counties. Uber riders use a smartphone app to request a ride from drivers who have a car. When a nearby driver accepts the request, the app displays an estimated time of arrival and then notifies users when their ride is about to arrive. The app also provides info about the driver, including first name, vehicle type and license plate number. Fares are automatically calculated based on distance and are charged to the payment method users have linked to their Uber account. Information about Uber and its Lansing-area service is available at uber.com/cities/lansing/.

AUTO-OWNERS INSURANCE AFFILIATES WITH PREMIER NEW ENGLAND INSURER, CONCORD GENERAL MUTUAL Auto-Owners Insurance is pleased to announce its proposed affiliation with the Concord General Mutual Insurance group of companies, a premier insurance provider based in New England.

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Both Auto-Owners and Concord have a longstanding tradition of outstanding customer service and financial integrity, with Auto-Owners recently celebrating its 100 year anniversary, and Concord closing in on 90 years. “We are excited about combining the efforts of these two groups of companies to expand the geographic reach into New England with additional products and services. Adding Concord and its affiliates to the Auto-Owners family of companies will present tremendous synergies and opportunities for growth on a superior financial platform, providing increased

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value to agents, customers and our companies,” said Jeff Harrold, chairman and CEO. While Auto-Owners and Concord are already leaders in their respective geographic regions, their combined resources will enable them to operate more efficiently and effectively. Concord is an A.M. Best A- (Excellent) rated property and casualty insurer that operates exclusively through independent agents in New

Hampshire, Vermont, Maine and Massachusetts. While Concord currently specializes in personal lines insurance, it will be able to expand its commercial product offerings as a result of the affiliation, strengthening agency relationships and adding greater overall value as a result. Auto-Owners Insurance was founded in 1916 and offers multiple lines of insurance, including life insurance and Excess & Surplus lines. Almost 6,300 independent agencies represent

Auto-Owners in 26 states. Auto-Owners has been a Fortune 500 company for 14 years and has received A.M. Best’s highest rating, currently A++ (Superior), for 45 consecutive years. They have received numerous awards from national organizations for customer service and quality, and were recently certified as a great workplace by Great Place to Work®. The affiliation is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close in the second quarter of 2017.

YMCA OF METROPOLITAN LANSING WELCOMES NEW EXECUTIVE DIRECTOR AT PARKWOOD YMCA The YMCA of Metropolitan Lansing (YMCA) is pleased to announce that after an extensive search, the nonprofit organization has hired Kimberly Vaughn, as the new executive director at the Parkwood YMCA in East Lansing.

LEGAL STRATEGIES FOR EVERY STAGE OF YOUR BUSINESS’ LIFE CYCLE Businesses have a life cycle. You will need specialized legal counsel as you move along the curve. Foster Swift attorneys help owners and key executives nurture their business every step of the way. • • • • •

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Vaughn is a YMCA veteran having served more than 11 years professionally with the YMCA and comes to the YMCA of Metropolitan Lansing from the Winchester YMCA in Kentucky where she served as the chief executive officer. Prior to her time as CEO, she served in leadership capacities as associate executive director and operations director with the YMCA of Central Kentucky. Vaughn began her career as the director of Recreation for Tellico Village in Loudon, Tenn. “We are excited to have Kimberly on our leadership team for the YMCA of Metropolitan Lansing and look forward to the positive impact she will have at Parkwood working directly with the staff team, Board of Management, members, program participants, families, as well as with the communities that we serve,” said Jeff Scheibel, president and CEO of the YMCA of Metropolitan Lansing. “Her vision of growing and expanding the reach of our YMCA is exciting and impressive!”

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