GLBM July 2017 by M3 Group Publications

JULY 2017

AMERICAN

HEALTH CARE ACT Eleni Nicolaou, RN, continues to provide care as changes are made to health care nationwide IN THIS ISSUE • HEALTH CARE’S BEST PREVENTATIVE TECH MAY BE RIGHT IN FRONT OF US • OPIOIDS GET RENEWED INTEREST FROM THE STATE OF MICHIGAN • MICHIGAN’S MEDICAID KEEPS THE PUBLIC AND THE ECONOMY HEALTHY

Locally family-owned since 1970

OIL CHANGE & TIRE CENTER AVAILABLE SERVICES Oil Change & Tire Rotation Pit Stop Battery/Charging Check 4 Wheel Balance Wheel Alignment Free Alignment Inspection A/C Check Up Transmission/Transaxel Service

Fuel Injection Service Radiator Flush Replace Air Filters Battery Replacement Front Brake Pads Tire Rotation Wiper Blade Replacement Differential Service

Open Monday through Saturday 7am to 6pm - no appointments necessary.

866.726.1242 | www.shaheenlansing.com | 632 American Rd. Lansing, MI

WorkIng to ProvIde qualIty electrIc PoWer raIn or shIne. • Preparing for extreme weather by working days and nights to boost reliability and improve restoration time • Inspecting and repairing over 8,000 miles of power lines based on a best practice, six-year inspection cycle • Maintaining, securing and upgrading electric substations to protect people and wildlife, and create a safer environment around electricity

Consumers Energy for Business Let’s do business. Together. Call us for more information at 800-805-0490, or visit ConsumersEnergy.com/businessmatters

#CE4BIZ

JULY 2017

ON THE COVER Opioids get renewed interest from the State of Michigan............................................................... 6 Health care’s best preventative tech may be right in front of us.....................................................10 American Health Care Act update..............................................20 Michigan’s Medicaid keeps the public and the economy healthy...................................................30

NEWS State grant expected to expand business in Shiawassee County...................................................... 8 Forsberg brings millennial housing to REO Town........................................................................12

JULY 2017

20 FEATURE Commentary.................................................................................................................................................. 4 Center City District................................................................................................................................. 14 Lansing businesses can get assistance via economic development tools..................... 16

AMERICAN

Cover photography by Erika Hodges

Gender inequality in the workforce................................................................................................ 18 Visual Breakdown..................................................................................................................................... 24 Real Estate................................................................................................................................................... 26 Behind the Scenes.................................................................................................................................... 28 Economy........................................................................................................................................................ 32 Greater Lansing at a Glance................................................................................................................ 34 Business Calendar.................................................................................................................................... 36 Notable News............................................................................................................................................. 37

Greater Lansing Business Monthly | Volume 30, Issue 7

group

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

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

J U LY 2 0 1 7

Serving our

Community McLaren Greater Lansing is dedicated to providing both care and support for our community. As an active member of the community for more than 100 years, giving back is part of the culture the hospital has established and continues to cultivate. 0.3%

n Uncompensated Care - $36,167,061

3.4%

Uncompensated care from patients who do not request or qualify for assistance. (For the uninsured this refers to the portion of the bill that is unpaid. For patients with insurance this refers to gap between the amount the hospital receives for treatment and the actual cost of care.)

1.1%

0.6%

11.4%

n Health Professions Education - $4,952,174 Cost of McLaren Greater Lansingâ&#x20AC;&#x2122;s training programs which help educate and prepare future healthcare professionals, including physicians and nurses.

n Mental Health Endowment - $1,500,000

83.1%

In 2016 McLaren made a $1.5 million commitment to Michigan State Universityâ&#x20AC;&#x2122;s College of Nursing to establish their first endowed chair of nursing to help address the mental health needs of the community.

$43.5 Total in millions

n Charity Care - $490,409 Free or discounted care provided to individuals who are unable to pay for the services received.

n Community Partnership Support & Donations - $261,409 Donations (cash and in-kind) made by McLaren Greater Lansing to organizations holding charitable activities and events that benefit the community.

n Community Programs - $129,306 Amount contributed to fund or participate in events or programs that provide healthcare services or education to the community.

a n s i n g

s i n e s s

w s

c o m

Providing greater Lansing with greater care and greater service.

COMMENTARY

SEEKING TO BE

UNDERSTOOD Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Editor: Kelly Mazurkiewicz

I always like to assume that each person is giving his or her best effort – especially in customer service. But, either I’m getting older or the level of customer service is eroding. I’m pretty easy to get along with. I don’t feel like my expectations are too high or I’m asking for too much. But, lately I’ve been disappointed more than once. It isn’t one industry or another that is in trouble. Over the last few days, I’ve experienced instances that illustrate this point.

kelly@m3group.biz Media Manager: Jill Bailey Account Managers: Austin Ashley Megan Fleming Manny Garcia Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Angela Carlone Kerry Hidlay Nikki Nicolaou Photographer: Erika Hodges Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Calvin Jones — Government Relations Director, Lansing Board of Water & Light

1. At a local restaurant with a large group, we needed another table because our party expanded. A table opened up and we asked the server if we could take it. She said, “I’m going to have to say no to that because I need to make money tonight.” And, as you might have guessed, there was an attitude as well. 2. After boarding a flight to Florida, the captain came on and said there was a problem with the plane. After an hour on the tarmac, we finally vacated the aircraft and were told that a “relief” plane would arrive in a few hours. Now, that stinks, but I’m okay with not traveling in a defective plane. But, what I’m not okay with is receiving inaccurate information because the flight crew doesn’t want to deal with frustrated customers. After hours in the terminal, we were told that the “relief” flight never left its original destination. Late into the evening, it was cancelled with no solution for resuming travel at another time. 3. While at a doctor’s appointment with my son, the receptionist was less than helpful or sympathetic when my son didn’t have his license with him for a firsttime appointment. I had taken time off of work to take him. My son, who is 19, but doesn’t drive, had his health insurance card with him; I was also willing to be the responsibly party to cover any additional expenses not covered by insurance that day. The receptionist however, still would not let my son be seen. Now, I’m sure there is a perfectly reasonable explanation associated with HIPPA, etc. But, when she could see I was visibly frustrated and confused, all she would say was, “it’s policy.” I know everyone has a bad day and, there are moments when customers can be quite annoying. However, customer service is about figuring out a solution to a problem. As employers or managers, it’s important to help our service providers understand that if you cannot solve the problem, an explanation and some empathy are necessary.

Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association

Give your associates the tools needed to understand that customers walk away with a perception of your organization — good or bad. People want to be understood. They want to find a solution and when one isn’t available, they seek someone who will care. Don’t disappoint them.

Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore

Have a dynamic summer,

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

Tiffany Dowling | Publisher

Diontrae Hayes — Supervisor Charter Township of Lansing

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

J U LY 2 0 1 7

Welcome Everywhere You Go Whether your business takes you statewide, nationwide, or worldwide, you can depend on your MSUFCU Platinum Resource Visa Credit Card for Business. It’s accepted everywhere you see the Visa logo.

8901 23 4567 4447 01 S KEN JONE NAL TERNATIO OXET IN

Apply today msufcu.org/business • 517-333-2424 All loans are subject to credit approval. L

a n s i n g

s i n e s s

w s

c o m

NEWS

OPIOID ABUSE IN

MICHIGAN Employers benefit in battle against prescription drug abuse BY ANDREW DOMINO

The drug that affects everyone is getting renewed interest from the State of Michigan — and more attention from employers. Opioids are drugs often used for pain relief, like heroin and morphine, as well as drugs with brand names like OxyContin and Vicodin. A state report finds that in 2012, medical professionals wrote

107 prescriptions for opioids and other related drugs per 100 Michigan residents; Michigan has the 10th highest rate of prescribed pain relievers in the U.S. Drug abuse results in an average of more than 300 deaths in Michigan each year, as well as addictions that manifest increased costs in the

LISTEN every MORNING

MORNING EDITION with BROOKE ALLEN in mid-Michigan

Stand with the Facts

Weekdays 5am - 9am 6

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

J U LY 2 0 1 7

form of police, prisons, additional hospital visits and lost earnings for workers. In April, Michigan received $16.37 million in federal funds to combat opioid abuse. It will be used on programs like prevention services and the creation of a statewide awareness campaign. “Through this grant, we will strengthen our networks for prevention and treatment,” said Dr. Debra Pinals, medical director for the Michigan Department of Health and Human Services (MDHHS), in a press release. The state currently has the Michigan Automated Prescription System, a computer system that tracks how often patients are prescribed pain killers by their doctor. According to Jen Eisner, public information officer for the MDHHS, the recent grant emphasizes the best practices for doctors: teaching medical students how to properly prescribe opioids and how long treatments should last. The April grant is also dedicated to making people outside of the medical field more aware of opioid abuse. Pinals said a media campaign — everything from TV commercials to school programs — will teach everyone about the dangers. There are also plans to add more statewide drop off sites, where people can turn in unused medication. Many police stations and pharmacies serve as medication drop off sites.

NEWS

MICHIGAN HAS THE

10TH HIGHEST

DRUG ABUSE results in an average of more than

300 DEATHS

rate of prescribed pain relievers in the U.S.

IN APRIL, MICHIGAN RECEIVED

$16.37 MILLION in federal funds to combat opioid abuse

IN MICHIGAN EACH YEAR While the federal grant is focused on opioid abuse, employers say that is only one drug related issue they consider when hiring, one that goes together with other types of drugs like alcohol and marijuana. “We’ve had three candidates (in a week) fail drug tests, and our company spends time and money recruiting people who ultimately disqualify themselves,” said Andrew Storm, president of Eckhart USA, a robotics manufacturer in Lansing. Edee Hatter-Williams, CEO of Capital Area Michigan Works!, says the people seeking jobs through her office are mainly concerned with medical marijuana. Though the program was approved in 2008, the specifics of what a state medical marijuana card allows still isn’t clear. Potential employees remove themselves as candidates before they even get a chance to interview for a job. “There’s a perception that a medical card allows (people) to smoke,” Hatter-Williams said. “When we explain there’s a drug test (for a job opening), those that may be using say, ‘I didn’t know that.’ Some say, “I’ll look for something else.’” Hatter-Williams said the guidelines used for marijuana use — often a urine test or a check of a candidate’s hair — may be applicable for opioid drug use as well. It’s less likely to be a part of bringing new

employees on board in a professional, white collar role. “In industry, you hear about it the most,” she said. “That’s where they do talk about drug testing. Operating a multi-million-dollar piece of equipment, or driving a forklift, has different requirements than an office job. It’s not likely you’ll hear about it in insurance, or a hospital or working in a school district.” There are two options for a business facing employees who have a drug abuse problem, whether it is opioids, marijuana or alcohol: firing those employees or placing them in a treatment program. The option the company chooses often should do with the resources the company has available and its need for those employees. “We need more employers to realize that it’s a health issue,” said Jessica Robinson, executive director of Mid-Michigan Recovery Services, a drug treatment center based in Lansing. Most of the people who come to Robinson’s facility are chronically addicted and often homeless and unemployed. But some do have jobs. They receive an opioid pain reliever for a severe injury, and still seek out the drug when their prescription is completed. At other times, Robinson said, family members or friends either steal or are given the drugs, feeding an addiction that has nothing to do with pain relief. Treatment programs help victims break their addiction and learn how to use medication safely. Some patients must learn basic job skills,

but others, who were in the working world before treatment, can return to work after just a few weeks or months. Lauren Maceri, HR manager for Orchid Orthopedic Solutions in Lansing, said treatment and random drug testing are enforced in her business. But the focus is on drugs such as marijuana, alcohol and other substances that already get a lot of attention from governmental agencies. “Prescription drug abuse has not been an issue we’ve been aware of, and it’s something we should consider more,” she said. Pinals said employers can help state official’s battle with opioid abuse by learning more about the problem. She said the state behavioral health website, michigan.gov/bhrecovery, is regularly being updated with information on drug treatment and prevention options. “Our focus is on opioids because (they are) so deadly,” she said. “It can affect employees, management — all spheres of the population.” Andrew Domino writes about finance, culture and hobbies for publications in Lansing, across the U.S. and online. He discovered that a drug test, whether a urine test or a hair sample, is referred to as a “drop,” and it’s something people applying for jobs don’t always prepare for, even though they’re seeking work. Andrew is also a freelance writer and blogger, bridging the gap between “nerds” and the rest of the world. You can see more of his writing at www.dominowriting.com.

a n s i n g

s i n e s s

w s

c o m

Sonoco Protective Solutions Inc., was offered a $155,000 Michigan Business Development Program grant to help fuel a $1.2 million expansion of its Owosso automotive supply plant. Courtesy photo

State grant expected to expand business in Shiawassee County BY OMAR SOFRADZIJA

If you could make an investment that was almost certain to have a return nearly 10 times what you put in, would you not make that bet? That’s essentially what the state of Michigan is doing in offering a $155,000 Michigan Business Development Program grant to Sonoco Protective Solutions Inc. to help fuel a $1.2 million expansion of its Owosso automotive supply plant, a project expected to create 31 jobs, according to the Michigan Economic Development Corporation (MEDC). “Obviously, we’re very excited about it,” said Justin Horvath, president and CEO of the Shiawassee Economic Development Partnership. “Sonoco is one of our top three largest manufacturers, not only in Owosso but in Shiawassee County. They’re a major positive benefit for our local community’s economy. They’ve been here for a number of years. They’ve been a great employer in the area, good community citizens.” 8

The grant helped to nail down expansion in Owosso. The company was also considering its facilities in Kentucky, Ohio and Tennessee, the MEDC said.

email. “We greatly appreciate the spirit of collaboration with the State of Michigan, our local community partners and the great workforce we have in Owosso.”

“This was a grant that was actually used very, very effectively to be able to help win this work and bring in to Michigan and bring it to Owosso and Shiawassee County over other states,” Horvath said.

The Sonoco grant is just the latest example of MEDC financially helping to strengthen the Owosso area’s economy. An earlier grant helped to spark a $19 million expansion of a nearby Cargill Inc. facility that will create one of Michigan’s first agricultural product processing facilities, said Owosso Mayor Chris Eveleth. He said most of Michigan’s agricultural products now go out of state for processing.

The grant money will be used to offset training costs for the new employees, among other needs, Sonoco said. The Owosso plant currently employs around 160 people. “These kinds of grants or incentives are certainly helpful when we are looking at any kind of expansion or relocation that leads to job creation. We see these as win/ win initiatives for both parties,” Sonoco spokesperson Brian Risinger said in an

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

J U LY 2 0 1 7

“It’s a big deal,” Eveleth said of the Cargill deal. “If it goes well for them … we may see an entirely new emerging industry in the state of Michigan with Owosso at the hub.” Proponents see these deals as proof that incentives can work and be fair.

NEWS

“There’s always a debate about incentives, and ‘are they useful? are they needed? Is it a good use of dollars?’ But the short answer is, definitely; they have been hugely impactful for our community,” Horvath said. “I think the key story here is, these deals are all private-sector driven. What is on the table is a major business investment that needs a little bit of help, essentially, to level the playing field, to make the deal more cost effective, to move a project forward.”

“They key metric here is, the company only receives the dollars if they create the jobs … it’s not like the state is writing them a $155,000 check and then it goes into a black hole,” Horvath said. After proving job creation, “only then will they get the incentive money. It’s essentially a guaranteed win for the state and for the taxpayers at that point, because the only way those dollars get utilized is if the company created those jobs and the company made that investment.”

Benefits of the Sonoco expansion are expected to ripple throughout the community. “It circulates around to other taxpaying businesses as well as this particular business paying a large amount of taxes,” Eveleth said, adding that Sonoco is “the largest water customer in town … I think there’s a lot of different paybacks for us.”

“What people need to realize is if the tools aren’t used, if we don’t put some dollars on the table, then these projects won’t come to fruition, and we’ll get nothing out of the deal. Those investments will not occur, and all that private sector investment will be sacrificed and lost. I look at it as a very small public investment to support a very, very large private sector investment,” Horvath said.

With unemployment running low in Shiawassee County, Horvath said the Sonoco expansion could be an opportunity for Greater Lansing workers looking for solid manufacturing work.

“Those people that are hired will be paying state income taxes, sales taxes, property taxes on homes, things of that nature,” Horvath said. “Those people get hired, they go buy a home, they go eat at a local restaurant, they buy a car. They shop locally, all those kinds of things. That money works its way through the local community.”

According to Risinger, jobs must be created by this August. The grant is performance based, which means Sonoco must prove that it created the intended number of jobs to get the money.

“We’re not that far away. Owosso is 30 minutes away from Lansing, and I think a lot of people in the Lansing area may not be aware that we have tremendous national and international companies in Owosso and Shiawassee County that are hiring,” Horvath said. “We certainly would love to see folks in the Lansing area who are looking for a new career opportunity to take a look out here.”

Horvath said as much as $6 is spent locally for every $1 spent on manufacturing activity.

Omar Sofradzija is an adjunct journalism instructor at Michigan State University. Prior to that, he was a reporter, columnist and editor at the Las Vegas (Nev.) Review-Journal and Peoria (Ill.) Journal Star. He lives in Haslett.

a n s i n g

s i n e s s

w s

c o m

Photo by Rhoda Baer, released by the National Cancer Institute, an agency part of the National Institutes of Health

THE HUNT FOR PREEMPTIVE

TECHNOLOGY IS ON Health care’s best preventative tech may be right in front of us BY ADAM LANSDELL

Health care is something that simply can’t be ignored. It’s not only a fundamental aspect of our personal abilities to live a sound lifestyle, it’s a necessity to the economy. As industries continue to grow with the aid of technology, the world of health care isn’t shying away from innovations that could improve both aforementioned categories. Technology is not only driving the way patients are treated, but it’s also fueling the potential of stopping the worst conditions dead in their tracks. Preemptive technologies are defining the way scientists and engineers think about the health problems of today, allowing them to explore options that previously existed only outside of the box that is traditional health care. Medical technology is moving along just as quickly as the tech gadgets that come and go from our daily lives — as a matter of fact, they’re pioneers of the latter. In the early 1950s, paging services were developed as a communication tool for physicians, which then evolved into the mobile device that’s likely inhabiting your pocket at this very moment. Like the military — and sometimes in cooperation with the military — the medical industry works as a platform to beta test many of the early incarnations of products that will eventually seep into our daily lives. Yet, before being transformed into consumer-driven products, they’re used as tools to save lives. 10

Tech innovations don’t always make their way to buyers in a new package, as some are destined to stay in the hospital. The design of technologies’ capabilities may change, but the goal is to reinforce a patient’s opportunities to heal or help fend off an unfavorable diagnosis. Today, machines used for cancer detection, such as mammography screenings, are shaping a provider’s ability to tend to patients. This tech continues to move forward with the end goal of detecting cancerous cells and proactively slaying them at their genesis. “Technology is evolving and there are tests being developed for the detection of biomarkers for diseases such as Alzheimer’s and diabetes, and genetic markers for breast and ovarian cancer,” said Maureen Hillary, chief nursing officer at Hayes Green Beach Memorial Hospital (HGB) of Charlotte, Mich. HGB began offering 3-D mammography services in 2015, and have since been able to detect cancerous formations at an earlier stage. While the tech is absolutely an important aspect of their ability to treat women, it’s not always a flawless method for absolute prevention. “I don’t know if we have the early-enough interventions to interrupt the progress of these diseases, except for surgical intervention in diseases like breast and ovarian cancer where

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

J U LY 2 0 1 7

we remove the breasts and ovaries,” Hillary expalined. “However, that isn’t 100 percent effective because there is always some breast tissue left behind. So, are we able to prevent these diseases with the preemptive technologies, or are we just warning people they are at greater risk?” As scientists work toward the development of technologies that will make statements such as Hillary’s more concrete and confident, it’s clear the proper investments are being made. In May 2017, 3-D MAMMOGRAPHY the Department of MACHINE Health and Human Hayes Green Beach Memorial Services’ annual Hospital began offering 3-D mammography services in budget proposed a 2015, and have since been grant of $5.3 billion able to detect cancerous to the National formations at an earlier stage.

NEWS

Cancer Institution for the development of innovative technologies and additional research. With a projected 24 million people living with cancer across the globe, a high allocation such as this is not only justifiable, it’s necessary. As technology continues to evolve, hospitals and health care facilities of all types are in a scramble to keep the latest and greatest tools on deck for their patients. However, keeping up with this rapidly moving evolution comes at a cost. Aside from the purchase of largescale equipment for detection, many facilities have been forced to transition other aspects of their operations over the past decade by implementing tech that would significantly alter productivity and efficiency. A 2015 Boston University study analyzed the impact of patient costs as a result of the implementation of tools known as Health Information Technology (HIT). HIT technologies were originally incorporated as a system-wide database for desktop computers, but have since expanded to be more accessible via mobile devices and communicative with other facility equipment. An additional bonus believed by early adopters is the upfront investment would be a valuable investment, diminishing the costs associated with payroll, patient housing costs and more. However, when analyzing 2.5 million inpatient admissions across 3,900 hospitals between 1998-2005, HIT was associated with a 1.3 percent increase in billed charges, while there was no evidence of savings even five years after adoption. While early adopters may not have received the biggest bang for their buck, the tools have still been an invaluable asset to health care providers and the way they communicate. Coming fullcircle, our phones are now leading the charge for HIT. Physicians are using their mobile devices to access information about prescription medications, important medical text and to seamlessly communicate with others in their network. In addition to this, mobile health care is taking the industry by storm with 52 percent of users estimated to store personal health information on their mobile devices. Insights into personal health trends are more readily available than ever, making a compelling case for mobile devices as the most valuable preemptive health care tool of all. In 2017, the mobile health industry is projected to be worth nearly $26 billion. More than a decade has passed since early adopters of tools such as HIT saw no return on investment, but the accessibility to health care tools for personal use and physicianbased use may be actively turning the tide for today’s patients.

“You can’t separate business and health care. We want to provide economically sound health care. When we’re in a more competitive marketplace, prices can decrease. If we utilize technologies and provide medical care more appropriately with improved oversight, health care costs may decrease as well,” explained Dr. Saralyn Mark, a world-renowned advocate for women’s health and former health advisor within the Department of Health and Human Services and NASA, during a 2015 interview with U.S. News. While the idea of affordable health care seems simple, the marriage of business and health care can create slow-moving obstacles. While health care innovations are pushing for preventative and preemptive methods of treatment, making them readily available is a negative proponent of the bottom line. “Treating disease tends to be more lucrative,” said Mark. “It can be challenging to promote prevention, especially since a lot of it comes down to human behavior. From the economic vantage point, how do we measure that? For example, how do we measure healthy eating habits, healthy physical activity and not

smoking and doing activities which put your health at risk?” “Prevention is harder to quantify. The cornerstone of health care is on prevention. It’s on counseling; it’s on preventive tasks to catch something early, perhaps before it evolves into a full-blown disease. It’s an opportunity to bring patients in to begin the discussion with their clinicians on how to have a healthy life,” added Mark. While the path to health care access may seem clear, it’s not. Fortunately, as scientists work to present the next life-saving technology to the realm of deadly diseases, the tech and mobile industries are doing their part to create a better standard of living and more options for people to take proper care of themselves. Adam Lansdell is an alumnus 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.

WE CARE ABOUT PROTECTING YOU AND YOUR FAMILY • • • • • •

Life / Health / Annuities Home Auto Umbrella Watercraft Motorcycle

Providing excellent customer service to our clients for over 35 years WWW.CAPITALINSURANCE.COM

(517) 482-7900 | 4299 Five Oaks Drive, Lansing, MI

a n s i n g

s i n e s s

w s

c o m

FORSBERG BRINGS MILLENNIAL

HOUSING TO REO TOWN BY ADAM LANSDELL | PHOTOS BY MARK WARNER

Nestled just outside of Lansing’s REO Town sits a home unlike any other in the area. It’s small but not hard to miss. With its bright blue paint, unique design and a silver-plated sigil embedded in the driveway, this home looks different because it is different. It’s one of T.A. Forsberg Inc.’s latest creations — the first of many of its kind — set to alter the way we view the necessities of living. Named after the Swahili word for elephant, these small homes are filled with might, style, efficiency and, most importantly, necessities. Despite the size of the home, which sits at just around 600 square feet, these unique structures were bred to create an attainable, functional living scenario for residents that need the bare minimum at home and have instead opted to take life’s biggest adventures on the road. With plans to create more, Brent Forsberg and his team are looking to place these exciting new builds within existing neighborhoods to attract the young, adventurous residents that will breathe new life into the region. 12

“Tembo was designed to fit the needs of a variety of lifestyles,” said Gina Pons-Shultz, operations and project manager at Forsberg. “Our primary focus is on millennials and young professionals who are moving to the Lansing area or have just begun their careers here, but we also see it as a great option for those further along in life, such as empty nesters who want to downsize.” The focus on millennials is a sound decision, as the generation’s demand for housing options is not only at its all-time high, but at its most unattainable in terms of price. With an average salary of $40,581, millennials earn 20 percent less than boomers did at the same stage of life despite a better education, according to a new analysis by the Federal Reserve. This lack of personal capital, coupled with the baggage of student loans, makes the idea of owning a home unthinkable. However, with strategic placements and attractive price points, Tembo homes fill the needs of this group. REO Town is on a hot streak, and the thought of living closer to the emerging action is

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

J U LY 2 0 1 7

something that has passed through the minds of tenants and residents alike, each optimistic in their abilities to capitalize on what many in the region are calling the next Old Town. However, Tembo homes aren’t entering the area with the objective of redeveloping the region by adding luxurious, expensive housing options or cleaning its slate to make room for more areas of commerce; instead, they’re taking a strategic perspective that will help to reinforce the defining features of the area when executed. “Smart growth is about being dynamic: you deal with people, and as people’s lives change, the way we interact with spaces change,” said PonsShultz. “As we evolve, our relationships, the way we live, how we live evolves. Anyone putting a product out needs to be constantly aware of that evolving market. People want a home that mirrors their values and mirrors their lifestyle.” The goal is to become part of the heritage and assist in the creation of the future, not leave the

NEWS

$600 - $850 A MONTH | 600 SQUARE FEET UTILITIES ESTIMATED AT $1300 ANNUALLY past in the rearview as developers often do with aging neighborhoods. Through smart growth tactics, a fundamental moral code for Forsberg, the group is not only bringing new light to the regions of yesterday, they are doing so with a minimized footprint. Modern efficiency-based installations throughout each home ensures that the energy needed for the homes to function isn’t just practical, but beneficial to the environment. It comes as no surprise to learn that staples in green development, such as LEAD certification and Energy Star accessories, laid the foundation of aspirations for these buildings.

aren’t being asked to abandon all their personal possessions, but it doesn’t hurt to pack light. These structures have managed to find a perfect balance between minimalism and comfortability. With the enticement of sleek design and lower energy bills, the compromise is nothing to laugh at. Homes will range in size and are expected to differ slightly by location, but each home will aim to provide the outlined inclusions.

Over the next few years, Forsberg will be exploring more options in hopes of creating a viable solution for the needs of many. Tembo homes don’t fit the mold of what you’d come to expect from a rental property, but the curiosity and adventure that comes along with being a tenant is worth it. A smaller home doesn’t mean a smaller lifestyle; it means bigger opportunities.

“We worked with an energy efficiency company throughout the build process, taking design recommendations to ensure that the utility costs to operate these homes would be minimal,” said Pons-Schultz. “However, that doesn’t mean we had to cut back on features; the homes will include a washer and dryer, and certain models will include a dishwasher as well.” While Tembo homes are great for the region, the question remains: Who would be interested, and why are they interested? Forsberg has identified a subset of the population that desires minimalistic, modern housing units at an attainable price. Coming in at anywhere between $600-$850 a month, and utilities estimated at $1,300 annually, these new options are viable for recent graduates, frequent travelers or anyone with the desire to situate their personal carbon footprint in line with Forsberg’s efforts. Each home is fitted with the essentials: a living room, kitchen, bathroom and bedroom. Easily suitable for a pair of residents, there is a generous amount of interior storage thanks to a loft unit, and the exterior has its perks too, thanks to a large front patio for sitting and a separate concrete patio in the back. When touring the unit, it’s easy to imagine yourself capitalizing on these amenities. Tembo houses aren’t for everyone, and they’re not meant to be. Residents of the homes L

a n s i n g

s i n e s s

w s

c o m

EAST LANSING CITY COUNCIL

UNANIMOUSLY APPROVES CENTER CITY DISTRICT PROJECT Development to serve as a catalyst for future economic growth BY KRISTINE RICHMOND

East Lansing’s City Council met on June 20 for a pivotal vote that would either pave the way for the start of the Center City District project this summer or would stop it in its tracks. The City Council voted unanimously in favor of the project. Harbor Bay Real Estate Advisors, the developers on the project, report that construction is scheduled to begin this summer. East Lansing Mayor Mark Meadow commented during the City Council meeting that this is one of the most well put together plans he has seen in his time with the city and, for that reason, voted in favor. City Council Member Susan Woods added, “This is what our community is about. We are a community of people who love what they have and want to make it better.” The Center City District deal is contingent upon City staff being satisfied with findings of a forthcoming due diligence review of the developers’ financial situation and the project’s 14

planned finances. City staff will have two days from receipt of the findings to raise any concerns. Otherwise, the deal will proceed. Harbor Bay Real Estate Advisors is a family owned, fourth-generation business that’s existed since 1859. When the company sees an opportunity and buys a property, they want to be a part of the community and see it be successful, so they stay. Their passion is to create something that the city and community will be proud of. “We are excited that the Center City District development is moving forward,” said Mark Bell, chief executive officer of Harbor Bay. “Our entire team, including the Ballein family, remains dedicated to ensuring that this transformational project comes to fruition and becomes a timeless community asset for the City of East Lansing.” According to Bell, the East Lansing site along Albert and Grand River avenues was seemingly

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

J U LY 2 0 1 7

yearning to be developed — it had so much opportunity that Harbor Bay has been planning the Center City District project for five years. Even though the journey toward approval was challenging and rocky at times, Bell and his team continued to stay optimistic that the project would move forward and took all the feedback he received from the community to heart. “It’s really important for us, as developers, to listen and be flexible. People overall have been really engaged, whether they were for or against the project,” said Bell. “Frankly, it’s good for us to hear more from those who don’t like the project because perhaps they have some suggestions that we can integrate into the design. And all of a sudden, you turn someone who didn’t like the project into a believer.” Based on public comment, Harbor Bay has significantly revised the development with the following details:

FEATURE

• The Grand River building was reduced in height by 8.3 feet and the Albert building by 18 feet. • The upper floors of the Grand River building now ranges from 4 feet to 28 feet off the first-floor retail space to lessen the perceived height of the high-rise apartment building to onlookers. • The Albert building is now up to 4 feet off the first-floor retail space and 10 feet off the parking garage, which is a total of 14 feet off the city’s property line. • Storage was added on every floor of the senior apartments. • The senior apartments were moved further west in order to gain beautiful, unobstructed views of campus, particularly on the amenity deck. Construction is estimated for completion in under two years, with the parking garage on an accelerated timeline of approximately one year, thus minimizing disruption for residents and business owners. Over 300 prevailing wage construction jobs will be created from the project with 75-100 full-time jobs created following completion. Once completed, the Center City District has the potential to positively impact the economic growth of East Lansing’s downtown core and the surrounding area. According to Bell, the development will see an immediate impact with the addition of more diversified housing, more retailers and more people spending money. With the influx of people coming into the city, the project will create an additional 303 hourly parking spaces to service businesses: an estimated 79.5 percent increase in revenue for the city over status quo. According to Harbor Bay, current net revenue for Parking Lot 1 is $527,000. The Center City District development will produce an additional $418,731 annually. “The economic benefits not only from the project are tremendous, but also the long-term ripple effects of the development could have an even more dramatic effect,” said Bell. “So, if you take Target, for instance, a Fortune 50 company which is very unusual to procure — what that will have an effect on: the downtown core, businesses, residents, etc. I think it will have a profound impact.” Target has signed a lease to anchor the retail district in the downtown core. In addition, there will be 23,000 square feet of leasable space available for smaller retailers, resulting in a much more vibrant destination for retailers and consumers. Tax Increment Financing (TIF) will only be used to develop the public infrastructure and

parking garage. None of the financing will go toward the Grand River building expenses. The TIF bond is a non-recourse bond to the City of East Lansing, which means the bond will be financially backed by Harbor Bay, and they will be taking on the burden of the risk. According to Bell, this will be the first TIF ever approved in East Lansing’s history where the developer is not looking to receive any money on its private improvements. The community has been long overdue for major development. Betty Nocera, East Lansing resident, shared her approval of the project during the City Council meeting on June 20. “This development [the Albert building] will draw in the 55 and older crowd and provide them with the amenities and lifestyle they are looking for,” explained Nocera. “These people will spend their money in East Lansing and live in this community. Thi s building will attract baby boomers and will make this city a 21stcentury city. We need to build housing and be the place to live in the region.”

The Lansing Economic Area Partnership (LEAP) is one of the pivotal regional partners that helped bring the Center City District to fruition and was present during the June 20 meeting. “I want to congratulate everyone who has put effort into shaping this project,” said Bob Trezise, president and CEO of LEAP. “The Center City District project is a great example of innovative sustainable economic development: a futurefocused endeavor to be enjoyed by generations into the future. Everyone involved in the project has worked very hard over the past months to craft an exemplarily win-win agreement. This persistence and dedication paid off.” For more information about the Center City District project, visit elcentercity.com. Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act.

COMFORT...NO MATTER WHAT THE WEATHER BRINGS • • •

Client-first focus Industry-leading service The latest heating and cooling solutions

517.482.5501

hagerfox.com

Because you really DO deserve to be comfortable

a n s i n g

WHATEVER IT TAKES.

s i n e s s

w s

c o m

Photo by Erika Hodges

Lansing businesses can get assistance via economic development tools BY TERESA J. FRITH

Lansing is a thriving city, the capital of our great state of Michigan. Michigan’s central location puts it in a very strategic location for businesses to serve both Canadian and U.S. customers. Something that is helping to maintain this growth are economic development tools and other incentives that are available for help. One of those places helping promote area growth and advancement is the Lansing Economic Area Partnership (LEAP). For the past 10 years, LEAP has provided services to Lansing and other areas in Eaton, Clinton and Ingham counties. Available services include business and entrepreneurial startup programs, as well as placemaking, talent development and diversity programs. “LEAP works to keep, grow and attract businesses,” said Bob Trezise, President and CEO of LEAP. “One of the things we have done is establish the state’s first equity investment fund called Lansing Proto. We also offer one-on-one 16

counseling, loan and grant programs, and various training such as diversity training.” Some of the places LEAP has worked with include: General Motors, Jackson National Life Insurance, the historic Knapp’s Centre, the Scott Gillespie buildings on Michigan Avenue, SkyVue, NioWave and others. “We believe our region is a true, viable global economy with a global environment that can engage and compete with anyone, anywhere in the world,” said Trezise. “It has exploded in growth over the past 10 years and we are here to help both small and large businesses with any type of project by providing passionate expertise.” Another organization helping Lansing prosper is the Michigan Economic Development Corporation (MEDC), who advocates for business development, job awareness and community and talent development to help

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

J U LY 2 0 1 7

the state’s economy continue to grow. Some of MEDC’s available tools include programs like Pure Michigan Business Connect, Community Revitalization, Michigan Business Development, Community Development Block, Redevelopment Read Committees and Public Spaces Community Places. MEDC also offers businesses help via the Small Business Development Center and the Michigan Manufacturing Technology Center. “Our business development managers can meet with a business to discuss in detail all the tools and services available,” said Otie McKinley, media and communications manager for MEDC. MEDC is also active in facilitating growth in both urban and rural areas in Michigan, making them a change agent for both business and community revitalization. The goal is to build the economic landscape of Michigan project by project and from city to city, which will help

FEATURE

LOCAL ECONOMIC DEVELOPMENT TOOLS MICHIGAN ECONOMIC DEVELOPMENT CORPORATION

GILLESPIE COMPANY

Website: www.michiganbuisness.com Phone: (888) 522-0103 POC: Jennifer Nelson (MEDC) at jennifer@michigan.org

LANSING ECONOMIC AREA PARTNERSHIP Website: www.purelansing.com Phone: (517) 702-3387 POC: Karl Dorshimer (LEAP) karl@purelansing.com position Michigan as a preeminent location for people and companies to do business. Yet another place active in helping promote growth in the area is the Gillespie Company, a real estate development, construction services and general contracting firm headquartered in Lansing. One of their specialties is historic renovation and their goals are developing, building and maintaining properties that improve the area for residents to work and live in. One of their major projects was the renovation of the Michigan Avenue area. They recently publicized a new plan for the 2200 block that is expected to provide the community with more vibrant areas. This and their Eastown Flats project are vital to the area’s placemaking strategy. Late last year, the Michigan Avenue corridor road was resurfaced after a campaign by the Lansing Regional Chamber of Commerce, joined by hundreds of local business, community leaders and residents signed a letter sent to the mayor and city council explaining how badly it was needed. STATE PROGRAMS ASSIST IN MAKING MICHIGAN PROSPEROUS State programs like the Michigan Economic Growth Authority are also helping Lansing companies via the use of Small Business Tax credits. Two Renaissance zones in Lansing allow businesses in those areas to be waived from certain tax types, like single business tax, local real property tax and utility user tax. For instance, some local property taxes can be abated up to 50 percent for a period of as long as 12 years if they fit the right criteria. State law also lets Lansing officials to decrease personal property taxes in some areas to encourage economic development. While it doesn’t include retail businesses, it may include manufacturing, mining, research and development, wholesale and trade, and office operations.

Website: thegillespiecompany.com Phone: (517) 327-8887 For info: Fill out contact form at: thegillespiecompany.com/contact

MICHIGAN ECONOMIC GROWTH AUTHORITY Website: audgen.michigan.gov/in-progress/michigan-economicgrowth-authority-tax-credit-program/

Lansing has also benefitted from a sound economy, as statistics show that while the state average for unemployment in 2016 was about five percent, in Lansing it was only 3.8 percent. All these different economic development tools and other programs are helping to ensure the future expansion and growth of Lansing. Working together with residents, business leaders and local government leaders, these organizations have the health and welfare of the area in their hearts and

minds. These and other organizations that can be contacted to help good works continue to ensure the best future for Lansing and its residents. Teresa Frith is a Navy veteran now residing in Nashville, Mich. She's been writing and editing as a freelancer since retiring from the Navy in 2011, where she was a military journalist. She holds a BA in English from Western Illinois University. Her hobbies include reading, writing and working to help stray and feral cats.

Your Destination... FOR FLEXIBILITY NOW AVAILABLE

A business requires space that can be flexible to a specific need—a destination designed for quality, functionality, value, and dependability. Dart Development partners with you to design and build out custom business space that makes a positive difference in the success of your endeavors.

6.47 ACRES SE CORNER OF GRAND RIVER AND NAPIER RD Wixom, MI • Build to suit to lease or sale of entire property • Easy access to I-96, I-275 & I-696 • Active business development area

( 8 8 8 ) D AR T - 0 0 1 | d a r td e v e l o p m e n t. c o m

a n s i n g

s i n e s s

w s

c o m

GENDER INEQUALITY IN THE WORKFORCE BY ALLYSON HAMZEY

TWENTY CENTS. Said aloud, this amount of money seems meager and unimportant. But that’s the common discrepancy in a dollar between the hourly pay of the average American woman and average American man. Imagine this two dime difference: not even a handful of change. It’s not a staggering number at first glance. With a broader perspective, it represents the irrefutable inequalities women face in the workplace; a 20 percent wage gap is just one revealing example among many inequalities. Women’s experiences in the workplace differ vastly, partly due to their educational background, their upbringings, their occupational choices and specific values in their workplace. In comprehending workplace gender inequality, 18

it’s crucial to see the underlying factors and variations of a face-value statistic, such as the national gender wage-gap average. Lisa Beedon, the 2015-16 president of the American Business Women’s Association (ABWA), calls for a closer look at discrepancy in wages between men and women. “Statistically, it’s 20 cents different for every dollar a man makes,” said Beedon. “When you look at it that way, it doesn’t sound like much. But, over the course of a career, you’re talking about hundreds of thousands of dollars — if not millions — women are not getting. It’s important for women to ask for more. Pay needs to be equal.” Social categorizations such as class, sexuality and ethnicity intersect with gender to directly

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

J U LY 2 0 1 7

correlate with differences such as a woman’s pay rate. Astoundingly enough, Latina women in the United States, on average, earn only 55 cents for every dollar paid to white men, according to National Partnership for Women & Families data. That’s almost half of what the average white man receives. If that data isn’t riveting enough, experts in the field analyze the broader reasoning behind such disturbing discrepancies. “It’s not just gender, it’s also ethnicity within gender,” Beedon said. “We really need to make sure we’re doing what we can to tighten this gap.” Emily Conroy-Krutz, a history professor at Michigan State University (MSU), stresses the significance of intersectionality of experiences in understanding workplace disparities. “If we know anything, we know the ways that

FEATURE

GENDER PAY GAP

For every dollar white, non-Hispanic men earn, women get paid ... ASIAN-AMERICAN

WHITE NON-HISPANIC

WOMEN

84 ¢

75 ¢

BLACK WOMEN

NATIVE AMERICAN/ ASIAN PACIFIC ISLANDER

61 ¢

LATINA

WOMEN

55 ¢

59 ¢

Source: National Women's Law Center (Based on median annual earning of full-time, year-round workers in 2014)

the ideas of race profoundly shape ideas about gender. We can’t talk about one without the other,” Conroy-Krutz says.

authorities look like and what experts look like,” is key in fixing gender inequalities in the workplace.

It’s easy to forget that one of the catalysts for disparities in the workplace can be traced all the way back to women’s educational experiences. Lydia Weiss, educational program coordinator at the MSU Work Life office, explains that social influences in male and female education can result in lifelong effects.

Weiss says starting as “early as possible with self-esteem and confidence,” talking with boys and girls about “what is gender, or socialization,” will have profound results.

“One of the major differences in [educational upbringings] is socialization with boys and girls. That happens in not only the family and the home, but in the classroom.”

“It’s great to be empowered as a woman, but if you don’t have the other half of the world’s population backing you up, it’s really hard to make progress,” Weiss said. “It’s important to

start looking at the disparities because a lot of people falsely believe that it’s equal.” “As women, we need to find our own voice and be our own best advocate,” Beedon said. Allyson Hamzey is a student at Michigan State University studying journalism and public relations. She has a deep interest in entertainment culture, social justice and equality movements. When she isn't planning her next concert to attend or place to travel to, she's probably engrossed in a popular culture phenomenon.

The ABWA’s Beedon explains, “There’s a lot of psychology behind this gender gap. Women are taught to be pretty, to be princesses, to not be competitive, to not get dirty. As that changes, as young girls are playing sports and becoming more competitive, you’ll see changes in the work place.” This influential rhetoric reminds girls that they’re seen as the lesser sex, said Beedon, leading to a lack of confidence and self-worth. Smaller, yet resonating jabs and dialogue, known as micro-aggressions, can add to discomfort in the work environment. “I do think one of the main focuses now is micro-aggression,” Weiss explains. “These are little comments that over time add up to what feels like a hostile environment. That doesn’t necessarily have to be based on gender: it can be based on ethnicity, race, gender. It can be based on sexuality, nationality — it can, just, feel a little uncomfortable.” In reflecting on workplace gender inequalities, these experts all believe women have made a great deal of progress. However, each expert has wisdom and efforts they say should be made to reduce the gender gap. Conroy-Krutz says a cultural transformation in “larger social and cultural ideas about what L

a n s i n g

s i n e s s

w s

c o m

COVER

MEET THE NEW

AMERICAN

HEALTH CARE ACT

An update on the status of U.S. health care BY ADAM LANSDELL

The Trump presidency has been a turbulent one to say the least. The process of attempting to make good on his promises has been a rollercoaster of emotions for Americans, with events unfolding in disarray as the latest White House administration looks to put its own spin on foreign affairs, immigration, education and health care. In our January 2017 issue of the Greater Lansing Business Monthly, I touched on the forecasted changes to health care in relation to President Donald Trump’s

pledge to abolish former President Barack Obama’s Affordable Care Act (ACA). Since then, so much has changed and will continue to change as our nation embarks on what may be the most ominously alarming timeline since Watergate — below is a discussion about where health care is now and where it is headed. Essentially, Trump promised within his first 100 days in office to change the way

that health care is provided to Americans; that promise centers on the idea that each citizen should retain his or her ability to be proactive in choosing the right coverage, while leveraging more flexibility to insurers and pricing. Officially unveiled on March 13 under the name, the American Health Care Act (AHCA), a weight of curiosity was lifted following a rating by the non-partisan Congressional Budget Office (OBC).

AHCA PROPOSAL & OBC ANALYSIS Persons with health care insurance coverage

WOULD BE REDUCED BY: 14 million in 2018 21 million in 2020 24 million in 2026

Insurance premiums would

INCREASE IMMEDIATELY but would

DECREASE OVER TIME

Estimated

Reduction of federal deficit by

$337 BILLION over a decade

$1.2 TRILLION less in spending and

Medicaid funding to be cut by

$900 BILLION

$880 BILLION

The requirement for health insurance and associated penalties WOULD BE ELIMINATED

Income based tax credits to be eliminated, replaced by age-based credits

less in tax revenue collections

ELIMINATION

of assured coverage for PRE-EXISTING CONDITIONS

THE ROAD TO PASSING THE 2017 AHCA 3/6/17 The AHCA is introduced

3/13/17 The CBO scores and rates the proposed bill

3/23/17 AHCA amendment released

3/25/17 ACHA was voted upon by U.S. House of Representatives, pulled by Speaker Paul Ryan

Source: www.onedigital.com/wp-content/uploads/2017/03/Timeline_Thumbnail-3-1024x307 20

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

J U LY 2 0 1 7

4/20/17 Congressman Tom McArthur’s (R-NJ) amendment is announced and summarized

4/25/17 Actual language of McArthur Amendment made publicly available

COVER

From a quick view, the bill seems to accomplish many of the goals that the Republican Party (GOP) aims to accomplish in terms of reducing the nation’s deficit and providing additional savings measures thanks to cutbacks on special interest group funding. However, the morality of these budget cuts and their impact on the nation has left a bitter taste and a lump in the throats of many, regardless of which political side people are on. While more flexibility in coverage remained a selling point, there was no way to hurdle the concern that an estimated 14 million people would seemingly lose coverage of any type. Noticeably, any mention of coverage for preexisting conditions, a staple of the original

ACA, was missing. When it came time to vote, the GOP was ultimately divided, with many voters recanting their pledge of support the night before. House Speaker Paul Ryan (R-WI) pulled the bill once it became clear that it would not receive enough votes to pass. “I will not sugarcoat this. This is a disappointing day for us,” said Ryan during a press conference on March 24 that followed his decision to pull the bill. “Obamacare is the law of the land, it will remain the law of the land until it’s replaced. We are going to be living with Obamacare for the foreseeable future.”

TAKING ANOTHER STAB AT IT Following distaste from both sides in

Washington, the GOP went back to the drawing board on how to repeal and replace Obamacare. U.S. Rep. Fred Upton, representing Michigan’s 6th District, a formidable opponent of the initial bill, suggested an updated version was in the works. This new bill would address the concerns many had regarding the dismissal of coverage for preexisting conditions by guaranteeing $8 billion be set aside over the next five years for financial assistance. After a period of waiting, many came to expect the new bill to address the missing link of the initial version. However, in April, what is now known as the MacArthur Amendment was presented – named after its primary author, U.S. Rep. Tom MacArthur (R-NJ).

ACHA, MCARTHUR AMENDMENT & OBC ANALYSIS Persons with health care insurance coverage

WOULD BE REDUCED BY: 14 million in 2018 21 million in 2020 24 million in 2026

Beginning in 2018, states could apply for waivers to alter insurance premium regulations and determinants of essential health benefits

TODAY

Estimated

$1.1 TRILLION less in spending and

Medicaid funding to be cut by

$992 BILLION

$880 BILLION

The requirement for health insurance and associated penalties WOULD BE ELIMINATED

Income based tax credits to be eliminated, replaced by age-based credits

less in tax revenue collections

Despite the reluctance of Republicans who felt the new bill only made updates rather a true repeal and replacement as intended and promised, the U.S. House of Representatives passed a proposed bill with a narrow vote of 217 to 213. Officially mandating the beginning of a long journey to final approval; the bill must now pass the U.S. Senate before officially becoming law, pending a signature from Trump. Because of continuous discouragement, including widespread statements of resistance from AARP, the current bill has received additional alterations from Republican Senators and must now be debated by a committee of state senators before going to a final vote. In a

5/5/17 Amended AHCA sent to House floor for vote, bill passes

5/24/17 The CBO scores and rates the passed bill

last stand, so to speak, senators bring hope to special interest groups like Planned Parenthood, AARP and a flurry of other organizations that stand in opposition. So, what does this all mean for average health care consumers? Should we be worried? To answer a few of the questions on the onslaught of changes we might see in the near future, we’ve turned to Thomas Mee, president and CEO of McLaren Greater Lansing. Surely you’d assume that an overhaul of such a detailed and complex system such as national health care must come with some obstacles. However, according to Mee, the new bill would

TBD Bill sent to Senate Health, Education, Labor and Pensions and Finance Committees for mark-up

TBD Bill sent to Senate floor for final vote

TBD Bill passes Senate

Taxes on the roughly

TOP 5% OF INCOME-EARNERS under current law would considerably drop

People with pre-existing conditions MUST BE OFFERED HEALTH CARE, but there would no longer be cap-restrictions on how much they can be charged

do very little from a provider’s perspective to alter how accessible health care services are and how they’re being provided. “From a purely operational perspective, the proposed changes under the “new” ACA have very little impact on the delivery of acute care in the hospital setting,” explained Mee. “In fact, with or without the “new” or “old” ACA, our providers are largely blind to the insurance status of the patients they are serving, which is precisely the way I want it to be. Our motto ‘Every Patient, Every Time’ is, by design, ignorant to payer status or socioeconomic standing. Every patient will receive best in class service, irrespective of insurance, every time.”

TBD Return to House for final reconciliation if changed from bill that was originally passed L

a n s i n g

TBD Sent to President Trump for signature, bill becomes law

s i n e s s

w s

c o m

COVER

Moving forward, one of the biggest hurdles hospitals and other providers will face is their ability to provide long-term and specialized care to the newly uninsured. While no patient can be denied treatment, this doesn’t mean these individuals’ wallets or financial standings won’t take a punch. McLaren is forecasting the potential impact of these changes, and the ways the changes might ultimately impact their ability to advance.

another missing link in the minds of providers — both for the new bill and the current ACA. “I think that both reform acts were woefully and embarrassingly absent of support for the populations of patients suffering from behavioral health conditions,” remarked Mee. “Our lawmakers, with relatively few exceptions, have ignored the plight of people suffering from mental health issues. The result is that the acute care hospital is left with the responsibility to care for these individuals and, quite candidly, few are equipped to do so. There exists a mental health crisis in this community and in the country as a whole; it’s increasingly frustrating that it appears no one wants to address the root causes of this.”

“We anticipate a resurgence of bad debt and associated write-offs as we expect to see the number of uninsured grow, as we experienced prior to the first ACA,” said Mee. “It’s glaringly obvious that any economic environment that results in increased, uncompensated care means that hospitals will have less funds to reinvest in new technology, updated facilities, human resource compensation adjustments, etc.”

With so much left to be determined and a multitude of potential amendments on the horizon, there’s simply no way of telling if the proposed ACHA will see the light of day. As such, providers are afforded little opportunity to help assist their patients in planning for changes. Instead, they’re urging people to take the time to educate themselves on what’s at stake, their health status and all care options at their disposal. It might be time to consider thinking outside of the box.

Sitting alongside those concerned for the uninsured are advocates for the firm recognition of mental health coverage. As decade-spanning research comes to fruition, many see mental health as unrepresented. In addition to cuts in Medicaid and a reduction of funding toward premium costs for treatment of pre-existing conditions, this has been

“Patients, in general, irrespective of income or socioeconomic standing and insurance status, must take a greater level of ownership of their health care delivery,” said Mee. “There likely exists no other industry where consumers spend less time researching not only their health condition, but the intricacies of how that care is delivered and at what cost. The new paradigm of the high-deductible health plan is likely not going away under any health care reform effort, and consumers shouldn’t be hesitant to inquire as to the costs of service and, most importantly, the quality metrics associated with their physician or hospital provider.” While a new health care plan may seem inevitable, it may take a while to get real reforms passed; the process thus far has been lengthy and clouded by political bloat. If the Trump administration and the GOP want to uproot the former president’s most sacred health care law, it will take time, diligence and finesse. It won’t be a simple journey but, fortunately, there are strong proponents on both sides of the aisle in Washington looking out for what’s in the best interest of American consumers.

C O M FA IN 20 LL G 18

This article was crafted using information that was accurate as of June 22, 2017. Greater Lansing Business Monthly will be updating the digital version of this story as it progresses. For future updates visit lansingbusinessnews.com

PROUD TO BE IN EAST LANSING

TROWBRIDGE C R O S S I N G S

FOR LEASE

For leasing information for Trowbridge Crossings contact:

Amy Richter-Perkins

Shawn H. O’Brien,

SITE

SUBWAY FRESH TYME WENDYS

Trowbridge Rd.

CCIM

Senior Vice President | Brokerage Services +1 517 319 9220 shawn.obrien@cbre-martin.com

496

TACO BELL

127

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

AMTRAK

Harrison Rd.

Senior Associate +1 517 319 9248 amy.richter-perkins@cbre-martin.com

MICHIGAN STATE UNIVERSITY

• 10,683 SF retail center with suites up to 3,356 SF available • Two end-cap suites available, one with drive-thru (2,366 SF) and one with patio seating (3,356 SF) • US-127/Trowbridge interchange development • Featuring the new hotel Springhill Suites by Marriott • Walking distance to MSU campus, Breslin Events Center and East Lansing Amtrak Station • Nearby retailers include, Fresh Thyme Farmers Market, Wendy’s, Taco Bell, Tim Horton’s, Subway and more!

Part of the CBRE affiliate network

J U LY 2 0 1 7

Part of the CBRE affiliate network

Resounding Golf Clap Please... As we thank our 2017 Sparrow Health Classic sponsors and golfers, whose support is an investment in the health of our region. Generously presented by SEI Investments Platinum Sponsors Cisco Systems, Inc. Sentinel Technologies Cart Sponsor Auto-Owners Insurance 19th Hole Dinner & Awards Sponsor Client Financial Services Lunch Sponsor Kitch Drutchas Wagner Valitutti & Sherbrook Flag Sponsors Comprehensive Pharmacy Services Gunthorpe Plumbing & Heating Beverage Cart Sponsor Dewpoint Gold Sponsors The Christman Company Foresight Group International Union of Operating Engineers, Local 324 Lansing Sanitary Supply Michigan Regional Council of Carpenters Mid-Michigan Orthopedics Milliman MSU Federal Credit Union Townsquare Media

Driving Range Sponsor CBRE | Martin Putting Contest Sponsor Demmer Corporation River Caddis Development

Silver Sponsors Agfa HealthCare Aramark Healthcare Technologies G/S Solutions Hayes Green Beach Memorial Hospital Imprivata John E. Green Company Kaufman Hall & Associates Lenovo USA LJ Ross Associates Michigan Health & Hospital Association NBS Commercial Interiors North Grand River Cooperative Pro-Assurance Corporation Service Express, Inc. Superior Electric of Lansing TEKSystems UAW Region 1D Volunteer Sponsor Craneware, Inc. Hole-In-One Sponsor Okemos Auto Collection Hospitality Sponsor SoftwareONE USA

See you June 2018 Visit SparrowFoundation.org/HealthClassic for a complete list of our sponsors and a photo gallery from this yearâ&#x20AC;&#x2122;s event.

a n s i n g

s i n e s s

w s

c o m

The Evolution of

HEALTH CARE The health care industry is growing thanks to hospital development

40%

of the nationâ&#x20AC;&#x2122;s physicians

OR 140,000 providers

ARE HOSPITAL-EMPLOYED

ORTHOPEDIC SURGEONS

generate the most revenue for hospitals

On average, a full-time orthopedic surgeon brings

$2.7 MILLION

marking a 50% increase in hospital employment since 2012

Primary care physicians present the best return on investment for hospitals Average starting salary

$198,000 IN 2015

Primary care physicians generated close to

7.5 TIMES

that amount in hospital revenue

National health care spending is fueling the industry to new heights The average cost per inpatient day

$2,346 & (nonprofit hospital)

$1,798 (for-profit hospital)

Annual spending on prescription drugs in the U.S. is estimated to rise

22%

over the next five years

In 2014 National health care expenditures rose

5.3% $9,523 or

to $3 trillion

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

per person J U LY 2 0 1 7

reaching

$400 BILLION in spending by 2020

Specialist positions are becoming more valuable than ever

TOP 4 HIGHEST PAYING POSITIONS (Based on average salary)

CARDIOLOGY

ORTHOPEDIC SURGEON

GASTROENTEROLOGY

$461,364

$447,143

$464,500

$441,421

(invasive)

(non-invasive)

Health care is going mobile to provide 24/7 care and access to information

72%

smartphone users

52%

track health-related information on their devices

of physicians access drug information from smartphones

61%

have a health app to track dieting, fitness, prescription management & more.

63%

OF THE 100,000 MOBILE HEALTH APPS

85%

36%

access medical research from tablets

ARE FOR WELLNESS

15% ARE FOR MEDICAL

44% communicate with nurses and other staff daily via smartphone apps and software

of smartphone users believe app-enabled patient portals are the most effective tool in patient engagement

Compiled by Adam Lansdell | Graphics by Nikki Nicolaou Sources: Forbes, Michigan Department of Human Health & Services, Centers for Medicare & Medicaid Services, Merrit Hawkins, Reuters, Avalere Health, Business Insider L

a n s i n g

s i n e s s

w s

c o m

REAL ESTATE

LOOKING BEYOND RETAILER HEADLINES:

IS BIG-BOX DEAD? BY SHAWN H. O’BRIEN, CCIM

National retail chain closings are more frequent then they have been in a decade. This chronic doom and gloom sentiment in the headlines ignores new and ongoing growth opportunities for the industry. News media has claimed that Big-Box is dead, their reasoning: the rise of ecommerce has reduced the need for brick and mortar space, but traditional retail is not dead. National retail vacancy rates remain at 9.99 percent according to CBRE research. While it’s true that stores are closing, absorption is healthy with reduced demand for new construction.

SHOPPING TRENDS

Ecommerce has established its place in the landscape accounting for 8.5 percent of all retail sales. This percentage is rapidly growing at a range of between 12 percent and 17 percent annually. Brick and mortar retail sales account for 91.5 percent, including big ticket items such as automobiles, and is still growing at a rate of 4.1 percent annually. The numbers show that ecommerce will not overtake brick and mortar any time soon, but many experts agree it will eventually make up 35 percent of apparel sales and other categories, which will continue to drive change in the retail market. Amazon’s recent announcement to purchase Whole Foods is testament to the importance of storefronts in the retail landscape. Big-Box retailers such as Walmart and Kohl’s are using a popular trend known as “Click and Collect,” allowing customers to purchase online and pick up at the store. Click and Collect leverages retailers’ brick and mortar presence while providing the convenience of ordering online. Another shopping trend used by Big-Box retailers is the “Treasure Hunt.” T.J. Maxx, HomeGoods and Marshalls have mastered the art other retailers are trying to replicate. The Treasure Hunt technique consistently rotates specialty

Farmers Market, as well as local companies such as Horrocks Farm Market, offer prepared foods, made-to-order foods, self-serve food stations, cafés and restaurants known as “Grocerants.” Oftentimes these offerings include locally sourced, farm-to-table food and beverage options supporting the community and appealing to the local customer base.

boutique items and other merchandise that will not be replaced. This technique keeps shoppers visiting at a higher frequency in search of the onetime find while promoting customer loyalty.

MALL TRENDS In the 70s and 80s, mall developers could justify an enclosed regional mall for every 250,000 in total area population. Anchor tenants such as JCPenney, Macy’s and Sears, among others, were not only selling a larger variety of goods but were also a destination experience. Over the past several years, these same large anchors have closed hundreds of stores nationally. The BigBox spaces are now being used or redeveloped by specialty retail shops, entertainment venues, restaurants, health care groups, educational facilities and, in some cases, multi-housing. While it is a forgone conclusion that many regional malls will need to be redeveloped or eliminated, their likely replacements will include some type of mixed-use space, including officemedical, retail and entertainment destinations. GROCERY TRENDS: CATERING TO AN URBANIZED COMMUNITY Today’s grocers are driving customer traffic through digital coupons, online promotions and use of social media, changing the way they develop their brand.

In addition to expanding the super store concepts as Kroger is doing, grocers are looking for opportunities to expand with downsized footprints in urbanized communities. They see major growth opportunities in densely populated areas including the opportunity to cultivate a community culture by creating a convenient, comfortable destination space that caters to today’s lifestyles, millennial population, healthconscious consumers and families. Growth among national retailers is, for many companies, positive. Nordstrom is opening 16 new stores (15 Nordstrom Rack stores) in 2017. Costco, a leader in the shopping warehouse concept, is opening 15 new stores in 2017 including two in Michigan (East Lansing and Traverse City) and The TJX Companies, Inc. plans to open 197 new stores in 2017-2018. These are just a few of the Big-Box traditional brick and mortar retailers opening new locations. With retailers focused on technology, urbanized community trends and the true continuity of your experience or “omni-channeled,” commercial real estate needs are continually evolving, specifically in the mall concept and Big-Box retail. Through this focus, new growth and redevelopment opportunities are emerging, impacting how real estate will be used over the next 20-30 years.

National and regional grocers such as Whole Foods Market, Kroger, Meijer, Fresh Thyme

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

J U LY 2 0 1 7

Shawn H. O’Brien, CCIM, is the Senior Vice President/Brokerage Services at CBRE|Martin. CBRE # 1 in Commercial Real Estate Worldwide

a n s i n g

s i n e s s

w s

c o m

WHAT KIND OF FIRSTHAND EXPERIENCES AND KNOWLEDGE DO YOU BRING TO YOUR ROLE OF CEO AT MCLAREN GREATER LANSING? Even in 2017, it remains relatively unusual to have health care CEOs with a background in clinical care. The fact that I remain a licensed registered nurse provides me with a myriad of firsthand experiences that help me to make better decisions as a health care leader. Our foundation at McLaren is “Every Patient, Every Time”, which means that — as an organization — we strive to provide an error-free, quality experience backed by the field’s best practices for every single patient encounter. Today, it isn’t enough to be competent; the goal is to surround the patient with compassion and empathy, while simultaneously providing a technically superior outcome. MCLAREN HAS A BIG FOCUS ON INNOVATION. TALK ABOUT HOW THAT FITS INTO THE COMPANY’S MISSION AND HOW THAT IS EXECUTED DAILY. You cannot separate quality health care from innovation: the former cannot be achieved without the latter. Often, innovation takes the form of capital expenditures for recent technology, or it takes the form of a leadership team challenged constantly to think outside the proverbial health care box. Capital is easy, as it just takes money and a willingness to spend it. The more challenging innovators in health care, however, are the ones asking constituents to think of innovative ways to address ongoing issues. You’ll see the most progress in this area is prompted by process changes via LEAN engineering or change management. Simply asking people, ‘why do we always do it this way?’ can often lead to dramatic improvements in patient care and experience. WHAT ARE THE ADVANTAGES OF WORKING IN A MIDDLE-SIZED CITY LIKE LANSING?

BY SARAH SPOHN | COURTESY PHOTO

TOM MEE President and CEO of McLaren Greater Lansing YOU STARTED YOUR CAREER IN ROYAL OAK, HAVE EXPERIENCE IN THE METRO DETROIT MARKETS AND NOW HAVE BEEN IN LANSING SINCE 2012. HOW WOULD YOU DESCRIBE THE CAPACITY AND CAPABILITY OF LANSING’S HEALTH CARE OPTIONS, INCLUDING MCLAREN, TO ITS ROUGHLY 114,000 PEOPLE? I worked in the metro Detroit health care market beginning with my bedside nursing career, going 28

back to 1985. The market was saturated with health care providers, all pushing themselves to improve and gain an edge. Lansing is a very similar market, and is truly blessed to have multiple hospital providers challenging each other to get better. In our business, if you’re not improving, you are declining. McLaren Greater Lansing has been extremely fortunate to call the Greater Lansing area our home for more than a century, and we look forward to the next 100 years.

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

J U LY 2 0 1 7

I’ve been in the Lansing region now since 2013; the last two years as President and CEO. Not long ago, I had the opportunity to leave Lansing for other duties, but I elected to stay and, in fact, hope to finish my health care career in Lansing. I describe this area as a big city with the feel of a small town. When I arrived here in 2013, I was amazed at how many Lansing stakeholders reached out to me to offer their help. It was then that I realized everyone pretty much knew everyone else, and that community support is what will keep me here. We have the capital, we have two outstanding health systems that drive each other to excellence and we have community leaders who donate their personal time and resources to health care-related endeavors. I couldn’t ask for more.

BEHIND THE SCENES

BACK IN 2014, MCLAREN WAS FORCED TO LAY OFF EMPLOYEES, REDUCE HOURS AND CUT BACK TO OFFSET LOWER PATIENT COUNTS AND LESS REVENUE. WHERE DOES MCLAREN STAND TODAY IN TERMS OF EMPLOYEES? Like every other health care system recently, we found ourselves faced with a health care environment that reimburses less than previously, with a much lower utilization on inpatient hospital stays. We made some tough decisions in 2014 with the intent of creating a leaner, more efficient organization that would position us to succeed in the future. Since our rightsizing effort in 2014, we have seen growth in most every major service line along with associated volumes of patients. Today, we have more than 2,000 employees in various roles and disciplines, far more than we had even two years ago. WHEN IT COMES TO HIRING EMPLOYEES IN THE FIELD, ARE YOU FINDING QUALIFIED CANDIDATES? The answer is yes and no. McLaren is not alone facing the challenges of a reduction of licensed health care providers, specifically registered nurses and physicians. Today, health care systems not only compete for patients and services, but employees as well. I’ve made it no secret at McLaren that my top priority is employee engagement. At McLaren, we don’t choose candidates to work with us; they do the choosing. One of the keys to achieving success in this field is having an engaged and active workforce, and the key to engagement is an alignment of principles and values in which we operate. DO YOU SEE THOSE EMPLOYMENT TRENDS CHANGING IN THE FUTURE? As it relates to the recruitment and retention of licensed providers, unfortunately – no, I do not see that changing in the short term. We find ourselves in a time where not as many of our best and brightest young people are choosing a career in the health care sector. Our work is tough. It requires not only a real and substantial monetary investment in education, but also an emotional investment to serve a community at potentially the lowest point in their lives. While admittedly cliché, there is a “calling” involved when one decides on a health care career. As it relates to the hundreds of other positions within the hospital setting, technology will largely drive those changes. We’re entering a time where every employee doesn’t necessarily need to be on campus to help, so we see substantial change as it relates to hours of work and the location of that work, due to legitimate demands of the current workforce.

GIVEN YOUR EXPERTISE, WHAT ARE YOUR THOUGHTS ON THE CURRENT SITUATION/OUTLOOK OF U.S. GOVERNMENT’S AND PRESIDENCY’S STANCE ON HEALTH CARE REFORM? This is a touchy one, as it’s difficult to answer given the uncertainty of the situation. What I know is that I entered a career in not-for-profit health care because of a deep-rooted interest in helping others. We now face a political climate where access to health care services for certain people is being threatened, which is inconsistent with our altruistic mission of helping others. The only thing I can say, with absolute certainty, is that the hospital will continue to operate as we always have, embracing each patient with an unambiguous goal of providing an exceptional service, every time. WHERE SHOULD IT BE HEADING? One can debate the implementation of the Affordable Care Act (ACA), but what isn’t subject to debate is that it forced providers to collectively look at outcomes — patient experience, quality metrics, etc. — rather than volumes. Put simply,

it forced us to look harder at how we provide care, and not how often we provide care. I firmly believe that providers who give the most value, as defined by both health outcomes and cost, must be part of the reimbursement discussion into the future. The choices we make in health care should essentially be vetted as strenuously as the choices we make in houses, cars, etc. HOW WILL THE PROPOSED CHANGES AFFECT MCLAREN EMPLOYEES AND PATIENTS? The 2017 American Health Care Act (AHCA) still needs approval, so it’s a bit too early to opine. We’ve spent the past decade adjusting to changes under the ACA, so any changes under the AHCA will take time to evaluate and implement as well. Using the repeal of Medicaid expansion as just one example, the state of Michigan and its health care organizations would have to readjust to a model where the uninsured again seek basic care in the expensive hospital setting, rather than in an appropriate physician office setting. This conversation with Tom Mee has been edited for space and clarity.

“Whether it’s for replication purposes, disaster recovery or business continuity, Everstream’s robust fiber-optic network and 24/7 customer support is built to meet your needs.”

Bill Major, VP of Sales and Marketing, Everstream

Faster Fiber. Better Business. Enterprise to Wholesale. Networking to high-speed internet. Everstream is your Business Fiber Network.

everstream.net

a n s i n g

s i n e s s

w s

c o m

outfits and farms. A healthier workforce is a more productive one, and businesses have noted the improvement. The drop in the uninsured rate had another important effect: it slashed the health insurance tax businesses pay to subsidize medical care for the uninsured. Before Medicaid was upgraded, those without insurance would put off going to the doctor for financial reasons. They let health problems fester and would seek help in the emergency room, where care is then even more expensive. A substantial proportion of this urgent care went unpaid for, and it was bankrupting the healthcare system. To stay afloat, medical centers hiked rates on insured patients, which increased health insurance premiums for businesses; that took money from job creation and growth. Still, many hospitals went under, and many underserved communities lost their only provider.

MICHIGAN IMPROVES

MEDICAID & HELPS

BUSINESSES BY STEVE JAPINGA

Medicaid and the business community may not sound like they have much to do with each other. The upgrades to Michigan’s Medicaid program, however, are achieving important business objectives, including controlling insurance costs and fostering a productive workforce. Most people associate Medicaid with the unemployed. And it’s true that Medicaid supplies healthcare to the indigent. Medicaid is also the largest provider of long-term care for both the elderly and disabled individuals. But that’s only part of the mission. Medicaid primarily helps working families. Three in four Medicaid enrollees, both adults and children, come from a family with at least one person active in the workforce. They go to a job and earn a paycheck, but it doesn’t come with benefits. Lack of benefits is becoming more common. Different employment structures such as contract jobs, hourly work and “gig economy” 30

arrangements are increasing; many of these structures lack health insurance, and the wage scale can make it tough for employees to afford private coverage. Healthy employees remain a vital asset to Lansing’s economy, and this is where our state’s Medicaid enhancements come in. The Healthy Michigan initiative allowed more than 600,000 legal residents to buy Medicaid coverage at a price they could afford. The change caused a drop in the uninsured rate from 11 percent to six percent. Today, more hard-working people obtain preventative care to avoid disease, checkups to detect problems early and prescription medicines to control chronic conditions. This timely care is reducing overall health system costs. It’s also keeping employees well, so they don’t miss work days or leave a job due to illness or infirmity. That’s great for Michigan companies, ranging from restaurants and retailers to construction

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

J U LY 2 0 1 7

Medicaid is reversing the trend. The program is now responsible for one-in-three dollars going to safety net hospitals in underserved areas. Reliable payments mean hospitals don’t have to continue raising fees, and the increase in health insurance rates can slow down. Finally, Medicaid is building a better workforce for tomorrow. Making sure children have access to medical care, regardless of their family’s income, is fundamental. Kids who rely on Medicaid do better academically, they are more likely to graduate high school and they are less likely to suffer from chronic conditions or disabilities later in life. They even get better jobs at higher wages. Today’s Medicaid-covered kids will be more educated, more capable employees tomorrow and will fuel Michigan’s economy for decades to come. They will also be less likely to depend on government assistance, so businesses and individual taxpayers will see savings down the road. A majority of our state legislators and Governor Rick Snyder saw these advantages of enhancing Medicaid, and they acted accordingly. Four years later, businesses are glad they did; we only hope that they keep up the effort and the progress. Steve Japinga is Director of Government Relations for the Lansing Regional Chamber of Commerce. He is responsible for developing and managing the Chamber’s policy priorities as well as monitoring local, state, and federal issues that may impact the business community and the Greater Lansing region. He is a graduate of Michigan State University and lives in Lansing with his wife Katherine and dogs, Charlie and George.

You’ve Got Time for Coffee with a Business Banking Expert Managing a business is a never-ending job, let alone trying to keep up with the finances. Between payroll, deposits and invoices, stopping for a cup of coffee can seem like a luxury. That’s where we come in – you need someone with business banking expertise to provide solutions that save time and give you the flexibility to manage your banking when and where you want to. We offer a variety of electronic business services, like Cash Management, remote deposit capture, and SmartPay Express that will give you more time in the day to manage your business. Give us a call today, and you’ll be able to enjoy a cup of coffee and your favorite donut every morning.

Visit ubmich.com or call to set up an appointment at 517-646-9095.

We do more for your business. UBmich.com 800.974.3273 NMLS#488568

a n s i n g

s i n e s s

w s

c o m

ECONOMY SUPPLY:

COMPETITIVE

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

In a previous column, it was shown that demand for a single product in a competitive market, where there are many consumers or buyers, is a schedule in which the lower the price the larger the quantity purchased. What about the supply — or sellers — side of the same market? The market supply is the sum of all the sellers in that market and each seller’s supply is rooted in production analysis that need not detain us here. A common proposition is that the higher the price, the larger the quantity that sellers are willing to provide. This applies to any commodity sold on a competitive market. Table 1 below provides a hypothetical relation between price of milk and the quantity of milk supplied, called a supply schedule. Table 1

THE MARKET SUPPLY OF MILK Point

Price of Milk

Quantity of Milk Supplied

(Dollars per Gallon)

(Millions of Gallons)

Points A, B and C show three price-quantity combinations in the table. It shows a direct relation between the price and the quantity 32

suppled: the higher the price, the greater the quantity supplied as sellers are willing to part with a greater quantity of the product. If we allow enough time for adjustment, the increase in quantity as the price rises can be even greater. This is because farmers can increase the size of their herds in the case of milk or the size of their plantations in the case of apples. Readers that are comfortable with geometric setting can draw the table on a two-dimensional graph where price is shown on the vertical axis — by tradition — and quantity on the horizontal axis. The outcome will show a curve sloping upward and to the right, known as a supply curve or schedule. As in the case of demand analysis, the most important analysis in case of supply is the distinction between movement along the supply schedule and shift in the entire schedule. Movement along the schedule shows by how much the quantity supplied increases (decreases) for a given increase or decrease in the commodity’s own price. A shift in the schedule shows how much the quantity supplied increases or decreases at each price. An increase in supply means a rise in quantity at each price, and a decrease in supply shows a decline in quantity. A hypothetical increase in supply is shown in Table 2.

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

J U LY 2 0 1 7

Table 2

AN INCREASE IN THE SUPPLY OF MILK Point

Price of Milk

Quantity of Milk Supplied

(Dollars per Gallon)

(Millions of Gallons)

A-1

B-1

C-1

WHAT MIGHT CAUSE A CHANGE IN THE SUPPLY SCHEDULE OF ANY COMMODITY? Improvement in Technology: In the case of milk, it may be a more productive way of raising cows; in the case of oil production, it may be an improved drilling technology; in the case of machinery, it may be new lubricating methods, and so on. These factors have the effect of reducing production costs of the commodity supplied and inducing sellers to increase the quantity supplied at every price. Given enough time it may also induce new firms, whose production costs were too high before, to come into the business and further increase supply. That is, in fact, how an industry expands. Changes in the prices of a productive factor (inputs): Suppose farm wage rates decline

ECONOMY

because of the availability of new migrant labor. Then production becomes profitable at lower prices and that would raise the quantity offered at current prices. Conversely, if the cost of labor rises, say because a renegotiated union contract, supply declines. The same applies to the cost of all factors of production: wages (labor), rent (land and natural resources), interest (capital) and profit (enterprise). Anything that reduces (raises) production costs through either productivity advance or reduction of pay increases (decreases) supply. Another way of looking at this: A cost reduction makes it possible to offer the current level of supply at a lower price, so greater supply can be offered at a higher price. Supply can expand or shrink in the long run more than in the short run, because production facilities (e.g. farms, factories) are fixed in the short run and only the intensity of their utilization can change in either direction; whereas, in the long run, the size of the facilities themselves can change in either direction, and companies can enter or leave the industry. CHANGES IN PRICES OF OTHER GOODS Suppose a manufacturer could use his production equipment to produce tennis

balls or racquet balls. The two types of balls are different and serve different games. But they are substitutes in production, in the sense that output of one can be expanded at the expense of the other by switching production equipment to it. The production of our primary interest is racquet balls. A rise in the price of tennis balls would induce producers to switch facilities from racquet ball to tennis ball production. At any given price of racquet balls, fewer of them would be supplied. The supply of racquet balls would decrease. The analysis above illustrates a relation between two goods that are substitutes in production: The production of one can be expanded at the expense of the other. In contrast, products can be complementary in production, in the sense that they are produced jointly. For example, beef and liver are produced jointly and in fixed proportions. Suppose that liver is the commodity of our primary interest, and there has been a rise in the price of beef. More beef would be produced. But as a direct consequence, there would be an increase in the supply of liver: At any given price of liver, a greater quantity of it would be supplied.

In sum, when two goods are substitutes in production, a rise (decline) in the price of one reduces (increases) the supply of the other; when two goods are complements in production (produced jointly), a rise (decline) in the price of one increases (decreases) the supply of the other. Addendum to last months column: Last monthâ&#x20AC;&#x2122;s column dealt with the four types of industry structures. I would like to add a sub-category of oligopoly called duopoly. It is a two firm industry. The example often cited is the production of large jet-passenger planes by Boeing Co. of the U.S. and the European Airbus of four European countries combined. The conventional wisdom is that the world market cannot support more than two such companies. 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

E Y D E C O M PA N Y 517-351-2480 COMMERCIAL RETAIL APARTMENTS View all of our available properties at eyde.com or call us at 517-351-2480.

eyde.com

4700 S. Hagadorn

Eyde Parkway

a n s i n g

s i n e s s

w s

c o m

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.

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

April ‘17

March ‘17

Feb. ‘17

Jan. ‘17

Sales

54.5

57.4

52.8

40.5

Inventory

54.1

59.2

61.1

Prices

53.2

48.4

52.7

53.3

Marketing/Promotion

60.1

56.8

60.6

Hiring Plans

55.5

50.7

April '16

48.4

April ‘17

March ‘17

Feb. ‘17

Jan. ‘17

April '16

Civilian Labor Force (1)

(P)249.3

(p)250.0

251.8

250.4

248

51.2

Employment (1)

(P)242.2

(p)240.8

240.9

239.6

239.1

63.1

Unemployment (1)

(P)7.1

(p)9.2

10.9

10.8

888.8

57.6

Unemployment Rate (2)

(P)2.9

(p)3.7

4.3

3.6

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.

May ‘17

April ‘17

March ‘17

Feb. ‘17

May '16

Spartan Motors

8.6

8.25

6.65

6.40

General Motors

33.93

34.64

35.36

36.84

31.28

Emergent BioSolutions

31.93

29.91

29.04

31.38

43.88

Neogen

63.29

62.33

65.55

64.86

49.37

Gannett (Lansing State Journal)

7.85

8.36

8.38

8.72

15.62

Gray Broadcasting (WILX)

12.05

14.65

14.5

13.60

11.82

36.4

70.15

68.95

53.22

4.6

Media General (WLNS)*

57.2

3.1 2.9

Bank of America

22.41

23.34

23.59

24.68

14.79

UPS

105.97

107.46

107.3

105.76

103.09

Home Depot

153.51

156.1

146.83

144.91

132.12

Kroger**

29.78

29.65

29.49

31.80

35.76

Macy's Inc.

23.5

29.22

29.64

33.22

33.21

Wal-Mart Stores

78.6

75.18

72.08

70.93

70.78

April ‘17

March ‘17

Feb. ‘17

Jan. ‘17

April '16

(P)236.0

(p)234.3

234.1

232.8

233.2

12-month % change

(P)1.2

(p)2.1

2.1

3.4

3.1

Mining, Logging & Construction (3)

(P)7.1

(p)6.7

6.5

12-month % change

(P)1.4

(p)3.1

4.8

3.2

6.1

Manufacturing (3)

(P)20.5

(p)20.4

20.4

20.8

12-month % change

(P)-1.4

(p)2.5

2.5

9.5

7.2

Trade, Transportation & Utilities (3)

(P)36.7

(p)36.8

36.4

37.1

12-month % change

(P)0.8

(p)2.5

1.7

Information (3)

(P)2.9

(p)2.9

2.9

Total Nonfarm (3)

12-month % change

(P)-3.3

(p)-3.3

-3.3

Financial Activities (3)

(P)15.9

(p)15.9

15.9

15.4

12-month % change

(P)3.2

(p)1.9

1.9

Professional & Business Services (3)

(P)22.1

(p)21.9

22.1

22.3

22.9

12-month % change

(P)-3.5

(p)-2.7

-1.3

1.4

4.6

Education & Health Services (3)

(P)32.5

(p)32.6

32.5

32.2

31.9

12-month % change

(P)1.9

(p)2.8

2.8

2.5

3.9

Leisure & Hospitality (3)

(P)20.7

(p)20.3

19.9

19.8

19.2

12-month % change

(P)7.8

(p)9.7

8.7

9.4

1.1

Other Services (3)

(P)10.4

(p)10.4

10.3

10.2

12-month % change

(P)2.0

(p)2.0

Government

(P)67.2

(p)66.4

67.2

66.4

12-month % change

(P)1.2

(p)1.1

1.2

1.6

1.4

(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

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

*Nexstar acquired Media Genera in January; **Adjusted for stock split

TRI-COUNTY HOUSING STATISTICS: APRIL 2017 Source: Realtor.com research, June 5, 2017

Ingham

Clinton

Eaton

Homes for sale

1,569

416

655

Homes for rent

208

Median listing price

130,000

$194,000

$150,000

Price per square foot

$76

$89

$76

Median closing price

$114,000

$173,000

$135,000

-19%

-9%

-22%

Median days on market* Percent change*

*Includes only single family homes and condo-townhomes, excludes pending listings

J U LY 2 0 1 7

LANSING AT A GLANCE

CLINTON COUNTY WORKPLACES AND WAGES, 3RD QUARTER 2016 Source: Bureau of Labor Statistics second quarter 2016 Census of Employment and Wages

Next Month: Eaton County

Number of Workplaces

Sept. '16 Employment

Total 3rd quarter wages

Average Weekly Wages

Total, all industries

1,132

14,868

$146,979,461

758

Service providing

854

10,140

84,700,339

635

Goods producing

278

4,728

62,279,122

1,026

Natural resources and mining

948

7,093,203

601

Construction

163

1,500

19,384,958

1,001

Manufacturing

2,280

35,800,961

1,213

Trade, transportation, and utilities

225

3,966

33,997,150

658

Information

664,655

918

Financial activities

105

1,094

10,942,696

768

Professional and business services

176

1,154

13,856,598

919

Education and health services

102

1,510

12,970,012

649

Leisure and hospitality

1,684

7,401,390

325

Other services

133

641

4,643,856

557

223,972

512

Unclassified

G LANSIN

BEST CVB IN MICHIGAN

Voted by MSAE meeting planning professionals.

AFFORDABLE Venues & rates for every budget.

ACCESSIBLE

Central location boosts attendance.

www.LANSING.org

Amy Moon, CMP, CTA amoon@lansing.org 517.377.1434

a n s i n g

s i n e s s

w s

c o m

BUSINESS CALENDAR

JULY 2017 JULY 1 MAKE 6 FIGURES YOUR FIRST YEAR, LANSING Make Moves Corporation invites you to attend their real estate income opportunity webinar. Let us empower you to make moves toward financial freedom and living life on your own terms. The webinar will cover paying off a mortgage in as little as 7 years, fixing and flipping properties, getting a 10–15 percent return on investments and managing property the right way. Visit eventbrite.com to register and find more information.

JULY 4 TECH TUESDAY AT THE TIC, EAST LANSING Tech Tuesday is a weekly meeting just for developers. They meet every Tuesday at 7 p.m. at the Technology Innovation Center in East Lansing. Visit purelansing.com for more information.

give you the skills necessary to become an Excel master. Spend the day learning how to improve the quality and accuracy of your spreadsheets, use the Visual Basic Editor, discover the most important database functions, develop PivotChart and uncover the easiest ways to collect and format data. This seminar is $99 to attend. This seminar will be held at the Causeway Bay Hotel, at 6820 South Cedar Street. Visit events.pryor.com for more information and registration details.

JULY 11 THE INC STARTUP ACCELERATOR, EAST LANSING Build your launch skills from scratch with personal input from coaches and advice from professionals. This is an online course, but you can feel free to meet with other entrepreneurs in the 300 room to follow along. Visit purelansing. com to find more information.

JULY 7

JULY 12

WAKE UP OLD TOWN, OLD TOWN Wake Up Old Town is a free and informal networking opportunity for professionals from all over Lansing. Come together and share your lofty ideas and opportunities to help businesses and Old Town thrive. Wake Up Old Town is held at rotating locations around Old Town. This month the meeting will be held from 8:30 to 10 a.m. at Creole, 1218 Turner Street. Visit iloveoldtown.org for more information.

WHAT IS MY BUSINESS WORTH? HOW TO VALUE YOUR COMPANY, LANSING There are many factors involved when trying to determine what your business is worth. Whether you are interested in selling your business now, plan to prepare for that eventuality or simply want to know how much it is worth, enjoy this three hour seminar as you explore useful business valuation techniques. Visit michamber.com to find more information and registration details.

JULY 10

JULY 12

MICROSOFT EXCEL BASICS SEMINAR, LANSING This one-day seminar is for beginning to intermediate users. Learn how to set up Excel to meet your personal needs at work or home, and customize its many features so it works for you. Master Excel formulas and functions, organize the best possible worksheets, use exciting graphs and charts and learn to solve common printing problems. This seminar will be held at the Causeway Bay Hotel, at 6820 South Cedar Street. Cost of attendance is $79. Find more information and registration details by visiting events.pryor.com.

NATIONAL ASSOCIATION OF CAREER WOMEN MONTHLY MEETING, LANSING The NACW is a nonprofit organization devoted to the enhancement of woman’s personal and professional development. Their mission is to create an enriching environment for career women to share, grow and build professional and personal relationships that able them to reach their full potential. Lunch meetings are the second Wednesday of each month from 11:45 a.m. to 1 p.m. at the Urban Beat Event Center. Reserve your luncheon spot as a guest or member by visiting nacwonline.org/chapters/Lansing.aspx.

JULY 11

JULY 13

MICROSOFT EXCEL BEYOND THE BASICS SEMINAR, LANSING This seminar is for those who understand the basics of Excel. This one-day seminar will 36

PSYCHOLOGY OF A MILLENNIAL: FIND, TRAIN & MOTIVATE, LANSING Millennials are a brilliant, yet ridiculed demographic who have the most untapped

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

J U LY 2 0 1 7

potential; if you’re not listening or helping them, you’ll miss it. This 60-minute webinar will break down the psychology of a millennial to help identify how to find, train and motivate millennials in the workplace. Visit michamber.com to find more information and registration details.

JULY 18 STARTING A BUSINESS IN LANSING, LANSING This is a free course designed for individuals who are considering self-employment, or who may be at the beginning stages of starting a business. Delivered in a workshop format, 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 and services. Startup costs, financing options and business planning are introduced along with the necessary steps to getting started. This workshop begins at 9 a.m. at the Michigan Small Business & Technology Development Center, 309 N. Washington Square. Visit eventful.com to find more information and registration details.

JULY 25 “ME” IN THE WORKPLACE: BEHAVIOR, DISABILITIES, LGBTQ, NLRB & DRUGS, LANSING We are at a point where a combination of laws and societal trends make the individual more important than the team in the workplace. This emphasis on “me” can create havoc in the workplace. Issues arise over such diverse topics as religious accommodation, appearance, LGBTQ status, NLRB involvement and more. Often, the employer’s common-sense answers are flat-out wrong. This 60-minute webinar will dive into employer obligations and employee rights as related to employee behavior, disabilities, transgender concerns, NLRA concerted activity and legalized marijuana. Visit michamber.com to find more information.

JULY 26 THE HATCHING, LANSING Post. Pitch. Win. Post your business idea and gain votes. The top five ideas will be pitched to a live audience. The winner will receive $1,000 in seed funding. The Hatching will take place at the Lansing Brewing Company. Visit purelansing.com to find more information.

NOTABLE NEWS

MSUFCU RENOVATIONS AT DOWNTOWN AND SPARROW BRANCH COMPLETED The MSU Federal Credit Union recently completed renovations of its Downtown Lansing branch, located at 104 S. Washington Square, and its Sparrow branch within Lansing’s Sparrow Professional Building at 1200 E. Michigan Ave. Renovations to the Downtown Lansing and Sparrow branches were made to offer visitors a modern, streamlined look and layout in which

they can complete their personal and businessrelated transactions. Rather than traditional teller lines, offices and a reception desk, visitors are welcomed to a station: a one-on-one space where a visitor directly interacts with a Credit Union employee and can have all requests and questions answered without moving anywhere else for additional services. The new, open layouts provide all the same features as previous branch layouts — such as card printing, account transactions, new accounts, loan applications and more — with the convenience of accomplishing each step in one spot. “The new branch layout engages members and helps foster relationships. The branches now better reflect the brand image and culture of the Credit Union, while also providing members with an enhanced experience each time they visit the Credit Union,” remarked April Clobes, president and CEO of MSUFCU.

Ribbon cutting for MSUFCU's Downtown Lansing branch, located at 104 S. Washington Square.

RYAN STECOVICH JOINS GROWING OKEMOS LAW FIRM The law firm of Fahey Schultz Burzych Rhodes PLC, located in Okemos, Mich., added

another attorney to its growing practice. Ryan Stecovich joined the firm in March 2017 and focuses his practice on labor and employment law, municipal law and general litigation. He is the 15th attorney at the firm, which now STECOVICH serves more than 150 municipalities, drain commissioners, libraries and public authorities, as well as dozens of businesses in its expanding franchise practice. Prior to joining, Stecovich spent 15 years working for two publicly traded companies and one large health-care system focusing on labor relations. During this time, he gained extensive knowledge and experience in handling grievances and arbitrations, negotiating multiple collective bargaining agreements, handling Equal Employment Opportunity Commission (EEOC) claims and unemployment claims, as well as serving as the primary advisor to management in navigating the ever-changing world of labor and employment law.

Successes! 2149 Jolly Road, Suite 200 - Okemos, MI 48864 517.487.9222 - naimidmichigan.com

5100 Marsh Rd., Okemos, 48864

5135 Times Square Dr., Okemos, 48864

8,600 SF LEASED!

SOLD!

L. O. Eye Care

Goldfish Swim School

Ryan Lowe & Logan McAnallen represented Tenant Ed Weaver represented Landlord

Logan McAnallen represented Purchaser Ed Weaver & Jim Vlahakis represented Seller

1754 Central Park Dr., Okemos, 48864

5503 Saginaw Hwy., Lansing, 48917

SOLD!

27,000 SF LEASED!

Logan McAnallen represented Purchaser Ed Weaver & Jim Vlahakis represented Seller

Jim Vlahakis represented Tenant Ed Weaver represented Landlord

Multi-Tenant Retail Center

Ashley Furniture

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

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

“Ryan’s experience provides him with a broad understanding of the legal issues facing our public and private employer clients. We are delighted to have Ryan join our firm to help us serve our growing list of clients,” said Mark Burzych, president of Schultz Burzych Rhodes PLC . “He brings extensive experience in labor and employment law to our team.”

INVEST MICHIGAN INTRODUCES PREM BODAGALA AS DIRECTOR Invest Michigan, fund manager for the Michigan Pre-Seed Fund 2.0, has added Prem Bodagala as director of Investments.

In his new role, Bodagala will be responsible for directing the origination of investments in the health-care sector, as well as account management for the client portfolio. Prior to joining Invest Michigan, Bodagala served as principal at Innovation Insights Consulting, portfolio manager in the Entrepreneurship, Innovation and Venture Capital Group at the MEDC, an associate at Michigan Accelerator Fund managed by Charter Capital Partners and manager at Avoca Physician Billing Services. Bodagala holds a Master of Science in Information with a specialization in health informatics and human-computer interaction from University of Michigan, an MBA from Grand Valley State University and a Bachelor of Business Administration with a specialization in finance from Western Michigan University.

Invest Michigan, which manages the Michigan Pre-Seed Fund 2.0 of $10.5 million from the MEDC, has completed 57 investments in 35 companies across the state of Michigan. The long-term goal of the Pre-Seed Fund is to secure the best investments that produce the highest potential return and serve as capital for further investments in startups across the state.

FRASER TREBILCOCK ATTORNEY MARK E. KELLOGG APPOINTED PRESIDENT OF HIGHFIELDS BOARD OF DIRECTORS Fraser Trebilcock attorney Mark E. Kellogg was recently appointed to the presidency of

CT NE I O

CON

Invest Michigan is a nonprofit corporation that makes and manages investments into high-tech early stage companies across Michigan. The mission of each investment is to turn innovative, early stage Michigan tech companies into viable businesses that expand and strengthen the state’s economy. The Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (MEDC), makes this investment fund possible.

“The Pre-Seed Fund is intended to help innovative start-up companies obtain initial financing,” said Fredrick Molnar, MEDC vice president of Entrepreneurship and Innovation. “Further strengthening the team with experienced talent will accelerate the financing of more early stage businesses, which helps expand and strengthen the state economy.”

D COF

JOIN US WEDNESDAY, SEPTEMBER 27 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 Dewpoint.

8 - 9 AM SEPT. 27, 2017

DEWPOINT OFFICE INSIDE THE KNAPP BUILDING. 300 S. WASHINGTON SQ. #200 LANSING, MI 48933

RSVP or sponsorship inquiries to ami@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

J U LY 2 0 1 7

PRESENTED BY:

NOTABLE NEWS

the Board of Directors for Highfields Inc. at their annual meeting, held this year on April 26. Kellogg was also re-elected to the Board of the International Association of Attorneys for FamilyHeld Enterprises and serves as chair of the membership committee.

Wilmore, 33, earned a bachelor’s degree from Lawrence Technological University in Southfield in 2006 and attained his master’s degree from the University of Michigan in 2009.

KELLOGG

Highfields is a nonprofit organization that works to provide support services to thousands of at-risk children, parents and organizations throughout Michigan. The multi-purpose, human-services organization touches more than 5,000 people each year. Kellogg’s election to the board continues a long legacy of attorneys from Fraser Trebilcock who have served on the Highfields board. Kellogg has devoted more than 30 years of practice to the needs of families, closely-held businesses, enterprises and estate and business succession planning. He also is a member of the international Family Firm Institute and a member of the Michigan Chapter of the American Association of Attorney-Certified Public Accountants.

ASL ARCHITECTURE|DESIGN ARCHITECT NAMED ONE OF INDUSTRY’S ‘MOST PROMISING FUTURE LEADERS’ Francis Wilmore, an architect at ASL architecture|design of Lansing, has been recognized as one of the top young professionals in the retail design community by an influential trade publication.

During his 10-year career as a designer and architect, Wilmore has worked with brands such as Coach, Michael Kors, Montblanc and Duty-Free Americas. Among Wilmore’s notable projects are leading the team that developed the award-winning design for Hartsfield–Jackson Atlanta International Airport’s largest store and serving as project architect for the renovation of Washington Dulles International Airport’s central court.

DART BANK WELCOMES NEW CREDIT OFFICER Peter Kubacki, president and CEO of Dart Bank, is pleased to announce the addition of John Blossey as vice president and senior credit officer. Blossey brings over 12 years of previous lending and credit experiences BLOSSEY to the bank. He has a Bachelor of Science in Business Administration from Central Michigan University, with a double major concentration in finance and accounting. Blossey also successfully completed the Michigan Bankers Association’s Perry School of Banking. Active in many nonprofit and community service organizations, he has a passion for helping small and mid-sized businesses improve their financial literacy and has worked with many organizations to provide his expertise where needed.

GREAT LAKES CARING NAMED A 2017 BEST WORKPLACE IN HEALTH CARE WILMORE

Wilmore, a 2002 Grand Ledge High School graduate, was named to design:retail magazine’s 40 Under 40 list, which consists of 40 professionals under the age of 40 judged by the publication as the “most promising future leaders” in the retail design industry.

Great Lakes Caring Home Health and Hospice (Great Lakes Caring) has been named one of the Best Workplaces in Health Care for the second consecutive year. Great Lakes Caring ranked number 18 on the 2017 list created by global research and consulting firm Great Place to Work® and Fortune Magazine.

The magazine is considered a leading resource for tracking trends, products and projects that are crafting tomorrow’s most innovative retail environments. Its 40 Under 40 winners are featured in design:retail’s April/May 2017 issue and were recognized during a May 22 ceremony in New York. L

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

Adam Nielsen, chief executive officer of Great Lakes Caring, credits this recognition to the Great Lakes Caring team’s united commitment to their patients and shared passion that is reflected in the positive experience of their employees. “One of our key responsibilities as a company is to be a great place to work for current and future employees,” said Nielsen. “Our employees’ dedication and support are essential to creating

our culture, and we are proud to have these valuable angels on our team.” Research by Great Place to Work® has shown that a high-trust workplace culture benefits not only individual performance but the success of the organization. The leading health-care workplaces outperformed their peers in many important areas such as training, compensation, clear expectations from management and the

emotional health of their workplaces. Top-ranked workplaces are also positive, supportive places, with an average of 93 percent of their employees describing colleagues as friendly and welcoming.

BWL RECOGNIZED AS A RELIABLE PUBLIC POWER PROVIDER FOR SECOND TIME The Lansing Board of Water & Light (BWL) has earned a Reliable Public Power Provider (RP3)® designation for the second time from the American Public Power Association for providing reliable and safe electric service. The award was presented on Monday, May 8 during the Association’s annual Engineering & Operations Technical Conference held in San Antonio, Texas. The RP3® designation, which lasts for three years, recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development and system improvement. Criteria includes sound business practices and a utility-wide commitment to safe and reliable delivery of electricity. The BWL last earned the designation in 2014, joining more than 220 public power utilities nationwide that hold the RP3 ® designation.

SHARED SUCCESS IS HUMANLY POSSIBLE At Manpower, we connect the ambitions of business to the potential of people to promote success in our communities. We’re proud to be a part of ManpowerGroup family of brands, honored for the seventh consecutive year as one of the World’s Most Ethical Companies and the 14th consecutive year as one of the World’s Most Admired Companies.

Director of Electric Transmission and Distribution Wayne Lynn (second from left), Manager of Electric Transmission and Distribution Chris Knudstrup (center) and Engineer Lucas Hayward (second from the right) receive BWL’s RP3 ® award on Monday. They’re flanked by officials from the APPA.

FOUR GREATER LANSING ROTARY CLUBS NAME “ROTARY HEROES” Rotary clubs from Greater Lansing belonging to District 6360 honored four current members who were named “Rotary Heroes” by members of their respective clubs at the District Conference on Friday, May 12, 2017 at the McCamly Plaza Hotel in Battle Creek, Mich.

517.372.0880

manpower.com

Rotary Heroes are identified as current Rotarians that exemplify “Service Above Self” 40

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

J U LY 2 0 1 7

Mind if we take your a hat? As a business owner, you wear a lot of hats. Marketing doesnâ&#x20AC;&#x2122;t have to be one of them. At Extend Your Reach, we offer the full range of integrated marketing services under one roof â&#x20AC;&#x201C; all with the goal of helping you focus on what matters most to you: running your business.

MAGIC-OMETER

Learn more at ExtendYourReach.com

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

in everything that they think, say and do or as a long-time member that has given many years of service. Rotary Heroes being honored this year include: • Rotary Club of Lansing: Duane Vernon • East Lansing Rotary Club: Bob Page • Williamston Sunrise Rotary Club: James Conroy • Haslett-Okemos Rotary Club: Carrie Hindmon

GREATER LANSING SPORTS AUTHORITY CELEBRATES A DECADE OF PROMOTING CAPITAL REGION The Greater Lansing Sports Authority (GLSA) celebrated its 10-year anniversary at an event Tuesday, May 16 at the Demmer Shooting Sports Education & Training Center in East Lansing. The purpose of the event was to celebrate that for over a decade, GLSA and its unique brand have been the leading voice for marketing the region as a sports destination and bringing together local sports entities to grow athletic events, as well as the regional sports culture.

Members of the GLSA staff from its inception to current were on-site for the event. From left to right: Miranda Coleman, Tom Kinder, Meghan Ziehmer, John Young, TJ Hawkins and Mike Price.

From hosting 60 events which brought approximately 27,000 athletes in 2007, the GLSA has grown to hosting 104 events in 2016 with nearly 70,000 athletes, over 300,000 spectators and millions of dollars in economic impact. To date, GLSA has brought over 550,000 athletes to Greater Lansing and over two million spectators. In terms of impact on the local lodging market, over a 10-year period the number of hotel room nights attributed to the sports market in Greater Lansing has grown by 237 percent.

“Ten years ago, key people at the Greater Lansing CVB saw an opportunity to really grow the sports market in the area,” said Mike Price, executive director of GLSA in a statement to those in attendance. “After a lot of research of best practices and feasibility studies we developed a unique brand that would function independently, but with the support of our area’s strong CVB. Over 10 years we have built upon that brand, developed relationships with the community and grown what has become a strong economic driver for the region. We’d like to thank the entire community for all the great support and we look forward to many more years of continuing our mission.” For more information about the GLSA contact Mike Price at (517) 377-1406 or visit lansingsports.org.

CASE CREDIT UNION RAISES OVER $4,500 FOR HOMELESS ANGELS CASE Credit Union employees, led by the Community Activity Team, raised $4,949 for Homeless Angels, a street-based outreach

Over 35 years of experience, in one location! We do it all: New club fitting Custom clubs Swing analysis Putters regripped while you wait Most repairs completed in under 48 hours! Open year round At the beautiful Indian Hills Golf Course 4887 Nakoma Dr, Okemos, MI 48864 517.349.1010 | ihcustomgolf.com 42

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

J U LY 2 0 1 7

Featuring

NOTABLE NEWS

address the issue in our community,” stated Jeffrey Benson, president and CEO at CASE Credit Union. “Our employees are inspired by one common desire: to give back to the communities they serve. Their generous outpouring of support helps make a difference in the lives of families and children currently experiencing homelessness.”

EXIT REALTY’S TOP AGENTS OF GREATER LANSING RECEIVES MONTHLY AWARDS CASE Credit Union employees, led by the Community Activity Team, raised $4,949 for Homeless Angels, a street-based outreach in Lansing.

in Lansing. In addition to the money raised, CASE’s staff donated items for their diaper and clothing bank. CASE Credit Union’s Learning and Development Manager, Darcie Raynor, presented the check and items to Homeless Angels Founder, Mike Karl, during the Credit Union’s April all-staff meeting.

EXIT Realty Select Partners’ Top Performing Agents were recently awarded for their hard work in the month of April. Deanna Powers worked hard finding new homes to list, and ended the month with the most new listings.

“With more and more people facing homelessness, we must all come together to

Deneen Benham had the most offers pending for the month. Leo Maguire had the most closings through the month, and he also had the most closings where he served as the listing and buying agent. “All of our agents have worked hard all month long and these awards are well-deserved recognition of their individual efforts,” said Sue Dickinson, broker and owner of EXIT Realty Select Partners. EXIT Realty is a by-invitation-only company focused on the business of real estate. EXIT Realty Select Partners is located at 2337 Jolly Road in Okemos, Mich. For more information, visit exitselectpartners.com.

NAI MID-MICHIGAN/TMN COMMERCIAL ANNOUNCES LEASING OF MULTIPLE LANSING PROPERTIES NAI Mid-Michigan/TMN Commercial is pleased to announce the leasing of multiple properties in the greater Lansing area. The

BE THE CHANGE YOU WANT TO SEE Become a CTA BY BRENDAN DWYER Have you ever run into someone who lives in Greater Lansing and is uninspired, unenergetic and uninformed about the community in which he or she lives? Maybe it’s worse than that. Maybe that person, is you? Well, it’s a mind-set that is negatively infectious and an attitude the Greater Lansing Convention & Visitors Bureau (GLCVB) is firmly dedicated to fighting. How does one fight the pervasively mundane attitude of the ‘hometown hater’? Through education, of course! What if you could transform the tired into the inspired by learning about area history, getting the inside scoop on new offerings coming to town and surrounding yourself with positive people looking to make a difference? Giving in to the notion that you may not know your hometown as well as you think you do can open your mind. Sound intriguing? These are the goals of the Greater Lansing Certified Tourism Ambassador Program; part of an international program consisting of 42 global destinations, but the first in

the state of Michigan to offer this one-of-a-kind training and invitation into a community of residents who want to be in-theknow themselves, and informative and helpful to countless others. Launched in 2010, over 1,300 area residents have taken the one-time, four-hour class for the low cost of twenty dollars and have come away with a brand-new perspective, and a well-known professional designation (CTA). During the year, there are numerous CTA functions at area attractions, where education and fun networking opportunities continue. “As a CTA facilitator my favorite thing is watching attitudes change during the class,” said GLCVB’s CTA Coordinator, Kristina Kauffman. “People learn new things, make contacts with other classmates and I see the birth of inspiration for new business ideas, partnerships and a whole new way of looking at Greater Lansing.”

Mixers bring area CTAs to unique Greater Lansing locations to network and learn. Statistics back up Kauffman’s assessment of the program. While the international renewal rate for CTAs (you take the class just once but renew your designation annually) is a healthy 58%, the Greater Lansing renewal rate is an unprecedented 78%, the highest in the world.

Ambassadors across the globe and be a positive force for change. Find the date and location of the next local class at www.ctanetwork.com. Brendan Dwyer is the Manager of Marketing Communications with the Greater Lansing Convention and Visitors Bureau.

Tired of the negativity of the hometown hater? Do something about it. Be the change you want to see. Join the ranks of the other 17,000 Certified Tourism

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

9,278 square feet suite at 2150 Association Drive in Okemos, Mich. was leased to Energy Services. A four-suite condominium property at 2172/2178 Commons Parkway in Okemos was purchased by a local investor. Twister’s Ice Cream will be building a new drive-thru location at 1050 Superior Drive in St. Johns. At 3498 Lake Lansing Road in East Lansing, the 2,710 square feet space was leased to PKSA Karate, and at 3496 Lake Lansing Road,

Chemical Bank leased the 2,331 square feet suite. Welcome to the neighborhood!

PARENTAL SUPPORT FOR SKILLED TRADES CAREER PATH GROWING A statewide poll of 600 active voters shows nearly 70 percent of Michigan citizens would

MercForce

PAYROLL + HR + BENEFITS + TIME

support the idea of their child pursuing a career in construction-related or other skilled trades. The poll, conducted by Marketing Resource Group (MRG), also showed that 82.4 percent of voters say they would support a special millage or other public funding to create and maintain vocation programs that attract and train more students in skilled trades. The results of the survey are encouraging to Michigan’s home building industry, which has seen its recent economic recovery slowed by a shortage of skilled workers. “The MRG survey is very encouraging from the standpoint that we can see that Michigan voters are really starting to understand the importance of opening up the pipeline of skilled trades workers in this state,” noted Robert Filka, CEO of Home Builders Association of Michigan (HBAM). “We lost an entire generation during the housing recession. The tide is starting to turn, and we need to keep spreading the word that there are good, high-paying jobs waiting to be filled throughout the state in construction.” There has been a tremendous decline in skilled labor over the past decade, due in part to the impact of the recession and cutbacks in career tech programs in local schools. The resulting labor shortage is hindering the growth of Michigan’s critical residential construction industry. “We hear from builders on a daily basis they can’t keep up with demand due to a lack of available labor,” said Dawn Crandall, executive director of the Skilled to Build Michigan Foundation. “In just the 17 trades we are focused on, we could hire over 5,000 employees today in the industry.”

MANY TOOLS

ONE SOLUTION ANY WORKFORCE

MercForce is payroll, HR, benefits and time—integrated as one single solution from the bank Michigan businesses have depended upon for decades. Access a dashboard of employee data. Get notified about potential payroll errors. Scale your plan as your business grows. Then, turn to your local Mercantile team for the support, service and insights your business deserves.

Visit mercforce.com or call us at 616.726.5077 to learn more.

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

J U LY 2 0 1 7

HBAM is a professional trade association comprised of 24 local home builder associations around the state and their builder, subcontractor and supplier members. HBAM works to positively promote the building industry and impact legislative, regulatory and legal issues affecting housing affordability.

MOORE TROSPER CONSTRUCTION COMPANY PARTNERS WITH ORIGAMI BRAIN INJURY REHABILITATION CENTER ON CONSTRUCTION PROJECT Moore Trosper Construction Company, a Native American-owned company based in Holt, Mich., has been selected by the Origami Brain Injury Rehabilitation Center to complete a $1.5 million construction project that will create a central courtyard to provide therapeutic, fully walkable green space in the heart of Origami’s campus for clients, families and employees.

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

and healing of people right here in the greater Lansing community.” Origami’s board of directors approved the partnership with Moore Trosper on April 5 and a ceremonial groundbreaking and 20th anniversary celebration was held on April 18. This project represents phase II of Origami’s five-phase master plan to develop the campus located at 3181 Sandhill Road in Mason, Mich.

Moore Trosper Construction Company, a Native American-owned company based in Holt, Mich., has been selected by the Origami Brain Injury Rehabilitation Center to complete a $1.5 million construction project.

“We appreciate the opportunity to work with Origami on this exciting project,” said Moore Trosper President, Ted Moore. “Health-care construction is one of our specialties and, while we do project work across the state, we are pleased to be able to contribute to the health

The project includes a Pathway to Recovery — a lovely brick walkway where donors will be recognized on engraved bricks adorning the new courtyard. Phase II is expected to be completed in early October. For more information about Moore Trosper, visit mooretrosper.com.

MEDC RECEIVES PRESIDENTIAL AWARD FOR EXPORT SERVICE The Michigan Economic Development Corporation’s (MEDC) International Trade Program received the President’s “E” Award for Export Service, which is the highest recognition a U.S. entity can receive for making

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

J U LY 2 0 1 7

Presidential “E” Award for Export Service: Pictured left to right are U.S. Secretary of Commerce Wilbur Ross, MEDC Director of International Trade Natalie Chmiko, MEDC International Trade Development Manager Jeanne Broad and U.S. Department of Commerce Acting Under Secretary for International Trade Kenneth Hyatt.

a significant contribution to the expansion of U.S. exports. “In today’s globally interconnected world, export sales offer extraordinary opportunities for Michigan companies to grow and create new jobs,” said Lt. Governor Brian Calley. “This

NOTABLE NEWS

award reflects MEDC’s efforts to help Michigan businesses increase their sales by expanding into foreign markets, which ultimately results in more jobs for our residents.” In a congratulatory letter to MEDC announcing its selection as an award recipient, U.S. Secretary of Commerce Wilbur Ross said, “MEDC has demonstrated a sustained commitment to export expansion. The “E” Awards Committee was very impressed with MEDC’s collaborative work with strategic partners to educate Michigan exporters. The office’s sponsorship of more than 40 trade missions since 2012 was also particularly notable. MEDC’s achievements have undoubtedly contributed to national export expansion efforts that support the U.S. economy and create American jobs.” MEDC’s International Trade Program works to extend export opportunities to more Michigan companies and ensure they are connected with resources to explore new markets, access existing export resources and increase global competitiveness. In fiscal year 2016, the program facilitated $523.9 million in sales to 121 countries, 53 percent over the actual sales from the previous year. Since it was re-established in 2011, the program has facilitated $1.5 billion in export sales. This equates to nearly 7,298 Michigan jobs created as a result of those sales (MEDC considers $210,000 equals one job). “Export sales help diversify companies’ customer bases, provide longer term stability and can support higher paying jobs,” said MEDC Chief Executive Officer Steve Arwood. “The International Trade Program helps Michigan companies identify and enter into new relationships with foreign markets, growing their businesses and bringing more and better jobs to Michigan residents.”

LOCAL ENTREPRENEUR WINS $1,000 TO ADVANCE ESCAPADE VR JOB SHADOW APP The Lansing Economic Area Partnership (LEAP) is excited to announce the winner of the May Hatching event, Andrez Chuney, with his idea Escapade VR. Escapade VR is

an app that allows students to job shadow and experience different career paths in a virtual reality to find their ideal careers. Chuney joins 54 winners and 388 ideas submitted throughout the history of The Hatching. Celebrating its fourth anniversary this June, LEAP’s Hatching is part of a communitywide effort to support local entrepreneurs and make the Lansing region a great place

to start a business. Each month, participants submit business and product ideas through The Hatching’s online portal, where the public subsequently votes forward up to five top ideas. The owners of the top five ideas then have a chance to pitch in front of a live audience and panel of judges. Hatching winners receive $1,000 in prize money, free legal formation/operating

CYBER DEFENSE: PREPARE. PRACTICE. RESPOND. Cybersecurity breaches are not a matter of if, but when. Our cybersecurity attorneys have extensive experience counseling clients in all aspects of cybersecurity and data protection. FOR LEGAL ASSISTANCE, CONTACT: Attorney Alexander A. Ayar P: 248.538.6326 E: aayar@fosterswift.com Attorney Taylor A. Gast P: 517.371.8238 E: tgast@fosterswift.com Attorney John W. Mashni P: 517.371.8257 E: jmashni@fosterswift.com

FOSTERSWIFT.COM Lansing • Detroit • Southfield Grand Rapids • Holland • St. Joseph L

a n s i n g

s i n e s s

w s

c o m

NOTABLE NEWS

“I participated in LEAP’s Youth Startup Challenge Expo in March, and they said my idea had a lot of potential so they encouraged me to try the Hatching. I’ve always wanted to be an entrepreneur and I thought this would help get me one step closer,” said Chuney. “I plan to put the money from The Hatching into product development so we can start getting the business rolling.” Andrez Chuney, winner of the May Hatching event, with his idea Escapade VR. Ecapade VR is an app that allows students to job shadow and experience different career paths in a virtual reality to find their ideal careers.

agreement, two months of incubation space, website design and hosting, one-on-one CPA assistance, and marketing research assistance, for an overall prize package of roughly $5,500. The event process and prize package are strategically aligned to help move new local business ideas from concept to reality and connect competitors with other opportunities in the regional entrepreneurial ecosystem.

“I would like to use my leadership skills to help underserved areas and continue my career in applying my skills to help others in hardship,” said Hon. Hon is currently undecided on colleges and is considering Grand Valley State University. A resident of Holt, Mizori has made the honor roll every year at J.W. Sexton High School. She has served as National Honor Society vice president and soccer captain while tutoring children at a local community center. She is also involved in Project Unify, a student organization that helps children with special needs.

JENNIFER HON & DILDAR MIZORI SELECTED FOR CAPITOL NATIONAL BANK FOUNDERS SCHOLARSHIPS Capitol National Bank selected high school seniors Jennifer Hon and Dildar Mizori for its inaugural Founders scholarships. Hon, a senior at East Lansing High School, is currently enrolled in Lansing Community College’s Early College Program. She is involved in National Honor Society, Cristo Rey Community Center and American Red Cross where she was awarded Volunteer of the Year.

“Once I start my journey to college, I would like to major in psychology,” said Mizori. “I will never quit, no matter how hard it gets.” Capitol National Bank offered the $1,000 scholarships to area seniors to help further their education. For more information on Capitol National Bank and its 35th anniversary events, visit capitolnational.com.

Ownership. Pride. Responsibility.

Your job. Done right. We’re professionals —

Seamless, secure project facilitation. From pre-press/graphic design and printing, to bindery and mailing — your project is in-house and under control.

and it shows in everything we do. BRDPrinting.com

tel 517.372.0268

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

fax 517.372.4922

J U LY 2 0 1 7

912 West St. Joseph, Lansing, MI 48915

TRANSFORMING THE DOWNTOWN SKYLINE

Part of the CBRE affiliate network

CBRE|Martin is excited to lead the Part of the CBRE affiliate network search for a qualiďŹ ed developer to transform the City Hall site in the heart of downtown. Part of the CBRE affiliate network

Part of the CBRE affiliate network

CBRE #1 in Commercial Real Estate Worldwide

+1 517 351 2200 www.cbrelansing.com @CBREmartin

Reverse

Part of the CBRE affiliate network