DBusiness | March-April 2022 by Hour Media

INSIDE: CENTURY CLUB | RETAIL ACT | TOP CORPORATE CULTURE AWARDS

— 15-YEAR ANNIVERSARY —

PT O T H E Y R C N IS

TB UBB LE? Modern decentralized forms of investment are gaining favor, particularly with younger people, but are they viable for the future?

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CONTENTS

03-04.22

31 31

Century Club FOCUS: Bagnasco and Calcaterra

Funeral Homes, Schostak Brothers and Co. Inc., Harness IP, Lear Corp., and the Detroit Historical Society. By Tim Keenan and Ronald Ahrens

Perfect Storm PERSPECTIVES: The pandemic, e-commerce, labor shortages, and supply chain issues further ignite the transformation of the retail industry. By Bill Dow

Is Cryptocurrency the Next Bubble? Decentralized forms of investment are gaining favor, particularly with younger people, but are they viable for the future? By Tim Keenan, David Littmann, and Ronald Ahrens

LEAR CORP.

BUILT TO LAST Lear Cor.p., which started as American Metal Products Co., joins four other 100-year-old companies in the Century Club.

Cultural Lead Winners of the inaugural DBusiness Corporate Culture Awards are out in front of the business trends affecting employees and their work experiences. By Tim Keenan

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CONTENTS

03-04.22

FLIGHT OF FANCY Entrepreneurs Amer Batal and Wassem Ayar have brought Urban Air Adventure Park to Sterling Heights.

Commentary

The Ticker

LETTER FROM THE EDITOR

READERS' LETTERS

20 DIGITAL CONNECTIONS Michigan needs to step up its game in connecting urban and rural areas to the latest high-speed offerings.

26 GOOD HAIR DAY A global beauty products business in Livonia was inspired by an aluminum-eating hair relaxer. By Jake Bekemeyer

CONTRIBUTORS

20 PROSECUTION WOES Acting to upend political foes through investigations and grand jury proceedings can have unintended consequences.

27 DIGITAL MOVE A local real estate agent develops an online platform to streamline the sales process when buying or selling a home, potentially lowering commissions. By R.J. King

20 MISSPENT TIME Government complicated a plan to give free at-home COVID-19 tests to Americans. 22 COMPENDIUM How outsiders view Detroit.

27 GLOBAL MICHIGAN Michigan is a national leader in attracting jobs and inbound foreign direct investment from global companies. By Tim Keenan 28 PLACE YOUR BETS Michigan’s foray into sports betting has been a boon for casinos and government. By Dan Calabrese

28 PDA Q&A Lou Melone, managing member, Melone Private Wealth, Auburn Hills. By R.J. King 30 CATCHING AIR Two entrepreneurs take a leap of faith on a public entertainment franchise. By Jake Bekemeyer 30 EAGLE WHEELS Eastern Michigan University is demonstrating its commitment to the future with autonomous shuttles and research at the American Center for Mobility. By Tim Keenan

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Foreword

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03-04.22

CONTENTS

Exec Life 73 SPRING FASHIONS Check out the sustainable look for spring/ summer fashions as the region’s mood turns optimistic with the COVID-19 pandemic slowly disappearing in the rearview mirror. Styled by Jessica VanAssche 76 RETURN ON INVESTMENT Bridging the Divide: An aspiring astronaut, Westland native Samantha Snabes never blasted into outer space, but she and her business partner made it to Houston, where they’re building 3-D printers for developing communities around the world. By Tom Murray 80 PRODUCTION RUN Head of the Class: Xenith, a Rock Ventures company, is working to make the Motor City known as Football Helmet City. By Tim Keenan 82 PATENTS AND INVENTIONS Side Swipe: Detroit inventor Robert Kearns developed the world’s first intermittent windshield wiper system for vehicles, only to watch the automakers try to steal it. By Norm Sinclair 84 OPINION Safety and Security: With threats and acts of violence on the rise, company leaders must make safety and security a top priority in the workplace. By William Flynn 86 THE CIRCUIT Our party pics from exclusive events.

Et Cetera

94 CLOSING BELL Shifty Engineering: A spate of documentaries about John DeLorean are about to be released. By Ronald Ahrens

ON THE COVER Illustration by Brian Britigan

GRIDIRON GREATNESS Detroit football helmet manufacturer Xenith is striving to produce the safest head protection in the game.

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Today is an opportunity to help business succeed.

Strong businesses provide the jobs that help our neighbors achieve their goals. That’s why we’re proud to support DBusiness and to share in their vision for a prosperous community. Contact James Coleman Client & Community Relations Director james.coleman@pnc.com

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Letters

Life Quest

s businesses and organizations develop exit strategies from the COVID1199 pandemic, the spirit of help helping employees and those less fortunate through unprece unprecedented times can be channeled in new, holistic directions. Consider the $4.2-billion plan to transform the neigh neighborhood around Henry Ford Hospital in Detroit into a mixed-use community of enhanced residential areas, stores, art galleries, restaurants, sus sustainable industrial operations, new educational opportunities (includ (includR.J. KING ing the hospital’s recent partnership with Michigan State University), multiple parks and open spaces, and multifaceted streetscapes. Henry Ford Health System, which owns and operates Henry Ford Hospital, is under no obligation to improve the aging neighborhood that surrounds the health care center. But for an organization with a stated mission of improving “people’s lives through excellence in the science and art of health care and healing,” it’s difficult to ignore the level of poverty in its midst. According to U.S. Census data, of the nearly 6,800 people who live around the hospital, the median household income ranges from $9,600 to $26,900. By comparison, the median household income of the entire city is $27,800. Put more simply, 48.2 percent of the residents around the institution are living below the poverty level, as compared to 33.4 percent overall in Detroit. To reverse the tide — the area saw a 31-percent drop in population since the 2010 Census — Henry Ford Hospital is working with partners such as Midtown Detroit, Premier Group Associates, Thomas Roberts Architects, SME, Kirco, and city and state officials. With the recent development of a large medical supply distribution facility for Cardinal Health, the Henry Ford Cancer Institute and Brigitte Harris Cancer Pavilion, the Holden Block

which includes Rebel Nell, York Project, and Soft Goods Detroit, the goal is to build off the investments and forge new partnerships to accelerate a renaissance. Henry Ford Hospital isn’t alone in driving positive change in the city and region. Ford Motor Co.’s $740-million redevelopment of the former Michigan Central train station into a mobility innovation district offers multiple programs, including recent partnerships with Newlab, Google, and city and state departments, to support a culture of innovation, entrepreneurship, and sustainable community development in Corktown, Mexicantown, and beyond. It doesn’t stop there. Middle market companies like Strategic Staffing Solutions in Detroit, one of the winners of our inaugural Top Corporate Culture Awards featured in this issue, have been driving positive change for years. Since its founding in 1990, the workforce team has supported multiple nonprofit endeavors, including military veterans, the Detroit Mounted Police, Eastern Market, the Community Foundation for Southeast Michigan, the Michigan Humane Society, and many more. Numerous small businesses give back, as well. Temeria Heard, president and CEO of Corporate 52 Marketing Group in Detroit, whose business was featured in our last issue, started a second company called Swaggles that sells paw-branded apparel and gift items that she designed. Each month, Heard donates part of the proceeds to support local and national animal shelters. From small, medium, and large companies to multiple benevolent organizations and causes, philanthropy comes in many forms. The quest, though, is to create even more contributions to advance education, job creation, health care, and humanitarianism. Or better put, consider the words of auto pioneer Henry Ford: “The highest use of capital is not to make more money, but to make money do more for the betterment of life.”

R.J. King rjking@dbusiness.com

BILL BROWN FORD Bill Brown Ford greatly appreciated the support in your daily news feature yesterday regarding their monumental win as the No. 1 Ford Dealer in the world. Thank you for covering the timeline and history of Ford’s first plant on Mack Avenue before moving to The Piquette Plant. Even though we were aware of this knowledge, the paragraph is a tad misleading regarding the history behind the location, after edits were made. I informed my team of this to ensure information doesn’t get lost in translation moving forward. Joyce Pour-Azar Philadelphia, Pa. CATCH-22 I just read your article in the January-February issue on Michigan manufacturing. It’s an extremely comprehensive, multifaceted piece, with all of the Michigan heavy-hitters in the industry weighing in. Thanks so much for including Tom Kelly of Automation Alley among them. Barbara M. Fornasiero Rochester 15TH ANNIVERSARY KUDOS I just finished reading the 15th anniversary edition of DBusiness. R.J., you have to be very proud of your publication. This is perhaps the best business journal I read, and I read a lot. I appreciate the way you inform Detroit business leaders (about) what’s going on in Detroit. There’s nothing like it. Congratulations again! Patrick O’Keefe Bloomfield Hills

EMAIL US AT: editorial@dbusiness.com SEND MAIL TO: Letters, DBusiness magazine, 5750 New King Drive, Ste. 100, Troy, MI 48098 Please include your city of residence and daytime phone number. We reserve the right to edit letters for length and content.

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Contributors

CONTRIBUTORS DETROIT’S PREMIER BUSINESS JOURNAL

VOLUME 17 • ISSUE 2 PUBLISHER John Balardo

BRIAN BRITIGAN

Britigan is a Minneapolis-based artist, illustrator, and animator. Born and raised in Iowa City, Iowa, he studied art and animation at the University of Washington in Seattle before earning his MFA in illustration from the School of Visual Arts in New York City. Whether created for gallery shows or publications, Britigan’s work combines bold colors and compositions with a detail-driven approach. His images and animations have been featured in The New York Times, POLITICO Europe, Reveal, and The Progressive, and he has received recognition from Communication Arts, 3x3, Spectrum, and Latin American Ilustración, among others. In this issue of DBusiness, his work illustrates the world of cryptocurrency. CONTRIBUTION: Illustrator, Cover and Is Crypto the Next Bubble? | SEE IT HERE: Page 43

DAVID LITTMANN

Littmann is a member of the Board of Scholars with the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland. He retired from Comerica Bank in 2005 as senior vice president and chief economist after a 35-year career in charge of Comerica’s economics department and research library. He’s authored a host of business barometers and developed many leading indicators for the local and national economies. For three decades, Littmann was a featured columnist for the Detroit Regional Chamber, The Wall Street Journal, Investor’s Business Daily, and DBusiness. In this issue, he explores the intricacies of cryptocurrency in our special section that begins on page 43. CONTRIBUTION: Writer, Is Crypto the Next Bubble? | SEE IT HERE: Page 49

EDITORIAL EDITOR R.J. King MANAGING EDITOR Tim Keenan ASSOCIATE EDITOR Jake Bekemeyer COPY EDITOR Anne Berry Daugherty DESIGN ART DIRECTOR Austin Phillips ADVERTISING SALES ASSOCIATE PUBLISHER Jason Hosko ACCOUNT EXECUTIVES Cynthia Barnhart, Regan Blissett, Karli Brown, Maya Gossett, Donna Kassab, Lisa LaBelle, Mary Pantely and Associates OUTREACH SPECIALISTS Paige Fritts, Alice Zimmer PRODUCTION PRODUCTION DIRECTOR Jenine Rhoades SENIOR PRODUCTION ARTISTS Stephanie Daniel, Robert Gorczyca DIGITAL AND PRINT ADVERTISING COORDINATORS Jill Berry, Ramona French GRAPHIC ARTISTS Jim Bibart, Colin McKinney WEB DIGITAL DIRECTOR Nick Britsky DIGITAL DEVELOPMENT MANAGER Matt Cappo DIGITAL DEVELOPMENT SPECIALISTS Luanne Lim, Kevin Pell, Bart Woinski VIDEO PRODUCER Ken Bowery VIDEO EDITOR Taylor Lutz DIGITAL COORDINATOR Travis Cleveland IT IT DIRECTOR Jeremy Leland CIRCULATION DIRECTOR OF AUDIENCE DEVELOPMENT Michelle VanArman CIRCULATION MANAGER Riley Meyers CIRCULATION COORDINATORS Barbie Baldwin, Elise Coyle, Nia Jones, Cathy Krajenke, Rachel Moulden MARKETING AND EVENTS MARKETING AND EVENTS MANAGER Melissa Novak MARKETING AND EVENTS COORDINATOR Kelsey Cocke MARKETING AND EVENTS ASSISTANT Drake Lambright

TOM MURRAY

Murray has been a regular contributor to DBusiness for several years. He began his career in print, then made an unplanned turn to broadcast television, where he was an award-winning anchor and reporter for three decades, covering everything from sports to fine wine and true crime. His work for DBusiness is a return to his early aspirations in the business world: As a kid growing up in his native New York, Murray’s regular summer job through high school and college was on the floor of the Stock Exchange. In this issue, Murray is the author of the Return on Investment feature about Samantha Snabes, co-founder of re:3D in Texas.

MARKET RESEARCH MARKETING RESEARCH MANAGER Ana Potter MARKETING RESEARCH COORDINATOR Georgia Iden MARKETING RESEARCH SALES COORDINATOR Hannah Thomas MARKETING RESEARCH ASSISTANT Alexandra Thompson MARKETING AND RESEARCH INTERNS Shekinah Adams, Katherine Donnelly, Celeste Janson, Maryan Toma BUSINESS CEO Stefan Wanczyk PRESIDENT John Balardo PUBLISHING AND SALES COORDINATOR Kristin Mingo DIRECTOR OF BUSINESS OPERATIONS Kathie Gorecki ASSISTANT OFFICE MANAGER Natasha Bajju SENIOR ACCOUNTING ASSOCIATE Andrew Kotzian ACCOUNTING ASSOCIATES Sammi Dick, Estefano Lopez DISTRIBUTION Target Distribution, Troy

CONTRIBUTION: Writer, Return on Investment | SEE IT HERE: Page 76

CONTRIBUTING WRITERS Ronald Ahrens, Dan Calabrese, Bill Dow, William Flynn, David Littmann, Tom Murray, Norm Sinclair CONTRIBUTING ARTISTS Brian Britigan, Patrick Gloria, Matthew LaVere, Wilson Sarkis, Lindsey Schweikert, Josh Scott, Jessica VanAssche, Martin Vecchio, James Yang

Postmaster: Send address changes to DBusiness, 5750 New King Drive, Ste. 100, Troy, MI 48098 For advertising inquiries: 248-691-1800, ext. 126 To sell DBusiness magazine or for subscription inquiries: 248-588-1851 DBusiness is published by Hour Media. Copyright © 2022 Hour Media. All rights reserved. Reproduction in whole or in part without permission is prohibited. DBusiness is a registered trademark of Hour Media.

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COMMENTARY

66 EDUCATION IS THE MOST POWERFUL WEAPON WHICH YOU CAN USE TO CHANGE THE WORLD.” — NELSON MANDELA

p. 20

p. 22

Digital Connections

Compendium

Prosecution Woes Misspent Time March - april 2022 || DBUSINESS.COM 19

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Commentary

GOVERNMENT

PROSECUTION WOES

TECHNOLOGY

Digital Connections INSIDE THE NUMBERS

20+

BILLION

Surplus state revenue and unspent federal stimulus funds in Michigan

Ranking of Michigan relative to other states for high-speed internet access

PERCENT

Percentage of state households with schoolchildren that lack high-speed internet access

Sources: Brookings Institution, Public Policy Associates, Cook Political Report

ccess to the latest technology, like fiber optic cables and 5G — the fifth generation of mobile connectivity — spurs innovation, enhances education, and serves as a superhighway for acquiring goods and services. To better compete in the digital economy, Michigan needs to step up its game in connecting urban and rural areas to the latest high-speed offerings. According to various sources, including the Brookings Institution and Public Policy Associates, 70 of Michigan’s 83 counties have digital connectivity rates that fall below the national average. Rural areas in the state with fewer residents top the list of counties with limited access to broadband — Lake, Missaukee, Oceans, Newaygo, Kalkaska, and Sanilac counties are below 50 percent — but more dense areas require work, as well. In Wayne County, with Detroit as its largest city, 96.6 percent of 676,587 households have broadband access, but when the number of households with children are factored in, nearly 30 percent of such homes — or 23,004 residences — lack internet connectivity. Other counties that lag in high-speed connectivity are Ingham (Lansing), representing 22,328 households; Muskegon, with 5,906 homes; Saginaw, with 5,584 households; Genesee (Flint), with 4,197 houses; and Bay County, with 3,599 homes. The reasons include the high cost of connecting rural areas, inadequate investments, and concentrated poverty. Not surprisingly, children that are part of the digital divide will struggle in the classroom, at home, and in social settings. In the past, private and government leaders blamed a lack of funding to boost internet connectivity. The argument held water in struggling areas, given in recent decades people with resources moved to more prosperous regions, leaving poorer people behind. Compounding the problem is a lower tax base in low-income neighborhoods, making it difficult to finance investments in broadband and other needs, and a relative lack of businesses to spur digital upgrades. The lack of internet access in Detroit was so acute during the outbreak of the pandemic, for example, that the business and philanthropic community stepped up to provide internet access and a computer to around 51,000 public school students. The investment helped supply digital tools and learning platforms in Detroit, but other areas of the state weren’t as fortunate. While a lack of funding was the culprit state and local officials pointed to for holding back greater access to the internet, that’s no longer the case. With Michigan sitting on more than $20 billion in surplus funds, the result of around $15 billion in unspent federal stimulus and infrastructure capital and some $5.8 billion in anticipated state revenue, elected officials have the resources to establish a leading position in broadband connectivity. To provide for even greater access, private, public, and civic leaders should target digital investments in households and schools, and work with nonprofit organizations that operate in urban and rural areas, like Life Remodeled and Beyond Basics. In this way, as politicians are fond of stating, no child will be left behind.

ACTING TO UPEND political foes through investigations and grand jury proceedings can have unintended consequences. Consider the move by Michigan Attorney General Dana Nessel as she seeks to criminally prosecute state officials, including former Gov. Rick Snyder, over their handling of the lead contamination in Flint’s water. While there’s plenty of blame to go around at all levels of government, Nessel should be careful of what she seeks. In the same way public officials delayed remediation of Flint’s tainted water, similar actions have occurred in Benton Harbor over the past three years, under Gov. Gretchen Whitmer’s administration. Nessel has charged nine individuals in the Flint case, including two misdemeanors for willful neglect of duty against Snyder (each carrying up to a year in prison), and nine counts of involuntary manslaughter against Nick Lyon, Snyder’s chief health official at the time. The state must pay the legal costs of Snyder, which could total $8 million, and up to $48 million to exclude documents seized by prosecutors that are protected by attorney-client privilege. Nessel and Hammoud asserted the prosecutions would be swift, but it could be up to three years before the cases are adjudicated. Apart from Whitmer and others facing similar charges once they leave office, citizens are right to ask if state officials have their best interests in mind, as the money required in the case against Snyder could have been used to replace the lead water pipes in Benton Harbor. HEALTH CARE

MISSPENT TIME OFFERING FREE AT-HOME tests for COVID-19 prior to the holiday season was a reasonable plan of action that would have provided Americans with the assurances they needed to determine whether they could safely gather with family and friends. Instead, the Biden administration set up a complicated plan to have millions of the tests available in mid-January. To recoup their costs, people could be reimbursed through their insurance if they paid for a test up-front. Apart from being inadequate, the plan failed to account for pre-holiday demand, and long lines formed nationwide as citizens sought to buy the tests. Rather than consulting with logistics experts, the White House thought it could go it alone. The trouble was, on top of the clear medical need for access to testing, the Biden administration’s plan failed to consider the nation’s already tight logistics sector. As a result, as demand soared prior to the holidays, millions of tests sat in warehouses. No one knows how many people would have modified their holiday travel plans had there been adequate testing in place prior to the holidays, but it’s clear the Biden administration could have done a much better job of getting tests into the hands of Americans for free and without delay.

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Commentary

COMPENDIUM: HOW OUTSIDERS VIEW DETROIT BEHIND GM, FORD’S AGGRESSIVE NEW ELECTRIC VEHICLE STRATEGY IS OLD-TIME FINANCING: CASH CNBC JAN. 22, 2022 BY TIM MULLANEY

Detroit’s automakers have brought a surprisingly conservative financial strategy to making EVs the next vehicle of choice for American consumers. They’re paying cash. General Motors and Ford are investing $65 billion between them — $35 billion at GM and $30 billion for Ford — and, so far, don’t propose to borrow any of it. Instead, the most radical change in auto products in a century is being paid for out of the companies’ operating cash flow — seriously reducing the risk to the companies over time, and, for now, boosting their stock prices. “The short answer is that they are doing it because they can,” said Nishit Madlani, automotive sector lead at bond rating agency Standard and Poor’s. “The popularity of trucks (since the pandemic began) and strong pricing is giving them confidence.” Detroit’s aggressive investment and conservative financing has been years in the making. It has been aided by $4 billion borrowed by GM in May 2020, and by Ford

drawing down a revolving credit line by $15 billion around the same time, moves intended to cushion a feared sales implosion from COVID-19. As sales declined more modestly than feared in 2020 and then began to bounce back in 2021, cash flow remained strong, taking the companies’ stock prices higher and letting Ford repay high-interest debt. …

MICHIGAN UNIVERSITY HELD BASKETBALL GAMES AT 100% CAPACITY DESPITE SHUTTING DOWN IN-PERSON LEARNING IN JANUARY FOX NEWS JAN. 23, 2022 BY ADAM SABES

Michigan State University allowed basketball games to continue at 100 percent attendance capacity despite shutting down in-person learning for nearly the entire month of January. Attendance at all of Michigan State University’s home basketball games in the month of January at the Breslin Center was at 100 percent capacity with 14,797 fans in attendance, according to ESPN. However, in a Dec. 31

message to the campus community, Michigan State University President Samuel Stanley Jr. said that classes would begin remotely for the spring semester due to “the state of Michigan reaching an all-time high in cases per day.” “Given this intense surge in cases, we now feel the best decision for our campus is to start classes primarily remotely on Jan. 10 and for at least the first three weeks of the semester,” Stanley wrote in the announcement. Michigan State University does require proof of coronavirus vaccination or a negative test for all basketball game attendees, and has an indoor mask requirement. Concession stands are only selling beverages, according to the university website. One Michigan State University student said it’s “wildly hypocritical” for the university to hold basketball games at 100 percent capacity, but force students to attend classes online. “The fact that students can fill the (Breslin Center) packed shoulder to shoulder for hours before the game, for the entirety of the game and be together for, you know, probably three hours at night with no social distancing, ... it’s wildly hypocritical,” Blake Maday said. …

TWO RICH MEN DECIDED TO FUND A FAILING CITY. SOME PEOPLE SAY THEY MADE IT WORSE. TIME • NOV. 10, 2021 • BY ALANA SEMUELS

On the steps of city hall, Mayor David Anderson hollered a guttural “Wahhh!!!” and shot his arms into the sky to celebrate, looking like an inflatable air dancer blowing in the wind. “Four! Hundred! Million! Dollars!” he shouted, in July, to city residents in Bronson Park, a leafy plaza adorned with bronze busts and plaques honoring pioneers and philanthropists. Anonymous donors had just given what is thought to be the largest-ever gift to support a municipality, and for city officials, it felt like winning the lottery. It was also a win for two of Kalamazoo’s richest men, philanthropists William Parfet and William Johnston, who created the foundation that received the money and that will determine how most of it is spent. Since the Two Bills, as they’re known to locals, launched the Foundation for Excellence in 2017 to close budget gaps in their cash-strapped city — reportedly pledging $70 million of their own money to do so — the nonprofit has distributed around $26 million a year to close budget holes, lower property taxes and fund a wish list of projects. Instead of the empty storefronts and vacant lots that characterize many Rust Belt cities, Kalamazoo today is a busy hive of spending. City crews are repairing sidewalks, repaving pickleball courts, building a splash pad for kids in a low-income neighborhood and replacing lead pipes, their work marked by orange-andwhite construction barrels and closed roads. Hundreds of children have been able to attend free summer camp and go online thanks to routers and internet service paid for by the foundation. Once-cash-strapped nonprofits are expanding their missions, helping residents get job training, do their taxes and adjust to life after prison. But beyond the construction crews and new pickleball courts, a tension hums below the surface of Kalama-

zoo’s budget miracle. There’s a long history in the U.S. of the rich stepping in to fund cultural amenities like museums, but lately they’ve started stepping in to fund projects — in Kalamazoo and elsewhere — that have long been perceived as the government’s responsibility. It’s a scenario that critics say sets the stage for the super wealthy to control more and more aspects of public life. “My biggest fear around this is that you can now buy influence in a city,” says Shannon SykesNehring, who was a city commissioner when the Foundation for Excellence was approved and who has remained a vocal skeptic. “The way things are supposed to work in a democracy is that there’s one person, one vote; but now the consideration is, How can we keep the city afloat if we upset the people paying our bills?” Kalamazoo, population 74,000, is used to serving as a model; in 2005, anonymous donors started the Kalamazoo Promise, which pays for college tuition at Michigan colleges and universities for students graduating from the city’s public schools. Now, in an era when billionaires control more wealth than half of the U.S. population combined, Kalamazoo is trying to harness the power of extreme riches to balance its budget. “For years and years — centuries to come — we can improve, grow, invest, create, aspire differently than we’ve ever been able to do before,” Bobby Hopewell, Kalamazoo’s longest-serving mayor, told me recently. …

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Commentary

JUST A LITTLE TRACK IN PONTIAC

VINTAGE MOTORSPORT • JANUARY-FEBRUARY. 2022 BY GARY WITZENBURG Strolling through the paved, covered M1 Concourse paddock on the Thursday before the first American Speed Festival (ASF) track day, we could see that the number, quality, and significance of cars at M1’s Oct. 1-2 (2021) inaugural ASF were truly outstanding. Among the 16 historic IndyCars were a 1952 Kurtis roadster, a 1962 Watson, the 1966 Jerry Grant Eagle/Ford (owned and entered by Bobby Rahal), two (2!) 1968 STP Lotus turbine cars, a 1972 Vels Parnelli, the 1973 Penske/Donohue Eagle, a 1974 Hopkins/Riley Offy, a 1975 McLaren M16, the Janet Guthrie 1977 Vollsedt rookie car, the 1979 Johnny Rutherford/Jim Hall Chaparral 2K, a 1980 Hopkins Lightning, and the 1986 Unser/Shearson Lola. In addition to the three (3!) Jim Hall Chaparrals (the original Chaparral 2, a groundbreaking active-highwinged 1965 2E and a 1967 2F coupe), the 10 Can-Am cars on hand included the 1966 Mecom/Parnelli Jones Lola T70, a 1972 UOP Shadow, and the Paul Newman 1981 March 817. Among the nine “Endurance” cars were a Jaguar GTP, a rare 1973 Porsche 917/30, a 1988 Fabcar GTP, and a 1988 Ferrari F40 LM. Most notable in the “Stock Car” class were the 1952 “Fabulous” Hudson Hornet and the 1991 Kyle Petty No. 42 Mello Yellow Pontiac. In the “Featured” category: a 1957 Arnold Special, a 1959 Devin Special, a 1959 Tipo 61 “Birdcage” Maserati, and a 1967 BT21-B. There were 13 “Super Cars” including a 1996 Dodge Viper GTS Coupe, a 1999 Ferrari 360 Modena, and a 2014 Ferrari Enzo. Plus 20 “European Performance” (including a 1929 Bugatti Type 37, a 1961 Lotus 41B, a 1967 Lotus 51, a 1967 Maserati Ghibli, a 1971 Ferrari 246 GT Dino, and a 1991 Lamborghini Diablo), 16 “American Performance” cars (including a 1964 Cheetah and 1974 and 1965 Chelby Daytona Coupes), and three “Asian Performance” cars (including a 1990 Nissan NTP-90). The entry list showed 110 cars in all, and — unlike at a concours or in a museum — most of them could be seen

hauling ass around the 1.5-mile track. The original plan was to have them compete for the fastest times in their classes, but that idea was scrubbed in the name of safety. So, they just looked and sounded terrific as their drivers worked them out for the sheer fun of it, and for beautifully sculpted trophies for spectator/official-voted bests in class. Thursday’s Dine and Drive Tour visited the amazing Ken Lingenfelter collection and the Dearborn Automotive Hall of Fame, enjoyed behind-the-scenes tours through the vast Henry Ford Museum, then a top-rank reception and dinner in M1’s new Event Center. The track runs began on Friday and continued through Saturday, both days. …

CAN PAPER REPLACE PLASTIC? A PACKAGING GIANT IS BETTING IT CAN. THE WALL STREET JOURNAL JAN. 2, 2022 BY RYAN DEZEMBER

When a new building-size machine cranks up this month, it will begin turning mountains of recycled cardboard into paperboard suitable for greener forms of packaging. The $600-million project, the first new paperboard production line built in the U.S. in decades, represents an enormous bet by owner Graphic Packaging Holding Co. on a future without foam cups, plastic clamshell containers or six-pack rings. Graphic wants to be able to offer more environmentally friendly

packaging so that the consumer-goods companies that buy its products can tout a cleaner supply chain to their own investors and consumers. Once Graphic shuts down four smaller and less-efficient machines, including one at its Kalamazoo complex that is 100 years old, it will use a lot less water and electricity, it says, and emit 20 percent less greenhouse gases. ESG investing has put trillions of dollars into the control of funds that promise to invest it with environmental, social and governance goals in mind, as the abbreviation implies. That, in turn, has companies striving to operate with less waste and greenhouse-gas emissions. Graphic says green investing has opened up a market worth more than $6 billion a year for replacing plastic with paper on store shelves, even if that might result in consumers seeing slightly higher prices. Graphic’s gamble is a big test of whether the flood of ESG capital can transform supply chains. Plastic packaging is frequently less expensive than paper, is more effective in many applications, and sometimes even has a smaller carbon footprint. Consumer-goods companies will have to be persuaded that their customers will pay more and that paper packaging really is greener. Graphic executives contend their customers have little chance of meeting emissions and waste targets without substantially cleaner supply chains. …

MICHIGAN INSURANCE AGENT HEADED TO JAIL FOR SCAMMING CLIENTS INSURANCE BUSINESS • JAN. 31, 2022 • BY RYAN SMITH

A Michigan insurance agent is headed to jail for a year for scamming her clients out of hundreds of thousands of dollars, according to the state’s attorney general. Alicia Holbrook-Bloink and her insurance firm, Holbrook Insurance Agency, pleaded guilty to multiple felonies in December, according to Michigan Attorney General Dana Nessel. Holbrook-Bloink pleaded guilty to conducting a criminal enterprise, while the company pleaded guilty to conducting a criminal enterprise, embezzlement, identity theft, and tax evasion. Between 2015 and 2018, Holbrook-Bloink used her agency to embezzle nearly $375,000 by taking money from clients who had paid in full, then forging finance agreements with premium finance companies to ensure the clients’ policies were issued while Holbrook-Bloink stole their money. These finance contracts often went unpaid, resulting in the cancellation of insurance policies, often without the clients’ knowledge, the Michigan Department of the Attorney General said. The case was referred to the attorney general’s office by the state Department of Insurance and Financial Services (DIFS) after several of the victims filed complaints. It was investigated by DIFS and special agents from the attorney general’s office. “We thank the attorney general’s office for its partnership in prosecuting this case and bringing justice for individuals who were harmed by this crime,” said DIFS Director Anita Fox. “DIFS is committed to protecting Michigan consumers in the insurance and financial services industry.” Last week, Holbrook-Bloink was sentenced to a year in jail and three years of probation. Restitution will be determined at a June 10 hearing. “When the people we hire to protect our assets choose instead to pocket our money, there must be consequences,” Nessel said.

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Tickets available at DBusiness.com

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MATTHEW LAVERE

03-04.22

THE TICKER

26 A NEW DAY Following her disappointment with conventional beauty supplies, Gwen Jimmere took action and developed hair, face, and body care products she calls Naturalicious, in Livonia. The company also offers beauty supplements.

p. 26

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Good Hair Day

Place Your Bets

Catching Air

Global Michigan

PDA Q&A

Eagle Wheels

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Good Hair Day

BEAUTY BOOST After witnessing the potential damage hair treatments can cause, Gwen Jimmere started Naturalicious in Livonia. The company offers a line of hair and full-body care products.

horror at seeing that a hair product was able to dissolve aluminum, one of her main complaints about the other choices on the market was the length of time they took to use correctly. “How can I take that four-hour period of time and put it into 30 minutes?” she says she asked herself. Jimmere answered that question in 2013 with the launch of Naturalicious. After starting out selling her products at Eastern Market in Detroit, Jimmere’s line is now sold globally via naturalicious.net. She says that not only do her hair care offerings help save time, but they also instill confidence in those who use them. “I see this specifically with my customers when they first come in. Generally, they’re very hard on themselves because society has been hard on them,” she says. “Our philosophy at Naturalicious is that every woman is that standard of beauty.” Last December, the company expanded beyond hair into full-body care. It now offers gluten-free gummy vitamins for hair, nail, and skin health; powdered greens to supplement a healthy diet; a collagen supplement; and skin care products. The goal is to care for the body from the inside out. “It’s just like the soil on the ground,” Jimmere explains. “If the soil is tainted, the harvest is going to be withered.” The entrepreneur plans to stay busy in 2022, turning her focus from launching new products to taking the client experience to the next level. “I find that when we’re more focused on making sure we service the customer — making sure that she loves herself, that she understands how the products work, (and) providing her with all the tools and products that we can to supplement everything that she needs — it’s much more enjoyable for us,” she says. Jimmere is also sharing her knowledge through the recent release of her book, “Everything You Know About Hair is Wrong: The No B.S. Guide to Having the Hair You Want.” Her goal is to eliminate the guesswork that’s often involved in trying out beauty products, and giving people control over their hair.

Massive Industrial Building Coming to Detroit Artillery Armory Site Minneapolis-based The Opus Group, which has a subsidiary in Ann Arbor, is starting construction on a massive industrial building on the site of the former Detroit Artillery Armory on Eight Mile Road in Oak Park.

Corvette Celebrates Milestone with 70th Anniversary Edition The Chevrolet brand of Detroit’s General Motors Co. is commemorating the 70th anniversary of its iconic Corvette with Anniversary Edition packages for the 2023 model year Corvette Stingray and Corvette Z06.

A global beauty products business in Livonia is inspired by an aluminumeating hair relaxer. BY JAKE BEKEMEYER |

MATTHEW LAVERE

fter seeing the documentary “Good Hair,” which showed a tub of hair relaxer dissolving a soda can, Gwen Jimmere — who used the product in question herself — knew there had to be a better solution. “It just boggled my mind that I was putting this (stuff) that was able to disintegrate aluminum onto my body, in addition to the fact that I was pregnant,” says Jimmere, founder and CEO of Naturalicious in Livonia. “Anything you put onto your skin has the potential to go into your body and affect your inner workings.” The documentary inspired a break from using relaxers and, eventually, Jimmere developed her own solution from natural ingredients. In addition to her

DBUSINESS DIRECT

Jeep Debuts Grand Cherokee 4xe with Plug-in Hybrid Engine Stellantis’ Jeep brand announced the Grand Cherokee 4xe will offer an all-new, plug-in hybrid powertrain that delivers 25 miles of all-electric range and 56 MPGe, plus an all-new architecture and a new interior.

Ford Pro, California Winegrowers Join Forces to Electrify Farming The Sonoma County Winegrowers and Ford Pro are launching a pilot program that will add Ford F-150 Lightning Pro pickups, E-Transit cargo vans, and Ford Pro Intelligence services to three farms in Sonoma County.

Henry Ford Health, MSU Expanding Cancer Research Henry Ford Health System in Detroit and Michigan State University announced they are expanding their research and the treatment of cancer as part a 30-year partnership, after unveiling a unified brand in the fall of 2020.

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The Ticker

GLOBAL MICHIGAN

REALTYOFFER

MICHIGAN IS A national leader in attracting jobs and inbound foreign direct investment (FDI) from global companies, according to a new report by the Global Business Alliance. The report says that 317,000 workers in Michigan, including 202,300 manufacturing workers — ranking the state third among all U.S. states — are employed by more than 1,100 foreign-headquartered companies with plants, offices, and other facilities in the state. Additionally, 8.2 percent of all private sector workers in Michigan are employed by global companies — the fourth-highest share out of all 50 states. Michigan also boasts one of the fastest-growing FDI workforces in the country, according to the report. From 2014 to 2019, the number of Michiganders employed by global companies investing in the U.S. grew by 33 percent, making Michigan the No. 4 state in the nation. “Michigan’s status as a manufacturing powerhouse is hardly new,” says Nancy McLernon, CEO of the Global Business Alliance. “What’s changing, though, is the increasing role of global companies and global investment in fueling this manufacturing dominance. In 2019, for the first time ever, global automakers employed the majority of U.S. manufacturing workers in the automotive sector. “Nationally, global companies pay their American workers 18 percent more than the U.S. average.” — By Tim Keenan

Ann Arbor’s May Mobility Closes $83M Series C Funding Ann Arbor autonomous vehicle technology company May Mobility announced the initial closing of a Series C round of funding with an investment of $83 million led by Mirai Creation Fund II, a managed fund of Sparx Group Co.

Digital Move

A local real estate agent develops an online platform to streamline the sales process when buying or selling a home, potentially lowering commissions. BY R.J. KING

ultiple factors go into buying or selling a home, including location, the condition of the residence, and its age. The formula hasn’t changed much, which struck Thea Tuto, a licensed real estate agent since 2015, as an opportunity. Last year, she and her team launched RealtyOffer, a digitized bidding platform that connects buyers and sellers to agents who have pre-negotiated commission rates. In one instance, Tuto, CEO of RealtyOffer in Northville, says an agent agreed to drop their commission by 1.5 percent, leading to a savings for the buyer of $11,500 on the sale of a $750,000 home. “In this situation, the buyer used the savings to help cover various closing costs, while another buyer might use the savings to add home furnishings,” Tuto says. “In another instance, a client sold her home, purchased another residence, and saved $2,500 on the sale (the result of a 4 percent commission) that was used toward the closing costs.” Buyers and sellers who use the platform — an app is in the works — don’t pay a thing; RealtyOffer, which has eight employees, with plans to hire more, drives revenue through a monthly fee agents pay based on geographic reach. The service is available in Wayne, Oakland, Macomb, and Washtenaw counties. Plans are to expand the platform across Michigan this year and establish operations in two more states in 2023. “Our goal is to be across the country,” Tuto says. “Each week our website traffic is getting more unique visitors, and we’re seeing more deal flow. I think the housing market will open up once COVID19 begins to fade. We’re looking forward to a busy spring market.” Younger buyers are the largest users of the service. “We’re focusing on millennials because they love technology, which is why they make up a majority of those using the bidding platform,” she says. “Overall, we were concerned how the platform would be received by agents and brokers, but you have to spend money to make money. We’re giving agents an opportunity to make a bid on our platform.” Here’s how it works: At the start, the digital

Guardhat Doubles Revenue, Expands Reach in 2021 Detroit-based Guardhat, a connected workers solutions company, says it doubled its revenue year-over-year in 2021 and ended the year with more than $30 million in orders. It saw growth in oil and gas, among other industries.

Sugar Factory American Brasserie Coming to Downtown Detroit Sugar Factory American Brasserie will open in downtown Detroit in late spring. Located at 45 Monroe St. in Bedrock’s One Campus Martius building, the 233-seat restaurant will feature Sugar Factory’s candy retail store.

GM to Invest $7B Investment in Michigan General Motors Co. in Detroit announced a more than $7 billion investment in four Michigan manufacturing sites, creating 4,000 new jobs. The investment includes a new $2.6 billion Ultium Cells battery cell plant in Lansing.

service allows homebuyers and sellers to specify their needs through the purchase or selling experience. Next, agents in the area may choose to lower their commission rate for a seller to bid, or they could help the buyer and offer part of their commission to use toward the buyer’s closing costs. From there, homebuyers or sellers are sent three bids from matched agents, and they can select the agent that gives the best offer. REAL SAVINGS “We’re bringing more Thea Tuto, a licensed real transparency to the resiestate agent, launched dential marketplace, and RealtyOffer in Northville last year to help homebuyers and in this way, everyone sellers save costs. wins,” Tuto says.

D/CAL, Gibson Relaunch Iconic Maestro Brand Following a global launch for Gibson’s newest acoustic guitar collection, the strategic creative agency D/CAL in Detroit and Gibson Brands have relaunched Maestro, the brand that pioneered guitar effects.

For full stories and more, visit dbusiness.com/daily-news to get daily news sent directly to your email.

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Place Your Bets

Michigan’s foray into sports betting has been a boon for casinos and government. BY DAN CALABRESE

hile 2020 was the first year in which sports betting was legal in Michigan, it was 2021 when it became available not only in brick-and-mortar casinos, but also online. The numbers generated last year give every indication that Michigan sports bettors fully embraced the opportunity. According to the Michigan Gaming Control Board, Michigan bettors wagered $3.6 billion on internet sports wagers in 2021, resulting in $292 million in gross revenue and $7.3 million in betting for the state. That’s in addition to $310.6 million wagered on sports inside casinos (up from $130.7 million in 2020), which generated $27.3 million in gross revenue and $1 million in state wagering taxes. The busiest month for sports bettors was last December, coming in at a whopping $514.7 million wagered. Christopher Boan, an analyst with Gambling. com Group, says the primary factor in December’s heavy activity was the stretch drive of the National Football League season. “The last few weeks of the season, the NFL is king,” Boan says. “It’s the home stretch, the playoff seedings are being determined. And even in Michigan, where you have one of the worst teams in the NFL, people are going to be watching.” Boan acknowledges the state did a good job allocating licenses to operators. Michigan law requires that all sports betting, both retail and online, be handled by established operators and licensed by the state. The operators who obtained licenses in Michigan were the three Detroit casinos, in addition to 11 different Indian tribes that operate their own casinos. Even so, licensed operators work in partnership with operators

GAME ON While Michigan sports bettors wagered $3.6 billion last year, another $1.1 billion was generated in 2021 from online offerings of such classic games as poker, blackjack, roulette, baccarat, and more

outside the state, such as DraftKings and Caesars, so not all the money that’s wagered will necessarily stay in Michigan. The taxes earned by the state and other governmental units, however, are revenues they would not otherwise have had. Jake Miklojcik, a gaming expert and president of Michigan Consultants in Lansing, says multiple parties get a cut of online sports betting revenue. “Every winning bet has 5 percent to 10 percent that goes to the house, and then expenses are taken out in some way, and the state and city get a portion of that,” Miklojcik says. “So, if you make a $100 bet and win, if it’s an even bet, you might get $90 back plus the $100

( for a total of $190). The extra $10 might go to the operator, and there’s an agreement to provide so much money to the state.” The casinos have all opened sports bar-type venues to encourage people to come in and do their betting on-site, in the hope of generating additional revenue from other offerings. But as the numbers show, most of the sports betting in Michigan is now online, which means the casinos will mainly benefit from their percentage as the licensed operators. Boan believes Michigan’s first-year performance positions it to become a top-five market for sports betting. “It’s a die-hard sports state,” he says.

PDA Q&A: THE E-INTERVIEW DB: WHERE ARE YOU?

LOU MELONE Managing Member Melone Private Wealth, Auburn Hills

LM: In Florida, on the Gulf side, where I’m visiting clients from Tampa and St. Petersburg down to Naples. I’m here for a week to do year-end reviews and (and plan for future growth). DB: HOW’S BUSINESS?

LM: We’re growing the firm and looking to add

two or three more certified financial planners. When our clients do well, we do well. Our client focus is on family businesses and business owners.

DB: WHAT ARE THE TRENDS?

LM: There are still lingering effects from COVID-19 as our clients and many businesses look to find people to work.

Inflation is another concern. The other trend we’re seeing is that the markets bucked the system. With a pandemic, it would be reasonable to project that the markets would slow, but we didn’t see that.

DB: WHY IS THAT?

LM: The markets were up by double-digits. Success

like that comes down to earnings. They were good overall in 2021, and that drives market growth. The other thing is we’re very focused on working with high-net-worth families who have businesses. We’re not looking to have 300,000 to 500,000 clients; rather, we work closely with our clients.

DB: HOW’S YOUR BOOK DOING?

LM: During the pandemic I wrote “Unpack Your Financial Baggage.” It’s about the misconceptions people have about financial and retirement planning. I’m glad I wrote it when I did, because a lot of people are retiring. — R.J. King

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Catching Air Two entrepreneurs take a leap of faith on a public entertainment franchise. BY JAKE BEKEMEYER

ong before buying into an Urban Air Adventure Park franchise, Amer Batal and Wassem Ayar came with their families to the U.S. from the Middle East in search of opportunity. Batal’s father, an English professor, moved the family from Syria after a stint at the University of Florida. Ayar’s story is similar; he comes from a well-educated family living in relative financial comfort. The impetus for his parents to leave Iraq was the start of the Gulf War in 1991. “My parents thought it wasn’t the right environment for my brother and (me) to grow up in,” Ayar says. “So they packed up whatever they could in a suitcase and (my father) fled the country with myself, my brother, and my mother, who was one month pregnant at the time.” The journey for his family wasn’t easy, as they had to rely on smugglers to get them into the United States. Eventually, though, both families found their footing. Fast-forward a number of years, and Batal and Ayar owned wireless franchise stores, while Batal also operated an over-the-road trucking business. During a trip to Indiana with his family, Batal came across an Urban Air location. “My kids had a blast. They were there for more than a couple of hours and weren’t bored. I thought, ‘You know what, this would be a good business to have in Michigan,’ ” he recalls. After visiting the corporate headquarters in

Texas, he came back to Michigan in need of a partner. He pitched the idea to his longtime friend, Ayar, who said he needed to see it for himself. The two decided to attend the grand opening of an Urban Air in Pennsylvania. “When we got there, it was insane. The amount of people that were inside, the attractions. My kids absolutely loved it,” Ayar says. Batal’s focus had already shifted from wireless, and the trampoline and attraction park finally pulled Ayar away, too. Their company was incorporated in December 2017, and the friends opened their Urban Air location on Oct. 5, 2019. The launch was a success. When Urban Air Adventure Park Sterling Heights had to shut down after just six months of operation due to the coronavirus pandemic, it was already a top-five performing franchise in the nation. When the park reopened after the pandemic restrictions were lifted, Batal and Ayar were in for a surprise. Instead of the anticipated slow start, the business grew. Now, the partners are working on opening a second park in Commerce Township. “We saw a lot more people during the week than we did before COVID-19. It took 30 to 60 days, and we ramped up to pre-COVID-19 levels of revenue at 50 percent capacity,” Batal says. “It’s not only what we’ve done as franchisees, but what corporate has done for brand recognition and (taking) the right steps in coaching us through what we need to do to get out of COVID-19 and prevail.”

UPS AND DOWNS When the Urban Air Adventure Park in Sterling Heights was closed in March 2020 due to COVID-19, co-owners Amer Batal and Wassem Ayar thought of selling the operation, but they decided to hold tight.

COURTESY URBAN AIR ADVENTURE PARK

EASTERN MICHIGAN UNIVERSITY’S GameAbove College of Engineering and Technology is demonstrating its commitment to the future by deploying autonomous shuttles at the Ypsilanti campus and opening a research and development space at the American Center for Mobility (ACM) in Ypsilanti Township. EMU’s vehicle laboratory at ACM supports ongoing research in autonomous vehicle cybersecurity. The university began moving into the space at the start of the fall 2021 semester. In addition to growing its autonomous and connected vehicles work, the partnership supports a new senior research engineer position and will help to secure grants and other projects with industry leaders like Perrone Robotics and others. Nicknamed Eagles, after the Mid-American Conference university’s athletic mascot, the Ollis shuttles — which will soon be operational — are manufactured by Local Motors in Phoenix. “This partnership is important to showing the utility and capability of Ollis,” says Jay Rogers, CEO of Local Motors. “The project with EMU will focus on how autonomous solutions, like Olli, connect people with safe transportation alternatives and present new learning opportunities.” James Smith, president of EMU, says, “These projects represent a dynamic step forward for the university. Having our students engaged and active in the world of autonomous vehicles, and the research that takes place on our campus and at the American Center for Mobility, will give them a distinct advantage as they pursue their future careers.” — By Tim Keenan

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Across Michigan, family-owned companies and organizations have lasted more than 100 years by navigating an ever-changing marketplace that’s today compounded by a tight job market and inflation. By Ronald Ahrens and Tim Keenan

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Back and Forward

From yesteryear’s ‘Cabinet of Curiosities’ to today’s ambitious oral history projects, the Detroit Historical Society has kept its finger on the city’s pulse. BY RONALD AHRENS

enjoyed crucial support from Leonard Simons, who was also instrumental in founding the Wayne State University Press. “Stark and those guys went out and found the money, mostly from old, well-heeled Detroiters,” Stone says. Within three years, $250,000 was raised for a museum. The DHS offered the money, along with 15,000 artifacts, to the City of Detroit, which created the Detroit Historical Commission to build and operate a museum. Designed by William Edward Kapp of Smith, Hinchman, and Grylls (today SmithGroup in Detroit), the modernist building at 5401 Woodward Ave. was dedicated on July 24, 1951, on Detroit’s 250th birthday. The arrangement with the City worked for more than 50 years. In 1961, the Dossin Great Lakes Museum opened on Belle Isle, and received marketing and fundraising support from the DHS, which also threw its embrace around Historic Fort Wayne. But Stone recounts how “the City’s fortunes really started to change.” This was part of a national trend that found municipalities needing to shed obligations. “In 2006 the City came back to the society and said,

HISTORY CLASS The Detroit Historical Museum, along Woodward Avenue in Detroit’s Midtown, continues to be a draw for residents, schoolchildren, and visitors.

‘We're having financial issues. We’re going to have to close the museums. Can you help us keep them open?’ ” The DHS reassumed management of the museums in 2006, and a fundraising campaign in 20122013 enabled renovations to both buildings. Meanwhile, the City’s Parks and Recreation Department took over Historic Fort Wayne, where the DHS still warehouses 250,000 artifacts, including about 70 cars and trucks. In 2018, Elana A. Rugh was appointed the society’s executive director and CEO, and today she’s leading a drive “to make sure that our stories are reflective of the city today.” She says she’s aware of the “huge responsibility to connect more with the community.” Oral history projects have gained importance, and artifacts such as COVID-19 vaccination flyers and even face masks are being gathered. Rugh adds that the museum is “not just about old dusty things, but what’s happening now and what will be happening in the future — that’s how we’ll be relevant.”

DETROIT HISTORICAL SOCIETY

he Detroit Historical Society was slow to get off the ground, but after its formation in December 1921, it opened “the highest museum in the world.” The Detroit Historical Museum, established by the DHS in 1928, originally occupied space on the 23rd floor of today’s Cadillac Tower, east of Campus Martius Park. Despite the original endowment of clippings and files collected by lawyer and historian Clarence Burton, the museum’s location was its most distinguishing feature. “It became very much like museums of the day,” says Joel Stone, curator emeritus of the DHS and author of “100 Years of the Detroit Historical Society,” published last December by Wayne State University Press. “It was a cabinet of curiosities — things just put in cabinets, with very little interpretation.” Stone says one of the original, generous founders may have rented the space. There was enough room for demonstrations of arts such as weaving, but “the people from the other offices were always upset” when a visiting troop of Boy Scouts would take over the building’s elevators for five or 10 minutes. One question concerns the relatively late date for the DHS’s founding. The Cincinnati History Library and Archives, for example, was started in 1831. It turns out that the Historical Society of Michigan had come into being even earlier: 1828. (It was one of the first such organizations in the country.) The state society went about its business in Detroit until its move to Lansing in 1874. For more than four decades, there was an opening in Detroit for a historical-preservation organization with a local focus. Through the Great Depression, the DHS gained little momentum even after the museum moved to a house on Merrick Street, near the Detroit Public Library’s main branch. During World War II, a key development was the involvement of George Stark, whose “Town Talk” column was required reading in The Detroit News. With an eye toward the creation of a fine facility, Stark became president of the DHS and

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Sitting Pretty Originally staffed with 18 people, Lear Corp. ranks 166th on the Fortune 500 list and faces a bright future as an auto supplier. BY RONALD AHRENS

rederick Matthaei liked to think big, as in bringing the Olympic Games to Detroit. Over three decades, starting in 1936, Matthaei led the Detroit Olympic Committee in hopes of changing his native city’s image as a “dirty factory town.” In September of 1946, the committee applied to host the 1952 Games, stating, “Metropolitan Detroit’s 2 million citizens have kinship with, and the utmost affection for, all of the nationalities of the world.” The Olympics eluded Detroit — one of the few unchecked boxes in Matthaei’s fruitful life. He had launched his American Metal Products Co. on Aug. 24, 1917, in Detroit. Eighteen employees made tubular, welded, and stamped assemblies for autos and airplanes. Eleven years later, AMP made the first seat frames with coil springs. By the start of World War II, the company had exceeded $1 million in annual sales, it was serving 12 customers, and it employed 900 people. During wartime, AMP departed from its main offering to produce assemblies for aircraft as well as axle housings for military trucks. Sales hit $11 million in 1944. Innovation in the postwar period led to AMP’s

exclusive design for machinery to make seat springs. Matthaei’s son, Frederick Jr. — a University of Michigan graduate like his father — helped develop seat adjusters in the early 1950s. Matthaei Sr. stepped down as president in 1954, but remained four more years as chairman. Electrically powered seat adjusters were another of the company’s milestones, then contoured, self-leveling seats for semi-tractors. AMP topped $72 million in 1957 sales. AMP was acquired in 1966 by Lear Siegler Inc., which had originated in 1962 when inventor and businessman Bill Lear sold his interests in Lear Inc. to Siegler Corp. and undertook a new venture to mass-produce business jets. As a conglomerate, Lear Siegler pursued diverse operations. Meanwhile, automotive seating became more complex with additional power-operated functions, swiveling bases, and the integration of headrests. The next step for LSI’s General Seating Group was to devise processes for the “just-in-time” supply of fully trimmed seats to final-assembly plants. In 1987, the private-equity firm Forstmann Little and Co. acquired LSI for $2.1 billion. The next year the General Seating Group was spun off, with its 12

plants, in a $507-million management buyout led by executive Kenneth Way, forming Lear Siegler Seating Corp. (It later became Lear Seating Corp.) To complete the deal, the executives even had to mortgage their homes. “They’ve got us handcuffed, and there’s no turning back,” Way told The New York Times. “A guy like Ken Way in the 1990s was a real visionary,” says John Taylor, associate professor of supply chain management at Wayne State University’s Mike Ilitch School of Business in Detroit. “Not only did (he) see the trend toward outsourcing, but some other critical things, as well — one being that you need to be a global player.” To that end, Lear’s 1997 acquisition of Keiper Car Seating for $235 million solidified relationships in the German auto industry. While Lear has since experienced ups and downs, including reorganization during Chapter 11 bankruptcy in 2009, the company can forthrightly face a future in which electric vehicles will require fewer parts — but autonomous ones demand different interior features. “That plays to Lear’s strength,” Taylor says. “They’re pretty well-positioned compared to many large Tier 1 suppliers.” And perhaps that’s how Frederick Matthaei would have drawn it up.

LEAR CORP.

TAKE A SEAT During the era of rapid globalization, Lear Corp. benefited as the auto industry moved toward the outsourcing of component manufacturing.

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Family Trade The end of Louis Schostak’s rabbinical studies was the beginning of a sprawling, multifaceted real estate and development business.

“T

steered his father toward ownership interest in properties such as Livonia’s Wonderland Center, which Schostak Brothers opened in 1959. Starting in the late 1970s, Jerome’s sons — Robert, David, and Mark — joined the business, adding new salience to the Schostak Brothers name. And they found themselves at a crossroads. Today’s CEO, David, recalls how they built a Kmart in Alpena, intending to sell an “outlot” for a Burger King; “Long story short, we became the Burger King franchisee and opened up that restaurant in 1981,” he says. Eventually, brother Mark oversaw a dozen Burger Kings under the Team Schostak Family Restaurants banner. Sticking with Burger King, Team Schostak expanded to 70 Michigan locations by 2002. With new professional management on board, operations were refined with the slogan “Lead the Way,” as well as an increased commitment to customer and employee satisfaction. In 2004, Team Schostak agreed to develop 15 Olga’s Kitchen restaurants. (Eleven years later, the company acquired Olga’s Kitchen Inc., bringing 25 restaurants out of bankruptcy for nearly $11 million.) In 2009 and 2010, Team Schostak earned Del Taco’s Franchisee of the Year honors. Meanwhile, MOD Pizza franchises joined the portfolio. The big step in 2012 was buying 65 Applebee’s restaurants in Michigan from DineEquity, a

California company, for $61 million. Three years later, the Burger Kings were sold to GPS Hospitality, of Atlanta, for an undisclosed price. “Coincidentally enough, after selling those, then the opportunity came (in 2019) for us to buy 56 Wendy’s in the Michigan market,” David Schostak says. That gives Team Schostak about 165 restaurants today. Meanwhile, under the direction of Jeffrey Schostak, a fourth-generation leader, Schostak Development looks for shopping centers, office buildings, and industrial space. A 2019 announcement revealed a joint venture between Schostak Brothers & Co. and the Detroit Pistons to demolish and redevelop The Palace of Auburn Hills and manage a future mixeduse complex there. With fourth-generation Schostaks already in action and an abundance of fifth-generation grandchildren, succession planning is an everyday matter. David Schostak asks, “Do you want to be a clock-builder or time-teller?” The idea is that a clock-builder can keep ticking along. “The next FOUR GENERATIONS A relationship with Kresge generation will continue allowed Schostak Brothers & to make changes and purCo. Inc. to build the world’s first sue avenues and interests Kmart store in Garden City in that are exciting to them,” 1962. It was one of the first centers to offer parking in front. he adds.

TEAM SCHOSTAK

here was a time when a seminary student was pictured as a thin, emaciated looking figure,” Louis Schostak wrote in 1921. “The modern rabbi, however, must be strong both in mind and body.” At the time, Schostak was urging officials at Hebrew Union College in Cincinnati to build a gym and tennis courts. But he abandoned his studies after a controversial guest sermon, about which he disagreed with officials of the Queen City, and before long the young man found himself in the real estate business back in Detroit, where Rabbi Wolf Schostak and his family had ended up after leaving Ukraine in 1906. Specializing in residential brokerage, Schostak Brothers & Co. was a partnership among Louis and two brothers. They went their separate ways during the Great Depression, and Louis focused on commercial work. After World War II, his 14-year-old son, Jerome, served his father as a messenger. “At 18, I was walking the neighborhoods, making surveys, and compiling information about the stores,” Jerome told The Jewish News decades later. He earned a business degree from the University of Michigan in Ann Arbor. Rather than representing tenants such as Winkelman’s, S.S. Kresge, and Petrie Stores as they expanded beyond downtown locations, Jerome

BY RONALD AHRENS

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Protecting Knowledge Harness IP in Troy protects the increasing wealth represented by intellectual property. BY RONALD AHRENS

HARNESS IP

enry Schwager had a better idea about a muffler for internal-combustion engines. Applying for a patent in 1924, the Royal Oak resident turned to 26-year-old J. King Harness, who had started a legal practice in Detroit three years earlier, after leading the patent department at Ford Motor Co. While Schwager’s application progressed, Harness, a pioneering specialist in patents, added two partners to his firm from his days at Detroit College of Law: Art Dickey and Hodgson Pierce. The firm of Harness, Dickey & Pierce delivered welcome news to Schwager in 1926: The muffler patent was granted. From garage geniuses to immense multinational corporations, the representation of clients on patents and intellectual property has continued as the specialty of Harness, Dickey & Pierce. Along with celebrating its centennial on May 15, 2021, the firm rebranded itself, taking the name Harness IP. “Our name is what we do,” says CEO Raymond Millein, who arrived last year after a stint in Sweden as chief IP officer at Volvo Car Corp. “It’s pretty trendy for law firms to go to single names as opposed to listing everyone on the door, and most people on the door have passed away.” Indeed, Harness outlived his partners and until his retirement in 1962, he split his days between private practice and serving as chief patent counsel for Chrysler Corp. By then, the firm had 26 lawyers. Two of Harness’ sons were among them, and Don Harness took a leadership role. HD&P’s first office was in the former Majestic Building, which opened in 1896 and has since been replaced by the 1001 Woodward Building. The firm soon moved to the General Motors Building in New Center, and eventually to the Fisher Building. In 1973, there was another move — to Birmingham. Harness IP today operates out of offices in Troy, still within striking distance of the Elijah J. McCoy Midwest Regional Office of the U.S. Patent and Trademark Office, located in the Stroh PATH OF INVENTION Harness IP in Troy got its start Building at 300 River Place in 1921, when it was based in Dr. in Detroit. Detroit. In the early days, the Additional offices are firm helped protect the in Clayton, Mo.; Frisco, inventions borne of the automotive industry. Texas; and Reston, Va.

(just 35 minutes from the USPTO headquarters in Alexandria). Millein visits each branch once per quarter to keep abreast of cases being handled by the firm’s nearly 100 lawyers and about 150 non-attorney employees. Besides paralegals, docketing specialists, and human resources staff, the firm has its own information technology team. Longtime clients are General Motors Co., Chrysler, 3M, Nokia, and Samsung, as well as major universities and research institutions. Budding Thomas Edisons seek representation, too, although Millein says the large companies generate vast numbers of patent applications. “If you employ 3,000, 4,000, 5,000 engineers, their job is to create things, and you have to get the legal rights around them,” he says. “That’s intellectual property.” Control of knowledge and images is ever more crucial; algorithms, trade secrets, and the workings of search engines must be protected. “That is now the measure of wealth in the 21st century, and if you look at the book value of the S&P 500 companies, over 75 percent of that is intangibles like intellectual property,” Millein adds. As the landscape has changed, so has the general view of IP lawyers, who used to be seen as “folks in the corner.” The specialized nature of IP practice means that budding talent must pass through narrow gates, starting with an undergraduate degree in science or engineering. Millein, for example, studied computer science at Columbia University before attending law school at George Washington University. Patent law and trademark protection is serious business, even when representing a cartoon figure. In 1952, Kellogg Co. introduced its Tony the Tiger trademark on food products. Twelve years later, Humble Oil and Refining Co., a Standard Oil Co. subsidiary, unleashed its own tiger, urging gasoline buyers, “Put a tiger in your tank!” Many years passed, and the cartoon tigers coexisted. After Standard Oil became an element of Exxon Mobil Corp., a new initiative created Tiger Marts — without the expansion of trademark protection. Kellogg enlisted Harness to sue. In 2000, Exxon’s move was deemed “progressive encroachment,” and Kellogg and Exxon reached a settlement. Once again, Harness had earned its stripes. March - april 2022 || DBUSINESS.COM 35

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The Last Ride

The Calcaterra and Bagnasco families have been taking care of mourners in metro Detroit since 1908. BY TIM KEENAN

need to expand their operations. In 1937, the Calcaterras relocated their business to East Grand Boulevard. The Bagnascos followed in 1953. Metro Detroit’s Italian population shifted again from the city center to the near-east side and the northeast suburbs, and the Calcaterras and Bagnascos again migrated, along with their customer base. In 1962, Bagnasco Funeral Home — then run by Frank’s widow, Bessie, and her two sons, Sam and Anthony — moved to its current location on Harper Avenue in St. Clair Shores. In 1965, Louis Calcaterra and his four sons — Louis Jr., Frank, Paul, and Lawrence — moved their operation to the corner of Moross (Seven Mile) and Kelly roads. In the 1980s, the Italian migration continued its progress northeast. In 1980, one of the Calcaterra brothers, Lawrence, became partners with his longtime friend, Edward J. Wujek, from the prominent Polish funeral family, and opened Wujek-Calcaterra and Sons Funeral Home at Schoenherr Road and Metro Parkway in Sterling Heights. In 1998, Wujek-Calcaterra opened a second location at Van Dyke Avenue and 25 Mile Road in Shelby Township. In 1984, the three remaining Calcaterra brothers bought an existing funeral home on Schoenherr Road at 15 Mile Road in Sterling Heights. More than a decade later, the Frank J. Calcaterra Funeral Home in

Detroit closed in 1996. In August 2000, the brothers sold Frank J. Calcaterra Funeral Home Inc. to Carriage Services, a conglomerate based in Houston, which purchased the building, company, and name, along with other area funeral homes including Bagnasco Funeral Home. Carriage Services and the families decided to put the two Italian names together. “When we merged, so many families were happy because northern Italians had married Sicilians, and now they could both go to the same place,” Calcaterra says. Calcaterra and William Bagnasco remained involved in the merged companies. Bagnasco passed away in August 2021, and Calcaterra still is actively involved in the business. “It’s gone through many changes, but the big change is the philosophy of death and dying,” Calcaterra says. “We’re in the era of throwing things away. That’s why there’s so much cremation. The problem with cremation and the funeral business is there are no products being sold. The casket is minimal, or a rental. There’s no vault because you’re not burying (people) in the ground. But you still have the building to maintain and the personnel you want to keep. It’s tricky.”

REST IN PEACE The Bagnasco and Calcaterras families have been running funeral homes separately and together since 1908. Over time, many family members have been in the business.

BAGNASCO AND CALCATERRA FUNERAL HOMES

he funeral business is one of the most ethnically driven industries around. It was even more so in the early 1900s, when the roots of the Bagnasco and Calcaterra Funeral Homes were planted on Detroit’s east side. In 1908, three Italian American brothers — Frank J., Louis C., and Paul C. Calcaterra — opened Detroit’s first Italian funeral home, the Frank J. Calcaterra Funeral Home near Eastern Market. The business catered exclusively to the Italian immigrants who gathered in that neighborhood. “The ethnic focus comes from family traditions and the fact that in the old neighborhoods, the different nationalities lived in the same areas because of the language barrier,” says Paul R. Calcaterra, 86, president of the Bagnasco and Calcaterra Funeral Homes. This trend continues, as 70 percent of the company’s business is still Italian. In 1915, Frank T. Bagnasco started his funeral business, Bagnasco Funeral Home, on St. Aubin Street in the same neighborhood as the Calcaterras. The Bagnascos catered to Sicilian families, whereas the Calcaterras were favored by people who hailed from northern Italy. “There was always dissention between the northern Italians and the Sicilians,” Calcaterra says. “Among older folks, that’s still a little bit alive.” As Detroit's population grew, both families saw the 36 DBUSINESS || March - april 2022

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Perspectives

Perfect Storm

The pandemic, e-commerce, labor shortages, and supply chain issues are further igniting the transformation of the retail industry. BY BILL DOW | ILLUSTRATION BY JAMES YANG

or the past two decades, the retail industry has undergone a metamorphosis as consumer spending habits have shifted with the growth of online shopping, the decline of department stores and suburban malls, and the proliferation of discount retailers. And when the COVID-19 pandemic changed the world two years ago, with stores and restaurants temporarily closing and office staff working from home, the reeling retail world was upended with labor shortages and supply chain challenges. While 2019 saw a record number (9,302) of permanent store closures in the U.S., 2020 broke that record with 12,200 store closures. Labeled a “retail apocalypse” by some, one third of the closures were department stores, clothing chains, large chain retailers, and mall-oriented companies, according to CoStar Group, a commercial real estate firm. That same year, more than two dozen major retailers filed for bankruptcy, including Nieman Marcus, J. Crew, Pier 1, and the parent companies of Ann Taylor and Men’s Warehouse. Locally, a number of stores and restaurants closed their doors, including Love’s Furniture ( formerly Art Van Furniture), Manus Power Mowers,

multiple Fitness 19 locations, the Hi-Hat in Ferndale, the Bucharest Grill, Rosie O’Grady’s, Town Tavern, the Detroit Institute of Bagels, Andiamo’s Dearborn, and more. Thankfully, a savings buffer of nearly $2.5 trillion, boosted by federal subsidies and higher wages, was accumulated by consumers. After largely living and working in place for several months, as stay-at-home orders and mask mandates were lifted, pent-up demand created a return to brick-and-mortar stores while online sales continued to grow. According to the National Retail Federation, through the first nine months of 2021, spending continued at a brisk pace — up 14.5 percent year over year — and has returned to pre-pandemic levels. However, the NRF’s chief economist, Jack Kleinhenz, warned in November that “COVID-19 remains a significant factor, and should there be an increase in infections, (it) could cause a pullback in spending.” According to Katie Rizzo, a research analyst for Collier’s International, retail is on the road to a slow recovery. “Restaurants and small businesses were hit the hardest when we were closed for some time, and we lost a lot of retailers, but some of those spaces have now been replaced by secondary users and

there’s active absorption,” Rizzo says. As a result of the temporary closing of stores and restaurants, many businesses scrambled to survive by creating a greater online sales and social media presence while offering services such as curbside pickup, increased delivery services, and online delivery at service centers. At the same time, stay-at-home mandates and social distancing requirements caused many consumers, some for the first time, to rely on buying products online. According to the NRF, nearly 45 percent of baby boomers who were surveyed said they’re now shopping more online. “The pandemic accelerated consumers to e-commerce by a lot, and probably by three to five years,” says Jaime Ward, the head of retail finance for Citizens Bank in Southfield. “In addition, consumer options have multiplied considerably, like curbside pickup, and they’re taking advantage of it.” The retail sector in Michigan and the U.S. has continued to be transformed by e-commerce, particularly amid the pandemic. National digital sales have increased from 8.8 percent of total retail sales in 2017 to 13.6 percent in 2020, according to the U.S. Census Bureau.

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A report prepared by Public Sector Consultants for the Michigan Retailers Association estimated that out-of-state e-commerce and remote purchases totaled $26.7 billion in 2020, while 16.8 percent of Michigan’s total retail sales were with e-commerce and other remote purchases. As a counterweight, the MRA has instituted a “Buy Nearby” campaign to encourage Michigan consumers to divert some of their purchases to in-state options. “We found that if all Michigan purchasers redirected just one in 10 of the out-of-state purchases to an in-state retailer, it would generate 14,000 new jobs and $1.9 billion in gross economic output for the state,” says William Hallan, president and CEO of the Michigan Retailers Association. Last April, a UBS analysis stated “the U.S. could lose 81,000 retail locations over the next five years assuming e-commerce sales rise to represent 27 percent of total retail sales by that time, with the most dire scenario of about 150,000 closing.” The report said office supply, sporting goods, clothing retailers, and consumer electronics would be hit the hardest. Still, not everyone predicts doom and gloom for retail stores, which are increasingly pivoting to include more online shopping for their customers. “This so-called ‘retail apocalypse’ term is an example of bad news selling stories,” says Jim Bieri, principal of Stokas Bieri Real Estate in Detroit. “Retail stores aren’t going away. Over 85 percent of sales are still done in person, and although e-commerce will continue to grow because of the convenience, it’s not a panacea. Often you buy online, and then you have to send things back. People still like to go and shop in nice stores,” he says. Patricia Huddleston, professor of retailing in the Department of Advertising and Public Relations at Michigan State University in East Lansing, agrees. “E-commerce is the shifting of modality going through a different channel, but this year the number of store openings is almost double the number of closures,” she says. “The state of brick and mortar isn’t as dire as some people portray it. The vast majority (of consumers) do like the in-store shopping experience, and it’s been borne out by the pandemic that people really did miss the in-store experience. What we’re finding is that consumers can have the best of both worlds because retailers have really ramped up their efforts to ‘click and collect’ by buying online and picking things up at the store. But there has been some displacement of retailers, and it’s sector-specific.” Department stores and suburban malls, except for the upscale Somerset Collection in Troy, continue to struggle — largely because of the failure of department stores, Bieri says. In recent years, area malls that have closed include Summit Place Mall in Waterford Township, Northland Center in Southfield, and Eastland in Harper Woods. The latter is set to be demolished this year and replaced by three large warehouse buildings. In 2021, Green Street analysts warned that the pandemic was speeding up the disappearance of department store anchors in malls, and estimated

that more than half of mall-based department stores would close by the end of 2021. In turn, that’s chased some specialty stores away from malls, since there’s less foot traffic. “The biggest trend in the last couple of years has been freestanding street-front specialty stores,” Bieri says. “Just go on Big Beaver Road from the Somerset Collection to Rochester Road, and you’ll see what I mean. It’s more targeted to consumers’ needs. They pull in and get what they want.” Meanwhile, value shoppers continue to gravitate to discount retailers such as Marshalls, Burlington, and Dollar General — the latter of which operates 18,000 stores in the U.S., with plans to open 1,000 more of its Popshelf stores by the end of fiscal year 2025. The ebb and flow of store openings and closings continues. At the same time the Dollar General announcement was made, CVS revealed that it’s planning to close 900 stores over the next three years. Phil Cody, a retail broker for 40 years who’s based in downtown Milford, has seen the retail industry and spending patterns change over time. “Retailers who are good retailers are still in business, and retailers who aren’t good retailers are going out of business,” says Cody, pointing to the demise of Sears, Montgomery Wards, and Kmart as examples. “Department stores didn’t adjust to the new world of retailing, and the off-price industry has put enormous pressure on department stores because of their pricing, availability, and people’s changing buying habits. Today’s consumer has no allegiance to a retailer, because if they find something cheaper and better, they go there.” He adds brick-and-mortar stores that were slow to catch on to the internet are hanging on by their fingernails. “Retailers are downsizing their stores and renegotiating their rents because they’re doing less volume,” Cody notes. “Landlords are providing concessions because there’s such a high cost to replace tenants today with downtime, renovations, and commissions, which could be the equivalent of a year’s rent that you never recover. (Which) stores are opening and closing these days is based on category. Home improvement stores have soared but soft goods, clothing, and cleaners are going out of business left and right.” Determining the winners and losers in the retail industry comes down to who can best attract and retain customers. “Consumers have shown that they want all kinds of options on how to buy a product, so you have to take an omni channel approach. That includes a brick-and-mortar store; a robust website you can use on your mobile phone, since most e-commerce sales are off of mobile phones; efficient curbside pickup; and free shipping and free returns, (which is) almost universal now,” Ward says. In turn, retailers need to have the products people want. “If you don’t buy and stock the right merchandise, then it doesn’t matter how good your digital strategy is or where you’re located; you aren’t going to survive,” Huddleston says. “Also, younger consumers, particularly the millennials and Gen Z, are looking

STATE OF THE OFFICE MARKET WHEN THE COVID-19 pandemic stay-at-home orders took effect in March 2020, a mass exodus from office buildings began as employees worked remotely and conducted virtual meetings through video calls. According to a report released by Gallup last September, two-thirds of employees in white collar jobs (67 percent) reported working from home either exclusively (41 percent) or some of the time (26 percent), a trend that continued from the summer. The office structure as we knew it before the pandemic will never be quite the same, as Gallup found that employees and employers foresee making remote work a permanent offering — at least on a hybrid basis. For the Detroit-area office market, it’s not as bad as one might assume, according to local experts. “Across the entire market, the occupancy rate with leases signed for offices prior to the pandemic was 90 percent, and now it’s 87 percent (through 2021), so we didn’t lose a ton of occupancy,” says Katie Rizzo, a research analyst for Collier’s International, which has offices in Southfield and Birmingham. “Businesses are still paying their rent even if those offices aren’t fully staffed, with more people working remotely. Physical occupancy is very low at this point. Those tenants with a lease expiration within the last two years simply renewed for short terms until they can figure out what their plans will be. We’re doing a ton of showings, but the decision-makers don’t know quite what to do yet. There’s this paralysis in making a decision because of the unknown.” Andy Gutman, president of the Farbman Group in Southfield, which either owns or manages 200 office buildings in the area, remains optimistic. “We don’t see the gloom and doom that some people are predicting,” he says. “People were expecting everything was going to shrink, but that’s not what we’re seeing. We’ve seen a tremendous amount of activity, with people renewing or entering into new leases.” Simon Jonna, executive vice president of the Jonna Group in Birmingham, also remains optimistic about the office market. “With COVID-19, office space has undergone a little bit of a stutter step and there’s been a lot of industry rumblings about the office sector undergoing a metamorphosis,” he says. “We’re seeing some reverberation of that, but we’re seeing the sector normalize. The lease-up is still stabilized. “I think downtown Detroit got hit the hardest. It went from resurgence to resuscitation, and although I do see a rebound, I don’t think we’re going to see the momentum we once had in Detroit. It’s going to take some time.” The experts also believe that office layouts will ultimately change, as more companies move forward with a hybrid model where employees split time working from home and in the office. “The only constant you really have is change,” Gutman says. “Post the Great Recession, they were benching people in these 60-square-foot areas where you could feel their breath when they were talking. It’s going to change dramatically. People want distance and want walls around them, even if it’s cubicle walls with light let in.” Jonna agrees. “We’re seeing more trending retrofits like WeWork, the collaborative office atmosphere, and not so much the private suite carve-outs that we were used to of old,” he says. “In terms of a company’s inner workings, it’s good to have stepping stones and earn your way. But some of our counterparts have WeWork flexible shared workspaces, and it seems to be working well for them.” — Bill Dow

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for experiences and opportunities to be surprised with events and things that engage people, which is also a predictor of success.” Although supply chain issues have been challenging for many retailers, Rizzo says the bigger problem locally has been the labor shortage. In October 2021, U.S. employers posted 11 million job openings as the number of people quitting their jobs dropped slightly that month to 4.2 million from 4.4 million in September. The result, analysts say, is that businesses are scrambling for new employees who are armed with more bargaining power. “There are plenty of businesses that want to and are able to expand to meet demand, but they can’t because they’re having trouble staffing their stores,” Rizzo says. “Some have had to reduce their hours and the days they’re open. It’s starting to get a little better, but it’s still a huge problem.” Across metro Detroit, the effects of the pandemic on retailers and restaurants have been negatively felt, but nowhere more so than within the city of Detroit and its central business district. Prior to the pandemic, downtown Detroit was staging an impressive comeback led by Dan Gilbert, founder and chairman of Rocket Cos. After moving what was then Quicken Loans downtown a decade ago, the billionaire acquired more than 100 buildings and properties, mostly in the central business district. Many of the properties were developed into office spaces and residential living, while also luring numerous national retail chains and local specialty shops. “Pre-pandemic, residential and retail units were at a very high occupancy, our hotel occupancy was in the high 70s (percent), and there were about 80,000 office workers in the core downtown,” says Eric Larson, who has more than 30 years of experience in the field of real estate investment and development, and since 2014 has served as CEO of the Downtown Detroit Partnership. “Now, due to remote work, we have around 20,000 office workers coming into the city on a regular basis and our hotel occupancy is running in the 35 percent to 45 percent range (as of December 2021). As a result, many of our small businesses, restaurants, and retailers have really struggled, and those that have been able to stay open are doing it sort of on fumes. “Retail is still tough because there’s nothing to replace the pedestrian foot traffic that creates the point-of-purchase engagement,” says Larson, whose organization continues to implement initiatives and events to draw people downtown and to support local businesses. “Landlords, the Detroit Economic Growth Corp., the city, and others have been trying to find ways to support small businesses through various programs,” Larson says. The DDP established a gift card program called “Spirit of Detroit” that’s geo-coded and can only be used with businesses in the city. “There’s nothing we can do to accelerate the work population that will come back as employers and employees are more comfortable in returning,” Larson says. “However, we continue to activate our public spaces. Fortunately, our visitor count has been

pretty stable with pre-pandemic numbers of 3 million visitors, many of whom are Detroiters rediscovering the downtown.” Felicia Williams-Patrick, who owns Flo Boutique on West Willis in Detroit’s Midtown district, says her women’s fashion store was doing well prior to the pandemic, but she’s struggled trying to get her business back on track. “I was closed for three months and since I’ve reopened, I’ve cut my days from five to three, Thursday through Saturday,” says Williams-Patrick, who was unable to host trunk events and found it difficult to acquire new merchandise due to supply chain issues and her revenue losses. “It was also tough to find salespeople, but I’ve been very fortunate to have friends who’ve helped me out and loyal customers who’ve continued to support me,” Williams-Patrick says. “I was a little late in implementing online sales and social media, but I’m trying to use it more now. It’s all about survival. Things are a little bit better since people have wanted to come out and shop again. Although it’s been very

occurred, we were pretty lenient with our business tenants because we wanted them to survive. So we didn’t have them pay rent, nor back rent,” Richard Astrein says. “We’re all in the same boat. It was like, ‘Why shouldn’t I help them?’ Plus, I’d rather work with someone than have to find someone new.” Although a handful of retailers and restaurants have closed permanently in the past two years, the French Lady restaurant and the Urban Wick Candle Bar opened in Birmingham during the pandemic. And there’s more on the way. In August, the city approved plans for a 50,000-square-foot, four-story Restoration Hardware building, complete with a rooftop restaurant, at the southwest corner of South Old Woodward and E. Brown Street. It’s scheduled to open in 2023. The company plans on investing $25 million in a building being designed by Victor Saroki. “The foot traffic that will result from the new Restoration Hardware and the other new tenants that want to be near them will bode well for all of the Bir-

I’M OPTIMISTIC ABOUT THE BUSINESS, (AND) IF WE (COULD) JUST GET A HANDLE ON THE PANDEMIC, THINGS WOULD BE PHENOMENAL.” — RICHARD ASTREIN challenging, I’m still having fun with my passion for fashion and engaging with my customers.” Away from malls, the Birmingham principal shopping district, which now includes 115 retailers and 64 restaurants, has traditionally been a successful market, in part because the downtown district is surrounded by an affluent community. “Retail is challenging in most downtowns but Birmingham is laid out well, prioritizes the pedestrian, and makes it amenable to shopping at various stores,” says Sean Kammer, executive director of the Birmingham Shopping District. Yet, like other successful shopping areas across the country, retail stores and restaurants haven’t been immune to the challenges created by the pandemic. Richard Astrein, along with his brother, Gary, have owned and operated Astrein’s Creative Jewelers on Maple Road in Birmingham for more than 45 years. “Even pre-pandemic we’d been hit a little harder in the jewelry business, and things haven’t quite been like they were in what I call the Roaring Nineties, which were our best years,” Richard says, “but the pandemic has been a whole new learning curve. “At first, it was pretty devastating to close down for a few months,” he continues. “Since we reopened, we’ve been closed Mondays and Tuesdays, and close at 4:30 instead of 5:30. But our employees really like the new hours. It’s saved us money, it’s easier operating, and we’re doing as much business or more, and customers have gravitated to the new hours.” Besides owning their own building, the Astrein brothers also own the building next door, which houses two retail tenants. “When the shutdown

mingham retailers and restaurants,” Astrein says. “I’m optimistic about the business, (and) if we (could) just get a handle on the pandemic, things would be phenomenal.” Kammer says one challenge Birmingham is facing is a lack of retail space. “Some of the few vacancies you see are there because lease terms are being hammered out with new business ventures,” he says. In February of 2020, just a month before the pandemic shutdown began, Marlene Mansour and her daughter, Elise, signed a five-year lease and opened their first retail establishment, Urban Wick Candle Bar, on Old Woodward Avenue in Birmingham. “When the pandemic started, we almost had heart attacks. It was sink or swim, but we finally opened to a few customers at a time five months later,” says Marlene Mansour, whose store features a 60-foot bar where customers have the option of making their own, personal candles from more than 90 scents. There are scented hand sanitizers, as well. “Like any new business, it takes a good three to five years to see any income,” Mansour says. “But we’re paying our bills. We still have to get back our remodel costs and, God willing, we’ll be able to grow the business and be rewarded. We love what we’re doing, the customers enjoy it, and if they can walk out of here feeling better than they (did when they) walked in, it’s mission accomplished.” Time will tell what the fallout will be for retailers and restaurants that have been faced with a “perfect storm” of challenges never seen before. But one thing is certain, and it’s never changed: There will always be winners and losers in an ever-evolving marketplace.

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O T P T H Y E R C N E S

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MODERN DECENTRALIZED FORMS OF INVESTMENT ARE GAINING FAVOR, PARTICULARLY WITH YOUNGER PEOPLE, BUT ARE THEY VIABLE FOR THE FUTURE?

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ASK A BABY BOOMER ABOUT CRYPTOCURRENCY AND THE RESPONSE MAY BE A BLANK STARE OR A LOOK OF

L U ST AN | IL KEEN BY TIM

confusion. A younger person, on the other hand, will likely say it’s the wave of the future. Both responses are justified. Cryptocurrency is a digital currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies exist on decentralized networks based on blockchain technology — generally a distributed ledger enforced by a diverse network of computers. Blockchain safeguards data or any material by creating an immutable record of the transactions included in the blocks. “Every crypto resides on blockchain due to the ‘proof ’ algorithm,” says Phil Abraham, a cybersecurity and technology expert from Northville and chief technology officer for DragonChain, America’s blockchain. “The algorithm is proof there’s a transaction, which is represented by millions of links — meaning modification or changing a transaction is impossible.” A defining feature of cryptocurrencies is that they’re generally not issued by any central authority, rendering them theoretically immune

to government interference, manipulation, or regulation. There are two schools of thought regarding cryptocurrency: pro and con. A proselytizer’s basic premise is that the U.S. government, the U.S. Treasury, and the Federal Reserve together cannot be trusted to maintain the reserve currency status of the dollar because their policies will lead to high inflation that will debase the value of the dollar. The belief of the naysayers is that a digital coin has no tangible value or utility outside the digital asset ecosystem, nor does it have any intrinsic value, nor is it an investable class asset. In other words, it’s a bubble that will eventually burst. The most popular cryptocurrencies are Bitcoin and Ether, but there are many other offerings, which leads to some of the confusion. In addition, as an investment, the value of cryptocurrency isn’t necessarily related to the performance of a company or a product. “I wouldn’t recommend someone close to retirement putting everything they have into a crypto asset,” says Ryan Firth, founder and president of Mercer Street, a financial planning and advisory firm in Houston. “I would tell them to start slow, dabble in it. See where it goes. The risk is they could put so much into it, and it goes to zero. As you know, prices fluctuate quite a bit.” That might be an understatement. On Jan. 21, Bitcoin was trading at $36,456 — a 10.3-percent drop from the previous day ($40,646),

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ALL ABOUT ABOUT ALL CRYPTOCURRENCY CRYPTOCURRENCY WHAT IS CRYPTOCURRENCY?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology — a distributed ledger enforced by a diverse network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference, regulation, or manipulation.

WHAT IS BITCOIN MINING?

Bitcoin mining is the process by which new Bitcoins are entered into circulation; it is also the way that new transactions are confirmed by the network and a critical component of the maintenance and development of the blockchain ledger. “Mining” is performed using sophisticated hardware that solves an extremely complex computational math problem. The first computer user to find the solution to the problem is awarded Bitcoin and the process begins again. Cryptocurrency mining is painstaking, costly, and only sporadically rewarding.

WHAT IS BLOCKCHAIN?

Blockchain is a set of connected blocks or an online ledger. Each block contains a set of transactions that have been independently verified by each member of the network. Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories. The contents of the online ledger must be agreed upon by the entire network of an individual node, or a computer maintaining a copy of the ledger.

HOW DO YOU BUY CRYPTOCURRENCY?

STEP ONE: Choose a crypto trading service or venue. Cryptocurrency exchanges are the most convenient option since they offer a breadth of features and more digital funds for trading as compared to other places. STEP TWO: Connect your exchange to a payment option. The process is largely the same as setting up a typical brokerage account. STEP THREE: Place an order. STEP FOUR: Safe storage. Bitcoin and cryptocurrency wallets are a place to store digital assets more securely. Having your crypto outside of the exchange and in your personal wallet ensures that only you have control over the private key to your funds. It also gives you the ability to store funds away from an exchange and avoid the risk of your exchange getting hacked and losing your funds. Hot wallets are wallets that run on internet-connected devices like computers, phones, or tablets. This can create vulnerability because these wallets generate the private keys to your coins on these internet-connected devices. Cold wallets are not connected to the internet and therefore have a far lesser risk of being compromised. Cold wallets are the most secure way to store your Bitcoin or other cryptocurrencies. But they require more technical knowledge for set up. Source: Investopedia

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due to fears of a Russian attack on Ukraine. Bitcoin was at an all-time high, at $67,582, just three months earlier. One situation that’s caused cryptocurrency values to fluctuate is the expectation that the Federal Reserve will raise interest rates this year. Another factor that can drive movement one way or the other is news stories about increased government regulation of digital currency. “Cryptocurrency is a volatile asset,” says Charlotte Principato, a financial services analyst with data intelligence firm Morning Consult. “Older generations tend to be more riskaverse about their portfolios, making cryptocurrency an unattractive investment vehicle. For example, 25 percent of millennials are willing to take above average risk with their investments, compared to 16 percent of baby boomers.” Carol Alexander, a professor of finance at Sussex University in the U.K., said in a report on CNBC.com that she expects Bitcoin to “tank to as low as $10,000 in 2022, virtually wiping out all of its gains in the past year and a half. “If I were an investor now, I would think about coming out of Bitcoin soon because its price will probably crash,” Alexander said. Her bearish call, according to the article, hinges on the idea that Bitcoin “has no fundamental value” and serves as more of a “toy” than an investment. Alexander warned of history repeating itself. In 2018, Bitcoin tumbled close to $3,000 after climbing to a high of nearly $20,000 a few months earlier. The cryptocurrency’s backers often say that things are different this time, as more institutional investors are jumping into the market. Chicago-based writer Sohale Andrus Mortazavi, in Jacobin magazine, calls cryptocurrency an out-and-out scam. “All cryptocurrency and the industry as a whole are built atop market manipulation, without which they could not exist at scale,” Mortazavi writes. Others — like Gemini Trust Co., a cryptocurrency exchange based in New York, and Morning Consult, which has offices in Washington, D.C., New York, Chicago, and San Francisco — expect cryptocurrency to continue to grow over time. Despite the potential for confusion and the instability of its value, institutional investors stepped forward in 2020 in public support of cryptocurrency. Companies like PayPal, MicroStrategy, and Twitter put forward plans to either support crypto

payments or openly invest in it themselves by adding it to their respective balance sheets, according to Gemini’s 2021 State of the U.S. Crypto report. Morning Consult, in its 2022 The State of Consumer Banking and Payments report, saw added growth: “Look for continued adoption of cryptocurrency and related brands in the next year as younger generations lead the charge. Cryptocurrency has proved to be more than a passing fad. It will continue to gain consumers’ attention and share of wallet in 2022.” There’s no question that a youth movement is driving cryptocurrency. According to the Gemini report, 74 percent of investors are men, 74 percent are between 25-44 years old, and 71 percent are white. “Cryptocurrency is first and foremost a technology, and a relatively new one,” Principato explains. “Younger generations are more likely to adopt new financial and digital technologies, so they’re more likely to be interested in cryptocurrency.” She says a survey her company did on cryptocurrency shows that more than half of the millennials who participated (57 percent) say they’re generally the first to try a technology product, while only 13 percent of baby boomers say the same. Baby boomers also are less likely to be looking for new ways to better manage their money compared to millennials (52 percent vs. 80 percent, respectively). “Older generations are less likely to understand or trust cryptocurrency,” Principato adds. “Twothirds of baby boomers say they don’t understand cryptocurrency at all, compared to 36 percent of millennials. As a result, only 18 percent of baby boomers trust cryptocurrency, compared to 49 percent of millennials.” In addition to attracting young people, cryptocurrency also is a lure for the famous. University of Michigan quarterback Cade McNamara, Green Bay Packers signal caller Aaron Rodgers, Los Angeles Rams wide receiver Odell

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Beckham Jr., Detroit Pistons guard Cade Cunningham, NASCAR driver Landon Cassill, Snoop Dog, Ashton Kutcher, Gwyneth Paltrow, and Mel B from the Spice Girls are among the notables with connections to cryptocurrency. Some celebrities made news by allegedly publicizing their investments, then quietly selling off their crypto when the value increased. Kim Kardashian, former NBA star Paul Pierce, and boxer Floyd Meriweather have been accused of a “pump and dump” scheme related to EthereumMax. Adding to the market are pseudo celebrities and causes that try to bring attention to a cryptocurrency via a publicity stunt. One such example is the Beetcoin, named after a character on “The Howard Stern Show” on SiriusXM satellite radio. Another is the LGBCoin, named after the “Let’s Go Brandon” euphemism for an anti-Joe Biden saying that became popular after it was said by a reporter to explain a chant heard at a NASCAR race. “There are those who are trying to establish tokens,” Firth says. “People can try to cash in on their celebrity or promote coins. This is where the SEC has come in and said you can’t do these initial coin offerings. Usually, they’re pegged to another coin asset.” According to The Wall Street Journal, regulators in the Biden administration are working to clarify rules for a market that roughly tripled in value in 2021 to more than $2 trillion, drawing in millions of American investors and increasing concerns about financial stability. “Right now, there’s no 1099 (IRS form) reporting for it,” Firth says. “Congress did pass a law requiring these service providers to report transactions to the government, so they can go after people who aren’t reporting gains on their crypto holdings. It’s ripe for tax evasion if you’re doing things yourself and not using

an exchange.” Then there’s the question of whether cryptocurrency can be legal tender now or a future replacement for fiat currency, which is government-issued money that’s not backed by a commodity such as gold. “I don’t foresee a lot of people using something like Bitcoin to buy something if they think it’s going to increase in value over time,” Firth says. “But there are more merchants who are accepting crypto.” The Sacramento Kings and Dallas Mavericks of the NBA and the Oakland Athletics Major League Baseball team, however, have joined a growing number of companies accepting cryptocurrency as payment for products. Those who do accept crypto may need some sort of converter system so it can go into their books as U.S. dollars. Otherwise, if the crypto gains in value, the merchant may have an unrealized gain to claim on their taxes. “The issue is that it makes for some tricky accounting,” Firth explains. “It makes things a little bit more complicated if merchants save crypto funds as an investment and don’t convert them to dollars right away.” Pennsylvania business software provider Skynova recently collected data noting which companies and cities are more open to accepting crypto payments, with the help of sources like CoinMap, a company that tracks were Bitcoin can be bought and sold (even at certain ATMs) and used for

PROS || CONS CONS PROS SECURITY: Nearly impossible to counterfeit

or double-spend.

TRUSTWORTHY: Theoretically immune to

government interference, manipulation, or regulation.

THE FUTURE: Many experts say cryptocurrency is the future of finance.

NO BACKING: Some say there is no tangible value or utility outside the digital asset ecosystem, nor any intrinsic value.

VOLATILE: Bitcoin was worth $67,582 in November 2021 and $35,070 at the lowest level in January 2022. SKEPTICISM: Some observers think

cryptocurrency is “a scam” and ripe for eventual massive losses for investors.

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TRUSTWORTHY TRUSTWORTHY MONEY MONEY SURVIVES SURVIVES With rising inflation and an alarming national debt, will cryptocurrency one day augment or replace the U.S. dollar? By David Littmann

CREATED ANONYMOUSLY around the time of the 2008 global

financial crisis, the “Bitcoin” has distinguished itself as the best-performing asset of the current decade. Despite its stock price flight into the stratosphere, relatively few Americans have much knowledge of or interest in Bitcoin’s investment success or its chances of gaining universal acceptance as our new national “crypto’’ (digital) currency. An old adage asserts that “people can’t stand what they cannot understand.” The topic of replacing or commingling our present monetary system of transactions, rooted in the dollar, with a computer/electronic system underpinned by a coded Bitcoin is daunting, both in concept and implementation. This lack of public understanding stems from two major sources: the technical sophistication of defining Bitcoin’s business model for becoming our nation’s primary currency system and the fact that development of its new currency system has, thus far, shown its most attractive face to the public as an investment (stock market value) rather than as a recognizable transactional tool. The latter feature translates one’s investment from just a stock price called Bitcoin (a computer-coded currency) into a very tangible, everyday usable, secure, and trustworthy currency deployable anywhere on global markets. These days, at least for Bitcoin stock, that appears to be the $64,000 question. What popular attribute of the cryptocurrency advances Bitcoin’s revolutionary quest to supplant the dollar domestically and perhaps become the world’s reserve standard? Bitcoin embodies computer encryption — mathematically encoded algorithms that regulate the generation of its units of currency and verify its ability to transfer funds between parties engaged in commerce. The coding of these operational messages is performed independently of the Federal Reserve (U.S. Central Bank), and mostly avoids U.S. Treasury regulations and directives when it comes to the Treasury’s oversight in printing and minting cash and coin.

Today, our Central Bank and Treasury are printing and minting money at a reckless pace, thereby sponsoring yet another bout of inflation that’s highly damaging to our market system. Inflation imperils our future by crippling our economic, financial, and military security, and by weakening citizen trust and confidence in the entire functioning of interpersonal relationships. The unwillingness of our elected office-holders, whether Republican or Democrat, to budget honestly is revealed in their perpetual resort to deficit spending and accumulating debts. As a result, federal government borrowing and accumulated national debt no longer can be repaid by real GDP growth or productivity gains. Real GDP growth rates are far too slow to generate sufficient tax revenues. U.S. productivity and labor participation rates in the workforce are low, and average education achievement levels have been falling for half a century. Making the outlook even bleaker for any immediate pickup in real income and output growth is the sudden policy switch to importing major, high-priced energy from unfriendly or hostile competitor nations, rather than continuing the 2017-2020 policies of tapping domestic energy and technology resources that simultaneously made the U.S. energy-independent and a fabulous exporter of surplus energy to the rest of the world, at a handsome profit. Such profits provided taxes to our revenue-ravenous U.S. public sector entities. The bottom line is that fear of greater instability of U.S. currency, budgets, and debt — and their destabilizing impact on U.S. institutions of finance and commerce — are inviting citizens to look at a currency that may prove itself more trustworthy and controllable by responsible individuals than politicalized bureaucrats and their political masters. This is the entrée Washington has delivered to Bitcoin developers and likeminded competitors offering cyber-currency alternatives. In general, the younger generations favor these efforts to correct the bankrupt outlook for the U.S. and the crushing debt we’re imposing on every future adult American. The Federal Reserve is bankrupt. Here’s the reality, as narrated by the monetary authorities and Treasury officials themselves (which largely explains why cryptocurrencies constitute challenges to the U.S. Treasury and Federal Reserve). FEDERAL RESERVE FRAILTY Back in 2008, the Federal Reserve and Treasury Department demanded that commercial banks, in order to retain their ability to continue doing business, must “mark-to-market” the government bonds, notes, and bills they carried in their bank portfolios. This meant that when the federal authorities audited the banks’ books and found that the securities held by the banks, if sold at that moment of audit, were worth significantly less than what they cost the bank when purchased, the bank, under regulator rules, could be severely penalized or drummed from the marketplace. If the theoretical losses in the bank’s total asset portfolio — if sold at that “mark-to-market” price moment — impaired the bank’s net worth so gravely as to render its capital structure inadequate to function safely, the hapless bank could be declared insolvent and dissolved, never to return. And here’s the irony, hypocrisy, and threat now confronting the Fed and Treasury: Accelerating inflation and public sector debt,

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created under Fed and Treasury debt and monetary policies, are reflected in the immense expansion of Federal Reserve holdings of the Treasury’s bonds, notes, and bills. The Federal Reserve purchased many of these Treasury-issued securities at prices far higher than they are today, and it has been keeping interest rates lower than the inflation rates of the nation for many years, despite the negative yields and financial hardships such policies inflict on holders of these fixed-income investments (often senior citizens and other retirees). Even now, Fed policy contemplates waiting until the second half of 2022 before allowing 10-year government bond yields to rise. Meanwhile, U.S. inflation rates already exceed 5 percent, and the 10-year bond rate fluctuates below 2 percent. By mandating low interest rates, the Fed helps the Treasury Department, hoping to avert mounting interest costs on trillions of dollars of outstanding U.S. debt. But here’s the catch. What if government auditors were to require the same “mark-to-market” test on the asset portfolio of the Federal Reserve Bank that these regulators mandated on the commercial banks 13 years earlier? Clearly, they’ve put themselves and citizens in an economic straitjacket. For what happens when the Fed’s announced monetary policies push interest rates to real (rather than contrived) market levels, incorporating actual inflation rates and expectations? COUP DE GRACE If the average rates on securities held by the Federal Reserve were to rise to an average level of three percentage points above current levels, the aggregate portfolio of securities held by the Central Bank would register a huge loss if “marked” to market (i.e., sold at the moment). To be sure, the Fed hasn’t anything near a trillion dollars in capital reserves as a buffer to absorb such a shock. It would be classified officially bankrupt and not permitted to continue operating. What’s good for the goose is good for the gander. Many people believe there’s little chance that the Federal Reserve will be removed, at least as the U.S. monetary authority. But they may be mistaken. The Fed faces a daunting future, indeed. This is what cryptocurrencies anticipate. In order to succeed, alternative currency providers must satisfy the basic laws that govern people’s expectations of what a currency requires. Most of all, one must trust the stability, security, visibility, simplicity, low cost of using, and universal acceptance of that currency, especially a new currency that purports to supplant an existing one. Trust is paramount. Individuals, even before the widespread acceptance of the dollar, facilitated transactions by bartering goods with neighbors or merchants. In agricultural economies, farmers wrote their payment promises (i.e., “checks”) on cows they were selling in exchange for other goods and services. Perhaps it wasn’t as convenient as pocket coins or cash, but it worked and closed deals that satisfied both sides of the transaction. Cybercurrency startups and their technologies for securing confidentiality and confidence in commerce will be challenged by private sector firms and individuals, not to mention the vast, established bureaucracies in the Federal Reserve and Treasury. In the end, the final arbiter and highest hurdle will be convincing those ever-present, but often quiet, voices in marketplaces who seek that special currency possessing the greatest moral value.

purchases. Skynova determined the most Bitcoin-friendly cities (Los Angeles, Chicago, Boston, Houston, Dallas, and Tampa) based on how business owners are planning to approach cryptocurrency in the future. Skynova’s key takeaways: • 32 percent of small business owners and top-level executives said their business currently accepts cryptocurrencies. • Bitcoin, Bitcoin Cash, and Ether were the most commonly accepted cryptocurrencies.Almost half of those business owners and top-level executives who don’t accept cryptocurrencies don’t plan to do so in the future. • One out of four small business owners and top-level executives who don’t accept cryptocurrencies would like to do so, but their companies don’t have the knowledge on how to do it. • The business owners Skynova talked with who already were accepting cryptocurrency for payments say they believe it’s the currency of the future (49 percent), it appeals to younger generations (44 percent), and it attracts new customers (43 percent). Many Skynova survey participants said that once PayPal enabled online vendors to accept Bitcoin in 2014, the decision to go crypto was cemented. Fifty-nine percent agreed that major companies like PayPal green-lighting crypto was their primary influence. Half were also influenced by players like Tesla getting in on the crypto game. Most often, businesses accepted Bitcoin (58 percent), Bitcoin Cash (36 percent), or Ether (35 percent), although some ventured down even more alternative lanes. Spanning the globe, using crypto for international transactions could be a messy business, as some countries have banned it. As of December 2021, El Salvador was the only country in the world to allow Bitcoin as legal tender for monetary transactions. For the rest of the planet, cryptocurrency regulations vary by jurisdiction. Cryptocurrencies are legal in the European Union. In Japan, Bitcoin is legal property. Like Japan, the U.S. can treat cryptocurrencies as a financial asset or property. On May 20, 2021, the U.S. Department of the Treasury announced a proposal that would require taxpayers to report any cryptocurrency transaction of $10,000 and above (since signed into law). How proceeds would be taxed — as capital gains or ordinary income — may depend on how

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long the taxpayer holds the cryptocurrency. Meanwhile, China has banned cryptocurrency exchanges and the mining of crypto, or the process by which new Bitcoins are entered into “circulation.” It’s also the way the network confirms new transactions and is a critical component of the blockchain ledger’s maintenance and development. Mining is performed using sophisticated hardware that solves a complex computational math problem. The first computer operator to find the solution to the problem receives Bitcoin, and the process begins again. Closer to home there’s a Bitcoin mining operation, BitNile, in Dowagiac on the west side of Michigan, that runs a 30,000-square-foot high-density data center that claims to house energy-efficient miners. More than 94 percent of the power in the facility, the company says, comes from non-coal sources. It’s part of Las Vegas-based Alliance Cloud Services’ 617,000-square-foot cloud data center in Dowagiac. Perhaps more worrisome than international regulations are cyber criminals. The dollar amount collected through cryptocurrency-based crime hit a record high in 2021, as the volume of cryptocurrency transactions overall grew into tens of trillions of dollars, according to a report from blockchain data platform Chainalysis Inc. Overall, the volume of cryptocurrency transactions increased to $15.8 trillion in 2021, up 567

“THE ISSUE IS THAT IT MAKES FOR SOME TRICKY ACCOUNTING. IT MAKES THINGS A LITTLE BIT MORE COMPLICATED IF MERCHANTS SAVE CRYPTO FUNDS AS AN INVESTMENT AND DON’T CONVERT THEM TO DOLLARS RIGHT AWAY.”

— RYAN FIRTH, FOUNDER AND PRESIDENT OF MERCER STREET

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TOP 10 10 CRYPTOCRYPTOTOP CURRENCIES CURRENCIES 1. 2. 3. 4. 5.

Bitcoin ............................ $43,876.00 Ether ..................................$3,127.00 Tether............................................. $1 Binance Coin ........................ $417.37 USD Coin ....................................... $1

6. Cardano ..................................... $1.17 7. XRP ..........................................$0.83 8. Solana ................................... $107.87 9. Terra .......................................$54.60 10. Polkadot.................................$20.68

Value (as of 2/11/2022) | Source: Goldprice.org

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WHO’S INVESTING INVESTING IN IN WHO’S CRYPTOCURRENCY? CRYPTOCURRENCY? 64 %

$111,000

L Y Y TR TO A AS D AC E CRY CY PTOCURREN H IE VE P R OFITS

39% are 25-35 years old • 35% are 35-44 years old 26% other

AVERAGE HOUSEHOLD INCOME

71% ARE WHITE

29%

E IV CT WA A A 36%

42% PURCHASED CRYPTOCURRENCY 1-2 YEARS AGO

48%

35% ARE 35-44 YEARS OLD

53% OF W

26%

ARE CRYPT EN OM C O

S IOU UR

74% A RE M

39% ARE 25-35 YEARS OLD

THE FOR CY IAL N T E N RR TE O

31%

52% LIVE IN URBAN OR SUBURBAN AREAS

THEY HOLD CRY AY %S -TERM INVEST PTO 69 LONG ME CU NT P

58%

Source: Gemini 2021 State of U.S. Crypto Report

47%

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CRYPTOCURRENCY CRYPTOCURRENCY AMONGSPORTS SPORTS AMONG ANDCELEBRITIES CELEBRITIES AND SACRAMENTO KINGS NBA TEAM

The Sacramento Kings’ claim to being one of the most cryptocurrency-forward teams in professional sports was fulfilled in 2014 when it became the first team to accept Bitcoin.

announced that he will be paid 100 percent in Bitcoin for all future endorsement deals. CADE CUNNINGHAM — DETROIT PISTONS GUARD

The Dallas Mavericks started to accept Bitcoin as payment for game tickets and merchandise via BitPay in 2019, reports Bitcoin Magazine.

Cade Cunningham, the Detroit Pistons’ No. 1 overall draft pick, signed a deal with BlockFi, a cryptocurrency platform, according to Forbes. Cunningham will get his signing bonus and part of his four-year, $46.5-million contract directly in Bitcoin, according to the report.

OAKLAND ATHLETICS MLB TEAM

ELON MUSK

DALLAS MAVERICKS NBA TEAM

The team announced in March 2021 that it will accept Bitcoin as a payment for full-season suites, at a price of one Bitcoin per suite. CADE MCNAMARA — UNIVERSITY OF MICHIGAN QUARTERBACK

University of Michigan quarterback Cade McNamara signed a name, image, and likeness (NIL) endorsement deal with cryptocurrency company More Management. AARON RODGERS — GREEN BAY PACKERS QUARTERBACK

On Nov. 21, 2021, Aaron Rodgers posted a tweet explaining that he had partnered with Square's CashApp to convert an undisclosed portion of his 2021 salary to Bitcoin. RUSSELL OKUNG — CAROLINA PANTHERS OFFENSIVE LINEMAN

On Dec. 29, 2020, Bleacher Report announced that the Carolina Panthers will pay half of Russell Okung's $13 million salary in Bitcoin. ODELL BECKHAM JR. — LOS ANGELES RAMS WIDE RECEIVER

On Nov. 22, 2021, L.A. Rams wide receiver Odell Beckham Jr. tweeted that he would be partnering with CashApp to receive his new full salary in Bitcoin. TREVOR LAWRENCE — JACKSONVILLE JAGUARS QUARTERBACK

USA Today reported in April 2021 that Trevor Lawrence would place part of his signing bonus in cryptocurrency. SAQUON BARKLEY — NEW YORK GIANTS RUNNING BACK

New York Giants running back Saquon Barkley in July 2021

Retail Insider reports that in February 2021, Elon Musk’s company, Tesla, purchased Bitcoin for $1.5 billion. According to Bitcoin Treasuries, the unrealized profit on Tesla’s investment stands at 75 percent — or more than $1 billion, given the current value of the first cryptocurrency. JACK DORSEY

Jack Dorsey, founder of Twitter, is a Bitcoin supporter. He started publicly endorsing the first cryptocurrency in 2017. GENE SIMMONS

Gene Simmons, the bassist and front man for the rock band KISS, is one of the biggest fans of the Cardano cryptocurrency (ADA), according to Retail Insider. MIKE TYSON

Former boxing champion Mike Tyson invested in Bitcoin in 2015 and introduced a Bitcoin ATM with his face tattoo design on it. Also, Tyson took part in the launch of the Bitcoin Direct mobile crypto wallet. MARK CUBAN

Billionaire and Dallas Mavericks owner Mark Cuban is one of the most controversial celebrities in the crypto space. In 2017, he called Bitcoin a bubble that “nobody knows when it will burst.” In 2019, he expressed doubts that Bitcoin is a reliable currency. OTHER CELEBS WHO TOUT CRYPTOCURRENCY

Snoop Dog, Ashton Kutcher, Richard Branson, Maisie Williams, Gwyneth Paltrow, and Mel B from the Spice Girls.

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percent from 2020, an indication that trading of digital assets is becoming increasingly mainstream. Illicit transactions totaled $14 billion last year, up 79 percent from $7.8 billion in 2020. Chainalysis warns that the rise of DeFi (decentralized finance), a term for financial services offered on public blockchains, is a particularly menacing threat to the sector. Out of the total of about $3.2 billion in cryptocurrency stolen in 2021, 72 percent was taken from DeFi protocols, according to Chainalysis. DeFi also was an increasingly popular way of money laundering, according to Chainalysis. The use of DeFi as a way to launder money increased 1,964 percent between 2020 and 2021, according to the company. With the growth of cryptocurrency comes an increase in the number of people profiting from it, complemented by large marketing campaigns that seek to create a safe, mainstream sheen to the virtual marketplace. The Wall Street Journal reports that Coinbase CEO Brian Armstrong recently purchased a $133 million estate in Los Angeles, one of the priciest single-family home sales ever completed in the L.A. area, while Singapore-based cryptocurrency platform crypto.com ran its first Super Bowl commercial in

February in its attempt to become a household name. And that was after paying $700 million for a 20-year deal giving it naming rights on the Staples Center in L.A. While cryptocurrency is growing in popularity, is it destined to replace government-backed money? Probably not, but the Federal Reserve took a serious look at the prospect of minting a central bank digital currency (CBDC), sort of a hybrid crypto-fiat currency. A report issued last year outlined potential benefits and drawbacks of what could be a “highly significant innovation in American money,” but stopped short of taking a position on its implementation without the help of lawmakers, according to Forbes. In its 40-page report, the Fed said a CBDC, which combines the efficiency of cryptocurrency transactions with the safeguards of a central bank-backed asset, could “fundamentally change” the structure of the nation’s financial system by altering the roles of the central bank

CURRENCY EVENTS EVENTS CURRENCY Throughout history, currencies have morphed from metal coins to magnetic strips on debit cards. Now, thanks to blockchain ledgers, the digital future is bright. By Ronald Ahrens

In an indelible New Testament story, two travelers reach Capernaum, on the Sea of Galilee, and are expected to pay a tribute tax. Jesus tells Peter to cast his line into the water and guarantees the first fish to bite will have a coin in its mouth. It was likely a four-drachma Greek coin of silver, although bronze shekels from Tyre, one of the most prolific ancient mints, also were in circulation at the time. The Gospel of Matthew story offers a rare exception in the annals of currency. Throughout most of history, currency has been produced not by miracles but by brutal toil and help from machines. Even today, after 475 years, Bolivian miners delve deep into Cerro Rico de Potosí for silver. Meanwhile, at locations around the globe, large arrays of computers grind away on the calculations that produce

cryptocurrencies, which seem to offer potential riches for all of mankind. “For the love of money is the root of all evil,” St. Paul says elsewhere in the New Testament. This love plays out in the Netflix series, “Money Heist,” in which a band of robbers takes over the Royal Mint of Spain’s presses for the private printing of hundreds of millions of Euros. Some may surmise their crime would seem to justify the ill repute of money. On the other hand, without spending, trading, and speculating, where would economic progress come from? In “The Ascent of Money: A Financial History of the World,” Niall Ferguson argues, “Despite our deeply rooted prejudices against ‘filthy lucre’ … money is the root of most progress.” Indeed, the need for currency emerged in antiquity, when traders bartered commodities such as salt for weapons or gems. In North America, 17th-century trappers brought furs to trading posts in exchange for knives, cookware, and blankets. It was a clumsy way of doing business, but the bartering practice that started around 6,000 B.C. continues today. In December, Sri Lanka, owing $251 million to Iran for oil imports, agreed to pay off Tehran with supplies of tea. The inefficiency of bartering was addressed ages ago in Babylon, when accounts were inscribed on clay

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and the private sector. The report, authored by the Fed’s seven-member board of governors, states a widely available CBDC would serve as a “near-perfect” substitute for commercial bank money, so much that its implementation could reduce the amount of deposits in the banking industry — something cash banks rely on to fund loans. It was reported by Coindesk, via a Freedom of Information Act request, that Jared Kushner, former President Donald Trump’s son-in-law, who acted as a senior adviser during Trump’s time in the White House, was interested enough in a national cryptocurrency that he emailed then-U.S. Treasury Secretary Steven Mnuchin about the idea. Kushner suggested it could be a way to cut down on waste, fraud, and transaction costs when paying out entitlements. The emails don’t show whether Mnuchin ever responded. The former president doesn’t appear to be a proponent of cryptocurrency. “That (crypto) could be an explosion someday, the likes of which we’ve never seen,” he’s reported as saying. “It will make the big tech explosion look like baby stuff. I think it’s a very dangerous thing. I never loved it (crypto) because I like to have the dollar. I think the currency should be the dollar, so I was never a big fan, but it’s building up bigger and bigger and nobody’s doing anything about it. I want a currency called the dollar; I don't want to have all of these others.” Big questions remain. First, is cryptocurrency destined to become the next dot.com bubble that explodes, as the former president suggests? “That’s a valid concern,” says Firth, of the Houston financial planning firm Mercer Street. “I think there are a lot of (crypto) projects out there that have no merit and won’t lead to anything. But there are those projects that could do really well. It’s more mature now, but it’s still kind of the early days. There are going to be some people who will lose their shirts on this, but overall I think Bitcoin is here to stay. I think Etherium has shown that it has staying power and will build into something bigger over time. It could be in a few years’ time that none of these projects pan out, and there’s always that risk of losing invested principal.” Second, will cryptocurrency ever replace government-backed money? “Thirty-one percent of adults believe that cryptocurrency is currently or will soon be a practical alternative to the U.S. dollar,” says Principato, of Morning Consult. “However, 25 percent of U.S. adults disagree. Forty-four percent of adults don’t have an opinion.” Although the future of cryptocurrency is uncertain due to its wild fluctuations and pending regulatory questions, the fact is, as Morning Consult reports, cryptocurrency is now mainstream.

tablets, stipulating, for example, that the bearer would receive 300 measures of barley at harvest time. Such tablets, Ferguson points out, serve as “reminders that when human beings first began to produce written records of their activities, they did so not to write history, poetry, or philosophy, but to do business.” Five millennia passed before the expeditious development of coins. Metal tokens were used around 1,000 B.C. in China, but it was the Greeks who stamped out coins of electrum — the naturally occurring gold-silver alloy — by 650 B.C. In the early Middle Ages, the emperor Charlemagne introduced silver pennies that served for more than 400 years as Western Europe’s standard currency. Precious metals were scarce until the 15th-century exploits of Europeans in the New World. Cerro Rico produced 45,000 tons of silver for the conquering Spanish, at great cost to life and limb among the enslaved miners. Spanish “pieces of eight” coins flooded Europe, causing unprecedented price inflation. Metal coins, it was then discovered, were worth only what could be gotten with them. And large quantities of coins were cumbersome. Paper banknotes, first used in China, eventually became the standard currency in Europe. For example, the Bank of England’s pound notes that could be redeemed for specie, or precious metal, first appeared in 1694. Paper notes also spread across the United States, for better or worse. For example, after gaining statehood in 1837, Michigan went through a “wildcat” banking period when four dozen new, lightly capitalized banks popped up. The Bank of Shiawassee issued its $3 bills from a shack in a forest clearing; the Farmers Bank of Sandstone was at a quarry. Many banks issued notes by the same printer, whose engraving limits led to reusing the same panther image. “It was the custom for each bank of issue to send its money as far from home as possible to be circulated, in the hope that it would never be returned for redemption,” historian George Catlin writes. Soon, wildcat money was synonymous with worthlessness. In 1862, the United States note, known as the greenback, was introduced by the Treasury Department in nine denominations up to $1,000 — essentially a “fiat” currency issued by government decree. It was made redeemable for specie in 1879. Even after the Federal Reserve note came out during the Great Depression, greenbacks continued to circulate — and to be redeemed under specific conditions — until 1971. Technology has since intervened, making it customary to use credit and debit cards. More recently, as an alternative to pulling out the plastic, there are digital mobile-pay systems. These vary from centralized transfers like Apple Pay and Google Pay to peer-to-peer systems like PayPal and Venmo, apps that enable the transfer of currency between parties. Most fascinating is the rise of extra-governmental, blockchain-based cryptocurrencies such as Bitcoin and Ether, launched in 2008 and 2013, respectively, and now exceeding $2 trillion in value. Bitcoin is “mined” by linked computers that strive to solve cryptographic puzzles and add links to the blockchain, thereby earning new “coins.” Historian Niall Ferguson calls it “a type of digital gold.” The Central American nation of El Salvador has adopted Bitcoin as legal tender. In Africa, Rwanda and Kenya are exploring the issue of digital currencies. What’s more, the combination of digital and cryptocurrencies with decentralized finance — DeFi — introduces the potential for exchanges in parts of the world where 1.7 billion people have little or no access to banking services.

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CULTURAL Winners of the inaugural DBusiness Corporate Culture Awards are out in front of the business trends affecting employees and their work experiences.

LEAD W

hen the COVID-19 pandemic hit in March 2020, employers large and small were faced with difficult decisions to keep their businesses afloat. Decisions resulting in job loss, increased workloads for the remaining staff, and pay cuts were among the more drastic. The future is improving, but it’s a step-by-step process. Employers can expect a continuation of the Great Resignation, more remote and hybrid work, and talent shortages in 2022, according to the Emeritus Institute of Management in Boston. To get a picture of how metro Detroit businesses are handling these important employer-employee issues, DBusiness invited workers at small, medium-size, and large companies to fill out a survey with questions about their work experience. The best-performing small and medium-to-large companies overall have been recognized as Corporate Culture Awards honorees. The top-rated firms in each category survey also are recognized. Another part of the Emeritus Institute of Management report says that in 2022, employee well-being will be a priority for employers. The companies being honored in this inaugural DBusiness award program

appear to be at least one step ahead of the trend — and, in many cases, several steps ahead. The overall champions are Detroit’s Sachse Construction in the medium/large segment and the Darden Wealth Group in Ann Arbor in the small company segment. “We’re very team-member-centric because, ultimately, it’s our reputation,” says Myra Ebarb, director of people and perks at Sachse Construction. “When I hold my Apple watch or my Apple phone, that’s the reputation of Apple, not the person who built it. Here, at Sachse Construction and Broder & Sachse Real Estate, our reputation is based on our team members and their interactions with clients. Being team-member-focused creates the exceptional experience with our company.” The office is designed to make everyone, including company executive officers, accessible to other members of the team. The corner office with the best view is a conference room. At Darden Wealth Group, the overall champion in the small company category, the enterprise’s five employees are led by CEO Andrea Darden, a former collegiate and professional basketball player at the

By Tim Keenan

power forward position. “I think culture is very important,” says Darden, who started her business in 2018. “I’m all about having an environment where you’re catering to your people’s strengths and giving them an environment where they can flourish. Being in finance, it’s always been a culture of ‘conform or get out.’ When I formed my own firm, I wanted to do something different. Part of the reason I’m so passionate is that I was in an environment where I felt undervalued.” Darden says she gets her passion for maintaining a good corporate culture from being on past teams where either a coach or another player contributed to a toxic team culture. She says hiring the right people is the key to maintaining a top-flight corporate culture. “When we bring people in, it’s important that we hire for culture. It’s very important for us to keep that culture — which includes a commitment to your family, the community, and personal growth.” Darden says it’s not necessarily easier to maintain a positive corporate culture with a smaller group of people. “It goes both ways,” she says. “One bad employee in

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THE FINALISTS a small group cannot be hidden. You can quickly destroy a culture with one person in a small group; in a larger corporation, you can hide them. When you have a larger organization, you have to make sure you’re promoting the same culture through all the layers of your organization.” Part of her company’s culture is that she considers herself as part of the team, rather than the team’s owner or even its coach. “I see myself in the role of a captain,” Darden says. “I tell my team that I’m part of the team. I bring certain things to the table, but my job is also to hire people who are smarter than I am. As a power forward, there were players who could dribble the ball down the court better than I could. I want to empower my people, especially those who are more on the front lines than I am.”

DIVERSITY AND INCLUSION

Darden Wealth Group also placed highly in the Diversity and Inclusion category of the DBusiness Corporate Culture survey. Strategic Staffing Solutions in Detroit was the winning medium/large company in the category. “We focus on working with women (as clients), business owners, and professors,” Darden says. “We try to have our staff representative of our clients. Right now, we have three women and two men on staff, and one of our vendors is an underrepresented minority. I believe in diversity. You have to look at your constituents and make sure your staff represents your constituents. Our constituents are a majority of women, so our staff represents that.” Tracey Kenty, senior vice president of human resources at the 290-employee Strategic Staffing Solutions (S3), which has its headquarters in the historic Fisher Building in Detroit and operates 25 offices in the United States and three in Europe, says the company’s focus on diversity and inclusion starts at the very top of the company. “Our owners (Cindy Pasky and a board of shareholders) are just amazing people,” Kenty says. “They care about people. The overall culture starts there. We believe that any and everybody has the opportunity to add value and be a part of this great team. One of our pillars is changing people’s station in life.”

WORKPLACE DÉCOR AND AMENITIES

Sachse Construction and Emerge Consulting in downtown Royal Oak were the survey leaders in the Workplace Décor and Amenities category. The 130 team members of Sachse Construction

and Broder & Sachse Real Estate have occupied the fifth floor of 3663 Woodward Ave. in downtown Detroit since October 2020. The space is wide open, ceilings are high and painted white, all offices feature glass walls, and the view outdoors is nearly uninterrupted. A common area is equipped with table tennis, foosball, and pinball games; a dart board; a video arcade game; and seemingly more televisions that one can count. There’s a fully stocked eatery where team members can partake of fresh fruits and vegetables, a cereal bar, healthy snacks, and flavored sparkling water free of charge. Team members can find a specialty coffee maker, beer on tap, and wine and spirits available for after-hours decompression at the Sachse Café, complete with a neon sign. “You don’t get hungry working here,” Ebarb says. “We need our team members to be happy, and happy team members create an exceptional experience and they’re so much more productive.” Elsewhere in the office are giant chess and checker boards. On another counter, a jigsaw puzzle is in progress. “We have an open-door policy,” Ebarb says. “We can bust in on the presidents at any time.” The Sachse office also is designed to facilitate collaboration. It has several conference rooms — named for various Detroit landmarks — and other lounges specifically intended for relaxation and casual conversation. There’s a wellness room for mothers, and part of the company’s wellness program includes 15-minute chair massages for every team member every other Friday. “Just the other day I went out to lunch for the first time since we’ve been here,” says Lou Goldhaber, chief of staff at Sachse Construction and project manager of the site. “I never feel the need to leave the floor. There’s so much action.” At Emerge Consulting, the small business category winner, managing partner Joe Bamberger says one key attribute for his six colleagues is working in downtown Royal Oak. “One of our biggest amenities is the city itself with all the food, drink, and shopping options within walking distance of our office,” Bamberger says. “To make it even better, we have free, on-site parking — a rarity for offices on Main Street in Royal Oak.” Although work takes Emerge’s consultants around the country, Bamberger says he wants to provide them with a collaborative space that offers a variety of work environments. There are desks, an in-office bar, high-top tables, and a second story deck for working outside, weather permitting. “Our team works from the space that works best for them in the moment,” he says.

123Net, Detroit Aaron & Amanda's, Detroit Apex Digital Solutions, Southfield Arrow Strategies, Southfield Back & Neck Chiropractic Wellness Center, Troy Bingo Pet Salon, Royal Oak Broder & Sachse Real Estate. Detroit Cascade Partners, Southfield Choice Telecommunications Inc., Clarkston Darden Wealth Group, Ann Arbor DOBI Real Estate, Birmingham Emagine Entertainment, Troy Emerge Consulting, Royal Oak RoadEx Services, Livonia Franco, Detroit Girl Boss Fashion, Sterling Heights Giroux Trial Attorneys, Southfield Great Lakes Wealth, Northville Greystone Financial Group, Bloomfield Township Growth GPS, Novi GTS Direct, Detroit Harbor Computer Services, Royal Oak HealthRise, Southfield Ideal You, Sterling Heights InvestNext, Detroit Korotkin Insurance Group, Southfield Law Office of Barton Morris, Royal Oak Lormax Stern Development Co., Bloomfield Hills Mad Science of Detroit MassMutual Great Lakes, Southfield Morreys Contracting, Ferndale Nano Magic, Madison Heights Near Perfect Media, Bloomfield Hills Northwestern Mutual-Troy Oakpoint, Birmingham O'Keefe, Bloomfield Hills Oswald Cos., Bloomfield Hills P.A. Commercial, Southfield Qodex, Southfield Resolute Building Intelligence, Pontiac Rose Pest Solutions, Troy Sachse Construction, Detroit Sentinel Benefits & Financial Group, Bingham Farms SMPLFD, Detroit Strategic Staffing Solutions, Detroit Stuart Mechanical, Auburn Hills SUBTA, Troy t2 designs, Brighton The Goddard School of Novi The JRT Agency, Farmington Hills Trion Solutions Inc., Troy Van Dyke Horn Public Relations, Detroit Vision Computer Solutions, Northville Waymark, Detroit Zolman Restoration, Walled Lake

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PASSION PROJECTS Sachse Construction in Detroit has built and restored multiple buildings, including the Detroit Athletic Club, The Assembly, The Hamilton Midtown Detroit, and Chrysler House.

To get employees through the day, Emerge offers a variety of complimentary coffee, tea, soft drinks, and snacks. The refrigerator and bar are stocked with alcoholic beverages for after-hours unwinding. There’s also a small library being amassed to help employees grow intellectually. “To compete against all of the snacks and candy in the office, our team also receives $200 per year to use toward any wellness or health purchase of their choice, be it a gym membership, workout clothing, massages — whatever helps you stay mentally and physically healthy,” Bamberger explains. “There’s always room for improvement,” he adds. “We constantly review our space, benefits, and perks of being a team member for Emerge. If our team can think it, we can implement it. The good news is our business specializes in helping other businesses attract, develop, and retain talent, so we always see what other companies are doing to engage and retain employees, and we’ll happily borrow ideas that we think our team will like.”

CAREER ADVANCEMENT

Strategic Staffing Solutions and Growth GPS in Novi are the headliners in the Career Advancement category of the inaugural DBusiness Corporate Culture survey.

Kenty, of S3, is a living example of the upward trajectory possible at the staffing company. She started as a part-time employee 16 years ago and now is a senior vice president. “There’s a lot of opportunity here for improvement and growth,” Kenty says. The same is true at Growth GPS and its nine-member team, according to Keith Helfrich, founder and managing director. “We don’t have a policy, per se. Policies aren’t how we work,” Helfrich says. “Our mindset and practice gives everyone the opportunity to participate in areas outside their expertise. We believe strongly in teamwork and growth through opportunities taking place in real-time.” Since education and training programs are what Growth GPS provides, the company’s team is made aware of “all sorts of opportunities for growth and development,” Helfrich says. “We provide company-wide training as a matter of course, with at least one ‘major’ event quarterly,” he explains. “We support teams working on special projects with training they identify as important to success for the project, and we support individuals with 100 percent reimbursement (up to $2,500 annually) for training of any type they deem meaningful for their personal growth.”

SACHSE CONSTRUCTION

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THE WINNERS TEAMWORK

The Subscription Trade Association (SUBTA) and Trion Solutions, both in Troy, are the winners in the Teamwork category for small and medium/large companies, respectively. “Generally speaking, all of our positions have touchpoints with each other; no persons are siloed,” says Paul Chambers, co-founder and CEO of SUBTA, explaining how teamwork functions with his 10 workers. “As a business that’s in the growth phase, we consistently work cross-departmentally to implement new and innovative ideas together.” As a result, the team at SUBTA has worked to develop and hone their communication skills. “One of our initiatives is monthly development training,” Chambers says. “Here, we devote company time for the teaching and learning of new hard and soft skills. We’re also in the middle of another company-wide team-building initiative. Each month a person gets 10 minutes to 15 minutes to tell their life story, and answer questions from the team. It’s so much fun to learn more about each of our team members, thus building deeper connections with each other. “Another ongoing initiative we encourage is personal goal-setting. Every two weeks, each team member meets with their accountability partner (another team member) to help them meet the personal goals they set for the year.” Another element of SUBTA’s synergy is its “culture of caring.” “Our teamwork is awarded, in large part, through the kudos and compliments of our co-workers,” Chambers says. “Each person has also mapped out their individual goals that are tied to achieving the company metrics. Each quarter our metrics are reviewed, and the progress of each of member’s contributions are updated. This is the largest extrinsic motivation we employ. Otherwise, our teamwork is intrinsic and baked into our processes.” Lauren Vihtelic, director of workers compensation at Trion Solutions, which has 147 employees, says teamwork is essential at that company, too. “Each of our departments interacts and works together for successful day-to-day operations,” Vihtelic says. “We continuously have interoffice training to ensure each team is collaborating and using our resources to the best of the company’s abilities. We encourage various team events, especially through the holiday seasons, with our two main events: a department Halloween contest and department gingerbread house contest.” The Halloween contest includes Trion’s offices in

Michigan, Florida, and Arizona. Each department decides on a theme, and employees are encouraged to dress up, decorate, and theme their work areas accordingly, which the company says enhances teamwork and department growth and cooperation. The gingerbread house department competition was a new event in 2021 and encouraged creativity, teamwork, cooperation, and compromise, according to Vihtelic.

LEADERSHIP

Oakpoint, a dental support company with 13 employees in Birmingham, was the Leadership category frontrunner in the small business category. Financial planner Northwestern Mutual–Troy, with its 250 employees, led the way for medium/large companies. Oakpoint CEO Mick Janness explains that his company’s leadership team is comprised of seven people, all representing a wide range of professional experience. “The varied backgrounds and dedication to the greater good is what drives the strength (of our team) — the nucleus of which is rooted in certain philosophies that drive collaboration and ultimate throughput,” Janness says. The leadership team’s core values include: be transparent, own your attitude, deliver a WOW experience to customers, commit with energy, and act with compassion. “This set of core values guides us in everything we do,” says Janness, who describes his leadership philosophy as “open-book management” supported by the Entrepreneurial Operating System, developed by Michigan native Gino Wickman. “E.O.S. drives a completely transparent culture coupled with accountability throughout the entire organization,” Janness says. “Everyone is accountable to one another in a bottom-up — not a hierarchical or top-down — approach. We host quarterly Town Hall events, whereby financials are shared, and an open forum of questions and answers are then shared. “The term ‘employee engagement’ is desired by so many,” he continues. “Our philosophy is simple: If you want team members to be engaged, you need to engage them in the business. Further supporting this belief, we’re deeply passionate about discussing our shortcomings and where improvement needs to be addressed. We never tell ourselves we’re great at something when we know it’s not fact.” Mark Smith, chief marketing officer at Northwestern Mutual–Troy, says his company’s leadership is based on admiration and understanding. “Our whole business model, our whole industry, is set up out of mutual respect,” Smith says. “We’ve got a

OVERALL CHAMPIONS Small — Darden Wealth Group, Ann Arbor Darden Wealth Group is a wealth management company. Its mission is to take the burden of wealth management off its clients’ shoulders and turn their visions into reality. Medium/Large — Sachse Construction, Detroit Founded in 1991, Sachse Construction has built millions of square feet of commercial, retail, multifamily, and institutional space throughout the United States, Canada, and Puerto Rico. DIVERSITY AND INCLUSION Small — Darden Wealth Group, Ann Arbor Darden Wealth Group takes the time to hire people that fit its culture, which includes a commitment to family, the community, and personal growth. Medium/Large — Strategic Staffing Solutions, Detroit Strategic Staffing Solutions is a global IT consulting and business services corporation that delivers staff augmentation, total workforce management programs, outsourced solutions, and direct-hire recruiting, with in-depth expertise in several industries. WORKPLACE DÉCOR AND AMENITIES Small — Emerge Consulting, Royal Oak Emerge Consulting partners with businesses to develop long-term workforce strategies by helping them attract, develop, and retain talent. Medium/Large — Sachse Construction Sachse Construction has built multiple projects for Whole Foods, as well as the Nike Community Store, The Madison, and One Woodward in downtown Detroit, the International Market Place in Honolulu, and more. COMPENSATION AND BENEFITS Small — InvestNext, Detroit InvestNext says it’s on a mission to transform the process in which investment firms raise and manage capital. Medium/Large — 123Net, Southfield 123Net is a telephone, internet, and co-location provider working to make Michigan communities and businesses the bestconnected on the planet. CAREER ADVANCEMENT Small — Growth GPS, Novi Growth GPS works with organizations seeking transformation to help them hire, develop, and manage an unstoppable workforce. Medium/Large — Strategic Staffing Solutions Strategic Staffing Solutions operates 25 offices in the United States and three in Europe. The company has industry expertise in financial services, health care, energy, and more.

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lot of folks who are staff and a lot of folks who are 10-99 (contract workers). As they’re taking care of clients, you need to put them in an atmosphere that’s very nurturing, educational, and supportive. “We’re very good at setting a plan and letting people know where they fit into that plan. We’re very strategically communicative. Everybody knows every week what’s going on. We’re all servant leaders. It is truly open-door; we’re here to support and make you better.”

COMMUNITY ENGAGEMENT

Northwestern Mutual–Troy also excelled in the Community Engagement part of the DBusiness

Corporate Culture survey, as did Sentinal Benefits and Financial Group in Bingham Farms, representing small businesses with its 30 employees. “We support three childhood cancer charities: Alex’s Lemonade Stand Foundation, Camp Casey, and the Children’s Foundation,” Smith says. “Everyone really got behind doing things for these programs. We’re all hands on deck. It gets all of us together for one cause.” Northwestern Mutual–Troy, which provides personalized financial plans for individuals and families, also put on events for children with cancer, along with their siblings and parents, and started a fundraising golf outing in 2021 that it hopes will be an annual event.

MENTORSHIP CHAMPION FILM DIRECTOR STEVEN Spielberg once said, “The delicate balance of mentoring someone is not creating them in your own image but giving them the opportunity to create themselves.” This could describe one of the many mentoring philosophies of Jennifer Cline, DBusiness magazine’s inaugural Mentorship Champion. As director of marketing at SUBTA, the Troy-based Subscription Trade Association, Cline manages a team of seven people. “They know they can come to me at any time,” says Cline, who didn’t have access to many mentoring opportunities at her previous employer. To fill the gap, she reached out and established her own network of leaders. “That’s one reason it became a priority for me to make sure that as I’m growing my team, there’s a close resource for everyone to grow their careers, and I can be that person for them,” says Cline, a mother of three children under 8 years old. She even promotes her own mentoring philosophies, many of which are captured in catch phrases like “feedback is a gift” and “hone it in.” “Mentorship is being an active listener and encouraging people to step outside their comfort zone a little bit when they’re not confident they can do something and I’m confident they can,” she explains. She says the key to mentorship is working together. “Creating a collaborative environment is going to help us all succeed. It’s going to help us grow more effectively together.” One of Cline’s mentees is Nadine Ghiran, a junior marketing assistant at SUBTA. She credits Cline for being a critical part of her professional development. “She has helped shape me into the marketer and content writer I am today,” Ghiran says. “Daily, she offers moments of recognition for a job well done, even if it’s the smallest of tasks. Her constructive feedback goes a long way and has been crucial to my growth in the company.” — Tim Keenan

GRATITUDE Small — Harbor Computer Services, Royal Oak Offers award-winning IT services and demonstrated leadership. Specializes in client companies with fewer than 100 employees. Medium/Large — Emagine Entertainment Inc., Troy Emagine Entertainment is a movie theater chain operating 25 cinemas: 13 in Michigan, nine in Minnesota, and one each in Illinois, Indiana, and Wisconsin. TEAMWORK Small — SUBTA, Troy The Subscription Trade Association provides a comprehensive and reputable library of news, knowledge, and resources. Medium/Large — Trion Solutions, Troy Trion Solutions is a professional employer organization offering human resources outsourcing solutions for HR administration. FLEXIBILITY Small — InvestNext, Detroit InvestNext says it’s on a mission to transform the process in which investment firms raise and manage capital. Medium/Large — 123Net, Southfield 123Net is a telephone, internet, and co-location provider working to make Michigan communities and businesses the bestconnected on the planet. LEADERSHIP Small — Oakpoint, Birmingham Oakpoint is a dental support organization that provides nonclinical support services under business service agreements. Their affiliated practices maintain ownership while leveraging the Oakpoint operating platform to achieve growth. Medium/Large — Northwestern Mutual-Troy, Troy Northwestern Mutual-Troy offers financial planning, and suggests insurance and investment strategies. COMMUNITY ENGAGEMENT Small — Sentinal Benefits & Financial Group, Bingham Farms Sentinel Benefits & Financial Group has become a trusted financial adviser and employee benefits administration service provider to businesses and individuals. Medium/Large — Northwestern Mutual-Troy, Troy The company’s team of advisers creates personalized financial plans for individuals and families. The plans include insurance and investment strategies.

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TIM SEALY

GRATITUDE

Emagine Entertainment in Troy, with 650 employees — and the largest organization taking part in the survey — scored well in the Gratitude category. Harbor Computer Systems in Royal Oak has seven employees and topped the small business segment in this category. “We show our gratitude in various ways,” says Shelby Langenstein, chief people officer at Emagine. She says the company recognizes employees of the month; presents on-the-spot rewards from senior leaders, who hand out gift cards to high performers; sponsors holiday parties and bonuses; and celebrates birthdays and anniversaries. It has a Senior Leadership Incentive Program for theater general managers, which incentivizes the GMs to align business goals with building operations and financially rewards them for doing so. “Beyond all of these programs, I think the most important aspect of what we do at Emagine is take care of our employees,” Langenstein says. “A prime example of this is when our business was completely shuttered in 2020 and we were forced to lay off over 90 percent of our staff. Even though our hands were forced in the layoffs, we continued to pay health insurance for anyone who was laid off, covering the

entirety of their benefits while they were laid off. Since our inception, we knew that if we took care of our team, our team would take care of our guests — and that’s the heart of our business.”

COMPENSATION AND BENEFITS/FLEXIBILITY

COMMUNITY LEADERS The team at Troy-based SUBTA (Subscription Trade Association) operates the world’s largest community of subscription innovators. The company works with brands such as Six Flags, Winc, and Hello Fresh.

InvestNext, a Detroit company with eight employees that’s working to transform the process by which investment firms raise and manage capital, was the small business winner in the Compensation and Benefits, as well as the Flexibility categories of the inaugural DBusiness survey. Southfield-based 123Net, Michigan’s largest provider of telephone, internet, and colocation services, which has 200 workers, was tops in the medium/large business segment in the same categories. “We offer our team market-rate salaries in addition to equity,” says Lucas Traikoff, head of marketing at InvestNext. “We offer full coverage benefits including unlimited vacation, 99 percent employer-paid insurance (health care, vision, and dental), and 3 percent match 401k. “We’re a flexibility-first company. Our team members can choose to work from home, in a coworking space, or a blend of the two.” March - april 2022 || DBUSINESS.COM 67

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EXEC LIFE

03-04.22

MARTIN VECCHIO STYLED BY JESSICA VANASSCHE

SUSTAINABLE LOOK The mood for spring/summer fashion is one of optimisim, with the COVID-19 pandemic slowly disappearing in the rearview mirror.

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Return on Investment

Production Run

Patents and Inventions

Opinion

The Circuit

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ACCESSORIES TABLE Previous Page: Vintage Cream Halston Mules, Price NA, Boro Resale, borodetroit.com Silver and Black Geometric Chain Necklace, Price NA, Boro Resale, borodetroit.com Keane Sterling Silver Molten Ring, $165, Simon Miller Ram Hoops-Silver, $105, Coup D’Etat, shopcoupdetat.com Able Rachel Crossbody Bag-Cognac, $165, Diff Eyewear Camilla Dunes Crystal Grown Gradient Lens Sunglasses, $98, Diff Eyewear Dash Gold Aviator Sunglasses, $98, Good Man-Legend Lo-Dark Vachetta Low Tops, $198, Good Neighbor, shopgoodneighbor.com Vegetable Tanned Natural Leather Wallet by Flint Leather Co., $68, Vegetable Tanned Black Leather Belt Locally made by Ward Leather, $80, Youngbloods, youngbloodsshop.com

MEN’S From left to right: Slim Fit Taupe Suit Pants from Join Life Collection, $69.90, Zara, zara.com Feathered Short Sleeve Linen Shirt My Thrills, $90, Youngbloods, youngbloodsshop.com Goodman MVP-Notch Sweater in Brandy, $168, Good Neighbor, shopgoodneighbor.com Rodd & Gunn Seaford LongSleeve Black Linen Button Up, $148, Nordstrom, nordstrom.com

WOMEN’S From left to right: Lime & Cream Silk Bias Cut Skirt by Sine Goya, $310 (on sale for $155), Coup D’Etat, shopcoupdetat.com Leia Slip Dress in Mocha, $100, Good Neighbor, shopgoodneighbor.com Silk Cream Salvatore Farragamo 1980s Silk Blouse, $124 (on sale for $88), Boro Resale, borodetroit.com Plaid Alexander McQueen Wide Leg Trousers, $275, Coup D’Etat, shopcoupdetat.com

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RETURN ON INVESTMENT

Bridging the Divide

An aspiring astronaut, Westland native Samantha Snabes never blasted into outer space, but she and her business partner made it to Houston, where they’re building 3-D printers for developing communities around the world. BY TOM MURRAY

give me enough of a grip.” After graduating from Wayne Memorial High School, Snabes enrolled at the University of Michigan-Dearborn, where she embarked on a grueling academic schedule pursuing undergraduate degrees — a B.S. in biology and a B.A. in international relations and Hispanic studies, with a minor in psychology. From there, she entered graduate school, earning an MBA in supply chain management and international relations. That’s when her focus turned from a desire to become an astronaut to a fascination with biosciences. While Snabes was still an undergrad, she worked as a research assistant at Aastrom Biosciences, a biopharmaceutical company located in Ann Arbor. She continued to work there after graduation. “They hired me as a tech to work on a DARPA grant there,” she says. “I didn’t even know what DARPA was.” DARPA, or the Defense Advanced Research Projects Agency, is a research and development arm of the Department of Defense that’s focused on developing emerging technologies for use by the military. Snabes’ job was to continue work that had already begun on an artificial immune system, using human stem cells grown from adult bone-marrow samples. “I had my own lab, and I worked on a device for what was basically a way of growing bone marrow and keeping the cells going for longer and better than you could with traditional technology,” she says. “I felt like it was a success. Our big claim was that we were able to keep the naturally occurring stem cells going for a year, which was impressive at the time.” Indeed. The efforts of Snabes and her boss on the project resulted in an exclusive worldwide license

RE:3D

s co-founder and CEO of re:3D, a company that pioneered and developed a 3-D printer it calls the Gigabot, Samantha Snabes boldly describes the machine as “the world’s first affordable, human-scale” 3-D printer, capable of producing oversized components for everything from generators to automotive parts. “We go as big as your budget,” Snabes affirms. “We start at the size of a toilet and could go up to 6 feet tall in our standard offering, but we can (also) do custom machines.” Snabes is clearly someone who thinks big in every way, and it started when she was growing up in Westland. “I always wanted to be an astronaut, since I was like 2 or 3,” she says matter-of-factly. “I did a lot of camps and seminars and clinics around that, and I went to space camp a couple of times.”

After her visit to space camp in the fourth grade, Snabes decided to get proactive. “I’d gotten a book that listed where all of the astronauts were from in Michigan and where they went to school,” she says. “When I got back from space camp, I just sort of started cold-calling astronauts and asking how I could become one.” Snabes passes on this tidbit with a nonchalance that suggests the notion of a fourth-grader settling down with the white pages and confidently cold-calling complete strangers — never mind astronauts — isn’t at all a big deal. Especially because she got the answers she was looking for. “They told me I had to go to college and get research experience,” she says. “There was also a young astronaut’s club my mom would drive me to once a week after school, and I got to know the guy in charge of that program. He thought my ambition was really cute, and he would always introduce me to the astronauts who came to (the club). There were a couple that I shamelessly solicited.” Snabes laughs here. After all, she was still a student at Walker-Winter Elementary School in Canton Township, yet she relentlessly quizzed every astronaut who crossed her path. And she was already multitasking, well into her fledgling career as an entrepreneur — offering a service that can only be described as unique, if not downright odd. “I would have kids give me their lunch money and I pulled their teeth out for them,” Snabes blithely reports. “They were close to falling out, anyway, and if they got their tooth, they could get money from the Tooth Fairy. I had different techniques. Mostly I used a paper towel and had to figure out how many times to fold it, so it would keep dry, not be too thick, and

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Exec Life

FROM METRO DETROIT TO THE WORLD STAGE 1

1. WESTLAND, MICH. Samantha Snabes attended college at the University of Michigan-Dearborn, where she earned multiple degrees, including an MBA.

2. HOUSTON, TEXAS Snabes worked for NASA at the Johnson Space Center before co-founding re:3D with Matthew Fiedler. The company makes 3-D printers.

from Aastrom. In 2006, the pair founded a company they called BioFlow Tech to market their product. Three years later, in the process of selling the company, Snabes heard about an opportunity at the Johnson Space Center in Houston. “They were starting up a number of innovation endeavors in their Space Life Sciences program, and because the average employee age was so old, they were really hoping to get a young person that had startup experience and a light science background,” she recalls. “So it was a short list, and they invited me to come down and work for them. I was just really lucky.” The job at NASA afforded Snabes the ultimate convergence of her twin passions: space and bioscience. Even better, much of her work focused on how the conditions of outer space impact astronauts, while also anticipating how to diminish or even prevent those risks in future flights. “I worked on a number of innovation initiatives,” she says. “Basically, I was what they called an intrapreneur. So instead of being an entrepreneur, it was all about citizen engagement, working on all sorts of different efforts to form nontraditional partnerships with groups outside of the agency to solve problems and help the agency be more efficient.” During her time at NASA, Snabes also did volunteer work with Engineers Without Borders USA, traveling around the world and working on various projects. The volunteers all shared the same goal — helping people in disadvantaged areas achieve better lives by finding solutions for their infrastructure needs.

OUTER SPACE An aspiring astronaut, Samantha Snabes (at left, dark hair) never made it to the outer dimensions, but she and her business partner, Matthew Fiedler, launched re:3D in southeast Houston.

To understand the challenges, one day in 2011 she and her co-worker, Matthew Fiedler, were touring Mugonero Hospital in Rwanda. “There was a lot of expensive medical equipment sitting in the sun that had been left behind by well-intentioned groups,” Snabes says, “but it was the wrong voltage, and it was such a shame that it couldn’t be used.” Snabes and Fiedler — a native of Iowa, with a background in farming — began brainstorming almost immediately. “We were thinking, What would it look like if these people could have access to more tools?” Snabes says. “They could problem-solve independently. Almost everyone we met was really motivated and wanted to solve their own problems without the dependence of foreign aid and outside support. Matthew had one of the very first open-source 3-D printers and he was really excited about it, and he showed me how to print. We started to propose this idea to make a large-scale 3-D printer for under $10,000 that could print a compost toilet.” That’s when Snabes and Fiedler became beneficiaries of some serendipity: They

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Exec Life

into a description of a project already underway in Austin. “Most of the identification cards in the world are made by a company called HID Global,” Snabes says. “We got access to some of their waste that goes to landfills, and we were able to grind it up and reprint it as planters that are now selling for $75 and $100. I don’t know if anyone else has done that, so it’s a big milestone and we’ll definitely be working on messaging around that.” The headquarters for re:3d is located in southeast Houston, near Nassau Bay, and the 41-yearold Snabes splits her time between the home office as well as Austin and Puerto Rico, where the

company has two other locations. In addition to the demanding responsibilities of her day job, over the years Snabes somehow managed to earn certification as an EMT and volunteer firefighter, and is still an active member of the Mississippi Air National Guard. As for that lifelong dream to become an astronaut? “I apply whenever there’s a draw, every couple of years,” she says assuredly. “I don’t know when the next one will be, but I’ll apply.” And then she adds with a wry chuckle; “I mean, you miss 100 percent of the shots you don’t take, right?”

RE:3D

heard about Start-Up Chile, a seed accelerator created by the Chilean government that supports companies with the potential to positively impact the ecosystem in Latin America. It seemed to be the perfect platform for the pair to pursue their idea. Turns out they were right. “Start-Up Chile gave us $40,000 to try and make the prototype, start a business around it, and bring the product to life,” Snabes says. From there, the pair quit their jobs and launched a joint venture they called re:3D, but it needed additional financing. Snabes moved to Chile and began pulling together a campaign to raise another $40,000 on Kickstarter; Fiedler returned to his home in Houston and started building the first iteration of the Gigabot. As they toiled away, serendipity emerged yet again. South by Southwest, based in Austin, Texas, and one of the world’s most prestigious conferences focused on emerging technology, invited the duo to debut their creation on opening day — just eight weeks away. “So, while Matthew was building the printer,” Snabes says drolly, “I was in Chile timing the debut with the launch of the Kickstarter campaign.” Their timing, under what was extreme deadline pressure, couldn’t have been more exquisite. “The media were the first people that came to the display,” Snabes says, “and there was already a lot of hype around 3-D printing at the time.” The result was astounding: The Kickstarter initiative was fully funded in a mere 27 hours, eventually raising more than $250,000. Literally overnight, re:3D was suddenly a major player, with orders for the Gigabot pouring in from eager customers in 23 countries. Ironically, the Mugonero Hospital — ground zero for the inspiration behind the Gigabot — wasn’t among them. Snabes took that as a wholly positive sign. “We realize then that the demand for this was in many more markets and geographies than we’d anticipated,” she says. “What we learned is that people all over the world are problem-solvers, and it was really humbling.” Snabes hasn’t forgotten the significance of those early days in Rwanda, when the idea that became re:3D was hatched. For every 100 Gigabot units the company now delivers to customers in more than 50 countries around the world, a donation of one 3-D printer goes to someone trying to make a difference in their community. “There’s a lot of plastic waste in those communities,” Snabes says, “but there’s a lot of waste everywhere, and I’d say the potential biggest opportunity for us is printing from manufacturing waste.” Which is why Snabes was recently in her hometown to call on one particular customer. “They just make one component that goes into one vehicle for the Big 3,” she says. “When they receive the raw material for that one component, they have to take a cap off immediately and throw it away. Two to three thousand of them, every single day of the year.” Snabes’ excitement is palpable as she seems to ponder the possibilities. And then she briskly pivots 78 DBUSINESS || MARCH - APRIL 2022

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THE ULTIMATE BOOK ABOUT DETROIT’S HISTORY

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PRODUCTION RUN

Head of the Class Xenith, a Rock Ventures company, is working to make the Motor City known as Football Helmet City. BY TIM KEENAN |

JOSH SCOTT

he moving assembly line, automobiles, and the Motown sound are things closely associated with Detroit. But football helmets? If Xenith has anything to say about it, Detroit will be known as a football helmet hub. The company has been working toward that end since it moved here from Massachusetts in 2015, when it became part of Dan Gilbert’s Rock Family of Companies. “We’re proudly based and built in Detroit,” says Matt McPhail, chief design officer at Xenith. “That’s a mantra we continue to talk about.” Founded in 2006 by former Harvard University quarterback Vin Ferrara, Xenith came into being after Ferrara dealt with several head injuries during his playing career. He believed there had to be a better way to make a football helmet. After spending three years on research and development, the company launched its first helmet — the X1 — in 2009, and the helmet and its derivatives are now worn by hundreds of thousands of players from the youth level to the National Football League. According to Xenith, the protection its headgear provides is superior to what came before because of the technology involved. “The challenge was to not only convince people that it was different, but fundamentally better,” McPhail explains. The first football helmets were leather. Next came plastic shells with a web of straps inside to cradle the player’s head, otherwise known as the suspension helmet. Then came foam pads that were affixed directly to the inside of the helmet shell. Xenith’s technology, in the most simplistic terms, merges the suspension interior with components that act as shock absorbers and are distributed around the player’s head. It’s called the shock and bonnet system. “The first X1 helmet has pneumatically operated shocks,” says Ron Jadischke, Xenith’s chief engineer. “What we did with later models is search globally for a company that has a cutting-edge material that can be changed with chemistry to have different characteristics and that has dynamic characteristics. We combine chemistry with several different geometries to get the desired result.” Subsequent models include the X2E+, the Shadow XR, and the Epic. Xenith’s research, along with production, takes

place in a 66,000-square-foot warehouse facility inside Renaissance Global Logistics, located in the shadow of the Ambassador Bridge in southwest Detroit. The company produces helmets, shoulder pads, and other football equipment. In addition, the facility has a helmet reconditioning area — every year or so, helmets are returned, disassembled, cleaned, repainted, and components are replaced if necessary. When returned to the teams, they’re like new. Xenith also has labs where products are tested. The impact testing lab is like an automotive crash test lane, where helmets and other gear are subjected to impacts as fast as 20 mph. Another lab has several instruments that are used to test helmets and components. This area features multiple crash test dummy heads, each wired with sensors that reveal how effective a helmet is or isn’t. The facility also houses offices, a custom paint booth, a showroom, and a warehouse. Xenith’s athlete-centric philosophy doesn’t stop at safety. It designs for needs that transcend protection, pushing the boundaries of fit, feel, comfort, durability, performance, and style. “The football helmet marketplace is full of orthodoxy and tradition,” McPhail says. “From an equipment standpoint, it’s hard to differentiate and make headway — and when you have a new technology, there’s that apprehension of not wanting to be the guinea pig. It was certainly an uphill battle because of how different the approach was, but the results of the testing proved it out and adoption (of the helmets) began to increase as more people became aware.”

According to Xenith, it’s the only manufacturer to exclusively design and produce 5-Star helmets under the widely accepted Virginia Tech star system. Other companies have 5-Star helmets, but they also produce 4-Star, 3-Star, and 2-Star products. The Xenith philosophy is that if a helmet doesn’t excel under the most stringent testing available, it shouldn’t be on the field. Considering the challenge to convert established players and programs to new equipment, Xenith is taking the approach of marketing to youth teams and leagues, in the hope that players will carry brand loyalty with them if they move up through the football ranks. One element of this strategy is sponsorship of the Kickoff Classic, which pits the best high school teams in the metro Detroit area against each other in the opening weekend of the season at Wayne State University. “That’s a relationship that’s several years old now,” McPhail says. “Anytime that we have an opportunity to partner with a Detroit-facing entity — whether it’s the Boys and Girls Clubs of Southeastern Michigan or the Detroit Public Schools — it certainly pays dividends in terms of our support of the community. And we’ve been able to convert some of the high schools that participate in the Kickoff Classic to Xenith products.” Along with football helmets, Xenith sells SUDDEN IMPACT pads and Xenith moved to Detroit in 2015 shoulder and, since that time, the accessories like chin company has scored revenue straps, visors, face and employment gains. Today, masks, back plates, rib improved technology has guards, and gloves. elevated player safety.

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Exec Life

THE RUNDOWN

$496,500 innovation grant from the NFL to develop next-generation helmet technology.

66,000 square feet of space at Xenith’s location in southwest Detroit.

72% increase in total revenue in 2021 over 2020.

Amazon ratings for Xenith shoulder pads. Source: Xenith

One of those products, the company’s new Velocity shoulder pads, are injection-molded to provide a more custom fit around the athlete. “It’s a pad that conforms to the player’s body and allows him (or her) to move more freely with one less pound of weight,” McPhail says. Xenith also recently entered the team apparel space by offering fully custom uniforms for tackle and non-tackle leagues, including protective headwear for flag football teams. “That’s a category that’s seen fairly rapid growth since it was launched in 2020,” McPhail says. “It’s a market that’s opened some doors for us that weren’t helmet or shoulder pad customers.” Since most NFL and college teams already are outfitted by other major national brands, Xenith is targeting high school varsity and under programs. The most notable high school team wearing Xenith is IMG Academy in Bradenton, Fla., one of the most elite high school football programs in the country. At the collegiate level, Jackson State University, coached by former NFL star Deion Sanders, is a Xenith school. “NFL players are the most idiosyncratic and superstitious about their helmets and are least likely to make the switch,” McPhail says. There are exceptions, though, like Devin McCourty of the New England Patriots and Nick Chubb of the Cleveland Browns. As proof that Xenith’s helmet technology is the future of football head protection, it recently was awarded a $496,500 grant from the NFL (one of three companies to receive funds) as part of the league’s two-year, $3-million innovation competition to drive transformational change in helmet safety and performance. Xenith’s submission was a modular prototype that incorporates a compliant shell, a 3-D-printed lattice carrier, energy control structures made from RHEON-engineered material for both geometry and material chemistry, and customizable Kinetix foam inserts for improved helmet performance and comfort. NFL Helmet Challenge submissions achieved up to a 13 percent improvement above the top-performing helmet currently worn in the NFL, based on the laboratory testing the NFL and NFL Players Association use to test and rank helmets each year. This rate of improvement represents more than four times what is typically seen annually in new helmet designs. “The NFL Helmet Challenge is about revolutionary, not just evolutionary, improvement,” says Jeff Miller, executive vice president of communications, public affairs, and policy, for the league. “The NFL set out to challenge the marketplace and accelerate development of new technologies. We’re proud to support the awardees and advance player health.” In addition, the Xenith Shadow XR and Shadow SPECIAL TEAMS were tested by the league Football hemets designed and and are among 20 helmets produced by Xenith undergo rigorous research and safety approved for use by NFL measures. The company also players at a time when the offers shoulder pads, chin straps, visors, gloves, and more. sport is ascending. March - april 2022 || DBUSINESS.COM 81

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Exec Life PATENTS AND INVENTIONS

Detroit inventor Robert Kearns developed the world’s first intermittent windshield wiper system for vehicles, only to watch the automakers try to steal it. BY NORM SINCLAIR

n his wedding night in a romantic country inn in Ontario, Canada, a Detroiter named Robert Kearns suffered a most untimely and improbable injury. A decade later, that injury inspired his invention of a device for motor vehicles that eventually earned him millions of dollars and worldwide fame as the David waging court battles against armies of lawyers for Goliath auto companies who had tried to take advantage of him. The mishap in 1953 occurred as Kearns and his bride, Phyllis, retired to their room, and he attempted to open a celebratory bottle of champagne. “I’d never opened champagne before. And — pow! The cork goes off, hits me directly in the left eye, I fall back on the bed bleeding all over the sheets, Phyllis comes out of the bathroom screaming. I mean, it was a mess,” he recalled years later in a magazine interview. Nine years went by and, in 1962, Kearns was driving his Ford Galaxie in a drizzle on a November day in Detroit, peering to see with his one good eye through his rain-splattered windshield. In those days, all vehicles had two-speed wipers with a low or high setting for light or heavy rainfall, and nothing in between for drizzly conditions. As he fiddled with his wipers, Kearns had a Eureka moment — why can’t a wiper work more like an eyelid and blink? That rainy-day thought crystalized into his invention of intermittent windshield wipers, a revolutionary advance for the global auto industry. At the time, his previous inventions included a comb that squirted hair dressing, an amplifier for patients of laryngectomy surgery, a weather balloon, and a navigating system for the U.S. military, all of which didn’t gain much traction. For his windshield wiper idea, Kearns bought offthe-shelf electronics — transistors, capacitors, and variable resistors — and set up shop in his basement. Over the course of multiple weekends, he produced his first prototype of the intermittent wipers by the summer of 1963 and installed it on his sedan. His setup varied the speed and intervals between wiper swipes, depending on the amount of water on the windshield. Kearns, who grew up admiring Ford Motor Co., was pleased when the automaker provided him with wiper motors for his experiments. He even drove to Dearborn, where Ford had numerous research and development activities, and showed off his intermittent wipers

don’t count.” In 1978, he sued Ford in federal court in Detroit for patent infringement, seeking $350 million, which represented $50 for each car Ford sold with intermittent wipers. The automaker’s response was to stall the proceedings with legal maneuvering and delays, a process that went on for 11 years. The goal was to frustrate Kearns, in hopes that he would go away. Twelve years after it was filed, the Ford case finally went to trial. After a month of testimony, Ford offered $30 million to settle it. Kearns refused. “This case isn’t about money,” he told the Detroit Free Press. “If I walk out of there with nothing more than a check, then I’m nothing more than an employee of Ford.” The jury in a second trial awarded him $5.2 million, and Ford upped it to $10.2 million, hoping he would go away. Kearns accepted that verdict and set his sights on Chrysler. By this time he was living in an unfurnished apartment or sleeping in his office, almost buried under files, documents, notes, and other court papers. His grown children became his law clerks, learning to write briefs and filing documents in federal court. The Chrysler case went to trial in 1981. After months of legal proceedings, a jury entered a split decision — Chrysler had not infringed on Kearns’ patent, but the automaker owed him royalty payments of 90 cents for each of the more than 12.5 million intermittent wiper units installed on the company’s vehicles. Kearns collected nearly $20 million. He would file 12 more lawsuits against other automakers, all of which ended in dismissals. He died in 2005 at the age of 78, having never produced another invention. The late Federal Judge Avern Cohn, who presided over five of the trials, said what Kearns really wanted was to be a manufacturer. “He was feisty, determined, and he established the fact that he made a contribution to the auto industry that was unique,” Cohn told The New Yorker. “His zeal got ahead of his judgment.”

GETTY IMAGES

Side Swipe

to 10 engineers who were waiting for him in a parking lot. He was told that his wiper would have to run 3 million cycles without failure to meet Ford’s standards. On the way home, Kearns bought an aquarium, filled it with a mixture of oil and sawdust to simulate a load on the wiper, installed his wiper blades in the tank, and ran them for six straight months, surpassing Ford’s standard by 400,000 cycles. From there, Kearns filed his first patent for the intermittent wiper device and returned to Ford for more presentations. The company offered him a contract with a caveat — because the wipers were considered a “safety device,” Kearns had to reveal the workings of his invention before he could sign the deal. Thinking he was on the cusp of immense success, Kearns showed the Ford engineers exactly how his invention worked. Finally, Kearns thought, his dream of setting up a factory with nice shrubbery around the building was about to come true. He would hire Detroiters, and become a supplier of intermittent wipers to the auto industry. Five months later that dream became a nightmare, as Ford relayed they had developed their own intermittent wiper and his services were no longer needed. In 1969, a Ford Mercury with intermittent windshield wipers rolled off the assembly line. By the mid1970s, every automobile, from inexpensive Hondas to expensive Rolls Royces, were equipped with intermittent wipers using the very same engineering — with transistors, capacitors, and variable resistors — that Kearns developed in his basement. His achievement consumed the rest of his life. He wound up in a psychiatric facility, and emerged to spend the next three decades in court battles, sometimes representing himself against the auto companies he accused of stealing his invention. In 1976 Kearns moved his family to Gaithersburg, Md., where he got a job with the state Bureau of Standards testing the skid resistance of different kinds of road surfaces. One day, one of his sons brought home a wiper control device from a Mercedes Benz that Kearns took apart in his basement. “I saw (the) capacitor, resistor, transistor — it was all there,” Kearns said. He was so stunned and sickened, his red hair turned snow-white almost overnight, one of his sons recalled. Upon his release from a psychiatric hospital, Kearns hired a lawyer to pursue a patent infringement case. In its denial, Ford said the patent was invalid and was “insufficiently inventive.” “I just felt very diminished,” Kearns told a reporter for The New Yorker. “It’s like you’re a nothing, you’re a gnat. You don’t count. You just

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GOOGLE PATENTS

Exec Life

BACK AND FORTH In 1962, when Robert Kearns began working on intermittent windshield wipers, he and his wife and four children lived at the north end of Detroit. Kearns earned his Ph.D. at Case Western University in Cleveland. He received a patent for his wiper design in 1975.

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Exec Life

OPINION

Safety and Security With threats and acts of violence on the rise, company leaders must make safety and security a top priority in the workplace. Archive, 2021 saw a total of 681 mass shooting incidents in the United States, 11.5 percent more than the previous year and 63 percent higher than 2019. In addition to threats of gun violence, pandemic-related pressures have led to a decline in civility — turning ordinary customer-to-employee and employee-to-employee interactions into potential hotbeds for verbal and physical altercations. As a result, it’s increasingly critical that business

SAFETY CANNOT EXIST WITHOUT THE PROTECTION OF INDIVIDUALS, ORGANIZATIONS, AND PROPERTIES ...” Safety cannot exist without the protection of individuals, organizations, and properties against external threats that cause harm. For example, some employees are required to wear personal protective equipment (PPE) to help limit unintended accidents. While company leaders have made safety a priority by placing an emphasis on health and virus prevention resources, we aren’t seeing similar and appropriate investments in available security resources. The same security threats that existed before the outbreak of COVID-19 continue to exist and, in many cases, have increased. Workers in retail, restaurants, health care, airlines, and numerous other industries are facing increased violence at their workplaces. A 2021 study of Fortune 500 CEOs ranked workplace violence among the top three most pressing challenges for businesses today. Overall, security threats can result in up to a 50 percent decrease in productivity for an organization, 20 percent to 40 percent employee turnover, and an average of $500,000 in out-of-court settlements. Immeasurable damage may also be done to a company’s reputation. When evaluating risk, consider the probability or likelihood of a specific threat, how vulnerable the company is to that threat, and what the potential consequences could be. Often, enterprises only focus on the probability of an incident and fail to examine the full spectrum of risk. What’s more, the potential threats businesses face are evolving, evidenced by the increased number of acts of violence erupting without warning in unexpected places. According to the Gun Violence

leaders prepare their employees to recognize anomalous behavior, de-escalate situations when possible, and know how to respond to a threat. Active shooter and workplace violence preparedness and response training will give employees the tools and techniques needed to face potential threats, while reinforcing a company’s culture of safety and employee well-being. Leaders never want to imagine that a tragedy or act of violence can strike their employees or customers, but they must face the reality that it can, and does, happen. While employees may be trained to respond to an incident of sexual harassment or a fire, preparedness training across multiple threat scenarios should be commonplace. While there’s no perfect security plan that eliminates all risk, companies can manage potential dangers by prioritizing where the consequences of an incident are greatest. Many businesses conduct active shooter and workplace violence preparedness training. This may be in the form of a single-day training, an in-person demo, or the distribution of free resources from various security organizations. While all protection efforts are valuable in responding to the ever-increasing need for security, a more comprehensive and integrated active

shooter and workplace violence training program should be implemented. Such a plan will teach employees to have situational awareness, recognize potential threats, de-escalate tense situations, and how to respond if faced with violence. Preparedness training can help employees recognize when someone displays behaviors that may be a preliminary sign — known as the “pathway to violence” — and respond immediately. If these signs, or “behavioral indicators,” are noticed and acted upon quickly, workplace violence may be prevented. Sometimes, physical encounters are unavoidable. When violence does strike, preparedness training ensures that employees know how to react to protect themselves and their customers. In the crucial first seconds of an attack, responding quickly and decisively is essential to safety. If active shooter and workplace violence training programs are more commonplace in businesses today, it will better protect employees, clients, and the larger community. work Active shooter events and other acts of workplace violence can happen in any orga organization. But there’s no safety without secu security. If deci decision-makers act urgently and deliber deliberately, we may be able to pre prevent the next act of violence — and save lives in the process.

WILLIAM FLYNN

Flynn is co-founder of The Power of Preparedness, an e-learning provider of preparedness and security training in Ann Arbor. He previously served as the principal deputy assistant secretary of the U.S. Department of Homeland Security’s Office of Infrastructure Protection.

THE POWER OF PREPAREDNESS

s pandemic-related pressures continue to impact the country in everything from health concerns to economic uncertainty, political divisiveness, and social unrest, business practices and protocols must evolve to meet the ever-increasing safety and security needs of customers and employees. One aspect of the heightened risk environment that needs renewed focus is security.

BY WILLIAM FLYNN

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PROMOTIONAL CONTENT

TrusTed Advisers Q&A

EXPERTS OFFER VALUABLE INSIGHT W

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interested in their clients and their clients’ businesses. Finally, a trusted adviser should be dependable, a good listener, and genuinely enthusiastic about their work and their clients. Make sure to scrutinize the individual’s references, license, and registrations. Take time to make sure the adviser’s expertise and capabilities are a good fit for your specific needs or your company’s needs. The following experts offer insight and advice in their areas of expertise.

Q: What are the qualities of a trusted adviser? A: Most business lawyers in private practice

desire to become the “trusted adviser” to their larger corporate clients. In that capacity, they advise the owners of businesses on all matters including corporate, real estate, finance, litigation, succession planning, and estate planning. Successful trusted advisers have similar attributes, including: • Putting the client’s interests first. This can be difficult for lawyers who are under pressure to bill hours. Successful trusted advisers always put the best interests of the client first and subordinate their own interests. • The lawyer is in it for a long-term relationship. It’s imperative for the trusted

adviser to have a long-term relationship with the client, even when there’s not much legal work being done. Most clients desire frequent contact with their trusted adviser. • The trusted adviser is interested in the client’s businesses and their personal life. A trusted adviser becomes part of the client’s life, whether it’s going to client functions or dinners, or taking vacations with their clients. • Reliability. A trusted adviser’s word is their bond, and the client can rely on them. When the client is having a down year in their business, the trusted adviser doesn’t walk away, but spends even more time with their client.

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middle market companies are investing in recruiting and retention efforts. To compete in an exceedingly tight labor market, KeyBank’s recent Middle Market Sentiment Survey found business owners are looking toward offering potential candidates competitive wages (56 percent), flexible working hours, and health and wellness benefits (42 percent). Among companies that expect difficulties attracting talent, those that are planning to add employees are more likely to offer options to work remotely, increased paid time

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off, new-employee signing bonuses, and job training as ways to attract qualified talent. As your company heads into 2022, you may be planning for expansion, contemplating M&A, considering the automation of payment processes, or putting in place a succession strategy. KeyBank middle market experts can provide customized insights, real-time counsel, and a broad range of relevant and tailored solutions to guide your decision-making. For more information on KeyBank’s middle market capabilities, contact a KeyBank relationship manager.

KeyBank Michigan David Mannarino President & Commercial Sales Leader 4000 Town Center, Ste. 1260 Southfield, MI 48075 248-204-6550 CFMA #220114-1396764 David_Mannarino @keybank.com

1/28/22 9:55 AM

Exec Life

LEGAL EAGLES PATRICK GLORIA

The State Bar of Michigan, a nonprofit organization based in Lansing, hosted its 4th annual Business Law Symposium on Jan. 20 at The Detroit Club in downtown Detroit. The event drew local leaders in the legal and business fields for lectures and roundtables about the business of law firms. Topics included how to retain young legal talent, building and protecting a brand, and entrepreneurial strategies for the pandemic.

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1. Jasmine Rippy, Alexis Johnson, Arthur Duffy IV 2. Mikaela Armstead, Cloie Chidiac, Nicholas Badalamenti 3. Jason Sluyter, Aida Dismondy 4. Austin Foos, Peter Dukaj, Kenneth Beams 5. Jacob Campbell, Elizabeth Vincent, Elyse Palombit

NIGHT ON THE TOWN PATRICK GLORIA

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EO Detroit, a chapter of the global Entrepreneurs’ Organization, conducted Night Out on the Town, a social and networking event, on Jan. 29 at Leila restaurant in Detroit’s Capitol Park. The evening, which included a strolling dinner, beverages, a DJ, and desserts, was co-hosted by Matt Wolf, EO Detroit social chair, and Jenny Feterovich, EO Detroit event day chair.

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6. Joe Mackey, Chad and Lynn Johnson 7. Namita Prasad, Carman and Mark Winter 8. Audrey and Jason Brown 9. Sheri and Steve Gordon, Anna Longe 10. Janet and Vladimir Gendelman

ANDREA BOCELLI LINDSEY SCHWEIKERT

A pre-concert cocktail reception for the Andrea Bocelli concert was hosted at the Budweiser Biergarten at Little Caesars Arena on Dec. 5 by Alvin Spencer and Chris Armour from Stifel Financial Corp. Stifel helped bring Maestro Bocelli, founder of the Andrea Bocelli Foundation, to Detroit. Guests enjoyed cocktails and heavy hors d’oeuvres before the show featuring the Italian operatic tenor and multi-instrumentalist, who performed alongside the Detroit Symphony Orchestra. 11. Nancy O’Connor, Bernadette Cooper, Mary Leisure, Carrie Schochet, Amy Whipple, Dana Ryan 12. Mike and Kathy Anderson, Andrea and Andy Bethune 13. Chris and Michelle Armour 14. Frank and Kimberly Campanale, Renee Godin, Scott Fergusone 15. Nancy and Craig Valassis

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EVENTS AND OPPORTUNITIES SPONSORED BY DBUSINESS

AMERICAN SOCIETY OF EMPLOYERS (ASE) | HUMAN RESOURCES CONFERENCE Please join us for THRIVE in 2022 – Engage, Empower, and Evolve on Thursday, March 10. Suburban Collection Showplace in Novi will host the event from 8 a.m. to 4 p.m. This pandemic has created immediate and profound changes in the workforce. We have been part of the largest work-from-home experiment that has yet to end. The war on talent is raging, and the great resignation is upon us. There has never been a more challenging or exciting time for HR professionals. Network with peers in the region. Learn from thought leaders who will explore how to optimize personnel, and thus succeed in an era of uncertainty. Guests include Meridith Elliott Powell, business keynote speaker, and Joshua M. Evans, culture keynote speaker. Do not miss the opportunity to attend this premier convention in southeast Michigan. Advance signup ensures a complimentary, keynote-authored book reserved just for you! Call 248-223-8041 to receive group rates. Contact Nick Corrado at ncorrado@aseonline.org with sponsorship inquiries. View full agenda and submit registration at aseonline.org/ events/hr-conference-2022.

ASSOCIATION FOR CORPORATE GROWTH: DETROIT CHAPTER | M&A ALL STAR AWARDS The Association for Corporate Growth (ACG) Detroit Chapter is a 430-member nonprofit business organization of corporations, lenders, and private equity firms that invest in middle-market companies. Please join us for our seventh annual M&A All Star Awards on May 3 from 6 p.m. to 8:30 p.m. at The Townsend Hotel in Birmingham. This event provides excellent networking opportunities and recognizes top deals/dealmakers in the Detroit M&A community from 2021. We thank this year’s Diamond Sponsor, Foley & Lardner LLP; Ruby Sponsor, DBusiness; Emerald Sponsors, Aon, BDO, JP Morgan Chase, and Peninsula Capital Partners. To learn more and register online, visit acg.org/detroit.

AUBURN HILLS CHAMBER OF COMMERCE | STATE OF THE COMMUNITY Please join us at the Auburn Hills Marriott Pontiac on Wednesday, March 16, from 8 a.m. to 10:30 a.m. This is a great way to meet with community leaders and business professionals. City of Auburn Hills Mayor, Kevin McDaniel, will serve as the keynote speaker, acknowledging accomplishments from 2021 and presenting initiatives in 2022 for this dynamic Michigan city. Auburn Hills Chamber of Commerce 2021 Chair of the Board, Deborah Burton, CPA, Partner, Plante Moran, now retired, will share innovative experiences, as well as introduce our next chair, Gary Neumann, General Manager of Great Lakes Crossing Outlets and the 2022 Board of Directors. The ILEAD Class of 2021 will also be announced and recognized. To attend, become an exhibitor, or inquire about sponsorship opportunities, call 248-853-7862 or visit auburnhillschamber.com.

ENTREPRENEURS’ ORGANIZATION – DETROIT CHAPTER Are you an entrepreneur? If yes, then come hang out with us! Our organization welcomes innovative professionals from every facet of life. It brings incredible value to your business and family, on top of personal evolution. There are several local learning and social events throughout the year. Come March, our guest of honor is Dandapani, a Hindu priest who will guide us to highlight our purpose and sustain unwavering focus. In May, we host Alan Miltz, a discussion leader in evaluating the true cash flow of your business, who will provide insight on how to develop and manage this annually. The variety is extensive, but our mission is simple: to grow together as entrepreneurs of Detroit! To acquire more information or attend an event, please contact Anna Longe at admin@eodetroit.com.

To find out about more DBusiness sponsored events and see photos from those events visit DBUSINESS.COM

ADV E RTI SE ME NT

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Exec Life

POWER HOUR WILSON SARKIS

Networking expert Derek Dickow hosted the Power Connections cannabis business networking event on Nov. 18 at The Townsend Hotel in downtown Birmingham. The event, which drew more than 400 people, featured networking and panel discussions centered around the future of the state’s cannabis industry. It also generated $55,700 for the Children’s Foundation in Detroit, which focuses on the health and well-being of the children of Michigan and their families.

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1. Jason Wentworth, Jeff Gunsberg, Terry Judge 2. Mike Berry 3. Kelly Garety, Stephanie Kern 4. Mike Blogna, Kimberly Scott 5. Paul Mallon, Derek Dickow, Klint Kesto

DETROIT TECH HUB PATRICK GLORIA

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On Feb. 9, the DBusiness Breakfast Series covering Detroit as the Tech Hub of the Midwest was held at the Gem Theatre in downtown Detroit. The event focused on growing the local and state technology sector, nurturing and attracting more tech startups, and cultivating future talent locally. As part of the series, Danielle Russell, director of platform solutions in the Americas for Google, moderated a panel discussion between Evan Kramer, CEO of White Glove; Michael Healander, founder and CEO of Airspace Link; and Larry Angeli, CEO of Sift.

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6. Dan Patterson, Doug Abraham, Evan Mollenkamp 7. Evan Kramer, Mario Moceri, A.J. Simon 8. Ghada Abdallah, Josiah Willis 9. Marletta Boyd II, Andre Ebron 10. Nathan Labenz, Michael Healander, Danielle Russell, Evan Kramer

ECONOMIC FORECAST PATRICK GLORIA

The Chaldean American Chamber of Commerce hosted its Industry Outlook: 2022 Economic Forecast on Feb. 9 at the Kingsley Bloomfield Hills — a Doubletree by Hilton. The annual event brought together experts in the field of finance, including Dennis Cowan of Plunkett Cooney, Donald Thorn of Comerica Bank, Michael Acho of Lincoln Advisors, and R.J. King of DBusiness magazine, to discuss what the future holds for Michigan businesses. 11. Laura Mendoza Nillson, Preston Rabban, Rana Adou, Theresa Sawa 12. Ben Schafer, Mark Orechkin, Faris Goryoka, Sharkey Haddad 13. Dominic Fazzolari, Kevin Sheridan 14. David Jappaya, Wassem Ayar, Preston Rabban 15. Livia Khemmoro, Robin Yono, Kevin Jappaya

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dbusiness PROFESSIONAL

New Standard

Cannabis Culture Thrives at New Standard Provisioning Centers In 2018, marijuana was legalized for adult recreational use in Michigan. Soon after, longtime Michigan community and business leaders founded New Standard, as they were committed to setting a new standard for the cannabis industry in the state. Cannabis is the first new industry in the U.S. in decades, and it’s also one of the nation’s fastest-growing industries. Leaders from across a vast array of experiences came together to form New Standard, bringing their expertise to this fastpaced new world. New Standard’s first provisioning center opened in Hazel Park in April of 2020. The company soon added seven more stores to its roster in Michigan; two more locations are expected to open in 2022. “New Standard has had an incredible year of expanding our retail operations,” says Howard Luckoff, CEO and co-founder of New Standard. “Walking into a New Standard location feels like walking into a Starbucks or a Shinola retailer. The environment is warm, eclectic, comfortable, educational, and engaging.” While some people may feel overwhelmed walking into a cannabis provisioning center, New Standard pairs each guest with an expert budtender who can provide recommendations and advice, and help the guest through the sales process. “I came from the cosmetic industry,” says Mary Turon, COO of New Standard. “When I started in cannabis, I was noticing how some CBD products in skincare were making a big impact on people’s skin, which got me curious." “With hundreds of products for medical and recreational use, shoppers will often spend 40 minutes in the store,” she adds. “Our stores create a culture where customers can unwind and be educated on the use of our products. It’s an individualized experience that brings our customers back again and again.” New team members receive three weeks of extensive training, including classroom-style product training and dispensary operations training. The stores also offer continual refresher courses as new products and consumption methods emerge in the cannabis industry. New Standard has two cultivation facilities and a processing operation in Michigan, allowing the company to be fully vertically integrated. The New Standard experience is farm-to-flower,

in which skilled cultivators and cannabis experts regularly connect with store budtenders to discuss new products, uses, and developments. New Standard-grown flowers are meticulously cared for, from seed to harvest. The flower is then trimmed, cured, tested, and sent to New Standard locations. New Standard strives to grow cannabis in its most natural state, without hidden or unnatural treatments, to achieve cleaner cannabis. Their flower has become a favorite for New Standard customers. Not only does the New Standard experience allow for deeper connections between customers and budtenders, but it also welcomes commerce and partnerships with the local community. Committed to positively impacting each community it serves, New Standard donates a portion of its proceeds from each of its locations to local nonprofit organizations throughout the year. Most recently, each store location selected a food pantry in their community and donated

canned foods that were collected in the stores. “We give back to the communities we serve,” Luckoff says, “and we help create opportunities that make the most sense for the needs of that community.” New Standard was named Best Recreational Marijuana Retailer in Oakland County, Best of Hour in both the Delivery and Dispensary categories, and its Hazel Park location was the only cannabis retailer to be selected as a winner in the 17th annual Detroit Design Awards in the Retail Interior Design category.

New Standard

Howard Luckoff, CEO and Co-founder Mary Turon, COO

anewstandard.com

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From the Top

TOP UNDERGRADUATE BUSINESS SCHOOLS IN METRO DETROIT BAKER COLLEGE AUBURN HILLS, PORT HURON, ROYAL OAK (COMING SOON) | Private, Not-for-profit Undergrad programs: Bachelor’s and 4+1 accelerated BBA/MBA degree programs including accounting, business administration, finance, human resource management, information technology, logistics, marketing, nursing, and more. Over 40 programs are offered 100 percent online. Transfer students can apply at no cost. baker.edu; 855-487-7888 CLEARY UNIVERSITY DETROIT, HOWELL | Private Undergrad programs: BBA programs including sports promotion management, business analytics, corporate accounting, project management, nonprofit management, and more. cleary.edu; 800-686-1883

Bachelor’s degree in culinary arts. hfcc.edu; 800-585-4322 LAWRENCE TECHNOLOGICAL UNIVERSITY SOUTHFIELD | Private Undergrad programs: BBAs with concentrations in business administration, information technology, and business data analytics. ltu.edu; 248-204-4000

MACOMB COMMUNITY COLLEGE CLINTON TOWNSHIP, WARREN Undergrad programs: Associate degree in business administration is

available with concentrations in accounting, business management, entrepreneurship, small business management, general business, global supply chain management, hospitality management, and marketing. macomb.edu; 586-445-7512 MADONNA UNIVERSITY LIVONIA | Private Undergrad programs: Bachelor’s degrees in accounting, computer technology, international business and economics, human resources management, management information systems, and more. madonna.edu; 734-432-5339

MICHIGAN STATE UNIVERSITY EAST LANSING Undergrad programs: Bachelor’s degrees in accounting, finance, hospitality, business, human resource management, marketing, management, and supply chain management. broad.msu.edu; 517-355-7605 NORTHWOOD UNIVERSITY MIDLAND | Private Undergrad programs: Bachelor’s degrees in accounting, advertising and marketing, aftermarket management, automotive marketing management, entrepreneurship, e-sports management, economics, computer science, cybersecurity management, finance, health care management, hospitality management, operations and supply chain management, sports management, and more. northwood.edu; 800-622-9000 OAKLAND COMMUNITY COLLEGE AUBURN HILLS, FARMINGTON HILLS, ORCHARD RIDGE, ROYAL OAK, SOUTHFIELD, WATERFORD TOWNSHIP Undergrad programs: Associate degrees in business administration, computer information systems, culinary arts, health care administration, international commerce, management development, and more. oaklandcc.edu; 248-341-2000

OAKLAND UNIVERSITY ROCHESTER HILLS Undergrad programs: Bachelor’s degrees in accounting and finance, actuarial science, economics, management and marketing, management information systems, and operations management. Also home to the Southeastern Michigan Economic Data Center and Center for Data Science and Big Data Analytics. oakland.edu/business; 248-370-3360 ROCHESTER UNIVERSITY ROCHESTER HILLS | Private Undergrad programs: Bachelor’s degrees in accounting, computer information systems, information systems – programming, management, mass communication, marketing communication, nonprofit management, sports management, strategic leadership, and more. Computer information systems, management, and strategic leadership are offered in RU’s accelerated degree completion format. rochesteru.edu/business; 248-218-2000 SCHOOLCRAFT COLLEGE LIVONIA, GARDEN CITY Undergrad programs: Associate degrees in accounting, general business, business administration, business information technology, computer information systems, cosmetology management, economics, finance, real estate

property management, supply chain management, and more. schoolcraft.edu; 734-462-4426 UNIVERSITY OF DETROIT MERCY DETROIT | Private Undergrad programs: BBAs in accounting or general business, with concentrations in accounting, business law, decision sciences, finance, human resources management, social entrepreneurship, international business, management, marketing, business intelligence, and sports management. Students can qualify for an accelerated, five-year BSBA/MBA program. udmercy.edu; 313-993-1245 UNIVERSITY OF MICHIGAN ANN ARBOR Undergrad programs at the Ross School of Business: Bachelor’s in accounting, business economics and public policy, finance, business law, business communication, management and organizations, and technology and operations. michiganross.umich.edu; 734-764-7433 UNIVERSITY OF MICHIGAN DEARBORN Undergrad programs: BBAs with majors in accounting, digital marketing, finance, general business, human resource management, information system management,

DAVENPORT UNIVERSITY DETROIT | Private Undergrad programs: BBA programs with focuses in accounting, accounting fraud investigation, industrial project management, human resource management, general business, and finance. Associates in business administration are available in finance, human resources, accounting, and general business administration. davenport.edu; 800-686-1600

HENRY FORD COLLEGE DEARBORN Undergrad programs: Associate degrees in 150 programs including business, health sciences, nursing, STEM, and liberal arts fields.

DEVOS GRADUATE SCHOOL, NORTHWOOD UNIVERSITY, MIDLAND

PHIL COLE

EASTERN MICHIGAN UNIVERSITY YPSILANTI Undergrad programs: BBAs in accounting, computer information systems, entrepreneurship, finance, general business, international business, management, accounting information systems, and marketing. Certificates in business analytics, finance, web, and mobile technologies. emich.edu; 734-487-1849

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From the Top

marketing, small business management, and supply chain management. umdearborn.edu/cob; 313-593-5460

management, management, marketing, applied management, and information technology. walshcollege.edu; 248-823-1600

UNIVERSITY OF PHOENIX DETROIT Undergrad programs: Bachelor’s in business and business management. phoenix.edu; 313-324-3900

WAYNE STATE UNIVERSITY DETROIT Undergrad programs at the Mike Ilitch School of Business: Bachelor’s degrees with concentrations in accounting, finance, global supply chain management, information systems management, management, and marketing. Additional coursework available in entrepreneurship and innovation, and sports and entertainment management.

WALSH COLLEGE TROY | Private Undergrad programs: Online and on-campus bachelor’s programs in accountancy, finance, general business, human resource

ilitchbusiness.wayne.edu; 313-577-4505 Sources: Listings reflect programs offered by a college’s business school, where such business schools exist. This list does not include certificate programs or minors. All universities are public unless otherwise noted.

TOP GRADUATE BUSINESS SCHOOLS IN METRO DETROIT BAKER CENTER FOR GRADUATE STUDIES AUBURN HILLS | Private Graduate programs: MBA degrees in accounting, business administration, business intelligence, finance, health care management, human resource management, information systems, and leadership studies. baker.edu; 855-487-7888

COURTESY MSU COMMUNICATIONS AND BRAND STRATEGY

CLEARY UNIVERSITY DETROIT, HOWELL | Private Graduate programs: MBA and MS degrees are offered 100 percent online. Master’s degree focuses include analytical efficiency, financial planning, health care leadership, strategic leadership, human resources management, and culture, change, and leadership. cleary.edu; 517-338-3315 CONCORDIA UNIVERSITY ANN ARBOR | Private Christian University Graduate programs: A doctorate in business administration (DBA) is available, along with MBAs with specializations in accounting, communications and public relations, finance, health care administration, human resources management, innovation and entrepreneurship, sports and entertainment business, and more. cuaa.edu/business; 734-995-7527 DAVENPORT UNIVERSITY DETROIT | Private Graduate programs: MBA programs

with specializations in general business, data mining and visualization, health care management, human resource management, marketing, predictive analytics and data visualization, finance, leadership strategies, managerial accounting and strategic management. A Master of Management is available, along with a Master of Accountancy. davenport.edu; 800-686-1600 EASTERN MICHIGAN UNIVERSITY YPSILANTI Graduate programs: MBA with 14 different areas of specialization; MS degrees in accounting, finance, human resources management and organizational development, information systems, integrated marketing communications, taxation, and more. emich.edu/cob; 734-487-0042 LAWRENCE TECHNOLOGICAL UNIVERSITY SOUTHFIELD | Private Graduate programs: MBA and MS programs are offered both online and on campus with concentrations in business data analytics, health care administration, information technology, and graduate certificates in cybersecurity and project management. Students also have the option to pursue a general MBA degree where they can choose any combination of three graduate-level elective courses, providing the broadest range of knowledge. ltu.edu; 248-204-3160

finance, business analytics, finance, and a Doctor of Business Administration are offered. devos.northwood.edu; 800-622-9000 OAKLAND UNIVERSITY ROCHESTER HILLS Graduate programs: Online and on-campus master’s programs include 100-percent online MBAs, part-time MBAs geared for working professionals, weekend executive MBAs for experienced professionals, and a master of accounting. MS degrees in business analytics, cyber security, and information technology management. Graduate certificates include certified financial planner, digital marketing, nonprofit management, paralegal, project management, and quantitative methods workshop. Executive education: Career-advancing educational opportunities available. MBA: oakland.edu/business; 248-370-3287 PACE: oaklande.edu/pace; 248-370-3177 UNIVERSITY OF DETROIT MERCY DETROIT | Private

Graduate programs: An MBA program geared toward working professionals is offered evenings and weekends, and may be completed in one year with a full-time class schedule. Concentrations include business administration and health services administration. Certificates in ethical leadership and business turnaround management are offered. Dual degree programs are also available in law, computer and information systems, and health services administration. business.udmercy.edu; 313-993-1245 UNIVERSITY OF MICHIGAN ANN ARBOR Graduate programs at the Ross School of Business: Full-time MBA program; part-time evening, online, and weekend MBA programs; and an executive MBA program are available in Ann Arbor. The school also offers master’s degrees in management, accounting, and supply chain management. Executive education: There are a wide range of customized and open-enrollment programs designed to develop individual specializations and strengthen organizations.

MBA: michiganross.umich.edu; 734-615-5002 Executive education: michiganross. umich.edu/programs/ executive-education; 734-763-1000 UNIVERSITY OF MICHIGAN DEARBORN Graduate programs: Earn master’s degrees with courses available weekday evenings, online, or through a combination of the two. MBA and MS programs are offered in accounting, business administration, business analytics, finance, information systems management, marketing, and supply chain management. Dual-degree options are also available. umdearborn.edu/cob/grad-programs; 313-593-4776 UNIVERSITY OF PHOENIX DETROIT Graduate programs: Master of management. phoenix.edu; 313-324-3900 WALSH COLLEGE TROY | Private Graduate programs: Online and on-campus master’s programs

CONTINUED ON NEXT PAGE ELI BROAD COLLEGE OF BUSINESS, MICHIGAN STATE UNIVERSITY, EAST LANSING

MADONNA UNIVERSITY LIVONIA | Private Graduate programs: MBA certifications offered in cost management, criminal justice leadership, information technology management, and more. MSBA courses offered in management studies and various leadership disciplines. Courses also available online. madonna.edu; 734-432-5354 MICHIGAN STATE UNIVERSITY EAST LANSING Graduate programs: MBA programs offered in person, online, or hybrid. Full-time MBA programs in business analytics, finance, human resource and strategic management, marketing, and supply chain management. Executive education: Executive MBA offered in Troy and East Lansing one weekend/month in Lansing and online. A wide range of non-degree, open-enrollment programs are available, specializing in business tools and techniques, finance, leadership, and more. Full-time MBA: 517-355-7604 Executive MBA: 517-355-7603 Executive Development Programs: 517-353-8711 msu.edu; 517-355-1855 NORTHWOOD UNIVERSITY – DEVOS GRADUATE SCHOOL MIDLAND | Private Graduate programs: Accelerated, online, and evening MBA programs; MS in organizational leadership,

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From the Top

CONTINUED FROM PREVIOUS PAGE including a Master of Business Administration (MBA), four MBA dual degree programs, a cyber MBA, the Walsh/Kettering tech MBA, and the INSOFE International Tech MBA with a concentration in data science. MS programs include accountancy, data analytics, finance, information technology and IT leadership, management, marketing, and taxation. A Doctor of Business Administration is available. Executive education: Custom training including professional development, test prep, and continuing education for

business certifications. walshcollege.edu; 248-823-1600 WAYNE STATE UNIVERSITY DETROIT Graduate programs at Mike Ilitch School of Business: MBAs offered part time and evening with 13 concentrations available online or on-site in accounting systems, entrepreneurship and innovation, sports and entertainment management, and health care supply chain management. The school also offers master’s degrees in accounting,

finance, data science and business analytics, and automotive supply chain management. Ph.Ds. are also available. ilitchbusiness.wayne.edu; 313-577-4723

18. TROWBRIDGE HOMES 2617 Beacon Hill Dr. Auburn Hills 48326 248-373-2440 Permits: 32 Permit values: $8M

Sources: Listings reflect programs offered by a college’s business school, where such business schools exist. This list does not include certificate programs or minors. All universities are public unless otherwise noted.

19. HEALY HOMES 57234 Meadowcreek Circle N.

TOP 20 HOME BUILDERS IN METRO DETROIT (RANKED BY 2021 PERMIT VALUE) 1. PULTE HOMES 2800 Livernois Bldg. D, Ste. 320 Troy 48083 248-647-2750 Permits: 578 Permit values: $152.67M 2. LOMBARDO HOMES 13001 23 Mile Rd., Ste. 200 Shelby Township 48315 586-781-7900 Permits: 368 Permit values: $112.5M 3. M/I HOMES OF MICHIGAN 40950 Woodward Ave., Ste. 204 Bloomfield Hills 48304 248-836-4522 Permits: 359 Permit values: $97.2M 4. TOLL BROTHERS 26200 Town Center Dr., Ste. 200 Novi 48375 248-305-4000 Permits: 133 Permit values: $55.5M 5. MJC COS. 46600 Romeo Plank Rd., Ste. 5 Macomb 48084 586-263-1203 Permits: 239 Permit values: $53.3M 6. ROBERTSON BROTHERS HOMES 6905 Telegraph Rd., Ste. 200 Bloomfield Hills 48301

248-657-4968 Permits: 156 Permit values: $32.3M 7. CLEARVIEW HOMES 445 S. Livernois Rd., Ste. 324 Rochester Hills 48307 248-275-6992 Permits: 104 Permit values: $24.5M 8. CENTURY COMMUNITIES 41210 Bridge St. Novi 48375 248-621-2895 Permits: 61 Permit values: $17.4M 9. HUNTER PASTEUR 32300 Northwestern Hwy., Ste. 230 Farmington Hills 48334 248-539-5511 Permits: 74 Permit values: $16.2M 10. CAPITAL CONSTRUCTION GROUP P.O. Box 1702 Brighton 48116 248-797-2787 Permits: 48 Permit values: $14.9M 11. ACADIA HOME BUILDERS 55110 Wolverine Dr. Macomb 48044 586-789-9123 Permits: 36 Permit values: $13.1M

12. BIG SKY DEVELOPMENT 10524 Grand River Ave. Brighton 48116 810-459-3400 Permits: 42 Permit values: $12.8M 13. ALLEN EDWIN HOMES 2186 E. Centre Ave. Portage 49002 800-906-1033 Permits: 59 Permit values: $12.7M 14. INFINITY HOMES AND CO. 42400 Grand River Ave., Ste. 112 Novi 48375 248-449-8084 Permits: 106 Permit values: $12.4M 15. SILVERADO HOMES INC. 637 N. Main St., Ste. 400 Rochester 48307 248-841-4568 Permits: 40 Permit values: $9.9M 16. D’ANNA COSTRUCTION CO. 51246 Woodside Dr. Macomb 48042 586-883-2826 Permits: 39 Permit values: $9.6M 17. MITCHELL BUILDING CO. 1500 Fountain View Dr. Brighton 48114 810-227-2785 Permits: 44 Permit values: $8.9M

South Lyon 48178 248-486-2985 Permits: 32 Permit values: $5.9M 20. EUREKA BUILDING CO. 5960 Livernois Troy 48085 248-564-6010

Permits: 32 Permit values: $4.5M Source: Home Builders Association of Southeastern Michigan

TOP 10 MORTGAGE LENDERS IN METRO DETROIT 1. ROCKET MORTGAGE CO. 1050 Woodward Ave. Detroit 48226 800-610-5499 quickenloans.com Top local executive: Dan Gilbert, founder and chairman Total residential loan volume (2021): $275.3 (through Q3) Total residential loan volume (2020): $320.2BB Loans closed (2021): NA Loans closed (2020): NA 2. UNITED WHOLESALE MORTGAGE 585 South Blvd. E Pontiac 48341 800-981-8898 uwm.com Top local executive: Mat Ishbia, president and CEO Total residential loan volume (2021): $226.5B Total residential loan volume (2020): $182.5B Loans closed (2021): 654,450 Loans closed (2020): 561,119 3. SUCCESS MORTGAGE PARTNERS 1200 S. Sheldon Rd., Ste. 150 Plymouth 48170 734-259-0880 successmortgagepartners.com Top local executive: Allison Johnston, president Total residential loan volume (2021): $3.049B Total residential loan volume (2020): $3.011B Loans closed (2021): 13,102 Loans closed (2020): 12,938 4. TOWNE MORTGAGE CO. 2170 E. Big Beaver Rd., Ste. A Troy 48083 888-778-9700 townemortgage.com Top local executive: Mark Janssen, CEO Total residential loan volume

(2021): $2.3B Total residential loan volume (2020): $2.5B Loans closed (2021): 9,633 Loans closed (2020): 11,001 5. MORTGAGE 1 INC. 43456 Mound Rd. Sterling Heights 48314 866-532-0550 mortgageone.com Top local executives: Mark Workens, CEO; Rick Holcomb, president Total residential loan volume (2021): $2.004B Total residential loan volume (2020): $2.27B Loans closed (2021): 10,068 Loans closed (2020): 11,618 6. JOHN ADAMS MORTGAGE CO. 25800 Northwestern Hwy., Ste. 110 Southfield 48075 248-208-3902 johnadamsmortgage.com Top local executive: Larry Bsharah, president Total residential loan volume (2021): $721.7M Total residential loan volume (2020): $814.5M Loans closed (2021): 2,814 Loans closed (2020): 3,292 7. CAPITAL MORTGAGE FUNDING 17170 West 12 Mile Rd. Southfield 48076 248-569-7283 lowrateonline.com Top local executive: Harry J. Glanz, president and cofounder Total residential loan volume (2021): $467.9M Total residential loan volume (2020): $477.7M Loans closed (2021): 1,991 Loans closed (2020): 2,033

8. ROSS MORTGAGE CORP. 2075 W. Big Beaver Rd., Ste. 700 Troy 48084 248-968-1800 rossmortgage.com Top local executive: Tim Ross, CEO Total residential loan volume (2021): $436M Total residential loan volume (2020): $544M Loans closed (2021): 2,060 Loans closed (2020): 2,539 9. HORIZON FINANCIAL GROUP A division of First Securities Financial Services 30150 Telegraph Rd., Ste. 320 Bingham Farms 48025 248-538-7162 horizonfinancialgroup.com Top local executive: Joshua M. Rubin, president Total residential loan volume (2021): $132.18M Total residential loan volume (2020): $114M Loans closed (2021): 483 Loans closed (2020): 454 10. ONE STOP FINANCIAL GROUP 2615 W. 12 Mile Rd. Berkley 48072 248-952-5248 onestopfinancialgroup.com Top local executive: Jason Glass, president Total residential loan volume (2021): $46.1M Total residential loan volume (2020): $39.6M Loans closed (2021): 152 Loans closed (2020): 138 Source: DBusiness research

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From the Top

TOP CIRCUIT COURT JUDGES MACOMB COUNTY – MOUNT CLEMENS

HON. JAMES M. BIERNAT JR. 16th Circuit Court

HON. RICHARD L. CARETTI 16th Circuit Court

HON. TERI L. DENNINGS 16th Circuit Court

WAYNE COUNTY – DETROIT

HON. DAVID J. ALLEN 3rd Circuit Court

HON. EDWARD EWELL JR. 3rd Circuit Court

HON. DAVID A. GRONER 3rd Circuit Court

HON. BRIDGET MARY HATHAWAY 3rd Circuit Court

HON. KATHLEEN M. MCCARTHY 3rd Circuit Court

OAKLAND COUNTY – PONTIAC

HON. MARTHA D. ANDERSON 6th Circuit Court

HON. MARY ELLEN BRENNAN 6th Circuit Court

HON. JACOB J. CUNNINGHAM 6th Circuit Court

HON. KAMESHIA D. GANT 6th Circuit Court

HON. JULIE A. MCDONALD 6th Circuit Court

HON. PHYLLIS C. MCMILLEN 6th Circuit Court

HON. VICTORIA A. VALENTINE 6th Circuit Court

HON. RAE LEE CHABOT 6th Circuit Court

HON. DONALD L. KNAPP JR. 3rd Circuit Court

HON. SHALINA D. KUMAR 6th Circuit Court

HON. LORIE N. SAVIN 6th Circuit Court

HON. MICHAEL D. WARREN JR. 6th Circuit Court

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Closing Bell

Shifty Engineering “Would you buy a used car from me?” John DeLorean once asked reporters. Maybe not — but who can resist the spate of documentaries about this errant son of Detroit?

he hidden camera captures a man lifting a heavy suitcase onto a coffee table, then releasing the latches. It’s Oct. 19, 1982, and the action is taking place inside a Sheraton Hotel suite in Los Angeles. John DeLorean — exalted leader of DeLorean Motor Car Co. — sits on the sofa, giddy as he beholds the cocaine. “Better than gold!” he says. “Gold weighs more than this, for God’s sake.” The suitcase represents just the tip of the cokeberg. DeLorean had arranged for the delivery of 220 pounds, in an effort to earn $60 million and save his company. Moments later, he’s handcuffed. Authorities had set up the Detroit native in a series of meetings over the previous 45 days. Their efforts sealed DMC’s doom, destroyed DeLorean’s reputation, and resulted in a not-guilty verdict after a sensational trial. The claim of government entrapment stuck; the defendant was free. “Eternal vigilance is the price of dishonesty,” he once wrote. The sting is featured in “Framing John DeLorean,” the 2019 movie — part documentary, part re-enactment — that stars Alec Baldwin. Appearing on camera, DeLorean’s adopted son, Zach, summarizes the story: “It’s got cocaine, hot chicks, sports cars, bombed-out buildings, Margaret Thatcher, Ronald Reagan, FBI agents, and hard-core drug dealers.” The sports car in question, the DeLorean DMC-12, was featured in the 1985 film “Back to the Future,” guaranteeing immortality for the approximately 4,000 stainless-steel coupes that were produced, as well as

ALL ABOARD During a midlife crisis in the early 1970s, John DeLorean stormed off from General Motors, where he was a $650,000-per-year vice president, and underwent a makeover that included facial surgery to augment his weak chin. After the operation, he was set for 1980s narcissism.

an oddly heroic status for their namesake. The story “still feels tailor-made for movies,” according to the reviewer of another 2019 title, “Driven.” In this “relatively amusing dramedy,” actor Lee Pace balances DeLorean’s “gentlemanly understatement with an icon’s overconfidence.” Last year, Netflix presented “Myth & Mogul: John DeLorean,” a three-part documentary. The Wall Street Journal says DeLorean “is portrayed as both a swashbuckling hero and a scurvy pirate; a visionary innovator and an unscrupulous huckster.” Through these films, along with Hillel Levin’s stellar 1983 exposé “Grand Delusions: The Cosmic Career of John DeLorean,” we encounter a subject who absorbed elements of 1960s counterculture and, in the following decade, added veneers of social conscience and self-actualization. Born in 1925, DeLorean grew up at 17199 Marx St., in a neighborhood near I-75 and E. McNichols Road. The engineering profession was a natural draw. Enrolling at Lawrence Technological University in Southfield in 1941 (at the time, it was located in Highland Park), he played clarinet in a band, wrote columns for the Tech News, and thumbed through textbooks 30 minutes before scoring perfect exam marks. Yet he operated on the shady side, selling counterfeit ad space in “Yellow Pages” that didn’t belong to Michigan Bell. Lucky to have the opportunity to make things right, he eventually worked in engineering for Packard Motor Car Co. in Detroit. DeLorean’s fabled time at GM started in 1956, when Pontiac general manager Semon “Bunkie” Knudsen created an advanced engineering division and named the 31-year-old prodigy as its head. DeLorean presided over the launch of the Pontiac GTO, then ran the Chevrolet Division. But his maverick stances and playboy style led to disenrollment from GM in 1973 and initiated his singular journey. We recall DeLorean’s accomplishments, but also the duplicity — as in boasts about building an “ethical car.” Ethical? He had played false with J. Patrick Wright, author of an as-told-to autobiography, “On a Clear Day You Can See General Motors,” and dirty with Levin during that writer’s preparation of “Grand Delusions.” DeLorean was always a sneak and today, instead of thinking of him as a fallen god, the comparison to a modern day huckster seems more apt.

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Articles inside

FROM THE TOP

CLOSING BELL

THE CIRCUIT

OPINION

PRODUCTION RUN

COMPENDIUM

SPRING FASHIONS

PATENTS AND INVENTIONS

GOOD HAIR DAY

RETURN ON INVESTMENT

CONTRIBUTORS