DBusiness | July-August 2020 by Hour Media

Buy-In, Sellout How Art Van Furniture Inc. in Warren, a $612-million retail powerhouse that took 58 years to build, was destroyed in 36 months.

ROBOT WEAR

Wearable robotics boost workplace safety.

TAKING FLIGHT

Aerial taxis will speed commutes and save lives.

HERE TO HELP MICHIGAN BUSINESSES.

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LOGISTICS LAIR Art Van Furniture developed an automated warehouse to speed delivery of customer orders.

Features Dr. Betty Chu, Joy Falotico, Susan Grant, Kim Adams House, Kelley LaFontaine, Dr. Ora Hirsch Pescovitz, Suzanne Shank, and Dhivya Suryadevara. By Tim Keenan, Ilene Wolff, and Gary Witzenburg 8 DBUSINESS || JULY - AUGUST 2020

48 BUY-IN, SELLOUT How Art Van Furniture Inc. in Warren, a $612-million retail powerhouse that took Art Van Elslander 58 years to build, was destroyed in 36 months. By Norm Sinclair

ART VAN FURNITURE INC.

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Contents || July - August 2020

23 17

ON THE ROAD Macomb County needs to prevent mistakes with its $217-million Mound Road reconstruction project. HEALTH CARE: Nursing home pandemic. ROBOTICS: Skilled automation. COMPENDIUM How outsiders view Detroit.

The Ticker 23

DREAM CRUISING People want to put the ills of 2020 in the rearview mirror, and they’re hoping the Woodward Dream Cruise is still in drive mode. By Tim Keenan GERM OF AN IDEA: Auburn Hills company uses UVC light to eliminate pathogens. By Grace Turner PANDEMIC IT: Vision Computer Systems in Northville rose to the occasion when COVID-19 hit and clients had to work from home. By Tim Keenan HELPING HAND Digital developer Jonah Liss is our Young CEO of the Year. By Grace Turner PDA Q&A: Chef Genevieve Vang of Bangkok 96 in Dearborn. By R.J. King AMBULANCES OF TOMORROW Students at the College for Creative Studies design first-line-of-defense medical vehicles. By Grace Turner NEED ANYTHING?: Entrepreneur Sheldon Cohn develops a new shopping app. By Tim Keenan

10 DBUSINESS || JULY - AUGUST 2020

Focus 30

PREPARING FOR TAKEOFF Once the stuff of science fiction, new advances in electric motors, batteries, carbon fiber, and communication platforms are giving a lift to aerial taxi, cargo, and medical services. By Paul Eisenstein

Perspectives 34

ROBOT WEAR A new wave of wearable robotics boosts worker safety, augments heavy lifting, and lessens the impact of repetitive motions at construction sites, industrial plants, and manufacturing operations. By Ilene Wolff

Etc. 12 12 14 77

Exec Life 67

HOW YOU ROLL Ever wonder what it takes to create a fine cigar by hand? We provide a history of cigar-rolling, the origins of Cohiba, and what happened to major cigar companies in Cuba once Fidel Castro came to power. By Ric Bohy RETURN ON INVESTMENT Gypsy Rose: From Second City to the “Gilmore Girls,” and a star turn with George Clooney, Detroit native Rose Abdoo rides the wave of success. By Tom Murray PRODUCTION RUN Natural and Universal: Mother-and-daughter teams develop and distribute healthy skin care products. By Grace Turner

OPINION Attracting Talent: Entering new markets is never easy, especially if your goal is to build a diverse workforce in an industry known for monoculturalism. By Elaine Coffman VENTURE DEVELOPMENT Startup Nation: Madison Bachman was on her way to becoming a doctor when her love for nature drew her to South Africa. By Jeff Sloan

LETTER FROM THE EDITOR LETTERS FROM OUR READERS CONTRIBUTORS FROM THE TOP Largest Banks and Thrifts, Largest Accounting Firms, Largest Credit Unions, and Top Regional Airports. CLOSING BELL Helene Rother may be best-known for her pioneering work in automotive interiors, but her creative talents spanned stained glass to silverware. By Ronald Ahrens

ON THE COVER At the first store, originally Art Vans Furniture when it opened in 1959, from left to right are Don Fox, Bob McEachin, Bob Van Elslander, and Art Van Elslander.

CLOCKWISE FROM LEFT: FORD MOTOR CO.; UBER; EKSO BIONICS

Commentary

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Letters || July - August 2020

Taking Stock

eldom has an event upended the operations of every business. The impact of COVID-19 spared no one. Not since World War II has an international crisis affected so many people. While some have suggested that government-mandated stay-at-home orders were unnecessary, especially in rural areas, consider what could have happened had the virus spread unheeded. Hospitals and medical centers wouldn’t have been able to handle the rush of people needing treatment. As a result, many of those unable to access medical care would have rebelled out of fear and anxiety. The alternative of keeping everyone at home, while alarming at first, proved to be the right remedy for dealing with the highly contagious pathogen. Looking back, though, some stay-at-home orders were too long in duration. Florida, Georgia, Texas, and other states that reopened their economies within two months of the outbreak proved to have made the right call. In Michigan, the argument that home confinement rules were too long and too arbitrary is open to debate. Rather than blaming those in charge, which the mainstream media is the undisputed master of, let’s focus on the road ahead. Businesses that are well-run, have plenty of cash reserves, and can pivot quickly can sustain and even thrive during a downturn. Other companies saw opportunity in the crisis and developed new products and services. Quite a few, on the other hand, closed up shop because their business models weren’t sustainable. As we assess what’s left, an axiom of economics that supply always follows demand has never been more accurate. How many companies, from the Big Three automakers to small apparel enterprises, shifted their business model seemingly overnight to provide for personal protection equipment? And once the demand for respirators, ventilators, face shields, and masks is met on our shores, there’s an entire world in need of medical supplies that can be put to use immediately or stockpiled for another crisis (that hopefully never arrives). As unsettling as some hours have been through the crisis, the process of rebuilding our

12 DBUSINESS || JULY - AUGUST 2020

economy now moves to the forefront. Social distancing guidelines won’t be abandoned anytime soon, whether by government orders or concerned individuals, which will put constraints on service businesses that rely on catering to groups of people such as restaurants, concert venues, and sporting events. For the most part, these companies will adapt. Or, better put, as patrons we’ll adapt. Keep in mind a restaurant that’s operating at half capacity doesn’t have the same expenses as one that’s fully operational — but that doesn’t mean the rent will be lower. The trick to a successful outcome in this situation will be how landlords respond to negotiating new or deferred rent payments with their tenants. If they demand too much in light of the current business climate, the prospect of generating zero rent looms large. In this case, if the landlord is paying off a note, the lender will be impacted, as well. In large part, smart businesses will find a way to survive. After all, this isn’t the first time the world has dealt with a global pandemic. The 1917 Spanish flu was especially contagious, just like COVID-19, but a century ago the world lacked the technology and medical remedies that would have spared the lives of millions of people. Still, what followed was amazing. If history repeats itself, the Roaring Twenties would be a welcome sequel to what we’ve all just endured.

R.J. King

rjking@dbusiness.com

POPE FRANCIS CENTER

On behalf of the Pope Francis Center, I wanted to thank DBusiness magazine for helping us promote the “Hope in Harrowing Times” community matching campaign. Thanks to your assistance, along with the generosity of more than 1,000 people from across the country, $635,000 was raised to help Detroiters experiencing homelessness during the COVID-19 pandemic. Jeff Sell Detroit

BEAUMONT FOUNDATION

Thank you very much for including us in the Give Detroit Spotlight. As Beaumont has been dealing with a significant number of the state’s COVID-19 patients, we particularly appreciate you helping to get the word out about our different needs to fund personal protective equipment, medical devices to assist patients, employee support efforts, and research featured on our beaumont.org/giving page. Thank you, again, for helping us tell the story to the community, to engage them in our efforts. As always, you continue to be a strong supporter of Beaumont and our health care mission. Tom McGannon Southfield

URBAN NUTRIENT

I came across the Urban Nutrient story (July/August 2019) in my cyber travels and read it straight through. I know someone who works for the Hantz Group, and he told me enough about the farm (on Detroit’s east side) at that time to pique my interest. I really enjoyed the story. Joyce Williams Ann Arbor 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.

COMMITTED TO OURCITY AND OURCLIENTS Establishing, maintaining and growing businesses in Michigan and beyond.

Contributors || July - August 2020

VOLUME 15 • ISSUE 4 PUBLISHER John Balardo

EDITORIAL

EDITOR R.J. King MANAGING EDITOR Tim Keenan ASSOCIATE EDITOR Grace Turner COPY EDITOR Anne Berry Daugherty EDITORIAL INTERNS Zachary Marano, Jacob Walerius

CONTRIBUTORS

DESIGN

ART DIRECTOR Austin Phillips ASSOCIATE ART DIRECTOR Alexander Shammami

ADVERTISING SALES

ASSOCIATE PUBLISHER Jason Hosko PUBLISHING AND SALES ASSISTANT Danielle Szatkowski ACCOUNT EXECUTIVES Cynthia Barnhart, Karli Brown, Kathy Johnson, Donna Kassab, Debra Lee, Mary Pantely and Associates, Angela Tisch

PRODUCTION

PRODUCTION DIRECTOR Jenine Rhoades SENIOR PRODUCTION ARTIST Robert Gorczyca PRODUCTION ARTIST Stephanie Daniel ADVERTISING COORDINATOR Christian Lott PRS GRAPHIC ARTIST Marcus Thompson ADVERTISING DESIGNERS Christian Lott, Daniel Moen, Amanda Zwiren CONTRIBUTION: Powered by Women photographer SEE IT HERE: Page 39

CONTRIBUTION: Focus writer SEE IT HERE: Page 30

CONTRIBUTION: Cover story writer SEE IT HERE: Page 48

MATTHEW LAVERE is a Detroitbased photographer specializing in corporate and advertising assignments, as well as portraiture, which is evidenced in his photography of the eight executives featured in the Powered by Women feature, which begins on page 39. In addition to DBusiness, LaVere’s photographs have been featured in Billboard magazine, Hour Detroit, and GTB. He also does work for Howard & Howard, a law firm in Royal Oak, and Volkswagen. An avid traveler, LaVere captures images from across the nation and in major cities. When he’s not behind a camera, you can find him mentoring photography students in metro Detroit.

PAUL EISENSTEIN has been covering the automotive industry and transportation sector for DBusiness and Hour Detroit magazine for many years. Overall, he’s been covering the industry for more than 35 years. As publisher and editor-inchief of The Detroit Bureau, his work has been seen in USA Today, The Economist, Kelley Blue Book, Cigar Aficionado, Autocar, Realtor, and many daily newspapers across the country. On page 30 of this issue, he updates the plans and technologies being developed by Detroit-based ASX for an airborne taxi service. They are not alone, as nearly every major aircraft company is making plans to enter the marketplace.

NORM SINCLAIR is a Michigan State University graduate who spent 34 years at The Detroit News, where he covered criminal justice, white-collar crime, and was an investigative reporter for two decades. He’s a Pulitzer Prize finalist who was elected to the Michigan Journalism Hall of Fame in 2008. He also has won mulitple national gold and silver editorial excellence awards for his work in DBusiness from The Alliance of Area Business Publishers. In this issue, on page 48, he details the decline and ultimate bankruptcy of the once wildly successful business of Art Van Furniture Inc. in Warren after it was sold by founder Art Van Elslander in 2017 to Thomas H. Lee Partners in Boston.

CONTRIBUTING WRITERS Ronald Ahrens, Ric Bohy, Elaine Coffman, Paul Eisenstein, Tom Murray, Norm Sinclair, Gary Witzenburg, Ilene Wolff

CONTRIBUTING ARTISTS Matthew LaVere, James Yang

14 DBUSINESS || JULY - AUGUST 2020

WEB

DIGITAL DIRECTOR Nick Britsky WEB PROJECT LEAD Matt Cappo WEB PROJECT ASSISTANTS Mariah Knott, Luanne Lim, Bart Woinski SOCIAL MEDIA COORDINATOR Travis Cleveland

IT DIRECTOR Jeremy Leland

CIRCULATION

DIRECTOR OF AUDIENCE DEVELOPMENT Michelle VanArman CIRCULATION MANAGER Riley Meyers CIRCULATION COORDINATORS Sue Albers, Barbie Baldwin, Cathy Krajenke, Rachel Moulden

MARKETING AND EVENTS

MARKETING AND EVENTS DIRECTOR Mary Sutton MARKETING AND EVENTS MANAGER Molly Stelma MARKETING RESEARCH DIRECTOR Sofia Shevin MARKETING RESEARCH COORDINATOR Ana Potter MARKETING RESEARCH ASSISTANT Hannah Thomas MARKETING AND EVENTS INTERN Elizabeth Cotra MARKETING AND RESEARCH INTERNS Eric Borg, Lourd Dawood

BUSINESS

CEO Stefan Wanczyk PRESIDENT John Balardo ADMINISTRATIVE ASSISTANT Kristin Mingo DIRECTOR OF BUSINESS OPERATIONS Kathie Gorecki ACCOUNTING ASSOCIATES Natasha Bajju, Andrew Kotzian, Karley Locricchio, Joshua Phipps, Katie West PUBLISHING AND SALES COORDINATOR Lindsay Miller RECEPTIONISTS Julia Locricchio, Deanna Zawislak DISTRIBUTION Target Distribution, Troy 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 © 2020 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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INSIDE || ON THE ROAD | NURSING HOME PANDEMIC | SKILLED AUTOMATION | COMPENDIUM

I COULD RUN ANY DAMN MACHINE IN THE PLACE (DETROIT ARSENAL TANK PLANT). — K.T. KELLER, PRESIDENT, CHRYSLER CORP.

TRANSPORTATION

ILLUSTRATION BY JAMES YANG

ON THE ROAD

IN SUMMER 2021, MACOMB COUNTY WILL embark on a $217-million project to reconstruct a nine-mile stretch of Mound Road, from I-696 to M-59, which runs through the cities of Warren and Sterling Heights. While funding for such large-scale projects is challenging — the county secured a vital federal grant in 2018 — the fact is it’s also crucial to have the vigilance to identify mistakes before they occur. The last reconstruction of what is one of Michigan’s vital industrial and commuter corridors occurred more than 30 years ago, which

surpasses the average roadway expectancy of 25 years. Due to the road’s aged condition, Macomb County officials say they’re spending $3 million to $4 million annually on roadway maintenance and repairs. Once the Mound Road reconstruction project is completed in 2024, those repair costs can be shifted to other transportation or county priorities. When finished, the new roadway will greatly improve efficiency. The original road construction commenced in the early 1940s, when Chrysler Corp. built the Detroit Arsenal Tank Plant, a

vast manufacturing complex at Mound and 12 Mile roads that produced tanks to support the Allied Forces during World War II. Since then, the corridor has become a major hub for the automotive, defense, aerospace, and advanced production industries. According to data from the Macomb County Department of Roads, more than 47,000 people are employed along Mound Road. Those jobs support an additional 71,100 occupations in the county, while another 101,000 jobs in Michigan are tied to the corridor’s business activity. Last JULY - AUGUST 2020 || DBUSINESS.COM 17

Commentary || July - August 2020

INSIDE THE NUMBERS

217M

Cost to reconstruct Mound Round between I-696 and M-59.

8.7B

Wages and benefits paid to more than 118,000 employees in Macomb County.

101K

Number of jobs in Michigan supported by Mound Road’s business activity.

Source: U.S. Small Business Administration 18 DBUSINESS || July - August 2020

year, the county hired HNTB, a large infrastructure solutions firm in Seattle, to manage the project. The company has an office in Sterling Heights. When the project was first discussed in 2016, county officials partnered with Warren and Sterling Heights (though they weren’t required to), in coordination with the Michigan Department of Transportation (MDOT), the Southeast Michigan Council of Governments, and the Federal Highway Administration. The local partnership helped identify the need to add a fourth lane along both sides of the corridor, from 17 Mile to M-59. The effort, local officials say, will reduce rush hour traffic. In addition to improving traffic flow, the new corridor will offer better lighting, landscaping, signage, signals, pedestrian access, transit stops, a non-motorized multi-use pathway, and Intelligent Transportations Systems that will support emerging mobility features. During a public meeting earlier this year, county officials said they would strive to streamline the construction process. Such scrutiny will help alleviate potential problems. Case in point: MDOT announced in late November that part of a half-mile section and areas at two exit ramps of the ongoing reconstruction of I-75 in Oakland County must be replaced. The reason? A contractor used the wrong concrete mix. MDOT said the replacement will be completed by the end of 2020, when paving for the I-75 project is expected to be completed. The mistake was realized when MDOT inspectors took samples of the concrete after it had cured. The area in question will be replaced by the contractor at no additional cost to taxpayers. Still, what’s unaccounted for is the traffic delays that will occur as the substandard material is removed and new concrete is poured. Rather than wait until concrete cures to take samples, MDOT inspectors should consider testing the cement solution at its source. By catching potential issues earlier, MDOT would spare working commuters, emergency personnel, and distribution carriers from sitting in added traffic and give them more time to complete their jobs.

HEALTH CARE

NURSING HOME PANDEMIC

IN A TALE OF TWO STATES, MICHIGAN GOV. GRETCHEN WHITMER LIKELY PUT seniors in serious danger by issuing and extending an executive order that requires most nursing homes to accept patients diagnosed with COVID-19. The order puts other nursing home residents, who are especially susceptible to being infected with the virus, in harm’s way. Whitmer’s directive required long-term care facilities with 20 percent or higher vacancy to accept infected patients. Compounding the problem: the Whitmer administration, as of early June, had yet to report how many nursing home residents died from COVID-19. By contrast, in mid-March, Florida officials identified the potential for the virus to spread through its nursing homes. Led by the Florida Department of Health, officials set aside dedicated facilities away from nursing homes for elderly COVID-19 patients as they were discharged from hospitals. Overall, Florida has a much higher number of seniors than most other states, including Michigan. According to statista.com, as of early June, Michigan had an overall COVID-19 death rate of 52 per 100,000 people. Florida had a death rate of 10 people per 100,000 during the same time frame. Other states with policies similar to Michigan also had higher death rates (150 in New York and 125 in New Jersey). To improve outcomes, state officials should find out quickly how nursing homes have been impacted by the virus, as the city of Detroit reports that 84 percent of the deaths caused by COVID-19 occurred among people 60 years or older.

ROBOTICS

SKILLED AUTOMATION

COMPANIES THAT UTILIZE ROBOTS TO PERFORM REPETITIVE TASKS ARE sometimes attacked for eliminating work traditionally done by laborers. Yet are jobs that require someone to do the same thing over and over again aspirational? Wouldn’t it be better if assemblers were retained and retrained to work with robots, so they could then develop faster production cycles and new products and features? Consider a new study by the Massachusetts Institute of Technology that shows how businesses that add manufacturing robots hire more employees. One reason is that, over time, robots reduce costs. With more resources on hand, manufacturers that automate are more apt to enter new markets, buy out a competitor, or expand product lines. According to the MIT study, from 2010 to 2015, companies that increased the use of robots by 20 percentage points saw a 3.2-percent drop in employment, but at the same time overall employee hours rose 10.9 percent, while wages were driven upward. In turn, automated firms became more productive and profitable. Their market share also grew. Over the same period, the study showed that for companies with few, if any, robots, employment fell 2.5 percent for every 10-percentage-point boost in automation by a competitor. What’s more, similar businesses with fewer robots saw lower margins and higher costs, and couldn’t grow as rapidly. The study highlights that robots aren’t job-killers; rather, they’re an opportunity for employers and workers to learn and pass on new skills.

HOW OUTSIDERS VIEW DETROIT The Wall Street Journal | May 22, 2020 | By James R. Hagerty

CHAIN S. SANDHU BUILT NYX, A MAKER OF AUTO PARTS, AFTER GIVING UP AN ACADEMIC CAREER CHAIN S. SANDHU WAS EMBARKING ON AN ACADEMIC career in engineering in India’s northern state of Punjab in the early 1960s when he heard about President Kennedy’s vow to put a man on the moon. The audacity of the plan inspired Mr. Sandhu to emigrate to the U.S. After working briefly as a janitor in the Detroit area, he found an assembly-line job at General Motors, where he applied anti-rust spray to the bottoms of cars. He attracted notice when he spotted an electrical problem that halted the line one day — and fixed it. That helped win him a promotion to an engineering

job. He later took part in GM programs to envision higher-technology factories. In 1986, a friend hired him to turn around a maker of plastic tubes for automotive heating and air-conditioning systems. The firm was NYX Inc., an abbreviation for nylon extruders. Mr. Sandhu ended up buying NYX three years later, when it had annual sales of less than $2 million. NYX now focuses on interior plastic parts, such as door panels and storage spaces. Annual sales last year totaled about $600 million. ... Mr. Sandhu died May 16 of cancer at his home in Northville. He was 78. ...

Bloomberg Businessweek | April 22, 2020 | By Fola Akinnibi and Jeff Green

SEVEN YEARS AFTER BANKRUPTCY, CITY OF DETROIT FACES A NEW CRISIS THE LATE COLEMAN YOUNG, WHO WAS DETROIT MAYOR from 1974 to 1994, said that when the nation gets a cold, Detroit gets pneumonia. That’s sadly held true during the coronavirus pandemic: The city had recorded 7,904 cases of COVID-19 and 716 deaths from the disease as of April 21, making it a national hot spot and putting Wayne County, Mich., among the U.S. counties with the most deaths from the virus so far. A majority-black city of 670,000, Detroit is bracing for a recession as stay-at-home orders decimate businesses and the virus overwhelms medical and social resources. Casinos, which generate 17 percent of municipal revenue, are shuttered indefinitely. A quarter of all Michigan residents are already out of work. “While we have a health crisis, we have the biggest budget crisis this 20 DBUSINESS || July - August 2020

city has seen in seven years, and we have to solve it at the same time,” Mayor Mike Duggan said at an April 14 briefing. ... Looming over the city is the very real threat of a budget deficit triggering a state takeover. Duggan estimates Detroit will have to make up a $348 million shortfall over the next 16 months. …

REjournals.com | April 23, 2020 | By Dan Rafter

BATTLING THROUGH COVID-19 IN DETROIT: REAL ESTATE CHALLENGES ARE PLENTIFUL, BUT THERE IS HOPE

BEFORE THE COVID-19 PANDEMIC SHIFTED THE WORLD into stay-at-home mode, the commercial real estate market in Detroit was in definite growth mode. Now? No one really knows. But five top CRE professionals did their best to analyze the impact that the virus has had on the Motor City and what the future here might hold during an REjournals webinar, Detroit CRE and COVID-19: Strategies for a Shifting World. The main message from the webinar? It’s undeniable that all the main commercial sectors are struggling right now as Michigan and Detroit fight off the pandemic. But there’s also hope out there. And despite the obvious economic slowdown, business is still getting done. … Marc Nassif, senior managing director with BBG, shared an especially knowledgeable view of the market. His company performs appraisals, so he is seeing firsthand just how COVID-19 is impacting the valuation of commercial real estate. “It is daunting out there,” Nassif said. The challenge? In a traditional market, appraisers look at an asset, survey current market participants and bundle that into an opinion on the asset’s value. That approach isn’t working today, Nassif said. “The whole world has turned on its head in the last 45 days,” he said. “How relevant is data that happened six months ago, nine months ago?” During the last 45 days, though, appraisers have had the opportunity to get on the phone more often and talk with people, Nassif said. ... “The biggest problem we have is that we don’t have the sales data to show what is really happening out there yet,” Nassif said. “We expect that during the next 45 to 90 days, we’ll start seeing changes in sales prices. Now we are focusing on cash flows.” …

Compendium || Commentary

Fast Company | May 30, 2020 | By Alex Lazarow

HERE’S HOW SILICON VALLEY CAN AVOID DETROIT’S FATE IN THE 1950S, THE CUTTING-EDGE TECHNOLOGY OF THE day was automobiles, not computers. At the time, Detroit was on top of the world. The top three global car companies were headquartered there. The world’s leading entrepreneurs flocked there for access to talent, capital, and culture. Detroit was leading the way in automotive technology, which promised to reinvent the ways we built our cities, organized our society, and lived our lives. Then innovation started to take root all over the world. Car companies emerged in France, Italy, Germany, Poland, Sweden, and Japan. Over time, certain regions specialized, and in time surpassed, Detroit. Italy became the home of the best and fastest sports cars, and Germany to raw engineering. Silicon Valley and Shenzhen are the leaders in electric cars. The playbook on car making was also rewritten abroad. Toyota, for instance, pioneered the transformative approach of “just in time” manufacturing. Detroit was left behind.

Silicon Valley may be headed for a similar fate. Again, we’re seeing innovation today taking root everywhere. There are over 480 startup hubs around the world and 1.3 million startups. The best place in the world to create super-apps is China. The largest digital bank is in Brazil. The largest robotic process automation company was started in Romania. The world of tech is global, and to thrive in the next few decades, Silicon Valley will need to regroup, retool, and reinvent itself to stay on top — or at least stay relevant. Especially during the ongoing global health crisis and subsequent stay-at-home orders, employees are learning how to work remotely, and companies are weighing some of the costs and benefits to this new remote world. Many companies in the Bay Area have already drastically expanded their work-fromhome policies, some like Facebook have banned group meetings over 50 until 2021, and Twitter has gone so far as to allow remote work for all employees

TIME | May 28, 2020 | By Alejandro De La Garza

indefinitely. If a new normal includes such liberal remote work policies and the limited ability to congregate, Silicon Valley may lose some of its purpose as a technology hub as teams get distributed across the country and even the world. … Seattle Times | April 23, 2020 | By Corey Williams

STATES’ AUTOMATED SYSTEMS ARE TRAPPING $23M TO GET DETROIT CITIZENS IN BUREAUCRATIC NIGHTMARES WITH STUDENTS TABLETS, THEIR LIVES ON THE LINE INTERNET AMID PANDEMIC LINDSAY PERRY WAS 30 WEEKS PREGNANT AND ON bedrest when her husband, Justin, was accused of unemployment fraud and fined $10,000 after losing his job as a chef in 2014. The couple, who disputed the charges, tried calling the state unemployment agency, sending messages online, and even

repeatedly showing up in person, but nothing worked. … It didn’t take long for the couple’s financial life to collapse. … Michigan reversed the charges in 2017 and reimbursed the couple $6,000, but the damage was already done. … Perry’s husband was one of around 40,000 people across Michigan who were wrongly accused of unemployment insurance fraud between 2013 and 2015 as a result of a privately built, error-prone software system operated by the state with minimal government oversight. ... the story of that debacle goes back decades. ... When the recession struck, government revenues fell sharply, leading the state to cut more than $3 billion in spending between 2009 and 2011. The Unemployment Insurance Agency (UIA) was in particularly bad shape. … In an effort to modernize the UIA, Michigan contracted with a group of private tech vendors to create and operate a $47 million system, known collectively as the Michigan Integrated Data Automated System, or MiDAS. ... Over the course of nearly two years, MiDAS sent accusations to tens of thousands of Michigan residents and seized millions of dollars in their wages and tax returns. …

ABOUT 51,000 K-12 PUBLIC SCHOOL STUDENTS IN Detroit will receive computer tablets and highspeed internet to help transition from classroom to virtual learning during the coronavirus pandemic in one of the nation’s poorest big cities. Schools across Michigan closed in March as part of the state’s stay home order to slow the spread of the virus. And while many suburban districts quickly moved to teaching online, Detroit lagged because nine out of 10 students don’t have access to tablets, computers or the internet. “When our executive team began prioritizing COVID-19 relief efforts, the issue of digital inequity for Detroit students rose to the top,” said Jerry Norcia, president and chief executive of DTE Energy. The Detroit-based utility’s foundation is one of the groups contributing a total of $23 million to the initiative. Each student in the Detroit Public Schools Community District is expected to receive a tablet by the end of the academic year in June. “We recognized that we needed to take action urgently to close the digital divide for these students and provide them with the tools necessary to thrive in the 21st century,” Norcia said. ... JULY - AUGUST 2020 || DBUSINESS.COM 21

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The Ticker

INSIDE || DREAM CRUISING | GERM OF AN IDEA | HELPING HAND | AMBULANCES OF TOMORROW | PLUS PDA Q&A AND MORE ...

COURTESY OF FORD MOTOR CO.

BLUE WAVE

The annual Dream Cruise along Woodward Avenue is set for Aug. 15, come rain, shine, or social distancing. Although some parties may be canceled, the show will roll on. BY TIM KEENAN

JULY - AUGUST 2020 || DBUSINESS.COM 23

Ticker || July - August 2020

DBUSINESSDIRECT Michigan Moves Up 19 Spots in Chief Executive’s Best and Worst States for Business List Michigan is now No. 13 in Chief Executive magazine’s 16th annual Best and Worst States for Business survey, released in early June. The state jumped 19 spots, one of the biggest single-year moves in the ranking’s history. According to Chief Executive, CEOs who selected Michigan as the best state for doing business cited the workforce, regulatory environment, overall favorable business conditions, and growth in the manufacturing sector.

University of Michigan Researchers Find Way to Better Detect Nuclear Weapons at Borders

LGC Global in Detroit Awarded $51.9M Contract to Build Portion of U.S.-Mexico Border Wall LGC Global Corp., a multifaceted, minority-owned contracting company in Detroit, has been awarded a $51.9-million contract by the U.S. Army Corps of Engineers to build a four-mile section of the border wall between the United States and Mexico. The company has been an approved military contractor for more than 15 years.

Video Chat Solution for Hospital Patients Launched by eVideon in Grand Rapids Grand Rapids-based eVideon, a patient engagement and digital workflow solutions company, has released HELLO (Health, Engagement, Learning, Loved Ones), a video visitor solution. It was designed to offer a way for hospitalized patients to visit with loved ones virtually.The solution requires no downloads, accounts, or logins for patients or visitors.

Beaumont Health Debuts New Anesthesia Model Beaumont Health, the state’s largest health care system, is adopting a new anesthesia model to better serve patients, enhance the most current industry best practices, and more efficiently align anesthesia providers with hospital personnel. For full stories and more, visit dbusiness. com/daily-news to get daily news sent directly to your email.

24 DBUSINESS || July - August 2020

Dream Cruising People want to put the ills of 2020 in the rearview mirror, and they’re hoping the Woodward Dream Cruise is still in drive mode.

BY TIM KEENAN

nless the authorities close M1, the Woodward Dream Cruise is a go for Saturday, Aug. 15, regardless of social distancing guidelines. As with any Dream Cruise of the past 25 years, plenty of parties, parades, and public events are scheduled for what’s turned into a two-day spectacular. “What we value most about the Woodward Dream Cruise is celebrating the love of driving with both drivers and enthusiasts,” says Jiyan K. Cadiz, a media relations manager at Ford Motor Co., the event’s major sponsor. “We support participating in this year’s Woodward Dream Cruise if it’s supported by public health conditions, as well as appropriate safety and health guidelines for drivers and spectators.” Ford’s famous Mustang will be the star of Mustang Alley on Saturday, Aug. 15, between 10 a.m. and 6 p.m. in Ferndale. Located at the corner of 9 Mile Road and Hilton Road, it’s one of the world’s largest gatherings of everything Mustang, including a new Mach 1. Each municipality along the cruise’s route has activities planned for the weekend. In Berkley, for example, there’s an inflatable zone for kids, games, a food court, and a CruiseFest Classic Car Parade, as well as live entertainment planned for Friday, Aug. 14. Mercedes-Benz of Bloomfield Hills is scheduled to host a classic car show from 9 a.m. to 5 p.m. on the day of the Dream Cruise. “We’ve done it for years as a gesture of goodwill to

MOTOR MIDWAY Mustang Alley, along W. Nine Mile Road in downtown Ferndale, has been a major draw during the annual Dream Cruise, is scheduled for Aug. 15.

(Bloomfield Township),” says Lee Ghesquiere, vice president of Mercedes-Benz of Bloomfield Hills. “They’ve been a good partner for us, and to let them treat their employees and the people they want to reward and have a day at the Dream Cruise is kind of a cool thing. It’s a great spot and a great venue for them to be able to do that.” Ferndale, Pontiac, Birmingham, Pleasant Ridge, and Royal Oak also have activities planned along the Dream Cruise route, some of which have been canceled. Full schedules can be found at woodwarddreamcruise.com. Large events can lead to innovation, such as the Dream Cruise’s new partnership with ParkStash, an app that helps drivers find parking places and allows landowners to offer spaces for vehicles big and small. “The application is essentially Airbnb for parking,” says Drayton Taylor, event representative for ParkStash. “We enable landowners to turn things like driveways, small lots — even large lots and garages — into money-making mechanisms. There are hundreds of churches, restaurants, and small businesses that have parking lots that can make money. Individual homeowners in the area can do the same thing.” All of the transactions take place on the app, so it’s contact-free. “We think this will make for a better user experience for the people coming to the event,” Taylor says.

COURTESY OF FORD MOTOR CO.

Researchers at the University of Michigan in Ann Arbor have developed a new algorithm that could enable faster, less expensive detection of weapons-grade nuclear materials at borders, quickly differentiating between benign and illicit radiation signatures in the same cargo.

July - August 2020 || Ticker

Germ of an Idea Auburn Hills company uses UVC light to eliminate pathogens. BY GRACE TURNER

business trip took a turn for the worse when Kathleen Murray became seriously ill in Shanghai and was turned away from a hospital that only treated

Chinese citizens. While she eventually got help, the episode was the most serious illness she had while traveling, and it strengthened her desire to ditch hand sanitizers and disinfecting wipes for a portable, chemical-free cleaning solution. Murray was used to becoming sick during or soon after business trips from airports, jets, hotel rooms, and public spaces — all staples when traveling that are often teeming with germs. In 2016, she joined Velocilinx — the company name is a nod to both velocity and links, or making connections — as chief creative officer and president of global sales. The Auburn Hills-based company specializes in gaming, medical technology, mobile power, audio, and smart home products. In 2018, work began on the Germinator, a UVC light-powered wand that kills 99.9 percent of viruses and bacteria. Originally set to be available later this year, the Germinator was launched in April in response to the COVID-19 pandemic. It’s available at velocilinx.com for $139. “We’re moving as quickly as possible to bring products to market to help,” says John Dimovski, president and CEO of Velocilinx. The wand shines UVC light, a type of ultraviolet light that’s given off by the sun but doesn’t

make it through the ozone layer of the atmosphere. It is destructive to cells — the light damages pathogens’ RNA or DNA, Murray says, ultimately killing them. The 16-inch wand can be used on hard or soft surfaces. Here’s how it works: Users turn on the light and, holding it an inch or two above a surface, sweep it slowly back and forth five to 10 times, with up to 10 sweeps required for soft surfaces. About a minute later, pathogens on the surface die, the company states. The Germinator has 20 UVC LED modules and folds closed so it can fit in bags. While it won’t immediately damage skin, the light shouldn’t be used on people, animals, or plants, due its ability to destroy cells. To prevent accidents, Murray and Dimovski had safety features built into the wand. A child lock on the side of the Germinator keeps it

MAGIC WAND To kill germs in seconds, Velocilinx in Auburn Hills developed the Germinator, a UVC light-powered device that kills 99.9 percent of viruses and bacteria. It costs $139.

turned off even if children press the “on” button. Once unlocked, users must press the button quickly two times to turn the lights on. The wand automatically turns its lights off when flipped upside down, so people can’t shine the light in their eyes. As an extra precaution, the wand comes with anti-UV goggles to wear while in use. Tested by 360° Product Testing in New York, the wand has been approved by the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, Murray says. Velocilinx has also donated wands to hospitals and nursing homes. “We want to give back and affect change,” she says.

COURTESY OF VELOCILINX

Pandemic IT || By Tim Keenan VISION COMPUTER SOLUTIONS IN Northville faced a daunting task in March: In relatively short order, it had to make sure all the employees of its 90 clients could work from home. “The great majority of our 2,000 end users had to be able to operate working from home,” explains Chuck Lobert, vice president of sales and marketing at VCS. “For those who still

had on-premise servers (and) still had their data sitting in their office, we had to very quickly get VPN licensing. If they didn’t have business-level computers at home, we had to get them laptops or help them get their home computers connected. “Then we had to get our anti-virus and security software onto those home computers, which can be done

remotely,” Lobert continues. “Once our software is on a computer we can do most anything remotely, short of changing out a piece of hardware.” Founded in 1995, VCS expects to earn $5 million in sales in 2020, supporting or becoming the IT department for its 90 clients — the majority of which are law firms, title agencies, or financial service firms.

VCS can be a company’s IT department or supplement a firm with an IT department in place. In the first instance, they run everything. In the second, they help by supporting certain aspects of an IT operation. “We can do as much or as little as the client requires,” Lobert says. “We can even fill in when someone gets sick or goes on vacation.” July - August 2020 || DBUSINESS.COM 25

Ticker || July - August 2020

Helping Hand Digital developer Jonah Liss is our Young CEO of the Year. BY GRACE TURNER RYAN GOODMAN

onah Liss is doing the opposite of most companies, and finding success. In an effort to help older Americans and those with compromised immune systems, he’s as hands-on as possible in managing his new online platform, Mediumize. Liss, who turns 17 in early August, founded Mediumize in response to the COVID-19 pandemic. His free website, mediumize.com, provides an avenue through which older people and those with compromised immune systems can have groceries and other supplies delivered, or request technological help. While Liss has the know-how to automate the system, he prefers to act as a middleman for every request, pairing those who need help with volunteers based on location. “My goal has always been to keep the process as manual as possible,” he says. Liss says many of the older citizens the platform serves aren’t as familiar with technology as their younger counterparts, and they feel better when their requests are answered by a human instead of a bot — which has led to Liss’ handson approach.

SENIOR POWER Pairing technical expertise and a benevolent spirit, Jonah Liss developed a free digital platform called Mediumize that helps seniors and others with home deliveries and tech assistance.

After clients fill out an online form that asks for their name, contact information, address, service required and items needed, payment logistics, and why they consider themselves high-risk, Liss pairs each up with a volunteer. To sidestep the product search process on grocery order platforms, Mediumize clients can make general requests such as asking for a dozen eggs and a gallon of milk, or they can specify a brand and more. From there, a volunteer — who’s required to wear a mask and gloves while shopping and delivering any purchases — keeps in touch with the client. The client is able to select a preferred method of payment, ranging from cash to utilizing an online app. Mediumize also offers help with technology. Clients fill out a form that asks them to list the online service they need help with, and Liss finds

a volunteer to contact them and walk them through the process step by step. The service was especially helpful while stay-at-home orders were in place, and technology was the best way to keep in touch with loved ones, Liss says. The platform also helps coordinate personal protective equipment procurement for front line workers through various community initiatives. Even after the pandemic, Liss, who is going into his senior year at International Academy in Bloomfield Hills, plans to continue his work with the platform. He works to continue to improve the user experience. As of early June, Mediumize was available in 151 cities across 18 states and provinces. While clients can tip volunteers, Liss isn’t making money off the platform. “It’s constantly going to be evolving and repurposed, just to be able to help people,” he says.

PDA Q&A: The E-Interview || By R.J. King

GENEVIEVE VANG

Owner and Chef Bangkok 96, Dearborn

26 DBUSINESS || JULY - AUGUST 2020

DB: WHERE ARE YOU? GV: I’m at the restaurant in Dearborn. We were closed for four weeks, but we reopened for carry-out orders (in mid-May), and we just launched online ordering. Our Detroit location (at Detroit Shipping Co.) is still closed. DB: HOW’S IT GOING? GV: We’ve been very busy. A lot of people are calling or coming here to place orders. We did a great job about letting people know about

our reopening with social media, and when we reopened things just skyrocketed. Right now, we have 30 people (working) in the restaurant. DB: WHAT WAS COVID-19 LIKE? GV: It was scary. I’m originally from Laos, and my husband and our family have never seen anything like it. We make sure we test every employee every day, from morning to evening. We take pictures. We’ve been very safe.

DB: WHAT ARE PEOPLE ORDERING? GV: We have the full menu. Popular dishes are pad thai, Thai steak, Bangkok fried rice, and our curry dishes. We’ll keep doing carry-out until there’s a (COVID-19) vaccine. My customers want me to open the (120-seat) dining room, but we want to be safe. We may add a drive-thru window, but that could be $8,000, so we’re holding off on that for now.

DB: HOW ABOUT DELIVERIES? GV: We’re looking at that. I want to make sure we choose the right delivery partner. When we started online ordering, our business went up 30 percent. Plus, right now, we don’t have the dining room expenses like cleaning the dishes, serving the food, and no linens. For a mom-and-pop shop, we’re learning a lot and adjusting every day. That’s what entrepreneurs do.

TOP LAWYERS MI WOMEN BASED UPON A SURVEY OF THEIR PEERS

Less than 5% of all lawyers licensed in Michigan have received the distinction of being a LEADING LAWYER. Jennifer M. Grieco Jacqueline Asher Kelly Sharon M. Woods Sheryl A. Laughren Cheryl A. Bush Erin L. Majka Sara Ann Schimke Amy Rombyer Tripp Susan J. Sadler Janet E. Lanyon Karen Libertiny Ludden Lynn Capp Sirich Eugenie B. Eardley Laura E. Eisenberg Amy M. Spilman Kari M. Gocha Dorothy Hanigan Basmaji Debra A. Clephane Kennedy Susan Hartmus Hiser Kathleen Saenz Poppenger Julie A. Greenberg Kara S. Ferrara Lisabeth H. Coakley Patricia A. Stamler Sarah E. Kuchon Lisa Sommers Gretchko Susan E. Padley Regina Goyette Staudacher Shirley A. Kaigler Hon. Mary Beth Kelly (Ret.) Michelle D. Bayer Jorin G. Rubin Leila Freijy Sara L. Cunningham Paula K. Manis Michelle C. Harrell Julie Beth Teicher Irika N. Mellin Kristen L. Robinson Keri Middleditch Amy M. Johnston Sonal Hope Mithani Leigh D. Moss Linda G. Burwell Deborah L. Brouwer Susan D. Koval Patricia M. Nemeth Stephanie P. Ottenwess Linda D. Kennedy Patricia Kefalas Dudek Katherine Smith Kennedy Harriet B. Rotter Nancy Komer Stone Kari B. Schlaff Sabrina Shaheen Cronin Donna Marie Medina

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A lawyer CANNOT buy the distinction of Leading Lawyer. The distinction was earned by being among those lawyers most often recommended by their peers. For a full description of our research process, a complete list of all Leading Lawyers, and to view profiles of the lawyers listed on this page, go to

www.LeadingLawyers.com

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Ticker || July - August 2020

Guardhat Partners with FireHUD to Bring Advanced Exertion Monitoring to the Workforce Guardhat, a Detroit-based supplier of smart industrial safety products, has partnered with Atlanta startup FireHUD Inc., which offers biometric monitoring devices that prevent overexertion, to provide employers with a holistic view of the worksite. The platform tracks the physiology of individuals through an arm-worn device.

Ann Arbor’s TusStar Gets U.S. Approval for NMV95+ Mask Products TusStar in Ann Arbor and Neatrition, a nanotechnology company in China, have received U.S. Nelson Lab approval for their NMV95+ mask products featuring a nanoscale surface in both a new headband design and the existing over-the-ear style.

Lineage Logistics in Novi Completes Acquisition of Emergent Cold Novi-based Lineage Logistics, the world’s largest temperature-controlled warehousing and logistics company, announced June 2 that it has closed its acquisition of Emergent Cold after first announcing the move Nov. 18, 2019. With the acquisition, Lineage expands to more than 300 facilities in 12 countries, with over 1.9 billion cubic feet and 53 million square feet of storage capacity.

Parade of Homes 2020 Open Virtually Through Sept. 30 The Parade of Homes 2020, co-sponsored by the Home Builders Association of Southeastern Michigan, Lake Michigan Credit Union, and James Hardie, is available at paradehba.com through Sept. 30. It is the 31st annual exhibition of new model homes in southeast Michigan.

Dearborn’s Ghafari Invests in Farmington Hills’ Eview 360 to Enhance Design and Technology Solutions Ghafari Associates, a global architecture and engineering firm in Dearborn, has invested in Eview 360, an experiential design agency in Farmington Hills, formalizing a long-standing alliance of the two companies. Clients of both firms will will receive enhanced services and resources. Financial details were not disclosed. For full stories and more, visit dbusiness.com/daily-news to get daily news sent directly to your email.

28 DBUSINESS || July - August 2020

Ambulances of Tomorrow Students from the College for Creative Studies in Detroit bring automation to first responders.

BY GRACE TURNER utonomous vehicles meant to treat heart attacks and anxiety are some of the latest designs to come out of a partnership between the College for Creative Studies in Detroit and Covestro, a German company that makes polymers for automotive interiors. The most recent collaboration was the third such venture over four years. Each design challenge has centered on future automotive interiors, and the most recent semester (fall 2019) was more specific to vehicles for health care. In addition to using Covestro’s materials, students were asked to consider durability and functionality, the ability to easily disinfect vehicle interiors, and seating configurations for patients and providers. “The materials really (took into account) at least three or four of the senses,” says Paul Platte, senior marketing manager, industrial marketing, polycarbonates at Covestro, explaining that students considered everything from how the interiors and materials look to how they feel, affect noise levels, and smell. Platte says the ideas the students come up with may not yet be possible to create, but the concepts encourage Covestro employees to push the boundaries of the products they make. As for the students, “It gives real-world scenarios to work toward,” says Paul Snyder, chair of transportation design at CCS. “It offers constraints that the students have to solve problems within.” As part of the exercise, Raymond Gonet Jr., who recently graduated with a degree in transportation design, created an autonomous vehicle focused on cardiac care. In

SAFE PASSAGE Covestro asked CCS students to design interiors for private and secure ridesharing vehicles. This Covestro design was inspired by the projects.

a future real-world scenario, an ambulance would arrive at a patient’s house and could either stay to administer non-emergency care or drive back to the hospital while doctors work on the patient. He took into account everything from the space needed for cardiac equipment to the height of the vehicle, so paramedics could comfortably stand. Luke Woolford, another recent graduate of transportation design, drew experiences from his position as a resident assistant to design an autonomous vehicle that would be deployed to someone’s home and offer a calming environment. Individuals could spend time in the vehicle, where, for example, a dedicated lighting system might offer color therapy to help ease stress and anxiety. After each design exercise is completed, Covestro uses the results to inspire new concepts. The company also shows the prototypes to customers; it highlighted elements of the projects at the Consumer Electronics Show 2020, held in Las Vegas in January.

Need Anything? || By Tim Keenan NO ONE LIKES ROBO-CALLS, BUT WHAT if an app automatically reached out to a family member to let them know you had just entered a grocery store or a pharmacy? It would alleviate a return trip to a merchant, and could quite possibly save the day for a sick child or another member of a household who forgot to buy a key ingredient for their recipe. Eyeing an opportunity, Sheldon Cohn, a veteran Detroit advertising creative executive turned entrepreneur,

created an app called Need Anything? that automatically alerts a user’s selected contacts that they’ve entered a store. From there, the app initiates a chat conversation. “The idea struck me four or five years ago, standing in line at a pharmacy,” Cohn recalls. “I wondered why my phone can’t just tell my wife where I am, instead of me having to call or text her? Then she could tell me what she wanted.” While the app is free for users, Cohn

plans to drive revenue by charging stores $30 per month to be included in the app. In return, participating merchants receive a beacon that detects when a user has entered the store. They also get access to a dashboard of analytics that will help with the store’s marketing efforts. So far, more than a dozen stores, including CVS Pharmacy, Kroger, and Westborn Market locations, and between 1,200 and 1,500 consumers, are putting the app through its early paces.

COURTESY OF COVESTRO

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Focus || Aviation

TRAVELWAYS IN THE SKY Uber envisions an aerial taxi service it calls Uber Elevate that will transport passengers above dense cities and rural areas to destinations like major airports.

Preparing for Takeoff Once the stuff of science fiction, new advances in electric motors, batteries, carbon fiber, and communication platforms are giving a lift to aerial taxi services.

30 DBUSINESS || July - August 2020

His small aircraft project was grounded when the test pilot, a personal friend of the automotive pioneer, died in a crash (a full-scale model of the Flivver can be seen at the Henry Ford Museum in Dearborn). Since then, a number of entrepreneurs like Rimanelli have tried to make similar dreams take wing. Until recently, these might have seemed like little more than flights of fancy, but suddenly there’s a sense that personal mobility really could take off, as several critical factors have started coming together. These include the development of new and more capable battery drive systems and electric motors, autonomous vehicle technology, advances in carbon fiber, and the emergence of ride-sharing companies like Uber, which has launched the air taxi service Uber Elevate. In addition, five-seat aerial taxis — with room for a pilot and four passengers — can easily be

converted to transfer cargo and medical supplies. The latter offering, for example, can retrieve blood samples from remote locations where a virus is spreading, deliver them to a hospital or a lab, and make the return trip loaded with a vaccine or other medicines. Aerial taxis also can evacuate people from dangerous settings. Even a few months ago, it seemed, flying cabs could become a very real part of the transportation infrastructure — and perhaps quite soon, as Uber promised to begin service within just a couple years. That, however, was before the emergence of the coronavirus pandemic, which has hammered the global economy, especially the transportation industry. Air travel was all but grounded through midMay, and the ride-sharing business has seen its business drop off a precipice — to the point that after giants Uber and Lyft posted combined

UBER

eteran pilot and entrepreneur Jon Rimanelli had some lofty ideas when he launched his latest company, Detroit-based Airspace Experience Technologies, in 2018. Also known as ASX, the startup quite literally aims to take to the air by developing a battery-powered, drone-like craft that could be put into service as an airborne taxi. Flying cars and cabs have been the stuff of dreams for more than a century. Automotive pioneer Henry Ford, who in 1925 brought rigidity and safety to the fledgling aviation industry with his all-metal Tri-Motor aircraft, pumped a significant sum of money into the ultimately failed effort to build what was affectionately known as the “Flying Flivver,” a play on the nickname for his earthbound Model T.

BY PAUL EISENSTEIN

Aviation || Focus

HYUNDAI

losses of more than $3 billion for the first quarter alone, there are questions about whether they can survive. Proponents remain confident the pandemic will pose just a temporary setback. They continue to paint a rosy picture of a world where people can tap a button on a smartphone to summon an ASX or Uber Elevate flying taxi — whether in a large, dedicated parking lot, atop a parking deck, or from a network of decentralized hubs — within a matter of minutes. The cost for a one-way trip would be comparable to a luxury sedan service. The emergence of smaller, unmanned drones used by hobbyists, law enforcement, and commercial operators has set the stage for this promising new concept. Like the devices one can get at a local Best Buy, flying taxis rely on electric propulsion, rather than engines powered by aviation fuel. Advances in electric motors, as well as ongoing improvements in battery technology, promise to lower both production and operating costs while also improving range, speed, and performance over traditional aircraft. An array of prototypes already have been built, and a handful are now being tested in the air. These include startups like Slovakia’s Aeromobil, which began taking orders for private ownership at the annual Top Marques Monaco luxury goods show in 2019. Company officials hope to begin deliveries of their five-seater to private owners within the next year or two at a price of somewhere between $1.3 million and $1.6 million. Considering the size of the private aircraft market, a number of companies have entered the fray, including Britain’s Aston Martin, best known for the various luxury sedans, coupes, and sports cars used by cinematic superspy James Bond. The automaker has now teamed up with aerospace giant Rolls-Royce, Cranfield University, and Cranfield Aerospace Solutions to develop the Volante Vision Concept, which, it explains, “aims to bring luxury personal transportation to the sky.” Aston Martin estimates a production version of the concept could make the run from London to Paris, a bit over 200 miles, in 30 minutes. “Air travel will be a crucial part in the future of transportation,” says Andy Palmer, former president and CEO of Aston Martin, adding the company’s goal is to develop “the ultimate luxury mobility solution.” Whether the skies eventually come to resemble what we’ve seen in sci-fi flicks like “Blade

Runner” remains uncertain. Driving the new transportation service will be companies like Uber Elevate. Indeed, since its first aerial concept was unveiled in 2016, it’s drawn an assortment of potential aircraft providers to the fore. These include startups like ASX, as well as familiar aerospace names like Boeing and Airbus — the latter recently released an animation of a concept it calls Vahana. Developed in cooperation with Italdesign, it relies on modular components including a four-rotor drone unit that would attach to the top of a passenger car’s cabin. The vehicle’s wheels and chassis would be left behind as the aircraft flew to its destination. Upon arrival, the cabin would be set on a new chassis before the drone separates itself, leaving for the next mission. The passengers, meanwhile, drive away in a now-wheeled vehicle to reach their final destination. Apart from aircraft companies, the race to take to the skies has attracted name-brand automakers like Toyota and Hyundai; the Korean-based automaker recently partnered with Uber Elevate. “Our vision of urban air mobility will transform the concept of urban transportation,” proclaimed Jaiwon Shin, executive vice president and head of Hyundai’s Urban Air Mobility (UAM) Division, during a presentation of its S-A1 “personal air vehicle,” or PAV, at the Consumer Electronics Show in Las Vegas last January. “We expect UAM to

revitalize urban communities and provide more quality time to people. We are confident that Uber Elevate is the right partner to make this innovative product readily available to as many customers as possible.” Hyundai envisions a network of hubs — combination terminals and landing pads — that would be built in cities and suburbs around the world, or set up on existing infrastructure such as parking decks. The S-A1 would operate at altitudes of between 1,000 feet and 2,000 feet, and handle trips of up to 60 miles at speeds reaching 180 mph. For its part, Toyota began the year by investing nearly $400 million in Joby Aviation, a startup that’s developing a vertical takeoff and landing, or VTOL, aircraft targeting commercial air taxi services like Uber Elevate. With its six propellers, the aircraft is intended for relatively short flights of up to 150 miles at speeds approaching 200 mph. “Air transportation has been a long-term goal for Toyota, and while we continue our work in the automobile business, this agreement (with Joby Aviation) sets our sights to the sky,” says Akio Toyoda, president and CEO of Toyota Motor Corp. “We hope to deliver freedom of movement and enjoyment to customers everywhere on land, and now in the sky.” While traditional aerospace companies like Boeing and Airbus might seem like logical leaders in the field, automakers such as Hyundai and Toyota think they can bring a unique advantage

HUB OF INNOVATION At the CES show in January, Hyundai showed off a scale model mock-up of its air taxi S-A1 and hub, complete with autonomous buses that look like rolling toasters..

July - August 2020 || DBUSINESS.COM 31

Focus || Aviation

to the nascent air taxi industry: their ability to turn out product in assembly line fashion, rather than the slow, plodding process that’s the norm in today’s aircraft environment. That would be critical for Uber Elevate and other air taxi services that hope to field hundreds of aircraft in relatively short order. Although the big budgets available to Boeing, Airbus, Hyundai, or Toyota might seem an insurmountable obstacle, the fact that Uber, in particular, hopes to sign up several aircraft vendors has given hope to startups like ASX, a sister company to Detroit Aircraft that’s based at the Coleman A. Young International Airport (Detroit City Airport). Rimanelli, founder and CEO of both companies, says his team’s expertise would bring an even greater level of nimbleness to the game. So far, ASX has developed several concepts, and all of its subscale model test flights have performed as designed. The company’s approach, like Hyundai’s SA-1, is a hybrid of drone and conventional aircraft design. It uses a number of individual motors and propellers to allow it to take off and land vertically, but when airborne, its wing swings forward — an approach that creates greater lift and lower drag, enabling faster travel speeds and greater range. “It’s basically a modernized redesign of the 32 DBUSINESS || July - August 2020

XC-142, an experimental Navy tilt-wing aircraft from the 1960s,” Rimanelli says. The military craft eventually was grounded, and the challenge of developing rotating wings proved seemingly insurmountable until the Bell Boeing V-22 Osprey came along in 2007. By using electric motors rather than complex gas engine and transmission systems, manned drones like the one ASX is developing are expected to be considerably cheaper than the Osprey. The use of as many as eight different rotors, meanwhile, would enhance safety by providing redundancy if one of the motors should fail, Rimanelli explains. The project seemed poised for take-off as recently as March, when ASX established a preliminary partnership with both Eaton, a well-known automotive supplier, and Spirit AeroSystems — the Wichita-based company that’s the world’s largest manufacturer of aerospace components for companies like Boeing. Then COVID-19 hit. With the pandemic draining finances, some companies have put the brakes on developing aerial taxis. ASX, however, has cash on hand to refine its aircraft, called MOBi-ONE, for the foreseeable future. Americans, it’s often said, have surprisingly short memories, and it’s quite possible that such virus-related setbacks could be temporary,

especially considering the country’s inherent love of travel. Even then, skeptics question just how soon air taxi services could take to the air. Slovakia’s AeroMobil has repeatedly set back its first delivery date, as have other startups. And ASX’s Rimanelli doesn’t see getting anything airborne and certified by the FAA for commercial flight until 2023 at the earliest. He adds the regulatory agency has been highly supportive of integrating aerial taxis into the national airspace. Gavin Brown, executive director of the Michigan Aerospace Manufacturers Association in Sterling Heights, is among the skeptics. He sees the financial strains coming out of the coronavirus pandemic as raising potentially insurmountable challenges for aerial taxis. With advances in communication systems like 5G and GPS, he “could see prototypes” in the next few years going through limited flight testing, “but any commercial operation is years away. It’s not going to happen until 2026 or beyond … and more likely 10 years out.” That said, even skeptics admit there’s an unmistakable lure to the idea of adding the third dimension to urban and suburban travel, especially as roads in the U.S. and abroad become increasingly crowded. With a wing and a prayer, perhaps, the era of the aerial taxi car, cargo hauler, and emergency response vehicle is finally approaching.

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Perspectives || Robotics

ROBOT WEAR

A new wave of wearable robotics boosts worker safety, augments heavy lifting, and lessens the impact of repetitive motions at construction sites, industrial plants, and manufacturing operations.

emember back belts, those wide, waist-circling lumbar supports that some big box retailers made their workers wear to protect their backs? At times, you’d see one dangling by its straps from a wearer’s shoulders, the belt portion unfastened, circling nothing. They were marketed as a solution to the problem of back injuries caused at worksites, but they failed to reach widespread use. Their initial limited rollout isn’t far from the minds of those intent on creating technology that’s truly helpful to workers doing heavy jobs. Mostly, they think about providing wearable robotics that take on some of the body’s muscle work as well as add sensors, electronics, and data-storage technologies to monitor and potentially boost user health. The manufacturing industry, especially global vehicle producers, is all in on developing and using these new wearables. They protect workers, boost morale, lower fatigue, reduce labor and insurance costs, and extend what some liken to superhero powers. What, exactly, is a wearable robot? They have different names — bionic robots, bot-ware, exoskeletons — but they all utilize robotics to enhance human movements and track physical and mechanical data. Ever-improving sensor technology and battery life — along with advancements in cloud speed, AI, microstructures, and hydraulics — boosts safety, efficiency, and output, in addition to prolonging careers and 34 DBUSINESS || JULY - AUGUST 2020

CAREER UPLIFT Ford Motor Co. in Dearborn is testing the use of the EksoVest, shown above, at 15 of its manufacturing plants. The goal of improving worker safety has already been met as the automaker reports workplace injuries dropped 83 percent during a recent trial period. The EksoVest supports the arms of workers who make multiple overhead movements on assembly lines.

enhancing a worker’s quality of life. According to researchandmarkets.com, wearable robots and exoskeletons support manual labor tasks at construction sites, on factory floors, and at warehouse and logistical operations, shipping depots, and infrastructure projects. Exoskeletons also improve health care outcomes from surgery or accidents. For example, Ford Motor Co. in Dearborn set up an extensive beta program to roll out the use of exoskeletons. Based on its success, the company adopted the EksoVest (an exoskeleton that elevates and supports the arms of workers performing repeated overhead tasks) at 15 of its plants. EksoVests reduced workplace injuries by 83 percent during the course of the trial period. In 2018, LG Corp. launched an exoskeleton, CLOi SuitBot, to help workers take the load off their legs. With its onboard AI tracking system, the bot-ware learns, adapts, and advances a user’s movements. It also continuously improves power efficiency.

EKSO BIONICS

BY ILENE WOLFF

Robotics || Perspectives

GENERAL MOTORS CO.

“INDUSTRIAL EXOSKELETONS ARE REALLY TAKING OFF. THAT’S A REALLY BIG MARKETPLACE IN TERMS OF WORKER WELLNESS.” — DR. TOM SUGAR

In the medical field, wearable robots and exoskeletons are used to assist in personal mobility. They encourage upright walking and relearning of lost functions for stroke patients and people who are paralyzed. Exoskeletons also can deliver high-quality rehabilitation outcomes. Today’s designers and developers are partnering with the United Automobile Workers, the Aerospace and Agricultural Implement Workers of America, and other unions, along with scientists, researchers, and biomechanical experts on desired needs and outcomes. By mitigating risks, workers’ comp issues fall. “This is unique to anything we’ve ever tried before, to put something onto operators,” says Stephen Krajcarski, senior manager of manufacturing ergonomics and human virtual simulation at General Motors Co.’s Warren Technical Center. “There’s no playbook to it.” GM’s Orion Assembly Plant serves as the automaker’s central testing site, and pilot tests are being conducted at all its assembly plants in the United States and Canada. The technology includes passive exoskeletons; a powered, grip-assist glove; and other systems. GM is in the first wave of wearable robotics, along with BMW, Boeing, Comau, Ford, a Detroit startup named Guardhat in downtown Detroit, Hyundai, and Toyota, among others. “Industrial exoskeletons are really taking off,” says Dr. Tom Sugar, director of science and technology for the Wearable Robotics Association and professor of engineering at Arizona State University. “That’s a really big marketplace in terms of worker wellness.” In what may have been a watershed moment for the use of wearable robotics in manufacturing, in 2018 Toyota designated an upper-body exoskeleton as personal protection equipment for welders at its Woodstock, Ontario, plant. The mandatory exoskeleton policy is similar to the way goggles, steeltoed boots, and ear plugs came to be universally required. Why now? The use of back belts, failure that it was, may have helped pave the way for other wearables by getting workers doing heavy jobs used to the idea of strapping on something that will help them do their work while relieving or preventing wear and tear on their bodies. Industry analysts see wearables as a way to get more years out of an older, experienced workforce at a time when there’s a shortage of younger workers coming into the business. That’s important because from 2015 to 2025, “nearly 3.5 million manufacturing jobs likely will need to be filled and the skills gap is expected to result in 2 million of those jobs going unfilled,” according to a report by the Manufacturing Institute and Deloitte. “Industry is just saying we’re creating devices that allow you to do the job you’ve been doing, but with less fatigue and less effort,” Sugar says. “That can translate into less health problems, pain, and time off work.” For employees, overexertion while lifting, pushing, turning, holding, carrying, throwing, and making repetitive motions is the top cause of workplace injuries resulting in lost workdays, at 33.5 percent. Manufacturing is the No. 3 industry for injuries that keep workers away from their jobs, according to the National Safety Council. Worker injuries affect a company’s bottom line, too. Overexertion from tasks including lifting, pushing, pulling, holding, carrying, or throwing objects costs businesses $13.1 billion in annual direct costs, and accounts for 23.2 percent of the overall national burden, according to the 2019 Liberty Mutual Workplace Injury Index. Another phenomenon facilitating the modern use of wearable robotics is the proliferation of wearables in society. People today have gotten used to seeing (or being) an augmented human with devices such as Bluetooth

earbuds, Fitbits, and Apple watches. This may make it easier to accept the devices in the workplace. The development of wearables has accelerated among the armed forces, too. Wider development of exoskeletons grew from the military’s desire for technologies to prevent and reduce musculoskeletal injuries in soldiers on patrol, whose gear and equipment can exceed 100 pounds. Started in 2011 and since expanded, the Defense Agency Research Projects Agency’s Warrior Web program sought a lightweight, conformal under-suit that could be worn to protect against chronic or acute injuries. In the same year Warrior Web started, Ford was experimenting with various technologies to augment its workers’ shoulder muscles. This physically complex area is subject to heavy use in daily tasks and can take a lot to fix when something goes wrong. Seeking to limit the number of shoulder injuries, Ford decided to focus on technology that aided overhead work while a vehicle is being produced on an assembly line. Performing overhead tasks, which involves using a tool such as a right-angle nut runner that can weigh up to 13 pounds, calls on the shoulders and arms to work extremely hard for a sustained period. It’s the kind of job that’s highly correlated with injury. The company tried spring-loaded technology that could hold the nut runner and essentially render it weightless for the operator using it, but the dangers of zero-G tools floating around amid factory workers put the kibosh on that effort.

POWER FIST To enhance an assembly worker’s grip and hand strength, as well as boost safety, General Motors helped develop the Ironhand (formerly RoboGlove),

JULY - AUGUST 2020 || DBUSINESS.COM 35

Perspectives || Robotics

“PARTICIPANTS REPORTED A SUBSTANTIAL DECREASE IN WORK-RELATED DISCOMFORT AFTER THREE MONTHS OF REGULAR ARMSUPPORT EXOSKELETON USE ...” — MARTY SMETS

36 DBUSINESS || JULY - AUGUST 2020

ROBO FRIEND The EksoVest being tested by Ford production workers is adjustable, and can provide between five pounds and 15 pounds of lift assistance per arm.

But, he adds, the automaker is not tracking a worker’s location with the technology. Petter Bäckgren, CEO of Bioservo, says the IoT connection allows the company to digitally assess working environments to identify critical tasks where ergonomic risk is high. This allows for countermeasures that can reduce risk and prevent injury. His talk of risk-reduction and data-collection brings to mind insurance coverage and workers’ compensation. None of the companies developing wearables brought up insurance and reducing costs of premiums and claims, but it’s always a factor for the bottom line. “The insurance industry generally supports anything that reduces risk, which reduces injuries, which reduces payments,” says Charlie Sidoti, executive director of the nonprofit Innovation Underwriters in Boston, of the chain reaction possible when wearable robotics change how work is performed. “Two things of interest to the industry are if and how they will mitigate the frequency of claims and the severity and cost of the injuries going forward. It’s also skeptical of the extent that these will happen without data.”

FROM LEFT TO RIGHT: EKSO BIONICS; GUARDHAT INC.

Ford trialed various shoulder wearables, but it soon focused on the EksoVest from Ekso Bionics, a California-based robotics company. Ford started a longitudinal study on the EksoVest in all of its plants in North America with Virginia Tech in 2017. This is where the company’s partnership with the union helped. “The first thing an operator would suspect if we didn’t have a better relationship and apply this in partnership with the UAW would be, ‘What are you going to do, give me more work?’ ” says Marty Smets, a technical expert in human systems and virtual manufacturing at Ford’s Advanced Manufacturing Center in Redford Township. “So, we aligned goals with the UAW and made sure they understood that the exoskeleton is designed to reduce fatigue — and it’s fatigue that leads to injuries.” During an 18-month trial of the EksoVest, Ford teams fanned out to the factories to do surveys and gather subjective feedback. Last November, experts in biomechanics and mechanical engineering at Virginia Tech started doing the kind of lab tests that can’t be done on a plant floor. The results of a small field trial are in, and they look encouraging. “Participants reported a substantial decrease in work-related discomfort after three months of regular arm-support exoskeleton use, with the shoulders, arms, and neck indicated as the areas of greatest improvement,” Smets wrote in results published in March 2019. Full results from 80 control subjects and 40 EksoVest participants are expected later this year. Ford isn’t alone in its development of a passive exoskeleton to augment the shoulders. Comau, the Italian industrial automation company owned by FCA that has operations in Novi, Royal Oak, and Southfield, markets a passive exoskeleton that also supplements the shoulder area. “For us, automation doesn’t always equal robots,” says Mark Anderson, head of robotics and automation products at Comau North America in Southfield. Comau’s MATE, an acronym for Muscular Aiding Tech Exoskeleton, transfers about 30 percent of the muscular burden from the shoulders to the pelvis, and it adjusts to offer seven levels of assistance. Hundreds of the ninepound, $5,700 devices are in use in Europe and the Asia Pacific region, including at FCA plants, Anderson says. General Motors’ technology is the Ironhand, initially called the RoboGlove, which differs from the EksoVest and MATE in that it’s powered by a battery and is meant to assist a wearer’s grip. The device’s initial name may be a throwback to the Robonaut, a humanoid robot developed by GM and others. The “hand” part of the robot proved to be highly dexterous and led to Ironhand’s development. The powered glove enhances a wearer’s hand strength and grip through sensors, actuators, and tendons that are comparable to the nerves, muscles, and tendons in a human hand. The glove and its battery, which is worn in a backpack, weigh 5.5 pounds. The $9,250 Ironhand was developed in conjunction with Bioservo Technologies, a Swedish soft bionics firm. The device lets the wearer repeat or maintain his or her grip without using as much force by adding up to 10 pounds of grip force. The extra power helps during the repetitive motions of operating a rivet gun or a drill driver. Ironhand can also assist with sustained holding, such as gripping a bundle of wires while assembling a vehicle. “One operator said, ‘I usually have to take a Motrin at lunch to make it through my shift and today I didn’t have to,’ ” says Dan Flores, GM’s senior communications manager, about the reduced strain on the worker’s body due to Ironhand. One feature of Ironhand that could complicate its use at GM and elsewhere is the glove’s connection to the Internet of Things. “When you talk about (connected) wearables, there’s sensitivity to tracking and monitoring employees on the plant floor,” Krajcarski says.

Robotics || Perspectives

DIGITAL SAFETY

EVEN IN BUSINESS, DIRECTION CAN COME FROM A HIGHER POWER. THAT’S WHAT Saikat Dey, co-founder and CEO of Detroit-based Guardhat, says happened to him six years ago when he was CEO of another company, steelmaker Severstal North America. As the leader of the former Ford steelworks operation in Dearborn now owned by Cleveland-Cliffs Inc., Dey had been searching for technology that offered additional worker safety. If something went wrong, he wanted a tech solution that would facilitate communications and give colleagues critical details such as a worker’s location in real time — like OnStar, but for industry. “When we started looking for it, we thought, this is something so obvious that somebody must have built something,” Dey says, freely admitting his naiveté. Actually, there was nothing in the marketplace — something wearable, like a connected hard hat that would quickly alert on-site management when a worker was in danger from an accident, a medical emergency, or failure to maintain social distancing prompted by the coronavirus pandemic. Then, in a terrible irony, two days before Severstal was sold to a competitor in September 2014, a worker died at the plant. An autopsy later revealed the man suffered a heart attack, but no one knew at first. The worker had a two-way radio on him when he died, but its batteries were dead. “So that was a completely avoidable fatality,” Dey says. “We could have intervened to save a life, but we couldn’t because we didn’t have the right communications structure.” Since no one else had created communications technology to use in potentially dangerous work settings, Dey decided he would do it. He scrapped plans for another position he had lined up, recruited three of his colleagues from Severstal, along with a friend from middle school, and together they established Guardhat in late 2014. “I don’t know if you believe in spirituality, but I do,” Dey says. “Sometimes you just get a sign from somewhere, and I thought that was my sign.” Today, Guardhat develops connected wearables, along with the infrastructure and software platform, to offer greater worksite safety. The company has the financial backing of Dan Gilbert’s Detroit Venture Partners, along with Fortune 100 companies like 3M and Caterpillar, as well as Silicon Valley

TOP OF MIND Guardhat in downtown Detroit developed a connected hard hat to boost worker safety. It also debuted an Android app for Guardhat that provides real-time proximity alerts.

entrepreneur Steve Case, co-founder of AOL, and Silicon Valley Bank. Commercialization partners include DuPont Sustainable Solutions, Hewlett Packard Enterprise, and Qualcomm Technologies. Guardhat is collaborating with the IBM Watson Internet of Things, too. Unit sales of its IoT-connected, Made-in-America hard hats are expected to scale up to 10,000 units this year, an increase from less than 1,000 in 2019, Dey says. There are two versions of the hat, differentiated by the addition of a camera in one model. Both monitor battery life, temperature, noise, humidity, and pressure, and can detect falls and enable two-way communication. The company also offers what it calls the “Atlas personal tag,” whose initial users in the United States are construction workers at the former Hudson’s site in downtown Detroit, located along Woodward Avenue near Guardhat’s offices. Due to COVID-19, Guardhat recently built a social distancing solution into the tag, which helps workers maintain the recommended 6 feet of distance from others. It continuously detects proximity to other tags and generates audio, haptic, and visual alerts when another tag comes within the recommended distance. The alerts stop when a safe distance is re-established. In early May, working with Atlanta-based startup FireHUD Inc., Guardhat debuted the FireHUD BioTrac Platform, a real-time monitoring system that tracks the physiology of individuals through an arm-worn device. The device measures biometrics such as heart rate, core body temperature, exertion, distance traveled, and calories burned, to provide a personalized profile for predicting exertion levels. Dey says Guardhat helps answer three questions: Where is my worker? Can I understand the environment and conditions he or she is in? Can I communicate with them? The company’s software platform, Kyra, and its human-machine interface support Guardhat, Atlas, and other third-party wearables that are capable of an IoT connection. That means the human grip-augmenting device Ironhand, developed in part by GM, could be connected to Kyra. “As long as it has wireless connectivity, we’ll read it and warn the worker” when there’s a problem, Dey says. Ultimately, Guardhat wants to be known as the vanguard last-mile connectivity platform that links workers to online safety systems, like the way “Kleenex” is commonly used for tissue and “Xerox” is synonymous with copy machines. “I think we’re making a category of our own,” Dey says. — Ilene Wolff JULY - AUGUST 2020 || DBUSINESS.COM 37

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ER MBA AND PREVIOUS EXPERIENCE PREPARED DR. BETTY CHU TO lead the incident command structure at Henry Ford Health System in Detroit during the first wave of the coronavirus pandemic. So did 20 years of delivering babies. “I always laugh because people say, Oh, you have a very relaxing voice, and I say, I’ve been an obstetrician for a long time, and you can’t be overexcitable when you’re trying to get a woman to push for over four hours,” Chu says. “You have to have sort of a You’re going to do it (demeanor), even if you’re not sure what the outcome is going to be. You have to make them believe.” That intangible skill Chu developed during her years in labor and delivery, which is no longer part of her patient practice, is a powerful one for leading in a disaster. “I think a critical element to success in any crisis is effective communication — not only communicating what needs to be done, but communicating hope, reassurance, and (the confidence that) we’ve got your back,” she says. By the end of May, the coronavirus wave was waning, but Henry Ford’s incident command structure — a first for the entire health system — was ongoing. Chu and her team were solving new problems in a re-entry phase as, for example, more elective surgeries were scheduled, and visitors walked through the doors of the system’s six hospitals and more than 200 ambulatory centers. Chu led the team because of her day job as associate chief clinical officer and chief quality officer, which includes oversight of safety and infection control. When the pandemic hit, she and other leaders formed the incident command. Traditionally the structure brings decision-makers into one room, but it can operate virtually. Either way, it’s an agile and quick way to solve problems. “It’s an efficient way to make decisions (and it’s) very objective-focused,” Chu says. “Historically, a company might take a little while through a project management process to come to a decision through a committee structure. As you can imagine, in a crisis you don’t have the luxury of that kind of time. The incident command structure really brings everything underneath the rubric that focuses on the primary goal of (keeping people safe)” During the first wave of the pandemic, the hospitals and ambulatory centers focused on their needs for the next 12 hours to 24 hours, shifting resources that were abundant in one location to places that were short. Resources could include supplies, equipment, and even people. One critical need was for intensive care unit nurses, but not because they were getting sick. Rather, if a nurse was exposed to the virus, she or he had to quarantine for two weeks. As a result, the incident command had to create an ad hoc centralized staffing supply model. Before the pandemic, Chu had experience leading an incident command after a 2017 water main break near Henry Ford West Bloomfield Hospital cut off a vital resource. She was chief medical officer there before being promoted to her current systemwide position, which fit neatly into her career paradigm. “I’ve always felt that my purpose in life is to use my skills to serve the most amount of people,” she says, “so I’ve been drawn to opportunities where, if that role has the ability to influence or help more people than my prior role, then I view (the new role) as my obligation.” Chu, who grew up in Rochester with a mother who was a nurse and a father who was an engineer, earned her medical and business degrees at the University of Michigan in Ann Arbor. “We’re sort of the typical story of people who live in southeast Michigan,” she says. — Ilene Wolff

Chu Dr.

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Joy

PRESIDENT, LINCOLN MOTOR CO.; CHIEF MARKETING OFFICER, FORD, DEARBORN GLOBAL EMPLOYEES: 188,000 • REVENUE: $155.9B

OY FALOTICO GREW UP IN A FORD FAMILY NEAR RURAL CLARENCE, MO., SOME 140 MILES NORTHwest of St. Louis. Her father drove Ford trucks, her mother Fords and Lincolns, and her sister tooled around in sporty Mustangs. Yet it never occurred to her then that she might someday work for Ford. Staying close to home, she earned an undergraduate degree in business administration from Truman State University in 1989. At the time, though, there weren’t a lot of opportunities for new college grads. “I remember looking at job cards on a notice board and a colleague pulled one off the board for a job at Ford and said, ‘This is something you should look into,’ ” she recalls. “I did pursue that, and also an opportunity at GE, and got offers from both. The GE job was more senior, so I went back and forth on which was the best decision. I ultimately went with Ford because I identified with, and felt most comfortable about, the people I would be working with.” Falotico started as a customer service representative at Ford Motor Credit, working on finance underwriting for retail customers and dealers. At the same time, she attended evening and weekend classes and earned an MBA in business finance from Chicago’s DePaul University in 1995. At Ford, she progressed through increasingly senior positions, including a move to London to lead operations for Ford Credit Europe, and rose to executive vice president, Ford Credit America, overseeing sales, marketing, and strategic planning. From there, she took on business operations for North and South America in 2013, added global strategic planning in 2015, then became COO. In 2016, Falotico was named chairman and CEO of Ford Motor Credit. She became a Ford group vice president in 2016, and in 2018 was appointed president of the Lincoln Motor Co., where she was in charge of the luxury brand’s global product development, marketing, and sales and service. At the same time, she was appointed chief marketing officer at Ford, reporting to COO Jim Farley. Asked to describe her leadership style, Falotico says she’s driven, but fair and collaborative. “I’m one of those people who likes to roll up my sleeves and get into the details, but in this job I have to step back and leave things to the team. I’m fortunate to have great teams at Lincoln and in the marketing role,” she says. Her teams include engineers, product planners, and dealer product committees. “I’m not going to add a lot to the engineering perspective,” she admits, “but I’ve been driving the products for 30-some years. I bring in the customer lens.” What advice does she offer to women in business, and the auto industry in particular? “First, take charge of your career and be open to taking on difficult jobs. I’ve gained some of my best knowledge and experience by taking on jobs that were out of my comfort zone, so I think keeping an open mind to that can really help accelerate your career. “Second, balance your emotional resilience and emotional intelligence. It’s very tough, the days are long, (and) the work is complex. We have to be resilient and power through. But the other side is emotional intelligence. For me, it’s awareness of my leadership shadow, how I can best support my team while keeping our difficult work environment positive. “The last thing is that I prefer people to be leaders at all levels. The advice that I got in my career was to think two levels above myself. While still in lower levels, I was encouraged to watch people two levels ahead, what they do, and why they do it, and that was great advice.” — Gary Witzenburg

JULY - AUGUST 2020 || DBUSINESS.COM 41

Feature || Powered by Women

Grant Susan

CHIEF NURSING OFFICER • BEAUMONT HEALTH, SOUTHFIELD EMPLOYEES: 38,000 • REVENUE: $4.7B

ONG BEFORE THE CORONAVIRUS PANDEMIC, SUSAN Grant walked through health care fire. Grant, who has been Beaumont Health’s executive vice president and chief nursing officer since 2015, filled the same role at Emory Healthcare in Atlanta in 2014, when the system admitted the United States’ first four Ebola patients. “The Ebola situation was very intense and similar to COVID-19 in that way, but it was very controlled,” Grant recalls. “We knew when those patients were coming to us. We had prepared for those specific types of pathogens and we had a team that had (been) trained. COVID-19 was not controlled and planned. It happened very quickly. The surge of those patients coming into our hospitals was intense, it was very rapid, and it wasn’t controlled at all.” Twenty years before Ebola, in 1994, Grant was chief of nursing and patient care services at the Dana-Farber Cancer Institute in Boston when two patients participating in a chemotherapy clinical trial were accidentally given overdoses of two medications. One died soon after. The other had heart damage as a result and died of cancer in 1997. “It was a tragic, tragic event and really changed everything for me,” Grant says. For one, she was asked to serve as interim director of nursing. “I felt an obligation to improve things as a result of those overdoses, so I stepped into the job,” she says. She didn’t step out for five years. There were to be more changes, including an examination of mistakes in the health care industry and the way the medical sector defines the clinical team throughout an organization. The incident inflamed Grant’s passion for patient and family-centered care. As it turned out, the patient who had heart damage was the health reporter for The Boston Globe and, tragically, she was rebuffed when she questioned her intense negative reaction to the incorrect chemotherapy dose.

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The Institute of Medicine included the patients’ stories in a landmark report in 2000, “To Err is Human,” that brought attention to medical mistakes. A subsequent report the next year, “Crossing the Quality Chasm,” included the tenet that the patient should be in control. “It really was the error heard around the world in many ways,” Grant says. Grant’s trials as a leader with both Ebola and the chemotherapy overdoses made her uniquely experienced to lead the incident command center at Beaumont Health in Southfield during the coronavirus pandemic surge, when leaders from across the system worked “seven-day-a-week, 18- and sometimes 20-hour days,” she says. Compounding the pressure was a global shortage of personal protective equipment for health care workers — Beaumont had a ready supply, Grant says — and recent efforts to unionize among nurses. Grant is on record as saying the best way forward is for nurses and leadership to work together directly, but any nurse has the right to union representation

if he or she wishes. As the days of the surge wore on, Beaumont’s leadership team responded to staff concerns about the number of visitors on patient care floors by screening and limiting the number of visitors. When N95 masks from different manufacturers were found to fit differently, and required fit testing, leadership granted staff’s request that the supply of the respirators going to one site be produced by a sole manufacturer whenever possible. Even though workers had the PPE they needed, when they voiced concerns about their personal clothing, leadership opened the storeroom to the system’s supply of scrubs. Although Beaumont’s infection control team said there were no worries if personal clothing was covered by PPE, wearing the Beaumont scrubs while on duty was one less thing they had to worry about, Grant says. “I really believe the best decisions are made when you hear from the experts,” she says. “And our experts are our front line.” — Ilene Wolff

House Adams

HEAD OF ALL BRANDS LICENSING AND MERCHANDISING FIAT CHRYSLER AUTOMOBILES, AUBURN HILLS • EMPLOYEES: 191,752 • REVENUE: $118.5B

OR KIM ADAMS HOUSE, HEAD OF ALL BRANDS LICENSING AND MARKETING for Fiat Chrysler Automobiles in Auburn Hills, her career is all about “the climb.” Every experience, every success and failure, what she’s learned in school and on the job, and who she’s met and learned from has influenced who she is today and what she has accomplished. “I’ve enjoyed the climb, although at times it can be rigorous and sometimes daunting, but it’s vitally important to find value in that climb,” House says. “There are so many important lessons that you learn about yourself in this process that really help you in your career.” The native Detroiter started her climb at Immaculata High School, a former all-girls Catholic school on the city’s northwest side, before enrolling at the University of Michigan in Ann Arbor where she earned a bachelor’s degree in psychology. From there she traveled to George Washington University in Washington, D.C., where she earned an MBA in finance while taking as many marketing classes as she could squeeze into her schedule. She interned at the U.S. Office of Management and Budget and worked at a nonprofit before moving back to Detroit and joining General Motors Co. as a finance and budget analyst. She later moved into business planning and sales and marketing. House joined what was DaimlerChrysler AG in 1999 as brand manager for the Jeep Wrangler, starting a more than two-decade association with the Jeep brand. “When I was at GM and looking for a change, Chrysler appealed to me because of (their) innovative designs,” House recalls. “Chrysler was the smallest of the Big Three at the time but there was a certain fearlessness, innovation, and risk-taking that I was drawn to.” During her 21 years at Chrysler, DaimlerChrysler, and now Fiat Chrysler Automobiles, House served in several positions of increasing responsibility including product manager for Jeep Commander, brand manager for Jeep Liberty, manager of Chrysler brand communications, senior manager of Chrysler and Jeep brand communications, and head of Jeep advertising, before assuming her current role. As head of Jeep advertising between 2009 and 2018, House directed the strategy and creative direction for the brand’s advertising campaigns, including the 2018 reveal of the Jeep Gladiator. She led the efforts behind the Jeep brand’s award-winning commercial “Portraits,” which received the 2016 Super Clio Award for Best Super Bowl Ad in addition to being named Adweek’s No. 1 Super Bowl commercial. “Portraits” also was the top automotive spot in the 2016 YouTube AdBlitz poll. Now, as head of licensing and marketing for all of FCA’s brands, House leads multiple agencies to protect and grow each of the automaker’s brands. It’s a business that generates $1 billion in sales in more than 100 countries. “The intention of the licensing program that I oversee is to build aspiration and introduce consumers more broadly to our individual vehicle brands,” she explains, “but first we have to make sure we’re authentically true to core brand DNA and understand the mindset of who that customer is and what draws them in.” House credits FCA CEO Mike Manley and Olivier Francois, chief marketing officer, for helping her. “Working with the two of them is the most rewarding thing I’ve been able to do in my career,” she says. Balancing work life and home life is an important factor for a woman in the workforce. House says she was able to reduce her work hours when her two sons were younger, although she notes that she was extra diligent about getting her work completed on time during that period. “I knew it was a risk, stepping back a little bit, but ultimately it became a reward for more reasons than I can imagine,” House says. “While I was able to be around for my sons during those formative years, I was also offered promotion opportunities. That’s one part of one’s career that has to be meticulously navigated.” What advice does she have for other women entering the business world? “Develop the patience that you’ll need for the climb,” she says. “Dare to be different. Be disruptive. Focus on unique ways to approach the business. Recognize that failure isn’t a foe. It can be your friend because it teaches you resiliency, which gives you the ability to trip, stumble and fall, and get back up to recover. It’s all part of the climb.” — Tim Keenan

HE FAMILY DEAL IS MORE THAN A MARKETING SLOGAN FOR KELLEY LAFONTAINE and the LaFontaine Automotive Group. It’s the way the automotive dealership group does business. “One of the things we promised our parents was that we’d never lose our way and forget that we’re a family business,” says LaFontaine, recalling what she and her brother, Ryan, told their father, Michael, and mother, Maureen, when they took over the Highland Township-based dealership group. “Our mission statement says we’re dedicated to building relationships that connect families, strengthen the community, and personalize the automotive industry. And really, that’s what we are.” As vice president of the dealership group, LaFontaine and her brother run the operation. Her father, the founder of the business, today acts as an adviser and works on special projects. Her mother, a key member of the management team and a business mentor, passed away last October. “Ryan and I basically run the organization day to day, we do operation reviews with our leadership teams, financial reviews, explore acquisitions, and make sure we have the best marketing,” she says. “My dad stays active and we’re fortunate to have his guidance.” Last year, the LaFontaine Automotive Group, which has 17 Michigan retail locations selling 36 brands, sold 33,000 new and used vehicles. The group also has seven body shops and an 86,000-square-foot parts distribution warehouse. In addition, there’s LaFontaine Global Vehicles, which specializes in analyzing the daily, weekly, monthly, and annual vehicle supply flow to the auto industry. Other divisions include LaFontaine Classic Cars and the LaFontaine Heritage Collection. LaFontaine grew up in Highland, went to grade school and high school at Our Lady of the Lakes, then graduated from Northwood University in Midland with a degree in automotive marketing. She also graduated from the National Automobile Dealers Association (NADA) Dealer Academy, a program that combines classroom learning with hands-on, in-store work experience in each dealership department. “I was very fortunate to have that experience, then I had tutelage from my mother and father,” LaFontaine says. “My dad was very much all business — sell, sell, sell. My mom got into the business later and focused on the import brands, and fostered relationships within the community.” After Kelley had her third child, she took some time off from the dayto-day operations to raise her family, but she remained involved in the community by attending charity events and participating in philanthropic endeavors. This philosophy of taking care of one’s family extends to LaFontaine’s employees. “We believe in family first,” she says. “My brother and I worked with my parents every single day. Our employees can always take care of their families first. Work will always be here and we’ll support them.” LaFontaine also is a proponent of helping employees grow professionally. “We believe in empowering our people and growing our people,” she says. “There’s a career path. We believe our success is only as good as our people, and we live it every single day. We look at how we strengthen, grow from within, and give people a chance to rise.” She’s particularly pleased with the group’s record of hiring and promoting women. “I’m proud that we employ over 500 women in our organization, many of them in leadership roles,” she says. “I inspire and nurture and cultivate that as much as I can. Only 20 percent of the people in the (overall) retail channel are women. Women have to realize that there’s so much more to working in automotive than selling and working on cars.” Her passion for lifelong learning was shaped by her early experiences in the automotive world. She was one of just three women in her 1996 Northwood graduating class. “I was fortunate that I had my mom, who was a true pioneer, and she got me involved with the Automotive Women’s Alliance Foundation, along with (the late Ford dealer) Irma Elder. Going to functions and hearing their stories was really helpful.” LaFontaine also is passionate about her work with area nonprofits, including the one she and her brother established in 2016, the UCAN-CERVIVE Foundation, which provides funding for cancer research. Another prestigious honor — Dealership of the Year — has been awarded to LaFontaine Cadillac Buick GMC of Highland for eight years running. which she credits to her family’s willingness to embrace change. “Whatever comes, we’re willing to try it and navigate through it,” she says. — Tim Keenan

Kelley

VICE PRESIDENT • LAFONTAINE AUTOMOTIVE GROUP, HIGHLAND TOWNSHIP EMPLOYEES: 1,560 • REVENUE: $1.3B

Dr. PRESIDENT • OAKLAND UNIVERSITY, ROCHESTER HILLS • EMPLOYEES: 2,677 • BUDGET: $330M

HE SAME DESIRE TO MAKE A DIFFERENCE AND IMPROVE THE WORLD THAT DROVE DR. ORA Hirsch Pescovitz to pediatric medicine also inspired her to transition to academic administration and, ultimately, the presidency of Oakland University in Rochester Hills. “I spent the majority of my career in academic medicine,” Pescovitz says. “I thought it would be a natural extension to go into education, because I always wanted to see how I could make a difference on the educational process. “A place like Oakland University is the kind of institution where I felt I could have the opportunity to make a difference. Part of the reason is that one-third of our student population is first-generation college students. More than a third of them are Pell students, and they have this enormous opportunity for upward mobility.” She became president of OU in 2017 after a distinguished career as a health care executive, pediatric endocrinologist, and researcher with more than 190 published papers and books. Much of her work focused on the physiologic and molecular mechanisms responsible for disorders of growth and puberty, and the development of new therapies for these conditions. From 2009-2014, she became the first female executive vice president for Medical Affairs and the Health System CEO at the University of Michigan in Ann Arbor. During that time, she led a system that included three hospitals, more than 120 health centers and clinics, and the University of Michigan Medical School. Prior to that, she spent 21 years at Indiana University, where she served as executive associate dean for research affairs at the Indiana University School of Medicine, president and CEO of Riley Hospital for Children, and interim vice president for research administration at Indiana University. Just before coming to Oakland University, from 20142017, Pescovitz was senior vice president and U.S. medical leader at Eli Lilly Biomedicines. “I never looked at a job from the perspective of being a female,” says Pescovitz, one of 12 women in her 1978

medical school class of 60 at Northwestern University. “When I took certain leadership positions throughout my career, I was often the only woman in the room, but I never really realized that that was the case. I never spent a lot of time obsessing about it.” Pescovitz admits she has faced hurdles and was denied a few positions throughout her career, but she never thought it was because of her gender. “Every time I faced an obstacle, I just barged ahead,” she recalls. “I did have a lot of failures and disappointments, but every time that happened and I didn’t accomplish something, I didn’t think it was sexism. When I look back on it now, it probably was, but I didn’t attribute it to that at the time. I just thought of it as bad luck, or maybe I wasn’t deserving or good enough. “I never felt I was mistreated, ever, even though I probably was. If someone didn’t want to give me something, then I just went on to the next thing. I never carried a grudge and I think it served me well.” She credits her mentors for having faith in her abilities. “One mentor suggested I leave my husband to accept an offer at Harvard University when I couldn’t find a job where my husband was a transplant surgeon in Minnesota. I would never do that, but at least he had confidence that I had talent.” Currently Pescovitz serves on the boards of the Detroit Economic Club, Medical Main Street in Oakland County, and the Horizon League; is on the executive committee for the Michigan Association of State Universities; and is a trustee of the Citizens Research Council of Michigan. “My life story tells this: be resilient,” she says. “My whole life is about shooting for the stars, missing my first goal, and then landing on the moon and making the best of my second or third choice. Those moon landings are the things my life is defined by. You don’t tell anyone it was your second choice. You say you were aiming for a moon landing — and then you make (sure you’re) the best you can possibly be.” — Tim Keenan

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Feature || Powered by Women

Shank Suzanne

PRESIDENT • SHANK WILLIAMS CISNEROS & CO., DETROIT EMPLOYEES: 130 • REVENUE: NA

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HE CAREER OF SUZANNE SHANK ENDED UP BEING QUITE A BIT DIFFERENT THAN IT started. She went from a position as an engineer working on nuclear submarines to becoming a high-power investment banker, a profession she discovered while in graduate school. After completing a degree in civil engineering at the Georgia Institute of Technology in Atlanta, Shank landed a job with defense contractor General Dynamics, where she served as a structural engineer working on noise mitigation on Trident submarines. Two years later, she decided she needed an advanced degree to enhance her career. While at the Wharton School at the University of Pennsylvania, she discovered the world of finance. “A lot of my peers had worked on Wall Street prior to going to Wharton, so I decided to give it a shot,” says Shank, who spent a summer working at a small New York investment banking company called J.J. Lowery and Co. Upon graduation from Wharton, she eschewed offers from bigger companies, and opted to stay with Lowery. “I got direct client contact even in my summer there, and I felt like I’d get much more actual deal exposure and be able to see the whole process from beginning to end, as opposed to being a new employee at one of the bigger shops just doing a lot of grunt tasks,” she says. That was the last time Shank had to look for a job. The rest of her career unfolded as the result of offers from companies she interacted with in the industry, and being recruited by other smaller firms. “I liked the dynamics of smaller shops,” Shank says. “I didn’t like the big firm politics. I heard stories about all the internal fighting (at large companies). I couldn’t understand how they got any work done. At a boutique shop, the focus is on serving the client. I just found I was happiest in that kind of environment.” After working at two other smaller investment banking firms, she and a group of partners decided to start their own firm — Siebert Cisneros Shank & Co. — in 1996, with 35-year-old Shank at the helm. “It wasn’t a role to which I aspired,” Shank recalls. “It was my partners who suggested it, and I respected them. I figured why not bet on myself if others are willing to do so? So, I took just about everything in my savings at the time to invest in the firm.” Among the local projects Shank’s firm was involved with were the new Wayne County Jail, a refinancing for the Detroit Public Schools Community District, and Little Caesars Arena. Her bet paid off as the firm grew to become the first minority woman-owned business to rank within the top 10 of all U.S. municipal debt underwriters, and the first to lead a municipal underwriting deal worth more than $1 billion in principal amount. Last year, Shank’s firm, with its specialty in municipal deals, merged with Williams Capital Group, an expert in corporate deals, to form Shank Williams Cisneros and Co., with Shank as the largest equity owner and president. “The merger couldn’t have come at a better time,” Shank says. “We have a real diversity of revenue, which has been really critical to the financial security of our firm during the pandemic and the new environment. Corporate bond issuance has hit record levels and we’ve been able to benefit by being involved in a large number of those corporate bond transactions. The municipal market is expected to be pretty robust this year, and we’ve been very active in that space.” Recent deals Shank’s company has brokered include a $500-million transaction with the State of Connecticut and a $600 million deal with the New York City Water Authority, both as lead managing underwriters. Shank also is active in several industry and civic organizations and boards. She serves as a director of Pensare Acquisition Corp., CMS Energy Corp., and Consumers Energy Co. She’s on the boards of the Skillman Foundation, the Bipartisan Policy Center Executive Council on Infrastructure, the Detroit Institute of Arts, the Detroit Regional Chamber, and Global Citizen. She also is a member of the Wharton School’s Graduate Executive Board and Spelman College’s Board of Trustees, the International Women’s Forum, and the Securities and Exchange Commission’s Fixed Income Market Structure Advisory Committee. “Because I started as an adviser, which really assists the bond issuer — the cities and states — I think of working with clients as a long-term game and not a short-term game. Some people try to make as much money as they can on one deal. I get my foot in the door and try to figure out how to develop a long-lasting relationship. The vast majority of our clients have been repeat clients. We may be bigger than a boutique firm now, but that’s the culture I like to keep.” — Tim Keenan

Header || Feature

Suryadevara CHIEF FINANCIAL OFFICER

GENERAL MOTORS CO., DETROIT GLOBAL EMPLOYEES: 180,000

COURTESY GENERAL MOTORS CO.

REVENUE: $137.2B

HIVYA SURYADEVARA WASN’T LOOKING TO WORK IN THE AUTOMOTIVE industry. After completing three degrees at the University of Madras in her native India — bachelor’s and master’s in business, finance, and economics — plus completing work at The Institute of Chartered Accountants of India to become an associated chartered accountant, she landed a job at PwC. Seeking to advance her career, she came to the United States in 2001 and earned an MBA from Harvard University. From there, she took a job at UBS Investment Bank. Then General Motors came calling. “When the offer from GM presented itself, I was very much struck by the opportunity to be part of the (company’s) turnaround,” she recalls. “I've always been interested in business, and after coming (to America) and spending time in business school and investment banking, it became clear that I wanted to be in a complex business as a part of the execution, as opposed to advising corporations, which you do on the banking side. I was attracted to the kinds of experiences that I would get in this company and this industry.” Suryadevara joined GM in 2005 as a financial analyst trading foreign exchange and commodities. While there, she earned her fifth credential — a Chartered Financial Analyst (CFA) designation, one of the highest distinctions in the investment management profession. By 2013 she was CEO and chief investment officer for GM Asset Management, and in 2015 she was promoted to Corporate Finance vice president. In 2018, she was named to her current position as CFO of General Motors Co. Reflecting on her career, she says she appreciates “working with talented people who really want the company to succeed and are very excited about our products. … My background in business and economics, understanding how companies operate and how business models can be successful, plus my international experience, gave me firm grounding, and the company has given me opportunities, training, and experience to allow me to grow and finally sit in this chair today.” As a woman, has she found pursuing this career challenging, either here or in India? “It’s always been about merit more than gender,” she says. “Everyone I've worked for has challenged me and given me new roles and responsibilities. You have to have the right people and support system around you to be able to do your best, and I was fortunate to have that.” How would she characterize her leadership style? “I’m a big believer in putting the right people in the right roles,” Suryadevara asserts. “If you don't have that, you have to make changes. Then you empower (your team) to do their best. I’m not a micro-manager. I tend to let people do their jobs, then make sure that when we put everyone's individual efforts together, the whole is better than the sum of the parts.” Suryadevara credits her success to mentorships with notable leaders. “Throughout my career I’ve had people — both men and women — who have challenged me and offered me guidance, who have said, ‘You’re doing a great job, why not take this challenging assignment or project that will help you grow?’ People often assume that senior people are too busy to meet with them, so they don’t want to bother them, but it can be a very positive experience on both sides.” What advice does she offer women in business? “I tell people to have confidence and be authentic. Bring your own unique self to the table. You aren’t there to emulate others because you think that’s the right way to do the job. Don't be afraid to take a risk in your career and take on new responsibilities, especially if you aspire to senior management,” she says. “I think it’s hugely important to understand how the business works. Whether you're in engineering, manufacturing, IT, or any other area, it’s critically important to be well-rounded with strong business acumen, and to understand how the business works and what leads to success for the company. I recommend that people touch on different areas of the business to learn what makes it click. “There’s no time better than now to be in this business. Being in the forefront of technology in mobility, including electric and autonomous vehicles, is super exciting. If you would like to be in a highly complex, fast-changing, multidimensional business that’s on the cusp of enormous change, the auto industry is the right place for you.” — Gary Witzenburg

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Cover Story || Retail

Buy-In, Sellout When Art Van Furniture in Warren was sold to an East Coast equity firm in 2017, the new owners flipped the real estate, drained the talent, and cut back on a steady stream of popular commercials. How a $612-million retail powerhouse that took 58 years to build was destroyed in 36 months BY NORM SINCLAIR

EDITORâ&#x20AC;&#x2122;S NOTE On May 12, Dallas-based U.S. Assets Inc. and Loveâ&#x20AC;&#x2122;s Furniture Inc. announced they acquired the inventory and assets of 27 former Art Van Furniture, Levin Furniture, and Wolf Furniture stores in five states, 17 of which are in Michigan, according to a deal approved by the U.S. Bankruptcy Court. The stores are expected to reopen this summer.

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Retail || Cover Story

PHOTOGRAPHS COURTESY OF ART VAN FURNITURE INC.

ew of the thousands of loyal customers who, for more than six decades, flocked into Art Van stores around the state, had ever heard of Alan Sussman. Yet the longtime marketing and advertising executive from Southfield probably had as much to do with making Art Van a household name in Michigan as the late Art Van Elslander, the founder of the stores bearing his name. The Sussman Agency on Northwestern Highway churned out television and radio commercials hyping the latest Art Van sale — between 7,000 and 8,000, by Sussman’s count — making Art Van synonymous with affordable value, or, as Van Elslander was fond of saying about life’s altruisms: “Death, taxes, and Art Van’s on sale.” Apart from starring in commercials, the company patriarch shared the spotlight with the likes of supermodel Cindy Crawford and carried her line of furniture. He also was beloved as a major philanthropist and benefactor. For many years, Art Van Furniture was the title sponsor of America’s Thanksgiving Day Parade, produced by The Parade Company in Detroit. Scores of other charities benefited from major gifts and the annual Art Van Charity Challenge, including Gleaners Community Food Bank, Beaumont Children’s Hospital, the Leukemia Research Foundation, ACCESS, and the New Day Foundation for Families. Overall, Art Van, his company, and his employees helped more than 450 charities throughout the Midwest. As a 30-year friend of Van Elslander, Sussman was shocked, but not totally surprised, by the stunning demise of the Warren-based Art Van group of

DESIGN GROWTH Art Van Elslander, center, was a born salesman who thrived on developing the next big promotion. With Mike Billiet, operations manager, left, and Elslander’s son, Gary, who served as president, the retailer honed a succession of advertisements that drove home the fact that value and price were synonymous.

furniture and bedding stores. In March 2017, Thomas H. Lee Partners, a Boston-based equity firm, paid Van Elslander $612 million for the Art Van chain. Three years later, the company that Van Elslander started with one store in East Detroit (today Eastpointe), and nurtured for 58 years into a statewide phenomenon of more than 100 outlets along busy thoroughfares, landed in U.S. Federal Bankruptcy Court in Delaware. “These are the same kind of people that put Toys R Us out of business, and they sing out of that same hymnal — they come in, fire all the people running the company, load it up with debt, and sell the real estate,” Sussman says of the equity fund owners. “At the time (of the sale), Art was 86 years old, he wasn’t in good health, and that’s the reason he sold. I don’t think he realized what Thomas H. Lee Partners was about.” Days before the bankruptcy filing on March 8, going-out-of-business sales already were in full swing across metro Detroit. And almost as abruptly, the sales were halted, overcome by instore chaos and the COVID-19 outbreak. July - August 2020 || DBUSINESS.COM 49

Cover Story || Retail

Shoppers snarled parking lots, traffic backed up onto main streets, and skeleton sales staffs overwhelmed by the crush got relief only when police in several jurisdictions stepped in to declare the stores public hazards and ordered them closed. The COVID-19 outbreak was the last nail in the coffin. “They could have gone about the bankruptcy differently. I’ve never seen an announcement of a GOB (going out of business) sale before filing a bankruptcy,” says Van Conway, CEO of Van Conway and Partners, a Birmingham-based financial advisory firm that helped steer Detroit through its bankruptcy case in 2014. Conway says that, as a general rule, when a retailer gets into trouble onethird of its locations are making money, one-third are losing money, and one-third are breaking even. “Take the 50 stores or whatever the number is that make money and sell them, and then liquidate the rest or whatever you want to do,” Conway says. “But when you announce the GOB before the Chapter 11, you’ve basically gutted the 50 DBUSINESS || July - August 2020

MILES OF AISLES To speed customer orders, Art Van Furniture developed an automated warehouse next to its headquarters in Warren. Packed with $50 million in inventory, the company utilized a European-style robotic system to retrieve and replenish sofas, tables, cabinets, beds, and chairs.

good stores. I’m not saying they would have stayed in business, but if you went into Chapter 11 with a plan to close the losing stores and sell the profitable stores, you might have had 40 percent retention of stores and employees versus zero.” Conway says that unlike an individual owner, equity funds aren’t inclined to fight to save a business. “Typically, what I’ve found with private equity funds, when the deal goes south, they wash their hands and walk away and they don’t really care much,” he says. “They have these multibillion-dollar funds and they’re not emotionally invested.” Although industry insiders detected problems with Art Van earlier this year, it was still shocking news to customers and the general public when

Retail || Cover Story

company lawyers showed up in federal bankruptcy court in Wilmington, Del., to put the once-thriving company out of business. Initially, the Chapter 11 filing sought to establish an orderly liquidation process in which the stores would conduct going-out-of-business sales, but the process was convoluted. A month after the filing, on April 6, the company’s management team changed course, converted to Chapter 7 liquidation, and turned the business over to a court-appointed trustee. A lawyer for Art Van told the court the company owed $14 million in employee obligations, $2.5 million in professional fees, and had less than $13 million in its accounts. Two years ago, Art Van reported revenue of $850 million. U.S. Bankruptcy Judge Christopher S. Sontchi approved the company’s Chapter 7 application and a withdrawal of $2.9 million for employees’ back pay. At the time of the bankruptcy filing, Art Van had 4,500 employees. That number was now less than 50 workers, the lawyer told the court. Neither Matt Benson nor Robin Weinberg, media contacts for Thomas H. Lee Partners,

“ These are the same kind of people that put Toys R Us out of business, and they sing out of that same hymnal — they come in, fire all the people running the company, load it up with debt, and sell the real estate.” Alan Sussman The Sussman Agency

For the franchisees of Art Van Furniture, pain was the watchword as the once successful retailer succumbed to an inept and rapacious management team. BY NORM SINCLAIR IN THE FIRST THREE YEARS THAT BRUCE Dietz operated his Art Van franchise furniture store in Gaylord, he couldn’t have been happier with the business. “Everything about that franchise was perfect,” he says, describing the operation he joined in 2014. “It was a great family-run organization, and the

responded to emails asking for comment. Art Van operated 169 stores in nine states — 92 as furniture showrooms and 77 free-standing Art Van PureSleep outlets. Other company brands included Scott Shuptrine Interiors and Art Van Flooring. Another 20 stores, half of them in Michigan, are individually owned franchisees operating under the Art Van banner. The latter stores weren’t part of the bankruptcy. A pro forma court document drawn up as part of the bankruptcy filings indicated Art Van Furniture had assets of $100 million to $500 million, with liabilities in the same range. Listed debts totaled $208 million in loans and letters of credit serviced through Bank of America and Wells Fargo Bank. Another $64 million was owed to its top 30 vendors around the country and as far away as Hong Kong. In addition, nearly $1 million in outstanding credit card payments, along with various fees, were listed.

franchisees were close family with the Van Elslander family,” Dietz says. “They really supplied us with whatever we needed to be successful. They were very intelligent people with lots of passion.” The sale of the company in 2017 to Thomas H. Lee Partners, a multibillion-dollar equity fund manager based in Boston, changed everything, he says. Almost immediately, the Art Van managers and executives he got to know in the Warren headquarters were gone. Dietz says he never interacted with any of the new Thomas Lee Partners managers, but he could see alarming changes in procedures and inventory after Art Van’s longtime CEO, Kim Yost, and many of the

Sussman’s agency is the top unsecured creditor at $7.8 million, a figure he disputes, followed by La-Z-Boy Inc. in Monroe at $5.1 million. Sussman says he’s out about $700,000. He believes debts owed to radio, television, and other media outlets that carried Art Van’s advertising were combined and added to his listing. Sussman and others say at the time the Art Van chain was sold to Thomas H. Lee Partners, the company was financially sound. “The stores were in great shape, they were making money and were profitable,” he says. “A lot of people believed Art Van was the best furniture company in the country. It was envied by all the people in the industry.” Yet the closing and conveyance of Art Van to Thomas H. Lee Partners served to precipitate its demise, as a rising threat from competitors — Target, Walmart, Amazon, and Wayfair in furniture and Leesa, Casper, and Tuft & Needle in

upper management team began filing out of the company. “We were doing 5 percent to 7 percent growth rate every year since we opened, and after Kim Yost left, we started running down about 15 percent to 20 percent,” Dietz says. He recalls being at home at 11:30 one night in early March when he was blindsided and stunned by a text from a friend who owned the Art Van franchise in Alpena. Art Van had filed for bankruptcy, the message said. “I never saw it coming; they never told us they were having financial problems,” Dietz says. Looking back, the merchant says he should have seen trouble coming. “They changed the so-called secret sauce of how Art Van ran

sales, the promotions, and the financing. They changed the lineups for sales and there just wasn’t the backup of personnel down there (Warren headquarters) to talk to,” Dietz says. “They bought it to strip the cash out of it, just like Toys R Us and other companies where the same thing happened to them. It’s legal robbery, that’s what it is. They put a lot of people out on the street without a job and without insurance. It’s a terrible thing to do.” Dietz says he and his son, Justin, his Gaylord store manager, intend to keep their store open under another name. They also hope to purchase the Art Van company store in Petoskey, if the price is right. “It’s in good shape, and we could have it up and running (soon).” JULY - AUGUST 2020 || DBUSINESS.COM 51

Cover Story || Retail

bedding — was just unfolding. Not to be overlooked were Art Van’s struggles as a regional player in matching the economies of scale of national retailers like Williams-Sonoma Inc., HomeGoods, and Bed Bath and Beyond Inc. On the online front, Digital Commerce 360 estimates that the 28 leading e-commerce furniture retailers in 2019 represented $11.3 billion in sales, up 34.5 percent from $8.4 billion in 2017. Fast-forward to 2020, when revenue growth for the $65-billion furniture industry, made up of 38,615 businesses employing 231,449 people, was projected to decline 4.2 percent as more homeowners aged in place rather than moving, according to a December 2019 report from IBISWorld. In turn, rising production costs due to the Phase One conclusion of the U.S.-China tariff negotiations began to drain profit margins. At a time when Thomas H. Lee Partners was counting on customer loyalty to drive sales, the stores’ beloved founder — who was the face of the

1959

Founded in East Detroit by Art Van Elslander (now Eastpointe).

2013

Invested $50 million to open stores in Illinois

52 DBUSINESS || JULY - AUGUST 2020

NEXT-DAY SERVICE Art Van Elslander was driven to fulfill customer orders as quickly as possible. A fleet of delivery trucks made the rounds throughout Michigan, Canada, and the Midwest. Collectively, truck drivers racked up some 5 million miles per year.

1980

1963

Expanded to 7 stores

2014

Had more than 100 stores

company and a major benefactor of charities throughout metro Detroit — was walking out the door. They had no one to replace him. “The support that Art Van provided to so many charities in our region was just incredible,” says Tony Michaels, president and CEO of The Parade Company. “It was a way of life for him, and it was the culture inside the company. He was very dedicated to charities. He felt if you had success in your life, it was your duty to help out others. And he hoped that he would inspire other people.” The question becomes, what happened? In hindsight, had Elslander known, he would have thought twice about what was to become of a keystone of the company’s success. At the same time Thomas H. Lee Partners acquired Art Van Furniture’s operating assets, five Real Estate Investment Trusts closed on a separate deal for Art Van’s real estate portfolio. The REITs then leased the stores back to Thomas H. Lee Partners at expensive long-term rents. The proceeds from the sale-leaseback transaction were used to fund the $612 million purchase price paid to Van Elslander, according to court documents. The sale-leaseback deal included 20 top-performing stores in Michigan, as well as the company’s 1 million-square-foot headquarters in Warren. The leases were for 20 years and guaranteed an 11-percent return, based on sales generated at each store. “The REITs pretty much sealed Art Van’s fate, because you lose control of the bottom end of your (chain of) stores,” Sussman says. “If a store is underperforming and you want to close it, or you seek to consolidate with another store, you can’t do that because someone’s holding a 20-year lease on it.” The 11-percent return was almost triple the rate Van Elslander wrote off as rent for his own stores, according to Sussman.

Issued first credit card

into

2017

Bought out-of-state furniture retailers Levin and Wolf

Opened clearance centers to sell overstocked product

2017

Company sold to Thomas H. Lee Partners of Boston for an estimated $550 million

Retail || Cover Story

Bruce Dietz, owner of an Art Van franchise store in Gaylord, says a company store farther north, in Petoskey, was paying $54,000 in monthly rent to one of the REITs — almost twice as much as the $26,000 he says the rent should have been in that market. “They’re trying to sell that store now for about $5 million over the appraised value,” Dietz says. “Unfortunately, that’s probably what they paid for it, and that’s why they charged $54,000 a month, basing the rent off of sales.” David A. Lerner, a 20-year partner in the bankruptcy group at Plunket Cooney, a large law firm in Bloomfield Hills, believes the meltdown at Art Van following the sale to Thomas H. Lee Partners was caused by online sales pressures throttling traditional brick-and-mortar retail. “We’re going to see a whole host of retailers go into bankruptcy — J.C. Penney Co., Neiman Marcus, and Pier One have filed — just a laundry list. And they’ll blame the pandemic, but it’s not that,” Lerner says. “It’s what’s been happening in the brick-and-mortar world for the last number of years. “They just can’t compete with buying stuff online. You could go into Art Van, look at a piece of furniture, Google it, and see that Wayfair had it for 30 percent off and free shipping. And until recently, there was no sales tax.” Pat O’Keefe, founder and CEO of O’Keefe, a financial consulting and turnaround expert firm in Bloomfield Hills, says when a successful family-owned business like Art Van goes up for sale, private equity firms sometimes see more value in the real estate assets than in the business they’re actually buying. He notes the Art Van sale-leaseback deal was eerily similar to one used in the 2003 court-approved sale of Kmart Corp., the

Acquired Scott Shuptrine Interiors

longtime retailer that traces its roots to a five-and-dime store in downtown Detroit in 1899. The former No. 2 retailer behind Sears was bought out of bankruptcy by Chicago billionaire venture capitalist Eddie Lampert. Lampert reportedly paid $800 million for the company. Soon after the acquisition, he sold 70 Kmart stores to Sears Roebuck & Co. and Home Depot for $900 million. Kmart’s stock soared, making Lampert millions of dollars in profit. “So for him, it wasn’t a retail play, it was a real estate play,” O’Keefe says. The sale of Art Van came out of the same playbook, O’Keefe says. Thomas H. Lee Partners sold off the stores and made a substantial return on the sale-leaseback arrangement. “Since they achieved whatever returns they were hoping to get, it didn’t matter if the business survived or not. The consequence is hundreds of employees (in Michigan) lost their jobs and there was no reason for that to happen,” he says. While the new buyer didn’t have experience in the furniture retail market, its consumer portfolio includes national retailers such as 1-800 Contacts, Party City, and Dunkin Brands, the corporate parent of Dunkin’ Donuts and Baskin-Robbins. Thomas H. Lee Partners was founded in 1974, and today has raised more than $26 billion in equity capital. Its investments are channeled into four business sectors: consumer, financial services, health care, and technology/business solutions. Sussman says Thomas H. Lee Partners was naïve about Art Van’s operations. “Can you imagine buying a business from a genius like Art Van — and he was a genius, a retail furniture genius, one of a kind, an anomaly — and then these people come in and say he didn’t know what he was

After Art Van Furniture was sold, the new leaders either lacked market experience or came from other troubled retailers. Ronald Boire President and CEO Art Van Furniture Inc., replaced Kim Yost April 2018 – August 2019 Previous Positions: CEO, Barnes & Noble Inc., September 2015 – August 2016 President and CEO, Sears Canada Inc., January 2015 – August 2015 President and CEO, Brookstone, August 2009 – January 2012 President, North America, Toys R Us Inc., September 2017 — December 2009 Gary T. Fazio CEO Art Van Furniture Inc., replaced Ronald Boire September 2019 – March 2020 Previous Positions: CEO, Serta Simmons Bedding, January 2013 – December 2015 CEO, Simmons Bedding Co, July 2010 – December 2012 CEO, Mattress Firm Inc., January 2001 – February 2010 David Ladd CFO Art Van Furniture Inc. January 2017 - Present Previous Positions: Sears Holdings Corp., Kmart Corp.

2009 Art Van Elslander saved America’s Thanksgiving Day Parade with a $200,000 check, and later became the presenting sponsor of the event

Named Furniture Retailer of the Year by Furniture Today magazine

2018

March 5, 2020

March 9, 2020

March 23, 2020

Art Van Elslander dies at age 87

Thomas H. Lee Partners announced plan to close all company-owned stores

Thomas H. Lee Partners filed for Chapter 11 bankruptcy protection

Two former employees sued company for not being properly informed of their termination

JULY - AUGUST 2020 || DBUSINESS.COM 53

Cover Story || Retail

doing?” Sussman says. “One assumption they made was that people in Michigan didn’t like Art Van, because they were always on sale. Yet Art Van had the largest market share of any business I’ve ever handled, and I’ve been in this business for 56 years.” Shortly after the ownership change, Bob Price, senior vice president of merchandising and inventory management, vacated Art Van to become CEO of Houston-based Star Furniture. Price is credited with having an interior designer’s touch that he cast across showroom floors to draw curious shoppers looking for design ideas. The stores were so well-arranged, they attracted budget and well-heeled customers alike. Soon after Price left, several of his department colleagues followed him to Texas, or left and went elsewhere. Within a few months, the new ownership team announced the same-day acquisition of two chains: Levin Furniture, with stores in Pittsburgh and Cleveland; and Wolf Furniture and Gardiner Wolf Furniture, operating in Pennsylvania, Maryland, and Virginia. The combined 53 stores continued to operate separately under their own nameplates. The acquisitions at first buoyed the company’s prospects to new heights. Furniture Today reported Art Van, with projected sales of $1.3 billion, was expected to move into the top 10 among U.S. furniture stores. Those giddy moments were tempered, however, by the continued talent exodus at Art Van’s headquarters along 14 Mile Road. Kim Yost, CEO for more than a decade, retired 11 months after Thomas H. Lee Partners took control. He was replaced by Ronald Boire, a manager who hop-scotched from top jobs at Barnes & Noble Inc. — he left the CEO post after one year — to Toys R Us, Brookstone, Kmart, and Sears, all of which later fell into bankruptcy. Boire, in turn, went out the door 14 months later. He was replaced last September by Gary Fazio, who had retired four years earlier as CEO of Serta-Simmons Bedding Co.

54 DBUSINESS || JULY - AUGUST 2020

SALE-LEASEBACK One turning point of the company’s fortunes came when Thomas H. Lee Partners sold off the real estate. Following the closing, the new owners turned around and charged rent to 20 top-performing Art Van stores.

“They brought in people who didn’t know anything about home furniture retail at all. They had zero understanding of the business,” Sussman says. “How do you bring in a CEO with no experience in this industry?” In a 21-page declaration to the bankruptcy court, David Ladd, CFO at Art Van, another Kmart/Sears veteran, acknowledged that the company faced “numerous operational challenges,” including “leadership turnover.” Through 2018, the company lost eight of its top nine executive leaders over a 21-month span due to “unplanned and, in many cases, voluntary departures,” he wrote to the court. “This is a clear sign of a troubled company; a revolving door on the C-Suite means that when that many executives leave, they go because they’re uncomfortable. It certainly is a sign that something’s wrong,” says Judy O’Neill, an adjunct professor at the University of Michigan Law School and a former partner and bankruptcy lawyer at Foley and Lardner in Detroit. Last year wasn’t any better. August was a particularly brutal month in Art Van’s corporate suites in Warren. Ladd says the company terminated “the then-current CEO, the chief merchant, the head of stores, and several other executives.” In all, some 22 company veterans exited the

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“ When you have companies with two different cultures and you marry them, it’s like two strangers getting married.” Van Conway Van Conway and Partners company, either voluntary or through downsizing, in the two years after Thomas H. Lee Partners arrived on the scene, according to other published reports. During the management upheaval, the wallto-wall Art Van television sales commercials that drove foot traffic into the stores were slashed, along with other cost-cutting measures implemented by new managers. In September, Gary Van Elslander, son of the company founder and a former company president, was brought in as board chairman. Ladd acknowledges the move was a morale-booster and an attempt to re-establish the lost connection employees and customers had with Art Van Elslander and his family. The company also launched a new marketing campaign and reworked its e-commerce operating systems and website. Next, they upended store interiors. Ladd says the company turned over 60 percent of its furniture assortment and reorganized flagship showroom floors by “lifestyle” sections instead of by category of product — changes he says “negatively impacted sales.” By January 2020, quarterly revenue had declined 27 percent on same-store sales. Ladd blames the losses, in part, on growing digital competition from Wayfair and Amazon, who together controlled 63.1 percent of the online furniture market, according to 1010data. At the same time, Ashley HomeStore, Bob’s Discount Furniture, and Mattress Firm opened at least 30 stores in the past three years in Michigan and Illinois. Ladd says a five-store Art Van expansion into the Chicago area that began in 2013 and continued into 2018 was a failure. Another drag was the company’s takeover of its largest franchisee’s multiple stores in St. Louis last year. None of the stores were profitable. While revenue was declining, expenses increased significantly, Ladd says. Last year Art Van had $8 million in additional costs due to tariffs triggered by the Trump administration’s trade war with China. Those tariff costs continued to escalate in the first quarter of 2020, Ladd told the court. “Art Van wasn’t alone feeling the pain of the U.S. tariffs on China,” says Alex Calderone, managing director of the Calderone Advisory Group, a turnaround specialist firm based in Birmingham. “China’s skilled inexpensive labor force is

essential to the American furniture industry. A lot of larger companies with greater purchasing power could pass the tariff costs on to suppliers, but Art Van was a little player compared to an Amazon, Walmart, or Target. The $8-million cost would be a substantial hit for them.” Thomas H. Lee Partners also paid $5.8 million to settle a 2018 class-action lawsuit for violations of the Telephone Consumer Protection Act. It also couldn’t overcome a failure to incorporate the 53 bolt-on Levin and Wolf-branded stores into the Art Van brand. “When you have companies with two different cultures and you marry them, it’s like two strangers getting married,” Conway says. “With the bolt-on strategy, we used to joke it’s only profitable in a Harvard MBA textbook because a lot of things have to go right, including the cultural differences that can destroy a company. Those companies were in a different market than where Art Van was concentrated. But now you’re going into other cities and replicating what Art did, but you don’t have Art. It’s like buying the New England Patriots and you don’t get Tom Brady. I don’t know if it’s the same team.” An effort last year to integrate the operations of Wolf Furniture into Levin flopped as Wolf’s same-store sales declined 22 percent in the second half of the fiscal year, resulting in “meaningful turnover of tenured staff,” Ladd told the court. “When you’re making acquisitions, taking all these aggressive moves, leveraging a company up with excessive amounts of debt, those strategies work under best-case scenario situations,” Calderone says. “But when the best-case scenario doesn’t pan out and you’re stuck with a mid- or bad-case scenario, the earlier strategies leave very little room for repairing the damage that’s done if the mid-case or worst-case scenario materializes. I think that’s what happened under these circumstances.” O’Keefe says for the Levin-Wolf acquisitions to have worked, Thomas H. Lee Partners should have moved immediately after the purchases to assimilate the administrative functions of those chains into the Art Van system. “A lot of equity firms conceptualize such potential benefits but don’t get them done because they don’t move fast enough,” he says. The Levin-Wolf saga had one last chance for a happy ending. Before the bankruptcy filing, Thomas H. Lee Partners agreed to sell back 44 Levin stores and two distribution centers to their former owner, Robert Levin. Levin anticipated preserving the family-owned business while saving 1,000 jobs. He announced a $2 million fund to help employees and hired a legal team to monitor the bankruptcy proceedings. In early April, however, the deal disintegrated.

Each side released acrimonious statements accusing the other of reneging on their signed agreement. Regrettably, the stores were added to the Chapter 7 liquidation. Ladd’s declaration to the court also described desperate moves to save the company in the months leading up to the bankruptcy filing. Attempts to rearrange financial obligations and debts with its lenders, including Bank of America Merchant Services, PNC Merchant Services, and Wells Fargo, failed. He says there were discussions with at least 31 potential buyers and investors to recapitalize or sell all or parts of the business. The most promising possibility was one that included the Van Elslander family, new money from Thomas H. Lee Partners and three major suppliers, and the five REIT lessors who agreed to take less rent. The deal called for closing 49 underperforming locations. However, before an agreement could be signed, the growing fear of the impact of COVID-19 on the retail industry killed the deal. The end came for Art Van when Bank of America and PNC Bank, which processed credit cards used for customer purchases, refused to continue their services unless the company came up with $33 million in collateral. O’Keefe, a federally approved bankruptcy trustee, says the Art Van drama could continue playing out in civil court. When a deal fails within a couple of years of a sale, the beneficiary of the sale, in this case the Van Elslander family, or Thomas H. Lee Partners, could be sued for fraudulent conveyance in that sale. “The test is whether or not the company had sufficient working capital on the day the sale closed and whether it was foreseeable that more capital was needed because of industry downturns, or cyclical recessional pressures,” according to O’Keefe. “A lot of families don’t understand how that could possibly be the case. They give up their business, they have no control over how much leverage was put on it, but they’re the clear recipient of the over-leverage because the company’s assets were levered up to fund the acquisition, and then it failed.” Lerner agrees that the case could generate further legal action. “There are a lot of pockets out there that are empty,” Lerner says. “You’ve got angry employees who didn’t get their paychecks or their medical insurance covered, consumers who paid for stuff they didn’t receive, angry landlords asking, ‘Where’s my money?’ Wells Fargo is going to say, ‘We’re out X dollars on our loans,’ so I wouldn’t be surprised to see some fraudulent transfer lawsuits spinning out of this. And it’s sad, because this was a great family business in Michigan and Art Van was a great philanthropist for the city of Detroit.” July - August 2020 || DBUSINESS.COM 55

PHOTOGRAPHY BY DANIEL R MOEN

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Cindy Kahn has lived in Michigan most of her life. In fact, she and her husband raised their two daughters in the same community where she has dedicated her life to marketing and selling the finest residential properties in southeast Michigan. Kahn has always appreciated the area and its unique qualities, and her focus on satisfying her real estate clients’ needs — combined with a reputation for honesty, perseverance, and market knowledge — has led to a long and growing list of referral business. These referrals are a direct result of Kahn’s sincere enjoyment in getting to know her clients, and understanding their motivations and needs. Her dedication to clients is shared by her assistant, Elaina Ryder, and the entire Hall & Hunter team; their professionalism is obvious from the beginning through to the end of all transactions. There’s a simple reason why Kahn has been Hall & Hunter Realtor’s Top Producer for 2016-2019, continues to be an area top agent year after year, and is among the top 1 percent of Realtors nationwide: She’s devoted to helping clients meet their objectives in a discrete and professional manner. Cindy Kahn is an extraordinary agent who provides extraordinary results.

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REAL ESTATE Q&A

WORKING REMOTELY DRIVES INDUSTRY CHANGES

A number of factors can shape the future of a particular industry — the economic environment and interest rates, buyer sentiment and preferences, and even weather patterns. While some of those variables may be anticipated, others defi nitely are not. Think hurricanes, and now the COVID-19 pandemic. This latest, unexpected force has disrupted many businesses in the short term and will set the stage for the foreseeable future. As businesses return to some level of operations,

they’ll be doing so under designated guidelines. Although some aspects of real estate operations will continue as they had been, COVID-19 is reshaping the requirements of both companies and homeowners. More specifically, the push toward remote work and the necessity for social distancing is behind the changes in how commercial space is used. Fewer employees means less square footage is needed by a business, albeit with the addition of partitions between workers.

Residential real estate is also seeing a shift in property preferences. Being forced to spend more time at home has led many homeowners to re-evaluate their living and working space. Those who have recently joined the remote workforce are especially interested in being able to accommodate a home office. If you’d like further insight into either the commercial or residential real estate markets, the following experts can certainly be of service.

Q: What’s a Real Estate Transfer Tax Valuation Affidavit and why should I use it? A: A Real Estate Transfer Tax Valuation Affidavit (RETTVA) is a form that can be used as a layer of privacy in a real estate transaction. Under Michigan law, as a precondition to recording the deed, the buying and selling parties are required to disclose the amount paid for real estate on the face of the deed. A REETVA allows the parties to forego that requirement. A REETVA includes a description of the

property, the purchase price, and the amount of state and county transfer taxes due. Once completed, the form is filed with the Register of Deeds, along with the deed. While filing a REETVA prevents the purchase price from being disclosed on the deed, it doesn’t provide complete privacy, because the selling price must be disclosed to the assessor’s office and maintained as a public record.

Kerr, Russell and Weber, PLC Anna Valk, Attorney Real Estate 500 Woodward Ave., Ste. 2500 Detroit, MI 48226 313-961-0200 kerr-russell.com avalk@kerr-russell.com Advertisement on page 38

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REAL ESTATE Q&A Q: How wary should I be as a commercial real estate investor after COVID-19? A: Many commercial landlords have made fortunes in recent years as the economy thrived. During the recent COVID-19 pandemic, however, landlords have struggled and, in all likelihood, they’ll be seriously challenged going forward. The short-term effects of the pandemic are well known: Tenants have been unable to pay their rents, whether that’s due to being shut down for business in the strip center, office, or industrial real estate industries, or because they’ve lost their jobs in the multifamily business. Landlords have thus been forced to negotiate rent deferral agreements with their tenants and forbearance/ payment deferrals with their lenders. Although most pundits are confident that multifamily projects will revert to “normal” when the pandemic is over and unemployment

returns to more historic levels, predictions for the commercial, office, and industrial spaces are murkier. Countless small, retail, and restaurant businesses will be forced to vacate their commercial spaces because they can no longer afford them. Furthermore, a growing number of corporate chains will also face significant obstacles in paying their rent. As working remotely becomes more commonplace, office landlords should be getting nervous. With fewer employees in offices, tenants need less space. Although many people believe the U.S. economy’s strong fundamentals, low interest rates, and never-before-seen liquidity are all positives, commercial developers and landlords should be wary of what the future holds; it’s truly uncharted territory.

Plunkett Cooney, PC

Scott Lites 38505 Woodward Ave., Ste. 100 Bloomfield Hills, MI 48304 248-901-4074 plunkettcooney.com/ people-80.html slites@plunkettcooney.com Advertisement on page 5

Q: Where’s the housing market headed following COVID-19? A: January, February, and early March exhibited strong numbers with regard to showings, offers, and closings. That momentum was interrupted by COVID-19. Understandably, the plans of many buyers and sellers have been put on hold or changed because of virusrelated restrictions. Even so, the fundamentals of the local market have remained solid during the quarantine, and interest rates are historically low. Sellers are beginning to feel confident in moving forward, so hopefully they’ll start listing their homes again and inventory will increase. On the buying side, demand is strong, but the home residence desires of buyers have changed. Due to the pandemic, buyers

want more space, home offices, and larger backyards. There’s even been some shift from urban to suburban location preferences. As an experienced real estate professional, Cindy Kahn keeps a close eye on the industry and prevailing market trends. “I anticipate that the buying and selling sides of the residential real estate market should sync up shortly and finish 2020 as strongly as they started,” she says. “Being very knowledgeable about the local market, I welcome both sellers and buyers to contact me for assistance,” she continues. “I’m happy to list and market the home you’re selling and/or discuss your needs if you’re considering purchasing a new residence.”

Hall & Hunter Realtors

Cindy Obron Kahn Area Top Producer 2008-2019 442 S. Old Woodward Birmingham, MI 48009 248-644-3500 248-568-7309 cindykahn.com Cindy@CindyKahn.com Advertisement on page 63

Q: What effects will COVID-19 have on the commercial real estate market? A: COVID-19 will impact commercial real estate more than other economic sectors. The pandemic represents a disruptive event that significantly accelerates long-term trends already underway. These changes mostly revolve around technology and mobility. Commercial real estate’s use is a function of people’s work and consumption patterns. COVID’s disruption has altered businesses and consumer patterns. There’s been a significant increase in “e-work,” using technology in place of live work environments. Shoppers are increasingly comfortable with curbside delivery of retail goods and meals. These choices existed pre-COVID, but significant portions of our society are now proficient in and comfortable with them. Consequently, we should anticipate a major evolution in commercial real estate over the

next decade. Office space users will shrink their floor plans, due to greater levels of remote work. The configurations of suites will change, with smaller, more efficient individual work stations, possibly with physical barriers, and larger collaborative spaces to allow people to maintain distance. Retail properties will reconfigure to accommodate more “drivethrough” traffic, similar to the way in which most banks and drug stores already operate. Industrial and distribution facilities will accommodate increasingly sophisticated supply chain requirements. Even new apartments will be built with the intention of appealing to the needs of remote workers. These changes will ultimately benefit consumers.

Walsh

John Moore, Ph.D., CPA Chair and Professor of Finance and Economics 3838 Livernois Rd. Troy, MI 48083 248-823-1600 walshcollege.edu Advertisement on page 15

Exec Life

INSIDE || CIGAR-ROLLING | RETURN ON INVESTMENT | PRODUCTION RUN | OPINION | VENTURE DEVELOPMENT

DRIED TO PERFECTION Leaves cut from tobacco plants typically are dried for four to six weeks before being rolled into cigars.Most cigars have a blend of Ligero (top), Seco (middle), and Volado (lower) leaves.

HOW YOU ROLL

Ever wonder what it takes to create a fine cigar by hand?

BY RIC BOHY

JULY - AUGUST 2020 || DBUSINESS.COM 67

Exec Life || Cigar-Rolling

t first blush, it seemed like a dandy inspirational anecdote for anyone interested in rolling his or her own cigars. One day in the 1970s, Fidel Castro caught a whiff of his bodyguard’s cigar and was so bowled over by the aroma that he ordered the maker, a friend of his security forces, to be found and ensconced in a secret factory where he would make cigars only for the dictator and his inner circle. The smoke came to be known as Cohiba — “tobacco” to indigenous people — and the tale would seem to indicate that what is now the most famous cigar in the world started as the product of a do-it-yourselfer. But as is the case with so many great stories, it’s not quite true. To ward off assassination attempts, Castro and his forces operated their cigar factory in secrecy. Over time, as the haze cleared, the credit for creating this most special cigar went to a pair of torcedores, or cigar rollers, who in 1961 opened El Laguito, a small factory in western Havana; its origin stemmed from a cigar-rolling school for women. For the record, until Castro quit smoking in 1985, he was never far from his favored roll, Cohiba’s Corona Especial, as he told Cigar Aficionado in a 1994 one-on-one interview. Ismail Houmani, owner of La Casa in Detroit, 68 DBUSINESS || July - August 2020

Ann Arbor, and Las Vegas, has visited the tobacco fields and the El Laguito factory. “What Cuba has that nobody else has is the soil,” he says. “You can take that same seed and plant it anywhere else, and you’re not going to come out with the same taste. To me, it’s God’s gift to the Cubans.” The Cuban style of rolling also contributes to its unique flavor — and it’s all done by hand. Most other cigar producers around the world use machines that wrap fillers with binders. “The Cubans use two different binders for the cigars,” says Houmani. “They’re called half-binders.” Houmani once employed a cigar-roller in the store window of his Detroit shop, but demand for his 20-Minute Cigar — a half-size smoke — grew to the point that the cigars are now rolled at a boutique factory in Costa Rica. Nash Zaitouna, owner of the Churchill’s Cigar Bar and Bistro locations in Birmingham, Grosse Pointe Woods, and West Bloomfield Township, says the ability to match the skill and flavor of Cuban cigars is a tall order. “I suppose you could try it,” Zaitouna says, “but you can’t duplicate the climate, the soil, and the other things to produce a good cigar. I’m not a big Cuban guy myself. I’ve tried them, but they can be inconsistent.” For Churchill’s branded cigars, Zaitouna turned to AJ Fernandez, a nearly century-old grower and roller in San Luis off Cuba’s western coast (the family eventually made their way to Nicaragua), along with Davidoff, which got its

CUT, ROLL, AGE, SMOKE Dried tobacco leaves, as shown at La Casa in downtown Detroit, are cut using a piece of flat stainless steel, curved and sharpened on one side, known as la chaveta.

start in 1967 at the Laguito factory. The so-called “King of Cigars,” Zino Davidoff oversaw a tobacco specialist shop in Geneva before cutting a deal to create a namesake line with Cubatabaco, Cuba’s state-run tobacco monopoly. In 1990, the line was discontinued; Davidoff took his brand to the Dominican Republic that same year and now sources tobacco from multiple countries. As a fine roller will attest, cigars are typically rolled on wooden surfaces — the older the better — and heavily pressed by hand to compact tobacco layers that are added in a prescribed order. Today, most accomplished torcedores are women. So, man or woman, how does the curious cigar-making hobbyist get down to it? First, patience is a virtue; the rolling process takes plenty of practice, and each finished cigar needs to age. A freshly completed cigar is smokeable, but not particularly palatable. Aging melds the flavors, dissipates excess moisture, and blunts any rawness. The longer the aging, the better, as long as they’re stored in low light at about 70 percent humidity. For the home roller, the best choice is a good humidor. Understand that unless you’ve rolled hundreds of cigars a day for decades and found a way to source proprietary, triple-fermented tobaccos,

LA CASA DETROIT

Cigar-Rolling || Exec Life

you will never come close to duplicating a Cohiba. Even with more readily available leaves, finding the right balance between construction and flavor takes time. Before detailing the gear needed for home rolling, it’s essential to understand the anatomy of a well-made cigar (see sidebar). Whole-leaf cigar tobacco is available from several sources on the web, and the tried-and-true favorite for home rollers is leafonly.com, which carries a very wide variety of leaves, some in bags of selected blends, as well as starter kits for new rollers, including basic equipment and a selection of tobacco. All of the equipment is readily available. In place of a hard rolling surface made from wood, acceptable substitutes include tile, a kitchen cutting board, or whatever else is handy. Tobacco leaves are cut with a simple piece of flat stainless steel, curved and sharpened on one side, known as la chaveta (available online). Another option is a pizza cutter or a mezzaluna, a curved blade used for mincing herbs and vegetables. The idea is to roll the sharp edges from tip to tip, as slicing may tear the leaf. Certain parts of the cigar are lightly glued during the rolling process. Professionals commonly use tree sap, dried or powdered, adding trace amounts of water as needed. Just as effective is fruit pectin, available in grocery stores. Look for the powdered form that’s reconstituted with water (tip: use distilled water for the sake of purity). Once reconstituted, fruit pectin stores longer in a fridge. Apply water with a spray bottle to soften and refresh tobacco leaves that are a little too dry, to restore flexibility. Traditional Cuban cigars are finished with a “triple cap” that holds the head in place to prevent unraveling. It includes a “flag” at the end of the wrapper, which is glued in place as the first cap. It’s much easier and just as functional to cut a circular piece from a scrap of the same tobacco for the wrapper, using an appropriately sized piece of copper tube fitting — straight or elbow — sharpened all around one end with a file. This cap is then glued in place over the head of the cigar. And though it isn’t necessary, the roller who wants a nicely shaped final product should buy a wooden cigar mold in the size and shape of choice. To get started, lay out the tobacco leaves on a flat surface and cover with a damp towel. If any of the leaves aren’t pliable, give them a light spritz on both sides, pat off the excess with a paper towel, cover, and let sit for an hour or so. The wrapper and binder must be flexible; the fillers less so, as long as they bend without crumbling or cracking. Next, carefully cut the center vein from each leaf, overlap the two halves, and set to one side with the tips pointing away. Now come the filler leaves, which pose one of the two most difficult steps in rolling a cigar. Learning how much to

use in this “bunch” takes experimentation and practice. Getting the right feel is everything. Too little pressure and the cigar will be soft and burn fast. Too much and it will be hard to inhale. Keep in mind that most cigars have a blend of Ligero, Seco, and Volado leaves. Ligero, which comes from the top of the plant, provides the most flavor (think bold); Seco is from the middle portion and imparts a mild flavor; while Volado, from the bottom of the plant, is essential so that the cigar burns properly — the other leaves don’t burn well on their own. Based on preference, the mixture of the three leaves determines the boldness, strength, and aroma of a cigar. To proceed, cut the leaves in half crosswise and lay the bottom half on the top half. Starting with the strong, slow-burning Ligero, either fold it lengthwise into small accordion pleats or roll it lengthwise into small tubes — a difficult technique professionals call entubado — and hold it in your closed hand, squeezing gently. Repeat with the Seco, adding it to the Ligero in your hand, then the Volado. The last two should be positioned around the Ligero. This is the “bunch.” Give the bunch several firm squeezes. Lay the reserved binder at an angle with the tip to the left, and place the bottom end of the bunch crosswise on the end closest to you, parallel with the small veins in the binder leaf. Slowly start to roll it up the binder, holding the bunch together with the fingers of one hand and gently spreading the binder with the other. Once near the tip of the binder, smear on a thin layer of cigar glue and finish rolling. The result will be a little raggedy, but will roughly resemble a cigar. Put it in the mold under a heavy weight and let it rest for about an hour. What comes out should be a smooth, attractive stogie. Gently stretch an unflawed wrapper leaf and lay it dark side down, then repeat rolling the cigar in the same way as the binder. This is the other tricky step because the wrapper is the most delicate of the leaves used, and applying it is often left to specialists in cigar factories. Just be patient, and you’ll get better with each attempt. Cut a cap from a scrap of the wrapper and glue it on the head of the cigar, smoothing and flattening until neat. Trim the foot straight across and place it in the mold for two or more hours. Remove the cigar and let it dry uncovered for about a week, followed by two weeks or more in a humidor (the longer the better). If a cigar is to share with a preferred drink, aficionados recommend something sweet to soothe the buzz — a Dr. Pepper or a sugar-free Vernor’s Ginger Ale pair well — or any selection of beer, wine, or spirit. From there, clip the tip, light up, and savor the pleasure of blazing your own trail — because, simply put, that’s how you roll.

Insider Information WHAT IT TAKES TO ROLL A FINE CIGAR: Filler: This is a blend of three different tobacco leaves that provides 30 percent to 40 percent of the taste. The leaves come from different primings — the rows of leaves on a tobacco plant — and include Ligero, a slow-burning, dark, potently flavored leaf from the top priming, which gets the most sun; Seco, a milder tasting leaf from the middle primings; and Volado, an easy-burning leaf from the bottom of the plant. These are bunched together, with Ligero always folded into the center of the bunch. Binder: This leaf holds the fillers together. Usually consisting of Volado from the lower primings, it must be both durable and pliable. Good binders have less developed veins to make a smooth base for the wrapper, but blemishes and small tears are acceptable because the wrapper hides them. Binders tend to have little flavor, but they do contribute aroma; the trick here is to use one or two that complement the fillers and wrapper. Guidance can be found online, and experimentation will reveal a tasty choice. Wrapper: This is the most expensive leaf, and finishes the cigar as a thing of beauty while providing well over half of the flavor. Its large veins are removed and those left in place should be nearly invisible. The texture may be “toothy,” covered with tiny oil-filled denticles packed with flavor. Sometimes the tasty oils can be seen bubbling right behind the ash on a burning cigar. Wrapper colors range from greenish Candela to dark mahogany Maduro and nearly black Oscuro. A common misconception is that the darker the wrapper, the stronger the flavor. A dark Maduro usually adds a touch of sweetness to the taste, sometimes with notes of chocolate, caramel, espresso, and spice. Head: The business end of the cigar, finished with a cap that’s snipped off or pierced before putting it in your mouth — larger cuts boost airflow. Foot: The opposite end, which is lit. The richer tips of the leaves are positioned at the foot during rolling, for a big start to the smoking experience. — Ric Bohy July - August 2020 || DBUSINESS.COM 69

Exec Life || Return on Investment

POLITICAL MOTIVATION Over four episodes, Rose Abdoo, center, played the role of U.S. Sen. Linda Moskowitz, a fictional character on ABC’s “Scandal.” The show aired for seven seasons, ending on April 19, 2018.

Gypsy Rose From Second City to the “Gilmore Girls,” and a star turn with George Clooney, Detroit native Rose Abdoo rides the wave of success.

70 DBUSINESS || JULY - AUGUST 2020

was always a July 4th parade and Halloween parade, and we had our own little red schoolhouse.” Peter Abdoo was a budget analyst for the U.S. Army Corps of Engineers and his wife, Mary, was a homemaker. “But she’s the most creative person,” Abdoo enthuses. “She could paint and sew, and she made clothes. She was the lady in the neighborhood that all the mothers would come to when they needed a dress fixed or wanted something beaded. And she threw amazing luncheons. My mother’s house was the one everybody wanted to get invited to.” On many of those occasions, little Rose was the oh-so-willing center of attention. “My parents would, on purpose, ask me in front of their friends, What do you want to be? They thought it was so funny to hear a 7-year-old say, I want to hold a microphone and either be a tour guide or wear a trench coat and be a foreign correspondent.” Once she got to Southfield High School, Abdoo figured the quickest route to either career would be a gig at the school’s radio station. “So I worked at WSHJ,” Abdoo says. “I did the headlines at noon. I also started to audition for the school plays. I did all the plays, and I won the senior awards for the most talented girl and the

funniest girl in the class.” When she arrived at Michigan State University, her first choice was a major in telecommunications. “I thought, I gotta get back to this newscasting thing,” Abdoo says. “But there’s 46,000 kids at Michigan State, and you had to wait in line for like three hours just to get a computer punch card for a class. I looked over at the theater table and there was never a line, so I just kept taking theater classes. So I say this career chose me, because I didn't want to wait in line.” Abdoo graduated in 1984 with a bachelor’s degree in communications. “I had so many theater credits from waiting in all those long registration lines,” she says. “I stayed at MSU for two years after I graduated. I was accepted into the Master of Fine Arts program and did 25 shows with the MSU Performing Arts Company.” Her performances caught the eye of the chairman of the theater department. “He told me I had a face for stage because I had such expressive features,” Abdoo recalls. “He also said I should find someone I love and do what they do. It seemed so simple. I loved Gilda Radner and Lily Tomlin. And then I found out they were both from Detroit, and that made me love them more. And I read that Gilda

ERIC MCCANDLESS/ABC

he actress and comedian Rose Abdoo has a notable list of TV and film credits spanning four decades, but she says her career really began long before she even knew what a credit was. “My mother recently found a drawing that I did when I was very young,” Abdoo says. “I think I was in first grade, and it’s a self-portrait, and underneath it just says in huge letters, ‘I am funny.’ ” Abdoo laughs, which she does frequently as she joyfully dives into her life growing up in Southfield, starting with a bit of trivia she came across as a kid one day in the library. “I read that Southfield had more telephones than any other city in the United States, and I thought that was so cool,” she says. “So I told my father that my sister and I needed our own phone.” Her dad didn’t go for the idea. Born at Hutzel Women’s Hospital in Detroit, Abdoo and her older sister, Lucia, were raised in a tidy, well-kept home located across the street from Saint John’s Armenian Church near Northland Mall, between 8 Mile and 9 Mile roads. “I lived in a very tight-knit subdivision called Magnolia,” she says. “All the parents and kids knew each other, and it was just idyllic. There

BY TOM MURRAY

COURTESY ROSE ABDOO

Return on Investment || Exec Life

did comedy at a place called Second City.” Founded in 1959, Chicago’s Second City Theater has been the renowned mecca of improvisational comedy for generations of performers, and Abdoo wanted to be one of them. She moved to Chicago in 1986 and enrolled in classes at the Second City Training Center. “We call Second City the Harvard of comedy,” Abdoo says. “There’s no better training you can get, and my teachers were the big heavy-hitters back in the day, who studied with all the people that really invented the art form of improvisation. I remember my first teacher said it’s not about being funny; it’s about being true and real, and reacting in the moment.” Abdoo got a job to cover her rent and improv classes, and it turned out to be the perfect place to hone her improvisational skills. “It was a real estate company at the top of the Hancock building,” she says. “I worked for five partners, and they caught wind of the fact that I could imitate different people.” That unique skill had an immediate and significant impact on Abdoo’s daily office duties. “Most of the time they would set me up in this office nobody was using and just have me crankcall their friends,” Abdoo says, giggling. “They paid me to do that, even during partners’ meetings, and then the whole office would come to Second City to see me in classes.” Her classwork perfected Abdoo’s innate comedic instincts, and she was chosen to join her first touring company, along with an array of budding comedic superstars. “Chris Farley, Steve Colbert, Amy Sedaris,” Abdoo says. “There (are) no better people to play with.” It was a thrilling moment in Abdoo’s career — but a difficult one, too. “My dad died after my first show with the touring company,” she says, “but he was so happy I found something I loved to do. He taught me if you find something you love to do for work, you’ll feel like you never worked a day in your life.” Abdoo spent the better part of two years on the road with her troupe. “You go to different cities and you get different suggestions,” she says, “and it’s so great because improvisation is about doing scenes based on what the audience wants to see. So you’re always coming up with situations, everything that occurs to you in your daily life, to use on stage that night and giving the people what they want to see.” RED CARPET MOMENT Abdoo played the role of Millie Lerner, a newsroom editor, in “Good Night, and Good Luck,” a 2005 film written and directed by George Clooney.

When the tour ended, Abdoo landed a paid position as a full-time Second City player, which led to her first big break in 1993. “The director Robert Zemeckis was doing a show called ‘Johnny Bago,’ about a guy who’s traveling around the country in a Winnebago on the lam from the law. So I was like, all right. I made a videotape and sent it in.” In short order she was summoned to Los Angeles for an audition. “I (had) no credits,” Abdoo says, “and I thought, I’m never going to get this. But they picked me.” The show was a flop, lasting only eight episodes, but Abdoo’s career took off, eventually requiring her to move to L.A. full time. She now has nearly 90 film and television credits and counting, including smash hits like “Gilmore Girls,” “Malcolm in the Middle,” and a memorable turn as a whacky interior decorator on “Curb Your Enthusiasm.” But her career didn’t stop there. “I went in for what was a one-line audition and my agent calls me a month or two later and says, ‘You’ve been cast in “Good Night, and Good Luck.” ’ I was like, Great, what’s that? And I find out it’s a George Clooney movie about the McCarthy era.” What was supposed to be one day of work turned into a month. “So I’m getting to eat lunch every day with George Clooney, and he’s such a kind person,” Abdoo says. “Then the film was nominated for a Screen Actors Guild award, so I got to walk the red carpet. I mean, that, to me, was a super highlight of my career.” While Abdoo is quick to credit her Detroit roots for much of her success, it only goes so far. “I feel like the people that I meet here in L.A. say, ‘Wow, you Midwest people have such a work ethic,’ and I say, What does that even mean? You

have to show up and do your best.” For Abdoo, that boils down to a simple but consistent philosophy: “How you do anything is how you do everything. I learned whether it’s the tiniest little thing for a radio voiceover or a big giant part, learn the lines, have it down cold.” That attitude has been a critical factor in Abdoo’s ability to thrive in a traditionally unforgiving industry as one of a precious few “women of a certain age” who keep busy in Hollywood. “I’m 57 and very proud of the fact that I’ve been told I’m too young, too old, too large, too small, too short, too dark-haired, and too ethnic. I still enjoy auditioning. I still enjoy creating characters. “I think because I grew up with a family that was so supportive of me, I thought, It doesn’t matter if these strangers don’t hire me; I’m not going to let all the rejection and the no’s get me down. Because you get a million no’s. To me, it was, alright, I wasn’t right for that part, but that doesn’t mean I’m not right for something. I feel every audition is an investment in the overall big picture of my career.” A career that now includes her latest one-woman show, her third overall, called “Rose Abdoo and Rose Abdon’t.” “My last name has caused a lot of problems with traveling (she’s of Lebanese and Dominican descent), and I talk about after 9-11, how things changed in this country and I had to very often be in a private room and be searched. I talk about racism in the business and auditioning for commercials, and people saying, ‘What kind of a name is that? What are you?’ And how people make judgments about your name and your skin color. Everyone has something in them that makes judgments about people, and that’s the theme of the show.” After its premiere in L.A., Abdoo brought the show last November to the Jewish Ensemble Theater in Walled Lake. It was truly a full-circle evening for her and producer Ron Zate, whom she met in high school while producing shows for their drama teacher, Virginia Borts. She was in the audience that night and so was Abdoo’s firstgrade teacher, Mary Anne Smythe — “my friend on Facebook to this day” — along with seemingly every relative and friend from her past, including her sister and mom. How to sum it all up? “I once read an article about Colleen Dewhurst, who was a great actress I admired. She talked about having no master plan, just being open and riding each wave as it came. And I thought, Oh my God, that’s what I did.” JULY - AUGUST 2020 || DBUSINESS.COM 71

Exec Life || Production Run

BEAUTY SECRETS Not satisfied with conventional face and body products, two mothers and their daughters launched Fig + Olive, a natural skin care company in Bloomfield Hills.

Natural and Universal Mother-and-daughter teams develop and distribute healthy skin care products.

72 DBUSINESS || July - August 2020

and user age, and they donate a portion of their proceeds and products to local nonprofits. Rounding out the team are Bojrab’s daughter, Adrianna, who works in New York City for the corporate side of fashion company Ralph Lauren, and Gordon’s daughter, Stephanie, who works in Denver for Education First, an international education company. Operationally, the mothers work on product development, production and distribution, customer relations, and account management. The daughters’ focus is on product concepts, partnerships with nonprofits, and marketing and brand development. “We both have families on top of it, so we really had to keep it convenient for us,” Bojrab says

of the company’s location and operations. Fig + Olive’s products are designed to reflect that convenience and simplicity, offering familiar products made of ingredients customers recognize such as aloe vera, vitamin E, and jojoba oil, which Bojrab says help skin heal, reduce dryness and redness, and reverse the effects of environmental pollutants. Other ingredients include essential oils, olive oil, salt, and sugar. Bojrab says she drew inspiration from her father’s homeland for the company’s name. As a young boy in the Middle East, her father tended fig, olive, and lemon trees with his family on an organic farm. The family learned natural remedies through its work, and when Bojrab visited

COURTESY OF FIG + OLIVE

ust as Tiffany & Co.’s little blue box is iconic, customers of Fig + Olive, a skin care company in Bloomfield Hills, have come to trust its little blue bottle of face and body serum. While the business works to offer the highest quality products using simple, natural ingredients, the owners say they don’t want them to be thought of as too pricey. Fig + Olive was started by best friends Andria Bojrab and Joann Gordon in 2015. The two had skin issues and say they were tired of spending money on expensive, natural skin care products that they found ineffective. The pair now offers items for all skin types, regardless of sensitivity

BY GRACE TURNER

Production Run || Exec Life

as a young adult, she says she was moved. While there, she met three elderly sisters who had flawless skin and asked them what products they used. Their answer: olive oil. As a result, Fig + Olive’s bar soap is made entirely from olive oil and is safe for all ages, including newborns. Customers also use it as a shampoo and some, including Bojrab, even use it as a dog shampoo. Fig + Olive’s first product was a lavender salt body scrub. Based on initial orders, customers — mostly women — embraced the product, and their husbands, sons, and boyfriends gave it a try. As satisfaction with the scrub grew among both men and women, Bojrab and Gordon rethought their marketing, packaging, and scents, and decided to offer more gender-neutral products. Over time, the founders noted that customers asked if there was a less abrasive alternative for face scrubs. In response, Fig + Olive’s second products were limoncello, and rose and eucalyptus sugar face scrubs. Soon after, the duo developed the company’s iconic body and face serum, which comes in a little blue bottle. The serum, designed to nourish and revitalize the skin, is made from six ingredients: lavender and myrrh organic essential oils, vitamin E, organic jojoba oil, mineral oil, and 100 percent pure aloe vera. Before long, customers began using the serum to prevent stretch marks during pregnancy. They also used it on their babies when they were born. Others use it as a bath oil, or put it in their hair to moisturize and fight frizz caused by humidity. Bojrab says her 83-year-old mother uses it every day and looks 63. During the holidays, some customers order as many as 50 bottles at a time to give as gifts. “It doesn’t live within one specific age range or skin need,” Adrianna says of the serum. “It really addresses a range of skin needs.” One of Fig + Olive’s goals is to simplify daily routines by reducing the number of products people use, she adds. One of Adrianna’s experiences speaks to more than just skin. She recalls that she and Stephanie brought along a bottle of the serum on a weekend vacation at a shared summer house and accidentally left it there. When they went back later that summer, they found the serum had been used up, and each person who had stayed in the house said they’d used it for something different — sunburn, hair moisturizer, under their makeup, as a moisturizer at night, and more. Such customer feedback helps drive product development in more direct ways, as well; regular buyers have asked for travel-size options and packaging that’s more eco-friendly. Both requests have been met, and the Bojrabs now use their empty

serum bottles to store herb cuttings. The team says customers frequently ask for product updates or changes, which led to the creation of an eye serum based on the face and body serum. “Whatever they want, we’ve produced,” Andria says. Adrianna shares that she often meets models through her work with Ralph Lauren, and many have become repeat customers. Other Fig + Olive products include foot scrubs and soaks, body balms, and lip scrubs. All products are made in small batches; the team doesn’t want to mass-produce, in an effort to keep inventory fresh. Along with online orders at figandoliveproducts.com, the company offers its products at Franklin Boutique in Franklin, and Thrifty Florist and The Colore Room salon, both in Birmingham; many other salons buy Fig + Olive products for their customers. Bojrab and Gordon say they plan to launch their products on Amazon in the near future. Due to the COVID-19 pandemic, product bottles and containers have been trickling in as they become available, but Fig + Olive hasn’t slowed down. The company has dedicated the downtime to ramping up its philanthropic efforts, which are developed and implemented yearround. By selling mostly direct to consumers, costs are cut, keeping prices low and allowing more to be donated. While recent donations have been dedicated to feeding doctors and nurses on the front lines of COVID-19, the company sent a batch of free moisturizing products to the cancer unit of a hospital in Canada after a nurse wanted to buy them for her patients, as radiation and chemotherapy can cause skin dryness and burning. “We like to keep our ear to the ground and take the lead from our consumers, so they really feel connected to the causes,” Adrianna says. As part of its nonprofit mission, Fig + Olive supports Lighthouse’s PATH program in Pontiac, a safe house for women and children who are homeless and often survivors of domestic violence. Along with providing shelter, the two-year transitional housing program offers wraparound services. In addition to supplying its line of offerings, Fig + Olive donates other hygiene products. “It’s been a passion of ours because they come with nothing,” Andria says. The company also partners with Humble Design in Pontiac, which helps families and veterans emerge from homelessness by providing furniture and household items. So far, Fig + Olive has used its proceeds to furnish five apartments. Other organizations receiving support include Ascension Health, the Crohn’s and Colitis Foundation, the Holley Institute, the Children’s Leukemia Foundation of Michigan, Beaumont Hospital, Royal Oak’s neuroscience labs, and cancer clinics across Michigan.

THE RUNDOWN

The company sells about 250 units per month of its face and body serum.

Products contain a maximum of six ingredients.

Fig + Olive helps 20 charitable causes.

The company donated 20 percent to 25 percent of its proceeds to charity in 2019.

Source: Fig + Olive July - August 2020 || DBUSINESS.COM 73

Exec Life || Opinion

Attracting Talent BY ELAINE COFFMAN

n April, we celebrated the six-month C-suite and only 3 percent of insurance profesanniversary of launching a Michigan sionals are African-American. It isn’t lost on me office for Lockton Cos., the world’s larg- that, as a 50-year-old woman, I’m in a unique est independent insurance brokerage. position within this industry and I have an opFundamental to any new endeavor is portunity to make a tremendous impact. building a strong team, although startNeedless to say, I’m passionate about creating fresh comes with its own set of challenges ing a diverse team — one that celebrates the and opportunities. unique perspectives of women “...IT’S HEARTENING TO As I reflect on my career trajecand men of all ages, races, reliKNOW THAT A 2018 tory and think about the accomgions, and sexual orientations; BOSTON CONSULTING plishments and missteps that have one that’s inclusive by creating GROUP STUDY FOUND occurred over the past 30 years, a competitive opportunities for all THAT DIVERSITY DOES, clear trail begins to emerge in my candidates, not just filling quotas; IN FACT, INCREASE THE planning and priorities. one that aggressively invests in BOTTOM LINE FOR While Lockton is the eighthminority business enterprise COMPANIES.” largest broker in the world for models to improve the disparities benefits, property and casualty, and retirement in business ownership; one that supports the services, we’re brand-new to metro Detroit. In organizations aiming to develop talent from all fact, when I told a friend I was joining Lockton, corners of our communities. she thought it was a coffee company. I’m now I’m passionate about this because the insurtrying to attract talent to join a relatively un- ance industry must reinvent itself, and a diverse known company — an insurance company, workforce will do that. It will also help us better nonetheless. Ask any millennial if a career in serve and connect with our clients. Diversity insurance is something they aspire to; I think sparks dialogue and debate, which sparks innoyou know the answer. vation. Diversity provides generational and Years of experience have taught me one can cultural experiences, as well as perspective, nuonly control so much. So while building the ances, and new business norms. Lockton brand in the region may take some For example, we know the COVID-19 crisis time, I can quickly build a team of brand ambas- has forced Gen Xers and baby boomers to sadors among our associates. adopt technology that millennials and Gen Since October, our team has grown from five Zers have been using their entire lives. associates to more than 30 people. This summer, And, let’s be frank: As a business leader, I we’re on-boarding two new college graduates for need to consider revenue outcomes. But an intensive 24-month training program and it’s heartening to know that a 2018 Boshosting virtual internships for four college stu- ton Consulting Group study found dents. As we continue to grow, we’re focused on that diversity does, in fact, increase hiring individuals with diverse backgrounds the bottom line for companies. who can offer unique perspectives and experiHiring is one piece of the puzzle in ences to our team and our clients. building a team of brand ambassaOur recruiting and hiring strategies are com- dors, but we also must retain them. pelling when we examine the insurance sector, This can be done by having strong historically one of the least diverse of any major managers, mentorship programs, mulindustry in the country. Even so, there are op- tiple office locations, work/life balance portunities. Twenty-five percent of the overall and flexibility, and formal and informal netinsurance workforce is in the process of retiring, working. In addition, we offer diverse benefits, and another 25 percent will retire over the com- keeping in mind same-sex partners and a ing decade. competitive parental leave program. We’re foRight now, white women make up 45 percent cused on generation gaps, to keep all members of entry-level roles, yet only 18 percent reach the of our team immersed and productive. ELAINE COFFMAN is president of the Michigan operations of Lockton Cos., an independent insurance brokerage with offices in Detroit and Birmingham.

74 DBUSINESS || JULY - AUGUST 2020

Maintaining an engaged workforce requires an ongoing commitment from management. Our leadership team understands it’s our responsibility to manage without bias, to create a culture of belonging, and to show our team there’s a clear path for career growth and advancement. So while we are 30 associates among a larger company made up of 7,500 people with more than 100 offices worldwide, I’m proud to lead the charge as we work toward reinventing the workplace and effecting change in an industry that’s lagging behind.

AUSTIN PHILLIPS

Entering new markets is never easy, especially if your goal is to build a diverse workforce in an industry known for its monoculturalism.

$1,995,000 MLS 458886 $1,995,000 $1,995,000 MLS 458886 Exquisite waterfront home with outstanding, unobstructed sunset views of Lake Charlevoix.

458886 The house is elevated perfectly to maximize these views on over 3 acres with 140’ of frontage. TheMLS architecture is incredible with Exquisite waterfront home with outstanding, unobstructed sunset views of Lake Charlevoix. every inch designed to be eye-catching. The landscaping has been tastefully created by the owners consisting of many colorful The houseand iswaterfront elevated perfectly to maximize these views over 3 acres with 140’ frontage.isviews The architecture incredible Exquisite home with plants outstanding, unobstructed of Lake Charlevoix. perrenials strategically placed seagrass alongonthe waterfront side. Theofsunset kitchen bright and livelyiswith warmwith tones every inch designed to be eye-catching. The landscaping has been tastefully created by the owners consisting of many colorful with Thethroughout. house is elevated perfectly maximize these over 3 acres with frontage. The master architecture is incredible The living roomtohas a fireplace and views a viewon that spans across the140’ lake.ofThe main-floor bedroom is peaceful perrenials and strategically placed seagrass plants alonghas the waterfront side. The kitchen is bright and lively with warm tones every designed to be eye-catching. Thehas landscaping been tastefully created bysitting the owners of many colorful and inch roomy, with a luxurious bath. Upstairs three generously sized bedrooms, a loft room,consisting and a second laundry. The throughout. The living room has a fireplace and a view that spans across the lake. The main-floor master bedroom is peaceful perrenials andisstrategically placed seagrass plants along the side. The kitchen bright and livelyboasts with warm tones lower level a haven - family & game room, bedroom, andwaterfront sauna. An apartment over theisdetached garage a spacious and roomy, with a luxurious bath. Upstairs has three generously sized bedrooms, a loft sitting room, and a second laundry. The throughout. The living room has a fireplace and a view spans across the lake. The main-floor master bedroom isfantastic. peaceful room, bedroom/office, Fromthat private balconies to geometrical home is simply lower level is a havenkitchenette - family & and gamebathroom. room, bedroom, and sauna. An apartment over theceilings, detachedthis garage boasts a spacious and roomy, with a luxurious bath. Upstairs has threeFrom generously sized bedrooms, a loft sitting and isa second laundry. The room, bedroom/office, kitchenette and bathroom. private balconies to geometrical ceilings,room, this home simply fantastic. lower level is a haven - family & game room, bedroom, and sauna. An apartment over the detached garage boasts a spacious room, bedroom/office, kitchenette and bathroom. From private balconies to geometrical ceilings, this home is simply fantastic.

Call for inquiries 248- 459- 7200

Exec Life || Venture Development

A Life of Purpose

Madison Bachman was on her way to becoming a doctor when her love for nature drew her to South Africa.

ather than follow a conventional path, Madison Bachman pursued a life of passion studying human-primate cohabitation in South Africa in order to find solutions to a growing problem: The battle for existence. By sharing her story, Bachman reminds us that the power of pursuing one’s passion in life and living a life of purpose and fulfillment can result in magical and impactful outcomes. In spring 2019, after graduating from the University of Michigan with a degree in cell and molecular biology and biomedical engineering, she was ready to start her medical training. And yet, Bachman says there was a burning question she couldn’t shake. “Do I follow what society would suggest as the right path for my life, or do I pursue what I believe is the right course for me?” Bachman found herself living in what she calls the “space between stories,” a transitional phase between her old story and a new one. “During this time, I found myself deconditioning what society told me I ought to be and looking back to my childhood self and asking her who I was meant to be,” Bachman says. Based on her reflections, she took a leap and embraced her lifelong dream and passion. “My 5-year-old self was, and still is, in love with the outdoors, with nature, and wildlife,” she says. “I knew I had to start with myself.” Last August, Bachman began working as a field researcher for Duke University. The work entailed a sixmonth research project in South Africa studying the conflict of human and baboon co-existence, specifically in the Montane Forest region. Once there, she followed a troop of baboons from sunrise to sunset, observing and recording their behaviors. Her goal was to determine why the human and baboon populations, which once lived in perfect harmony, now lived contentiously in the region. What she learned was that human settlements along the Garden Route of South Africa replaced much of the grassland landscape. Many baboons, who once called those grasslands home,

76 DBUSINESS || JULY - AUGUST 2020

BY JEFF SLOAN were forced to relocate to the Montane Forest. As the human population continued to grow and expand, the Montane Forest began shrinking. And as the forest shrank, leopards, which are the only natural predator of baboons in the area, fled, causing the baboon population to explode. Coupled with a shrinking habitat, food became more scarce and competition violent. As a result, the baboons entered human settlements in search of food from gardens and farms, posing a great risk to their lives and creating the

perfect storm for intense human-wildlife conflict. Out of that setback, though, an opportunity arose. One day, Bachman was observing the baboons out in the crop fields when suddenly a local farmer began shooting at the troop. “As I ran, I looked back to see that one of the male baboons I had been observing had been shot, and the entire troop rushed past me to the forest edge to seek refuge deep within, faster than I could follow,” she recalls. She spent the next few days searching for her troop. Three days later, she found 20 of the 60 members, and soon after her colleague found the rest. “When I rejoined the troop, I could feel their sense of distress,” she says. “(And) in that moment, I made a commitment to go beyond conducting research to finding and implementing solutions.” On that day, she laid plans to form the Wild Alliance, a not-for-profit international organization based in the Garden Route of South Africa and registered in the United States. “Our mission is to improve human-wildlife coexistence, starting with human-baboon conflict in South Africa, but ultimately (the intention is) to address these issues on a global scale,” Bachman says. “Our vision is a world where wildlife and wild places are protected, and the human communities surrounding these areas have the necessary support to live in harmony with nature and the local primate inhabitants.” The organization embraces innovation, education, ecological research, and natural landscape restoration. In turn, Wild Alliance strives to dissolve the existing boundary between “them and us,” while restoring interspecies connection. In August, Bachman plans to return to the jungles of South Africa to continue her research. “Once that connection is restored, a new relationship between humans and wildlife can be built, one that is founded on mutual respect, allowing us to coexist peacefully,” she says. “Which is the more beautiful world our hearts know is possible.” JEFF SLOAN is co-founder and CEO of Startup Nation and Aria Ventures, both in Birmingham.

Largest Banks and Thrifts in Metro Detroit || From the

Largest Banks and Thrifts in Metro Detroit 1. TCF BANK (Merged with Chemical Bank in 2019) 333 W. Fort St. Detroit 48226 866-258-1807 tcfbank.com Top Local Executive: Craig R. Dahl, president/CEO Assets 2019: $46.7B Assets 2018: NA Net Income 2019: $2.3B Net Income 2018: NA Total Loans 2019: $34B Total Loans 2018: NA 2. FLAGSTAR BANK 5151 Corporate Dr. Troy 48098 248-312-2000 flagstar.com Top Local Executive: Alessandro P. DiNello, president/ CEO Assets 2019: $23.3B Assets 2018: $18.5B Net Income 2019: $242M Net Income 2018: $212M Total Loans 2019: $18.1B Total Loans 2018: $13.3B 3. COMERICA BANK 411 W. Lafayette Blvd. Detroit 48226 313-222-4000 comerica.com Top Local Executive: Michael T. Ritchie, Michigan market president Assets 2019 (FY average): $13.2B Assets 2018 (FY average): $13.2B Net Income 2019: $369M Net Income 2018: $326M Total Loans 2019 (FY average): $12.6B Total Loans 2018 (FY average): $12.5B (These figures reflect Comericaâ&#x20AC;&#x2122;s Michigan banks.) 4. STERLING BANK AND TRUST One Towne Square, Ste. 1900 Southfield 48076 248-355-2400 sterlingbank.com Top Local Executive: Steve Huber, CFO, interim president/ CEO Assets 2019: $3.3B Assets 2018: $3.2B Net Income 2019: $60.9M Net Income 2018: $67.9M Total Loans 2019: $2.9B Total Loans 2018: $2.9B

5. BANK OF ANN ARBOR 125 S. Fifth Ave. Ann Arbor 48017 734-662-1600 bankofannarbor.com Top Local Executive: Timothy G. Marshall, president/CEO Assets 2019: $1.8B Assets 2018: $1.7B Net Income 2019: $32.9M Net Income 2018: $30.7M Total Loans 2019: $1.4B Total Loans 2018: $1.3B 6. LEVEL ONE BANK 32991 Hamilton Court Farmington Hills 48334 248-737-0300 levelonebank.com Top Local Executive: Patrick J. Fehring, chairman/president/CEO Assets 2019: $1.6B Assets 2018: $1.4B Net Income 2019: $17.1M Net Income 2018: $14.4M Total Loans 2019: $1.2B Total Loans 2018: $1.1B 7. FIRST STATE BANK 16100 Nine Mile Rd. Eastpointe 48021 586-775-5000 thefsb.com Top Local Executive: Gene Lovell, president/CEO Assets 2019: $772.1M Assets 2018: $711.7M Net Income 2019: $8.1M Net Income 2018: $7.7M Total Loans 2019: $531M Total Loans 2018: $520M 8. LAKESTONE BANK AND TRUST (Merged with ChoiceOne Bank in 2020) 83 West Nepessing St. Lapeer 48446 810-395-4313 choiceone.com Top Local Executive: Michael Burke Jr., CEO Assets 2019: $669.2M Assets 2018: $616.2M Net Income 2019: $7.92M Net Income 2018: $7M Total Loans 2019: $425M Total Loans 2018: $362.2M 9. OXFORD BANK 60 S. Washington St. Oxford 48371 248-628-2533 oxfordbank.com Top Local Executive: David Lamb, president/CEO Assets 2019: $505.3M Assets 2018: $457.4M Net Income 2019: $5.36M Net Income 2018: $4.08M Total Loans 2019: $338.1M Total Loans 2018: $319.4M

Ranked by 2019 Assets

10. FIRST NATIONAL BANK IN HOWELL 101 East Grand River Ave. Howell 48843 517-546-3150 fnbh.com Top Local Executive: Ronald L. Long, CEO Assets 2019: $431.1M Assets 2018: $408.2M Net Income 2019: $5.98M Net Income 2018: $3.29M Total Loans 2019: $354.6M Total Loans 2018: $320.5M 11. UNIVERSITY BANK 2015 Washtenaw Ave. Ann Arbor 48104 734-741-5858 university-bank.com Top Local Executive: Stephen L. Ranzini, president/CEO Assets 2019: $357.4M Assets 2018: $246.4M Net Income 2019: $3.77M Net Income 2018: $2.36M Total Loans 2019: $201.7M Total Loans 2018: $115.7M 12. ANN ARBOR STATE BANK (Acquired by Level One Bank in 2020) 125 W. William St. Ann Arbor 48104 734-761-1475 a2sb.com Top Local Executive: Peter Schork, president/CEO Assets 2019: $319.5M Assets 2018: $309.3M Net Income 2019: $3.32M Net Income 2018: $4.13M Total Loans 2019: $222.1M Total Loans 2018: $234.3M 13. CHELSEA STATE BANK 1010 South Main St. Chelsea 48118 734-475-1355 chelseastate.bank Top Local Executive: John Mann, CEO Assets 2019: $297.1M Assets 2018: $299.8M Net Income 2019: $4.91M Net Income 2018: $5.26M Total Loans 2019: $173.5M Total Loans 2018: $173.4M 14. FIRST INDEPENDENCE BANK 7310 Woodward Ave., Ste. 101 Detroit 48202 313-256-8400 firstindependence.com Top Local Executive: Kenneth Kelly, chairman/CEO Assets 2019: $296M Assets 2018: $259.7M Net Income 2019: $1.56M Net Income 2018: $3.05M Total Loans 2019: $166.9M

Total Loans 2018: $175.9M

Net Income 2018: NA Total Loans 2019: $42.4M Total Loans 2018: NA

15. MAIN STREET BANK 31780 Telegraph Rd. Bingham Farms 48025 248-645-8888 msbmi.com Top Local Executive: Jeffrey Kopelman, president/CEO Assets 2019: $276.6M Assets 2018: $255.2M Net Income 2019: $2.09M Net Income 2018: $1.98M Total Loans 2019: $259.1M Total Loans 2018: $236.7M

20. JPMORGAN CHASE BANK, DEARBORN 18800 Hubbard Dr. Dearborn 48126 313-271-7736 Top Local Executive: NA Assets 2019: $61.2M Assets 2018: $60.8M Net Income 2019: $1.8M Net Income 2018: $1.5M Total Loans 2019: NA Total Loans 2018: NA

16. DEARBORN FEDERAL SAVINGS BANK 22315 Michigan Ave. Dearborn 48124 313-565-3100 mydfsb.com Top Local Executive: William R. White, chairman/president Assets 2019: $255.8M Assets 2018: $266.2M Net Income 2019: $1.2M Net Income 2018: $1.45M Total Loans 2019: $200.2M Total Loans 2018: $201.1M 17. CLARKSTON STATE BANK (Acquired by Waterford Bank in 2020) 5800 S. Main St. Clarkston 48346 248-625-8585 clarkstonstatebank.com Top Local Executive: J. Grant Smith, president/CEO Assets 2019: $232M Assets 2018: $210.7M Net Income 2019: $2.24M Net Income 2018: $2.56M Total Loans 2019: $199.2M Total Loans 2018: $190M

Total financial results are listed for banks headquartered in Wayne, Oakland, Macomb, Livingston, and Washtenaw counties. For banks headquartered outside this area, local results only are provided. Many national banks do not release results for individual markets; therefore, major institutions are not included on this list. Total loans also account for leases. Sources: Federal Deposit Insurance Corp. and DBusiness research.

18. HURON VALLEY STATE BANK 130 Milford Rd. Milford 48381 248-684-9626 hvsb.com Top Local Executive: Jack Shubitowski, president/CEO Assets 2019: $155.7M Assets 2018: $150.9M Net Income 2019: $1.85M Net Income 2018: $1.75M Total Loans 2019: $134M Total Loans 2018: $130.8M 19. MI BANK 3707 W. Maple Rd. Bloomfield Township 48301 855-642-2651 mi.bank.com Top Local Executive: Rob Farr, chairman/CEO Assets 2019: $68.2M Assets 2018: NA Net Income 2019: $-2.2M

July - August 2020 || DBUSINESS.COM 77

From the Top || Corporate Aviation — Top Regional Airports

Corporate Aviation — Top Regional Airports 2020 GENESEE COUNTY BISHOP INTERNATIONAL AIRPORT (FNT) G-3425 W. Bristol Rd. Flint 48507 810-235-6560 bishopairport.org Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 2 Longest Runway: 7,849 ft. Total Operations 2019: 31,894 Services: Fuel (100 LL, Jet A), maintenance, hangars, tie-downs, aircraft parking, ground power unit, de-icing, public phone, restrooms, showers, flight planning, satellite weather, passenger lounge, passenger terminal, on-site rental cars, lavatory service, air stairs, pilot lounge, crew cars, limo service, catering, business services, pilot supplies, internet, conference room, U.S. Customs, flight training, air freight, military landing rights FBOs/Other Services: Avflight Flint, 810-235-0681 Hours: Open 24 hours daily PRICE’S AIRPORT (9G2) 15057 Lindbergh Ct. Linden 48451 810-735-6569 horizonlakesairpark.net Tower: No Instrument Approach Procedures: Yes Number of Runways: 1 Longest Runway: 4,000 ft. Total Operations 2019: Unavailable Services: Self-serve fuel (100 LL), maintenance on call, snow removal, hangars, tie-downs Hours: Open 24 hours daily

LIVINGSTON COUNTY BRIGHTON AIRPORT (45G) 8664 Hyne Rd. Brighton 48114 810-599-1747 brightonairport.org Tower: No Instrument Approach Procedures: No Number of Runways: 1 Longest Runway: 3,120 ft. Total Operations 2019: Unavailable Services: No fuel available, tie-downs Hours: Open 24 hours daily (irregular)

78 DBUSINESS || July - August 2020

LIVINGSTON COUNTY SPENCER J. HARDY AIRPORT (OZW) 3399 County Airport Dr. Howell 48855 517-546-6675 co.livingston.mi.us/airport Tower: No Instrument Approach Procedures: Yes Number of Runways: 1 Longest Runway: 5,002 ft. Total Operations 2019: Unavailable Services: Fuel (100 LL, Jet A), maintenance, repair, inspection, charter, rentals, flight training, hangars FBOs/Other Services: Airservice Enterprise Inc., 517-546-7379; Fuel After Hours, 517-861-1856; Crosswinds Aviation, 517-552-1101; Preferred Avionics, 800-736-6143; County Aviation Services, 517-548-1565 Hours: 7 a.m.-5 p.m. Monday-Friday; 8 a.m.-noon Saturday-Sunday

MACOMB COUNTY RAY COMMUNITY AIRPORT (57D) 59819 Indian Trail Ray 48096 586-612-9910 go2ray.com Tower: No Instrument Approach Procedures: No Number of Runways: 2 Longest Runway: 2,495 ft. Total Operations 2019: Unavailable Services: Fuel (100 LL), flight instruction, mechanic on call, hangar, tie-downs FBOs/Other Services: Berz Flight Training, 586-731-6750 Hours: 10 a.m.-4 p.m. daily ROMEO STATE AIRPORT (D98) 15340 32 Mile Rd. Romeo 48096 586-336-9116 airnav.com/airport/D98 Tower: No Instrument Approach Procedures: Yes Number of Runways: 1 Longest Runway: 4,000 ft. Total Operations 2019: Unavailable Services: Self-serve fuel (100 LL, Jet A), on-call maintenance, airport management, rental cars, flight training, charter, aircraft rentals, hangars, hangar leasing/ sales, passenger terminal, passenger lounge, tie-downs FBOs/Other Services: St. Clair Flight School, 586-536-0773

Hours: 8 a.m.-4 p.m. Monday-Friday

OAKLAND COUNTY OAKLAND COUNTY INTERNATIONAL AIRPORT (PTK) 6500 Patterson Parkway Waterford Twp. 48327 248-666-3900 oakgov.com/aviation Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 3 Longest Runway: 6,521 ft. Total Operations 2019: 130,762 Services: Fuel (Jet A, 100 LL), aircraft parking, maintenance, repair, parts, detailing, pilot/ passenger lounges, rental cars, limo service, catering, ground power units, de-icing, lavatory and oxygen service, flight planning, live weather radar, U.S. Customs, heated FBO hangars, conference rooms, wireless internet, showers, catering, concierge, passenger/freight charters, military landing rights FBOs/Other Services: Michigan Aviation, 248-6663440; Oakland Air, 248-6664300; Pentastar Aviation, 248-666-8230; Royal Air, 248-666-3070 Hours: Open 24 hours daily OAKLAND/SOUTHWEST AIRPORT (KY47) 57751 Pontiac Trail New Hudson 48165 248-437-2333 oakgove.com/aviation Tower: No Instrument Approach Procedures: Yes Number of Runways: 1 Longest Runway: 3,128 ft. Total Operations 2019: Unavailable Services: Self-serve fuel (100 LL), pilot/passenger lounge, hangars, tie-downs, internet and computer for flight and weather planning. American Aces offers flight training and aircraft rentals. Other Services: Flight school only, American Aces, 248-446-9734 Hours: 8:30 a.m.-5 p.m. OAKLAND/TROY AIRPORT (KVLL) 2672 Industrial Row Troy 48084 248-288-6100 oakgov.com/aviation Tower: No Instrument Approach Procedures: Yes

Number of Runways: 1 Longest Runway: 3,549 ft. Total Operations 2019: Unavailable Services: Self-serve fuel (100 LL, Jet A), hangars, tie-downs FBOs/Other Services: JDS Pumps-N-Go, 248-288-6100; 2HRFUEL.com, 248-655-1474 Office Hours: 8 a.m.-6 p.m. daily

WASHTENAW COUNTY ANN ARBOR MUNICIPAL AIRPORT (KARB) 801 Airport Dr. Ann Arbor 48103 734-994-2841 airport@a2gov.org Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 2 Longest Runway: 3,505 ft. Total Operations 2019: Unavailable Services: Fuel (100 LL, Jet A), maintenance, repairs, parts, aviation accessories, rental cars, public telephone, restroom, limousine service available 24 hours a day, parking/tie-downs, auxiliary power units, jump-starting, computerized weather and flight planning, aircraft parking, aircraft rental, aerial tours/aerial sightseeing, rental/crew cars, oxygen, pilot lounge, shower, internet, passenger lobby, catering, refreshments, aircraft rental, flight training, hangars, glider towing, tie-downs FBOs/Other Services: Ann Arbor Aviation Center, 734-662-6806; Solo Aviation, 734-994-6651; Bijan Air Inc. (helicopter), 734-769-8400 Hours: Nov.-March 8 a.m.-6 p.m. daily; April-Oct., 8 a.m.-8 p.m. daily; terminal open 7 a.m.-dusk WILLOW RUN AIRPORT (YIP) 801 Willow Run Airport Ypsilanti 48198 734-485-6666 willowrunairport.com Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 3 Longest Runway: 7,543 ft. Total Operations 2019: 58,412 Services: Fuel (100 LL, Jet A), flight planning, de-icing, aircraft lavatory service, satellite weather, U.S. Customs services, parking (ramp and tie-down), hangars, passenger terminal,

pilot lounge, catering, concierge, rental/crew cars, high-speed wireless internet, business services, freight/cargo handling, military landing rights FBOs/Other Services: Avflight Willow Run (East), 734-4822621; Avflight Willow Run (West), 734-483-3531; Odyssey Aviation, 734-547-7359; Flagship Private Air, 734-926-2000 Hours: Open 24 hours daily

WAYNE COUNTY CANTON-PLYMOUTH-METTETAL AIRPORT (1D2) 8550 North Lilley Rd. Canton Twp. 48187 734-459-0012 airnav.com/airport/1D2 Tower: No Instrument Approach Procedures: Yes Number of Runways: 1 Longest Runway: 2,302 ft. Total Operations 2019: Unavailable Services: Fuel (100 LL), hangars, maintenance, repair, parking, tie-downs, flight school, aircraft rental, high-speed wireless internet, lounge, computerized weather, flight planning Hours: 8 a.m.-4 p.m. daily COLEMAN A. YOUNG INTERNATIONAL AIRPORT (DET) 11499 Conner Ave. Detroit 48213 313-628-2146 detroitmi.gov/Government/ Departments/airport.aspx Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 2 Longest Runway: 5,090 ft. Total Operations 2019: 38,698 Services: Fuel (100 LL, Jet A), maintenance, cleaning, de-icing, hangars, weather/flight planning, tie-downs, charter, courtesy transportation, aircraft lavatory service, passenger terminal, pilot lounge, rental cars, limo service, catering, aircraft sales, aircraft cleaning/washing/detailing, conference rooms, concierge, military landing rights FBOs/Other Services: Avflight, 313-527-6620; Active Aero, 734-547-7359 Hours: Open 24 hours daily DETROIT METROPOLITAN WAYNE COUNTY AIRPORT (DTW) Wayne County Airport Authority LC Smith Terminal Mezzanine

COURTESY OF WAYNE COUNTY AIRPORT AUTHORITY/VITO PALMISANOI

Corporate Aviation — Top Regional Airports || From the Top

MCNAMARA TERMINAL Home to Delta’s second-largest hub and a primary transpacific gateway.

Detroit 48242 734-942-3550 metroairport.com Tower: Yes Instrument Approach Procedures: Yes Number of Runways: 6 Longest Runway: 12,003 ft. Total Operations 2019: 393,681 Services: Cleaning, fuel (100 LL, Jet A), hangars, office rental, weather/flight planning, tie-downs, passenger/pilot

lounges, lavatory and potable water, GPU, ground handling, rental/crew cars, de-icing, exec terminal, crew lounge, wireless, catering, limo service, conference rooms, on-site hotel and concierge, military landing rights FBOs/Other Services: Signature Flight Support, 734-941-7880 Hours: Open 24 hours daily

GROSSE ILE MUNICIPAL AIRPORT (ONZ) 9601 Groh Rd. Grosse Ile Twp. 48138 734-675-0155 grosseileairport.com Tower: No Instrument Approach Procedures: Yes Number of Runways: 2 Longest Runway: 4,846 ft. Total Operations 2019: Unavailable

Services: Fuel (100 LL, Jet A), hangar leasing/sales, tie-downs, computerized weather, pilot lounge, plane wash, rental/crew cars, charter, aircraft lavatory service, conference room, concierge, catering, restaurant and lodging on-site, flight training, military landing rights FBOs/Other Services: Grosse Ile Municipal Airport, 734-675-0155

Hours: 8 a.m.-6 p.m. Monday-Friday; 8 a.m.-5 p.m. Saturday-Sunday Sources: Michigan Office of Aeronautics, AirNav.com, DBusiness research.

July - August 2020 || DBUSINESS.COM 79

From the Top || Largest Accounting Firms in Metro Detroit

Largest Accounting Firms in Metro Detroit* 1. DELOITTE 200 Renaissance Center, Ste. 3900 Detroit 48243 313-396-3000 deloitte.com Top Local Executive: Mark Davidoff, managing partner Detroit Area Employees: 2020: NA 2019: 1,217 Michigan Employees: 2020: NA 2019: 1,406 Number of CPAs: 2020: NA 2019: 330 2. PLANTE MORAN 27400 Northwestern Hwy. Southfield 48037 248-352-2500 plantemoran.com Top Local Executive: James Proppe, managing partner Detroit Area Employees: 2020: 878 2019: 1,183 Michigan Employees: 2020: 1,762 2019: 1,666 Number of CPAs: 2020: 717 2019: 423 3. PwC 500 Woodward Ave. Detroit 48226 313-394-6000 pwc.com Top Local Executive: Ray Telang, Detroit managing partner Detroit Area Employees: 2020: NA 2019: 749 Michigan Employees: 2020: NA 2019: 794 Number of CPAs: 2020: NA 2019: 344 4. ERNST & YOUNG One Kennedy Square, Ste. 1000 777 Woodward Ave. Detroit 48226 313-628-7100 ey.com Top Local Executive: Angie Kelly, Detroit managing partner Detroit Area Employees: 2020: 786 2019: 688 Michigan Employees: 2020: 906 2019: 793 Number of CPAs: 2020: 309 2019: 267

80 DBUSINESS || July - August 2020

5. UHY Chrysler House 719 Griswold St., Ste. 630 Detroit 48226 313-964-1040 uhy-us.com Top Local Executive: Tom Callan, Michigan CEO/Great Lakes managing partner Detroit Area Employees: 2020: 403 2019: 398 Michigan Employees: 2020: 421 2019: 398 Number of CPAs: 2020: 174 2019: 151 6. REHMANN 1500 W. Big Beaver Rd. Troy 48084 248-952-5000 rehmann.com Top Local Executive: Ryan Krause, regional managing principal Detroit Area Employees: 2020: 396 2019: 325 Michigan Employees: 2020: 669 2019: 748 Number of CPAs: 2020: 247 2019: 294 7. KPMG 150 W. Jefferson Ave., Ste. 1900 Detroit 48226 313-230-3000 kpmg.com Top Local Executive: Betsy Meter, office managing partner for Detroit and Grand Rapids Detroit Area Employees: 2020: 323 2019: 329 Michigan Employees: 2020: 412 2019: 407 Number of CPAs: 2020: 83 2019: 95 8. DOEREN MAYHEW 305 W. Big Beaver Rd., Ste. 200 Troy 48084 248-244-3000 doeren.com Top Local Executive: Chad Anschuetz, managing shareholder Detroit Area Employees: 2020: 239 2019: 236 Michigan Employees: 2020: 239 2019: 236 Number of CPAs:

Ranked by Metro Detroit Area Employment

2020: 107 2019: 101 9. BDO 755 W. Big Beaver Rd., Ste. 1900 Troy 48084 248-362-2100 bdo.com Top Local Executives: Andy Zaleski, John Marquardt, Tony Lawrence, and Keith Klucevek, managing partners Detroit Area Employees: 2020: 158 2019: 150 Michigan Employees: 2020: 398 2019: 525 Number of CPAs: 2020: 213 2019: 167 10. BAKER TILLY VIRCHOW KRAUSE 2000 Towne Center, Ste. 900 Southfield 48076 248-372-7300 bakertilly.com Top Local Executive: Patrick Killeen, Michigan managing partner Detroit Area Employees: 2020: 88 2019: 101 Michigan Employees: 2020: 101 2019: 101 Number of CPAs: 2020: 38 2019: 48 11. GORDON ADVISORS 1301 W. Long Lake Rd., Ste. 200 Troy 48098 248-952-0200 gordoncpa.com Top Local Executive: Alan R. Steinberg, managing partner Detroit Area Employees: 2020: NA 2019: 72 Michigan Employees: 2020: NA 2019: 72 Number of CPAs: 2020: NA 2019: 36 12. CLAYTON & MCKERVEY 2000 Towne Center, Ste. 1800 Southfield 48075 248-208-8860 claytonmckervey.com Top Local Executive: Rob Dutkiewicz, president Detroit Area Employees: 2020: 70 2019: 74 Michigan Employees: 2020: 70 2019: 74

Number of CPAs: 2020: 37 2019: 37 13. COLE, NEWTON & DURAN 33762 Schoolcraft Rd. Livonia 48150 734-427-2030 cndcpa.com Top Local Executive: Christopher Boloven, managing partner Detroit Area Employees: 2020: 46 2019: 48 Michigan Employees: 2020: 46 2019: 48 Number of CPAs: 2020: 17 2019: 16 14. MRPR GROUP, CPAS AND ADVISORS 28411 Northwestern Hwy., Ste. 800 Southfield 48034 248-357-9000 mrpr.com Top Local Executive: Angie Mastroionni, president and managing principal Detroit Area Employees: 2020: 32 2019: 30 Michigan Employees: 2020: 55 2019: 50 Number of CPAs: 2020: 30 2019: 30 15. SHINDELROCK 28100 Cabot Dr., Ste. 102 Novi 48377 Chrysler House 719 Griswold, Ste. 270 Detroit 48226 248 855-8833 shindelrock.com Top Local Executive: Steve Rock, CPA, CHBC, managing partner Detroit Area Employees: 2020: 18 2019: 24 Michigan Employees: 2020: 18 2019: 24 Number of CPAs: 2020: 12 2019: 13 16. EDWARDS, ELLIS, STANLEY, ARMSTRONG, BOWREN & CO. 2155 Butterfield Dr., Ste. 305A Troy 48084 248-643-4545 eeacpas.com

Top Local Executive: Jeffrey B. Ellis, CPA Detroit Area Employees: 2020: 17 2019: 19 Michigan Employees: 2020: 27 2019: 29 Number of CPAs: 2020: 11 2019: 14 *Some companies did not respond to requests for updates or were unable to do so, due to the COVID-19 pandemic. Source: DBusiness research.

Largest Credit Unions in Metro Detroit || From the Top

1. DFCU FINANCIAL 400 Town Center Dr. Dearborn 48126 888-336-2700 dfcufinancial.com Top Local Executive: Mark Shobe, president/CEO Assets 2019: $4.9B Assets 2018: $4.66B Total Income 2019: $169.9M Total Loans 2019: $1.01B Total Loans 2018: $1.1B 2. GENISYS CREDIT UNION 2100 Executive Hills Blvd. Auburn Hills 48326 248-322-9800 genisyscu.org Top Local Executive: Jackie Buchanan, CEO Assets 2019: $2.8B Assets 2018: $2.6B Total Income 2019: $152M Total Loans 2019: $2.04B Total Loans 2018: $1.8B 3. MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION 40400 Garfield Rd. Clinton Township 48038 586-263-8800 msgcu.org Top Local Executive: Peter D. Gates, president/CEO Assets 2019: $2.3B Assets 2018: $2B Total Income 2019: $112.8M Total Loans 2019: $1.9B Total Loans 2018: $1.7B 4. CREDIT UNION ONE 400 E. Nine Mile Rd. Ferndale 48220 800-451-4292 cuone.org Top Local Executive: Gary A. LENDING CENTER FreeStar Financial Credit Union in Clinton Township.

Moody, president/CEO Assets 2019: $1.4B Assets 2018: $1.2B Total Income 2019: $68.2B Total Loans 2019: $1.1B Total Loans 2018: $880.8M 5. COMMUNITY CHOICE CREDIT UNION 31155 Northwestern Hwy. Farmington Hills 48334 877-243-2528 communitychoice.com Top Local Executive: Robert Bava, president/CEO Assets 2019: $1.1B Assets 2018: $1.075B Total Income 2019: $64M Total Loans 2019: $958M Total Loans 2018: $899.6M 6. COMMUNITY FINANCIAL CREDIT UNION 500 S. Harvey St. Plymouth 48170 734-453-1200 cfcu.org Top Local Executive: William Lawton, CEO Assets 2019: $1.01B Assets 2018: $932M Total Income 2019: $56.7M Total Loans 2019: $945M Total Loans 2018: $867.6M 7. MICHIGAN FIRST CREDIT UNION 27000 Evergreen Rd. Lathrup Village 48076 800-664-3828 michiganfirst.com Top Local Executive: Michael Poulos, president/CEO Assets 2019: $980M Assets 2018: $925M Total Income 2019: $86.9M Total Loans 2019: $668M Total Loans 2018: $661M

Ranked by 2019 Assets

8. UNIVERSITY OF MICHIGAN CREDIT UNION 340 E. Huron St., Ste. 100 Ann Arbor 48104 734-662-8200 umcu.org Top Local Executive: Tiffany Ford, CEO Assets 2019: $953M Assets 2018: $907M Total Income 2019: $50M Total Loans 2019: $754M Total Loans 2018: $698M 9. VIBE CREDIT UNION (Merged with Oakland County Credit Union Jan. 1, 2019) 44575 W. 12 Mile Rd. Novi 48377 248-735-9500 vibecreditunion.com Top Local Executive: Tom Reagan, president/CEO Assets 2019: $913.8M Assets 2018: $527.5M Total Income 2019: $50.4M Total Loans 2019: $659M Total Loans 2018: $380.2M 10. MICHIGAN EDUCATIONAL CREDIT UNION 9200 N. Haggerty Rd. Plymouth 48170 734-455-9200 michedcu.org Top Local Executive: Robert Sandercock, president/CEO Assets 2019: $876M Assets 2018: $825.8M Total Income 2019: $30.5M Total Loans 2019: $536.4M Total Loans 2018: $542.6M 11. ZEAL CREDIT UNION 17250 Newburgh Rd. Livonia 48152 800-321-8570 zealcreditunion.org Top Local Executive: Julie Kreinbring, president/CEO

Demarco, CEO/manager Assets 2019: $272M Assets 2018: $260.4M Total Income 2019: $14.4M Total Loans 2019: $181.2M Total Loans 2018: $167.9M

Assets 2019: $613.9M Assets 2018: $600.6M Total Income 2019: $37M Total Loans 2019: $374M Total Loans 2018: $363.3M 12. ALLIANCE CATHOLIC CREDIT UNION 26913 Northwestern Hwy., Ste. 520 Southfield 48033 877-950-2228 allianceccu.com Top Local Executive: Robert Grech, president/CEO Assets 2019: $462M Assets 2018: $447.4M Total Income 2019: $20.9M Total Loans 2019: $200.8M Total Loans 2018: $198.2M

17. OUR CREDIT UNION 3070 Normandy Rd. Royal Oak 48073 248-549-3838 ourcuonline.org Top Local Executive: Tina Dix, president/CEO Assets 2019: $269.3M Assets 2018: $254.9M Total Income 2019: $13.9M Total Loans 2019: $185.2M Total Loans 2018: $153.1M

13. CHRISTIAN FINANCIAL CREDIT UNION 35100 Van Dyke Ave. Sterling Heights 48315 586-772-6330 christianfinancialcu.org Top Local Executive: Patricia L. Campbell, president/CEO Assets 2019: $429M Assets 2018: $89.2M Total Income 2019: $26M Total Loans 2019: $290M Total Loans 2018: $280.8M 14. DIVERSIFIED MEMBERS CREDIT UNION 1480 E. Jefferson Ave. Detroit 48027 313-568-5000 dmcu.com Top Local Executive: Kathie Trembath, CEO Assets 2019: $399M Assets 2018: $395.3M Total Income 2019: $18.3M Total Loans 2019: $174M Total Loans 2018: $146.7M

18. EXTRA CREDIT UNION 6611 Chicago Rd. Warren 48092 586-276-3000 extracreditunion.org Top Local Executive: Deidra M. Williams, president/CEO Assets 2019: $236M Assets 2018: $221.7M Total Income 2019: $18.8M Total Loans 2019: $141.2M Total Loans 2018: $123.8M 19. LOC FEDERAL CREDIT UNION 22981 Farmington Rd. Farmington 48336 248-474-2200 locfederal.com Top Local Executive: Stephen Grech, president/CEO Assets 2019: $227M Assets 2018: NA Total Income 2019: $10.1M Total Loans 2019: $124M Total Loans 2018: NA

20. FREESTAR FINANCIAL CREDIT UNION 37570 S. Gratiot Ave. Clinton Township 48036 586-466-7800 freestarfinancial.com Top Local Executive: Drema D. Isaac, president/CEO Assets 2019: $226M Assets 2018: $216M Total Income 2019: $13M Total Loans 2019: $177M Total Loans 2018: $179M

15. CORNERSTONE COMMUNITY FINANCIAL 2955 University Dr. Auburn Hills 48326 248-340-9310 800-777-6728 ccfinancial.com Top Local Executive: Heidi Kassab, president/CEO Assets 2019: $289.4M Assets 2018: $285.1M Total Income 2019: $16.1M Total Loans 2019: $258M Total Loans 2018: $85M

Sources: Michigan Credit Union League and Affiliates, and DBusiness research.

16. PEOPLE DRIVEN CREDIT UNION 24333 Lahser Rd. Southfield 48033 248-263-4100 peopledrivencu.org Top Local Executive: Renee

Total financial results are listed for credit unions headquartered in Wayne, Oakland, Macomb, Livingston, and Washtenaw counties.

July - August 2020 || DBUSINESS.COM 81

COURTESY OF FREESTAR FINANCIAL CREDIT UNION

Largest Credit Unions in Metro Detroit

Closing Bell || Design

Open Design Helene Rother may be best-known for her pioneering work in automotive interiors, but her creative talents spanned stained glass to silverware.

82 DBUSINESS || July - August 2020

interiors we make satisfy the American public?” She urged the use of better-matched fabrics and recommended hiring more women designers to choose them. One brand’s interior was indistinguishable from the next, she said, as if “the styling stopped behind the instrument panel.” Her new studio won the account of NashKelvinator Corp., led by George Mason and George Romney. As an independent automaker, Nash was eager to experiment. “Once known for being somewhat stodgy in its styling approach, Nash was soon featuring some of the most stylish interior colors and trim in the business,” Hemmings Classic Car reports. “The instrument board of a car shows more than anything else how wellstyled the car is,” Rother contended. The compact Nash Rambler she worked on was an industry breakthrough. After Nash and Hudson combined in 1954 to form American Motors, Rother devoted herself to other clients such as Elgin American, which crafted cigarette lighters, ladies’ compacts, and various accessories. “There is another fact which should not be overlooked,” she had told the SAE. “High-pressure advertising has made women very gadget-conscious.” In addition, she created Skylark sterling-silver flatware, a pattern that Samuel Kirk and Son, of Baltimore, kept in production more than three

SHE’S A RAINBOW As a designer of car interiors and home furnishings, Rother used a wide palette. “Americans, men and women alike, are the most color-loving people in our Western Civilization,” she said.

decades. Meanwhile, Rother continued to score in the auto field through her work for Miller-Meteor, the Ohio coachbuilder that produced hearses and ambulances on Cadillac commercial chassis. Yet, what automotive designer doesn’t yearn to do stained glass windows? Demonstrating impressive command of the medium, Rother conjured up spectacularly sophisticated windows for United Methodist Church in Farmington Hills and Trinity United Methodist Church in Lapeer, and created an intricate series for St. Lazarus Serbian Orthodox Cathedral in Detroit. Besides her city home, she also raised horses on a farm near Metamora. The attic of her house there was filled with models of her stained glass. She donated this treasure to the Michigan Stained Glass Census before her death in 1999. One of her utterances in particular is notable: “Lightness is the aristocracy of mechanical technique. Lightness, effortlessness, and simplicity must be the basic consideration of our automotive designs.” Earlier this year Rother was inducted into the Automotive Hall of Fame, a fitting tribute to one of the most accomplished designers ever to practice in Detroit.

COURTESY OF THE AUTOMOTIVE HALL OF FAME

elene Rother had eluded the Nazis during World War II and spent an interval as a refugee in Morocco before coming to America — a harrowing ordeal. On Nov. 15, 1948, she faced another test of courage as she stood before the Society of Automotive Engineers — a roomful of men — to say, “And even today, after six years (as a designer), the automotive industry is still unique in its lack of employing women in creative positions.” Born in Germany in 1908, Rother designed jewelry in Paris at her own Contempora Studio before the war. After arriving in New York City, she worked as an illustrator at Marvel Comics until her hiring, in 1942, by General Motors. She and her daughter, Ina, came to Detroit and took an apartment at 999 Whitmore Rd. in Palmer Park. Even without experience — she was likely the first woman to work in automotive design — she received the extravagant salary of $600 per month and enjoyed great leeway in her practice. After four years of designing seating, lighting, and door hardware for GM, she opened her own studio, first on the 16th floor of the Fisher Building, later in a house along West Chicago Boulevard in the Boston-Edison Historic District. In her SAE speech, Rother asked, “Do the

BY RONALD AHRENS

photograph: Joseph Thekale

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