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January 2011$2.00BusinessBusiness
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7 Tips for Landing an SBA LoanBy Rachel Zippwald
Small businesses seeking financingwere recently able to take advantage ofa number of Special Small BusinessAdministration incentives, such as thewaiver of certain fees. However, whileSBA loans are available, it may take abit more work to obtain one and banksare requiring more information thanthey have in the past. I recommend thefollowing few tips to facilitate gettingyour SBA loan approved.
1. Provide details on exactlyhow much financing you need andhow you will use it. Banks likespecifics, so be prepared to provide aprecise dollar amount and give detailsof how you will use the funds. Forexample, if you’re seeking $125,000 toexpand your business, explain to yourlender how you will use the funds, suchas you need $75,000 for working capi-tal to support three months of expenses,and another $50,000 for seven net-worked computers and a server.
Banks are impressed with research,so provide a written quote for the equip-ment. If you’re planning to consolidatedebts and refinance for a longer term,provide copies of your promissory notesand state how much you think you cansave with the refinance. Detailed loan
amounts with copies of bids, promis-sory notes or proposals can helpstrengthen your loan package becauseyour lender can understand the factsbacking up the request.
2. Provide information aboutcompany management. When bankslend money, they like to understandwho runs the company and to be famil-iar with their backgrounds. This is akey factor in presenting your loan forapproval. Help your lender by providinga resume for each owner or key employ-ee and describe their functions andresponsibilities. If certain key positionshave not yet been filled, include a thor-ough job description of the type of per-son you are seeking. This will confirmfor the lender that you have analyzedyour needs and have determined therequirements of the position.
3. Be prepared to offer collater-al. The SBA requires collateral to fullysecure your loan, to the extent that it isavailable. If you own a home, you willlikely be asked to pledge it. The SBAmay also request a lien on your busi-ness assets and may require life insur-ance on sole owners of a business. Mostloans made by banks are secured loans,and therefore approval may be contin-gent on a guarantor who is willing tooffer collateral.
4. Detail your credit history andcredit score. Your credit score is anintegral part of the loan process becauseit illustrates the ways in which you han-dle your other obligations. Your bankwill eventually run its own credit report,but if you can provide information priorto them doing so, you can discuss anyissues ahead of time. If you don't knowyour credit score, take the time toresearch it on the Internet, where low-cost reports are available. If you've hadproblems such as identity theft, bank-ruptcy or divorce, you’ll want to discussit with your lender up front and provideproof that issues have been resolved ordischarged.
5. Provide complete copies of taxreturns, financial statements andbank statements. While it can be timeconsuming to gather these documents,your bank will want to know everythingabout you and your business if they areto become, in essence, your financialpartner. One way to streamline theprocess is to scan your financial docu-ments and provide them to your lenderin the form of a disk or a flash drive.Your lender may even be willing toaccept your documents via email.
6. Explain how you’ll achieveyour projections. Now is the time tobrag about you and your business and
to sell your lender on your vision andforecasted success. If customers haveexpressed a desire to do business withyou, give your lender a copy of theircorrespondence. Prove to the lender thata market for your product or serviceexists and demonstrate the validity ofyour sales and expense figures. If yourCost of Goods Sold (COGS) has histori-cally been 65% and you can lower themto 55%, provide details of your calcula-tions. If the loan for which you areapplying is intended for a new piece ofequipment that will allow you to reduceyour staff needs, describe how this willoccur and show the math.
7. Expect questions and bepatient. Your lender needs to connectwith your story and business and willappreciate your assistance in doing so.Take the time to thoroughly explain thenature of your business, your visionand your background. Your banker willlikely be presenting your loan approvalto other parties, so he or she will needyour help in making your case. Theprocess may be time consuming, so ithelps to be patient. Feel free to requestan estimated time frame for approvaland respect that the projected date mayslip a bit. It’s best not to call or emailyour lender frequently - remember thatin lending, no news is often good news.
Rachel Zippwald is a vice presidentand SBA business development officerfor California Bank & Trust. On anationwide basis, California Bank &Trust and its parent, Zions Bank, areamong the largest SBA 504 lenders inthe nation. Rachel has been involved inSBA Lending for 23 years.
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Is the CFO or Bank Responsible for Cybercrime?By Ren Carlton
It is late Friday afternoon. Beforeyou leave for the weekend, you need tomake your weekly vendor payments. Youhappen to glance at your bank balancewhile you prepare your electronic dis-bursements. The balance is $0. How canthat be? There should be thousands.What happened!
You later discover that a cyber-hacker gained access to your corporatebank accounts. All of your available cashis now gone. Who is responsible? Isn’tthis the bank’s fault? The answer maysurprise you.
Cyber-criminals are now creating“official” looking emails and sendingthem to employees. These emails giveinstructions to click on a link or open anattachment. By following these instruc-tions, it allows the hacker to access pass-words, usernames, and account informa-tion. Once obtained, the hacker uses thisinformation to login to banking websitesand seize cash. The hackers typicallydisperse the funds into different over-seas bank accounts in small incrementsin order to avoid detection.
Many of these companies blame thecriminals and ultimately the bank. Thecompanies believe that the bank shouldbe accountable, since the criminals stolethe funds from the bank. Why should thecompany be responsible, since the bankmistakenly released funds via animproperly authorized transaction?
However, banks typically make theargument that they indeed followedproper processes. They say that the CFOshould have had better controls, that theCFO was careless with passwords andrisk management. Therefore, the theftsare a result of the CFO’s carelessness,and it – not the bank – is at fault.
Who truly is at fault is somethingfor the courts to decide. In the meantime,a company can establish controls to min-imize this type of risk. Safeguardsinclude:
• Use of a company dashboard tomonitor cash on a weekly basis. Thesooner a problem is identified, the better.
• Separation of duties in theaccounting department to minimizeerrors and fraud. When multiple peopleare properly allocated across all of acompany’s accounting processes, thesystem naturally catches identifies andresolves issues.
• Risk management and the use ofinsurance to reduce exposure to cyber-theft.
A good CFO anticipates problemsthroughout the finance department. Heor she also implements preventativemeasures before issues arise. Doing socan protect both the business bankaccounts and the banking relationship.
Ren J. Carlton, CPA, CSMC is thepresident of Dynamic Advisory Solutionsoffering comprehensive financial man-agement solutions to help clients plan forthe future, manage overall business per-
formance and achieve their growth andprofitability goals. His bookProfitpreneurship debuted as the #1Business Plans book on Amazon.com inMay of 2010.
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Baker College Celebrates 100 Years of PreparingStudents for Successful Careers
Statewide – Ever since Bakeropened its doors to 150 students in1911, its mission – to provide higherquality education and training thatenables graduates to be successfulthrough challenging and rewardingcareers – has never changed.
Today, Baker College is the largestprivate, not-for profit college inMichigan, which allows investment instudents rather than focusing on share-holders, thus helping to maintainaffordable tuition. Baker College servesmore than 43,000 students on 12 cam-puses, including Baker College Online,and in four satellite locations. It grantscertificates and associate, bachelor'sand master's degrees in business,health sciences, education and humanservice, and various technical fields, aswell as a doctorate of business adminis-tration. In addition, on average, morethan 97 percent of its available gradu-
ates are employed.According to Baker College System
President and Chief Executive Officer F.James Cummins, these positive statisticsare the result of careful planning anddirection to make the employment of itsgraduates a primary focus.
“Every Baker College action,” saidCummins, “from curriculum design tostudent services to management deci-sions, is planned with the needs of twogroups in mind: our students and theemployers who hire them.
“To meet the needs of our two cus-tomer groups, we are constantly devel-oping new educational programs andinnovative delivery methods.Throughout our 100 year history, wehave been preparing students for suc-cessful careers by introducing new pro-grams, opening new campuses, con-structing new facilities and embracinginnovative technologies that haveallowed us to deliver our curriculumthroughout Michigan, across the UnitedStates and around the world.”
In the BeginningWhat is now Baker College was cre-
ated by the merger of two different butvery similar colleges. In 1888,Woodbridge Ferris who was inspired bya boom in the lumbering and shippingindustries, founded Muskegon Collegeon the west side of the state. Shortlythereafter in 1911, Eldon E. Baker,motivated by the great automotive fac-tories, founded Baker BusinessUniversity in Flint.
Both men shared the same philoso-phy and mission to provide studentswith the skills needed for employmentin the great industries of the era.
After 54 years of separate but par-allel existence, Baker BusinessUniversity was purchased by RobertJewell in 1965. Jewell, who representeda group of Muskegon businessmen,brought the two institutions togetherunder a single management group.
The Formative YearsIn the 1970s, both colleges received
authorization to grant an associate of
business degree and Baker BusinessUniversity was renamed Baker JuniorCollege. In 1974, Baker Junior Collegebecame a non-profit organization.
The 1980s saw a tremendousamount of planned growth. Approvalwas granted to offer an associate ofapplied science degree, a branch campusof Baker Junior College was establishedin Owosso, and Muskegon College beganoffering extension classes in Cadillac.After receiving regional accreditationfrom the North Central Association ofColleges and Schools, the three maincampuses merged to form the BakerCollege System. In 1986, the BakerCollege System was authorized to offer abachelor of business administrationdegree and Baker Junior College becameBaker College of Flint. The Flint campusmoved to a newly renovated property,which today remains its present site.
Major Growth in the 1990s• Baker College acquired locations
in Pontiac, Mount Clemens, Port Huronand Jackson
• Muskegon College changed itsname to Baker College of Muskegon
• A new 40-acre campus site openedin Cadillac
• The Pontiac campus relocated andbecame Baker College of Auburn Hills
• Cass City and West Branch exten-sion sites were added as satellite cam-puses of Baker College of Flint
• Baker College of Muskegon movedto a new 40-acre site
• The Center for Graduate Studies,the System’s first graduate degree pro-gram, was launched
• Baker College Online, a “collegewithout walls” was created, whichenabled delivery of courses to studentsentirely via the computer
The 21st CenturyThe turn of the century marked
record enrollment numbers, studentachievement, and continued significantprogram and facility expansion.
In 2000, Baker’s Mount Clemenscampus relocated, became Baker Collegeof Clinton Township, and began offering a
nursing program. In 2001, The Center forGraduate Studies was granted full accred-itation by the International Assembly forCollegiate Business Education.
In 2002, enrollment topped 25,000,making Baker the largest private collegein Michigan. Elementary and secondaryteacher preparation programs weregranted preliminary approval, and nurs-ing programs were added at Flint andOwosso.
Baker College of Allen Park, the“downriver campus,” opened its doors in2003, offering certificates, associate andbachelor’s degree programs.
The mid 2000s saw more expansionwith the addition of a Coldwater exten-sion. Port Huron signed a memorandumof understanding with Lambton Collegein Sarnia, Ontario, to offer an acceleratedBA degree in Canada. In addition, theBaker College Center for GraduateStudies received approval to offer a doc-tor of business administration degree.
In 2007, the Auto/Diesel Institute ofMichigan was created on the Owossocampus. In 2008, Baker College ofMuskegon broke ground for its newCulinary Institute of Michigan in down-town Muskegon and the Flint campusbegan renovating a closed auto dealer-ship, transforming it into the Center forTransportation Technologies. Both facili-ties opened in 2009.
On the student achievement front,Baker College of Flint IT students tookfirst place in the 2008 National StudentCyber Defense competition. Theyreturned in 2009 to successfully defendtheir crown.
In fall 2009, Baker College officialsreported a record enrollment of morethan 43,000 students.
Most recently, in fall 2010, BakerCollege of Cadillac opened its new Centerfor Transportation and Technology.
The Next 100 Years“Our continuous growth proves that
more and more students view a careercollege as the right choice for an educa-tion, and our near-perfect employmentrates underscore the business communi-ty’s support of our efforts,” saidCummins.
“However, like any good businesswe don’t plan to let our momentum slow.The coming years promise more innova-tion in the delivery of our classes andprograms, expansion and upgrading ofour facilities and campuses, and a con-tinued focus on our online programs.”
To learn more about Baker College,visit www.baker.edu.
4
Publisher: Gary Kralapp
Business DevelopmentSenior Vice President: Jim LroySenior Vice President: Diane LaPreze
Contributing Writers: Rachel Zippwal,Ren Carlton, Deborah Sweeney, KennethH. Marks, David Quade, Suzie Pierce,William F. Donahue, Rafi Mohammed,Coley Dale
Managing Editor: Carol M. KralappAssociate Editor: David CalkinsPrinting/Distribution: News Web PrintingAccountant: Michael Tawney & CompanyLegal: Miller Canfield Paddock & Stone
The monthly published Business Update Inc.®
all rights reserved. No portion can be reproducedwithout the written permission of the publisher.The management of Business Update Inc.® is notresponsible for the opinions expressed by its writ-ers or editors. Nor is it responsible for any infor-mation contained on any schedule or calendar. Weinvite editorial suggestions, reader participation,or article submissions. We reserve all rights incommunications sent to our editorial staff asunconditionally assigned for publication or anyother use Business Update Inc.® in its sole discre-tion, shall deem appropriate. All submissions aresubjected to our unrestricted right to edit and com-ment. For further information concerning this pub-lication, or past issues, please write or call:
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Communication & IT 5
Top 10 Tech Trends to Watch in 2011Farmington Hills – A mix of tech-
nology and business topics made thisyear’s list of the Logicalis Top 10 TechTrends to Watch for 2011, the company’ssecond annual study of the social mediaconversations of top IT executives. Thestudy found that chief information offi-cers and chief technology officers areusing social networking to discuss morethan just the hottest technology trends;as popular social media tools mature, ITprofessionals are also using it to discussbusiness and management issues thatcan impact the way they run their organ-izations, as well as job and career issues.
1. Cloud computing. Cloud hasbecome a huge buzz word in the indus-try, but if you peel back the marketingfluff and hype, cloud computing simplyrepresents a delivery model for con-suming IT as a service. Whether that“IT as a service” is infrastructure, plat-form or software, it is just another wayfor an IT organization to deliver thetechnology necessary to run an organi-zation’s business.
2. HR issues. (This year’s sur-prise?) Social media discussions includ-ed a wide range of topics that affect IT
managers daily including Internetusage policies, recruitment, retention,motivation, conflict resolution and gen-eral staff management.
3. Time management. Recognizingthat time is the only commodity theycan’t replace or replenish, CIOs and CTOsindicated in a multitude of conversationsthat they were feeling “overworked,”“understaffed” and “spread too thin.”
4. Company direction and plan-ning. IT executives are focusing theirattention beyond technology, and theirconversations indicate they are lookingat the overall corporate strategy.
5. IT security. An evergreen topic ofconversation is the security and privacyof corporate infrastructure and data.
6. Software management, licens-ing, maintenance and purchasing. AsIT executives embrace new methods ofconsuming software as a service, they arequestioning existing software paradigms.
7. Social media. As they becomemore comfortable with social media,technology executives have adopted itfor attending conferences, sharinginsight and asking for peer guidance ona wide range of topics including how to
create and enforce policies related tosocial media usage. On the negative side,IT executives expressed concerns aboutsecurity, privacy and the risk of virusesintroduced via social media.
8. Mobile technology. Despite con-cerns over securing and managingdevices in the workplace they don’t con-trol, IT executives recognize that therapid adoption of smart mobile deviceplatforms (Android, Apple, Blackberry),combined with the undesirable expenseof employee computing, has created aperfect storm for a mobile computingrenaissance. Slimmed-down, low-cost,desktop-replacement mobile applicationsare making their way out of the app storeand into the enterprise.
9. Network and system mainte-nance. A change in job focus is causingIT executives to rethink how and wherethey deploy their staffs. Strategic out-sourcing of non-core IT tasks is in vogueand savvy IT executives are assessingthe impact and freedom it can provide.
10. Jobs and career related discus-sions. As IT executives adapt to newbusiness directions and adopt the latesttechnologies, they are aware that the
nature of their careers has changed. It’snot “business as usual” with IT execu-tives focused strictly on technology. Theyare seeing a greater emphasis on busi-ness acumen, strategy and tacticsenabled by technology. The requirementto justify and build real financial-basedbusiness cases for IT spending hasbecome the norm.
“The list shows that technologyexecutives are discussing much morestrategic topics than last year. This isindicative of the greater acceptance ofsocial networking as well as the newspeed of business – technology man-agers value their peers’ thoughts andthey need input quickly as they makedecisions,” said Lisa Dreher, Logicalisvice president of BusinessDevelopment. “As we did last year, weare looking at using this information tohelp Logicalis better serve our cus-tomers. Based on the data, we know ITexecutives are implementing new tech-nologies with an eye toward the impactthese hold for the structure and man-agement of their IT organizations.”
Half of West Michigan Companies Plan IT HiringHolland – Paragon Recruiting, a
local technology recruiting firm, has justreleased its new Technology EmploymentForecast for the first half of 2011. Theinformation in this forecast can beindicative of the overall business climatein west Michigan and help companiesmake their strategic decisions. Nearly100 mid and west Michigan firms ofvarying sizes and industries participatein this semi-annual forecast. Most havebeen faithful participants since the firstforecast for 2003.
Paragon’s chief recruiting officerBeth DeWilde says, “Our area reallyseems to be improving economically. Iam very busy finding candidates for a
variety of firms, but as always theneeds are for very specific kinds oftechnology skills.”
Noteworthy findings include:• Nearly one-half of west Michigan
companies report they will be addinginformation technology staff during thenext six months.
• Two-thirds of small companies(fewer than 50 employees) plan to hirenew IT.
• Computer consulting and profes-sional service companies will be doingthe most hiring.
• Junior level staffers are in highdemand for the first time in this survey(good news for recent graduates).
• New hiring will be especially highin applications, but all disciplines andlevels of IT workers will be needed in allkinds of businesses.
Outsourcing of IT projects wasreported higher than ever before withlocal outsourcing still the most popularand many companies reporting multipleoutsource locations. Participating firms
also suggested an expansion of the sur-vey to ask about IT pay rates and use ofIT interns. Paragon learned that 40% ofthe responding firms will be increasingpay for IT staff, and just over one-thirdof their companies will use IT internsduring the next six months.
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Finance/Insurance BriefsGrandville – Berends Hendricks StuitInsurance Agency, Inc. has been chosenas a 2010 Best Practices Agency by theIndependent Insurance Agents &Brokers of America for the fourteenthconsecutive year. They are one of only sixagencies headquartered in Michigan, andthe only agency in West Michigan thisyear to have attained this elite status.
Grand Rapids – Echelbarger,Himebaugh, Tamm & Co. PC (EHTC)announced the promotion of EHTCTechnology Solutions consultantDamian W. Casey to EnterpriseResource Planning practice manager.
Rockford – The directors of WolverineWorld Wide, Inc. have declared a quar-terly cash dividend of $0.11 per share ofcommon stock. The dividend is payableon February 1, 2011 to stockholders ofrecord on January 3, 2011. The dividendis equal to the last quarterly dividendand reflects an indicated annual divi-dend of $0.44 per share.
Grand Rapids – Laina Mills, an invest-ment associate with Legacy Trust, hasbeen promoted to portfolio manager andreceived her Certified FinancialPlanner™ certification.
Grand Haven –Cecil MacLaren hasj o i n e dM a c a t a w aBank as vicepresident, sen-ior commercialloan workoutspecialist locat-ed at the GrandHaven office.
Grand Rapids –The applicationprocess is nowopen forVarnum's thirda n n u a lDiversity andI n c l u s i o nS c h o l a r s h i pP r o g r a m ,which will pro-vide $11,000in scholarshipsto studentscommitted todiversity with-in the legalfield. The pro-gram includesfour scholar-ships: two forfirst-year laws t u d e n t s($4,000 each)and two forundergraduatejuniors toattend an LSATP r e p a r a t i o ncourse valuedat up to$1,500.
Columbus, OH – In late December,Huntington Bancshares Incorporatedpriced both the equity and debt offeringsthat it announced earlier in the month.Huntington then moved to undertake theofferings with the designated intent ofrepaying TARP and using the proceedsof the offerings, together with otheravailable funds, to repurchase all $1.4billion of the Series B Fixed RateCumulative Perpetual Preferred Stockthat it issued to the U.S. Department ofTreasury under its TARP's CapitalPurchase Program. Huntington thenintroduced a series of investments andinitiatives it will build upon followingTARP repayment including Fair PlayBanking (a 24-hour grace period forclients to alleviate overdraft problemsbefore fees are assigned), a $4 billioncommitment to small business lendingover a three-year period, a 17% expan-sion in its branch network by anentrance into supermarket banking,expanded hours and added jobs.
Grand Rapids – Miller Johnson wel-comed Aliyya A. Clement as an associ-ate in their Grand Rapids office. Clementis beginning her practice in employmentand labor.
Grand Rapids – The CFA West MichiganSociety recognized those individualswho passed Level I of the CFA Exam:Andrew Citron, Douglas Fischer, OlgaHejl, Anugrah Joshi, Brandon Postma,Robert Scholl, Namni Shekhar, MarkTanis and Philip Vergunst. Individualswho passed Level II of the CFA Examinclude: Brandon Bajema, SeanChristy, Arnold Frias, Mark Hoppe,Daniel Lupo, Jeremy Moore, MichaelSchrauben and Benjamin Viemeister.Individuals who passed Level III of theCFA Exam include: Nathan DeBoe,Alan Kort and Hongyan Li. Individualswho were awarded the CFA Charterinclude: Jason Balgavy, GregoryBosch, Benjamin Carlson, DavidHodge, Jaime Mauppin, StevenOsterink, Daniel Rinzema and WeiSun.
Grand Rapids – Miller Johnson welcomedNeil J. Marchand as an associate in theirGrand Rapids office. Marchand comesfrom the United States District Court forthe Western District of Michigan where heserved as a judicial law clerk for TheHonorable Gordon J. Quist.
Middlebury, VT and Midway, UT – eDOCInnovations and affiliate partnerCorporate One FCU recently welcomedSeven Seventeen Credit Union(Warren, OH) to its rapidly-growingcommunity of CheckLogic users. Theelectronic document management CUSOalso recently welcomed FrankenmuthCredit Union as a stockholder andrecently announced that Sioux EmpireFCU (Sioux Falls, SD) has implementedCheckLogic as its Check 21 solution.
Grand Rapids – Miller Johnson wel-comed Stephanie J. Cebulski andChristopher J. Schneider as associatesin their Grand Rapids office. Cebulski iscontinuing her practice in employmentand labor.
Grand Rapids – Adtegrity.com, Inc. haspurchased, renovated and moved intothe second floor of 38 Commerce Avenuein downtown Grand Rapids, a newbuilding of mixed use, mid-rise commer-cial and residential spaces. The onlineadvertising network utilized theEconomic Development Foundationand the SBA 504 program while partner-ing with Fifth Third Bank.
Kalamazoo – Elliott J. R. Church hasjoined the firm of Kreis, Enderle,Hudgins & Borsos, P. C. as an associatein the Grand Rapids office. His practice isfocused primarily on business transac-tions and technology law.
Lansing – Attorneys John J. Lynch ofLynch, Gallagher, Lynch & Martineauand Byron P. Gallagher, Jr. of theGallagher Law Firm are merging theirlaw practices effective January 1, 2011.The firm will do business as LynchGallagher and focus on oil & gas, realestate, banking, litigation, probate,estates and bankruptcy law. The firmwill maintain offices in Mt. Pleasant,Lansing, Grand Rapids and Detroit.
Grand Rapids – Gary Kuhlmann andSteve Stephan have purchased theCulver’s Restaurant located at 4820Alpine Avenue in Comstock Park utiliz-ing the SBA 504 loan program throughthe Economic DevelopmentFoundation and partnering withMacatawa Bank.
6
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To a small busi-ness owner, taxespresent an unavoid-able drain on profitand growth. As aresult, many entre-preneurs accept thehassle as inevitableand overlook thenumerous ways tomake taxes less cost-
ly. These tips for careful planning andpreparation can help avoid the stress oftax season and also prevent the only thingworse than paying taxes: a tax audit.
1) Make the Decision to Create aBusiness Structure. The most importantstep in reducing tax liability and the like-lihood of a tax audit is to create an officialbusiness structure. When you run a busi-ness without an official structure, yourbusiness is automatically a sole propri-etorship, meaning you list all of yourbusiness income and expenses onSchedule C of your personal tax return.Schedule C is the second most highlyaudited form and is audited almost twiceas much as the national average. SCorporations, on the other hand, enjoy avery low risk of audit, 0.3%. By incorpo-
rating as an S Corporation, you lower yourrisk of audit below the national averageby 5 times and below the risk of filing asa sole proprietor by 9 times!
2) Find a Tax Friendly BusinessStructure. Next you should look at thetype of business structure that works bestfor you. The corporation is typically themost tax friendly but provides someinflexibility in operating. The LLC pro-vides the most operation flexibility butcan result in some unfavorable tax results.In picking a business structure, pay atten-tion to the details. While most do not,some forms of business entities requirethat the business pay taxes on money itearns throughout the year and that thebusiness owner pay taxes on income he orshe receives. This results in a double tax-ation scheme that costs the businesstwice. When structuring your business,make sure you choose a form of businessthat will avoid this double taxation andhelp you meet your tax saving goals.
3) Plan Ahead. After structuringyour entity, the next step is to build a staffof business professionals. Hiring anaccountant to manage your taxes helpsyou itemize your expenses into the mosttax efficient filing. If you can’t afford an
accountant, look into tax preparation soft-ware as it will do many of the same thingsan accountant would. Also consider hiringa bookkeeper to manage your financialsituation which will allow you to focus onrunning other areas of the business.
Whether or not you have an account-ant or a bookkeeper, maintainingextremely accurate records and learningthe potential business deductions is key topaying lower taxes and avoiding a taxaudit. There are many deductions forsmall business owners that the averageentrepreneur may not know about it.Knowing what deductions are allowableand keeping meticulous records willdecrease tax liability. It’s also wise to beaware of the latest laws as they relate tosmall businesses and tax deductions. Thesmall business jobs bill includes a numberof important tax provisions, including lib-eralized and expanded expensing for2010 and 2011, revived bonus deprecia-tion for 2010 and five-year carry back ofunused general business credits for eligi-ble small businesses.
4) Be on Time and Accurate.Finally, make sure your taxes are doneproperly and on time. An accountant ortax preparation software will be helpful
here too to ensure that you deduct whatyou can and pay what you must, all in atimely fashion. If you can’t have yourtaxes done by the deadline, filing anextension before the deadline avoids anypotential problems with the IRS. Makingestimated tax payments will help guaran-tee that when tax day comes, the moneywill be available. If you don’t have moneyto pay your taxes, the IRS offers a varietyof programs to help you out, includingpayment and settlement plans.
Optimizing your tax liability andlowering your risk of audit by the IRSdoesn’t have to be complicated. If youstart by creating the business structurethat’s best for your business and payingattention to small deductions that cansave you big, a more joyful tax seasonwill be waiting for you!
Deborah Sweeney is an advocate forprotecting personal and business assetsfor all consumers and is the current CEOof MyCorporation Business Services, Inc.(MyCorporation.com). She also hasserved as an adjunct professor at theUniversity of West Los Angeles and SanFernando School of Law in the area ofcorporate and intellectual property law.
Deborah Sweeney
Tax Strategies for the Small Business Owner
Local Non-Profit Begins MicroloanProgram, Area Businesses Stand To Gain
Grand Rapids – Grand RapidsOpportunities for Women (GROW) recent-ly secured funding to pilot a small-busi-ness microloan program, the goal of whichis to provide loans ranging from $1,000 to$10,000 to qualified women who own andoperate small businesses in greater GrandRapids and surrounding areas.
Whether for computers, storefrontimprovements or additional capacitybuilding, microloans provided by GROWcan be used for any business asset.
Entrepreneur Deborah Tacoma will investher loan in a website redesign forFreedomwand.com, a Zeeland-based com-pany that provides home health productsfor individuals with limitations or disabil-ities. Valerie Hudgins, owner ofPartnership to Work, intends to purchasecomputer equipment and software whichwill make her job-training program func-tion more efficiently. Both women antici-pate taking full advantage of theirmicroloan opportunities.
Funded by an anonymous donor,and the first of its kind in Grand Rapids inseveral years, the GROW microloan pro-gram is seeking applications from otherqualified entrepreneurs with a need andinterest in growing their business.
Businesses hoping to receive loansmust be 100% women-owned andlocated in greater Grand Rapids.Interested entrepreneurs should writeto [email protected] or call616.458.3404 for more details.
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8Exits & Acquisitions
By Kenneth H. Marks
Merger and acquisition (M&A)transactions can be a viable alternativefor accomplishing a number of strategicobjectives in the context of building andrealizing value for emerging growth andmiddle-market companies (those fromstartup to several hundred million dollarsin revenue).
Let’s take a high-level view of thebuy-side and sell-side processes, and aframework for thinking about and plan-ning each.
ExitsIn many instances the distinction
between selling a company (i.e. an“Exit”) and raising capital is measured bythe amount of equity sold and the con-tractual rights obtained by the buyer.Financing growth raises the issue oflong-term shareholder objectives, whichmany times involve eventual liquidity. Asthe wave of business transitions drivenby baby boomers planning their legacyand succession continues, some share-holders are confronted with a multifac-eted decision of how to finance the con-tinued growth of their business, createliquidity for their owners and lay thefoundation for operations independent ofthe owner/founder.
Others see the opportunity to buy-outpartners or create some liquidity whilestaying in the game for what may bedeemed a second bite at the apple. This isthe concept of selling a controlling interestin a company to a financial buyer (i.e., aprivate equity group) and rolling over orkeeping a minority interest until a subse-quent sale or liquidity event happens whenthe company is expected to have grown invalue (under the watch of the new ownerswith their capital). There are numerousexamples where the sale of the minorityinterest in the follow-on transaction (threeto five years from the first transaction)resulted in as much economic gain as theoriginal sale to the financial buyer.
Shareholders and partners may finda full or partial Exit attractive for manyreasons:• Diversifying away the risk of having toomuch personal net worth in a single asset.• Minimizing the risk of growth byobtaining a financial or strategic partner.• Buying-out passive partners and mak-ing room in the capital structure for man-agement and employees without dilutionto exiting active shareholders.
Several potential solutions exist,including recapitalization, sale to a finan-cial buyer while keeping a minority stake,
or an outright sale to a strategic or finan-cial buyer with contractual rights forsome level of future performance (andthere are many variations).
RecapitalizationGenerally a recapitalization will
involve a lower cash-out (as a partial Exitor staged Exit) for the active owners thana buyout (which involves a change ofcontrol). A recapitalization will most like-ly be focused on changing the relativemix of debt and equity with an eyetoward the growth objectives of the com-pany and the required go-forward capital.For example, a leveraged recapitalizationwill most likely increase the debt of thecompany in exchange for distributions,dividends, or purchase of equity.
AcquisitionsAcquisitions can meet a number of
goals if approached and executed as partof a long-term strategy. Some of the typ-ical reasons executives pursue acquisi-tions include:• To accelerate revenue growth.• To enter an adjacent market space.• To expand into a new geography orobtain a physical footprint in a new loca-tion.• To access new customers.• To access technology.• To strengthen the pool of talent andcapabilities.• To complete or augment a product orservice line.• To reduce costs.• To capture market share.• To prevent a competitor from gainingthese advantages.
The first phase of a typical acquisitionprocess is finding a target company to buy.This begins with the strategic plan thatshould lay the foundation to determinemany of the parameters and the focus ofthe process. The second phase of theprocess is to structure the deal, close thetransaction and integrate the business.
The financing strategy to support theacquisition should initially be thought ofin the context of the overall acquisitionprocess and be defined as part of theacquisition strategy (phase one), under-standing that the process will evolve andis somewhat iterative as knowledge isgained from the marketplace. If your com-pany is cash flush or the acquisition tar-get is immaterial in value, the financingstrategy may be as simple as funding thetransaction from operational cash flow orcash reserves. However, if the dealrequires external funding, managementmust consider a financing strategy whichtypically begins with understanding the
acquiring or buying company. Thisinvolves:• Determining its valuation and financialstrength.• Establishing financial objectives andbenchmarks for vetting possible acquisi-tions.• Determining parameters around howmuch the buyer can afford.• Conducting internal discussions aroundan ideal or preferred deal structure.• Establishing relationships with financ-ing sources and obtaining buy-in regard-ing the acquirer’s plans.• Obtaining evidence for potential sellersof the buyer’s ability to finance and closea deal.
From these parameters, managementcan then think about financing a specifictarget company… which is a function ofthe value of the target, likely cash flow ofthe target, the deal structure and the inte-gration strategy.
Start by assessing the value of thetarget acquisition as a stand-alone busi-ness using traditional valuationapproaches; Then value the acquisition inthe context of your business giving con-sideration to cost savings and lift thatmay be obtained on a combined basis.Another metric that may be useful in theprocess is to determine the financeablevalue. This is the amount that can be paidusing external financing based on theassets and cash flow of the target.
The deal structure and financingstrategy are developed by weighing anumber of factors to find the optimumsolution to meet the objectives of the par-ties involved. Among other things, thesefactors include the integration strategyand the valuation gap - the value thatyour company is willing to pay and whatis required to get the deal done.
Management should keep in mindsome core concepts as it takes an objec-tive view and embarks on the acquisitionprocess:• Begin with the end in mind; set clearobjectives and benchmarks to gaugeattractiveness of potential target compa-nies and particular deals.• Develop the financing strategy up-frontand establish relationships with likelysources of financing.• Terms are likely more important thanabsolute valuation.• Align the financing strategy with theoperating/integration plan and dealstructure.• Focus on value creation.
Regardless of the eventual solutionor desired outcome, start with the sameprocess. The essence of the front-endsteps in the selling or financing process isanalysis and understanding of the share-holders’ and company’s objectives, finan-cial and competitive position, growthstrategy and initiatives, and valuation.
Keep in mind that whether selling theentire company or raising a tranche ofgrowth capital (in the form of debt or equi-ty), what you are really selling is thefuture cash flow of the business. Whilepast performance provides credibility tomanagement’s claims, future cash flow isthe foundation for valuation and usuallythe primary reason for buying or investingin a company.
Kenneth H. Marks is founder and amanaging partner of High Rock Partners,providing growth-transition leadership,advisory and investment. He is the leadauthor of the Handbook of FinancingGrowth published by John Wiley & Sons.You can reach him [email protected].
JJack SSnyder IInc25 years & over 400 M&A Transactions.
Specializing in small manufacturing, distributors and service business.
616-889-8974
MM&&AA
JJSSII
9Rising Fees and the Loss of Free Checking?
By David Calkins
Last October when Bankrate, Inc.released the results of their 2010Checking Study – an annual survey ofbanks' checking account offerings – theirbiggest findings confirmed what many ofus already knew: free checking accountsare disappearing. The study found thatonly 65 percent of noninterest accountswere free from monthly fees or balancerequirements in 2010 – a fall from 76 per-cent the year before. With this reversal inthe industry-wide trend toward the wide-spread adoption of free noninterest check-ing, many consumers are beginning to seemonthly service charges for the first timein nearly a decade.
Rising fees across the board dominat-ed the trends highlighted by the study.Avoiding monthly service fees is gettingharder as the minimum average balancesfor accounts requiring them increasedsharply. Service fees have gone up – thefirst year-over-year increase sinceBankrate's first checking study in 1998.ATM fees are drifting higher too (from$2.22 to $2.33 on average), and nonsuffi-cient funds or “bounced” check fees hit anew record high, just passing the $30 mark.
Greg McBride, senior financial ana-lyst for Bankrate.com, says that it’s hardto pinpoint the exact causes of this feerenaissance, but a wave of new govern-ment regulation is a big factor; specifical-ly, the new rules contained in theElectronic Funds Transfer Act –RegulationE or “Reg-E” as most of us know it –which bars banks from charging for over-draft protection unless a customer opts in.
It’s worth noting though that justbecause Reg-E has been passed, doesn’tmean that massive numbers of consumersare indeed choosing to opt out. Arthur C.Johnson, chairman and CEO of UnitedBank, commented, “In banks that have
asked customers whether they want to optin or opt out of the service, the data I'veseen is that customers who can use it areoverwhelmingly choosing to opt in. Youget down to the end of the month, you'rewaiting for your paycheck but your rentor mortgage is due – you want to pay it!Most people, given the fact that the checkhas appeared, are probably going to payone way or another and would prefer tohave the check honored. It’s a usefulfinancial service that people have beenutilizing for a while now.”
Still, the national regulation of over-draft policy, no matter what way youapproach it, will undeniably have somenegative impact to a bank’s stream of rev-enue, and it’s certainly not the only factor.As Johnson at United Bank explains, “Theway we get paid for our participation in alot of electronic transactions is going tochange. Instead of the marketplace deter-mining what those charges are, they’llrequire the Federal Reserve Bank to issueregulations. The first proposal of those reg-ulations has already come out, and it's esti-mated that it's going to reduce some seg-ments of our income by up to 90 percent.That's why you're seeing people saying ‘nomore free checking;’ some of our sources ofrevenue are going to disappear.”
But while Reg-E and federal regula-tion on electronic transfer may have a sig-nificant impact on banks’ profitabilitynow and in the future, banks have histor-ically generated most of their revenuefrom loans. However, things aren’t look-ing bright there either. Tightened lendingpolicies coupled with a lack in consumerconfidence, financial instability and a“wait and see” mindset for many busi-ness owners has reduced the influx ofinterest generated from loaned capital.
But not all is gloom and doom.“Banks are seeing an increase in depositsas customers show a preference for imme-
diate access to their cash as well as thebenefit of additional FDIC protection andless appetite for investment risks,” saidLeonita Hoefler, AVP and retail managerat the Grand Rapids Office of MichiganCommerce Bank. “Additionally, whilemany banks have increased their serviceand account fees to make up for other lostrevenue, many small banks, especiallythose with single locations, don’t have theexpenses that the larger banks havebecause they don’t invest in brick andmortar at every 5 mile radius. If con-sumers are not happy with their currentbank either because of fees or lack ofservice, they would do well to shop ussmaller banks!”
This isn’t to say that all larger banksare adding new fees. Chemical Bank, thesecond largest bank headquartered in thestate of Michigan “hasn't made anychanges to account structures in the wayyou're talking about,” said John Hatfield,the Bank’s marketing director. “We stillhave our popular ‘ChemFree’ CheckingAccount that we've had for years, and inthe last 2 to 3 years, we began offering
our MI Savings Account which allows youto earn interest on balances without beingrequired to keep a minimum in theaccount. We are supporting the launch ofadditional products and services to pro-vide more account options, but our focusreally remains on taking care of cus-tomers in the best way that's possible.”
These new products and services arenot only demonstrative of the progressionof technology, but are useful ways toattract new clients. More and more peopleare demanding mobile banking options,financial planning software and services,digital access to their account informationand personalized customization of theiraccount settings. As people continue totighten the grip on their pocket books andaccount fees continue to rise, consumersare going to start shopping around to getthe best bang (and bank) for their buck.Keeping updated on the cutting edge oftechnology and paying close attention toconsumers’ specific demands will be para-mount; for the consumer, it means the dif-ference between paying more for a serviceand paying more for a service they want.
Conservation Tax IncentiveGrand Rapids – Congress recently
renewed a tax incentive for privatelandowners—especially working familyfarmers and ranchers—who protect theirland with a voluntary conservation agree-ment.
Conservation-minded landownersnow have until December 31, 2011 to takeadvantage of a significant tax deduction fordonating a voluntary conservation agree-ment to permanently protect important nat-ural or historic resources on their land.When landowners donate a conservationeasement to LCWM, they maintain owner-
ship and management of their land and cansell or pass the land on to their heirs, whileforegoing future development rights.
The enhanced incentive applies to alandowner’s federal income tax. It also:Raises the deduction a donor can take fordonating a voluntary conservation agree-ment from 30% of their income in anyyear to 50%; Allows farmers and ranch-ers to deduct up to 100% of their income;Increases the number of years over whicha donor can take deductions from 6 to 16years.
10Finding a Partner in Today’s Financial Environment
In the changinglandscape of busi-ness banking, it hasnever been morecrucial to have theright long-termpartner in your cor-ner than now.Finding the rightfinancial institutionto partner with can
help provide a business with the neces-sary tools that will allow growth andprosperity now and in the future. Whenseeking a new financial institution youshould consider the following questions:
Loan Officer ExperienceHow long has the lender been
with the bank? How long has he or shebeen in the business and are they
familiar with the industry and marketwhich you serve?
Services ProvidedHow broad is the range of services
offered by the bank? (Trust, wealthmanagement, internet banking, cashmanagement, sweep accounts, SBAlending, and others)
Market KnowledgeHow long has the institution been
in your market? Where are they headquartered?Do they provide banking services
to other companies in your industry?Local ManagementIs there local management and can
they make decisions locally? Is the staff empowered to assist
their client base?Will loan decisions be made quick-
ly enough for you to take advantage ofopportunities for your business?
Financial StabilityIs the bank well capitalized and
profitable? Size
Is the bank large enough to growwith your business needs?
LocationsDoes the bank have locations that
are convenient to your business? If not,do they provide a courier service ormobile banking?
ReferencesWhen in doubt ask a trusted client,
friend, CPA or attorney, all of which aregood referral sources.
Now more than ever, choosing theright bank is important to the futuregrowth and success of your business.
Having a strong and consistent relation-ship with your bank and access to fundsfor borrowing can no longer be taken forgranted. Your bank should be a busi-ness partner that can help you reachyour financial goals. If you already havea strong relationship with your bank,you are ahead of the game. If you’reinterested in finding a financial institu-tion that is a better fit for your organi-zation, consider these key questions.
David M. Quade is communitypresident - senior lender at ChemicalBank. In his role, he is responsible foroversight of the Grand Rapids commer-cial loan portfolio and day to day man-agement of the greater Grand Rapidsarea commercial lending staff. Givethem a call at (616) 785-3400.
David Quade
Current Business Trends: Modest Growth ReturnsGrand Rapids – The greater Grand
Rapids industrial economy is experienc-ing modest growth, according to theresults of a monthly survey compiled byBrian G. Long, director of SupplyManagement Research in the SeidmanCollege of Business at Grand ValleyState University.
The survey results are based ondata collected in the last two weeks ofDecember. The survey’s index of busi-ness improvement, called new orders,rose to +31, up from +15. The produc-tion index edged higher to +19 from+18. The index of purchases rose mod-estly to +19, up from +16. The employ-ment index rose to +27, up from +21.
Brian Long said that historically,December has been a seasonally slowmonth because of reduced productionschedules and the Christmas holidays,but December’s report for greater GrandRapids broke the pattern. “Commentsfrom participants who were surveyedare among the most positive we haveseen since our local recovery began inApril of 2009,” Long said.
Long added that the office furnitureindustry is pulling out of the long reces-sion, evidenced by an uptick in neworders in recent months, and industrialdistributors had one of their bestmonths in recent memory. He said auto-motive parts suppliers posted a bettermonth than usual with some electing toforego the usual holiday shutdown.
Long said several factors willdefine the 2011 economy: automotivesales, inflation, interest rates, realestate and unemployment rates. “If theeconomy continues to improve at itspresent rate, we will probably begin tosee more consumer inflation in the sec-ond half of the year. Food prices shouldcontinue to rise, as will the cost of manytypes of consumer services. Gasolinewill probably approach $3.50 per gallonby mid-summer,” he said.
Although home prices are stillfalling at the national level, Long saidthere is evidence prices at the local levelmay have bottomed out and may evensee some modest improvementthroughout 2011. He said more bank-
ruptcies and foreclosures will continueto add more houses to the market. Theunemployment picture for Michigan willremain negative but will probably dropfaster than the national rate if the auto-motive industry continues to improve.
The Institute for SupplyManagement survey is a monthly sur-vey of business conditions that includes45 purchasing managers in the greaterGrand Rapids area and 25 inKalamazoo. The respondents are pur-chasing managers from the region’smajor industrial manufacturers, distrib-
utors and industrial service organiza-tions. It is patterned after a nationwidesurvey conducted by the Institute forSupply Management. Each month, therespondents are asked to rate eight fac-tors as “same,” “up” or “down.” Anexpanded version of this report anddetails of the methodology used to com-pile it are available atwww.gvsu.edu/scblogistics.
First Kalamazoo MinorityBar Association
Kalamazoo – A group ofKalamazoo and Calhoun County arealawyers and judges formally voted onOctober 30, 2010 to establish the area’sfirst minority bar association, The JudgeCharles A. Pratt Bar Association, namedafter Kalamazoo County’s first AfricanAmerican Judge. James L. Liggins, Jr.,an attorney in the Kalamazoo office ofMiller Canfield was voted to serve as itsfirst president. Other officers includeAssistant City Attorney Marcia Jones,president-elect; Attorney MarlaGilreath, secretary; and Attorney LindaRawls, treasurer.
The Judge Charles A. Pratt Bar
Association actively promotes legaleducation, diversification within thelegal community and the professionallegal development of the traditionallyunder-represented within the greaterKalamazoo and Calhoun County areas.
Other current members include:attorneys Amber Beebe, Alisa Parker,Dorphine Payne, Geoffrey Upshaw andSidney B. Williams; Honorable Curtis J.Bell, Chief Judge of Probate (KalamazooCounty); Honorable Alexander C.Lipsey, 9th Circuit Court (KalamazooCounty); and Honorable Carolyn H.Williams (retired).
MMIICCHHAAEELL AA.. TTAAWWNNEEYYINDEPENDENT ACCOUNTANTS
& COMPANY, P.C.Professional services for your Business and Personal needs.
• Accounting • Payroll • Tax •Call us today for courteous, dependable, and rapid assistance
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Communication & IT 11
Communication & IT BriefsGrand Rapids – Advantage SignSupply, Inc. announced the addition ofthe Gfp 63” laminator to its product line.Offering a simple time-saving setup, theGfp is ideal for overlaminating, mount-ing and board pre-coating for a varietyof applications.
Farmington Hills – Logicalis hasacquired Network InfrastructureCorporation (NIC), a Phoenix, Arizona-based Cisco Gold Partner that providesnetwork consulting and IT services to anumber of markets across the SouthwestUnited States. This acquisition signifi-cantly builds Logicalis’ presence in theSouthwest expanding its networkingand services business. NIC’s provenmodel for delivering wireless, securityand video services will provide a plat-form for Logicalis to expand on thosecapabilities on a national level.
Grand Rapids – BB TelephonySolutions, LLC announced that BradMorrill will be assuming the role of gen-eral manager. While taking leadership ofthe day-to-day management of the com-pany, he will focus his efforts on mar-keting, sales and finance to ensure thecompany meets its growth targets.
Grand Rapids – Maximize TechnologiesLLC recently added Chris Steele as an ITsystems engineer. He brings more than19 years of knowledge in the technologysupport field to his role, with experienceat various corporations in the region.
Farmington Hills – Logicalis hasannounced a new COO, Vince DeLuca.Before joining Logicalis, DeLuca servedas senior vice president for WiproTechnologies, a global IT servicesorganization and part of the $6 billionWipro Ltd.
Zeeland – ISD Corporation announcedthe speaking engagements of ISDQuality Assurance team members,Director Kristin Dukic and engineerPeter Walen will present their ideas onhow to build a successful team at theupcoming Software Test ProfessionalsConference in March.
Grand Rapids – Michael Walenta, gen-eral manager of WGVU-TV/FM/AM hasbeen appointed to serve on the PBSInteractive Station Advisory Council.
Grandville – Nicole Meloche, MidstateSecurity's director of marketing, joined100 other top marketing minds aroundthe globe as they converged in Barcelonato attend the invitation-only CiscoPartner Velocity Conference.
Grand Rapids – When Xtend, Inc.launched its Member Reach businessunit in 2006, president Scott Collinswas confident that credit unions wouldembrace the electronic channel as a crit-ical component to their overall membercommunications strategy. The growth ofboth clients and volume has helped val-idate that assertion, and during 2010,Xtend reported an overall revenueincrease of 37% for its Member Reachbrand, delivering more than 3.5 millionmessages to members of 53 creditunions. In August the multi-ownedCUSO passed the $1M sales mark for thefirst time in its history, marking 2010 asa profitable year. Preliminary numbersreflected increased sales ($1.33 million;+47.6%) for all business units.
Middlebury, VT and Midway, UT – eDOCInnovations is again extending its elec-tronic tax form service to all of its creditunion peers and partners, providing dig-itized versions of all applicable IRS taxforms for credit union clients. The CUSOsays that 14 credit unions participated inthis strategy last tax season. eDOC alsoannounced that the $536M Ohio-basedDirections Credit Union has chosenCheckLogic Lite™ as its remote depositcapture program for small businessmembers that allows organizations toperform deposit transactions from theirplace of business, rather than visitingthe credit union.
Farmington Hills – Logicalis announcedthat Ed Oakes, a senior delivery con-sultant has earned the designation ofMaster Business Continuity Professionalfrom DRI International (DRII). Oakes isone of only 135 people in the world toearn this mark of distinction. In 2007,Oakes was named a Certified BusinessContinuity Professional by DRII, and wasone of only 2,000 people worldwide withthat distinction.
Cincinnati, OH – PSI Group has expand-ed its consulting services and rebrandeditself as Cohesion Business Technology,a professional IT services firm.
Manistee County – In 2010, MeritNetwork, Inc. received two federal stim-ulus awards for REACH-3MC (the RuralEducation, Anchor, Community andHealth Care – Michigan Middle MileCollaborative). REACH-3MC will create2,287 miles of fiber-optic infrastructurein many rural areas of Michigan andprovide backhaul to key connectionpoints in Wisconsin and Minnesota. InDecember, Merit Network, Inc.announced a groundbreaking ceremonycommemorating the first phase of con-struction for the project. ThroughREACH-3MC, Merit will enable state andlocal governments, colleges, schools,libraries, health care facilities and othercommunity anchor institutions to con-nect to Merit’s private, high-performancenetwork, enabling them to lower costs,consolidate services and provide more toMichigan’s citizens.
Dayton, OH – CareSource, a public-sec-tor managed care company, hired PaulStoddard as the new chief informationofficer. He will oversee the developmentof information technology (IT) strategy,IT delivery and business intelligence andinformatics.
Grand Rapids – Xtend, Inc. announcedthat its Mortgage Servicing business unitis now supporting a record 3,000 loans.Xtend provides back office mortgagesupport for the credit union clients of fel-low CUSO CU*Answers, Inc. As ofXtend’s 2010 fiscal year (endingSeptember 30th), the CUSO reports thatmortgage servicing revenues haveincreased more than 15% for the thirdconsecutive year.
Bethesda, MD – Citrix Systems, Inc.announced that the University ofTennessee at Martin (UT Martin) isimplementing Citrix® XenDesktop® todeliver full Windows® desktops andapplications as an on-demand service tothe university's more than 8,000 stu-dents and staff. This is expected to savethe university more than 40 percent indesktop computing costs by enablingeasy, centralized management of desk-tops and applications and reducing theneed to refresh expensive hardware.
12
Education BriefsKalamazoo – Kalamazoo ValleyCommunity College’s new branding ini-tiative ".edyou" has won four regionalawards and is now in line for nationalrecognition. In competition sponsored bythe National Council for Marketingand Public Relations (NCMPR), the col-lege brought home “gold” Medallionawards for its 2009-10 logo design, stu-dent-recruitment and marketing pro-gram, online services and programs ofstudy publication. Kalamazoo Valleyreceived a “silver” Medallion for the out-door-advertising campaign and a“bronze” for video promotion.
Grand Rapids – A change in qualifica-tions will make more Grand Rapids resi-dents eligible to receive workforce train-ing through Grand Rapids CommunityCollege. Now, anyone who lives withinthe Grand Rapids city limits and meetsDepartment of Labor rules may qualify.These include veterans, disabled, unem-ployed, underemployed and ex-offend-ers. All must meet income qualifications.
Grand Rapids – Grand RapidsCommunity College was awarded a $4million "Pathways out of Poverty"(Pathways to Prosperity) grant inFebruary 2010 from the U.S.Department of Labor. Already over 500have attended awareness sessions andmore that 230 are participating in theprogram that trains workers for jobs inenergy-efficient building constructionand retrofitting, renewable energy, ener-gy efficiency and sustainable manufac-turing principles.
Grand Rapids – Grand RapidsCommunity College is offering “RootCamp”: a free six-session lunch-and-learn series to cover gardening basics andensure green thumbs are ready by spring.
Grand Rapids – Grand RapidsCommunity College has selectedRebecca R. Whitman as their new chiefof police. Whitman has been with theGrand Rapids Police Department foralmost 25 years.
Grand Rapids – Sanford-BrownCollege (SBC) - Grand Rapids hasappointed Derek McBeth as its newpresident. McBeth will oversee the day-to-day operations, admissions andrecruitment at the Grand Rapids cam-pus, while ensuring a student-centeredlearning environment. The announce-ment comes as SBC - Grand Rapids cel-ebrates its first anniversary.
Grand Rapids – Grand RapidsCommunity College has selected RaulAlvarez, Jr. as director of communica-tions. Alvarez comes to GRCC followingan 18-year history of marketing andpublic relations positions in centralMichigan.
Grand Rapids – The PhysicianAssistant Studies program at GrandValley State University has selectedEducation Management Solutions’(EMS) simulation software to managetheir state-of-the-art simulation centerin Grand Rapids.
Allendale – Grand Valley StateUniversity student Angela Antoniohas been named one of 50 MostPromising Minority Student finalists bythe American Advertising Federation.She is the only student from Michiganto receive the recognition this year. Thisis the fourth consecutive year that aGrand Valley student has been selectedfor the award.
Kalamazoo – Dr. David Burnie, profes-sor of finance and commercial law atWestern Michigan University, has beennamed the National City Corp. EndowedChair in Finance and Commercial Law,recognizing the longtime WMU educatorfor his superior work both inside andoutside the classroom.
Big Rapids – Ronald E. Snead Sr., whohas been actively engaged in the FerrisState University community for morethan 40 years, was recently named chairof the Ferris Board of Trustees.
NSF International Says Americans Need MoreFood Safety Education
Ann Arbor – Americans are uncer-tain about some basic food safety prac-tices in the home, according to a recentsurvey from NSF International, a not-for-profit public health and safety organiza-tion. A phone survey of 1,000 Americanconsumers found that people are in factdoing either too much or too little when itcomes to the safe handling and prepara-tion of meals. For example, consumersare taking great caution in the initial foodpreparation stages, as 78% of respon-dents knew the right way to defrost meatand poultry safely (such as defrosting ina refrigerator), but only 20% of thembother to use a meat thermometer toensure food is properly cooked.
Similarly, consumers are overly cau-tious when it comes to discarding left-over food too soon and relying perhapstoo heavily on expiration dates on foodpackages. Survey findings indicated that40% percent of consumers either do notsave leftovers or throw out leftoverswithin one to two days. However, left-overs stored properly can likely be savedfor upwards of three to four days. A sim-ilar trend was found with consumers’threshold for expiration dates as two-thirds (66%) of consumers don’t eat
(and don’t serve) food past the dateshown on the label. In reality, Americansseem to be unaware that many foodproduct dates are a guide for freshnessand not directly related to food safety.
Other findings include:Hand Washing
Consumers can get lazy when itcomes to safe hand washing practices.While 90% of consumers wash theirhands after handling raw meat or poul-try, a fifth (20%) of consumers aren’tusing warm water and soap – which isconsidered the most effective combina-tion when it comes to reducing exposureto bacteria that causes foodborne illness.
Re-Freezing MeatEven though it is safe to refreeze
foods that were thawed in the refrigera-tor, only (31%) of Americans are awarethat it is okay to do so. Because moisturelevels are normally reduced during thethawing process, the major concernwhen refreezing foods is a potentialreduction in quality.
Rewashing Pre-Packaged FoodsOver half (60%) of consumers sur-
veyed always re-wash pre-packagedfruits and vegetables (such as ready-to-eat salads), but it’s not necessary. Pre-
packaged produce that is labeled as pre-washed in a sealed container does notneed to be rewashed.
Survey results also found that foodsafety habits may depend on who youare and where you’re from, varyingbetween income levels, age groups anddifferent levels of education.
Some basic food safety practicesthat NSF International recommends:
HandWashing (cont.)Wash hands with soap and warm
water before cooking and/or after han-dling raw meat and poultry. Warm wateris recommended because it is more effec-tive at removing grease and grime byincreasing soap's ability to penetrate dirtand oils found on the skin. Additionally,consumers should lather their hands forthe recommended 20 seconds beforerinsing off the soap. This is bestachieved by singing “Happy Birthday”twice when handwashing.
Food ThermometersAlways use a food thermometer to
ensure that meat and poultry are thor-oughly cooked. Using senses such assight, smell and taste are not consistentlyreliable when gauging if meat and poultryare cooked to the proper temperature.
DefrostingFood can be safely defrosted by
three methods: Placing covered food in ashallow pan or on a plate on the bottomshelf of the refrigerator, microwaving thefood until thawed and then immediatelycooking it, and wrapping the food inplastic wrap and completely submergingit in cold water.
Rewash Pre-Packaged FoodsConsumers should always rewash
pre-packaged produce that is in an openpackage or does not specifically state itis pre-washed. Rewashing all pre-pack-aged produce is an additional precautionconsumers can take to reduce the likeli-hood of consuming food contaminatedwith harmful bacteria.
Avoid Stale Party PlattersNever eat foods (such as party plat-
ters) that have been left at room temper-atures for more than two hours.
LeftoversMost leftovers should be consumed
within 3-4 days or disposed of thereafter.If you don’t plan to consume leftoversright away, consider freezing, which canpreserve food safely for longer durationsof time.
13Organizations Fail to Tie Learning to Business Impact
Top Ten “Armen Awards”Grand Rapids – Grand Rapids
Community College named the top tenteams in their first annual innovationcompetition. “The Armen Awards” is achallenge that asks employees and stu-dents for a solution to the question, “Howcan we reduce our energy costs so that wecan use these savings to benefit programsthat support student success?
The top ten ideas were (not ranked inorder with team leader):• Solar panels in Applied TechnologyCenter Atrium - Mark Dodd, employee• Signs to reduce use of handicap accessdoors - Albert Dupuy, student• Green roof water and energy savingsplan - Ashley Fannon, student• Mobile phone app that would encour-age employees and students to makesmall changes in daily activities to con-serve resources - Derek DeVries, employ-ee• Remove lights from vending machines- Renee Gue, student• Air curtains at all school entry doors -Alan Maillett, student• Bike share program between campuses- Charlotte Pease, employee
• Rethink Water: Free-standing water fil-ter/dispenser - Joshua Smith, student• Fruit and veggie stands to replacevending machines - Sheilah Viveros, stu-dent• Mileage reimbursement reductions toencourage carpooling, virtual meetings -Sarah Yob, employee
Each top ten team received $100. Asrequired, each team included at least onestudent, faculty and staff person from anyGRCC location in Kent and Ottawa County.The teams will be reduced to the top threeby April and will win $750, $1500 or$3000. The winning idea will be imple-mented at GRCC during the followingschool year.
Joshua Smith’s Rethink Water con-cept has also earned him and partner,GRCC student Zachary F. Fortney, semi-finalist standing in the AccelerateMichigan Innovation Competition, aninternational business competitiondesigned to highlight Michigan as arobust and vibrant venue for innovationand business. That competition has a$50,000 award.
Arlington, VA – Results of a newglobal survey reveal that more than halfof organizations (50.7 percent) do notmeasure the business impact of theirlearning programs, citing both a lack ofresources and people qualified to trackimpact, as well as the need for a betterunderstanding of measurement method-ologies. Also revealing is that up to one-half of survey respondents in charge oflearning program initiatives still do notbelieve measurement is a priority or arequirement.
Respondents to the study includedlearning and development decision mak-ers and influencers in government andcommercial organizations located in theAmericas, Europe, the Middle East andAfrica as well as the Asia-Pacific region.ESI International conducted the researchin September 2010.
For those that do measure, the studyfound that:
• The top three areas that they do orwould measure are: increased quality,increasing productivity and increasingemployee engagement.
• They don’t use a specific method-ology to measure the business impact oflearning.
“What is striking is that even forthose who say that they can prove the
effectiveness of their learning engage-ments, responses reveal that they relylargely on anecdotal ‘evidence,’ ratherthan a specific methodology,” said RaedS. Haddad, senior vice president, GlobalDelivery Services, ESI. “Without a consis-tent measurement methodology and thededication of resources to measure,organizations can’t tie learning engage-ments to concrete financial and valueoutcomes, although that linkage certainlydoes exist.”People, Process and Tools Needed to
Track Business ImpactWhen respondents answered why
they don’t measure business impact, thetop two reasons cited were lack ofresources and qualified people. Clearly,complementing a defined measurementprocess with the right tools and, mostimportantly, ensuring the right peoplehave the skills and knowledge neededwill go a long way toward removing thebarriers to measuring the businessimpact of learning programs.
Guidelines and ConsistentMethodologies Needed for Measuring
When asked, “What do you mostrequire to better measure the businessimpact of learning,” survey responsesshowed that a plurality of organizations(35.5 percent) require a better under-
standing of methodologies, pointing out asignificant roadblock to measurement.Surprisingly, 47.4 percent stated they donot use a specific methodology for meas-uring business impact, yet 66.3 percentsaid they could prove the effectiveness oftheir training programs.
A Desire Exists to Link LearningEngagements to Financial Outcomes
When asked what is most importantto their measurement process, 62.7 per-cent of respondents named qualitativeoutcomes, such as employee or customersatisfaction. Yet, when asked what theywould measure, financials (such as ROIand increasing revenue) rose closer to thetop of the list, indicating a desire for morequantitative measurement.
Haddad said, “It’s clear that organi-zations want to tie learning engagementsto financial outcomes, but the research istelling us that they need a clear, consis-tent measurement methodology and theresources to execute measurement for
both qualitative and quantitative out-comes.”
Measuring for Business Impact CanLead to Strategic, Fundamental
ChangesWhile overall, organizations could
be doing more to measure for businessimpact, some survey respondents saidthat measuring for business impactplayed a significant role in their organi-zation’s success. Examples cited byrespondents included supporting the cre-ation of a project management office anddemonstrating a learning investment ROIof 122 percent to senior managementthrough increased customer satisfaction,increased employee engagement andincreased productivity.
“Given the current state of affairs, apragmatic, easily implementable solutionthat provides actionable metrics andguidance without a 6-month consultingeffort is what organizations need,” saidHaddad.
14Hotels/Restaurants BriefsBay Harbor – The Inn at Bay Harbor hasbeen named a 'Top Resort' (Mainland) bythe readers of Condé Nast Traveler in the2010 Readers' Choice Awards, publishedin November. Nearly 26,000 readers com-pleted this year’s survey and rated resortproperties on a five point scale based onactivities/facilities, food/dining, location,overall design, and rooms and service.
Grand Rapids – Numbers for the secondannual Grand Rapids InternationalWine & Food Festival held inside the40,000 sq. ft. Steelcase Ballroom insideDeVos Place came in at nearly 11,000 - a10% increase over last year's event. Thefestival began in 2008 with just over8,000 attendees.
Grand Rapids – The West MichiganTourist Association has named KellyMcGrail as the new director of marketing.
Lansing – The Michigan NaturalResources Trust Fund (MNRTF) Boardrecommended a $7.0 million grant to theCity of Saugatuck for the SaugatuckHarbor Natural Area. In 2009 theMNRTF first approved a $3.5 milliongrant and recommended a total grant of$10.5 million. Originally this total wasto be paid over three years. In December2009 the Land Conservancy of WestMichigan purchased the 171-acre LakeMichigan property for $19 million withthe intent of selling it to the City ofSaugatuck as MNRTF grant fundsbecame available. The LandConservancy now leases the property tothe City of Saugatuck for $1 a year sothe property can be enjoyed by the pub-lic while the transaction is completed.The project was scheduled to concludeby December 2012, when the City ofSaugatuck would own the entire proper-ty. The MNRTF recommendation isexpected to accelerate that timeline.
Grand Rapids – Experience GrandRapids announced that RestaurantWeek, the inaugural event heldNovember 4 - 13, surpassed all expecta-tions. 57 restaurants participated, andtotal dollars attributed to RestaurantWeek dining is reported to be approxi-mately $1.2 million. Each restaurant willdonate $1 from each 3-courseRestaurant Week meal purchased to cre-ate a student scholarship fund atSecchia Institute for CulinaryEducation of Grand RapidsCommunity College.
Muskegon – Lake Effect Wineryopened a new tasting room and gift shopnear The Lakes Mall in Muskegon at5506 Harvey St. near Subway.
Battle Creek – What A Do Theatre, anon-profit live professional theatre com-pany that will use various venues indowntown Battle Creek, announced itreceived a $5,000 Arts & CultureOperating Fund grant from the BattleCreek Community Foundation.
Eden Prairie, MN – In a move signifi-cantly strengthening its position withinthe North American travel market,Travel Leaders Group announced theacquisition of Vacation.com® fromAmadeus Americas, Inc. As a leadingleisure travel marketing organizationpowered by real travel agents,Vacation.com easily ranks as NorthAmerica’s largest vacation and cruiseselling network in terms of locationswith more than 5,100 travel agenciesthroughout the United States andCanada. Travel Leaders Group has totaltravel sales in excess of $6 billion, andowns well-known agency brands suchas Travel Leaders, Tzell, Results!Travel, Nexion, Cruise Holidays andCruise Specialists. The Alexandria, VA-based Vacation.com will continue tooperate as a stand-alone division led byits president Steve Tracas who willreport directly to Travel Leaders GroupCEO Barry Liben.
Detroit – Michigan-made ValentineVodka has been awarded a Gold medalranking during the Beverage TastingInstitute (BTI) 2010 InternationalReview of Spirits Competition – thelargest and most prestigious annualspirits competition in the United States.The BTI gave Valentine Vodka a ratingof 90 in the “Unflavored Vodka” catego-ry. Valentine Vodka is Detroit’s firstmicro distilled spirit since Prohibitionand was one of the first distilleries inthe world to use a multi-grain recipe.Valentine Vodka utilizes a blend of RedMichigan wheat, malted barley andcorn, which all come directly fromMichigan farmers and suppliers.
Mackinac Island – Mission PointResorts sales manager Angie Fair hasrecently earned the SGMP MeetingSpecialist Certification through theMichigan Chapter Society ofGovernment Meeting Professionals.
Douglas – Saugatuck Brewing Companyhas purchased and installed two new 20barrel (620 gallon) fermenters, 1 new 24barrel fermenter, and 1 new 20 barrelbright tank (carbonating & conditioningtank) effectively doubling the company'sbeer production capacity. The additionalcapacity will allow the brewery to expandits distribution and move into regionsbeyond western Michigan. Both kegs andbottles will be available in additionalrestaurants, bars, supermarkets and con-venience stores throughout Michigan withthe addition of large retail chain storesexpected by spring 2011. This growthcomes at a time when the craft beerindustry as a whole is increasing at a rateof over 12% annually. To meet expectedfuture demand, Saugatuck BrewingCompany is planning another expansionfor the spring of 2011.
Lansing – Travel Michigan, a divisionof the Michigan Economic DevelopmentCorporation, announced that through
November of 2010, hotel occupancy inMichigan was 10.1% above the firsteleven months of 2009. The increase inhotel occupancy nationally during thesame period was 5.7%.
Lansing – January 3 was the first day ofthe Pure Michigan radio and televisionwinter advertising campaign in Chicagoand key markets in Indiana, Ohio andWisconsin. The budget for this buy is$1.5 million which will be on the airthrough late February. 2010 was thebiggest year to date for michigan.org,with 13.4 million user sessions, up 19%from 2009. Click-throughs from michi-gan.org to Michigan tourism industryweb sites totaled 6.7 million in 2010, anaverage of more than 18,000 per day (up9% from last year). For the fourth yearin a row, michigan.org had more trafficthan any other state tourism web site inAmerica. As of January 2011, the PureMichigan facebook page has 185,000fans (a six month increase of 50,000).
Review of The Are ofChoosing
By Rolf Dobelli, Chairman,getAbstract
Easy choices – like cake or death, asin British comedian Eddie Izzard’sfamous routine – don’t require muchthought or study. But almost any otherchoice invites complications and confu-sion, a problem social psychologistSheena Iyengar mines and turns intofascinating reading. In this study of dif-
ferent facets of decision making, shedelves into such topics as whether yourdevotion to Coca-Cola relies on its tasteor its ties to Santa Claus, and she touch-es upon subjects as varied as fashion,rats, jam, arranged marriage, and eventhe life and death of premature babies.This compelling book (with a beautifulcover) answers questions about deci-siveness with intriguing studies, thoughyou may not agree with every conclu-sion. Perhaps Iyengar could have offeredher suggestions for improved, real-lifedecision making more succinctly, but sheprovides excellent detail, plus take-hometips for making better choices in thesupermarket or the boardroom. Giventhe fine job she’s done combiningresearch with gee-whiz revelations,getAbstract suggests this book to man-agers, marketers, public relations profes-sionals and all sales executives.
Sheena Iyengar. The Art ofChoosing. Twelve, 2010. 352 pages. ListPrice: $25.99. ISBN-13: 978-0446504102.
getAbstract is the leading providerof business book summaries, with morethan 6,000 titles covered. www.getab-stract.com
15Award Banquets:
A Great Way to Honor Your EmployeesBy David Calkins
An awards banquet is a great wayfor a business to honor the achievementsof their employees or for any organiza-tion to recognize the efforts of theirmembers. This type of event helps keepemployees motivated and makes themfeel that their work and presence mattersto an organization.
Think for a moment about the mem-bers on your staff. Think about thosewho go above and beyond what isrequired of them, those who are consis-tent and trustworthy, your go-getters,your problem-solvers and your shiningstars. How are their efforts recognized?How are they thanked? Even if youalready have a recognition system inplace, an award banquet can be a smalladdition that can make even a simplegesture, like receiving a certificate orplaque, something to remember.
We got the chance to talk with LisaCalhoun, director of sales and marketingat the Hilton Grand Rapids, about theaward banquet opportunities the Hiltoncan offer. Calhoun started at the Hiltonas a corporate sales manager in 2001,continuing to build on the catering, ban-quet and guest service experience shehad gained previously with Marriott andCrowne Plaza hotels.
Thank you for taking the time tospeak with us today Lisa.
It’s my pleasure. These banquetsand related events really are great waysto make awards something special.Companies and organizations alwayswant to make it a nice night away foraward recipients and sometimes eventheir spouses and families. They want tomake it nice; not a typical dinner orluncheon. They want to make it worthpeople's while to be there and to havethem feel genuinely that it’s a specialmoment, either for them or the company.
Who has the Hilton enjoyed
working with in the past?We've hosted several events with
the Wyoming-Kentwood Chamber andtheir 30th annual meeting and awardsdinner is coming up at the end of Januaryhere at the Hilton. It's nice to be able toconsistently have the same group backagain because they know us and weknow them. We’ve gotten to know theirparticular quirks, the program, the plan-ners of the event and what their focusneeds to be.
What do these award banquetsusually consist of?
Usually, there are drinks and horsd'oeuvres followed by dinner.Accompanying that will be a program,whether it's award videos, pictures ofindividuals that are receiving awards orcompanies that are receiving awards, etc.There's always some type of recognitionprogram which often lends itself to uti-lizing quite a bit of AV equipment, spe-cialized lighting and sound. Programsare often connected to music and videoand usually follow after dinner (thoughsometimes all these elements will run inconjunction with one another). Theseevents usually run for a couple hoursdepending on the size and number ofspeakers. Some of them include enter-tainment like a band or comedian orsome may bring in a special guest ormotivational speaker.
What if a host wants somethingbeyond the Hilton’s capabilities?
If we're not able to handle it directlyhere with our staff and equipment, if youhave something even grander than whatwe're able to put together, we can put youin touch with the right venders. Many ofthem can put presentations together foryou, pick out light equipment, etc. We'vegot some great local companies that do agreat job with that. We quite frequentlygive recommendations for bands or DJsfor entertainment options.
How is the food handled at the
Hilton?Our restaurant here in the hotel is
the Spinnaker, and the same kitchen isused for our banquet facilities. We're nota huge facility here, so we're able to ded-icate personalized attention and person-alized menus if need be. Since we're notproducing food on a huge scale, it’s veryfresh. The Spinnaker also places anemphasis on using sustainable fishwhich is flown in daily from Atlantic andPacific Oceans and even the Great Lakes.
What if a company or organiza-tion is hesitant about having anawards banquet because of the cost?
I would be very honest and openabout what you want to spend. Any ofour facilities will probably be able towork with you if you tell them what yourrestrictions or parameters are. For exam-ple, on any particular night, we love to
have somebody in rather than nobody. Ifcost is an issue, talk to us about sched-uling on a non-peak day or at a non-peak time.
What distinguishes the Hiltonfrom other potential banquet sites?
We always like to say that we're theright size for a lot of groups like this.You're not going to be competing withanother group of the same size that'sacross the hall. Really if someone is inwith dinner for 250-300, we won’t haveanother group of that size in the buildingat the same time. You essentially takeover our space, and we like being able todedicate our space that way.
What should a planner do if theywant to get in touch?
Give the Hilton a call at 616-957-0100. We’d love to facilitate your nextbanquet, ceremony, or business meeting!
Plan The Ultimate Event.Plan The Ultimate Event.
WWe have many re have many resouresources to makeces to makeyour event one to ryour event one to rememberemember..
• State of the art Boardroom• Ballroom capacity for up to 400 guests• Complimentary wireless internet access• Discounted rates for 10 or more guestrooms per night• Personalized service and packages for all types of events• Convenient location to expressways and the airport
www.grandrapids.hilton.com4747 28th Street SE, Grand Rapids
Contact the Sales Department at 616-957-0100
Curbside Trash & Waste Services:Trash Cart • Yard Waste Cart • Recycle Cart866-669 2047 Jenison, Michigan
16Health Care BriefsGrand Rapids – Spectrum Health sur-geons performed the first heart trans-plant in West Michigan late November atthe Spectrum Health Fred and LenaMeijer Heart Center. The patient, RahnBentley (50) is from Grand Rapids. Ateam headed by cardiothoracic surgeonAsghar Khaghani, MD, performed thetransplant. He was assisted by cardio-thoracic surgeon Robert Hooker, MD.
Allegan – Allegan General Hospital hasadvanced the fight against breast cancerby installing a new cutting edge digitalmammography system. This system willprovide physicians with clear and preciseall-digital images along with the largestfield of view currently available.
Kalamazoo – Bronson LakeviewFamily Care welcomed ElaineMellesmoen, PA-C and Alice Mwanda,NP. They joined the Bronson LakeviewFamily Care located at 451 HealthParkway, Paw Paw.
Grand Rapids – Michigan PainConsultants, PC has announced plansto move to the MMPC building at 4100Lake Drive to a 15,000 sq. ft. state-of-the-art facility at the new HeritagePointe building, located at 2060 EastParis Ave.
Big Rapids – Mecosta County MedicalCenter announced the addition of JonM. Curry, M.D. and Phillip G. Wise,M.D., F.A.C.S. to their Big RapidsSpecialty Clinic where they will providestate-of-the-art treatment for urologypatients. Dr. Curry specializes in variousprostate surgeries including the da Vincimethod. Dr. Wise specializes in infertili-ty treatments and vasectomy reversals.
Grand Rapids – Life EMS Ambulanceprovided a first look at its new conceptambulance (an industry first, designed toenhance transport safety) during a mediaopen house of its recently expanded,24,000 sq. ft. Grand Rapids service sta-tion. The open house, which included a
brief dedication ceremony, celebrated LifeEMS’ 30-year commitment to service,community, leadership and innovation toresidents throughout Grand Rapids.
Grand Rapids – Pine Rest ChristianMental Health Services welcomed BrieWalter-Rooks, Carol Rich and ElaineDecker to their Northeast Clinic location.Brie Walter-Rooks is a licensed clinicalsocial worker and a certified advancedaddictions counselor. Carol Rich servesthe needs of children, adolescents andtheir families. Elaine Decker, is alicensed professional counselor workingwith child and family dynamics.
Grand Rapids – Pine Rest announcedJohn Lichtenberg and Gary Werkmanas new board members.Allegan – Susan Rood, a licensed mas-ter social worker, has joined the staff ofAllegan General Hospital'sPsychological Medicine office. Shebrings over 10 years of counseling expe-rience to the clinic.
Holland – Holland Hospital’s JointReplacement Center has been designateda Blue Distinction Center for Knee andHip Replacement® by Blue Cross andBlue Shield of Michigan and Blue CareNetwork.
Grand Rapids – The new Helen DeVosChildren’s Hospital was dedicated inDecember with remarks from hospitalleadership, Helen DeVos and a ceremoni-al ribbon cutting with current and formerpatients. Features of the new hospitalinclude a dedicated pediatric emergencydepartment, six operating rooms, a heartcatheterization laboratory and a pedi-atric radiology department. The newbuilding is also filled with more than1,500 pieces of artwork made by morethan 8,000 children and teens through-out Michigan. LaFontsee Galleries ofGrand Rapids coordinated the art projectto create a warm, welcoming environ-ment for children of all ages. In all, morethan 6,000 donors contributed to the$286 million facility.
17
Over 4 millionpeople in the UnitedStates who havesurvived a stroke orbrain attack are liv-ing with the after-effects. Whetherthere are speech andlanguage problemsor loss of movement,patients need to con-
tinue treatment after hospitalization. Butwhat are the options for rehabilitation?
For most post-stroke patients inpa-tient rehabilitation treatment is the bestchoice. The goal is to return the patient
to a community-based setting (such ashis or her home) as quickly as possibleand at optimal functional levels. Thereare two levels of inpatient rehabilitation:acute and sub-acute rehabilitation.
At Mecosta County Medical Center(MCMC), our Acute InpatientRehabilitation Center will send anAdmissions Coordinator, who is aRegistered Nurse, to the hospital for acomprehensive evaluation where she willassess the patient to make sure the crite-ria for acute inpatient rehabilitation aremet. She can travel to hospitals in theGreater Grand Rapids area and otherhospitals throughout Michigan.
Criteria for admission into MecostaCounty Medical Center’s Acute InpatientRehabilitation Center includes:
• Significant loss in activities of dailyliving due to a recent illness or injury
• Potential to improve in daily activ-ities and mobility
• Need and ability to participate in aminimum of three hours of therapy daily
• Need for at least two types of ther-apy during rehabilitation (physical/occu-pational and/or speech)
• Meet the intensity of an interdisci-plinary rehabilitation team directed by aphysician.
• Be motivated and able to learn.• Have plans to return home or to a
home-like setting.During the evaluation, questions
are welcomed about treatment, the facil-ity and what to expect. It is important toreview the patient’s current medical sta-tus, talk to physicians, hospital casemanagers and meet with the patient andfamily members. The patient has controlof their care and can request the facilitythat best suits their needs. We are theonly licensed acute rehabilitation centerbetween Munson Medical in TraverseCity and Mary Free Bed in Grand Rapids.
Now the work begins. The averagelength of stay in an acute rehabilitation
center for a post-stroke patient is about21 days. When a patient is recovering ina rehabilitation program, it is importantfor them to have support from family andfriends. That is why being close to homefor this specialty care is so important. AtMCMC, families do not have to spendhours on the road driving back and forthto visit and support their loved one.
A patient’s rehabilitation processdoes not end with their stay in a rehabil-itation facility. Rehabilitation services atMecosta County Medical Center workwith patients from the time they areadmitted to the hospital immediately fol-lowing the stroke until they are releasedfrom the rehabilitation center and arereceiving outpatient care, whether that isrehabilitation in an out-patient facility orhome health care.
Knowing your options and what toexpect will prepare you and your lovedones if a stroke were to happen.
Suzie Pierce, RN, BSN is the directorand admissions coordinator at MecostaCounty Medical Center – an activeprovider of quality inpatient rehabilita-tion for over seventeen years with anexperienced medical director, nursingand therapy staff. Pierce can be reachedat (231) 592-4444.
Suzie Pierce, RN
Knowing Your Options
New Health Care SystemBattle Creek – Battle Creek Health
System has announced the selection ofBronson as its new partner, and the twohave signed a Letter of Intent (LOI) todevelop a new regional health care sys-tem. The LOI provides a framework forthe partnership and begins the formalprocess of creating the operating modelfor merging the two organizations.
The vision for the partnership is tocreate a health care system that deliversbetter coordination of care for patientsthroughout Southwest Michigan.
“For the past 18 months, BCHStrustees, including Trinity Health, physi-cian and executive leaders have beenengaged in a thoughtful, strategicreview of our marketplace and the futureof health care services,” said NeilNyberg, chair of the BCHS CommunityPartners board of trustees. “Throughoutthis process, the goal was to assure thatthe very best health care is available inour community, a commitment Bronsonalso shares.”
BCHS chose Bronson based upon anumber of factors including:
• A shared dynamic vision of acoordinated, regional system that worksbetter for patients
• Bronson’s commitment to continu-ously improve the patient experience, itsnational reputation for quality and thebreadth and depth of specialty and sub-specialty services it provides in this region
• Common core values that include along-standing commitment to communi-ty governance and a mission to ensurequality care is available to all personsregardless of their ability to pay
According to Nelson Karre, chair ofthe BCHS board of trustees, “Bronson’snational reputation for quality and high
level regional services such as the chil-dren’s hospital, heart care, neurosurgeryand critical care make it an outstanding‘fit’ with what we offer in Battle Creek. Inaddition, as our boards discussed a part-nership, we found mutual intentions thatwill go a long way toward guiding ouractions together into the future.”
Bronson President and CEO Frank J.Sardone said, “This partnership withBCHS will enable Bronson to take ourlong-standing commitment to quality toan even higher level. ... That means bet-ter meeting our patients’ needs by pro-viding the right care in the right place atthe right time. By maximizing the clinicalstrengths of each organization, weexpect to create a regional health caresystem that delivers a superior patientexperience at all points of care.”
Bronson will become the “operatingpartner” of the new regional system bypurchasing 51% of BCHS. Specifically,Bronson will purchase the 50% shareheld by Trinity Health – and 1% of theBCHS Community Partners holdings.Community Partners will join theBronson board of directors resulting in amore regionally focused board.
During the coming months, legal,operational, and strategic work on thenew partnership will get underway andafford opportunities to engage employees,medical staffs and communities in discus-sion about the new regional system.
Depending upon the pace of duediligence and subject to final legal andregulatory approvals, the proposed newsystem could be operational as early asthe middle of 2011. Until then, bothorganizations will continue to operate asthey have been, but will report on majormilestones as they occur.
More Growth Predicted for IPO 2011 Market Chicago, IL – According to a new
study by BDO USA, LLP, one of thenation’s leading accounting and consult-ing organizations, capital markets exec-utives at leading investment banks pre-dict continued growth in the number ofinitial public offerings (IPOs) on U.S.exchanges in 2011. Close to three-quar-ters (72%) believe U.S. IPO activity willincrease this year compared to 2010,with almost a quarter (24%) describingthe increase as substantial. Only ninepercent of the survey participants expecta decrease in IPOs in 2011, while 19 per-cent forecast activity will be unchangedfrom 2010. Overall, bankers predict an11 percent increase in the number ofU.S. IPOs in 2011. They anticipate theseofferings will average $268 million,which projects to more than $45 billionin total IPO proceeds (an increase ofapproximately 18%) on U.S. exchangesin 2011.
“With the number of IPOs on U.S.exchanges more than doubling in 2010,it isn’t surprising that investmentbankers are forecasting more measuredgrowth in the number of deals for2011,” said Jay Duke, a Partner in theCapital Markets Practice of BDO USA.
“However, when you consider that theGeneral Motors offering, by itself,accounted for more than 40 percent ofall U.S. IPO proceeds in 2010, the pro-jected growth in volume reveals a grow-ing confidence in the capital marketscommunity. Absent the GM IPO, theforecast would be calling for the amountof IPO proceeds to double in this year.This indicates a move to larger offeringsin 2011.”
According to BDO USA CapitalMarkets Partner, Christopher Tower,“Sponsor-backed deals played a signifi-cant role in the strong growth of U.S.IPO activity in 2010 from both a volumeand performance perspective. Capitalmarkets executives clearly see this trendcontinuing in 2011, with almost halfidentifying PE firms as the main sourcefor IPOs in the coming year.”
Strong majorities of investmentbankers predict an increase in the num-ber of IPOs in the technology (87%),energy (83%), biotech (65%) andhealthcare (60%) verticals in 2011. Thisis consistent with the industries thatwere identified as growth leaders in lastyear’s study. By comparison, there ismore modest support for the likelihood
of growth in IPOs for industrial/manu-facturing, financial and media/telecom.
Industry Increase Flat DecreaseTechnology 87% 12% 1% Energy 83% 14% 3%Biotech 65% 33% 2% Healthcare 60% 31% 9% Industrial/Mfg 44% 43% 12% Financial 42% 39% 18% Real Estate 37% 25% 38%Media/Telecom 34% 46% 19%Retail 23% 46% 30%(Proportions of Capital Markets Executivesexpecting IPO activity to increase, remainstable or decrease in specific industries.)
These are just a few of the findingsof The 2011 BDO IPO Outlook surveywhich examines the opinions of 100capital markets executives at leadinginvestment banks regarding the marketfor initial public offerings in the UnitedStates in the coming year. The surveywas conducted in December 2010.
Other major findings include:• Price is Right. Despite the
increase in IPO activity, the size of theaverage IPO in the U.S. was down sig-nificantly from 2009. When asked toexplain the drop in size, half (50%) ofthe bankers cited reduced offering pricesin a very discerning market, while 39percent felt the offering companies weresmaller businesses, in general. Others(8%) connected the smaller size to theuse of a scarcity premium, wherebysmaller offerings are used to createincreased investor demand for the stock.
• The PE & VC Effect:- Driving Growth. IPO activity on
U.S. exchanges bounced back in 2010,more than doubling from 2009. The keydrivers of this growth according toinvestment bankers were private equity(PE) and venture capital (VC) firmsneeding to deliver returns to clients inorder to raise new funds (41%) and thenear zero benchmark interest rates(24%) that increased demand for higheryielding assets. Stable financials at IPObusinesses (22%) and the reduced priceof offerings (12%) were also identifiedas drivers.
- Best Performers. Sponsor-backedIPOs (those backed by PE and VC firms)significantly out-performed other initialofferings in 2010, and I-bankers identi-fied various drivers for this trend. Morethan a third (36%) cited the competitivepricing of the sponsor-backed offeringsas leading to better performance andover a quarter (27%) indicated thatthese were generally more stable busi-nesses with strong cash flow. One-fifth
(21%) felt the sponsor-backed busi-nesses were better prepared to reboundin a recovery, while others (15%) sug-gest that the IPOs benefitted from hav-ing less debt than past LBO offerings.
- PE to Lead 2011 IPOs. Whenasked what will be the greatest source ofIPOs in 2011, almost half (47%) of cap-ital market executives cite private equityportfolios. Spinoffs and divestitures(22%), venture capital portfolios (17%)and owner-managed, privately-heldbusinesses (13%) are the other sourcesidentified by the bankers.
• Slight Dip in Returns. WhileU.S. IPO activity is predicted to increase,the bankers believe returns will runslightly below 2010. They forecast offer-ings achieving an average one-dayreturn of 9 percent and an overall returnaverage of 18 percent (compared to 2010returns of 10% and 24% respectively).
• Multiple Threats to U.S. IPOMarket. Despite their optimism, thecapital markets community still seesmultiple potential threats to the U.S. IPOmarket. Constrained bank lending iscited by one-third (33%) of bankers asthe greatest threat to a healthy U.S. IPOmarket in 2011. Other leading threatsare market volatility (29%) and highunemployment (26%). Weak consumerspending (12%) is a less prevalent con-cern.
• Is Bookrunner Still a Big Deal?With major IPOs now featuring as manyas 10 underwriters, more than a third(36%) of I-bankers feel the bookrunnerdesignation no longer carries the samestatus in the capital markets community.However, the majority (64%) feel thestatus remains intact.
• Taking a Long-Term View.When asked what type of offering attrib-utes the investment community willvalue the most in the coming year, one-third of bankers (34%) cite long-termgrowth potential, while more than aquarter indicated stable cash-flow(28%) or profitability (27%). Othersfocused upon the strength of the indus-try vertical (9%).
• Market Peak? Of the 72 percentforecasting an increase in IPO activity in2011, almost half (44%) expect activityto peak in the third quarter of the year,while over a quarter (28%) anticipatethe second quarter of the year will setthe high water mark for activity. Q1(8%) and Q4 (19%) are less likely to seea peak in activity.
18
Review of How to InstantlyConnect with Anyone
By Rolf Dobelli, Chairman,getAbstract
Is it manipulative to speak to othersin a way you know will please them?Purists of the to-thine-own-self-be-trueschool may think so, but the people on the
receiving end of your courtesy, deferenceand regard will not. Communications con-sultant Leil Lowndes has assembled 96techniques you can use to make others feelgood about you – often by making themfeel good about themselves. These tech-niques work best, of course, when appliedwith sincerity and not phony zeal. Yourpurpose is not to flatter people, but toengender their positive regard. Scheming?Calculating? That’s up to you to decide.Although you may not choose to followLowndes' sometimes boundary-testingadvice to the letter, getAbstract recom-mends her fun book to anyone who needsa boost in getting along well with others.So unless you are already a bon vivant –or, conversely, a hermit – this book is foryou.
Leil Lowndes. How to InstantlyConnect with Anyone: 96 All-New LittleTricks for Big Success in Relationships.McGraw-Hill, 2009. 336 pages. List Price:$16.95. ISBN-13: 978-0071545853
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19Architects End 2010 on a Hopeful Note
By David Calkins
Architecture was labeled by manyas one of the worst hit professions inAmerica’s financial crisis. According tothe U.S. Bureau of Labor Statistics,job losses for architects jumped 17.8percent in 2009 – a year which sawcountless firms trimming off employeesand scrambling to find work. But theend of 2010 brought good indicationsthat along with America’s slow recovery,architects have been recovering too.
Good news came from theAmerican Institute of Architects(AIA) with the release of their monthlyArchitecture Billings Index (ABI)reports. The index – which “serves as aleading economic indicator that leadsnonresidential construction activity byapproximately 9-12 months” (accordingto the AIA) – broke above 50 lastSeptember, indicating an increase inconstruction billings and general growthwithin the industry. It was the first timeit had done so is nearly two years. Thenin November, the ABI reached its high-est mark (52.0) since late 2007.
AIA Chief Economist Kermit Bakernoted that, "We continue to hear a widemix of business conditions, with a gooddeal of it still indicating flat or nodemand for design services. Once wesee several months in a row of increas-ing demand we can feel safe saying wehave entered a recovery phase. Untilthen, we can expect continued volatilityin business conditions."
Still, for an industry hit hard by theeconomic downturn and limping eversince, this is a positive sign. As AnibarBasu, chief economist for AssociatedBuilders and Contractors, summedthings up at a recent presentation on theeconomic outlook for 2011, “Less bad isthe new excellent.”
“I am starting to see a lot moreactivity than what was happening lastyear,” said Dave Maxam of MaxamArchitecture. “I'm just a one man show,so I may not be a good barometer of theindustry as a whole, but my designworkload was up 2.5 times from the lowof 2009. These days, each project takeson new meaning as one more contribu-tion to Michigan's economic recovery. Ilike to think I'm rebuilding Michiganone project at a time.”
Part of the effect this slow recoveryhas had on architects is to dramaticallyincrease competitiveness for potential
consulting work. Accordingly, manybuilding owners have seen the currentmarket in terms of opportunities toderive short-term benefits of a lowerdesign cost. However, this might not bethe best idea, says Philip M. Davis, vicepresident and architectural departmentdirector for Fishbeck, Thompson, Carr& Huber, Inc. (FTC&H). “I don't know ifbuilding owners fully realize… some-thing has to give. You get a lower vol-ume of quality effort in design thatprobably is going to manifest itself inissues at the construction site later oreven with use of the building in the longrun. You may get what you pay for.”
Unlike many of their competitorswho had to trim their personnel due todiminished workloads and lower fees,FTC&H have kept their staff numbersrelatively intact. “We've chosen to focuson things that we're really good at,”explains Davis. “We put more emphasison opportunities and projects thatrequire a high technical expertise thatwe think we're well suited for. We alsocontinue to develop long-standingclients who we have very trusting rela-tionships with, and we seek work wellbeyond Michigan through all of the U.S.into Canada and parts of Europe.”
When architects do find work thesedays, they’re finding that building own-ers are placing more focus on the practi-cal needs of a structure with an empha-sis on performance. “The clients we’veseen have definitely become moresophisticated in what they want,” saidDavis at FTC&H. “With heavy financialpressures along with fewer resourcesand staff, the buildings need to performand be maintained easily.”
This translates for many into con-cerns over energy consumption andmaterial usage which inevitably bringsthe word “green” into the conversation.Still financial restraint and sustainabili-ty are going hand-in-hand these days.For example, much of the evolution ofmaterials has been attributable to howthey can be measured with respect tothe sustainable aspects of their use.Attention is being paid to “virgin” mate-rials that require a good deal of energyto be harvested and processed,unhealthy solvents or items that have ahigh VOC content, unique maintenancerequirements and reusability.
“People say ‘green,’ but you canthrow a lot under the table with thatterm,” said Jonathan Rambow, presi-
dent of Slocum Architects. “I prefer‘sustainable design.’ It’s a holisticapproach; not just with materials, but inthe total design. Really, it’s doing a lot ofthings you should always do: it’s themechanical and electrical systems; theway the building is oriented to takeadvantage of sun and wind; it’s eventaking care of debris on the site. Andwhile ‘being green’ might be in vogue,Michigan’s basic energy code keepschanging. These are things that willreally become necessities as time goeson.”
“I don't think there's any client thatdoesn’t want the benefits of sustainabledesign,” said Davis at FTC&H. “In a lotof cases, clients may seek LEED certifi-cation for a third party authentication ofthe effort. Some even view that as amarketing tool. But the one concern thatthey always have is paying a lot extra
money to have those opportunities. Thatmay have been the case early on in thismovement, a decade ago or so, butmaterials have evolved so much andeverybody now has a better under-standing how to handle them and inte-grate systems… I think [sustainabledesign] is becoming rather common-place.”
As 2011 dawns, architects are hop-ing that despite a lack of funding forconstruction projects, demand for themhas been building. As the economyturns toward brighter days, the firmsthat will emerge on top will be thoseable to respond quickly and keep pacewith owner's desires.
“There isn’t the luxury of time any-more,” said Davis. “Once the need isthere and the financing falls in place,things are going to go fast.”
20Five Steps to Planning a Cost-Effective
Fire Alarm InstallationBy William F. Donahue
The cost of a typical fire alarminstallation in an apartment building canrange anywhere from $1,800-$2,500 perunit. And with fire alarms generallyrequired in buildings with four or moreunits, even a small installation can runupwards of $10,000. Clearly, this is suffi-cient as an investment to make sure theproper due diligence takes place to protectyour investment.
At the same time, the reason forinstalling a fire alarm system—to savelives and protect property—should not beoverlooked at the expense of placingeither in jeopardy. There are countlessstories of companies that cut cornersunwisely on fire alarm installations, onlyto pay a severe price when a loss occurs.
Fortunately, there are ways to becost-conscious without being irresponsi-ble and putting your company in thecrosshairs of the worst possible negativepublicity. And that’s by simply doingyour homework.
Here are five steps to take in planninga cost-effective fire alarm installation:
1. Make sure you have all the nec-essary building information. It’s impor-tant to have accurate and up-to-dateblueprints of floor plans of the building orfacility available to understand what youcan and can’t do.
If your plan is to put the project out tobid to multiple electrical or alarm contrac-tors, make sure someone knowledgeablereads the plans and explains certain aspectsof the structure and the system design.
Will you have to sub-divide? Whatbuilding occupation or standards will the
system be measured by? Where will thecontrol panel go? Do you have plans toexpand the structure in the future? If so, theability to easily expand or add on to the sys-tem in the future will be a consideration.
You will find it will save you money(or is well worth the money) if you find acontractor that will agree to draw plans ordesign the system for a fee or future con-sideration, or you could contact an elec-trical or fire protection engineer to draw aplan and design the system.
You may also find that the local fireauthority may be helpful in this processby offering advice regarding localrequirements and indicating how detailedyour plan should be. Having a detailedplan will ensure that when you do getcompetitive price quotes for your firealarm installation, all bidders will be fair-ly compared.
You should also be aware that a newfire alarm installation might require areview of your electrical system. Forexample, a common requirement is thatthe power for the fire-alarm system be ona dedicated circuit from a panel or electri-cal meter that the property owner isresponsible for.
You may have a panel like this ifyour property has exterior site or com-mon area lighting that you, as the build-ing owner, pay for directly. If not, youmay have to update your electrical sys-tem, which you may choose to do at thesame time as part of the fire alarm instal-lation / upgrade project. This could sub-stantially increase the overall project cost,so make sure it is considered in yourplanning process.
2. Understand the new technolo-
gy. Over the past 20 years or so, proces-sor technology-based fire products havebeen introduced. Years ago, fire alarmsystems consisted mostly of a handful ofrelays and lights indicating a ZONE (orarea of the building) where the fire emer-gency occurred.
Systems like this still exist and arecommonly referred to as conventionalfire alarm systems. From an equipmentperspective, this type of system is gener-ally the least expensive.
Now, digitally-based panels and sys-tems are available, affordable and morecommon. Systems like this typically offermore detail, require less wiring and pro-vide more flexibility. These systems areoften referred to as addressable systems.Equipment for these systems is moreexpensive but can be easier to install inexisting buildings, since less wiring maybe required. This system is becoming themost popular type.
Wireless systems are available andmay be appropriate, based on your sys-tem requirements. You can’t make anaccurate assessment of what you needuntil you understand the equipment’sresponsibilities.
Make sure the contractor or yourproject specifications clearly state theexact products required. Find out if theproposed equipment is readily availableand/or proprietary (only available fromor through specific sources). This will bevery important after the system isinstalled, since it may require service orparts in the future.
If you choose a proprietary system,you may find it difficult or expensive toservice or modify the system in thefuture, and you may be limited as to whocan provide those services. Are all war-ranties clearly spelled out for the manu-facturers equipment being proposed? Thedays of a fire alarm system being simplyjust a “box-on-a-wall” are long gone.Talk to people who are up on the latestproduct technology, or at the very least,use the Internet to get the informationyou need and make your assessment ofthe proposed equipment.
3. The proposal. When reviewingproposals, look for hidden costs such assales tax, travel time reimbursement andso forth. Are all the costs clearly spelledout so they are easily understood? Are thedeadlines realistic, and if they are not met(if the project goes beyond the proposedtimeframe), are there additional charges?
You may notice statements in a bid
such as “subject to approval.” Make sureto discuss exactly what this means withyour bidder. In this discussion, you mayuncover a missing component—not justin this bid but also in your project as awhole—that may be an expensive omis-sion. Once you understand all facets ofthe proposals, common practice is to getat least three bids. Based on your comfortlevel, you can now select a contractor towork with on the project.
4. Take time to get good refer-ences. Ask the contractor you have cho-sen for a list of past customers. Ask themthese questions: Was the project finishedon time? Was the project completed with-in budget? Were the workers neat andthorough? Were they always conscious ofjob safety? Did the contractor ask for anyadditional payments other than what wasagreed upon? Were the agreed-uponproducts delivered as promised, or weresubstitutions made? Were any changesrequired after the project was completedand if so, were they affordable?
5. Be aware of how payments are tobe made. Horror stories abound of howcontractors have taken a deposit on a joband suddenly turn up missing, never to beseen again. Don’t become a victim.
If the proposal asks for more thanone-third up front, maybe even as highas a half, a red flag should go up. A ruleof thumb is never to pay for more thanone-third at the start of any project. Thesecond third should be due when thematerials are delivered and actual workbegins (and only then after you’ve donea rough inspection of the progress).
The final payment should be madeonly after you are fully satisfied with thejob and, most importantly, after the localAHJ (Authority having the HighestJurisdiction—in many cases, the local firemarshal) has signed off on the job.
By following these basic steps, youwill stay in total control of the project fromstart to finish. But most importantly, youwill also be able to sidestep any surprisesthat may arise that can potentially impactthe quality of the work, the safety of thepublic, the reputation of your companyand your budget’s bottom line.
William F. Donahue is president ofCrown Supply Co., Inc, an award-win-ning distributor of electrical and firealarm products with locations inProvidence, RI and Milford, MA. Formore info, visit www.crownsupply.com.
21
Construction BriefsKalamazoo – Skanska USA announcedthat its building business unit, which isa leading provider of construction man-agement, preconstruction and design-build services, has been selected as gen-eral contractor for the new air trafficcontrol tower at the Kalamazoo/BattleCreek International Airport. Atlanta,Ga.-based architecture firm Hartrampfwill provide design services for the 167-foot tower and the associated 20,100 sq.ft. Terminal Radar Approach Control cen-ter. The construction phase began inSeptember 2010, with an expected com-pletion in the first quarter of 2012. Atthat time, the FAA will begin installationof all air traffic equipment, which isexpected to take an additional 18months. The cost of the project is $12.1million.
Grand Rapids – Local Haworth dealerInterphase Interiors announced theyhave designed, selected and installed allinterior furnishings for the new HelenDeVos Children’s Hospital. InterphaseInteriors was challenged to create practi-cal healthcare work areas while also fea-turing unique comfortable furnishingsfor young children and matching theHospital’s commitment to have thebuilding LEED certified by utilizing allLEED-friendly furnishings. By virtuallyany standard, the scope of the furnish-ings project has been enormous.
Already, Interphase staff has loggedmore than 1,000 design hours, while acrew of the company’s installers areinstalling one floor per week, with theentire installation spanning some sixmonths. In total, Interphase will deliverthousands of furniture pieces through-out the hospital including receptionareas, seating, workstations, patientroom seating and specialty productssuch as overbed tables.
Grand Rapids – Consumers Energythew the switch on its innovativeSmartStreet program, a pilot project plac-ing electric smart meters into approxi-mately 60 East Hills neighborhoodhomes and businesses in 2011. GrandRapids Community College studentswill be on the scene to learn and assistwith installation, and students from sev-eral workforce development classes willhave the opportunity to be involved inthe project over the next year. The col-lege is one of many participants andsponsors of this "smart grid" projectwhich Consumers Energy announced atthe Inner City Christian Federation.
Holland – Vince Murray has joinedDriesenga & Associates, Inc. as anaccounting coordinator in the firm’sHolland headquarters office. Murrayearned his bachelor’s degree and MBAfrom Northwood University.
West Michigan – Signature Associatesannounced that Caroline Fox Pavonehas joined the West Michigan team as asales associate working from theirKalamazoo office. Fox brings a broadbase of commercial real estate experi-ence and a fresh perspective to theSignature team. Her ability to connectthe dots in making creative matches,combined with strong negotiating skills,makes her an outstanding advocate forher clients.
Grand Rapids – After 45 years of work-ing on projects that helped shape GrandRapids — including the Helen DeVosChildren’s Hospital, Van Andel Institute,JW Marriott Hotel and DeVos PlaceConvention Center — Andy J. EganCo.’s vice president is retiring. CaseySchellenboom started as an 18-year-olddelivery employee with the companymoving up to a plumbing apprentice,then journeyman, project manager andfinally vice president.
Construction Spending RisesBut Industry Remains “Fragile”
Washington, D.C. – The AssociatedGeneral Contractors of America noted inan analysis of new Census Bureau datathat construction spending increased by0.4 percent in November, the thirdstraight rise in the total. Private residen-tial and public construction each gained0.7 percent compared with October’stotals, while private nonresidential con-struction edged down 0.1 percent.
“It is heartening to see three
increases in a row for the total,” said KenSimonson, the association’s chief econo-mist. “But most categories showed moreof a seesaw pattern over the past threemonths, indicating that constructionspending remains fragile at best.”
Simonson noted that the strongestcategory appears to be power construc-tion, which has climbed for four consecu-tive months from a seasonally adjustedannual rate of $75.7 billion in July to
$85.7 billion in November. He added thatpower construction will be helped in2011 by extension of tax credits forbuilding wind and other renewable powerfacilities. Residential improvementsappear to have rebounded for the pastthree months also, up $15 billion sinceAugust. Simonson cautioned, however,that the Census Bureau often makes largerevisions—down or up—to this estimate.
Public construction reached a 16-
month high of $318.5 billion, but is like-ly to decrease in 2011, Simonsonobserved. Major federal funding for mil-itary base realignment, Gulf Coast hurri-cane work and stimulus projects isexpected to taper off in the second half ofthe year. Meanwhile, the new Congressand many governors have signaled thatthey intend to hold down spending oninfrastructure among other categories,the economist noted.
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USDA Provides Disaster Assistance to Producers of Soybeans
East Lansing - Christine White,State Executive Director for Michigan'sFarm Service Agency (FSA) announcedthat starting today, producers can beginsigning up for USDA's Crop AssistanceProgram (CAP). CAP provides disasteraid to producers in specified Michigancounties whose soybean production wasadversely affected by excessive moistureand related conditions that occurred in2009. Signup will continue throughDecember 9, 2010.
"This program is only applicable toacreage located in a primary disasterdesignated county and does not extendto acreage in contiguous counties," saidWhite. "A complete list of disaster coun-ties can be found on line at http://disas-ter.fsa.usda.gov."
CAP payments will be calculated bymultiplying eligible acreage times thecrops payment rate. Per acre paymentrates will be prorated by FSA in order tokeep payments within available funds
for the program. Producers will initiallyreceive 75 percent of their CAP paymentand once sign up is complete, they willreceive up to an additional 25 percent.The predetermined, per-acre, paymentrates for soybeans is $15.62.
Producers will self-certify that theyhave met the loss threshold for an eligi-ble crop, provided they have productionevidence to support the 5 percent orgreater loss claimed. Producers certifica-tion of loss are subject to spot check.
The general eligibility provisions,payment limits, and adjusted grossincome limits that apply to FSA pro-grams apply to CAP. No person or legalentity (excluding joint venture or gener-al partnership) may receive, directly orindirectly, more than $100,000 in CAPbenefits. Additionally, CAP paymentswill be treated as 2009 revenue underthe Supplemental Revenue AssistancePayments (SURE) Program.
22
SDA Announces Planting Transferability Pilot Project East Lansing – The USDA Farm
Service Agency (FSA) PlantingTransferability Pilot Project (PTPP) per-mits Michigan producers to plantapproved vegetables for processing onbase acres under the Direct and Counter-Cyclical Program (DCP). Eligible produc-ers have until March 1, 2011 to sign up.
The plant approved fruits or vegeta-bles the PTPP allows include cucumbers,
green peas, lima beans, pumpkin, snapbeans, sweet corn or tomatoes. Withoutthe PTPP, planting these crops on baseacres would be prohibited. Base acres ona farm will be temporarily reduced eachyear on an acre-for-acre basis for eachbase acre planted with an approved fruitor vegetable on that farm. Michigan isapproved to enroll a total of 9, 000 acresinto PTPP.
Eligible participants must agree toproduce one of the approved crops forprocessing and to provide the countyFSA office with a copy of the contractbetween the producer and processingplant. Participants must also agree toproduce the crop as part of a program ofcrop rotation on the farm to achieveagronomic, pest and disease manage-ment benefits, and to provide disposition
evidence of the crop. Finally, participantsmust complete form CCC-749 (availableat http://www.fsa.usda.gov) and file itwith their county FSA office.
The sign-up period for the PTPPbegan December 1, 2010, and will endMarch 1, 2011. USDA will not acceptapplications filed after that date.
The Art of Discounting:Activating Dormant Customers
By Rafi Mohammed, Ph.D
In today’s erratic economy, the keyto growing your business involves acti-vating dormant customers by usingstrategic discounts. By “dormant,” Imean customers who are interested inyour product or service but haverefrained from purchasing due to price.The “art of discounting” involves offer-ing lower prices to attract new budget-conscious customers in a manner thatminimizes the possibility of current buy-ers (who are paying full price) takingadvantage of these price breaks. In thebest case scenario, all current customerscontinue to pay full price and the dis-counts generate pure incremental profits.However, it’s more likely that someexisting patrons end up buying at thelower price. Thus, for a discount to besuccessful, profits from new customersmust be greater than the margins lostfrom current buyers.
Sell through discount channels. Arecent news article by Rachel Dodes inthe Wall Street Journal titled “TonyRetailers Hope Outlets Fuel Sales”(August 9, 2010) notes the trend ofupscale retailers seeking growth fromoutlet stores that target budget-con-
scious customers. Outlets have been along time strategy for upscale retailerssuch as Saks and Nordstrom, whichrespectively operate Off 5th andNordstrom Rack stores. This yearBloomingdales, Lord & Taylor andNeiman Marcus are all opening new dis-count-oriented stores. Outlets are gener-ally not located in major metropolitanareas, thus they target different geo-graphic customers as well as providecredible hurdles for current patrons tojump over (like a long drive coupled witha limited selection) in order to reap dis-counts. In a similar vein, Morton’s is pro-moting its $5 bar bites that are onlyoffered in the steakhouse’s bar areas.
Of course not all companies can openup a new outlet. However, they can selltheir products (and services) through dis-tribution channels that target price sensi-tive customers in a manner that reducesthe chances of cannibalization (currentcustomers buying at a discount). High-end brands such as Starbucks, HyattHotels and Godiva have sold discount giftcards through Costco, for instance.
Create a discount brand. It’s com-mon for companies to create a new brandto serve a price sensitive audience.Sprint, for instance, operates the prepaid
cellular provider Boost Mobile. Boost’s$60 unlimited Blackberry package (talk,text, web, email) is considerably lowerthan the $99.99 “Simply Everything”plan offered under the Sprint Brandwhich provides the same unlimited fea-tures. While companies can’t start a newbrand tomorrow morning, they can selltheir products at a discount via privatelabels. Just last week, Sprint announced a$300 million deal to provide service forCricket, the discount cellular company. Toprotect their brand, many manufacturingcompanies don’t want the public to knowthat they are selling discounted products.With the right confidentiality contract inplace, who manufactures house-brandproducts can remain a closely-guardedsecret. According to Sonia Reyes’ article“Saving Private Labels” featured inBrandweek (May 8, 2006), The PrivateLabel Manufacturers Association esti-mates that 65% of all food and beveragecompanies (including Sara Lee, Hormel,Bird’s Eye and Del Monte) are involved inprivate label manufacturing.
Use tried and true tactics such ascoupons, sales and promotions. Whilethese strategies are commonly used, theygenerally are not implemented correctly.Instead of viewing these discounts as a
way to “move merchandise,” think aboutthese techniques as avenues to activateprice sensitive shoppers while keepingyour current base paying full price. Thisinvolves creating hurdles (such as earlymorning sales on off-peak days, makingcustomers clip and redeem coupons, etc)that allow budget-minded customers tocredibly raise their hands to say, “Price isimportant to me.”
It’s understandably stressful if acompany loses, say, 15% of its business.In these situations, it’s common to take a“slash prices and hope for the best”stance. I view this same situation differ-ently. I prefer to focus on the fact that85% of customers are still paying fullprice. The art of discounting involvesmaintaining current prices and imple-menting pricing strategies to activate dor-mant customers with low price options.
Rafi Mohammed, Ph.D is the authorof The 1% Windfall: How SuccessfulCompanies Use Price to Profit and Grow(HarperBusiness). He has been workingon pricing issues for the last 20 years,and is the founder of Culture of Profit LLC– a Cambridge, MA-based company thatconsults with businesses to help developand improve their pricing strategy.
FireKeepers Casino Celebrates a Successful 2010Battle Creek – FireKeepers Casino,
owned by the Nottawaseppi Huron Bandof the Potawatomi (NHBP), celebrated asuccessful 2010 year.
The Casino hired 1,500 team mem-bers in 2009 to successfully open the$300 million facility. Since the opening,FireKeepers has effectively maintainedworkforce levels at 1,500 team members,making the property one of the largestemployers in Calhoun County. Interest inemployment with FireKeepers hasremained high with nearly 16,000 appli-cations received in 2010.
The casino has also worked dili-gently toward maintaining team mem-bers and providing benefits for employ-
ment. April 29, 2010 marked a keymoment for FireKeepers with the open-ing of an on property health clinic exclu-sively for their 1,500 team membersthrough a partnership with BorgessHealth.
In addition to generating permanentjobs in the region, the NHBP distributednearly $2 million to the FireKeepersLocal Revenue Sharing Board LRSB inFeb. 2010 for a five month operatingperiod ending Dec. 31, 2009. Under theTribe’s Class III Gaming Compact with thestate of Michigan, the NHBP has agreedto provide an annual two percent pay-ment of net slot win to the LRSB. Theunits of government serving on the LRSB
are the NHBP, Calhoun County, EmmettTownship, city of Battle Creek, city ofMarshall and Athens Township.
Beyond the LRSB, the NHBP’s com-mitment to local spending has resulted inawarding contracts in excess of $22.7million within the state in 2010. Over$16.1 million has been spent within a 50mile radius of the casino.
Continuing the concerted efforts tospend locally, FireKeepers Casino alsoparticipated in local charitable events:
• The casino partnered withGreenleaf Hospitality Group, owner andmanager of the Radisson Plaza Hotel &Suites in Kalamazoo to host a benefitdinner with all proceeds going towards
the Boys & Girls Clubs of GreaterKalamazoo. The dinner, appropriatelynamed “Culinary Clash,” was a faceoff offive Greenleaf Hospitality Group headchefs against five of FireKeepers Casino’shead chefs.
• In November, the casino donated800 turkeys to four local food banks,200 to each food bank during theThanksgiving holiday season. Theturkeys were from Norman Foods, a localfood supplier from Battle Creek, and areafood banks receiving donations includedFort Wayne, IN, and Ann Arbor, BattleCreek and Grand Rapids, MI.
Local Entrepreneur Reinvents Towel ServiceByron Center – Entrepreneur Steven
Molewyk has developed an environmen-tally sustainable technology to help fit-ness centers and hotels improve theirtowel management service, maintain ahealthier bottom line and reduce water,electricity and detergent consumption.
It’s all possible with a washableradio frequency identification (RFID) tagthe size of a paperclip.
Molewyk, a Laundromat owner, wasinspired to invent the “Towel Tracker”after talking to a local health club ownerwho grew weary of members stealing anaverage of 3,500 towels a month fromhis facility. Stolen towels cost the busi-ness approximately $50,000 a year.
“Many hotel and fitness center own-ers believe the cost of stolen towels is the
price they must pay for doing business,but I thought there must be some solu-tion to this problem,” said Molewyk.
Molewyk found a solution withRFID technology. As a customer swipestheir membership ID to access a towel,the Towel Tracker reads the RFID tagembedded in the towel and assigns it tothe user. When the user returns thetowel, the system reads the tag again totrack its return. If the towel isn’treturned, the club owner has the optionof charging the member for the unre-turned towel.
After three years of research anddevelopment including input from WestMichigan fitness club owners and suc-cessful product testing, Molewyk’s prod-uct has generated a great deal of interest
from various industries. He is receivinginquiries from local and national fitnesscenters, hotel chains and Fortune 500companies needing to deal with the theftof towels, rags and linens.
“To stay afloat in today’s tougheconomy, businesses need to cut costswherever they can and proactivelyaddressing towel theft is a simple way todo just that,” Molewyk said.
Molewyk says Towel Tracker’s ben-efits extend beyond preventing toweltheft to a green cost saving alternative.Product tests have shown Towel Trackerusers tend to take fewer towels sincethey know they are responsible for them.This translates into less towel launder-ing. Mary Kay Sherman, Walker Ice andFitness Center Customer Service
Supervisor said, “We want to reduce ourcarbon footprint. We are using the TowelTracker to save electricity, water andgas.” Towel Tracker has reduced thefacility’s water, electricity and detergentuse by 30 percent.
With Towel Tracker, members arealso less likely to leave dirty towels lyingaround for employees to clean up. Thisfrees up time for staff to perform jobduties that contribute more directly tothe bottom line and customer service.
Molewyk and his sales staff haveintroduced Towel Tracker to regional andnational fitness clubs, hotels and spas.The first Towel Tracker units sold inOctober and product production began inNovember.
23
Who is Most Likely to Commit Fraud at Your Company?Austin, TX – A fraud suspect might
not be easy to pick out of a crowd – orfrom a rap sheet.
The average fraud perpetrator hasno prior fraud charges or convictions,according to new research by theAssociation of Certified FraudExaminers (ACFE), the world’s largestprovider of anti-fraud training and edu-cation. The offender is commonlybetween the age of 31-45, and some-what more likely to be male than female.
More insights gleaned from thestudy help fill out the profile, however.Behavioral red flags, tenure at an organ-ization, position and educational back-ground are all criteria examined in theACFE’s 2010 Report to the Nations onOccupational Fraud & Abuse. TheReport is drawn from a survey ofCertified Fraud Examiners (CFEs) whoinvestigated fraud cases between
January 2008 and December 2009.In addition to studying the traits of
perpetrators, the Report includes data onhow occupational fraud is committedand detected, as well as the characteris-tics of the victim organization. For thefirst time, the Report includes globaldata among the 1,843 cases of fraudthat were studied.
Key findings about fraud perpetra-tors from the 84-page Report include:
• High-level perpetrators cause thegreatest damage to their organizations.Frauds committed by owners/executiveswere more than three times as costly asfrauds committed by managers, andmore than nine times as costly asemployee frauds. Executive-level fraudsalso took much longer to detect.
• Fraud offenders were likely to befound in one of six departments. Morethan 80% of the frauds in the study were
committed by individuals in accounting,operations, sales, executive/upper man-agement, customer service or purchas-ing.
• More than half of all cases in thestudy were committed by individualsbetween the ages of 31 and 45.Generally speaking, median losses tend-ed to rise with the age of the perpetrator.
• Most of the fraudsters in thestudy had never been previouslycharged or convicted for a fraud-relatedoffense. Only seven percent of the per-petrators had been previously convictedof a fraud offense. This finding is con-sistent with prior ACFE studies.
• Fraud perpetrators often displaywarning signs that they are engaging inillicit activity. The most common behav-ioral red flags displayed by the perpetra-tors in our study were living beyondtheir means (43% of cases) and experi-
encing financial difficulties (36% ofcases).
“Fraudsters exhibit behavioralwarning signs of their misdeeds,” saidACFE President James D. Ratley, CFE.“It’s important to remember that thishuman element of fraud – demonstratedin red flags such as living beyond one’smeans or exhibiting control issues — isnot identified through an audit or othertraditional controls.
“This is why the staff at anyorganization should be trained to recog-nize these and other common behavioralsigns that a fraud might be occurring,”Ratley said. “Moreover, they should beencouraged not to ignore such red flags,even when discovered by accident, asthey might be the key to detecting ordeterring a fraud.”
24
Five Tips for a Successful Business Trip to ChinaBy Coley Dale
China, which is expected to soonsurpass Japan as the world’s second-largest national economy after the U.S., isan increasingly important manufacturingand trading hub for American companies.Yet, traveling to China on business canseem daunting since it presents unfamil-iar challenges and opportunities whencompared to work-related visits to morefamiliar Western countries. After sevenyears of working in China, here are myrecommendations for ensuring an effec-tive, economical and enjoyable businesstrip to China:
1. Money and Credit CardsArrive with cash on-hand so that you
can exchange it for local currency whichyou will need for incidentals like cabs andother transportation. Money is easilyexchanged at the airport and most hotels.American ATM cards connected to major
networks work in most large Chinesecities. Hotels, restaurants, tour companiesand shops in the larger cities will acceptmost major credit cards, but it is wise tocarry two different types such as a Visaand MasterCard to be safe. Also, be awarethat many businesses impose a surchargefor the use of foreign credit cards so pay-ing cash can provide a cost savings.
If you try to use credit cards whiletraveling yet haven’t told the issuerswhen you will be in China, you mighthave your card suspended for suspicionof fraud. To avoid this hassle, call yourcredit card companies before you departso they know that you’ll be in China. Still,even with such precaution, some ATMsmight not permit you to make with-drawals with credit cards and you’ll haveto shop around to find one that does.Also, it pays to check with your creditcard and ATM issuers to see what ratesthey charge for usage in China since feesand percentages vary considerably.
2. CommunicationsEven if it is possible to use your
existing cell phone and carrier while inChina, such usage can be expensive dueto high roaming charges. Check your car-rier’s rates from China before traveling. Ifyou have a China-compatible SIM cardphone (call your carrier to check), youcan easily buy a prepaid SIM card toreplace your current SIM card. A moreexpensive option is to buy prepaid phonecards which are sold throughout Chinaand can be used from most phones. Oneof the most economical communicationstools is Skype which works over mostInternet connections in China. You cancall other Skype users throughout theworld for free or pay a low rate for most
calls to landlines or mobile phones inother countries.
High-speed Internet access is avail-able at most hotels with business cus-tomers. Fast WiFi is increasingly commonthroughout China and can be used forfree in many coffee shops and restau-rants. And while some U.S. websites likeFacebook and Twitter are blocked,accessing and using the Internet in Chinawill seem quite familiar for the most part.However, be aware that if you use Googlethe buttons will appear in Chinese char-acters since searches are routed throughGoogle in Hong Kong.
3. HotelsNinety percent of the hotels in China
are not brand names that most Westernersrecognize. Yet the country offers a widerange of accommodations that comparequite favorably with options found inWestern countries. Ctrip, China’s largestonline travel provider, features the coun-try’s most comprehensive online hoteldatabase and an English-language reser-vations system. Due to Ctrip’s negotiatingclout with hotels, it offers the best hotelrates which it backs up with a best priceguarantee. Ctrip’s well-staffed Englishhelpline will provide assistance in commu-nicating with your hotel before, during, orafter your trip which can be extremelyuseful due to language barriers.
In addition, consider hotels withworkout facilities (an excellent cure forjet lag) and free high-speed Internet.When you check-in, ask for a businesscard with the hotel's address on it in bothEnglish and Chinese so you can give it totaxi drivers for hassle-free cab rides backto the hotel.
4. FlightsThe best airfares to China from U.S.
cities can often be found with Chineseairlines, which are growing dramaticallyand offer some of the world’s newestplanes and experienced flight crews.Within China itself, increased competitionamongst airlines means that there aremany discounts offered for domesticflight tickets. Ctrip sells more tickets fortravel in China than any other websiteand is quick to post special domestic andinternational airfare deals to help travel-ers save money.
5. LanguageIt’s not necessary to speak Mandarin
to travel comfortably in China – especial-ly in the big cities where there are manyEnglish speakers. However, learningbasic conversational terms can go a longway to demonstrating your genuineinterest in Chinese culture which willmake a positive impression on those youmeet. Two excellent Mandarin learningtools are ChinesePod (online languagelessons) and Rosetta Stone (interactiveCDs). Or, consider downloading free orlow-cost Mandarin languages apps foryour smart phone such as those fromOdyssey Translator and WorldNomadswhich translate basic words and phrasesfrom English into Mandarin.
For additional tips on planning asuccessful business trip to China, pleasevisit http://bit.ly/chinatips.
Coley Dale is the senior businessdevelopment manager for the Englishlanguage version of Ctrip, China’s largestonline travel provider. He has lived inChina for seven years and speaks andwrites fluent Mandarin. He has travelledextensively in 16 of China’s 22provinces.
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25Latest MNI Numbers Indicate More Losses for
Michigan ManufacturingEvanston, IL – Late last December,
Manufacturers’ News, Inc. (MNI)released their national analysis of theU.S. manufacturing industry. MNI pub-lishes industrial directories for all fiftystates on a monthly basis, and thisreport compiled the state-by-statereports released in calendar year 2010.According to MNI, industrial employ-ment in the United States declined 4.1%and the number of U.S. manufacturersfell 3.3% (compared to data collected inprevious editions). This represents anational loss of 12,368 manufacturersand over 700,000 workers.
According to MNI, Michigan toppedthe list of states that lost the most indus-trial employment with a decline of 79,101jobs. The report also indicated thatMichigan lost 913 manufacturers, com-ing in a close second to Florida whichtopped the list at 932. Third place forgreatest losses in both categories went toCalifornia (78,723 jobs, 819 manufactur-
ers) and fourth to North Carolina (51,831jobs, 710 manufacturers).
In MNI’s 2010 year-end list of thetop U.S. cities by number of manufactur-ing jobs (located within city limits),Houston took the top spot for industrialemployment (228,226 jobs) followed byNew York (139,127), Chicago (108,692)and Los Angeles (83,719). Detroit (at32,305) comes in as the 45th largestindustrial employer in the nation afterfalling from 29th place when MNI lastcompiled the list in August 2008. GrandRapids now occupies the 32nd spot withjust over 40,000 jobs. Nationally,Michigan’s top 10 industrial cities havelost a total of 95,805 manufacturing jobsor 8.4% over the past 2 years.
Last year, MNI’s state-by-state reportindicated that between January 2009 andJanuary 2010, industrial employment inMichigan fell 10.9%. This loss of over80,000 jobs and 913 manufacturers in2009 was the sharpest decline MNI had
ever reported for the state. Coupled withthe 42,874 jobs lost between 2008 and2009, industrial employment in Michigan
has declined nearly 16% since the start ofthe recession.
Industrial BriefsWaterloo, Ont. – Descartes announcedthat American Airlines Cargo, a divi-sion of American Airlines, Inc., hasselected its Global Filer solution to help itmanage its import customs filings to theEuropean Union’s (EU) Import ControlSystem. The solution will assist withupcoming EU regulations regardingadvanced entry declarations which takeeffect on January 1, 2011.
Grand Rapids – Veolia Energy NorthAmerica, a leading operator and devel-oper of sustainable energy systems,announced the appointment of JimMonterusso as the general manager ofVeolia Energy Grand Rapids. Monterussowill focus on customer relations, growthof the business, achieving operationalefficiency and ensuring environmentalhealth and safety.
Holland – LeanLogistics welcomedSchreiber Foods to its growing base ofclients. Schreiber Foods is a $3+ billionglobal enterprise, the world’s largestcustomer-brand dairy company, andthe largest supplier of process cheese tothe foodservice industry, including awide variety of high-quality, custom-formulated and standard products tomany of the largest restaurant chains inthe world.
Belding – Stahlin Non-MetallicEnclosures, manufacturer of theworld's most frequently specified fiber-glass enclosure products, has joined theWest Michigan Solar Supply Chain -a regional non-profit economic devel-opment organization supportedthrough investments from the privateand public sector and formed by TheRight Place, Inc.Review of Co-Opportunity
By Rolf Dobelli, Chairman,getAbstract
Author John Grant wants to changethe world, not so that he makes moneyand not because the planet’s going to
flame out, but because it’s the right thingto do and he’ll have fun. He asserts thatthe Earth can sustain everyone: there’ssufficient water and energy, and peoplecan grow enough food. But humans ruineverything rather than replenishing theecosystems they need. Individual citizensmust recognize their stake in the Earthand take altruistic responsibility for creat-ing a better world. In the face of devastat-ing climate change, Grant asks, how canthe lessons of marketing transform con-sumers – who obsess over getting morestuff for less money – into citizens who arewilling to do what’s necessary to avert dis-aster? Though his writing style is frag-mentary and convoluted, his heart and hisinformation are clearly in the right place. Ifyou’re ready to be a part of the solution ina post-consumer society, getAbstract saysthis book is for you.
John Grant. Co-Opportunity: Join Upfor a Sustainable, Resilient, ProsperousWorld. John Wiley & Sons, Inc., 2010. 350pages. List Price: $27.95. ISBN-13: 978-0470684368.
getAbstract is the leading provider ofbusiness book summaries, with more than6,000 titles covered. www.getabstract.com
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26Therma-Tru® Corp. Strengthens Marketplace
Positioning in 2011 Maumee, OH - Founded almost five
decades ago, Therma-Tru® Corp. contin-ues to strengthen its marketplace pres-ence by taking innovative steps in 2011.The company plans to increase productofferings in its popular Therma-Tru®Doors line of fiberglass exterior doorsystems while also enhancing itsFypon® line of interior and exterior syn-thetic millwork products.
“It’s been about a year sinceTherma-Tru integrated the Fypon prod-uct lines of urethane and PVC millworkproducts into our business,” says DaveRandich, president of Therma-Tru Corp.
“We’re seeing success with this strategicmove and strong synergies for our cus-tomers. Unifying the Therma-Tru andFypon products lines under our one roofoffers builders, remodelers and con-sumers a wide variety of entryway solu-tions that feature low-maintenanceexterior products to increase the curbappeal value and beauty of the home.”
Therma-Tru Doors, the nation’sleading manufacturer and most pre-ferred brand of fiberglass and steel exte-rior door systems, moves into 2011 withthe launch of several new exterior fiber-glass door options and vented side-
lights. Fypon, the nation’s leading man-ufacturer of decorative millwork ele-ments for the interior and exterior ofhomes, provides high-performance syn-thetic products that are impervious todecay, insect infestation and water dam-age.
Headquartered out of Maumee,Ohio, Therma-Tru Corp. is part of theHome & Security business of FortuneBrands, Inc. Fortune Brands announcedin December of 2010 that it intends tospin off to shareholders the Home &Security business as an independent,publicly-traded company.
“This is an exhilarating time for ourcompany,” says Randich. “The futurewill see us focus more on entrywaysolutions. At the same time, Therma-Truwill also be part of the stand-alone com-pany that is being developed as a spin-off from Fortune Brands. Therma-TruDoors and Fypon are two of the premierbrands in the current Fortune BrandsHome & Security group that will play akey role in the development of thestandalone Home & Security company.”
Additional strategic growth stepsfor Therma-Tru Corp. in 2011 includethe further consolidation of the Fyponbrand into the Therma-Tru business.Improved delivery effectiveness andoperational excellence are expected asthe distribution activities for both
brands are consolidated into one facilityin Howe, Indiana during the first half of2011.
“Our goal is to make this consolida-tion as seamless as possible for ourassociates and customers,” saysRandich. “The new distribution facilityin Howe will serve as a warehouse forboth Therma-Tru and Fypon products,as well as light fabrication of urethanemillwork products. Every step we’re tak-ing strengthens our marketplace posi-tioning along with our ability to offermore and better products to our cus-tomers.”
IndustrialBriefsThree Rivers – ArmstrongInternational has awarded scholar-ships to five Western MichiganUniversity chemical engineering stu-dents who are studying energy man-agement. Recipients of the 2010 awardare Kristen Bellmer, Caleb Pease,Casey Kick, Katie Risnes and ThomasMerckley.
Holland – LeanLogistics announced anintroductory offer, SmartStart 2011, toassist shippers with their carrier pro-curement events. The promotionalpackage includes a complimentarythree-month LeanDex™ trial subscrip-tion with the purchase of theLeanSource™ DIY procurement appmade by January 31, 2011.Detroit – The U.S. Army Corps ofEngineers, Detroit District, hasannounced the MacArthur Lock will beclosed for the winter. Additionally, thePoe Lock will remain operational 24hours per day through Jan. 15. The Poe,which can handle 1,000-foot vessels, isthe largest and most modern of thelocks at the Soo.
Waterloo, Ont. – Descartes SystemsGroup announced that Dole OceanCargo Express, a division of Dole FoodCompany, has selected Descartes'Global Filer to manage its import andexport customs filings for the upcomingEuropean Union regulations onadvanced entry (ICS) and exit (ECS)summary declarations.
Grand Rapids – Tracy Golden-Sanchez,the employee solutions specialist atExpress Employment Professionals,recently received the Certified StaffingProfessional designation from theAmerican Staffing Association. TheCSP program promotes industry-widecompetency standards through a uni-form national program.
San Jose, CA – RiseSmart, a provider ofnext-generation outplacement andrecruitment process outsourcing solu-tions, announced the appointment ofMeshell Richman as vice president ofsales in the Midwest region. In her newrole, Richman will be responsible forexpanding the growing company’sunique outplacement and RPO solutionsnationally.
Grand Rapids – The Western MichiganChapter of the Association for CorporateGrowth announced its board of directorsfor 2011. Officers included: presidentPaul Guerre; vice president/presidentelect Chuck Smeester; past-presidentJohn Arndts; secretary David Hensch;treasurer Kraig Harper; and executivedirector Julie Metsker.
Grand Rapids – Arkansas' #1 pizzachain Larry's Pizza has launched a newfranchise in West Michigan. The loca-tion, with its award-winning and unique“lazy man’s buffet” where 23 specialtypizzas are “announced” as they eachleave the oven and then paradedthrough the facility for patrons, has cre-ated over 30 jobs in Michigan.
South Bend – Michael J. Gerndt Sr., acaptain and training coordinator with theDepartment of Public Safety for the SouthBend Airport, has recently been namedas the recipient of the 2010 William T.Schmidt Lifetime Achievement &Education Award presented to individualsin the public safety profession who havededicated their careers to the educationand training of others.
Byron Center – Global Vision® hasjoined the fight against breast cancerwith their new product Fightback™.These sun glasses are available in anassortment of 3 shades of pink with amatte “soft-touch” finish and EVA vent-ed foam padding. Now, as an officialsponsor of the National Breast CancerFoundation, Inc., Global Vision willsupport the NBCF’s goal of “saving livesthrough early detection and to providemammograms for those in need” withevery pair of glasses sold.
Grand Rapids – Crystal Clean announceda new service offering customers indoorclimate-controlled storage for boats, RV's,trailers, autos, motorcycles, snowmo-biles, ATV's and most everything else acustomer would want to be kept safelyindoors. Crystal Clean will offer this serv-ice in a newly-acquired 60,000 sq. ft.facility (the former Steelcase EmployeeSales Building) located at 904 36th Streetin Grand Rapids.
Grand Rapids – At its December 21 meet-ing, the Grand Rapids City Commissionappointed David Maxam, AIA, LEED-AP, to the Historic PreservationCommission (HPC). The three-year termis effective January 3, 2011. This isMaxam’s first appointment to the HPC.
Battle Creek – Battle Creek Unlimitedreceived recognition at the annual meet-ing of the Mid-America EconomicDevelopment Council for an economicdevelopment award in the updatedbrand award category. Paula Young,marketing coordinator for Battle CreekUnlimited received the award.
Grand Rapids – The Grand Rapids ArtMuseum (GRAM) announced that it hadsold more than 30,000 tickets for itsspecial engagement exhibition "Diana -A Celebration." In order to better servethe market demand, the museumexpanded its hours to view the exhibi-tion during the holiday season. GRAMalso announced that Charles Spencer,Ninth Earl of Spencer and youngerbrother to Princess Diana, will be inGrand Rapids with planned visits toGRAM on Monday, Jan. 10 and Tuesday,Jan. 11. The exhibition will be on view atGRAM until Feb. 16.
Detroit – Rick Hendrick, owner ofHendrick Motorsports and chairman ofHendrick Automotive Group, has pur-chased the first Chevrolet Volt offered forsale. Proceeds will benefit science, math,engineering and technology educationinitiatives through the Detroit PublicSchools Foundation. The vehicle, bear-ing the vehicle identification numberBU10002, was sold for $225,000through an online auction.
Grand Rapids – The Board of Directors ofthe Grand Rapids Area Chamber ofCommerce has added four new mem-bers to its ranks: Deb Bailey (SteelcaseInc.), Stacie Behler (Meijer, Inc.), RickDeVos (Art Prize) and Michael B.Verhulst (Summit LandscapeManagement, Inc.).
South Bend, IN - November markedmany things for the South Bend Airport(SBN); the opening of Phase I of the air-port’s new terminal expansion, comple-mentary Wi-Fi, a new restaurant facility– and a surge in the number of passen-gers taking advantage of the newlyupdated facility. For the fourth consecu-tive month, SBN is reporting increasedpassenger numbers. November 2010reports show that total passenger trafficat the South Bend Airport was up 7.7percent over November 2009. A total of51,382 passengers chose to fly throughSBN this November.
Schaumburg, IL – Zurich, a leadingprovider of property and casualty insur-ance in North America and globally,announced Frank Hammers as GreatLakes Area Executive for Zurich inNorth America, effective immediately.Hammers will be based in Independence,Ohio and focus his efforts on buildingZurich's business segments in Indiana,Kentucky, Michigan and Ohio.
Grand Rapids – Local First announcedthat West Michigan-based PriorityHealth has recognized it as an eligiblegroup for health insurance. Local Firstmember businesses will be able to pur-chase employee health insurance plansthrough Priority Health.
Grand Rapids – Interphase Interiorsannounced that David Ysseldyke hasjoined the company’s Grand Rapidsoperations as an account executive.Ysseldyke was hired to manage largeaccounts with a focus on new businessdevelopment.
East Lansing - Douglas Buhler, associ-ate dean of Michigan State University’sCollege of Agriculture and NaturalResources, is being recommended toserve as interim dean of the college.The appointment of Buhler, a professor ofcrop and soil sciences who also is associ-ate director of MSU AgBioResearch, for-merly the Michigan AgriculturalExperiment Station, is pending approvalby the MSU Board of Trustees.
Corporate Information 27
Review of Work theSystem
By Rolf Dobelli, Chairman,getAbstract
Author and project engineer SamCarpenter owns Centratel, a now-profitabletelephone-answering company that spent15 years barely surviving. When Carpenterwas working 80-hour weeks struggling tomake payroll, he was a basket case – nerv-ous, tense and depressed. He got by on alot of coffee and very little sleep. Then, he
had a eureka moment. He suddenlygrasped that many different systemsdirected his life and work. He saw that ifhe could control and perfect these systems,he could solve many complex issues. Thisrealization changed his life. Now,Carpenter enjoys himself and works only acouple of hours weekly. He has time foreverything he wants to do, and his busi-ness hums along. The refreshing thingabout this book is Carpenter’s personalperspective as a business owner who fig-ured things out for himself. It’s not justanother volume reflecting the theoreticalideas of a management consultant or pro-fessor. Carpenter explains his systems-management approach so well that youcan use his accessible methods to improveyour operations and your personal life.getAbstract recommends this logical bookto small-business owners and all thosewho want to improve the way they runtheir lives. The caveat: You have to get towork.
Sam Carpenter. Work the System: TheSimple Mechanics of Making More andWorking Less. Greenleaf Book Group,2009. 304 pages, List Price: $22.95. ISBN-13: 978-1929774876
getAbstract is the leading provider ofbusiness book summaries, with more than5,000 titles covered.
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