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2 Small Business Lending on the Rise

By Jane Whittington According to the National Bureau of Economic Research, the latest recession started in December of 2007 and ended in June of 2009. This may come as a surprise to many who, since 2009, have continued to face unemployment, foreclosure, declining home prices, dwindling bank accounts and all the ills of the modern global economy. However, over the course of the last year, we have seen definite signs of progress as unemployment rates have dropped, sales of new and existing homes are on the uptick and confidence is rising. As part of the improving economy, the online publication Small Business Trends reported in March of 2013 that, according to the Small Business Administration (SBA), Small business lending is up for the first time in ten quarters. The SBA also noted that loans in all size categories (under $1 million, between $100,000 and $1 million and under $100,000) all saw increases. The Wall Street Journal reported in July of 2013, The total number of small business loans jumped up 10.4 percent last year, according to a report released by the U. S. Small Business Administrations Office of Advocacy. The agency defines small business loans as bank loans under $1 million. Steve Potter, Senior Vice President/Commercial Banking at Independent Bank in Grand Rapids, says, Volume in lending here at Independent Bank is definitely trending up as gains in big business trickle down to owners of small businesses. The recession forced many business owners to become as lean as possible, and those hard decisions are serving them well as the economy recovers. Our business customers are, for the most part, doing well. Those strong enough to weather out the recession are now seeing their businesses grow as the overall economy grows. He continues, We are making loans to both established businesses and startups although, of course, its harder for new entrepreneurs to get funded because they dont have track records that we can look at as we consider the viability of their businesses. Potter says, There are five things we look at as we determine whether we will be able to offer the business owner a loan. The first is character. Are they the kind of people who can be counted on to pay back the loan? Second, we look at cash flow. With an established business, this is relatively easy. A start-up doesnt have a track record, but we will look closely at projections and business plans. Third, we are looking at what collateral they have to offer. Then we will look at economic conditions and whether we feel it is a good time to start or grow a particular business. And last, we look at how much money the business owner will be putting into the business. Depending on the size of the loan, it may be approved by one bank officer or by many. Potter says, During the recession, it was more difficult to make loans because both cash flow and collateral on the part of a business was weaker than it is today. As the economy has improved, it has become easier for people to get loans. The Small Business Association has programs to facilitate business loans. While they do not make direct loans to small businesses, they set the guidelines for loans, which are then made by its partners such as banks and community development organizations. The SBA guarantees that that these loans will be repaid. This eliminates some of the risk to the lender. Potter says, The SBA is used when conventional funding is not available. If we have a loan request which fits within our loan policy, the loan is approved without credit enhancement. In the event that the request doesnt fit with policy, the deficiency may be mitigated with an SBA enhancement. When the bank approves a loan with an SBA guaranty, and the borrower agrees to move forward with the financing, the bank may complete the application and facilitate the loan closing internally. If the financing is complex, we may work with an external agency to help process the loan application and approval. He continues, Less than 25 percent of our loans use SBA enhancement. That doesnt mean that the loan is risk free for the bank; the SBA guaranty only covers a percentage of the loan deficiency. According to Potter, there are three main drivers of the local economy: the automotive industry, office furniture and medical/healthcare. All three are currently strong and growing. Potter says, We are seeing lots of demand for new loans at Independent Bank. Thats true throughout our Michigan locations. Independent Bank is headquartered in Ionia and was founded nearly 150 years ago. There are 70 banks in the system, most in rural communities, including four in Grand Rapids. Seventy-five percent of their business loans are between $500,000 and $5 million. However, they are currently working on completing a $30 million loan in partnership with other banks. Independent Banks relationship with those to whom they lend money does not end when the check is handed over. According to Potter, We want to keep the loans we have, and in order to do that, we have to develop strong relationships with our clients, service their needs, understand what they are trying to accomplish and how we can help them achieve their goals. Theres a big service component. We dont just walk away; we stay involved. Our loan officers act as small business advisors. We want our clients to succeed, and we work with them to make that happen. Jane Whittington is a freelance writer and editor who lives in Grand Rapids.

Insurance/Banking Briefs
Sparta ChoiceOne Bank announced it is included in the Independent Community Bankers of America first-ever Top 50 list of community banks using social media in the U.S.. Grand Rapids Independent Bank announced it partnered with Sallie Mae to offer customers a private education loan program to help families save money and pay off their loan faster than other alternatives. Designed to supplement federal student loans and other financial aid, Smart Option Student Loan offers degreeseeking students competitive interest rates to cover up to 100% of their education expenses, as well as in-school payment choices to help them graduate with less debt. Grand Rapids Lake Michigan Credit Union announced promotion of Matt Cook to Director of Community Relations.

3 Michigan Universities Attempt to Add Value through New Features, Programs

By Luke Van Der Male Education is expensive, and becoming more so. President Obama remarked on this fact in his speech to Knox College in Illinois that today more students are earning their degree, but soaring costs saddle them with unsustainable debt. In particular, dramatic decreases in Department of Education spending has brought focus to Michigans educational environment. With tuition rising almost universally, and, as of July, Federal Direct loans interest rates doubled, old questions become more poignant. Is college worth it? Do graduates make more money? Are they more easily employed? What skills are marketable? Such queries have not fallen on deaf ears, as Michigans universities fight to remain relevant by providing a plethora of new services and features. They have added and extended popular programs in economics and human resources, provided needed diversity to hard science fields, finished buildings, and won numerous awards.They have brought in a renowned professional in education reform to found an entirely new department. But this added value is necessary if tuitions will continue to rise. The Provost Office at Grand Valley State University said their principal concern in education is the cumulative effect of budget cuts on tuition and thus on affordability. The level of financial support from the State has declined dramatically over the past decade to a point where public universities are becoming more like private universities.The Michigan House Fiscal Agency found that the average annual cost of providing a degree (adjusted for inflation) increased from $11,624 in 2001-02 to $11,860 in 2012-13, or only $18 a year. However, the legislatures support for Michigan universities in the same time period decreased from $6,698 to $3,583, a $3,115 cut. To make up that difference, universities had to increase tuition from $4, 945 in 2001-02 to $8,277 in 2012-13, a $3,332 increase. This issue is echoed from Calvin Colleges provost Claudia Beversluis who said some of a student's principal concerns are How will I pay for this? Is this a worthwhile use of my time and money, and what will I do when I am finished? In 2009 the Department of Education spent 2.7 billion dollars on Michigan students and schools; through contracts, grants, and direct payments. This figure plummeted by over 2 billion dollars in 2010 to 663.2 million. Exacerbating the situation, the tuitions have risen nationally since 1981. In 1981, it cost $6,400 for a full year of tuition, room, and board at a full-time public university, inflated to 2010 dollars. The same figure is $15,600 in 2010. Given the seeming importance of affordability to incoming students, it may come as a surprise that in spite of these costs, 66.2 % of new high school graduates in October 2012 were enrolled in college. What makes education worth so much? Perhaps the persistent demand is not irrational. According to the Bureau of Labor Statistics, the unemployment rate for a 24 or older workers with a high school diploma is 8.3%, compared to 4.5% for those with a Bachelor's degree. Further, the high school groups median weekly earnings were a scant $652 when compared to $1,066 for the degreed group. Regardless of what numbers can explain, Michigan universities are anything but stagnant. The previously cited Provost Office of Grand Valley State University says that students main concerns are about affordability, ability to pay off student loans, and the usefulness or the value of a bachelors degree. So the name of the education game is increasing the value of the degree, even as tuition does the same. One way Western Michigan University is doing this is by expanding a popular program. Westerns human-resources degree, called Master of Arts in Leadership for Organizational Learning and Performance, is newly available on their MetroDetroit campus. The degree a common among unconventional students returning to college while they continue their full-time job. Dr. Larry Buzas, the degrees coordinator, said in an email announcement that "The program focuses on innovative technologies for learning That enables our students to create training and development opportunities for their organizations that promote more efficient and effective learning." The announcement goes on to say that Program graduates will be adept at managing training and development projects and processes as well as measuring the impact of their efforts. Not to be outdone, Davenport University announced that Dr. Andre Perry, a nationally renowned education reformist, would be the Founding Dean of its new College of Urban Education. According to their announcement; Dr. Perry will lead development of a College of Urban Education that will change how teachers and education leaders are prepared for service in urban K-12 settings. Davenport received a $200,000 grant from The Steelcase Foundation that will be used to form a national advisory committee and commence development of a proposed Master's program in collaboration with Grand Rapids Public Schools. Michigan State Universitys engineering and computing may also be quite different in the near future as they prepare for the changing face of education with a renewed emphasis on diversity. Theyve partnered with the National Center for Women and Information Technology, according to Matt Rush of CBS Detroit, to increase the number of female student in the field. Rush quotes Lucy Sanders, CEO of NCWIT, as saying Encouraging young womens interest in technology careers is critical. Our workforce needs their creativity and their innovation. Thus, Michigan State endeavors to broaden the appeal of valuable fields. Diversity appears to be a perennial concern in education. Ferris State University approved a professional audit of its diversity strengths and weaknesses, to be, a foundation for creating a new diversity plan. Of course, not all the Michigans universitys changes are in representation. Grand Valley State University just finished construction on the Mary Idema Pew Library on the Allendale campus, with traditional shelves for 150,000 books, and automated storage and retrieval for 600,000. It also boasts a rooftop reading garden, a balcony on the top floor with an excellent view of the campus, dozens of modern-looking sitting areas intentioned variously for group collaboration, lounging, and private study. On its Pew campus, Grand Valley is completing work on the L. William Seidman Center. Continued on page 5

Putting Michigan Back to Work: MichiganWorks! 4

By Jane Whittington One of the most disheartening aspects of the recent recession was seeing the unemployment rate rise throughout the country. In Michigan, our unemployment rate was even higher than the national average thanks to our dependence on the automotive industry and its struggles. As manufacturing faltered, businesses closed, and workers were laid off or had their hours reduced. Americans saw the housing market plummet, banks that needed taxpayer money just to stay afloat and a general decline in consumer confidence and security. Now the recession is technically over, but unemployment remains higher than we would like, and jobs can be hard to find. The Bureau of Labor Statistics (BLS) releases monthly figures on the unemployment situation. At the end of June, they reported that total nonfarm payroll employment increased by 195,000 in June, but the unemployment rate was unchanged at 7.6 percent nationwide as more people entered the labor market. The BLS said, There has been little change since February. The unemployment rate for adult women edged up in June to 6.8 percent while the rate for adult men (seven percent), teens (24 percent), African-Americans (13.7 percent) and Hispanics (9.1 percent) showed little or no change. They reported that employment rose in leisure and hospitality, professional and business services, retail trade, health care and financial activities. In June, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents to $24.01. Michigans unemployment figures have remained stubbornly higher than the countrys as a whole. Our states unemployment rate in May of 2013 was 8.4 percent, unchanged from the previous month. Back in August of 2009, it reached its high during this recession of 14.1 percent. MichiganWorks! has, since 1987, been on the frontlines striving to bring together the unemployed with employers who are looking for workers. Its stated mission is to provide leadership and services and promote quality and excellence for the advancement of Michigans Talent Development Systems and its customers and professionals. Part of their mandate is to build and maintain strong relationships with legislators and others on behalf of the MichiganWorks! System. This system is the first unified talent development system in the US and is in the business of facilitating Michigans economy, today and into the future. Every county in Michigan is served by a MichiganWorks! agency; there are 25 such agencies in our state. (These are listed at www.michiganworks.org/agencies/map/) The local MichiganWorks! services both Kent and Allegan Counties and has two offices in Grand Rapids, one in Sparta and one in Allegan. According to Jane Kreha, Marketing and Communications Coordinator, Essentially, we have two customers: the employer and the potential employee. We have recently refocused on the employer and have just hired eight business services representatives who will be contacting employers throughout Kent and Allegan County to explain to them how we can help them recruit and retain excellent employees. She continues, This refocusing came about as a directive from state government. Our primary customer category is now employers who are looking for qualified workers and/or those who want training for new or existing employees. Our secondary customer category is job seekers who are looking for employment or a new career and/or job training or a skill upgrade. The services offered to employers are within two categories: basic attraction and retention services and services designed to help businesses maintain competitive strength. For job seekers, MichiganWorks! offers workshops and training programs; computer access; WorkKeys training; and some financing for workers to use for tuition at community colleges, universities or other training providers. MichiganWorks! offers employers: MI Talent Connect postings and searches Pre-screening of job applications Background and credential verification Business seminars Job fairs WorkKeys testing Customized training for current and/or potential employees On-the-job training Labor market information Entrepreneurial development Layoff prevention Tax credit assistance Business attraction. MI Talent Connect is the states job portal where resumes and job openings are posted. Workshops and training programs for job seekers include topics such as job searching techniques; Internet job searches; resume writing; interviewing skills; career exploration; basic computer training; GED assistance; and English as a second language. Computer access allows job seekers to search the Michigan Job Bank for openings, post resumes online and research different careers. Job seekers are also offered WorkKeys testing in mathematics, locating information and reading in order to earn the National Career Readiness Certificate. In addition, there is some government funding administered through MichiganWorks! that is available for those looking for training or re-training in high demand jobs. According to Kreha, Job seekers may choose the self-service option, which allows them to access computers, workshops and some other resources. Others choose a more intensive program and are assigned a case manager who helps them through the process. She continues, Everyone who is receiving unemployment funds is required to register with MichiganWorks! When we were first established in 1987, it was intended that we would be a one-stop shop for both employees and employers rather than having them work with any number of individual agencies. Kreha says, Now that we are focusing more on the employer, we are identifying common talent needs, and working with community partners like GRCC and Hope Network to develop those skills in the workforce. We also have some funding available to develop customized training for businesses. Michigans Bureau of Labor Market Information and Strategic Initiatives reported in 2013 on Michigans Hot 50, the job outlook through 2018 for highdemand, high-wage careers. The top ten are registered nurses; customer service representatives; heavy truck and tractortrailer drivers; accountants and auditors; elementary school teachers, except for special education; licensed practical and licensed vocational nurses; industrial engineers; computer systems analysts; human resources, training and labor relations specialists; and network systems and data communications analysts. For the complete list along with educational prerequisites and pay ranges, visit www.milmi.org/admin/uploadedPublicatio ns/1153_LMI_HOT_50.pdf Kreha confirms that there is a similar pattern in West Michigan. The job categories that are most in demand in this area are manufacturing and healthcare and social assistance. She says that the greatest growth is anticipated to be in healthcare. Kreha says, With our new emphasis on employers, we are working to fill existing and future positions with workers who have high skill levels and a strong work ethic. This will help not only job seekers and employers but will benefit the community as we help businesses maintain and expand their presence here in West Michigan. Jane Whittington is a freelance writer and editor who lives in Grand Rapids.

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5 Michigan Universities Attempt to Add Value through New Features, Programs

Continued from page 3 A new building for Grand Valleys Seidman College of Business, a large program, considering business, management, and marketing was the most popular major group in 2008 according to the National Center for Education. Robert A.M. Stern Architects, the architecture firm that designed the new building, says on their website that The building will provide a 200-seat multipurpose room, a caf, student lounges, student services, and a local business outreach center on the ground floor. An outdoor landscaped terrace, as well as classrooms on the second floor that will be interspersed with team study rooms, lounges, and corridor alcoves, will foster social interaction among faculty and students. At Eastern Michigan University a new Science Complex expansion is drawing less power than before the expansion. Easterns Energy and Sustainability Manager, Steven Moore, is quoted by Natalie Burg of Concentrate as saying the University keep tuitions low with such savings: "Eastern Michigan University has spent nearly $1,000,000 on utilities some years at Mark Jefferson, so every bit of energy savings equates to significant dollar savings This monetary savings can then be passed on to the students through tuition restraint." In the fall semester, Northwood University will offer its new sustainability management major to students. Northwoods website states that the program positions graduates to meet the demand for business leaders and entrepreneurs who understand the economics of sustainability. The emphasis on ecology and economics yields itself in the triple bottom line, environmental law, urban design and construction. Northwood quotes its executive vice president: There is an increasing need for business managers and enterprise leaders who understand the complex and evolving relationship between business and the environment...Sustainability practices are good for the environment as well as the businesses that implement them. Our graduates will be equipped to grow the longterm health and profitability of the businesses they lead. Grand Valley will be offering a new honors economics degree in the near future. Professor Aaron Lowen says that Students who earn an Economics Honors designation are recognized on their transcript in addition to the extra one-on-one time with faculty and small-group discussions and interactions with other likeminded students. We expect the academic and professional skill sets developed through this set of courses will benefit students in either job searches or graduate school applications. Adding value for the same tuition is a common theme among new degrees, Westerns popular Master of Arts in Leadership and Northwood Universitys sustainability management major is supposed to accomplish much of the same thing, though in very different ways. The honors economics degree is an option for students who really want to push themselves, says Dr. Lowen. Students pursuing an honors economic degree will attend a 400-level seminar class. Dr. Lowen describes them: Each seminar requires students to attend presentations by visiting scholars or faculty doing research here at GVSU. The students then have opportunities to more closely analyze the work through smallgroup discussions and practice their professional writing. Students present papers of interest to their peers and faculty. Each step involves significant and constructive feedback from faculty and other Honorsseeking students. But not all the value is for students. Both Davenport University and Grand Rapids Community College made The Chronicle of Higher Educations Great Colleges to Work For 2013. Grand Rapids Community College was recommended for its compensation and benefits, while Davenport University was recognized for this as well as its Respect and Appreciation, and Supervisor or Department-Chair Relationship. Eastern Michigan University, Siena Heights University, and University of Michigan also made the list. Ferris State University was also awarded in July. Health Communications, Inc. has given Ferris the Training for Intervention Procedures Award of Excellence award, or TIPS, for their school-wide education and training program on the dangers of alcohol. Perhaps this is an endeavor to ameliorate Ferris party-school reputation. A Facebook page called 140 Things To Do Before Graduating Ferris State University lists Get an MIP as the eighth thing to do. Though this is not an uncommon complaint among young college-goers, it is not the only such description of Ferris in popular social networking. Ferris also won an award this July from the Department of Defense. Ferris press release says it is the first university to be designated a Center of Digital Forensics Academic Excellence. In the release, Professor Greg Gogolin of the Information Security and Intelligence program said that this award in addition to the NSA Center of Excellence previously obtained and National Science Foundation research funding, places the undergraduate and graduate Information Security and Intelligence programs as one of the foremost leaders in the United States in cyber security. If you havent heard of such a field, theres no reason to be ashamed. Professor Greg Gogolins program field is unique. Digital forensics is the field of recovering data from digital devices, and Ferris is betting that its a burgeoning field. Right now, it seems to have been a good bet. Education is a difficult product to measure. Although the average years it takes to pay off a given degree for a given field tells us something, it cannot take into account the joy of learning and working at what one loves. Nor can it measure the difference between a dorm adventure to remember and an online classroom once a week. How can students compare the chances of discovering fields they are better-suited for? With so many unknowns affecting students decisions, it should not come as a surprise to find that universities attempted appeals to those students may vary significantly as well. In an economy that creates new jobs even as it destroys old ones, it may well be that the best thing a person can learn is how to learn. If this is the case, it may well be the best a college can do is be novel. Luke Van Der Male is a freelance writer studying economics and English at Grand Valley State University. You can see more of his stuff at skepticfreethought.com under numquam fidelis.

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Ann Arbor - A grant from Michigan Economic Development Corp. enables Michigan Corporate Relations Network (MCRN) to offer small businesses reduced rates for electronic desktop delivery of information resources to Michigan small businesses as a part of Michigan Information Transfer Source (MITS). Launched in 1980, MITS is one of only a handful of university-based library systems nationwide to offer such retrieval services. Small companies participating in MCRNs program pay a flat fee of $15 for each standard article or book loan. Any additional cost beyond the nominal fee is covered, including royalties and shipping. Any small business in Michigan is eligible to apply for a grant issued through MCRN by contacting an MCRN Business Engagement Office at one of the six Michigan universities participating in the program, or thru MCRNs website.

6 Credit is Cheap, If Not Easy, For Now

By Luke Van Der Male Financing fixed assets is a perennial concern among small business owners. As well it should be, as fixed costs of everyday business necessities like ovens or desks are often determinate of a firms profitability, or lack thereof. But with the financial crisis looming in our recent background and the information age blooming around us, how has credit changed? The Federal Reserve has kept rates at a 5-year low, with the target rate currently at 0.00 to 0.25%, compared to a rate of 2% in early 2008. With nowhere for this commonly cited determinant of interest rates at large to go but up, should small business owners fear for an increase in future interest rate, and its corresponding increase in the cost of capital? Yes and no says Dr. Glupker, a professor of banking with experience in the industry from Grand Valley State University, Nobody is really expecting the Fed to raise rates anytime soon. I highly doubt we will see an increase before Q2 2014. With that said, we do know rates are not going any lower. So the answer is really based on what they are financing. This is a concern for small businesses, since, as Dr. Glupker said, Fixed assets are generally financed for 5 years. Jim Bosserd, CEO of Choice One Bank, echoed Dr. Glupkers concern for future rates. On longer term loans and loans for larger items, a business should always look at the how future rate increases may affect the payments. So for longer term loans and businesses with tight cash flow ...should consider the effect of rate increases. With these concerns of the possibility of a rise in interest rates in the near future in mind, both recommended fixed rate loans to lock in current low rates. Of course, simply advising to get a fixed rate loan may be easier said than done for some borrowers. Banks need to portray themselves as a secure place for your money, and for obvious reasons. We're here to make sure life happens on your terms reads the page of West Michigan Community Bank, showing the sense of security banks to which banks aspire. Yet this aspiration is not always backed with action. Its relatively uncontroversial to argue credit was too easy to come by before the recession. The ultimate point of origin of the great financial crisis of 2007-2009 can be traced back to an extremely indebted US economy argued Michele U. Fratianni and Francesco Marchionne in their paper, The Role of Banks in the Subprime Financial Crisis, while another paper from the Social Science Research Network, An Analysis of the Financial Crisis of 2008: Causes and Solutions by Austin Murphy, blames investors who made poor financial decisions with respect to credit analysis. Perhaps it is in response to this that [b]anks have tightened their credit standards, as Professor Glupker said before he went on to point out the important bit, that these higher standards have a very large impact on small business credit. The smaller the business, the harder it will get [to get credit]. Prior to the recessions, bank management really wanted the commercial lenders to make SBA [Small Business Administration] loans. These loans are geared toward new businesses. We [Banks] did a ton of SBA loans at the time. Today, businesses are having a hard time finding financing even with the help of the SBA. Professor Glupkers remarks are borne out by the data, and although the SBAs efforts to increase credit access are still significant, the 23 billion inflation adjusted dollars in approved loans in 2012 are a far cry from the 37 billion inflation adjusted dollars approved in 2006, before the financial crisis. But we should expect that small businesses would find a way, and not all the news is bad. Mr. Bosserd remarked that [t]he basic lending requirements really have not changed, and that there are many more options today in financing, specifically listing loan guarantees but also that with technology banks can approve and document loans quicker. Technology is a wild card here as it is elsewhere, and its expected that, over time, it will decrease transaction costs in all industries, including banking. Technology has already affected loans in several notable ways. A firm called Integrated Lending Technologies offers a service to allow car dealerships to issue one page loan applications where they can expect to receive responses to those applications in minutes if not seconds. That level of automation adds value both to the clients and their customers, and it is likely that these high-tech methods will become more prevalent as such computing gets ever cheaper. Nor is Integrated Lending Technologies alone at this forefront of information systems, LendKey is a cloud-computing lending service that allows lenders to safely and quickly access lending markets for multiple asset classes, set up a full-scale, compliant lending operation within weeks and gain access to a community of like-minded lenders, as Natasha Chlingerian quoted LendKey in the Credit Union Times. Although it remains to be seen if such benefits to lenders will be passed on to small businesses. Fixed asset financing will remain to be a challenge to entrepreneurs for the foreseeable future. In the final analysis, fixed asset financing is part of the necessary risks an enterprising individual must take on to become a successful small business, regardless of how they specifically go about it. Caution is the better part of valor, so despite how the government or technology may allow for easier transfer of this risk and credit, or even innovate completely new methods of credit, the most important lesson from the financial crisis that business owners should take is that there are no free lunches when it comes to financing: contracting debt should not be done lightly. Luke Van Der Male is a freelance writer studying economics and English at Grand Valley State University. You can see more of his stuff at skepticfreethought.com under numquam fidelis.

Insurance/Banking Briefs
Grand Rapids Lake Michigan Credit Union announced addition of newest Board of Directors Member Jim Schipper, financial advisor and co-owner of Schipper & Osterink Wealth Management. Holland Macatawa Bank announced promotion of Jeremy Prins to Assistant Vice President, Branch Manager, and Infinex Financial Group Investment Representative of their Hamilton office, and will be responsible for acquiring new business and personal relationships, managing branch staff, providing strategic vision, and promoting a service and sales culture in the Hamilton market. Grand Rapids Lake Michigan Credit Union (LMCU) announced hiring Brad Cook, Senior Mortgage Originator, who will work from LMCUs new Ada branch, and Paula Darling, Mortgage Loan Originator for the Lakeshore area. Portland Independent Bank recognized Nicole Green as 2013 Portland High School Female Athlete of the Year, and was awarded a $500 academic scholarship from Independent Bank. The Athlete of the Year program recognizes excellence in the areas of scholarship, citizenship, leadership, and athletic participation. Grand Rapids Independent Community Bankers of America released the Top 50 Community Bank Leaders in Social Media and Top 20 Community Banker Influencers on Twitter. These rankings, which are the first of their kind, highlight the community bank social media trailblazers among the financial industry. Mercantile Bank of Michigan was featured on both of these lists. Kalamazoo Western Michigan University Trustees approved an affiliation agreement allowing private Thomas M. Cooley Law School to become Western Michigan University Thomas M. Cooley Law School. There are 82 public universities with law schools accredited by the American Bar Association," said Vice President for Business and Finance Jan Van Der Kley, and WMU will become No. 83." The next steps in the affiliation process will be for the schools' respective accrediting agencies - ABA, Higher Learning Commission for Cooley, and Higher Learning Commission for WMU - to review the name change agreement that is part of the affiliation accord, which is expected to take place in this Fall.

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8 Just What The Doctor Ordered: Workers Comp Prescription Drug Costs, & What You Can do About It
By Kevin Ring At NCCIs recent Annual Issues Symposium in Orlando, FL, new statistics about prescription drugs in workers compensation were unveiled. The findings were unsettling, but not surprising. While the overall share of prescription drugs as a percentage of medical costs in workers comp has stayed steady at around 18%, the drugs that are being prescribed and howthey are being fulfilled are of major concern. First, is the rising trend of physicians dispensing their own drugs. When physicians dispense, they sometimes compound drugs, leading to prescriptions that can be billed without a fee schedule and they can also charge a dispensing fee, leading to even higher costs. According to NCCI, around $50 of the $265 of prescription costs per claim can be attributed directly to physician dispensing. The other troubling statistic is the number of narcotics being prescribed. The cost per claim for narcotics is up from $39 in 2003 to $59 in 2011. This equates to a rate of .79 narcotic prescriptions per claim, up from .56 in 2003. Of these narcotics, OxyContin is the most troubling. Statistics reveal that 25.5% of all money spent on narcotics is spent on OxyContin. According to http://www.drugs.com/oxycontin.html OxyContin is used to treat moderate to severe pain expected to last for an extended period of time. It has also been in the news over the years because of the potential to get addicted to it andthe increasing popularity of it being sold on the street. The statistics seem to bear out this concern. It turns out that 5.6% of all workers comp claims that resulted in at least one prescription for any medication had included five or more prescriptions for narcotics. About 20% of claims had just one prescription for narcotics, and fewer than 2% got four prescriptions for narcotics. Knowing all of this, how can you control these costs in your business? It all starts with the doctor that is treating your injured employee. In most states, employers have the ability to direct injured employees to a doctor of the employers choice. The rules about how this can vary from state, so its critical that you discuss the exact process with your agent. Once you determine that you have the right to direct care, you have to find the right doctor. Start by searching for a doctor in your area who is board certified in Occupational Medicine. You can search at http://www.acoem.org/. If you cant find one, search your area for physicians that market services for Workers Compensation. Many urgent care clinics make great partners. Once you find a doctor, talk to them about your business. Discuss your return to work program and the types of transitional work you have available. And talk to them about their attitude on prescribing narcotics. Once you find a great doctor, then it becomes a matter of consistently pushing your injured employees to this physician. The doctor will treat the injured employees quickly and send them back to you with restrictions that you can accommodate to assign transitional duty while they recover. What if you cant direct care? In most states, even if you cant force an injured employee to see the doctor of your choice, you can still suggest that they go to a particular doctor. Saying, Doctor Bob and ABC Urgent Care has treated many of your co-workers and theyve gotten better quickly can go a long way to encourage an employee to see the physician of your choice. Choosing the right doctor, one who doesnt dispense drugs in their clinic and who only prescribes narcotics when they are absolutely necessary can go a long way to helping your injured employees get back to work quickly and be happy, healthy and productive as swiftly as possible. When you have a doctor that works with you to get your employees back to work, you have one of the most powerful tools to control your workers compensation costs. Kevin Ring is the Director of Community Growth for the Institute of WorkComp Professionals, which trains insurance agents to help employers reduce Workers Compensation expenses. A licensed property and casualty insurance agent, he is the co-developer of a new Workers Comp software suite that will help insurance professionals in working with employers. He can be contacted at 828-274-0959 or [email protected].

Health Care Briefs

Grand Rapids Michigan Blood announced hiring Dawn Kaiser, Director of Donor Services, and Donna Martorano, Director of Volunteer Services, who will both operate out of their Grand Rapids offices. Michigan Blood has facilities in Grand Rapids, Portage, Saint Joseph, Traverse City, Saginaw, Midland, and Bay City. Wyoming Metro Health Hospital was named by Soliant Health as one of the Top 20 Most Beautiful Hospitals in the country - one of only two hospitals in Michigan to make the list for the third consecutive year. Soliant Health, one of the largest healthcare staffing companies in the country, noted that Metro Health is LEED-certified. Wyoming Metro Health Hospital was named one of the nation's most wired hospitals for the fourth consecutive year. Metro Health is among 289 hospitals and health systems nationwide to make the top ranks of the Hospitals & Health Networks annual survey - one of only 16 hospitals in Michigan, and the only one in West Michigan. Wyoming Metro Health Hospital Main Laboratory was again granted accreditation by the College of American Pathologists. The accreditation review process is designed to ensure the highest standard of care for all laboratory patients and includes an on-site inspection and examination of the laboratorys records and quality control procedures for the preceding two years. Grand Rapids Spectrum Health Lemmen-Holton Cancer Pavilion will celebrate its five-year anniversary. Lemmen-Holton Cancer Pavilion was created to serve cancer patients and families by bringing together expert cancer teams and technology into one location. Kalamazoo Laurel Barber was promoted to Vice President Bronson Healthcare Group, and Administrator of Bronson Medical Practices, and will be responsible for overseeing administration of Bronson Medical Group, Bronson Methodist Hospital physicians, Bronson Lakeview practices, Bronson Battle Creek Medical Group, and Physician Recruitment. Lansing Michigan Health & Hospital Association honored three individuals with the 2013 Meritorious Service Award, the associations highest achievement award: James Austin, Administrator of Kalkaska Memorial Health Center and President of Paul Oliver Memorial Hospital, Frankfort; Brian Connolly, President and CEO of Oakwood Healthcare Inc., Dearborn; and Philip H. McCorkle Jr., President and CEO of Saint Marys Health Care. The associations 2013 Special Recognition Award was presented to Rep. Matt Lori (RConstantine), and John MacKeigan, MD, Chief Medical Officer and Executive Vice President of Spectrum Health. Detroit To help people in Michigan understand the new federal health reform law beginning October 2013, and its impact on them, Blue Cross Blue Shield of Michigan has launched an interactive website, HealthCareReformBasics.com., with information on what health insurance covers, where people can buy it, and whether people qualify for government financial assistance. Grand Rapids Lori Schuh, MD, FAAN, was named Spectrum Healths Vice President of Academic Affairs. Dr. Schuh, a neurologist, will practice as a member of Spectrum Health Medical Groups neurosciences department, located at 25 Michigan Street NE, Suite 6100.

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Ferris Designated a Center of Digital Forensics Academic Excellence

Big Rapids The U.S. Department of Defense Cyber Crime Center and the Air Force Office of Special Investigations this summer named Ferris State University as the first university in the United States to be designated a Center of Digital Forensics Academic Excellence. Ferris Information Security and Intelligence program courseware was certified as a Center of Excellence two years ago by the National Information Assurance Education and Training Program of the National Security Agency. Greg Gogolin, an ISI professor in Ferris College of Business and the 2010-11 recipient of the universitys Distinguished Teacher Award, is excited about what this newest and historic certification will mean for the program. Ferris has become the first university in the country to be designated a Center of Digital Forensics Academic Excellence by the Department of Defense Cyber Crime Center and the Air Force Office of Special Investigations, Gogolin said. This, in addition to the NSA Center of Excellence previously obtained and National Science Foundation research funding, places the undergraduate and graduate Information Security and Intelligence programs as one of the foremost leaders in the United States in cyber security. This certification is part of the DC3s stated mission to encourage the study of cyber and digital forensics science at all education levels in the United States. This educational partnership agreement, and others like it, is part of the DC3s efforts to accomplish the mission. This agreement is designed to assist in the effort of bringing scientific, mathematical and technological experience to educational institutions, the pact further states. These collaborations establish standards and best practices for digital forensics students, practitioners, educators and researchers to advance the discipline of digital forensics, and to increase the number of qualified professionals to meet the needs of law enforcement, counterintelligence, national security and legal communities, the agreement states. Faculty and students could further benefit from potential involvement in defense laboratory research projects and learning firsthand from DC3 personnel. The 60-month agreement was signed this summer by Gogolin and Joshua Black, acting director of the Defense Cyber Investigations Training Academy. Gogolin will serve as Ferris program manager. In this capacity, Gogolin will work with Black, DC3 program manager, to identify, select and prioritize activities, and ensure that the program meets the statutory and regulatory requirements of Ferris. Undergraduate students who major in ISI at Ferris take classes in Digital Forensics, Competitive Theory, Risk Analysis, Fraud and Data Mining, as well as general COB classes such as Accounting and Project Management. ISI majors specialize in one of three areas: Digital Forensics, Mobile Application Development and Penetration Testing, or Network Security. Graduate students in the ISI program take courses in Secure Communication Strategies, Intelligence Vulnerabilities, Database and Secure Information systems, and choose a specialization in Business Intelligence, Incident Response or Project Management. Classes for Ferris undergraduate ISI program are offered at locations in Big Rapids, Grand Rapids, Lansing, Traverse City and the Saginaw area through partnerships with institutions including Grand Rapids Community College, Lansing Community College, Northwestern Michigan College and Delta Community College. The graduate ISI program is based in Big Rapids. Both ISI programs offer opportunities for students to take advantage of international partnerships in multiple locations throughout the world.

10 UnitedHealthCare Expects to more than Double Accountable Care Contracts

Minnetonka, MN UnitedHealthcare will significantly expand its already substantial base of accountable care contracts over the next five years across its employer-sponsored, Medicare and Medicaid health benefit businesses, helping transform how health care is delivered, paid for and rewarded. UnitedHealthcare is placing much greater emphasis on rewarding care providers for better care and lower costs as it dramatically reduces the use of exclusively fee-for-service contracts. Already more than $20 billion of UnitedHealthcares reimbursements to hospitals, physicians and ancillary care providers are paid through contracts that link a portion of the reimbursement to quality and cost-efficiency measures. UnitedHealthcare expects that number to increase to $50 billion by 2017 as more care providers join the transition to accountable care contracts that reward quality and value-based health care. UnitedHealthcare offers the largest care provider network in the United States and has accountable care relationships with more than 575 hospitals, 1,100 medical groups and 75,000 physicians across the country. We are improving health outcomes for patients at lower costs by moving even more broadly to value-based payment models and integrating those with our care provider network, product and clinical strategies, said Austin Pittman, president, UnitedHealthcare Networks. Our unparalleled experience with accountable care models and there are many demonstrates that they can work better for everyone in health care, from patients to payers to care providers. Accountable Care Strategy UnitedHealthcares accountable care strategy includes three categories of programs that offer varying levels of integration with care providers depending on their ability to assume financial risk and affect health outcomes. By creating a flexible approach, UnitedHealthcare is able to align its programs with all types of care providers across its employer-sponsored, Medicare and Medicaid benefit plans. The level of shared accountability and financial risk between UnitedHealthcare and care providers increases with each of the three programs: Performance-based programs may include bonus-based incentives for primary care practices, or performancebased contracts with hospitals, physicians and ancillary care providers that reward them for successfully improving patient health outcomes and lowering cost. Centers of Excellence programs reimbursements are bundled for specific treatments and/or procedures (e.g., organ transplants) rather than charging for each visit or drug administered. Accountable care programs ACOs and Patient-Centered Medical Homes are among the most common. In these programs, both the health plan and care provider share in the risk and savings associated with managing patients health. Physicians have increasingly decided that the current fee-for-service model is not sustainable in the long term, but they want payment models that are more customized to meet their specific needs, said Ruth Benton, CEO of Denver-based New West Physicians. One size certainly doesnt fit all, and UnitedHealthcare has worked with us closely to create a model that provides financial incentives and infrastructure support for delivering evidence-based high-quality care. Programs Show Promising Results UnitedHealthcares accountable care strategy is showing promising trends in improving evidence-based care and quality outcomes while reducing costs. For example: Performance-based programs have demonstrated improved quality and costefficiency outcomes, such as a 14 percent reduction in the use of non-Tier 1 prescriptions and a 25 percent reduction in the use of out-of-network laboratory services. The transplant Centers of Excellence program has demonstrated a 25 percent reduction in average length of hospital stays for transplant patients, a 16 percent reduction in transplants due to applying evidence-based care approaches and improved transplant survival rates at Centers of Excellence. Accountable care programs have proven results that demonstrate improved health outcomes, such as a 4 to 4.5 percent reduction to medical cost trend, a 16 percent reduction in emergency room visits and a 17 percent reduction in inpatient days, in addition to clinical quality results trending above program targets on 95 percent of all measures. Accountable care programs focused on Medicare Advantage plan members achieved at least a 4 Star HEDIS level on screenings for diabetes, cardiovascular care, colorectal cancer and rheumatoid arthritis. Through our work with UnitedHealthcare and leading primarycare practices, we believe a health care system that rewards care providers for accountable care, instead of fee-for-service care, results in better health outcomes and curbs health care costs for our employees, said Charlie Montreuil, Best Buy vice president, Enterprise Rewards. Best Buy and UnitedHealthcare will continue to work together to help transform our health care system to make health care more accessible, affordable and accountable for quality and outcomes.

Health Care Briefs

Kalamazoo HealthCare Midwest, multidisciplinary physician group serving southwest Michigan, joined Bronson family of companies, and is doing business as Bronson HealthCare Midwest. All HealthCare Midwest medical practices and outpatient services have new names, but physicians, staff, phone numbers and locations remain unchanged with a variety of specialties at locations in Kalamazoo, Portage, Battle Creek, Paw Paw, South Haven, Coldwater, Three Rivers, Sturgis and Allegan. Grand Rapids Brian Lane, MD, PhD, Spectrum Health Medical Group, was selected to succeed Timothy ORourke, MD, as the new Betz Family Endowed Chair in Cancer Research at Spectrum Health - a position established to help support Spectrum Health physician scientists who are combining clinical expertise and research to advance cancer treatment and increase opportunities for clinical trials in West Michigan. Grand Rapids Spectrum Health was ranked among the best hospitals in the nation in three medical specialties by U.S. News & World Report in its Best Hospitals 2013-14 rankings. Additionally, Spectrum Health was recognized as high-performing in nine medical specialties with: Butterworth and Blodgett Hospitals ranking 20th in gynecology; 25th in diabetes and endocrinology; and 40th in pulmonology.

11 Cosmetic Procedures Industry Looking Good

By Cristina VanWieren Recession? What recession? According to the American Society for Aesthetic Plastic Surgery, over the past 16 years the number of cosmetic procedures performed in the U.S. has increased by 250%. The majority of procedures are not covered by insurance and can be quite expensive. In 2012 alone, Americans spent more than $11 billion on cosmetic procedures. Year after year, the most popular surgical procedures are liposuction and breast augmentation. Dr. Brad Bengtson of the Bengtson Center for Aesthetics and Plastic Surgery, located in the Womens Health Center in downtown Grand Rapids, performs about 250-350 breast augmentations each year. Dr. Bengtson is a national leader in breast aesthetics research and education and was recently honored locally as Grand Rapids Best Plastic Surgeon, selected by readers of Grand Rapids Magazine. Admittedly, I was skeptical about the industry all that money spent on enlarged breasts and facelifts? What happened to natural beauty? Yet after just a few minutes in conversation with Dr. Bengtson, I began to develop a real respect for cosmetic surgery and the women and yes men who elect to have it (10% of cosmetic procedures are performed on men). Perhaps the statistics are different in cities like L.A. or Miami, but the majority of Dr. Bengtsons patients come to him hoping to achieve a natural, balanced look in proportion with their bodies. The best plastic surgery, he says, is with patients you cant tell have had it. Many of the breast augmentation surgeries are performed with the goal of correcting an asymmetry or to restore volume perhaps in a mother who has spent a great deal of time nursing her infants. When our natural beauty does not look so natural, our self-image suffers. To feel good about our appearance? To be comfortable with ourselves? Yes, it is worth the financial cost. I asked the doctor about other costs recovery time and pain. Dr. Bengtsons methods provide what he calls a fast track recovery program. Breast augmentation surgery is performed through a crease/fold about one inch long. No trauma occurs no bleeding. In the recovery room, after the 30-40 minute procedure, patients already lift their arms. Then, they head home for a nap. That same day, Dr. Bengtson instructs his patients to get out of the house go to the mall or out to dinner. The only pain reliever needed is a non-narcotic such as ibuprofen, prescribed for possible mild soreness or pressure. What about the other side of the business? In 2012, 83% of cosmetic procedures performed were non-surgical. These less invasive procedures include everything from laser hair removal to cosmetic injectables. The number one procedure for the last two years is Botulism Toxin Type A injections what many of us think of as Botox with over 4.1 million procedures performed in 2012 alone. Other popular procedures include hyaluronic acid (another type of dermal injectable), laser hair removal, microdermabrasion, and chemical peels. My curiosity risen, I accepted Dr. Bengtsons offer to come into the office for a consultation. While technically a doctors office, it felt a little more like walking into the lobby for a spa or resort. I was greeted by soothing colors and dcor, comfortable seating, and friendly staff. Luba, a licensed Aesthetician, took care of me. Using a unique imaging device by Visia, I was given a facial assessment report, analyzing my skin texture, wrinkles, and UV spots among others. Based on my results and skin type, Luba recommended what to her is an old-school procedure called dermaplaning. After the procedure I was treated to what felt like a facial but was much more. During all of this, I learned a great deal from Luba about caring for my skin. Skin damage is much easier to prevent than to correct, she said. When I left Luba and the Bengtson center for Aesthetics and Plastic Surgery, I felt both educated and, well, pretty. Cristina VanWieren is a high school math teacher and aspiring writer.

12 Construction Briefs
Grand Rapids Kentwood Office Furniture announced Karenann Ford joined as Design/Sales Administration, formerly from Charter House Innovations, and received her Bachelor of Fine Arts in Interior Design from Kendall College of Art and Design. Allegan Allegan County United Way announced hiring new Executive Director, Sue Ann Culp, who brings a wide range of talents - notably in fund development, creative rebranding, and remarketing of mission statements. Ada Erhardt Construction announced Tim Johnson joined the company as Field Manager for the construction of the Amtrak Passenger Terminal in downtown Grand Rapids. Ryan Nelson was also hired as Project Engineer, working on site at the new Department of Veterans Affairs Community Based Outpatient Clinic, currently under construction in Wyoming. Grand Rapids Interphase Interiors, local Haworth dealer, recently assisted Spectrum Health in the consolidation and modernization of their human resource department headquarters. The new headquarters, situated on two floors of the Bridgewater Building in downtown Grand Rapids, was completed in April. Grand Rapids Custer announced three of their Custer HealthWorks designers, Beth Bronson, Kate Early, and Megan Kuzma, passed the Evidence-Based Design Accreditation and Certification Healthcare Exam. The program is recognized internationally by the Center for Health Design, and awards credentials to individuals who demonstrate a thorough understanding of how to apply an evidence-based design process to the design and development of healthcare settings. Grand Rapids Wolverine Building Group began the interior expansion of Smith Haugheys Grand Rapids office into the Ledyard Building, with a projected completion date of mid-August. In November 2011, Smith Haughey relocated to the Flat Iron Building, Grand Rapids oldest commercial building. West MI CRB announced new leadership roles of: Marika Hawes-Ruhrup, PE, LEED BD+C - Secretary for West Michigan Chapter of ASHRAE Board; Ryan Callahan - Kalamazoo County Drafting Advisory Committee Chair; and Paula Van Valkenburgh, AIA, LEED AP - Chair of the Michigan Board of Architects. Lansing H, Inc., announced Michigan Public Service Commission signed a lease for 61,000-square-feet of office space at the Prudden Tech Centre, with the first automotive historic restoration project in Michigan now nearly full. Lansing Clark Construction Company was selected as Construction Manager for the Biosciences Building to be built at Central Michigan University with construction scheduled to begin after the 2013-2014 school year, and will take the place of an apartment complex in the south campus area. Bloomfield Hills Hubbell, Roth & Clark, Inc., professional engineering services, welcomed Tia Klein, P.E., rejoining the firm as Project Services Manager after several years with Michigan Department of Transportation Detroit Transportation Service Center as Senior Contract and Project Administration Engineer, where she was responsible for construction and design project management, consultant contracts management, and local agency programs management. Grand Rapids Chicago-based dbHMS acquired Sustainable Mechanical Design Associates (SMDA) in a move that will allow dbHMS to expand its consulting services in Michigan. A 55-person minority-owned firm founded in 2002, dbHMS provides building systems design, high-performance building simulation, sustainability consulting, and lighting design. The Chicago firm will phase out the SMDA name and provide building, mechanical, electrical, plumbing, and fire protection design, as well as building assessments and commissioning services for western Michigan out of the downtown Grand Rapids office. dbHMS already completed commissioning the new Gordon Foods Corporate Headquarters, and is also the commissioning agent for the Downtown Market. dbHMS worked with Rockford Construction on day-lighting studies and commissioning for their new corporate headquarters now completing construction at Seward Ave and First St., NW. Kalamazoo CSM Group announced Corporation Hall was awarded Associated Builders and Contractors, Inc., Award of Excellence in the Green Building, $5-$10 MM category. Corporation Hall is a 33,000-square-foot renovated building located in Downtown Kalamazoo. Kalamazoo CSM Group welcomed Katrina Reed, who will provide support in development of the companys marketing strategy and business development activitie and announced Project Manager Eric Kella received Certified Healthcare Constructor certification. Lansing Clark Construction Company was selected as Construction Manager for upgrades to Oakland Universitys Upper Playing Fields, currently under construction. The $7 million upper playing fields project will include new outdoor recreational and athletic facilities, and accommodate NCAA Division I athletic events including tennis, track and field meets, club and intramural sports competitions, and a variety of fitness and recreational activities welcoming university faculty, staff, and community visitors. Construction is expected to be completed in August 2014. Grand Rapids Wolverine Building Group welcomed new Assistant Project Manager and Project Superintendent Landon Jones to assist with construction of national student housing facilities. Grand Rapids Rockford Construction announced: Adam Jones is now Vice President of Multi-Unit Housing; and Superintendents: Dave Buschke, Tim Dora, and Scott Dunneback completed ASHE Health Care Construction training, and are now certified.

Industrial Briefs
Kalamazoo Landscape Forms introduced Parallel 42TM, modular wood bench system created from reclaimed wood and metal. Lengths of hardwood in parallel lines wrap steel supports to create elegantly simple building blocks for activating social space. Three pieces - a left hand, right hand, and wedge - are modules that can be used singly, or in any combination to create borders, resting places or enclaves. Grand Rapids Corrigan International, division of Corrigan Moving Systems, a Grand Rapids relocation company dedicated to elevating moving experiences for families and businesses, earned the premier International Federation of Furniture Movers Accredited International Mover certification - awarded to companies for completing a robust audit where they are scored in a number of categories including quality objectives, service processes procedures, claims procedures, customer feedback procedures, and quality of facilities, equipment and technology. Grand Rapids Marc H. Foerster joined Crystal Flash as Vice President of Business Development, and will be responsible for coordinating marketing, sales, customer service, value engineering, and new product and service development activities. Farmington Hills Pogoda Companies signed a new contract with Secure Self Storage of Monroe, which contains 412 units, is fully lit and gated, and offers climate control storage and non-climate control storage. Muskegon Nichols, distributor of supplies and solutions to make clean and healthy facilities and ensure safe shipment of products for the healthcare, education, industrial, building service contractor, and lodging industries, acquired Industrial Cleaning Supply (ICS) - family owned and operated janitorial/sanitation distributor. ICSs expertise and focus on the government and education markets will greatly contribute to expanding Nichols product offerings in the Greater Detroit market. Grand Rapids Supply Chain Solutions announced it acquired the freight forwarding business unit of England Logistics, a top 10 freight brokerage firm and third party logistics provider. The acquisition gives SCS offices in Los Angeles, Shanghai, Qingdao, and Ningbo, China. SCS currently operates offices in Michigan, Indiana, Illinois and Virginia. For international customers of England Logistics, SCS can provide customs brokerage, international compliance support, supply chain, supply chain technology tools, and a world-class customer service organization. Additionally, Supply Chain Solutions announced it acquired Vanik International, Inc. a Westmont, Illinoisbased international freight forwarder run by Vandana Bahl, who founded the company in 1994. According to Bahl, Vanik International, Inc., handles project cargo, oversize vehicle exports, temperaturecontrolled container shipments, letter of credit, and direct collection letter shipments for a variety of clients - from food companies to heavy equipment manufacturers.

13 Heavy Lifting A Good Outlook

By Cristina VanWieren We see them repairing our roads and bridges and we grumble about the slowdown on the freeway. But, those in the construction equipment industry probably have a different perspective. The more big machines in use, the better. Construction equipment operators drive, maneuver, and control the heavy machinery used to construct roads, bridges, buildings, and other structures. They move materials and clear and grade land. The median annual income for a construction equipment operator is approximately $40K. Those able to drive multiple types of equipment have the higher end earning potential. Heavy equipment operators are employed by local and state governments, utility companies, and other specialty trade contractors. While Michigan as a whole has not followed the national employment trend in the construction industry over the year, the West Michigan area is holding its own. Nationally, over the past 12 months employment in the construction industry grew about 3.4%, whereas in Michigan construction employment dropped roughly 1.3%. Yet, here in West Michigan, things are looking up. I recently spoke with Ed VanSweden, VP and general manager of Cloverdale Equipment Co. of West Michigan. Cloverdale deals primarily in lifting equipment cranes, areal lift platforms, rough terrain forklifts. In 2010, when the construction industry in Michigan was at its lowest employment levels in over 20 years, and throughout the recession, Cloverdale actually maintained growth. Future growth? Mr. VanSweden has positive expectations for continued growth in the construction equipment industry. He sees moderate growth coming in large part from the private sector plant renovations and updating of equipment. Paul Roussey of Titan equipment has also seen growth in the industry. Titan works primarily with commercial construction contractors and industrial/manufacturing plants. Titan is one of Michigans top retailers of reach telehandlers (Genie forklifts, SkyTrack forklifts) as well as manlift equipment such as scissor lifts and boom lifts. About 60-65% of Titans revenue comes from equipment rental, the rest coming from equipments sales and service. This follows a global trend in rental equipment becoming a higher portion of the end-users fleet. During the economic downturn in our nations recent recession, companies held on to aging equipment. Paul attributes some of Titans recent growth to these companies now being able to dispose of older equipment and upgrade to newer models. This is a national trend in the heavy equipment industry, according to Nathan Medcalf, editor of Equipment Journal. Titan is particularly excited about new equipment they will be offering this fall: 180-foot tall Genie booms. These machines are 30 feet taller than what they currently offer. Technological advances have brought a lot of changes to the construction equipment industry. Inventory control systems, record maintenance, and correspondence are all computerized. The market for construction technology products is vast. Software tools and applications abound, all designed to lower costs, increase productivity and improve efficiency. Part of this trend has been pushed by EPA regulations on emissions of heavy equipment engines. This is good for the end user, as machines now have greater fuel efficiency, greater power density, and increased productivity decreasing the total cost of ownership. As the equipment has evolved engines becoming more complex and utilizing more technology to operate the technicians who service the equipment require a much higher level of expertise. Service technicians must not only possess good technical skills, but must also master complex computerized control systems. It is now the norm for technicians to utilize laptops, plugging in to the machinery to diagnose issues and calibrate machines. As with most industries, technological advances have affected the way business is done in the heavy equipment industry from the manufacturing plant to the administrative office to the technician in the field. Cristina VanWieren is a high school math teacher and aspiring writer.

Construction Briefs
West MI - Associates has negotiated: the sale of a 13,778 square foot industrial building located at 2210 Roberts Street, Muskegon for the seller, Coastal Real Estate Holdings, LLC, and the buyer, Morrison Investment Group, LLC. the lease of 6,000 square feet of industrial space located at 18688 174th Avenue, Spring Lake for the landlord, D-4 Properties, LLC, and the tenant, Ground Control Property Management, LLC. the sale of a 1,824 square foot office condominium located at 17 S. 2nd Street, Grand Haven, to MBD, LLC for the seller, Coastal Real Estate Holdings, LLC. the sale of a 6,000 square foot building located at 8730 Shaver Road, Portage for the seller, Kalamazoo County State Bank, and the buyer, Foreign Auto Service. the sale of a 15,000 square foot office building located at 1675 Patriot Drive, Muskegon, for the seller, TMT Development, LLC, and the buyer, MSA Properties, LLC. the sale of 67,500 square feet of industrial space located at 203 S. Cutler Street for the seller, Cutler Street, LLC, and the buyer, Norton Center Investments, LLC. the lease of 2,040 square feet of office space located at 550 3 Mile Road NW, Walker for the landlord, NW Investors, LLC, and for the tenant, Phil Meyer, Inc. Holland Beginning July 1, 2013, Holland Board of Public Works will offer an Elective Renewable Energy rate to all electric customers looking to support alternative energy by choosing to have a portion or all of their electricity generated by renewable sources. Lansing Camp Grayling, one of the premier military installations in the nation, celebrated its 100th anniversary July 20, 2103. Located in northern Michigan, it is the largest National Guard joint training center in the U.S., covering 147,000 acres crossing three counties, and training not only active and reserve components of the Army, Navy, Marines, Air Force and Coast Guard, but also more than 100 law enforcement agencies and units from Canada, Latvia, United Kingdom, Hungary and Serbia.

14 Hit the Road: The State of the Trucking Industry Today, and the Story of Teddys Transport
By Jane Whittington The trucking industry is an integral part of the American marketplace. Without trucks transporting virtually everything that keeps our economy afloat, the US would be a far different place. Although we are certainly aware of the trucks that use our highways, we may not be aware of just how huge the industry is. In an April 2013 article in Business Insider magazine, Sam Ro lays it out for us. Every year, the trucking industry collects $650 billion, representing five percent of the GDP. It pays out $35 billion in federal, state and highway use taxes. Trucks transport 83.7 percent of the revenue of the commercial transportation industry, while rail (5.6 percent), pipeline (4.6 percent), air (3.2 percent), rail intermodal (1.5 percent) and water (1.4) lag far behind that impressive figure. (Intermodal rail is the transportation of freight in a container or vehicle, using several modes of transportation without any handling of the freight itself.) Ro goes on to say that employment in the trucking industry is expected to grow 21 percent over the next ten years. These figures are from the Bureau of Labor Statistics. Currently, there are over 761,850 tractor-trailer drivers and close to 50,000 light truck and delivery drivers. The average pay for these employees is $37,770 annually. And in the course of a year, these drivers carry $139,463,000,000 worth of products as they drive 93,512,000,000 miles! An April 2013 article by Laura Raines in the Atlanta Journal Constitution says in its headline, Demand is high for commercial truck drivers. Raines goes on to say, Trucking added the most jobs of any transportation sector in February 2013, increasing its employment by 5,600 positions, according to the U.S. Labor Department. Ed Tanksley, general manager of a truck driving school, says, There is no unemployment in truck driving. In fact, theres a shortage of drivers. Trucking slowed down at the start of the recession, but when factories start producing more goods, these goods have to be moved to consumers. Trucking usually leads a recovery. According to the Bureau of Labor Statistics, Heavy and tractor-trailer truck drivers usually have a high school diploma and two years of related work experience. They must have a Commercial Drivers License (CDL). CDL Michigan, which provides truck driving training, says, Its actually a great idea to become a truck driver in Michigan. Job statistics are looking good for the state, which means now is a good time to invest in becoming a truck driver. Their website continues, Truck drivers in Michigan are doing pretty well. In fact, there are 48,220 people employed in this industry as of May 2012. The mean hourly rate of pay is $18.45 and the mean annual earnings are $38,370. This is more than livable for the area. Teddys Transport in Holland is a trucking business with a difference. This locally owned and operated family business has been the recipient of numerous awards, holds the highest levels of professional certifications and is rebounding nicely from the recession. Its a company that considers its bottom line but understands that what makes for success is superlative personal service, hometown friendliness and uncompromising honesty. Helen Zeerip, co-owner of Teddys Transport, has taken the business founded by her father to new levels in her 16 years of leading Teddys Transport. Founded in 1982 and run out of the family home, Teddys Transport has grown from its original two trucks to its present fleet of 50. Helen worked with her parents as the company grew. In 1987, Helens husband Craig, currently the co-owner, went to work for the company. In 1994, the company moved into its present facility. When her father wanted to retire, Helen and her husband bought the business. Today, the 70 employees of Teddys Transport provide a wide range of services to their customers throughout Michigan and the surrounding states. They offer: Expedited shipping to 48 states and Ontario, Canada; Local pickup and delivery services using vans, trucks, semis and temperature controlled units; Less than truckload services moving to and from West Michigan and Chicago; Full truckloads; Clean sweep services, which picks up freight on a specific day in order to offer cost savings. They are currently doing this in Wisconsin, Illinois, Ohio, New York, New Jersey and other states; Dedicated fleet services; this allows businesses to outsource their transportation needs; Short term fleet services allowing businesses to use Teddys Transport for periods of time ranging from one day to several weeks; Unique shipments. This includes white glove transportation to trade shows, photo shoots and other events. Refrigeration expediting service. Helen Zeerip says, Almost all of my customers are manufacturers. Many of them are automotive suppliers. Of course, when the recession started, it really hit the automotive industry. Between July of 08 and July of 09, our business was down 50 percent from the previous year. We had to go into survival mode. We were forced to reduce our employees hours, adjust some of our rates and get rid of some of our less profitable runs. We had to get real skinny real quick. She continues, Things have really started to turn around, and business is definitely on the upswing. In fact, we are looking for drivers. We require two years of driving experience as well as truck driver certification, and it can be difficult to find the right employees. We dont compromise on quality. According to Zeerip, Weve got just about every certification the trucking industry offers including those from the Transportation Security Administration that give us high security clearance. Continued on page 17

16 Treasury Announces $277.1 Million Increase in Small Business Lending by Michigan Participants
Washington DC The U.S. Department of the Treasury today released a new report showing that, nationwide, participants receiving capital through the Small Business Lending Fund (SBLF) boosted small business lending by $9.0 billion over baseline levels since the depths of the recession. Michigan-based SBLF participants have increased their small business lending by over $277.1 million, also over baseline levels, including a $56.2 million increase in the first quarter of 2013. Last month, Treasury released the First Annual SBLF Lending Survey, which estimated that SBLF participants have increased small business lending by an estimated 38,000 additional loans through the end of 2012, across all industries and in every region of the country. The Obama Administrations Small Business Lending Fund is supporting credit to tens of thousands of American small businesses as they invest, expand and hire in every region of the country, said Deputy Secretary of the Treasury Neal Wolin. The program has supported increases in small business lending by Main Street banks to Main Street small businesses, helping to power the economic recovery in communities across America. Community banks participating in SBLF have increased total business lending by 41.5 percent, versus a 5.5 percent median increase for a representative peer group of similar banks across median measures of size, geography, loan type, and financial condition. Increases in small business lending have also been widespread across SBLF participants, with 91 percent having increased their small business lending over baseline levels. In the first quarter of 2013, SBLF participants increased their lending by $206 million nationwide. Small businesses play a critical role in the U.S. economy and are central to growth and job creation. In the aftermath of the recession and credit crisis, small business owners faced disproportionate challenges, including difficulty accessing capital. The SBLF program, established as part of the Small Business Jobs Act that President Obama signed into law in 2010, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs. Treasury invested more than $4 billion in 332 institutions through the SBLF. Collectively, these institutions operate in more than 3,000 locations across 48 states. This report includes information on the 317 institutions that continued to participate in the program as of April 30, 2013, including 267 community banks and 50 community development loan funds. SBLF encourages lending to small businesses by providing capital to community banks and CDLFs with less than $10 billion in assets. The dividend or interest rate a community bank pays on SBLF funding is reduced as the bank increases its lending to small businesses providing a strong incentive for new lending to small businesses so that these firms can expand and create jobs. Individual community banks can reduce the rate they pay to one percent if they increase qualified small business lending by 10 percent over their baseline.

Communications & IT
Grandville Trivalent Group, Inc. was recently named WatchGuard Technologies, Inc., Managed Security Services Provider (MSSP) Partner of the Year 2012, an annual award given to the MSSP partner in the U.S. who met its partner revenue threshold, and demonstrated the highest growth in MSSP business. Grandville Trivalent Group announced an expanded partnership with StillSecure, a leading managed security services and certified compliance company, to significantly expand its cloud and dedicated hosting solutions together with a new suite of managed security services and compliance offerings to customers, including PCI Complete, and HIPAA Essential. Grandville Trivalent Group, Inc. was recently named WatchGuard Technologies, Inc. Managed Security Services Provider (MSSP) Partner of the Year 2012 - awarded to the national MSSP partner who met its partner revenue threshold year over year, and demonstrated the highest growth in MSSP business. Muskegon Alloy Resources Corp. is Michigans newest and most efficient aluminum smelting operation, and also services the casting industry throughout the Midwest, which includes core services of aluminum and zinc alloys, scrap tolling and recycling. Houghton MTEC SmartZone was awarded a $36,000 grant from Business Accelerator Fund to assist their tenant company, Endres Machining Innovations (EMI), a company that develops innovative tooling products for the metal cutting industry, to help EMI launch their first product line. Detroit Open Systems Technologies (OST) opened a 1,000+ sq. ft. office in downtown Detroit - the corner of the 17th floor of Grand Park Centre building (28 West Adams Ave), and sits a block and a half from Comerica Park. OST Detroit currently houses seven employees, and is looking to hire up to seven more employees in the areas of application development, technical consultants, project managers, and sales.

Strongest Savings & Deposits in Years

Lansing Michigan consumers deepened their relationship with credit unions in the first quarter of 2013 as membership continued to grow. Michigan credit unions also continue to finance record levels of loans, all of which helps contribute to the states economic recovery, according to an analysis of data from the National Credit Union Administration released today by the Michigan Credit Union League & Affiliates. The data showed the following highlights for the first quarter of 2013: Credit union membership in Michigan is at its highest level, and has grown for seven straight quarters. The state now boasts 4.56 million credit union members, up 15,776 from the previous quarter. Today, 46% of Michiganders are credit union members, 16 points higher than the national rate. Checking account balances grew more than 9% in the first quarter. Since the end of 2008, checking balances are up over $2 billion, representing 50% growth in just over 4 years. Michigan credit unions financed more than $1 billion in home loans, up from $882 million from the same period in 2012. Michigan credit unions financed more in fixed rate mortgages in 2012 than in any previous year. Credit union loans to businesses rose 6.9%, compared to 2.6% growth in the same period in 2012 and more than 4 points higher than the national rate. Loans for new and used automobiles also ticked upward, reflecting the national trend of strong auto sales. The boom in student loans is impacting Michigan credit unions as total loans reached $100 million for the first time, with growth of 5.4% in the first quarter. The growth in credit union deposits and lending in the first quarter shows very clearly that families, students, and businesses continue to join credit unions, and to deepen their relationship with credit unions because they understand the value of credit union membership now more than ever, said MCUL & Affiliates CEO David Adams. Michigan credit unions provide members access to historically low rates on loans, and lower fees on checking accounts. This in turn frees up cash for households and allows members to pay down debt, save for the future, and spend more at local businesses.

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Education Briefs
Grand Rapids Two Cooley Law School graduates and adjunct faculty members Joan Rosema-David, and Traci L. Schenkel - were presented Patriot Awards by United States Department of Justices Employer Support of the Guard and Reserve Division because of their willingness to help student Jennifer Bylsma finish course work early, and schedule final exams while she was waiting for deployment at Fort Dix. Grand Rapids Katrina Katie Kalisz, Associate Professor of English at Grand Rapids Community College, took first place for her poem in the 45th annual Kent County Dyer-Ives Poetry Contest. Her poem, Viewing at the 14-Year-Old Girls Wake, reflects her experiences while attending a teenagers wake with her husband and infant daughter. Big Rapids Carlos Sanchez, Director of Latino Business and Economic Development Center at Ferris State University, was honored with Champion Award for Diversity from Grand Rapids Area Chamber of Commerce Center for Community Leadership. Big Rapids Ferris State University and Ferris Faculty Association reached an agreement that provides a five-year contract for full-time faculty members. The main elements of the agreement are salary increases of 2.25% for the first four years, a 2.5% increase in year five, and a supplemental market adjustment of $300,000 annually to provide pay equity for some of the most in-demand faculty positions. The contract, which takes effect July 19, 2013, and runs through June 30, 2018, covers about 440 faculty members. Muskegon Grand Valley State University researchers and students began important experiments involving Michigans freshwater resources and the Great Lakes this summer, thanks to the efforts of 225 donors who, in just one year, made the completion of Grand Valleys new Robert B. Annis Field Station possible. The campaign to support the Robert B. Annis Field Station raised more than $2.32 million in private funds and included gifts from a wide variety of Grand Valley supporters, Community Foundation for Muskegon County, community members, and those passionate about the health and wellbeing of Michigans lakes and streams. The new Robert B. Annis Field Station will offer students and researchers 14,700 square feet of research laboratories, offices, mesocosm tanks, a boat loading bay, and secure storage. The new facility is state of the art, and has spaces for year-round research, allowing students and researchers to take on emerging issues facing the Great Lakes region today, and helping position West Michigan as a leader in the blue economy. The building has been designed and built to meet stringent LEED certification standards by using materials and systems that were selected for their durability, sustainability, energy efficiency, and their ability to decrease long-term maintenance and operations costs. Allendale Grand Valley State University Board of Trustees adopted the university's FY 2014 budget and set tuition rates for the coming academic year. Trustees voted to increase tuition by $188 per semester - the smallest tuition increase in the last 20 years - bringing annual tuition to $10,454 for a full-time undergraduate Michigan resident. However, Grand Valley's appropriation from the State in the coming year will be $503 per student below the amount the university received just five years ago, equating to a drop in state support of $11 million. The university is expected to receive State funding of $55.4 million plus a one-time State grant of $2.3 million based on Grand Valleys best-in-class performance. Grand Rapids Davenport University announced Dr. Andre Perry, nationally renowned education reformist, was named Founding Dean for a College of Urban Education currently in development stages. Dr. Perry most recently served as Associate Director for Educational Initiatives for Loyola Institute for Quality and Equity in Education at Loyola University in New Orleans. Allendale Grand Valley State University signed a reverse transfer agreement with Glen Oaks Community College in Centreville. Allendale Cynthia McCurren, Dean of Grand Valley State University Kirkhof College of Nursing, was elected to Board of Directors for American Association of Colleges of Nursing for 2013-2015 term.

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Grand Rapids For the second consecutive year, a Grand Rapids Community College business student was awarded the Presidents Scholarship from Davenport University. Alexi Bettig, who received an associate degree in arts from GRCC this past spring, qualified for the scholarship by receiving first place, along with teammate Corwin Tobias, in video production at the Business Professionals of America National Leadership Conference, and fourth place in digital media production. Big Rapids Ferris State Universitys Intensive English Program (IEP) was renamed West Michigan Intensive English Language Institute. As part of Ferris Office of International Education, IEP was designed to integrate university globalization efforts and English language training through curricular experiences for international students, and cocurricular engagement for domestic students. As part of these efforts, the MYPLACE program offers scholarship opportunities for domestic students to study abroad, and students who interact and engage with International WMIELI, can apply for this scholarship.

Teddys Transport
Continued from page 14
Honors bestowed on Teddys Transport include, in 2012, Inc. magazines list of the 500 fastest growing companies in the United States; an award from the Grand Rapids Business Journal as one of the top women-owned businesses in the region; and the Small Business of the Year Award from the Michigan Small Business Administration in 2013. The Zeerips have four children, and the two oldest, a daughter who has graduated from GVSU and another one who is studying at GRCC, are both interested in the business. Angela, the oldest, is already at work managing the certificate and compliance processes the company goes through and taking care of marketing. The younger hopes to work in sales with Teddys Transport. And, as if running a business and raising a family werent enough, Zeerip uses her time and considerable talents to help others. She and her husband are long-time foster parents who have welcomed many children into their home. They are members of two churches and work with charities involved with those. Helen is on the board of the West Coast Chamber of Commerce as well as Leadership Holland. She volunteers at and helps lead the efforts of Wings of Hope Hospice, a non-profit operating in Allegan. Another organization she helps with is Pathways of Michigan, a private agency dealing with adoptions and foster care as well as providing counseling, which serves ten counties. But she doesnt stop with that impressive list of activities. She is also involved with a group working in Ghana to provide hope and help to women and children who have been caught up in human trafficking. Testament to her work can be seen in the pictures of smiling Guyanese children that festoon the walls of her office. An extraordinary company, led by an extraordinary person: a success in business and a success in life.

Current Business Trends: Up, but growing slowly

Grand Rapids - The greater Grand Rapids industrial economy is still growing, but at a slower pace, while the national economy remained modestly positive, according to the results of a monthly survey compiled by Brian G. Long, director of Supply Management Research in the Seidman College of Business at Grand Valley State University. Long said the survey results are based on data collected during the last two weeks of July. The surveys index of business improvement, called new orders, fell to +7 from +34. The production index slid to +17 from +31 last month. The employment index fell to +21 from +25. After three strong months, business activity slowed in July, primarily because of seasonal vacations, slower work schedules, and annual shutdowns in some key industries, Long said. If it werent for the season and the fact that the statistics for the rest of the state, country and world are still on track, we could raise a question about the future, Long said. However, one month never makes a trend, and the slightly slower numbers in our local report are probably nothing more than a summer hesitation. The Institute for Supply Management survey is a monthly survey of business conditions that includes 45 purchasing managers in the greater Grand Rapids area and 25 in Kalamazoo.

Jane Whittington is a freelance writer and editor who lives in Grand Rapids.

Legal/Accounting/Consulting Briefs
Grand Rapids Hungerford, Aldrin, Nichols & Carter, PC, welcomed new Business Advisor Jennifer Lahey, and announced: Senior Manager promotions - Corey Balkon , Tom Cripps, and Aaron Sal; Manager promotions - Andrea Russel, and Chris Veldman; Senior Accountant promotions Terra Muckenthaler, Jenny VanBemmelen, and Diane Brownell. Grand Rapids Jeffrey S. Dornbos, attorney with Warner Norcross & Judd, LLP, was elected to serve on the Board of Child Development Services of Ottawa County Lakeshore Head Start. Grand Rapids Kelechi E. Adibe, attorney with Warner Norcross & Judd, LLP, was named to Lawyers of Colors Inaugural Hot List featuring 100 minority attorneys from the Midwest under the age of 40, and selected by committee based on noteworthy accomplishments or activity in legal pipeline initiatives, bar publications, and legal blogs. Lansing Byron P. Gallagher, Jr. of Gallagher Law Firm, was admitted as a member of The National Association of Legal Fee Analysis, a 501(c)(6) professional association headquartered in Chicago whose members are qualified attorney fee experts, fee dispute mediators, and legal bill auditors. Grand Rapids Intellectual property law firm Price Heneveld, LLP, announced partner Brian R. Cheslek, as newest member of its three-member Management Committee. Grand Rapids Echelbarger, Himebaugh, Tamm & Co., PC, welcomed Stephanie Rodrigues-Torres to the firm as Staff Accountant with over six years of experience in public accounting. Detroit Matthew Schenk, public service personnel of City of Detroit, Wayne County, and Detroit Water and Sewer Department, will join Ottenwess, Allman, and Taweels new Government and Public Affairs Division, and will team with managing partner David M. Ottenwess, and former U.S. Representative and counsel Thaddeus G. McCotter. Grand Rapids Foster Swift attorney John Inhulsen, along with Andrew Vredenburg and Joshua Richardson, won a $5.15 million unanimous jury verdict in favor of McCormick International, LLC, former Ionia County farm equipment dealer. The verdict was against Manitou North America, Inc., a Texas-based distributor of farm equipment manufactured by its parent company France-based Manitou BF, for violating Michigan Farm and Utility Equipment Act agreement, and Michigan's Antitrust Reform Act. Grand Rapids Law office of Law Weathers announced Steve Edison will serve as President of West Michigan Association of Legal Administrators. Grand Rapids Echelbarger, Himebaugh, Tamm & Co., P.C. (EHTC), gave a final farewell to Diane L. Friar in celebration of her retirement, and in honor of her 36 years at the firm. Dennis Echelbarger, founder of EHTC, hired Diane L. Friar as his receptionist/secretary two weeks after opening his office in 1977. During Diane's career, she became a Certified Public Accountant, Accredited Business Valuation specialist, and Certified in Financial Forensics. Grand Rapids Varnum welcomed Attorney Katherine K. Wilbur to their Grand Rapids office. Wilbur is an associate practicing corporate and tax law. Additionally, Varnum announced corporate law and taxation Attorney Kevin DiDio joined the firm's Metro Detroit office. DiDios practice focuses on corporate law and transactions. Grand Rapids At Building Owners and Managers Association of West Michigans July board meeting, chairman Alex Pitt presented 2013 -2015 new Officers: Chair - Gloria Lubben, SecurAlarm Systems, Inc.; Vice Chair Robert Van Rees, Metro Health Hospital;

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Treasurer - Dorothy Paris, H&S Companies; Secretary - Jon Aylsworth, Property Tax Consultants; and Past Chair - Alex Pitt, Spectrum Health. The Directors for 2013 -2015: Patrick Drueke, Rhoades McKee, PC.; Jerry Ruland, Quality Air Heating and Cooling, Inc.; and Elizabeth Slane, The Hinman Company. Grand Rapids The following two minority students received Law School Admissions Test Preparation scholarships from Warner Norcross & Judd, LLP: Nadia M. Last - Grand Rapids resident studying communications and sociology at Northwestern University in Evanston, Ill.; and Lola Lawal - Texas resident studying political science at University of Michigan. Grand Rapids Echelbarger, Himebaugh, Tamm & Co., P.C., valuation expert Michael J. Pelkey successfully completed the certification process with National Association of Certified Valuators and Analysts to earn Certified Valuation Analyst credential - the only valuation credential accredited by the National Commission for Certifying Agencies, the accreditation body of the Institute for Credentialing Excellence.

MSU Builds Combined Heat and Power System using Anaerobic Digestion
East Lansing - Michigan State University officials will hold a ribbon-cutting ceremony Aug. 13 to officially commission and start operations of the South Campus Anaerobic Digester (SCAD). That same day, MSU and MSU Extension will host Keeping it Green: Recycling Waste to Resources to highlight this and other campus-based projects focused on reducing and reusing organic waste. Participants will tour the SCAD, the University Farms composting facility, Anaerobic Digestion Research and Education Center (ADREC), MSU Recycling, T.B. Simon Power Plant and the Student Organic Farm. Anaerobic digestion is a biological process that converts organic materials (called feedstocks) in the absence of oxygen (anaerobic conditions) into biogas. Methane (CH4) and carbon dioxide (CO2) are the primary gaseous components of biogas. Biogas can be burned to generate electricity and heat (steam), or purified and compressed for use as natural gas. The SCAD is a single-tank complete mixed anaerobic digester. Once operational, the digester will utilize roughly 17,000 tons of organic waste from MSU and the greater Lansing area per year as feedstock to produce biogas that will be used to generate over 2.8 million kWh of electricity per year. Feedstocks for the system will include dairy manure from the MSU Dairy Teaching and Research Center, food waste from several campus dining halls, fruit and vegetable waste from the Meijer Distribution Center in Lansing, and fats, oil and grease from local restaurants. Electricity generated by the system -roughly equivalent to the energy used at Holmes Hall -- will be used to power several buildings on South Campus. Feedstock will be received in two reception tanks, one designated for manure and the second for other materials. Depending on the delivery schedule and the target blend of feedstock, feedstocks will be pumped from each reception tank into a central mix tank, where the blend of feedstocks will be homogenized. The blended material is then pumped through a heat exchanger, which brings the material up to the operating temperature of 100 degrees F, before entering the complete mix anaerobic digester. The digester is an aboveground steel tank with a liquid capacity of more than 450,000 gallons. It is designed for a 25-day hydraulic retention time. A flexible membrane is used to keep the tank air-tight and seal in the biogas. Two hydraulically powered submersible mixers are used to keep the digester contents well blended. Biogas produced by the digester will be used to power a 450 kW combined heat and power (CHP) system. The electricity that it generates will be used to power buildings on the south side of the campus. Hot water produced by the CHP system will be used to maintain the digester temperature at 100 degrees F and to provide heat to the other buildings at the site. Excess biogas will be destroyed using an integrated flare. The mix of solids and liquid remaining after digestion (digestate) will be pumped to a solid-liquid separator. Separated solids will be composted; the liquid will be transferred to the digestate storage tank, an aboveground steel tank with a 2.4 million-gallon capacity. An airtight membrane will allow the headspace (the space above the digestate) to be used as biogas storage and reduce odors from the systems. The digestate will be land applied seasonally as carbon-rich fertilizer. The on-campus digester project will provide many benefits, including renewable energy, emissions reduction, landfill and wastewater diversion, and enhanced fertilizer with few weed seeds and firstyear-available plant nutrients.

Choose wisely by which state's laws your independent contractors fall under
ByRobert Mucci So if your company hires independent contractors instead of salaried employees, whats more important; where they live or where your company is based? Think hard and answer correctly. Because to answer incorrectly is an invitation for your company to walk head on into a legal firestorm. The question presented in this case is whether individuals who live and work, for example outside of Massachusetts for a corporation headquartered in Massachusetts may bring an action in Massachusetts courts to enforce certain Massachusetts independent contractor, wage, and overtime pay statutes. Judith Ann Taylor, Gardner Taylor, and Donald Wellington, are individuals who live and work in New York as couriers for Eastern Connection Operating, Inc., a corporation headquartered in Woburn, Massachusetts. Eastern Connection is in the business of delivering packages in various states, including Massachusetts and New York. The trio alleged that they had been misclassified as independent contractors rather than as employees, in violation of the Massachusetts independent contractor statute. They also claimed that they failed to collect wages and overtime in accordance with Massachusetts wage statutes. However, the Superior Court judge that originally heard the case concluded that the Massachusetts independent contractor statute does not apply to nonMassachusetts residents working outside Massachusetts, and, therefore, that the plaintiffs cannot be reclassified as employees pursuant to that statute. The case was brought to the Massachusetts Supreme Court who reversed the Superior Court's ruling. They concluded that given "the parties agreed to construe the contract in accordance with Massachusetts law, that there is no express limitation on the territorial reach of the Massachusetts independent contractor statute, and that there is no apparent reason to disregard the parties choice of law, we conclude that the Massachusetts independent contractor statute applies to the plaintiffs misclassification claim." Massachusetts has some of the toughest laws in the country related to independent contractors and their classification as employees. In 2004, Massachusetts passed a law establishing a three prong test, each of which must be meet for an individual to be classified as truly independent. The three prongs known as the ABC tests, established that an individual performing any service shall be considered to be an employee unless: (1) the individual is free from control and direction in connection with the performance of the service, both under his contract for the performance of service and in fact; and (2) the service is performed outside the usual course of the business of the employer; and, (3) the individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed. This law makes it extremely difficult to meet the second prong of the three prong test, requiring that independent contractors be in a business different than that for which they perform services. So if you are in the software business and you hire software engineers, or you are in the fitness business and you hire instructors, they must be classified as employees. Furthermore, the penalties for noncompliance include both criminal and monetary penalties as well as back pay and wages at three times the rate that would have been paid to the reclassified employee. Now what makes this case interesting is that Eastern Connection Operating, Inc. will most likely argue that a federal law exists (Federal Aviation Administration Authorization Act of 1994..FAAAA) which applies to motor carriers doing interstate business. Arguably one its intended effects are to prevent each state from creating their own laws which would apply to an interstate carrier. These laws would make it virtually impossible for a nationwide motor carrier to comply with the rules of 48 states, thus limiting commerce and crippling the nation's economy. You can envision the legal chaos that would ensue if every time a truck crossed a state line they would be subject to a whole new set of laws.

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However other industries are not so fortunate to argue that they have federal protection from the law. Software designers, CPA's, inspectional services, contractors, health clubs, landscapers, contractors, summer theaters and sports venues, computer firms, and real estate agencies to name a few, have no such claim. What this ruling does say is that choosing the state in which the laws will be applied as they relate to independent contractor agreements is crucial in reducing exposures. Companies should also review their current jurisdictional selections and consult with an employment attorney to assess the potential issues and impact of that choice. Robert Mucci of Wolpert Insurance Agency, Inc. in Worcester, MA is a Certified Insurance Councilor, Accredited Advisor in Insurance, a MA Licensed Insurance Advisor, a Certified Master Workers Compensation Advisor and a former Certified Public Accountant with PWc and Bain & Company, Inc. For additional information he can be reached at 508459-4760 and [email protected]. For more information visit www.wolpert.com.

Review of Appreciative Inquiry for Change

Psychologists Sarah Lewis and Jonathan Passmore, and consultant Stefan Cantore offer an overview of a variety of conversation-based change management methods in use today, with a particular focus on Appreciative Inquiry (AI). Because people create and exist in organizations, these collectives suffer the same conflict, chaos and endless complexity that human beings do, so it makes sense to bring human sensibilities into the business world. Though AI may strike some as pop psychology, this manual shows how its already at work in major businesses worldwide and how it can help your organization. getAbstract recommends it to any leader, manager, coach or consultant interested in alternative approaches to change management. Sarah Lewis, Jonathan Passmore, Stefan Cantore. Appreciative Inquiry for Change Management: Using AI to Facilitate Organizational Development. Kogan Page Publisher, 2012. 232 pages. ISBN-13: 9780749463557. getAbstract is the leading provider of business book summaries, with thousands of titles covered. www.getabstract.com

General Business
Holland Robert Wuerfel was elected President of Michigan Land Title Association, after serving on a Board and Executive Director for several years before becoming Association President. Allegan Allegan County United Way announced hiring new Executive Director, Sue Ann Culp, who brings a wide range of talents - notably in fund development, creative rebranding, and remarketing of mission statements. a new look and new options to interact, and some great Giveaways. On August 1st, the website will be awarding a guided trip for 2 with Northern Adventures Fishing, and 1 night stay for 2 at Fairfield Inn and Suites in Traverse City. Walker Lady Janes Haircuts for Men announced opening of their new salon in Walker - 3450 Alpine Ave., next to Best Buy. Lady Janes opened its first location in St. Clair Shores, and has expanded into seven states, and plans to open 11 more locations by end of 2013. The Walker salon is Lady Janes 45th location and its Byron Center Byron Center Chamber of Commerce announced selection of Amy Zeilenga as their new Executive Director.

Provided by www.getabstract.com As anyone who has worked in a large enterprise knows, organizations often fail to acknowledge and leverage the human side in their change initiatives, and they struggle mightily as a result.

Traverse City FishMich.com re-launched their Michigan based fishing website with