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2/26/2010
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$1.50/MARCH 1 - 7, 2010
Vol. 31, No. 9
MIXED MESSAGES As order levels gyrate, manufacturers must grapple with changing production logistics to meet customer needs
Small firms decry lending environment Businesses express anguish to Fed over inability to access credit; banks also in vise
By DAN SHINGLER dshingler@crain.com
T
he ride out of the recession is turning out to be a bumpy one for manufacturers as their orders increase not in a straight line, but in a series of fits and starts that make it harder to navigate the foggy road ahead. Most manufacturers made it through the downturn by becoming experts at austerity, which meant jettisoning employees for whom they had no work and not maintaining inventories for which they had no orders. Now, though, they must become experts at forecasting and logistics if they are to fill batches of new orders that are coming in unpredictable waves, representing revenue they need.
By ARIELLE KASS akass@crain.com
When she talks about banks and small business, Susan Schwartz Salontay doesn’t mince words. “We’re being killed,” she said. “We are being put out of business because banks are looking to collect what they lost.” Ms. Salontay, president and owner of Work Best Electric, a 23-year-old electrical contracting company in Cleveland, said she is “holding on, holding on, holding on,” but that the company is “losing our grip here.”
Across the region and the country, small businesses are facing reduced lines of credit, less access to capital and resistance to restructuring loans. In Ms. Salontay’s words, they’re “so, so screwed.” According to Ms. Salontay, her eight-employee company hasn’t had a working line of credit since JP Morgan Chase eliminated hers 12 months ago. She said there are weeks when she doesn’t know how she’s going to make payroll. She already has used insurance money from a lost wedding ring to help pay employees See CREDIT Page 17
Clean technology sector finds favor with local VC investors
See WHIPS Page 9
INSIDE: Clean technology and advanced energy comprise a larger part of venture capital investment. Page 16
By CHUCK SODER csoder@crain.com
When it comes to attracting venture capital, Northeast Ohio’s clean technology companies are cleaning up. The region’s so-called “cleantech” startups — companies developing technologies that can range from wind turbines and fuel cells to water purifiers and new types of insulation — are receiving much bigger pieces of the venture capital pie as of late, hauling in 20% of all venture investments made in the region during the past two years.
On a percentage basis, that figure is more than they’re used to receiving, according to figures from the 2009 Venture Capital Report, which is compiled by three local economic development organizations. By comparison, cleantech startups in 2005 snared just 3% of all venture investments in Northeast Ohio. The increase is heartening, according to Becca Braun, president See TECHNOLOGY Page 16
INSIDE SON WIL TEN IS R K
FirstMerit banks on growth
09
The Akron-based bank aims to expand its market share by bolstering its presence in the Midwest. Last week, FirstMerit added four branches in the Chicago area. Read Arielle Kass’ story on Page 3.
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SPECIAL SECTION
LEGAL AFFAIRS More local law firms implement sustainable practices with environment, ethics in mind ■ Page 11 PLUS: OFFICE POOLS ■ LEGISLATION ■ ADVISER ■ & MORE
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