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3/18/2011
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Manufacturing workers back in the game Local firms shore up production staffs as order levels escalate, confidence builds By DAN SHINGLER dshingler@crain.com
LAUREN RAFFERTY ILLUSTRATION
Budget observers give tepid nods of approval
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The early reaction in the business, civic and nonprofit communities to the broad outlines of Gov. John Kasich’s 2012-2013 state budget has been generally complimentary, with some observers joining the governor and calling the budget “transformational.” But the comments turn cautious and questioning when the conversation focuses on specific elements that hit close to home. With the exception of the Ohio Chamber of Commerce, none of the budget watchers reached by Crain’s Cleveland Business
INSIDE: Gov. John Kasich, nursing home operators at odds over plans to slash industry funding. Page 3 are yet ready to join fully with the governor in his plan to create jobs and force state and local governments to operate effectively on less money. Local communities have been sharply critical of cuts in the local government funds that have accounted, in some cases, for 10% of local budgets. And some groups, such as hospitals and nursing home operators, are clearly unhappy with the governor’s plans for cutting Medicaid.
See JOBS Page 9
Strategic buyers satiate appetites for acquisitions
INSIDE
Business, government leaders wary of details By JAY MILLER jmiller@crain.com
It’s on! After a nearly three-year lull, Northeast Ohio manufacturers are hiring in earnest, say both the companies and observers who watch the sector and its effect on the local economy. Local help wanted ads in The Plain Dealer and on Craigslist back those observations with the hard evidence of postings for jobs ranging from computer numerical control (CNC) machinists to floor sweepers. “This is genuinely good news — let’s all hold hands and break into a group smile,” said Ned Hill, an
economist and dean of Cleveland State University’s Maxine Goodman Levin College of Urban Affairs. His droll humor aside, Dr. Hill indicated manufacturers appear poised to spur real job creation because they’re seeing sustained order levels. “They weren’t going to hire anybody until they were assured of at least six months worth of work on their books,” Dr. Hill said. “The pain of laying off (employees) and the legal challenges of laying off were too great.” That’s no longer the case. The employment section of The Plain Dealer’s classified ads March
JANET CENTURY
Fund times Elizabeth Park Capital Management has some admirers in financial circles, thanks to the efforts of Fred Cummings, who in 2008 founded the Beachwoodbased investment management firm. The company began with about 20 investors and $3 million in assets under management. It now has 90 investors, and assets have grown to $43 million. See Michelle Park’s story on Page 3.
See KASICH Page 20
More public companies throughout NE Ohio expected to go private By DAN SHINGLER dshingler@crain.com
There’s going to be a whirlwind of deal-making this year, say financial experts and strategic buyers. And when the dust settles, there probably will be fewer public companies left in Northeast Ohio than there are today. That’s because there is ample money available for private equity firms and strategic buyers to make acquisitions — along with a hunger
in both of those camps to do deals — but no appetite for initial public stock offerings on the part of investors or issuers. The results are deals such as Wickliffe-based specialty chemicals maker Lubrizol Corp.’s acquisition last week by Berkshire Hathaway Inc. or the acquisition last October of Cleveland-based Hawk Corp. by the North Carolina private equity firm Carlisle Cos. Both transactions will result in a public company retiring its stock and becoming part of a larger entity. Expect more such deals, say those watching closely. “There are funds out there, private equity funds, and also other strategic See DEALS Page 8
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SPECIAL SECTION
REAL ESTATE Contractors benefit from out-of-market construction projects ■ Page 15 PLUS: ELECTRIC RATES ■ ADA CHANGES ■ & MORE
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 12