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GROWING CLEVELAND+ Local leaders share ideas to brighten NE Ohio’s economic prospects
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here would you like to see the region in 20 years, and how would you get it there? That’s exactly the question we posed to 10 of Northeast Ohio’s leaders. On subjects ranging from biotechnology and economic development to arts and culture and education, all shared in their own words their visions for the future and the steps we need to be taking now to get there. For more on Growing Cleveland+, see this week’s special section, Pages 17-23.
Local franchisee raises the bar Two recent strategic growth investments are enabling Independencebased Apple American Group LLC, the largest franchisee of Applebee’s Neighborhood Grill and Bar, to modernize its stores, and position it to acquire and build more. Read Kathy Ames Carr’s story on Page 5.
FitzGerald, mayors to address poaching County exec to use development fund as incentive for cities to refrain from soliciting businesses By JAY MILLER jmiller@crain.co
NE Ohio manufacturers: No place like home Positive outlook reigns, contrary to U.S. trend By DAN SHINGLER dshingler@crain.com
INSIDE: WIRE-Net survey reveals broad optimism. Members share sales projections and key issues facing their businesses. Page 29 kinks, not demand for vehicles, and he expects growth soon will resume. Nationwide, the storm clouds around manufacturing are no joke. From recent federal job numbers to the vaunted Institute for Supply Management’s monthly report on manufacturing activity, signs point to at least a slowdown in U.S. manufacturing, See OUTLOOK Page 29
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Welcome to Oz. While the nation’s manufacturers are warning of Kansas-like headwinds, their Northeast Ohio counterparts say they’re still walking down the yellow brick road to
further growth. “I’m optimistic. From right here, I see growth ahead of us. Things will improve — I believe that,” said Randy Solganik, owner of City Plating in Cleveland. Mr. Solganik’s company does zinc plating of steel parts, mainly for automakers. He was going gangbusters until the Japanese earthquake and tsunami in March disrupted supply chains and reduced output at some of his automotive customers. But Mr. Solganik said he believes the slight slowdown is purely because of supply chain
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 23
Cuyahoga County Executive Ed FitzGerald plans to meet this Thursday, June 9, with the county’s mayors to talk about putting together an anti-poaching agreement designed to reduce the financial damage inflicted when a business is lured from one community to another within the county. Nathan Kelly, deputy chief of staff for Mr. FitzGerald, said the county has no specific legislation in mind and wants to hear ideas from the mayors. But he said the county has a general idea of what it hopes to get communities to support. “It will be an agreement that (communities) are not going to actively solicit (businesses) from one another,” Mr. Kelly told Crain’s Cleveland Business. “We intend to link some county FitzGerald programs to participation with an anti-poaching agreement.” Mr. FitzGerald put it more bluntly at a meeting with Crain’s editorial board last week. “If you want the benefit of our $100 million, you need to join,” he said he would tell communities. “There has to be some kind of incentive or disincentive to stop them from (poaching).” The county executive was referring to his plan to create a $100 million economic development fund. He plans to issue bonds to create the kitty and pay off the debt with savings that are beginning to come from his reorganization and shrinking of county government. County government cannot prevent a business from choosing to move from one community to another, as American Greetings Corp. recently did when it decided to leave its world headquarters in Brooklyn for a new building that will be constructed for it at Crocker Park in Westlake. It’s also hard to stop bidding wars among cities for businesses and the jobs, especially during down economic periods when local tax revenues sag. See POACH Page 28