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Auto suppliers on spending spree They’re gobbling up equipment to keep up with healthy demand By DAN SHINGLER dshingler@crain.com
The economy, by many accounts, is slowing. However, Northeast Ohio auto suppliers say their business is still brisk — so much so that many are investing in expensive new equipment to keep up with demand.
Fate of print schedule at Plain Dealer a hot topic
“There’s now an eight- to 12month lead time if I want to order another new press,” said Bill Adler, president of Stripmatic Products in Cuyahoga Heights, a stamper for the automotive industry. So when Mr. Adler got the chance recently, he says he jumped on the opportunity to buy a 300-ton press — the last that his dealer had in
inventory. Welcome to Bizzaro World right here in Northeast Ohio. For decades, area auto parts manufacturers Adler seemed to be sources of job losses as much as they were sources of parts for brakes, engines and other automotive systems. Even
Local choices continue to expand, though skeptics wonder if the popularity eventually will wane
MORE CUPCAKE SHOPS POPPING UP
The May 24 announcement shook media observers nationwide. The publisher of The (New Orleans) Times-Picayune said the 175-yearold daily newspaper in September would end seven-day-a-week delivery. Instead, it would print newspapers three days a week and would shift its news delivery emphasis to Nola.com, the paper’s companion website. At the same time, the newspaper’s owner, Advance Publications Inc., a division of the Newhouse family media empire — and owner of The Plain Dealer — said it would take the same steps in three markets in Alabama. That announcement turned heads in Cleveland toward East 18th Street and Superior Avenue, The Plain Dealer’s downtown home; even PD staffers are asking the same questions others in the community are asking. Will The PD follow its New Orleans cousin and end printing of newspapers on Mondays, Tuesdays, Thursdays and Saturdays? Or will it continue to print and deliver a newspaper seven days a week? If not, how will the newspaper stop the revenue and circulation tailspin it’s been in for
MMPI shows off With about a year before the planned opening of Cleveland’s new convention center, the developer is offering tours of the progress it’s made on the site. PAGE 3 PLUS: ■ Pro sports teams’ corporate sponsors are shifting away from previously desired exclusivity within their industry. PAGE 7 ■ Is your boss arrogant? An Akron dean can tell. PAGE 19
See SUPPLIERS Page 12
CLE’S CRAZY FOR CUPCAKES
Owner cuts production at sister publications By JAY MILLER jmiller@crain.com
those with strong market share often lamented their positions, longing to swap their auto business for defense work or contracts to make medical devices. Today, that same automotive business is a source of strength in the economy. Mr. Adler, for one, is in the process of spending $1.6 million
INSIDE
Tracking the number of Cleveland-area shops selling cupcakes to open the last seven years:
ON THE WEB: See how readers judged
By MICHELLE PARK mpark@crain.com
A
rising number of local entrepreneurs have developed a taste for the cupcake business, despite speculation that it’s a trend with a limited shelf life. Cupcake shops abound in big cities such as New York, but have taken off here only recently. A search for cupcake shops in Northeast Ohio rounds up no fewer than 20, nearly half of which opened in 2011 and 2012. Though it doesn’t appear anyone tracks the number of cupcake shops nationwide, a popular cupcake blog links
area cupcakes in Crain’s Cupcake Taste Test. www.CrainsCleveland.com/Cupcake to more than 400 shops. Some, such as Main Street Cupcakes, with its flagship store in Hudson, have expanded from one to multiple locations, while others are home-based bakeries. Bob Derrington is skeptical that all will survive. A restaurant analyst for Northcoast Research in Cleveland and a restaurant franchisee before that, Mr. Derrington compares today’s cupcake craze to the rapid proliferation of bagel chains and See CUPCAKES Page 9
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See PD Page 6
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HIGHER EDUCATION Region’s colleges continue efforts to improve upon tech transfer efforts ■ Page 13 PLUS: CURRICULUM DEBATE ■ UNIVERSITY PRESSES ■ & MORE
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 29
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THE CONVERGENCE The composition of the U.S. work force has changed dramatically in the last 60 years, with women greatly increasing their ranks on the job while men have seen a decline. Data from the U.S. Bureau of Labor Statistics show nearly 55% of women work outside the home, up from about 33% in 1951, while the figure for men has fallen to about 67% from 86% in the same time frame. Chalk it up to higher education levels for women and greater opportunities for working mothers, BLS says, though both genders are down in the recession. Here are the numbers:
2012 Archer Awards Crain’s will profile some of Northeast Ohio’s most accomplished human resources professionals with our annual Archer Awards section.
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Year
Men
Women
2011
67.3%
54.9%
2005
72.4
57.8
1999
74.0
58.7
1993
72.4
55.4
1987
74.1
53.6
1981
73.1
48.5
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Joel Hammond (jmhammond@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Ginger Christ (gchrist@crain.com) Manufacturing, marketing and retailing Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing director: Lori Grim (lgrim@crain.com) Marketing/Events manager: Christian Hendricks (chendricks@crain.com) Assistant Events Manager: Jessica Snyder (jdsnyder@crain.com) Marketing and sales assistant : Erika Patrice Singleton (esingleton@crain.com) Advertising sales manager: Nicole Mastrangelo (nmastrangelo@crain.com) Senior account executive: Adam Mandell (amandell@crain.com) Account executives: Dawn Donegan (ddonegan@crain.com) Andy Hollander (ahollander@crain.com) Lindsey Nordloh (lnordloh@crain.com) Office coordinator: Toni Coleman (tcoleman@crain.com) Digital strategy and development manager: Stephen Herron (sherron@crain.com) Web/Print production director: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Lauren M. Rafferty (lrafferty@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com)
Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to customerservice@crainscleveland.com, or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation
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ANALYSIS
JobsOhio chief says CincyTech is group to beat Kvamme’s opinion could affect JumpStart, other nonprofits that help entrepreneurs By CHUCK SODER csoder@crain.com
STEPHEN HERRON/MMPI
Downtown Cleveland’s Mall B will be replaced after crews install the new roof of the new underground Cleveland Convention Center, shown here looking south. BELOW: A rendering of the completed complex, with new malls B and C, looking north.
CONVENING A CROWD A year out from expected opening, MMPI officials show off progress at convention center site, say showroom space is 40% leased By JAY MILLER jmiller@crain.com
“Y
ou can’t fathom the size until you get down here,” said Dave Johnson, introducing a media tour group to what will be the 230,000-square-foot main exhibition hall of the 1million-square-foot Cleveland convention center and medical mart. With about a year until the expected opening — the convention center is scheduled to open July 1, 2013, the medical mart Sept. 1, 2013 — Mr. Johnson, public relations director for developer MMPI Inc., is leading a dozen tours a week of the $465
preneurs. Mr. Kvamme is president of JobsOhio — the state’s In the eyes of Mark nonprofit economic develKvamme, one of the six opment corporation — and nonprofits that form the sits on the Ohio Third Froncore of Ohio’s Entrepretier Commission, which is neurial Signature Program in the process of re-evalustands out above the rest. ating the Entrepreneurial Kvamme His affinity for CinSignature Program, or ESP, cyTech could have an impact on the to make sure it’s doing all it can to future of the program, which is a help entrepreneurs in Ohio. The key source of money for JumpStart commission is slated to take a twoInc. of Cleveland and other Northday retreat in late August to talk east Ohio groups that help entreSee GROUP Page 4
THE WEEK IN QUOTES “I’ve seen hot concepts come and go. … Within five years, likely we will see a shakeout and, like Darwin’s theory of evolution, only the strong will survive.”
“Companies now are more willing to coexist as the landscape of engagement has changed.” — Tad Carper, Cleveland Cavaliers senior vice president of communications. Page 7
— Bob Derrington, restaurant analyst, Northcoast Research, Cleveland. Page One
ON THE WEB: Take a video tour of the progress being made at the convention center. www.CrainsCleveland.com/MMPI
million trade show complex. The tours give show managers and prospective tenants of the complex some idea of what they can expect if they agree to bring their events and products to Cleveland. See CROWD Page 18
“I want people to say, ‘Kent State — those are the guys who helped start company X that employs 3,000 people.” — Grant McGimpsey, Kent State University vice president of technology and sponsored programs. Page 13
“The question is whether (our student health insurance) is benefiting the students, though, because of the price increase.” — Matt Beaven, University of Akron risk manager. Page 16
INSIGHT
Order restored at county IT offices, but there’s still room to go Redone contracts, staff cuts help reverse deficit; consolidation, data center upgrade on tap By CHUCK SODER csoder@crain.com
Jeff Mowry has yet to finish fixing the bus. Once he’s done, though, he’ll want your city to get on. Cuyahoga County’s computer systems were a complete mess when Mr. Mowry became the county’s first chief information officer in April 2011. Since then, the former Chrysler executive has turned a $640,000 budget deficit at
the county’s Information Services Center into a $2.8 million surplus, which equates to nearly 19% of the office’s $15 million budget. The center produced the savings mainly by renegotiating several “unfavorable” contracts with vendors and cutting staff, Mr. Mowry said. Through attrition, layoffs and terminations, the size of the county’s IT work force has shrunk over the last year from 199 to 175 — a figure that includes people employed by
the Information Services Center and county agencies with separate budgets. Mr. Mowry has met some other goals, too, but the county’s IT infrastructure in many ways still is a mishmash of employees, hardware and software scattered across several county agencies. That situation will need to change if the Bellville, Ohio, native is to achieve his two main goals: Create a unified, efficient IT department
and provide a long list of IT services to cities throughout the county. Mr. Mowry last month leafed through a presentation describing his plan to get there. On the cover is a house made of colorful wooden blocks. “We use a building block theme because we’re trying to rebuild ourselves,” he said. In addition to cutting staff and reviewing more than 150 IT services See IT Page 7
FILE PHOTO/JANET CENTURY
Jeff Mowry
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Group: CincyTech replicas unlikely continued from PAGE 3
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about ways to improve the program. Following a commission meeting last Wednesday, July 25, Mr. Kvamme said all six of the ESP-supported nonprofits have their strengths, but he thinks CincyTech has “by far the best portfolio” of the six groups. Some of the technology companies in which CincyTech has invested likely will “have big exits,” said Mr. Kvamme, who is a partner at Sequoia Capital, a venture capital firm in Silicon Valley. Among those companies is AssureRx Health Inc., a genetic analysis technology firm that received an investment from Sequoia Capital in April 2011. Mr. Kvamme also lauded CincyTech for operating with just nine full-time employees and carefully selecting the entrepreneurs who receive services. “They’ve kept their operation very lean and mean,” he said during the meeting. CincyTech uses ESP money to provide services to young technology companies in Greater Cincinnati. It invests in startups with financing from other sources, including from the Third Frontier’s Pre-Seed Fund Capitalization Program. Mr. Kvamme is just one of nine commissioners who oversee the broader Third Frontier program, a collection of several initiatives designed to stimulate Ohio’s economy through investments in technology. However, he has played an influential role in the group since Gov. John Kasich appointed him to head up the state’s job creation efforts in early 2011. Partly because of Mr. Kvamme’s suggestions, the commission is replacing some of the grants it makes with loans. It also increased its focus on information technology companies
and on initiatives that are expected to create jobs quickly. Mr. Kvamme did not respond to a follow-up email from Crain’s asking whether he thinks the commission should push the other five nonprofits — JumpStart; TechColumbus; Rocket Ventures of Toledo; the Dayton Development Coalition; and TechGrowth of Athens — to adopt any of CincyTech’s traits. It is unlikely the commission will try to create exact replicas of CincyTech. After the meeting, commissioner Bruce Langos, chief operating officer of Teradata Corp., a data analytics company in Dayton, said he wouldn’t support the creation of a “cookie cutter” model that all six of the core ESP nonprofits would follow. Neither would commissioner Ben Kanzeg, who is Gov. Kasich’s science and technology adviser. “What works in Cincinnati, because they have a lot of private sector partners, may not work in Toledo, may not work in Cleveland,” Mr. Kanzeg said.
A study in contrasts CincyTech and JumpStart differ in significant ways. Among them: ■ Whereas CincyTech employs 10 people, including one person working part time, JumpStart has 48 employees, 25 of whom are paid through ESP grants and related matching dollars. However, JumpStart serves a region with a population of 4.45 million, whereas only 1.7 million people live in CincyTech’s region. CincyTech receives back-office services from the Cincinnati USA Regional Chamber, while JumpStart provides back-office services to other area nonprofits focused on entrepreneurship. ■ CincyTech is more heavily focused on information technology, a sector that Mr. Kvamme on several occasions has said should be a bigger focus of the Third Frontier. More than three-quarters of the startups that receive investments from CincyTech are IT companies, according to CincyTech president Bob Coy. JumpStart’s portfolio is spread more evenly across the IT, biomedical and clean tech sectors and includes a few businesses in other fields as well. ■ CincyTech has a for-profit fund, usually investing alongside individuals or venture capital firms. JumpStart has a nonprofit fund and makes investments on its own. Mr. Coy said CincyTech has remained small because he likely couldn’t raise money from the Cincinnati community to provide
services to more companies. Northeast Ohio has more foundations and a greater sense of urgency when it comes to changing the direction of its economy, he said. CincyTech focused on the IT sector because it is responding to the opportunities it sees, Mr. Coy said. Many of the high-tech startups in the Cincinnati area are founded by people who previously worked for IT departments at Fortune 500 companies in southwest Ohio. “That’s the nature of the deal flow,” said Mr. Coy, who added that Mr. Kvamme did not set up the deal between Sequoia Capital and AssureRx.
Differences in data The Third Frontier Commission in June voted to delay approving $40 million that for two years would fund the six core ESP nonprofits, which would funnel some of the money to other organizations that help entrepreneurs in their respective regions. The commission said at the time that its members needed to take a closer look at the performance data the six nonprofits provided and at the Entrepreneurial Signature Program in general. A private consulting firm hired by the commission to evaluate the six ESP proposals gave JumpStart the highest score in many categories and often ranked CincyTech in the middle of the pack. Both JumpStart and CincyTech have provided services to more than 500 client companies since 2007. Data provided by JumpStart showed that 255 of those clients have attracted $1.2 billion in additional money through investments, grants and sales — metrics the commission considers important to the evaluation process. By comparison, 37 companies assisted by CincyTech attracted $251 million in additional money, but Mr. Coy said the group only collected data from the 40 startups that have received investments from the group and from a few other companies that CincyTech felt would not have received the additional money without the group’s help. JumpStart CEO Ray Leach agreed that his organization has a “very different approach” than CincyTech. In his view, that’s the way it should be. He thinks the Third Frontier Commission shares that view. “I do think the commission has an understanding that not every region of the state is the same,” he said. ■
Lincoln Electric plans CEO transition A change at the top L. Mapes, 50, ON THE WEB Story from is in the offing at Linwho also will www.CrainsCleveland.com. coln Electric Holdings carry the title Inc. of president. Lincoln Electric said John M. Mr. Mapes has been serving as Stropki Jr., 61, who has been chief operating officer of the maker chairman, president and CEO since of welding equipment since Sept. 2004, will become executive 1, 2011, and has been a member chairman of the board and will be of the company’s board since Februsucceeded as CEO by Christopher ary 2010.
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Volume 33, Number 29 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
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the last decade? Will there be further cuts in staff? In an emailed response to an interview request, Plain Dealer publisher Terrance C.Z. Egger provided little clarity on the topic, stating, “We are always working on the evolution of The Plain Dealer and balancing how we best serve the needs of our readers, advertisers and the overall community while remaining a profitable, viable company. “Therefore in the future we will continue to work hard to publish a quality newspaper at the same time we expand our content and sales offerings digitally to serve that growing segment,” he wrote.
To the web Concern about The Plain Dealer’s future is a reflection of the movement of news consumers to online from print. The paper’s print circulation is 232,288 weekdays and 329,130 Sundays, according to a March 31 report from the Audit Bureau of Circulations, an independent industry monitor. Both figures are down more than 30% from its March 31, 2000, daily circulation of 364,708 and its Sunday circulation of 484,034. As circulation has declined, so
has advertising revenue as spending has shifted to online media. While what may be ahead for the print version of The Plain Dealer is unclear, the direction of the publisher’s online efforts soon will be evident. This Thursday, Aug. 2, Cleveland .com, the Advance website companion produced in part by The Plain Dealer, has said it will unveil a redesigned website that is teased as being more reader friendly. Across the industry, Advance gets low marks for its websites, which share a common design. Many in the media see websites, smart phones and tablet computers as the future of news. However, Advance, unlike many newspaper companies recently, has not sought to charge for its digital products. Whether the revamped Cleveland .com will contain a paywall of some sort remains to be seen.
Union influence? Two union contracts in place at The Plain Dealer could influence the timing of any decision to reduce the number of days the paper appears in print, if such a move is made at all. According to a memo dated June
27 and circulated by the Newspaper Guild, which represents newsroom employees of The Plain Dealer, Teamsters Local 473, which represents PD delivery drivers, agreed to a new contract with the paper that allows the newspaper to cut the jobs of 56 single-copy drivers. In exchange, the paper agreed to guarantee jobs for 300 drivers until 2017. The paper will hire part-time contractors to handle single-copy delivery, according to the Newspaper Guild memo. Teamsters union president David Williams did not respond to two phone calls from a Crain’s reporter to discuss the memo. Likewise, Harlan Spector, chairman of the local Newspaper Guild, said his members have a contract that guarantees 174 jobs until 2014. The Times-Picayune and most other newspapers in the Advance chain are not unionized. As a private company, Advance does not disclose revenue or profit figures. Five years ago, Cleveland Magazine reported that then-editor Douglas Clifton told his reporters that The PD’s profit margin was equal to “passbook savings account interest” — in the 2% to 3% range. That’s a far cry from earlier years, when newspapers counted on pre-tax
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profits in the range of 20% to 30%. It isn’t known whether the paper is profitable today.
Varied markets, varied plans Katrina M. Mendolera, editor-inchief at inVocus, which publishes a quarterly “State of the Media” report, doesn’t see a reduction in The Plain Dealer’s print schedule as imminent. “Will we see The Plain Dealer’s print schedule cut tomorrow? Probably not,” Ms. Mendolera said. However, Ms. Mendolera said Advance has made it clear it envisions a digital-first future. Randy Siegel, president of local digital strategy for Advance, confirmed that thinking to the American Journalism Review in June, shortly after the New Orleans announcement. “My guess is there will be variations in the plans that are formulated in each of the Advance markets,” he said. Mr. Siegel, a Cleveland native who was publisher of the former Free Times alternative weekly when it was owned by his family, said newspapers must evolve. “We’ve watched very closely in all our markets how our readers and advertisers are using digital products and services to get their news and information,” he told the journalism watchdog publication. “For us, this is not about print versus digital. It’s about print and digital, and there’s a huge difference.”
Stirring up the industry The Advance moves remain the talk of the media business. “The movement in New Orleans and Alabama is very distressing,” said David Cole, editor and publisher of NewsInc., a weekly newsletter on the business of the newspaper business, and proprietor of The Cole Group, a San Francisco-area media consultancy. “But I also appreciate Newhouse’s (approach); what they are looking at is not next year but 10
years, 25 years down the road and what the news business will look like.” Mr. Cole said he could foresee a time when digital is the revenue engine and print adds little ancillary cost. “The fallacy to this is that Newhouse/Advance doesn’t have very good websites,” Mr. Cole said. “Maybe when all they are doing is putting out websites, maybe they will have better websites.” Most industry observers see Advance tailoring its decisions on print versus digital to the local situation. “It may be that the circumstances in Cleveland are different than New Orleans,” said Alan Mutter, a former newspaper reporter and editor and Silicon Valley software entrepreneur who now blogs at “Reflections of a Newsosaur.” “Advance has done different things with different papers in different markets,” Mr. Mutter said. He cited Ann Arbor, Mich., where Advance operated the moneylosing Ann Arbor News. There, it shuttered the newspaper entirely in favor of its online product. However, the company quickly backtracked and now publishes AnnArbor.com two days a week. Mr. Egger and his staff have worked hard to cut costs and boost revenue at The Plain Dealer, which has cut staff: Mr. Spector, the paper’s union chairman, said his guild unit now numbers 174, down from 340 in the early 1990s. The Plain Dealer also now prints regional editions of The New York Times and The Wall Street Journal, in addition to the weekly Sun Newspapers, which also are owned by Advance. In 2010, it put a “for lease” sign in front of its Superior Avenue building, looking for tenants to lease 88,000 square feet in the 250,000-squarefoot building. In summer 2011, technology support services firm MCPc Inc. moved into 49,000 square feet of the building, which The Plain Dealer opened in 2001. ■
Akron-Canton Airport traffic hits record Passenger traffic For the first ON THE WEB Story from records keep falling at six months of www.CrainsCleveland.com. Akron-Canton Airport. the year, After setting a new monthly mark Akron-Canton also has seen a 12% in May, 168,935 customers traveled rise. through Akron-Canton in June, Akron-Canton also was ranked beating the May mark by 10,000 as the 11th-most affordable airport in the United States and the tops in passengers and beating last June’s the state of Ohio, based on a study mark by 17,820 passengers, a by CheapFlights.com. 12% jump.
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In sports sponsorship, companies more willing to co-exist Teams report that venue exclusivity within an industry no longer top priority in doing deals By JOEL HAMMOND jmhammond@crain.com
A few years ago, the Cleveland Indians may not have been in a position to send a direct marketing email to the team’s vast distribution list on behalf of Columbus-based energy distributor AEP, as it did two weeks ago. Technology has made such communication infinitely easier, of course. But another shift — in the sponsorship realm in pro sports — has made possible such targeted assistance on behalf of a corporate partner, even if it competes directly with a longtime sponsor, as AEP does with Akron-based First-Energy Corp. Executives with each of the major
sports teams in Cleveland report that sponsors these days are more willing to cede exclusivity in their category. Reasons vary: Some are economic as sponsors reconsider how much they’re willing to pay for exclusive marketing rights, while the teams’ abilities to better segregate sponsorship messages also has removed the need for exclusivity. FirstEnergy long has been a prominent sponsor at Progressive Field, and the company’s logo currently adorns the right-center field wall. But the energy category is just one of many where competitors co-exist at Progressive Field. Think FirstMerit and KeyBank in banking, Toyota and Mercedes-Benz in automobiles, and others.
IT: Selling services to other cities next on the agenda continued from PAGE 3
contracts — many of which previously contained clauses that forced the county to pay higher maintenance fees each year — Mr. Mowry described several steps he has taken to improve the effectiveness of his department and the county as a whole. Among them: ■ The county is rolling out software that will allow it to put most of its computers on one network. When Mr. Mowry arrived, the county used 28 networks, each requiring different passwords. The move should make it easier for IT employees to distribute software updates and control computer access. ■ Before Mr. Mowry arrived, the county didn’t have a help desk that employees could call for computer support. Now three people staff the phones. Mr. Mowry eventually may add a few more. ■ Mr. Mowry stopped the county’s longtime practice of letting different agencies choose what hardware to buy, which resulted in inconsistency across the agencies and prevented the county from buying in bulk. Now the central IT department makes the purchases, following the state of Ohio’s standards when deciding what equipment to buy. ■ The county is replacing many of its desktop printers with shared printers, which Mr. Mowry said are roughly 15 times cheaper to print from on a per-page basis. The county previously had one printer for every two employees. The amount of printers it is selling, donating and scrapping probably will fill three semi trucks, he said. ■ The county has built a new website that contains information on contracts the county awards. It’s working with Hyland Software Inc. of Westlake to develop a database that would help county employees sign off on contracts electronically. The contract approval process involves a lot of paper today.
Still work to do Some of the biggest changes are yet to come. The county is about to start shopping for Enterprise Resource Planning software, which it would
use to manage much of its daily business. That implementation likely will take two or three years, Mr. Mowry said. “We want to take our time and do it right,” he said. The county also plans eventually to bring most of its remaining 175 IT employees into one department. About half of them work for individual agencies, not the Information Services Center, which since 2005 had been run by Dan Weaver, who was sentenced to three years in prison last August for paying bribes to former county auditor Frank Russo. Plus, the county data center will need a significant upgrade, Mr. Mowry said. For one, the county still uses a mainframe computer — the kind accessed by typing green letters on a black background — to run its accounting and payroll software. Though the county isn’t ready to start selling many IT services just yet — today it provides web hosting to six Cleveland suburbs and Internet phone service to one — Mr. Mowry has been working to build relationships with cities that might want to work with the county. Parma has shown a willingness to pilot new services, he said. The city is paying the county to build its new website, which among other things will allow residents to sign up for recreation programs online and eventually could let them file permits and other applications via the web, said Parma Mayor Timothy DeGeeter. Parma might buy computer equipment in bulk through Cuyahoga County contracts, and it eventually might use the county’s help desk and its email system, Mayor DeGeeter said. The county also may play a consulting role as Parma works to improve its own IT systems, he said. “With the county’s resources, I think Parma can greatly benefit from partnering with them,” the mayor said. For now, though, job No. 1 is to get moving on the Enterprise Resource Planning system, Mr. Mowry said. “We really need to focus on this ERP implementation to make the county more efficient,” he said. ■
There still are exclusive arrangements at the ballpark — insurance, naturally, after Progressive Corp. paid $58 million for 16 years for naming rights, and soft drinks, held by Pepsi. But the premium that must be paid to close a sponsorship category to rivals has been re-evaluated. “While certain exclusivities remain within sponsorship deals, there is a growing trend we’ve seen of companies walking away from larger deals with complete exclusivity to focus and allocate those additional financial resources” on implementing their marketing campaigns, wrote Vic Gregovits, the Indians’ senior vice president of sales and marketing, in an email. “It’s a departure from the recent past.”
Competition at The Q KeyBank also has a prominent presence at Quicken Loans Arena, as its name adorns the Key Private Bank Court Club on the floor level; only the Cleveland Cavaliers’ floor seat holders have access to that area, which features all-inclusive food and beverages. But Huntington Bank, which has expanded its presence in Cleveland over the past few years, also has a prominent presence at the arena, sponsoring the Hunt-
ington Bank Club Level. “We make those exclusivity decisions on a venue-to-venue basis, or a team-to-team basis,” said Tom Wennerburg, Key’s director of marketing strategy. “It really depends on what and who you are trying to reach. Does exclusivity provide that to you in a better way, and is the value worth it?” At The Q, exclusive arrangements remain in the hospital (Cleveland Clinic), cellular (Verizon), cable (Time Warner) and soft drink (Pepsi) categories, said Tad Carper, the Cavs’ senior vice president of communications. But, as those interviewed agreed, the willingness to relinquish exclusivity has been driven by the many ways teams are able to activate — marketing-speak for bringing a company’s presence to life, rather than simply placing a sign in the arena — a partner’s sponsorship. Those avenues include radio and TV, in-game entertainment, direct marketing such as the Indians’ AEP email, and social media. “Companies now are more willing to co-exist as the landscape of engagement has changed,” said Mr. Carper, who noted that teams also can generate more revenue in a category if multiple companies within
an industry join the marketing fray.
Transparency is key Eric Wright, vice president of research and development at Joyce Julius & Associates, a consultancy in Ann Arbor, Mich., that measures and evaluates sponsorships and promotion, said while exclusivity still is a big deal for companies, the shift to more lively branding within a venue has eased some concerns. “Exclusivity is a larger issue with static signage,” Mr. Wright said. “When you’re activating that in different ways, you can see why it’s no longer a premium” concern for sponsors, he said. Of course, it’s still a delicate issue within nonexclusive categories, so communication becomes paramount. The Cavs, for instance, alert their sponsors when a new corporation in their category comes aboard to avoid any tension later from, say, existing partners in the finance or auto industries. “It’s not a conversation you want to have after the fact,” Mr. Carper said. “Transparency is necessary in crafting these relationships. Would (something new) potentially impact other relationships? We address that in the early going.” ■
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JULY 30 - AUGUST 5, 2012
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Road rant
I
t would be great if Ohio’s current governor, John Kasich, adopted the spirit of a deceased Republican predecessor, Jim Rhodes, in one significant way. We’d love to see Gov. Kasich push for a higher severance tax on the state’s oil and gas drillers with the intent of putting the money toward roads and bridges, instead of using the new revenue to offset a cut in personal tax rates. The name of the late Gov. Rhodes forever will be connected in an inglorious way to the events of May 4, 1970, when National Guard troops he had ordered to the campus of Kent State University to quell anti-war protests opened fire and killed four young people. However, Jim Rhodes also deserves credit for being a big investor in the state because of the agenda he pushed during the first of his two, eightyear runs in the governor’s mansion. He would campaign under the banner “Rhodes for Roads,” as he saw the importance to Ohio’s economy of creating a strong highway system. And the state did benefit from the investments made during the 1960s, when Gov. Rhodes and the Legislature aggressively sunk big chunks of money into infrastructure. Fifty years later, the need for public investment in transportation systems is greater than ever, as confirmed in a new report prepared by market intelligence firm IHS Global Insight for the U.S. Conference of Mayors. The report looks at what IHS says is the strong link between a metropolitan area’s transportation infrastructure and its economic health. It maintains that infrastructure repair and investment “is a crucial means of jumpstarting the U.S. economy and positioning the nation for future economic growth.” Yet it also notes that despite what the report calls “the clear benefits of infrastructure investment, the U.S. has not been making this enough of a priority.” In its conclusion, the report states, “There is no magic bullet to curing the nation’s infrastructure deficiencies.” No, there is not. The states can’t count on the federal government to funnel oodles of transportation dollars down to them. Instead, they must figure out ways to raise more money themselves. Ohio has a big incentive to come up with more infrastructure dough because it’s home to several metropolitan areas, which hold the greatest potential for job growth because most of Ohio’s economic activity is concentrated in them. However, the way to gain that money isn’t through leasing the Ohio Turnpike, which is Gov. Kasich’s favored way of coming up with a stash of infrastructure cash. Rather than chance the negatives that could come with turning over to private interests a valuable public asset such as the turnpike, the governor and Legislature should use Ohio’s shale exploration boom to the state’s advantage by raising the severance tax on drillers. The money could be recycled to create more jobs by repairing and replacing roads and bridges, which would help keep the wheels of commerce rolling statewide. If Ohio’s personal income tax rates were onerous now, we might think otherwise. They’re not, so let’s invest for the future instead.
FROM THE PUBLISHER
In politics and sports, the truth pays
S
else wants to pay you a lot more, then poiler alert: if you don’t find proyou would probably seriously consider fessional sports or politics — or taking that next job. their connection — interesting, I get that. Just man up and have the then you probably will want to courage to say it like it is: “Man, I love turn the page. playing for the fans in Cleveland, but I Those of you who have read this only have so many years to play this column over the years might be familiar sport, and somebody else is offering a lot with the commentary I offered up after more money. I’m taking the cash.” Carlos Boozer left the Cavaliers or Jim Now, fans still would hate Thome left the Indians (the first the fact that they’re losing a time). BRIAN sports star, but they might just Both men, either directly TUCKER respond a bit better to the honor through their paid spokesesty, don’t you think? blabbers, basically offered the And as for politics, this whole same vapid rationalizations — Democratic attack on Mitt wanted to stay here, loved the Romney for how much he’s fans, hated to leave teammates, worth, how and when he made had to do what’s best for family, his money at Bain Capital, blah, blah, blah. where he deposits it, etc., is just Baloney. It was about the plain tedious. It’s past time for money. It was always about the money. Mitt and his band to stop shying away They got paid more millions to play from the fact that the GOP candidate for elsewhere than the millions that their president in 2012 is a very wealthy guy. Cleveland team owners were paying It doesn’t mean he wouldn’t make a them — or offering to pay if they stayed. good president, or that he necessarily And that’s OK. We live in a capitalistic isn’t sympathetic to the plight of those society, and it’s all about opportunity to beneath him on the economic ladder — trade your work for a salary. If somebody
virtually all of us. But the way it’s going, he and his campaign staff are just going to have to keep sidestepping and allowing the opposition to continue hammering at him. Why not just admit to it, and be done with it? “Yes, I’m wealthy, and I was raised in a family of means,” he could say. “My dad was a car company executive and governor of Michigan. I can’t help that. “I’ve built a successful career, made millions and millions along the way, and also given away millions to my church. I’m not going to apologize for that. And, by the way, I’m not interested in being your president for the salary or the lucrative book and speech deals when I’m done.” Think how much better LeBron James would be thought of by Cleveland fans if he had handled his departure from the Cavaliers with similar forthrightness? I have to think Mr. Romney also would be respected by a lot more folks if he took a similar tack and then just tried to concentrate on selling himself as the best man to lead the country. ■
THE BIG ISSUE After the theater shooting in Colorado, do you think changes need to be made to gun laws in the United States?
ERIC JEFFERIES
MATT WEBB
RICH DUGAN
CASSIE CALVERT
Cleveland
Walton Hills
North Ridgeville
Cleveland
“No, I think they’re fine the way they are ... I’m a gun owner. I think they’re getting a little more strict.”
“I think the gun laws are fine the way they are. I think it’s more or less about making sure people who buy guns are mentally stable and don’t have felonies.”
“Absolutely not. Guns don’t kill people. People kill people.”
“In my personal opinion, if some of the people in that theater had licenses for concealed carry, maybe that man would have been taken down a little faster and less people would have been shot.”
➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com.
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Filter manufacturer adding to Oakwood space, payroll By JAY MILLER jmiller@crain.com
An Oakwood Village company has found a way to insulate itself from offshore competition and grow. Swift Filters Inc. plans to make its second move in a decade, as it looks to build a $3.15 million plant with help from Cuyahoga County and Oakwood Village. The company intends to almost double its work force. President Ned Swift said the specialty filter manufacturer has been able to maintain controlled, steady growth since it moved fully into manufacturing in 2003. The new plant, which would be 33,000 square feet and would be adjacent to the company’s existing 11,000square-foot building at 7805 First Place, will allow the company to
continue to bring in-house more steps in the manufacturing process and to build inventory for its aftermarket filter business, which serves customers as diverse as aircraft makers and race car drivers. Mr. Swift said the company now leases 20,000 square feet of warehouse space across the street from its existing building. The company will move its warehouse operations from that building when the new plant is complete. Cuyahoga County is providing financial assistance in the form of a 15-year, $1.26 million loan. In return, the company has pledged to create 36 jobs. Mr. Swift said the company will add a second shift when the new building is complete. The company currently employs about 40 people. Swift Filters was founded by Edwin
Swift Sr., Ned Swift’s father, as a manufacturer’s representative firm in 1957. It makes cellulose, fiberglass and stainless steel replacement industrial filter elements and custom filter elements. Ned Swift said the company’s ability to handle short runs and to serve customers with just-in-time logistics has helped it stave off Asian competition. “Shorter lead times are driving the growth,” Mr. Swift said. “We’re more insulated from off-shoring because of the long lead times (involved in) going overseas and because of quality control issues.” Mr. Swift said a customer recently came to him who had been waiting for a product outsourced to China that ended up not meeting standards.
County steps up In addition to the county loan,
Oakwood Mayor Gary Gottschalk said the village has approved a tax abatement and a job creation tax credit for Swift. The 15-year, 90% tax abatement on the new construction, which includes abating taxes that would have gone to the Bedford City School District, will save the company $336,150 over 15 years. Oakwood estimates the six-year job creation tax credit — a rebate of municipal taxes the village collects from any new employment — is projected to save the company between $75,000 and $100,000 over the life of the credit. Mayor Gottschalk admits the village and the schools are paying a high price by forgoing property and income taxes. However, he said he believes it’s worth it in the long run, especially at a time when a company such as Swift Filters could have spent
less by buying a lower-priced existing building in another community. “Short term, you’re still creating jobs,” though the city is not getting new taxes, he said. “But what a wonderful legacy it is down the road.” From the county’s point of view, its loan is part of an effort to step up its role in economic development. The county is beginning to implement its plan for a $100 million economic development fund. “We’re trying to pivot from being a passive entity to being a much more aggressive” participant in the economic development of the county, said Larry Benders, the county’s director of development. Mr. Benders said the county has supplied $22 million in loans and grants to 29 projects over the 18 months since Ed FitzGerald became county executive. ■
Cupcakes: Drought sends ingredient costs rising Wellness big business for Solon firm continued from PAGE 1
frozen yogurt shops in the 1990s. “As long as you have one on a street corner, your sales could be pretty good,” he said. “But all of a sudden, when you’ve got another, you start reducing and subdividing the market. Before long, no one’s making money. “I’ve seen hot concepts come and go,” Mr. Derrington added. “Within five years, likely we will see a shakeout and, like Darwin’s theory of evolution, only the strong will survive.” Many of Northeast Ohio’s newest shops are trying to differentiate themselves amid the crowd. Not only does it create softballsize versions of the treat, but Colossal Cupcakes, which opened in March in downtown Cleveland, also has begun stuffing its cupcakes into a blender, adding milk and ice cream and creating cupcake shakes, owner Kelly Kandah said. Auts Tipse Treats, home-based in Broadview Heights, opened last August and sells buzz-inducing cupcakes, rooted in owner Autumn Skoczen’s patent-pending process of adding alcohol after baking. “They’re strong little devils,” assured Ms. Skoczen, who has coupled her extensive bartending experience with her interest in the cupcake trend. And Pure Delite Cupcakes, which opened its second location in Strongsville July 18 and its first in Fairlawn in late 2010, sells goods that contain half the calories, sugar and fat of similar-size cupcakes, said owner Rachel Hough, who was motivated to bake a healthier breed by her lifelong battle to lose weight. Other shops market vegan and gluten-free treats.
Home sweet home Some cupcake purveyors don’t operate shops at all, but are starting businesses out of their homes, waiting to see if they have what it takes before investing in storefronts, said Rachel Kramer Bussel, co-editor of Cupcakes Take the Cake, a blog with correspondents around the world. Social media and the free marketing they allow likely have had a lot to do with that trend, she said. SweetPea Sinsations, for example, launched in March in owner Jenn Brown’s home. Now Ms. Brown, who is culinary trained and filling $300 to $600 of orders per week, is seeking a storefront in the Solon or
These cupcakes were featured in Crain’s Cupcake Taste Test, results of which can be found at www.Crains Cleveland.com/ Cupcake. Front row: Main Street Cupcakes and Baby Cakes Specialty Cupcakes. Back row: Little Devil Cupcakery, Colossal Cupcakes and Sweet! The Mobile Cupcakery. STEPHEN HERRON
Twinsburg area to keep up with that demand. She’s aiming to open early next year. There’s also Heather Gragg, a 28year-old who is leaving her fulltime barista job Aug. 1 to take her home-based business, Caliber Cupcakes, full time. Is Ms. Gragg concerned about all the competition? “Oh no, not at all,” she said. “If you have a product that is a good quality, then you have nothing to worry about.” Maybe not, said Northcoast Research’s Mr. Derrington. Every restaurant thinks it has the best cream cheese frosting and the best recipes, Mr. Derrington said, “but I think unfortunately, the reality is, it’s not a real distinguishable product versus others who come into the market.” “If I’m a bank, and I’m lending to a cupcake shop, I sure better have some compelling reason why you believe your product will withstand all the likely competition as it comes into the marketplace,” Mr. Derrington said.
Feeding demand Dave Southerington is undeterred. In his former life, he was a substitute art teacher. But as school closures and budget cuts spread, he began selling cupcakes. Though he initially planned on a storefront, Mr. Southerington opted instead to take advantage of both the popularity of cupcakes and that of food trucks and launched Sweet! The Mobile Cupcakery in May 2011.
Operating on wheels has fewer overhead costs, he said. Cupcake profits nonetheless can be touchy, Mr. Derrington said, noting that a store that loses as little as 10% of its sales can go from very profitable to marginally profitable. A current issue for the entire restaurant industry, he added, is that ingredient prices are under pressure, and the hot, dry summer this year is expected to push costs further north due to poor harvests of corn, wheat and other staples. “All those escalating operating costs at a period of time when sales could be vulnerable to encroachment could ultimately push what is a profitable business into the red pretty quickly,” Mr. Derrington said. Most in the business, though, say the more, the merrier, because they believe the more cupcake vendors there are, the more people will be turned on to cupcakes. “Truthfully speaking, we have not seen a dip in sales,” said Sarah Forrer, who opened in 2007 the first of three locations of Main Street Cupcakes with her sister, Kimberly Martin. “I think the market is there. There are enough people who want cupcakes.” Clearly, there’s a crowd that wants to sell them, too. Mr. Derrington attributes the influx of cupcake shops to the dessert being a “relatively easy product” to make and its affordable start-up costs. Plus, people see it not just as a business, but also a creative outlet, said cupcake blog co-editor Ms. Bussel.
Brownies, anyone? A big unknown is the staying power of the cupcake craze. Just last week, a front-page headline in Crain’s New York Business declared: “Doughnuts: the new cupcakes.” It’s not the first time predictions have been made that cupcakes will be replaced by a new food fad. Though most people in the cupcake business don’t expect it to crumble, they acknowledge it will peak, or become saturated, at some point, and some are preparing accordingly. Main Street Cupcakes’ owners already sell cupcake mix and buttercream frosting to multiple retailers — a direction through which the company can grow even if storefront expansion plans stall, Ms. Forrer said. And Auts Tipse Treats, whose owner is eyeing locations in Cleveland’s Ohio City neighborhood and aims to open a storefront this winter, is positioned to develop the next alcoholic treat when, “inevitably,” the cupcake trend dies out, owner Ms. Skoczen said. That treat could be brownies, Ms. Skoczen said, or cake pops and cake balls, the newfound popularity of which has reached such heights that some shops sell only them — for example, The Cute Little Cake Shop that opened in 2011 in Strongsville. “One of the great things about us is my name is not Auts Tipse Cupcakes,” Ms. Skoczen said. “We’re ready to take on the next trend.” ■
By TIMOTHY MAGAW tmagaw@crain.com
Keeping employees healthy is a good business plan these days as health care costs continue to inch upward, and a Solon-based company appears to be benefiting from helping employers do just that. Launched in 2005, BeWell Solutions positions itself as a business that can improve an employer’s bottom line by reducing employees’ health risks through educational seminars, biometric screenings, health coaching and other tactics. Revenues at BeWell, according to its top executives, are on the upswing, growing 100% in 2010 over the previous year and 60% on top of that in 2011. At present, BeWell is 40% ahead of where it was last year in terms of revenue, with “major opportunities in the pipeline,” said William Frankel, its executive vice president. Specific revenue figures were not disclosed. The company recently moved from a 3,500-square-foot space in Beachwood to a 9,000-square-foot space in Solon to accommodate its growing employee base. The company employs 15 full time and 20 parttime staffers, which include nurses, medical assistants, phlebotomists and other health care professionals. Mr. Frankel said one of BeWell’s greatest assets is that it’s owned and operated by physicians and doesn’t outsource its work. BeWell’s medical director and CEO is Dr. Ronald Golovan, who also serves as the Cleveland Indians’ team doctor. BeWell’s client roster includes companies from across the country as well as several large local employers, among them Hyland Software in Westlake, US Endoscopy in Mentor and Vitamix Corp. in North Olmsted. Health care costs at Automated Packaging Systems, a maker of packaging machinery and provider of packaging materials in Streetsboro, have started to trend downward in large part due to programs BeWell helped design, said Denise Gibson, the company’s human resources manager. ■
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WESTON HURD LLP: Martha L. Allee to associate.
Mark Szczepanik to associate creative director; Charlene Coughlin to senior account executive; Erin Smith to insights associate; Sarah Duna to creative coordinator; Kelly Monachino to account executive; Joe Banar and Ken Garth to quality assurance specialists; Matthew Forbes to senior copywriter; Gary Acuff to proofreader; Kyle Jackson to junior project manager; Adam Arp to front end developer; Mary Ann Kassouff to operations specialists; Cody Peck and Madeline Malicki to social influence specialists; Justin Harrell to associate art director; Adam Esposito to email marketing specialist; Holly Koch to assistant account executive; Quovada Bass to production art services manager; Kelsey Chapman to traffic manager.
MANUFACTURING
NONPROFIT
A. SCHULMAN INC.: R. Kelly Hines to director, global financial planning and analysis.
CLEVELAND MUSEUM OF NATURAL HISTORY: Peter Anagnostos to chief development officer.
DIEBOLD INC.: Tony Byerly to executive vice president, electronic security.
MEDWORKS: Deby AuerbachBrown to director of development and marketing.
TCP: Mike Masino to executive vice president, North America.
NORTECH: Johnathan M. Holifield to vice president, inclusive competitiveness.
GOING PLACES JOB CHANGES
Ulsenheimer to senior banking specialist.
ARCHITECTURE HASENSTAB ARCHITECTS: Dennis Check to president.
CONSTRUCTION MOTZ GROUP LLC: Matt Hogg to field consultant.
FINANCIAL SERVICE CITIZENS WEALTH MANAGEMENT: Preet Jesrani to relationship manager. RETIREMENT SOLUTIONS: Katherine Gordon to associate financial consultant.
CONSULTING NEWRY CORP.: Sylvan Shank to associate.
EDUCATION BEAUMONT SCHOOL: Sister Erin Zubal to athletic director; Mary Durkalski to recruitment and admissions associate; Gina Tytko to guidance counselor; Scott Keil to facilities manager. KENT STATE UNIVERSITY: Marcello Fantoni to associate provost for global education. LUTHER MEMORIAL SCHOOL: JoAnn Luecke to director of development. NEW HORIZONS COMPUTER LEARNING CENTERS: Scott McCombs to technical instructor.
FINANCE OHIO COMMERCE BANK: Jessica
WWW.CRAINSCLEVELAND.COM
LEGAL STARK & KNOLL CO. LPA: Orville Reed III, David Bertsch and David Hilkert to partners.
MARKETING ADCOM GROUP OF COMPANIES: Alana Munro to social media manager;
SPIRE INSTITUTE: Jack J. Lesyk to director, SPIRE Sport Psychology Services.
JULY 30 - AUGUST 5, 2012
BOARDS CLEVELAND JEWISH PUBLICATION CO.: Marc W. Freimuth (Kurant Wachter Co. LPA) to president; Gayle I. Horwitz, Mark D. Goren and David R. Hertz II to vice presidents; Gena Cohen to secretary; Eileen Korey to assistant secretary; Larry Goodman to treasurer; Steve Goykhberg to assistant treasurer. CLEVELAND METROPOLITAN BAR FOUNDATION: Lynn A. Lazzaro (Law Offices of Lynn A. Lazzaro) to president; Ginger F. Mlakar to vice president; Lisa M. Yerrace to treasurer; Sherri L. Dahl to vice president, development; David R. Watson to executive director and secretary. PHI BETA KAPPA CLEVELAND ASSOCIATION: Howard Fencl (Hennes Paynter Communications) to president; Monica Tarasco to vice president; Patricia Harris to treasurer; Kathleen Wendling to secretary.
AWARDS CLEVELAND FOUNDATION: Vickie Eaton Johnson (Fairfax Renaissance Development Corp.) received the 2012 Homer C. Wadsworth Award. CLEVELAND METROPOLITAN BAR ASSOCIATION: Ann C. Rowland (United States Attorney’s Office) and Michael M. Hughes Sr., posthumously, received the Honorable William K. Thomas Professionalism Award; G. Christopher Meyer
Check
Shank
Luecke
Allee
Holifield
Fencl
(Squire Sanders) and Marlon A. Primes (United States Attorney’s Office) received the Justice for All Volunteer of the Year Award; Duane Olderman (Cleveland Metropolitan School District) received the Liberty Bell Award; Louise Dempsey received the President’s Award. ERNST & YOUNG: Dr. Robert Kent (Summa Western Reserve Hospital) received a 2012 Entrepreneur of the Year Award. RECOVERY RESOURCES: Judge Donna Congeni Fitzsimmons (Rocky River Municipal Court) received the 2012 Exemplar Award.
Send information for Going Places to dhillyer@crain.com.
Buyers Products adds fourth plant to Mentor operations By GINGER CHRIST gchrist@crain.com
Buyers Products, a Mentor-based manufacturer of truck accessories and equipment, has acquired a 500,000-square-foot production plant in Mentor. Buyers Products bought the plant, at 8200 Tyler Boulevard, in order to grow its snow and ice control product lines. The company now operates four manufacturing plants in Mentor and occupies 1.4 million square feet. Though terms of the deal were not disclosed, records on the Lake County Auditor’s website indicate the property was sold June 25 by The Mentor
ON THE WEB
Story from www.CrainsCleveland.com
Ind Pk for $1.5 million to 8200 Tyler Realty LLC, the real estate arm of Buyers. Brian Smith, marketing manager at Buyers Products, said the company needed more space to handle its growth. A specific date for production to begin at the plant isn’t set, but Mr. Smith said it will be several months because of the renovations the company plans to complete on site. Among the types of equipment Buyers Products makes are snow plows, snow pushers, salt spreaders, dump inserts and toolboxes. â–
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Geis brothers plan offices Suppliers: Recession’s survivors thrive at former fitness center continued from PAGE 1
By STAN BULLARD sbullard@crain.com
An affiliate of Geis Cos. in Streetsboro hopes a makeover of the longclosed Wellworks fitness center in Solon works out as an office building. Through 30455 Solon Road LLC, the property’s address, brothers Greg and Fred Geis of Geis Cos. have bought the building and are converting it to office space, according to Rico Pietro, a principal of the Cresco real estate brokerage. Mr. Pietro, the broker for the property, returned calls placed to Greg Geis to discuss the project. The developer may lease the nearly 50,000-square-foot structure to one office user or subdivide it for multiple tenants in a conversion it dubs the “Paragon Office Environment.” The city of Solon is so pleased to have the long-empty building put back into service it has approved a $70,000 grant from its Growth and Revitalization Incentive Program. Payable upon completion of the renovation, the grant assists revitalization of underused office or industrial properties more than 10 years
old, said Peggy Weil Dorfman, Solon economic development manager. To qualify for such a grant, developers would need to spend more than $250,000 on the project, Mrs. Dorfman said. “This is a nice project,” said Mrs. Dorfman, who noted that the building has been vacant since 2009. Mr. Pietro declined to say how much the developers are spending on the project. Although online realty data provider CoStar reports a 16% vacancy rate for office space in Solon, Mr. Pietro is undaunted. That’s because an asking price of $14.90 a square foot at Paragon is competitive in Solon. CoStar reports office rents range from $12 to $26 a square foot in the suburb. Cuyahoga County land records show 30455 Solon Road LLC paid Workwell Properties Ltd. just $45,000 for the building, which the county values at $216,000 for tax purposes. Mr. Pietro said the price reflects how much work the property needs and does not include other bills paid at the time of purchase, such as unpaid taxes. ■
on new equipment and plant improvements. That investment comes after last year, when he took Stripmatic from a 40,000-square-foot plant in Cleveland to its current, 60,000square-foot digs on Grant Avenue in Cuyahoga Heights. Stripmatic’s latest investment includes the big press, a system to feed coiled steel into the press, a laser welder from Euclid-based Lincoln Electric and other general plant improvements, Mr. Adler said. While $1.6 million might be less than a blip on the radar to a huge original equipment manufacturer such as General Motors or Ford, it’s a big investment for a company such as Stripmatic. It only has 27 employees, said Mr. Adler, who noted that keeping the company lean is one reason he’s willing to invest in equipment such as automated coil feeders, which allow presses to be run with less manpower. “We’re highly automated and very efficient — that’s been a key tactic for us to compete with Asian imports,” Mr. Adler said.
Act now or forever wait Automotive stampers such as Stripmatic are so busy that there is
now a long wait for any of them trying to order new presses. Mr. Adler said he bought his press when he was told it was available from inventory because if he didn’t he would have waited months or even a year for another press to be available. Robert Southwell, vice president of sales and marketing for Daytonbased Aida America Corp., a press manufacturer, confirms Mr. Adler’s observation. “Business has been extremely strong especially since the start of 2012 for us as well as many of our competitors,” Mr. Southwell told Crain’s via email. “It can be a year or more to get a midsize press (300-800 ton) and up to two years for larger transfer presses,” Mr. Southwell said. In Wickliffe, press maker Ajax Manufacturing is seeing similar demand — and quoting similar wait times for a lot of new orders. Ajax makes mostly forging presses that work with hot metal, and most of its recent demand comes from customers that forge parts used in the oil and gas industry, said Ajax president Charles Crout. But automotive suppliers still make up a large part of his business, and he said he’s making presses for them as well. “We are, frankly, overwhelmed,” Mr. Crout said. “Today, I’m quoting deliveries in the 18-month range.” And it isn’t just presses that suddenly are in demand, said Bill Gaskin, president of the Precision Metalforming Association in Independence. “In addition to the presses, there are also backlogs on the transfer systems and uncoilers, feeders and straighteners required to feed and process the larger coils of metal used for these larger presses,” Mr. Gaskin said. “Of course if there were a sudden downturn, lead times might drop dramatically. Two years ago there was very little by way of lead times for these same presses.”
in the current economy. “Hiring at manufacturing firms continued to vary by district,” the Federal Reserve stated in its July 18 Beige Book report on the nation’s economy. But, it went on to say, “Cleveland and Chicago noted that automobile production remained a source of strength.” Area auto suppliers say they’re benefiting from stronger U.S. auto sales and are growing market share, in part because some of their competitors did not weather the last recession. They also note the automotive supply chain is back on its feet after it was weakened by the Japanese tsunami in 2011. That’s all good for business, say people such as Jerry Zeitler, president of another area stamper, Clevelandbased Die-Matic Corp. Like Messrs. Adler and Mullen, Mr. Zeitler said the automotive portion of his business has improved from last year, though the growth is slower than it was in March and April. Mr. Zeitler is not making any big investments in equipment, but he’s hiring a few people, he said, including a production manager and one or two other mid-level positions.
World of opportunity Some area manufacturers say they are shipping parts farther as they gain market share to boot. Mr. Adler said Stripmatic sold nothing to Mexican auto plants just three years ago. Today, about 10% of its business goes to Mexican plants that make cars and heavy trucks, and he predicts that figure will jump to 20% over the next year, thanks to new orders it is receiving. That’s not because Mr. Adler’s domestic customers are ordering less, but because Mexican plants have been seeking U.S. suppliers such as Stripmatic, he said. Now, the question is whether the business will continue to hold up. A factor that worries some manufacturers, they say, is whether the industry is benefitting now from pent-up demand for new vehicles that built up during the recession. Die-Matic’s Mr. Zeitler said his August order flow is still strong but might come in a little below April, which was an especially strong month. He isn’t worried yet, he said, but he’s also well aware that August, not April, is his busiest month in a normal year. On the other hand, there has not been much of a summer slowdown for Messrs. Adler and Zeitler. The big automakers often shut down their plants for a period each summer while they retool and allow inventories to run off. “That didn’t happen this year,” said Mr. Adler, who noted that his customers are working right through the summer months producing more cars. ■
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For now, though, demand is strong and Stripmatic is not the only local company in the auto supply chain that wants to invest in its operations. In Medina County, SFS intec also is looking to expand its local plant. The company has not put a price tag on the expansion, but Michael Mullen, SFS intec’s president for North America, said the company is working with state and local officials to more than double employment from the current 73. Like Stripmatic, SFS intec is a stamper for the automotive industry. It makes parts for seat belts, brakes and other automotive systems from its plant here, Mr. Mullen said. Even the Federal Reserve has taken note of how the automotive industry just doesn’t rust the way it used to — or at least it has not so far
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16 HOW HAS RECRUITING CHANGED IN DIGITAL AGE?
HIGHER ED
IMPROVING UPON INNOVATIONS Ohio schools hold their own in research, but when it comes to commercializing ideas, they lag the nation; now, they’re looking for a fix By CHUCK SODER csoder@crain.com
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niversities in Northeast Ohio have a common goal: They want to create jobs and revenue by turning more of their ideas into products. That’s easier said than done. Over the past decade, a few local schools — Case Western Reserve University, the University of Akron and Kent State University — have made varying degrees of progress toward that end, even though the revenue they bring in by licensing their technologies can vary wildly from year to year. Two other schools — Cleveland State University and Northeast Ohio Medical University — have
Colleges considering best ways to prep grads Schools work to balance broad-based education goals, market realities By TIMOTHY MAGAW tmagaw@crain.com
yet to build much momentum related to technology transfer, the process of licensing out technologies to private companies. Of course, they all want to do more, but how? The Ohio Board of Regents has provided a long list of suggestions: Last month, the board’s Technology Transfer and Commercialization Task Force issued an 89-page report describing what Ohio needs to do to create more high-tech jobs. Much of the report focused on how Ohio’s public colleges can become more innovative and improve the tech transfer process. Compared to schools in other states, schools in Ohio conduct a lot of research, but they are mediocre when it comes to turning that knowledge into products, according to studies cited by the task force.
R
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eacting to a job market that has been paralyzing for many grads, Northeast Ohio’s four-year colleges and universities have launched several academic programs they believe have the loftiest job prospects for their students. Baldwin Wallace University, for instance, recently started an accelerated bachelor’s degree in nursing in response to the national nursing shortage. Kent State University will offer a bachelor’s degree in insurance studies to meet the growing demand for insurance professionals. And the University of Akron established the first undergraduate degree in corrosion and reliability engineering to meet demand for professionals trained in “rust busting.” At the same time, schools are struggling with how to handle those academic programs anchored in fields with floundering, or at least tepid, job prospects. Case Western Reserve and Cleveland State universities scaled back law school admissions as applications continue to drop amid a lousy job market for attorneys, as Crain’s reported in June. As such, the classic debate has reared its head of whether four-year institutions should prepare students for certain trades or should adhere to the traditional model of providing a well-rounded, liberal arts education. “The struggle is with parents and the general public who are rightly concerned about putting meat on the table,” said Kent State University provost Todd Diacon. “At the same time, we need to prepare students with skills that will help them in jobs that don’t exist yet.” Shuttering academic programs rooted in fields with poor job prospects doesn’t occur frequently, according to higher education insiders. Instead, the decision largely is based on enrollment figures and the quality of its academic offerings. Instead, programs attempt to remain nimble to prepare grads with the skills needed to get them hired, even if it’s not in their chosen field, according to Michael Mauldin, chair of the theater and dance department at Cleveland State University. Dr. Mauldin admits to parents and students that dancing and acting jobs aren’t the easiest to come by, though that hasn’t threatSee PREPARE Page 15
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University presses face challenges of publishing industry By TIMOTHY MAGAW tmagaw@crain.com
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he publishing arms, or presses, at a handful of local colleges and universities traditionally have been vehicles for academics to publish their work in printed form. But like the rest of the publishing industry, the digital revolution that has impacted the big-name book publishers over the last decade steadily is making its way into the higher education realm. While e-books, for instance, have become a big piece of the commercial publishing equation, their impact on the academic press has been more measured. Still, the environment rapidly is changing, and academic publishing units are scrambling to keep up with the high-tech times as they
continue to diversify their revenue streams amid mounting budget pressures. “Before, we had this view that we had this container called a book, and that’s where we put all our content,” said Thomas Bacher, director at the University of Akron Press. “That’s changed completely now.” Less than 10% of the University of Akron Press’ total sales are in e-books, but that hasn’t slowed the small publishing outfit from exploring ways to best capitalize on burgeoning electronic formats. This fall, it will offer seminars for University of Akron faculty on copyright retention and new technologies in the e-book and other digital markets. It also is developing digital textbooks for student use. The Kent State University Press — the largest in the region —
converted many of its older titles that have sold consistently over the years into e-books, according to the press’ director, Will Underwood. A drastic shift to the e-book platform hasn’t happened in the academic world, Mr. Underwood noted, given the difficulty in navigating the murky waters of copyright law. Fiction titles, for instance, typically have one author and therefore one rights holder, while works published by academic presses regularly have multiple contributors. David Young, one of the editors of Oberlin College Press, said the small publishing house he helps run has toyed with the idea of converting its backlist to e-books, which could help with storage concerns. “Clearly, between e-books and print-on-demand, publishers can keep titles in print without the problems that storing books caused
Innovations: Equity model works at UA continued from PAGE 13
Among other things, the report suggested that colleges should expose more students to entrepreneurship, do more to market faculty innovations to businesses, and recognize inventive faculty members, especially when they are up for tenure or promotions. The Ohio Board of Regents can begin working to implement some of the recommendations, many of which are broad ideas. Other changes would require action from individual colleges and, in some
cases, lawmakers. While the report has yet to drive the five universities that spoke with Crain’s to make big changes, one official — Mike Sherman, who is senior vice president, provost and chief operating officer at the University of Akron — said he expects colleges across the state will review how they promote faculty because of that recommendation. Plus, the schools on their own are making several changes in an effort to improve commercialization and tech transfer efforts.
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Up and downs The most active college-based tech transfer office in Northeast Ohio is at Case Western Reserve, which participated in the task force even though it’s a private college. Over the past 10 years, the school greatly has increased the number of licensing transactions it does and the amount of revenue it collects. Last year, however, the university’s licensing revenue fell drastically because of the expiration of a patent for one invention, a DNA sequence used in the production of several drugs, said Joe Jankowski, associate vice president for technology management at CWRU. That invention for the past several years annually produced about $10 million in royalties, Mr. Jankowski said. The university tech transfer office brought in between $13.3 million and $16.3 million in licensing revenue from 2008 through 2010, according to information from the Association for University Technology Managers in Deerfield, Ill. The variation in revenue won’t affect directly the tech transfer office, though: Licensing revenue isn’t used to fund the office’s budget, which is important given how hit or miss that revenue can be, said Robert Miller, who last October was named vice president for research at CWRU — a job that, among other duties, involves overseeing the university’s tech transfer operations. Since Dr. Miller took the position, he has focused largely on “building relationships, not transactions.” Toward that goal, the university has developed a website that allows faculty to see at what point their inventions are in the commercialization process. The school also has formed a committee tasked with building better relationships with companies that might license technologies, conduct research with the university or hire CWRU graduates. And it has hired three people focused on helping medical school and engineering faculty come up with marketable ideas.
Making it work Like CWRU, Kent State’s tech
because places charge for that,” said Mr. Young, whose press largely publishes poetry. “I’m not against e-books. I think they can enhance the possibilities.”
The next chapter Given the prevailing financial pressures on colleges and universities, the presses have been forced to diversify their revenue streams as well as focus on the products in which they have some expertise. The University of Akron Press is concentrating its efforts on publishing titles with a regional emphasis. For example, the group this fall will publish a book about the history of the West Side Market — the lauded public market on Cleveland’s West Side that celebrates its 100-year anniversary this year. Kent State University Press, on
transfer office is working under relatively new leadership and is making a few changes. Last summer, Grant McGimpsey was named Kent State’s vice president of technology and sponsored programs, replacing John West, who stepped down in 2010 to return to the faculty full time. One of Dr. McGimpsey’s goals is to bring in more public money that can help broaden the school’s research base. Much of the research that Kent State commercializes today is related to liquid crystals. Dr. McGimpsey also plans to start giving better deals to companies that want to license technology from the university. For instance, he doesn’t think schools should make startups that license technologies pay up-front fees. He’d rather the school make lots of easier deals and get paid only if a product is a big success. “I want people to say, ‘Kent State — those are the guys who helped start company X that employs 3,000 people,’” he said. So don’t expect a big boost in Kent State’s licensing revenue. The university brought in about $400,000 in 2010, according to the most recent figures available from the Association for University Technology Managers. That’s a fairly typical number for the school. By contrast, the University of Akron a few years ago saw its licensing revenue go way up, hitting an unusually high peak of $6 million in 2006 before falling to $202,000 in 2010, a 10-year low. Over the course of the past decade, though, the university has done well, said George Newkome, president and CEO of the University of Akron Research Foundation, a nonprofit the university uses to commercialize its inventions. Akron over the past 10 years has produced more startups and invention disclosures per research dollar spent than any other school that submits data to the Association for University Technology Managers, according to the school’s own analysis of association data. By that measure, the school ranked second in patents received and third in licensing income. Dr. Newkome said he wished the task force would have recommended that public colleges con-
the other hand, has dabbled outside the publishing arena. For example, it sold collectible dish plates to commemorate the sesquicentennial of the Civil War, though Mr. Underwood noted, “Our best bet is to stick with what we do best: books.” Beyond the academic titles, the Kent State press has dabbled in titles that might be of interest to the general public rather than just academic types. Among them is a title called “Born to Lose” — a true crime book that chronicled the forays of Pittsburgh thug Stanley B. Hoss. “We are feeling the compulsion or necessity of bringing in more revenue through sales,” Mr. Underwood said. “It’s really just focused our minds more keenly on publishing the best academic books in the areas which we publish.” ■
sider creating a nonprofit such as Akron’s research foundation, which unlike the university is allowed by law to take equity in startups. He also wanted the report to say more about how schools can train people to do tech transfer work. “The report was really silent on some of the more innovative ways of going about doing things,” said Dr. Newkome, who also is vice president for research and dean of the university’s graduate school.
Getting the ball rolling Northeast Ohio Medical University, or NEOMED, traditionally hasn’t done much in the way of tech transfer, though the school did work with Kent State to launch Crystal Diagnostics. The pathogen detection technology company has laboratories on the NEOMED campus and at a manufacturing plant in Kent State’s Centennial Research Park. NEOMED aims to double the amount of research it conducts over the next five years. The school also wants more startups to establish offices at the university and to work with its faculty, said Walter Horton, vice president for research and dean of graduate studies at the school. Like NEOMED, Cleveland State rarely commercializes new technology, though a Cleveland State spinout, industrial software firm LineStream Technologies, did raise $5 million in venture capital last March. The university has been trying to create momentum. Cleveland State has held a few seminars over the last year designed to inform faculty on how the school can help them convert ideas into products, and has taken a few steps to recognize inventors among its faculty, said Leonard Young, who is director of the university’s tech transfer office. Cleveland State faculty submit between seven and 10 invention disclosures per year. By comparison, faculty at CWRU submitted 216 in 2010. But Mr. Young said he expects Cleveland State’s figure to start rising. “We are finally at a point where we have the support in place,” said Mr. Young, who also is associate general counsel for the university. “Now it’s a matter of marketing the department to faculty and staff.” ■
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Prepare: Programs try to adapt continued from PAGE 13
ened the future of his program. He added that it’s difficult for any academic program to guarantee a job upon graduation. The hope is to prepare students for professional auditions but also ground them in skills that could land those students jobs outside the entertainment industry. “ ... The fundamental and traditional purpose of the university is to educate someone and make them a better critical thinker and a more valuable citizen,� he said. Kent State, for one, has a lauded journalism program that’s witnessed marked enrollment growth in recent years. The university invested roughly $21 million in a renovated space for the program despite lukewarm job prospects for future journalists amid an era of cutbacks at newspapers and TV stations across the country. Dr. Diacon said university administrators wouldn’t consider shuttering the journalism program because of its booming enrollment, but rather want to ensure the program’s faculty continues to prepare “students to succeed in a rapidly changing world.� Thor Wasbotten, the new director of Kent State’s journalism school, said he’s already fielded questions about job prospects in a field some say is dying. “I tell them — both prospective
students and current students — that a lot of this is about personal branding and making sure you develop the skill set you need to be competitive in the marketplace,â€? Mr. Wasbotten said. Shawn Brown, associate director of the Northeast Ohio Council on Higher Education, a group that links the business and education communities, said employers largely tend to evaluate graduates on their skills rather than the degrees to their names. Moreover, he’s seen more colleges and universities require students to complete an internship or co-op before graduating. Joe Protopapa, executive director of the career center at the University of Akron, said his office often helps students conduct simultaneous job searches — one for a job in their field of study, though the job prospects might be slim, and another that would at least pay the bills. Still, framing the importance of a broad, liberal arts education to parents and students can be a challenge even if that’s what employers want, according to Guy Farish, interim dean of academic affairs at Baldwin Wallace. “They’re concerned about the job prospects, and we deal with that regularly as a school that’s had a traditional liberal arts and sciences background for many years,â€? Dr. Farish said. â–
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Recruiting goes high-tech: texts, social media and more By GINGER CHRIST gchrist@crain.com
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s a new class prepares to head off to the region’s college campuses, admissions officials are working to refine the ways they attract those students and find their footing in the changing world of college recruitment. At Baldwin Wallace University, for example, staffers have in the past taken a two-pronged approach to student recruitment. Follow-up text messages are sent to gauge students’ interest and to answer any lingering questions. Of course, texting only is one part of a growing web of tech-based recruitment efforts employed by higher education institutions. Across the region, iPads, social media and other technologies are being used to attract students. “The whole notion of the personal touch and relationship building and kind of acknowledging a student on an individual basis hasn’t been removed,” said Susan Dileno, vice president for enrollment management for Baldwin Wallace. “But at the same time, we’ve supplemented our activity a bit with technology in ways that I think help us identify students better.” While Baldwin Wallace still participates in college fairs, visits high schools and interviews students, the college now advertises on Facebook, equips the admissions staff with iPads and maintains a presence on Facebook, Twitter and YouTube.
“I think what we want to do in the social media is certainly portray the personality and core values that we have,” Ms. Dileno said. Nancy Dellavecchia, director of admissions for Kent State University, said technology has further opened lines of communication between potential students and universities. “I think technology has also allowed us to have two-way conversations with people,” Ms. Dellavecchia said. Students are more inclined to respond to an email than initiate a conversation after receiving a letter in the mailbox, she said. The university still mails important pieces of information, but also emails students supplemental information.
Focus on the www When Robert Borden first started working in college admissions, he didn’t carry a cell phone. Now, 20 years later, Mr. Borden, executive director of enrollment and financial aid for the Cleveland Institute of Art, totes around an iPad and an iPhone and works remotely while at college fairs out of state. Applicants for CIA now submit their applications and art portfolios online, rather than mailing slides, CDs and DVDs of their artwork. But the biggest change is the weight placed on an institution’s website. Mr. Borden said many college searches now are entirely web-based, with some students, who he referred to as “stealth applicants,” deciding whether to apply without ever visiting campus.
“You’ll have never even heard of a student and an application arrives,” Mr. Borden said. “The other part of that is there are also students coming online and looking at you and making the decision they’re not interested.” Thus, Mr. Borden and other admissions workers are pouring a lot of time into their websites. Art schools, in particular, try to keep fresh examples of student artwork on the website to entice potential applicants to return to the site, Mr. Borden said. CIA also posts videos and stories of students and faculty and their work. “For art students, it’s like candy. If they know it’s going to change, they’ll keep coming back,” Mr. Borden said. CIA employs the same concept at college fairs. The staff puts iPads on display running slideshows of student artwork. The work initially helps draw in students but then the iPad can be used as a tool to show information about a specific interest or to answer questions. Cleveland State University in 2008 even scrapped its view book — the college version of an annual report — in favor of enhancing its website. “The notion of printing something and then direct mailing it has been replaced by email and mobile stuff and social media,” said Rob Spademan, CSU assistant vice president for student recruitment.
Covering their bases CSU, for one, has reduced the volume of mail it sends students by 50% to 70% in the past five
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years, Mr. Spademan said. The university now sends postcards with pertinent information to keep in touch with parents; its communications with students exist largely on the web. The school uses Pinterest, YouTube, Flickr, Facebook and Twitter. “I think the key to social media today is that you have to be everywhere,” Mr. Spademan said. However, in the race to reach students on every platform, some efforts are short-lived. Fads like personalized URLs, QR codes and texting contests have fallen by the wayside, Mr. Spademan said. “This technology is a moving target but it is one you have to use every possibility with because of the audience,” he said. The fear of missing a potential pool of students is what has many institutions doubling their efforts.
“I think many colleges and universities haven’t replaced what they’re doing on the personal level with the technology so we find ourselves doing more of it without ever dropping anything,” Ms. Dileno said.
More room on the bookshelf During college admissions season, reams of paper used to fill the guidance department at Mentor Public Schools. But not anymore. The digitization of the admissions process and the integration of new technology into recruiting efforts have changed the way colleges, guidance counselors and students interact. And Dan Litzinger, coordinator of Mentor’s guidance department, which annually oversees 700 seniors, is welcoming the change. “We have a lot more room on our bookshelves,” he said. ■
Health care overhaul to affect student programs By TIMOTHY MAGAW tmagaw@crain.com
T
he federal health care overhaul this fall may offer a mixed bag for students enrolled in their colleges’ insurance offerings as their benefits are expected to expand widely, though they may be forced to pick up more of the cost. “There’s no doubt that our plan is a better plan today than it was four months ago,” said Matt Beaven, the University of Akron’s risk manager who handles its student health insurance plan. “The question is whether that is benefitting the students, though, because of the price increase.” Forcing everyone — including the young and healthy, such as college students — to pick up coverage is a key piece of the Patient Protection and Affordable Care Act, as the hope is to spread health care costs to a larger pool of individuals and ultimately bring down the cost of care. Northeast Ohio’s colleges and universities each provide their students with the opportunity to buy insurance if they haven’t bought plans on their own or stuck with their parents’ plans. The options, university officials say, tend to be favored among graduate and international students. This spring, the U.S. Department of Health & Human Services issued its final ruling that explained how student health insurance plans fit into the overall health care reform law. For instance, student health plans cannot have annual limits of less than $100,000 for the 2012-13 academic year. By 2014, when the law is fully implemented, annual coverage limits on essential health benefits will be prohibited. Also, student health plans will be required to offer comprehensive preventive care benefits, which would include sexually transmitted disease testing, physicals and
immunizations. The law also will ramp up students’ prescription drug benefits significantly. “Our plan really changed in ways that benefit students,” said Dr. Angela DeJulius, Kent State University’s chief physician. “Their coverage is better.” Because of the increase in benefits, Mr. Beaven at the University of Akron said students’ annual premiums will inch upward about $200 total for each student. He noted the university doesn’t profit from the sale of insurance to students, but rather works with a broker to put together the offering. “We don’t subsidize the plan and don’t benefit from the plan,” he said. “It’s purely a service to the student.” Eileen Guttman, who supervises Cleveland State University’s health center, said CSU purchased its student health insurance plan through a consortium along with five other schools that somewhat limited large premium hikes for students. Ms. Guttman noted that nationwide enrollment in college-provided insurance offerings has declined roughly 3% to 5%, which likely can be attributed to the provision in the health care overhaul allowing young people to remain on their parents’ plans until age 26. The move hasn’t dramatically affected enrollment in Cleveland State’s plan, however, as the college’s average student age hovers at 27. Kent State, however, has seen a slight decline in enrollment in its benefits offerings, which Dr. DeJulius said could be attributed to both the rising cost of higher education as well as the law’s provision allowing students to remain on their parents’ plans. “We can speculate that slight drop is because young adults can stay on their parents’ policies longer, but now, of course, with the individual mandate that could increase enrollment,” she said. “There’s no way to say.” ■
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SMALL BUSINESS INNOVATION RESEARCH (SBIR) AWARDS RANKED BY AWARD AMOUNT [1] Name This Address year Phone/Website
Award amount
Agency
Project phase
Project title
Project description
1
Novelmed Therapeutics Inc. 11000 Cedar Ave., Cleveland 44106 www.novelmed.com
1,916,919
HHS
2
Disease Modifying Biologics for Rheumatoid Arthritis
To further develop YalcioMab as a potent anti-arthritic agent
2
Great Lakes NeuroTechnologies 10055 Sweet Valley Drive, Valley View 44125 (216) 361-5410/http://glneurotech.com
1,691,538
HHS
2
ETSense: Adaptive Portable Essential Tremor Monitor
To design, implement, and clinically assess ETSense, an adaptive, compact, portable essential tremor (ET) monitor for optimizing therapeutic interventions
3
Novelmed Therapeutics Inc. 11000 Cedar Ave., Cleveland 44106 www.novelmed.com
1,352,967
HHS
2
Controlling Inflammation Due to Cardiac Devices
The development of technologies that will improve the manufacturing of engineered human tissues
4
Novelmed Therapeutics Inc. 11000 Cedar Ave., Cleveland 44106 www.novelmed.com
1,194,729
HHS
2
Inhibition of Cardiac Device Induced Cellular Dysfunction in Pigs
To test a target-specific and highly selective monoclonal antibody that blocks AP activation, cellular activation, platelet dysfunction, and blood loss in a pig model of cardiopulmonary bypass
5
Cleveland Medical Devices Inc. 4415 Euclid Ave., Cleveland 44103 (216) 791-6720/www.clevemed.com
1,041,520
HHS
2
Self Abrading Rapidly Applied (SARA) Electrode
To refine the development of a new class of electroencephalogram (EEG) electrode that can be rapidly applied with technical ease, minimizing the amount of EEG procedural supplies
6
Phycal LLC 51 Alpha Park, Highland Heights 44143-2202 (440) 460-2477/www.phycal.com
1,000,000
DOE
2
Solid Phase Lipid Extraction of Algal Oil
This project uses solid phase, hydrophobized silica resin to improve extraction of algal lipids
7
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/http://euclidtechlabs.com
998,868
DOE
2
Development Of A 12 GHz Dielectric-Based Wakefield Power Extractor For Potential Clic Applications
A research program to study the possibility to replace the current metal based PETS with its dielectric counterpart, which will significantly reduce the cost if it succeeds
8
ABS Materials Inc. 1909 Old Mansfield Road, Wooster 44691 (330) 234-7661/www.absmaterials.com
978,821
DOE
2
Removal of Dissolved Organics From Flow Back Waters Using Swellable Organosilica
To convert pilot scale systems to treat flow back water to commercial-scale manufactured units. In Phase II, the 60 gpm pilot scale system will be enhanced and tested at several sites in North America
9
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
963,238
DOE
2
Development of a Dielectric-Based Short RF Pulse Two Beam Accelerator Prototype Module
All engineering issues and their solutions in the process of this project will provide the basis of a practical dielectric based accelerator or power extractor in a practical dielectric-based two-beam accelerator
10
Invenio Therapeutics Inc. 11000 Cedar Ave., Suite 285, Cleveland 44106-3007
853,202
HHS
2
Natural product-derived differentiation agents for AML
To perform preclinical efficacy and toxicity studies in order to develop our optimized form of all trans-retinoic acid (ATRA) into a clinical agent
11
Monarch Teaching Technology Inc. 20600 Chagrin Blvd., Suite 703, Shaker Heights 44118 (800) 593-1934/www.monarchtt.com
721,395
HHS
2
Digital Interactive Scene Program for Language in Autism (DISPL-A)
To give teachers the ability, via a web-based authoring environment, to create highly interactive lessons incorporating custom-animated scenes which will help ASD students improve their skills
12
Thermalin Diabetes Inc. 10265 Carnegie Ave., Cleveland 44106 www.thermalin.com
622,539
HHS
1
Optimized Receptor Binding Profile in an Ultra- To develop an ultra-fast, zinc-free insulin analog formulation for the Stable, Ultra-Rapid-Acting Insulin treatment of diabetes mellitus
13
Powdermet Inc. 24112 Rockwell Drive, Euclid 44117-1252 (216) 404-0053/www.powdermetinc.com
599,999
NASA
2
Improved Metal-Polymeric Laminate Radiation Shielding
To provide radiation modeling and testing for new structural radiation solutions as well as a physical property database for using them in space habitats
14
N&R Engineering 6659 Pearl Road, Suite 201, Parma Heights 44130-3821 (440) 845-7020/www.nrengineering.com
599,694
NASA
2
Design Concepts for Cooled Ceramic Matrix Composite Turbine Vanes
To demonstrate that the higher temperature capabilities of Ceramic Matrix Composites (CMC) can be fully utilized to reduce emissions and improve fuel consumption in gas turbine engines
15
ABS Materials Inc. 1909 Old Mansfield Road, Wooster 44691-9359 (330) 234-7661/www.absmaterials.com
498,222
NSF
2
Produced Water Treatment Using Animated Organosilicas That Rapidly and Reversibly Swell
To develop commercial systems to economically purify produced water streams
16
Aeromics LLC 11000 Cedar Ave., Suite 265, Cleveland 44106-3069
492,050
HHS
1
Scale-Up from Pilot To High-Throughput Screen for Inhibitors of Aquaporin-4
To develop a drug for the treatment of cerebral edema
17
Neoproteomics Inc. 11000 Cedar Ave., Suite 100, Cleveland 44106-3052 www.neoproteomics.net
299,990
HHS
1
To develop and deliver an integrated suite of software tools for quantitative DiseaseNet Finder: A Systems Medicine network analysis that can drive practical translational research and Toolkit for Clinical and Translational Research PPI validation
18
Cleveland Medical Devices Inc. 4415 Euclid Ave., Cleveland 44113 (216) 791-6720/www.clevelandmed.com
284,156
HHS
1
Treatment of Sleep Apnea using a Positive Airway Pressure Rebreathing Modulator
To develop methods to use carbon dioxide exhaled by the patient to provide stability of breathing patterns during sleep
19
Great Lakes Neurotechnologies 10055 Sweet Valley Drive, Valley View 44125 (216) 361-5410/http://glneurotech.com
256,039
HHS
1
Kinesia-HS: High Sensitivity System for Facilitating Parkinson's Drug Trials
To design, build, and clinically assess Kinesia-HS, an integrated solution to facilitate pharmaceutical development of neuroprotective interventions targeted to Parkinson's disease
20
Cleveland Medical Devices Inc. 4415 Euclid Ave., Cleveland 44103 (216) 791-6720 /www.clevemed.com
236,584
HHS
1
Kinesia-D: Ambulatory Parkinson's Disease Dyskinesia Monitor for Drug Therapy Tit
To design, build, and clinically assess Kinesia-D, a compact, portable, wireless movement disorder system with capabilities to detect and quantify the severity of irregular rapid involuntary movements in Parkinson's disease
21
Cleveland Leukemia Therapeutics LLC 11000 Cedar Ave., Cleveland 44106-3069
199,833
HHS
1
Development of a Targeted Therapy for Acute To test the clinical utility of all trans-retinoic acid (ATRA) for AML using Myeloid Leukemia mouse model systems
22
Precision Made Products LLC 1126 Industrial Parkway, Brunswick 44212-5606 (330) 220-5800/www.pmp-tech.com
150,000
NSF
1
Development of metal-A-to-metal-A joint technology for an advanced metal injection molding (MIM) process
To develop a novel green-state joining process
23
Powdermet Inc. 24112 Rockwell Drive, Euclid 44117 (216) 404-0053/www.powdermetinc.com
149,999
NSF
1
Nano-Aluminum Forgings for Lightweight Transportation Applications
To evaluate and demonstrate the feasibility of using low nano-aluminum forgings in connecting rod and wheel-based applications
24
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
149,987
DOE
1
High Gradient Test of a Standing Wave Dielectric Loaded Accelerating Structure
To develop and conduct high gradient rf tests of a Standing Wave (SW) Dielectric Loaded Accelerating (DLA) structure
25
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
149,966
DOE
1
Enhanced Transformer Ratio using a Double Triangular Beam Generated using The Emittance Exchange Technique
To prepare the high transformer ratio experiment at AWA using the new proposed double triangular bunch
26
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
149,927
DOE
1
Chirped Electron Bunch Energy Compensation A prototype structure will be constructed and bench tested. Plans for an for an X-Ray Light Source experiment at ANL/APS in phase II will be finalized
27
LXD 7630 First Place, Cleveland 44146-6713 www.lxdinc.com
149,900
NSF
1
Liquid Crystal-based Next Generation e-paper Devices by Micro-engineered Surfaces
To develop low power consumption bistable liquid crystal display (LCD)
28
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
149,719
DOE
1
A New Conical Half-Wave Superconducting Cavity
This concept for superconducting structures will permit construction of the low energy accelerator for Project X or other high intensity machines
29
Akron Air Materials LLC 411 Wolf Ledges Parkway, Suite 105, Akron 44311-1051
149,682
NSF
1
Development of Integrated Oil Debris Sensors for Machinery Fault Detection and To develop an innovative integrated wear debris sensor Conditioning Monitoring
30
Euclid Techlabs LLC 5900 Harper Road, Suite 102, Solon 44139-1866 (440) 519-0410/www.euclidtechlabs.com
149,571
DOE
1
High Power Rf Testing Of A 3-Cell To develop a new experimental device - the Superconducting Traveling Wave Superconducting Traveling Wave Accelerating Accelerator (STWA), a technology that may prove of crucial importance to Structure the ILC
Source: Information is from www.sbir.gov. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Visit www.sbir.gov for additional information. Awards included on this list are from 2011. HHS-Dept. of Health and Human Services, DOE-Dept. of Energy, NSF-National Science Foundation.
RESEARCHED BY Deborah W. Hillyer
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Crowd: About 30 shows on board so far; center 60% complete continued from PAGE 3
ground convention center, everything that makes up this exhibit hall above the subfloor will be new.
The complex is comprised of three key components: the exhibition hall under the city’s historic Mall; the four-story medical mart building at Ontario Street and St. Clair Avenue; and the 32,000-square-foot Grand Ballroom, what will be the largest such space in Cleveland. Tucked around those features is 90,000 square feet of meeting space that can be broken up into as many as 30 meeting rooms. When completed, the exhibition hall and ballroom will be invisible underneath a landscaped Mall. The medical mart is the feature that will distinguish Cleveland as a convention destination, included to attract medical and health care meetings and trade shows, a growing segment of the convention business. It originally was conceived as a place where health care vendors would lease space and show off their latest CT scanners, micro-surgery tools or even hospital beds. But feedback from sales calls suggested a different approach. Now, MMPI is offering tenants a role in collaborative, multivendor areas — an operating room of the future, for example, or a prototype in-hospital pharmacy. MMPI is not disclosing specific tenants yet, but in an email last week Mr. Johnson said MMPI has 20 signed contracts accounting for 46,000 square feet of leased space, or 40% of the available showroom
Seeing the light
A rendering of what the inside of the underconstruction Cleveland convention center and medical mart will look like upon completion. MMPI
space in the building. The medical mart also includes an 11,000-squarefoot junior ballroom. The convention center’s 12-acre roof almost completely covers the 230,000-square-foot exhibition hall and the ballroom at the north end overlooking Lake Erie.
Here’s a look inside A tour of the convention center gives a sense of the structure’s scale. From the south end looking north to the ballroom’s window wall nearly four football fields away, Mr. Johnson pointed upward, about two football fields away, to where a wall of high-level windows at the Lakeside Avenue entrance
will bring daylight into the underground exhibition hall. “Because the steel is in place you can see where the staircases and escalators will be bringing people down into the hall from Lakeside,” which will be the main entrance to the exhibition floor, Mr. Johnson said. Nearly 30 shows either have signed agreements or made tentative commitments to bring events to the new convention center over its first five years of operation. Last week, MMPI announced the Case Management Society of America will bring 2,000 to the convention center June 17-24, 2014. Since the groundbreaking ceremony Jan. 14, 2011, the design/con-
struction team of Turner Construction Co. and URS Corp. has completed more than 60% of the project, according to the latest report from MMPI to Cuyahoga County Council. By the time construction is completed, more than 2,200 construction workers employed by Turner/ URS and 150 small business subcontractors will have added their efforts to the project. Last week, about 600 construction workers were on the job, many laying down the several layers of material that will make up the grass-covered roof of the convention center, about 40 feet above the floor of the hall. Although the new building is replacing an under-
The old convention center was handicapped by a low ceiling — as low as 17 feet in some places — and a forest of concrete support columns spaced 30 feet apart. It had the feel of a dark basement. Contemporary engineering and construction practices are giving the new center an airier feel and appearance. The ceiling height on the exhibit level will be 30 feet and sophisticated “tree” columns will be 90 feet apart. At the base of the roof, resting on the columns, is a net of steel beams. Solid steel sheeting and a layer of waterproofing material provide the base for a layer of foam insulation. Spread over the foam is several feet of dirt that will be covered with turf. Designers worked hard to bring natural light into the underground complex. At the north end, where workers are roughing in the ballroom, there is the 30-foot high wall of windows. At the south end, where the convention floor takes a westward turn under the medical mart, light from the medical mart atrium will spill onto the trade show floor. The ballroom itself will seat 2,400 for dinner, making it the largest such space in Cleveland. To the west of the ballroom is a catering kitchen that will serve the entire complex. ■
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THEINSIDER
THEWEEK JULY 23 - 29 The big story: The Cleveland Browns on Friday confirmed that they have been approached by a potential investor, Jimmy Haslam, the president of Knoxville, Tenn.-based Pilot Travel Centers. Team owner Randy Lerner said in a statement released by the team that, “In connection with current rumors and press inquiries, I can report that I’ve been approached by Mr. Jimmy Haslam, who is interested in making an investment in the Cleveland Browns.” Mr. Haslam, 55, owns a stake in the Pittsburgh Steelers. It’s unclear whether he’s interested in becoming a majority or minority owner, or whether Mr. Lerner would maintain a stake in the team. No smoking: The Ohio Board of Regents has recommended that the state’s public colleges ban on-campus smoking. Trustees at each school will have the final say in the matter, but regents chairman James Tuschman said the institutions should bar smoking because it’s the “right thing to do.” Cleveland Clinic CEO Toby Cosgrove brought the issue to the regents’ attention; he says college is one of the prime times when people start smoking. Nearly 40% of college-age smokers began smoking or pumped up their habits after starting college, according to the Ohio Department of Health. Heavyweight alliance: The Cleveland Clinic and Ohio State University are planning to work together to commercialize medical technologies. The Clinic’s business development arm, Cleveland Clinic Innovations, has formed an alliance with Ohio State’s Technology Commercialization and Knowledge Transfer Office. Their first joint effort will be to identify 20 high-potential medical technologies and figure out how they can help each other commercialize them. Two initial focus areas will be neurostimulation technologies and health care software. It’s a gas: Chart Industries Inc., a maker of equipment for producing and storing hydrocarbon and industrial gases that’s based in Garfield Heights, reached an agreement to acquire AirSep Corp. for $170 million in cash and up to $10 million in assumed debt. AirSep, of Amherst, N.Y., makes oxygen concentrators for medical use and onsite air separation oxygen generation systems for industrial use.
Buying opportunity: American Greetings Corp.’s board authorized the repurchase of up to $75 million of the company’s Class A common shares, and CEO Zev Weiss indicated that the company might reduce its cash dividend so that it can buy more stock. The company made the move because the stock is undervalued, Mr. Weiss said. The company expects to announce any change to its dividend policy by the company’s second-quarter earnings call in late September, he said. The company currently pays a quarterly dividend of 15 cents a share.
Levy ahoy:
As expected, the board of the Cleveland-Cuyahoga County Port Authority voted to place on the Nov. 6 ballot a replacement tax levy that would raise a property owner’s annual taxes from $3.50 per $100,000 of assessed value to about $20 — a hike of more than 400%. A big unknown is how the levy will fare in Cleveland, where voters will be asked to OK a 15-mill levy for the Cleveland Metropolitan School District.
Running total: A record number of participants in this year’s Rite Aid Cleveland Marathon gave an $18.25 million boost to Cleveland’s economy during this year’s race weekend, May 18-20, according to a study by Pittsburgh-based Forward Analytics. That number represents a 170% jump over the last time officials studied the event’s impact, in 2004.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Yes, but who will give the boss the news? ■ Researchers at the University of Akron and Michigan State University have created a tool to figure out whether your boss is a jerk. The researchers devised the Workplace Arrogance Scale, or WARS, which they say can help identify arrogant bosses before they have a negative impact on their companies’ bottom lines. The University of Akron’s Stanley Silverman, who will present the findings this week at the American Psychological Silverman Association convention in Orlando, said the scale is the first of its kind and can help managers quantify exactly how arrogant someone might be. Does your boss demonstrate different behaviors with subordinates and supervisors? If so, that could mean trouble, said Mr. Silverman, who also is dean of the university’s Summit College and University College. Another question deals with whether the boss discredits others’ ideas during meetings and often makes them look bad. Sure, it might seem obvious, but the WARS scale offers managers another tool to gauge performance, Mr. Silverman said. If arrogance is left unchecked, he said, it could lead to organizational dysfunction and high employee turnover. “You’ll always have people who are arrogant and are successful,” Mr. Silverman
said. However, arrogant bosses often don’t reach their full potential. “They’re very skilled in certain things, but it almost gives them a ceiling.” — Timothy Magaw
Rivals need not seek Skoda’s marketing help ■ Accounting, business and financial advisory firm Skoda Minotti has an interesting new breed of clients paying for its marketing services: other accounting firms. No, Skoda is not helping market its Northeast Ohio competitors. But since last year, it has added to its client roster a halfdozen accounting firms in other markets, for which it’s doing work ranging from branding to web design and development. Hayflich & Steinberg CPAs PLLC in West Virginia hired Skoda a few months ago to handle the marketing involved in a merger that’s transforming it into Hayflich Grigoraci PLLC. Kevin Highlander, a partner of taxation for the firm, explained why. “They just have a greater understanding of our needs right out of the gate,” Mr. Highlander said. “We don’t have to explain our business to them.” Like many of Skoda’s accounting firm clients, Hayflich connected with Skoda’s marketing arm, Strategic Marketing LLC through the BDO Seidman Alliance. The alliance helps regional accounting firms leverage each other for resources. So, would Skoda entertain doing marketing for local competitors? No, said Jonathan Ebenstein, managing director of Strategic
WHAT’S NEW
BEST OF THE BLOGS
THE COMPANY: Flood Wood Care (part of Akzo Nobel Paints), Strongsville THE PRODUCT: OneCoat Waterproofing Finish
Excerpts from recent blog entries on CrainsCleveland.com.
Flood, a producer of specialty wood stains, says its new product is the ultimate time-saver — it protects wood surfaces with one application rather than two. The new stain is made of an oil and water emulsion, “providing superior penetration and protection,” according to the company. The OneCoat finish is designed for use on fences, decks and wood siding. It’s available exclusively at The Home Depot. The OneCoat finish “can be applied hours after wood preparation, not days like most traditional stains,” Flood says. OneCoat Waterproofing Finish also contains “mildewcides,” making the product mildew-resistant, according to the company. It’s available in premixed wood stain colors and a natural color that may be tinted to additional wood-toned options. Clarity of color is gained from the stain’s trans-oxide pigments, Flood says. The stain is “ideal for new or weathered exterior wood that is porous enough to accept a penetrating finish,” according to the company. The oil-based product also “cleans up easily with soap and water.” For information, visit www.flood.com. Send information about new products to managing editor Scott Suttell at ssuttell@crain .com.
Cleveland has strength in numbers ■ A new data set from BizJournals.com showed there are 52,150 businesses in the Cleveland area, the most of any metro area in the state. Cincinnati is a fairly distant No. 2, at 46,143 businesses. Columbus is even further back, at 39,286 businesses. By employees, though, Cleveland is slightly behind Cincinnati, at 870,158 to the Queen City’s 874,547. So that you don’t have to do the math, that means the average company in the Cleveland area has 16.69 employees, while Cincinnati companies, on average, employ 18.95 people. Columbus companies are even larger, with an average of 19.1 employees. Akron shares Cleveland’s smaller-company bent. Its 16,572 companies have 270,260 employees, an average of 16.31 workers.
In his mind, Texas leaves Ohio in the dust ■ Former Cleveland business owner Clint Greenleaf wrote a paean to Texas on CNBC’s website that serves as a reminder of the image Northeast Ohio contends with nationwide as business owners think about where to locate their companies. Mr. Greenleaf moved his company, Greenleaf Book Group, in early 2004 from Cleveland to Austin, Texas. “There were a number of reasons we left Ohio, but the two biggest were that hiring was difficult and the taxes were absurdly high,” he noted. “In Texas we would avoid city, county, regional and state taxes, all of which we paid in Ohio,” according to Mr. Greenleaf.
Marketing. “They’re on their own,” he said. — Michelle Park
Financial aid for Legal Aid ■ While it doesn’t come close to closing a gap caused by years of dropping revenues, a hefty increase in private donations this year to The Legal Aid Society of Cleveland is a welcome development for the nonprofit. Between Jan. 1 and July 1, the local Legal Aid received 376 individual gifts totaling $70,000 — a 35% increase in donors and a 108% jump in dollars donated compared to the like period in 2011, said Melanie A. Shakarian, Legal Aid’s director of development and communications. As Crain’s reported in June 2011, Cleveland’s Legal Aid Society, like those in other cities, is suffering revenue losses because what was once its largest source of operating funds — interest earned on some fees that Ohio attorneys place in trust accounts — has dropped significantly as interest rates have plummeted and stayed historically low. Revenue that the Legal Aid Society of Cleveland receives from IOLTA, or interest on lawyers trust accounts, had fallen by 2011 to $728,000 from $3.38 million in 2007, when interest rates hit their latest peak. “We hope interest rates will improve for IOLTA soon, but in the meantime we are honored by the growing support from our legal community,” Ms. Shakarian said. — Michelle Park
“In Austin we also found an energetic work force with an entrepreneurial spirit. To my surprise and joy, our employees wanted to be measured by the work they did; they were natural capitalists!” So what does Texas have that Cleveland (and Ohio) lacks, as Mr. Greenleaf sees it? In order, he cited Texas’ lack of income taxes, superior infrastructure, its “relatively business-friendly government,” a strong business climate and a high quality of life. “If another state wants to encourage us to move, they’ll have to show us they can provide more for our business, and our people,” he wrote.
VCs see much to like in Buckeye State ■ Ohio is emerging as a hotbed for venture capital. “According to the most recent Ohio Venture Capital Report, venture capital activity in Ohio was up more than 80 percent in 2010, surpassing the national average, which was up only 20 percent,” VentureBeat said. “Due to the strength of angel groups such as the Ohio Tech Angels Fund, East Central Ohio Tech Angel Fund and North Coast Angels — in combination with the success of state programs, including the Ohio Capital Fund and the Ohio Technology Investment Tax Credit program — Ohio saw a significant increase in pre- and seed-stage investments amounting to $183.8 million, up 78%,” according to the story. What makes Ohio so ripe for investment? Four factors, VentureBeat said: untapped investment opportunities, particularly in health care and information technology; attractive deals for the right price; long-term vision; and support for entrepreneurs from organizations such as Cleveland’s JumpStart Inc., TechColumbus and CincyTech.
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Airport U Akron U Beachwood U Hudson U Middleburg Heights U North Olmsted ©2012 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost.
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