VOL. 40, NO. 27
JULY 8 - 14, 2019
Source Lunch
Akron Neighborhood Watch: University Park finds its identity. Page 16
Page 19
MANUFACTURING
BROKEN PIPELINE NEO building boom highlights a shortage of plumbers By Jay Miller jmiller@crain.com @millerjh
By Rachel Abbey McCafferty
C
an’t get a plumber when you need one? Apparently, you’re not the only one. With a construction boom underway in Northeast Ohio, as developers and general contractors start putting together a construction schedule, they are being
rmccafferty@crain.com @ramccafferty
SEE GROWTH, PAGE 18
Photo illustration by Allkindza/iStock
advised that the first thing they should to do is nail down a plumbing contractor. “Just all of the sudden, about a year-and-a-half ago, work went through the roof,” said Thomas Wanner, executive director of the Mechanical and Plumbing Industry Council, which includes the Cleveland Plumbing Contractors’ Association. Wanner said the association has about 50 commercial and industrial members. While plumbing work may be the hardest to schedule, more broadly the industry is struggling with the otherwise-happy problem of a building boom. SEE PLUMBERS, PAGE 18
GOVERNMENT
County microgrid would keep the power on By Kim Palmer kpalmer@crain.com
The most widespread blackout in U.S. history may simply have been the result of some overloaded electrical
Entire contents © 2019 by Crain Communications Inc.
lines and a tree branch or a squirrel on a utility pole. Regardless, for a few days in 2003, more than 50 million people experienced what it was like to live without electricity as one local outage caused a chain reaction throughout the northeastern U.S. and Canada. Significant changes in the national grid since that historical event have prevented a similar outage, but experts warn that aging infrastructure, weather events and cyberthreats pose real dangers to the consistency of the nation’s utilities. Enter the proposed Cleveland microgrid project: a redundant power grid that would be available to a specific four-square-mile area in and around downtown Cleveland. SEE MICROGRID, PAGE 18
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Largest law firms by local attorneys Page 15
CONSTRUCTION
Growth continues — but it’s sluggish Economists and others watching the manufacturing industry predict growth will continue in the second half of 2019, but they expect that growth to be sluggish. Manufacturers are facing a tough trade environment and a tight labor market, though consumer demand is still expected to be strong. Expectations for manufacturing for the second half of 2019 are “uninspiring,” said Sarah House, a senior economist at Wells Fargo Securities. Global trade tensions are a big factor, which House doesn’t expect to see resolved or escalated any time soon. Overall uncertainty, weak foreign demand and the strong dollar are also contributing to slower rates of growth for manufacturers. In addition, manufacturers will have to watch import prices, which have been down this year, in part because of the stronger dollar, said Kurt Rankin, an economist for PNC Financial Services Group. Tariffs could make imports more expensive for consumers, but the stronger dollar can offset those gains for domestic manufacturers. Ultimately, financial conditions and business owner or CEO confidence has been slowing, said Tom Jalics, director of asset allocation for Fifth Third Private Bank. “Certainly, we believe the trade-war rhetoric has put global manufacturing, global business owners on alert,” Jalics said. Instead of investing in their businesses, decision-makers are taking a “wait-and-see approach” to the U.S.-China trade disputes, Jalics said. He expects growth in the second half of 2019, but on a slower scale.
The List
CLEVELAND BUSINESS
Kevin Clayton, Cavaliers VP of diversity, inclusion
Blackout protection A proposed microgrid, bounded by E. 55th St., Carnegie Avenue, the Cuyahoga River and Lake Erie, would offer redundant power in the event of a failure of the traditional power grid.
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