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CRAINSCLEVELAND.COM I AUGUST 30, 2021

WORKERS OPT OUT

Many people are realizing they don’t want to be tied to offices

GUS CHAN FOR CRAIN’S CLEVELAND BUSINESS

BY MICHELLE JARBOE Faced with returning to the office this summer, Kris Balestra bowed out.

She retired from her job in education consulting and began focusing, instead, on turning her interest in landscape design into a home-based business.

“I’m outside. I don’t have to deal with the public. I get to choose who I work with,” said Balestra, 67, who lives in Warrensville Heights.

She’s far from alone. Americans are quitting their jobs at a record pace.

Nearly 3.9 million people left their positions Balestra in June, according to preliminary figures from the U.S. Department of Labor. That’s 2.7% of workers, up from a resignation rate of 1.9% a year before.

Some employees, like Balestra, are worried about the continued spread of COVID-19. Others are chasing new careers, higher pay or better work-life balance. And many workers are realizing that they don’t want to be tied to offices or cubicles.

See WORKERS on Page 20 Five-year-old Jameson Tyus stops into his mother Brooke’s office at the end of her business day. Tyus, a mother of three, left her associate position at the Benesch law firm in May. She landed a fully remote gig as an in-house lawyer for Wendy’s. “My quality of life has improved immensely,” Tyus said.

Fahrenheit plans move to downtown Despite inventory crunch, Restaurant is set to revive former John Q’s space at 55 Public Square

it’s a good time to sell cars

BY MICHELLE JARBOE

BY RACHEL ABBEY MCCAFFERTY

A once-venerable dining location in the heart of downtown Cleveland will be revived after almost a decade of vacancy — with a notable name on the marquee.

Chef Rocco Whalen plans to move Fahrenheit, his long-running Tremont restaurant, to the central business district. He recently signed a lease on the former John Q’s Steakhouse at the base of the 55 Public Square office complex, which is un-

dergoing an $80 million makeover.

The John Q’s space has been empty since mid-2013, despite a swell of investments in and around Public Square. Now, with fresh ownership at 55 Public Square and the Sherwin-Williams Co. planning a new headquarters across the street, Whalen sees an opportunity to turn an eyesore into an attraction.

“We’ve thought about this for a long time,” Whalen said during a recent meeting with his future landlords, Doug Price and Karen

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Paganini of the K&D Group.

The new Fahrenheit will be three times the size of Whalen’s almost20-year-old venue on Professor Avenue. Renderings show a two-story restaurant with a roof deck and a large patio facing Public Square.

The 12,324-square-foot footprint will include event areas, with enough room to seat 120 guests or accommodate a standing crowd of 200, Whalen said.

See FAHRENHEIT on Page 23

THE

New car inventory has been a problem all year, worsened by the chip shortage that arose early in 2021, said Joey Huang, a dentist by trade who has been an auto dealer for more than two decades and is president of Great Lakes Auto Network. Huang operates five dealerships in Ohio under the Great Lakes name, selling brands including Honda, Hyundai and Buick.

Those stores have seen inventory

LAND SCAPE

shrink. Huang gave the example of his Honda store in Akron. The dealership usually carries 450 to 500 new vehicles. As of Aug. 24, he said, inventory there was down to under 30.

“We’re located right on the highway, right on Route 8. My lot expands up a hill, and all you really see is pavement now,” Huang said.

“It’s something like we’ve never seen before.”

See CARS on Page 23

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SPORTS BUSINESS

CSU’s athletic plan targets alumni, esports, marketing Continued success of men’s basketball also is crucial for department that’s heavily reliant on school funds

BY KEVIN KLEPS

Cleveland State University director of athletics Scott Garrett got started on a strategic plan shortly after he was hired in April 2019.

Questionnaires filled out by each staff member, followed by interviews with every employee and coach in the department, helped to shape the plan.

Then the pandemic hit, and CSU shifted its focus to, in the words of its AD, just getting “through the year.”

COVID-19 is, to put it mildly, still a significant concern, but the Vikings have returned to some semblance of normal, with students back on campus and the athletic department recently holding in-person orientation for its 340-plus athletes for the first time in a couple of years.

For CSU, the new school year signified the right time to announce its long-range plan for the athletic department — a group that has been stabilized by the additions of Garrett and men’s basketball coach Dennis Gates, but, like its peers, is struggling with the many impacts of the pandemic.

The plan has five key goals: “enhance the mission,” “attract championship-caliber Vikings,” “develop unprecedented community support,” “share our accomplishments” and “embrace compliance.” Each goal has four to seven strategies, and each initiative includes several plans of action.

Some of the work will piggyback on the priorities of CSU 2.0, the “growth-oriented plan” that the university released in March. The majority of the initiatives, though, have areas of need that preceded the arrivals of Garrett, Gates and university president Harlan Sands (a 2018 hire).

The approach, Garrett said, is “student-centric.” Alumni are a major focus, and budget cuts, as expected, are key sticking points.

men’s basketball have surpassed $100,000 for the 2021-22 season.

That’s the largest tally for the program since 2015-16, and is viewed as even more encouraging because the benchmark was reached before the nonconference schedule, which includes a home opener against Ohio University, was announced on Aug. 26.

Following a banner season that was played without fans in attendance at the Wolstein Center, the Vikings have added more than 100 new season-ticket accounts.

“We’re not anywhere near where I’d like to be, but we’ve got a lot of time,” Garrett said.

The schedule announcement, coupled with promotional dates and hype for a team that should be pegged as a conference favorite, should add to the season-ticket spikes, the AD said.

Alumni outreach

Cleveland State has already surpassed its season-ticket revenue total from the 2019-20 season, when the Vikings experienced an attendance bump in head coach Dennis Gates’ first year on the job. | CLEVELAND STATE UNIVERSITY

Athletic additions?

CSU said it will explore the “feasibility of introducing” more athletic programs.

Any additions would be aimed at sports that could help to pad the school’s enrollment and produce “a net-positive” revenue impact, meaning scholarships and other expenses would be more than covered by the athletes’ tuition.

The Vikings will “do an assessment” on the possibility of increasing their tally of 18 (eight men’s and 10 women’s) teams, Garrett said. A near-certain addition is esports, which many universities have used as a vehicle to attract students and devise a curriculum that is appealing to young gamers who view the burgeoning industry as a potential career path.

Cleveland State, according to Garrett, “will likely” launch an esports program in 2021-22. The Vikings might not field a competitive team until 2022-23, but much of the groundwork will be laid this year.

“There are synergies with some of the things that we do on a day-to-day basis that can make it successful,” the AD said. “But we’re going to have to lean on a lot of different campus partners. That’s student affairs, the

Algevon Eichelberger and Cleveland State celebrated a Horizon League tournament championship and NCAA bid with a win over Oakland on March 9. The NCAA tournament berth was CSU’s first in 12 years. | JUSTIN CASTERLINE/GETTY IMAGES

Vikings men’s basketball coach Dennis Gates agreed to a new six-year contract in May. | FRANK JANSKY

rec center; there are some intramural activities in gaming that are already going on on campus.”

Budget reductions

Hoops hype

One of the priorities in CSU 2.0 is a restructuring of an athletic department that, prior to the pandemic, derived the vast majority of its budget — 82.8% — from student fees and other school funds.

The university said an athletics task force has identified $1.5 million in potential yearly savings that would be phased in over the next few years.

Garrett said a chunk of the reductions will stem from a drop in scholarship offerings that will target “some specific sports.” Four or five of the Vikings’ programs, he added, are “probably going to look very different in terms of the resources that we’re applying.”

CSU, though, doesn’t plan to cut sports — a move that has become all too common in college athletics in the last 18 months.

The university, the AD said, will need to get “creative” in recruiting for a handful of sports that won’t have “substantial scholarship allotments.”

At the top of the pecking order is men’s basketball, which has been rejuvenated by the 2019 hiring of Gates.

Last season, the Vikings advanced to the NCAA tournament for the first time in 12 years, and won both a Horizon League regular-season and tournament championship for the first time since 1986.

In May, Gates was rewarded with a new six-year deal that increased his annual base salary to $500,000 and includes benchmarks that could extend the agreement for four additional seasons.

The 41-year-old coach told Crain’s that the men’s basketball program’s role in CSU’s strategic plan is “important simply because our institution is a non-football institution.”

Men’s hoops, as CSU’s signature program, is crucial to the Vikings’ hopes of pumping up their athletic revenues.

CSU said season-ticket sales for

Two important items on Garrett’s to-do list involve apparel and ticketing.

CSU’s deal with Nike “expires this fiscal year,” and the Vikings are “actively evaluating what that will look like moving forward,” the AD said.

The school’s contract with The Aspire Group, an Atlanta firm that has a sales manager who is employed in Cleveland State’s athletic department, also is set to run out. CSU, according to its AD, is evaluating whether to extend the ticketing and marketing partnership, or try “a different strategy in that space.”

A definite in the efforts to generate additional revenues is that alumni must be more involved.

One strategy involves getting CSU graduates engaged with the school’s spectator sports, which could lead to an increase in ticket sales and fundraising. Another is geared toward alumni who were student-athletes, and thus could have strong relationships with their former teams. That group, especially the ones who live in the area, could participate in reunions or golf outings, and get to know the coaches, staff and student-athletes associated with their former sport.

“What are ways that they can help provide their time as mentors to our student-athletes or help support us financially with gifts to those individual sport programs?” Garrett said.

Something the AD believes CSU has done well since he came aboard is touting its athletic accomplishments.

That will continue, with a focus on creating and sharing more behindthe-scenes content.

The marketing push, university leaders hope, will help CSU “aggressively sell” to corporations in the region.

Gates, the current face of the athletic department, knows his program will be at the center of many of the efforts. The men’s hoops coach said Clevelanders support “a winner,” and he believes the program will continue to make strides.

“Those fans are loyal fans, and we’re just reinvigorating ours,” Gates said.

Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 3

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New Ohio laws allow health care professionals to work across state lines

BY KIM PALMER

State lawmakers passed six bills allowing health care professionals to enter into licensure compacts with national organizations that make it easier for Ohioans to work or provide services in other states and for qualified out-of-state workers to move to and work in Ohio.

Sen. Kristina Roegner, a Hudson Republican, was the driver behind state Senate bills focused on removing “unnecessary and overbroad licensing regu- Roegner lation,” which she contends erect barriers for health care professionals who cannot easily bear the costs or efforts of redundant state-by-state relicensing — a process, she adds, that also restricts access to trained physicians, nurses and therapists in underserved areas.

Fertel “People, when they learn certain skills don’t forget them when they cross state lines,” Roegner said. “When you get a driver’s license in a particular state, you don’t have to get a new license in each state to drive to Florida.”

She said she’s now determined to tackle Ohio’s more than 650 different occupational licenses that she said are onerous for residents and deter licensed professionals from moving to the state.

Roegner was the primary sponsor or co-sponsor of Senate Bills 2, 3, 5, 6 and 7 — legislation permitting Ohio’s enrollment in interstate compacts, which are formal reciprocity agreements between states. The compacts create a centralized database for the validation and recognition of professionals licensed in one state, allowing them to work without acquiring a new license in other participating states. The organizations also track any disciplinary-action license forfeiture and report it to all members.

“These bills get government out

of the way of trained professionals boundaries for up to 30 days a year.

The law, Senate Bill 2, was introdoing their jobs,” Roegner said.

Senate Bill 3, signed into law by duced by Theresa Gavarone, RGov. Mike DeWine in July and set to Bowling Green, and took effect in take effect in 2023, allows Ohio early August.

Ohio audiologists and nurses to apply to practice in all of the Nurse Licensure Com- speech-language pathologists also pact’s 34 states, while also are permitted to join the Audiology allowing nurses from and Speech-Language Pathology those states to move here Interstate Compact and apply to without needing to obtain work in another compact member state as result of the passage of new certifications.

The Ohio Organization House Bill 252 in June.

Roegner said the pandemic and a for Nursing Leadership originally opposed the bill, new reliance on telehealth helped Roegner said. But after demonstrate the need for flexible recommending some health care. During the pandemic, changes, the group even- Ohio legislators enacted a series of tually supported the legis- emergency rules facilitating telelation, which it said facili- health provisions for home health, tates “telehealth care, hospice, dental and behavioral home health, long-dis- health practitioner services. Even tance monitoring of pa- with loosened telehealth rules, most tients, hospital follow-up medical professions are not permitcare and the increased ted to consult with patients out of mobility of the nursing state if the treating physician is not licensed in the state where the paworkforce.”

Two similar laws took tient resides.

“With telehealth, the nurse or the effect in June. Senate Bill 5 permitted the state to join the Phys- doctor can easily get on a Zoom or ical Therapy Licensure Compact, video chat and communicate with which extends reciprocity privileges in “WITH TELEHEALTH, THE NURSE OR more than 30 other states. Senate Bill 7, THE DOCTOR CAN EASILY GET ON A the Occupational ZOOM OR VIDEO CHAT AND Therapy Licensure, will offer the same COMMUNICATE WITH THEIR PATIENTS rights to occupa- ACROSS STATE LINES EASILY. THAT’S tional therapists once the interstate REALLY BEEN A DRIVING FORCE AND professional licensREALLY HELPED PUSH THINGS ALONG.” ing compact is for— Sen. Kristina Roegner malized in 2024.

“Ohio is going to be one of the their patients across state lines easifirst states involved in the occupa- ly,” Roegner said. “That’s really been tional therapy license compact, so a driving force and really helped we will be at the table for the initial push things along.”

The medical license portability legrulemaking,” Roegner said.

Another bill signed into law in islation was proposed as a means to late April, and co-sponsored by strengthen access to health care for Roegner, authorizes Ohio’s partici- rural and underserved areas but has pation in the Psychology Interjuris- gained a sense of urgency during the dictional Compact, which regulates COVID-19 pandemic when the need the practice of telepsychology and for health care providers increased. limited in-person, face-to-face practice of psychology across state See LAWS on Page 21

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EDUCATION

‘The cultural norms of a classroom are going to have to be retaught’ Sophomores at Wooster are attempting to make up for a lot of lost time

BY AMY MORONA

Lots of attention is typically showered on the bookends of a college experience: students’ first and last years on campus. But what about that time in the middle?

It can be tough for both juniors and sophomores, said Michelle Johnson, associate dean for advising at the College of Wooster. Juniors, at least, have declared a major and have some level of connection to faculty members. Traditionally, the sophomore class could feel lost.

“It is a crucial time for retention purposes,” she said. “If that year doesn’t go well, this is a great time (for students) to say, ‘Well, that school is not working out.’ ” This current crop of sophomores, the collegiate class of 2024, is one of particular interest. COVID-19 shaped their milestones. Their senior year of high school was marked by a shift to online learning, followed by an anything-but-typical first year of college.

Some are arriving for either the first time ever or the first time in a while to a campus that may look or feel different. It can make year two feel a lot like year one.

“Now that so many things are opening back up, I finally know what I missed out on,” said Kim Nguyen, a 19-year-old Wooster sophomore from Columbus.

The pressure is on for institutions to focus on retention after the pandemic-induced enrollment woes of 2020. Colleges, including Wooster, are trying to figure out how to keep students engaged and enrolled.

Roughly 2,000 students in total enrolled full-time last fall at the campus that looks like one you’d see in a movie. The year there unfolded among the big trees and stately buildings in a similar way as it did at other places. There were more online classes, mask requirements and a shift to full remote learning for some of the fall semester due to an uptick of COVID cases. Campus traditions, those moments tightly woven into the small private college experience, weren’t held in the usual way or at all.

Five hundred and thirty students began their first years at that time. A year later, 475 remain as sophomores.

“Historically, we know that students who are more engaged are more likely to retain,” said Myrna Hernández, dean of students. “For students who are choosing not to stay, are those pandemic-related reasons, or are those other reasons?”

The college held several events aimed at sophomores before classes began last week. Tables dotted the student center where students could pop by to learn how to connect with alumni or to talk about opportunities in a STEM club. Though some firstyear students also were there, the bulk of the offerings were intended to help students connect to the campus’ resources and organizations compared with the more topical nature of the introductory orientation.

Sophomores must also take a “Life

By Design” class. Its course catalog entry says it helps “explore and clarify your interests, values, and strengths and activate your leader-

Students walk across the College of Wooster during the first day of class. The college, and others across the country, are figuring out how to best engage sophomores. | MATT DILYARD/THE COLLEGE OF WOOSTER

ship and resilience skills to help you thrive on and off campus.”

Sophomore Giselle Rivera just returned to the campus last week. Rivera, 19, went home to Georgia last fall to study remotely due to COVID concerns.

“They weren’t enforcing a lot of rules,” she said of the college, adding that there didn’t seem to be a lot of opportunities to leave her dorm room last year.

Being back on campus is a shift. It took her a minute to find the entrance to an under-construction building again. The whole experience reminds her of what it feels like to return home after a long vacation.

“It was just a mindset change, like a mental thing,” Rivera said. “I had to be like, ‘No, I’m actually here and I’m actually staying.’ ” Hernández keeps reminding people that only current seniors have experienced a full, uninterrupted year at the college. Because of that, officials are trying to provide supplemental programming that fits the specific needs of each class.

“Our focus is trying to build individual connections for students, being pretty intentional about paying attention to students that aren’t getting connected,” Hernández said.

Rivera is capitalizing on the roots she formed during the almost full year she spent online. She made it a point to attend student organizations’ meetings, to turn her camera on during class, to feel like she was making friends.

“Because if not, I’m going to be very sad when I go to campus and I talk to nobody, eat by myself, walk by myself,” she said.

Classmate Jaylin Hudson also wanted to participate in extracurriculars last year, but wasn’t interested in doing two or three hours of club meetings virtually when he already was spending hours online for classes. It was a lot of screen time.

“My learning style is all about consistency,” said Hudson, also 19 and from Georgia. “It’s kind of hard to learn concepts when you’re in-person for a short amount of time and

you’re virtual for the rest.”

He noted the difference in his midterm grades. The marks were higher during the times he was in person and lower during online sessions.

“That really shows a reflection of how I performed,” he said. “For those who are hands-on and visual learners, I know they probably struggled a lot.”

Wooster’s Academic Resource Center at the college already is busy.

Director Amber Larson said she has

never seen so many sophomores pop in so early to pick up planning guides and calendars.

Faculty members are “very aware” that students are returning to a different situation, she said. They may have never been to in-person college classes exclusively, or in some cases, at all.

“The cultural norms of a classroom are going to have to be retaught,” Larson said.

There also have been more conversations with faculty on how to be more aware of the nonverbal things that students may be experiencing or displaying. So much has happened outside the classroom over the past 18 months that can impact what happens in it. Larson said she’s confident, though, that everyone will find their footing quickly.

The college is one of just a handful in Ohio — so far, at least — to require vaccines. Face coverings must be worn in indoor spaces aside from private offices and residences.

Masks are still required for visitors to sophomore Hudson’s room, as is hand sanitizer when entering. He dips into a stockpile of Lysol and Clorox wipes to clean things when they leave. The pandemic taught him to look out for himself. Plus, more outbreaks could bring a shift back to remote classes or getting sick.

“I feel like that’s going to probably be a barrier between me gaining friends,” he said. “Because there’s a lot of people on this campus, they really don’t want to wear a mask or don’t want to follow the COVID guidelines.”

He’s still trying to begin carving out a niche on the campus he’s been at for a year. He’s involved in student government, got an on-campus job, and is thinking about trying out for the tennis team. The first few days of in-person classes were already better, he said. It all seems like what the college experience should be.

“Hopefully that works out and I can get a gist of what it was before COVID,” he said.

Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

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Account Executive, Employee Benefits Our Cleveland team continues to grow! Lockton is excited to welcome Julie Hamman as our newest Employee Benefits Account Executive. Julie will be responsible for strategically managing her book of business, bringing innovative ideas and marketplace trends to her clients, and developing long-term client strategies to meet both the financial and corporate mission.

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 5

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AKRON

Great Lakes Biomimicry and Ohio Aerospace join forces

BY DAN SHINGLER

Great Lakes Biomimicry is joining the Ohio Aerospace Institute via a merger the organizations say will provide more resources to the biomimicry group and opportunities for OAI members to learn about biomimicry and incorporate it into their work.

“The two organizations’ boards approved the combination last week, so we’re quite excited about it,” said OAI president and CEO John Sankovic in an interview last Tuesday, Aug. 24.

“The OAI has been working with Great Lakes Biomimicry for several years now. In the beginning, we were focused on aerospace, obviously, and our association with NASA. We’ve attended the big conference they had, called Biocene, and we’re hoping to bring that back again.”

Sankovic is a major innovator himself. He holds three patents, has a Ph.D. in biomedical engineering and spent 31 years at NASA Glenn Research Center in Cleveland, where he was chief technologist and director of the Office of Technology Incubation and Innovation.

He said he was introduced to the

local founders of Great Lakes Biomimicry several years ago and was immediately interested in their work.

“When I took over as chief technologist, probably a month in the job, Tom Tyrrrell, Peter Niewiarowski and Don Knechtges (Great Lakes Sankovic Biomimicry’s co-founders) gave a talk and I happened to attend. We met in my office afterwards and thought we’d talk for 15 minutes,” Sankovic said. “We ended up talking for more than two hours.”

Sankovic would go on to give a TEDx Talk about biomimicry in 2016. Although it Tyrrell was titled “Mars Technologies,” Sankovic spoke at length about how biomimicry might be used to develop better and more efficient ways to explore the red planet.

Biomimicry is the practice of identifying solutions to human engineering problems via nature — such as copying the way birds refract light to produce certain colors, rather than

LEADING WITH OUTCOMES

actually having colored pigment on their feathers, or copying how a snake propels itself so that robots can move via the same techniques.

Sankovic said he already has seen how it can be applied to aerospace and believes humans have only scratched the surface in terms of the engineering lessons we can take from nature. He cites as an example the discovery that seals have special textures on their whiskers, which allow the whiskers to move through water with little turbulence so they can help the seal detect fish or other prey moving nearby. Turns out, Sankovic said, those textures on seal whiskers also can be used on jet engine turbines to make them work better.

“And there’s a lot still to learn,” Sankovic said.

Such topics are becoming more import in the aerospace industry, as companies constantly seek to get an

The University of Akron has been heavily involved in biomimicry research for several years. Here, researcher Dr. Peter Niewiarowski shows off a gecko that the university has used to develop new adhesives technology. | DAN SHINGLER

engineering edge on one another.

More recently, big customers such as Airbus have started requiring their suppliers to have green programs in place, and biomimicry likely can help in that regard, Sankovic hopes.

“If you want to work with Airbus, you have to have a green policy,” Sankovic said. “Biomimicry, which Airbus has already embraced for some of its applications, is a great way to do it. ... The link between biomimicry, aerospace and nature is pretty tight because nature does things really well.

And it does that using as little energy as possible and being as efficient as possible.”

Sankovic believes biomimicry will play a larger role in aerospace, and in manufacturing generally. One reason for that, he said, is the advancement of additive manufacturing, or 3-D printing, which can more closely emulate what nature does than other manufacturing methods.

“Nature builds very complex structures, but it does it additively,” he said.

“In the past, we couldn’t really copy it, but with additive manufacturing, we can duplicate what nature has.”

There won’t be many, if any, changes for the officials at Great Lakes Biomimicry, Sankovic said, because OAI wants to expand its activities. That includes ramping up OAI’s STEM education efforts by having the biomimicry group resume its K-12 education program, which had been suspended

due to a lack of resources.

This is all music to the ears of Great Lakes Biomimicry’s founders and current practitioners. Tyrrell, a Great Lakes Biomimicry co-founder, former steel industry executive and local entrepreneur, is looking forward to restarting some of the group’s activities and, he hopes, growing along with OAI. “During the pandemic, because we were so involved with corporations and doing education programs with them, everything went from full steam to dead stop, because all the (companies) were focused on survival and the health of their employees,” Tyrrell said.

“This gives us a single, expanded marketplace of opportunities, both with the clients John has today and with the clients he’ll have in the future. ... This gives us the backing we need, and we don’t have to worry about foundation funding to support it.”

Niewiarowski, a University of Akron professor who helped found Great Lakes Biomimicry, said he sees the combination as a good thing. Niewiarowski is not currently a formal member of Great Lakes Biomimicry, but he said he still works with the group as a biomimicry practitioner. His work with geckos, for example, has led to the development of new adhesives that copy how the lizards’ feet work.

“I think this is a very good thing.

This last year has been challenging for a lot of organizations, including Great Lakes Biomimicry and, frankly, the University of Akron and others,” Niewiarowski said. “I think that them joining with the aerospace institute takes advantage of some pretty extensive and well understood leadership at both organizations.”

Niewiarowski said he’s particularly pleased to be under Sankovic’s leadership because he knows the NASA scientist earnestly believes in biomimicry.

“From the very beginning, he was a very ardent biomimicry supporter,” Niewiarowski said. “He’s a really shrewd guy and he’s totally convinced of the benefits of biomimicry.”

Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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8/27/2021 11:25:08 AM

AKRON

Merriman Valley meetings put Akron abatements in the crosshairs

BY DAN SHINGLER

After months of protests and sometimes contentious discussions, a week of public meetings seems to have made progress toward creating a master plan for the Merriman Valley.

Those hoping to stave off the development of green space in the area — or at least not to incentivize it with tax abatements — have gained some ground.

“We are optimistic,” said Drew Holland, a co-founder the citizens’ action group Preserve the Valley, which has been seeking to protect green spaces in the area.

Chicago urban planning firm Farr Associates, headed by well-known architect and urban planner Doug Farr, held meetings with city officials and residents the week of Aug. 16, with about 200 people attending meetings on Aug. 17 and 19.

The firm has been hired by Akron and Cuyahoga Falls to come up with recommendations for how the two cities should guide and manage development in the valley they share.

Merriman Valley is one of the most scenic areas of both cities and is seen by nearly everyone from developers to conservationists as a vital gateway to the Cuyahoga Valley and its Farr beloved national park.

Farr said in an interview last Tuesday, Aug. 24, that he thought the process was going well, despite some predictable, mildly contentious moments, and that his firm expects to present its recommendations this fall.

That will include guidance on how zoning regulations Dickson could be used in the area, though Farr said he won’t recommend specific zoning changes.

Farr also sounds like he might recommend one thing that those in Preserve the Valley and others desperately want: curtailing the use of Akron’s 15-year residential tax credit for privately owned green space in the valley.

As an urban planner who advocates for green space in walkable, bikable and thought-out neighborhoods, Farr said his preference “would be to not abate new sprawl, and abate redevelopment” of existing built sites instead.

Farr said he understood the intent of the abatement, a flagship program of Akron Mayor Dan Horrigan that does not apply to development in Cuyahoga Falls’ portion of the valley. But he said he thinks abatements should be targeted.

Greenfield projects, like the current redevelopment of Riverwood Golf Course into residences in the valley by Petros Homes, don’t need the abatement, Farr said.

“Riverwood didn’t need any tax abatement — in that one project’s case, it was a policy that didn’t need to apply. It was profitable enough without it,” Farr said. “If you’re going to do that policy, there needs to be more nuance to it, at the very least a needs test. … If you don’t need it, why is the public ponying up to help you?”

A ‘counterproductive’ policy

conservationists seeking to protect the valley’s remaining green space.

But Holland said he and his group were pleased to see Farr portray and view the study area as a gateway community for Cuyahoga Valley National Park, though the Preserve the Valley folks view it as a larger gateway to the entire Cuyahoga Valley.

That’s in tune with what’s being sung by people such as Holland and Phil Dickson, a Virginia real estate professional and former Akron resident who has become an activist even from out of state.

Dickson drew a round of applause when, at the Aug. 19 meet- City ‘open to hearing ing, he asked how many in the audi- from people’ ence would favor limiting Akron’s abatement program to only the reIt remains to be seen, however, development of existing properties whether the city of Akron will — and most attendees raised their change its abatement program, hands. which city officials credit with helpDickson said later that he decided ing to spur numerous new residenat the last minute to make the six- tial developments, from downtown hour drive to attend the meeting. A to the edges of the city, over the last long-time environmentalist who couple of years. has worked for the Brookings InstiThey’re not dismissing the idea, tution and the White House Office and are hearing residents out, but of Energy and Climate Change, think it’s too soon to tinker with the Dickson said he got involved be- abatement program, said Jason cause he still has ties to and affec- Segedy, Akron’s director of planning tion for the Akron area. He said he and urban development. believes the city needs to “We need to be encouraging popprotect its remaining ulation growth everywhere in the green space if it’s to suc- city,” Segedy said. “I think it’s preceed in rebuilding its pop- mature to talk about changes to the ulation, as city officials abatement program, but we’re open hope. to hearing from people.”

Growing up in Akron That said, the abatement program and now 34, Dickson said is neither permanent, nor inflexible, he remembers seeing he said. green areas around White “We’ve said from the very beginPond Drive, Portage Trail ning, when the program was and near Richfield clear- launched, that we look forward to cut to make room for big the day we don’t need it anymore. new homes.

We also said there was some flexi“I could feel the declin- bility in terms of things like the geoing population of the re- graphic scope,” Segedy said. gion, and at the same Segedy noted that while some optime I was seeing the posed to greenfield development consumption of more say the Riverwood project didn’t green space,” Dickson need an abatement, that also means said. that withholding an abatement He said he thinks city would not have prevented the deofficials should take note velopment from moving forward. that building in the suburbs did not He thinks the situation will be the stop Akron, or even the region, from same for other privately owned sites losing population, and they should in the valley. change course.

But the city will wait to see what it “Sprawling development on the gets from Farr Associates after it agoutskirts of the city is not the answer gregates the concerns of residents to solving the population problem,” and the two cities and presents its Dickson said. “To cannibalize a re- recommendations. He isn’t ruling gion’s best assets, its green space, is out changing how the abatement is counterproductive to increasing the popu- “WE NEED TO BE ENCOURAGING lation.

It hasn’t worked for the past 60 POPULATION GROWTH EVERYWHERE years, and it won’t IN THE CITY.” work today.”

— Jason Segedy, Akron’s director of Holland’s group planning and urban development has also argued against the use of abatements for greenfield develop- used. ment in the valley.

“We’ll certainly talk to Farr Asso“Those (abatements) should not ciates, and maybe the tax abatebe used for the development of even ment shouldn’t be used for greenprivately owned green space in the field development in the valley,” valley,” Holland said. “We should Segedy said. “Most of the valley in not abate sprawl.”

Akron is already developed and I That said, Holland said he came think where the tax abatement away from the recent meetings with could help us is with … things like Farr and city officials with a sense of building new apartments on already “critical optimism” and that he developed land.” thought the discussions went well.

Farr said he hopes to be back in It’s not perfect, Holland said — October with recommendations to his group is not pleased that the city discuss with the city and residents. of Akron left its property on Theiss Holland and his group, as well as Road out of the planning area, for city officials, say they’ll continue to example. The city is considering work together. selling 45 acres of wooded land that it owns there to a residential devel- Dan Shingler: dshingler@crain.com, oper, which has raised howls from (216) 771-5290, @DanShingler

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 7

PERSONAL VIEW

Can tech save the heartland? We’ll see.

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

BY RICHEY PIIPARINEN

EDITORIAL

Fresh starts T

ragic events from far away last week hit close to home — and underscore the role Cleveland and other cities can play in rebuilding lives, to the benefit of all.

America’s withdrawal from Afghanistan has been chaotic and violent. President Joe Biden reiterated on Thursday, Aug. 26, a day in which two blasts at the Kabul airport left scores dead, including 13 members of the U.S. military, that his administration is sticking to an Aug. 31 deadline to withdraw Americans and Afghan refugees from Afghanistan.

We’ll leave to others the evaluation of the administration’s poor handling of the withdrawal, and the value of America’s involvement in Afghanistan for the past 20 years. The pressing concern now, though, is the country’s responsibility to Afghan refugees, who already have begun arriving in Cleveland and across the country.

Joe Cimperman, president of Global Cleveland, the organization that seeks to attract, welcome and connect international newcomers to economic, social and educational opportunities in Cleveland and Cuyahoga County, told Cleveland.com that the city is ready to step up in support of refugees. For instance, he said Cleveland Catholic Charities and Refugee Response last week led a legal clinic where about 300 people received financial support to bring family to Cleveland through the filing of what are known as I-131 applications. (Global Cleveland helped raise money for the effort and to find lawyers to process applications.)

“We have room, we have infrastructure, we have jobs, we have housing,” Cimperman said. “We have the space in order to welcome people from all over the world, and why wouldn’t we do the right thing, take advantage of our advantages and do that?” It’s a valuable perspective for a city that continues to lose population and must see immigration as one part of the solution.

Cleveland also is one of 19 cities on the list of resettlement locations for Afghan refugees through the country’s Special Immigrant Visa (SIV) program. The federal government says cities on the list are there because they “have been identified by resettlement agencies as locations with reasonable cost of living, housing availability, supportive services, and wel-

coming communities with volunteers and resources.” There are three resettlement agencies in Cleveland — Catholic Charities, US Together and the U.S. Committee for Refugees and Immigrants (USCRI) — working to make sure Cleveland lives up to that description.

We understand immigration is a fraught political topic.

(Isn’t everything these days?) But a valuable opinion piece last week in The Wall Street Journal put in historical context America’s history of welcoming refugees as “a moral obligation and a matter of national self-interest.” History has shown, wrote Arthur Herman, a senior fellow at the Hudson Institute, “that earlier immigrants who fled tyranny have helped renew Americans’ faith in the country’s institutions and founding principles.”

For refugees from Hungary, Cuba, Vietnam and Cambodia, America has asserted those principles and provided a fresh start for people who became highly productive members of our society. The “entrepreneurial drive and civic-mindedness” of Cuban refugees and subsequent generations “transformed the economy of Miami and South Florida,” Herman wrote. By 2019, the median household income for Cambodian-Americans was $67,000, just below the overall U.S. median household income of $68,703.

Global Cleveland on its website offers an excellent overview of how to help refugees to Cleveland, with links to support organizations and information about volunteering, housing, jobs and donations. The organization asks companies that are willing to hire refugees to contact the three official resettlement agencies.

In light of world events, this year’s Cleveland Welcoming Week is especially relevant and poignant. It’s a series of events, running from Sept. 10-19, focused on “bringing communities together to celebrate the unity and strong connection with each other as well as to exhibit and applaud the benefits of welcoming newcomers.”

The Afghan situation is unambiguously tragic. There’s no fixing the horrors that many have endured. But if Cleveland and other cities are open to welcoming refugees, they will honor the promises of our country and add people who ultimately will help America.

Executive Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

In a recent Brookings essay, senior fellow Mark Murro and colleagues brought down a strawman they themselves propped up. The piece was titled, “Remote work won’t save the heartland.” It begins: “Hopes persist that a burst of relocations by tech companies and remote workers will revitalize the American heartland.” The conduit by which this revitalization will occur is via the leakage Piiparinen is of a “pool of footloose workers who are director of rapidly exiting the big coastal tech hubs Urban Theory and heading for the heartland,” where, and Analytics at the thinking goes, they can have their the Maxine corncake and eat it, too.

Goodman Levin In other words, big city job, small city College of Urban living. Or Opie with an Apple.

Affairs at But Murro and his colleagues weren’t Cleveland State having it. They cite CBRE research over a and co-founder one-year period that shows there’s not of Rust Belt much leakage from the coasts to the heart- Analytica. land. While more San Franciscans were leaving, for example, they aren’t so much going to St. Louis as Sacramento, as well as other intraregional outposts. And while Murro et al admit the data they are pointing to are way too sparse to make sense of the issue either way, it’s how the issue is framed — i.e., can the tech industry save the heartland? Tech telecommuters won’t save the heartland — that’s the bigger issue here. That’s because the idea that the tech industry can save swaths of the country is dubious at best.

There’s a a wonky concept in economic development that is integral yet underused. The concept is termed “economic epoch,” characterized as distinct periods of economic history that are sparked by “epochal innovations,” described as “major breakthroughs in the advance of human knowledge, that constituted dominant sources of sustained growth over long periods and spread to a substantial part of the world.” So notes legendary economist Simon Kuznets. Crucially, the beginnings of an epoch make it so that economic activity is not spread out evenly across space, but rather clusters in areas of the world that hold comparative advantage. Geographic winners and losers are thus created; or those “saving” (like Silicon Valley), and those needing “saved” (like Cleveland).

Of course, Cleveland and other Rust Belt cities were once kingmakers in their own right. This was during the epoch defined by the Industrial Revolution, one kicked off in part by the steam engine. Pittsburgh, or the Steel City, became so due the region’s “bounty of bituminous coal (that) was uniquely able to be used in the blast furnaces that transformed iron ore into pig iron,” notes economist Chris Briem.

He goes on to quote a decades-old University of Pittsburgh study that looks back on the confluence of geographic advantages that made Pittsburgh a winner of the Industrial Revolutionary epoch. “Coal and metallurgy came together (in Pittsburgh) “like twin supernovae,” the report states, “impelling into rapid expansion all elements of the economy which were aligned with them.” Moreover, Pittsburgh’s output — coal and steel — became other regions’ input, allowing Detroit, for instance, to be the Motor City via agglomeration of auto manufacturing and its requisite supply chains, with Cleveland a crossbreed between each — it had both steel mills and car plants.

But like all things, epochs evolve. They age. And when they do, what was divergent, or “spiky,” becomes convergent, or “leaky.” In the case of the industrial epoch, that meant investment, trade secrets, firms, supply chains, employment, etc., leaving the industrial heartland for locales that were more cost effective, be it offshore to China or

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

See TECH, on Page 9

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8 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

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OPINION

TECH

From Page 8

down South to Alabama. Even when industry remained and firms stayed put, the processes became automated: another hallmark of convergence. Rewards to capital? Sure. More jobs and income for workers? Not so much. The case of Cleveland’s Cuyahoga County is illustrative. Over 51% of all earnings in Cuyahoga County came from the manufacturing sector in 1969. By 2018, that figure was 16%.

Enter the idea of the Rust Belt. It was and remains an idea synonymous with loss, and of being lost. It is an idea tantamount with needing saving. Much of the heartland is thought about this way. Idle cornfields. Abandoned factories. Population loss. Unhappy people. Hence, the Beltway Brookings take.

It’s a take embedded with the confirmation bias that if the Rust Belt is the past, then Silicon Valley is the future. No doubt, Northern California is the center of the current epoch, or that of information technology — an epoch most famously exemplified by venture capitalist Marc Andreessen’s observation that “software is eating the world.”

“More and more major businesses and industries are being run on software and delivered as online services,” Andreesen wrote back in 2011, “with new world-beating Silicon Valley companies doing the disruption in more cases than not.”

In retrospect, Andreessen was right. Software did eat the world. That’s one reality. A parallel, if evolving, reality is that in doing so it got bloated.

Matter of fact, referring to the IT economy as “new” ignores the truth that the tech epoch is actually pretty old, going on 70-plus years by Andreesen’s own account. The question, then, is to what extent economic activity is converging, or leaking, from Northern California as it did some 100 years prior in the Rust Belt? It’s perhaps the important question, as it gets at the heart of the matter posed in the Brookings’ piece.

When it comes to hardware, the ship has sailed. This is evidenced by the ongoing microchip shortage in the U.S. I went to lease a car recently in Cleveland. One problem. They didn’t have any!

A microchip shortage,” the salesman explained. “It was supposed to end six months ago.” He gathered China was “playing hard ball” with the Biden administration. Yet the reality is that the offshoring of chip manufacturing that’s part and parcel with the chip shortage has been a long time coming. In the 2005 paper “Offshoring in the Semiconductor Industry: Historical Perspectives,” the authors find that “semiconductor companies were among the first to invest in offshore facilities to manufacture goods for imports back to the U.S”. Moreover, while six of the top 10 semiconductor firms are U.S. based, nearly two-thirds of those firms’ chips are made overseas.

Employment figures also speak to an aging industry. According to the Bureau of Labor Statistics, from 1990 to 2020, California added 205,000 jobs in the information sec-

tor, or fewer than 7,000 jobs a year. The heartland won’t be saved by that. This employment sluggishness relates to the fact that software, like hardware, is increasingly being offshored. Just Google “off shore software India” and you’ll see numerous hits for middle-manning firms offering programming services at $10 an hour, well below the $15 an hour wage muscling into the fast-food labor market. Explains a trade piece titled, “Offshore Software Development: Definitive Guide for CEOs”: Engineers are the most highly-paid workforce in the world today. Research conducted in 2018 shows that the average salary of an engineer in the UK is roughly 48,000€. With employee wages accounting for more than half of the fixed costs of an average business, hiring local talent in the West means having to pay through your nose. And that’s just the payroll!

Mind you, this isn’t a COVID thing. A cyclical thing. This is a structural thing. It’s the lexicon of an aging, leaking epoch. It’s the oncoming vision of the programmer increasingly going the way of the coal miner, steel worker and auto assembler. It’s Mr. Mom coding in TensorFlow.

But, the investment, or venture capital, is still largely clustered in place, and hence so is the geography of startup formation. This is still true. But so what? Venture capital as a percent of U.S. GDP is 0.38% By contrast, health care spending is 17%. Never mind the increasing societal suspicion of what VC is funding. “(U) unlike any other traditional industry focused on optimizing the performance of capital and labor by standardization,” explains Olivier Alexander in the Paris Review, “the tech industry is primarily an economy of gambling, fundraising and investment portfolios … (or) an economy of promises more than profits.”

Indeed, a recent analysis by Morgan Stanley showed a record high 80% of VC-funded startups are not profitable, and investors are seeing their lowest ROI since 2006. “This decline in returns for venture capital is a serious problem for the U.S. economy,” writes the author of the recent piece, “The Crisis of Venture Capital: Fixing America’s Broken Start-Up System” in American Affairs, not only because it suggests innovation is less profitable, but also because it affects the investments of major institutions.

Does the aging of the industry partly explain this regression of VC ROI? Yes. Explains Jeffrey Funk: “The most significant problem for today’s start-ups is that there have been few if any new technologies to exploit. The internet, which was a breakthrough technology thirty years ago, has matured.” And tomorrow’s disrupter, artificial intelligence, is not quite there yet. But by then, writes venture capitalist Kim-Mai Cutler in her blog post, “Pandemic Silicon Valley isn’t a place,” expect Silicon Valley to be the No. 2 preferred startup location, after the cloud. “It might be better to think of Silicon Valley as an idea dispersed across many places rather than a specific piece of geography,” echoes Derek Thompson in The Atlantic.

Hmm, the “idea of Silicon Valley.” It’s but one hop, skip and jump away from its predecessor, the “idea of the Rust Belt.” To say, then, that tech and its telecommuters can or can’t save the heartland is beside the point. How can tech save Middle America when it can’t save itself?

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WORKFORCE GROWTH Team NEO and Destination Cleveland commit to using diversity to grow labor force.

DIVERSITY & INCLUSION

PAGE 14

of d don gion of w yard

GETTY IMAGES/ISTOCK PHOTO

CLOSING THE OPPORTUNITY GAP

As

CommitCLE diversity effort aims to connect companies with minority suppliers

BY DOUGLAS J. GUTH

T

he Greater Cleveland Partnership has been acting to address diversity, equity and inclusion (DE&I) disparities regionally for nearly two decades, even if progress remains slower than the organization would like. A new initiative called CommitCLE aims to accentuate and accelerate GCP’s overall diversity efforts, thanks to a cohort of companies dedicated to increasing their supplier spending with growth-oriented minority firms.

GCP is currently collaborating with 18 corporations eager to close opportunity gaps for minority business enterprises (MBEs), ideally fostering an atmosphere of economic growth and competitiveness.

“There has to be an intentionality about growing minority-owned businesses,” said Marco Grgurevic, director of minority business growth at the partnership. “We said, 'Let’s create an environment where stakeholders can share best practices,

and explore areas they haven’t considered before.' ” Introduced in early 2020, CommitCLE works with member organizations to set spending goals around vendor diversity. Additionally, GCP encourages program partners to identify and mentor three MBE firms — long-term ambitions include increasing the number of regional minority-run businesses with revenues of more than $1 million.

CommitCLE centers on racial

and ethnic minorities, a demographic representing just 2.4% of supplier spending, according to a GCP study of eight Northeast Ohio organizations from across industry sectors. While vendor diversity is not a new concept, most businesses haven’t taken a deep, data-driven dive into the issue.

“Some companies might not have the internal structure to collect data, or have a system where they can divide their spend by different classes

10 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

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Th Com ber, mee Tho this vice and fairs —t link plyW rier also ban tion fund “Th sma nies said es a buy A es o sup vidi add Clay Apr new Sinc thei with $3.4 Th men ture und gna part paig its “ bran con the tem its m note Su high fran end port nori goo mod “Th keep Clay our and righ It’s a es g

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FOCUS | DIVERSITY & INCLUSION

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of diversity,” Grgurevic said. “Many don’t break out spend based on region, either. So getting a clear picture of what’s happening in their backyard becomes a challenge.”

GETTY IMAGES/ISTOCK PHOTO

A slam-dunk opportunity The Cleveland Cavaliers joined CommitCLE as an inaugural member, since then strategizing on how to meet the initiative’s diversity goals.

Though the pandemic has delayed this work, Kevin Clayton, the Cavs' vice president of diversity, inclusion and engagement, envisions vendor fairs where CommitCLE participants — the Cavaliers among them — are linked directly to minority supply-chain firms.

With access to capital a major barrier for MBEs, initiative members can also leverage relationships with banks and other financial institutions, giving owners a window into funding they didn’t enjoy previously.

“Then we can be an advocate for small businesses, adopting companies for lead procurement,” Clayton said. “We can also share best practices and ways to collaborate from a buying standpoint.”

A structured DE&I approach hinges on growing alongside the MBE supplier community rather than providing one-off opportunities, Clayton adds. A former entrepreneur himself, Clayton came to the Cavaliers in April 2019 to lead the franchise’s newly formed DE&I department.

Since 2015, the Cavaliers have grown their MBE portfolio from 42 vendors with $1.3 million in spend to 55 with $3.4 million in spend.

Through this work, Clayton is cementing an inclusive company culture that encompasses support of underserved business owners. Cognac distiller Hennessey recently partnered with the NBA on a campaign to support MBEs, building on its “Unfinished Business” venture the brand launched in 2020. While not connected directly to CommitCLE, the Hennessy effort can serve as a template for the Cavaliers in uplifting its minority vendor platform, Clayton notes.

Supplier diversity will be further highlighted early next year when the franchise hosts NBA All-Star weekend, with the league expanding opportunities for Cleveland-based minority enterprises excited to deliver goods and services in crucial commodity areas.

“The challenge will always be keeping this work top-of-mind,” Clayton said. “A focus on DE&I helps our business, helps other businesses, and helps the community. It’s the right thing to do, but it’s not only that.

It’s about how we can help businesses grow.”

Grgurevic

Clayton

statewide resources necessary for accelerating growth.

CommittCLE’s more immediate goals include bringing 25 companies into the DE&I fold by year’s end.

While supplier diversity spending for involved firms will differ, Grgurevic believes the initial pledge is a good start down that road.

Grgurevic said, “We have to know where we are first. We’re still in collection mode, and this work is new for some. But companies are interested — let’s identify a target we can work toward.”

Clayton, the Cavaliers’ DE&I director, said CommitCLE’s work is fueled by an overarching belief that businesses and the region are stronger with greater racial equity.

“We’re reminded that this is part of our core values relative to civic engagement, and will have economic benefits for us and local businesses,” he said. “We can’t just take our foot off the accelerator.”

Contact Douglas J. Guth: clbfreelancer@crain.com

CLE Consulting Firm, an accounting, payroll and professional tax services company, is one of the MBEs assisted by the Greater Cleveland Partnership’s CommitCLE initiative.

The two managing parners are LaRese Purnell, seated left, and Meltrice Sharp, seated right. | COURTESY OF CLE CONSULTING FIRM

A push into the future GCP’s Grgurevic said CommitCLE is part of a larger ecosystem of minority business growth programming. For example, the partnership's Inclusion MarketPlace online portal acts as a searchable MBE database, allowing minority suppliers to bid on projects and buyers to identify potential MBE partners.

In July, GCP was awarded a fiveyear, $1.9 million federal grant to aid creation of a Minority Business Development Assistance Center in Cleveland. The MBDA Center will utilize funds to back MBEs with revenues over $500,000 — ultimately connecting those businesses with the AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 11

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FOCUS | DIVERSITY & INCLUSION

News industry steps up recruitment of diverse leaders

BY GERRY SMITH/BLOOMBERG

With much of corporate America targeting greater diversity in its management ranks, news companies are taking steps to close the gap, offering a glimpse at what more representative leadership might bring in an industry that has lagged behind.

The Associated Press appointed the first woman and person of color to helm the news agency this month.

In Texas, both the Dallas Morning News and the Houston Chronicle named their first Black top editors in July. And in TV, Black women now run the news divisions of ABC News and MSNBC for the first time.

These leaders are taking over to improve coverage and broaden their audiences at a time of crisis in the industry, with about 300 newspapers closing over the past three years and revenue expected to continue to decline. On top of those challenges, some of these editors say they face other obstacles their predecessors didn’t, such as a perception they were promoted not because they were qualified, but because of the color of their skin.

Their staffs remain over-represented by white journalists. More than

three-fourths (77%) of newsroom employees working at newspapers, broadcasters or digital publishers are white, compared with 65% of U.S. workers overall, according to a 2018 analysis by Pew Research Center.

The newspaper industry’s financial troubles have led to years of layoffs and hiring freezes. That’s long served as an excuse for the failure to hire more Black and Hispanic journalists, despite the benefits they bring in helping outlets better reflect

according to Nieman Lab. In 2014, three of the 25 largest newspapers had women as the top editor and 15% of American newspapers had a person of color in one of the top three newsroom roles.

Path to growth

For newspapers, more diversity could be good for business. Nearly half of Black adults say they follow local news “very closely,” a higher percentage than white or Hispanic adults, “ACROSS THE NATION, NEWSROOMS Pew found. Hiring CONTINUE TO STRUGGLE WITH A LACK more journalists of color helps newsOF DIVERSITY — ESPECIALLY IN rooms get away LEADERSHIP RANKS, INCLUDING SOME from homogeneous perspectives that OF OUR OWN.” can limit their audi— Maribel Perez Wadsworth, president ences, potentially of news at Gannett Media leading to subscribtheir communities, according to er growth, the thinking goes.

Richard Prince, who runs a website Black journalists understand the that tracks diversity trends in the concerns of the Black community, news business. said Monica Richardson, who was “But where there’s a will there’s a named executive editor of the Miami way,” he said.

Herald in December.

Of the 20 largest U.S. daily newspa“I know what it’s like to drive by a pers, about half are now led by a police officer and have that sense of woman or a person of color or both, fear on the highway,” she said.

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12 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

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FOCUS | DIVERSITY & INCLUSION

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Richardson has been holding “listening sessions” in the Black community around Miami in an attempt to mend fences. Her takeaway: “We have work to do.”

“There was trust that had been broken, either through a story or a lack of presence in covering communities,” Richardson said. “People felt like their stories weren’t being told.”

The push in the news industry comes amid an acknowledgment of the lack of diversity throughout the business world. There are about 30 female chief executive officers and five Black CEOs running companies in the S&P 500.

Many news organizations have pledged to hire more journalists of color. Bloomberg News has initiatives to improve representation in terms of gender, ethnicity and race at every level of the newsroom. Gannett Co. released data last year showing its staffs were often more white than the communities they cover and pledged to make its workforce as diverse as the country by 2025.

“Across the nation, newsrooms continue to struggle with a lack of diversity — especially in leadership ranks, including some of our own,” said Maribel Perez Wadsworth, president of news at Gannett Media.

“We must do better.”

‘Not good enough’ The Los Angeles Times published an editorial last year apologizing for its past failures to cover race and vowing to hire more minorities. At the time, the paper said 38% of its journalists were people of color, while Los Angeles County was 48% Latino. “We know that is not nearly good enough,” it said. In May, the newspaper hired Kevin Merida,

who is Black, to lead the newsroom.

The ability for such leaders to direct coverage is substantial. Dean Baquet, an African American, has run the newsroom at The New York Times for seven years. Last year Times journalist Nikole Hannah-Jones won a Pulitzer Prize for the 1619 Project, a series of articles looking at the history of the U.S. through the prism of slavery.

Some observers have taken a pessimistic view of the recent promotions, noting that women and people of color have been given leadership roles only after businesses start to decline.

Black editors say they can bring more racial diversity to their staffs and their audiences. They plan to recruit more journalists of color and make them feel comfortable at the office.

“It’s not only who you hire, but more importantly, what are you doing to ensure your news environments are inclusive?” said Katrice Hardy, who was named executive editor of the Dallas Morning News last month. “Because you could hire me, but the culture and environment will mean that I don’t want to stay.”

Backhanded compliments In TV news, Black women in the top jobs often take a special interest in mentoring other Black women journalists because “they don’t want to be the last ones in those positions,” said Ava Thompson Greenwell, a journalism professor at Northwestern University. Only 4% of TV news directors are Black, according to a survey of TV stations from RTDNA/Newhouse School at Syracuse University.

But Black women are also frequently the target of micro-aggressions, such as subordinates who

question their competence, refuse to take their orders or offer them backhanded compliments, said Greenwell, who interviewed about 40 Black female journalists for her book “Ladies Leading: The Black Women Who Control Television News.”

“The good news is that they are there,” Greenwell said. “The bad news is they aren’t always afforded the deference they deserve.”

At the Dallas Morning News, which named Hardy as its first woman and Black journalist to be executive editor, the newsroom is 64% white while the community the paper covers is 49% white, according to data provided by the paper. Its newsroom leadership is 9% Hispanic, compared with a coverage area that is 26% Hispanic.

“We got these positions because we worked our butts off and we’re really good journalists,” said Hardy, who helped lead the Indianapolis Star to a Pulitzer Prize this year.

“We didn’t get them because we’re Black and Brown,” she said, “although finally the news industry has seen the need to promote people like us.”

In her previous newsroom jobs, Hardy said she was able to call up members of minority communities and “have conversations with folks who frankly had long stopped wanting to deal with us.” She sees such outreach as critical to the industry’s survival.

“If we do not grow a diverse audience of readers,” she said, “we’re going to die.”

Maria Reeve, the new executive editor of the Houston Chronicle, said she would like her promotion to inspire Black journalists.

“I hope younger reporters see what’s happening and can see that there is a path,” Reeve said.

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 13

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FOCUS | DIVERSITY & INCLUSION

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Destination Cleveland intends to “evolve the Cleveland brand” to be inclusive and attract a more diverse visitor audience. | BLOOMBERG

producing well under the number of credentials (college degrees) relative to the population size,” Duritsky said.

“We have to do a better job of improving that (college) completion rate with the members of the minority community.”

Minorities face added economic, social and other interrelated challenges when looking to attain a fouryear degree or postgraduate degree, he said. In Northeast Ohio, 29% of white workers have a bachelor’s degree or above, while that same number is 14% and 16% for Black and Hispanic workers, respectively.

The goal ultimately is to increase job access and provide training resources for what Koehler calls the “underemployed,” or jobs outside the high-paying, high-demand occupations — and to do that, more effort has to go into training and providing access to jobs for minorities in Northeast Ohio.

For businesses looking for talent, especially in growing industries such as health care, IT and manufacturing, attracting it equitably must be a priority, he said — and looking at companies already committed to those principles and modeling solutions is key.

Things like providing a flexible work environment outside of normal work hours and days; fixing transportation issues for workers, which might include moving physical work locations closer to population centers; and loosening education requirements are all on the table, Koehler said.

“Who is out there that's being successful because they're developing better points of access, different ways to build partnerships to engage different communities more effectively?” Koehler asked. “We're hearing a lot these days about people saying we've got to try to do something very differently.”

Destination Cleveland: Marketing all of Cleveland The dual crisis of the pandemic, which brought tourism and the hospitality industry to a near-standstill, and the fallout from the murder of George Floyd by a Minneapolis police officer provoked the leadership at Destination Cleveland to take

“WE THINK ABOUT IT AS BUILDING A DIVERSE PIPELINE OF VISITORS, THEN POTENTIAL RESIDENTS AND A LABOR FORCE, BUT IT ALL HAS TO START WITH AN INVITATION.” — Michael Jeans, a Destination Cleveland board member and co-chair of the group’s newly formed Racial Equity and Inclusion Taskforce

stock of what priorities needed to be addressed.

At the group’s annual meeting in August, David Gilbert, Destination Cleveland president and CEO, told the audience that “we have to lift our underrepresented communities of color and apply a racial equity lens to all that we do. We have to support our community.”

Starting last summer, Gilbert convened a group of more than a dozen board members that held six listening meetings with 65 individuals representing 46 local organizations, as a precursor to creating a “Racial Equity Roadmap” — a defined list of actions, timelines and metrics aimed at making diversity, equity and inclusion part of advancing both tourism and Cleveland’s reputation as a destination city.

“It is about how we want Cleveland portrayed and how a group like Destination Cleveland can amplify stories about neighborhoods that do not normally receive a lot of attention.

Too often the places where there are more people of color can be underrepresented,” said Michael Jeans, a Destination Cleveland board member and co-chair of the group's newly formed Racial Equity and Inclusion Taskforce.

“We wanted to introduce and invite people to see all of Cleveland,” he added.

The first step in the plan was to look inward at the organization, Jeans said, and improve the attraction, retention and promotion of employees of color, while also increasing those numbers on the group’s board of directors, and with suppliers and vendors.

Beyond that, the group intends to “evolve the Cleveland brand” to be inclusive and attract a more diverse visitor audience.

The taskforce issued a plan to attract minority communities to conventions and meetings by connecting with Cleveland’s Black and immigrant history, “ensuring the story of those groups is part of the narrative,” Jeans said.

That involves working with other economic development groups to support local minority-owned hospitality businesses, while leveraging Destination Cleveland’s well-honed marketing abilities to help define and brand overlooked minority neighborhoods — and then promote those brands.

A more inclusive vision The direction for Destination Cleveland is new but not entirely different from how the organization has seen its role over the past few years as the group has turned its focus on turning visitors into residents.

“We think about it as building a diverse pipeline of visitors, then potential residents and a labor force, but it all has to start with an invitation,” Jeans said. “Destination Cleveland is trying to leverage our platform so that we can all have ‘a better Cleveland’ and a more racially inclusive Cleveland and a more productive Cleveland.”

The roadmap's timelines and metrics will be evaluated by the group’s board of directors and reported publicly on an annual basis, which will include reporting all visitor, meeting attendee, business and vendor data by race or ethnicity.

The direction further solidifies Destination Cleveland’s role in the economic development of the region, which Gilbert said is made up of “different interwoven components.”

“The biggest problems in our community cannot be solved by any one organization. We need the public-private, the civic partnerships," he said. "I believe we are an important (organization), but we are just one.”

Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive

Racial proportionality of in-demand occupations White

Black

Hispanic or Latino

Asian

Two or More Races

Business operations specialists Computer occupations Database administrators Financial analysts Financial managers General & operations managers Human resources managers Information security analysts Management analysts Managers, emerging fields Marketing managers Medical & health services managers Nurse practitioners Occupational therapists Operations research analysts Physical therapists Registered nurses Software developers applications* Training& development specialists Web developers SOURCE: TEAM NEO *SOFTWARE DEVELOPERS AND SOFTWARE QUALITY ASSURANCE ANALYSTS AND TESTERS USED IN EMSI

CRAIN’S CLEVELAND BUSINESS GRAPHIC

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 15

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CRAIN'S LIST | 100 LARGEST NORTHEAST OHIO EMPLOYERS Ranked by full-time equivalent employees in Northeast Ohio FULL-TIME EQUIVALENT STAFF - JUNE 30, 2021 RANK

ORGANIZATION

LOCAL 1-YEAR CHANGE

WORLD

TYPE OF ORGANIZATION

TOP LOCAL EXECUTIVE

63,232

Health care provider

Tomislav "Tom" Mihaljevic, president, CEO

—

Health care provider

Cliff A. Megerian, CEO

1

CLEVELAND CLINIC, Cleveland 216-444-2200/clevelandclinic.org

44,665 0.6%

2

UNIVERSITY HOSPITALS, Cleveland 216-844-1000/uhhospitals.org

24,636 1 8.2%

3

GROUP MANAGEMENT SERVICES INC., Richfield 330-659-0100/groupmgmt.com

22,145 2 12.9%

35,048 2

Benefits and employment services firm

Michael Kahoe, president

4

MINUTE MEN COS., Cleveland 216-426-9675/minutemenhr.com

21,802 2 1.7%

53,217 2

Staffing, workers' compensation administration and employment services firm

Jay Lucarelli, CEO

5

U.S. OFFICE OF PERSONNEL MANAGEMENT, Washington, D.C. 202-606-1800/opm.gov

15,342 -0.1%

2,088,743

Federal government

Kiran Ahuja; Michael Rigas, directors

6

PROGRESSIVE CORP., Mayfield Village 800-776-4737/progressive.com

12,849 7.6%

44,233

Insurance company

S. Tricia Griffith, president, CEO

7

WALMART, Bentonville, Ark. 800-925-6278/walmart.com

12,400 0.4%

Operator of retail supercenters, groceries and warehouse club stores

Jessica Villanueva, regional vice president

8

GIANT EAGLE INC., Bedford Heights 412-967-4551/gianteagle.com

9,806 8.1%

34,000

Multi-format food, fuel and pharmacy retailer

Brian Ferrier Sr., VP, regional retail operations

9

STATE OF OHIO, Columbus 614-466-2000/ohio.gov

7,734 4.2%

45,137

State government

Mike DeWine, governor

10

CUYAHOGA COUNTY, Cleveland 216-443-7220/cuyahogacounty.us

7,336 -3.3%

7,336

County government

Armond Budish, county executive

11

CITY OF CLEVELAND, Cleveland 216-664-2406/city.cleveland.oh.us

7,244 3.4%

7,244

Municipal government

Frank G. Jackson, mayor

12

THE METROHEALTH SYSTEM, Cleveland 216-778-7800/metrohealth.org

6,948 -0.4%

6,948

Health care provider

Akram Boutros, president, CEO

13

AMAZON, North Randall 206-266-1000/amazon.com

6,840 4 —

Online retailer

—

14

SUMMA HEALTH, Akron 330.375.3000/summahealth.org

6,362 0.9%

—

Health care provider

Cliff Deveny, president, CEO

15

CLEVELAND METROPOLITAN SCHOOL DISTRICT, Cleveland 216-838-0000/clevelandmetroschools.org

5,791 -5.1%

5,791

Public school district

Eric S. Gordon, CEO

16

MERCY HEALTH, Cincinnati 513-952-5000/mercy.com

5,753 -12.8%

—

Health care provider

Edwin M. Oley, market president, Mercy Health Lorain; John Luellen, market president, Mercy Health Youngstown

17

AULTMAN HEALTH FOUNDATION, Canton 330-452-9911/aultman.org

5,667 -0.2%

—

Health care provider

Rick Haines, CEO

18

KEYCORP, Cleveland 216-689-6300/key.com

5,648 -0.5%

17,122

Banking and financial services company

Christopher M. Gorman, chairman, president, CEO

19

AKRON CHILDREN'S HOSPITAL, Akron 330-543-1000/akronchildrens.org

5,344 1%

5,444

Pediatric health care provider

Grace Wakulchik, president, CEO 6

20

CASE WESTERN RESERVE UNIVERSITY, Cleveland 216-368-2000/case.edu

4,606 3.3%

4,606

Private university

Eric W. Kaler, president

21

THE SHERWIN-WILLIAMS CO., Cleveland 216-566-2000/sherwin-williams.com

4,569 -1.3%

55,993

Manufacturer of paint, coatings and related products

John G. Morikis, chairman, president, CEO

22

SWAGELOK CO., Solon 440-248-4600/swagelok.com

4,335 1.4%

5,531

Manufacturer of industrial fluid system products and assemblies

Thomas F. Lozick, chairman, CEO

23

KENT STATE UNIVERSITY, Kent 330-672-3000/kent.edu

4,258 -11.6%

4,550

Public university

Todd Diacon, president

24

FIRSTENERGY CORP., Akron 800-736-3402/firstenergycorp.com

4,009 0.1%

12,144

Electric utility holding company

Steven E. Strah, president, CEO

25

HUNTINGTON NATIONAL BANK, Cleveland 800-480-2265/huntington.com

3,593 10.5%

22,047

Banking and financial services company

Sean P. Richardson, regional president, Cleveland

26

FORD MOTOR CO., Brook Park 313-322-3000/ford.com

3,490 7 -0.8%

186,000 7

Automobile manufacturer

Kevin Heck, plant manager, Cleveland Engine Plant; Jason Moore, plant manager, Ohio Assembly Plant

27

AKRON PUBLIC SCHOOLS, Akron 330-761-1661/akronschools.com

3,435 -4.1%

3,435

Public school district

Christine Fowler-Mack, superintendent

28

NESTLE USA, Solon 440-349-5757/nestleusa.com

3,184 —

—

Food and beverage company

Steve Presley, chairman and CEO, Nestle USA

29

MTD PRODUCTS INC., Valley City 330-225-2600/mtdproducts.com

3,000 8 —

—

Manufacturer of outdoor power equipment

Robert T. Moll, chairman, CEO, and president

2,300,000 3

1,298,000 5

NOTES: 1. Includes Lake Health System, which joined UH in April 2021. 2. This is a staffing firm; the vast majority of these employees work on behalf of other companies. 3. Total employment as of January 2021. 4. Estimate from MWPVL International; total employment; excludes Whole Foods. 5. Total employment as of December 2020. 6. Christopher A. Gessner is slated to become president and CEO on Oct. 18. 7. Total employment. 8. As of March 2021.

See 100 LARGEST EMPLOYERS on page 17 16 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

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FULL-TIME EQUIVALENT STAFF - JUNE 30, 2021 RANK

ORGANIZATION

LOCAL 1-YEAR CHANGE

WORLD

TYPE OF ORGANIZATION

TOP LOCAL EXECUTIVE

30

GOODYEAR TIRE & RUBBER CO., Akron 330-796-2121/goodyear.com

2,868 0.1%

69,225

Tire manufacturer

Richard J. Kramer, chairman, president, CEO

31

LINCOLN ELECTRIC HOLDINGS, Euclid 216-481-8100/lincolnelectric.com

2,752 -4.2%

10,700

Manufacturer of arc welding, cutting and robotic products

Christopher L. Mapes, chairman, president, CEO

32

SUMMIT COUNTY, Akron 330-643-2520/co.summitoh.net

2,732 -0.9%

2,732

County government

Ilene Shapiro, county executive

33

DISCOUNT DRUG MART INC., Medina 330-725-2340/discount-drugmart.com

2,521 2.8%

2,836

Regional drug store chain

Don Boodjeh, CEO

34

HOME DEPOT, Atlanta 770-433-8211/homedepot.com

2,500 —

Home improvement retailer

Crystal Hanlon, division president, northern

35

MEDICAL MUTUAL OF OHIO, Cleveland 216-687-7000/medmutual.com

2,342 -0.7%

2,903

Health insurance company

Rick A. Chiricosta, chairman, president, CEO

36

GOJO INDUSTRIES INC., Akron 330-255-6000/gojo.com

2,240 26.7%

2,896

Manufacturer of skin health and surface hygiene products

Carey Jaros, president, CEO; Marcella Kanfer Rolnick, executive chair

37

GANLEY AUTO GROUP, Brecksville 440-584-8202/ganleyauto.com

2,201 2.5%

—

Auto dealership group

Kenneth G. Ganley, president, CEO

38

THE LUBRIZOL CORP., Wickliffe 440-943-4200/lubrizol.com

2,133 -1.3%

8,554

Specialty chemical company

J. Christopher Brown, president, CEO

39

GREATER CLEVELAND REGIONAL TRANSIT AUTHORITY, Cleveland 216-621-9500/riderta.com

2,063 -0.8%

2,063

Public transit agency

India Birdsong, general manager, CEO

40

SCHAEFFLER GROUP USA, Wooster 330-264-4383/schaeffler.us

2,000 0%

—

Manufacturer of transmission system components and electric mobility products

Marc L. McGrath, CEO, Americas

41

SIGNET JEWELERS, Akron 330-668-5000/signetjewelers.com

1,980 -18.1%

21,700 2

Jewelry retailer

Virginia C. Drosos, CEO

42

STERIS, Mentor 440-354-2600/steris.com

1,937 3 0%

16,000

Infection prevention products and services provider

Daniel A. Carestio, president, CEO

43

CLEVELAND-CLIFFS INC., Cleveland 216-694-5700/clevelandcliffs.com

1,900 4 1,483.3%

25,000

Flat-rolled steel producer

Lourenco Goncalves, chairman, president, CEO

44

SOUTHWEST GENERAL, Middleburg Heights 440-816-8000/swgeneral.com

1,899 0.2%

1,900

Health care provider

William A. Young Jr., president, CEO

45

THE J.M. SMUCKER CO., Orrville 330-682-3000/jmsmucker.com

1,822 -9.5%

6,946

Packaged food, coffee and pet food manufacturer

Mark T. Smucker, president, CEO

46

CITY OF AKRON, Akron 330-375-2316/akronohio.gov

1,805 -1.2%

1,805

Municipal government

Daniel Horrigan, mayor

47

PARKER HANNIFIN CORP., Mayfield Heights 216-896-3000/parker.com

1,800 0%

54,640

Provider of motion and control technologies

Thomas L. Williams, chairman, CEO

48

HYLAND, Westlake 440-788-4988/hyland.com

1,767 -16.8%

4,220

Content services software developer

Bill Priemer, president, CEO

49

AVERY DENNISON, Mentor 440-534-6000/averydennison.com

1,760 21.2%

32,785

Materials science company specializing in labeling/functional materials

Jeroen Diderich, VP and GM, Label and Graphic Materials North America

50

UNIVERSITY OF AKRON, Akron 330-972-7111/uakron.edu

1,755 -8.7%

1,755

Public urban research university

Gary L. Miller, president

51

HEINEN'S INC., Warrensville Heights 216-475-2300/heinens.com

1,738 5 3.3%

Grocery store chain

Jeffrey Heinen; Tom Heinen, co-presidents

52

TIMKENSTEEL CORP., Canton 330-471-7000/timkensteel.com

1,732 -12.9%

1,881

Customized alloy steel products and services provider

Michael S. Williams, president, CEO

53

HOWMET AEROSPACE (FORMERLY ARCONIC INC.), Cleveland 216-641-3600/howmet.com

1,667 -10.2%

19,700

Engineered metal manufacturing company for aerospace and transportation

Merrick Murphy, president, Howmet Engineered Structures; Randall Scheps, president, Howmet Forged Wheels

54

WESTFIELD, Westfield Center 330-887-0101/westfieldinsurance.com

1,612 -3.8%

2,299

Insurance, banking and financial services company

Edward Largent, president, CEO, board chair

55

WALGREENS BOOTS ALLIANCE, Deerfield, Ill. 847-315-3700/walgreens.com

1,511 0.7%

Retail pharmacy chain

Stefano Pessina, executive chairman; Rosalind Brewer, CEO

56

JOANN INC., Hudson 330-656-2600/joann.com

1,500 0%

—

Craft and fabric retailer

Wade D. Miquelon, president, CEO

57

MAHONING COUNTY, Youngstown 330-740-2130/mahoningcountyoh.gov

1,478 -0.8%

1,478

Local government

Board of commissioners

58

LAKE COUNTY, Painesville 440-350-2745/lakecountyohio.org

1,423 -1.4%

1,423

County government

Ron Young; Jerry Cirino; John Hamercheck, commissioners

504,800 1

—

330,000 6

NOTES: 1. Total employment as of January 2021. 2. As of January 2021. 3. Company estimate. 4. Increase reflects acquisition of ArcelorMittal USA in December 2020. 5. As of March 2021. 6. Full-time only as of December 2020.

See 100 LARGEST EMPLOYERS on page 18 AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 17

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CRAIN'S LIST | 100 LARGEST NORTHEAST OHIO EMPLOYERS Ranked by full-time equivalent employees in Northeast Ohio FULL-TIME EQUIVALENT STAFF - JUNE 30, 2021 RANK

ORGANIZATION

LOCAL 1-YEAR CHANGE

WORLD

TYPE OF ORGANIZATION

TOP LOCAL EXECUTIVE

Natural gas distributor

Jim E. Eck, VP, GM, Ohio & West Virginia Distribution

59

DOMINION ENERGY OHIO, Cleveland 800-362-7557/dominionenergy.com

1,398 -9.1%

—

60

PARMA CITY SCHOOL DISTRICT, Parma 440-842-5300/parmacityschools.org

1,366 0.8%

1,366

Public school district

Charles Smialek, superintendent

61

PPG, Cleveland 412-434-3131/ppg.com

1,346 -9.6%

50,000

Paint, coatings and specialty materials company

Greg Kerr, Cleveland plant manager

62

CHARLES RIVER LABORATORIES, Ashland 419-289-8700/criver.com

1,321 1.1%

19,378

Contract research organization

Andy Vick, corporate VP, regional general manager

63

BWX TECHNOLOGIES INC., Euclid 216-912-3000/bwxt.com

1,320 6.5%

6,700

Pressure vessels, steam generators and electro-mechanical parts provider

Dave Broussard, GM, BWXT Nuclear Operations Group Barberton; Chris Rhodes, GM, BWXT Nuclear Operations Group Euclid

64

UNITEDHEALTHCARE, Cleveland 800-468-5001/uhc.com

1,300 4%

—

Health insurance provider

Neal Grode, executive director, Northern Ohio

65

CLEVELAND STATE UNIVERSITY, Cleveland 216-687-2000/csuohio.edu

1,276 -12.7%

1,276

Public university

Harlan M. Sands, president

66

YELLOW CORP. (FORMERLY YRC WORLDWIDE), Akron 800-610-6500/myyellow.com

1,274 0%

30,000

Less-than-truckload freight transportation provider

Scott McCormick, area vice president

67

CUYAHOGA COMMUNITY COLLEGE, Cleveland 216-987-6000/tri-c.edu

1,264 -11.1%

1,264

Community college

Alex Johnson, president

68

DIEBOLD NIXDORF INC., North Canton 330-490-4000/dieboldnixdorf.com

1,260 7.7%

22,000

Financial, retail self-service technology and services provider

Gerrard B. Schmid, president, CEO

69

EATON, Beachwood 440-523-5000/eaton.com

1,221 1 -12.8%

96,000 1

Manufacturer of electrical, aerospace, hydraulic and vehicle products

Craig Arnold, chairman, CEO

70

EMBASSY HEALTHCARE, Beachwood 216-378-2050/embassyhealthcare.net

1,200 2 —

3,500

Short- and long-term skilled nursing, assisted living

Aaron Handler, president; George Repchick, CEO

71

SHEARER'S FOODS LLC, Massillon 330-834-4030/shearers.com

1,171 -1.2%

4,392

Manufacturer of snack foods

Bill Nictakis, chairman, CEO

72

COVELLI ENTERPRISES INC., Warren 330-856-3176/covelli.com

1,100 2 —

Franchisee of bakery-cafe fast casual restaurants

Sam Covelli, CEO

73

BRIDGESTONE AMERICAS INC., Akron 330-379-7000/bridgestoneamericas.com

1,099 -14.1%

48,729

Tire manufacturer

Nizar Trigui, chief technology officer and group president, solutions businesses

74

GENERAL MOTORS CO., Parma 216-265-5000/gm.com

1,083 10.7%

—

Automobile manufacturer

Kareem Maine, Parma plant director

75

YOUNGSTOWN STATE UNIVERSITY, Youngstown 330-941-3000/ysu.edu

1,050 2.3%

1,050

Public university

James Tressel, president

76

SPRENGER HEALTH CARE SYSTEMS, Lorain 440-989-5200/sprengerhealthcare.com

1,043 3 -11.6%

—

Senior housing and care continuum services provider

Nicole Sprenger, CEO; Michael Sprenger, COO

77

JPMORGAN CHASE & CO., Cleveland 800-935-9935/chase.com

1,039 -4.2%

—

Banking and financial services company

Rudy Bentlage, executive director, commercial banking and market executive, Northeast Ohio

78

MEDINA COUNTY, Medina 330-723-3641/medinaco.org

1,027 -0.1%

1,027

County government

Stephen D. Hambley; Colleen M. Swedyk; William Hutson, commissioners

79

RPM INTERNATIONAL INC., Medina 330-273-5090/rpminc.com

1,027 3.3%

15,500

Provider of specialty coatings, sealants and building materials

Frank C. Sullivan, chairman, president, CEO

80

ASSOCIATED MATERIALS LLC, Cuyahoga Falls 330-929-1811/associatedmaterials.com

1,019 -0.2%

—

Manufacturer of exterior building products

Brian C. Strauss, president, CEO

81

CARDINAL HEALTH AT-HOME, Twinsburg 330-963-6996/cardinalhealth.com

1,000 4 —

—

Provider of medical supplies delivered directly to consumers

—

82

PORTAGE COUNTY, Ravenna 330-297-3600/co.portage.oh.us

987 1.4%

987

County government

Anthony Badalamenti; Vicki A. Kline; Sabrina Christian-Bennett, commissioners

83

OHIOGUIDESTONE, Berea 440-234-2006/ohioguidestone.org

969 —

—

Behavioral health services provider

Richard R. Frank, president, CEO

84

DANBURY SENIOR LIVING, North Canton 330-497-6565/danburyseniorliving.com

952 -6.4%

—

Senior living provider offering independent living, assisted living and memory care

Bill Lemmon, CEO

85

FEDERAL RESERVE BANK OF CLEVELAND, Cleveland 216-579-2000/clevelandfed.org

939 —

1,081

U.S. central bank

Loretta J. Mester, president, CEO

86

NOMS HEALTHCARE, Sandusky 419-626-6161/nomshealthcare.com

921 5 4.9%

—

Independent multi-specialty physician group

Joshua G. Frederick, CEO

—

NOTES: 1. Includes employees from Eaton's hydraulics business, which was sold to Danfoss A/S on Aug. 2. 2. Company estimate. 3. As of March 2021. 4. Crain's estimate. 5. Full-time only.

See 100 LARGEST EMPLOYERS on page 19 18 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

P018_CL_20210830.indd 18

8/27/2021 1:36:21 PM

FULL-TIME EQUIVALENT STAFF - JUNE 30, 2021 RANK

LOCAL 1-YEAR CHANGE

ORGANIZATION

87

INFOCISION, Akron 330-668-1400/infocision.com

88

WORLD

TYPE OF ORGANIZATION

TOP LOCAL EXECUTIVE

Telemarketing/direct marketing firm

Craig Taylor, CEO; Karen Taylor, board chair

908 1 -13.2%

—

THE TIMKEN CO., North Canton 234-262-3000/timken.com

882 -13%

17,000

Manufacturer of engineered bearings and power transmission products

Richard G. Kyle, president, CEO

89

THE DAVEY TREE EXPERT CO., Kent 330-673-9511/davey.com

872 12.2%

10,591

Tree services, grounds maintenance and consulting services firm

Patrick M. Covey, president, CEO

90

STEP2 DISCOVERY, Streetsboro 330-656-0440/step2.com

866 19.6%

1,200

Manufacturer of toys; rotational molder of plastics

Anthony M. Ciepiel, CEO

91

UNITED AIRLINES HOLDINGS INC., Cleveland 216-501-5170/united.com

855 -14.5%

69,244

Airline

Louis Smilanich, general manager

92

SHAKER HEIGHTS CITY SCHOOL DISTRICT, Shaker Heights 216-295-1400/shaker.org

843 -0.5%

843

Public school district

David Glasner, superintendent

93

OBERLIN COLLEGE, Oberlin 440-775-8460/oberlin.edu

842 -12%

842

Private college

Carmen Ambar, president

94

THIRD FEDERAL SAVINGS AND LOAN, Cleveland 800-844-7333/thirdfederal.com

827 0.2%

991

Savings and loan

Marc A. Stefanski, chairman, president, CEO

95

WESTERN RESERVE HOSPITAL, Cuyahoga Falls 330-971-7000/westernreservehospital.org

818 2.6%

818

Health care provider

Robert A. Kent, president, CEO

96

DAVE'S SUPERMARKETS, Bedford Heights 216-763-3200/davesmarkets.com

796 -4.3%

848

Supermarket operator

Daniel Saltzman, president

97

MEDINA CITY SCHOOLS, Medina 330-725-8831/medinabees.org

792 1.8%

792

Public school district

Aaron Sable, superintendent

98

GEAUGA COUNTY, Chardon 440-285-2222/co.geauga.oh.us

790 -2.3%

790

County government

Ralph Spidalieri; Timothy Lennon; James Dvorak, commissioners

99

GREAT LAKES CHEESE, Hiram 440-834-2500/greatlakescheese.com

780 5.5%

3,505

Packager and manufacturer of natural and processed cheese

Dan Zagzebski, president, CEO

ST. VINCENT CHARITY MEDICAL CENTER, Cleveland 216-861-6200/stvincentcharity.com

775 -7.2%

775

Health care provider

Janice G. Murphy, president, CEO

100

Research by Chuck Soder (csoder@crain.com) | Information is from the organization unless otherwise noted. Listed cities in most cases represent the location of the organization's primary local office, though a few organizations headquartered elsewhere list cities outside Northeast Ohio. NOTES: 1. As of March 2021.

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 19

P019_CL_20210830.indd 19

8/27/2021 1:35:37 PM

Remote work here to stay for companies on Largest Employers list

BY CHUCK SODER

Many of the region’s biggest private sector employers plan to let employees keep working from home at least some of the time, judging by a survey of companies on the full digital version of our 100 Largest Northeast Ohio Employers list.

But if you work for a government entity that responded to the survey, you’re probably going back to the office — if you’re not back already.

Of the 151 employers on the extended Excel version of the list, 79, or 52%, answered this multiple-choice question: “Regarding local employees who began working remotely when the pandemic began: Will your firm require them to come back to the office?”

Only three of the 36 private sector employers that answered the question said, “Yes, they’re back or will soon be back full time.” But 21 of the 27 government entities answering the question chose that option.

On the flip side, 27 private employers, 75% of those that answered the question, selected one of three options stating that they’ll let employees work remotely one or more days per week. Only five government employers, 18.5%, chose one of those options.

Nonprofits fell in the middle: seven plan to call employees back full time, and seven will allow some degree of remote work.

And the percentage of private employers allowing remote work could be an understatement. Of the seven other respondents that picked “We’re still deciding,” five were businesses.

This may explain some of the vast gap between businesses and other employers. More than half of the respondents asking employees to come back full time were either public school districts or colleges, and many of their employees need to interact with students.

Many respondents explained

their answers. A few organizations calling employees back full time cited reasons like collaboration and the development of employees and an organizational culture. Those letting employees continue working remotely said the hybrid model can provide those benefits while also being good for morale, recruitment, retention and, in some cases, productivity.

As for the list ...

As always, our 100 Largest Northeast Ohio Employers list is topped by the Cleveland Clinic at No. 1 with 44,665 full-time equivalent local employees. Though University Hospitals at No. 2 is significantly smaller with 24,636, that figure grew by 8.2% in the 12 months ending June 30, as UH acquired Lake Health in April 2021. The next two companies — Group Management Services of Richfield and Minute Men Cos. of Cleveland — are employment services firms, so most of their employees work on-site at other companies.

Despite the economic turmoil caused by the COVID-19 pandemic, most organizations on the list continued to expand. Combined local employment for the top 100 grew by 1.55%, or 1.39% for the 151 employers on the full digital list, which is available to Crain’s Data Members. By far (and we mean FAR) the company that saw the greatest percentage growth was Cleveland-Cliffs. Its local employee base grew more than 1,480% when it acquired ArcelorMittal USA and its Cleveland steel mill in December 2020. Next up was Akron-based GOJO Industries, which logged a 26% local employment increase in the 12 months ending June 30, largely due to a huge pandemic-fueled increase in demand for Purell and other sanitization products.

Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

Remote work policies Many businesses on the extended digital version of our Largest Northeast Ohio Employers list say they plan to let local employees continue working from home. The story is much different for nonprofits and government entities.

Business

Nonprofit

Government

Employees are back or will soon be back full time 3 7 21 Employees can work remotely a few days a week 20

4

5

Employees can work remotely one day a week 4 3 Employees can work remotely full time 3 Company is still deciding 5 1 1 Employees worked in the office through the pandemic 1 1 SOURCE: CRAIN’S CLEVELAND BUSINESS SURVEY. Of the 150 companies on the list, 79 responded to questions about their remote work policies: 36 in business, 16 nonprofit and 79 government.

WORKERS

From Page 1

“When people were home for a year with the pandemic, they really got to think about their priorities and what would be a dream job for them,” said Rebecca Bosl, a Cleveland-area career coach and resume writer who works with clients across the nation. “They also got a taste of working remotely and decided that they really liked it.”

In a report published in March, Microsoft predicted that 41% of workers globally were likely to consider a job change within a year. Women and young employees, ages 18 to 25, are particularly inclined toward remote positions, according to data culled from LinkedIn. “Employees want control of where, when and how they work, and expect businesses to provide options,” read the Microsoft report, based on a survey of more than 31,000 people. “The decisions business leaders make in the coming months to enable flexible work will impact everything from culture and innovation to how organizations attract and retain top talent.”

Erin Bergant Harrod quit her job at a local architecture firm in January, in the middle of her unpaid maternity leave.

She and her husband had been working remotely since early 2020, when they pulled their two older children out of daycare as stay-home orders and government shutdowns set in.

Health concerns played a role in her resignation. Her former boss started pressing her to come back to the office “way before it was better. Way before,” said Bergant Harrod, 33.

But flexibility was the deciding factor. Now Bergant Harrod is building her side hustle, an interior design business called Heartfelt Homespace Inc., into a fulltime job.

When the family was stuck at home last year, she saw more of her children. She didn’t miss the evening rush of daycare pickup and dinner preparations — and the inevitable meltdowns. The family ate lunch together and went for walks near their home in Painesville.

Her husband, a physician recruiter for University Hospitals, has opted to keep working remotely.

“It’s not worth it. It’s not worth the stress,” Bergant Harrod said of commuting and working from an office while juggling a 5-year-old, a toddler and an infant.

Resuming pre-pandemic work habits was a non-starter for Jessica Hollis, who recently resigned from her job as a document control specialist at the Northeast Ohio Regional Sewer District.

When the district sent office workers home in March 2020, Hollis was ill-prepared. She had no internet access.

Within months, though, she adapted.

“I always knew that I’d love to work from home,” said Hollis, a self-proclaimed introvert who lives with a dog and a cat in Doylestown, southwest of Akron.

“The first couple of months were a little traumatic, because I think it was forced. But probably by June, I was like ‘Yup, this is where I’m

Resignations are at record-high levels Almost 3.8 million people, or roughly 2.7% of U.S. workers, quit in June. The pandemic is contributing to a surge in job departures as employees seek better opportunities — some of them fully remote.

4M 3,992,000

3,034,000

2,107,000

2M

Jan. ’18

Jan. ’19

Jan. ’20

Jan. ’21

SOURCE: U.S. DEPARTMENT OF LABOR. NOTE: THE DATA SHOW DEPARTURES FROM NON-FARM JOBS AND ARE SEASONALLY ADJUSTED. JUNE FIGURES ARE PRELIMINARY.

20 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

P020_P021_CL_20210830.indd 20

Top: thro land Educ Nort early this pand been desi Com

Abov atto work Shak milli have are w COV oppo bala

3M Number of workers who quit

DATA SCOOP

8/27/2021 12:40:54 PM

GUS C

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000

Top: Kris Balestra takes a stroll through her backyard, which she landscaped. Balestra worked for the Educational Service Center of Northeast Ohio. She decided to retire early rather than return to the office this year, due to concerns about the pandemic and public health. She has been studying to become a landscape designer, taking classes at Cuyahoga Community College.

Above: The pandemic showed attorney Brooke Tyus that remote work was possible. The 37-year-old Shaker Heights resident is among the millions of people nationwide who have quit their jobs this year. Some are worried about the spread of COVID-19. Others are pursuing new opportunities or better work-life balance.

GUS CHAN FOR CRAIN’S CLEVELAND BUSINESS

staying.’ ” By the time the sewer district reopened its Cleveland headquarters and ended telecommuting, Hollis had four job offers — three of them fully remote, with out-of-state employers.

In July, the 46-year-old started working as a technical writer for a company based in Virginia.

“Office environments are stressful,” Hollis said. “For me, personally, I get migraines with overhead lights and perfume. I can’t control the overhead lights and perfumes in an office. I can’t ask everybody to leave their lotions at home.”

Her brother, Nick, also made a jump during the pandemic.

Motivated by a better title and a bigger paycheck, he left a graphic design gig in Independence last fall for a remote job with a mortgage banking firm on the West Coast.

In May, after getting vaccinated against COVID-19, he took to the road.

Now the 38-year-old describes himself as a digital nomad. He gave up his Northeast Ohio address and is traveling the country, working from Airbnbs and hiking during his free time.

“I feel like remote work, at first, was a bit of a struggle,” he said. “But I’ve been able to make a consistent habit out of my work schedule, and I’ve really been able to kind of make it work for me. So I don’t know why I would take another position that didn’t have this option.”

Research from consulting firms, employers and job search websites indicates that the swell in resignations is likely to continue.

Professional services firm PwC reported this month that 44% of employees want the option to be remote at least three days a week, based on a survey of full-time and part-time workers. A spring survey for FlexJobs, a job site focused on flexible work, found that fear of ex-

posure to the coronavirus remained a major barrier to repopulating offices.

Balestra, who once hoped to stay at her job for another year or two, quit when the pandemic seemed to be abating. She feels even more confident in her choice now, as the Delta variant drives up cases and hospitalizations.

“Unfortunately, I have someone in my home who is not vaccinated and can’t be at this point in time,” she said. “I have not just my own considerations, but I have family considerations as well.”

In the FlexJobs survey, 34% of workers said they were not looking forward to office politics and distractions. A quarter of respondents were reluctant to leave family members or pets. And 15% cited childcare needs or other caregiving responsibilities as challenges.

Bosl, the career coach, is talking to more clients who want remote or hybrid positions.

She cautioned that there are trade-offs, though. Employees who rarely or never come into the office are more likely to get passed over for promotions and other opportunities. Workers who are out of sight are not necessarily foremost in their bosses’ minds.

In spring 2020, Bosl worked with clients who were frantic to update their resumes as large segments of the economy shut down and layoffs spiked. Now her customers are feeling much more secure. They don’t just want a job. They want work they will enjoy.

Some of them are burnt out. Others are contemplative.

“People have thought about what’s important ... but they’ve also thought about how well or poorly their company has treated them during the pandemic,” she said. “If a company has treated them well, they’re more likely to stay.”

When Brooke Tyus left the lawfirm world in May, she took a pay cut and sacrificed the last two months of her paid maternity leave.

Tyus, a 37-year-old mother of three, had no complaints about her job as an associate at the Benesch firm in downtown Cleveland. But the pandemic showed her that she could pull off remote work. And with an infant at home, she was open to a change of pace.

Then an opportunity popped up to become an in-house lawyer for Wendy’s, the fast-food restaurant company based in the Columbus area. The job is fully remote.

“I am the executive in my home, even though I am the woman, and so I needed to have a scenario where I knew I could do the good work that I can do — but with flexibility,” said Tyus, whose husband is a musician.

Working from her home in Shaker Heights, she does not feel pressure to dress up or to style her hair in a certain way. She’s unburdened by the self-consciousness that she felt when she was the only Black person, or only Black woman, in an office.

She also has more energy to cook, to tidy up the house and to spend time with her husband and her children, ages 9, 5 and 6 months.

“I want to go to work,” Tyus said.

“I feel good. I don’t have the mom guilt that I had before. And when you have happy employees, you have good productivity.”

Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

LAWS

care needed, and if there are areas struggling, we need to allow telemedicine services to bring in the From Page 4 specialists and subspecialists,” “There are areas that are strug- Fertel said.

Roegner is not done yet. In the gling (with COVID-19 Delta variant outbreaks) and could use phy- fall session, she hopes to see more sicians,” said Dr. Baruch Fertel, an hearings and a possible vote on emergency medicine physician at Senate Bill 204, which would crethe Cleveland Clinic and chair of ate licensure portability for prothe government affairs committee fessional counselors with memwith the American College of bership in the Counseling Emergency Physicians Ohio Chap- Compact.

She also is a primary sponsor of ter.

Senate comprehensive The new laws are widely supC R A I N ’ S C L E V E L A N D B U S I N E S S | S E P T E M B EBill R 3 131, - 9 , 2a018 | PA G E 21 ported in part because of that licensure reciprocity bill that would permit any out-of-state emergency need, he said.

“Wouldn’t it be convenient if licensee with two or three years of there was an easy way for people to experience in their field to obtain get licensed in different states? an Ohio license to practice their They would be able to go there to profession. That bill is expected to have a third hearing in committee help out,” Fertel said.

“It is all the same board certifi- in June, she said.

In Ohio, nearly 18% of workers cation,” he added. “We all have the same standards to be a physician. require a license for an occupaThis bill just makes a uniform pro- tion, Roegner said. It’s not feasible to transfer those credentials, she cess to apply.”

Fertel and the Cleveland Clinic said, which hurts the state’s push support Ohio joining the medical for skilled workers.

RECEIVER OR “If we truly want to expand compact and the potential it pro34,900± S vides to offer specialized care in Ohio’s workforce, we need to get Incredible In these regulatory roadblocks out of underserved areas.

“There are a lot of areas that the way,” she said. don’t have emergency physicians and areas that don’t have access to Kim Palmer: kpalmer@crain.com, the full complement or levels of (216) 771-5384, @kimfouroffive

Crain’s C 2x4, Augu

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AUCTION

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DISCLAIMER: The information contained herein is subject to independent inspection and verification by all parties relying on it. No liability for its inaccuracy, errors or omissions is assumed by the sellers or broker/ auctioneer. All acreage, square footage, and dimensions are approximate. This offering may be withdrawn, modified, or canceled without notice at any time. Each property is subject to prior sale. This is not a solicitation or offering to residents of any state or jurisdiction where prohibited by law.

AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 21

P020_P021_CL_20210830.indd 21

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DISCLAIMER: The information contained h auctioneer. All acreage, square footage, a solicitation or offering to residents of any st

8/27/2021 12:41:23 PM

PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainscleveland.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ACCOUNTING

ACCOUNTING

BANKING

COLLEGES

INSURANCE / FINANCIAL SERVICES

Apple Growth Partners

Apple Growth Partners

Westfield Bank

Notre Dame College

NFP

Matthew J. Silla, ASA, CFA, has been promoted to principal.

As an Accredited Senior Appraiser (ASA), Matt has been responsible for the development of several hundreds of business valuation engagements for a variety of businesses and ownership interests covering various industries. Matt has more than 15 years of professional experience and has focused exclusively on valuation services since 2004.

Matt is a member of The ESOP Association and the Ohio Employee Ownership Center.

Kenneth Banchek, CPA, has been promoted to senior manager in the tax department.

Westfield Bank is proud to celebrate the promotion of James E. LaRocca to executive vice president, chief financial officer. LaRocca joined the Westfield Bank team in 2010 as the accounting & operations manager before being promoted to vice president, assistant controller, then to senior vice president, controller in 2016.

Additionally, he is a board member of the American Heart Association, graduate of Baldwin-Wallace University, and serves on the Baldwin-Wallace Accounting Advisory Board.

Notre Dame College welcomes Terri Bradford Eason as the new Chair of its Board of Trustees. A parent, South Euclid resident, and Senior Director of Gift Giving and Professional Advisor Relations at The Cleveland Foundation, she looks forward to celebrating the College’s 100th Anniversary in 2022. Eason serves on the Cleveland Hearing and Speech Center board and is a member of the NAACP and the National Black MBA Association, among many other charitable organizations as varied as her interests.

NFP Cleveland welcomes Kate Hubben, Vice President, and Ben Katz, Senior Vice President, of NFP Hubben Corporate Benefits.

Combined, Hubben and Katz have over 40 years of Employee Benefits experience with companies of all sizes. They are dedicated leaders with an uncompromising commitment to serving our clients. We look forward to them driving success that will elevate our client Katz experience. NFP is a leading insurance broker and consultant providing specialized corporate benefits, property and casualty, retirement, and individual solutions through its licensed subsidiaries and affiliates. We enable client success through innovative technology and enduring relationships with a commitment to exceeding clients’ expectations.

ACCOUNTING

Apple Growth Partners Bethany (Dria) Lawrence, ASA, has been promoted to manager in the business valuation department. She specializes in litigation services. Bethany is a member of Accelerating Corporate Growth and Women in Transactions, American Society of Appraisers (ASA), and Women’s Network (Akron Chamber of Commerce).

Bethany is the Treasurer & Board Member of International Soap Box Derby. She earned a Bachelor of Science in Business Administration in Finance from Ashland University.

ACCOUNTING

Apple Growth Partners Eric Flickinger, CPA, ABV, has been promoted to senior manager in the business valuation department. He is a member of the The ESOP Association, National Center for Employee Ownership, American Institute of Certified Public Accountants, Ohio Society of Certified Public Accountants, and Ohio Employee Ownership Center.

BANKING

Fifth Third Securities As Director, Investment Banking, Matt Francati assists business owners, entrepreneurs and management teams in evaluating mergers and acquisitions and related capital markets opportunities. He has a finance degree from Miami University and more than 10 years’ investment banking experience.

BANKING

Westfield Bank Westfield Bank is pleased to announce Jason A. Murdick has been promoted to senior vice president, controller. With experience in multiple industries—manufacturing, insurance, and banking—Murdick started with Westfield Insurance seven years ago as a tax compliance manager, then corporate tax director, then moved to assistant controller at Westfield Bank. He earned a Bachelor of Arts degree in accounting and finance from Walsh University.

NEW GIG?

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C O NTAC T

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Laura Picariello, Reprints Sales Manager lpicariello@crain.com (732) 723-0569

22 | CRAIN’S CLEVELAND BUSINESS | AUGUST 30, 2021

LAW CONSTRUCTION

Bonezzi Switzer Polito & Hupp Co. L.P.A.

Tober Building Company

Bonezzi Switzer Polito & Hupp Co. L.P.A. congratulates attorney Jeffrey W. Van Wagner who was recently recognized by Best Lawyers as the 2022 “Lawyer of the Year” for Medical Malpractice Law – Defendants in the Cleveland area. For more information, visit www.bsphlaw. com.

Josh Sours & Nate Kellogg both joined Tober Building Company in 2021 and serve as Project Manager and Project Sours Superintendent respectively. With over 30 years combined experience in Construction, Josh and Nate have successfully completed numerous projects in the healthcare, education, and commercial fields, on projects upward of $180MM. Josh’s past roles as estimator, scheduler, engineer, Kellogg and superintendent, give him a robust skillset. His attention to detail and quality management skills, drive him to exceed all client expectations on projects. Nate utilizes his experience as a Carpenter, Foreman, and Superintendent to motivate and educate his field team, while ensuring safety adherence and reliability for hitting project milestones and deadlines.

NONPROFITS

Greater Cleveland Food Bank Valissa Turner Howard, Esq. has been named to the new position of Vice President of Talent & Legal Affairs. She will lead our talent development, human resources, volunteer engagement and legal affairs.

She will oversee our human resources and volunteer services teams, leading in recruiting, developing and mobilizing top-notch talent. She will also lead our work to ensure that diversity, equity and inclusion are strengths of our organization.

CARS

From Page 1

New vehicle inventories are at record lows, said Lou Vitantonio, president of the Greater Cleveland Automobile Dealers’ Association in Broadview Heights. The association represents about 280 franchise locations in 24 counties in Northern Ohio.

The pandemic put pressure on the auto industry. There were the mass shutdowns early on, but there have also been issues up and down the supply chain as companies of all sizes struggled to find enough employees to make and ship parts.

“Everybody’s talking about the chip crisis, the semiconductors. That’s one of many pieces to a vehicle that have to be there on time to start and continue operations,” Vitantonio said.

But demand has remained strong, putting more emphasis on the demand for late-model used vehicles, from retail consumers and from customers like rental car companies that are also struggling to buy new vehicles. Those used cars have been hard to find, too, driving up prices.

Vitantonio has been with the association for 25 years and said he couldn’t remember a market quite like this.

“We’ve had bankruptcies. We’ve had inflation. We’ve had bankruptcies in the manufacturing. We’ve had downturns in the economy. Those are all led by or a lead indicator is automobile sales. And this one has been the complete opposite where we’re limited in what we can produce, and

what is available to the consumer is driving demand not only in new and used cars,” Vitantonio said.

The association tracks car, truck and SUV sales in a 21-county region in Northeast Ohio. Year-to-date, consumers in the region had purchased 153,945 new vehicles as of July, as well as 143,932 used vehicles. That’s an increase of about 18% year-over-year for new vehicles, and of about 13% for used vehicle sales.

Ken Ganley, who has spent more than 30 years in the auto industry, also said he’s never seen a market like this one. Typically, his dealerships try to keep a 60- to 90-day supply of inventory. That’s down to seven to 10 days at many stores.

The Ganley Automotive Group, where he’s president and CEO, has 43 locations across Ohio, Pennsylvania and Florida, selling about 70,000 vehicles a year. Ganley said that, typically, about 60% of the vehicles the company sells are new. Today, it’s closer to 50-50, with used vehicle sales surpassing new in some locations.

But customers get it, he said. They know they’re not going to see much in stock when they come in, and they’re ready to wait or to compromise a bit on what they want.

One challenge that comes with not having as many new cars to sell is that dealers aren’t buying as many tradeins, Ganley said. His company has been seeking out used vehicles in other venues, like online auctions.

They’re also purchasing more vehicles directly from consumers than in the past, even if those customers aren’t in turn buying a vehicle from a Ganley

Joey Huang is a dentist by trade who has been an auto dealer for more than two decades. He is president of Great Lakes Auto Network. | JENNIFER VUONG/ AUTOMATIVE NEWS

dealership.

“We’ll buy any car they want to sell us,” he said.

Dealers are dipping into their customer lists, contacting former customers and letting them know they’re interested in buying back those vehicles, Vitantonio said. Advertising also has shifted to include a focus on buying back used vehicles.

This market has been going on for about a year, Vitantonio said, and customers are starting to expect it. Used car pricing is beginning to soften a bit, he said, noting that some of the demand has been met and that customers now realize there’s a wait for new

vehicles. But those prices are still high.

Huang said he’s seeing customers get, on average, $3,000 to $4,000 more for their trade-ins this year compared to last year. And customers are getting more equity on their lease turn-ins, too.

There’s still a pool of vehicles on the road, said Nathan Lancry, president and CEO of the Jay Auto Group. Their dealerships have been buying spare cars from customers or lease turn-ins.

He said he thinks the inventory shortage has been healthy for the economy, putting a pause on the “disposable mentality” that had been prevalent for decades. Prior to the pandemic, there was plenty of new vehicle inventory, he said, and dealerships were pricing aggressively to keep that inventory moving.

Now, there’s a stronger focus on customer satisfaction, and customers are excited about the process, he said.

“They’re placing a greater value on the experience,” Lancry said.

And, despite the challenges of sourcing new and used vehicles, all this demand means business is good for auto dealers.

At the Ganley Automotive Group, the company is in its 11th straight record year. Ganley said total revenue surpassed the $2 billion mark last year. Sales volume might go down, but profitability is strong. Dealers may be paying more for trade-ins, but wholesale and retail value has also gone up.

“Business honestly has never been better,” Ganley said.

Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

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Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits.

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FAHRENHEIT

From Page 1

Construction will start in the fall, priming the space for a late 2022 or early 2023 debut.

Whalen has not decided what to do in Tremont after the move. He has five years left on a lease and no intention of leaving the neighborhood.

“You might see that become Kelvin, or Celsius,” he said, referring to other temperature scales. “I don’t know.”

Back from the brink K&D acquired 55 Public Square in February, after years of pursuing the troubled property.

The 22-story office building was on the precipice of foreclosure last year and was at risk of being seized by the federal government as part of an international money-laundering probe.

After buying the property from its embattled owner, an affiliate of Optima Ventures of Florida, K&D won state historic tax credits for an overhaul that includes installing 205 apartments on the tower’s lower floors. The Willoughby-based developer expects to close on construction financing in September.

The first apartments could open in June. Renovations at the adjacent garage are well under way.

When K&D took control of the complex, the old John Q’s space was largely untouched.

“It was like they shut it down and walked away,” Price said with a laugh. “I think there were a few drinks on the table.”

The eatery debuted in 1959 as part of the homegrown Stouffer restaurant group. It eventually became John Q’s Public Bar & Grille and, later, John Q’s Steakhouse. Businessmen, celebrities and kingmakers

The former John Q’s Steakhouse space sits empty and gutted in front of 55 Public Square, in the heart of downtown Cleveland. | MICHELLE JARBOE

dined on steaks, seafood and chops in rooms replete with dark woodwork and brass railings.

Fahrenheit will have a much different aesthetic. Whalen is drawing inspiration from a rooftop restaurant he opened in 2014 in Charlotte, North Carolina, on top of a Hyatt Place hotel and condominium tower.

“We’re lightening it up,” he said. “We’re really going to activate the spaces between the streets.”

The 44-year-old chef, a former protégé of restaurateur Wolfgang Puck, said his longtime customers will see familiar elements downtown. Whalen’s Kobe beef short ribs, a mainstay Whalen on a menu that shifts with the seasons, will stick around. So will his food truck, dubbed ShortRib1.

“There will be opportunities for me to just spread my wings a little, to do things that I haven’t been able to do in Tremont,” said Whalen, who mentioned a shellfish bar and Sunday brunch buffets.

Planning for growth Many Northeast Ohio restaurants are struggling to find their footing — and workers — after a roller-coaster 18 months. Fahrenheit closed from mid-March to May of last year, when the state shut down dining to reduce the spread of the novel coronavirus.

But the Cleveland restaurant is running 25% above budget this year, Whalen said. The Charlotte location is faring even better. Whalen also has a presence at FirstEnergy Stadium and Rocket Mortgage FieldHouse through partnerships with the Cleveland Browns, the Cleveland Cavaliers and their food service providers.

“It’s been an uphill battle, I’m not gonna lie,” Whalen said of recovering from the pandemic.

Still, that tumult has not dissuaded him from planning for growth. He signed a 10-year lease with K&D, with two five-year extension options.

The timing is fortuitous, said Price, who called the restaurant “the bedrock” of the 55 Public Square deal.

Sherwin-Williams plans to break ground this year on its headquarters, which will open in 2024.

The coatings giant’s plans include a two-story structure just south of 55 Public Square, across Frankfort Avenue. That building will act as the welcome mat for the headquarters complex, which also will include a skyscraper and a parking garage on the other side of West Third Street, in the Warehouse District.

The ground floor of the two-story space will house a company museum, with a training center upstairs.

Sherwin-Williams and its architects presented initial plans to city review boards and commissions in July.

The designers are scheduled to make a second-round presentation on Sept. 14.

Elsewhere on the Square, the Millennia Cos. is remaking the historic 75 Public Square office building as apartments. The owner of the Renaissance Cleveland Hotel is planning major renovations. And Bedrock, the Detroit-based owner of the struggling mall at Tower City, has a vision of reviving that space with new tenants, pop-up retailers and events.

Between the 3,000-plus Sherwin-Williams employees headed to the district and K&D’s vast and growing residential portfolio downtown, Whalen has no worries about the location.

“I think you’re watching Doug take ‘class D’ real estate and turn it into ‘A’ right away,” he said of Price.

“And … I want to be one of the building blocks for the rest of the neighborhood.”

Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

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AUGUST 30, 2021 | CRAIN’S CLEVELAND BUSINESS | 23

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8/27/2021 12:23:02 PM

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