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Need for IT beats demand for other STEM jobs Study shows many computer-related jobs, but surplus of science, engineering, math grads By CHUCK SODER csoder@crain.com
Maybe the acronym “STEM” should start with the letter “T.” Among businesses in Ohio, the demand for people who specialize in information technology — the “T” in “STEM,” which stands for
“Science, Technology, Engineering and Math” — far outpaces demand for people in other STEM professions. Four times as many Ohioans work in computer-related jobs than in the other STEM fields combined. Also, the number of IT job openings exceeds the number of people grad-
uating from Ohio colleges with IT degrees. It’s the other way around for many STEM professions, where the number of graduates often exceeds the number of job openings, according to U.S. Department of Commerce data compiled by employment data analysis firm Economic Modeling Specialists Inc. The numbers don’t necessarily mean that too many Ohioans are graduating with degrees related to science, engineering and math,
said Jim Shanahan, director of the Entrepreneurship Innovation Institute at Lorain County Community College, and Jane Dockery, associate director of the Center for Urban Affairs at Wright State University. However, the data do indicate that, of all STEM fields, Ohio’s colleges need to put the greatest focus on convincing students to study information technology, they said. “Compared to other occupations, it’s big,” Dr. Shanahan said of IT. “Compared to STEM occupa-
tions, it’s big.” Wright State and LCCC analyzed the data for the Technology Transfer and Commercialization Task Force, a group of industry and university representatives that the Ohio Board of Regents formed to figure out how Ohio’s colleges can help the state create more high-tech jobs. The task force is putting together a report that will include several recommendations on how colleges can convert research dollars into new See STEM Page 6
New Medicare process dogs equipment sellers Even winning bidders wounded by new program, which feds say saves millions By TIMOTHY MAGAW tmagaw@crain.com
FILE PHOTO/RUGGERO FATICA
Jeff Walters says his company, Master Products of Cleveland, is winning business from Japanese automakers looking to buy parts from U.S. suppliers. Rising car production and other factors are driving up sales for local parts makers.
GOOD TIMES ROLL Surviving auto suppliers crank up production to meet growing demand for cars, American-made parts By DAN SHINGLER dshingler@crain.com
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or many companies that remain links in Northeast Ohio’s automotive supply chain, the good ol’ days seem to be on their way back. Higher vehicle sales, plus decisions by Japanese carmakers to rely on more onshore companies to supply their U.S. plants after they suffered through disruptions caused by last year’s tsunami in Japan, are improving suppliers’ prospects here. A reduction
in the number of competitors also is helping those still in business. Cars and light trucks are selling at a brisk pace that could see 14 million vehicles sold in the United States this year, according to industry analysts polled recently by Automotive News, a sister publication of Crain’s Cleveland Business. Some of those experts are raising their projections and are calling for the sale of as many as 14.8 million vehicles this year, with sales rising to about 16 million units in 2014.
The Obama administration is celebrating its use of competitive bidding to buy medical equipment for Medicare beneficiaries as a big cost saver in 2011, but the Northeast Ohio companies that sell the equipment haven’t been so quick to sing the program’s praises. Rather, they contend the competitive bidding program, which rolled out in Cleveland and eight other metropolitan areas last year, has taken a bite out of their revenue while forcing them to trim staff and diversify their lines of business. The federal government in the coming year plans to roll out the program to another 91 markets, including Akron, Youngstown, Columbus and Toledo. As such, local suppliers expect an even more challenging environment, which is especially the case for companies
that sought refuge in markets that now will be subject to the bidding program. Integrated Medical Inc. in Cleveland was one of those companies. After losing bids in several device categories in Cleveland, the company shifted some of its sales force to the Akron area — a region, at least for the rest of the year, that still is covered under Medicare’s traditional fee-for-service model. However, if Integrated Medical loses bids for the Akron area, “that’s just putting the handcuffs on and putting us in a body bag,” company president Gary Bajusz said. “If you don’t win, you might as well just shut your doors,” Mr. Bajusz said. “It’s a very onerous program that they put out. We’re feeling the wrath of it.” Anton Yeranossian’s small, 13person company, A&A Medical Supply in Chagrin Falls, was able to See MEDICARE Page 5
INSIDE ‘Super commuters’ on the rise The number of people in Northeast Ohio who work in the metropolitan area but live somewhere else is up to 16%. That’s up from 12% in 2002. Other regions are seeing increases, too. Read why ‘super commuters’ do it and how they make it work. PAGE 3
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LEGAL AFFAIRS Worried about lawsuits, some employers ban use of mobile phones while driving ■ Page 13 PLUS: SUMMER ASSOCIATE PROGRAMS REBOUND ■ & MORE
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 18