20120514-NEWS--1-NAT-CCI-CL_--
5/11/2012
3:18 PM
Page 1
$2.00/MAY 14 - 20, 2012
Appetite for industrial real estate returns Rebound in steel and auto, reshoring efforts have property owners again in driver’s seat By STAN BULLARD sbullard@crain.com
JASON MILLER PHOTOS
Dr. J. Eric Jelovsek, medical director of the Multidisciplinary Simulation Center at the Cleveland Clinic, says its “patient simulators” — seen below and in the background above — are intended to “re-create the cockpit of the aircraft.”
SMARTER BY SIMULATION Clinic expands lab that uses human-like dummies to train staff in real situations By TIMOTHY MAGAW tmagaw@crain.com
T
hey pee, bleed, cough, convulse and even scream out in agonizing pain, but they’re no dummies. OK, maybe they are. These rubbery humanoids — or “patient simulators” that cost more
Unlike most people in the real estate business, Terry Coyne wishes, in at least two respects, that he could go back a few years to the Great Recession. The Newmark Grubb Knight Frank executive managing director recalls industrial buildings he sold at bargain prices a few years ago and would like to have that inventory now — as well as the ability to sell them at higher prices. “If you have a crane building, I can sell it in the blink of an eye,” Mr. Coyne said, referring to factories that offer large cranes on their ceilings to move products and equipment from one end to the other. Likewise, Bob Garber, a principal
at the Cresco real estate brokerage in Independence, said he has been astounded by the number of times he has callers ask about a building that was sold or leased recently, especially if it just went off the market. Although Northeast Ohio’s industrial real estate market in the last few years has taken some big hits, such as closed auto plants in Twinsburg and Lorain, it generally has bounced back — and quickly — to the point where industrial space is becoming tight in a number of cities. The rebound is due to a combination of factors. The steel and auto industries are humming again. Activity by industrial property users has picked up as manufacturers bring work home from foreign markets, See INDUSTRIAL Page 32
ON THE WEB
than an average home in the Cleveland area — are part of a multimillion-dollar investment by the Cleveland Clinic to better train clinical personnel without the risk of, well, killing someone. The health system recently opened 10,000 square feet of space so it can create a slate of medical scenarios —
Tour the casino! Come along on a tour with Crain’s video editor Steve Bennett of Horseshoe Casino Cleveland, which opens to the public at 9:30 tonight. Visit www.Crains Cleveland.com/casino for the tour. For more casino views, turn to Page 10 for photos of the interior of the new space in the old Higbee’s department store.
See DUMMIES Page 8
As electric deregulation takes effect, FirstEnergy, AEP drop gloves With monopolies out, powers take to other’s back yard to win business By JAY MILLER jmiller@crain.com
20
Two of Ohio’s most powerful companies have taken to fighting each other like children. At least that’s what it looks like in the television ads. But in reality, American Electric
Power Co. of Columbus and Akronbased FirstEnergy Corp. are engaged in a very adult fight over millions — perhaps billions — of dollars. Each wants to come out on top in the battle to sell power to the state’s commercial, industrial and residential electric customers.
The two companies, along with Dayton Power & Light and Duke Energy, long have been lumped together as Statehouse powerhouses, able to bend the General Assembly and the Public Utilities Commission of Ohio to their will when it comes to setting the price of electricity for
business and residential customers in the state. That was when they had monopoly territories and had no reason to fight among themselves. Now, however, deregulation is taking hold in Ohio, and the power companies are invading each other’s territories and challenging each other’s rate plans before the PUCO. In mid-April, AEP took the fight to
the airwaves with a television ad that portrayed itself as a pony-tailed little girl quietly running a 5-cent lemonade stand until an ominous man in a business suit — called the “infamous middleman” in the voiceover — comes by, buys her whole pitcher of lemonade and opens up shop across the street selling lemonade for 25 cents a glass. See ENERGY Page 6
0
NEWSPAPER
74470 83781
7
SPECIAL SECTION
Crain’s identifies and profiles some of the region’s top health care professionals ■ Pages H1-H11
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 20
20120514-NEWS--2-NAT-CCI-CL_--
5/11/2012
4:11 PM
Page 1
20120514-NEWS--3-NAT-CCI-CL_--
5/11/2012
3:18 PM
Page 1
MAY 14 - 20, 2012
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
3
INSIGHT
Shareholder say on exec pay weighs heavy Compensation votes non-binding, but have consequences if they fail By MICHELLE PARK mpark@crain.com
It’s a vote most companies only began holding last proxy season, yet its impact is clear, both in the pay perks companies are eliminating and the lengths to which they’re going to explain why they pay their executives what they do.
Born of recent financial reform, the so-called “say-on-pay” rules require public companies to ask their shareholders to vote on compensation packages for their top five executives. In this, the second year of the rules, a Northeast Ohio company has become one of the few to suffer a no vote: This spring, shareholders
cast 47.2 million votes against FirstMerit Corp.’s compensation plan compared to 41.2 million for it. That outcome doesn’t mean the Akron-based bank can’t pay its top executives what it explained it would pay them; say-on-pay votes are non-binding. Still, the votes do put pressure on public companies, said John Jenkins,
INSIDE: Data from a recent report show mostly high approval rates from shareholders. Page 9 a securities and capital markets partner at Cleveland law firm Calfee, Halter & Griswold LLP. “It’s hugely important to companies,” said Mr. Jenkins, who advises local public companies on sayon-pay. “It’s ‘non-binding,’ but there are real consequences for companies
that lose these things.” Required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the say-on-pay votes take place every year, two years or three years. Most companies’ shareholders chose to vote annually. Prior to the change, companies needed shareholder approval for certain elements of compensation packages, but not the packages in See SAY Page 9
Food service supplier’s expansion depends on last of Clean Ohio funds Without grant, S.S. Kemp likely will move By JAY MILLER jmiller@crain.com
RUGGERO FATICA PHOTOS
ABOVE: Jim Dixon rides his bike to work at Frantz Ward from Shaker Heights, using the new Bike Rack facility on East Fourth Street to store his ride and shower. BELOW: Dan Menningen works on a Cleveland Police Department bike at the Bike Rack.
BIKE BACKERS GET A BOOST Downtown storage facility, city’s cyclist-friendly rules ease access By GINGER CHRIST gchrist@crain.com
J
im Dixon, an attorney at Frantz Ward, regularly trades in his Bostonian wingtips for a pair of Chuck Taylor sneakers. Mr. Dixon, who works in Key Tower, commutes daily to downtown Cleveland from Shaker Heights by bike — a 35-minute endeavor that gives him both exercise and extra cash in his pocket. Mr. Dixon is one of roughly 1,200 Cleveland workers, or 0.8% of the work force, who opt for a twowheeled ride to and from their jobs over a four-wheeled drive, according to the U.S. Census Bureau’s 2010 American Community Survey. Of the 70 largest metros in the
The expansion of a Cuyahoga Heights food service supply operation is hung up in the complex world of economic development. TriMark S.S. Kemp aims to invest $3.5 million to expand its office and warehouse at 4567 Willow Parkway. But S.S. Kemp first must compete for $1.4 million in state grant money that would help its developer afford to clean up environmental problems on a 3.1-acre property that is next to its current operation. It’s awaiting a decision by the Clean Ohio Council, which is scheduled to meet this Friday, May 18, to decide which projects to fund. Friday’s round of grants would be the last round of Clean Ohio grants under existing law governing the program. JobsOhio, the nonprofit development organization that is taking over many of the state’s
economic development programs, is expected to create a brownfield revitalization program in the next fiscal year, which begins July 1, but it doesn’t yet have its financing in place. “It’s not looking good right now,” said Mark Fishman, president of the 86-year-old S.S. Kemp. He said his project is competing against several worthy projects for the state brownfield money. If S.S. Kemp does win the grant, it has pledged to add 41 jobs with an average wage of at least $15.40 an hour. Today, the company employs 133. If this project doesn’t receive the brownfield money, “We’re going to have to move; the only question is, where would we move to, and I can’t honestly say right now,” Mr. Fishman said. “We’ve looked at Glenwillow and in other nearby counties, or we could consolidate (with another company operation) in Pittsburgh.” See GRANT Page 31
THE WEEK IN QUOTES “The point of this scenario is to let people get over that stress. This guy can’t get hurt when you’re sticking tubes down his throat.”
“You throw something against the wall and see what happens.” — Nathan Forbes, a principal in Rock Gaming LLC, majority partner in the Horseshoe Casino Cleveland. Page 10
— Dr. J. Eric Jelovsek, medical director of the Multidisciplinary Simulation Center at the Cleveland Clinic. Page One
country, Cleveland had the largest increase in cycling commuters — 280% — in the past decade, according to the League of American Bicyclists. Local riders attribute the rise in cyclists to efforts made by the city and cycling advocates to encourage cycling. Those efforts include the Cleveland See BIKING Page 13
“In my circle, women enjoy craft beer as much as vodka or wine.” — Marissa DeSantis, Ohio chapter of Girls’ Pint Out. Page 15
“What touches my heart is how deeply committed Jack is, and how willing he is to rearrange his own life to accommodate a patient need.” — Health Care Hero nomination for Jack Kochis, volunteer, Hospice of the Western Reserve. Page H-8
20120514-NEWS--4-NAT-CCI-CL_--
4
5/11/2012
10:32 AM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Fresh face
D
avid Gilbert has been the bright, energetic leader of the Greater Cleveland Sports Commission for more than a decade. Now the fresh set of eyes he’s bringing to Positively Cleveland — the city’s convention and visitors bureau — should begin to pay off for the travel and tourism trade in Cleveland and Northeast Ohio. Mr. Gilbert was named president and CEO of Positively Cleveland in January 2011, adding those duties to his role as head of the sports commission, which has had great success at attracting amateur sports events to the region. He judiciously has used the last 16 months to assess where Positively Cleveland was, where it should be going and how to take it there. In a recent meeting with Crain’s editorial board, Mr. Gilbert said what he found was an organization that was reactive in nature. “There were a lot of tasks but not a lot of strategy,” Mr. Gilbert said. He also discovered a body in need of a spark. So, he injected new blood into its organizational structure. Of people in the nine top management positions at the convention bureau, six have been in their jobs for 16 months or less. The result of the changes? “The entire energy of the organization has been ratcheted up tremendously,” Mr. Gilbert said. The new boss also has helped bring about a change in focus at Positively Cleveland, including among the people who work for it. “Anyone would have said we’re a marketing organization,” Mr. Gilbert said. But that was too narrow a view in Mr. Gilbert’s mind. “We’re an economic development organization,” he said, one that should be building a strong travel and tourism industry that can produce new jobs and tax revenue. “It goes far beyond a marketing campaign,” Mr. Gilbert said. Now Mr. Gilbert is prepared to build on this foundation, as he outlined last week in presenting a five-year strategic plan for Positively Cleveland. In putting the together the plan, Mr. Gilbert wisely is drawing on what has worked at the sports commission. For example, Mr. Gilbert wants Positively Cleveland to make it easy for groups to stage their gatherings here by serving as a provider of what he termed “best-in-class” meeting and convention services. People in amateur sports who deal with the sports commission “know what our organization has the ability to do” when it comes to hosting events, and he wants that same reputation for Positively Cleveland. Mr. Gilbert said Positively Cleveland also will explore owning and operating some of its own meetings and conferences, just as the sports commission has staged its own events, most notably the Continental Cup youth sports festival. In that way, the convention bureau could generate revenue that it could put back into marketing the region. With the opening of Cleveland’s Medical Mart & Convention Center a year away, the fresh face Mr. Gilbert is giving Positively Cleveland is positively opportune. And we’re positively optimistic about the results that should come from its efforts.
FROM THE PUBLISHER
Yet another defeat for political reason
I
am distressed by the defeat of Sen. I recall years ago sitting in a meeting Richard Lugar of Indiana. room at a summer business newspaper Why, you might ask, would a conference in Indianapolis. Sen. Lugar business newspaper publisher from was one of the speakers, and he kept his Ohio care about an 80-year-old politician audience engaged and captivated with from the adjacent Hoosier state? Well, his vast knowledge of military issues and the answer is complex, and I hope resonates foreign policy. As one of his colleagues in with others as well. the Senate said last week after Sen. Lugar Simply put, I am worried lost a primary battle against a about the state of our politics in BRIAN Tea Party candidate, “When you America. Those of you who are TUCKER travel abroad with Dick Lugar regular readers of this column and you meet with top officials already know that I fret regularly of foreign governments, they about the fringe elements that turn to you and say, ‘Who are seem to be hijacking both of our you again?’” major political parties. The Tea Party types railed It’s why Olympia Snowe is against him for not being concalling it quits after a distinguished servative enough, which means Senate career. It’s why Steve they hate that Sen. Lugar’s willLaTourette constantly worries ingness to compromise helped about his standing as a reasonable forge real legislative accomplishment). Republican who can work across the aisle The victor, state Treasurer Richard Mour(something necessary, given the strong dock, claimed his opponent was “disconlabor tradition in parts of his district). nected” from the Republican base. And it’s why John Boehner has fits as he I shudder when I hear candidates and tries to keep his GOP brethren in the fold strategists start talking about their while the radically conservative Tea party’s “base” because it usually means Party types keep rattling his cage. whatever group they feel is more impor-
tant. Usually it means the liberal wing of the Democrats and the conservative wing of the GOP. Neither group seems interested in compromise or bipartisanship for the greater good of the country. It seems to me that our political leaders care only about the politics of getting there, not the hard work of doing something once they’re there. Once “they’re there,” it’s about even more politics, as they jockey to see who can block the most ideas from the other side. So Dick Lugar joins Chris Dodd, Russ Feingold, Olympia Snowe and other veteran members of the Senate who have been either defeated or just simply grew weary of the gamesmanship that rules in Washington. Our own George Voinovich, a moderate who never allowed himself to be bullied by extremists on either side of the aisle, said he was glad to be rid of the games as he retired after a long, distinguished career. That thinking isn’t relegated to the nation’s capital. It roils around Columbus and other statehouses as well. It’s just sad that the lives of the many are so mucked up by the games of the few. ■
THE BIG ISSUE Pointing to the casino, the new convention center and a few other factors, some people say downtown Cleveland is undergoing a renaissance. Do you believe that?
BYRON D. VAN IDEN
JIM BARES
TRACY FOSTER
LEO ZLOBINSKY
Vermillion
Broadview Heights
Medina
Mentor
Yes. There seems to be a lot of new business activity moving downtown. … I’ve read that apartments are pretty much full. … And I like the way the (Downtown) Cleveland Alliance is keeping things neat and clean.
I believe that there is an energy and I think a little bit of excitement downtown. … I was just at the aquarium last week. It was terrific.
Yeah, I think it’s good. It’s growing. My boyfriend works at the convention center (construction). It’s brought a lot of jobs. ... We’re moving in the right direction.
Yes. … Somebody is going to visit the casino, somebody is going to have conventions. I work for (Greater Cleveland Regional Transit Authority). We expect more passengers.
➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com.
20120514-NEWS--5-NAT-CCI-CL_--
5/11/2012
10:33 AM
Page 1
MAY 14 - 20, 2012
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
LETTER
Proper health habits should be taught early on ■ I was pleasantly surprised to read the May 7, Best of the Blogs item, “The nation comes around to Toby Cosgrove’s way of thinking.” I am not a physician, just an average American observing the health issues in our country. I took a step back, especially before the health care legislation was passed, and thought about the health issues affecting the United States. I identified the following: heart disease, stroke, type II diabetes, obesity, cancer and arthritis (joint replacements), which I discussed with a physician and inquired of him, “Do
these identified diseases — many related to lifestyles — account for 70% or 80% of health care issues in the U.S.?” He acknowledged I was reasonably close. So, to me, the answer is simple: Educate our population beginning with our children, not merely by giving them a health class, but by continuously educating from first grade forward; then, encourage changes in behavior. As with life insurance, those who make poor lifestyle choices should pay more for health insurance. Government control of health
care is not the answer. Just consider the U.S. Postal Service, losing money and for years letting opportunity for customer service escape it. So what evolved? Federal Express, overnight letters and so forth. How should the Postal Service balance its budget? Maybe cut back service? Eliminate Saturday deliveries? Maybe deliver every other day? Let’s just consider what is happening in Greece — too much government-provided payroll and social programs. The end result? Social unrest. The cure is more painful than the
disease, meaning we cannot afford approaching anything close to the social programs in Greece. We should heed the handwriting on the wall. Michael Pappas Kirtland
WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 e-mail: mdodosh@crain.com
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Joel Hammond (jmhammond@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Ginger Christ (gchrist@crain.com) Manufacturing, marketing and retailing Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing director: Lori Grim (lgrim@crain.com) Marketing/Events manager: Christian Hendricks (chendricks@crain.com) Marketing/Events coordinator: Jessica Snyder (jdsnyder@crain.com) Advertising sales manager: Nicole Mastrangelo (nmastrangelo@crain.com) Senior account executive: Adam Mandell (amandell@crain.com) Account executives: Dawn Donegan (ddonegan@crain.com) Andy Hollander (ahollander@crain.com) Lindsey Nordloh (lnordloh@crain.com) Office coordinator: Toni Coleman (tcoleman@crain.com) Digital strategy and development manager: Stephen Herron (sherron@crain.com) Web/Print production director: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Lauren M. Rafferty (lrafferty@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com) Audience development manager: Erin Miller (emiller@crain.com)
Crain Communications Inc.
We look up to our customers because mutual respect is a must in any banking relationship. You’re the engine of our country’s economy and we believe in treating you that way. Starting with the relationship. That’s why we offer you a team of specialists right here in your community who advocate for your financial future and support your business any way we can. You’re a big deal. It’s about time you had a bank that sees you that way.
Visit key.com/bigdeal to learn how we’ll make you a priority.
Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to customerservice@crainscleveland.com, or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation
Banking products and services are offered by KeyBank N.A. Member FDIC and Equal Housing Lender.
5
20120514-NEWS--6-NAT-CCI-CL_--
6
5/11/2012
3:19 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
Energy: AEP tactics panned continued from PAGE 1
This middleman, the voiceover continues, “holds a lot of power, pushing a scheme on a government agency to keep their costs down. FirstEnergy Solutions and other suppliers buy electricity at rates that aren’t fair and turn around and resell it for a profit. And if it continues, it could destroy thousands of Ohio jobs.” A few days later, FirstEnergy shot back with its own ads. One, set in a school gym, shows two men squaring off, each with a red dodgeball in his hands. One wears a T-shirt with FirstEnergy’s logo on it; the other wears an AEP T-shirt. When the referee blows the whistle to start the contest, the AEP player runs and hides behind a row of elementary
school children. “AEP wants to restrict competition and hide behind ridiculous claims about fair energy and jobs to force electric prices up and guarantee its revenue,” the voiceover intones. The two firms also have set up websites to argue their cases. FirstEnergy’s is www.forelectricsavings .com; AEP’s is www.fairenergyohio.org.
Divergent views on dereg To thwart FirstEnergy, AEP has argued before the PUCO that it should be allowed to charge power sellers who want to provide power to customers in Central Ohio a capacity charge several times higher than the price that FirstEnergy and other utilities in the region charge.
AEP argues that the higher charge accurately reflects its cost — the traditional argument regulated utilities would make before the PUCO. AEP president and CEO Nicholas Akins told securities analysts on the company’s first-quarter conference call April 24 that it was asking “for what other utilities in Ohio have been previously granted, a fair and reasonable transition to competition that maintains the ability for competitors to compete, but maintains the financial integrity of AEP.” FirstEnergy president and CEO Anthony Alexander countered a week later, on May 1, on his company’s own analyst conference call. “AEP wants to restrict shopping in its territory by imposing above-market capacity charges on competitive suppliers,” Mr. Alexander told the analysts. “These charges would severely limit the savings customers in the AEP territory … would otherwise achieve from competitive markets and, in fact, amounts to a windfall for AEP.”
Calling it for one side Observers watching these giants battle are siding with FirstEnergy. Sam Randazzo, a Columbus attorney who represents Industrial Energy Users-Ohio, an association of industrial power users, said his organization has fought for years to open the electric market to competition. He said AEP was so profitable in the early 2000s that it didn’t hurry to move to a market system, and now it’s trying to have it both ways. It wants the high capacity charge to keep competitors out of Central Ohio while it takes advantage of the low capacity charge its competitors impose to invade the rest of the state. Mr. Randazzo said he also believes the PUCO has gone along with AEP for too long. AEP has threatened to move its headquarters out of Columbus, and out of state, if it loses this battle. “For the folks who have been battling this for some time, we’ve said this is illegal,” he said of AEP’s effort to get the PUCO to OK its high capacity charge so it doesn’t lose business. “Our view is, that’s what happens in competitive markets.” Likewise, David Rinebolt, executive director of Findlay-based Ohio Partners for Affordable Energy, criticized AEP for moving slowly to a market system because its Ohio operation was very profitable. His organization represents 60 nonprofit organizations that help low-income households reduce their energy costs. “FirstEnergy made a decision a decade ago that the future was in competition,” he said. “But AEP is going to resist (deregulation) for as long as they can.”
Get the negotiation tactics your business needs to succeed.
A decade-plus of change
“I was always afraid of pushing too hard when negotiating. Now I stand firm to get the better deal.” — Angelica, Owner Colmex Construction, New Orleans, LA
Knowing when to stand your ground and when to budge can make a good deal great. Our program with Cuyahoga Community College gives you valuable skills for growing your business, the opportunity to access financial capital and more, at no cost to you. Just ask Angelica.
Apply now at gs.com/10KSBCleveland
© 2012 Goldman Sachs. All rights reserved.
Until this century, electric utilities were complete monopolies in their territories, and they were required to justify their prices before the PUCO. Ohio started down the path of utility deregulation with legislation passed by the General Assembly in 1999 that was designed eventually to allow homeowners and businesses to buy electric power — the electrons — on the then-new open market for electricity. The utilities would retain their monopolies in the delivery of power — the transmission lines and wires that carry the power from generating plants to electric meters — and the PUCO would continue to regulate the price of that delivery. Since 2001, Ohio — with some stumbles and price freezes — has moved slowly to this so-called market system. FirstEnergy was the first of the state’s four big electric utilities to embrace deregulation. ■
20120514-NEWS--7-NAT-CCI-CL_--
5/11/2012
4:13 PM
Page 1
MAY 14 - 20, 2012
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
7
Women are driving force behind Cleveland Marathon’s growth Race planners capitalize on rising interest from female runners drawn to boom in half marathon By JOEL HAMMOND jmhammond@crain.com
The Rite Aid Cleveland Marathon turns 35 this year, but race officials say the growth of the event can be traced in part five years further into the past. Staph Congress aided the sport’s growth path when it passed the Education Amendments of 1972, which mandated equal access for women to any “education program or activity receiving federal financial assistance.” The legislation, known as Title IX, leveled the playing field at colleges across the United States, providing a new avenue for females to get involved in sports. And it’s been a big factor in running in Cleveland and nationwide. Cleveland marathon officials are incorporating Title IX and the growth in women’s running into this week’s events, as Joan Benoit Samuelson — the winner of the first women’s Olympic marathon, in Los Angeles in 1984 — and Anne Audain, a seven-time winner of the 10-kilometer race in Cleveland, each will appear and speak at various functions. They’ll do so amid ever-increasing female participation in distance
running. According to executive race director Jack Staph, women made up 38% of the participants in the 2003 event’s 10K and marathon; last year, that number jumped to 58%, or 10,614 of the 18,300 participants. Race officials expect an increase to 19,000 participants this weekend. “It’s tied directly to Title IX,” Mr. Staph said. “Women could play sports in college, so they’d develop a competitiveness there, leave school, continue to work out, develop a career and say at 31 or 32, ‘Hey, I still have this desire to compete.’” Ms. Audain said she came to the United States from her home in New Zealand after the 1980 Moscow Olympics because she had heard that there would be more opportunities for women at longer distances. She went on to win more U.S. road races, 75, than any other runner in the 1980s, and in 1992 founded a women- and children’sonly event in Boise, Idaho, that started with 2,400 participants and grew to 17,000 at its peak. “The greatest thing about the tremendous growth is that women of all shapes and sizes have been welcomed with open arms,” Ms.
“Women often would say they don’t have a body for running. Well, Oprah didn’t.” –Ryan Lamppa, media director, Running USA Audain said in a telephone interview last week from her home in Evansville, Ind.
Cross-country growth The local trends are reflected nationwide. According to data from Santa Barbara, Calif.-based Running USA, a nonprofit dedicated to advancing running in America, women accounted for 10% of the 143,000 participants in U.S. marathons in 1980. In 1995, that number had jumped to 76,000, or 26% of the 293,000 who ran. Last year, women made up 41%, or 212,380 members, of the fields at the nation’s 367 largest marathons studied by the nonprofit. (The 720 marathons staged across the U.S. also represented a new record.) Yet Title IX by no means is the only reason for the boom. Mr. Staph said the half marathon has been a big driver, in part because it’s less intense both in training and recovery. Cleveland first staged a half marathon in 2005, and female participation has grown from 875 that year to 4,728 in 2011. In a similar fashion, the number of finishers in half marathons nationwide grew 16% last year over 2010, with
women making up 59% — or about 950,000 — of total finishers. Marketing, too, has played a role, Mr. Staph said. If you’re a live-TV watcher, you’ve likely seen commercials featuring female runners in hip, colorful new running gear made by Nike, Under Armour and others. Those include a recent Nike commercial, “I Will Run to You,” in which a woman starts on the West Coast and her boyfriend starts on the East Coast. In running parlance, the latter “dies” along the way and ends up in a hospital, while the former makes her destination — a hospital bed occupied by her presumed love interest. The message is clear: Women can do this.
Clothes make the marathon The push by apparel makers appears to be working; according to Running USA’s just-released Women’s National Runner Survey, 65% of female survey respondents spent more than $90 on running shoes last year, while 80% spent $100 or more on running apparel in the last 12 months. “In the past, there was a lot of black, gray and brown” from apparel companies, Mr. Staph said. “The changes have had a lot to do with
women.” Mr. Staph said that when the Cleveland marathon’s merchandise store was getting off the ground, he’d see a lot of men enter and leave without making a purchase. He then instructed his buyer to spruce up the colors and options for women. Since that change was made in 2003, merchandise sales have doubled.
Reasons aplenty Ryan Lamppa, Running USA’s media director, cited other factors for the surge in female runners: ■ The Race for the Cure, a breastcancer-fighting event that started in 1983 with 800 participants and has grown to 150 races and 3 million participants. “It exposed the sport to millions of women,” Mr. Lamppa said. ■ Training programs that have eliminated excuses often offered by novices who have said, “I don’t know where to begin.” “Now, no one has that excuse,” Mr. Lamppa said. ■ And Oprah Winfrey. Oprah? Mr. Lamppa cites the iconic talkshow host’s running of the 1994 Marine Corps Marathon in Washington, D.C., as one of the sport’s best marketing tools. “It was international news; she did two shows on it,” Mr. Lamppa said. “Women often would say they don’t have a body for running. Well, Oprah didn’t. Women would say they’re too busy. Who’s busier than Oprah?” ■
SOLUTIONS W O R K E R S ’
C O M P E N S A T I O N
THAT ARE NO ACCIDENT
HMS offers solutions before there’s a problem, which is why we provide: • Access to registered pharmacists for prescription review • Aggressive pharmacy review to gain premium savings • Timely delivery of all medical information for each claim • Customized return-to-work plans
After all, we’re Health Management Solutions, and we have a name to live up to.
hmssolutions.com 2545 Farmers Drive, Suite 400 Columbus, Ohio 43235
For details, call Mike Pulsfort at 888-202-3515, Ext. 175, or Laurie Poston at Ext. 176.
1901 Indian Wood Circle Maumee, Ohio 43537
So when you’ve got questions, remember, you can always count on HMS to find the answers.
Or visit hmssolutions.com. © 2012 Paramount Preferred Options
20120514-NEWS--8-NAT-CCI-CL_--
8
5/11/2012
3:17 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
Dummies: Simulations allow for experience under less pressure continued from PAGE 1
ranging from the birth of a child to a patient suffering from cardiac arrest — all for the sake of hands-on learning. “The rooms are designed to replicate a number of environments in a hospital setting,� said Dr. J. Eric Jelovsek, medical director of the Multidisciplinary Simulation Center at the Clinic. “The idea is to re-create the cockpit of the aircraft.� The Clinic for years has dabbled in medical simulation to train its staff. However, the expanded simulation center in the basement of Stanley Shalom Zielony Plaza on the northwest portion of the Clinic campus off Euclid Avenue represents a shift toward a “centralized team approach� that brings together health care providers from across the enterprise, said Dr. James Stoller, chairman of the Cleveland Clinic’s Education Institute. “The building and equipment are very cool, but what I regard to be the coolest part is the multidisciplinary nature of it all,� Dr. Stoller said. “In contrast to some activities already organized, this was built organically as a collaboration.�
Behind the glass While the bulk of the action takes place in the faux operating or critical
care rooms, Dr. Jelovsek said the majority of the learning occurs in the four debriefing rooms where clinicians review what went right and, more importantly, what went wrong during the high-stress simulations. The simulation lab is outfitted with an audio/visual system that records the clinicians’ every move during the scenarios, which then can be reviewed and accessed from anywhere within the Clinic system. The idea is “not to just teach an individual how to take care of a patient, but how to teach a team to do it,� Dr. Jelovsek said. During the simulations, a Clinic employee controls the mannequin’s actions, speech and vital signs from an enclosed area adjacent to the simulation room. While the scenario is scripted ahead of time, the teacher leading the scenario can improvise depending on the trainees’ actions. For instance, if a defibrillator wasn’t used correctly, the teacher can adjust the heart rhythms — and the trainees are forced to react. One of the simulation laboratories, anchored by a donation from longtime Clinic benefactors Mort and Iris November, focuses on managing airways for pediatric patients. Another lab, which resembles an
operating room, was supported by a gift from the Laryngeal Mask Co., a medical airway device company headquartered in Singapore. “The point of this scenario is to let people get over that stress,� said Dr. Jelovsek, while demonstrating how to insert a breathing tube into one of the dummies. “This guy can’t get hurt when you’re sticking tubes down his throat.� (Side note: This reporter took a stab at inserting a breathing tube into one of the high-tech dummies, but felt as if he caused considerable harm to the “patient� as he jammed tubes down its airway. No harm, no foul.)
Growth opportunities With the 10,000-square-foot expansion, the Cleveland Clinic now has about 60,000 square feet dedicated to simulation activities, according to Dr. Stoller. For the first quarter of this year — the months preceding the center’s formal opening this month — roughly 1,200 people trained in one way or another in the facilities. “This is so critical to our mission,� Dr. Stoller said. “This is a big undertaking, and there’s always a carefully planned and thought-out strategic approach to make sure it’s important to our mission. This is so ingrained
Oglebay Means Business! More than a hundred years ago, Earl W. Oglebay established a tradition of generous hospitality at his summer estate. Today, Oglebay Resort continues that tradition with extraordinary facilities and amenities, in a picturesque natural setting, ensuring your next meeting will be both memorable and successful.
• 271-room Wilson Lodge Check our we b site for • Premium cottages & estate houses ho t dates • Delicious dining options & special • Luxurious spa packages. • Fitness center, indoor pool & jacuzzi • Business center • 22,000 sq. ft. of flexible, state-of-the-art meeting space • Speidel Golf Course featuring 2 designer courses • Catering options ranging from cookouts to gourmet served in beautiful banquet rooms or catered outside • Additional amenities include specialty shops, gardens, a zoo, tennis, indoor/outdoor swimming pools, pedal boats, fishing, museums, segway tours, miles of walking trails & much more • Also...we offer great teambuilding opportunities!
into the issues of clinical care, quality and education.� Dr. Stoller and his team launched an aggressive marketing campaign within the Clinic to promote the use of the simulation center’s services to the health system’s employees. The services aren’t just marketed to medical students or physicians, but any Clinic staffers looking to touch up their patient-handling skills. Dr. Stoller expects the Clinic
eventually to open the simulation center to medical professionals from outside the Clinic system as a continuing education resource. Dr. Stoller also expects Clinic researchers interested in the impact of simulation on clinical care to conduct research in the center and report their findings in medical journals and other outlets. “This has ripple effects beyond our organization,â€? he said. â–
Big Chagrin Blvd. office building in foreclosure By STAN BULLARD sbullard@crain.com
Orangewood Place, one of the larger multitenant office buildings along office-rich Chagrin Boulevard, has landed in a foreclosure proceeding in Cuyahoga County Common Pleas Court. Court documents say the owner of the five-story building managed by Rosemont Realty Corp. of Santa Fe, N.M., have failed to make monthly payments of an undisclosed amount on a $9 million loan despite receiving a demand for payment as far back as Dec. 14. U.S. Bank serves as trustee for bond holders in the foreclosure case, which was filed May 4. The case was assigned to Judge Carolyn B. Friedland, who had not acted by last Friday, May 11, on a request to appoint a receiver to operate and sell the property to recoup some of the debt owed. The plaintiffs estimate that with late and default fees and prepayment penalties, the building owner, BIG Orangewood Place, owes a total of $12.3 million. BIG Orangewood’s ownership is not a typical one. BGK Equity, a nationally known property investor and predecessor of Rosemont Realty as property manager, had been Orangewood Place’s sole owner since the late 1980s. However, in the 2000s it converted the property to a tenant-in-common form of ownership, where several BGK principals and nearly a dozen other investors
share stakes in the property. Three calls to Rosemont Realty and two calls and an email to CWCapital Asset Management LLC of Bethesda, Md., which serves as a so-called special servicer of the loan, were not returned by Crain’s deadline last Friday. A spokeswoman for U.S. Bank referred calls to CWCapital as the representative of bondholders with interests in the loan. Although Orangewood Place at 3690 Orange Place occupies a highly visible position off Interstate 271, it sits on the east side of the busy freeway while most of the office buildings in the Chagrin Boulevard market are on the highway’s west side. Steve Egar, owner of the Egar Associates real estate brokerage in Beachwood, said he was surprised to hear about the foreclosure filing because of the building’s high occupancy rate, 85%, which most owners see as well above the break-even point. However, Mr. Egar said Orangewood is an older building, dating from 1974, in a hyper-competitive market. Moreover, he said, out-oftown developers and owners have not fared well in the Cleveland suburbs, where they often must compete with well-heeled older property owners with substantial equity. Greg West, an Ostendorf-Morris Co. vice president who handles leasing at Orangewood pooh-poohed the significance of the filing. “It’s business as usual there as far as we are concerned,â€? Mr. West said. â–
13620 ENTERPRISE AVE., CLEVELAND
Resort & Conference Center Wheeling, West Virginia Just 3 hours from Cleveland
Visit www.oglebay-resort.com/conferences, email sales@oglebay-resort.com or call 800-972-1991 to start planning your next event.
‡ 6$/( 25 /($6( ‡ 3ULFH 5HGXFWLRQ
‡ 6) RQ $FUHV ‡ 6XUIDFH 3DUNLQJ
)RU PRUH LQIRUPDWLRQ FRQWDFW
%5,$1 - /(1$+$1 -' 6,25 'LUHFW EULDQ OHQDKDQ#RPFOH FRP
‡ 'RFN 'ULYH ,Q 'RRU ‡ œ &HLOLQJ +HLJKW ‡ %XLOW LQ 8SGDWHG
ZZZ RVWHQGRUI PRUULV FRP
20120514-NEWS--9-NAT-CCI-CL_--
5/9/2012
3:44 PM
Page 1
MAY 14 - 20, 2012
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
9
Say: Companies including New software guides Clinic treatment elements shareholders like System programmed to analyze electronic records, send alerts
continued from PAGE 3
their entirety. Most companies’ compensation packages have passed say-on-pay muster. But passing isn’t enough, Mr. Jenkins said: Companies want overwhelming support. Companies that receive less than 70% approval face the potential of being scrutinized by proxy advisory firms such as Institutional Shareholder Services, or ISS, which advises shareholders on votes such as these. In the event a company presses ahead with a compensation package that lacks strong shareholder support or is opposed by shareholders, such advisers may encourage shareholders to vote against a company’s directors, Mr. Jenkins said. Lawsuits are another potential consequence. The board and some officers of banking giant Citigroup Inc. — which saw a majority of shareholders vote no on its compensation package this proxy season — have been sued by a shareholder for breach of fiduciary duty.
Touchy subject Given all this, perhaps it’s no surprise that the second year of sayon-pay has spurred more disclosures and outreach by companies to determine what pay practices turn off proxy advisers and shareholders. “You’re seeing a lot more effort by companies to explain where they’re coming from on executive compensation,� Mr. Jenkins said. “Compensation has always been a touchy subject, obviously. I think companies have realized, ‘We’ve got to confront this head-on.’�
By CHUCK SODER csoder@crain.com
LAUREN RAFFERTY
seemed to reach the wrong conclusion on the company’s compensation package. Prepared for shareholders, the 20-slide presentation noted, among other things, that the proxy adviser analysis “overemphasized short-term relative total shareholder return results ‌ while ignoring our strong RTSR (relative total shareholder return) results versus peers over the long-termâ€? and “judged our CEO pay decisions against a group that includes companies not within our geographic proximity and with whom we do not compete with for executive talent.â€?
Dr. Madhu Sasidhar thought the job was done. He’d just spoken with a patient who was suffering from kidney failure and a lung infection. Though she still needed to be in the Cleveland Clinic’s Medical Intensive Care Unit, the dialysis treatments and antibiotics seemed to be working. So Dr. Sasidhar continued on his rounds. Then, about 15 minutes later, he got an email — from a software program he helped create — suggesting the patient start physical therapy. Dr. Sasidhar hadn’t even thought of that. He ordered therapy. “Had it not been for an alert, I would not have done it,� he said. The software could do a lot to improve the treatment of patients, at the Clinic and other hospitals: Dr. Sasidhar and some of his colleagues are working to get other departments at the Clinic to start using the system, which for now is called the Clinical
Intelligence Platform, and to turn it into a product that could be sold to other hospitals. So far, the Clinical Intelligence Platform has had a big impact on the Medical Intensive Care Unit, said Dr. Sasidhar, who specializes in respiratory, allergy and critical care medicine. For the past five months, the unit has used the system to analyze data from the Clinic’s electronic medical record software to figure out which patients are ready for physical therapy. The Medical ICU has programmed the Clinical Intelligence Platform to analyze 47 different factors when deciding whether to send out an alert for a given patient. The alerts have driven the Medical ICU to put in more orders for physical therapy, Dr. Sasidhar said. Now the unit is working to put physical therapists on staff full time instead of just ordering them from other departments. In the past, patients in the Medical ICU probably didn’t get physical therapy soon enough, Dr. Sasidhar said. The alerts have helped the ICU refute the traditional notion that stable ICU patients are too fragile for physical therapy, which can help patients recover faster, he said. “We can actually challenge those old concepts,� said Dr. Sasidhar, a
self-taught programmer who created the system with help from the Clinic’s information technology department. The Clinical Intelligence Platform can be programmed to send all types of alerts. Say, if a patient with kidney problems meets several criteria, such as low urine output and a big increase in creatinine in his or her blood, the software might recommend the patient go on dialysis, if he or she isn’t undergoing the treatment already. That flexibility is one reason other intensive care units within the Clinic are considering using the system. Other departments could follow, Dr. Sasidhar said. The system holds potential for use outside the Clinic, too, said Gary Fingerhut, general manager of information technology commercialization at Cleveland Clinic Innovations, the hospital’s technology transfer arm. The platform gives physicians the ability to build complex alerts that “approximate clinical reasoning,â€? he said. The technology could be licensed to another company or spun out into a startup of its own, Mr. Fingerhut said. If the Clinic creates a startup, Cleveland Clinic Innovations likely would start assembling a leadership team for the company by the end of the year, Mr. Fingerhut said. â–
‘A bunch of nonsense’ The increased disclosures that come with say-on-pay are an added legal and administrative cost to every public company in America,
“Shareholders can vote with their feet. If the executives are being overpaid ... people can sell their shares. Nobody is forcing them to remain shareholders forever.� – Charlie Crowley, managing director, Paragon Capital Group Besides becoming increasingly transparent, some companies are abandoning certain criticized pay practices, advisers said. For example, proxy advisers object to tax gross-ups, wherein a company pays the tax on an executive’s severance after a change of control occurs. As a result, a number of companies are eliminating them. There also are examples of companies introducing elements to their compensation packages that proxy advisers and shareholders like. Among them are clawback policies, which allow the recouping of compensation if it’s found that a company must restate its financials, said Rene King, who specializes in executive compensation consulting and is a principal in the Chicago office of Mercer, a human resources consulting firm. Mr. King said many companies whose shareholders failed to give solid support to their plans last year made significant changes and received highly supportive votes this year. Some companies have acted to win over shareholders in advance of a vote, after proxy advisers encouraged shareholders to vote against their compensation packages. With its April 18 annual shareholders’ meeting ahead, FirstMerit filed with the Securities and Exchange Commission on March 29 a lengthy presentation that began with the assertion that certain proxy advisers
said Charlie Crowley, managing director of Paragon Capital Group, an investment banking firm in Mayfield Heights. In his mind, say-onpay is “a bunch of nonsense.â€? “Shareholders can vote with their feet,â€? Mr. Crowley said. “If the executives are being overpaid, either in absolute terms or in relation to the company’s performance, people can sell their shares. Nobody is forcing them to remain shareholders forever. Just like pro sports. If you don’t like the salaries being paid to pro athletes and the effect that has on your ticket prices, you can choose to stay away.â€? Efforts by Crain’s to interview executives with numerous public companies in Northeast Ohio on the subject of say-on-pay were unsuccessful. However, a Progressive Corp. spokesman said via email that the new rules have not had an impact on the big auto insurer based in Mayfield Village, and that its executive bonus plan was approved by 93% of shareholders in April. As for FirstMerit — one of only a handful of companies that have lost their shareholder votes this year — a spokesman said its board “will continue to examine and evaluate the incentive package for next year, comparing us to our peers both in terms of relative performance and the ability to maintain shareholder value.â€? â–
More than Coffee & Copies -How to use interns for real value 8FEOFTEBZ .BZ r sponsored by NOCHE & Baldwin-Wallace College
Bridging Three Generations of Talent - Managing Boomers, Gen X and the Millennials in the same workforce 5IVSTEBZ +VOF r sponsored by Kent State University
#SFBLGBTU OFUXPSLJOH BN r 1BOFM EJTDVTTJPO BN 5IF 3JU[ $BSMUPO $MFWFMBOE r 6OEFSXSJUUFO CZ ,BJTFS 1FSNBOFOUF
Registration & sponsorship information: CrainsCleveland.com/Breakfast or 216-771-5388
20120514-NEWS--10-NAT-CCI-CL_--
10
5/9/2012
2:51 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
CASINO READY FOR DEBUT Get a sneak peek at the city’s newest attraction, which opens tonight At a media tour last Wednesday, Nathan Forbes, a principal in Rock Gaming LLC, majority partner in the Horseshoe Casino Cleveland, showed off his company’s $350 million investment in refurbishing 300,000 square feet on four floors of the landmark Higbee Building and filling it with 2,100 slot machines, 63 gaming tables and a 30-table World Series of Poker room. The casino on Public Square will open to the public at 9:30 tonight, May 14, after a VIP reception, and stay open 24 hours a day, seven days a week thereafter. Mr. Forbes said his firm believes the casino will attract about 5 million visitors in its first year and can capture a large part of what Rock Gaming estimates is $1.3 billion annually that Ohioans have been spending at casinos in adjacent states. On Wednesday, hundreds of workers were scattered throughout the building, which has a legal capacity of 11,000 people when it’s up and running, putting finishing touches on the gambling hall and food court and hanging photos of legendary poker players in the third-floor poker room. A controlled demonstration of casino operations, with real money, took place last Thursday for family and friends of the casino’s 1,600 employees. Beyond targeting 5 million visitors in the first year, Mr. Forbes said his firm has no precise forecast of what kind of gambling handle and revenue the casino will have. “You’re limited by the number of machines, you don’t know how large the average bet will be, you don’t know the average time” people will spend in the casino, he said. “So you throw something against the wall and see what happens.” The Higbee Building operation is the first phase of what is planned to be a larger gambling operation that would include a new, connected building to the south along the Cuyahoga River. Mr. Forbes said his firm’s efforts have been focused on getting the Higbee complex open and it doesn’t have a timeline for the second building. He said his firm is licensed for 5,000 slot machines but only is using 2,100 of those licenses in the Higbee Building. It is holding the rest of those licenses in reserve for Phase 2. ■
A look at the interior of Horseshoe Casino Cleveland, which opens tonight. For a video of last Wednesday’s media tour, visit www.Crains Cleveland.com/ casino. MARC GOLUB PHOTOS
How RTA alleviates Medical Mutual’s car-related pain: RTA’s Ready to Ride Program makes it easier than ever for Medical Mutual employees to avoid traffic and save money by riding RTA to work. It features:
Two Free Work Week Passes
Personal Transit Assistant
Trip Planner
It’s the perfect prescription to decrease commuting co-pay and bumper-to-bumper blood pressure. So who’s next? Ask your employer about RTA’s Ready to Ride Program today.
Get Ready To Ride. F OR MORE INF OR M AT ION,
contact Jim Frick, RTA Sales Director, at 216.781.4764 or njfrick@gcrta.org.
20120514-NEWS--11-NAT-CCI-CL_--
5/9/2012
2:51 PM
Page 1
MAY 14 - 20, 2012
JOB CHANGES
By KEVIN OLSEN Pensions & Investments
ARCHITECTURE C.C. HODGSON ARCHITECTURAL GROUP: Mark Duluk to design architect.
AUTOMOTIVE
Soni
MAYFIELD COLLISION CENTERS: Mike Walker to general manager; Cheryl Senko to relationship/marketing manager.
GOVERNOR’S AWARDS FOR THE ARTS IN OHIO: Barbara S. Robinson received the Irma Lazarus Award.
RBS CITIZENS: Dan Raynor to senior vice president, portfolio management team leader.
INSURANCE
Sechler
Robbins
OHIO ATHLETIC TRAINERS’ ASSOCIATION: Debra Walko (Lake Health Athletic Training BWC Therapy Clinic) received the Ohio Athletic Trainer of the Year Award.
Send information for Going Places to dhillyer@crain.com.
The average funded status of state and local pension plans decreased one percentage point to 75% in 2011 despite reduced growth in pension liabilities, according to a study by the Boston College Center for Retirement Research. The 126 plans in the study released last week had an aggregate $2.7 trillion in assets and $3.6 trillion in liabilities. Liabilities grew 3.4% in the year, while the total value of assets increased only slightly. Only 36% of plans in the sample had a funding ratio of more than 80%. “The explanation for the slow growth in assets is that actuaries
tend to smooth the fluctuations in market values by averaging generally over a five-year period. So while market asset values in 2011 were significantly higher than in 2010, they were only slightly higher than in 2006, the year replaced in the five-year moving average,” according to the report, “The Funding of State and Local Pensions: 2011-2015.” Compounding the problem is that state and local governments have been unable to keep up with annual required contributions to the plans. In 2011, employer contributions equaled only 79% of the required payments; the plans’ required contribution was 15.7% of payroll in 2011, more than double the rate 10 years earlier.
The report also expects that by 2015, stock prices will rise 8% annually and funded status for state and local plans will reach 82%. The study outlines projections made using optimistic, midrange and pessimistic assumptions for the Dow Jones Wilshire 5000 from April 2012 to 2015, with a funded status range of 74% to 98% by 2015. The study takes into account measures that many states have approved to combat retirement financing challenges. Thirty-one states have reduced benefits for new employees, 20 have raised contributions for current and future workers, and seven have modified cost-of-living adjustments for current and future retirees. ■
HYLANT GROUP: Laura Iskenderian to vice president, employee benefits department leader.
LEGAL JAMES D. WILSON LLC, ATTORNEYS-AT-LAW: Aanchal Soni to associate.
NONPROFIT CLEVELAND MUSEUM OF ART AND BON APPETIT MANAGEMENT CO.: Sherri Schultz to director of catering.
A LOAN WITH
SERVICE MADISON ELECTRIC PRODUCTS: Rob Fisher to vice president, marketing.
TECHNOLOGY DAKOTA SOFTWARE: Will Lazzaro to vice president, software development. KEYEDIN SOLUTIONS: John Cachat to senior vice president, consulting group and business development; Karen Adame to chief financial officer; Shelly Bird to business development representative. OECONNECTION: John Haluch to manager, account services. PARTSSOURCE: Christopher Fuss to chief technology officer.
BOARDS ACADEMY OF MEDICINE OF CLEVELAND & NORTHERN OHIO: James L. Sechler, M.D. (Cardiovascular Clinic Inc.), to president. LAKE HEALTH: Bruce M. Kephart to chair; Thomas P. Jubeck to vice chair; Michael E. Mayher to treasurer; Timothy P. Doyle, M.D., to secretary. NATIONAL ASSOCIATION OF THE REMODELING INDUSTRY, GREATER CLEVELAND CHAPTER: Joe Tripi Jr. (Window Nation) to president.
AWARDS AKRON/SUMMIT CONVENTION & VISITORS BUREAU: Daniel M. Rice (Ohio & Erie Canalway Coalition) received the 2012 Chairman’s Award. AMERICAN COLLEGE OF REAL ESTATE LAWYERS: Kevin D. Margolis (Benesch) to Fellow. ASSOCIATION OF STEEL DISTRIBUTORS: Brian Robbins (MidWest Materials) received the President’s Award. BETA ALPHA PSI ACCOUNTING ASSOCIATION, CLEVELAND STATE UNIVERSITY: Martin J. Hrabik Jr. (Walthall, Drake & Wallace LLP, CPAs) received the Alumni of the Year Award.
11
Study: Pension plans’ funded status drops
GOING PLACES
FINANCE
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... because the businesses that will succeed tomorrow are the ones that make the right choices today. They are led by individuals who see opportunity for growth and expansion, and take action with complete confidence. A loan from Citizens Bank will keep you moving forward and never wondering, “What could have been?” Get the loan you deserve now. To make an appointment with a Citizens Banker, call 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS.
20120514-NEWS--12-NAT-CCI-CL_--
12
5/11/2012
4:03 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED Progressive Steam Inc. P.O. Box 603206, Cleveland ID: 34-1533090 Date filed: April 19 Type: Employer’s withholding, unemployment, failure to file complete return Amount: $105,838 Halo Properties Ltd. 6659 Pearl Road, Suite 203, Parma Heights ID: 38-3720218 Date filed: April 6 Type: Employer’s withholding Amount: $64,640 Sono Inc. 28500 Miles Road, Solon ID: 26-2802385 Date filed: March 20 Type: Employer’s withholding, unemployment Amount: $35,702.65 Charles P. Braman & Co. 2330 Chagrin Blvd., Suite 102, Beachwood ID: 34-0877051 Date filed: Feb. 13 Type: Employer’s withholding, corporate income Amount: $29,951.60 City Side Wholesale 5333 Lorain Ave., Cleveland
ID: 34-1713210 Date filed: March 15 Type: Employer’s withholding, unemployment Amount: $29,095.04 Haylo Manufacturing Co. 5100 Richmond Road, Bedford Heights ID: 34-0905327 Date filed: Feb. 13 Type: Employer’s withholding Amount: $28,912.84 Quick Employment LLC P.O. Box 93722, Cleveland ID: 04-3788598 Date filed: Feb. 13 Type: Employer’s withholding Amount: $25,556.68 James D. Hill Corp. 4134 E. 104th St., Cleveland ID: 26-2455848 Date filed: Feb. 27 Type: Heavy highway vehicle use tax, quarterly federal excise tax Amount: $22,693.15 Alliance of Transylvania Saxons of the United States 9005 Memphis Villas Blvd., Brooklyn ID: 23-7516941 Date filed: March 1 Type: Employer’s withholding, unemployment Amount: $21,860.90 La Veer Partners Inc. 38679 Country Meadow Way, North Ridgeville ID: 75-3251077 Date filed: March 1 Type: Employer’s withholding Amount: $16,822.55 William E. Crowe M.D. Inc. 6631 Ridge Road Suite 204, Parma ID: 30-0019966 Date filed: March 2
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
Type: Employer’s withholding Amount: $16,789.79
Type: Employer’s withholding Amount: $10,793.93
Type: Employer’s withholding Amount: $8,310.69
Baker Motors Inc. 12214 Detroit Ave., Lakewood ID: 20-5027878 Date filed: March 19 Type: Employer’s withholding Amount: $16,524.75
Brian A. Cole & Associates Ltd. 2035 Crocker Road, Westlake ID: 34-1941618 Date filed: March 2 Type: Employer’s withholding, failure to file complete return, partnership income Amount: $9,039.09
Edwards & Son Service Inc. 9000 Clinton Road, Cleveland ID: 34-1873286 Date filed: Nov. 8, 2011 Date released: March 30, 2012 Type: Corporate income Amount: $35,601.11
Real Time Intelligence Inc. 25550 Chagrin Blvd., Suite 207, Beachwood ID: 20-0708861 Date filed: March 12 Type: Employer’s withholding Amount: $16,477.03 Contracting Executive Enterprises 27070 Detroit Road, Westlake ID: 31-1554974 Date filed: March 18 Type: Employer’s withholding, failure to file complete return Amount: $15,756.67 Architectural Sheet Metals LLC 1457 E. 39th St., Cleveland ID: 20-4733935 Date filed: Feb. 13 Type: Employer’s withholding Amount: $15,731.80 A Much Better Brake & Muffler LLC 23300 Lakeland Blvd., Euclid ID: 35-2346152 Date filed: March 2 Type: Employer’s withholding, unemployment Amount: $13,473.49 Moore Counseling & Mediation 22639 Euclid Ave., Unit 13, Euclid ID: 74-2977597 Date filed: March 13 Type: Employer’s withholding, failure to file complete return Amount: $11,046.22 All Season Contracting and Landscaping Inc. 6798 Reid Drive, Parma Heights ID: 86-1149850 Date filed: March 1
J&M Locomotive Inc. 316 Northridge Oval, Cleveland ID: 34-1821544 Date filed: Nov. 22, 2011 Date released: March 27, 2012 Type: Employer’s withholding, unemployment Amount: $53,278.58
Dellarco Enterprises LLC 20060 Van Aken Blvd., Shaker Heights ID: 34-1924817 Date filed: March 9 Type: Employer’s withholding, unemployment Amount: $8,621.98
Lakeshore Power Washing Inc. P.O. Box 34163, Cleveland ID: 80-0469327 Date filed: Sept. 26, 2011 Date released: March 20, 2012 Type: Employer’s withholding Amount: $6,303.86
Regina Savage DDS Inc. 5311 Northfield Road, Suite 215, Bedford Heights ID: 56-2372784 Date filed: Feb. 27 Type: Unemployment, corporate income Amount: $8,032.52
Lutheran Urban Community Ministry 4100 Franklin Blvd., Cleveland ID: 34-1206719 Date filed: Feb. 15, 2005 Date released: March 23, 2012 Type: Employer’s withholding, failure to file complete return Amount: $37,708.06
Kidz Mealz on Wheelz LLC 16781 Chagrin Blvd., Shaker Heights ID: 32-0253315 Date filed: March 6 Type: Employer’s withholding, unemployment Amount: $7,237.90
Paul F. Smith Jr. DDS Inc. 20119 Farnsleigh Road, Suite 207, Shaker Heights ID: 34-1337892 Date filed: Dec. 7, 2011 Date released: March 23, 2012 Type: Employer’s withholding Amount: $5,319.24
Georges S&M LLC 9762 Forge Drive, Brecksville ID: 71-1052811 Date filed: March 7 Type: Employer’s withholding Amount: $5,239.70
LIENS RELEASED
Platinum Plumbing Inc. 5914 Ridge Road, Parma ID: 52-2385110 Date filed: Oct. 12, 2011 Date released: March 27, 2012 Type: Employer’s withholding Amount: $8,899.55
Benjamin P. Wright & Associates 1387 Mathews Ave., Lakewood ID: 20-3175433 Date filed: Nov. 29, 2011 Date released: March 23, 2012
We are pleased to welcome: Ketan K. Patel, attorney and business advisor, to McDonald Hopkins.
The former associate general counsel at DDR Corp. is a Member in our Business Department’s Real Estate Practice. Ketan K. Patel • Real Estate • REITs • Commercial Finance • Business Counseling • International 216.348.5424 kpatel@mcdonaldhopkins.com
McDonald Hopkins LLC 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400
Carl J. Grassi
Shawn M. Riley
President
Cleveland Managing Member
Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach mcdonaldhopkins.com
20120514-NEWS--13-NAT-CCI-CL_--
5/10/2012
3:12 PM
Page 1
MAY 14 - 20, 2012
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
13
Biking: Cyclists say safety on roads lags other cities’ efforts continued from PAGE 3
Bike Rack, a joint creation of the city and the Cleveland Clinic that opened last August. The 1,400-square-foot facility, which is located in the Gateway North Parking Garage at East Fourth and High streets, provides secure rack space for 50 bikes and shower and locker areas for riders. “The impediments to people who would like to commute but don’t are lack of secure parking and a lack of shower facility,” said John Sirignano, manager of the Bike Rack. “We’ve met two of the biggest impediments of why people don’t commute to work.” Mr. Dixon typically doesn’t ride in winter, but since the Bike Rack opened, he decided to make the commute two to three times per week by bike from November through February. “The Bike Rack makes it so easy to be a bike commuter,” Mr. Dixon said. “This year I decided to push it.”
New law paves the way The Bike Rack is not the only cyclist-friendly move the city of Cleveland has taken. The city last September passed the Complete and Green Streets Ordinance — a law requiring that 20% of the money spent on new infrastructure projects be devoted to green infrastructure features such as bike lanes, energy-efficient lighting and crosswalks. “The biggest drawback right now with cycling in Cleveland is the access; the roads and the bridges around here are still not the greatest for encouraging cycling,” Mr. Sirignano said. “As the city continues to implement Complete and Green Streets, you’re going to see a lot more people attempting to bike.” Jenita McGowan, Cleveland’s chief of sustainability, said the new ordinance, which went into effect Jan. 1, was designed to create a network of biking, walking and public transportation resources for residents. “It’s a sustainable approach to transportation,” Ms. McGowan said. By improving bicycle access, the city also hopes to boost the local economy, Ms. McGowan said. People who cycle are more apt to stop at local businesses because they won’t be constrained by parking and they have more discretionary income because they don’t use their cars. “Complete streets are attractive. They’re fun. They allow people to use them for transportation and for recreation,” Ms. McGowan said. “I think more people will come out and use them. You’ll get more people on the ground.” Plus, a growing cycling population brings new businesses such as bike shops and repair shops to town, she said.
One man’s journey In a recent study, students at Case Western Reserve University’s Weatherhead School of Management found that a $20 million investment in street improvements and a 3% shift of University Circle workers from cars to bikes could provide a $100 million boost to the local economy. The study also predicted a $1.6 million savings in health care costs and the creation of 500 jobs. The city last month worked with Kent State University’s Cleveland Urban Design Collaborative on a weeklong test of Complete and Green Streets known as Pop Up Rockwell. The effort transformed five blocks of Rockwell Avenue into an example of the type of streets possible under the
new ordinance. During the test, Rockwell featured a cycle track (a two-way bike lane), public art and benches that filter water runoff. Sagree Sharma, project manager and urban designer at the Urban Design Collaborative, said there was a positive response to Pop Up Rockwell, and that a number of people used the cycle track, particularly casual bike riders and families with children. Ms. McGowan said the cycle track allowed the city to understand how to best implement traffic signalization in a safe and beneficial manner. Five years ago, a perfect storm of factors drove David Pauer, director of the employee health plan for the wellness program at Cleveland Clinic, to his bicycle. Gas prices were high, the Euclid Avenue bike lanes had just been installed and his three children were ages eight and younger. Without time to go to the gym and care for his kids, Mr. Pauer turned to cycling for exercise. For an extra 15 minutes added to his commute, Mr. Pauer simultaneously can exercise and ride to work from Lakewood. “Really, if I had to define myself, I’d be a walker or a runner. I don’t consider myself a cyclist. I just do it to get to work,” Mr. Pauer said. Mr. Pauer is one of an estimated 400 to 600 employees at Cleveland Clinic’s main campus who commute via bicycle. A number of garages on site provide bike storage, and employees can use showers in the Walker Fitness Center for free.
Uphill climb Despite continuing efforts to increase the ease of cycling in the city, problems still exist. Rob Smitherman in Cleveland’s Ohio City neighborhood has had a few close calls on the city’s streets. “I’ve almost been run over a few times. It’s because people aren’t used to cyclists. I think it will get better and better,” said Mr. Smitherman, who moved to Cleveland from Chicago in February to take a job as the sports director for the 2014 Gay Games, which will be held in Cleveland and Akron. He usually bikes to work five days a week. However, while Cleveland has fewer bike lanes than the Windy City, its Bike Rack is an amenity that wasn’t available in Chicago to Mr. Smitherman, who used to pay for a gym membership in order to have a place to shower when he lived there. Scott Godwin, an audio engineer for Colortone Staging and Rentals in Solon, said Cleveland offers little roadway assistance to cyclists. He said the city’s lack of existing bike lanes discourages some potential cyclists from riding the roads. “I believe we should all just share the road, but I know a lot of people are more comfortable if they have their own space to ride,” said Mr. Godwin, who sold his car last year. In his travels for work, Mr. Godwin has noted the advancements other cities have made in terms of promoting cycling. “We seem behind, and not necessarily to larger cities,” Mr. Godwin said. Pittsburgh, for example, has miles of bike lanes and 1.6% of its workers commute to work on their bicycles, according to the American Community Survey. In Ohio, Dayton has the greatest share of cycling commuters —1.4%, according to the survey.
The road ahead Jacob VanSickle is excited about the future of cycling in Cleveland. Mr. VanSickle last September was selected as the first executive director of BikeCleveland, a new nonprofit. In his role, Mr. VanSickle serves as an advocate for the local cycling community and works to promote safe conditions for riders. He said Cleveland is lucky to have the Complete and Green Streets law, which will pave the way for future cycling-friendly development. “Getting people comfortable is really what we want to do to really grow that critical mass,” Mr. VanSickle said. To promote cycling, BikeCleveland is participating in the National Bike Challenge — a new, four-month competition that pits cities against other cities. Cyclists log miles to compete locally and as part of the Cleveland-area team. “The biggest challenge is getting the general public behind biking. There’s about a million benefits to biking,” Mr. VanSickle said. “Biking really puts people on a human scale. You really experience the neighborhood at a different level than when you’re driving a car. That really brings a vibrancy back.” ■
The Bike Rack, on East Fourth Street in downtown Cleveland, offers bicyclists changing rooms equipped with showers and toilets. RUGGERO FATICA
UPCOMING EDITORIAL FEATURES
INVESTING GUIDE Issue date: June 4 Ad deadline: May 24
Prep & Parochial Education Issue date: June 18 Ad deadline: June 7
Advertising information: Nicole Mastrangelo at 216-771-5158 or nmastrangelo@crain.com
20120514-NEWS--14-NAT-CCI-CL_--
14
5/11/2012
4:01 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
With residence halls at capacity, Akron seeks new project School seeks out developers as demand continues By TIMOTHY MAGAW tmagaw@crain.com
The University of Akron is courting developers to finance and build a sprawling residential village on a four-block piece of land on the southeastern edge of its urban campus. The mixed-use housing development, which officials anticipate will cost somewhere between $23 million and $30 million, would be nestled on a stretch of land west of state Route 8 between Spicer and Goodkirk
streets in downtown Akron. Unlike high-rise residence halls the university has built in recent years, this project — slated to have between 340 and 400 beds — would be comprised of several two- or threestory townhomes available to students, staff and other professionals in the community. The exact design and scope of the project would be left to the developer, but officials hope to break ground on the project in June or July of 2013.
“We have some good proposals, but they’re not ready to be released until they get to the (board of trustees),” said Ted Curtis, the University of Akron’s vice president for capital planning and facilities. “But we’ll see what happens.” Mr. Curtis said Sasaki Associates, a Boston-based consulting firm working with the university to update its campus master plan developed in the late 1990s, sees the project as a “wonderful transition between the freeway and the campus.” Moreover, he said the low-rise buildings would “bring back the urban feel of our campus.”
“We are, after all, in metropolitan Akron,” Mr. Curtis said. “We have an urban atmosphere, and it’s certainly not suburban. Sasaki likes the idea that this reinforces that urban feel.” Mr. Curtis said the university’s residence halls are at capacity, even with a $35 million, 520-bed hall on Grant Street scheduled to open this fall. “The demand (for housing) continues,” he said. “We would be delinquent in our duties if we didn’t keep up with our demands.” Once the university taps a developer, Mr. Curtis said the company would secure its own financing for
the project and would lease the land from the university. The development would be the latest in several public-private partnerships initiated in recent years by the University of Akron to spruce up its campus and surrounding areas without adding significantly to its hefty debt load, which hovers at about $425 million. For example, the university in 2004 opened a $22 million residence hall for honors students with the help of Signet Enterprises. Signet, an Akron-based developer, financed the entire project and entered into a long-term lease with the university. ■
a supplier of office products and furniture, has acquired Euclid Office Supply Inc. of Euclid. Terms of the deal were not disclosed. The companies said John Vernier, owner of Euclid Office Supply, is retiring. Euclid Office Supply’s operations will be consolidated into Today’s Business Products’ headquarters in Parma. Today’s Business Products will retain three sales people from Euclid Office Supply and now has 41 employees. Euclid Office Supply, established in 1964, operated a 20,000-squarefoot warehouse and distribution center with an office furniture showroom. “The acquisition of Euclid Office Supply will further grow our East Side account base that was broadened in 2004 with our acquisition of Office Emporium, in Mayfield Heights,” said Richard Voigt, president of Today’s Business Products. The three sales people from Euclid Office Supply “will join a sales staff that already expanded earlier this year with the addition of four new sales associates,” Mr. Voigt said.
Here’s how it works: A French butter crock is a ceramic dish with a lid. In the lid is an inverted, conical shaped opening. The dish is filled about a quarter full with water and the cone/bell is packed with butter. The water seals out the air, keeping the butter fresh and spreadable. The butter then may be kept at room temperature without spoiling for up to a month. “We have exceptional butter made locally, but there is nothing more frustrating than pulling it out of the refrigerator and not being able to spread it,” said Fresh Fork founder Trevor Clatterbuck.
BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s highlighting positive business developments that have gone under the radar. To submit information, email Scott Suttell at ssuttell @crain.com. ■ A business owner’s retirement on the East Side is leading to growth for another company on the West Side. Today’s Business Products in Parma,
■ Fresh Fork Market, a local farm buying club similar to a CSA (community-supported agriculture) cooperative, is trying to make it easier for customers to have access to fresh, locally made butter. The company said it has commissioned a selection of French butter crocks to be hand-crafted by local ceramics artist Gina DeSantis.
■ A Kent State University professor has received a $390,900 grant to continue advanced research on Parkinson’s disease. Angela Ridgel, Ph.D., was awarded the two-year grant from the National Institutes of Health to continue her work to design and test “smart” motorized bicycles, which could assess individual effort, performance, skill level and therapeutic value in order to maximize their benefit to Parkinson’s patients. The disease affects about 1.5 million Americans and often leads to decreased independence and increased reliance on caregivers. The research to date by Dr. Ridgel, an assistant professor in exercise science/physiology, shows reduced symptoms of the disease with the use of exercise involving the motorized bicycles.
20120514-NEWS--15-NAT-CCI-CL_--
5/10/2012
3:13 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
15
SMALL BUSINESS
INSIDE
16 TAX TIPS: DECISION LOOKS AT STATUTE OF LIMITATIONS.
Direct mail marketing’s death knell slow to come Some see opportunity in emptier mailboxes By JUDY STRINGER clbfreelancer@crain.com
T
JASON MILLER
Jennifer Hermann, an assistant brewer at Market Garden Brewery & Distillery in Cleveland’s Ohio City neighborhood, is a member of the Pinks Boots Society, members of which work in the brewing industry. Ms. Hermann says her goal is to open her own brewery in Kent.
BOOTS MADE FOR BREWING Women working in the beer industry come together to shed its male-only reputation By KATHY AMES CARR clbfreelancer@crain.com
P
The galoshes represent Ms. Hermann’s membership in the national organization
eer into the Market Garden Brewery & Distillery’s brew house, and you’ll likely see Jennifer Hermann hoisting 55-
pound bags of barley malt over her shoulders while climbing a 4-foot ladder. While she may draw a second glance from passersby who aren’t accustomed to seeing a woman toiling away in a brew house, it’s her pink boots that spark curiosity.
the number of women stepping up their professional involvement in the maledominated beer industry. It’s hard to quantify how many women work in the beer business, but Teri Fahrendorf, who in 2007 founded the group, counts at least 750 national and international members of the Pink Boots Society — including at least six in Northeast Ohio — as women who draw an income from the industry. Members’ job
“People wonder why a woman is wearing pink in a brew house,” said Ms. Hermann, an assistant brewer. “It frequently leads into a talk about the Pink Boots Society.”
that is dedicated to raising awareness of
descriptions range from public relations to purchasing. Few are brewers or brewery owners. Brewers Association craft beer program See BREWING Page 18
“We’re creating tomorrow’s leaders today. There’s not a lot of female leadership in the beer industry, and we want to change that.” – Teri Fahrendorf, founder, Pink Boots Society
he reports of the death of direct mail marketing have been greatly exaggerated, to borrow a twist on Mark Twain’s famous phrase. It’s clear that the ever-growing cost of postage coupled with the rise in use of email and social media marketing make it unlikely that small businesses ever will rely on the U.S. Postal Service as heavily as they did seven or eight years ago. However, marketing via “snail mail” could be getting a second wind courtesy of new postal services, technological advances that allow more personalization and organizations taking advantage of barren mailboxes. “As far as COSE is concerned, we see direct mail as a viable option for us now because so many people now do the online stuff that traditional mailboxes are less crowded and your message doesn’t have to compete with as many other messages,” said Randy Carpenter, a spokesman for the Council of Smaller Enterprises. It appears COSE is not alone in its thinking. Despite postal rate hikes in recent years, direct mail spending is on a modest, yet steady, upswing. In 2011, U.S. marketers spent nearly $90 billion on mail-based advertisements, up from slightly more than $84 billion in 2010 and $80 billion in 2009, according to New York City advertising watcher Winterberry Group. Still, the latest numbers are 20% off the 2007 spending of $103 billion.
Stamp of approval For some small businesses, the postage increases have been too much to swallow given the already significant cost of direct mailing campaigns, said Jean Gianfagna, president of Gianfagna Strategic Marketing in Westlake. Direct mail marketing among Ms. Gianfagna’s business-to-business clients is down and those who do it are substantially more targeted in the mailings than in the past. Her clients who are marketing direct to consumers, however, are doing “a fair amount of direct mail” advertising, Ms. Gianfagna said. She credited the U.S. Postal Service’s recent rollout of new programs and services that are aimed at driving down the cost of See DIRECT Page 18
20120514-NEWS--16-NAT-CCI-CL_--
5/10/2012
4:16 PM
Page 1
16 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
SMALL BUSINESS
IRS still committed to Volunteering: Find the right match spotting abusive deals GETTINGAHEAD
By AMY ANN STOESSEL astoessel@crain.com
D
rew Odum says he has absolutely no talent when it comes to art and music. That doesn’t mean, though, that the Tucker Ellis LLP associate doesn’t think it’s important for children to be exposed to those activities. “I think for a lot of kids it’s an opportunity to learn things in a totally different way,” said Mr. Odum, who serves on the board of Young Audiences of Northeast Ohio, a group focused on arts education. Mr. Odum, a 2010 graduate of Cleveland-Marshall College of Law, said he always has been drawn to service. “I have a desire to give back, and it’s been there since as long as I can remember,” he said. Translating a desire to get involved into an active volunteer role should be done for the right reasons and with careful thought in finding the right group, say
Your monthly guide to getting to the next level in your career.
those who work regularly with volunteers. But, it’s an effort that can pay off both personally and professionally. Mr. Odum was connected to Young Audiences through BVU: The Center for Nonprofit Excellence, an entity that helps link volunteers to organizations needing help. Brian Broadbent, BVU’s president and CEO, said opportunities are available through his group to serve on boards, perform “skills-based volunteering,” such as consulting, or find more labor-intensive work. “The obvious thing is, it gives you meaning, purpose,” he said. But Mr. Broadbent said volunteering also helps in the development of leadership skills, and it’s a great chance to network, build contacts and be exposed to a variety of business issues, such as real estate or human resources. The board-matching program in which Tucker Ellis’ Mr. Odum participated is available to BVU’s business members, which pay an annual membership fee. In turn, prospective volunteers undergo a
vetting process during which they are connected to a handful of potential good board fits. Andrea S. Metzler, director of volunteer services for the United Way of Summit County, said she recommends that a person “get their feet wet” with volunteering for an organization before committing to something longer term. She cited as a way to do so her organization’s calendar of events, which lists nonprofit happenings that could serve as an introduction to a group. The United Way of Summit County also has an online tool, which it launched in March, that allows prospective volunteers to search out opportunities. Likewise, BVU has an web-based clearinghouse for volunteering, which can be used for free by any person looking to give back. “You want to test out different agencies to find something that really hits your heartstrings,” Ms. Metzler said. “First and foremost, it’s got to be something you care about.” ■
FOLLOW THE LEADER: A Q&A GREG HARRIS
records. He also has served as a road manager for a nationally touring group.
Vice president of development Rock and Roll Hall of Fame and Museum
G
reg Harris was a key figure in fundraising, planning and executing the 2012 Rock and Roll Hall of Fame Induction Week in Cleveland last month. Mr. Harris secures philanthropic support for museum activities, and joined the organization in 2008 after 14 years at The National Baseball Hall of Fame and Museum in Cooperstown, N.Y. According to the Rock Hall, it was a passion for music that made the shift from baseball to rock compelling for Mr. Harris. In the 1980s, he and a partner founded, owned and operated the Philadelphia Record Exchange, a music store that specialized in selling rare, used and independent
■ If you could meet one musician, who would it be and why? I admire the talent of musicians and professional athletes but meeting them isn’t a priority. However, I confess that meeting Springsteen when he toured the museum was great fun. If I had to pick one musician to meet it would be the King of the Delta Blues — Robert Johnson. His voice is an echo from another world, his biography is steeped in mystery, and he recorded very few songs but influenced so many other musicians. ■ What skill do you wish you had? The ability to sing on key. I love to sing but can rarely find the key — my kids will not let me sing in public. I used to attribute it to too much loud rock ’n’ roll and power
tools at a young age, but in hindsight I’ve never had a good ear. ■ If you could have lived at any time in history, when would it be? Right now. We are incredibly mobile, the technology rate of change is the fastest in history and yet we are still in many ways rooted to the traditional manual world. It is a great mixture, and I am very excited to see what the next 10 years brings. ■ Career advice you wish someone would have given you? Dig into the operations and back-office details. Understanding and embracing both the educational mission and the business operations of an organization has been invaluable, but it took a few years to truly understand this balance. ■ Favorite non-work activity? Doing anything with my family. I try to attend every one of our children’s sporting events and performances.
T
he U.S. Supreme Court has handed down a taxpayerfriendly decision in a case that explored how the statute of limitations on tax disputes should apply to mistakes in the tax return, however big those mistakes may be. Mercifully, tax law sets limits on how far back the Internal Revenue Service can look to collect taxes that should have been paid but weren’t. Generally, the limit is three years for the majority of mistakes, whether those mistakes were made by the IRS or the taxpayer, resulting in underpayment or overpayment of taxes. The time extends to six years if the taxpayer’s mistake understates gross income by more than 25%. And if there is fraud involved, the IRS can reach back as far as necessary to collect what is due. The recent Supreme Court decision rested on a fine interpretation of whether the statute of limitations applies only to the amount of income reported on the tax return, or to a different problem in the tax return that had an important effect on the amount of income reported. The court’s narrow, 5-4 decision represents the last word on the matter, putting to rest different views held by various circuit courts and the tax court. The case is a bit complicated and technical, but it points out an important way that the IRS now will be required to interpret the tax code — unless, of course, Congress decides to revise the tax code. The case involves business partners who were preparing to sell their business, Home Oil and Coal Co. As most owners would do, the partners took steps to enhance the value of the business in a way that would give them the best possible sale outcome. The partners engaged in a series of transactions meant to increase their “basis,” or their amount of investment in certain assets for tax purposes. The transactions involved a series of short sales of U.S. Treasury bonds exchanged among Home Oil and a separate entity, Home Concrete & Supply, in a way that ultimately would reduce their tax liability on the sale of the business. Tax returns for the 1999 tax year carried the details of the various transactions showing minimal tax
PETERDEMARCO
TAX TIPS liability as a result of how they were structured. However, IRS examiners who studied the transactions saw them as abusive, meant to obscure economic reality in a way that would enable the taxpayers to avoid paying income tax. It took the IRS until September 2006 to issue a “final partnership administrative adjustment” disallowing the tax position that the returns claimed. The IRS said the transactions were meant to do nothing but overstate basis in partnership interests, which reduced gross income for tax purposes. The taxpayers took their case to court, claiming the three-year statute of limitations had expired and therefore the IRS had no basis to assess back tax. The IRS argued that the six-year statute of limitations should apply to the case because the issue in dispute had the effect of understating gross income by more than 25%. Ultimately, the taxpayer prevailed at the Supreme Court — but only because of how the court interpreted the statute, not because the court made any finding as to the propriety or impropriety of the transactions in question. The court determined the statute of limitations is meant to address only the statement of gross income, not inputs such as basis, which has an effect on gross income. On that rationale, the court determined that the IRS can’t open the issue to collection. The Home Oil case serves as reminder that the IRS is still working hard to ferret out transactions that it considers to be abusive, and that there are steps that should be taken to assure the claims in a tax return will hold up to IRS scrutiny. ■ Mr. DeMarco is vice president and director of tax services for Meaden & Moore.
Another little-known fact:
Did you know one in 500 people have an extra rib?
As a COSE member, you’ll find extra guidance when it comes to health insurance. Medical Mutual provides our members with multiple plan options designed for the needs of small businesses. And that’s just one of the benefits of an annual membership that works out to about $25 a month. As an added bonus: Contact COSE for your free insurance quote today.
CALL 216.923.0767 OR VISIT COSE.ORG/HEALTHQUOTE
Health plans insured by Medical Mutual
20120514-NEWS--17-NAT-CCI-CL_--
5/11/2012
4:09 PM
Page 1
20120514-NEWS--18-NAT-CCI-CL_--
5/10/2012
2:43 PM
Page 1
18 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
SMALL BUSINESS
Brewing: Female leaders targeted
GRANDOPENINGS SWEET KIDDLES
SCANWORKS LLC
continued from PAGE 15
16512 Pearl Road Strongsville 44136 www.sweetkiddles.com
2236 N. Cleveland-Massillon Road, Suite E Akron 44333 http://scanworksllc.com/
director Julia Herz estimates that out of 1,600 breweries in the United States, fewer than 10% have women brewers. The Brewers Association is a Colorado-based association for the craft beer industry. That segment is growing, though, Ms. Fahrendorf said, with Pink Boots members as far away as Argentina and Australia aligning themselves with ownership or brewer titles. Ms. Fahrendorf was a brewer at various breweries in Chicago, Oregon and California before embarking on a five-month road trip to visit craft breweries across the United States, which is when she started the group. Other local and national groups are cropping up to educate females on career opportunities in the beer business and to promote more consumer exposure. Those groups include the Ohio chapter of Girls’ Pint Out, which hosts some events in Cleveland. That group plans activities that revolve around sampling craft beer. “In my circle, women enjoy craft beer as much as vodka or wine,” said Marissa DeSantis, who leads that group’s chapter.
Sweet Kiddles, owned by Andrea Kimmel, offers flexible child care seven days a week, for children ages 6 weeks to 12 years old. With a membership fee, child care is available on an on-demand basis, and children can be dropped off for as few as two hours. Preschool, camps and before- and after-school care also are available. Hours are 7 a.m. to 9 p.m. Monday through Thursday; 7 a.m. to 11 p.m. Friday; 10 a.m. to 11 p.m. Saturdays; and noon to 6 p.m. Sunday. 440-238-1119 questions@sweetkiddles.com
GROUPAIDE
Phone 330-523-7241 Fax 330-523-7244 info@scanworksllc.com
ROCK WEST MUSIC AND GRUB PUB
Cleveland 44124 www.groupaide.com After a nearly decade-long career with two professional sports teams, Matt Mastrangelo has launched GroupAide, an online group ticketing management tool that handles online payments, ticket sales and tracking for group events. The platform of GroupAide is completely web-based; in addition to allowing a group coordinator to monitor tickets and seat assignments, GroupAide tracks and collects payment. While GroupAide currently is focused primarily on sporting events, the company has the capability to work with any group event, including performance venues, amusement parks, company holiday parties, golf outings, races and fundraisers. 216-407-4860 info@groupaide.com
ScanWorks LLC is owned and operated by attorneys Karen Boehnlein and Deborah Monaco. The firm scans and archives documents for any type of business. ScanWorks picks up boxes of documents, which are inventoried. The items then are transported to ScanWorks’ secure facility, scanned into a searchable PDF format and saved to a DVD or hard drive. Thereafter, the documents are shredded or returned after review.
30676 Detroit Road Westlake 44145 www.rockwestgrubpub.com Rock West Music and Grub Pub is a casual, family-friendly restaurant and bar, owned by executive chef Doug Lufkin. Mr. Lufkin has been a Cleveland chef for more than 20 years and his current menu is described as “sophisticated comfort food.” Rock West — which has a rock-themed atmosphere — also showcases live entertainment, and it is open 11 a.m. to midnight Monday through Wednesday; 11 a.m. to 2:30 a.m. Thursday through Saturday; and 3 p.m. to midnight Sundays. Takeout and catering also is available.
Women are reclaiming their stake in an industry they are said to have founded centuries ago as they harvested grains to make bread. Brewing is arguably women’s oldest profession, said Ms. Fahrendorf, account manager of Oregon-based
Next on tap Those who work in the sector say the craft beer renaissance is contributing to the sector’s employment growth and consumer interest among women. “Craft beer is the perfect social
lubricant,” said Andy Tveekrem, Market Garden Brewery’s brewmaster and partner. The social nature of Girls’ Pint Out has driven more female — and male — participation in that group’s local chapter, but Ms. DeSantis said she plans to incorporate more education into the outings. “We’re in the process of redefining its goals,” said Ms. DeSantis, a marketing assistant at Great Lakes Brewing. “A lot of women who come to our events or beer tours already are very knowledgeable about craft beer. We have requests for deeper education, whether traveling to breweries or seeking professional certification” for those who sell and serve beer for a living. Pink Boots’ Ms. Fahrendorf said she is working on establishing a scholarship program to help recipients fund beer certification programs at such institutions as the American Brewers Guild in Vermont or Siebel Institute of Technology in Chicago. “We’re creating tomorrow’s leaders today,” she said. “There’s not a lot of female leadership in the beer industry, and we want to change that.” For now, the Market Garden Brewery’s Ms. Hermann is drinking in the beer-making experience under the tutelage of the venerable Mr. Tveekrem, but her thirst for career advancement is perpetuating a larger dream. “I want to be the best brewer, so I’m squeezing everything I can out of Andy,” she said. “My goal is to open my own brewery in Kent.” ■
440-892-2266
SMALL Business is
Big to Us! The Middlefield Banking Company built our business on helping small business. We will treat you with dignity and fairness, and give you the consideration you deserve. Come over to a Community Bank that delivers: UÊ UÊ UÊ UÊ UÊ
Generating a buzz
Country Malt Group. While the stigma of women’s indifference to beer tends to linger at the macrobrewers, the independent craft breweries are catering to women’s taste for artisan beverages and are more mindful to fostering gender equality in the profession, industry professionals say. Bridget Gauntner, who recently was promoted to field quality specialist at Great Lakes Brewing Co., said she’s “definitely in the minority” as a female working in the operation’s production department. However, Ms. Gauntner said she believes as more women discover job opportunities through the Pink Boots Society, of which she’s a member, along with more general exposure and networking, that imbalance will shift. “I don’t believe it will be long before we have a woman brewer here,” Ms. Gauntner said. Networking opportunities also drew Kathy Chappel, co-owner of Cleveland-based Indigo Imp, to join the Pink Boots Society about a year ago. “It’s a great way to meet other people, not just brewers, but others who work in the industry,” Ms. Chappel said.
6>À iÌÞÊ vÊ >ÃÞÊ iV }Ê"«Ì Ã
iÀV > Ê > ÃÊ> `Ê iÃÊ vÊ Ài` Ì ,i> Ê ÃÌ>ÌiÊEÊ µÕ « i ÌÊ > Ã
>« Ì> Ê «À Ûi i ÌÊ > Ã ÛiÃÌ i ÌÊ- ÕÌ Ã
The Middlefield Banking Company www.middlefieldbank.com 888-801-1666 Main Office 888-801-1666 | West 440-632-1666 | Chardon 440-286-1222 Garrettsville 330-527-2121 | Mantua 330-274-0881 | Orwell 440-437-7200 Newbury 440-564-7000 | Cortland 330-637-3208
Direct: Some don’t see advantages continued from PAGE 15
direct mail for small businesses. Chief among them is the Every Door Direct Mail program launched last summer. It offers small businesses a postage rate of 14.5 cents per piece, which is less than half the cost of large-volume first class rates (36 to 38 cents) and lower than the standard mail presort rates (mid- to high 20s). With Every Door Direct Mail, businesses also get access to a free online tool to target customers in specific areas without shelling out cash for custom mailing lists, and they don’t have to sort and ink-jet each piece of mail. “With this new program, the small business owner could pay for the printing and then, go to the USPS site and choose his targeted area,” said Gina Dalessandro, executive vice president at Cleveland marketing firm Quez Media Marketing. “It eliminates the cost of buying a list and ink-jetting the piece and the mail preparation cost.”
Tech’s role not what you think Technology, ironically, is another factor in some direct mail use. While the flight to digital marketing, predominantly through email, was expected to bring about the demise of direct mail marketing, technology is now boosting direct mail by bridging print and digital advertisements and offering more personalized cus-
“(Frequency of contact) is something we never could have done with direct mail because of the higher cost.” – Victoria Stallard vice president and co-owner, GTS Communications tomer experiences. Ms. Dalessandro said savvy direct mail materials now include QR codes, which connect advertising recipients to digital content, such as a website, or personalized URLs (PURLs), which connect the recipient to a personalized web landing page. When combined with a targeted mailing list, such tools “make direct mailing more efficient,” said John Hummer, account executive with Northern Ohio Printing Inc., based in Cleveland, giving small companies more bang for their advertising buck. The bottom line is direct mail remains one of the best ways to prospect for new clients, some marketing executives said. Email lists can be unreliable since people tend to change email addresses often, and marketing messages often are ignored in overloaded inboxes. And, there are legal restrictions on who marketers can email, said Marisa Lee, Quez Media Marketing’s
senior marketing manager.
Return to sender Once a business relationship has been established, however, email and other forms of digital marketing are more affordable ways to engage and retain customers, she said. Still, some small businesses say they will not be breathing life into direct mail anytime soon. Victoria Stallard, vice president and co-owner of GTS Communications of Strongsville, switched to digital marketing five years ago and has not looked back. She uses online marketing service Constant Contact to connect with customers, via emails or enewsletters, at least once a month. “(Frequency of contact) is something we never could have done with direct mail,” Ms. Stallard said, “because of the higher cost.” Jennifer Lumpkin, marketing representative for New Adventures Early Learning and Child Development Center in Twinsburg, said even with a targeted list of local parents with young children, the chances of a direct mail piece getting read is simply too low considering the cost of printing and postage. “We have found more success with face-to-face marketing at community events, constant press and photos on center achievements,” Ms. Lumpkin said. ■
20120514-NEWS--19-NAT-CCI-CL_--
5/10/2012
4:12 PM
Page 1
F
or the fifth year, Crain’s Cleveland Business is honoring with its Health Care Heroes awards just a handful of those in Northeast Ohio who are changing lives for the better everyday. To determine this year’s honorees, an independent panel of judges took into account nominees’ leadership, accomplishments and community service in selecting winners in the categories of administrator; advancements in health care; allied health; health care advocate; healthiest employer; nurse; physician; and volunteer. Judges for this year all are past recipients of Health Care Heroes honors. They were the Cleveland Clinic/The Free Medical Clinic of Greater Cleveland’s Dr. Gary Hoffman, 2011 volunteer winner; Hattie
Larlham’s Dr. Richard Grossberg, 2009 physician winner; Akron Children’s Hospital’s Dr. Sarah Friebert, 2011 physician winner; and Crossroads Hospice’s Stacie Beck, 2011 allied health winner. Healthiest employer nominations were collected and judged by Indianapolis-based Healthiest Employers Inc., a privately held technology and data research company, focused on corporate wellness. This year’s winners and finalists will be honored at a luncheon from 11 a.m. to 1:30 p.m. May 23 at Executive Caterers at Landerhaven, Mayfield Heights. To purchase tickets, contact Jessica D. Snyder at 216-771-5388 or jdsnyder@crain .com. Information also is available at www.crainscleveland.com/hchtix.
THIS YEAR’S HONOREES ADMINISTRATORS TERRY DAVIS President/CEO Our Lady of the Wayside Charitable organization
JAN MURPHY President Fairview Hospital Hospital setting
EILEEN SAFFRAN Executive director The Gathering Place Family support services
ADVANCEMENTS IN HEALTH CARE DANIEL L. DIETRICH Aerospace engineer NASA Glenn Research Center
ALLIED HEALTH BARBARA DAVIS Therapist Fieldstone Farm Therapeutic Riding Center Innovative therapeutics
MARILYN MOUNT Physical therapist Retired
LAST YEAR’S HONOREES
Physical therapy
CAROLE WRIGHT
BARBARA PALMISANO
Director of nursing Eliza Bryant Village Geriatric
Director, Offices of Geriatrics and Palliative Care Northeast Ohio Medical University Palliative care
HEALTH CARE ADVOCATES ELAINE BORAWSKI Angela Bowen Williamson Professor in Community Nutrition Case Western Reserve University School of Medicine Individual
MEDWISH INTERNATIONAL Cleveland Organization
NURSES BARBARA HUMRICK Nurse practitioner University Hospitals Rainbow Babies & Children’s Hospital Pediatric
JOAN KAVANAGH Associate chief nursing officer, clinical education and professional development Cleveland Clinic Leadership
SEXUAL ASSAULT NURSE EXAMINER TEAM (SANE) Fairview Hospital Group
PHYSICIANS DR. ROBERT MCLAIN Professor of Surgery; Director, Spine Surgery Fellowship Program Cleveland Clinic Lerner College of Medicine; Cleveland Clinic Center for Spine Health Orthopedics
DR. JEFF AULETTA Physician, pediatric hematology/oncology University Hospitals Rainbow Babies & Children’s Hospital Pediatrics
DR. DANIEL MEGES Medical director Care Alliance Mission/charity/ community
DR. GEORGE E. KIKANO Vice dean for community health and director of the Weatherhead Institute for Family Medicine and
FILE PHOTO/JASON MILLER
Last year’s Health Care Hero honorees gather at the InterContinental Hotel. Community Health; Dorothy Jones Weatherhead professor and chair of Family Medicine and Community Health Case Western Reserve School of Medicine; University Hospitals Case Medical Center Family practice
VOLUNTEERS JACK KOCHIS Volunteer Hospice of the Western Reserve Hospice care
MARGE DONLEY Resident, volunteer
The Renaissance/Eliza Jennings Senior Care Network Geriatric care
KATHY C. PENDER Volunteer, member of the board of directors Beech Brook Mental health services
HEALTHIEST EMPLOYERS ERC Hattie Larlham Independence Excavating Medical Mutual of Ohio University Hospitals
20120514-NEWS--20-NAT-CCI-CL_--
H-2
5/11/2012
4:08 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
ADMINISTRATORS OF THE YEAR TERRY DAVIS President/CEO Our Lady of the Wayside Charitable organization From the nomination: Terry Davis is credited with leading Our Lady of the Wayside Inc. for almost 20 years, overcoming challenges presented by the economy, politics and funding, and expanding the number of people served. The organization, which supports children and adults with developmental disabilities as well
JAN MURPHY President Fairview Hospital Hospital setting From the nomination: Jan Murphy has been president of Fairview since 2007, but her tenure at the hospital stretches back nearly 35 years, when she began as a bedside nurse in the oncology department. In between, she’s held various leadership positions at the hospital
EILEEN SAFFRAN Executive director The Gathering Place Family support services From the nomination: The Gathering Place has made a major contribution to “psycho-oncology” in Northeast Ohio by being the first cancer support center in the area. Before its opening in 2000, there wasn’t an organization providing compre-
as adults wishing to live in a congregate-living setting, has grown from in 1993 providing services for fewer than 100 individuals in three homes in Lorain County to working with 450 individuals in nearly 50 locations throughout Cuyahoga and Lorain counties. During his time with The Wayside, Mr. Davis has assisted in leading the organization to: ■ Increase the operating budget from $3.8 million in 1993 to a proposed 2012 budget of $17.5 million. ■ Establish The Wayside as a
major regional employer with about 500 staff members. ■ Introduce a paradigm shift in care for children and adults with developmental disabilities by moving the agency’s consumers from an institutional setting to community-based group homes. ■ Generate a 97% (or better) approval rating in The Wayside’s Consumer Satisfaction Survey, which is completed by the individuals who receive agency services and their families and guardians regarding home safety, physical care, transportation safety, home cleanliness and medical care.
■ Introduce new programming to the agency, including The Wayside’s Pathways Day Program, the organization’s transportation program and programming for children with autism. “As impressive as his vitae is, the ‘heroic’ part comes fully into focus when you observe Mr. Davis with the agency’s consumers,” the nomination said. “Known simply as ‘Terry’ to all of the members of the Our Lady of the Wayside family, each individual The Wayside supports goes about their day to day with the firm belief that Terry is fully committed to their well-being.”
and within Northeast Ohio’s health care community, which provides her “a first-hand understanding of patient, physician and employee needs” for her leadership. The nomination form for Ms. Murphy lists Fairview’s attainment of Magnet status as one of her greatest accomplishments; that designation recognizes hospitals that offer “open communication between nurses
and other members of the health care team and an appropriate staffing mix to attain the best patient outcomes.” Fairview also consistently has scored the highest in patient satisfaction across the Cleveland Clinic system. Ms. Murphy, the nomination notes, has embraced the new health care focus on high-quality care to patients inside or outside the hospital setting; “advances
in telemedicine and other technologies … (are examples) of how Cleveland Clinic is moving toward the health care of the future.” “Jan inspires everyone she comes in contact with about the importance of meeting the health care needs of a community,” said Fairview Park Mayor Eileen Patton in the nomination. “She cares deeply about her staff, the doctors and nurses and the patients that are under her care.”
hensive support services to people with cancer. Eileen Saffran started The Gathering Place more than a decade ago with a powerful vision: to focus on “healing the mind, body and spirit along a cancer journey.” More than 21,000 people have turned to The Gathering Place to do just that, the nomination said. They’ve made more than 150,000 visits to the organization’s facilities
in Beachwood and Westlake. And it’s not just locals who have turned to Ms. Saffran’s nonprofit for help, which is provided free of charge. The nomination stated that The Gathering Place has drawn visitors from all 50 states and several countries. Given her experience in the field, Ms. Saffran has been called on to offer consulting services for the opening of cancer support centers in Akron and Las Vegas. Services offered by The Gathering Place include healthy cooking
classes, yoga, massage, art therapy, group support/counseling and summer animal camp for children with a loved one who has cancer. Ms. Saffran created The Gathering Place after losing both parents to cancer in a three-year period. “Eileen always has viewed the world as a remarkable place with remarkable people,” the nomination stated. “She would tell you she was only trying to help the community, and that would be the truth.”
Marilena DiSilvio
David Valent
CARING FOR YOU WHILE YOU CARE FOR OTHERS CONGRATULATIONS to all those selected as Health Care Heroes Finalists, a dedicated group of individuals who have touched the lives of those they serve. Reminger’s Health Care Law Practice Group is also comprised of a dedicated group of experienced lawyers providing effective counsel relative to all areas of individual and corporate business matters. RESULTS. PERIOD. It’s more than just our motto, it’s our passion. To learn more, contact Marilena DiSilvio or David Valent in Reminger’s Health Care Law practice group.
• Regulatory Matters • Business Transactions • Litigation • Estate Planning • Asset Protection • Billing/ Reimbursement Matters
Results. Period. Reminger.com - 216.687.1311 Akron | Cincinnati | Cleveland | Columbus | Sandusky | Toledo | Youngstown | Ft. Mitchell | Lexington | Louisville
ADVANCEMENTS IN HEALTH CARE DANIEL L. DIETRICH Aerospace engineer NASA Glenn Research Center From the nomination: A sports team could use it to guide the training of athletes. Hospitals could use it to monitor the health of patients with lung disease and other conditions. And, of course, NASA itself has a few uses in mind for the Portable Unit for Metabolic Analysis, a piece of headgear designed to provide real-time, detailed information about the health of the person wearing it. The federal agency could use the PUMA system — which can measure the wearer’s heart rate and collect all sorts of data about a person’s exhale/inhale gas stream — to monitor astronauts’ cardiovascular health and get a sense of how their bodies handle long missions and tasks that involve leaving the spacecraft. NASA Glenn has worked with Orbital Research Inc. of Cleveland, which specializes in advanced controls and miniature devices, to commercialize versions of the PUMA technology for monitoring the health of divers and jet pilots. The NASA center also is working with Summa Health System of Akron to incorporate the technology into a system that can monitor patients suffering from chronic obstructive pulmonary disease, a common form of lung disease.
20120514-NEWS--21-NAT-CCI-CL_--
5/9/2012
1:29 PM
Page 1
To those building a healthier community:
Our heartfelt thanks. University Hospitals congratulates all of this year’s Health Care Heroes honorees. Your commitment to improving the health of our community is truly inspiring.
We’re also honored to have been named one of Northeast Ohio’s Healthiest Employers by Healthiest Employers, Inc. – a distinction made possible by the dedication of our leadership to fostering wellness throughout our community and among our entire family of physicians, nurses and staff.
To access our expansive network of hospitals and health centers across Northeast Ohio, call or visit: 1-866-UH4-CARE | 1-866-844-2273 UHhospitals.org
© 2012 University Hospitals MIS 00218
20120514-NEWS--22-NAT-CCI-CL_--
H-4
5/10/2012
1:34 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
Action Management Services Earning the trust of Northeast Ohio professionals for over 30 years.
Professional -- Honest To The Point • Executive Search • Professional Placement • Consulting
ACTION
Management Services 6055 Rockside Woods Blvd. Cleveland, OH 44131
216-642-8777 www.actionmgmt.com
TAKE ACTION TODAY!
THE MOST TRUSTED NAME IN HOME HEALTHCARE.
Celebrating the Commitment and Dedication of Our Caregivers.
VISITING NURSE ASSOCIATION OF OHIO
Your health at home
Health & Life Insurance © 2012 Medical Mutual of Ohio
BARBARA DAVIS Therapist Fieldstone Farm Therapeutic Riding Center Innovative therapeutics From the nomination: Not only can you call Barbara Davis, who goes by the nickname “Bobbin,” a physical therapist and a horsewoman. You also may call her, as associates do, a “pioneer.” Her pioneering comes from a blend of the three: In the late 1980s, she launched at Fieldstone Farm the practice of therapy performed using a horse as medical professionals just were beginning to understand its unique benefits. As one of the first people in the country to explore this approach for physical, occupational and speech therapies, she was present at the outset of what now is accepted as “hippotherapy practice” or therapy performed using a horse. In Ms. Davis’ nomination, Lynnette Stuart, executive director of Fieldstone Farm, said, “She had
MARILYN MOUNT
The VNA of Ohio would like to recognize recogn the contributions of our nurses and caregivers who make such a difference in our patients lives. They are committed to providing compassionate, quality home healthcare so our patients can remain as independent as possible at home.
216-931-1400 1-877-698-6264 www.VNAohio.org
ALLIED HEALTH
Physical therapist Retired Physical therapy From the nomination: Known for her wisdom and integrity, Marilyn Mount has made an indelible mark on the physical therapy profession. While patients always have been of utmost priority in her work, which has included time at University Hospitals and the Cleveland Clinic, she’s also tirelessly mentored young physical therapists.
the foresight to see that there could be an incredibly effective marriage between physical therapy and horses. Our students are achieving what they previously thought was impossible. It is amazing and inspiring.” Riding a horse helps clients duplicate the walking sensation unlike any machine can do, said Lisa Kaufman, a physical therapist at Fieldstone. “Physical therapists can spend years with patients in the clinic and not see the results the horses can give them. And for those who can’t walk this can be life-changing, giving them the neurological input to help them learn to walk.” By attending conferences annually, Ms. Davis has helped share her knowledge with thousands of people in physical therapy. Over these 30 years, the practice has gained acceptance ranging from being included in the profession’s curriculum to a certification process. Today, Fieldstone employs three physical therapists to meet demand.
“Marilyn often keeps in touch with those she has mentored … and is always available for advice and guidance to foster professional development of her past and current students and professional colleagues,” the nomination said. “These types of actions have had a major impact on developing the next generation of professionals.” Ms. Mount is a past chairwoman of the Allied Health Education Council at the Cleveland Clinic and also serves on the advisory committee for Cuyahoga Community College’s physical therapist assistant program. Moreover, in 1982, she launched the Physical Therapy Directors Forum, which was instrumental in helping share innovative physical therapy programs among local hospitals. She’s also a guest lecturer at Cleveland State University. “The value of Marilyn’s work as a Health Care Hero rests in her significant and sustained mentorship of current and future practitioners through her work,” the nomination said.
BARBARA PALMISANO Director, Offices of Geriatrics and Palliative Care Northeast Ohio Medical University Palliative care From the nomination: To say that the current geriatrics program at Northeast Ohio Medical University is what it is today because of the vision and efforts of Barbara Palmisano is no exaggeration. Ms. Palmisano is the chief architect of the current geriatrics curriculum at NEOMED, and she mentors students in and out of the classroom as both a teacher and an adviser to student interest groups on campus. “She feels her most important role is to sensitize the students to the needs of the vulnerable — frail, disabled families and individuals dealing with life-threatening illnesses and end-of-life issues from birth to old age,” the nomination said. “Much of what she does, and loves to do, is helping students and practitioners realize that they can make a difference — to help fuel their passion to improve the quality of life of others.” Largely through her efforts, NEOMED is in the process of hiring, in conjunction with Summa Health System, a full-time geriatrician who will be engaged in patient care, teaching and research at both organizations. Ms. Palmisano also serves in various coalitions that promote best practices and collaboration across agencies and institutions. She works closely with many community hospice agencies and the geriatric and palliative care divisions at Summa Health System with the aim of involving health care professionals in teaching and also linking students to them for shadowing and clinical experiences. In one of the more memorable projects of her 25-year career at NEOMED, Ms. Palmisano established the Office of Palliative Care, one of the few, if not the only, in the country to be established in a medical university.
20120514-NEWS--23-NAT-CCI-CL_--
5/11/2012
4:12 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
HEALTH CARE ADVOCATES ELAINE BORAWSKI Angela Bowen Williamson Professor in Community Nutrition Case Western Reserve University School of Medicine Individual From the nomination: Elaine Borawski uses the community as her laboratory. As a community nutrition professor, Dr. Borawski studies how the community in which someone lives affects that person’s health. Dr. Borawski, who is trained as a medical sociologist and has post-doctoral training in public health and epidemiology, primarily has focused on reducing adolescent risk behavior. “Her colleagues call her a ‘fire-
MEDWISH INTERNATIONAL Cleveland Organization From the nomination: American hospitals strive to have state-of-theart equipment and facilities, while regulations and expiration dates promote highquality health care. Unfortunately, this situation also creates tremendous waste, as medical devices are replaced by new versions and still-usable supplies are discarded. Meanwhile, in developing nations, 10 million people die each year from treatable conditions.
ball,’ a highly energetic community health advocate, and they say her passion is a contagious and motivating force,” the nomination said. She applies her passion to teaching, research and partnerships and works to give a voice to the underserved. “Dr. Borawski is a health care hero of prevention advocacy and life improvement,” the nomination said. Through her work, she brings together individuals and organizations to identify ways to change behavior and improve health. One such example of her efforts is the Center for Health Promotion Research, which she founded in 2000. The center’s flagship project — the
Cleveland Corner Store Project — provided healthy food options to those living in areas without full-service grocery stores. This pilot project helped the university attract a Centers for Disease Control grant in 2009 to establish the Prevention Research Center for Healthy Neighborhoods and expand the Corner Store Project. Other outcomes of the Prevention Research Center for Healthy Neighborhoods have included: ■ Helping to launch the Cleveland-Cuyahoga County Food Policy Coalition. ■ Establishing a Food Policy Research Working Group. ■ Increasing use of food stamps at farmers markets.
In 1991, Lee Ponsky saw this incongruity and recognized an opportunity to address both challenges simultaneously. MedWish International is the manifestation of his idea. By connecting American hospitals with overseas counterparts, MedWish provides a service to both. It is led by a bare-bones staff of nine that works out of donated warehouse space. Since 1993, MedWish has saved 2.7 million pounds of surplus from ending up in Ohio’s landfills. In 2011, MedWish sent 231 shipments to 59 countries in need of medical supplies. Doctors from around the
world visit Cleveland to personally choose supplies . MedWish also engages more than 2,000 volunteers per year, representing every faith and background. As volunteers, young people with autism and other disabilities work in a meaningful, productive job, socialize and build careers. It’s little wonder that MedWish received a grant from the Mt. Sinai Health Care Foundation to double the size of its special needs volunteering program for 2012, increasing the number of participants from 50 to 100 each week. In 2011, MedWish also attracted some $175,000 of foundation funding.
H-5
20120514-NEWS--24-NAT-CCI-CL_--
H-6
5/10/2012
2:43 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
NURSES BARBARA HUMRICK Nurse practitioner University Hospitals Rainbow Babies & Children’s Hospital Pediatric From the nomination: The parents of Barbara Humrick’s patients truly consider her a hero. “No one I have met in my lifetime epitomizes this term better than Barb Humrick,” said one of three mothers of Ms. Humrick’s patients to nominate her for this award. “She serves her patients with compassion,
empathy and expertise.” They praised her for her efforts to get to know the children she cares for, not just their medical records. One mother wrote of Ms. Humrick keeping up with her son as he was accepted at a university and then left for school. Another wrote of her advocacy for her patients. “I can remember a time my son was in a lot of pain during rounds, and I was in the hallway listening to the doctors discussing his case,” she wrote. “Barbara wouldn’t settle for any-
CONGRATULATIONS TERRY DAVIS President/CEO From The Board of Directors, Staff and Residents of
thewayside.org
thing less than getting him the proper medication to make him comfortable and getting it for him immediately.” Ms. Humrick also is one of the founders of In It Together, an organization that offers support and advocates for pediatric cancer
patients. “It’s not a job to her or even a career to her. It’s her life; it’s her passion,” wrote mother Debbie George, who worked with Ms. Humrick in co-founding the support group. “She cures, but cares first. “
JOAN KAVANAGH
Cleveland Clinic’s International Nurse Scholars Program; and led construction design and buildout of a state-of-the-art simulation skills lab. Additionally, among a number of other duties, she has served as chairwoman of the Dean’s Roundtable, an initiative to attract and develop nurses/clinical scholars as potential adjunct faculty to assist Northeast Ohio schools of nursing. Ms. Kavanagh also oversees Northeast Ohio schools of nursing affiliating at the Cleveland Clinic main campus, increasing student affiliations from 600 to 1,300 in a three-year period. Ms. Kavanagh is referred to in the nomination as an integral member of the nurse-physician collaboration committee, examining best practices to create expert teams. She also is considered a facilitator of evidence-based nursing practices and nursing research. “This nominee is a dynamic, inspirational and remarkable woman who inspires nurses to excel through education, reflection and evidence-based practice,” the nomination said. “She is a nurse devoted to attenuating suffering, promoting self-care and facilitating independence.”
Associate chief nursing officer, clinical education and professional development Cleveland Clinic Leadership From the nomination: Joan Kavanagh is described as having an “unbridled passion for both nursing and teaching, blending the two disciplines seamlessly to advance the practice of nursing.” As associate chief nursing officer, clinical education and professional development at the Cleveland Clinic, Ms. Kavanagh is involved in nursing education, as well as efforts to address nursing and nursing faculty shortages, and nursing recruitment and retention. “She is the voice of reason and of vision in the on-boarding of new nurses, continued development of experienced nurses and relationship building between disciplines,” the nomination said. Among her accomplishments in the arena of nursing education, Ms. Kavanagh has created an enterprise-wide nursing education strategy integrating organizational learning and performance into clinical education, research and advanced practice; grown the
CAROLE WRIGHT Director of nursing Eliza Bryant Village Geriatric From the nomination: Carole Wright, like many others highlighted in this section, has worked her way up the health care ladder, from a certified nursing assistant at Eliza Bryant Village in 1981 to her appointment as director of nursing at the organization in 2005. Today, she manages nursing operations and oversees clinical meetings, among other duties at Eliza Bryant. Its skilled nursing facility serves 350 seniors annually. Ms. Wright, according to the nomination, has dealt efficiently
SEXUAL ASSAULT NURSE EXAMINER TEAM (SANE) Fairview Hospital Group From the nomination: The 21 nurses who are part of the Sexual Assault Nurse Examiner Team (SANE) program deal compassionately and professionally with a patient population that is fragile and in need of specialized care. When the SANE team started in 2004, its nurses worked exclusively with patients who were victims of sexual assault. But the need for services went beyond that grim reality. The team of nurses “realized that many sexual assault patients were also being victimized by their intimate partners and family members in other ways, such as physical abuse, neglect, financial exploitation or emotional abuse,” according to
Congratulations Thank You Solon
$1,995,000
Moreland Hills
$3,295,000
Spectacular country French stone and stucco manor sited on over 9 breathtaking acres! Fabulous for entertaining and grand scale living, this home offers every amenity imaginable. A breathtaking entrance with circular stairs opens into the great room with a two story wall of windows and magnificent fireplace.
Best value/investment on the market today. With more than 8.8 million dollars at cost this estate is priced to sell, Google Casa de Kraftmaid for a full video. One of a kind estate offering a lifestyle that is truly second to none! Every imaginable luxury and amenity is offered.
Russell
Waite Hill
$1,450,000
A gated estate offering every possible amenity and luxury imaginable. Sited on over 7 glorious acres with fabulous views of the lake, this English country manor will take your breath away. In-ground pool, tennis court, exquisite gardens, outdoor kitchen and beautiful patios. A truly beautiful presentation.
&
to our clients and to the Health Care Hero honorees for your dedication in making Northeast Ohio a world-renowned center for health and wellness.
$1,895,000
A long drive leads to this magnificent stone and cedar country manor sited on 10 plus glorious acres with a 3 acre private lake. Custom designed and built, this one owner home is the definition of quality and great design. Every luxury and amenity imaginable are found within.
www.tuckerellis.com
When buying or selling your home.
Just ASK Adam S. Kaufman 216.831.7370
Check out all of Adam’s listings at www.justaskadam.com
#1 State of Ohio Company Top Producer Pepper Pike Office: 28879 Chagrin Blvd., Woodmere, OH 44122
Healthcare Practice Group Co-Chairs: Vicky Vance Ray Marvar
• •
216.696.3360 216.696.3767
• •
victoria.vance@tuckerellis.com ray.marvar@tuckerellis.com
20120514-NEWS--25-NAT-CCI-CL_--
5/9/2012
4:10 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
H-7
PHYSICIANS with declining Medicaid and Medicare reimbursements, yet also has been innovative in creating new programs, such as its Alzheimer’s Care Unit — the first such center in Cleveland’s inner city — and its Skilled Care Unit. “As a leader, Ms. Wright is innovative and a visionary. She looks at situations and creates solutions by designing programs and services to meet the needs of seniors living in the community, EBV’s residents and senior housing tenants,” the nomination said. “She has been a vital link in the continuous improvement process throughout the organization and has played a leadership role in extending quality
the nomination. As a result, many of the patients “were also seeking treatment for other health care conditions that may have been exacerbated by living with violence.” By 2010, the SANE nurses expanded the program to incorporate all patients experiencing forms of violence. They received additional training and provide “compassionate care to all of their patients,” performing delicate duties such as collecting evidence of assaults. The nurses, who work other jobs within the hospital in addition to their SANE duties, care for “male and female patients of all ages, from the very young to the very old,” the nomination stated. “Violence, like cancer, knows no bounds.”
nursing care to our residents.” Other programs she’s helped develop and implement include a “Rehabilitation to Home” program that returns 120 seniors to active living at home each year, and Eliza Bryant’s Family Ambassador program, which has improved communication with families whose loved ones are in crisis. “Carole Wright continues to motivate all who come in contact with her and has encouraged everyone to continue their nursing education,” the nomination said. “She will always be a cheerleader, coach, mentor and role model, never forgetting her own cultural roots and humble beginnings.”
Their goal is both simple and hugely ambitious: “to help the patient return to optimal health and assist in interrupting the cycle of violence through intervention and prevention nursing techniques.”
COMING UP Purchase tickets to this year’s Health Care Heroes luncheon
DR. ROBERT MCLAIN Professor of Surgery; Director, Spine Surgery Fellowship Program Cleveland Clinic Lerner College of Medicine; Cleveland Clinic Center for Spine Health Orthopedics From the nomination: A Warren, Ohio, patient of Dr. Robert McLain’s observes that “some among us have gifts that defy explanation.” That is how she recounted the affable surgeon who performed the operations that corrected most
DR. JEFF AULETTA Physician, pediatric hematology/oncology University Hospitals Rainbow Babies & Children’s Hospital Pediatrics From the nomination: Shannon FitzGerald didn’t think Dr. Jeff Auletta could possibly live up to his reputation. While sitting in the waiting room before her appointment with Dr. Auletta, another mom in the waiting room couldn’t stop talking about how great he was and how
of a curve in her spine. The procedures even helped her regain three inches in height she had lost over the years. Such is the domain of Dr. McLain, who holds three provisional patents for spine-related medical devices, has written more than 170 professional articles and maintains a busy clinical practice. He treats everything from spinal fractures to rebuilding the spine after surgery to remove a tumor. Dr. McLain joined the Clinic after
he was recruited from the University of California, Davis, where he directed its spinal care center. He had trained as a fellow in spine surgery there and obtained his medical and undergraduate degrees there as well, with an internship and residency in between in Iowa. In addition to other tasks, he has led several training programs and is noted for helping train nurses, physicians and others in nuances of spine care.
lucky Ms. FitzGerald was that he would be treating her 17-year-old son, who had been diagnosed with cancer. When she talked to the nurses, they added praise. She was skeptical at first but now agrees wholeheartedly. Ms. FitzGerald lauded how delicately Dr. Auletta handled her son’s illness, how he encouraged him to keep applying to colleges and how he continues to support her son today. “Because of Dr. Auletta’s example
of kindness, generosity and overall goodness, my son not only received tremendous medical care, but also saw first-hand what it means to be a man serving others — a gift that most parents want their children to emulate,” she wrote in the nomination. Dr. Auletta also was a founding member of In It Together, a group aiming to help young people diagnosed with cancer in Northeast Ohio. “Dr. Auletta is an endless advocate for our young people who are diagnosed, in treatment or surviving cancer,” the nomination said.
This year’s Health Care Heroes winners and finalists will be honored at a luncheon from 11 a.m. to 1:30 p.m. May 23 at Executive Caterers at Landerhaven, Mayfield Heights. To purchase tickets, contact Jessica D. Snyder at 216-771-5388 or jdsnyder@crain.com. Information also is available at www.crains cleveland.com/hchtix.
Congratulations to our healthcare heroes. Cleveland Clinic celebrates our world-class caregivers who were recognized as Crain’s Cleveland Business Health Care Heroes. 7KHLU SDVVLRQ IRU SXWWLQJ SDWLHQWV ÀUVW LV ZRUWK\ RI WKLV KRQRU DQG we are proud to have them as part of our team. Joan Kavanagh, MSN, RN, ACNO, Cleveland Clinic Robert McLain, MD, Cleveland Clinic Marilyn Mount, Cleveland Clinic Jan Murphy, FACHE, Fairview Hospital Sexual Assault Nurse Examiner Team (SANE), Fairview Hospital
clevelandclinic.org
20120514-NEWS--26-NAT-CCI-CL_--
H-8
5/9/2012
3:05 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
PHYSICIANS DR. DANIEL MEGES Medical director Care Alliance Mission/charity/ community From the nomination: Dr. Daniel Meges first began serving the homeless in 1992 as a volunteer physician at the evening outreach clinic at St. Malachi Center in Cleveland. He was so moved by his work at St. Malachi that he left his fulltime job at Parma Community General Hospital to pursue working with the homeless. His selfless mission ultimately
led him to Care Alliance, where he donates a vast majority of his time, for a fraction of the salary of a typical physician. Care Alliance is a Federally Qualified Health Center that provides primary medical care, dental care and supportive services to individuals and families experiencing homelessness and living in public housing in Cleveland. Care Alliance first began as Cleveland Health Care for the Homeless in 1985 and since that time has grown into an integral member of the safety net, employing nearly 70 staff members in 2011.
“The personal and professional contributions of Dr. Meges over the past 20 years to serving the homeless in Cleveland are tremendous.” Only months after joining the organization, Dr. Meges stepped into the role of medical director, a position from which he oversees care for more than 7,000 people living in extreme poverty. Under his leadership, Care Alliance increased its number of patients by 2% and the number of visits by 10.5% — a tremendous feat given the medical complexities and transient lifestyles of the group’s patient population. During his time as medical director, he has taken on several
major initiatives including strengthening chronic care management, enhancing prevention efforts with a special focus on smoking cessation and most notably, supporting the complete conversion to electronic medical records in June 2011. “The personal and professional contributions of Dr. Meges over the past 20 years to serving the homeless in Cleveland are tremendous,” Care Alliance CEO Francis Afram-Gyening said in the nomination form.
DR. GEORGE E. KIKANO Vice dean for community health and director of the Weatherhead Institute for Family Medicine and Community Health; Dorothy Jones Weatherhead professor and chair of Family Medicine and Community Health Case Western Reserve School of Medicine; University Hospitals Case Medical Center Family practice From the nomination: From the start, Dr. George E. Kikano aimed to do more. So in addition to serving patients for more than two decades, Dr. Kikano also has championed research and programs that create ways to provide better patient care at less expense and has worked to at-
VOLUNTEERS MARGE DONLEY Resident, volunteer The Renaissance/Eliza Jennings Senior Care Network Geriatric care
Congratulations to Independence Excavating Benefits Resource Group is proud to work with Independence Excavating, one of this year’s Healthiest Employers. Independence Excavating is truly a leader in our community due to its exemplary dedication to its employees and their families. We are honored to be a part of their wellness program.
From the nomination: As a volunteer worker and 23-year resident of The Renaissance, Miss Donley “helps anyone, anytime, anyplace,” the nomination form said. She does everything from organizing an annual bridge luncheon to editing the resident newsletter. She also oversees the assignment of resident parking spots, and recruits and leads a team of more than 30 other volunteers (nearly 20% of independent living residents) at the contin-
JACK KOCHIS Volunteer Hospice of the Western Reserve Hospice care
BRG outperforms traditional benefits partners with our value-added services. Our goal is to provide you with business strategies that go Beyond Benefits. Health and Wellness | Executive Benefits | Retirement Plans | Investment Advisory | Voluntary/Ancillary Benefits | Business Insurance Benefits Resource Group 6480 Rockside Woods Blvd. S. | Independence, OH 44131 | 216-520-5000 www.benefitsrg.com
From the nomination: Jack Kochis tends to describe his volunteer work as “small efforts” or as “this is just what I do.” To those he helps, however, Mr. Kochis’ deeds often are a big-time help. For example, on one recent day he prevented an elderly patient and his wife from having to abandon their home due to costly water problems in the basement; assisted a single mom too weak to go out to receive her medication in a timely manner; and picked up milk, mail and a few other essentials, which he delivers to a homebound patient along with a hearty dose of socialization and companionship. Anyone who has ever been incapacitated knows the importance of that kind of help. The Hospice of the Western Reserve says that in the four years Mr. Kochis has volunteered for the organization, he has put in many such days. When he started, he
20120514-NEWS--27-NAT-CCI-CL_--
5/9/2012
3:06 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
H-9
VOLUNTEERS tract more students to the family medicine profession. Dr. Kikano became Case Western Reserve University’s first vice dean for community health in October 2011, a position in which he’s charged with leading the school’s new Weatherhead Institute for Family Medicine and Community Health. Through the institute, Dr. Kikano and his colleagues have expanded their work to involve faculty across the university. Its programs include the Urban Health Initiative and the Prevention Research Center for Healthy Neighborhoods. In his decade as chairman of the department of family medicine, he’s maintained its existing strengths while adding new layers of distinction. Dr. Kikano leads the
uing care retirement community. Miss Donley also chairs the resident council’s operations committee, meets with all new residents and writes a biography for the resident photo directory. “Miss Donley has the outstanding ability to look globally and envision what is best for the community as a whole and for its residents without regard for her personal concerns,” the nomination said. In addition to those duties, the nomination said that Miss Donley takes continuing care of a resident who suffered a stroke many years ago. “Miss Donley challenges others to become involved and to contribute to the community,” the nomination said. “Miss Donley encourages and inspires residents to continue to grow as individuals and live their lives to the fullest. She is selfless, and recognized by her peers for always placing others’ needs ahead of her own.”
said he would never say no to a patient in need. He has more than lived up to that, and he’s improved the lives of countless patients in the process, according to Hospice officials. A full-time contractor as well, Mr. Kochis has many skills that come in very handy for hospice patients. But he also has a quality that no job or trade school can teach, they say — compassion. Sharon Richman, coordinator of volunteers, recalled as part of the nomination working with Mr. Kochis as they helped to keep an elderly father and his adult son connected in the last weeks of the son’s life. The two were in separate nursing homes. Though only about two miles away from each other, the facilities may as well have been light years away, as neither father nor son could drive and no transportation could otherwise be provided. As the patient declined and weakened, he was distraught at the idea that his last opportunities to spend the afternoons with his dad would be denied. “I knew right away that Jack was my go-to volunteer,” Ms. Richman said. “What touches my heart is how deeply committed Jack is, and how willing he is to rearrange his own life to accommodate a patient need.”
department’s House Calls program, which serves 300 homebound elderly people and was inspired by a patient who ended up being admitted to the hospital because she was unable to get to a pharmacy to refill her prescription. Dr. Kikano has overseen the development of an urban medicine track within the medical school curriculum to engage students to provide family medicine or primary care in urban environments. It began last year. He also oversees a new residency in primary care, which is being carried out through local shelters for homeless women and children in areas where the emergency room is currently the only access to care.
KATHY C. PENDER Volunteer, member of the board of directors Beech Brook Mental health services From the nomination: For the past 50 years, Kathy C. Pender has dedicated herself to Beech Brook and to helping children facing mental and physical health issues. She started as a volunteer while she was a graduate student and continued her efforts after she received her master’s degree. A licensed therapist, she put her professional skills to work for children struggling with serious mental illness, trauma and the
aftermath of abuse and neglect. Over the years, she has transitioned from handson volunteering to holding leadership positions at Beech Brook. She plans and organizes fundraising events, raises money and is involved in the strategic planning of the organization. She provided the funds for the creation and maintenance of a garden surrounding the Pender Pathway to Hope. “She is a gracious and tireless ambassador for Beech Brook in the community, always working to bring in new supporters and help them understand the needs of children and families coping with
“She is a gracious and tireless ambassador for Beech Brook in the community, always working to bring in new supporters.” severe emotional and behavioral problems,” the nomination said. In addition to her work with Beech Brook, Ms. Pender financially supports other Cleveland organizations serving children through a fund she established with her husband, Jim. The fund, the Michael J. Pender Fund, honors the memory of their son, who died at age 19 after a long illness.
You were expecting brisket, maybe?
Lemon Basil Salmon
Or over-roasted chicken? Try Rock Cornish Hen with Cranberry Glaze. Or Seafood Spinach Fennel Salad. Even better, try adjusting your expectations of Senior Living – at least as we do it at Menorah Park. Our amenities are as unexpected as our chefs’ new Signature menu. Every week night, you and your family can enjoy dishes like this in any of our campus buildings, from senior apartments to assisted living, rehab and nursing care. For more information about our services (or the Braised Osso Bucco), call 216.831.6500.
R.H. MYERS APARTMENTS | WIGGINS PLACE | STONE GARDENS | MENORAH PARK NURSING HOME | MARCUS POST-HOSPITAL REHAB CENTER
20120514-NEWS--28-NAT-CCI-CL_--
H-10
5/9/2012
3:46 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
BUSINESS● Private medical practice credit & special physician mortgage loan program*
216.359.5597
*Great rates & most current terms are available, subject to credit approval & other program terms
115 years of caring for seniors as a premier provider of outstanding healthcare services
The Board, Staff, and Volunteers of Eliza Bryant Village CONGRATULATE Carole Wright, RN Director of Nursing Eliza Bryant Village 2012 Crain’s Health Care Heroes Geriatric Nursing
Eliza Bryant Village 7201 Wade Park Avenue, Cleveland, OH 44103 216.361.6141 • www.elizabryant.org
HEALTHIEST EMPLOYERS ERC
INDEPENDENCE EXCAVATING
From the nomination: Pat Perry, president of ERC, considers work-life flexibility the most important part of his organization’s wellness initiative. Mr. Perry, who for 14 years has led the human resources services organization in Mayfield Village, said the roughly 25 employees at ERC have tremendous flexibility in their schedules; there’s no set amount of vacation, sick time or bereavement leave. “If you don’t put your family first … you can’t work at ERC,” he said. “We’re just focused on results.” ERC also offers its fair share of the more traditional wellness offerings: Fitness club memberships are paid for if an employee goes at least eight times a month; an onsite wellness coach is made available to employees; an annual health day is
From the nomination: The nearly 60-year-old company, best known for its work on some of downtown’s high-profile buildings, including the Justice Center, Tower City, Rock and Roll Hall of Fame and Museum, and others, sees mutual benefit in its many wellness programs: potentially life-saving knowledge for its employees, and controlled health care costs, reduced absenteeism and increased productivity for the company.
HATTIE LARLHAM From the nomination: First instituted in 2007, Hattie Larlham’s wellness program has grown from one that simply focused on building awareness among employees about healthy lifestyle choices into one that challenges and motivates employees to change their lifestyles for the better. Hattie Larlham’s wellness program incorporates contests, a wellness fair and a health insurance incentive program through which employees can receive discounts on their health care costs by completing certain wellness activities.
The Weatherhead Institute for Family Medicine and Community Health congratulates Health Care Heroes Dr. Elaine Borawski and Dr. George Kikano
case.edu/medicine
held; and complimentary fruit, nuts and bottled water are on site. Still, closest to Mr. Perry’s heart is the balance he makes available to his staff. “It’s just saying you’re an adult … manage your life,” he said. And for those employers who might question the complications that might be associated with such a hands-off approach to employee time and whether such a method works, Mr. Perry said it comes down to employing people who you trust to do the job. “The litmus test is are we retaining top people and is the work excellent,” he said.
Moreover, Hattie Larlham — a nonprofit dedicated to providing opportunities to adults and children with developmental disabilities — has injected healthier dining options into its vending machines and added more vegetables to its salad bar. Hattie Larlham has achieved measurable results through its program. For one, the organization said 310 employees have embraced the health insurance incentives. The group also said it significantly reduced health insurance claims of more than $25,000. Going forward, Hattie Larlham will look to incorporate more preventive health measures by promoting health screenings among its employees. It also plans to mandate that employees participate in one more activity to be eligible for health insurance incentives.
MEDICAL MUTUAL OF OHIO From the nomination: Since Medical Mutual is in the health insurance business, it shouldn’t be a surprise that it takes a long-term approach to its employee wellness program, which is called, appropriately enough, Wellness for Life. The program, formed eight years ago, is designed “to assist employees with implementing lifestyle changes and decreasing their risk for chronic disease.” As the Wellness for Life program reaches maturity, “the focus is shifting from basic program awareness and participation to concrete and significant outcomes — both in the reduction of health risks for employees and a return on investment
UNIVERSITY HOSPITALS From the nomination: University Hospitals strives to create an environment in which employees are encouraged to improve their health, financial, work and life well being. To do that, University Hospitals has offered a number of wellness incentives, including the ability to reduce annual health insurance premiums up to $600 for individuals and $1,200 for an employee and spouse or same-sex domestic partner by choosing a primary care physician; participating in the tobacco cessation program; completing a health assessment; and completing a wellness program, among other activities. The hospital’s 12-week wellness program, Shape Up UH, currently
DaVita : A community first, a company second. ®
To learn why DaVita is the only dialysis company among the Health Care Heroes finalists, visit DaVita.com.
© 2012 DaVita Inc. All rights reserved. 06061-01-FMKT
20120514-NEWS--29-NAT-CCI-CL_--
5/11/2012
10:37 AM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 14 - 20, 2012
The company reports that one of its most significant initiatives is predictive modeling for, at its peak, about 400 employees. “By analyzing the individual’s (employee or dependent) prescription drug utilization, we have a program that identifies medium- and high-risk individuals” and enrolls them in a health care coaching program. Its goal with that program is to
for the company,” Medical Mutual says. The primary objective of Wellness for Life is to create “a cohesive package of programming” that engages employees on three levels: ■ Environment or corporate culture “that encourages healthy choices and a safe working environment; e.g. tying wellness into benefit structure”; ■ “Individual triage to the appropriate programs and resources” through a comprehensive health assessment; and ■ Population-focused programs and interventions to engage employees in a range of general areas, including wellness center opportunities, preventive health exams, nutrition and tobacco cessation.
engage employees on improving their health before they have a significant health event and a subsequently large claim. Independence also offers employees incentives, including discounted premium contributions for those agreeing to certain stipulations, such as an annual physical and others. The company’s wellness initiatives have led to a decline in its health care costs.
Throughout the year, employees accumulate reward points for activity completion and can use those points toward incentives tied to the company’s benefits structure. Since the program’s inception, Medical Mutual says it has “successfully increased the percentage of individuals considered low risk for chronic disease by 8%, and a direct correlation has been established between low risk employees and health care expense and productivity measures.”
Independence Excavating, Inc. is proud to be recognized as Healthiest Employer in Northeast Ohio by Crain’s Cleveland Business.
Congratulations to our employees for their continued dedication and making their health a priority!
5720 Schaaf Rd. Independence, Ohio 44131
216.524.1700
www.indexc.com
FINALISTS Finalists in the Healthiest Employers category: has more than 4,000 participants. University Hospitals also implemented a new tobacco use policy. The hospital, starting Jan. 1, made a commitment to not hire external candidates who use tobacco products and to test external candidates for tobacco use during pre-employment screening. The company also offers a wellness site for employees — www.uhwellness.org — that details all of the wellness options available, including financial, stress management and health tools. The hospital provides links to walking routes near the hospital, information about wellness programs and fitness discounts.
BCG & Co. Chelko Consulting Group Cleveland Indians Baseball Co. LP DaVita Dialysis Edgepark Medical Supplies Noble-Davis Consulting Inc. NOF Metal Coatings North America Inc. Northeast Ohio Regional Sewer District O'Neill Management Oswald Cos. Pacific Bells Inc. PlayhouseSquare TCP The Lubrizol Corp. Westfield Group
LAST YEAR’S WINNERS ADVANCEMENTS IN HEALTH CARE Dr. Derek Abbott, Case Western Reserve University School of Medicine Dr. Christine Zirafi, Parma Community General Hospital Codonics Inc.
NURSE Irene Fitzgerald, Holy Family Hospice Lynne Yurko, MetroHealth Medical Center Karen Tatter, MetroHealth Medical Center
ALLIED HEALTH Stacie Beck, Crossroads Hospice Maggie Langley, The Renaissance Adrianne Shimek, Montefiore Home/ Cleveland Clinic
VOLUNTEER Lynda Corea, Lifebanc Dr. Gary S. Hoffman, The Free Medical Clinic of Greater Cleveland/ Cleveland Clinic Walter Oswald, Hospice of the Western Reserve Sue Sanvido, University Hospitals Case Medical Center
HEALTH CARE ADVOCATE William Considine, Akron Children’s Hospital Gail McPeake, Koinonia Homes Inc. Josephine Jones, Lake Health PHYSICIAN Dr. Sara Stein, Stein Wellness Centers Dr. Sarah Friebert, Haslinger Family Pediatric Palliative Care Center, Akron Children’s Hospital Dr. Bruce Cohen, Akron Children’s Hospital
CHAMPIONS OF CORPORATE WELLNESS Bendix Commercial Vehicle Systems LLC Hylant Group Donley’s Inc. Melin Tool Co. TCP Inc.
H-11
Honoring Health Care Professionals, Volunteers & Champions of Corporate Wellness
Reserve your tickets today www.CrainsCleveland.com/hchtix or call 216-771-5388
Presented by:
Sponsored ed by:
20120514-NEWS--30-NAT-CCI-CL_--
30
5/11/2012
10:10 AM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
LARGEST MANUFACTURING COMPANIES RANKED BY FTE LOCAL EMPLOYEES(1)
Company Address Rank Phone/Website
Full-time Full-time equivalent equivalent local employees employees in Ohio
Parent company Headquarters
Local manufacturing facilities
Products manufactured locally
Top local executive Title
1
General Motors Co. P.O. Box 33170, Detroit 48232-5170 (313) 556-5000/www.gm.com
6,000
8,800
General Motors Co. Detroit
Lordstown, Parma Metal Center
Chevrolet Cruze and parts for GM makes and models
Robert Parcell, plant manager, Lordstown; Al McLaughlin, plant manager, Parma
2
Timken Co. 1835 Dueber Ave., S.W., Canton 44706 (330) 438-3000/www.timken.com
4,750
5,300
Timken Co. Canton
Canton
Steel and bearing rollers
James W. Griffith president, CEO
3
Swagelok Co. 29500 Solon Road, Solon 44139 (440) 248-4600/www.swagelok.com
4,000
NA
Swagelok Co. Solon
Solon, Highland Heights, Strongsville
Fluid system solutions, including products, assemblies and services
Arthur F. Anton president, CEO
4
Ford Motor Co. One American Road, Dearborn 48126 (800) 392-3673/www.ford.com
3,282
6,900
Ford Motor Co. Dearborn, Mich.
Avon Lake, Brook Park, Walton Hills
E -Series, 3.5 L EcoBoost and 3.7 L Duratec engines, body side panels, deck lids, doors, NA fenders, floor pans
5
Sherwin-Williams Co. 101 W. Prospect Ave., Cleveland 44115 (216) 566-2000/www.sherwin-williams.com
3,112
3,776
Sherwin-Williams Co. Cleveland
Cleveland, Bedford Heights Coatings and related products
Christopher M. Connor chairman, CEO
6
Goodyear Tire & Rubber Co. 1144 E. Market St., Akron 44316 (330) 796-2121/www.goodyear.com
3,000
NA
Goodyear Tire & Rubber Co. Akron
Akron
Tires
Richard J. Kramer chairman, president, CEO
7
Lincoln Electric Co. 22801 St. Clair Ave., Cleveland 44117 (216) 481-8100/www.lincolnelectric.com
2,466
2,765
Lincoln Electric Holdings Inc. Euclid
Euclid, Mentor
Welding and cutting products
John M. Stropki, chmn., president, CEO; George D. Blankenship, sr. vice president, president, Lincoln Electric North America
8
Parker Hannifin Corp. 6035 Parkland Blvd., Cleveland 44124 (216) 896-3000/www.parker.com
2,242
3,587
Parker Hannifin Corp. Cleveland
Akron, Avon, Elyria, Fairlawn, Kent, Mentor, Ravenna, Strongsville
Fluid power, electromechanical and aerospace products
Donald E. Washkewicz chairman, CEO, president
9
Babcock & Wilcox Co. 20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203 (330) 753-4511/www.babcock.com
2,189
2,523
Babcock & Wilcox Co. Charlotte, N.C.
Barberton, Copley, Euclid
Components for power plants; components for the U.S. government
J. Randall Data, president, COO, Babcock & Wilcox Power Generation Group Inc.
10
Lubrizol Corp. 29400 Lakeland Blvd., Wickliffe 44092 (440) 943-4200/www.lubrizol.com
2,084
2,142
Berkshire Hathaway Inc. Avon Lake, Painesville Omaha, Neb.
Specialty chemicals for transportation, industrial and consumer markets
James L. Hambrick chairman, president, CEO
11
ArcelorMittal 3060 Eggers Ave., Cleveland 44105 (216) 429-6000/www.arcelormittal.com
1,981
2,766
ArcelorMittal Chicago (Americas headquarters)
Cleveland, Warren, Shelby
Hot-rolled, cold-rolled and hot-dipped galvanized sheet steel and semi-finished steel (slabs)
Eric Hauge vice president, general manager, ArcelorMittal Cleveland
12
Nestle USA in Solon (includes Nestle Prepared Foods and Baking) 30003 Bainbridge Road, Solon 44139 (440) 349-5757/www.nestleusa.com
1,906
2,394
Nestle USA Glendale, Calif.
Solon
Higgins Stouffer's and Lean Cuisine frozen prepared Frank president, CEO, meals Nestle Prepared Foods
LET OUR EXPERIENCE BE AN ASSET TO YOUR BUSINESS Contact Chris Felice + cfelice@maloneynovotny.com + 216.363.0100
Company Address Rank Phone/Website
Full-time Full-time equivalent equivalent local employees employees in Ohio
13
Eaton Corp. 1111 Superior Ave., Cleveland 44114 (216) 523-5000/www.eaton.com
1,843
3,230
14
Bridgestone Americas Inc. 1200 Firestone Parkway, Akron 44317 (330) 379-7000/www.bridgestoneamericas.com
1,698
15
Republic Steel 2633 Eighth St., NE, Canton 44704 (800) 232-7157/www.republicsteel.com
16
Parent company Headquarters
Local manufacturing facilities
Products manufactured locally
Top local executive Title
Cleveland
Brooklyn, Parma, Aurora, Euclid, Berea
Synflex brand thermoplastic hose and tubing; Airflex brand industrial clutches and brakes; fuel pumps for commercial aircraft
Alexander M. Cutler chairman, CEO
NA
Bridgestone Americas Inc. Nashville, Tenn.
Akron, Brook Park, Columbiana, Sandusky
Racing tires
Hank Hara, chief technology officer, vp, Bridgestone Americas Tire Operations
1,590
1,590
Industrias CH, S.A. de C.V. Mexico City
Lorain, Canton, Massillon, Solon
SBQ hot rolled steel bars, cold finshed bars and coiled steel
Jaime Vigil president, CEO
J.M. Smucker Co.(2) 1 Strawberry Lane, Orrville 44667 (330) 682-3000/www.smuckers.com
1,500
NA
J.M. Smucker Co. Orrville
Orrville
Glass bottled fruit spreads, ice cream toppings
Richard K. Smucker CEO
17
Scott Fetzer Co. 28800 Clemens Road, Westlake 44145 (440) 892-3000/www.berkshirehathaway.com
1,313
1,683
Berkshire Hathaway Omaha, Neb.
Avon Lake, Chagrin Falls, Cleveland, Westlake, Wooster, Youngstown
Diversified manufacturing
Kenneth J. Semelsberger chairman
18
Invacare Corp. One Invacare Way, Elyria 44035 (440) 329-6000/www.invacare.com
1,297
1,301
Invacare Corp. Elyria
Elyria
Custom power wheelchairs, custom manual wheelchairs, seating and positioning products
Gerald B. Blouch president, CEO
19
Philips Healthcare 595 Miner Road, Highland Heights 44143 (440) 483-3000/www.philips.com/healthcare
1,250
NA
Royal Philips Electronics Amsterdam, The Netherlands
Highland Heights
Computed tomography (CT)
Jay Mazelsky, general manager computed tomography and nuclear medicine, senior vice president
20
Rockwell Automation Inc. 1 Allen-Bradley Drive, Mayfield Heights 44124 (440) 646-5000/www.rockwellautomation.com
1,116
2,029
Rockwell Automation Inc. Milwaukee, Wis.
Twinsburg, Warrensville Heights
Automation products
Steven A. Eisenbrown senior vice president, architecture and software
21
Delphi Packard Electrical/Electronic Architecture 5725 Delphi Drive, Troy 48098 (248) 813-2000/www.delphi.com
1,109
1,109
Delphi Automotive Troy, Mich.
Warren, Vienna
Automotive cable and connection systems
James E. Riedy, vice president, finance, Delphi Packard Electrical/ Electronic Architecture
22
GE Lighting (unit of GE Home & Business Solutions) 1975 Noble Road, East Cleveland 44112 (216) 266-2222/www.gelighting.com
1,075
3,586
General Electric Co. Fairfield, Conn.
Cleveland, East Cleveland, Euclid, Ravenna
Light bulbs, lighting systems and components
Maryrose T. Sylvester president, CEO, GE Lighting
23
Alcoa 1600 Harvard Ave., Cleveland 44105 (216) 641-3600/www.alcoa.com
1,000
1,000
Alcoa Inc. New York
Cuyahoga Heights, Cleveland, Barberton
Automotive, truck, aerospace wheels, aerospace parts, industrial products
Eric Roegner, president, Alcoa Forgings and Extrusions;Tim Myers, president, Alcoa Wheel and Transportation Products
23
RG Steel LLC 999 Pine Ave. SE, Warren 44483 (330) 841-8218/www.rg-steel.com
1,000
NA
Renco Group Inc. New York City
Warren
Iron and steel, steel slabs and steel hot bands
Thomas J. Cera vice president, general manager
25
Shearer's Foods Inc. 692 Wabash Ave. N., Brewster 44613 (330) 767-3426/www.shearers.com
986
1,001
Chip Holdings Inc. Brewster
Brewster, Massillon
Snack foods
Bob Shearer CEO
20120514-NEWS--31-NAT-CCI-CL_--
5/11/2012
3:19 PM
Page 1
MAY 14 - 20, 2012
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time Full-time equivalent equivalent local employees employees in Ohio
Company Address Rank Phone/Website
26
RPM International Inc. 2628 Pearl Road, Medina 44258 (330) 273-5090/www.rpminc.com
841
1,007
27
PolyOne Corp. 33587 Walker Road, Avon Lake 44012 (440) 930-1000/www.polyone.com
790
28
Myers Industries Inc. 1293 S. Main St., Akron 44301 (330) 253-5592/www.myersindustries.com
29
Parent company Headquarters
Local manufacturing facilities
Products manufactured locally
31
Top local executive Title
RPM International Inc. Medina
Cleveland, Medina, Euclid
Concrete admixtures, adhesives, sealants, commercial roofing materials, fluorescent colorants
Frank C. Sullivan chairman, CEO
NA
PolyOne Corp. Avon Lake
Avon Lake, Massillon, Norwalk
Specialized polymer materials
Stephen D. Newlin chairman, president, CEO
789
851
Myers Industries Inc. Akron
Middlefield, Wadsworth, Jefferson
Plastic storage containers, plastic nursery containers and planters, plastic parts for automotive manufacturers
John C. Orr president, CEO
PPG Industries Inc. 3800 W. 143rd St., Cleveland 44111 (216) 671-0050/www.ppg.com
768
738
PPG Industries Inc. Pittsburgh
Cleveland, Strongsville
Automotive OEM coatings
Keith Schneider plant manager
30
Goodrich Landing Gear 6225 Oak Tree Boulevard, Independence 441031 (216) 341-1700/www.goodrich.com
710
NA
Goodrich Corp. Charlotte, N.C.
Cleveland
Landing gear, ice detection and protection systems, potable water systems, specialty composites and heaters
Dave Castagnola president
31
Lockheed Martin Corp. 1210 Massillon Road, Akron 44315 (330) 796-2800/www.lockheedmartin.com
700
NA
Lockheed Martin Corp. Bethesda, Md.
Akron
Lighter-than-air vehicles, persistent threat detection system, vertical launch antisubmarine rocket (VLA) missiles and components for the F-35, Joint Strike Fighter
Colleen Arthur, general manager, Akron; director, Integrated Defense Technologies market segment
32
Sifco Industries Inc. 970 E. 64th St., Cleveland 44103 (216) 881-8600/www.sifco.com
555
276
Sifco Industries Inc. Cleveland
Cleveland, Independence, Alliance
Aerospace and IGT forgings, specialty coatings
Michael S. Lipscomb president, CEO
33
Automated Packaging Systems Inc. 10175 Philipp Pkwy., Streetsboro 44241 (330) 342-2000/www.autobag.com
524
526
Automated Packaging Systems Inc. Streetsboro
Streetsboro (3), Garfield Heights, Bedford
Autobag(R) and SidePouch(R) packaging Hershey Lerner, chairman machinery and bags; AirPouch(R) void-fill and Bernie Lerner, CEO protective packaging Cliff Brehm, president
34
Shiloh Industries Inc. 880 Steel Drive, Valley City 44280 (330) 558-2600/www.shiloh.com
515
515
Shiloh Industries Inc. Valley City
Valley City, Wellington
Steel products for the auto industry
35
Mansfield Plumbing LLC 150 E. First St., Perrysville 44864 (877) 850-3060/http://mansfieldplumbing.com
514
514
Corona Columbia, South America
Ashland, Big Prairie, Perrysville
Vitreous china toilets, lavatories and urinals, Jim Morando toilet tank trim president
36
Meggitt Aircraft Braking Systems Corp. 1204 Massillon Road, Akron 44306 (330) 796-4400/www.aircraftbraking.com
507
507
Meggitt PLC Akron
Akron
Wheels, brakes and related systems
J.J. Williams, senior vice president and general manager, global operations; Luke Durudogan, president
37
Colfor Manufacturing locations in Minerva and Malvern www.aam.com
503
503
American Axle & Manufacturing Detroit
Malvern, Minerva
Gears and other net-shaped forged components
Tom Fry plant manager, Malvern Facility
38
ArtiFlex Manufacturing LLC(3) 1425 E. Bowman St., Wooster 44691 (330) 262-2015/www.artiflexmfg.com
501
564
NA
Wooster
Metal stampings and welded assemblies and NA e-coated products
39
Heinz North America 1301 Oberlin Ave. SW, Massillon 44647 (330) 837-8331/www.heinz.com
500
NA
H.J. Heinz Co. Pittsburgh Pa.
NA
Weight Watchers Smart Ones frozen entrees, desserts and breakfasts; Nancy’s frozen appetizers and entree quiche
NA
39
Wooster Brush Co. 604 Madison Ave., Wooster 44691 (330) 264-4440/www.woosterbrush.com
500
500
Wooster Brush Co. Wooster
Wooster
Paint applicators and equipment: brushes, rollers, extension poles, surface prep tools
Bill Fagert president
Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. Steris Corp. does not report local employee numbers. (1) Employee numbers as of March 31, 2012. (2) Employee number from The Daily Record, Feb. 23, 2012. (3) ArtiFlex Manufacturing LLC is a 50/50 joint venture between Worthington Industries and International Tooling Solutions (ITS).
Grant: Firm faces competition continued from PAGE 3
The situation highlights the importance of public environmental cleanup assistance to older communities that have little or no clean, open land for development. They find it hard to compete for companies with rural towns or outer-ring suburbs that have lots of lower-cost and clean “greenfield” land. The Clean Ohio program has allowed those cities to compete for new development and to retain existing businesses that, like S.S. Kemp, need to expand either in place or move to a new home. Dennis McAndrews, an economic development consultant to Cuyahoga Heights who helped put together the public financing package for the S.S. Kemp project, said its grant application faces worthy rivals for this last round of grants. “It’s our hope that a project like this that has a guaranteed return would get funded over projects that score higher than us because they might be the only project coming out of their region,” Mr. McAndrews said. Mr. Fishman said S.S. Kemp has grown consistently for the last decade as it has outfitted the food service operations of a number of hospitals and the new Horseshoe Casino Cleveland, as well as rode the boom in the local restaurant business.
Big stakes for Cuyahoga Hts. Mr. Fishman’s family sold S.S. Kemp to TriMark, based in South
Attleboro, Mass., in 2007. The Cleveland operation, he said, is one of nine run by TriMark, which has annual sales of about $500 million. Mr. Fishman said he’s contemplated moving for at least five years and unsuccessfully sought another location in Cuyahoga Heights. He said he even entered into an agreement to buy the adjacent property at 4582 Willow Parkway but was scared off by the high cost of environmental remediation. When he recently told Cuyahoga Heights Mayor Jack Bacci that it looked like the company would need to leave the village, the mayor and Mr. McAndrews, principal of Cleveland’s Silverlode Consulting, suggested seeking the Clean Ohio loan. If the project wins the Clean Ohio grant, Premier Development Partners LLC of Cleveland, TriMark S.S. Kemp’s development partner, would demolish an existing building on the property and put up an 88,000-square-foot office warehouse building that S.S. Kemp would lease for 10 years. The expansion is important to Cuyahoga Heights, which is struggling financially. An economic analysis of the project prepared for the village estimates income and property taxes from S.S. Kemp represents 10% of its tax base. The company also has won a $500,000 forgivable loan from Cuyahoga County to help make the project economical. ■
Theodore K. Zampetis president, CEO
RESEARCHED BY Deborah W. Hillyer
FFL MEANS BUSINESS Our Commercial Team is fully equipped to handle all of your borrowing and depository needs. t $PNNFSDJBM 3FBM &TUBUF t #VTJOFTT -JOFT PG $SFEJU t 5FSN -PBOT t $BTI .BOBHFNFOU t 1VCMJD 'VOET
For details call (216) 529-2994
20120514-NEWS--32-NAT-CCI-CL_--
32
5/11/2012
3:31 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Industrial: Space supply diminished continued from PAGE 1
take action on long-delayed expansions or experience the benefit of the ramp-up of companies serving drillers in the oil and gas sector, Mr. Coyne said. Moreover, Mr. Garber said some manufacturers have been able to expand because their competitors did not survive the downturn. The pickup began in earnest about a year ago, he said. A just-issued industrial survey by Mr. Coyne puts industrial vacancy in Northeast Ohio at 11.5% as of March 30 this year, down from a high of just below 13% at the end of 2010. “That has been the fastest movement I’ve seen in my career,” said Mr. Coyne, who has been in the business
17 years.
Better, but not great The contrast is particularly striking when comparing the industrial market with the office market, where vacancy is almost twice as high, at 20.4% at the end of March, although that’s down from 22% at the start of 2012. David Browning, managing director of CBRE’s Cleveland office, attributes the weaker office market to job cuts by companies that use large amounts of office space. For example, office space shed by PNC Bank after its acquisition of National City Corp. hurt the market a few years ago, though office growth at manufacturing concerns such as Cleveland-based iron ore producer Cliffs Natural
Resources Inc. has offset some of that excess. Surveys by Marcus & Millichap, a national brokerage with a Cleveland office, put the strengths of various property types in perspective in a market that lags most of the nation in terms of growth, rents and sales. Marcus & Millichap’s 2012 ranking of 27 of the nation’s industrial markets, released this month, puts Cleveland in 22nd place, up two positions from last year. In its office property index of 44 markets, Cleveland ranks 42nd, the same as last year, and ahead of only Detroit and Las Vegas. The region’s retail ranking, which is particularly dependent on population growth to boost sales by retailers, puts Cleveland in 43rd place, ahead of only Detroit.
MAY 14 - 20, 2012
Supply tightens, prices rise Mr. Browning said there is a quandary unfolding in the industrial market. “The good news is that rents have held and property values are holding” compared with other commercial property types that have been falling in value, Mr. Browning said. “The bad news is that, suddenly, if a user needs a large amount of industrial space, they’ll have to build it.” Thanks to tight lending requirements on developers, Mr. Browning said, construction has been constrained for years, particularly in the multitenant market. Moreover, prices to buy competitive buildings are rising. For example, Mr. Coyne cited an industrial building on Fountain Parkway in Solon sold this month for about $42 a square foot, while another building on the street traded for $38 per square foot
just six months ago. “You won’t find a better example of rising prices than two buildings of similar age that are next door to each other,” Mr. Coyne said. In the meantime, he and others believe the difficulty of winning bank financing for real estate will impede development, which will continue to put pressure on the supply of quality industrial properties. “How many industries are there where you can have increasing demand and less competition?” Mr. Coyne said.
Broadening the search How much of a problem diminishing supply will be depends on your point of view. Jacob Duritsky, director of business attraction for the Team NEO economic development group, said the high level of occupancy reflects the region’s core strength in the manufacturing sector. One Team NEO prospect had trouble finding space it wanted in Stark County, he said, but found eight properties to choose from when it widened its search to Mahoning and Tuscarawas counties. Space definitely is harder to come by in Twinsburg, a hotbed for industrial companies that was clobbered two years ago by the closing of the former Chrysler Stamping Plant. The property since has been sold and the massive plant demolished to yield land for new projects. “We have just a few buildings available,” said Larry Finch, Twinsburg director of community planning and development. “It’s a healthy market of 8% vacancy. Have much less than that and you don’t have places for companies to go.” It is vastly different than the 30% industrial vacancy rate that would have dogged the suburb if the stamping plant still was in place, Mr. Finch said. “We don’t have many inquiries for (strictly) office space, but we continue to have activity in the industrial spaces,” he said.
Solon lends a hand The pressure tight industrial spaces can put on communities to keep desirable companies is great. Valtronic Inc., a maker of miniature electronic devices, plans to move by early fall to a building it bought last month at 29200 Fountain Parkway in Solon that is more than twice as large as its current home in the suburb. Patricia Klavora, Valtronic’s global communications manager, said the company chose the Solon building from among six in the region, in part because of help from the city of Solon, where the vacancy rate in single-user industrial buildings is estimated at a mere 3%. Peggy Dorfman, Solon’s economic development manager, said she’s glad Valtronic found an empty building that allows it to expand in her town because the company has been part of the city since the late 1980s. “They have looked for a new location for sometime,” said Ms. Dorfman, who expects Valtronic to nearly double its employment from its current 89-person staff. ■
Volume 33, Number 20 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
20120514-NEWS--33-NAT-CCI-CL_--
5/11/2012
3:35 PM
Page 1
MAY 14 - 20, 2012
Contact: Phone: Fax: E-mail:
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Toni Coleman (216) 522-1383 (216) 694-4264 tcoleman@crain.com
REAL ESTATE
AUCTION
COMMERCIAL SPACE
”LIVE” REAL ESTATE AUCTION, JUNE 21st
60,000+ SF DOWNTOWN CLEVELAND BUILDING
33
Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card
LUXURY PROPERTIES
Receiver Ordered Sale Sima Marine - Eastlake, Ohio
Gates Mills Estate
Approx. 19+ acres, Zoned Boat Basin – MR Marine Recreation
FOR SALE
1559 Superior Ave., Cleveland, OH 44114 / 15 Blocks East of Public Square KELLEYS ISLAND LAKEFRONT HOME FOR SALE
OFFERED WITH PUBLISHED RESERVE OF ONLY $417,000 SELLER DIRECTS BIDDING TO COMMENCE AT $156,000!
Historic Huntington House 233 W. LAKESHORE 5 Bed, 3.5 Bath, 2650+ Sq. Feet Built in 1840, Recently Remodeled
APARTMENTS * WAREHOUSE * MANUFACTURING * RETAIL LOCATION. Fringe of Downtown Central Business District with Convenient access to I-90, I-71 & I-77, Minutes from Lake Erie. Neighboring Cleveland Fire Department. 2 Blocks from New CSU Campus. Avenue District on RTA Bus Line. OPPORTUNITY. Prime Location, Well-Built Structure for Student Housing, Lofts, Data Center, Research and Development. Excellent Condition Subsequent to 25 year Occupancy of Ernst & Young Printing Div. 100% Air Conditioned. FEATURES. Pedestrian entrance Superior Ave. 2 Heated Drive-Ins via Rockwell Ave. Freight Elevator, 2nd Level Loading, 22’ Mushroom Column Spacing. Heavy Power & Floor Loads under 14’ Ceilings. Zoned: Semi-Industrial. Seller Financing Available!
ON-SITE INSPECTIONS: May 22 & June 5, & 13 from 1:00-3:00 PM For Brochure & Terms of Sale call:
Curt Schneider, OH Auctioneer 216-839-2028
www.chartwellauctions.com Chartwell Auctions, LLC / Chartwell Group, LLC
List your Industrial, commercial or Retail Space Here!
Terrific immediate business and development opportunity for this prime recreational boating marina and storage facility located at Lakeshore Blvd. (Rt283) and Forest Drive in Eastlake, Ohio. Marina is on the east bank of the Chagrin River. 131 boat slips with water and electric hookup, repair shop and enclosed storage areas. Nearly 3 acres have residential housing development potential. High market value as an ongoing business concern. Good office and sales space and repair facilities. Approval of any sale is subject to Plaintiff approval and final Court approval: Case # 09 CF 003456.
Contact Toni Coleman at 216.522-1383
West 117th and Detroit Avenue Area Zoned for Commercial 3 offices – 1st floor • 3 offices – 2nd floor Lower Level Conference Room and Kitchen 4 Parking Spaces
Call (216) 221-8584
TColeman@Crain.com
Jason A. Smith, REALTOR www.kelleysislandrealestate.com jasonbeyond2000@aol.com 419-503-0604
Each Office Independently Owned and Operated
For further information, please call: Jack Cornachio, Court Appointed Receiver at (440) 946-7023 Midwest Realty Advisors Great Lakes Realty
TOWNHOUSE FOR LEASE
Crain’s Cleveland Business’ classifieds will help you fill that space..
Beyond 2000
Ask for Dennis
REAL ESTATE SERVICES
• 4,000 square feet • 4.5 secluded acres • 7 car garage • Mountain top views • House and property completely rebuilt -2012 • Hardwood floors • Master suite
216-701-7448
natalee@usapave.com 1289chagrinriverroad.com
CONDOMINIUM E. 4th Street, Downtown 2 BR, 2.5 baths, 1800 sq. ft. $2075 per month
216-281-1500
REALTORS: Now is a great time to promote your Luxury Properties to high-end prospects Call 216.522.1383 for more details
Real Estate Consulting Visit
AARDVARK-LLC.COM 440-605-0555 • Fax 440-605-0666
Bruce Klotzman
E-MAIL OR FAX US YOUR AD E-MAIL: TCOLEMAN@CRAIN.COM FAX: (216) 694-4264
CLASSIFIED BUSINESS SERVICES
PUBLIC NOTICE
LNA CONSULTING
PUBLIC NOTICE
Specializing in: Business Development Employee Relations Operations Management Budgeting & Forecasting IT Solutions
Sales & Marketing Office Restructuring Growth Strategy Executive Coaching Union Relations
Call to schedule a consultation.
216.362.2840
FLYNN ENVIRONMENTAL For Assessments
(800) 690-9409 www.flynnenvironmental.com
BUSINESS SERVICE OWNERS! Submit your business card to promote your service.
Crain’s Executive Recruiter
The City of Beachwood, Ohio is soliciting Proposals from qualified firms to provide website development for the City of Beachwood website.
Title Insurance Underwriter with Northern Ohio locations seeking Account Executive for Commercial Sales.
A copy of the Request for Proposals may be obtained from the City’s website, www.beachwoodohio.com, or from Tina Turick, Assistant Administrative Officer, Mayor’s Office, 25325 Fairmount Boulevard, Beachwood, Ohio, during regular business hours, Monday-Friday, 8:00 a.m. to 4:30 p.m.
Actively prospect, sell and maintain relationships with attorneys, lenders and brokers. Acquire new customers and maintain coverage of existing customers. Real estate industry experience a plus. Send Resume to: titlesales2012@gmail.com 216-220-7129
Proposers will be evaluated based on the criteria outlined in the Request for Proposals. The City of Beachwood reserves the right to reject any or all proposals and/or to choose to decline an award for a contract. Proposals are due by 4:00 p.m. on June 13, 2012. LATE SUBMISSIONS WILL NOT BE ACCEPTED.
FOR SALE 1968 Cessna
Skylane 182L TT 3070 Engine 282 SFR $75,000. Always hangared. NDH Fresh annual.
For details contact Jerry Seifert OH-(330) 620-7474 or email jseifert@sr-inc.com
BUSINESS FOR SALE
Completed some college, maybe some trade school but can't find the job you like, why not try a hands on job in manufacturing. If interested send me your resume and we'll talk about the possibilities. mike@tendon.com
To place your Executive Recruiter ad Call 216-522-1383
4-SALE 2 Unique fast casual west-side eateries designed for franchising. New commercial kitchen, micros system & 250+ customer data base. Serious buyers contact palmdessert@gmail.com
WANTED: Your subscription to Crain’s Cleveland Business
GREAT RATES AVAILABLE.
Put some “punch” in your classified ad...
To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com
To find out more, contact Toni Coleman at 216.522.1383
Use color and get your ad noticed!
Click on “Subscribe Now.”
20120514-NEWS--34-NAT-CCI-CL_--
34
5/11/2012
CRAIN’S CLEVELAND BUSINESS
4:13 PM
Page 1
WWW.CRAINSCLEVELAND.COM
MAY 14 - 20, 2012
THEINSIDER
THEWEEK MAY 7 - 13 The big story: The Horseshoe Casino Cleveland is ready to roll. The casino on Public Square will open to the public today, May 14, and stay open 24 hours a day, seven days a week thereafter. Nathan Forbes, a principal in Rock Gaming LLC, majority partner in the casino, said his firm believes the casino will attract about 5 million visitors in its first year and can capture a large part of what Rock Gaming estimates is $1.3 billion annually that Ohioans have been spending at casinos in adjacent states. (Take a look at the casino, Page 10.) This is the end: Terry Stewart, president and CEO of the Rock and Roll Hall of Fame and Museum, announced he will retire by the end of 2013. He has served as the Rock Hall’s chief executive for the last 13 years. In an email to community leaders, Mr. Stewart said of his decision, “Where will it take me next? I honestly don’t know yet, but, as usual, I Stewart intend to have a lot of fun at whatever I end up doing.”
Security blanket: American Greetings Corp. purchased all the senior secured debt of Clinton Cards PLC, a specialty retailer of greeting cards in the United Kingdom and one of American Greetings’ largest customers, for $56 million. Clinton Cards agreed to place its business into administration — the equivalent of Chapter 11 bankruptcy proceedings, or restructuring, in the United States. The debt purchase, funneled through a subsidiary of American Greetings in the U.K., ensures the Cleveland-based greeting card manufacturer is a secured lender of Clinton Cards during the restructuring process.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Swan song for Rock Hall’s main man? Not hardly
These youngsters rightly claim, ‘We run this city’
Fun facts for fracking fans
■ Terry Stewart isn’t exactly sure what he’ll do once he steps down from his post as president and CEO of the Rock and Roll of Fame and Museum in late 2013. But after rubbing elbows with rock stars and running one of the most dynamic entertainment companies in the world, Marvel Entertainment Group, Mr. Stewart, 66, said writing a book doesn’t seem like a bad idea. After all, he said he has some stories to tell. “Some people have never been as lucky as me to go to a place seven days a week that they call work but seems like a holiday every day, and every day after seems like the weekend,” Mr. Stewart said in an interview last Friday with Crain’s Cleveland Business. “That’s the way it is (at the Rock Hall). I’ve helped memorialize the music that changed my life, and that’s what made me happiest.” However, Mr. Stewart’s career hasn’t been all about rock glam and superheroes. In the late 1970s, he served as an officer at a Connecticut banking company and from 1979 until 1984 held varying roles at the Continental Group. He’s also acquired two bachelor’s degrees, an MBA and a law degree. While all that sounds like enough material for a few books, at least, the 66-year-old Mr. Stewart cautions that his career is far from over. “This is retiring from the Rock Hall — not retiring from work or life,” he said. — Timothy Magaw
■ The Rite Aid Cleveland Marathon has grown rapidly over the last few years, and the number of children participating in the weekend’s races has, too, through the We Run This City program. About 750 students participate in the joint effort of the YMCA of Greater Cleveland, Cleveland Metropolitan School District, the Rite Aid Cleveland Marathon, the Cleveland Department of Public Health and Case Western Reserve University’s Prevention Research Center for Healthy Neighborhoods. Four program participants will run the full marathon, or 26.2 miles; 31 the half marathon (13.1 miles); 200 the 10-kilometer race (6.2 miles); and the other 500 or so will run the final 1.2 miles of the marathon course. The latter group will have run 25 miles in the 12- to 16-week program leading up to race day, according to program director Tara Taylor. Ms. Taylor said 98% of the participants are in sixth through eighth grades. When the program started in 2006, about 80 children took part. For a select few, their participation in the program won’t end with the race. “Those four marathoners take an active role in going back to the schools they attended previously to encourage more kids to join,” Ms. Taylor said. (For more on the marathon, see Page 7.) — Joel Hammond
■ Chesapeake Energy Corp., the largest active oil and gas driller in the state of Ohio, shared some interesting facts with Crain’s on a recent tour of the company’s rig operating in Stark County just east of Canton. Some of those facts explain why at least a few Ohio companies are cashing in big on the shale energy industry’s recent growth. For example, Fairmount Minerals in Chardon sells sand that’s used to hold open cracks in the shale rock after it’s been fractured, or “fracked.” How much sand? About 5 million pounds per well, Chesapeake reports. And why are those steel companies in Canton, Lorain and Youngstown so busy? Because each well requires 280 tons of steel, mostly in the form of pipe, Chesapeake’s data show. Heck, even those in the gravel business are going to be busy, since it takes 5,000 tons of aggregate just to construct one drilling pad. We also checked in with a few area landowners around the site. While it’s still early days for that well, where drilling had just begun, four landowners who spoke with Crain’s said Chesapeake so far has been careful not to disrupt more of their property than necessary. The company also has vastly improved some local roads to develop the site, the landowners said. — Dan Shingler
WHAT’S NEW
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
Out at inclusion group: Brian Hall, chairman and CEO of Innogistics LLC, was named parttime interim executive director of the Commission on Economic Inclusion following the sudden departure of Andrew Jackson, who had been executive director of the commission and a senior vice president of the Greater Cleveland Partnership, the commission’s parent organization. Mr. Hall, a member of the commission’s volunteer board of advisers, served as co-chair of the organization from 2006 to 2009. No explanation was given for Mr. Jackson’s resignation, which is effective June 1.
Street of dreams: A parking lot on the Miracle Mile, the nickname for Wilshire Boulevard in Los Angeles, will provide Associated Estates Realty Corp. with an avenue to enter the southern California market. Richmond Heights-based Associated Estates plans to construct a 174-unit apartment building and parking garage on a two-acre site it is taking an indirect route to obtain. The real estate investment trust bought Desmond Tower, 5500 Wilshire, a nearly 79,000square-foot office and retail building, to obtain the parking lot next door. In elite company: University Hospitals Case Medical Center said its Rainbow Babies & Children’s Hospital will receive $12.7 million of the $122.6 million awarded last week by the Centers for Medicare and Medicaid Innovation for plans to lower medical costs and improve the overall health and wellness of children. Rainbow was among 26 other preliminary awardees to receive a federal Health Care Innovation Award from more than 3,000 applicants nationwide. Park it: Upscale auto dealer Collection Auto Group secured naming rights to what will be called the Collection Auto Group Centre, the Horseshoe Casino Cleveland’s dedicated parking structure on Ontario Street just south of Public Square. It includes 1,300 spaces and will house a 1,900-square-foot gift shop.
CEOs see Ohio turning around as a place to do business
THE COMPANY: Global Lighting Technologies, Brecksville THE PRODUCT: UL-certified flat panel downlight Global Lighting Technologies says it has improved the performance of its two-foot by two-foot, edge-lit LED-based flat panel downlight assembly by developing a product that delivers efficiencies greater than 70 lumens per watt. Brett Shriver, the company’s director of sales and marketing, says the new downlight “represents a significant advancement in performance over our standard OL2 Series flat-panel ceiling light assembly, thanks to the use of higher-efficiency LEDs.” It is certified by Underwriters Laboratories for sale in the United States and Canada. The LEDs used in the new panel have increased in brightness to 130 lumens from about 100 lumens. As a result, Global Lighting Technologies says it’s able to offer an increase in brightness despite using the same number of LEDs — 100 — as in the previous iteration of its 2x2 flat panel downlight. The 70 lumen-per-watt target was achievable in the past only through direct illumination by the LEDs using a thicker light box approach, or by densely packing the LEDs through all four edges of the light guide plate. Pricing for the new downlight panel begins at $122.79 each in volumes of 100 pieces.
■ CEOs like Ohio a whole lot more than they did a year ago, though the state still has a long way to go to win them over completely. In the annual Best & Worst States Survey by Chief Executive magazine, Ohio ranked as the 35th-best state in which to do business, up from 41st a year ago. The gain of six positions was bested by only three other states: Louisiana (+14), Mississippi (+8) and West Virginia (+8). For the 2012 survey, 650 CEOs from across the country evaluated the states on a broad range of issues, including regulations, tax policies, work force quality, educational resources, quality of living and infrastructure. The survey was conducted from Jan. 24 to Feb. 26, 2012. The magazine’s state-by-state evaluation had this to say about Ohio: “Public-pension ploy didn’t work, but bellwether state is going business-friendly.” (Gov. John Kasich probably will take that.) For the eighth consecutive year, CEOs rated Texas as the best state in which to do business, followed by Florida, North Carolina, Tennessee and Indiana. Not surprisingly, Chief Executive noted that “most of the states in the top 20 are also right-to-work states, as labor force flexibility is highly sought after when a business seeks a location.” It contends that “several economists … have found that the economies in R-to-W areas grow faster than other states, have higher employment and attract more inward migration.” The lowest-rated state was California, which CEOs says is the result of “its hostility to business, high state taxes and overly stringent regulations, which is driving
investment, companies and jobs to other states.” Other states in the bottom five are New York, Illinois, Massachusetts and Michigan.
Relatively speaking, we’ll take these results ■ In the latest ranking of unemployment rates in 372 U.S. metro areas, Cleveland is No. 120, at 7.1%. That’s a full percentage point below the country’s 8.1% jobless rate. Akron is No. 178, at 7.8%. Canton-Massillon comes in at No. 214, with a jobless rate of 8.3%. Even with its oil and gas boom, Youngstown-Warren-Boardman is still at No. 236, as its unemployment rate is 8.6%.
How do they find the time? ■ Be glad you don’t live in Beaumont, Texas. Why’s that? It’s the “identity manipulation” capital of the United States, according to a Wall Street Journal story based on an April report from ID Analytics, a firm that screens creditcard applications for fraud. The eastern Texas city of about 120,000 leads the nation in per-capita identity-manipulation attempts, defined as when fraudsters apply for credit cards and other financial products using false names, Social Security numbers, addresses or dates of birth. It differs from identity theft in that specific victims aren’t targeted, The Journal noted. There’s a Cleveland connection here, too. The Journal said the worst identity manipulator ID Analytics found was a New Yorker who goes by the name of “Frank.” He has used 146 different Social Security numbers and seven dates of birth. The runner-up: “Jamal” from Cleveland, with 106 Social Security numbers.
20120514-NEWS--35-NAT-CCI-CL_--
5/9/2012
1:30 PM
Page 1
SUCCESSFUL CHANGE STARTS WITH A SUCCESSFUL LEADER. The Master of Public Health (MPH) Health Policy and Management program offers an elective option in Leadership and Organizational Change. This two-year part-time program provides advanced management skills to health professionals.
Now enrolling for Fall 2012. Courses to be held on Tuesday evenings at the Kent State Regional Academic Center in Twinsburg, Ohio.
COLLEGE OF PUBLIC HEALTH publichealth-emph.com
|
855.KSU.COPH (578.2674)
20120514-NEWS--36-NAT-CCI-CL_--
5/11/2012
4:05 PM
Page 1