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Summa’s suitors may come from beyond CLE
CRAIN’S SERVES AS TOUR GUIDE THROUGH THE REGION’S UNIQUE HOMES
Companies studying electric medical treatment have ‘enormous’ opportunity
Akron health system eyes minority partner
By CHUCK SODER csoder@crain.com
By TIMOTHY MAGAW tmagaw@crain.com
When Summa Health System in Akron last week announced it would explore the sale of a minority stake in itself to another nonprofit health care organization, all eyes turned to Cleveland Clinic or University Hospitals as obvious suitors. However, local health care executives and observers aren’t so sure one of the medical juggernauts roughly 40 miles north of Summa’s flagship Akron City Hospital would be the party to sweep in to make a deal if the opportunity presents itself to buy into Summa, an enterprise totaling $1.6 billion in annual operating revenue. “It’s not necesANALYSIS sarily going to be one from Cleveland,” said Thomas Selden, president and CEO of Southwest General Health System in Middleburg Heights. “It may be, but I don’t think we should bet the farm on that’s what it is.” It’s all speculation at this point and has made for “intriguing water cooler discussion” in local health care circles, as Parma Community General Hospital president Terry Deis characterized it. Summa, for one, isn’t naming names, and neither University Hospitals nor the Clinic is commenting on the matter. But if past actions by both Cleveland hospital systems offer any indication of what might happen, insiders say neither could be the partner for which Summa is looking. “On some level, it might very well be a player significantly outside of the marketplace,” said Bill Ryan, president and CEO of the Center for Health Affairs, an advocacy group for local hospitals. Mr. Deis agrees. He said he “wouldn’t be surprised at all” if a hospital system from Columbus, Pittsburgh or Toledo courted Summa. The UPMC in Pittsburgh, OhioHealth in Columbus and ProMedica
Crain’s has launched House Calls, a new video tour feature of the homes of Northeast Ohio business leaders. Visit www.CrainsCleveland .com/HouseCalls for the videos, including the home of Joe Anello, the president of Telcom Construction Services Inc., which is shown in these photographs.
Shock waves are starting to flow through Northeast Ohio’s neurostimulation community, which is attracting significant interest from investors and deep-pocketed medical device companies. The region since 2005 has created or attracted at least six companies focused on neurostimulation, two of which have been sold for a combined $120 million. Two more startups are in the works at Case Western Reserve University, and others are bound to follow, according to several people in the region’s neurostimulation field.
They say the neurostimulation business — which is based on the idea of using electricity to treat medical conditions ranging from paralysis to pain to depression — is primed for expansion. They also believe Northeast Ohio has what it takes to capitalize on that expected growth because of the research and talent flowing out of CWRU and the large number of neurostimulation procedures conducted at local hospitals. A few big, out-of-state companies have established footholds in the business, which could make it hard for a local neurostimulation startup to become a Fortune 500 company. See NEURO Page 27
INSIDE All Pro Freight growth driven by demand The Avon company’s president, Chris Haas (right), says in the distribution industry, “There ... is more freight than there are trucks to handle it.” PAGE 3 PLUS: ■ Bravo Wellness will move to Cleveland, shelving plans to build anew in Lorain County. PAGE 3
MARC GOLUB
Developer adding space at booming MidTown Tech Park By JAY MILLER jmiller@crain.com
MidTown Tech Park is expanding again. Hemingway Development, a division of Streetsboro-based Geis Cos., plans to spend $8.9 million to buy and renovate a vacant building at 6555 Carnegie Ave. to add to its Midtown office/laboratory complex. The four-story, 64,000-squarefoot building will be used to offer
See SUMMA Page 28
28
Neurostimulation field sparking investor interest
startups and other young businesses loft-style space at a lower cost than what is available in the MidTown Tech Park building at 6700 Euclid, which Hemingway constructed, or in the 50,000-square-foot 7000 Euclid Ave. building next door. Both 7000 Euclid and the empty 6555 Carnegie building take advantage of parking and other improvements that went into the 128,000 square feet of new construction at 6700 Euclid. See MIDTOWN Page 30
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SPECIAL SECTION
WomenofNote
2012
Crain’s profiles 15 of the top female business leaders in Northeast Ohio ■ Page W-1
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 28
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Bravo Wellness gets new Cleveland address Avon firm shifts course on building new HQ, will move near airport By TIMOTHY MAGAW tmagaw@crain.com
Keeping companies’ employees healthy has been Bravo Wellness’ mission since opening its doors in 2008, but the company’s own health has forced it to outgrow its current digs in Avon. Bravo in October plans to move its roughly 80 full-time employees to a larger space on Cleveland’s
southwest side, nearly adjacent to Cleveland Hopkins International Airport. Bravo secured 23,000 square feet on the fourth floor of One International Place, a property owned by Amsdell Cos. of Middleburg Heights, in Emerald Corporate Park off Grayton Road and Interstate 480. The property formerly housed Electrolux and Fort Dearborn Life Insurance — two companies head-
quartered outside of Ohio that phased out their Cleveland operations in recent years. Bravo, which offers incentive-based wellness initiatives for employers, had planned to spend as much as $4 million to construct a 32,000square-foot building near its current headquarters in an office park near Chester Road off Interstate 90. But given the company’s rapid hiring plans and the escalating cost
of the building project, Bravo owner and CEO Jim Pshock said it made more sense to tackle the rental market. “Just between the time it was going to take to build the building and all the patchwork and quilting of leases (to handle new Pshock hires), it caused me to pull back and say, ‘Before we break ground, let me go look at the market one more time,’” said Mr. Pshock, whose company develops wellness toolkits, coordinates health screen-
THE WEEK IN QUOTES
Glazen not waiting on Waterloo district Restaurateur targets 11 properties for potential redo of area
— Mike Hilton, president and CEO, Nordson Corp. Page 6
“Some people make a wrong call in life, but they deserve another chance. Hard work is the way to get there.”
“If a man comes in in a suit, you tend to just believe whatever he says because he’s a man in a suit. If a woman walks into a room she has to prove herself.” — Marlene Herman, owner/ president, Aamco Transmission & Total Car Care. Page W-5
“I care about doing it well for women. … I’m keenly aware of my place in history. By the time I retire, I’d like to see (my being the first woman) be a footnote, not the headline.” — Beth E. Mooney, chairman and CEO, KeyCorp. Page W-10
See BRAVO Page 27
INSIGHT
“You can never quite tell when the opportunities will come forward. We had five (acquisitions) in the past year and a half. We could go another year and not have any.”
— Brandon Chrostowski, general manager at French brasserie L’Albatros and founder of the nonprofit Edwins Leadership & Restaurant Institute. Page 9
ings and helps companies reward workers who make healthy lifestyle choices with lower insurance premiums. Bravo’s growth has been significant since the company was established four years ago. The company, which has 265 clients throughout the country, anticipates its revenue this year to climb between 70% and 90% over last year’s numbers — a “much more manageable rate
By TIMOTHY MAGAW tmagaw@crain.com
MARC GOLUB
All Pro Freight Systems Inc. CEO Chris Haas
DRIVER DEARTH DRIVES ALL PRO’S PATH Acquisitions help Avon company meet additional demand from industrial customers shipping more freight By GINGER CHRIST gchrist@crain.com
F
aced with growing customer demand and a shortage of drivers, All Pro Freight Systems Inc. in Avon is using the acquisition route to meet its need for more trucks and more people to operate them. All Pro, which provides transportation, distribution and ware-
housing services to manufacturers, in the last two months has bought two trucking companies and is on course to acquire more, said Chris Haas, president and CEO. “Sometimes growth by acquisition is easier than knocking down doors,” Mr. Haas said about finding ways to expand his business. See DRIVERS Page 28
ALL PRO ADDS TO ITS ARMY Seeking more trucking capacity and people to operate those vehicles, Avon-based All Pro Freight Systems Inc. has grown recently by buying other companies. Those include Buddy’s Express Transport, a trucking company in Elyria certified to handle
hazardous materials, and Blue Chip, a trucking company in Cranberry, N.J. Those deals give the company an 11% boost in drivers. All Pro also plans to close soon on an acquisition of a box van company in Lorain County, which would add another 25 drivers.
Alan Glazen admits he isn’t a patient man. With the flick of a switch, the former advertising executive-turnedrestaurateur plans to transform the fledgling arts district anchored by the Beachland Ballroom & Tavern on Waterloo Road in Cleveland’s Collinwood neighborhood into an indie-rock Glazen mecca. The idea, he said — with the panache of a former ad man — is to have a handful of restaurants and other entertainment hotspots open on the same day, instantly igniting the area into a bustling entertainment district. To jumpstart the initiative, Mr. Glazen plans to invest as much as $1 million of his own money into the project, which he estimates likely would require about $5 million in outside money to reach its full potential. Mr. Glazen is eyeing 11 properties near the stretch of Waterloo Road running from East 156th Street to about East 160th Street for future development that jibes with the area’s off-beat, indie-rock temperament. He said he’s finalizing the purchase See WATERLOO Page 29
CORRECTION A July 9, Page 6 story incorrectly reported Chippewa Lake’s rank among Ohio’s natural inland lakes. The Ohio Department of Natural Resources ranks Aurora Pond in Aurora as Ohio’s largest inland natural lake with 345 acres. Chippewa Lake is second with 324 acres.
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PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
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Scott Suttell (ssuttell@crain.com)
OPINION
True test
B
ack in 1968, long before the concept of regional cooperation became fashionable, the city of Cleveland and Cuyahoga County formed the Cleveland-Cuyahoga County Port Authority to manage the maritime operations of the Port of Cleveland. More than four decades later, the city and county want to use the port and its taxing authority to spread the cost among county residents of waterfront investments in the city of Cleveland. Should the port board vote, as expected, to put a tax increase on the Nov. 6 ballot to pay for those investments, it will provide a true test of whether suburbanites are willing to put their money behind all the regionalism talk. Local governments are under pressure to figure out ways to make their tax dollars go farther. The state under Gov. John Kasich has cut back what it gives them, and most cities will see their property tax revenue decline as reappraisals reduce the values of their residents’ homes. Last month, the Kasich administration released a report, “Beyond Boundaries,” that offered 10 recommendations for achieving greater collaboration among local governments and school districts so they can save money. Unfortunately, few of the recommendations under what is called “a shared services action plan” offer any hope of a near-term payoff for cities and schools that need relief now from the financial squeezes they’re feeling. What’s more, half the recommendations under the “action plan” require the state to initiate the action in order to make them happen. Consider recommendation No. 3: “The State should make a thorough review of Ohio’s existing network of educational service, information technology and education technology centers and provide recommendations on the necessary structure and governance that will provide an integrated system of regional shared service centers (RSSC) using implementation strategies detailed in this plan.” Bet someone in Columbus will hop right on that one. Sadly, “Beyond Boundaries” is more a road map than an action plan, and the road map is for a journey that will take a long time to reach its destination. Cash-strapped local governments don’t have the luxury of waiting for savings from shared services agreements they have yet to enter, much less implement. Instead, they must be resourceful in figuring out ways to cover the cost of expenditures they must make now. It’s important to the economies of Cleveland and Cuyahoga County to keep the Cuyahoga River dredged and to stabilize sections of the riverfront that threaten to give way and prevent lake freighters from navigating the waterway. Cleveland can’t handle those costs alone, which is why the city and county support plans to raise by more than 400% the levy the Port Authority traditionally uses to maintain its docks. Though the percentage is big, the increase would add just $33 a year to the tax bill of the owner of a $200,000 home. We believe it’s a small price to pay for maintaining the vitality of a key regional asset. It will be interesting to see if county voters see it that way.
FROM THE PUBLISHER
Veep options for the sports-minded
W
trade representative. Sen. Portman has a ill Mitt Romney’s running reputation — much needed, it’s easy to say mate be a Browns fan or a — of being able to see the value in modBengals fan? Or neither, erate positions, and to be able to work sending the signal that while with his opposition to get things done. Ohio is important, it just might not be Will he be “conservative enough” to that important? appease the ultra-conservative, Tea Party Remember that Mr. Romney’s predefaction of the GOP? I’ve never met the cessor as Republican standard bearer in man, but have read enough the presidential race might have about him and heard from lost because of the selection of BRIAN enough people who do know his vice presidential candidate. TUCKER him that it’s easy to see him as Mitt Romney will not choose a solid vice president. a running mate as awful as But then there’s that famous Sarah Palin, who despite her Browns fan, Condoleeza Rice. tenure as Alaska’s governor was How could we forget the fact ill-equipped to be in the office that while secretary of state, she “a heartbeat away from the often lugged around a satchel presidency.” Political pundits with the Browns logo, displaying may disagree, but my guess is her years of love for our football that John McCain lost more team gained from listening to radio thoughtful GOP voters than he gained broadcasts with her father? And what those energized by Ms. Palin’s aw-shucks wouldn’t there be to like about an ultrarhetoric and “hockey mom” theatrics. smart, respected former secretary of state In this race against an incumbent who also happens to be an Africanpresident, the Romney camp must choose American woman? carefully, and one name that keeps coming Yes, there’s Tim Pawlenty, the former up is Ohioan Rob Portman, the U.S. senMinnesota governor who created a lot of ator from Cincinnati and former U.S.
attention while he was still a candidate in the presidential primaries. His experience as a governor of a state that has a solid economy and strong Midwestern roots would bring some votes. And then there’s Louisiana Gov. Bobby Jindal, whose Asian Indian descent and cool Cajun twang would be a great reminder to voters of America’s history as a melting pot and land of opportunity for immigrants. Similarly, Florida’s youthful Sen. Marco Rubio is a darling of conservatives and would be attractive to voters of Hispanic origin. One can only imagine how much lobbying Mr. Romney is being subjected to by friends, donors and political allies. Then there are the strategists and pollsters who will be analyzing how each potential veep candidate could help, or hurt, the Republican effort this fall. I think Mr. Romney needs an exciting yet qualified running mate who would do more than help in a swing state. He does that by choosing the Browns fan. But if he wants a qualified candidate from a key swing state, he takes the Bengals fan. Stay tuned. ■
LETTERS
Reduce demand to solve health care issue ■ In his July 16 commentary, “Health care model still not healthy,” Brian Tucker states that “something intelligent has to be done to fix our health care system.” I would imagine the vast majority of Americans agree with that statement. However, government mandates are not meaningful solutions. Fundamentally, the root of the problem is we have too much demand on the health care system. Too much demand creates higher costs. So, how do we reduce demand? A recently published report shows our country has the highest obesity rate in the world. Research indicates diseases directly attributable to obesity and poor lifestyle choices are staggering. Reducing obesity and adopting healthy lifestyles (eating habits, exercise and so forth) will
reduce health care demand and reduce cost. Let us not confuse the issue by trying to provide health care for everyone without at least attempting to change personal behavior. Behavior will change when there are consequences to personal choices. Merely providing broad-brush health care will not change behavior. We need to stay focused on the root of the problem. Michael Pappas Kirtland
IB focused on ‘how’ of learning ■ I read with interest your June 18 story, Page 14 story, “IB curricula rigorous — and expensive,” that looked at International Baccalaureate programs.
As the superintendent of the only district in Ohio that offers the full IB continuum (Primary Years Program in grades pre K-5, Middle Years Program in grades 6-10 and Diploma Program in grades 11-12), I wanted to share our experience, since many of the schools you cite in your article (St. Edward, Westlake, Shaker, etc.) have come to Oberlin for IB orientation. A significant misunderstanding that was demonstrated in the story by the source in Stow is that schools purchase a “curriculum” from the IB. IB is an internationally focused, inquiry-based framework for teaching and learning, not a curriculum. Students focus not just on answering questions and completing assignments, but on the process they use See LETTERS Page 6
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THE BIG ISSUE Does a presidential candidate’s choice of a running mate affect your vote? 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com
SEAN EVANS
EILEEN MARINO
DEANTE LAVENDER
STEVE MANNA
Richmond Heights
Bay Village
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Possibly, yeah, depending on what he could bring to the table. Or she.
Yes, except in this case I am so opposed to Obama that I wouldn’t care who was picked as a running mate. I hope (Mitt Romney) picks someone good so it increases … Romney’s chances of getting elected.
For the most part it doesn’t. After researching whoever the presidential candidate is, if I agree with whatever they stand by, I would automatically assume that their running mate would fall in line.
It does not. Because I’m more leaning toward the view and philosophy of the president. … Unless (the running mate’s views) differ from the president’s views. If it’s completely extreme.
June 2012
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After five acquisitions, Nordson seeking more Westlake manufacturer’s list of targets must match proven low-risk, compatible formula By GINGER CHRIST gchrist@crain.com
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Even after acquiring five companies in the last 18 months, Nordson Corp. remains ready to wheel and deal as the Westlake-based manufacturer of automated Hilton spraying and dispensing equipment looks to build its revenue base. Nordson in the last year-and-ahalf has analyzed about 35 companies for potential acquisition and maintains a list of 10 to 20 possible targets, said Mike Hilton, president and CEO. Yet despite the lengthy roster of prospects and the recent flurry of deals, Mr. Hilton cautioned that he wouldn’t call Nordson’s acquisition strategy aggressive. “We have a pretty disciplined approach. We know where we want to be,” Mr. Hilton said. He characterized the acquisitions Nordson has made as low-risk buys — companies operating in similar spaces in terms of products and with similar business models. Nordson’s concerted acquisition effort emerged from a strategic planning process about two years ago. Until that time, the company didn’t have a set acquisition strategy and its purchases were “opportunistic and episodic,” Mr. Hilton said. Now, the company has a designated merger and acquisitions team and a goal to increase top-line growth by
8% annually, partly through acquisitions in four key markets: flexible packaging; dispensing systems for cold materials such as adhesives for folding cartons or envelopes; test and inspection equipment; and the life sciences sector, for which it supplies systems for medical equipment assembly and biomaterial dispensing. Acquisitions also must meet specific criteria. They should involve companies with a compatible business model, offer the ability to leverage Nordson’s existing capabilities, and have a low level of risk, among other factors. Jason Ursaner, a research analyst who follows Nordson for CJS Securities of White Plains, N.Y., isn’t surprised by Nordson’s acquisition push. “The company has had a fairly active M&A pipeline since Mike Hilton joined as CEO in 2010, and the acquisitions completed to date all have been in targeted adjacencies that had been previously discussed as potential opportunities,” Mr. Ursaner said in an interview. “So, in our view, they are doing what they said they would do, which goes a long way in terms of credibility.” Not only has the company started buying more companies, but it also has a clearer vision of how to leverage those companies, according to Mr. Hilton. “This has been a conscious effort to build both capabilities and to build opportunity,” Mr. Hilton said.
Getting flexible
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Of the five companies Nordson has bought since the start of 2011, three are in the flexible packaging business. Nordson entered the flexible packaging market with its July 2011
purchase of Constructiewerkhuizen G. Verbruggen NV in Belgium, a maker of flat dies and coextrusion equipment for producers of multilayer flexible packaging. Since then, the company has acquired Xaloy Superior Holdings Inc., a company based in New Castle, Pa., that makes melt delivery systems for injection and extrusion machinery used by plastic processors, and Wisconsin-based EDI Holdings Inc. (Extrusion Dies Industries), a maker of precision dies and extrusion equipment for plastics processors. In a June 26 investors’ conference call about the Xaloy acquisition, Mr. Hilton likened the company’s presence in the flexible packaging business to its existing hot melt adhesive dispensing product line for rigid packaging manufacturers. The two lines give Nordson the opportunity to serve a larger segment of the plastics processing business. “In both areas, we are delivering critical components that perform the functions of melting, filtering, pumping, flowing and dispensing,” Mr. Hilton said. “As you look now at the entire plastic extrusion processing line, the extrusion dies manufactured by EDI and Verbruggen are the next critical components in the line, following those produced by Xaloy.” Mr. Ursaner of CJS Securities said the two most recent purchases — Xaloy and EDI — nicely complement each other. Bundling a melt delivery system and an extrusion die platform is a new way to streamline operations for plastics processors.
Encores likely How soon Nordson might swing its next deal isn’t clear. “You can never quite tell when the opportunities will come forward,” Mr. Hilton said. “We had five in the past year and a half. We could go another year and not have any.” However, Mr. Hilton said he does expect the company to have a more consistent acquisition path moving forward, which indicates that Nordson isn’t done dealing yet. That likelihood was reinforced in a May 21 presentation to investors, when Nordson said it would maintain its 2011 momentum and would place greater emphasis on mergers and acquisitions. ■
LETTERS continued from PAGE 4
to approach learning. The goal is to have students better understand how they learn, so that they become effective lifelong learners. While it may be an oversimplification, IB questions focus far more on “why and how” than on “what and when?” A second misunderstanding is that IB and advanced placement are somehow similar. IB is a program that crosses all disciplines; each AP curriculum is a silo of knowledge that exists on its own. One of the fundamental reasons Oberlin chose to embrace the IB program is that we know that our students will be working in jobs that don’t exist today, using tools that have yet to be invented, to solve problems that haven’t even been identified. A good example would be the position of “Search Engine Optimizers.” Who knew that in 2000 that just a few years later these skills would be some of the most highly sought after in the world? There was no training for that. People who learned those skills were generally able to learn quickly and in a self-directed environment. We want our students ready for that
world. Another reason Oberlin chose to implement IB is that the program is available to our entire spectrum of students. All Oberlin students are in the Primary and Middle Years Programs, and any who elect to join the Diploma Program are welcome. The IB programs are for all students who work hard, not those who are identified as academically gifted. In short, the IB program transforms schools. Our outcomes with IB have been positive. Our enrollment is up (both through open enrollment and students returning from private and parochial schools), student performance has improved, college acceptances are outstanding, and the community affirmed the work last November by passing a new levy. The state has also weighed in on IB. The state Board of Education passed a rule last year that any student even attempting the IB Diploma Program automatically would be granted an Ohio Honors Diploma. John Schroth Superintendent Oberlin City Schools
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After first plan for Beachwood Aloft hotel fails, developer retrying If city approves latest effort, and group lands financing, project could be done by next fall By STAN BULLARD sbullard@crain.com
Plans for a $12 million Aloft Hotel in Beachwood are cropping up anew on Richmond Road, this time in the Chagrin Highlands corporate park. Developer Scott Berkowitz originally proposed a four-story Aloft Hotel at a site near Chagrin Boulevard and Richmond, but that plan died after Beachwood City Council rejected multiple variances for it last year. Now, Mr. Berkowitz is preparing to seek final approvals this Friday, July 27, from the city’s Planning and
Zoning Committee for the hotel on the new site. He earlier received preliminary approvals from the same committee for the four-acre site at Chagrin Highlands. “This site is zoned for hotel and requires no variances,” Mr. Berkowitz said. Moreover, he has gained a highprofile partner with financial connections. Mr. Berkowitz said investment banker Michael Gibbons has joined the project as a general partner of Boutique Hotel LP, the same title Mr. Berkowitz holds for the develop-
ment. Mr. Gibbons is senior managing director of the Brown Gibbons Lang & Co. investment banking firm in Cleveland. Mr. Berkowitz said the partners have raised the equity for the project and are negotiating with lenders for financing. Jeffrey Steck, a vice president at Brown Gibbons, confirmed Mr. Gibbons’ stake in the project. He said Mr. Gibbons has a deep background investing in multifamily properties, and the Aloft represents a new real estate opportunity in the lodging market. Mr. Gibbons was traveling last week and could not be reached for comment. Brown Gibbons serves as the project’s investment and mortgage
broker, a role it played prior to Mr. Gibbons’ investment, Mr. Steck said. “Lenders will be interested in a strong project, but it’s still difficult,” he said. If Beachwood approves the plan and financing is obtained, Mr. Berkowitz said he hopes to begin construction by late fall. The boutique hotel then could be completed in fall 2013. Although the Embassy Suites Hotel in Beachwood recently went back to its lender, Mr. Berkowitz said there is room for another limited service hotel in the eastern suburbs. He said occupancy is above 70%, and rooms are scarce in the business-oriented Beachwood hotel market Tuesdays through
Thursdays. “Older hotels have the problem of greater debt,” Mr. Berkowitz said. “We are moving forward with more equity as the industry has deleveraged.” He declined to say how much equity Brown Gibbons has raised for the proposed hotel, with would be east of the new Eaton Corp. world headquarters in Chagrin Highlands. The proposed hotel also would benefit from bringing the Aloft brand and the Starwood Hotels frequent-visitor points plan to Beachwood, Mr. Berkowitz said. Only one other Aloft is proposed in Northeast Ohio at this point — the one rising at the Flats East Bank Neighborhood in downtown Cleveland. ■
CWRU prof, researcher has new gig at White House
In the world of B to B commerce, a lot can happen between that first B and the second.
By DAN SHINGLER dshingler@crain.com
A Cleveland economist just got a national voice. Susan Helper, an economics professor and researcher at Case Western Reserve University, has been named a senior economist on the staff of the Council of Economic AdviHelper sors at the White House. There, she will be a chief adviser to the council, which advises President Barack Obama on economic policy. “I’m really looking forward to this opportunity to learn more about how policy is made,” Dr. Helper said in a statement. “I’m also looking forward to what impact my research might have on programs that affect manufacturing.” Dr. Helper is well known locally for her research into the automotive manufacturing sector, which is a sector the president repeatedly has cited as a sign of policy success following the 2009 recession. More recently, however, she’s been doing more broad-based research, including for the Brookings Institution. This year, she co-authored two papers for Brookings — one on which portions of the manufacturing sector are the most important to the U.S. economy and wage earners, and the other dealing with trends affecting where various manufacturing sectors are positioning themselves geographically in the United States. Her research often leads to conclusions that include public policy suggestions for fostering industrial growth. Dr. Helper’s new appointment lasts one year and will involve analysis of manufacturing generally. The appointment is not the first time Dr. Helper has had a voice in Washington D.C. Prior to joining the Council of Economic Advisors, Dr. Helper was a committee member with the National Academy of Sciences Panel on Manufacturing. ■
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GOING PLACES 2146 ENTERPRISE PKWY., TWINSBURG
JOB CHANGES DISTRIBUTION ACTIVE PLUMBING SUPPLY CO.: Jeff Spring to director of sales and marketing.
EDUCATION KENT STATE UNIVERSITY: Thor Wasbotten to director, School of Journalism and Mass Communication.
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NOTRE DAME COLLEGE: Nicholas R. Santilli to vice president, academic and student affairs.
FINANCE FEDERAL RESERVE BANK OF CLEVELAND: Mark Meder to senior vice president and general auditor.
and Ashley Wallace to staff accountants.
HEALTH CARE SISTERS OF CHARITY HEALTH SYSTEM: David M. Cecero to senior vice president, health care operations; Andy Motz to chief procurement officer.
Spring
Wasbotten
Santilli
HOFFMAN GROUP: Kristie Baker to account manager.
Baker
Werner
Fisher
MEDICAL MUTUAL: Danielle Werner to manager, interactive e-solutions.
COUNTIES: Kamelia Fisher to executive director.
LEGAL
INSURANCE AON RISK SOLUTIONS: Gregory M. Hubbell to senior vice president and health and benefits practice leader.
FINANCIAL SERVICES
ROETZEL: Jeff Leonard to partner.
FREE MEDICAL CLINIC OF GREATER CLEVELAND: Cindy Flores to development director.
212 CAPITAL GROUP/NEW ENGLAND FINANCIAL: Gary A. Hannah to financial adviser.
MARKETING
WELCOME HOUSE INC.: Derrick Hopperton to chief operating officer.
HILEMAN ENTERPRISES: George Solomon to senior developer.
REAL ESTATE
INNIS MAGGIORE: Kathryn Guess to account coordinator, client services.
HOWARD HANNA: Sherri JohnsonSeitz to regional vice president, west region of Ohio.
ROSENBERG ADVERTISING: Maureen Crotty to account executive; Jessa Hochman to social media strategist.
TRANSACTION REALTY: Allie Mazina, Theresa Ziebro and Stacy Collins to sales associates.
STERN: Lynn Brooks to senior vice president, director of media services.
TECHNOLOGY
BOBER MARKEY FEDOROVICH: Nancy Landry to director, information systems and technology; Matt Dobay to supervisor, tax; Kristi Shiban to word processor and administrative assistant; Michael Bigler and Greg Sinko to senior accountants; Gina Ardillo, Amy Glomski, Megan Holt, Theresa Hullihen, Jennifer McKay
TRIAD COMMUNICATIONS INC./ NEXT LEVEL INTERACTIVE: Michael Zimmerman to senior marketing strategist.
OECONNECTION: Ann Towne to product manager, mechanical.
MEDIA
AIR CONDITIONING CONTRACTORS OF AMERICA OHIO CHAPTER: Roger Gundlach (Gundlach Sheet Metal) to president; Ed Reid to president-elect; Jeff Reed to vice president; Jim Ellia to treasurer.
NORTH COAST MEDIA LLC: Marisa Palmieri to editor, Landscape Management.
NONPROFIT BIG BROTHERS BIG SISTERS OF SUMMIT AND MEDINA
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L’Albatros GM wants to train underprivileged, criminals Students at Edwins Institute would be schooled on cooking, management By KATHY AMES CARR clbfreelancer@crain.com
Brandon Chrostowski can almost taste a dream he has had for at least a decade. Mr. Chrostowski’s plan to open a restaurant training program for underprivileged adults and previously incarcerated individuals is in the nascent fundraising stages, but if the $1.5 million goal is met, the nonprofit Edwins Leadership & Restaurant Institute should launch later this year or early 2013. The initiative personally touches Mr. Chrostowski, who spent time behind bars before reorienting his life toward a pedigreed hospitality career that includes a Culinary Institute of America education and understudy stints at award-winning restaurants in Chicago, Paris and New York City. The sommelier and fromager now is general manager at the French brasserie L’Albatros in University Circle, a diamond among the gems of independently owned local restaurants. But Mr. Chrostowski’s passion is launching the institute, which he said will help address a critical talent shortage in the local culinary community and reshape the lives of individuals after their nadir. “Some people make a wrong call in life, but they deserve another chance,â€? Mr. Chrostowski said. “Hard work is the way to get there.â€? Plans for the Edwins Institute, which will be located at East 69th Street and Euclid Avenue, call for a six-month curriculum that includes cooking methods, pastry techniques, wine and food pairings, and management. Students will nurture an onsite garden that will serve as an educational tool for learning about food sourcing and sustainability. A team of five professionally trained chefs and dining room managers also will teach the 40 to 50 protĂŠgĂŠs the skills of operating both the kitchen and dining room within a fully functioning classic French contemporary restaurant. “The vibe will be chic, like a nice speakeasy, yet hip,â€? Mr. Chrostowski said. His goal is to see the program become self-sustaining if the restaurant can generate about $1.5 million to $1.8 million in annual revenues.
In search of dollars Edwins organizers so far have raised about $50,000 through personal contributions and private investors but plan to expand their financing mix to include corporate supporters and government grants. Edwins held in late June a “friend raiser� that attracted at least 75 interested parties, from those in philanthropic and legal circles to athletes and media, to cull support and spread the word about their mission. “The event had the right mix of people to make this happen,� Mr. Chrostowski said. The nonprofit’s board of directors already represent some of these sectors. Besides an education, Edwins students also will receive re-entry services that include housing assistance, health care, counseling and financial literacy. “The beauty of this program is that it takes a holistic approach,� said Mr. Chrostowski, who is taking cues from similar concepts in Seattle and San Francisco. Brian Moore, president and CEO of Cleveland-based Passages Connecting Fathers and Families, said his nonprofit will collaborate with Edwins operators to link students with ancillary rehabilitation services. “We are delighted that Edwins started working with us about a year ago,� Mr. Moore said. “We’ve placed two individuals who were incarcerated over the past year at L’Albatros, and they’re still working there.�
Voices of support Dan Polster, a U.S. District Court judge in Cleveland, supervises a Cleveland-area re-entry court, which monitors high-risk offenders who are receiving services that assist them with community and job reintroduction. About 80% of people who land a job after state or federal prison release successfully navigate their re-entry and don’t commit crimes again, he said. “So, I look forward to placing people at Edwins,� Judge Polster said. “It makes sense because it’s better for the community from a safety standpoint, and it makes sense morally and economically.� Brad Friedlander, president and CEO of Beachwood-based Red Restaurant Group, agrees. He wrote in a May 21 Crain’s Personal View
Parker launches Columbus hybrid unit Parker Hannifin help Parker ON THE WEB Story from Corp. said it’s creating realize “comwww.CrainsCleveland.com. 100 jobs in Ohio. pelling growth� The Mayfield Heights-based in the next three to five years because manufacturer of motion and control of the fuel savings and carbon technologies has launched its new emissions reductions it provides to Hybrid Drive Systems division in users. Columbus, giving the company 31 The technology is used by a locations in the state. number of U.S. municipality refuse The new division, which is part of trucks, including those in Miami, Parker’s Hydraulics Group and is and is being tested by UPS, Purolahoused in a 55,000-square-foot tor and FedEx on their delivery facility at 3885 Gateway Blvd. in vehicles. Columbus, manufactures hydraulic Parker already has hired 66 hybrid systems for heavy-duty employees, 50% of whom are engivehicles, such as refuse trucks. neers, for the new division, which Jeff Cullman, president of Parker’s began production June 28. Parker Hydraulics Group, said the hybrid has 58,000 employees company— Ginger Christ drive system technology should wide.
that employing people with a past conviction or arrest has paid off for his company. “In my experience, people with criminal records are often model employees,â€? he wrote. “They are frequently the most dedicated and conscientious. A lot of doors are shut to them, so when someone gives them an opportunity, they make the most of it. “There are so many people with convictions in the U.S. — one in four U.S. adults — that it would be bad for our communities to keep them out of work and severely limit the applicant pool for many jobs,â€? wrote Mr. Friedlander, whose restaurant group employs 340 throughout Cleveland, Miami and Boca Raton, Fla. Mr. Chrostowski said he hopes Edwins will help eliminate the prejudices other employers have toward people who’ve been convicted of a crime by graduating classes of rehabilitated, motivated and skilled job candidates. “The city is exploding with independent restaurants,â€? he said. “There’s no better time than now to get this project off the ground.â€? â–
Brandon Chrostowski, who has spent time in prison, wants to launch an institute that would help previously incarcerated individuals become skilled in the restaurant business. RUGGERO FATICA
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Aerospace advocates more unified in efforts to boost Ohio’s profile Building state’s supply chain key to potentially landing business from biggest manufacturers By GINGER CHRIST gchrist@crain.com
Led largely by the Ohio Aerospace and Aviation Council, organizations across the state are working as one to help Ohio’s $9 billion aerospace industry fly higher. A key objective of the unified effort among the state’s aviation advocates is to convince the Federal Aviation Administration to choose Ohio as one of six states that the government designates as test-flight sites for unmanned aircraft systems. The state’s selection would position Ohio for an important role in unmanned aircraft development and would attract both jobs and new businesses, industry officials said. “It’s so important when competing in the aerospace industry that we do speak in one voice,” said Joe Zeis, chairman of the Ohio Aerospace and Aviation Council and executive vice president and chief strategic officer of the Dayton Development Coalition. “The competition is framed not by region, not by city; it’s framed state by state,” Mr. Zeis said An announcement by the FAA on what sites it has selected is expected in December. Organizations such as the Ohio Aerospace Institute in Cleveland have been promoting collaboration for the past few years. However, the formation of the Ohio Aerospace and Aviation Council in 2009 by former Gov. Ted Strickland and the development in 2011 of six economic development regions through JobsOhio, the privatized economic development agency formed by Gov. John Kasich, has created a momentum toward collaboration unseen in Ohio before, Mr. Zeis said. Mr. Zeis said Ohio’s new comprehensive strategy already has positioned it to make strides in what he called a “transformative” aerospace industry. “It’s typically been the industry’s method to place bits and pieces of production in each of the 50 states,” Mr. Zeis said. “Now, because of the cost of doing business, they’re really thinking about focusing the supply chain around the prime customer.” Because aircraft makers Boeing and Airbus both have a greater concentration of suppliers in Ohio than in other states, the state could see a slew of new aerospace business shift to it.
A quest for suppliers
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For Rick Anderson, president and CEO of Kent-based Anderson Aerospace, creating a strong supply chain in the state is essential. Mr. Anderson’s 2-year-old startup is producing aircraft satellite antennas, which are sold to aircraft suppliers to provide satellite TV or broadband Internet services during flights and for command and control functions in unmanned aircraft. Because it saves time and money to use in-state suppliers, Mr. Anderson turns to Ohio-based companies whenever possible as he grows his business. However, one of his
“The competition is framed ... state by state.” – Joe Zeis, chairman of the Ohio Aerospace and Aviation Council biggest challenges is finding suppliers to make his parts. “It would be nice if there were more sources,” Mr. Anderson said. “Building that supply chain can be important.” Mr. Anderson said he already has found new sources through the Ohio Aerospace Institute, which tries to foster in-state collaboration, and has relied on his nearly 20 years of experience in the aerospace industry for others.
Spread the word Ohio — rich in aviation history, from the Wright brothers to Neil Armstrong — until recent years hasn’t marketed itself as an aerospace state. That’s changing. The aerospace and aviation council since its formation in 2009 has hosted three Ohio Aerospace Days, which are intended to promote the state’s aerospace industry and connect local businesses. Politicians and aviation business leaders have been invited to the events, which feature presentations, networking periods and company display booths and were held in Columbus. Also, taking a cue from other states, Ohio has started exhibiting at international aviation trade shows, including Farnborough International Air show in England this month and the Paris-Le Bourget Air Show in 2011. States such as Alabama, Florida, South Carolina and even New York typically have exhibits at those shows, said Michael Heil, president and CEO of the Ohio Aerospace Institute.
Learning from other states Mr. Heil said he sees aerospace becoming a big part of conversations about Ohio, in the way the agriculture, biomedical and auto industries are, thanks to the collaboration of members of the Ohio Aerospace and Aviation Council. “I think it’s important to make sure aerospace gets enough focus,” Dr. Heil said. To provide that focus, the council has created a public policy agenda, which it has presented to members of Ohio’s congressional delegation this year. The council has asked the politicians to lobby for Ohio to be an unmanned aircraft system test site; to support Ohio’s military bases, namely Wright-Patterson Air Force Base, during the next Base Realignment and Closure process, the last of which was completed in 2011; and to continue their support of NASA Glenn Research Center through investment in core programs. The goal is to help Ohio compete with other states with a robust presence in aviation, such as Alabama and North Carolina, Dr. Heil said. “We’re looking at those states and we’re learning,” he said. ■
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Virginia “GiGi” Benjamin Partner and chair of the public law and finance group Calfee, Halter & Griswold LLP
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s a partner at a sizeable legal outfit in Cleveland, Virginia “GiGi” Benjamin lays down the law when it comes to procuring the financing for major economic development projects. She also stands up for the advancement of women both in her firm and in the surrounding professional world. The chair of the public law and finance group at Calfee, Halter & Griswold has negotiated some of the region’s most challenging public-private partnerships, representing in 2002 the city of Cleveland in the development of East Fourth Street. In 2010, she helped cobble together some of the complex financing for the Flats East Bank project on behalf of the state of Ohio. “It’s challenging any time there are a number of lenders involved in a deal,” she said. “But what’s fun
is helping to build projects that will benefit the city of Cleveland.” Ms. Benjamin and Calfee currently are representing Optima 777 LLC, which is converting the old Crowne Plaza Cleveland City Centre hotel into a Westin, and the city of Westlake with the construction of American Greetings’ new corporate headquarters. Her practice also intersects with health care and life sciences, and energy and natural resources. “I like to get projects successfully moving ahead and will continue to be involved in the redevelopment of Cleveland,” Ms. Benjamin said. She ascended in 1976 from the ranks of associate at Calfee to become in 1983 the company’s first woman partner. She served on the firm’s executive committee from 2001 to 2004 and was re-elected in 2009. She sought to help her female
Ms. Benjamin gets a visit from a scarlet macaw, one of the largest and most colorful of all parrot species. Scarlet macaws may live up to 50 years. colleagues carve similar career advancement goals by establishing about a decade ago the Women’s Leadership Group at Calfee, which provides female attorneys the chance to meet and network with women clients and referral sources. “Our goal is to share ideas informally on a variety of things,” she said. “We’ve done everything from
a speaker series at the Union Club to networking events at the (Cleveland Metroparks) Zoo.” As co-chair of the program/ speaker committee for the Women’s Leadership Council of the United Way of Greater Cleveland, Ms. Benjamin organizes programs that link mentors with mentees and help foster philanthropic outreach
and the development of women in the workplace. She also is co-chair of that nonprofit’s self-sufficiency and basic needs investment committee, which invests $4 million annually in support agencies. Her influence also extends to the Cleveland Zoological Society, for which she was elected in 2011 as the board of trustees’ first woman president. She also is on the board of directors for College Now Greater Cleveland, which provides area students with guidance and access to funds for college, and is a member of the American and Cleveland Metropolitan bar associations. “GiGi … has put her experience as a leader and a driver of change to work to help others in the legal profession and in the community,” said Brent Ballard, managing partner at Calfee. “She is always willing to share her knowledge or talk through an issue, to mentor young women attorneys, and to serve as a respected and dedicated partner in the firm.” Ms. Benjamin’s hobbies include exploring Cleveland-area restaurants, cooking and photography. She lives in Shaker Heights with her husband, Philip Woodcock, and they have two sons: Benjamin and Rob Woodcock. — Kathy Ames Carr
WomenofNote 2012 Each summer, Crain’s honors a handful of the countless brilliant female business leaders in Northeast Ohio; we then photograph and film them
in one of the region’s many attractions. Enjoy this year’s group and the surroundings of the Cleveland Metroparks Zoo.
Photography by Janet Century
Anne Bitong Executive director Akron Marathon Charitable Corp.
T
he Akron Marathon’s growth has been more like a sprint, and it’s no coincidence to those who helped convince Anne Bitong to first volunteer and later become the event’s executive director that she’s been there every step of the way. Ms. Bitong, in 2003 the sales and marketing director at Cuyahoga Falls-based Main Street Gourmet, co-chaired the race’s first volunteer committee. In February 2006, after her second son was born, she left Main Street to enjoy time at home with her children. But that December, she and Amy Freeman, now the marathon’s vice president and at that point also a stay-at-home mom, pitched race founder Steve Marks on part-time jobs, Ms. Freeman the operations director and Ms. Bitong the marketing director.
A year later, Ms. Bitong sat in the full-time executive director’s seat, and overall participation has grown from 3,775 in 2003 to an anticipated 15,000 this year. “I’d seen her skill level, her commitment, her execution (at Main Street Gourmet),” Mr. Marks said. “I’m glad she volunteered and took a bigger role; she’s taken the event to another level.” Mr. Marks points to the glowing reviews the race has received on www.marathonguide.com, a sort of clearinghouse for marathons nationwide. Akron gets 4½ stars for course and fans, and 5 stars for organization. “Our whole philosophy is that every runner is a customer,” Mr. Marks said. “Anne takes every criticism, every compliment seriously. If runners aren’t happy, they’re not going to buy our product.” Ms. Bitong said she honed that approach while working at Main Street Gourmet, where the company found a niche in developing custom
foods for its clients, rather than just selling those clients the company’s products. She likens that process to the marathon: After each year’s event — this year, the half-marathon, marathon and marathon relay are scheduled for Saturday, Sept. 29 — Ms. Bitong said the staff of six is inundated with emails, good and bad, about the event. The weeks following also include sitdowns with sponsors, gauging their reactions to that year’s production. Then, January through March are spent mostly budgeting, with the next few months designing marketing plans; this year, the race’s 10-year anniversary plays a major role. Responses from participants factor heavily into preparations for next year; this year, there have been slight changes to the course, including one spot where faster participants and some of the races’ slowest nearly intersected, and the relay’s first exchange zone, which has been moved slightly to relieve congestion. But while some slight changes have made the course a touch flatter,
Ms. Bitong is watched by a pair of Grant’s zebras in the zoo’s African Savanna area. what won’t change is the course’s overall difficulty, which is Akron’s national calling card. The course starts near the University of Akron campus, moves south into the Firestone area, tracks along the Towpath bike trail to the Sand Run area, moves through Fairlawn and Highland Square and ends at Canal Park, the home of the Akron Aeros. “We travel to other races, and hear, ‘Hopefully you didn’t make it any easier,’” said Ms. Bitong, who ran the marathon relay in 2004
after her first son, Ethan, was born. Ms. Bitong is one of seven children who grew up in Akron’s North Hill neighborhood; about 30 of her family members volunteered at the first event in 2003. Her sister, Carrie Gobrogge, is the marathon’s director of runner services. Her husband, Jerry, works for Coca-Cola, and she said much of their time is spent shuffling their sons, Ethan, now 8, and Lucas, 6, to various sports events. — Joel Hammond
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WomenofNote2012
JULY 23 - 29, 2012
What do you look for in a law firm?
Focused wisdom. Ms. Downing is watched by the zoo’s grizzly bear cubs in the Northern Trek area.
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Diane Downing Senior vice president for corporate affairs Huntington Bank
I
n this age of specialization, Diane Downing is proving the value of the liberal arts degree she earned from Vassar College in 1977.
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A political science major and student government president from Spring Valley, N.Y., Ms. Downing since coming to Cleveland after college has built a career working in government, outside government, for Republicans and for Democrats. “For me, it’s all just different opportunities to give back to the community I’ve had the privilege of coming to and getting to know and be a part of for the last 30-plus years,” she said. In that time, she’s helped the city climb out of default and build and run Cleveland Browns Stadium. Now she serves as senior vice president of corporate affairs for Huntington Bank in Cleveland. “Even though I did not grow up in Cleveland, I really love the city,” she said. “From the time I came here to work in 1977, it was a place for young people to get involved early in a welcoming community.” In addition, Ms. Downing continues to work for a variety of civic and nonprofit organizations, including the Bond Accountability Commission of the Cleveland Metropolitan School District, the Cleveland Botanical Garden, the Cleveland-Cuyahoga County Port Authority, College Now Greater Cleveland, the Gordon Square Arts District and The Presidents’ Council Foundation. Ms. Downing found her way to Cleveland after graduation with the guidance of Francine Taft, an active Vassar alumna whose husband Seth, a Republican, was at the time a Cuyahoga County commissioner. He hired Ms. Downing first as an intern and then as a full-time aide. From there, in 1980, she went to work for Republican Cleveland
Mayor George Voinovich and stayed on in 1990 with Mayor Michael R. White, a Democrat, when Mr. Voinovich left to run for governor of Ohio. She left City Hall herself in 1995 to be assistant executive director of the Ohio Lottery Commission and served there two years before returning to Michael White’s City Hall to be the project director of the new Cleveland Browns Stadium. Ms. Downing survived that thankless task with her reputation as an able administrator intact — the decision of Mayor White to fund and build the stadium was controversial and the project ended up over budget. When the project was completed on time in August 1999, The Plain Dealer cheered her for sacrificing “nearly three years of her life to oversee construction of the new Cleveland Browns Stadium. It wasn’t on budget (she wasn’t the one who made that promise), but it was on time and is an outstanding facility.” In fact, the Browns ended up hiring her to run their new stadium. In 2008, she left the Browns to run the district office of Sen. George Voinovich, serving in that role until the senator retired in 2010 and she joined Huntington. “Diane has helped shape the direction of the community,” said Dan Walsh, Huntington regional president of the Greater Cleveland market. “She has had such a deep impact in all corners of the Cleveland community and continues to do so as she has throughout her career.” Diane and her husband, attorney Tom Corrigan, live in Cleveland and have three grown children. — Jay Miller
SPECIAL THANKS Crain’s Cleveland Business would like to extend a thank you to the Cleveland Metroparks Zoo and its staff, especially the public relations staff, led by Tom Robatin, for their help in facilitating the 2012 Women of Note photo shoot. Thirteen of this year’s honorees were photographed and filmed at the
zoo in early June, when school field trips were wrapping up for the year and during the facility’s peak hours. Assisting Mr. Robatin, the zoo’s marketing and public relations specialist, were fellow marketing and PR specialists Kevin Grissinger and Joe Yachanin.
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Sue Frankel Vice president of construction Stark Enterprises Inc.
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ue Frankel’s work on the firing line as a construction consultant in her own company, Susan Frankel & Associates, opened the door for her to join and establish a construction department at one of the region’s high-profile realty developers. Steve Rubin, chief operating officer of Cleveland-based Stark Enterprises Inc., recalls she did “such a good job for us in tenant coordination when we were burning our hair to open Crocker Park that we asked her to join the company.” That was seven years ago, Mrs. Frankel said, though she can hardly believe it has been that long. At Stark, she serves as the owner’s representative riding herd on construction contractors. Projects have ranged from new shopping centers to outfitting stores for tenants, including the opening of 16 Northeast Ohio stores during the last year for the Stark family’s Menchie’s frozen yogurt chain. The registered professional engineer helps tenants get into storefronts and works on determining the construction feasibility for new ideas that Mr. Stark, the firm’s namesake, president and CEO, develops. That is a regular occurrence when working for the selfdescribed “poet-developer” who pursues retail projects with the passion of Keats or Byron. “What’s exciting about working with (Mr. Stark) is that you never know what’s next,” Mrs. Frankel said. “He so thinks outside the box. Every day is different. He pushes everyone to do bigger and better. … He brings all of us along for a great ride. It’s exciting.” Mrs. Frankel soon will focus her skills on some exciting projects. She will play a role as the new American Greetings Corp. headquarters rises over the next few years at Crocker Park in Westlake, which Stark developed with the Carney family as a mixed-use center with office, retail and apartment space. She also will work on the company’s Portage Crossing shopping center with the city of Cuyahoga Falls, likely to be one of the first new shopping centers launched in the region since the recession struck in 2008. Multimillion-dollar construction jobs are nothing new to her. Mrs. Frankel had operated her own consultancy — and did work on projects such as what’s now Quicken Loans Arena — to gain the flexibility she needed while her three sons, now grown, were young. In her career, she has worked with major contractors on projects such as the 200 Public Square skyscraper and the former TRW Inc. headquarters in Lyndhurst. She also worked two years for Jeffrey Appelbaum, a litigator and construction expert at the law firm Thompson Hine LLP, analyzing where things went wrong in various construction projects. That was beneficial in her development, she said. Ironically, it was her choice of the University of Vermont that led her on this path. After settling on the school, Mrs. Frankel said she was too late to get into its business administration program. Instead, she went to its engineering school because it offered classes in environmental design.
That was a gutsy move for someone who liked humanities more than mathematics at Hawken School. She tackled engineering without the benefit of a calculus class and today admits, “It was tough.” By the time she graduated, construction attracted her because there were greater opportunities in it then than in the nascent environmental area. Today, Mrs. Frankel, whose fashion signature is Converse tennis shoes in red or one of five other colors, discusses engineering careers with anyone who is interested. Two of her three sons are pursuing engineering; the third is in high school. She said her sons grew up with the idea she could do anything that needed to be done. Her husband, Mitch Frankel, is such a partner that the boys learned domestic tasks are not women’s work. “It’s family” work, Mrs. Frankel says. — Stan Bullard
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Mrs. Frankel is watched by the zoo’s female Amur tiger, Dasha. Amur tigers are the largest of all the big cats.
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Lori Franklin Chief operating officer, controller OverDrive Inc.
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ori Franklin has a lot in common with James Dyson. She isn’t an inventor like the founder of Dyson Ltd., a British company that has designed some of the world’s best-selling vacuum cleaners. The mantra that Mr. Dyson repeats in the company’s commercials, however, could be hers as well: She just thinks things should work properly. Ms. Franklin is chief operating officer and controller at OverDrive Inc., which distributes e-books,
Ms. Franklin was paid a visit from this blue-fronted Amazon parrot, which is native to South America and used in zoo educational programs.
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audiobooks and other digital content through libraries, schools and retailers. The role suits Ms. Franklin, who oversees the Valley View-based company’s accounting, human resources and administrative departments. The desire to make things run more efficiently is “at my core,” she said. “I like fixing things. I like improving them,” she said. Since she arrived at OverDrive 10 years ago as a part-time financial consultant, Ms. Franklin has formalized the process the company uses to recruit employees and overhauled its payroll system, which among other things now lets employees manage their own benefits via the web. The 1989 Strongsville High School graduate also has pushed OverDrive to implement several software programs designed to make employees more productive. For instance, though the company’s sales team for years had been using Salesforce.com’s customer relationship management software, now nearly 100 of OverDrive’s 160 employees use it.Her latest project is a biggie: She is managing OverDrive’s effort to build a new headquarters in Garfield Heights. Ms. Franklin helped line up the incentives the company will receive from the state, Cuyahoga County and the city of Garfield Heights, and she keeps in touch with the contractors who are building the 95,000-square-foot structure. She also conducted surveys to figure out what employees wanted in the new headquarters, which will include two indoor basketball courts, among other features. The two amenities on which she insisted reflect her focus on improving processes. First, she wanted the bathrooms to have soap dispensers attached to the sinks. If employees don’t need to reach for soap, they won’t get water on the countertops, she said. She also wanted the bathrooms equipped with Dyson Airblade hand dryers, which blast users’ hands with room-temperature air, drying them in about 12 seconds. “I don’t ask for a lot,” she said with a laugh. Mike Vantusko, chief financial officer for OverDrive, described Ms. Franklin as “a hard-working, industrious executive who really understands what it takes to grow a business.” That’s evidenced by how she became chief operating officer. Though her first job at OverDrive was to manage the company’s books, when new tasks came up, she often volunteered to take them on, Mr. Vantusko said. “We kept giving her more and more work,” he said. Work, however, doesn’t define Ms. Franklin, who earned a bachelor’s in business administration and accounting from Bowling Green State University in 1993 and a master’s in business administration from Baldwin-Wallace College in 2000. She stays balanced with the help of religion (she attends Royal Redeemer Lutheran Church in North Royalton) and running (she’s done a few marathons). She also enjoys spending time with her kids, ages 15, 13, 7 and 4, and takes them on trips to their cabin on Atwood Lake, which is southeast of Canton. “It’s important to make sure you step back and take time out to enjoy life,” she said. — Chuck Soder
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Marlene Herman Owner/president Aamco Transmission & Total Car Care
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arlene Herman may not wear men’s shoes, but she’s still managed to climb high above the glass ceiling. While other women were going into nursing, teaching or secretarial work, Ms. Herman, now president of Aamco Transmission & Total Car Care, took the manufacturing route, after a brief stint in banking. “It was truly, truly a good-oldboys network,” Ms. Herman said of the manufacturing industry. Rather than shrink away, Ms. Herman for seven years proved herself within the business. Her resilience paid off, when in the mid-1990s she felt she had the business savvy to head her own company. Ms. Herman in 1994 purchased a No. 1-rated Aamco franchise on Brookpark Road, the start to what would become a lifetime in the automotive industry. “It’s funny where life takes you, and you don’t know,” she said. Ms. Herman owns two Aamco franchises in the Cleveland area — her first, which now is on Lorain Avenue, and a second on Mayfield Road in Cleveland Heights — and she employs nine. Her husband, Paul Helm, runs the West Side store, while Ms. Herman handles the East Side store and the business end of the company.
Being a female in a male-dominated auto industry has not been easy; Ms. Herman occasionally has dealt with gender bias. In one instance, after Ms. Herman greeted an elderly man, he asked to speak to “one of the guys who knows what’s going on,” she said. “If a man comes in in a suit, you tend to just believe whatever he says because he’s a man in a suit. If a woman walks into a room she has to prove herself,” Ms. Herman said. Yet, despite the obstacles, Ms. Herman also appreciates the struggles she’s gone through because it has helped her shape her business into one in which she takes pride. She’s built up transmission and total car repair shops she hopes women can visit comfortably, without feeling at a disadvantage. Her business was the first transmission shop to be certified by AAA. At the time, AAA only certified auto repair shops that provided three services and wouldn’t award the certification to a company that specialized in one area. “The general MD you’re going to certify but you’re not going to certify the brain surgeon?” Ms. Herman said. That same tough attitude with which Ms. Herman approached AAA carries through to her other business dealings, including her time spent as chairman of the board of the Greater
Ms. Herman gets to know a flock of lesser flamingoes near the zoo’s main entrance. Flamingoes get their unique colors from the foods they eat, specifically those containing pigments called carotenoids. Cleveland Better Business Bureau. David Weiss, president of the Greater Cleveland BBB, characterized Ms. Herman as a person with a quiet command over her surroundings. “She will always speak her mind, but she’ll do it gently,” he said. He said Ms. Herman carries the same respect at her shops, where she demonstrates knowledge and control over the business but does so with a lady-like demeanor. “What I think is really special about Marlene is how she is a lady
who operates so effectively in areas that are traditionally considered reserved for men,” Mr. Weiss said. At every level, Ms. Herman is proof of the falsity of stereotypes. She loves sports, still bowls and remained active in volleyball and softball well into adulthood. Yet she collects antique dolls and loves gardening. On the weekends, she can be found fishing. And a central part of her life is volunteer work. “It’s nice to be able to make an effect in the community,” she said. “I
am community-oriented. I can run a good clean shop and still help the community, help the people.” She speaks to students about credit and credit card fraud through the Greater Cleveland BBB’s Teen Smart Program, performs mock interviews with students at Cuyahoga East Vocational Education Consortium and is involved in Kamm’s Corners Development Corporation, Chagrin Highlands Rotary Club and Order of the Eastern Star, among others. — Ginger Christ
Esteemed Experienced Essential Our law firm congratulates Virginia “GiGi” Benjamin, partner and chair of the Public Law and Finance group, on her selection as a 2012 Woman of Note and salutes all of the honorees for their accomplishments and their contributions to the community.
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Linda Syrek Kelly Chief executive officer ABC the Tavern, XYZ the Tavern, Viaduct Lounge
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s most anyone can attest, ma knows best. That’s why colleagues look to Linda Syrek Kelly as the matriarch of a local restaurant operation that is percolating with growth potential. “She’s like a mom to her employees. Everyone calls her ma. Even the people she has fired still call her ma,” partner Alan Glazen said. Ms. Kelly runs the front of the house, the back of the house and more as CEO of Viaduct Lounge, XYZ the Tavern and ABC the Tavern. Ms. Kelly; her husband, Randy; and Mr. Glazen three years ago formed a partnership that has materialized into a multimillion-dollar hospitality company, A-Z Taverns Inc. “I absolutely love my job and the people I work with,” Ms. Kelly said. Her work in the industry began in the mid-1980s, when she tended bar at taverns in Brunswick, Medina and Columbus. She met Mr. Kelly a few years later while working at a sports bar inside Quicken Loans Arena,
which then was known as Gund Arena, and they “struck up a relationship quickly,” Mr. Kelly said. The duo moved on and helped turn the tables on an old dive in the Detroit Shoreway neighborhood. “It was just this sleepy old dumpy bar with a bunch of sad drunks,” Mr. Kelly said. After a menu revamp, ParkView Nite Club years later still is known for good grub and entertainment. They were recruited in 1999 to serve discriminating clientele at the swanky Velvet Tango Room, where they remained for about three years. The Kellys then took over the West Side Market Café, and jettisoned a menu of frozen and canned items for “scratch comfort food.” It was there Mr. Glazen, a frequent customer, struck a relationship, then ultimately a partnership. Ms. Kelly in 2009 helped orchestrate the revival of ABC the Tavern in Ohio City, followed in 2011 by XYZ the Tavern in the Gordon Square neighborhood, and later that year the Viaduct Lounge on Superior Viaduct overlooking the
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West Bank of the Flats. When the next ABC the Tavern opens in late summer or early fall in University Circle, the restaurant company will employ about 75 individuals and generate between $4 million and $5 million annually. Ms. Kelly steers the operation but is not a backseat driver; whether she is washing dishes, serving drinks or strategizing new deals, her employees are empowered to test-drive their own futures in hospitality by developing new menu items or working toward management opportunities. As the venture moves forward, Ms. Kelly no doubt will play a key role in conceptualizing additional eateries. “Randy and I make decisions, but we look to Linda for her blessing,” Mr. Glazen said. “Let’s keep opening restaurants until she falls over dead. This woman doesn’t know how to stop.” Ms. Kelly squeezes in hobbies such as golfing and dining out at faves such as Johnny’s Bar on Fulton, Noodlecat, Lola and Momocho with her husband and son, Zac (who works at ABC the Tavern). Her full-time job will continue to be watching her work family expand and grow. “I’d like to see the longtime employees one day be in charge,” Ms. Kelly said. “They’re so loyal, and we want to reward them.” — Kathy Ames Carr
A greater sulphur-crested cockatoo gets a bird’s-eye view of Ms. Syrek Kelly in the zoo’s Australian Adventure area.
ONLINE FEATURES Fourteen of this year’s Women of Note were filmed answering questions about their respective rise up the corporate ladder and other issues facing women in the workplace today. These videos, portions of which will be shown at a recognition luncheon this Wednesday, July 25, will be available on our website later this week. Visit http://www.crains cleveland.com/section/WON to view the videos. The questions asked and answered included:
■ Why do you think the female factor is so important in today’s economy and business world? ■ What advice would you give to young professional women just starting out in their careers? ■ What or who has been your greatest influence and why? ■ In your opinion, what makes living and working in NE Ohio unique or special? ■ What is your favorite animal and why? ■ Which historical figure do you most admire?
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Jih-Fen Lei Director of research and technology NASA Glenn Research Center
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ih-Fen Lei probably wouldn’t have ended up in charge of research and development at NASA Glenn Research Center had she pursued her first career choice: professional dancing. That idea didn’t fly with her father. “He said, ‘Nope. You can dance as a hobby, but not as a career,’� Dr. Lei said with a smile. That, however, was the only limit that her parents or teachers set for her as she was growing up in Taiwan. Hence, she never felt out of place in laboratories or meetings full of men. “I never see myself as a woman. I just see myself as a person,� she said. As director of research and technology at NASA Glenn, Dr. Lei oversees about 460 NASA Glenn employees and another 260 private contractors who conduct microgravity research, design power equipment, develop new communication technologies — you name it. One of Dr. Lei’s goals since being named director in 2006 is to get all those scientists and engineers to do more work together, even if their work seems unrelated at first glance. In January 2011, she started the innovation and creativity working group. For instance, in April, scientists and engineers from across NASA Glenn got together for a two-day workshop during which they discussed technologies that could make it possible for aircraft to rely more on electricity and less on traditional fuels. Now the group is starting to plan activities that could get the center’s nontechnical staff to look at topics such as diversity in a new light, Dr. Lei said. She also started a series of innovation forums, during which NASA Glenn’s technical employees can talk about projects they’re working on and seek input on how to solve problems. “You don’t say, ‘That’s impossible.’ You say, ‘What’s possible?’� she said. Dr. Lei spent 10 years doing research before becoming an administrator. She first began working with the federal agency as a private contractor in 1989. At the time, NASA was working with an aerospace company that wanted a sensor that could withstand temperatures exceeding 1,000 degrees Celsius. Dr. Lei — who at the time was working toward a Ph.D. in material science and engineering from Northwestern University — spent the next 10 years designing a sensor that could achieve that goal without sacrificing performance. The company adopted the technology. “It’s just very satisfying from the university work all the way to people now using it in the application,� said Dr. Lei, who has published roughly 100 articles in technical publications and earned three R&D 100 awards, which R&D magazine gives out to recognize breakthrough innovations. Former NASA Glenn director Woodrow Whitlow Jr. appointed Dr. Lei to her position, which he once held. He doesn’t regret the choice. She is a technical expert who has both passion and compassion, said Dr. Whitlow, who today is associate administrator for Mission Support at NASA’s headquarters in
CRAIN’S CLEVELAND BUSINESS
Washington, D.C. She’s also an unselfish leader, Dr. Whitlow said. He described how she once wanted him to visit one of NASA Glenn’s labs so she could show off how her colleagues were using “laser tweezers� to manipulate individual atoms. “She was more interested in exposing her people to me as opposed to just wanting face time,� he said. Dr. Lei, whose husband, Jun, is an engineer at NASA Glenn, speaks to children a few times a year about NASA and what she does for a living. They could do the same thing, she tells them. After all, when she arrived in the United States to attend Northwestern, she didn’t speak much English. “The message is always, ‘If I can do what I do, anyone can do it,’� she said. — Chuck Soder
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Dr. Lei relaxes in front of the 25-foot waterfall inside the entrance to The RainForest, which is celebrating its 20th anniversary this year and is home to almost 600 animals and 10,000 plants.
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Tracy Marek Chief marketing officer, senior vice president Cleveland Cavaliers
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racy Marek swears she’s never cursed her boss, Cleveland Cavaliers owner Dan Gilbert, as he has added significantly to her plate the past five years. Mr. Gilbert brought the Lake Erie Monsters, an American Hockey League franchise, to Cleveland in 2007, and last year bought and moved a New Mexico NBA Development League franchise to Canton. In January, he acquired the Arena Football League’s Cleveland Gladiators, the Cavs and Monsters’ co-tenant at Quicken Loans Arena. So despite an office that looked like it had been hit by a tornado during a late-April visit — the Cavaliers, Monsters and Canton Charge’s seasons had just ended, and the Gladiators just were getting going — the ever-smiling Ms. Marek has embraced the expanded workload as a return to her roots. Ms. Marek got her start in sports public relations while a student at Boston University and an intern at the old Boston Garden. She split time there and at BU’s student
newspaper, but decided she liked “being the brand” instead of reporting on it. So she applied to every sports team and landed with the Cleveland Lumberjacks, first as an intern and by the time she left the now-defunct hockey team nine years later, as the vice president of marketing. “The good thing about the minors is that you do six jobs at once,” she said. “It’s fun to be the brand, be cool, be fun and listen to the fans. We have the liberty to do those things here.” From the Lumberjacks, she joined General Sports and Entertainment, a Detroit-area firm that at the time was buying minor-league sports teams. She ran a GSE minor league baseball team called the Fort Wayne Wizards — now the TinCaps — for three years before returning in April 2003 to Cleveland, this time with the Cavaliers as the team’s vice president of marketing. A month later, the Cavaliers won the NBA’s draft lottery and later drafted LeBron James, and thus Ms. Marek’s comfort in chaos.
Ms. Marek poses in front of one of three outdoor ranges at African Elephant Crossing. Opened last summer, it is the zoo’s newest exhibit and largest capital project in 20 years. Nine years later, Ms. Marek’s job is more difficult than ever, without LeBron in the building, mounting losses on the court and the new teams on board. Yet the Cavaliers’ marketing team consistently has been lauded
We join Crain’s in recognizing this year’s Women of Note. Thank You to the women of Maloney + Novotny for all of their hard work and dedication.
Amy Adams Michelle Balish Sherri Bates Melissa Bordine Jennifer Browning Erin Budrys Amy Crawford Jackie Galaska Diane Gallagher Sadie Goble Chris Holder Katie Howard Tracy Justice Pam Lebold Mary Ann Little
Peggy Loudin Kristine Loughran Beth Markin Judy McDade Sarah Michael Kim Miller Joan Morgan Linda Nesbitt Dana Patterson Alyson Pattie Priscilla Perrotti Lisa Raber Maureen Redmond MaryAnn Rivera Kathleen Rochford Laura Sas Denise Stella Jennifer Tome Darlene Wesolek Lorie Wyrock
by industry peers for its work. “We never had an identity crisis after LeBron left,” Ms. Marek said. “People thought everything would be different, but when things went down a different path, we became more solid. Part of the fun of sports is questioning everything, but we haven’t changed as an organization.” And as Ms. Marek attests, her early experience in the industry played a key role. “It was very clear early on the passion she had for the industry,” said Ken Mather, now an assistant commissioner for media and public relations at the Clevelandbased Mid-American Conference with whom Ms. Marek worked at the Lumberjacks. “She was very proactive, and we were very aggressive and had the freedom to take risks. With limited resources in the minor leagues, we had to beg, borrow and steal to find the
resources to get it done. But she always did what it took to do so.” Ms. Marek and her husband, Randy Newell, live in Lakewood. When she’s not devising the Cavaliers’ next marketing strategy, she’s raising thousands for the American Cancer Society. Her mother, Mary Ellen, died in November 2001, two months after she and Mr. Newell married. In 10 years, she has raised more than $46,000 for the ACS, and her yearly haul now has risen to between $8,000 and $10,000. And she also sings Cleveland’s praises. “I’ve never lived somewhere so community-driven,” she said. “People are so proud to be from here. When we look for new hires, some of the best people out there are those trying to get back to Cleveland.” — Joel Hammond
WOMEN OF NOTE LUNCHEON Help Crain’s honor this year’s Women of Note class at a recognition luncheon this Wednesday, July 25, at LaCentre in Westlake. After being presented with their awards, each of the honorees present will speak to the
crowd for a few moments. For more information on the event and to register, visit http://www .crainscleveland.com/section/WON or call Jessica D. Snyder at 216-7715388.
CONGRATULATIONS
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For being named a Crain’s Cleveland Woman of Note
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M. Joan McCarthy President and owner MJM Services
M.
Joan McCarthy ascended out of the ranks of the insurance industry when an available part-time position at a local alumni organization inspired change — in more ways than one. The career move in 1983 to work in association management at the Northeast Ohio arm of the Harvard Business School Club was a refreshing switch for Ms. McCarthy. But it also motivated her to start her own association management company after she realized a need for that type of service existed. Twenty-five years later, the president and owner of MJM Services is overseeing operations and event planning for 26 professional and alumni organizations — including Harvard Business School Club, Association for Corporate Growth’s Cleveland chapter and National Association of Estate Planners and Councils, the latter of which has 220 councils nationwide. In 2010, Ms. McCarthy was awarded the ACG President’s Award for Excellence in Association Management, and this year, ACG Cleveland garnered chapter of the year out of 57 chapters worldwide. “We are the back office for all our clients,” Ms. McCarthy said. “Once the content of a meeting is established, we do everything from creating the invitations to sending material to members, and coordinating whatever needs to be done to organize and execute an event.” The 10-employee Cleveland firm also manages accounting and other financial services for its clients, which are judiciously selected. “We do quite well with our existing clients referring us to other organizations. We continue to grow, but we only take one or two clients a year,” she said, noting the assimilation process is comprehensive and sometimes time-consuming. “From our perspective, it’s getting used to what a client’s system is (for organizing and executing events) and integrating that system” into MJM Services’ operations, she said. The Harvard Business School Club’s global alumni conference in 2001 serves as an example of MJM Services’ capabilities. That event drew 1,000 attendees representing 45 countries to Cleveland, where Ms. McCarthy’s firm coordinated visits to cultural gems such as Severance Hall and the Rock and Roll Hall of Fame and Museum. Attendees toured NASA, swung clubs at Firestone Country Club in Akron and even witnessed an open heart surgery at the Cleveland Clinic. “It was only the fifth time (the conference) had been held in the U.S. at that time,” Ms. McCarthy said. “We were the smallest market to have hosted that event, and to this day that conference drew the highest number of alums.” Her community outreach includes current membership on the Notre Dame College board of trustees. “She was a superb board chair, is a great resource and is a great source of strength,” college president Andrew Roth said. “She’s unflappable. “Her tireless work on behalf of the college and its students has literally empowered the college to
change students’ lives,” he said. Ms. McCarthy served for 13 years on the board of directors for Golden Age Centers. She has reconstructed four generations of family roots through genealogy — one of her hobbies — and enjoys reading biographies. Her other passion is traveling. Ms. McCarthy has been to such destinations as Australia, South Africa, Peru, Argentina, Uruguay and Brazil. This summer’s agenda includes Scandinavia, Sweden and Finland. In fact, her travels coincide with this year’s Crain’s Cleveland Business Women of Note luncheon this Wednesday, July 25. “I’ll be in Estonia that day,” she said. — Kathy Ames Carr
Ms. McCarthy is flanked by the zoo’s Bactrian camels. Native to Mongolia, the animals were shedding their winter coats in time for a Cleveland summer.
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JULY 23 - 29, 2012
Marsha Mockabee Chief executive officer/president Urban League of Greater Cleveland
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roud to honor our partner and a Woman of Note, Mary Ann Shamis, CFO of Paytime Integrated Payroll Solutions. Overcoming obstacles with grace, achieving success through perseverance, and setting an example for other business leaders. Congratulations to all of the Women of Note honorees, and thank you for making a difference.
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CLEVELAND’S MOST INCREDIBLE HOMES
arsha Mockabee didn’t mean to become an influence in the lives of hundreds of Clevelandarea youth — there was a time when she was perfectly happy selling communications services in the corporate world. But then, she also never intended to become CEO of the Urban League of Greater Cleveland, either. Today she’s happy about the unexpected turns her life has taken, and thankful for her opportunity to give something back. It fits well with her sense of responsibility, instilled in her by good parenting and her own religious faith. “It’s absolutely come from my strong faith in God,” Ms. Mockabee says of her success. “I believe that to whom much is given, much is required.” Her journey began in earnest when the phone industry was reorganized in 1985, and she left what was then Ohio Bell “increasingly dissatisfied with the corporate track” on which her life had been. So, instead of looking for another corporate gig, she went to work for Case Western Reserve University. She thought she would be spending most of her time with adults, recruiting them to serve as mentors for youth, but she soon was asked to work with children instead. She didn’t think she would like it. She loved it.
Ms. Mockabee stands in front of Wade Hall, the to its current location on the shores of Waterfo “I went in and I was absolutely transformed. I just loved the transparency and honesty of the young people,” she says. Soon she was not only working for youth programs, but running them, first for Case Western Reserve and then for the Urban League, which she joined in 1991. Today, she runs the entire organization, including all its youth programs that help educate, train and prepare 400 to 500 area students a year. She says she has learned to dele-
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t wasn’t lost on Beth Mooney, who dreamed of running a bank for probably 20 years, that achieving the dream in May 2011 wasn’t just a milestone for her. That said, the first female chief of a top 20 U.S. bank didn’t expect all of this. “I certainly was proud of the accomplishment,” said Ms. Mooney, who has worked in banking for more than 30 years. “I was proud to be the first. (But) a year ago, if you’d said, ‘You’re going to be on the Top 100 (World’s Most Powerful Women) Forbes list’ … it wouldn’t have crossed my mind. “I care about doing it well for women,” she added. “I’m keenly aware of my place in history. By the time I retire, I’d like to see (my being the first woman) be a footnote, not the headline.” Asked why she believes she’s the first, Ms. Mooney shared her observation that a generation of women, including her, laid roots in banking when it was still rare for women to do so, and now, those women are becoming executives. She’s optimistic that more of the same is on the way. Ms. Mooney, 57, regards her first year as CEO as a good one. She loves her work — “I can see its purpose,” she said — and she credits her success to her sense of self, sense
of humor and sense of team. “It’s important to me that I show up as someone who’s grounded in the business, but that I also show up caring about the people,” Ms. Mooney said. “At this level, you need a lot of people to believe in you because you believe in them. We can’t get there if they don’t believe in what we’re doing.” According to a longtime friend, Ms. Mooney is a compassionate leader with a great sense of humor. “Beth never forgets how she got to where she is,” said Denise Reading, president of Global Corporate College in Solon, who was one of the first to welcome Ms. Mooney when she moved to Cleveland in 2006 to lead Key Community Bank. “She never forgets the first job and what it took to do the first job, and the second job and what it took to do the second job. She never takes for granted all the rungs of the ladder that she had to climb. “She works smart and she works hard,” Dr. Reading continued. “When she says, ‘We’re going to roll up our sleeves’ … she doesn’t mean you’re going to roll up your sleeves. She means we.” When Henry L. Meyer III, KeyCorp’s former CEO, hired Ms. Mooney, he asked if she was worried about moving to Cleveland — then a foreign city to her — as a single woman, Ms. Mooney recalled. He might not have asked if he knew her upbringing: A native of
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Debbie Read Managing partner Thompson Hine
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l, the first zoo building. Built in 1882 on Wade Oval in University Circle, it was later moved aterfowl Lake, home to a flock of Chilean flamingoes. gate responsibility and to direct services that are provided by others — but she still can’t resist the opportunity to see the occasional student or attend graduations. “I make sure I always have an opportunity to get what I call my ‘kids fix,’” she said. At the same time, she’s become a beloved figure within her own organization, says Urban League board of directors co-chair Pat Ramsey. “They absolutely adore her because she can effectively motivate them to move in the right
direction,” Ms. Ramsey said. But Ms. Mockabee has not lost a step when it comes to managing adults, Ms. Ramsey attests. She has become not only the face, but also the driving force behind the organization, she said. “Marsha is a person who, even though she focuses on the big picture, she understands the details,” said Ms. Ramsey. “People would probably not continue to fund (the Urban League) so well without her at the helm.” — Dan Shingler
MARC GOLUB
Beth Mooney at KeyCorp’s downtown Cleveland headquarters Michigan, Ms. Mooney’s family moved four times during her high school years because of job changes for her father, a chemist. She ended up a freshman in Michigan, a sophomore in Oregon, a junior in California and a senior in Texas. Ms. Mooney says moving so frequently is possibly one of the best things that happened to her. “You learn how to meet strangers,” she explained. “You learn how to fit in.” And she’s used that life lesson during her professional career, for which she’s moved nine times in 16 years. To settle into new places and to meet like-minded people, she seeks out involvement in civic organizations — quite frequently in symphonies and orchestras, since she loves music. Currently, she’s on the boards of the Cleveland Clinic, the Musical
Arts Association, the Greater Cleveland Partnership and United Way of Greater Cleveland. Though she’s a successful banker and a single woman without children, Ms. Mooney insists women who choose other paths can accomplish what she has. “I absolutely believe that people can do this with a family,” she said. “It just so happens I didn’t.” Ms. Mooney lives in Bratenahl with her cat, Cassie, who has made all but two of those moves with her. (“While I’m a person at work who’s a bit of a tornado, my house is perfectly in order,” she revealed.) In addition to music, Ms. Mooney loves sports. In fact, Ms. Mooney is so competitive about them that Dr. Reading divulged: “If we were playing Trivial Pursuit, and the category was sports, I would pick Beth.” — Michelle Park
racticing law may not have been her idea initially, but Debbie Read certainly has run with it. Though she set out at Ohio University to become an investigative reporter, Ms. Read switched to a double major in journalism and political science after professors suggested she’d be a good fit for law school. On May 1, after nearly three decades of practicing law, Ms. Read, who turned 55 yesterday, July 22, became the first woman to lead a large Cleveland-based law firm. In fact, only 5% of the nation’s 200 largest law firms have a female overall managing partner, according to the most recent survey conducted by The National Association of Women Lawyers and The NAWL Foundation. While she says she doesn’t want the story of her success to be just about her being a woman — “I don’t really want to be given or awarded a position because of my gender” — Ms. Read also doesn’t want to diminish the importance of her promotion to other women,
Thompson Hine’s Debbie Read at her home in Shaker Heights including strangers who have written to tell her how inspired they are by her success. “For me, (that response) made it all the more important that I do an excellent job,” Ms. Read said. Ronn Richard, president and CEO of the Cleveland Foundation, says she’s been doing that. “In my long government and corporate career, I have worked with probably 100 lawyers and she is by far the most brilliant, the most dedicated to her clients, the most business-savvy and the most enjoyable attorney to work with,” said Mr. Richard, whose founda-
tion has employed Ms. Read as general counsel for more than eight years. “I think she is universally viewed across the country as the best nonprofit lawyer in the United States. “She understands … ‘If I give Ronn this legal advice, how does it affect morale, how does it affect business efficiency, how does it affect servicing their donors?’” Mr. Richard said. “She looks at the whole picture. She’s not content to say, ‘Well, I did my job. I gave him legal advice.’” An alumna of Ohio University See READ Page W-12
SALUTING OUR COLLEAGUE AND CHAPTER EXECUTIVE Congratulations to Joan McCarthy on her selection as a Women of Note honoree. Under her administrative leadership, ACG Cleveland has grown to 500 members and was recently named 2012 ACG Large Chapter of the Year by the Association for Corporate Growth. THANKS, JOAN.
M. Joan McCarthy Owner, MJM Services Chapter Executive, ACG Cleveland
DRIVING MIDDLE-MARKET GROWTH
W W W. A C GC L E V E L A ND.O R G
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Mary Ann Shamis
Read continued from PAGE W-11
Chief financial officer Paytime Integrated Payroll Solutions
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hen Mary Ann Shamis joined Paytime Integrated Payroll Solutions in 1981 as a founder and president of the payroll company, she didn’t realize she was making a move that would add up to be her final one in business. Now, 31 years later, Mrs. Shamis is chief financial officer of the Solon company, having stepped aside as president 15 years ago to have more time to volunteer and enjoy life outside of the office. “I never stepped away from the company totally,” Mrs. Shamis said. “I stepped away from the day to day.” She remains deeply involved in the company, involved in expensecutting efforts, marketing initiatives and as a leadership adviser. Mrs. Shamis helped launch Paytime after moving back to Northeast Ohio from Atlanta because of her husband’s job. Local connections asked Mrs. Shamis, who had a background in public accounting, to help them transition their ledger company into a payroll one. “I liked the fact of having my own company, the flexibility and freedom,” Mrs. Shamis said. “Thirty years later, I can’t believe I’m still here to talk about it.” Mrs. Shamis took the reins of Paytime and managed to grow the fledgling company into the 33-person firm it is today, all while raising
The stone waterfall at the Yagga tree in the zoo’s Australian Adventure area provides a backdrop for Mrs. Shamis. her two now-grown children. “It presented a good challenge,” Mrs. Shamis said. Paytime now serves clients in 48 states and offers integrated employer services — payroll processing, remote payroll management, Internet payroll management, direct deposit, new hire reporting and time clock integration, among others. It still operates in one location but has grown its geographic service footprint as its clients have expanded across the United States.
Robert Gialamas, president of Paytime, characterized Mrs. Shamis as “purposeful in action” and “commanding yet humble.” “Her determination is a great example for many women,” he said. Mrs. Shamis was named one of the Top Ten Women Business Owners in 2009 by the National Association of Women Business Owners and Paytime, under her guidance, was named to the Weatherhead 100 in 2009 and 2010. Mr. Gialamas said Mrs. Shamis
sets high expectations for herself and her staff but also cares about the staff and clients, with whom she develops strong relationships. “It’s a big family,” Mrs. Shamis said. “We’ve always treated people the way we want to be treated. I don’t consider that they work for me; we work together.” Confident in the success of her business, Mrs. Shamis took a step away from the daily operations and in 1997 became CFO, giving her the free time she wanted to become more involved in philanthropy. “I’d always been in business and everything was hardcore business,” Mrs. Shamis said. “I just felt like I wanted to give back a little bit.” She dedicated her time to the Alzheimer’s Association — a few family members of hers have struggled with the disease — and to Breakthrough Schools, a public charter school system in Cleveland. “I like to be involved with things I have a passion for or have a connection to,” Mrs. Shamis said. — Ginger Christ
(1979) and Boston University School of Law (1982), Ms. Read joined Thompson Hine LLP in 1986 as a tax lawyer, but has spent most of her career practicing nonprofit transactional work. “It’s very fulfilling,” she said. “You are helping organizations do great things every day.” As managing partner, Ms. Read now oversees the operations of all of Thompson Hine, which counts seven offices and more than 750 employees, including 360 attorneys. A decade of serving on the firm’s executive committee helped prepare her, “but it is different when the buck stops with you,” she said. “At the end of my term, I would like Thompson Hine to be a stronger, more diverse firm with a larger geographic reach,” she said. A native of Greensburg, Pa., east of Pittsburgh, Ms. Read hails from a family that worked hard, she said. Her parents — Dolores, 93, and her late father, Andrew — always stressed remembering those less fortunate than you, she added. Ms. Read has been a longtime United Way volunteer, serves on the PlayhouseSquare Foundation board and recently joined the boards of Greater Cleveland Partnership and Business Volunteers Unlimited. Both Mr. Richard and Sandy Pianalto, president of the Federal Reserve Bank of Cleveland, say Ms. Read invests a great deal of time and thought into her clients and friends. “She’s a friend who is there whenever you need her, no matter how busy she is,” said Ms. Pianalto, who met Ms. Read in 1995 when both were on the United Way of Greater Cleveland board. “She gives excellent, sound advice. Importantly, she tells you what you need to hear, not necessarily what you want to hear.” Ms. Read and her husband, John, who’s also an attorney, live in Shaker Heights. Their daughter, Lucie, is a college junior. Ms. Read enjoys collecting old things, such as her antique French pastry table, and fine art. She often reads art magazines, too. “There’s something about looking at art that lets you get away from everything else,” Ms. Read said. When she finds the time, she loves to hike in the desert, too. — Michelle Park
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CRAIN’S CLEVELAND BUSINESS
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Ali Whitley President Akron Area Board of Realtors
I
t took Ali Whitley less than a month to sell her first home after becoming a licensed real estate agent in 1997 at age 25 — a somewhat young age to jump into the business. Fifteen years and more than 100 sales later, Ms. Whitley still remembers that first house and, perhaps more vividly, the nerves that went along with that first sale. Now 40 years old, a mother of three, a real estate agent at Cutler Real Estate in Fairlawn and president of the Akron Area Board of Realtors, a 1,400-member organization, Ms. Whitley admits she’s come a long way since that first sale. “Over the years, I’ve learned to calm down and look at things more objectively and not be so anxious,� she said. “A sale is still exciting, but you can’t hold onto it. You have to be able to start up fresh the next day. I’ve definitely learned to do that.� Having grown up working in family-owned eateries — the former E.J. Hamad’s restaurants in Akron — and managing retail stores after graduating college, Ms. Whitley said she always had a knack for dealing with customers. Those skills, coupled with the prospect of working on her own terms, are what drew her to a career in real estate in the first place.
“I see people who are frazzled because it’s been a tough market. ... Ali just looks like that swan floating on the lake, but you know she’s paddling like crazy underneath.� – Karyn Pumphrey, sales manager, Cutler Real Estate Aside from selling homes, Ms. Whitley said an equally important part of her work is lobbying local, state and federal officials on behalf of those in her industry. In her role as president of the Akron Area Board of Realtors, Ms. Whitley serves as the spokeswoman for the organization and works with lawmakers on legislation that might affect her industry. “It is absolutely important to help buyers and sellers with the most important purchase or sale of their life or career, but I feel like it’s also important for me to better the profession we’re in,� Ms. Whitley said. Beyond her work in the legislative arena and her day-to-day duties of moving property, Ms. Whitley also teaches aspiring real estate agents through the Ohio Institute of Real Estate Studies, which offers prelicensing courses for salespeople and brokers. Such work is just another way to give back to an industry that has given her the life she always wanted to lead, she added. It’s easy to see why Ms. Whitley’s a successful saleswoman, according to Karyn Pumphrey, the sales manager at Cutler Real Estate. She characterized Ms. Whitley as charismatic and an “absolute joy to be around.� However, Ms. Pumphrey said most importantly she’s a diligent worker who’s committed to her customers. “A lot of times in this business, I see people who are frazzled because
it’s been a tough market over the last few years, and there’s been a lot more stress than normal,� Ms. Pumphrey said. “But Ali just looks like that swan floating on the lake, but you know she’s paddling like crazy underneath.� Ms. Whitley said balancing her work and family life has been the most challenging part of her career, but she feels as though she’s been able to handle it well thus far. “When you first start, you want to work all the time. You want to work 12 hours a day and help anyone that calls you,� Ms. Whitley said. “It’s wonderful to be able to do that, but you have to be able to balance that and take some time for yourself.� — Timothy Magaw
Ms. Whitley enjoys a recent sunny afternoon at the zoo in front of Aurora, the zoo’s polar bear. Known for their excellent swimming abilities, polar bears often are found miles out at sea.
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100 LARGEST NORTHEAST OHIO EMPLOYERS RANKED BY FULL-TIME EQUIVALENT LOCAL EMPLOYEES(1)
Rank
Company Address Phone/Website
Full-time equivalent local employees 6/30/2012
6/30/2011
% change
Total number of employees in Ohio Type of business
Top local executive Title
1
Cleveland Clinic 9500 Euclid Ave., Cleveland 44195 (216) 444-2200/www.clevelandclinic.org
33,000
34,000
(2.9%)
33,000
Health care provider
Delos M. "Toby" Cosgrove, M.D. president, CEO
2
University Hospitals(2) 11100 Euclid Ave., Cleveland 44106 (216) 844-1000/www.uhhospitals.org
15,123
13,726
10.2%
15,123
Nationally recognized, integrated health care system comprised of hospitals and outpatient health centers
Thomas F. Zenty III CEO
3
U.S. Office of Personnel Management 1900 E St., NW, Washington 20415 (202) 606-1800/www.opm.gov
14,839
15,095
(1.7%)
50,409
Federal government
C. Frank Figliuzzi chair, Cleveland Federal Executive Board
4
Giant Eagle Inc. 5300 Richmond Road, Bedford Heights 44146 (216) 292-7000/www.gianteagle.com
10,398
10,311
0.8%
NA
Grocery store chain
Bill Artman vice president, Cleveland operating division
5
Progressive Corp. 6300 Wilson Mills Road, Mayfield Village 44143 (440) 461-5000/www.progressive.com
8,766
8,612
1.8%
8,766
Insurance and financial company
Glenn M. Renwick president, CEO
6
State of Ohio 30 E. Broad St., Columbus 43215 (614) 466-2000/www.ohio.gov
7,768
7,789
(0.3%)
54,681
State government
John R. Kasich governor
7
Cuyahoga County 1219 Ontario St., Cleveland 44113 (216) 443-7220/www.cuyahogacounty.us
7,709
7,859
(1.9%)
7,709
County government
Edward FitzGerald county executive
8
U.S. Postal Service 2200 Orange Ave., Cleveland 44101 (800) 275-8777/www.usps.com
7,565
7,362
2.8%
NA
U.S. postal service
Todd Hawkins district manager, Northern Ohio District
9
Group Management Services Inc. 3296 Columbia Road, Suite 101, Richfield 44286 (330) 659-0100/www.groupmgmt.com
7,403
7,242
2.2%
11,206
Professional employer organization
Michael Kahoe president
10
City of Cleveland 601 Lakeside Ave., Cleveland 44114 (216) 664-2406/www.city.cleveland.oh.us
7,061
7,089
(0.4%)
7,061
Municipal government
Frank G. Jackson mayor
11
General Motors Co. P.O. Box 33170, Detroit 48232-5170 (313) 556-5000/www.gm.com
7,000
5,975
17.2%
9,000
Automotive manufacturing
Robert Parcell, plant manager, Lordstown; Al McLaughlin, plant manager, Parma
12
Cleveland Metropolitan School District 1380 E. Sixth St., Cleveland 44114 (216) 574-8000/www.cmsdnet.net
6,246
7,074
(11.7%)
6,246
Education
Eric S. Gordon CEO
13
KeyCorp 127 Public Square, Cleveland 44114 (216) 689-6300/www.key.com
5,983
5,827
2.7%
7,166
Bank holding company
Beth E. Mooney chairman, CEO, KeyCorp
14
FirstEnergy Corp. 76 S. Main St., Akron 44308 (800) 736-3402/www.firstenergycorp.com
5,349
5,465
(2.1%)
16,982
Electric utility holding company
Anthony J. Alexander president, CEO
15
MetroHealth System 2500 MetroHealth Drive, Cleveland 44109 (216) 778-7800/www.metrohealth.org
5,238
5,558
(5.7%)
5,238
Health care provider
Mark J. Moran president, CEO
16
Kent State University P.O. Box 5190, Kent 44242 (330) 672-3000/www.kent.edu
5,085
5,040
0.9%
5,441
Higher education
Lester A. Lefton president
17
Case Western Reserve University 10900 Euclid Ave., Cleveland 44106 (216) 368-2000/www.case.edu
4,636
4,620
0.3%
4,636
Higher education
Barbara R. Snyder president
18
The Timken Co. 1835 Dueber Ave., S.W., Canton 44706 (330) 438-3000/www.timken.com
4,140
4,099
1.0%
4,663
Friction management and power transmission products and services
James W. Griffith president, CEO
19
Akron General Health System 400 Wabash Ave., Akron 44307 (330) 344-6000/www.akrongeneral.org
3,972
4,002
(0.7%)
3,972
Integrated health care delivery system
Thomas L. Stover, M.D. president, CEO
20
Swagelok Co. 29500 Solon Road, Solon 44139 (440) 248-4600/www.swagelok.com
3,686
3,600
2.4%
3,686
Designer and manufacturer of industrial fluid Arthur F. Anton system components president, CEO
21
Akron Children's Hospital One Perkins Square, Akron 44308 (330) 543-1000/www.akronchildrens.org
3,621
3,452
4.9%
3,621
Pediatric health system
William H. Considine president, CEO
22
Aultman Health Foundation 2600 Sixth St. SW, Canton 44710 (330) 452-9911/www.aultman.org
3,512
3,891
(9.7%)
3,512
Health care
Edward J. Roth III president, CEO
23
Summit County 175 S. Main St., Akron 44308 (330) 643-2500/www.co.summit.oh.us
3,357
3,665
(8.4%)
3,357
County government
Russell M. Pry county executive
24
Ford Motor Co. One American Road, Dearborn 48126 (800) 392-3673/www.ford.com
3,282
3,550
(7.5%)
6,900
Automobile manufacturer
NA
25
Sherwin-Williams Co. 101 W. Prospect Ave., Cleveland 44115 (216) 566-2000/www.sherwin-williams.com
3,137
3,035
3.4%
3,801
Coatings and related products
Christopher M. Connor chairman, CEO
26
Akron Public Schools 70 N. Broadway, Akron 44308 (330) 761-1661/www.akronschools.com
3,118
2,994
4.1%
3,118
Public school district
David W. James superintendent
27
Goodyear Tire & Rubber Co. 1144 E. Market St., Akron 44316 (330) 796-2121/www.goodyear.com
3,000
3,000
0.0%
NA
Tire manufacturer
Richard J. Kramer chairman, president, CEO
28
Lincoln Electric Co. 22801 St. Clair Ave., Cleveland 44117 (216) 481-8100/www.lincolnelectric.com
2,706
2,600
4.1%
2,711
Designer, developer and manufacturer of arc welding products
John M. Stropki, chairman, president, CEO; George D. Blankenship, sr. vice president, president, Lincoln Electric North America
29
Sterling Jewelers Inc.(3) 375 Ghent Road, Akron 44333 (330) 668-5000/www.sterlingjewelers.com
2,679
NA
NA
3,343
Retail jewelry
Mark Light president, CEO
30
InfoCision Management Corp. 325 Springside Drive, Akron 44333 (330) 668-1400/www.infocision.com
2,660
2,400
10.8%
3,340
Inbound and outbound call center provider
Carl Albright president, CEO
31
University of Akron 302 Buchtel Common, Akron 44325 (330) 972-7111/www.uakron.edu
2,627
2,591
1.4%
2,627
Higher education
Luis M. Proenza president
20120723-NEWS--25-NAT-CCI-CL_--
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9:29 AM
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JULY 23 - 29, 2012
Rank
Company Address Phone/Website
32
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time equivalent local employees
Total number of employees in Ohio Type of business
25
Top local executive Title
6/30/2012
6/30/2011
% change
Cuyahoga Community College 700 Carnegie Ave., Cleveland 44115 (800) 954-8742/www.tri-c.edu
2,342
2,210
6.0%
2,342
Higher education
Jerry Sue Thornton president
33
Greater Cleveland Regional Transit Authority 1240 W. Sixth St., Cleveland 44113 (216) 566-5100/www.riderta.com
2,307
2,232
3.4%
2,307
Public transportation
Joseph A. Calabrese CEO, general manager, secretary/ treasurer
34
Parker Hannifin Corp. 6035 Parkland Blvd., Cleveland 44124 (216) 896-3000/www.parker.com
2,282
2,265
0.8%
3,587
Fluid power systems, electromechanical controls
Donald E. Washkewicz chairman, CEO, president
35
Lake Health 7590 Auburn Road, Concord Township 44077 (440) 375-8100/www.lakehealth.org
2,217
2,094
5.9%
2,217
Hospital
Cynthia Moore-Hardy president, CEO
36
Babcock & Wilcox Co. 20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203 (330) 753-4511/www.babcock.com
2,192
2,174
0.8%
2,521
Engineering, manufacturing and construction services for nuclear, renewable, fossil power and industrial customers
J. Randall Data, president, COO, Babcock & Wilcox Power Generation Group Inc.
37
Time Warner Cable 530 S. Main St., Suite 1751, Akron 44311 (330) 572-4020/www.timewarnercable.com
2,164
2,310
(6.3%)
6,751
Time Warner Cable is all about connecting people and businesses with information, entertainment and each other.
John H. Higgins Jr. area vice president of operations
38
Huntington National Bank 200 Public Square, Cleveland 44114 (800) 480-2265/www.huntington.com
2,122
2,012
5.5%
8,348
Financial services
Daniel P. Walsh Jr. president, Greater Cleveland region
39
Lubrizol Corp. 29400 Lakeland Blvd., Wickliffe 44092 (440) 943-4200/www.lubrizol.com
2,082
2,041
2.0%
2,140
Specialty chemical company
James L. Hambrick chairman, president, CEO
40
Diebold Inc. 5995 Mayfair Road, North Canton 44720 (330) 490-4000/www.diebold.com
2,074
1,860
11.5%
2,145
Integrated self-service delivery systems and Thomas W. Swidarski services president, CEO
41
American Greetings Corp. One American Road, Cleveland 44144 (216) 252-7300/www.americangreetings.com
2,050
2,061
(0.5%)
2,050
Greeting cards; character licensing
Zev Weiss CEO
41
ArcelorMittal 3060 Eggers Ave., Cleveland 44105 (216) 429-6000/www.arcelormittal.com
2,050
1,916
7.0%
2,810
Steel manufacturer
Eric Hauge vice president, general manager, ArcelorMittal Cleveland
43
J. C. Penney Co.(4) 7900 Day Drive, Parma 44129 (440) 845-4802/www.jcpenney.com
2,047
2,265
(9.6%)
NA
Department store
Travis Julian district leader
44
JPMorgan Chase & Co. 1300 E. Ninth St., Cleveland 44114 (877) 302-4273 /www.chase.com
1,968
1,750
12.5%
23,174
Financial services
James R. Geuther, regional president and head, commercial banking business, NE Ohio
45
Continental Airlines 5300 Riverside Drive, Cleveland 44135 (216) 501-5170/www.continental.com
1,954
2,008
(2.7%)
1,954
Airline
Rich Lisser managing director
46
Medical Mutual of Ohio 2060 E. Ninth St., Cleveland 44115 (216) 687-7000/www.medmutual.com
1,950
1,950
0.0%
2,600
Cleveland-based mutual company providing health and life insurance, dental, vision products and TPA services
Rick A. Chiricosta president, CEO
47
Nestle USA in Solon (includes Nestle Prepared Foods and Baking) 30003 Bainbridge Road, Solon 44139 (440) 349-5757/www.nestleusa.com
1,917
1,947
(1.5%)
2,579
Manufacturer of Stouffer's and Lean Cuisine Frank Higgins prepared foods, Buitoni pasta and sauce, president, CEO, Hot Pockets and Lean Pockets Nestle Prepared Foods
48
Mercy Medical Center 1320 Mercy Drive N.W., Canton 44708 (330) 489-1000/www.cantonmercy.org
1,892
1,890
0.1%
1,892
Health care provider
Thomas E. Cecconi president, CEO
49
Eaton Corp. 1111 Superior Ave., Cleveland 44114 (216) 523-5000/www.eaton.com
1,863
1,833
1.6%
3,185
Electrical, hydraulic, aerospace, truck and automotive products
Alexander M. Cutler chairman, CEO, president
50
Lorain County 226 Middle Ave., Elyria 44035 (440) 329-5000/www.loraincounty.us
1,795
1,902
(5.6%)
1,795
County government
Board of Commissioners
51
Republic Steel 2633 Eighth St., NE, Canton 44704 (800) 232-7157/www.republicsteel.com
1,784
1,504
18.6%
1,784
Manufacturer of special bar quality steel
Jaime Vigil president, CEO
52
Kaiser Permanente of Ohio 1001 Lakeside Ave., Suite 1200, Cleveland 44114 (800) 524-7371/www.kp.org
1,770
1,753
1.0%
1,770
Health care provider and insurance company
Patricia D. Kennedy-Scott regional president
53
Southwest General 18697 Bagley Road, Middleburg Heights 44130 (440) 816-8000/www.swgeneral.com
1,750
1,805
(3.0%)
1,750
Private, not-for-profit 354-bed top 100 hospital with a 90-year history
Thomas A. Selden president, CEO
54
City of Akron 166 S. High St., Akron 44308 (330) 375-2330/www.akronohio.gov
1,736
1,788
(2.9%)
1,736
Municipal government
Donald L. Plusquellic mayor
55
Avery Dennison 8080 Norton Parkway, Mentor 44060 (440) 534-6000/www.averydennison.com
1,685
1,585
6.3%
2,315
Manufacturer of pressure sensitive paper, Donald A. Nolan film and foil, graphic materials and specialty president, tapes Label & Packaging Materials
56
Mercy 3700 Kolbe Road, Lorain 44053 (440) 960-4000/www.mercyonline.org
1,638
1,605
2.1%
1,638
Health care provider
Edwin M. Oley president, CEO
57
Discount Drug Mart Inc. 211 Commerce Drive, Medina 44256 (330) 725-2340/www.discount-drugmart.com
1,592
1,553
2.5%
2,400
Retail drugstore
Parviz Boodjeh chairman
58
Parma City School District 5311 Longwood Ave., Parma 44134 (440) 842-5300/www.parmacityschools.org
1,517
1,584
(4.2%)
1,517
Public school system
Jeffrey Graham superintendent
59
Fred W. Albrecht Grocery Co. 2700 Gilchrist Road, Akron 44305 (330) 733-2263/www.acmestores.com
1,515
1,477
2.6%
1,515
Retail grocery and pharmacy stores
Steve Albrecht president
60
Jo-Ann Stores Inc. 5555 Darrow Road, Hudson 44236 (330) 656-2600/www.joann.com
1,509
1,466
2.9%
2,012
Fabric and craft retailer
Darrell Webb chairman
61
Westfield Insurance One Park Circle, Westfield Center 44251 (330) 887-0101/www.westfieldgrp.com
1,501
1,418
5.9%
1,655
Insurance, banking and related financial services
James Clay chairman, CEO; Westfield Group Leader
62
J.M. Smucker Co.(5) One Strawberry Lane, Orrville 44667 (330) 682-3000/www.smuckers.com
1,500
NA
NA
NA
Fruit spreads, retail packaged coffee, peanut butter, shortening and oils
Richard K. Smucker CEO
63
Cleveland State University 2121 Euclid Ave., Cleveland 44115 (216) 687-2000/www.csuohio.edu
1,494
1,575
(5.1%)
1,494
Higher education
Ronald M. Berkman president
64
Mahoning County 21 W. Boardman St., Suite 200, Youngstown 44503 (330) 740-2130/www.mahoningcountyoh.gov
1,487
1,482
0.3%
1,487
Local government
Board of Commissioners
See LIST Page 26
20120723-NEWS--26-NAT-CCI-CL_--
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7/20/2012
9:21 AM
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JULY 23 - 29, 2012
100 LARGEST NORTHEAST OHIO EMPLOYERS RANKED BY FULL-TIME EQUIVALENT LOCAL EMPLOYEES(1)
Rank
Company Address Phone/Website
65
Full-time equivalent local employees
Total number of employees in Ohio Type of business
Top local executive Title
6/30/2012
6/30/2011
% change
EMH Healthcare 630 E. River St., Elyria 44035 (440) 329-7500/www.emh-healthcare.org
1,481
1,473
0.5%
1,481
Health care provider
Donald Sheldon, MD president, CEO
66
Parma Community General Hospital 7007 Powers Blvd., Parma 44129 (440) 743-3000/www.parmahospital.org
1,471
1,461
0.7%
1,471
Hospital
Terrence G. Deis president, CEO
67
Lake County 105 Main St., Painesville 44077 (440) 350-2745/www.lakecountyohio.org
1,456
1,581
(7.9%)
1,456
County government
Board of Commissioners
68
Dominion East Ohio 1201 E. 55th St., Cleveland 44103 (800) 362-7557/www.dom.com
1,425
1,402
1.6%
1,576
Natural gas distribution
Anne E. Bomar senior vice president, general manager
69
Alcoa 1600 Harvard Ave., Cleveland 44105 (216) 641-3600/www.alcoa.com
1,353
1,245
8.7%
1,010
Aluminum forgings for aerospace, automotive and commercial transportation markets
Eric Roegner, president, Alcoa Forgings and Extrusions and Defense; Tim Myers, president, Alcoa Wheel and Transportation Products
70
Scott Fetzer Co. 28800 Clemens Road, Westlake 44145 (440) 892-3000/www.berkshirehathaway.com
1,313
1,238
6.1%
1,683
Diversified manufacturer
Kenneth J. Semelsberger chairman
71
Invacare Corp. One Invacare Way, Elyria 44035 (440) 329-6000/www.invacare.com
1,297
1,369
(5.3%)
1,301
Home health care equipment
Gerald B. Blouch president, CEO
72
Ernst & Young LLP 925 Euclid Ave., Suite 1300, Cleveland 44115 (216) 861-5000/www.ey.com
1,257
1,195
5.2%
1,798
Assurance, advisory, tax and transaction advisory services
C. Lee Thomas, managing partner, Cleveland; Edward T. Eliopoulos, managing partner, Akron
73
Cuyahoga County Board of Developmental Disabilities 1275 Lakeside Ave. East, Cleveland 44114 (216) 241-8230/www.cuyahogabdd.org
1,172
1,187
(1.3%)
1,172
Vocational, residential, educational and therapeutic support services for children and adults with developmental disabilities
Terrence M. Ryan superintendent
74
Oberlin College 101 N. Professor St., Oberlin 44074 (440) 775-8400/www.oberlin.edu
1,166
1,078
8.2%
1,165
Higher education
Marvin Krislov president
75
Philips Healthcare 595 Miner Road, Highland Heights 44143 (440) 483-3000/www.philips.com/healthcare
1,132
1,250
(9.4%)
1,132
Manufacturer of medical diagnostic equipment
Gene Saragnese executive vice president; CEO, Imaging Systems
76
Rockwell Automation Inc.(6) 1 Allen-Bradley Drive, Mayfield Heights 44124 (440) 646-5000/www.rockwellautomation.com
1,116
1,561
(28.5%)
2,029
Global provider of industrial automation control and information solutions
Steven A. Eisenbrown senior vice president, architecture and software
77
Delphi Packard Electrical/Electronic Architecture 5725 Delphi Drive, Troy 48098 (248) 813-2000/www.delphi.com
1,110
1,109
0.1%
1,110
Global supplier of electronics and technologies for automotive, commercial vehicle and other market segments
James E. Riedy vice president, finance, Delphi Packard Electrical/Electronic Architecture
78
GE Lighting (unit of GE Home & Business Solutions) 1975 Noble Road, East Cleveland 44112 (216) 266-2222/www.gelighting.com
1,095
1,035
5.8%
3,586
A global manufacturer and marketer of lighting products
Maryrose T. Sylvester president, CEO, GE Lighting
78
Robinson Memorial Hospital 6847 N. Chestnut St., Ravenna 44266 (330) 297-0811/www.robinsonmemorial.org
1,095
1,098
(0.3%)
1,095
150-staffed-bed hospital
Stephen Colecchi president, CEO
80
Hyland Software Inc. 28500 Clemens Road, Westlake 44145 (440) 788-5000/www.hyland.com
1,066
969
10.0%
1,073
Independent software vendor; developer of A.J. Hyland the OnBase enterprise content management president, CEO software suite
81
Medina County 144 N. Broadway St., Medina 44256 (330) 723-3641/www.co.medina.oh.us
1,047
1,041
0.6%
1,047
County government
Board of Commissioners
82
Pepsi Beverages Co. 1999 Enterprise Parkway, Twinsburg 44087 (330) 963-5300/NA
1,041
1,049
(0.8%)
2,200
Manufacturer, seller and distributor of PepsiCo beverages
Dan Hungerman vice president
83
Dave's Supermarkets 5300 Richmond Road, Bedford Heights 44146 (216) 763-3200/www.davesmarkets.com
1,010
991
1.9%
1,010
Supermarkets
Daniel Saltzman president
84
Shearer's Foods Inc. 692 Wabash Ave. N., Brewster 44613 (330) 767-3426/www.shearers.com
1,005
NA
NA
1,020
Manufacturer of snack foods
Bob Shearer CEO
85
Safeguard Properties LLC 7887 Safeguard Circle, Valley View 44125 (216) 739-2900/www.safeguardproperties.com
985
860
14.5%
910
Inspection and maintenance of defaulted and foreclosed properties nationally
Alan Jaffa CEO
86
Portage County 449 S. Meridian St., Ravenna 44266 (330) 297-3600/www.co.portage.oh.us
983
989
(0.6%)
983
County government
Board of Commissioners
87
Ohio Savings Bank, A Division of New York Community Bank 1801 E. Ninth St., Cleveland 44114 (216) 588-4100/www.amtrust.com
982
1,033
(4.9%)
982
Financial institution/bank
Jon Baymiller president, CEO, NYCB Mortgage Co. LLC
88
Cleveland Heights-University Heights City School District 2155 Miramar Blvd., University Heights 44118 (216) 371-7171/www.chuh.org
963
908
6.1%
963
Public school district
Douglas G. Heuer superintendent
89
Mentor Public Schools 6451 Center St., Mentor 44060 (440) 255-4444/www.mentorschools.net
961
987
(2.6%)
961
Public school district
Matthew Miller superintendent
90
Willoughby-Eastlake City Schools 37047 Ridge Road, Willoughby 44094 (440) 956-5000/www.weschools.org
940
942
(0.2%)
940
Public school district
Stephen Thompson superintendent
91
Geauga County 470 Center St., Chardon 44024 (440) 285-2222/www.co.geauga.oh.us
938
1,055
(11.1%)
938
County government
Board of Commissioners
92
Saint Gobain Corp. 750 E. Swedesford Road, Valley Forge 19482 (610) 341-7000/www.saint-gobain-corporation.com
933
904
3.2%
1,005
Construction products, high-performance materials, glass containers
John Crowe president, CEO
93
Ohio CAT 3993 E. Royalton Road, Broadview Heights 44147 (440) 526-6200/www.ohiocat.com
916
775
18.2%
NA
Caterpillar engine and equipment distributor Kenneth E. Taylor in Ohio, Northern Kentucky and president Southeastern Indiana
94
PolyOne Corp. 33587 Walker Road, Avon Lake 44012 (440) 930-1000/www.polyone.com
904
760
18.9%
940
Provider of specialized polymer materials, services and solutions
Stephen D. Newlin chairman, president, CEO
20120723-NEWS--27-NAT-CCI-CL_--
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3:25 PM
Page 1
JULY 23 - 29, 2012
Rank
Company Address Phone/Website
95
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time equivalent local employees
Total number of employees in Ohio Type of business
6/30/2012
6/30/2011
% change
RPM International Inc. 2628 Pearl Road, Medina 44258 (330) 273-5090/www.rpminc.com
877
825
6.3%
1,031
96
St. Vincent Charity Medical Center 2351 E. 22nd St., Cleveland 44115 (216) 861-6200/www.stvincentcharity.com
869
844
2.9%
97
Menorah Park Center for Senior Living 27100 Cedar Road, Beachwood 44122 (216) 831-6500/www.menorahpark.org
841
854
98
Federal Reserve Bank of Cleveland 1455 E. Sixth St., Cleveland 44114 (216) 579-2000/www.clevelandfed.org
826
99
Myers Industries Inc. 1293 S. Main St., Akron 44301 (330) 253-5592/www.myersindustries.com Edgepark Medical Supplies 1810 Summit Commerce Park, Twinsburg 44087 (330) 963-6996/www.edgepark.com
100
Top local executive Title
Specialty coatings for industrial and consumer markets
Frank C. Sullivan chairman, CEO
869
Health care provider
David F. Perse, MD president, CEO
(1.5%)
841
Full continuum of care for seniors including residential and community services
Steven Raichilson executive director
847
(2.5%)
959
U.S. central bank
Sandra Pianalto president, CEO
798
849
(6.0%)
851
Polymer and metal products; equipment for John C. Orr tire service president, CEO
794
748
6.1%
794
Mail order provider of specialty medical supplies
Source: PNC and Steris Corp do not report local employees. 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. (1) Employees working in Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties. Number of employees in Ohio may include full-time and part-time employees, not FTEs. (2) The 2012 employee numbers include St. John Medical Center. UH is the operating manager of St. John Medical Center. (3) Employee numbers are from the 2011 100 Largest Employers list. (4) Employee number includes full-time and part-time employees. (5) Employee number from The Daily Record, Feb. 23, 2012. (6) Employee numbers as of March 31, 2012.
27
Michael B. Petras Jr. CEO
RESEARCHED BY Deborah W. Hillyer
Neuro: Methods could fill gaps in current treatment processes continued from PAGE 1
Even so, there are relatively few neurostimulation products on the market today, said Geoff Thrope, CEO of NDI Medical LLC, a Highland Hills company that plays a big role in the business locally. Thus, there’s an opportunity for Northeast Ohio to create products and startups to sell to those bigger companies, said Mr. Thrope, who believes there’s room for more stand-alone companies, too. “The opportunity at large is enormous, and it’s untapped,” he said. NDI hit it big in 2008 when the company sold a spinout called MedStim to medical device giant Medtronic Inc. of Minneapolis for $42 million. MedStim was created to commercialize NDI’s first product, an electrical stimulator designed to help people who have trouble controlling their bladders. Since then, NDI has created two other startups and sees itself as a vehicle for launching more. NDI even formed a venture capital fund to invest in those businesses and other neurostimulation startups. Another local company, Intelect Medical Inc. of Cleveland, had a big payday, too. The Cleveland Clinic spinout, which developed software and leads for neurostimulation procedures, in early 2011 was acquired by Boston Scientific Corp. of Natick, Mass., for $60 million, or $78 million if you count Boston Scientific’s previous stake in the company. Intelect had benefited from a $7.5 million grant the Clinic received from the Ohio Third Frontier eco-
nomic development program, but the company moved to Boston just before the acquisition was announced. However, the deal did generate wealth for the Clinic and other shareholders, though some have left the region.
Plenty to go around Other local neurostimulation companies have logged successes. ■ Last week, Neuros Medical Inc. of Willoughby closed on a $3.5 million investment led by Boston Scientific, a strategic investor, and Glengary LLC of Beachwood. Neuros Medical CEO Jon Snyder wouldn’t say how the Boston Scientific partnership might affect his company, which is testing and developing an electrical stimulation system designed to treat chronic pain. ■ Synapse Biomedical Inc. of Oberlin last fall received approval from federal regulators to start marketing its main product, which stimulates the diaphragm to help patients breathe, for use in people with Lou Gehrig’s disease, a degenerative muscle condition that technically is called amyotrophic lateral sclerosis, or ALS. Synapse last month received a 50%, seven-year job creation tax credit from the state that’s intended to help the company eventually add 60 people. ■ Nervomatrix, an Israeli company that has developed a system designed to pinpoint the source of lower back pain and treat it with electricity, last fall announced that it had raised $3.5 million in venture capital from Everett Partners Ltd. of Akron. Since then, the company
has hired a manager in Akron tasked with helping the company establish a U.S. presence.
On the Case Nervomatrix grew out of an Israeli incubator financed in part by the city of Akron, Summit County and several private investors. However, most local neurostimulation companies — including Neuros Medical, Synapse Biomedical, NDI and its spinoffs — in some way are tied to technologies or ideas created at Case Western Reserve University and local hospitals. A lot of the region’s successes in neurostimulation can be traced back to the university, Neuros Medical’s Mr. Snyder said. “There’s really a key point where all this leads to, and that’s Case Western,” he said. The university has been studying the practice of neurostimulation for several decades and has built a national reputation in the field, according to Nancy Garcia, public education and website manager for the International Neuromodulation Society in San Francisco. Many of the society’s leaders spent parts of their early careers in Cleveland or collaborated with researchers in the region, she said. In the 1960s, a University Hospitals neurosurgeon working with CWRU researchers became the first doctor to implant an electrode into a patient that stimulated the spine to treat pain. Those researchers — who used to run tests by implanting electrodes into their own bodies — later would develop a system that
Bravo: Timing off in construction plan continued from PAGE 3
of growth,” Mr. Pshock said, than the 300% the company had witnessed annually since its founding. He would not disclose revenue figures. Because of its ongoing growth, Bravo plans to fill 17 open positions by year’s end, according to Mr. Pshock, and the new space is expected to accommodate a total of 136
employees once renovations are complete. The company has hired employees from as far south as Wooster and as far east as Painesville, and Mr. Pshock said the move to a more centralized location will shorten the commute for a bulk of its work force. The hope, Mr. Pshock said, is the space can handle the firm’s growth
through at least 2013 before more space was needed.
‘No animosity’ from Avon Mr. Pshock said the move wasn’t due to Avon’s inability to offer financial incentives to stay within the city’s borders, but rather to the company’s concern about whether the building it was planning was
Dr. Peckham said there is a “huge explosion” of neurostimulation products under development now, partly because of better medical device hardware and because scientists are figuring out where they
should apply electricity to treat various problems. Demand is a big driver, too, Dr. Peckham said, noting that neurostimulation products are under development to treat migraines, obesity and other conditions that aren’t easy to treat with drugs and other traditional means. “These are large problems that are unresolved by any existing technique,” he said. Besides the established players in the field, such as Medtronic, Boston Scientific and St. Jude Medical Inc. of St. Paul, Minn., other big companies are looking for ways to break into the business as well, Dr. Peckham said. As a result, it will be hard to establish a neurostimulation company of that magnitude in Northeast Ohio, said Joe Jankowski, who is associate vice president of technology management at CWRU. However, the region can build and sell companies to the bigger participants, and there is room to build smaller, stand-alone businesses that might employ a few hundred people, said Dr. Jankowski, who noted that the university is in the process of forming two more neurostimulation companies. Dr. Peckham agreed. He added there’s always the chance a large corporation could buy a local company and use it to create a larger presence in the region. “I believe it’s going to be desirable for … one of these players to set down some roots, because there’s so much activity going on,” he said. ■
the right size. Also, construction of a building was estimated to take more than a year, and would have forced Bravo to sign an additional lease to have room for its new hires. Nonetheless, Bravo was able to secure a handful of incentives by making the move, including a forgivable, three-year loan at 1% interest to renovate its new space. Moreover, the company is eligible for Cleveland’s Citywide Business Grant Program, where companies can receive a grant of up to $50,000
per year for three years, based on the amount of income taxes the business generates for the city. Avon Mayor Jim Smith downplayed his disappointment with Bravo’s decision to move eastward, saying “there’s no animosity” as the company is staying in the area. “We would have been really happy if they stayed in Avon, but if they expand and hire more people from Northern Ohio, then that still makes me happy,” Mayor Smith said. ■
allowed paralyzed people to regain some control of their hands. That technology became the foundation for NeuroControl Corp. Founded in the early 1990s, the company in Valley View went on to raise more than $30 million in venture capital, but eventually failed. NDI’s Mr. Thrope, who held several positions at NeuroControl, said the company’s target market — patients with spinal injuries — was too small. The technology was “too far ahead of its time,” said Hunter Peckham, a biomedical engineering professor at CWRU who in 1991 helped start the Cleveland Functional Electrical Stimulation Center, a research collaboration that consists of CWRU, the Cleveland VA Medical Center and the MetroHealth System. Even so, Dr. Peckham doesn’t consider NeuroControl a failure. For instance, Mr. Thrope isn’t the only former NeuroControl employee who went on to lead a local neurostimulation company. Other NeuroControl alumni are Synapse Biomedical CEO Anthony Ignagni and Maria Bennett, who is CEO of SPR Therapeutics LLC, an NDI spinoff developing an implantable stimulator designed to relieve pain. “There are five or six businesses that have evolved in its wake,” Dr. Peckham said.
Branching out
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VC funding Drivers: Hiring hasn’t kept Summa: System would approaches pace with truck additions seek to maintain control 2001 levels continued from PAGE 3
By MATTHEW FLAMM Crain’s New York Business
The dot-com bubble may not be back, but venture capital funding and dealmaking are nearing levels not seen in more than a decade. In a rebound from a sluggish first quarter, venture-capital funding nationwide spiked 37% to $8.1 billion in the second quarter, which also marked a 5% increase over the same period a year ago. The money flowed to 812 companies, 4% more than in the same period last year. Those numbers made for the biggest quarter for venture capital since 2001, according to the secondquarter 2012 Venture Capital Activity Report, which venture capital database CB Insights just released. Dotcom era funding peaked in 2000. CB Insights tracks deals in a range of categories, including Internet, health care and green technology. In some ways, the second quarter’s spike — and the previous quarter’s lull — are nothing unusual. “If you average out the two quarters, they are very much consistent with what’s been happening historically in VC (investing) over the last several quarters,” said Anand Sanwal, CEO of CB Insights. “Things are back to normal, in some sense.” Mr. Sanwal said he saw no sign of another dot-com bubble. “There is nothing structurally that gives us concern,” he said. “But not everybody is going to make money. That’s the reality of how this ecosystem works.” ■
All Pro last month acquired Buddy’s Express Transport, a trucking company in Elyria certified to handle hazardous materials, and in May bought Blue Chip, a trucking company in Cranberry, N.J. The two acquisitions give All Pro, which had 180 drivers before the transactions, another 20 drivers. And Mr. Haas estimates he could use even more to deal with the company’s year-over-year increase in sales of 18% to 20%. “We’re basically just trying to get our truck count up,” Mr. Haas said. “Freight is up. There certainly is more freight than there are trucks to handle it.” Its two recent acquisitions are the first in roughly 10 years for All Pro. Because of increased shipping demand by industrial customers — namely those that provide consumer goods to big box retailers — and a shortage of truck drivers, All Pro opted to buy its way to growth. And it doesn’t plan to stop. The company is set to close within two weeks on an acquisition of an undisclosed box van company in Lorain County, which would add another 25 drivers to All Pro’s ranks. Mr. Haas said he also is open to buying companies outside northern Ohio. All Pro already operates locations in New Jersey and in Florida and serves the 48 contiguous states and Canada. Bob Costello, chief economist for the American Trucking Association, said All Pro is not the only company to take the acquisition approach. “It is not uncommon for me to hear companies say they have to buy other companies to get enough
drivers,” Mr. Costello said. “The driver shortage is a real thing.” Since the end of the recession, trucking companies have added roughly 20,000 trucks to their fleets to meet increased demand from recovering manufacturers, Mr. Costello said. However, the supply of truck drivers isn’t keeping pace. Mr. Haas attributes the shortage in part to the return of manufacturing jobs in the United States. As the sector rebounds, more would-be truck drivers look to manufacturing jobs, which provide more standard hours and less travel, he said. Mr. Costello characterized the shortage as a complicated issue. In addition to the hours and travel required, the trucking industry struggles to attract potential drivers for a slew of other reasons, he said. Drivers must have a commercial license, which can cost up to $6,000 and typically is paid for, at least initially, by the employee; they must be 21 years old; and they must have clean driving records, especially if they’ve already worked as commercial drivers. Mr. Costello said to entice people to become drivers, many companies are offering sign-on bonuses or are upping wages. He said the average annual wage for a new driver is $40,000 to $45,000. All Pro added 15 drivers with its last acquisition — Buddy’s Express Transport — and established a new Hazmat division to handle the hazardous materials business brought in by the Elyria acquisition. While All Pro had Hazmat drivers prior to the acquisition, specialized driving was never an area on which it focused. ■
continued from PAGE 1
in Toledo all have expressed a desire to extend their footprints.
Clinic sets sights afar The Cleveland Clinic, which is now a roughly a $6 billion operation in terms of annual operating revenue, is no stranger to acquisitions or merger talks. The Clinic, for instance, acquired eight community hospitals in Northeast Ohio in the 1990s and 2000s and late last year bought North Coast Cancer Care in Sandusky. Behind the scenes, it also has had discussions with both Akron General Health System and Summa in recent years about some sort of partnership or merger. This spring, Clinic CEO Dr. Toby Cosgrove told employees during his annual State of the Clinic address the system would need to acquire other health care institutions if it plans to grow. However, the Clinic and Summa appear to be in search of different sorts of arrangements. Summa, for one, said its ideal partner would allow the health system to maintain its independence and local control, which is something — if history is a guide — the Clinic would have little interest in offering. For instance, when the Clinic acquired the then-independent Medina General Hospital in 2009, the big health system installed its own top brass to steer the organization. Also, the Clinic has its sights beyond Northeast Ohio. Dr. Cosgrove told Crain’s in March he has fielded calls from health systems and hospitals across the country looking to merge with or be acquired by the Clinic. Given Northeast Ohio’s slow population growth and the Clinic’s quest to grow larger, Dr. Cosgrove said, “We need to be more thoughtful” about such deals.
As for UH … University Hospitals appears to be a more likely suitor, based on a history of securing limited stakes in hospitals. Also, Summa’s insurance arm, SummaCare, handles the back end of University Hospitals’ employee benefits. However, Mr. Ryan of the Center for Health Affairs said University
Hospitals — an operation with $2.2 billion in annual operating revenue — appears to be shying away from such limited-stake arrangements because “in their minds, those have not been successful.” University Hospitals had been part-owner of both St. Vincent Charity Medical Center in Cleveland and Mercy Medical Center in Canton with the Sisters of Charity Health System. The two systems, however, renegotiated the arrangement in early 2009 and Sisters of Charity regained full ownership of both hospitals, while the two remained partners in the ownership of St. John Medical Center in Westlake. “When I watch it, UH is not any more inclined in the future (to make a deal with Summa) than anybody else,” Mr. Ryan said. “That’s a tough deal to make work.”
Akron General unfazed It’s unclear how any deal Summa may reach would impact the marketplace at large and Akron General Health System, its main rival, in particular. However, Dr. Thomas “Tim” Stover, who stepped in as Akron General’s CEO in February after nearly 20 years with the health system, said he wasn’t concerned about its ability to compete with Summa, even if Summa was to tap a partner. He cited Akron General’s continued success in developing health and wellness centers as well as the already-thriving joint venture it launched last year with Signet Development in Akron to commercialize the health system’s wellness programs. Also, Dr. Stover said Summa’s announcement wasn’t driving Akron General — with about $500 million in annual operating revenue — to put itself on the market for a potential investor, but he noted, “It would not be prudent for me not to look at that” if the opportunity arose. “Honestly, it’s about this whole concept of scale,” Dr. Stover said. “I don’t know how big enough ‘big enough’ is. I think we can compete head to head, not necessarily in size, but I don’t know whether big matters. It’s what you do.” ■
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Waterloo: District heavily dependent upon Beachland’s future continued from PAGE 3
of two properties. One houses Fontina’s, a small lunch and breakfast joint on East 156th Street, but he wouldn’t disclose the other location due to ongoing negotiations. One of Mr. Glazen’s ideas is to transform a property into a club called Vinyl, which would have access to the massive record collection of Terry Stewart, CEO of the Rock and Roll Hall of Fame and Museum. “I’m not a crazy investor,” said Mr. Glazen, who’s responsible for several successful eateries around town, including ABC Tavern in Ohio City and XYZ the Tavern in Gordon Square. “I’m a very practical businessman. I’m not trying to be heroic.” However, the success of the Waterloo area is largely dependent on the survival of the Beachland Ballroom, which has fallen on hard times as the city has pursued the small concert club steered by Cindy Barber as it seeks roughly $400,000 in back admissions taxes, interest and penalties the club owes. “I consider this whole thing a tribute to Cindy and the people around her,” Mr. Glazen said.
over,” the Beachland’s Ms. Barber said. “This has been a struggle. It’s not like we’ve been very strongly capitalized. We’ve been trying to do this on a shoestring budget.” Ms. Barber said talks with the city about resolving the back-tax issue are nonexistent, and a spokeswoman for Cleveland Mayor Frank Jackson said the mayor hasn’t budged on his view that clubs should make good on their back taxes. Still, Cleveland City Councilman Mike Polensek, whose ward includes the Collinwood neighborhood, is optimistic the issue can be resolved considering so much hinges on the survival of the Beachland, which he called the “incubator for other businesses on Waterloo.” The club,
for one, came to life in 2000 and helped lure several other shops to the area, including Music Saves — a beloved record store. “We can extract every dime out of the Beachland, but what about the other businesses?” Mr. Polensek said. “Alan (Glazen) wouldn’t be coming in there if Beachland Ballroom wasn’t there.” Because of the Beachland’s uncertain future, Brian Friedman, executive director of the nonprofit Northeast Shores Development Corp., went as far as advising Mr. Glazen that it might be prudent to wait until the concert club’s issues were resolved before making the investment. However, Mr. Glazen — once again displaying a lack of
patience — hasn’t slowed in his efforts. “I can’t afford to keep it quiet because I need others to join me,” Mr. Glazen said.
Others on the brink Mr. Glazen isn’t the sole investor looking to make a splash in the Collinwood neighborhood, but he’s the first to make public his plans to pump a sizable amount of cash into the area, according to Mr. Polensek. “You need to have believers,” Mr. Polensek said. “You need to have people willing to put money where their mouth is. Now that’s the change.” Other interested parties include some of Cleveland’s most well-known chefs and another big-name developer Mr. Polensek wouldn’t identify.
While Mr. Glazen is eyeing 11 properties, he hopes others would sweep in and buy some of them because, he said, “we need a mass” of people to make the project a success. The hope, Mr. Glazen said, is his “light switch” project would come to life at the conclusion of a $5 million streetscape initiative expected to start next summer that would replace the sidewalks and streets in the area stretching largely from East 152nd to 161st streets. “We hope we can line up enough people to be ready to open literally on the same night,” he said. “We can go from what we know now to full-fledged entertainment district with one flick of a switch.” ■
The biggest hurdle The Beachland became the poster child in a policy battle that pitted club owners against city officials who in recent years aggressively hounded owners of concert venues to make good on their back taxes. The fight catalyzed several small music clubs, which argued that they operate on already-slim budgets due to the nature of the business and should be exempt from the admissions tax law. After months of wrangling, Cleveland City Council this month approved changes to the city’s admissions tax ordinance, which would roll back the admissions tax rate to 4% from 8% for venues that hold fewer than 750 patrons, such as the Beachland, and exempt those that hold 150 or fewer. Still, the legislation offers no relief for the Beachland’s lofty back taxes. “It’s still a complete hurdle to get
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Midtown: Healthline helps Health-Tech Corridor “(Fred Geis) lives (Midtown) and breathes (Midtown); he’s a real asset for the city.”
continued from PAGE 1
Hemingway partner Fred Geis said the three-building complex will be able to offer 24-hour security. Also, tenants in all buildings will have access to the conference center, outdoor wireless, fitness center and other amenities that were installed for the 6700 Euclid building. All phases of the project have received financial support from the city of Cleveland and/or the state of Ohio. Both governments see the complex as the anchor for what is called the Health-Tech Corridor. That concept was created by the administration of former Gov. Ted Strickland, which kicked off what he called a public-private partnership in 2010 to attract young biomedical and technical companies to Midtown, the district between University Circle and downtown Cleveland. Judging from the rapid expansion, the strategy appears to be working.
On the grow Hemingway bought the six-acre property at 6700 Euclid in 2008 and began construction of the $20 mil-
– Tracey Nichols, director of economic development, city of Cleveland lion building in 2010. The addition of the 7000 Euclid building to the complex was announced in April 2011, a month before the first tenant moved into the 6700 Euclid building. That first tenant was the entrepreneurial assistance nonprofit JumpStart Inc. Now, said Tracey Nichols, the city of Cleveland’s director of economic development, only 8,000 square feet remain uncommitted in those first two buildings. Mr. Geis said the pace of leasing pushed him to add the third building and allows his firm to capitalize on the amenities of the new construction. “We’re going to create a true campus there,” Mr. Geis said. “We’ll have a rental stream from $10 a square foot to $16 a square foot.” That way, he said, a company can start in as little as 600 square feet at $10 a square foot and “grow organically” to as much as 40,000 square feet at $16 a square foot.
The city of Cleveland will help finance the renovation of the 6555 Carnegie building, a former heating stove factory. City Council has approved $4.5 million in loans and tax increment financing that will be used to support the developer’s application for New Markets Tax Credits. In exchange, Hemingway has pledged that the development will create at least 90 jobs and $284,066 in new payroll and property taxes annually. The Health-Tech Corridor was born to take advantage of the upgrading by the Greater Cleveland Regional Transit Authority of its service along Euclid Avenue. The Healthline, as the articulated vehicle line is called, is a sophisticated bus-rapid transit that connects downtown Cleveland with the medical and health care institutions at University Circle. It opened in 2008. The $200 million federal, state
and local investment in the Healthline also rebuilt and modernized the city’s main street with the goal of stimulating the kind of rebuilding that is now under way from several developers. Eventually, the city hopes housing and retail development will follow.
Living and breathing Midtown The city’s Ms. Nichols credits Hemingway, and Fred Geis in particular, with making the biggest commitment in the Health-Tech Corridor so far, and perhaps the shrewdest investment. “The guy’s smart,” she said. “He knows how to use his resources to make something happen. “This guy lives (Midtown) and breathes (Midtown); he’s a real asset for the city,” she said. Hemingway also is beginning to fill the four-story building that housed the Agora night club at 5000 Euclid and, a block south of Euclid, it is working with the city of Cleveland to get the 160,000-square-foot Warner & Swasey Building, a former machine tool factory at 5701 Carnegie Ave., into shape for redevelopment. ■
ON THE WEB
Story from www.CrainsCleveland.com.
LNB clear of TARP funding LNB Bancorp Inc., the parent company of Lorain National Bank, announced that it is free and clear of any investment by the U.S. Treasury following its repurchase for $860,326 of warrants for common stock held as part of the federal Troubled Asset Relief Program, or TARP. In a letter to the company’s shareholders mailed last Thursday, July 19, LNB president and CEO Daniel E. Klimas revealed the company repurchased on July 18 the warrants the Treasury held to buy 561,343 shares. Recently, the Treasury’s preferred shares in the company were sold to multiple investment organizations through an auction, generating about $22 million in net proceeds for the Treasury. — Michelle Park
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THEINSIDER
THEWEEK JULY 16 - 22 The big story: A combination of two Northeast Ohio medical equipment manufacturers that are neighbors is in gear. Steris Corp. agreed to buy privately held United States Endoscopy Group Inc. in a $270 million, all-cash transaction. US Endoscopy, as it is known, shares a driveway with Steris, as the headquarters of the two companies are adjacent to one another on Heisley Road in Mentor. US Endoscopy, which employs 400, is a maker of endoscopy devices. Publicly traded Steris makes medical sterilization equipment and hand sanitizers.
Another big story: For the first time, BioEnterprise Corp. will be without the leadership of Baiju Shah. Mr. Shah said he plans to leave his position as president of the highly visible biomedical business accelerator to become CEO of BioMotiv LLC, a startup that aims to raise $100 million in order to help experimental drugs get to the point where they can be sold to pharmaceutical companies or investors. Mr. Shah has been a driving Shah force behind BioEnterprise since before its inception in 2002. He helped draft the original plan that led to the group’s creation and became its president shortly after it was established. Minority report: Summa Health System in Akron is exploring the possibility of selling a minority stake of its $1.6 billion operation to what system leaders refer to as a like-minded, nonprofit health care organization. Summa wouldn’t disclose the names or location of its potential partners or how large of a stake is on the table. See story, Page One.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Plan looks to park more apartments at Crocker
On the money: Juventas Therapeutics Inc. raised another $10 million. The Cleveland drug developer closed a $22.2 million Series B investment round led by Triathlon Medical Ventures of Cincinnati and New Science Ventures of New York. Crain’s reported in February that the company had raised $12 million and was aiming for $20 million. Juventas will use the money to complete two Phase II clinical trials.
Home run: Home sales in Northeast Ohio continued their uptick in June as the crucial summer selling season set in. Statistics from the Ohio Association of Realtors show home sales in the region climbed 8.4% last month over levels of June 2011, to 3,609 properties from 3,329 a year ago. However, the Realtors group reported the pace of statewide sales in June surpassed that of Northeast Ohio. Statewide, June home sales rose 10.6% to 11,246 units from 10,165 in June 2011.
This and that: KeyCorp aims to reduce expenses by $150 million to $200 million by December 2013, the Cleveland-based bank announced as it reported second-quarter profits this year were down 9% from the year-ago period. … Neuros Medical Inc. of Willoughby closed a $3.5 million investment round led by Boston Scientific Corp. and investment firm Glengary LLC of Beachwood. Neuros plans to use the money to add staff and continue development of its Electrical Nerve Block technology.
Rolling out the legal red carpet
■ Developers of Crocker Park want to add 22 apartments to the mixed-use property. But ■ More than a year after the invite was sent, they will need to win voter approval in NoCleveland’s legal community this Thursday, vember in the city of Westlake to do so. July 26, will welcome a panel of federal Although only two acres will go into judges it hopes will be so impressed with Crocker Park’s planned unit development Cleveland that it will send more work its zoning, adding apartments triggers the refway. erendum because it hikes The U.S. Judicial Panel density, said Westlake City on Multidistrict LitigaCouncil president Michael tion meets every couple Killeen. City Council last months at spots around Thursday, July 19, unanithe country to hear petimously approved sending tions for new multidisthe measure to the subtrict litigation and, imporurb’s voters. tantly, to decide where Plans call for part of the to assign such litigation. space at the vacant BorFILE PHOTO/MARC GOLUB Multidistrict litigation ders store in the adjoining Crocker Park in Westlake consolidates cases when Promenade Shopping a group of federal cases has similar issues. Center to go into a new four-story building The U.S. District Court Northern District with retail on the first floor below three of Ohio in Cleveland already handles such floors of residences. The apartment building cases, but the hope is that the panel, after would not change plans for an adjoining seeing Cleveland and the caliber of its legal hotel and parking garage east of the newly talent, will maintain and possibly add to the proposed apartment building on Crocker litigation it’s sending here, said U.S. District Park’s east edge. Court Judge Dan Polster. Steve Rubin, chief operating officer of So, the Cleveland Metropolitan Bar AssoCrocker Park co-developer Stark Enterprises ciation, the Federal Bar Association and the Inc. of Cleveland, said at the meeting that it local federal district court collaborated to also may add a parking deck to Promenade, but have the panel host a hearing in Cleveland. otherwise would leave that area unchanged. This is the first time the panel has done so, The new suites would hike Crocker Park’s 218at least in Judge Polster’s 14 years on the bench. suite apartment component 10%. The more workload a court has, Judge The Northeast Ohio Apartment AssociaPolster said, the more likely it will have allotion trade group’s most recent data, from cated to it the resources needed to maintain April, puts vacancy in the northwest sub-
MILESTONE THE COMPANY: Hastings Water Works, Brecksville THE OCCASION: Its 20th anniversary Summer is a time when many people are enjoying vacation, but at Hastings Water Works, it’s when work kicks into high gear. The company, led by CEO Dave Hastings (pictured above), is in the swimming pool service, maintenance and management business. It specializes in seasonal pool openings, closings, repairs and weekly cleanings — as well as all equipment installation, repair and maintenance for spas and water features, including indoor and outdoor fountains and reflecting pools. Hastings Water Works serves residential, commercial and municipal clients. Its 1,500 clients include the Cleveland Clinic Heart Center, Lakewood Hospital, the city of Beachwood and the Peter B. Lewis Aquatic Therapy Center at Menorah Park. In 2010, the company expanded its footprint to serve clients in the Columbus market. Hastings Water Works is a small business that didn’t start in the proverbial basement, but rather on the gravel floor basement of a rented home. Mr. Hastings started the company with one pickup truck, a pump and a parttime seasonal college employee. “Our success stems from remaining open to new ideas, challenging what and how we do things, seeking out new technologies, new methods, new products and remaining flexible to meet the ever-changing demands of our clients,” according to Mr. Hastings. For information, visit www.HastingsWater Works.com.
staffing levels. “Resources are allocated, not surprisingly, according to caseload,” said Judge Polster, who chaired the committee that planned activities for the visit. “Districts with a larger number of cases get more people.” The community at large stands to benefit, too, Judge Polster said. “When you have large numbers of people coming here, they fly into Cleveland, they stay at hotels, they eat at restaurants,” he said, noting multidistrict litigation can involve large numbers of people. — Michelle Park
A bright idea, or so it expects ■ Eye Lighting International of North America Inc. is illuminating a path for future growth. The Mentor-based provider of commercial lamps and lighting products has created a new division to focus on its specialty products business. Different from its core street lighting and traditional commercial lighting business, the specialty products division focuses on application-oriented projects. Such projects include solar replication for the horticulture business (home hobbyists and institutional growers); testing of solar photovoltaic panels; material testing; and automotive safety testing photography, which needs quality light. Tom Salpietra, president and chief operating officer of Eye Lighting, said creating a division for specialty products will allow the company to spend more time on research and development and to be more strategic in its marketing of its capabilities on that side of the business. — Ginger Christ
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
On the move: Cuyahoga County plans to sell 13 properties, including its administrative headquarters adjacent to the under-construction convention center and medical mart, and move into a new, 225,000-square-foot headquarters building by the first quarter of 2014. The county today, July 23, will post on its procurement website three requests for proposals asking property owners and developers for offers to buy properties and for proposals to lease or construct two buildings for the county.
urbs at a minuscule 1.6%. — Stan Bullard
VC investors find much to like in Buckeye State ■ Ohio is emerging as a hotbed for venture capital. “According to the most recent Ohio Venture Capital Report, venture capital activity in Ohio was up more than 80 percent in 2010, surpassing the national average, which was up only 20 percent,” VentureBeat reported. “Due to the strength of angel groups such as the Ohio Tech Angels Fund, East Central Ohio Tech Angel Fund and North Coast Angels — in combination with the success of state programs, including the Ohio Capital Fund and the Ohio Technology Investment Tax Credit program — Ohio saw a significant increase in pre- and seed-stage investments amounting to $183.8 million, up 78%,” according to the story. What makes Ohio so ripe for investment? Four factors, VentureBeat said: ■ Untapped investment opportunities, particularly in health care and information technology; ■ Attractive deals for the right price; ■ Long-term vision; and ■ Support for entrepreneurs from organizations such as Cleveland’s JumpStart Inc., TechColumbus and CincyTech.
In this ranking, Akron rules; N.Y., Chicago are also-rans ■ Akron has more corporate clout than New York. Sound odd? Not according to an Atlantic Cities.com rescrambling of the geography of U.S. corporate headquarters, where Akron is a more significant player than not
only New York, but Chicago, Detroit, Los Angeles and lots of other places. In the Fortune 500, New York is the leader with 18 companies headquartered there, followed by Houston with 6, and then Minneapolis and Atlanta with 4 each. (The numbers refer to HQs within city limits, not in suburbs.) “The rankings change considerably when we factor the size of cities and metros into the equation,” TheAtlanticCities.com noted. On a basis of headquarters per 1 million people, New York drops to 13th place, Houston is 12th and Atlanta is 16th. Los Angeles ranks 27th and Chicago is No. 31. Milwaukee takes first place on this per-1 million-people ranking, followed by Minneapolis, Hartford, Columbus and San Jose. Memphis, Springfield, Mass., Akron, Cincinnati, and Omaha round out the top 10.
It’s not quite time to cash out ■ You might think we live in an increasingly cashless society, but Fortune noted that the amount of U.S. dollars in circulation today “is valued at $1.1 trillion, the highest it has ever been.” That’s an increase of about 9% from last year, “and it’s been climbing steadily for more than a decade,” according to the magazine. Among other fun facts about cash: About $300 million of cash circulated is in high denomination bills that are no longer issued, but still considered legal tender — $500, $1,000 and $10,000 bills. And 50% to 60% of U.S. cash is held abroad. Then there’s this: “Before 2003, the Federal Reserve designated 45 locations as check processing facilities. Now just one remains, in Cleveland,” Fortune said.
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