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$1.50/OCTOBER 18 - 24, 2010
Vol. 31, No. 41
Execs who choose politics find it’s not a day at the office Candidates with business backgrounds tout abilities to lead a company, but transition to government not always seamless By JAY MILLER jmiller@crain.com
P JESSE KRAMER
Thomas Perciak says the similarities are few between the nearly 40 years he spent in the banking business and his job since 2004 as mayor of Strongsville.
MATT BRAKEY
PETE DRAGANIC
TOM GANLEY
Current job: energy consultant
Current job: construction contractor
Current job: auto dealer
Candidate: Cuyahoga County council
Candidate: Cuyahoga County council
Business loans make up larger share of credit union portfolios By MICHELLE PARK mpark@crain.com
41
Credit unions, long a bastion of consumer lending, have become a haven for Joe Business Owner, too. Amid tighter bank lending standards in the wake of the subprime mortgage fiasco, credit unions are accelerating their issuance of small
business loans. As a result, an area of business that was a specialty line for credit unions has become more mainstream, said John Kutchey, deputy director of the examination and insurance office of the National Credit Union Administration, the industry’s federal supervisor. Examples of growth abound.
KEN LANCI Current job: Consolitated Graphics Group Inc. owner
Candidate: 13th district congressman
INSIDE Hospitals’ charitable donations rebound The recession undercut the fundraising efforts of hospital systems nationwide, but some local health care institutions are reporting rising levels of charitable giving. Those hospitals say they are focusing on bolstering relationships with individual donors. Read Tim Magaw’s story on Page 3.
See CREDIT Page 35
Candidate: Cuyahoga County executive
6
See POLITICS Page 7
JACK SCHRON Current job: Jergens Inc. CEO Candidate: Cuyahoga County Council
Danaher’s winning bid for Keithley could cost local jobs By CHUCK SODER csoder@crain.com
Employees of Keithley Instruments Inc. might not like one of the reasons Danaher Corp. was willing to pay a 74% premium for the Solon company, according to two executives from an investment manage-
SPECIAL SECTION NEWSPAPER
71486 01032 0
ast performance suggests few successful business people have managed to continue their winning ways by moving into politics — think presidential hopefuls Steve Forbes and Ross Perot from years past. However, that isn’t stopping local executives and business owners from trying to emulate Michael Bloomberg, founder of Bloomberg LP who has been mayor of New York City since his election in 2001. On Nov. 2, Northeast Ohio voters will find a handful of business leaders on the ballot running for key offices. Among them are Republican Peter
Corrigan, chief operating officer of Prestolite Electric Inc., who is challenging longtime incumbent Dennis Kucinich in the 10th Congressional District, and Pete Draganic, a Republican and construction contractor who wants to represent the Fourth District on the new Cuyahoga County Council. These candidates and others make essentially the same argument: I’ve been a success in business, and I can be successful in government. However, unless some of them can pull out victories next month, the number of business people who voters have given the chance to show what they can do in government is small.
Crain’s for the fourth time honors Northeast Ohio’s top financial officers for their fiscal leadership and asset management ■ Pages 17-33
ment firm in Beachwood. Edward Hemmelgarn and Raymond Rund of Shaker Investments LLC said they expect Danaher to cut at least some sales and administrative positions once it completes the deal to acquire the maker of electrical testing and measurement equipment, See KEITHLEY Page 8
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COMING NEXT WEEK
HAVING LESS, SPENDING LESS It took a mammoth recession to do it, but average U.S. household spending fell in 2009 from 2008 — the first year-to-year drop since the Bureau of Labor Statistics began tracking such data in 1984. Spending on housing and transportation — the largest components of consumers’ budgets — fell 1.3% and 11% respectively, contributing to an overall drop in spending in 2009. Health care expenditures rose 5%, the only significant increase among the major components of spending. Here’s a breakdown of the numbers:
An event’s buildup Plenty of planning and work is required to execute major home-improvement events, from building a spec house to growing floral gardens. We look at the logistics behind the process in our Meeting and Event Planner section.
Category
Avg. 2008 spending
Avg. 2009 spending
Change
$17,109
$16,895
-1.3%
Transportation
8,604
7,658
-11.0
Insurance/pensions
5,605
5,471
-2.4
Food at home
3,744
3,753
0.2
Health care
2,976
3,126
5.0
Entertainment
2,835
2,693
-5.0
Food away from home
2,698
2,619
-2.9
Average all expenditures
50,486
49,067
-2.8
Housing
REGULAR FEATURES Blog Recap .......39 Big Issue ..........10 Classified .........38 Editorial ...........10
OCTOBER 18-24, 2010
Going Places ....14 List: Colleges and universities 34,36 The Week .........39
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV
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Donation vise loosens at area hospitals INSIDE: A closer look at Northeast Ohio health care institutions’ charitable giving levels. Page 37
Institutions report higher giving levels as caution that came with recession wanes By TIMOTHY MAGAW tmagaw@crain.com
The crippling recession impaired the fundraising efforts of hospital systems nationwide, but as the economic climate starts to improve, the coffers at Northeast Ohio’s health care institutions appear to be
THE WEEK IN QUOTES
on the mend. Charitable giving for U.S. health care institutions plunged 11% in 2009, totaling about $7.64 billion, according to a report issued last month by the Association for Healthcare Philanthropy. But so far this year, many health care institutions in the region are reporting gains.
Kathy Taylor, system director of development at the Summa Foundation, said although the environment for giving is peering up, it’s by no means perfect. “We still see some hesitation,” Ms. Taylor said. Donating money, she said, “is not something that’s a snap decision.” “During the economic downturn,
what we’re seeing is that time periods can stretch out a little bit more because people are cautious, and you can’t blame them for being cautious,” she said. The Summa Foundation, the fundraising arm for the Akron-based Summa Health System, saw donations decline almost 19% to $4.4 million in 2009 from $5.4 million in 2008. Summa re-tooled its fundraising efforts and so far this year is on track to exceed its 2008 levels, Ms. Taylor said. Summa received two,
INSIGHT
$1 million gifts this year that have allowed it to grow its medical and research programs and attract new talent to the health system. Ms. Taylor said Summa’s fundraising typically has been driven by special events such as its annual Sapphire Ball, which raises money for women’s health. At this year’s ball, for example, Summa received an anonymous $1 million gift to establish an endowed chair for women’s health. See GIVING Page 37
Euclid firm puts pedal to metal with plant plan
“There are some really good people out there who aren’t currently employed, but you need a good screening process in place to find those people.”
MesoCoat seeks to grow production, sales
— Lori Long, associate professor of human resources, BaldwinWallace College. Page 9
By CHUCK SODER csoder@crain.com
“It’s hard to tell a customer about why they should replace their windows (and) look at sustainability when your own building is a 1969 version of building construction.” — Craig Nelson, vice president of construction operations for WTI, a Tremco Inc. subsidiary. Page 11
“What makes Rich stand out even more than his technical ability as a CFO is his warm, open and kind personality. … Rich takes the human approach when looking at numbers and considers his audience.” — CFO of the Year nomination for Richard Boyson, Therapy Partners. Page 18
“He has guided us through the treacherous water of the economic downturn without so much as a scratch.” — CFO of the Year nomination for Brian S. Kenyon, Rock and Roll Hall of Fame and Museum. Page 20
JANET CENTURY
Ariella Reback (right), owner of Green Pastures Poultry, chats with customer Jenny Aidlin of Cleveland at the Blue Pike Farm Market on East 72nd Street in Cleveland.
FEEDING THE ECONOMY Economic development officials’ eyes are opening to potential in larger agricultural base, improved distribution of local food By KATHY AMES CARR kcarr@crain.com
E
conomic development advocates with an interest in agriculture are watering the seeds of emerging business endeavors that are geared toward bringing more locally produced food from field to table in Northeast Ohio. The goal is to encourage the development of a broader agricultural base and an improved distribution system so that fresh, locally produced food from an array of suppliers can substitute for products
shipped into the area that contribute little to the region’s wealth. Promoting this effort is the Ohio Agricultural Research and Development Center in Wooster, which is an extension of Ohio State University. It’s in the second phase of a four-part initiative financed by the Fund for Our Economic Future, a nonprofit economic development consortium that is aiming to build a regional agricultural and bioscience industry cluster — an area the agricultural center said already is generating $8.2 billion in annual revenue in Northeast Ohio. See FRESH Page 12
WHAT’S AN AG-BIO CLUSTER? The Ohio Agricultural Research and Development Center (OARDC), an extension of Ohio State University in Wooster, has identified 12 projects it sees as contributors to a larger food production system in the region, something known as an agriculture-bioscience industry cluster. In addition to Green Pastures Poultry
(pictured above), a proposed wine and culinary incubator in Geneva is among the business plans chosen by the OARDC and financed by the Fund for Our Economic Future. “We want to see a high-potential cluster turn into high reality,” said Brad Whitehead, the president of the Fund for Our Economic Future.
Whitehead
The new plant MesoCoat Inc. aims to build is the first step in the Euclid company’s plan to change the way the world coats metals. MesoCoat is preparing to build a $6.5 million plant that will allow the company to start coating and selling metal products on a larger scale. The new plant also will showcase MesoCoat’s abilities before the company moves ahead with plans to build more plants, said Robert Miller, CEO of Miami-based Abakan Inc., MesoCoat’s new majority owner. “It will be the honey to attract the bees,” Mr. Miller said. The new plant, which most likely will be built next to MesoCoat’s headquarters on Rockwell Drive, will coat metals with two patented technologies. One of them, the company’s CermaClad process, uses a plasma arc lamp to bond protective metal coatings to products such as oil and gas pipelines. The process is far faster than the current standard — laser cladding — because plasma arc lamps cover bigger areas than laser beams, said MesoCoat CEO Andrew Sherman. “The width of that spot is three to five millimeters,” he said, pointing to a photo of a laser cladding head at work. “We’re doing 12 inches.” The plant also will include several thermal spray stations where MesoCoat will apply a material called PComP, which is made of both ceramic and metal particles, on products used in the oil and gas and aerospace industries. The material is meant to serve as a stronger, environmentally friendly alternative to chrome and other toxic compounds. An unidentified oil and gas company has committed $2 million to help finance the new plant, and MesoCoat is in the process of finalizing a $2.8 million investment from Abakan, Mr. Sherman said. The startup aims to raise another $1.5 million in debt financing from the state of Ohio and the federal government. Mr. Sherman said the company is looking for See MESOCOAT Page 36
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U.S. investigates dealer cuts Federal inspectors launch probe to determine if illegal activity played role in terminations By NEIL ROLAND Automotive News
The federal inspectors that criticized the Obama administration, General Motors and Chrysler for their handling of about 2,300 U.S. dealership terminations have opened a follow-up investigation of possibly illegal activity in the effort. The Office of the Special Inspector General for the Troubled Asset Relief Program, a $700 billion federal bailout effort that included GM and Chrysler, won’t disclose the targets
of the investigation or the actions being probed, said Kris Belisle, the office’s spokeswoman. But auditor files used in preparing a July report on dealer terminations during the automakers’ bankruptcies have been turned over to the office’s investigators, Ms. Belisle said in an e-mail. “There is an investigation,” Ms. Belisle told Automotive News. “Generically, we can investigate any offense.” The July audit more generally examined the role of the adminis-
tration’s auto task force in the dealer cuts and the processes used by GM and Chrysler to decide which dealers to terminate. It also looked at the extent to which dealer cuts would save money for the automakers. An investigation bores in on possibly illegal activity, and it can lead ultimately to prosecutions and even penalties such as fines or imprisonment. The inspector’s office, headed by former federal prosecutor Neil Barofsky, had 104 ongoing criminal and civil investigations as of June 30, according to its most recent quarterly report to Congress. The focus of those investigations has included false statements, obstruction of justice, public corruption and various kinds of fraud, the report said. Office investigators can issue subpoenas, make arrests and refer cases to the U.S. Justice Department for prosecution, according to the report.
“Chrysler Group’s optimized dealer network is already contributing to improved vehicle sales.” – Michael Palese, spokesman, Chrysler U.S. Treasury Department spokesman Mark Paustenbach declined to say whether the agency had been contacted by investigators. GM spokesman Greg Martin also declined to comment. Chrysler has not been contacted by investigators, said company spokesman Michael Palese. “Chrysler Group’s optimized dealer network is already contributing to improved vehicle sales and will be a vital part of the company’s success as we continue to deliver outstanding products to our customers,” he said. The 41-page July audit did not suggest that any illegal activity had been committed. However, auditors criticized the administration for accelerating dealership closings last year during a severe economic downturn and for failing to consider the impact of the cuts on automakers’ viability and costs. Chrysler, in the end, terminated about 760 dealerships after a series of federally mandated arbitration cases took place this summer. GM cut another 1,550 dealerships. The auditors also expressed doubt about the credibility of GM’s and Chrysler’s estimates of savings from the dealer cuts, and they faulted GM for keeping inadequate records of its decision-making on terminations. Dealer advocates have questioned whether evasive responses to auditors’ questions delayed release of the critical report until July 18 — four days after dealer arbitration hearings were completed. ■ Neil Roland is Washington reporter for Automotive News, a sister publication of Crain’s Cleveland Business.
Volume 31, Number 41 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
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Colliers set to re-establish Northeast Ohio presence Ohio duo’s ability to gain foothold unknown By STAN BULLARD sbullard@crain.com
A key part of where the Colliers International name will land in Northeast Ohio is set, but not enough to keep the rumor mill among commercial real estate brokers from staying in overdrive. The owners of the Colliers firms in Cincinnati and Columbus, Shenan Murphy and Richard Schuen, respectively, will own the Colliers flag here. That’s the word from Dylan Taylor, the U.S. CEO of Colliers Interna-
tional. Colliers issued to Crain’s Cleveland Business a statement from Mr. Taylor saying he looked forward to the leadership and background the two bring to Northeast Ohio. He said he is excited about giving Colliers clients the ability to deal with one entity statewide. The Colliers name in Northeast Ohio went into play in August when Colliers Ostendorf-Morris, a regional brokerage that was one of the original founders of Colliers as a global network of brokerages 25 years ago, and the current Colliers International terminated their rela-
tionship. Colliers now is part of publicly traded FirstService, a diversified real estate services firm based in Toronto. Building a local brokerage presence takes time, so speculation abounds about whether the Ohio duo can bring an established local brokerage into the fold or attract brokers with enough background to exert a meaningful presence. Bob Brehmer, president of NAI Daus of Beachwood, said his firm is content with its current situation even though he knows Messrs. Murphy and Schuen from his prior role as a broker for Grubb & Ellis Co., which the downstaters were with until they joined Colliers earlier
this year. Bob Nosal, managing director of the Cleveland office of Grubb & Ellis, declined comment on his former colleagues’ new efforts here. However,Terry Coyne, a Grubb & Ellis senior vice president, said he fielded a call from a colleague at another firm who asked Mr. Coyne to join him in a new Colliers venture. Mr. Coyne declined, he said, because he is satisfied at Grubb & Ellis. He would not identify the prospecting broker or his firm. The new Colliers effort already has some key real estate under control — on the Internet. Do a Google search for “Colliers International” on the web and you’ll
Liggett tries branding process on new client — itself By SCOTT SUTTELL ssuttell@crain.com
Branding agency Liggett Stashower got a taste of its own medicine, when, in late spring, it began the process of restructuring its management. “We took our own strategic analysis process we do with clients and applied it to ourselves,” said David Moore, the firm’s president and, as of last Thursday, Oct. 14, one of its two new managing partners. Stephen Veres, Liggett’s chief operating officer, also has added
the managing partner title. Mr. Moore said the firm brought in outside consultants to help devise a structure that would drive growth and enhance the essential nature of Liggett as “a talent-based agency that’s in the business of selling ideas.” To that end, Liggett named Mark Nylander, formerly its CEO, as chairman of the board, responsible for growth initiatives, new business development and what Mr. Moore called “long-term strategic vision and partnership.” In the new structure at Liggett,
no one carries the CEO title. Messrs. Moore and Veres will share day-to-day executive duties. Mr. Moore will handle the marketing direction of the agency, such as client business and creative product, and Mr. Veres will oversee operations such as billing and fee structures. Liggett also promoted three executives to managing directors: Brian Bloom, formerly executive vice president, brand development director; Mark Cerame, formerly vice president, brand experience; and Susan Preisler, formerly vice president, brand strategy and research.
They will report to a reorganized board of directors comprising Messrs. Nylander, Moore and Veres as well as two outside members. Mr. Moore said Liggett has not yet named those outside directors. It’s looking for one person with financial and operational expertise and another who is “in the business of marketing a branded product.” Messrs. Bloom and Cerame and Ms. Preisler will work with Messrs. Moore and Veres in supervising agency teams. The firm has 55 employees at present and has had “a very successful
find www.colliers.com/markets/Cleve land. The page for “Colliers International Cleveland” lists e-mail addresses and a phone number that will be answered by either Mr. Schuen or Mr. Murphy. Messrs. Murphy and Schuen are not commenting on their plans, according to Leslie Hobbs, marketing manager for Colliers in Columbus. The Colliers offices in Columbus and Cincinnati have nearly 15 million square feet of property under management and 576 sale or lease brokerage assignments. Geoffrey Coyle, managing partner of Ostendorf-Morris, declined comment on efforts to re-root the Colliers flag here. ■
run” in the last year, Mr. Moore said. He said Liggett has added about a dozen clients in the last 12 months, including paper giant Boise Inc., the Catholic Diocese of Cleveland Foundation, the Gunk brand of cleaners/ degreasers and Cleveland law firm Ulmer & Berne. Mr. Nylander, 57, joined Liggett in 1994 as executive vice president, general manager, public relations. He became CEO in 2004. Mr. Moore, 52, joined the agency in 2001 as executive vice president, creative director and became president in 2004. Mr. Veres, also age 52, has been with Liggett since 2004, when he was named vice president, finance. He became chief operating officer in 2007. ■
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Maybe that’s because the electorate knows intuitively what experience and academic observation suggest — government is not like a private business, so success in business is no strong indicator of success in government. “There are similarities — you deal with your city council the way you run things through your board of directors,” said Thomas Perciak, who has been Strongsville’s mayor since 2004. “But pretty much that’s where (the similarities) end.” Mayor Perciak spent nearly 40 years in banking, serving as president of Strongsville Savings Bank and its successor, Emerald Financial Corp. After the sale of Emerald to Fifth Third Bancorp in 1990, he was an executive vice president of Fifth Third Bank until retiring to run for mayor of Strongsville. Mayor Perciak said a government leader must be able to win over more than just a single entity like a board of directors in order to advance his agenda. Besides going to city council for approval of a policy change or a rezoning for a favored project, he must win the approval of citizens, often through hearings, and perhaps other governmental agencies.
“If I’m running a business I can choose to ... discontinue a product line if it’s losing money. But in the public sector, we have less freedom with those kinds of choices.” – Nicholas Zingale, assistant professor of public administration, Maxine Goodman Levin College of Urban Affairs, Cleveland State University Mr. Corrigan, running to unseat Rep. Kucinich, said the people skills common to business or government are important. “I’ve negotiated all over the world,” he said. “That’s a common element.” Mr. Lanci, owner of Consolidated Graphics Group Inc., a Cleveland printing and graphics firm, said he believes the dynamics of business and government are the same; the only difference is that there are
different stops along the way to the approval of a project. Whereas a mayor or other public executive must get a new program or a budget past a council, he said, a business person must go to a bank and through the same process of negotiation and approval. The only difference is the political posturing by Democrats and Republicans that gums up the works, according to Mr. Lanci.
“As an (independent), I’m not a threat,” Mr. Lanci said.
Learning the ropes Unlike Mr. Lanci, Mr. Scipione says business and government are different. But Mr. Scipione said he believes business leaders successfully can cross over if they’ve been involved in community organizations where, because they aren’t the boss, they’ve learned how to win over others to their point of view. Not surprisingly, Mr. Scipione, president of Acme Express Inc., a Cleveland software designer, said he has that experience. His civic volunteer activities have included serving as chairman of MidTown Cleveland
Inc., a nonprofit community development corporation, and as a member of the Cleveland Workforce Investment Board, which oversees spending of federal job training money. “By force of personality, by force of argument, by leadership, you’ve got to get the people you need to believe in you,” he said. “I’ve had to do that in all my volunteer activities.” The last word on the subject may belong to Dr. Zingale. He said he’s amused by the way some business leaders view their counterparts in government. Business people, he said, often criticize politicians for being authoritarian and imposing business-unfriendly policies unilaterally. “We don’t want politicians who are dictators,” he said he hears from business people. “But those are the skill sets that make business people successful.” ■
It isn’t Kansas anymore Mr. Draganic, the county council candidate, likewise acknowledges the challenge. The construction contractor also is a member of Seven Hills City Council. He said soon after he took his council seat three years ago, he came to the “quick realization that government doesn’t work like a business.” The checks and balances that exist in government represent a big difference between how business and government work, according to Mr. Draganic, who admits he initially was overwhelmed by the budgeting process. “There is a lot more money involved than in my business,” he said. Nicholas Zingale, assistant professor of public administration at the Maxine Goodman Levin College of Urban Affairs at Cleveland State University, said the issue of diverse and uncontrollable stakeholders who are involved in setting public policy is “a wicked problem to deal with” for business owners and managers accustomed to choosing what issues, programs or new products to tackle — and how to tackle them. “If I’m running a business I can choose to continue or discontinue a product line if it’s losing money,” Dr. Zingale said. “But in the public sector, we have less freedom with those kinds of choices. I can’t just decide, ‘Boy, education’s a losing proposition, so I won’t make an investment in education.’” Of course, the business people on the stump for the first time in this election cycle believe they can make the transition.
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Not to worry Besides Messrs. Corrigan and Draganic, they include first-time political hopefuls Tom Ganley, the auto dealer trying to unseat Betty Sutton in the 13th Congressional District, as well as Ken Lanci and Don Scipione, independent candidates for Cuyahoga County executive. In addition, Matt Brakey, an energy consultant, and Jack Schron, CEO of toolmaker Jergens Inc., are vying for Cuyahoga County Council seats.
7
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OCTOBER 18-24, 2010
Author Steve Lopez
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Mission Workplace Solutions!
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Every Thursday, Crain’s sends to more than 20,000 readers an arts and leisure e-mail called e!Cleveland. The e-mail highlights events that might be worth your time outside work. We’re fortunate in Northeast Ohio to have a vibrant arts community, and each edition of the e-mail features a mix of local music, theater, dance, film and other activities. To sign up for this and all our e-mails, visit www.CrainsCleveland.com and click the “Register for Crain’s alerts” icon at the top left of the home page. If you have events you’d like us to consider for inclusion in future editions of the e-mail, send information to managing editor Scott Suttell at ssuttell@crain.com. Here’s a taste of what makes it into the e-mail each week:
“The Kite Runner” A business advisory and advocacy law firm
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Venue: Cleveland Play House When: Monday, Oct. 18, through Sunday, Nov. 7
Why you might be interested: If you’re among the millions of people who read and loved the book. “The Kite Runner” spent five years — five years! — on The New York Times bestseller list, so the theatrical version should have a big built-in fan base. The novel by Khaled Hosseini, set against a backdrop of tumult in Afghanistan, tells the story of Amir, a young boy from Kabul, who befriends Hassan, the son of his father’s servant. Play House artistic director Michael Bloom calls the play “one of the most exciting and important shows we’ll do this season.” At base, he says, it’s “a great adventure story with an exotic locale, lots of interesting action, and some terrific relationships between characters. I think audiences will find that the play is even more accessible and gripping on stage than it was in the novel.” On the web: www.ClevelandPlay House.com
Venue: EJ Thomas Hall, Akron When: Wednesday, Oct. 20, at 7:30 p.m. Why you might be interested: If you’re captivated by a remarkable human-interest story. Mr. Lopez, a columnist at The Los Angeles Times, is the author of “The Soloist: A Lost Dream, an Unlikely Friendship and the Redemptive Power of Music.” On his way back to the office one day, Mr. Lopez spotted a homeless man playing a battered two-string violin. That man turns out to be Nathanial Ayres, a Cleveland native and once a promising Juilliard student who dropped out in large part due to the pressures of his mounting schizophrenia. The story was turned into a 2009 film starring Robert Downey Jr. and Jamie Foxx. At EJ Thomas Hall, Mr. Lopez will talk about his four-year odyssey with Mr. Ayers and explain how a chance encounter turned into a book and a movie. He’ll also explore the nature of friendship and the power of human connections. On the web: www.EJThomasHall .com
Keithley: Financial performance drives up bid continued from PAGE 1
which employs more than 550 people, more than half of whom work in Solon. Some research and development positions may be at risk as well, they said. At 4 a.m. on Wednesday, Sept. 29, Danaher struck a deal to buy Keithley for $21.60 per share, or about $300 million, after engaging in a bidding war with another company, according to a proxy statement Keithley filed Oct. 8 with the Securities and Exchange Commission. The statement did not identify the other company.
I want to change the world.
The ability of Danaher to cut costs at Keithley may have been one reason the diversified manufacturing and technology company was willing to pay far more than the $12.39 a share that Keithley stock was trading for at the close of business on Sept. 28, said Mr. Hemmelgarn, president of Shaker Investments, which used to be an investor in Keithley. Mr. Hemmelgarn noted that he doesn’t believe Danaher, which is based in Washington, D.C., and employs 46,000 people worldwide, would have bought the company “to run it into the ground.” Some research done at the two companies might overlap, but much of it will not, given that Keithley has a strong focus on producing equipment designed to measure low current and voltage levels, Mr. Hemmelgarn said. Keithley’s product lineup is a good complement for products sold by Danaher’s Tektronix Inc. and Fluke Corp. subsidiaries, said Mr. Rund, head of research for Shaker Investments. A fuller product lineup might help the combined company’s sales team sell equipment, but it won’t necessarily require that team to be bigger, Mr. Rund said. “They have the same customers. They would use the same sales force, probably,” said Mr. Rund, who worked in the sales and marketing departments at Keithley from 1985 to 1987. As part of the plan, Keithley will be merged into Danaher’s Tektronix unit, based in Beaverton, Ore.
Let the bidding begin Keithley’s deal with Danaher marks the culmination of a long
effort to find a buyer. The company began to look at “strategic alternatives” in November 2009, partly because it shrank in size that year after dropping one product line and selling another, according to the Oct. 8 proxy statement. The process got a boost when Keithley, which lost more than $50 million in 2009, showed improved financial performance in the fiscal second quarter that ended March 31, earning $4.1 million. The board on April 2 decided to interview financial advisers to help it analyze its alternatives. Keithley on Sept. 13 received three bids ranging from $13.50 a share to $16 a share, according to the proxy statement; Danaher bid $15.50. Keithley soon removed the low bidder from consideration, noting in the filing that the company did not appear to have on hand the capital needed for the acquisition. Starting Sept. 27, Danaher and the remaining suitor each raised their bids three times, with Danaher filing the winning bid just before 10 p.m. on Tuesday, Sept. 28. The offer exceeded the other company’s last bid by $1.10, according to the proxy statement. An official from Danaher did not return two phone messages left last week. A representative for Keithley said the company could not provide comments for this story because at least one lawsuit has been filed challenging whether the Danaher sale is fair to Keithley shareholders. Mr. Hemmelgarn suggests it is. “Sometimes the best thing is to sell,” he said. ■
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Recruiting firms expect revenue growth this year Local employers may seek staffing services to identify best talent among bevy of applications
“(Employers) might be more willing to invest in a third-party search firm to help fill a key position.”
By TIMOTHY MAGAW tmagaw@crain.com
– Lori Long, associate professor of human resources, BaldwinWallace College
As companies look for leaders to guide them from the pits of the recession, recruiting firms in Northeast Ohio are seeing an uptick in business despite a still-bleak employment outlook. The majority of search consultants expected to see revenue growth this year, according to a May survey conducted by the Association of Executive Search Consultants, a trade group representing high-end recruiting firms. The improvement would come after a dismal 2009, when the association reported revenues at executive search firms plummeted 32.5% in the aggregate from 2008 before rebounding slightly in the fourth quarter. Lori Long, an associate professor of human resources at BaldwinWallace College, sees the rebound as a positive sign. “Using a recruiting firm is more costly than doing a search on your own,” Ms. Long said. “So, if you have the budget to do so, that’s a positive indicator.” Nikki Bondi, a co-founder and managing partner at Advantage Partners, said the Cleveland-based firm has been “swamped” so far this year. Ms. Bondi said a large part of the market for Advantage Partners, which finds executives for the portfolio companies of private equity firms, evaporated in September 2008 at the peak of the financial crisis. But after the bloodletting at companies over the last couple years, Ms. Bondi said many are looking to rebuild, which has been a factor in Advantage Partners’ recent boom in business. “They’re looking at finding new markets, finding new verticals, finding new places to increase business,” she said. “In some cases, companies have tried to reinvent themselves.” So far, Ms. Bondi said her firm hasn’t reached its pre-recession levels, but it’s about two-thirds of the way there. Jonathan Graham, a partner at the Cleveland office of Heidrick & Struggles, a worldwide recruiting firm focusing on top-tier executive searches, said the firm’s revenue is close to its pre-recession levels. Mr. Graham said the company was somewhat prepared for the recession after the economy dipped in the early 2000s and allowed Heidrick & Struggles to re-evaluate its areas of focus. “We’ve rebounded nicely,” Mr. Graham said. “Last year was a tough year, and I think we’ve come out much stronger than we were beforehand.”
Finding the ‘right fit’ Ms. Long said more companies might be turning to third-party recruiters this year to find the right people to steer them through the still-tepid economy. “In light of the troubled economy and so forth, companies are being very cautious with who they fill key positions with,” Ms. Long said. “They might be more willing to invest in a third-party search firm to help fill a key position.” Mr. Graham, for instance, said he’s seen an increase in searches for top-level marketing professionals, chief executive officers and chief
operating officers over the last nine months. He noted that “if you can get the right talent, it can have a huge impact on the bottom line.” Ms. Long said companies that might be inundated with applications because the job market is so poor also might be turning to recruiting firms to help sift through the throng of paperwork and identify applicants with the skill sets they want. “There are some really good people out there who aren’t currently employed, but you need a good
screening process in place to find those people,” Ms. Long said. It can be difficult to attract applicants with the economy still struggling, said Shel Myeroff, CEO and founder of Direct Recruiters Inc., a Solon-based firm that focuses its searches on mid-level management and some executives. “People were very cautious,” Mr.
Myeroff said. “If they had a job and were making money, they weren’t falling all over themselves to talk to us if they were doing well.”
Shifting the focus Mr. Graham noted that Heidrick & Struggles has moved beyond just recruiting, focusing also on leadership advising. Mr. Graham said this work could include succession plans for CEOs or boards of directors. “Recruiting is our lifeblood and always will be, but the talent we’re bringing in is broader and more strategic than I would say it was in the past,” Mr. Graham said. Meanwhile, Direct Recruiters is reporting a record year, according
to Mr. Myeroff. It started experiencing a drop in revenue in October 2008 and its leaders decided to re-evaluate the business. Mr. Myeroff said the biggest shift his company made was figuring out which markets weren’t profitable for recruiting. He said the company then invested a huge chunk of its resources into developing talent to recruit professionals for jobs in the health care informational technology field, which “paid huge dividends.” “We saw a problem, we acted on the problem, we fixed the problem and we didn’t settle for any excuses about the economy being bad,” he said. “We had to outperform the economy, and I believe we are.” ■
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PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Sad stats
R
esults from the latest Cleveland Business Pulse Survey by the Deloitte accounting and consulting firm likely won’t find their way into any chamber of commerce promotional materials. The unsettling self-assessment of Northeast Ohio’s economic prospects indicates the region’s movers and shakers still have a long way to go to convince many of their own that the future here looks brighter than the present. The argument can be made that the 133 local business leaders who responded to the survey do not represent a big enough sampling of voices from which to draw conclusions. It nonetheless is hard to ignore the negativity in the survey’s findings. It isn’t surprising to learn that eight out of 10 survey respondents are either “not particularly confident” or “not confident at all” in Northeast Ohio’s economy at present. The recession may be officially over, but business conditions remain ragged in these parts. More startling, though, is their response to the question, “How confident are you that Northeast Ohio’s economy can strengthen in the next five years?” (Note: not “will strengthen” — can strengthen.) Thirty-six percent said they were not particularly confident, while 15% said they were not confident at all. That’s more than half the respondents answering in the negative. And of the respondents that were in the positive camp, most of those only could say they were “somewhat confident” that the local economy could strengthen in the next half-decade. The survey form did not provide a place for respondents to offer comments as to why they do or don’t have confidence in the local economy’s longer-term prospects. However, those survey respondents who answered “no” to the question, “Do you believe the city of Cleveland is taking the right steps to strengthen its economy?” did not hesitate to fire away when asked the open-ended question, “What should the city be doing differently?” The 2 ½ pages of comments were as varied as the people who made them. However, they revealed a general frustration extending beyond Cleveland’s borders with local government, both in terms of its efficiency and its attentiveness to business. We can hope the change in the structure of Cuyahoga County government that will take place in January will damp some of those frustrations, which the ongoing federal public corruption investigation no doubt has intensified. And it will help if the work of economic development support groups such as Team NEO, JumpStart Inc. and BioEnterprise continues to bear fruit. Yet despite these efforts, many business leaders are sending a message that the region is missing the mark in setting a course for future economic success. We can’t say what all the missing ingredients are. However, in reading survey respondents’ comments, there’s a cry for dynamic leadership that is capable of articulating a vision for the region and leading the way toward it. Programs and initiatives are great, but there is no substitute for a champion. And right now, Northeast Ohio doesn’t have one.
FROM THE PUBLISHER
Where’s the ad touting Third Frontier?
Y
expansion and research, with the results ou can tell that the governor’s reported to be 41,000 new jobs since its race in Ohio is dreadfully close inception. We rarely hear Mr. Kasich talk because the ads and debates are about it, and Gov. Strickland hasn’t been so dreadfully nasty. And do we touting it as much as he should. really know yet what each man would The General Assembly and whoever do, or do differently if elected? the next governor is should make a pact Ted Strickland, the Democrat incumthat they’ll do nothing other than support bent and former congressman and this worthy endeavor. To do prison chaplain, seems sincere anything else is to invite more yet unimaginative. His Republican BRIAN long-term economic decline in challenger, John Kasich, former TUCKER our state. congressman, investment banker **** and talk show host, seems full REGARDLESS OF WHO of energy, but few people are OCCUPIES the governor’s clear exactly what he’ll do with mansion next January, legal that energy. gambling is going to be a bigger One thing scares me about part of the state’s future. Ohio both candidates, and it’s the voters last year approved four future of the Third Frontier pronew casinos, one of which will gram, arguably the most sweeping be in downtown Cleveland, and the government attempt to redirect and horse track owners are trying to re-energize Ohio’s economic future in convince federal judges to allow them to modern times. It was fueled by a huge install new-fangled slot machines in bond issue passed under the leadership their clubhouses. of former Gov. Bob Taft, and since has Gov. Strickland, once an opponent of been renewed by Ohio voters. expanded gambling in Ohio, reversed his Proceeds from the Third Frontier have position while trying to plug the holes in injected millions into Ohio for business
the last biennial budget and pushed for the Ohio Lottery to install the slot machines at the tracks. The problem is that there are casinos everywhere now, and a logical argument can be made that the gambling operations simply will attract mostly local, discretionary entertainment dollars. Adding slot machines at race tracks will only further dilute the same gambling dollars. **** FINALLY, HERE’S A MOUTHFUL of a quote attributed to Dick Kinzel, chairman of the company that operates Cedar Point and other amusement parks: “Building on the positive value-creating momentum we have cultivated through the successful refinancing of our debt, coupled with our strong performance through the summer operating season, we have developed a comprehensive five-year plan to position us for consistent, steadily increasing growth going forward while returning an attractive income stream to our investors through a sustainable distribution policy.” Anybody really think he actually said those words? ■
THE BIG ISSUE Has any of the political advertising you’ve seen helped you decide how to vote, or are the ads just unhelpful political hype?
JANET TARPLEY
GEORGE ANSFIELD
ROBERT TRAVICK
JESSICA NOETH
Youngstown
Cleveland Heights
Cleveland
University Heights
I already have made up my mind, so they haven’t helped. As a matter of fact, I have already voted.
They’re all the same. Each candidate says the same thing about the other one. I never pay attention to the ads. The ads themselves are stupid.
They help me make a decision. They do help because they point out the wrong, what each (candidate) has done.
A lot of it’s biased, and it doesn’t really help me figure out who I’m going to vote for. How I fix that is I go and do research online.
➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.
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This looks like a building surrounded by grass and plants — and technically it is, just not at ground level. Tremco Inc. in Beachwood has designed this vegetative roof, and work is under way to retrofit the company’s decades-old facility with a new, energy-efficient façade.
Beachwood firm takes green building to task Tremco looks to set example by updating HQ using sustainable, less-costly approach By MICHELLE PARK mpark@crain.com
Though it’s a windy September day for a tour, the wind turbine near Tremco Inc. headquarters in Beachwood isn’t generating electricity yet. The majority of the 14,000 plants have yet to take root on what’s becoming the building’s vegetative roof, and work is under way to retrofit the structure with a new, energyefficient façade. Tremco, a provider of building products and services, is based in a building constructed in 1969. To rebuild would have cost more than $28 million, said Craig Nelson, vice president of construction operations for WTI, a Tremco subsidiary. So, the company went with a $5.5 million alternative that is nearing completion. Standing on the roof near the plants now growing there, Mr. Nelson calls the project a “paramount” case study of how decades-old buildings can be transformed into energy-efficient structures. It also is a showcase of sorts for sustainable building products proprietary to Tremco and other companies owned by its parent, RPM International Inc. of Medina. For instance, the roof of Tremco’s research and development center is covered in white, highly reflective material produced by Tremco and is the future home of a 100-kilowatt solar panel array. Likewise, Tremco offers vegetative roofing like the system it’s installing at its headquarters. The updates don’t stop there. Double-pane windows have replaced single-pane glass. Two large cisterns are in the ground where they’ll collect rainwater for irrigating the
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property. The old, incorrectly sized heating, ventilation and air conditioning system has been replaced. The project shows the company’s commitment to reducing its own carbon footprint, Tremco officials said. “It’s hard to tell a customer about why they should replace their windows (and) look at sustainability, when your own building is a 1969 version of building construction,” Mr. Nelson said. Most green industry leaders make an effort to walk the talk, but work of this magnitude done all at once to an existing structure is noteworthy, particularly when the entire building isn’t gutted, said Mike Opitz, vice president of LEED Resource Development for the U.S. Green Building Council. LEED is a green building certification program. “I would call that an uncommonly ambitious energy project,” Mr. Opitz said of Tremco’s initiative. Tremco intends for its headquarters to become a LEED Gold facility, the Green Building Council’s secondhighest rating. There currently are 56 LEED Gold buildings in Ohio, only seven of which were existing buildings when certified. Nationwide, there are 2,322 LEED Gold facilities.
Green projects sprout Even as the new construction
sector has suffered, LEED certifications — particularly those for existing buildings — have continued to grow, Mr. Opitz said. Notably, growth in LEED certifications also occurred four or five years ago, another period when new construction starts nosedived, Mr. Opitz said. Tough times in new construction, he noted, motivate building owners to refocus attention on improving assets they already have. According to the U.S. Green Building Council, the number of LEED-certified properties in Ohio in 2007 was 13. In 2008 — the first full year of the recession — it grew to 28, and in 2009, to 55. So far this year, 53 certifications have been recorded. The figures include new construction and existing buildings. Tremco executives note that the $5.5 million figure they use for improvements to the building is an at-cost number, not a price tag, as the company is buying products and services from itself. They are confident the project, which began in May and should wrap up by late October, will pay off. “Like many 40-year-old buildings, it was performing like a 40year-old building,” said Randall J. Korach, president of RPM Building Solutions Group. Tremco’s upgrades should result in an energy consumption drop of more than 60%, Mr. Korach said. ■
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Fresh: Grants provide consulting, land guidance continued from PAGE 3
The Fund’s motivation
“We’re not looking to develop one business that becomes huge, but rather a bunch of complementary businesses that can operate within the different counties,” said Casey Hoy, chair of Agricultural Ecosystems Management at the research and development center. “We hope this model can propel a self-sustaining industry,” Mr. Hoy said. Proponents of the agriculturebioscience industry cluster hope to boost Northeast Ohio’s share of the $60 billion specialty crop and livestock market that exists nationwide, while diversifying the economic base of the region. The agricultural center in Wooster so far has identified 12 projects that it hopes will contribute to a larger food production system in Northeast Ohio. Among them is a farm that supplies area restaurants with pasture-fed poultry and a company that hopes to convert farm waste to energy. “I see the Ag-Bio cluster as a brain trust that the agriculture industry and community members can tap into,” said Ariella Reback, owner of Green Pastures Poultry in Pepper Pike, which raises free-range chickens.
The agricultural center, the Fund for Our Economic Future and food industry leaders in Northeast Ohio began working in 2008 and into 2009 on the project’s first phase, which included identifying the dozen business plans — such as Ms. Reback’s farm, where she also raises ducks and turkeys — in which to invest. They selected those plans from more than 250 submissions. The Fund in June 2009 issued a $250,000 grant to finance the first phase, and last June issued another $200,000 to advance the initial projects. The grants are helping facilitate the growth of this cluster by, among other things, supporting business consulting services and pinpointing vacant land that can be converted into productive use. “From the Fund’s point of view, this is about making this type of initiative real,” said Brad Whitehead, the fund’s president. “We want to see a high-potential cluster turn into high reality.” Ms. Reback’s business — in its second year of operation — involves selling her pasture-raised poultry to local restaurants and consumers through farmers’ markets and commu-
nity-supported agriculture programs, members of which cover some of the upfront costs of a farm and receive a portion of its output in return. “My network is made up of my business, growers, processors, restaurants, customers and retailers,” said Ms. Reback, who formerly was a lawyer specializing in estate planning at Hahn Loeser & Parks LLP in Cleveland. “I’m part of a hub that’s very integrated.” Because of her involvement with the agricultural cluster project, Ms. Reback said she has been able to network with like-minded business owners, which has increased her operation’s exposure to potential buyers of her poultry. Further, the agricultural center is conducting studies on land quality, and once it makes available its data on soil conditions, Ms. Reback plans to identify other pieces of land on which she can raise more chickens, ducks and turkeys.
We’ll drink to that Another business plan among the initial 12 to win the Fund’s support is championed by Donniella Winchell, executive director of the Ohio Wine Producers Association. She is working with city planners in
Geneva on developing at a cost of at least $6 million a culinary and wine center in that city that would serve as an incubator for entrepreneurs who want to start their own wineries, restaurants or microbreweries. Ms. Winchell said planners have visited winery incubators throughout the nation to learn how their centers affect economic development. The New York Wine and Culinary Center that opened five years ago in Canandaigua, N.Y., for example, now has spurred the creation of eight white-tablecloth restaurants in downtown Canandaigua that previously didn’t exist, she said. “We plan on this center (in Geneva) being a long-term, sustainable operation that would grow the area into an international launching point for wines made in the U.S.,” Ms. Winchell said. The wine center’s planners also are working with Kent State University to create the state’s first two-year degree in wine making and wine growing. “And with Kent being a four-year institution, it gives students the chance to build upon that degree by furthering their education in business, sustainability or marketing,” Ms. Winchell said.
Waste not, want not One business plan that doesn’t involve food production but still is agriculture-related is from Quasar Energy Group, a company that wants to convert farm waste to energy by building a biodigester and generator on an Ashtabula County dairy farm.
Cattle manure would go into the digester, which would create methane gas that would power the generator and produce heat. The generator would supply power to illuminate hoop houses, or outdoor greenhouses, at the dairy farm in order to help extend the produce growing season. Quasar currently is operating at the agricultural center a pilot biodigester that turns plant waste into energy for the Wooster campus. Red Basket Farm, a Trumbull County vegetable grower, wants to grow more crops using the dairy farmer’s hoop houses if the waste-toenergy plan transpires. The farmer then would feed food waste back into the biodigester so that the process comes full circle, said Stuart Cordell, chair of the Ag-Bio cluster’s Leadership Council, which consists in part of representatives from food and wine producers and distributors throughout 16 counties in Northeast Ohio. “It’s very expensive to do this, and we’re trying to come up with ways to generate revenue to support this concept,” Mr. Cordell said. Proponents of the agriculture and bioscience industry cluster are in the early stages of setting up community investment portfolios, through which investors could fund these business plans, Mr. Cordell said. These initial 12 projects should be on their way to operating as businesses when the third phase of the initiative launches next summer, by which time the agricultural center expects to have identified more business proposals to foster. By the fourth phase, the initial business proposals should be fully operational, with more startups coming along, according to the agricultural center’s Mr. Hoy. ■
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OCTOBER 18-24, 2010
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
13
Tire tariffs open doors for U.S. Domestic industry can focus on growing market as cost of China imports rises By ED NOGA Rubber and Plastics News
The heavy tariffs levied by the U.S. government on tire imports from China gave the U.S. tire industry a three-year window to get itself competitive — a period that has seen an uptick in investment in domestic tire plants but not in employment, according to a retired University of Akron professor. The problem for the United Steelworkers — which initiated the tariff action that measurably cut back U.S. imports of Chinese-made consumer tires — is much of the investment in new technology at tire plants is in labor-saving equipment, according to Dennis Byrne, University of Akron professor emeritus of economics. “That means we’re still seeing falling employment in the industry,” Mr. Byrne said during a speech Sept. 22 at the International Tire Exhibition & Conference in Cleveland. It’s no picnic for suppliers to the tire manufacturers, either, Mr. Byrne said. “You’re going to see tremendous pressure on suppliers to come up with better ways to do things” while reducing costs for their tire manufacturer customers, he said. Mr. Byrne said he doesn’t know if three years are enough to allow U.S. manufacturers to gain a firm footing in the global market. “Certainly, it appears the U.S. is playing one trade game and everyone else is playing another,” he said. Mr. Byrne said the problem with tires “is that any country can produce one.” “All you have to do is take it apart and see what (the manufacturer) did. If you’re not worried about things like patents, you can actually find out,” he said. Any technologically advanced society can produce tires, “so you see tires made in places you really wouldn’t expect them, and, by and large, pretty good products.”
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Story from www.CrainsCleveland.com.
Rock Hall names board chairman The Rock and Roll Hall of Fame and Museum said William W. Rowley, president of Mercury Plastics Inc., has been named the chairman of the museum’s board of trustees. Mr. Rowley, who owns the Middlefield-based thermoplastic company, led the committee that brought the Rock Hall’s induction ceremony to Cleveland in 2009 and will serve in the same role when the ceremony returns to the city in 2012. In addition to Mr. Rowley, 11 new members have been named to the board. Mr. Rowley and the board will help steer the Rock Hall as it completes several key initiatives made possible by a $35 million capital campaign.
Tied closely to auto production — which domestically Mr. Byrne expects either will fall or just remain stable — tire production won’t be experiencing any serious growth. Meanwhile, Mr. Byrne said one out of every five vehicles produced in the world is from China. “They are going to export to the United States,” he said. “The first couple of years won’t be any good for them, then boom, just like the Japanese and Koreans.” Mr. Byrne said the U.S. tire market isn’t alone in feeling the impact of the rise in production in China and Asia. The difference is that the European Union is moving on the tire trade imbalance more quickly
and decisively than the U.S. did. “The European Union is looking very heavily into what’s going on with China,” Mr. Byrne said. Mr. Byrne said he sees India developing a presence in the tire field, though that nation has a smaller economy than China. Mr. Byrne also mentioned Brazil as a growing economy with an expanding tire industry presence. However, Mr. Byrne doesn’t expect major growth in the tire industry in Eastern Europe, which he views as a riskier investment. ■ Ed Noga is editor of Rubber & Plastics News, a sister publication of Crain’s Cleveland Business.
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
GOING PLACES
WWW.CRAINSCLEVELAND.COM
MANUFACTURING
JOB CHANGES
senior associates.
FINANCE
HEALTH CARE
HUNTINGTON NATIONAL BANK: William Haid to vice president, senior business banker.
PRIORITY HOME HEALTH CARE INC.: Tiara Brewster to client service representative.
APV ENGINEERED COATINGS: Thomas Venarge to president. EATON CORP.: Kelly M. Jasko to senior manager, communications, industrial sector.
MARKETING
FINANCIAL SERVICES
INSURANCE
SS&G: Ketan Solanki and Ryan Praschan to senior associates; Ellyn Lefko to manager; Nancy Novario to accounts payable manager; Tracy Gates to accounts receivable manager; Micki Hund to billing manager; Mary Henley to billing senior associate; Karyn Riccelli to payroll senior associate; Helen Simmons to operations manager; Mark Elliott to infrastructure manager; Jane Carrick and Diana Rogers to operations
MEDICAL MUTUAL OF OHIO: Lili Radic to director of education business; Yasmin Reccord to director, labor and national accounts.
KNOTICE: Ron Cuirle to software engineer III; Lisa Roman to account executive; Amanda Frederick to production artist; Mike Jedacek to senior technical project manager; Erin DiMauro to account coordinator.
LEGAL
NONPROFIT
SEELEY, SAVIDGE, EBERT & GOURASH CO.: Joseph P. Dunson to attorney.
CATHOLIC DIOCESE OF CLEVELAND: James P. Gulick to chief financial officer.
THOMPSON HINE LLP: James B. Aronoff to administrative partner.
ELIZA JENNINGS SENIOR CARE NETWORK: Elise Hara to vice
OCTOBER 18-24, 2010
president, legal affairs and general counsel. RECOVERY RESOURCES: Charlotte Rerko to chief operating officer; William Morgan to chief financial officer; Natalie Friedl to development director; Rachel Baker to grants and communications associate. Radic
Reccord
Gulick
Hara
Chess
Pollock
REAL ESTATE GRUBB & ELLIS CO.: Kevin J. Riley to vice president, Tenant Advisory Group.
SERVICE ACRT: Robert E. Chess to director, human resources. AKRON RUBBER DEVELOPMENT LABORATORY INC.: David Kostyal to senior microbiologist; Nicole Hershberger to technical adviser. INFOCISION MANAGEMENT CORP.:
Ron Pollock to director of client services. SAFEGUARD PROPERTIES: Michael Halpern to director of community initiatives. SKILLSOFT CORP.: Joanne Montz to learning consultant specialist. WINDWARD PARTNERS: David Perel to principal.
TECHNOLOGY OECONNECTION: Seth Galvarro to product manager; Michael Lawrence to program manager, OEM e-commerce.
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BECK CENTER FOR THE ARTS: Mary Kim Elkins (Eaton Corp.) to chair; Lucinda B. Einhouse to president, CEO; Margaret G. Weitzel to vice chair; Raymond L. Cushing to treasurer; John J. McGowan Jr. to secretary.
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INTERNATIONAL ASSOCIATION OF BUSINESS COMMUNICATORS: Sharon Lamcha (PNC Financial Services Group) to president; Kavita Sherman to immediate past president; Paula DePasquale to programming director; Jennifer Healy to treasurer; David Korvah to programming codirector; Sean Williams to membership director; Becky Casto to public relations director; Paris Wolfe to membership communications director. SISTERS OF CHARITY FOUNDATION OF CLEVELAND: Geoffrey S. Mearns (Cleveland State University) to chairman; Mary Lou Stricklin and June Taylor to vice chairs; Tom Pernsteiner to secretary; Alton Tinker to treasurer; Sr. Evelyn Flowers to congregation representative.
AWARDS JOELâ&#x20AC;&#x2122;S PLACE FOR CHILDREN: Kathy Stellato received the Monarch Volunteer of the Year Award.
Send information for Going Places to dhillyer@crain.com.
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20101018-NEWS--15-NAT-CCI-CL_--
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OCTOBER 18-24, 2010
TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
Date filed: Aug. 27, 2010 Type: Employer’s withholding, unemployment Amount: $5,270 St. Clair Automotive LLC 21100 Saint Clair Ave., Euclid ID: 34-1910628 Date filed: Aug. 17, 2010 Type: Employer’s withholding Amount: $5,026
LIENS FILED
LIENS RELEASED
Flexible Staffing Corp. 6521 Lorain Ave., Cleveland ID: 04-3712760 Date filed: Aug. 3, 2010 Type: Employer’s withholding Amount: $11,099
American Testing Co. 4450 Johnston Parkway, Cleveland ID: 34-1778808 Date filed: May 2, 2007 Date released: Aug. 17, 2010 Type: Employer’s withholding, failure to file complete return Amount: $36,247
Rade Marich LLC 1296 Arlington Road, Lakewood ID: 30-0458974 Date filed: Aug. 17, 2010 Type: Employer’s withholding, unemployment Amount: $10,691 Robtan Enterprises Inc. 1147 E. Miner Road, Mayfield Heights ID: 34-1816896 Date filed: Aug. 10, 2010 Type: Failure to file complete return Amount: $10,181 NIC-Sand Enterprises LLC 250 Sheldon Road, Berea ID: 34-1972637 Date filed: Aug. 31, 2010 Type: Civil penalty assessment Amount: $9,887 Baidoun Inc. 12807 Larchmere Blvd., Shaker Heights ID: 20-0767794 Date filed: Aug. 19, 2010 Type: Employer’s withholding, unemployment, failure to file complete return Amount: $9,841 Assad-Crea & Associates Inc. T/A Assad & Crea Realty Group 6363 York Road, Suite 101, Cleveland ID: 34-1353791 Date filed: Aug. 5, 2010 Type: Corporate income Amount: $9,337 JCW Materials & Supply Inc. 9900 York Theta Drive, North Royalton ID: 34-1969379 Date filed: Aug. 12, 2010 Type: Employer’s withholding, failure to file complete return Amount: $9,085 AMJ Construction Inc. 4135 E. 142nd St., Cleveland ID: 26-2699007 Date filed: Aug. 31, 2010 Type: Employer’s withholding, corporate income Amount: $8,292
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Bill-Mar Specialty Co. 13405 York Road, North Royalton ID: 34-1012116 Date filed: Sept. 21, 2006 Date released: Aug. 10, 2010 Type: Employer’s withholding Amount: $28,032 Charles P. Braman & Co. 23300 Chagrin Blvd., Suite 102, Beachwood ID: 34-0877051 Date filed: Aug. 18, 2008 Date released: Aug. 17, 2010 Type: Employer’s withholding Amount: $6,791 EConsulting Inc. 28283 Center Ridge Road, Suite E-22, Westlake ID: 31-1670719 Date filed: June 4, 2008 Date released: Aug. 17, 2010 Type: Employer’s withholding,
unemployment Amount: $6,876 Greater Abyssinian Housing Corp. 540 E. 105th St., Suite 100, Cleveland ID: 34-1446519 Date filed: Aug. 6, 2008 Date released: Aug. 17, 2010 Type: Return of organization exempt from income tax Amount: $37,540 Hastings Home Health Center Inc. 15210 Industrial Parkway, Cleveland ID: 34-1344019 Date filed: July 1, 2010 Date released: Aug. 17, 2010 Type: Employer’s withholding Amount: $11,435 JFS Corp. T/A Anago of Cleveland 16600 W. Sprague Road, Suite 190, Middleburg Heights ID: 34-1924428
Date filed: Feb. 5, 2007 Date released: Aug. 3, 2010 Type: Employer’s withholding Amount: $30,852 JFS Corp. T/A Anago of Cleveland 16600 W. Sprague Road, Suite 190, Middleburg Heights ID: 34-1924428 Date filed: July 22, 2010 Date released: Aug. 24, 2010 Type: Employer’s withholding, unemployment Amount: $12,085 Paul F. Smith Jr. DDS Inc. 20119 Farnsleigh Road, Suite 207, Shaker Heights ID: 34-1337892 Date filed: April 29, 2010 Date released: Aug. 31, 2010 Type: Employer’s withholding, unemployment Amount: $5,164
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Steel Shearing Inc. P.O. Box 603060, Cleveland ID: 34-1373143 Date filed: Aug. 17, 2010 Type: Corporate income Amount: $7,990 Don Grande Inc. 4279 Mayfield Road, South Euclid ID: 34-1842742 Date filed: Aug. 31, 2010 Type: Civil penalty assessment Amount: $7,950 OBO Trucking Co. 2824 E. 75th St., Cleveland ID: 34-1342845 Date filed: Aug. 24, 2010 Type: Heavy highway vehicle use tax Amount: $6,114 S & S Heating Cooling & Sheet Metal Inc. 10012 Akins Road, North Royalton ID: 34-1660484
15
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
OCTOBER 18-24, 2010
Worker co-ops gain momentum after one year By MICHELLE PARK mpark@crain.com
A year after two worker cooperatives began operating in Cleveland, one of the companies is turning a profit ahead of schedule and the other is on pace to break even by yearâ&#x20AC;&#x2122;s end. Formed with the goals of building wealth and employing residents of low-income neighborhoods, Ohio Cooperative Solar and Evergreen Cooperative Laundry are set up so that their employees, when promoted to worker-owner status, share in profits and control the businesses. Those involved in the coopera-
tivesâ&#x20AC;&#x2122; formation and day-to-day operations are deeming their inaugural year a success. â&#x20AC;&#x153;At the same time that weâ&#x20AC;&#x2122;ve had the worst economic crisis in this country (in years) , itâ&#x20AC;&#x2122;s really amazing that we could launch two businesses in 18 months,â&#x20AC;? said India Pierce Lee, program director for neighborhoods, housing and community development for The Cleveland Foundation. Both businesses were launched last fall in the Glenville Enterprise Center on East 105th Street. The forprofit companies were pioneered by Evergreen Cooperatives, an initiative that is part of a larger effort to revitalize neighborhoods around
Clevelandâ&#x20AC;&#x2122;s University Circle.
Testing a model Ohio Cooperative Solar, which installs and maintains solar panel arrays and also weatherizes buildings, became profitable in five months â&#x20AC;&#x201D; four months earlier than its business plan projected. It employs 23 people, exceeding its business planâ&#x20AC;&#x2122;s projection of 15, CEO Stephen Kiel said. The company has scored contracts with the Cleveland Clinic, University Hospitals and Case Western Reserve University â&#x20AC;&#x201D; all so-called anchor institutions and partners in the Evergreen Cooperatives initiative. The company has procured munic-
ipal work in Euclid, too. Growth came slower for Evergreen Cooperative Laundry, Ms. Lee said. However, CEO Bob Harvey notes that the companyâ&#x20AC;&#x2122;s laundry volume has risen 74% since June, bolstered by a deal in August with Parma Community General Hospital. The laundry cleans commercial health care linens for hospitals and nursing homes. Though the business currently runs in the red, it is on schedule to break even by yearâ&#x20AC;&#x2122;s end just as its business plan prescribes, Mr. Harvey said. The laundry started with eight workers and now has 25, Mr. Harvey said. The ultimate goal is to launch
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over the next decade or two 20 or more worker cooperatives, which collectively would hire up to 5,000 local people, Ms. Lee said. Construction of a facility for the third worker cooperative â&#x20AC;&#x201D; a greenhouse called Green City Growers â&#x20AC;&#x201D; is slated to begin in the spring. Evergreenâ&#x20AC;&#x2122;s model is attracting national attention, Ms. Lee noted. Leaders from cities including Atlanta, Pittsburgh and Youngstown are exploring how they, too, might improve their communities in similar ways.
A focus beyond profit The worker cooperatives focus on hiring people who live in a 4.5square-mile area in and around University Circle, an area chosen for its median income of about $18,000 a year and indicators of risk among its residents, including water shut-offs and foreclosures, Ms. Lee said. A month into the laundryâ&#x20AC;&#x2122;s operations, management had received 500 employment applications, Ms. Lee said. â&#x20AC;&#x153;If thereâ&#x20AC;&#x2122;s anything that keeps us up at night, itâ&#x20AC;&#x2122;s how do we create more businesses fast enough,â&#x20AC;? she said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not only creating employment for people â&#x20AC;Ś but weâ&#x20AC;&#x2122;re creating opportunities where they have a say in those companies,â&#x20AC;? Ms. Lee said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s not something you get if you walk into a regular job.â&#x20AC;? Thirteen of the solar and laundry employees became worker-owners in late September, meaning they are eligible for profit-sharing. Keith Parkham, technical manager of the laundry, was one of them. A resident of the University Circle neighborhood, Mr. Parkham sees â&#x20AC;&#x153;a lot of boarded-up homes and people moving out because of the job situation.â&#x20AC;? However, as news has spread about the worker cooperatives, people have shown enthusiasm, he said. â&#x20AC;&#x153;All of these politicians promise jobs,â&#x20AC;? Mr. Parkham said. â&#x20AC;&#x153;But a few nonprofit organizations, theyâ&#x20AC;&#x2122;re not on the move promising jobs. They are creating jobs.â&#x20AC;? â&#x2013;
ON THE WEB
Story from www.CrainsCleveland.com.
Linsalata acquires swimwear maker
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Private equity firm Linsalata Capital Partners of Mayfield Heights has acquired Apparel Ventures Inc. through its portfolio company, Manhattan Beachwear Inc. The acquisition closed on Oct. 5, according to a news release from Linsalata. Terms were not disclosed. Manhattan Beachwear and Apparel Ventures both are designers, manufacturers and marketers of junior, contemporary and womenâ&#x20AC;&#x2122;s swimwear. Apparel Venturesâ&#x20AC;&#x2122; swimwear brands include proprietary and licensed brands distributed to national department stores, luxury boutiques and specialty swimwear chains. Linsalata said the combined company will be headquartered in Los Angeles, with additional facilities in New York, Mexico and Portugal, along with partner relationships throughout Southeast Asia. Allan Colvin, CEO of Manhattan Beachwear, will lead the combined company, which will operate under the Manhattan Beachwear name.
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or the fourth year in a row, Crain’s Cleveland Business is honoring the area’s top fiscal officers with its CFO of the Year Awards. The nominees all have led their organizations through some fairly tough times, to stay the least, each providing essential guidance and direction. Nearly 40 nominations were submitted for consideration as part of this year’s CFO of the Year program. An independent panel of judges reviewed the nominees, taking into account the following: candidate backgrounds; how the nominee contributed to the company’s growth and/or profitability; how the nominee contributed to other areas of corporate management; and how the nominee made contributions outside the company (such as social, nonprofit, family, faith-based and community involvement. This year’s judges were Joseph F. Maslowski of Roetzel & Andress; Joe Roman of the Greater Cleveland Partnership; Marilyn A. Eisele of Five Star Technologies; James Malz of JPMorgan Chase; and Thomas Russ of Morgan Stanley Smith Barney. (For more on the judges, see Page 29.) New this year to the CFO of the Year program is the Lifetime Achievement Award, designed to recognize a current or former senior financial executive who has exhibited exceptional performance, leadership, integrity, strategy and growth throughout their career while bettering the finance profession overall. (For more on the Lifetime Achievement Award and the recipient, see Page 33.)
ATTEND THE EVENT
MEET THE FINALISTS
Crain’s 2010 CFO of the Year honorees will be announced at a networking event on Tuesday, Oct. 26, at LaCentre Conference and Banquet Facility in Westlake. Pre-event networking and registration opens at 5:30 p.m. For more information and to register for the event, visit www.crainscleveland .com/marketing/cforegister.html or call marketing manager Christian Hendricks at (216) 771-5182.
RICHARD BOYSON
CRAIG FOLTIN
FRANK MERCURI
SUSAN SUVAK
THERAPY PARTNERS
CUYAHOGA COMMUNITY COLLEGE
VOCON INC.
MAJESTIC STEEL USA INC.
PAGE 22
PAGE 30
ALSO IN THIS SECTION ■ A full list of the 2010 CFO of the Year nominees PAGE 25
PAGE 18
PAGE 20
LAURIE BRLAS
CHRIS HYLAND
ROBERT G. O’BRIEN
CLIFFS NATURAL RESOURCES INC.
HYLAND SOFTWARE
FOREST CITY ENTERPRISES INC.
PAGE 18
PAGE 20
PAGE 22
MARK T. CLARK FIRSTENERGY CORP. PAGE 18
VITAMIX CORP.
UNIVERSITY HOSPITALS PAGE 31
BRIAN S. KENYON
VINCENT PETRELLA
ROCK AND ROLL HALL OF FAME AND MUSEUM
THE LINCOLN ELECTRIC CO.
ANDREW TANNER
PAGE 24
THE NRP GROUP LLC PAGE 31
PAGE 20
LOREE W. CONNORS
MICHAEL A. SZUBSKI
MARK J. PLUSH KEITHLEY INSTRUMENTS INC.
PETE WATERS
JO-ANN FABRIC AND CRAFT STORES
PAGE 24
DEALER TIRE LLC
PAGE 21
GREGORY ROBINSON
MARK R. WIDMAR
JAMES KERR
PAGE 32
■ Photos from last year’s CFO of the Year awards reception PAGE 26
PAGE 19
■ Past winners PAGE 28
CEDAR FAIR ENTERTAINMENT
FOMO PRODUCTS INC.
SAFEGUARD PROPERTIES LLC
GRAFTECH INTERNATIONAL LTD.
PAGE 19
PAGE 21
PAGE 30
PAGE 32
■ Lifetime achievement award PAGE 33
PETER J. CRAGE
RONALD R. KOZAK
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CRAIN’S CLEVELAND BUSINESS
RICHARD BOYSON THERAPY PARTNERS Middleburg Heights NUMBER OF EMPLOYEES: 475 2009 REVENUE: $18.4 million
R
ichard Boyson has been an important asset in helping Therapy Partners reduce its expenses and become more profitable and efficient since January 2008 when he joined the operation as CFO. “The ability to manage our finances in a very turbulent year, with significant growth, and cash flow challenges, has been amazing to watch,” the nomination said. “Rich paid for himself four times over.” Further, what makes the CFO of
LAURIE BRLAS CLIFFS NATURAL RESOURCES INC. Cleveland NUMBER OF EMPLOYEES: 200 local/5,404 global 2009 REVENUE: $2.3 billion
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aurie Brlas not only is the CFO of a public company, she’s helping to manage one of the superstars of the Cleveland business arena, Cliffs Natural Resources. A lot of people don’t know that the company is a world leader when it comes to the iron ore and metallurgical coal businesses. They’re more familiar with its old name, Cleveland-Cliffs, which hearkens back to when the company was heavily involved in Great Lakes shipping. Today, Cliffs sells more than $2.3 billion of iron ore, coal and steelmaking materials such as chromite in the
OCTOBER 18-24, 2010
the therapy services provider even more valuable is his approach as a team player with more than a decade of operational and financial experience in long-term care. As CFO, Mr. Boyson is responsible for all financial operations for Therapy Partners, which provides physical, occupational and speech therapy to long-term care organizations. He also serves on the company’s senior management team. He plays a key role in the sales process by conducting financial analyses, which helps the operation market itself to new clients, providing both a six-month and 12-month outlook for all new customers.
Mr. Boyson also has helped Therapy Partners cut unnecessary spending by reducing its reliance on contract therapists, who typically command higher hourly wages than fulltime employees. Last year, he also assisted in making Therapy Partners self-funded for workers compensation, short-term disability and health insurance, which saves the company about $400,000 annually. Mr. Boyson also served for five years as CFO and director of facility services at Laurel Lake Retirement Community in Hudson, and he was director of financial operations for the Eliza Jennings Senior Care Network in Lakewood
United States, China, India, Brazil and other nations. Ms. Brlas is charged with tracking and managing the finances for that empire, not to mention helping to strategize the company’s growth and success. “In addition to performing the customary duties of a company CFO, Laurie Brlas has played an instrumental role in Cliffs’ strategic decision-making, building a worldclass finance department to support Cliffs’ transformation into an international mining and natural resources entity,” the nomination said. That work has paid off, too. Since taking over as CFO and company treasurer in 2006, Ms. Brlas has ramped up the company’s investor relations function with a program, according to the nomination, that “helped reposition Cliffs from a company under-followed by Wall Street to a ‘must-own’ stock discussed by Bloomberg and CNBC.” Since Ms. Brlas joined Cliffs, it has entered the Fortune 1000 and
DID YOU KNOW? ■ Cliffs Natural Resources has been a part of Cleveland for 163 years. To emphasize that history and the company’s continued commitment to the area, the mining giant launched on Aug. 30 a “Witness” advertising campaign that plays off the departure of LeBron James. ■ Cliffs Natural Resources’ was founded in 1847 as the Cleveland Iron Co. Its first stock was issued on Nov. 27, 1847. become a component of the S&P 500 Index. Earlier this year, Cliffs was named the ninth-best performing company in the S&P 500 based on stock performance over five years. Prior to coming to Cliffs, she already had 20 years of experience in finance, including six years as CFO of sterilization equipment maker Steris Corp. in Mentor, just prior to joining Cliffs in 2006.
Taft celebrates its 125th Advent of personal computing Cleveland Cavaliers enter the NBA Astronauts walk on the moon Mack Swigert authors Taft-Hartley Labor Act Robert A. Taft elected to U.S. Senate Elliott Ness becomes Safety Director of Cleveland Firm is founded
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from 1996 to 2002. He received his bachelor’s degree in business administration, with a concentration in accounting, in 1992 from Kent State University. Mr. Boyson serves as a board member on the Humility of Mary Housing Foundation, which promotes and strengthens the selfsufficiency of individuals and their families, especially the poor, through services and housing. “What makes Rich stand out even more than his technical ability as a CFO is his warm, open and kind personality,” the nomination said. “He is extremely approachable and a strong team player. Rich takes the human approach when looking at numbers and considers his audience.”
MARK T. CLARK
DID YOU KNOW? ■ The Middleburg Heights-based firm provides rehabilitation services to a variety of clients, including long-term care communities. ■ In 2006, The Eliza Jennings Senior Care Network sold its controlling interest in Therapy Partners to private investment group TDK Management LLC. ■ In addition to vice president of finance Mr. Boyson, other members of Therapy Partners’ leadership team include James W. Rogerson, president; Lisa Stumpf, vice president of operations; and Shelly Grisik, vice president of community relations. SOURCES: THERAPYPARTNERSOHIO.COM; CRAIN’S RESEARCH
DID YOU KNOW?
FIRSTENERGY CORP. Akron NUMBER OF EMPLOYEES: 5,967 local/13,379 global 2009 REVENUE: $13 billion
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f Mark Clark stays on as CFO, there’s no telling how large Akron-based FirstEnergy Corp. might become. The CFO is credited with playing key roles in two acquisitions that already have doubled the size of the company — its 1997 acquisition of Centerior Energy and then again with its 2001 acquisition of New Jersey’s GPU Inc. “As a result of these mergers, revenues increased from $5 billion annually in 1997 to $13 billion last year,” the nomination said. “He also led the efforts to negotiate terms of the pending merger with Greensburg, Pa.-based Allegheny Energy. With the completion of this merger, FirstEnergy is expected to generate annual revenues of more than $16 billion.” An Akron native, Mr. Clark has been with the company since 1976, when he joined its predecessor, Ohio Edison. In addition to playing a key role in its mergers and acquisitions, Mr. Clark oversees the typical CFO functions of investor relations, accounting, risk manage-
■ FirstEnergy Corp.’s seven electric utility operating companies comprise the nation’s fifth-largest investor-owned electric system, serving 4.5 million customers. ■ The utility’s companies have spent more than $7 billion on environmental protection efforts since the Clean Air Act became law in 1970. ■ The company is testing new environmental technologies and expects to complete nearly $2 billion in new emission control projects over the next few years. ment — and then some. “Additionally, Mark is responsible for business development, integrated business planning, information technology, security, strategic planning and supply chain” management, the nomination said. Mr. Clark became CFO in 2009. But, according to the nomination, he has always been a key contributor. Before being named to the top financial post, Mr. Clark already was in charge of strategic planning, including acquisitions and divestitures. Mr. Clark also is credited with managing FirstEnergy’s finances and balance sheet through the recent economic downturn and positioning it for future growth. “As a result of his actions to strengthen the company’s balance sheet, FirstEnergy was in the position to capitalize on the $8.5 billion merger with Allegheny Energy,” the nomination said.
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OCTOBER 18-24, 2010
LOREE W. CONNORS
PETER J. CRAGE
VITAMIX CORP. Olmsted Falls NUMBER OF EMPLOYEES: 237 2009 REVENUE: $122 million
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s CFO of Vitamix Corp., Loree W. Connors oversees the finance, accounting, legal and information technology departments. But her work — and commitment — goes well beyond those duties, from software implementation to internal communications to even the employee entertainment committee. “Loree Connors loves what she does at Vitamix,” the nomination said. “She loves the company, the product, the people and the possibilities. She is keenly involved in our strategic planning process, not just as the expert in the financial aspect, but as a keeper of our legacy and driver of our vision.” Ms. Connors came to Vitamix in 2005, and since that time the company’s profitability has doubled. Prior to joining Vitamix, Ms. Connors’ previous experience includes time as principal at Hillow Getsay & Connors Ltd. in Westlake and as a senior tax accountant with KPMG Peat Marwick. She received her master’s degree in 2008 from the Case Western Reserve University Weatherhead School of Management, and her undergraduate degree from Indiana University. In 2008, Ms. Connors spearheaded a 12-month process to identify the firm’s strategic framework, and the following year she facilitated a project to refine the firm’s vision and mission. In addition to being CFO, Ms. Connors is called a “life-long learner,” bringing her expertise to the job and creating an in-office library for staff members to borrow books. “She comes in on Saturday and during our third shift to get to know the employees that are working at all hours,” the nomination said. “She cares for our employees, suppliers, vendors and customers in a very personal way, and takes the time to get to know them, their family, their dreams and ambitions.”
CEDAR FAIR ENTERTAINMENT CO. Sandusky NUMBER OF EMPLOYEES: 1,700 full time/34,600 seasonal and part time 2009 REVENUE: $916.1 million
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$1.4 billion acquisition can keep a CFO busy. Cedar Fair Entertainment Co. did exactly that in June 2006 by buying Paramount Parks, which included Kings Island in Cincinnati. When Peter J. Crage took on the company’s CFO role in July 2005, Cedar Fair operated seven amusement parks, five outdoor water parks, one indoor water park and six hotels. After the Paramount deal and others, Cedar Fair now controls 11 amusement parks and six outdoor
water parks, in addition to the indoor park and the hotels. The expansion has led to an estimated 61% jump in revenue. Mr. Crage led the financial due diligence process in the Paramount deal, secured its financing and communicated the long-term strategy to investors and customers. The acquisition also has created the need for efficiency, and Mr. Crage also has led that charge: Among other things, he’s consolidated payroll systems and introduced “new operational and financial reporting systems that allow for more efficient and effective consolidation and comparisons” of the company’s 17 properties. “He has used his experience to build on the company’s successes and drive our business strategy
SOURCE: VITAMIX.COM
DID YOU KNOW? ■ Cedar Fair went public on April 29, 1987, and it trades on the New York Stock Exchange under the ticker symbol “FUN.” ■ Cedar Fair is structured as a Master Limited Partnership, as opposed to a corporation. MLPs are taxed at the unitholder level and generally not subject to federal or state income tax. ■ The company in September earned top honors at Amusement Today’s 2010 Golden Ticket Awards celebration, including the “Best Amusement Park in the World” for its flagship, Cedar Point. This marks the 13th consecutive year that Cedar Point has earned that title. SOURCE: CEDARFAIR.COM
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DID YOU KNOW? ■ In 1937, founder W.G. Barnard introduced the first Vitamix machine. ■ The first infomercial for the company was filmed in 1949 at WEWS-TV in Cleveland, featuring Mr. Barnard and his product. ■ Vitamix in May launched a new logo and rebranded itself to reflect the essence of its vision. Under the new tagline, “Plug Into the Movement,” the company aims to “liberate the world from conventional food and beverage preparation boundaries.” ■ McDonald’s uses the Vitamix frozen dessert blender to make McFlurrys. Other commercial clients have included Applebee’s, Starbucks and Baskin-Robbins. ■ In 1998, the Vita-Prep was introduced to the Culinary Institute of America in New York and quickly became the tool of choice for gourmet chefs worldwide.
forward,” the nomination said. Additionally, Mr. Crage has led the company’s debt refinancing through credit facilities of $1.8 billion, and has reduced the company’s debt load by $120 million. “One of Peter’s most valuable qualities as a CFO is his ability to communicate with others,” the nomination said. “Throughout his career, Peter has concentrated in gaining experience in all aspects of the business, including operations. This experience has allowed him to work closely with other departments and successfully introduce new processes to improve operational and financial reporting requirements, both at an individual park level and at the corporate level.”
* Results may vary depending on your business situation.
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CRAIG FOLTIN CUYAHOGA COMMUNITY COLLEGE Cleveland NUMBER OF EMPLOYEES: 3,000 2009 REVENUE: $277 million
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aking the financial reins at Ohio’s largest community college at a time when state financing was slashed and tax support was dwindling due to plummeting property values seems like a lofty task. But for Craig Foltin, it was no sweat. Dr. Foltin joined Cuyahoga Community College after almost 15 years as an elected official, making him no stranger to finances. He first was elected as Lorain city auditor in 1993 and as the city’s mayor in 2000. Resigning in July 2008 to work for Tri-C, Dr. Foltin left behind a list of accomplishments, including the development of the city’s first long-range capital plan. Since arriving at Tri-C, Dr. Foltin has been tasked with maintaining or increasing student service levels while cutting costs throughout the
OCTOBER 18-24, 2010
institution. Dr. Foltin, for example, assessed the college’s telecommunications partnerships and identified about $100,000 in annual savings. He also formed a partnership with Barnes & Noble to operate the college’s bookstores, which yielded a net profit of almost $1.1 million in fiscal year 2010. In addition, he guided the implementation of a bulk electric service purchase program, which saved the college more than $400,000 in energy costs during the last fiscal year. Under Dr. Foltin’s watch, Tri-C also has taken on several green initiatives. Under his leadership, for example, the college has reduced energy use by about 29%. Dr. Foltin’s division negotiated a partnership with Xerox to manage a print service program that would reduce post-consumer waste of nearly 150 network printers. “All of these sustainable initiatives show that Dr. Foltin’s leadership is concerned with more than the college’s bottom line,” the nomination said. “His commitment encompasses the long-term health and sustainability of the college, ensuring its ability to provide much needed education to Cuyahoga County for years to come.”
DID YOU KNOW? ■ Opened in 1963, the college is Ohio’s oldest and largest public community college. ■ The college set its second consecutive enrollment record this fall, expecting 35,000 students. That’s an increase of nearly 15% from last fall. ■ More than 85% of Tri-C graduates find jobs in Northeast Ohio. ■ Eighty-seven percent of graduates would recommend or strongly recommend Tri-C to someone seeking the same kind of program they studied. ■ Serving 55,000 credit and non-credit students annually, Tri-C offers 1,000 credit courses in more than 140 programs and liberal arts curricula. ■ Focusing on sustainability, the college cut energy use by an estimated 29% from 2000-2009. ■ President Barack Obama in September visited Tri-C’s West Campus in Parma; he also appeared at Tri-C in 2007, when he was an Illinois senator and prior to his presidential run. ■ Student ages range from 15 to 75-plus. SOURCES: TRI-C.EDU; CRAIN’S RESEARCH
CHRIS HYLAND HYLAND SOFTWARE Westlake NUMBER OF EMPLOYEES: 1,000 global 2009 REVENUE: $133 million
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t’s easy to see the fruits of Chris Hyland’s efforts at Hyland Software — partly because Mr. Hyland makes it that way. The older brother of CEO A.J. Hyland has gone out of his way to make sure employees are familiar with the document management software company’s finances. The privately held company doesn’t have to follow Sarbanes-Oxley accounting regulations, but it does so anyway. And at the CFO’s suggestion, the company holds quarterly meetings with all its employees to discuss its performance. Those meetings proved particularly important in 2009, giving Mr. Hyland a forum to explain the recession’s impact on the company and to encourage every employee to help the firm get through it. By the end of the year, the company had increased sales and avoided layoffs. “He’s successfully led the company through dozens of consecutive profitable quarters, a recapitalization, four acquisitions and a challenging 2009 — which ended with an almost 9% year-over-year growth,”
BRIAN S. KENYON THE ROCK AND ROLL HALL OF FAME AND MUSEUM Cleveland NUMBER OF EMPLOYEES: 105 2009 REVENUE: $35 million
The faculty and staff of Cuyahoga Community College congratulate
Dr. Craig Foltin, our Executive Vice President of Finance and Administration, for being nominated as one of Northeast Ohio’s Top CFOs of the Year! CONGRATULATIONS TO ALL HONOREES ON BEING NOMINATED FOR YOUR OUTSTANDING ACCOMPLISHMENTS.
Where futures begin www.tri-c.edu
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800-954-8742
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stute, efficient and cautious” aren’t words you typically associate with rock ’n’ roll, but they’re exactly the qualities you want in a CFO. Welcome to the bifurcated world of Brian S. Kenyon, who in 1999 left the for-profit sector — his corporate career included stints at Coopers & Lybrand, Nacco Industries Inc. and Signature Brands — to become vice president for finance and administration at the nonprofit Rock Hall. Mr. Kenyon “possesses a degree of financial savvy that is unusual in any situation but is especially remarkable given the economy of the last few years,” according to nomination, which also referred to him as astute, efficient and cautious. “He has guided us through the treacherous water of the economic downturn without so much as a scratch,” the nomination said. Indeed, the Rock Hall in 2009 ended its fiscal year in the black for the 10th consecutive year — not coincidentally, the 10th anniversary of Mr. Kenyon’s tenure as CFO. That kind of financial stability brings major benefits that visitors to the Rock Hall are sure to notice. In 2004, for instance, the Rock Hall’s strong financial standing
DID YOU KNOW? ■ By far Northeast Ohio’s largest software company, Hyland — which produces document management software — employs more than 1,000 people. ■ Its CEO, A.J. Hyland, assumed that role when he was 29. Previously, his older brother, Packy Hyland Jr. had been CEO. ■ In mid-2007, private equity firm Thoma Bravo LLC bought a majority stake in the company for $265 million. ■ Hyland has offices across the country and world, including in Irvine, Calif.; Reading, Mass.; Lincoln, Neb.; and Brazil, England and Japan. SOURCES: HYLAND.COM; CRAIN’S RESEARCH
the nomination said. “But as impressive as these statistics may be, Chris’ recognition is much deserved because for him, his job isn’t just about numbers.” His push for transparency is visible at the company’s headquarters: Pages from annual reports are framed on the walls, the cubicles are low and the walls of offices and meeting rooms are made of glass. Mr. Hyland has made broader contributions as well. For instance, he led a team that worked with the Chicago-based private equity firm that bought a majority stake in the software company in 2008. Mr. Hyland also promotes volunteerism among Hyland Software employees and sits on several local boards.
DID YOU KNOW? ■ Cleveland was chosen as the host city for the Rock Hall in May 1986, with groundbreaking in 1993 and the hall’s doors opening in 1995. ■ Since opening in 1995, the museum has welcomed more than 7.5 million visitors and driven more than $1.5 billion in economic impact to the regional economy. Annually, the Rock Hall generates more than $107 million in economic impact. ■ In August, the New York Citybased Rock and Roll Hall of Fame Foundation made a $5 million gift to the Rock Hall, allowing the latter to establish its first endowment. SOURCES: ROCKHALL.COM; CRAIN’S RESEARCH
enabled the Cleveland-Cuyahoga County Port Authority to issue $18.6 million in bonds secured by the county bed tax, “an act that had a direct impact of $4.5 million in the museum’s general operations and capital improvements.” In 2009, the county issued another $10 million in bonds, also secured by the bed tax, to benefit the museum’s $35 million capital campaign. That campaign has led to the construction of a Rock Hall library and archives on the campus of Cuyahoga Community College and is funding a major redesign of the museum. The nomination said Mr. Kenyon “takes an active role in initiating policy changes and designing workable solutions to financial issues.” He’s also a fun guy to have around. Mr. Kenyon “brings to his job an unusual combination of financial and management know-how, a love of the art form we celebrate and a sense of humor that is all too rare in the world of finance.”
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OCTOBER 18-24, 2010
JAMES KERR JO-ANN FABRIC AND CRAFT STORES Hudson NUMBER OF EMPLOYEES: 1,671 local/22,420 global 2009 REVENUE: $1.99 billion
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ames Kerr brings his own craft of fiscal stewardship to a fabric and specialty crafts retailer that continues to generate growth in an industry that has seen much retraction throughout the recession. Since Mr. Kerr was promoted four years ago to CFO of the 746-
store operation, the retailer’s market cap has quadrupled. “Jim is a key member of the executive team that has led a remarkable turnaround in performance at Jo-Ann Fabric and Craft Stores over the past four years,” the nomination said. “Jim Kerr’s financial leadership helped the company to achieve all-time record financial results for sales, margin, EBIDTA (earnings before interest, taxes, depreciation and amortization), net income and earnings per share in fiscal 2010.
“Jim is the primary reason Jo-Ann Stores was recently recognized by Forbes as one of the 100 Most Trustworthy Companies in America,” in 2010, the nomination said. Mr. Kerr and his leadership team since 2006 have hired and developed the company’s finance team. Mr. Kerr during this time has purchased, created and refined dozens of analytical and reporting tools to help Jo-Ann Stores manage business more effectively and profitably, the
nomination said. Some of his newer initiatives include: updated weekly corporate profit-and-loss forecasts, profitand-loss reports for merchandising teams and sales forecasting models for new stores. Therefore, the organization can continue to focus on its operational priorities such as new store growth and remodels, gross margin expansion and better management training. Mr. Kerr also plays a key role in determining the best locations for new stores while forecasting their profitability and performance
DID YOU KNOW? ■ Jo-Ann Fabric and Craft Stores ranked No. 23 on Crain’s 2010 Largest Public Companies list, with a market value of $1.28 billion — a 184% jump over last year. ■ The nation’s largest specialty retailer of fabrics and one of the largest specialty retailers of crafts as of January operates 746 stores in 48 states. Net sales at those stores were approximately $1.7 million in fiscal 2010. SOURCES: JOANN.COM; CRAIN’S RESEARCH
RONALD R. KOZAK FOMO PRODUCTS INC. Norton NUMBER OF EMPLOYEES: 75 2009 REVENUE: $30.9 million
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he construction industry downturn didn’t catch Fomo Products Inc. by surprise. And CFO and executive vice president Ronald R. Kozak gets a large share of the credit for the firm’s ability to weather that storm. According to the nomination, Mr. Kozak began a cost-cutting program long before the recession hit, helping the company finish the 2009 fiscal year with recordsetting profitability and beginning a change in company culture that emphasizes a careful eye on costs. “Kozak’s implementation of his unique cost-cutting and strategic spending model is a direct translation to the return on investment Fomo Products is able to realize,” the nomination said. “From $600,000 cost savings in 2009 to a projected $1,000,000 cost savings in 2011, Kozak’s devotion to smart spending is leading Fomo Products on a steady, profitable path.” The cost cutting started with the vertical integration of Fomo Products’ business, bringing the assembly of a key product component in-house and an energy-efficient retrofit of company headquarters in Norton. The integration strategy brought the bulk of the 2009 savings, and the energy-efficient headquarters is cutting energy consumption by 15% annually. Mr. Kozak, who also manages the firm’s human resources department, is described as a mentor. “Kozak is a strong believer in the philosophy of ‘achieving is doing,’” the nomination said. “(H)e feels success comes through meticulous planning, actionable results and extensive, proactive industry involvement from company figure-heads, such as himself.”
DID YOU KNOW? ■ Fomo was founded in 1975 and now is a member of the FLM Group of Companies, which holds 130 patents worldwide in foam, adhesive and delivery system technologies. ■ The company participates on various building code development committees, task groups and associations. That experience provides it perspective on how its foam insulation, sealants, adhesives and spray foam systems are used. SOURCE: FOMO.COM
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 18-24, 2010
FRANK MERCURI VOCON Cleveland NUMBER OF EMPLOYEES: 65 2009 REVENUE: $13.8 million
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DID YOU KNOW? ■ Vocon was founded in 1987. Its employees work in a vintage 1920s building at 3142 Prospect Ave. in Cleveland’s Midtown Corridor neighborhood. It’s no surprise, given what Vocon does, that the building has been renovated with a modern interior and open-space environment. Vocon also has an office in New York City. ■ The firm is led by the sisterbrother team of Deborah Donley and Paul Voinovich. ■ Vocon’s web site, www.vocon .com, includes a “people wall” with head shots of all of its more than 60 employees. ■ One of the firm’s many highprofile assignments in recent years
ince Frank Mercuri joined the Vocon architecture firm in 2006, owners Deborah Donley and Paul Voinovich credit him with modernizing the firm’s financial operation so that it provides timely financial data. They say Mr. Mercuri transformed the firm’s financial functions so they provide information that empowers employees at the firm so they can see how their job contributes to the firm’s finances. Mr. Mercuri also emphasizes open communication and formal financial processes as a means of allowing the firm’s designers and architects to focus on client service and design work. Before Mr. Mercuri joined Vocon, its accounting, human resources and information technology units operated independently. Under his watch the units were recast so they could share resources and gain synergy. The firm shifted its IT services from an outside consultant and two part-timers to two full-time, in-house IT staffers. That means IT is available to deal with crises and respond to
the needs of Vocon’s designers and business staff. Mr. Mercuri’s staff improved the filing of staff timesheets, added job sheets to track staff investments in individual jobs, and led the investment in new software that allows the firm to document client conversations and decisions throughout a project so it can effectively manage costs and protect its position should discrepancies arise. During his tenure, the firm formalized accounting processes so that it slashed its billing cycle to 20 days or less from 30 to 40 days. After the recession crippled much of the architecture business, Mr. Mercuri helped the firm cut expenses 30% in 2009. However,
ROBERT G. O’BRIEN
local/2,800 global 2009 REVENUE: $1.26 billion
FOREST CITY ENTERPRISES INC. Cleveland NUMBER OF EMPLOYEES: 850
The associates of Majestic Steel USA are proud to congratulate Susan Suvak for being named a finalist for Crain’s CFO of the Year. Congratulations, Susan!
R
obert G. O’Brien became CFO of Forest City Enterprises Inc. on April 1, 2008, after 20 years in roles planning investment strategy, crucial for a real estate development concern, as well as financial reporting. No one knew it then, but it was like getting a military command on the way to war. A global banking crisis struck that October that would severely challenge companies of all types, especially those in debt-dependent realty businesses. Insiders credit Mr. O’Brien with helping to formulate, adopt and implement a five-point strategy from cutting expenses to trimming the company’s debt load. Designed to sustain and transform the company during the recent recession, the plan bore fruit when the company returned to profitability this year. Charles Ratner, Forest City CEO, in 2008 put the task in stark terms: ensuring the firm survived the turmoil. In 2009, Mr. O’Brien captained the most active year in the debt markets in Forest City’s history. The company did $965 million in capital finance deals, managed $1.4 billion of nonrecourse mortgage maturities and put in place a $500 million line of credit with a group of 15 banks. Mr. Ratner publicly praised Mr. O’Brien and his team, saying he is “a superior leader and executive and is proving it over and over.” Meanwhile, Mr. O’Brien serves as change-maker at Forest City. Not only was he instrumental in its implementing a new enterprise
was for the Cleveland Cavaliers. Vocon’s redesign project for the basketball team’s offices at Quicken Loans Arena “started with completely gutting the space and starting from scratch,” according to the design firm’s web site. Strategic use of glass, light colors and wide corridors “provide an inviting feel to this open space,” Vocon says. One of the coolest features is a “basketball” wall with the texture of a ball. ■ The Weather Channel’s nifty, 12,500-square-foot HD broadcast studio in Atlanta was Vocon’s work. The studio was the first of its kind to attain LEED-New Construction Gold certification. SOURCE: VOCON.COM
by providing staffers a greater sense of their roles in shaping the firm’s future, Vocon’s principals credit him with helping it grow to $16 million in revenue in 2008 from $7 million two years earlier. When Ms. Donley and Mr. Voinovich hired Mr. Mercuri, they sought to add a smart, strategic CFO to their team. His background suited the job, as he joined it with a professional services background from a job as controller at the interactive marketing firm Brulant Inc., now Rosetta, and experience with Cap Gemini Ernst & Young LLP in Cleveland and other corporations. At Vocon, Mr. Mercuri also runs the firm’s charitable initiatives.
DID YOU KNOW? ■ The real estate development company was founded in 1920 after the Ratowczer (later changed to Ratner) family emigrated to the United States from Poland. Forest City’s web site includes images of inspection cards filled out when family members arrived at Ellis Island. ■ In 1925, Forest City began selling garages as homeowners realized they needed a place to store their newly purchased automobiles. ■ Forest City built prefabricated government housing during World War II and entered the land development business with some of its first strip shopping malls. ■ The company went public in 1960. Two years later, it opened its first enclosed regional mall, Boulevard Mall in Amherst, N.Y. ■ In 1990, Forest City helped lead a renaissance in downtown Cleveland by completing the renovation of Tower City Center, an art deco train station built in the 1920s. SOURCE: FORESTCITY.NET
resource planning software — an eightfigure investment for the firm — he embraced its green efforts early. Jon Ratner, Forest City vice president of sustainability initiatives, counts Mr. O’Brien as “one of the primary voices saying how sustainability has the ability to transform and grow our business,” according to the nomination. Mr. O’Brien also serves on boards at Cleveland Development Advisors, a group that supports investment in realty projects capable of changing the local economy, Cleveland Public Art and St. Martin de Porres High School in Cleveland. He and his wife, Ann, have three children.
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VINCENT K. PETRELLA THE LINCOLN ELECTRIC CO. Cleveland NUMBER OF EMPLOYEES: 2,700 local/9,000 global 2009 REVENUE: $1.72 billion
E
lected Lincoln Electric’s chief financial officer in 2004 after joining the company in 1995, Vincent Petrella has played a major role in the company’s recent expansion and acquisition activity. Over the past four years, Lincoln has expanded or constructed 10 plants worldwide, and over the past decade, the company has made 10 acquisitions. Those moves don’t happen with shaky finances.
Lincoln in August was named one of Forbes’ Most Trustworthy Companies, a measure of “true quality of corporate accounting and management practices.” “The conservative but solid balance sheet, with minimal debt leverage — that Mr. Petrella has managed — coupled with strong cash flow, provides the financial capability to implement Lincoln’s strategic plans,” the nomination said. To accommodate the company’s rapid growth, Mr. Petrella has appointed regional financial directors, appointed assistants for succession planning and “added key functions to bolster the organization worldwide,” the nomination said. Additionally, Mr. Petrella has pushed the company’s investor
OCTOBER 18-24, 2010
relations program to be more professional and proactive, and the company’s stock has outperformed major indices over the last five years. Popular financial analyst Jim Cramer has called Lincoln one of the nation’s premier industrial companies, the nomination said. “Under his direction, Lincoln has achieved a high level of professionalism, transparency and sophistication in its financial affairs,” the nomination said. Mr. Petrella, a graduate of Baldwin-Wallace College, also led the company’s move to defined contribution plans. He has been involved with fundraising efforts of the Juvenile Diabetes Research Foundation and the American Lung Association.
DID YOU KNOW? ■ John C. Lincoln founded Lincoln Electric Co. in 1895 with a capital investment of … $200. The product: an electric motor of his own design. ■ Mr. Lincoln’s younger brother, James F. Lincoln, joined the company as a salesman in 1907, at which time the product line had been expanded to include battery chargers for electric automobiles. The Lincoln brothers made their first welding set in 1909. In 1911, Lincoln Electric introduced the world’s first variable-voltage, singleoperator, portable welding machine. ■ World War II brought a dramatic expansion of Lincoln Electric’s business, with welded ship hulls creating a big new market. SOURCE: LINCOLNELECTRIC.COM
MARK J. PLUSH KEITHLEY INSTRUMENTS INC. Solon NUMBER OF EMPLOYEES: About 500 globally 2009 REVENUE: $103 million
W
hen the recession forced change, Mark J. Plush took the wheel and helped navigate a year of strategic redirection for Keithley Instruments Inc. in Solon. Working alongside other executives, Mr. Plush became a “driver” for reducing costs, discontinuing one product line and selling another that was unprofitable, the nomination stated. In addition, he was involved in establishing a new cost structure that reduced the company’s break-even point and improved its profitability. Keithley, a maker of electronic test and measurement instruments, showed dramatic financial improvement during the six months that ended March 31, 2010. Sales were up 6% over the like period in fiscal 2009, and cash and short-term investments of as March 31 rose $14.4 million, or a healthy 56%, from $25.4 million on Sept. 30, 2009. Meanwhile, it went from an operating loss of $12.4 million to an operating profit of $11.6 million. In September, Danaher Corp., a diversified manufacturing and technology company based in Washington, D.C., entered into a definitive agreement to acquire Keithley in a cash-for-stock deal estimated at $300 million. Mr. Plush joined the company in 1982 and became chief financial officer in 1998. He is involved in the professional advancement of his staff through weekly meetings and an open-door policy, and also serves as full-time investor relations officer. Keithley’s strong balance sheet — despite disruptions to the industry and the economy as a whole — are thanks in significant part to Mr. Plush’s efforts, the nomination stated. Prior to Keithley, Mr. Plush served as controller for the mobile hydraulics division of Parker Hannifin Corp., where he worked in a variety of roles for 14 years. He received a master’s degree with an emphasis in accounting from Case Western Reserve University and a bachelor’s in marketing from John Carroll University. Outside the office, Mr. Plush is a University Hospitals board member and a regular speaker and business resource for Junior Achievement.
DID YOU KNOW? ■ The company’s precision electronic test and measurement products are sold in more than 80 countries. Keithley Instruments has subsidiaries or sales offices in 15 countries, including China, India, Japan and Korea. ■ Joseph F. Keithley founded the company in 1946. The company’s earliest electronic measuring devices, such as electrometers and picoammeters, were designed for measuring low-level electrical signals precisely and were sold to scientists and physicists in laboratories worldwide. SOURCE: KEITHLEY.COM
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OCTOBER 18-24, 2010
OTHER CFO OF THE YEAR NOMINEES
Beatrez
Bellante
Blaha
Calsin
Chorba
DeAngelis
Congratulations DeMarco
Stallard
Dick
Jankura
Trivisonno
■ Hilary Frank Beatrez, Cleveland Hearing & Speech Center ■ Cathy Bellante, Eighth Day Sound Systems Inc. ■ Joseph J. Blaha, Marcus Thomas LLC ■ Robert A. Calsin, WVIZ/PBS & 90.3 WCPN Ideastream ■ Bill Chorba, NineSigma Inc. ■ Gene DeAngelis, Louis Stokes Cleveland VA Medical Center ■ Antony DeMarco, International Excess Alliance LLC ■ Rebecca Dick, Detroit Shoreway
Kistner
Veres
Maruschak McComas
to Lincoln Electric CFO Vincent K. Petrella and all of the 2010 CFO of the Year finalists
Weiss
Community Development Organization ■ Richard (Duke) Jankura Jr., JumpStart Inc. ■ Debbie Kistner, WRIS Web Services ■ Bill Maruschak, Guild International Inc. ■ Kevin McComas, Remington Products Co. ■ Nick Stallard, The Reserves Network ■ Scott A. Swiecicki, Retirement Solutions (not pictured) ■ Michael Trivisonno, Swiger Coil Systems LLC ■ John M. Veres, City of Independence ■ Mark Weiss, Montefiore
www.lincolnelectric.com
P RO O F t h at g o o d l e a d e r s h i p
counts. Congratulations Mark T. Clark
We’re proud to recognize our own Executive Vice President & Chief Financial Officer, Mark T. Clark, as a finalist for CFO of the Year.
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OCTOBER 18-24, 2010
2009 CFO OF THE YEAR AWARDS IN PICTURES Nearly 375 people attended the third annual CFO of the Year Awards ceremony, held last October at LaCentre Conference and Banquet Facility in Westlake. For a list of the winners from each of the awards’ first three years, see Page 28. FILE PHOTOS/JASON MILLER
ABOVE: Matt and Jeannine Ramer of Shearer’s Foods. BELOW: Nancy Hatgas, an award nominee from Brouse McDowell LLP, with husband, Edward.
ABOVE: Ten awards were handed out to CFOs of nonprofits and public and private companies. ABOVE RIGHT: A group of winners, finalists and nominees gather after the evening’s ceremony. RIGHT: Donna Dolezal of event sponsor KeyBank and Julie Loecht of KPMG.
ANDERSON LAW OFFICES is proud to announce that DONNA TAYLOR-KOLIS has joined the firm as a partner. Donna will chair Anderson Law Offices’ MEDICAL MALPRACTICE department and shares our dedication to the pursuit of justice.
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ABOVE: Crain’s account executive Dirk Kruger (left) and Ed Samuel of event sponsor IBM. BELOW: Crain’s publisher and editorial director Brian Tucker (left) and Bill Paul of event title sponsor Marsh congratulate C. Michael Rutherford of Summa Health System.
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Pete Waters Chief Financial Officer, Dealer Tire, LLC.
Congratulations to Pete Waters, nominee for Crain’s 2010 CFO of the Year Award! Pete’s financial and strategic leadership has played an integral part in shaping Dealer Tire, LLC into a world-class organization. He has used insight grounded in extensive experience to structure the company for success and restructure it for continued growth. As CFO he conducts himself ethically and compassionately, inspiring entrepreneurial spirit in associates throughout the organization.
w w w . d e a l e r t i r e . c o m
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PAST WINNERS 2009 winners
Congratulations to our clients and those being honored...
Discover what makes us different.
Proud to work with the following nominees: Frank Mercuri | Vocon Robert G. O’Brien | Forest City Enterprises Inc. Mark J. Plush | Keithley Instruments Inc.
2008 winners
Gregory Robinson | Safeguard Properties LLC
Certified Public Accountants and Advisers
Susan Suvak | Majestic Steel USA Inc.
www.SSandG.com
Andrew Tanner | The NRP Group Michael Trivisonno | Swiger Coil Systems LLC Mark Weiss | Montefiore
■ Richard C. Ebner, Liberty Bank, N.A. (Small private company) ■ Rick Coan, Garick LLC (Medium private company) ■ Steven C. Glass, Cleveland Clinic (Nonprofit global hospital) ■ John D. Grampa, Brush Engineered Materials Inc. (Medium public company) ■ Yvette M. Ittu, Greater Cleveland Partnership (Nonprofit civic and community) ■ Fredric “Fritz” Kohmann, Shearer’s Foods Inc. (Large private company) ■ Julie McGraw, National Interstate Corp. (Small public company) ■ C. Michael Rutherford, Summa Health System (Nonprofit regional hospital) ■ John P. Sesek, Positive Education Program (Nonprofit human services) ■ Stephen J. Smith, American Greetings Corp. (Large public company)
■ Bonnie Barrett, Cleveland Foodbank (nonprofit, human services) ■ Tom Browne, Bellefaire/ Wingspan Care Group (nonprofit, health care) ■ Jenniffer Deckard, Fairmount Minerals (large private company) ■ Mark Eisele, Applied Industrial Technologies (medium public company)
■ John Flanagan, Howley Bread (small private company) ■ Patricia Gaul, PlayhouseSquare Foundation (nonprofit, arts and culture) ■ Ware H. Grove, CBiz (small public company) ■ Michael Headen, United Way of Greater Cleveland (nonprofit, community service) ■ Karen D. Melton, Kaufman Container Co. (medium private company) ■ Tim Pistell, Parker-Hannifin Corp. (large public company)
2007 winners ■ David K. Creamer, Kent State University (nonprofit, educational) ■ Glenn A. Eisenberg, The Timken Co. (medium public company) ■ Richard H. Fearon, Eaton Corp. (large public company) ■ Richard L. Garcia, Wastequip Inc. (medium private company) ■ Craig Kaiser, YMCA of Greater Cleveland (nonprofit, social services) ■ J.T. Mullen, The Cleveland Foundation (nonprofit, charitable) ■ Frank Roddy, Swagelok Co. (large private company) ■ Kevin V. Roberts, University Hospitals Health System (nonprofit, medical) ■ Carole Sanderson, Herschman Architects Inc. (small private company) ■ Thomas G. Smith, Forest City Enterprises Inc. (small public company)
Leadership when it matters most. University Hospitals is proud to congratulate Michael A. Szubski as a finalist for the 2010 CFO of the Year Award. As Chief Financial Officer, Mike Szubski’s foresight and leadership have helped University Hospitals to thrive. We salute and admire Mike Szubski for his wealth of contributions.
© 2010 University Hospitals COM 00105
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MEET THE JUDGES MARILYN EISELE ■ Marilyn Eisele is the CFO of Five Star Technologies Inc., an advanced materials company and supplier of proprietary electronic materials to the mobile displays, photovoltaics and microelectronic packaging markets. Prior to joining Five Star, Ms. Eisele was the CFO to several information-based technology startup companies contributing to the development and execution of evolving business models, strategic directions, financing, and business processes. Ms. Eisele also has served as a CFO to two public companies. After obtaining her undergraduate degree from Bowling Green State University, Ms. Eisele was with PricewaterhouseCoopers for 15 years serving public and private companies with a specialization in mergers and acquisitions and highgrowth businesses. Ms. Eisele has participated in raising more than $100 million in private equity placements, multiple initial public offerings and secondary offerings and more than 30 acquisitions. Ms. Eisele, and her husband, Mark, reside in Shaker Heights and have three children. She is active in Shaker public schools, Laurel School, Fairmount Presbyterian Church, First Baptist Church and the United Way Women’s Leadership Council.
JAMES M. MALZ ■ James M. Malz, president of the Northeast Ohio region of JPMorgan Chase, is a veteran commercial banker who held management positions with KeyCorp prior to joining Bank One Corp. as division manager in September 2001. In October 2003, Mr. Malz was named to his current position, and he continued in the capacity for JPMorgan Chase Bank following its merger with Bank One in 2004. A native of Andover, Mr. Malz earned his bachelor of arts degree in economics in June 1987 at Hiram College. He also attended John Carroll University, completing certain graduate courses in finance. Mr. Malz serves on the boards of The MetroHealth Foundation, the Hiram College Board of Visitors, Ohio Foundation of Independent Colleges, the Cleveland Zoological Society, The Cleveland Institute of Music, the Cuyahoga Community College Foundation Board of Directors, Cleveland Development Advisors Board of Trustees and as a member of Leadership Cleveland, Class of 2005. Mr. Malz and his wife, Sonia, live in Brecksville with their daughter, Gabriella, and son, James David.
JOSEPH F. MASLOWSKI ■ Joseph F. Maslowski is chief
financial officer of Roetzel and Andress, a law firm with more than 230 attorneys and 10 offices. Mr. Maslowski is responsible for the strategic financial planning and management of all financial operations for the firm. He is an experienced financial manager in both privately held as well as publicly traded organizations. A graduate of Baldwin-Wallace College and Cleveland State University, he began his career as an auditor for Ernst & Young, later joining Leaseway Transportation as director of corporate development. Just prior to Roetzel, he was with The Millcraft Group as the firm’s CFO/executive vice
president. Mr. Maslowski’s specialty is service-based businesses as well as light manufacturing, and he has a spent considerable amount of time performing corporate development and restructuring work as well as on day-to-day operations. Additionally, he has been directly involved in the negotiation of multimillion-dollar acquisitions, divestitures and financings. He also serves on a number of community, professional and privately held boards.
JOE ROMAN ■ Joe Roman is president and CEO
of the Greater Cleveland Partnership, previously having served as executive director of Cleveland Tomorrow, an organization that merged with the Greater Cleveland Growth Association and the Greater Cleveland Roundtable to form the Greater Cleveland Partnership. Before joining Cleveland Tomorrow, Mr. Roman worked on Capitol Hill as both a congressional staff person and as a lobbyist for manufacturing trade associations. He has a bachelor’s degree from the State University of New York and a master’s degree in public administration from Harvard University.
During his tenure, Cleveland Tomorrow was recognized by the Harvard Business School as one of the most innovative and successful regional business organizations in the country. Mr. Roman was named the first CEO of the Greater Cleveland Partnership in 2004. Also participating in the judging process was Tom Russ, first vice president of Morgan Stanley Smith Barney. Judges evaluated nearly 40 nominations that included the candidate’s career history, professional achievements and contributions to their organizations. The panel was assembled with the assistance of the Cleveland chapters of Financial Executives International and the Association for Corporate Growth.
Thank you for your leadership and skill in guiding the financial strategy of Northeast Ohio business.
Congratulations to Bob O’Brien and all the finalists for the 2010 Cleveland CFO of the Year Awards.
www.forestcity.net
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GREGORY ROBINSON SAFEGUARD PROPERTIES LLC Valley View NUMBER OF EMPLOYEES: More than 800 2009 REVENUE: $602 million
G
regory Robinson has been chief financial officer for Safeguard Properties LLC for less than half a decade, and that’s been time enough for dramatic change. Hired in 2006 when the Valley View mortgage field services company was on the verge of significant growth, Mr. Robinson has been at the helm as the company’s revenues nearly quadrupled, increasing to $602 million in 2009 from $159 million in 2005. Additionally, Mr. Robinson has implemented operating efficiencies to reduce costs, and the company’s profit margins are up: 30.23% in 2009 from 29.5% in 2008. Mr. Robinson oversees not only the financial management of the company, but its support services and human resources. The company’s employment has increased during his tenure, doubling to more than 800 from 411 in 2006. This year, Mr. Robinson played a key role in “the most significant step” in the company’s 20-year history: structuring the transition of
SUSAN SUVAK MAJESTIC STEEL USA INC. Pepper Pike NUMBER OF EMPLOYEES: 215 2009 REVENUE: $354 million
You can’t teach an old dog new tricks. Which is good, because the IRS doesn’t really like tricks.
mt >
Congratulations Joe Blaha, on being nominated for CFO of the year, from your friends at Marcus Thomas. Marcus Thomas :: Contact Mark Bachmann, partner
216.292.4700 marcusthomasllc.com
S
usan Suvak does a lot for Majestic Steel. In addition to managing the steel distribution firm’s finances through two recessions, Ms. Suvak manages the company’s hiring functions and oversaw the expansion of the firm’s executive team to 10 members from just two. She also directs Majestic Steel’s administrative functions, leads the company’s philanthropic and communications committees and even gives advice to customers with financial problems. The nomination form highlighted Ms. Suvak’s analytical skills, her judgment and her “ability to stay composed in pressure-packed situations.” It also lauded her integrity: Ms. Suvak “personifies trustworthiness via her personable and approachable style, and by honoring commitments to ownership, associates, and external business partners,” the nomination said. Ms. Suvak, who joined the firm as accounting manager in 1998, negotiated Majestic Steel’s transition to its current lending agreement, played a key role in the company receiving ISO 9001:2008 quality certification and has greatly improved the firm’s hiring procedures, resulting in decreased turnover. She also collaborates often with
DID YOU KNOW? ■ Safeguard Properties, founded in 1990 by Robert Klein, bills itself as the largest privately held mortgage field services company in the country. It inspects and maintains defaulted and foreclosed properties for clients in the mortgage industry. ■ The company has grown from a regional firm with a few employees and a handful of contractors performing services in the Midwest to a national company with more than 800 employees that provides services in 50 states, the Virgin Islands and Puerto Rico. SOURCE: SAFEGUARDPROPERTIES.COM
ownership and leadership from company founder and CEO Robert Klein to family member Alan Jaffa while balancing the interests of all, the nomination stated. Mr. Robinson supports and encourages employee participation in community and civic efforts. Under his leadership, the human resources department organizes monthly fundraisers for various charities selected by employees. Before he joined Safeguard, Mr. Robinson was director of government solutions for CGI Inc. He also previously was chief financial officer and senior vice president of the court solutions division for NetGov Inc. Mr. Robinson, a Baldwin-Wallace College graduate, has coached football, baseball and basketball for several local leagues. He also participates in many cancer-related fundraisers in honor of relatives who have received the diagnosis.
DID YOU KNOW? ■ Founded in 1979, Majestic Steel calls itself the nation’s largest distributor of prime galvanized steel. ■ Majestic Steel has in the past partnered with the Cleveland Cavaliers, Magnet, Cuyahoga Community College, Lakeland Community College and Lorain Community College to award scholarships to students intending to pursue a career in manufacturing. ■ The firm stocks in excess of 250 million pounds of prime coated products in its 450,000-square-foot temperature and humidity controlled facility. ■ Majestic Steel ranked No. 16 on Crain’s 2010 list of largest privately held companies, ranked by 2009 revenues. SOURCES: MAJESTICSTEEL.COM; CRAIN’S RESEARCH
the company’s sales department and leads a credit team that works to build relationships with Majestic Steel’s suppliers and customers. Outside of work, Ms. Suvak is active at her church and supports area wildlife and wetlands preservation groups. “Throughout her career at Majestic Steel, Susan has led the financial area and company as a whole through myriad market cycles and fluctuations, where timely and prudent purchasing and selling decisions are of utmost importance to the organization’s financial health,” the nomination said. “Once again, Susan’s sound judgment, fact-based approach and ability to stay composed in pressurepacked situations allows for prudent decision-making relative to success-critical issues.”
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MICHAEL A. SZUBSKI UNIVERSITY HOSPITALS Cleveland NUMBER OF EMPLOYEES: 13,624 employees/3,592 physicians 2009 REVENUE: $1.9 billion
M
ichael Szubski had an uphill battle ahead when he joined University Hospitals’ financial team in 2003. The hospital system had struggled financially over the years, mounting tens of millions of dollars in losses and delaying any possible upgrades or expansions. But since Mr. Szubski came on board, he and his team have guided the hospital system to six consecutive years of positive operating margins. He has held a number of executive roles at the hospital system, which serves patients at 250 locations throughout Northeast Ohio, and he now serves as its chief financial officer. Notably, Mr. Szubski shored up $280 million in two tax-exempt, fixedrate bond issues to help finance University Hospitals’ ambitious $1.2 billion Vision 2010 construction and renovations project. He’s also led or participated in several initiatives to cut down on costs, including more than $10 million in cost reductions in both 2009 and 2010. Mr. Szubski’s colleagues say he’s a team player who leads by example. Sonia Salvino, vice president for finance at University Hospitals’ Case Medical Center, said in the nomination that Mr. Szubski was more than just a number cruncher. “It’s not enough to be good with numbers,” Ms. Salvino said. “When you have a sound person with sound integrity, you gain trust in their financial advice and counsel.” Prior to joining University Hospitals, Mr. Szubski served as executive vice president and CFO at EMH Regional Healthcare System. He’s also served as vice president of operations at United Healthcare of Ohio Inc. as well as assistant vice president and controller at Mount Sinai Medical Center. Mr. Szubski, who grew up in Parma, lives with his wife and four children in Brecksville, where he also coaches for his son’s youth football team.
DID YOU KNOW? ■ University Hospitals performs more than 4.5 million outpatient procedures and completes nearly 63,000 inpatient discharges annually. ■ The University Hospitals system includes University Hospitals Case Medical Center, a 1,000 bed academic medical center. ■ The health system owns and operates six wholly-owned suburban medical centers and 10 ambulatory health care centers. ■ UH Case Medical Center ranked prominently among the top hospitals in the country in seven specialties in U.S. News & World Report’s latest hospital rankings. UH Case Medical Center ranked in top 50 hospitals in the following categories: orthopaedics (No. 21); gastroenterology (No. 28); geriatrics (No. 28); cancer (No. 34); ear, nose and throat (No. 37); pulmonology (No. 42); and gynecology (No. 48).
ANDREW TANNER THE NRP GROUP LLC Garfield Heights NUMBER OF EMPLOYEES: 300 2009 REVENUE: $104.4 million
J
ob One for a residential real estate developer in the face of the housing crisis is getting the financing to build new housing. But NRP Group LLC in Garfield Heights is doing it and CFO Andrew Tanner is playing a major role. Since 2000, when Mr. Tanner joined the developer, general contractor and property manager, NRP has grown from $50 million in annual sales to $104 million. Founded in Cleveland in 1995, NRP had a five-person financial staff and 48 employees when Mr. Tanner came on board. Since
then, he has developed financial systems that have allowed the 300person company, including a financial staff of 20, to grow to where NRP now manages a portfolio of more than 8,000 units in 74 properties, with another 1,975 planned in 2010. NRP builds multifamily affordable housing, senior housing and infill single-family homes across the country, usually in partnership with local governments, financial institutions and neighborhood groups. Mr. Tanner plays a critical role in structuring complex financing that includes low-income housing tax credits and tax-exempt bonds. He also leads NRP’s strategic planning initiatives, including all annual operating plans. “Mr. Tanner led the NRP Group
to double-digit profits for the past few years while branding the NRP Group as one of, if not, the number one developer of affordable housing in the country,” the nomination said. Mr. Tanner also is credited with securing a $17 million credit line at a time when real estate financing was scarce. He came to NRP from Medimetrix Consulting, a Clevelandbased management consulting firm. Before that he served in various financial- and accountingrelated capacities with Ernst & Young, Arthur Andersen LLP and John O. Butler Co., a maker of toothbrushes that now is a part of Sunstar Inc. Mr. Tanner earned a bachelor’s degree in business administration
31
DID YOU KNOW? ■ Founded in 1995 as a full-service developer, general contractor and property manager, The NRP Group has offices in Cleveland, San Antonio, Phoenix and Raleigh, N.C. ■ It has built more than 13,500 multi-family and single-family housing units, and more than 2,275 were planned for this year. ■ In 2003, the owners formed NRP Management, which by year’s end will manage nearly 70 properties encompassing more than 7,500 market-rate and tax-credit family and senior apartment properties. SOURCES: NRPGROUP.COM; CRAIN’S RESEARCH
from Bowling Green State University and a master’s degree in business administration from the University of Chicago.
2010 CFO OF THE YEAR AWARD
“Jim is the primary reason Jo-Ann Stores was recently recognized by Forbes as one of the 100 Most Trustworthy Companies in America.” -Darrell Webb, CEO
We congratulate Jo-Ann Fabric and Craft Stores® CFO Jim Kerr and all of this year’s CFO of the Year finalists for their vision and fortitude in challenging economic times.
Jim Kerr Chief Financial Officer Jo-Ann Fabric and Craft Stores®
SOURCES: UHHOSPITALS.ORG; CRAIN’S RESEARCH
©2010 Jo-Ann Stores, Inc. All rights reserved.
371-938
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PETE WATERS DEALER TIRE LLC Cleveland NUMBER OF EMPLOYEES: 500 to 600 2009 REVENUE: More than $700 million
We are honored that Vitamix® CFO Loree W. Connors is nominated for the Crain’s 2010 CFO of the Year Award. Vitamix is proud to be a part of the Northeast Ohio business community for over 80 years.
F
or the past 10 years, Pete Waters has played a key role in the rapid growth of Dealer Tire LLC. “With double-digit growth on an annual basis and significant investments in information technology as an enabler of the company’s strategies, Pete’s knowledge of the business and his ability to develop strong relationships within the financial community has been critical to securing the credit necessary to support the business,” the nomination said. Mr. Waters, along with building a “best-in-class” finance group, is credited with helping to establish the appropriate capital and credit structure for Dealer Tire, which helps automobile manufacturers design, implement and manage tire programs for their dealerships. Additionally, he was a lead negotiator in 2009 as the company completed a capital restructuring, including a minority investment by a private equity firm. Mr. Waters’ background includes time at Iams as vice president and
MARK R. WIDMAR GRAFTECH INTERNATIONAL LTD. Parma NUMBER OF EMPLOYEES: 298 local/2,320 global 2009 REVENUE: $659 million
M CONGRATULATIONS TO LAURIE BRLAS, FINALIST FOR THE 2010 CFO OF THE YEAR AWARDS
LAURIE BRLAS
Executive Vice President – Finance and Administration & CFO
We’re Cliffs Natural Resources Inc., a 163-year-old international mining and natural resources company. We are NYSE Euronext-listed, a member of the Fortune 1000 and S&P 500, and one of the largest and fastest-growing companies in Cleveland. cliffsnaturalresources.com
ark R. Widmar’s arrival at GrafTech International Ltd. has meant the death of debt at the maker of carbon and graphite products. Shortly before Mr. Widmar joined GrafTech in May 2006, the company’s net debt level stood at $689 million. By December 2009, thanks to what the company in its nomination of Mr. Widmar called a “relentless” focus on debt reduction and cash flow improvement, that net debt figure had been cut to zero. (Yep, $0.) Meantime, GrafTech’s operating cash flow increased from $8 million the year before Mr. Widmar joined the company to a high of $249 million in 2008. Over the course of 2009, GrafTech said it was “profitable and cash-flow positive in every quarter in the midst of the worst global recession in decades,” which is a testament to Mr. Widmar’s financial stewardship. Keeping the fiscal house in good order positioned GrafTech in July 2008 to make its first acquisition in more than a decade with the purchase of an 18.9% share in Seadrift Coke L.P. Seadrift is located in Texas and makes premium needle coke, a key raw material for GrafTech and its single highest-cost item. That successful deal positioned GrafTech last April to conclude
DID YOU KNOW? ■ Walter J. Mueller in 1918 started Walter J. Mueller Inc., a family-owned tire business, in Cleveland. In the late 1980s, the company underwent a name change to Mueller Tire and Brake, and expanded throughout Northeast Ohio and into the Columbus area. In the early 1990s, the Muellers formed Dealer Tire, a mail-order business, to address the tire needs of automotive dealers. ■ Dealer Tire claims to be the only national firm exclusively dedicated to helping original equipment automobile manufacturers design, implement and manage tire programs for their dealerships. SOURCES: DEALERTIRE.COM; CRAIN’S RESEARCH
treasurer; Kraft Foods as director of corporate sales development; Entenmann’s Inc. as vice president; and KPMG as a CPA. He has a bachelor’s of science degree in accounting, and he earned his CPA in 1975. Mr. Waters is active in several organizations including E City, a nonprofit that teaches students entrepreneurial, business and life skills, the Shaker Heights Country Club and First Tee. “Pete’s engaging leadership style inspires entrepreneurial spirit in associates throughout the organization,” the nomination said. “His open-book reporting policy and participation in local charitable organizations show he conducts himself ethically and compassionately.”
DID YOU KNOW? ■ GrafTech’s history goes back to supplying arc carbons to the City of Cleveland in the late 1800s, allowing the city to become the first in the world with electric street lamps. ■ The company this year received a $1.15 million grant from the U.S. Department of Energy to construct a high-efficiency thermal storage system for solar power plants. SOURCES: GRAFTECH.COM; CRAIN’S RESEARCH
a $692 million deal to take full ownership of Seadrift and its sister company, C/G Electrodes LLC of St. Marys, Pa. Mr. Widmar is driven by attention to detail. For instance, changes he implemented in the company’s monthly and quarterly financial closing processes have reduced the closing cycle to four days from seven and has helped to reduce annual audit expenses to $1.9 million in 2009 from $3 million in 2006. The company said Mr. Widmar is “much more than a financial number cruncher.” He sees “the big picture” and “finds opportunities for continuous improvement that go beyond the walls of the financial suite and contribute to the overall success of the global organization,” GrafTech said. In 2008, Mr. Widmar took personal leadership responsibility to develop a “Human Capital Council” to improve work-life balance. Mr. Widmar gets good reviews inside and outside the company. One investor told GrafTech’s investor relations manager that Mr. Widmar is “the best-kept secret on Wall Street.” Internally, the nomination noted that employees describe him as “insanely intelligent” and even “a snappy dresser.”
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OCTOBER 18-24, 2010
33
LIFETIME ACHIEVEMENT AWARD JAMES ABEL By SCOTT SUTTELL ssuttell@crain.com
L
ong before he ever carried a chief financial officer title, James Abel worked in the computer systems group of RCA Corp. in the late 1960s and early 1970s, a time, he says, “when the computer industry was pretty much IBM and the seven dwarfs.” Mr. Abel’s work as an operations research and financial planning analyst for RCA proved valuable. He moved around a lot — to New Jersey, New York and Indianapolis, working in environments including manufacturing plants and subsidiary headquarters. And every assignment involved different areas of accounting and finance in different environments. “It gave me a very good background into how the central nervous system of a company worked,” Mr. Abel said. Mr. Abel, 64, turned that experience into a long corporate career that took him to five companies after RCA, culminating with his retirement on Dec. 31, 2007, as executive vice president, secretary, treasurer and CFO of Lamson & Sessions Co. of Beachwood. He began working at Lamson in 1990. Mr. Abel first carried a CFO title in 1985, when he worked at Gibson-Homans Co. of Twinsburg, a maker of caulks, sealants, wallcover adhesives and roof and driveway coatings. From May 2008 to February 2009, he also served as president and CEO of Financial Executives International, the preeminent organization representing senior financial executives in dealing with the regulatory agencies involved with corporate financial reporting and internal controls. In recognition of that distinguished career, judges of this year’s CFO of the Year awards have made Mr. Abel the first recipient of a Lifetime Achievement Award. The award recognizes a current or former CFO “who honorably represents their company/organization by exemplifying performance, leadership, integrity, strategy and growth throughout their career while bettering the finance profession overall.” The judges identified three primary areas in bestowing the award on Mr. Abel: ■ He was instrumental in the growth and expansion of Lamson & Sessions, which was acquired in 2007 by Thomas & Betts Corp. of Memphis, Tenn. Lamson was a maker and distributor of thermoplastic electrical, consumer, telecommunications and engineered sewer products. “Jim was the visionary in his role as (Lamson) CFO to execute new strategies for market penetration, a R&D unit that did applied research,
creative financing to grow the company through both organic growth and acquisitions,” the judges wrote. ■ He was active in the financial profession outside his job responsibilities, primarily through Financial Executives International. With that organization, Mr. Abel held positions including Cleveland chapter president and national chairman — a highly prestigious appointment in the profession — prior to his 20082009 stint as CEO of the organization. ■ He has been involved in the community, including service on boards of groups such as the Greater Cleveland Growth Association and Junior Achievement. Mr. Abel said he’s particularly proud of his involvement with Junior Achievement, which helps educate children about economic systems, “something we need now more than ever.” (Another accomplishment, not mentioned by the judges but surely impressive: He and his wife raised five children.) In the corporate sphere, Mr. Abel remains active as a board member of St. Louis-based CPI Corp., a portrait studio operator that offers photography services in about 3,100 locations in North America, primarily in Sears and Walmart stores. Mr. Able chairs CPI’s audit committee and is a member of the nominating and governance committee. Mr. Abel said he has seen the role of the CFO change markedly during the last 40 years, the result of significantly improved information technology and more complicated regulatory issues. Where CFOs once concentrated primarily on internal controls, they’re now more engaged in “evaluating corporate risk and helping set long-term business strategies,” Mr. Abel said. The severe economic downturn of the last two years puts even more pressure on CFOs to take leadership roles in providing financial stability to their companies, he said. Mr. Abel sees the economy “headed upward at a very slow, very modest pace,” though it’s not yet strong enough to produce sustained improvements in employment opportunities. “That’s the most crucial issue that has to be fixed,” he said. Leaders in Washington, D.C., to date have not “done enough to restore the confidence we had before this recession took place,” Mr. Abel said. One of the main obstacles to confidence, he said, is the confusion corporate executives feel due to a lack of clarity on major changes from Washington on tax rules, health care reform and changes to the financial regulatory system. But he’s an optimist in the long term. “We Americans have an insatiable desire to go after things and create opportunities,” Mr. Abel said.
The first Crain’s CFO Lifetime Achievement Award has been awarded to James Abel, most recently the CFO at Lamson & Sessions. Here, he is photographed at his home in Cleveland Heights. RUGGERO FATICA
Leadership, Knowledge, Solutions... Worldwide.
Marsh salutes the CFO of the Year nominees, finalists and winners. We realize that it is no small accomplishment to be considered for this award. We congratulate you on your outstanding performance as a corporate financial leader. Marsh – the world’s leading insurance broker, intermediary and risk advisor. Providing innovative solutions to help clients meet the extraordinary challenges of our times.
UPCOMING EVENTS In addition to the CFO of the Year Awards event being held Oct. 26 in Westlake, Crain’s has a bevy of business breakfasts in the coming weeks, part of our Ideas at Dawn business breakfast series. Each event is held at the Ritz-Carlton in downtown Cleveland, and starts at 8 a.m.
■ Thursday: "Customer value pricing — re-defining your pricing structure in a changing economy" ■ Nov. 2: “Investing in distressed real estate — keys to profitable buying and selling” ■ Nov. 18: “Selling your business with confidence — plan a strategic and profitable exit”
200 Public Square | Cleveland, OH 44114 | 216.937.1700 | www.marsh.com
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
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OCTOBER 18-24, 2010
LARGEST COLLEGES AND UNIVERSITIES RANKED BY FALL 2010 FULL-TIME EQUIVALENT ENROLLMENT Full-time equivalent enrollment Name of college or university Address Rank Phone/Web site
Fall 2010
Fall 2009
% change
Student/ faculty ratio
Annual tuition Room & board
% of enrollment undergraduate graduate
Type of Operating budget institution (millions) Affiliation Year founded
Endowment ($ millions)
President
1
Kent State University P.O. Box 5190, Kent 44242 (330) 672-3000/www.kent.edu
29,371
27,617
6.3%
20:1
$9,030.0 $8,416.0
85.0% 15.0%
4 year public
$544.2 1910
85.8
Lester A. Lefton
2
University of Akron 302 Buchtel Common, Akron 44325 (330) 972-7111/www.uakron.edu
22,875
21,742
5.2%
19:1
$9,247.0 $9,160.0
84.0% 16.0%
4 year public
$388.6 1870
156.0
Luis M. Proenza
3
Cuyahoga Community College 700 Carnegie Ave., Cleveland 44115 (800) 954-8742/www.tri-c.edu
18,903
17,925
5.5%
19:1
$2,536.8 NA
100.0% NA
2 year public
$186.7 1963
NA
4
Youngstown State University One University Plaza, Youngstown 44555 (330) 941-3000/www.ysu.edu
15,194
14,682
3.5%
20:1
$5,802.0 $7,600.0
91.0% 9.0%
4 year public
$158.8 1908
156.0
Cynthia E. Anderson
5
Cleveland State University 2121 Euclid Ave., Cleveland 44115 (216) 687-2000/www.csuohio.edu
11,931
11,652
2.4%
17:1
$8,466.0 $10,285.0
66.0% 34.0%
4 year public
$214.6 1964
43.7
Ronald Berkman
6
Case Western Reserve University 10900 Euclid Ave., Cleveland 44106 (216) 368-2000/www.case.edu
8,939
8,883
0.6%
10:1
$37,300.0 $11,400.0
43.0% 57.0%
4 year private
$940.3 1826
1,469.4
7
Lorain County Community College 1005 N. Abbe Road, Elyria 44035 (800) 995-5222/www.lorainccc.edu
8,375
7,936
5.5%
20:1
$2,568.8 $0.0
100.0% 0.0%
2 year public
$68.1 1963
23.0
Roy Church
8
University of Phoenix, Cleveland Campus 5005 Rockside Road, Suite 130, Independence 44131 (216) 447-8807/www.phoenix.edu/cleveland
7,900
6,000
31.7%
NA
NA NA
NA NA
4 year private
NA 2000
NA
Bill Pepicello
9
Lakeland Community College 7700 Clocktower Drive, Kirtland 44094 (440) 525-7000/www.lakelandcc.edu
6,059
5,837
3.8%
20:1
$2,916.0 NA
100.0% 0.0%
2 year public
$58.7 1967
2.1
Morris W. Beverage Jr.
10
Stark State College 6200 Frank Ave. NW, Canton 44720 (330) 494-6170/www.starkstate.edu
4,576
3,934
16.3%
20:1
$3,258.0 NA
100.0% 0.0%
2 year public
NA 1960
NA
John O'Donnell
11
Baldwin-Wallace College 275 Eastland Road, Berea 44017 (440) 826-2900/www.bw.edu
3,834
3,883
-1.3%
15:1
$25,260.0 $7,028.0
84.0% 16.0%
4 year private
$109.4 1845
103.9
Richard W Durst
Rev. Robert L. Niehoff, S.J.
Jerry Sue Thornton
Barbara R. Snyder
RESPONDING TO DATA SECURITY INCIDENTS. Register for a free webinar. http://higheredwebinar.plantemoran.com
12
John Carroll University 20700 North Park Blvd., University Heights 44118 (216) 397-1886/www.jcu.edu
3,572
3,604
-0.9%
14:1
$29,250.0 $8,750.0
80.0% 20.0%
4 year private
$76.0 1886
147.0
13
Walsh University 2020 E. Maple St. NW, North Canton 44720 (330) 490-7090/www.walsh.edu
3,000
2,935
2.2%
15:1
$21,380.0 $9,260.0
82.0% 18.0%
4 year private
$59.5 1960
8.8
14
Oberlin College 101 N. Professor St., Oberlin 44074 (440) 775-8400/www.oberlin.edu
2,974
2,919
1.9%
9:1
$41,234.0 $11,340.0
99.0% 1.0%
4 year private
NA 1833
614.9
Marvin Krislov
15
Bryant and Stratton College 3121 Euclid Ave., Cleveland 44114 (216) 771-1700/www.bryantstratton.edu
2,871
2,650
8.3%
15:1
$15,120.0 NA
100.0% 0.0%
4 year private
NA 1854
NA
John Staschak
16
Ashland University 401 College Ave., Ashland 44805 (419) 289-4142/www.ashland.edu
2,450
2,239
9.4%
16:1
$26,566.0 $9,352.0
43.0% 57.0%
4 year private
NA 1878
NA
Frederick Finks
17
Malone University 2600 Cleveland Ave. NW, Canton 44709 (330) 471-8100/www.malone.edu
2,279
2,315
-1.6%
14:1
$21,954.0 $7,548.0
83.0% 17.0%
4 year private
$41.6 1892
19.1
Will J. Friesen
18
University of Mount Union(1) 1972 Clark Ave., Alliance 44601 (330) 821-5320/www.mountunion.edu
2,226
2,163
2.9%
14:1
$24,800.0 $7,780.0
98.0% 2.0%
4 year private
$69.6 1846
115.1
Richard Giese
19
The College of Wooster 1189 Beall Ave., Wooster 44691 (330) 263-2000/www.wooster.edu
1,951
1,821
7.1%
11:1
$36,320.0 $9,070.0
100.0% 0.0%
4 year private
$67.0 1866
232.0
Grant H. Cornwell
20
Notre Dame College 4545 College Road, South Euclid 44121 (216) 381-1680/http://notredamecollege.edu
1,676
1,582
5.9%
14:1
$23,200.0 $7,800.0
85.0% 15.0%
4 year private
NA 1922
NA
Andrew P. Roth
21
Ohio Technical College 1324 E. 51st St., Cleveland 44103 (216) 881-1700/www.ohiotechnicalcollege.com
1,492
1,136
31.3%
13:1
NA NA
100.0% 0.0%
2 year private
NA 1969
NA
Marc Brenner
22
Hiram College P.O. Box 67, Hiram 44234 (330) 569-3211/www.hiram.edu
1,396
1,360
2.6%
13:1
$26,435.0 $10,273.0
97.0% 3.0%
4 year private
NA 1850
NA
Thomas V. Chema
23
Lake Erie College 391 W. Washington St., Painesville 44077 (440) 296-1856/www.lec.edu
1,216
1,027
18.4%
14:1
$25,674.0 $7,918.0
83.0% 17.0%
4 year private
$22.0 1856
27.0
Michael T. Victor
24
Ursuline College 2550 Lander Road, Pepper Pike 44124 (440) 449-4200/www.ursuline.edu
1,183
1,195
-1.0%
8:1
$23,700.0 $7,970.0
69.0% 31.0%
4 year private
$28.7 1871
18.7
Diana Stano, O.S.U.
Richard Jusseaume
continued on PAGE 36
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OCTOBER 18-24, 2010
Credit: Restrictions limit growth continued from PAGE 1
Business lending by Akron-based Buckeye State Credit Union has more than doubled since 2007, the year the recession began, said Michael Baughman, senior vice president and chief lending officer. The credit union began business lending about a decade ago and now has business loans totaling $7.8 million, which accounts for 17% of its total loan portfolio. It took Taleris Credit Union Inc. in Cleveland only a year or so to build a business lending portfolio that comprises roughly 14% of its total loan portfolio, president and CEO Robin Thomas said. Taleris has issued about $5.5 million in commercial loans â&#x20AC;&#x201D; all through Cooperative Business Services, a credit union service organization that spreads those loans among its members to keep one member from footing the entirety of a large loan. Other local credit unions also lend through the organization. Vacationland Federal Credit Union, with branches in Sandusky and Vermilion, has boosted its business loan portfolio to more than $10 million from $700,000 in late 2007, said Bryan Myers, executive vice president and chief credit officer. Business lending is Vacationlandâ&#x20AC;&#x2122;s fastest-growing product, followed by mortgage refinances, he noted. Though business lending accounts for only 3% of credit union loans in Ohio, itâ&#x20AC;&#x2122;s been the fastest-growing loan type for several quarters, and its volume grew 13.3% over the last 12 months to $371.4 million as of June 30, said Patrick Harris, spokesman for the Ohio Credit Union League. Nationwide, from June 2009 to June 2010, credit unionsâ&#x20AC;&#x2122; business loans rose 8.8% by dollar volume, according to the National Credit Union Administration. Since June 2007, that volume has climbed 46%. By contrast, banksâ&#x20AC;&#x2122; small business loans by dollar volume dropped more than 4% from June 2009 to June 2010 and by more than 5% in the three years from June 2007 to June 2010, according to Federal Deposit Insurance Corp. data. Small business lending remains banksâ&#x20AC;&#x2122; stronghold, however. Both banking and credit union industry insiders say banks command more than 95% of the market.
Rising tide Some credit unions have lent to small businesses since they were founded; others are new to the game. Nationwide, the number of credit unions that offer business loans totals 2,300 this year, which amounts to 30% of all credit unions, said Mike Schenk, senior economist for the trade group, Credit Union National Association. In 2008, the percentage that offered business loans was 24%. In Ohio, nearly 100 of the stateâ&#x20AC;&#x2122;s 390 credit unions â&#x20AC;&#x201D; or about a quarter â&#x20AC;&#x201D; reported in June to the Ohio Credit Union League that they do small business lending, Mr. Harris said. That number is up slightly from 22.6% in June 2009. Chartered in 1957, PEF Federal Credit Union in Highland Heights began member business lending this April after decades of focusing on consumer services, CEO Russ Fisher said. In the intervening six months, PEF has issued $1.5 million in business loans, an amount that
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
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includes lines of credit for businesses and the refinancing of commercial real estate. Benefits of serving â&#x20AC;&#x153;Joe Business Owner,â&#x20AC;? said Mr. Myers of Vacationland, include higher yields and a diversification of an institutionâ&#x20AC;&#x2122;s loan portfolio. The biggest reason for credit unionsâ&#x20AC;&#x2122; business lending growth, most agree, is the constriction of bank business lending. â&#x20AC;&#x153;We have the opportunity to step up to the plate where I think the banks have said, â&#x20AC;&#x2DC;Weâ&#x20AC;&#x2122;ve had enough of this, weâ&#x20AC;&#x2122;re going to shut the faucet off,â&#x20AC;&#x2122;â&#x20AC;? Mr. Myers said, noting some of his clients have reported banks changing terms on them. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re kind of picking up where the banks left off,â&#x20AC;? he said. PEF Federal expanded into business lending this year because itâ&#x20AC;&#x2122;s something members have asked for, Mr. Fisher said. He has heard of some clients who had lines of credit closed by banks. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re seeing a lot of small businesses who are within our footprint coming to us for help,â&#x20AC;? he said.
Growth in context Though the changes in credit union business lending appear sizable, it should be noted that credit unions started with a smaller base, both banking and credit union officials say. Bob Seiwert, who heads the American Bankers Associationâ&#x20AC;&#x2122;s Center for Commercial Lending and Business Banking, said because credit unions are â&#x20AC;&#x153;new to the gameâ&#x20AC;? in business lending, they have fewer loans being paid down. Banks estimate that 20% of their commercial loan balances are paid down annually, so to demonstrate any increase, theyâ&#x20AC;&#x2122;d need their small business lending to rise enough to cover whatâ&#x20AC;&#x2122;s being paid off and then some, Mr. Seiwert said. Itâ&#x20AC;&#x2122;s true that banks tightened their lending requirements during the turbulent period from 2007 through 2009, said Carol Kaplan, American Bankers Association spokeswoman. But, she noted, for the first time since late 2006, the Federal Deposit Insurance Corp.â&#x20AC;&#x2122;s Senior Loan Officer Opinion Survey in July showed an easing of bank lending standards for small companies.
A rivalry intensifies The rivalry between banks and not-for-profit credit unions is nothing new, nor is the banking industryâ&#x20AC;&#x2122;s lament that untaxed credit unions enjoy an unfair business advantage. Specific to this increasing rivalry, though, is the banking industryâ&#x20AC;&#x2122;s assertion that credit unions donâ&#x20AC;&#x2122;t have the expertise necessary to do business lending. â&#x20AC;&#x153;Healthy competition is always good,â&#x20AC;? said Mr. Seiwert of the bankers association. â&#x20AC;&#x153;But healthy competition implies that your competitors fully understand what theyâ&#x20AC;&#x2122;re doing in terms of appropriately analyzing the business risks, and they donâ&#x20AC;&#x2122;t have unfair cost advantages.â&#x20AC;? â&#x20AC;&#x153;The art of lending to small businessesâ&#x20AC;? is not something acquired overnight, Mr. Seiwert said. Credit unionsâ&#x20AC;&#x2122; lack of expertise, he asserted, could make the ramping up of their business lending dangerous. Most credit unions acknowledge business lending tends to carry a higher risk, but thatâ&#x20AC;&#x2122;s where due
diligence comes in. â&#x20AC;&#x153;Let me just say this: If itâ&#x20AC;&#x2122;s done properly and credit unions look to the right people who understand the underwriting process â&#x20AC;Ś the banks donâ&#x20AC;&#x2122;t have a lot of leg to stand on,â&#x20AC;? said Mr. Myers of Vacationland, who has 22 years of banking experience. Nonetheless, there will be losses, Mr. Fisher of PEF Federal predicted matter-of-factly. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s risk involved in everything we do,â&#x20AC;? he said. â&#x20AC;&#x153;It all boils down to your due diligence, and then luck always plays a part in it as well. There are always unknowns and intangibles that come out of left field.â&#x20AC;?
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Dealing with the ceiling In response to the growth in credit union business lending, the National Credit Union Administration has added â&#x20AC;&#x153;a fair numberâ&#x20AC;? of specialized examiners to examine the safety and soundness of credit unionsâ&#x20AC;&#x2122; underwriting, Mr. Kutchey said. In addition, the agency has undertaken a review of its business lending regulation. One challenge to growth, credit union executives say, is a federal restriction that limits the business lending credit unions can do to 12.25% of their total assets. The credit union industry is lobbying to have the percentage increased to allow for more, while the banking industry opposes such expansion. â&#x20AC;&#x153;If it remains the same, my concern is we will reach the cap and we will no longer be able to offer a service that our members want and need,â&#x20AC;? said Mr. Fisher, who noted that his credit union has lent $1.5 million in just six months â&#x20AC;&#x201D; only about $2 million below its cap. Bankers counter that only a small percentage of credit unions are at or near their limit. â&#x2013;
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CRAIN’S CLEVELAND BUSINESS
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OCTOBER 18-24, 2010
LARGEST COLLEGES AND UNIVERSITIES RANKED BY FALL 2010 FULL-TIME EQUIVALENT ENROLLMENT Full-time equivalent enrollment Name of college or university Address Rank Phone/Web site
Student/ faculty ratio
Annual tuition Room & board
% of enrollment undergraduate graduate
Type of Operating budget institution (millions) Affiliation Year founded
Fall 2010
Fall 2009
% change
Endowment ($ millions)
1,170
1,100
6.4%
15:1
$19,600.0 NA
100.0% NA
2 year private
NA 1986
NA
Gary A. Azotea Patrick Resetar
President
25
Remington College-Cleveland Campus 26350 Brookpark Road, North Olmsted 44070 (440) 777-2560/www.remingtoncollege.edu
26
Northeastern Ohio Universities Colleges of Medicine and Pharmacy 4209 State Route 44, Rootstown 44272 (330) 325-2511/www.neoucom.edu
767
690
11.2%
NA
$30,559.0 NA
0.0% 100.0%
4 year public
$42.5 1973
NA
Jay Alan Gershen
27
The Ohio State University Agricultural Technical Institute 1328 Dover Road, Wooster 44691 (330) 287-1331/www.ati.osu.edu
700
720
-2.8%
16:1
$6,300.0 $5,865.0
100.0% 0.0%
2 year public
$8.0 1969
NA
Stephen Nameth
28
Chancellor University 3921 Chester Ave., Cleveland 44114 (216) 391-6937/www.chancelloru.edu
571
475
20.2%
12:1
NA NA
NA NA
4 year private
NA 1848
NA
Robert C. Daugherty
29
Cleveland Campuses of Indiana Wesleyan University 4100 Rockside Road, Independence 44131 (216) 525-6160/http://cleveland.indwes.edu
550
500
10.0%
14:1
NA NA
NA NA
NA private
NA 2002
NA
Henry Smith
30
The Cleveland Institute of Art 11141 East Blvd., Cleveland 44106 (216) 421-7000/www.cia.edu
534
508
5.1%
9:1
$30,840.0 $10,950.0
100.0% 0.0%
4 year private
NA 1882
NA
Grafton J. Nunes
31
Ohio College of Podiatric Medicine 6000 Rockside Woods Blvd., Independence 44131 (216) 231-3300/www.ocpm.edu
455
435
4.6%
20:1
$27,250.0 NA
NA 100.0%
4 year private
$14.2 1916
6.8
Thomas V. Melillo
32
Cleveland Institute of Music(2) 11021 East Blvd., Cleveland 44106 (216) 791-5000/www.cim.edu
450
457
-1.5%
4:1
$36,000.0 $11,104.0
55.0% 45.0%
4 year private
NA 1920
NA
Joel Smirnoff
33
Virginia Marti College 11724 Detroit Ave., Lakewood 44107 (216) 221-8584/www.vmcad.edu
300
300
0.0%
12:1
$13,320.0 NA
100.0% 0.0%
2 year private
NA 1966
NA
Virginia Marti Veith
34
DeVry University(3) 6000 Lombardo Center, Suite 200, Seven Hills 44131 (216) 328-8754/www.devry.edu
287
193
48.7%
NA
$14,766.0 $10,422.0
72.0% 28.0%
4 year private
NA 1931
NA
Scarlett Howery
RESEARCHED BY Deborah W. Hillyer Source: 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) Previously Mount Union College. (2) Information is from www.cim.edu. (3) Enrollment numbers are for 2009 and 2008. DeVry's fall semester starts in late October.
MesoCoat: Company’s ‘big potential’ intriguing continued from PAGE 3
assistance from other states that could be potential sites of the coatings plant, but noted that MesoCoat is “a very good fit here.”
Impressive CEO
Executive Vice President & CFO, Fomo Products
2010 Crain’s Cleveland Business
CFO of the Year
Finalist from all of us at Fomo Products!
MesoCoat has close ties to the area: It was spun off from materials technology company Powdermet Inc. in 2008 and still shares its headquarters with the company. That same year it received a $350,000 investment from the JumpStart Inc. economic development group. Abakan has confidence in MesoCoat. The publicly traded company, formed to invest in coatings technology companies, in 2009 bought a minority stake in the startup and recently boosted its percentage to a majority stake by buying 41% of Powdermet, which owns MesoCoat stock. Abakan will own 71% of MesoCoat after its latest investment is finalized. Abakan decided to invest in Powdermet because it is developing more materials that have “big potential” and to boost its ownership in MesoCoat, Mr. Miller said. Abakan’s CEO also has a lot of faith in Mr. Sherman, who is CEO of Powdermet as well as MesoCoat. “I’ve interviewed a lot of scientists, and Andy has impressed me a lot,” Mr. Miller said.
Great expectations Abakan expects MesoCoat to pass $100 million in annual revenue by 2013. As the company grows it will need to build more plants, Mr. Miller said, noting that it is considering locations in Houston, Saudi Arabia and Brazil.
“(MesoCoat’s PComP) looks to me like a technology that’s going to solve problems in almost any industry.” – Peg Hunt, former editor, Advanced Materials & Processes There is potential for additional production in the Midwest, too, because there are so many potential markets for MesoCoat’s technology, Mr. Miller said. For instance, it could be used to coat car parts or reinforcing steel bars commonly used in construction, he said. Abakan, as a public company, will be able to help MesoCoat access large capital markets, Mr. Sherman said. He also noted that MesoCoat should benefit from the connections of Abakan’s executive team and from Mr. Miller’s experience helping start and finance more than 40 companies over the past 25 years. Don’t bet against MesoCoat, said Peg Hunt, who followed the company until retiring from her position as editor of Advanced Materials & Processes, a magazine produced by ASM International, a materialsfocused trade association based in Geauga County. Ms. Hunt wasn’t familiar with MesoCoat’s CermaClad process, but she described PComP as a “breakthrough technology” that seems like the perfect replacement for chrome, which is used to protect various metals. “It looks to me like a technology that’s going to solve problems in almost any industry you can imagine,” Ms. Hunt said. ■
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Giving: Shift to individual donors helps hospitals’ fundraising continued from PAGE 3
However, Ms. Taylor said Summa now is looking at fundraising as a strategic initiative focused on individual donors rather than just a series of one-day events, because the latter can be labor-intensive and offer little return. “Every donation from $1 to millions of dollars is important,” Ms. Taylor said in explaining the importance of cultivating donors. The MetroHealth System’s 2009 dip in fundraising closely mirrored the national trend, but so far this year, the health system has shattered its fundraising total for the last three years, according to Kate Brown, vice president for development at the county-subsidized hospital system. In 2008, MetroHealth raised about $6.3 million and about $5.6 million in 2009. So far this year, it has raised more than $8 million. Ms. Brown said MetroHealth has added staff to solicit major donations, sent more direct-mail pieces appealing for contributions and placed more people in the community to share the hospital’s story in venues such as churches, senior centers and Kiwanis and Rotary clubs.
total for 2009 was more on par with its 2007 numbers, though slightly lower. Sherri Bishop, University Hospitals’ chief development officer, said giving has remained steady despite the challenging economy. Although University Hospitals’ year-to-date totals weren’t yet available, the system has received several gifts of $1 million or more over the last several months. Ms. Bishop noted that University Hospitals’ donors have been supportive of the system’s $1.2 billion Vision 2010 renovations and construction program, which brought the region’s first freestanding cancer hospital to Case Medical Center and is creating the 144-bed Ahuja Medical Center in Beachwood. An exception to the comeback trend to this point is Akron General Health System, which has seen a steady decline in fundraising since 2007. However, Jim Gosky, a spokesman for Akron General, said in an e-mail that as the stock market continues to stabilize, “We feel optimistic that we will see a rebound in our dollars raised in 2011.”
A focus on the individual Ms. Brown said MetroHealth is a
“(Health care institutions) are less affected by economic factors because their donors are much more emotional.” – Armando Chardiet, institutional relations chair, Cleveland Clinic “We’re really just making sure we’re sharing with the community what we’re doing and continuing to build those relationships,” she said.
Weathering the storm The Cleveland Clinic managed to fend off a major decline in 2009, reporting only a modest $600,000 dip in total gifts, to $179.5 million. This year, the clinic’s fundraising is $15 million ahead of where it was at this time last year. Armando Chardiet, institutional relations chair for the Cleveland Clinic, wouldn’t speculate about whether the clinic would surpass its fundraising levels of the past few years. He said his team is working on closing several large gifts, but those could come at the end of the year or even into the next. University Hospitals saw a 23% fundraising drop in 2009, but that was because in 2008 the hospital system received a $22.6 million donation, one the largest in its history, that brought total fundraising for that year to $97.9 million. Its
bit unusual among medical centers because the bulk of its contributors are from corporations and foundations, though the number of individual contributors is steadily growing. Nationwide, businesses and foundations make up only about 12% of all donors, according to the Association for Healthcare Philanthropy. Mr. Chardiet noted that the Cleveland Clinic also is building on its base of individual donors. “The reasons why individuals tend to give to places like the Cleveland Clinic are often based on very emotional reasons like experiences based on the health care they received,” Mr. Chardiet said. “So to some degree, (health care institutions) are less affected by economic factors because their donors are much more emotional.” For example, a former Cleveland Clinic patient and his wife recently donated $10 million to establish a leadership academy for health care executives. The donor, Eric Samson, came to the Clinic 10 years ago for
CHARITABLE GIVING AT AREA HEALTH CARE INSTITUTIONS Institution
2010 YTD
2009
2008
2007
$80.6M
$179.5M
$180.1M
$165.7M
MetroHealth
8.0
5.6
6.3
7.6
Summa
N/A
4.4
5.4
7.4
University Hospitals*
N/A
75.2
97.9
79.6
Akron General
N/A
2.6
4.7
6.6
United States
N/A
7.64B
8.59B
8.35B
Cleveland Clinic
heart surgery, which was performed by Dr. Delos “Toby” Cosgrove, the Clinic’s president and CEO. “There’s an art and science to my business,” Mr. Chardiet said about fundraising. “And it’s still somewhat skewed toward the art side.” Parma Community General, an independent community hospital,
has seen a 20% boost in its fundraising totals so far this year. Marcia Ferguson, executive director for the hospital’s foundation, said the increase also can be attributed to focusing more on individual donors. “It’s not just the general economy getting better,” she said. “You have
to do things very differently.” Although a delicate process, Ms. Ferguson said the foundation’s volunteers and staff members have been soliciting donations from former patients because “they’re the most philanthropically inclined” due to their connections to the hospital. ■
SBA lending options for small businesses just got better.
All across Cleveland, small business lending is a #1 priority for us. Increased loan limits As America’s premier SBA lender, U.S. Bank is pleased to announce our full commitment to recently enacted Federal legislation affecting small businesses. As a result of this legislation, the SBA 7(a) loan program has permanently increased from $2 million to $5 million; and the 504 program loan limits have been increased to accommodate transactions up to $12.5 million. As a result, small businesses now have more opportunities for expansion, acquisition and refinance. Limited time loan fee waiver This new legislation allows for the waiver of SBA fees on both 7(a) and 504 loans until December 31, 2010*. This temporary SBA fee waiver could save small businesses as much as $166,250 on new SBA loans – this is a limited time opportunity, so time is of the essence! We invite you to discover what more than 30,000 small businesses already know – that U.S. Bank is very much in the SBA business and ready to lend. Contact a U.S. Bank SBA Division loan expert today for a no-obligation consultation.
Romona Davis 440-717-1226
* — UH RECEIVED IN 2008 A $22.6 MILLION DONATION, ONE OF THE LARGEST IN ITS HISTORY. SOURCES: CRAIN’S RESEARCH, ASSOCIATION FOR HEALTHCARE PHILANTHROPY
For daily on-line updates, sign up @ CrainsCleveland.com/Daily
usbank.com Member FDIC. ©2010, U.S. Bancorp, U.S. Bank National Association. *The U.S. Small Business Administration (SBA) estimates that it will be able to eliminate upfront Guaranty fees on loans approved through 12/31/2010 or until funding expires. Financing maximums and terms are determined by borrower qualification and use of funds.
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Available Industrial Space GREAT SUBLEASE OPPORTUNITY- or possible sale - 170,000 sf - high ceiling - 8 docks - rail sprinkler - office - Armand Aghajanian FREMONT - 143,400 sf on 9 acres - 28’ to 31’ clear - 10 DKs - 1 DI - air rotation - yard for 32 trailers - highway access - Joe Barna, SIOR or George Pofok, SIOR EASTLAKE - Route 2 visible - excellent mfg. facility - 113,285 sf with 13,000 sf of office/training rooms on 8.86 acres - cranes - heavy power - buss duct - air lines - 22’-26’ clear - highway visible - expandable - many other amenities - Eliot Kijewski, Joe Barna, SIOR or Simon Caplan, SIOR
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Location: 5570 Enterprise Blvd., Toledo, OH 43612 Adjacent to Offering #1 38,236 SqFt Industrial/Warehouse On 6.73+/- Acres • Built 1989 Great Location • Multi-Use Building In Co-op w/CB Richard Ellis/Reichle Klein Marty Gallagher, SIOR / 419-794-3956 Jerry Malek, CCIM, SIOR / 419-794-3964 The Skutch Company, Ltd. - Receiver For More Info., Terms & Bidding Procedures go to Our Website www.wilsonauctionltd.com Or, contact any of the following for more detailed information, Due Diligence Packets & to Register for a Bidders Packet
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FOR SALE OR LEASE IN ORRVILLE, OH - 69,235 sf building situated on 5.73 acres excellent light mfg./whse. building - 20’-26’ clear - 100% sprinklered - great condition Matt Beesley, SIOR or Fred Christie, SIOR FOR SALE OR LEASE - 22,183 sf high end campus style office building with warehouse component - building comes furnished with cubicles, desks, chairs etc. - Bob Garber, SIOR or Matt Beesley, SIOR LIBERTY BUSINESS PARK - 2,700 to 21,600 sf in Avon - high image construction - offices to suit - sprinklered - 18’ ceilings - DKs & DIs - excellent highway access - Joe Barna, SIOR BEREA USER/INVESTOR OPPORTUNITY - multiple uses including auto/bus repair 20,320 sf available - 11,405 sf leased brings in revenue - Kevin Kelly I-480 & RIDGE ROAD - freestanding 8,760 sf retail/whse building for sale - can be split or as one - abundant parking - Fred Christie, SIOR USER/INVESTOR OPPORTUNITY IN LAKEWOOD - 5,200 sf office/retail & apt bldg. on Madison - 4/1 bedroom apts. plus 2 1st floor office/retail units (1,700 sf total) with parking garage for residents - Ken Anderson or Ryan Burrows FAIRVIEW PARK - 1,854 sf retail building for sale - well maintained - excellent location overlooking the Rocky River Metropark - Pamela Bertovich
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THEINSIDER
THEWEEK OCTOBER 11 - 17 The big story:
Shaker Heights investment adviser Robert Pinkas was ordered to pay nearly $1 million in a settlement of fraud charges brought against him by the Securities and Exchange Commission. Mr. Pinkas did not admit or deny the allegations, but he agreed to pay $325,000 in a civil penalty, $482,561 earned as a result of the alleged violations and prejudgment interest of $150,168. The final judgment — entered by Judge James S. Gwin in U.S. District Court in Cleveland — also bars Mr. Pinkas from acting as an officer or director of a publicly traded company for five years.
Now that’s a deal: Lenox Mortgage XIII LLC, an affiliate of Boston-based apartment owner Aspen Management Inc., paid just $8.4 million, or 41% of the value of the original $20 million mortgage, for the loan on the Quay 55 apartments in a Sept. 9 auction of defaulted loans backed by the U.S. Department of Housing and Urban Development. Buying the loans positions Lenox to become the owner of the lakeshore apartments at 5455 North Marginal Road in Cleveland if it fails to strike an agreement to restructure the loan with the Quay 55 Limited Partnership that developed and owns the complex.
Southern exposure: Associated Estates Realty Corp. continues to enter new markets outside Ohio with its acquisition of San Raphael, a Class A apartment community located in Dallas. The real estate investment trust based in Richmond Heights said the 222-unit property was built in 1999 and is located in the Addison/ Galleria area, 11 miles north of downtown Dallas. The average monthly rent per unit is $1,003, and the property is currently 95% occupied. An early holiday gift:
Thanks to what it called “positive sales trends and expectations for holiday traffic in its stores,” fabric and craft retailer Jo-Ann Stores Inc. announced plans to increase its work force by 15% for the holiday season. Travis Smith, president and chief operating officer for Jo-Ann, said the company is in the process of recruiting for the holidays and anticipates hiring more than 3,000 seasonal employees. Mr. Smith expects the growing trend in handmade gifts will continue to boost business at the stores.
New in the Neighborhood: Joel Ratner, currently president of the Raymond John Wean Foundation of Warren, was named the new president and CEO of the Neighborhood Progress Inc. nonprofit development group. Mr. Ratner starts Jan. 3 at Neighborhood Progress. He will succeed Eric Hoddersen, who retired earlier this year after 16 years as the organization’s president and CEO.
Making a difference downtown: Cleveland Cavaliers owner Dan Gilbert is the 2010 winner of the prestigious Ruth Ratner Miller Award, which is presented by the Downtown Cleveland Alliance to an individual for career achievement in the advancement and enhancement of downtown Cleveland. Downtown Cleveland Alliance, a nonprofit dedicated to building a dynamic downtown, will present Mr. Gilbert the award at its annual award luncheon Oct. 28.
To keep up with local business news as it happens, visit www.CrainsCleveland.com.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
No time to slack off thanks to this work
New medical helicopter standards? No problem
■ It’s decades-old news that the U.S. Army’s women’s dress slacks are made here — but now all of the U.S. Navy’s will be, too. Vocational Guidance Services, a Cleveland nonprofit employing people with barriers to the job market that include disabilities and previous incarceration, on Oct. 1 began production as the exclusive provider of the Navy’s women’s dress slacks. The new work and a change by the Army has led to the hiring of 15 workers and will increase production at the nonprofit’s sewing operation by roughly 35%, said Adam Ross, director of development. He noted that the Army switched to blue slacks from green. “I think it’s an amazing thing for us and for the community,” Mr. Ross said. The sewing operation on East 55th Street now staffs 65 who produce more than 500 pairs of slacks a day using machinery, Mr. Ross said. Vocational Guidance Services has made 100% of the U.S. Army’s women’s dress slacks since 1991. It secured the Navy work after a nonprofit with a similar mission, KCARC in Indiana, decided it wanted to end its production of Navy slacks, Mr. Ross said. KCARC recommended Vocational Guidance Services — presumably because the local nonprofit had assisted KCARC about a decade ago when it was running behind in production and needed help, he said. — Michelle Park
■ The Federal Aviation Administration recently recommended stricter safety guidelines for medical helicopters, but much of the fleet flying in Northeast Ohio’s skies already is meeting or exceeding the proposed standards. Under the proposal, helicopter operators would need to use the latest on-board technology and equipment to avoid obstacles and terrain. Also, the FAA proposal contains measures requiring operators to use enhanced procedures for flying in challenging weather or when landing in remote locations. The proposal came in response to a high number of fatal crashes involving air ambulances throughout the country. From 1992 through 2009, 135 medical helicopter accidents claimed 126 lives, according to the FAA. Dr. Craig Bates, chief medical officer for Metro Life Flight, said the proposals are a step in the right direction, but the recommendations fall short of what they could include. “If you’re not going to do your mission right, you shouldn’t be doing it at all,” said Dr. Bates, adding that Metro’s fleet of three helicopters already meets or exceeds the proposed standards. Dr. Bates said he would have liked the FAA to follow an earlier recommendation by the National Transportation Safety Board to require night-vision technology as well as
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COMPANY: AkzoNobel Paints LLC, Strongsville PRODUCT: Sikkens Cetol Waterborne SRD wood finish Sikkens Wood Finishes, manufactured by AkzoNobel Paints, now is offering its popular Cetol product in a new waterborne formula. The company says the translucent exterior wood finish “provides an easy-to-use, onecoat application” that results in a distinctive look. The waterborne product is formulated for siding, rails and decking, in addition to other exterior wood surfaces, and features a hybrid alkyd/ acrylic formula that offers “superior penetration, color retention, reliable adhesion and easy soap-and-water cleanup,” AkzoNobel says. It’s also safe for use on exterior hardwoods such as mahogany and teak. The product includes a transoxide pigment system, which can be mixed in-store from one base, allowing less inventory to be stocked and conserving shelf space. It’s available in eight wood-tone colors: natural, natural oak, cedar, teak, butternut, redwood, mahogany and dark oak. For information, visit www.nam.sikkens.com. Send information about new products to managing editor Scott Suttell at ssuttell@crain.com.
Excerpts from blog entries on CrainsCleveland.com.
Now he just needs to get voters this enthusiastic ■ You might not look at Cincinnati Republican Rob Portman and see a political star in the making, but Washington Post columnist David Broder sure does. The Washington press corps sage gushed over the likely-to-win Senate candidate — Mr. Broder even referred to Mr. Portman’s “startlingly good looks” — in a piece that compared him favorably with of-the-moment GOP star Mitch Daniels, the budgetconscious governor of Indiana. “Now 54 and a fitness fanatic, Portman has achieved his status by being smart, disciplined and a team player. Business people know he does his homework, and Democrats find him approachable,” Mr. Broder wrote. “Except for Daniels, there are few Republicans who have delved as deeply into fiscal and budgetary policy, trade and health care as has Portman, who notably expanded the Office of Management and Budget’s focus on Medicare and Medicaid, even when (former President George W.) Bush showed little interest in the issue.” The Post columnist concluded, “This year’s election will undoubtedly produce many new Republican faces. One of them to watch will be the man from Cincinnati.” James
In emerging markets, Eaton has a growth story to tell ■ Eaton Corp. rated a mention in a Financial Times piece about U.S. industrial companies’ dependence on foreign markets for growth. Analysts expect industrial companies with more than 50% of revenues coming
autopilot controls. One of University Hospitals’ Medevac helicopters does not meet the proposed requirements, but a new aircraft has been ordered that will meet the recommendations, said Wayne Fleck, business manager for University Hospitals Medevac. The roughly $4.2 million aircraft is expected to arrive at the end of next year. Akron Children’s Hospital’s Air Bear helicopter, the only transport helicopter in the state dedicated to pediatrics, also meets the proposed standards, according to nursing director Helen Raub, who initiated the Air Bear program. — Timothy Magaw
Tremco employees color their world ■ The extensive energy-efficiency renovations at its headquarters are “green,” but the new façade for Tremco Inc. in Beachwood looks like pink granite — exactly the color most employees preferred. Leading a tour of the renovations, Craig Nelson said Tremco executives, in an effort to involve people in the project, held a color selection contest during its design phase last spring. Mr. Nelson, vice president of construction operations for WTI, a Tremco unit that is the project’s general contractor, said his preference — brown — didn’t win, but added, “That’s OK. This looks good, too.” Ever the salesman, Mr. Nelson noted that Tremco’s sister company, Dryvit Systems Inc., produces the “outsulation” and can make “whatever color” someone wants. Dryvit’s web site showcases more than 280 colors. — Michelle Park
from overseas to increase sales by an average of 10% in the third quarter, according to estimates compiled by Thomson Reuters, compared with 4% growth for companies with mostly domestic revenue, the Financial Times said. The paper said Eaton plans further expansion in emerging economies to keep up with new orders. “In China we are expanding several facilities because we are simply out of capacity,” Rick Fearon, chief financial officer of Eaton, told the Financial Times. “We are the world’s largest producer of valves for car engines. Temporarily we shipped in from elsewhere, but you can’t do that long term.”
People may dislike LeBron, but they’ll pay to see him ■ Say what you will about him, but LeBron James is good for the bottom line of the NBA. The Wall Street Journal reported that the average sale price for a Cleveland Cavaliers ticket on the secondhand market this season is $127.34, 12th-highest in the league, according to ticket-price forecaster SeatGeek.com. “But strip away the two games when Mr. James and his Miami Heat come to Cleveland (Dec. 2 and March 29, average price $240 a ticket) and the average Cavs ticket for the season sells for $74.51,” The Journal noted. “That 71% markup when you include the Heat games is more than double the average markup for the rest of the teams.” The LeBron boost isn’t exclusive to Cleveland, The Journal said. Secondhandticket prices for every team in the league increase when the Heat are in town, including a 38% jump from the New York Knicks’ overall average and a league-high 72% increase for the Boston Celtics.
20101018-NEWS--40-NAT-CCI-CL_--
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Financing as low as
0.9% APR
Right now, get a 1 Series or a 3 Series with No Down Payment Required. No Security Deposit Either. Just pay your first payment, and drive away in The Ultimate Driving Machine®. Hurry now to BMW Cleveland to take advantage of this special offer as it is good through October 31st.
2010 GranTurismo Convertible Grigio Touring MSRP $144,100 -- SAVE $9,960
BMW Cleveland • 6135 Kruse Dr. • Solon • 1-866-210-6710
NOW $134,140 Contact us for your Tailor-made personal tour.
MASERATI OF CLEVELAND 6137 KRUSE DR. • SOLON • 1-866-210-6707
11-17maseratiAAA.indd 1
www.BMWCleveland.com For full details on BMW Ultimate Service™ visit bmwusa.com/ultimate service. 2011 BMW 328i xDrive based on MSRP of $40,050, 2011 BMW 128i Convertible based on MSRP of $39,000, both including destination and handling, excluding license, registration, taxes, title and options through 10/31/10. **36-month lease on well-equipped 2011 BMW 328i xDrive at $459 per month with nothing due at signing except your first payment. 36-month lease on well-equipped 2011 BMW 128i Convertible at $449 per month with nothing due at signing except your first payment. Taxes and license fees are extra. 10,000 miles per year. Rates along with the $0 down payment and $0 security deposit program are for Super Elite/Elite/Standard credit tier level only. As low as 0.9% APR for up to 60 month term on all new 2011 BMW 328i xDrive and 2011 BMW128i Convertible models. $42.06 per $1,000 borrowed on 2011 BMW 328i xDrive and $28.16 per $1,000 borrowed on 2011 BMW 128i Convertible. Through participating dealers and BMW Financial Services for qualified clients. For full leasing terms contact BMW Cleveland. The BMW name, model names and logo are registered trademarks.
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The All-New 2011 XJ Standard Wheel Base WINTER SNOW TIRES The stunning INCLUDED!*
result of taking a very different road. 3.9% APR up to 60 months WITH AN AEROSPACE-INSPIRED ALUMINUM BODY SHELL THAT IS LIGHT, STRONG, AND STUNNINGLY BEAUTIFUL.
LEASES STARTING AT $ 699* 36 MOS. MSRP $54,250
MORE POWERFUL AND EFFICIENT ENGINE. AN INNOVATIVE INTERIOR THAT EXCEEDS EVEN THE PROMISE OF THE STREAMLINED EXTERIOR.
Finance Rates as low as 2.9% for 36 Months.
INTUITIVE TECHNOLOGY, GLOVE-SOFT LEATHER, A PANORAMIC GLASS ROOF, AND A BOWERS & WILKINS® SURROUND SOUND SYSTEM FOUND IN NO OTHER CAR ON EARTH.
Leases Starting at $999 mo.*, 39 mos. $72,850 MSRP JAGUAR CLEVELAND 6137 KRUSE DR., SOLON • (440) 542-0601 www.jaguarcleveland.com JAGUAR CLEVELAND
LAND ROVER SOLON 6137 KRUSE DR.• SOLON • 1-866-210-6707
www.landroversolon.com
6137 KRUSE DR., SOLON • (440) 542-0601
Early lease termination assistance up to $2,000 for lease or purchase. * Includes mounting, balancing and storage for two years. 3.9% APR Offer excludes XFR model. Jaguar Platinum Coverage includes all factory recommended scheduled maintenance for five years of 50,000miles, whichever occurs first. Expires 9/30/2010. Wear and tear items are limited to brake pads, brake dics, brake fluid changes and wiper blade inserts based on factory specified wear limits or intervals. All work must be performed by an authorized *Jaguar With approved 39 month TotalPlatinum due at signing $1,995. Includes down acquisition feeand plusexclusions, tax, title and registration extra. Customer dealer. Forcredit. complete details lease. on Jaguar Coverage, including warranty andpayment, maintenance coverage please visit yourfees local Jaguar dealer or responsible for excess and tear. per AMERICA year. 18¢ LLC per mile over. Other XJ’s at similar savings. Expires 10/31/10. JaguarUSA.com. ©2010wear JAGUAR LAND12,000 ROVERmiles NORTH
www.jaguarcleveland.com
* With approved credit. 36 month lease. Total due at signing $2,995. Includes down payment, acquisition fee plus tax, title and registration fees extra. Customer responsible for excess wear and tear. 10,000 miles per year. 30¢ per mile over. Other LR4’s available at similar savings. Expires 10/31/10.
davis automotive group inc. 6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com