Crain's Cleveland Business by Crain's Cleveland Business

AKRON REAL ESTATE Residences at Good Park development set to begin; the 89-unit development could have its first homes available this year PAGE 6

MIDDLE MARKETS: Are suppliers, region ready for electric vehicle revolution? PAGE 10

CRAINSCLEVELAND.COM I MARCH 14, 2022

BUILDERS’ WOES RISING BY STAN BULLARD Headwinds are increasing for Northeast Ohio homebuilders. Rolling

scarcity of various supplies, roller coaster lumber prices, labor shortages and the threat of rising interest rates from record lows are dimming prospects as pandemic pains looked to ease. • Then oil prices last week hit record levels as global efforts grew to punish Russia economically for invading Ukraine. • Rob Myers, president of homebuilder trade group HBA Greater Cleveland, said in an interview, “A lot of things are eating at the bottom line. It’s only See BUILDERS on Page 19 going to get worse with record gas prices.”

STAN BULLARD/CRAIN’S CLEVELAND BUSINESS

Vast quantities of materials from lumber to shingles bound for a new home cover a home site in Westlake.

Landlords not rushing to comply with lead-safe law

Orthobrain rethinks the delivery of orthodontics

BY MICHELLE JARBOE

BY SCOTT SUTTELL

Halfway into Cleveland’s rollout of a lead-safe certification mandate for rentals, fewer than 10% of units in the city have a clean bill of health. Landlords aren’t rushing to have their properties vetted, despite millions of dollars in loans and grants for repairs and the looming prospect of citations and fines. Lead-testing professionals say that major apartment owners are complying, reluctantly in some cases. But many landlords, including small operators who control an estimated 60% of the city’s rental stock, are ei-

ther unaware of the rule or waiting to see how aggressively Cleveland enforces a law designed to protect children from being poisoned. “Very large landlords … they don’t like it, but they realize it’s the cost of business,” said Zak Burkons, the owner of Pb Free Ohio LLC, a busy testing business formed last year. “But for every one of them, there’s 50 guys or ladies who have two units. Or five units. They’re the ones that I spend a lot of time on. They need to be convinced that this is real.” See LEAD-SAFE on Page 20

NEWSPAPER

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Zak Burkons of Pb Free Ohio conducts a dust-wipe test for lead at a rental house on Cleveland’s West Side. | MICHELLE JARBOE/ CRAIN’S CLEVELAND BUSINESS

THE

LAND SCAPE

The big idea behind orthobrain is relatively simple. And it just helped the Richfield startup attract a lot of money. The company, which provides a digital system that teaches dentists how to use orthodontics in their practices, last week announced it completed a $9 million Series A fundraise to accelerate its growth. The round was led by CareCapital Group, a large, Hong Kong-based investor in the dental care industry. Additional co-investors included JumpStart Inc.’s NEXT II Fund and

the JobsOhio Capital Growth Fund, among others. For Dr. Dan German, 61, who founded orthobrain in 2016, the company is the outgrowth of a lifetime of interests: orthodontics (obviously), starting companies (German as a teen launched what he called D.S. German Cleaning Co.), tinkering with technology (he had a computer business in the 1980s), and bringing orthodontics education to a wide audience, through 30 years of traveling the world as a keynote speaker, teaching the See ORTHOBRAIN on Page 21

A CRAIN’S CLEVELAND PODCAST

3/11/2022 1:12:29 PM

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EDUCATION

Colleges prepare as federal pandemic funding winds down BY AMY MORONA

Colleges across the country received a big chunk of governmental funding amid the pandemic. Three rounds of federal aid came in to the tune of $75 billion in total. Local colleges got millions. Cleveland State University saw $71.1 million. Cuyahoga Community College received $78.2 million, and $22.8 million went to Case Western Reserve University. The cash, officially from the Higher Education Emergency Relief Fund, is split into two buckets. Half was earmarked to go directly to students for emergency grants, while the other portion could go to cover institutions’ costs or expenses incurred during COVID-19. These funds gave officials the ability to do all kinds of things, including purchase PPE, wipe away institutional debts for students, introduce new initiatives, and even reimburse institutions themselves for tuition hits leveled during the pandemic. Some also used it to boost the pool for student aid. That money came with a deadline, though. Institutions have a year after they receive the money to spend it. The clock is ticking, and, now, officials across the region are staring down what a post-HEERF life might look like. The cash helped solve problems, but taking it away could create some new ones. Take Stark State College. Officials at the North Canton campus never saw the $40.4 million the college got as a way to balance the budget, according to president Para Jones.

They did, however, use some of it to cut students’ costs. Tuition was waived for recent high school graduates who enrolled. A hundred bucks got shaved off credit-hour prices for everyone else. The move “helped us ensure that students could remain enrolled, especially as we look at other enrollments, not just of colleges and universities in the region but the community colleges across the state,” Jones said. Enrollment at two-year publics were among the most impacted in the COVID-19 era. Stark State saw a 7% drop in full-time students in fall 2020, smaller than the 9% reported nationally. The following year saw just a 1% drop in the same category, again less than the 6% felt by community colleges nationwide. Stark State will be using some of its remaining HEERF dollars — about $22 million as of the end of January — to do the same this fall. But once those dollars are gone, officials want to replace it with scholarships to continue the offering, according to Jones. She said they’re starting to have conversations to see if the effort could be supported philanthropically. Jones spoke with students who told her those tuition discounts and emergency grants have been “absolutely critical.” Students could put the awards toward unexpected pandemic-related costs like child care or rent or food, all issues that will still exist even when those grants don’t. The cash helped lots of students at Notre Dame College, too, according to president J. Michael Pressimon. He said officials at the South Eu-

A student works at Stark State College. The college received more than $40 million in federal relief funding. | STARK STATE COLLEGE FILE PHOTO

clid campus knew the third round of HEERF would probably be the last. After all, no one wants COVID to last forever. It was great to have this money, but he said the college knew it would be a temporary fix. His worries about how students will pay for their education — a concern even before the pandemic — remain. It’s intensified now. The institutional HEERF money will be gone by June 30. And when that’s coupled with students spending their grants, there’s concern whether the college “can still get the funding we need in order to continue to provide for quality, four-year private, liberal arts based education,” Pressimon said. Officials are working to grow the college. The fall 2022 semester has more admitted students than the year before. The enrollment staff has been retooled. There are plans to fundraise more ahead of NDC’s upcoming centennial. But concerns like shifting demographics and a declining number of students on campus existed pre-pandemic. Events of the past few years am-

plified those challenges. The University of Akron’s financial struggles have been well-documented over the past few years. Programs got eliminated. There were steep cuts in staff and faculty. Last fall’s full-time enrollment of about 12,400 is a far cry from the 23,220 students enrolled a decade ago. The university received about $77 million across all rounds of federal funding. Chief financial officer Dallas Grundy called it a “boon.” It essentially allowed the university, he said, to see an operating surplus not initially projected. UA lost income via a variety of ways, including a lack of facility rentals, athletic ticket sales and room and board fees. One of the biggest losses — tuition revenue — could deliver a long-term financial blow if enrollment keeps declining. UA is using more than $27 million of its federal funding for tuition reimbursement. Grundy’s fingers are crossed for change. The university is getting better about telling its story, he said, but UA will need to “see the traction” in terms

of an actual impact on enrollment. Lessening of expenses would, of course, help its financial future. There’s hope costs on things like deep cleaning will decrease. But the pendulum swings the other way, too. Ongoing COVID-19 testing may still have to happen. Grant funding helped bolster mental health support for students amid the pandemic. Grundy said officials at UA will have to think about how to come up with internal or external funding to keep those going. Plus, all institutions are dealing with rising costs in these inflationary times. Increasing tuition and fees to offset things could be a tough sell to students and families who may still be reeling from the pandemic’s economic crunch. “We try to do five-year planning, but really, after you get past two years, it’s like looking into a crystal ball,” UA’s Grundy said. “An unreliable crystal ball.” Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

SPORTS BUSINESS

Senate Live provides free streaming network for CMSD sports BY JOE SCALZO

A few weeks ago, as Bakari Lewis wrapped up a broadcast of a Lincoln West-Cleveland JFK high school girls basketball game, he interviewed one of the JFK players, freshman Precious Elam, and head coach Rhonda Scharf about the 69-31 victory. “Afterward, she (Scharf) was just elated that we highlighted the kids and showcased them,” said Lewis, a former Shaker Heights High School basketball player. “They were just over-the-top excited about it, that someone cared.” The game was one of the first broadcasts on Senate Live, a free streaming service that launched in January for students and families of the Cleveland Metropolitan School District. The service will air 30 Senate League sporting events — live and on-demand — in the first year of a three-year agreement. Senate Live’s first broadcasts were high school boys and girls basketball games, but it has already expanded to sports such as swimming, wrestling and indoor track under its partnership with DistrictWON. “We had not done any streaming at our athletic venues before, so to have this opportunity come to us like this, it

was a dream come true,” said Desiree Powell, the director of interscholastic athletics at CMSD. “A lot of athletic directors wish they were in my shoes.” DistrictWON, which is based in Rocky River, is a national company that looks to bring funding into school districts through sponsorship programs it signs with corporate partners such as Kia, T-Mobile and Farmers Insurance. Bowling Green State University is the “presenting sponsor” of Senate Live, which also has sponsorships from Falls & Co., a Cleveland-based marketing company, and First Federal Lakewood. “We’re kind of like a giant booster club,” DistrictWON CEO and president Peter Fitzpatrick said. “Let me give you an example. FirstEnergy pays who knows what to sponsor the Browns’ stadium all year. So we’ll go to a large company like FirstEnergy and say, ‘In addition — or instead — of doing that, why don’t we put your signs in the end zones of 250 high school stadiums in Northeast Ohio?’ “We charge a little bit less, and we take that money and pass it through the schools where the signs are.” High school streaming services aren’t new. A large number of school districts nationwide have adopted

them in recent years, a trend that only accelerated during the COVID-19 pandemic. But they’re more common in affluent communities and can cost $10 per month or more. “Unfortunately, a number of schools have been left behind (on streaming), and one category was urban school districts,” Fitzpatrick said. “We’re devoted to this area — we’ve been a Cleveland-based company for a long time — and this was something we felt was important to do to support the foundation of this area, which is young kids in CMSD. “The fun thing for me is, a lot of kids in Cleveland and in CMSD have never had a game on any platform. It’s been a joy to see us do events that don’t typically get covered.” Senate Live has also been a blessing for family members who can’t always make it to games, whether that’s because of COVID-19, inadequate transportation or because they live out of the area or even out of the state. “We even have extended family who live in other countries,” Powell said. “I’m checking in with them (DistrictWON) all the time, asking, ‘Where are people watching us from? What

kind of exposure are we getting?’” The answer: quite a bit. A recent Senate League boys basketball game at Rocket Mortgage FieldHouse drew more than 1,100 viewers despite not starting until around 10 p.m. due to a Cleveland Cavaliers home game. “We may only see 200 people in the stands for wrestling, and they’ll tell me there are 300 or 400 people watching online,” Powell said. “I’m like, ‘Are you serious?’” Lewis is the executive producer for the broadcasts, which utilize the Cleveland-based BoxCast streaming platform. The plan is, as the service grows, CMSD students will produce, operate and broadcast the majority of the events. “I believe a large number of students will be interested in doing this type of work,” Powell said. “We have something called Summer Learning Experiences, and there may be time this summer for kids to do some practice sessions, so by the time we get back to school, they’ll be ready to do real-time games.” That’s where Bowling Green comes in. The school hopes that once the students gain interest and experience in sports media, they’ll enroll in media

programs like the one offered at Bowling Green. BGSU recently made news when one of its graduates, Everett Fitzhugh, became the first Black announcer in NHL history when he was hired by the expansion Seattle Kraken. “The sports business is woefully underrepresented in terms of minority involvement,” Fitzpatrick said. “It would be a big thing for us if we can help create something special in Cleveland.” In some ways, they already have. Lewis said he’s already seen players get excited when he walks into a gym to do a broadcast. “You can tell they want to put on their best performance,” said Lewis, who played three seasons of college basketball at the Division I level for the University of Missouri-Kansas City. “Obviously, this gives them exposure, but it also really captures this moment of their lives forever. It gives them something to look back on and say, ‘This is who I was in high school.’ It gives them a tangible memory they’ll always have that they can reflect on for the rest of their lives.” Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

MARCH 14, 2022 | CRAIN’S CLEVELAND BUSINESS | 3

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After years of program expansion, Cleveland Neighborhood Progress’ new five-year strategic plan returns the group to its core mission — providing support, advocacy and expertise to Cleveland’s community development organizations. The move to refocus CNP’s mission, after years of what is known in the development world as “scope creep,” came when Tania Menesse took over as the nonprofit’s executive director in late November 2020. Menesse brought to her new role experience from serving as Cleveland’s director of community development. During her time with the city, she realized that to effectively provide services to residents, city hall required a “key partner out in the field” that would identify each neighborhood’s unique and pressing needs, she said. Those partners, though, did not have the capacity to execute on the work. “I started trying to figure out how we could bring more resources into the neighborhoods because I’m a firm believer in the community development corporations,” Menesse said. “They are the eyes, the ears, they’re the ones on the ground. They’re directly interacting with residents and businesses everyday, so they know what needs to be done.” The plan to redefine CNP’s role as a facilitator and advocate, rather than service provider, is the main thrust of the group’s new five-year strategic plan, adopted by the CNP board of directors in October 2021 and officially presented Wednesday, March 9, at the group’s annual event at the La Salle Theatre. The “Impact: 2022-2027” strategic plan is an acknowledgment that community development corporations, or CDCs, need support, and that the most important service CNP can provide is as an intermediary helping to bring resources needed to serve the neighborhoods, Menesse said. “We were really feeling like we had gone way off mission, that we didn’t understand what it meant to

be an intermediary,” Menesse said. “So, I really came in with a mandate for change in the strategic plan.”

A unique history Cleveland was one of the first adopters of nonprofit, community-based organizations focused on helping distressed neighborhoods in the late 1960s. Currently, nearly every Cleveland neighborhood has a CDC associated with it. CNP, previously Neighborhood Progress Inc., was founded in 1988 to help professionalize the community development industry, Menesse said. The group’s original mission was to pool corporate and foundation resources and provide a strategic approach to revitalizing Cleveland’s struggling neighborhoods. Over the years, the mission expanded in an effort to try to provide more critically needed services, including investment and lending subsidiaries. Neighborhood Progress created Village Corporation and Village Capital Corporation in the early 1990s to provide lending support for housing development and larger neighborhood projects. In 2013, Neighborhood Progress Inc. officially became Cleveland Neighborhood Progress when it merged with the Cleveland Neighborhood Development Coalition and Living in Cleveland Center. Between that and the housing crisis in post-recession Cleveland, the service scope of CNP become significantly broader. “CNP was doing an incredible amount of good work, but we were trying to do everything, and I think we all know that when you try to be everything to everyone, you can fail at all aspects,” Menesse said.

Going forward Under the new strategic guidance, CNP plans to return to its role as an CDC intermediary, which will strengthen the community development ecosystem, according to Menesse.

“Our work is most effective if we’re supporting the hundreds of people who are employed at CDCs, who are actually out in neighborhoods, empowering, engaging with residents, providing home repair, providing after-school programming or health screenings — the things that residents and businesses really count,” she said. Stepping away from some of those direct services received the blessing of CNP’s board. “The strategic plan really narrows and gets more specific in CNP’s focus and allows it to hopefully be more efficient in what it does as it gets back to its roots,” said Jeffery Patterson, president of the CNP board of directors. With CDC advancement and resilience as its main mission, the organization will focus on creating equitable neighborhood revitalization; providing access to capital; and assisting with advocacy, marketing and collaboration. Patterson said three organizational imperatives — racial equity and inclusion, applied thought leadership and economic opportunity — will guide everything CNP does. “We want to make sure that there is equity related to our opportunities and we want to make sure that we are working to try to find ways to serve neighborhoods where they are, so to speak,” he said. “We know there may be some that need more and some less.” Under the new direction, CNP plans to put those goal in action by providing expertise in acquiring financial resources, developing talent and acting as a liaison with the region’s philanthropic, educational and governmental systems. “Our purpose is to help facilitate people being able to get the resources that they need,” Patterson said. Crain’s reporter Lydia Coutré contributed to this story. Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive

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TAX TIPS

Reporting voluntary carbon offsets on your tax return BY JONATHAN CICCOTELLI

The global focus on climate neutrality is pressuring businesses to consider sustainable measures to reduce their carbon footprint. Organizations are being lauded for implementing green initiatives, but for some, reaching a meaningful reduction in carbon emissions may prove too costly or disruptive. As an alternative, companies are considering a program that supports investments in environmental projects as a means of balancing their own carbon output. How? By purchasing carbon offsets.

What are carbon offsets? In lieu of taking steps to reduce your business’ carbon output, you can pay for another business to reduce theirs. When you purchase a carbon offset, you incentivize another business to invest in sustainable sources of energy, thereby improving overall carbon emissions. But how do carbon offsets actually work? Step 1: Company A measures its carbon output and decides it wants to reduce its carbon emissions. Step 2: Company A invests in a carbon emissions reduction project organized by Company B. Step 3: Company B uses that money to fund its emissions-reduction project (e.g., building a solar park, erecting wind turbines, planting trees, assisting sustainable farming initiatives, etc.). Step 4: Company B acknowledges that Company A’s investment helped it reduce carbon emissions by granting it a carbon offset certificate. Step 5: Company A presents this carbon offset certificate to show stakeholders or compliance agencies it has taken steps to reduce carbon emissions. You can purchase carbon offsets to meet environmental compliance standards, like those set by the Environmental Protection Agency (EPA), or you can purchase them voluntarily. Businesses that voluntarily invest in carbon offsets do so for a variety of reasons — out of concern for the environment, to boost their public image, as a stopgap measure until they can implement sustainable changes to their own operations — but no matter their intent, they need to know how to report those costs to the IRS.

Are voluntary carbon offsets deductible? Voluntary carbon offsets (VCOs) are — by definition — optional, which begs the question: Are they deductible for tax purposes? Section 162 of the Internal Revenue Code states that an expense must be “ordinary and necessary” to be deductible. If a business purchases a VCO, it is not reducing its own carbon footprint; rather, it is enabling another business to re-

duce its footprint. Can its executives truly argue that the expense is ordinary and necessary? The IRS has not yet released firm guidance Ciccotelli is on how to treat partner-inVCOs, but typicharge of cally, an exMeaden & pense is not orMoore's Tax dinary and Services Group. necessary if it is undertaken for reasons unrelated to the business. Determining whether your VCO purchase helped support your business’ purpose will depend on all the facts and circumstances. You can make this determination by asking yourself some of the following questions: Why are you purchasing a VCO? What are you gaining from your purchase? How will this VCO purchase and future VCO purchases help you long-term? We also cannot ignore that stakeholders’ expectations have changed. Stakeholders today expect most businesses to be taking steps toward reducing their environmental footprints. Even if businesses aren’t technically obligated to make more sustainable choices, one could argue that VCOs are both ordinary and necessary for businesses to remain competitive.

Should VCOs be capitalized? If you and your tax adviser believe you can successfully argue for the deduction, you must then figure out if you can take that deduction currently under Section 162 of the Internal Revenue Code, or if you should capitalize those costs under Section 263. If a VCO will benefit your business years into the future, you may need to capitalize those costs. By capitalizing your VCO purchases, you will be deducting those costs slowly over time, more closely tying the tax deduction with the benefits you reap from your investment. The IRS does not have a bright line test to determine if an expense like a VCO should be capitalized or deducted when incurred. In support of Section 263, the IRS will look to see whether you created a separate and distinct intangible asset when you purchased the VCO. An intangible asset is separate and distinct when its value is ascertainable and when it is capable of being sold, transferred or pledged. VCOs may very well meet this definition. Many VCOs are purchased on a carbon offset exchange, and businesses can trade or sell rights to those VCOs to other businesses. Comb through all the facts and circumstances with your tax adviser to determine the best route for you to take.

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AKRON

Residences at Good Park development set to begin BY DAN SHINGLER

If you hear chainsaws running while getting in a round of golf at the city of Akron’s Good Park Golf Course on the west side of town, don’t expect to get an easier shot at the green. It won’t be because one of the course’s infamous fairway-crowding trees is being removed. What you hear will be the sound of work beginning on the Residences at Good Park, an 89-unit residential development being undertaken by Akron’s Alpha Phi Alpha Homes. After a COVID-caused delay that kept construction from being started last fall as originally planned, Alpha Phi says it’s now on track to clear and break ground for the development. “It’s going great,” said Alpha Phi executive director Albert Bragg Jr., who spoke to Crain’s on March 8. “Probably starting next week we’re going to be clearing trees to make way for the infrastructure. And we’re choosing the developer for the infrastructure and the townhouses next week.” The development is a mix of 24 custom homes, 42 townhomes and 23 single-family homes, which Alpha Phi announced in 2020 as a nearly $20 million development that will take advantage of Akron’s 15-year tax abatement on residential construction. Alpha Phi will build all but the custom homes, which will be built individually by whoever purchases the lots adjacent to the city’s popular golf course, he said.

Bragg said Alpha Phi is choosing from five developers for the construction of the project’s homes that it will build, and construction will begin soon after that’s done. “We hope to break ground within a month of choosing, it may even by the end of the month (March), depending on people’s schedules,” Bragg said. But first, about 70 trees and shrubs need to be removed from the 17-acre site, something Bragg said Alpha Phi wants to complete before April 1, before any protected Indiana Brown Bats take up residence in the trees to breed. Save for some trees around the perimeter, the site is already largely wide open, having been scraped bare of the former Perkins Middle School that was a neighborhood fixture prior to closing in 2014. A recent visit found what was left of the old school’s crumbling parking lot being used for equipment to prepare for construction. That middle section of the site will become a park surrounded by homes, Bragg said. “We have 23 lots available for what we’re calling the ‘Park Side residences.’ We’re creating a new park at what was the old school, and there will be lots around that,” Bragg said. Pricing for the units has yet to be finalized and won’t be determined until a builder is selected, Bragg said. Previous reports, including some Alpha Phi uses on its website, predicted the townhouses will sell for just under $200,000, with single-family homes selling for between $229,000

and $279,000, and buildable lots for between $40,000 and $50,000 — but that was before Akron’s housing market got hot over the last two years and before a sharp recent rise in inflation generally. In any event, the biggest and most expensive homes will be those that are custom-built on the empty lots Alpha Phi is selling, with those houses set to be around at least 2,000 square feet in size, Bragg said. Akron’s residential market is still hot, too, said Catherine Haller, a realtor with Berkshire Hathaway HomeServices in town. “Things have not cooled down at all in Akron with residential — it’s crazier than last year,” Haller said. She said she’s already getting inquires about the Good Park development. “I’m keeping a list of people who have contacted me about it,” Haller said. “That’s my bread and butter — West Akron — so I”m thrilled about it.”” Aside from a minimum size requirement, homebuilders can build whatever style of home they like. Well, almost, anyway. “There will be certain restraints. You won’t be able to have a psychedelic house,” Bragg joked. “But one of the things we’re looking for in the custom houses is that the garages don’t face the streets — that will probably be a requirement.” In addition to the new park, the site will also need some new roads connecting its interior to Mull Avenue.

An outline and the crumbling remnants of the parking lot of the original Perkins Middle School is all that’s left at the 17-acre site where Alpha Phi Alpha Homes says it will soon build 89 new homes on Akron’s west side. | DAN SHINGLER/CRAIN’S CLEVELAND BUSINESS

Jason Segedy, Akron’s director of planning and urban development, said during a recent visit to the site that the city is financing the infrastructure for the project. The city will lend between $3 million and $4 million for roads, water and sewer lines, and will be paid back via assessments on the project’s properties, Segedy said. But the city’s biggest contribution may be its tax abatement, which applies to both home improvements and new construction like what’s planned for Good Park. That will

mean homeowners there won’t pay property taxes for 15 years — something Bragg said helped convince Alpha Phi to do the project. Projects like Good Park are something the city said it hoped would be created when it began the abatements in 2017 as part of Mayor Dan Horrigan’s efforts to rebuild some of the population Akron, like other old Midwest industrial towns, has lost in recent decades. “We’re very pleased,” Segedy said of the project. “This is exactly what we wanted to incentivize with that.”

N first espe er a is st B wan shor last “I thin bee to r due Brag

GOVERNMENT

Two workforce initiatives set out to tackle the region’s talent gaps BY KIM PALMER

With tens of thousands of current job openings, an aging workforce and a decreasing population, it is all hands on deck to help solve the worker shortage. Two new workforce initiatives announced last week — one that focuses on attracting and retaining employees, and another that aims to prepare students to be career-ready — are trying to provide more talent for the region.

Harness the power of the visitor

Knowing that people who come to Cleveland, either as tourists visiting family or for conferences and conventions, are more likely to return, David Gilbert, president and CEO of Destination Cleveland, asks a simple question: How do we convince these one-time visitors not only to come back to Cleveland but to stay and join in on the workforce? “We do a lot of research to identify the people most likely to consider Cleveland as a place to visit,” Gilbert said. “Recently we have started doing a good bit of research also on their perceptions of Cleveland as a place to live and work.”

That data will be used by the new Cleveland Talent Alliance, a consortium of 11 organizations — including Destination Cleveland, the region’s marketing and visitor’s bureau — that are looking to harness the group’s collective resources and expertise to identify, attract, engage and help retain talent. According to the research, there are groups of people who say they are not open to considering Cleveland as a place to live and work, even if a job and pay matched what Gilbert they’re looking for. “The good news is you have a large percentage, 40%, who are undecided, and that is a critical group that we need,” Gilbert said. “We know from our research that when people experience the city as a visitor, they become far more open to Cleveland as a place to live and work.” Crosley The goal, Gilbert said, is to have a comprehensive and systematic approach to talent acquisition and retention, one that takes advantage of visitors who have had a positive experi-

ence with Cleveland. The individual members of the group — in addition to Destination Cleveland, they are the Greater Cleveland Partnership, Team NEO, Cleveland Leadership Center, Cuyahoga County, Engage! Cleveland, JobsOhio, Global Cleveland, MAGNET, the Fund for our Economic Future and Cleveland Neighborhood Progress — will aim to do what they do best without duplicating efforts or wasting resources. One of the first programs is the Women in Cyber Security Conference, a professional meeting and recruiting event taking place Wednesday and Thursday, March 16-17, at the Huntington Convention Center of Cleveland. Destination Cleveland, GCP and Team NEO are working to recruit some of the attendees to relocate. GCP helped put together a list of Cleveland companies looking for cybersecurity professionals for the event, and Gilbert’s organization is creating an immersive Cleveland

Ginn Academy senior and Lincoln Electric apprentice Jalen Brown addresses attendees at the formal launch of Greater Cleveland Career Consortium on March 8. | COURTESY OF THE LINCOLN ELECTRIC COMPANY

experience — including a big, Cleveland-themed party and streetscape at the convention center — to make the most of the time with an audience of nearly 900 attendees coming to the event to interview with multinational companies such as Amazon and Google. “These are women, some who have recently graduated, looking for jobs in cybersecurity,” Gilbert said. “They are also people who will be experiencing Cleveland, so we know they are more open to the message of living in Cleveland.” The talent alliance also is collaborating on ways to increase the region’s 43% post-college retention rate. Marianne Crosley, president and CEO of the Cleveland Leadership Cen-

ter and a force behind Campus Cleveland, an organization that provides college-age students a more comprehensive view of the region’s professional and civic amenities, wants to push that number much higher. Working from data Leadership Cleveland collected from focus groups held in 2019 on local college campuses, Crosley said most of the students surveyed did not venture into the city of Cleveland, other than to go to a sporting event or concert during their time here and then they quickly left these events. “They certainly did not have a connection with Cleveland’s neighborhoods, and they did not see any place in Cleveland that was welcoming for college students,” Crosley said.

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Now the question is when the first homes will become available, especially since the market for nicer and newer homes around Akron is still strong. Bragg said now that COVID has waned, most of the disruptions and shortages that slowed the project last year are gone. “I wouldn’t change the way things have gone so far because it’s been necessary, and we don’t want to rush anything. We’re doing our due diligence and so far, so good,” Bragg said. “Materials are becom-

ing more readily available, so that’s even better.” Bragg said he hopes to begin showing and selling homes at the site by the end of this year, and by early 2023 more units will be available. “That’s going to depend on who we choose (as a builder) to some degree, but certainly vertical construction is going to take place this year,” he said.

This informed the efforts of Campus Cleveland, which has partnered with the Downtown Cleveland Alliance to provide programs in Public Square for local college and university students. The program also provides a way for students to have hands-on volunteer experiences with local nonprofits and to meet members of the business community in order to “develop unbreakable ties to Cleveland,” Crosley said. “I think we have to be very realistic that many of (these students) are looking for a job and work options, so we want to be sure to present that as a very strong reason to stay here,” she added. Crosley is looking to the alliance to support programs such as Campus Cleveland with financial and business resources, “beefing up the program” as the pandemic wanes. “If we can retain talent, that will attract more business,” she said. The alliance plans to hire a dedicated director who will serve as a lead coordinator for the initiative working out of Destination Cleveland’s office. With the new hire, Gilbert said, there will be, “at least one person that wakes up every day and goes to sleep every night thinking about this issue and that is going to make a real difference.”

and business officially launched a collaborative program to help steer K-12 students toward a career. The event took place last Tuesday, March 8, at welding equipment maker Lincoln Electric’s headquarters in Euclid. It brought Cleveland Metropolitan School District CEO Eric Gordon, Cuyahoga County Executive Armond Budish and Cleveland Mayor Justin Bibb out to support the official formation of the Greater Cleveland Career Consortium (GCCC), a collaboration connecting local schools with at least 50 companies that will offer training, apprenticeships and other programs aimed at exposing students to in-demand careers. Gordon also named former MAGNET apprentice program leader Autumn Russell as executive director of the GCCC. JPMorgan Chase promised $500,000 to the program. The GCCC is the culmination of a two-year planning process to create the program, which includes the participation of more than 40 organizations and 70 employers, Gordon said. “It’s the employers, educators, nonprofits, philanthropy, public entities, the city and the county, all of us, (who) can create an ecosystem that ensures that the largest group of new employees presented to our market every year — our high school graduates — will be career-ready,” he said.

Building the pipeline

Looking toward the other end of the spectrum, a diverse group from education, nonprofits, government

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

(also known as The Centers), a $65 million agency focused on health care, early learning and workforce training services.

struggled with diversity, Murphy was also excited to have a Mexican-American woman serve in this role.

After serving the nonprofit for a year, she was promoted to general counsel of The Centers in 2015. In this role, Hijar oversaw and managed the organization’s legal priorities, which ranged from labor and employment issues to mergers and acquisitions. She also supervised the nonprofit’s client rights and risk departments.

“The position presented an exciting opportunity to contribute to Walter | Haverfield’s evolution, while also providing me more professional growth,” Hijar said. “It is a new challenge within a new industry, but I feel that my experience and background aligns perfectly with the position. “There is a benefit coming from the outside, so to speak — from a completely different industry,” she added. “It allows me to ask questions that may lead to increased efficiencies and effectiveness.”

Two years later, The Centers promoted Hijar to chief operating officer, in addition to her role as general counsel. The opportunity gave her the added responsibility of overseeing compliance, facilities, human resources, information technology and quality improvement.

lizabeth Hijar knows the value of applying hard-won knowledge from outside the legal profession, and as the newly promoted chief operating officer of Walter | Haverfield, she aims to do just that. The Harvard Law graduate’s previous law experience includes serving as an associate at Bryan Cave Leighton Paisner’s New York office, as well as a stint with Thompson Hine LLP, a full-service business law firm in Cleveland. But her career changed trajectory in 2010, as she began to consult for Cleveland-area nonprofits. Four years later, she joined The Centers for Families and Children

“Through each of these capacities, I was able to streamline operations, minimize risk and reduce expenses,” said Hijar, a Texas native. “As a result, we were ultimately able to invest more in our infrastructure and expand our services to those in need.” Hijar’s efforts at The Centers caught the attention of Kevin Murphy, administrative partner of Walter | Haverfield, a Clevelandbased full-service law firm. Murphy had known Hijar for more than 10 years, as they were colleagues at Thompson Hine LLP and had stayed in touch after Hijar left the firm. When Walter | Haverfield’s former chief operating officer announced his retirement, Murphy thought of Hijar as a candidate. Hijar went on to accept the chief operating officer role in December 2021. In an industry that has historically

This increase in efficiencies and effectiveness is especially vital now, as Walter | Haverfield’s leadership transitions and the firm considers ways in which it will be reorganized for the future. At the same time, the firm is also changing its management structure, which Hijar will be involved with considerably. “When I started at Walter | Haverfield, we had 35 lawyers. Now we have nearly 100,” Murphy said. “We plan to increase the size of our offices in Cleveland and Columbus and will explore opportunities to expand our geographic footprint in the Midwest.” “At nonprofits, there is tremendous pressure to be as efficient as possible, which helps drive innovation,” Hijar said. “I look forward to transferring the lessons I learned at The Centers to Walter | Haverfield, in order to support the delivery of excellent service to our clients.”

Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive MARCH 14, 2022 | CRAIN’S CLEVELAND BUSINESS | 7

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PERSONAL VIEW

Preparing for cyberwar: 10 things to do now to protect your business BY CHRIS CLYMER

More than any other period in history, the threat of cyberwar is becoming more of a real threat amid the Russia-Ukraine conflict that could extend to EU and NATO member states — including the United States. As Russia-based cybercriminals become emboldened by Russia’s actions, they will increasingly target businesses with profit-driven attacks like ransomware, phishing and more.

BLOOMBERG

Why it’s important to be prepared

EDITORIAL

The innovation game T

he word “innovation” get thrown around a lot in Cleveland, and with good reason. Cities built on manufacturing are looking for a next act, and that includes smart manufacturing and other development buckets that rely on innovative approaches to pay off. There have, over the years, been a lot of efforts here to come up with plans that strengthen our innovation muscles, but none have quite paid off as hoped or needed. Maybe hope springs eternal, but the latest initiative looks highly promising, in both design and leadership. The Cleveland Innovation Project — an alliance of the Cleveland Foundation, the Fund For Our Economic Future, the Greater Cleveland Partnership, JumpStart and TeamNEO, with input from about 150 partners — last week released a report card for 2021, an overview of projections for 2022 and a list of goals for 2030. The project’s existence is an acknowledgement that Cleveland has to do better and is not as competitive as it needs to be with peer cities. Baiju Shah, president and CEO of GCP, was upbeat during a Zoom conversation the Crain’s editorial board had with heads of the five alliance leaders. The goals for 2030 — about $2 billion in research investment, $4 billion in capital invested in tech-led companies and big growth in technology jobs, all with diverse representation — are achievable if we find ways to work more collaboratively and harness the region’s best ideas. It was oddly comforting that Shah noted the effort didn’t hit some 2021 targets. “We can use that data to not only talk further about how we continue to improve, where we fell short, but then what do we want to see for 2022,” he said. The project needs that sort of hard-minded realism, not boosterism, if the goals are to be met. There are seven focuses, in the areas of smart manufacturing, health care, water technology, workforce talent, capital, digital equity and developing place-based innovation zones. The first three are based on our region’s existing strengths, and it makes eminent sense to build them out. The report card noted that the region last year created eight smart manufacturing “lighthouses” — factories that have integrated and scaled technology into the manufacturing processes — and its goal for this year is to increase that to 40. The Cleveland Innovation District has so far spurred $565 million in health

care investment, and in 2021, three water tech testbeds were made for companies to demonstrate their technology. These are all positive first steps. We’re not going to get ahead of ourselves and declare victory. But we are encouraged by where it’s going.

Laments

Attacks have happened, and more will happen — but they likely won’t be publicly claimed by Russia. Current attacks are likely coming from cybercriminals as Russian state actors are busy with the current conflict in Ukraine. However, if and when the conflict dies down, their focus may shift toward the European Union and United States. Because there is only a short window of days and weeks to implement security protocols to protect against these attacks, it’s increasingly important to have your cybersecurity controls in place. Organizations are more likely to become a target if they have a security weakness or a business partner is compromised. Therefore, organizations of all sizes should adopt a heightened posture when it comes to cybersecurity and protecting their most critical assets — not only during this time of increased uncertainty, but also on an ongoing basis. Here are 10 steps your business can take now to continually mitigate risks of a cyber-attack.

Non-technical controls

inancial circumstances and market dynamics change. We write about this all the time, dispassionately. It’s hard not to be at least a little emotional, though, about two developments last week: the planned sale of Nela Park and the planned closure of Eliza Bryant Village’s nursing home. The case of Nela Park, which is the home of GE Lighting, a Savant company, has a silver lining. The buyer, Phoenix Investors of Milwaukee, specializes in revitalization of old properties. Nela Park, built in 1913 and spanning more than 90 acres in East Cleveland, needs attention. GE Lighting will remain a tenant, but its footprint will scale back dramatically — and Phoenix, after renovations, should have an attractive property to market. Nela Park is a critical asset in struggling East Cleveland, and we hope the new owner lives up to its name and helps the property rise to former greatness. At Eliza Bryant Village in Cleveland, Danny R. Williams, the organization’s president and CEO, characterized the announcement that the 99-bed skilled nursing facility would close as “heartbreaking news for our residents and their families. It is for us, too.” The nursing home decision stems from longstanding financial and operational challenges that have been exacerbated by the pandemic and have led to hefty losses at the oldest continually operating African American-founded long-term care facility in the United States. Williams said Eliza Bryant will explore new sources of funding from the government and philanthropic organizations, and it has engaged a consultant to bolster its financial health. Eliza Bryant’s mission, Williams noted, “is to take care of the poorest of the poor.” Let this be a case of management creativity leading to the continued fulfillment of that mission.

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

Clymer is director and chief information security officer for MRK Technologies.

1. Evaluate business partners to identify whether any are likely to be at higher risk due to the current climate in Europe. Consider whether this changes network or application access you wish to grant high-risk partners or otherwise changes how you interact for the short-term. 2. Instruct employees not to click on strange emails, links, requests or give up credentials 3. Review disaster recovery/business continuity plans and test recovery processes 4. Schedule ongoing awareness training sessions across your entire organization 5. Review incident response plans and perform tabletop exercise to test preparedness

Technical controls 6. Enable multi-factor authentication (MFA) wherever possible 7. Make sure you are up to date on the most current updates and patches (Microsoft, third-party applications, networking and wireless equipment) 8. Block Russian .ru domains completely in web and email if not doing business there 9. While threat levels are higher, turn up security controls sensitivity for spam/phishing 10. Look for ways to identify anomalies through UBA and network traffic analysis, particularly across B2B connections Taking the time to make sure your cybersecurity basics are covered, such as reviewing your disaster recovery plans and ensuring they are accurate and up to date, as well as testing your security technologies, can make all the difference in protecting yourself from an attack. More than ever, now is the time to re-evaluate your cybersecurity measures and take proactive steps to prepare for potential risks.

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

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

8 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

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OPINION

Your future. Our focus. Let your goals be your guide Modesto “Moe” Ruggiero Managing Director– Wealth Management Senior Portfolio Manager Wealth Advisor

Ruggiero Wealth Management UBS Financial Services Inc. 600 Superior Avenue East 27th Floor Cleveland, OH 44114 216-736-8317

PERSONAL VIEW

modesto.ruggiero@ubs.com

ubs.com/team/ruggiero

As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/relationshipsummary. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. CJ-UBS-2031105874_4 Exp.: 10/31/2021

University Hospitals created a medical-legal partnership in 2018, integrating a Legal Aid attorney onto teams at the UH Rainbow Ahuja Center for Women & Children. | UNIVERSITY HOSPITALS

Medical-legal partnership creates healthier communities BY DR. AMY GRUBE

Shelly had weathered so many challenges during COVID-19: losing her job, caring for four children on her own, supervising remote school, and managing her son Calvin’s complex health conditions — which required frequent visits to my colleagues at our pediatric practice in MidTown, University Hospitals Rainbow Babies & Children’s Ahuja Center for Women & Children. Cal is deaf and has ADHD; he often speaks and yells at a high volume without meaning to, and the noise disturbs Shelly’s neighbors. At the same time, Shelly fell behind on rent. Due to the multiple concerns, building management sent her an notice to vacate. Shelly was scared. The situation looked pretty bleak. But this story has a happy ending. Two Cleveland-based, innovative programs were the difference between housing and homelessness for Shelly and her kids: a medical-legal partnership based at University Hospitals, combined with Right to Counsel in Cleveland Housing Court — led by Legal Aid and United Way. Medical-legal partnerships further health equity by integrating the unique expertise of lawyers into health care settings. Research shows social and economic factors contribute to 80% of a person’s health outcomes. The first medical-legal partnership was created in Boston in the late 1990s, and since then, the evidence-based model has expanded nationwide; there are now more than 450 health care organizations with an established medical-legal partnership in 49 states and Washington, D.C. Thanks to philanthropy from the Benesch law firm, University Hospitals created a medical-legal partnership in 2018, integrating a Legal Aid attorney onto our team at the UH Rainbow Ahuja Center for Women & Children. Legal Aid helps the patients and families we serve achieve a healthier and less stressful life. Shelly’s case is a great example. But, often more than one intervention is needed to create good community health, and that is why Right to Counsel in Cleveland Housing Court is so important. It provides another tool in our toolkit to stabilize housing. Legislated by the city of Cleveland, led by United Way, supporting outreach and evaluation, with legal services provided by Legal Aid, there is now a “right” to an attorney in Cleveland Housing Court for certain low-income families. In 2021, Legal Aid prevented eviction in 93% of Cleveland’s housing right to counsel cases (for a full report on 2021 success, go to freeevictionhelpresults.org). One of those cases was Shelly’s.

When Shelly mentioned the potential eviction at her son’s well visit, my colleague referred her to the Legal Aid office located within the UH Rainbow Ahuja Center for Women & Children. Health care providers at UH are trained to recognize when legal issues create barriers to health for our patients. Grube is medical We connect with Legal Aid attorneys through a streamlined referdirector of pediatrics at UH ral portal, and work with them to secure resolutions to the challengRainbow Ahuja es our patients face. Housing isCenter for sues are incredibly common, and Women & they rose during the pandemic. Children. Immediately after the referral, Legal Aid recognized Shelly was eligible for Cleveland’s right to counsel in housing, and another Legal Aid attorney got to work on her case. The attorney first helped Shelly submit the correct paperwork to be covered by the Centers for Disease Control and Prevention’s federal eviction moratorium, and helped Shelly through the complicated application for rent assistance funds. The Legal Aid attorney obtained a letter from her son’s UH medical provider to support the application for rent assistance. Even though the moratorium had ended by the time the money came through, Shelly’s landlord accepted the money and did not pursue eviction despite the noise concerns. Thanks to Legal Aid and UH working together, Shelly was able to keep a roof over her family while she looked for a new job. Unstable housing circumstances, such as lack of housing, multiple moves and rent strain, have been associated with adverse health outcomes for caregivers and young children. For example, evictions are associated with higher rates of depression, childhood hospitalizations and emergency department visits. Counties with higher eviction rates have higher rates of accidental deaths due to drugs and alcohol. Housing is health care. My employer’s medical-legal partnership with Legal Aid has proven repeatedly that the combination of civil legal aid and medical care can stabilize families and make our communities healthier places for children and families to thrive. Cleveland is fortunate to have a strong Legal Aid and United Way, with a Right to Counsel program that has already kept hundreds of families like Shelly’s safely housed since its launch just a year and a half ago. We as a community should continue to support a right to counsel in housing cases, as housing is a human right. I am proud to live in a city that is leading the way when it comes to leveraging institutional partnerships to improve population health.

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MARCH 14, 2022 | CRAIN’S CLEVELAND BUSINESS | 9

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DECADES OF EXPERTISE

PAGE 16

RACHEL ABBEY MCCAFFERTY/CRAIN’S CLEVELAND BUSINESS

MIDDLE MARKET

Weldon Pump traces its history of fuel system product manufacture to World War II. Today the company builds engine equipment for the aerospace, racing industries.

ELECTRIC VEHICLE

REVOLUTION

Bulking up region's supply chain Job One Workers on the assembly line at Lordstown Motors Corp. The EV manufacturer and its partner Foxconn believe in localization.

BY RACHEL ABBEY MCCAFFERTY

More than 90% of Ohio’s exports currently go to the internal combustion engine supply chain, according to a new report. It’s critical that the state adapt to the changing automotive market. And there are signs that it’s doing just that, but the region’s fledgling electric vehicle supply chain still has a ways to go. The “Ohio Battery Supply Chain Opportunities” report, released in February, was created by Benchmark Mineral Intelligence, which focuses on pricing and data in the lithium ion battery and electric vehicle supply chain, with support from economic development organization JobsOhio and environmental advocacy group Natural Resources Defense Council. The report noted the importance of

creating “supply chain hubs” in geographic regions. “Building supply chain hubs will help to reduce manufacturing cost and risk for industry participants, but also creates significant pressure to attract this major job growth and tax revenue opportunity to the United States before it locates elsewhere,” the report said. Some of the state’s strengths cited in the report are its history in the automotive supply chain, its proximity to manufacturers and resources, its workforce and its infrastructure. The biggest success in this space so far has been the attraction of Ultium Cells LLC to Lordstown in Trumbull County. Battery cell maker Ultium Cells is a joint venture between General Motors and LG Energy Solution. See SUPPLY CHAIN on Page 12

10 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

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FOCUS | MIDDLE MARKET

Here come the EVs — who's ready? BY DAN SHINGLER

With enough torque to go from zero to 60 mph in three seconds or less, electric cars can hurtle you forward at thrilling speeds or leave you behind, mouth agape in a cloud of carbon-free dust. Which experience you have will depend on whether you’re in the driver’s seat or watching from the side of the road. That’s likely to be the case for the vast network of auto suppliers, including those that still make up an important part of Northeast Ohio’s manufacturing sector. “Sooner or later ... it’s the future,” said Jerry Zeitler, president of Die-Matic Corp., a metal stamping company in Brooklyn Heights with a long history of working with automakers and other suppliers. “You’d be a fool not to think about it.” Like a lot of others in automotive, Zeitler’s reading the writing on the wall as the big automakers and some of their major suppliers keep announcing big investments and even restructurings to better serve the electric vehicle, or EV, market, as it’s known. The most recent scrawl, in large block letters, came when Ford Motor Co. announced March 1 it is reorganizing its entire company into two separate businesses, one devoted solely to EVs and the other to remain focused on vehicles with internal combustion engines, also known as ICE — perhaps as in, “cold

as,” since Ford’s plan is reportedly an effort by the company to fast-track its growth in the EV market. "We're literally splitting the business in half," CEO Jim Farley told Crain's sister publication Automotive News. There seems to be little doubt which half is shaping up to be Ford’s favorite child, either. Ford had already previously said that four out of every 10 vehicles it sells will be battery-powered by 2030, and with the announcement of its bifurcation, it also amped up its planned investment in EVs by $20 billion, to a total of $50 billion through 2026.

'Getting nervous' For some auto suppliers, and particularly for those heavily dependent upon drivetrain-related sales, the expected sea change is going to be a tremendous challenge. Electric vehicles might be the most modern cars on the road, and some have complex systems managing their power delivery and even some autonomous-driving abilities, but they’re also relatively simple compared to ICE vehicles. Instead of an engine and transmission that can entail hundreds, if not thousands, of parts, EVs are driven by a deck full of batteries connected to motors that drive the wheels of the car, often with one motor assigned to each wheel and all of them electronically synchronized and controlled.

Ford Motor Co. announced March 1 it is reorganizing its entire company into two separate businesses, one devoted solely to EVs and the other to remain focused on vehicles with internal combustion engines. | FORD MOTOR CO.

I mentor Y.O.U. youth “because it’s a privilege to partner with them as they consider their skills, values and traits, all while exploring green jobs that contribute to healthy urban ecosystems. I hope to create space where teens can reflect on building futures that are rich to them and helpful to their communities.”

See ELECTRIC on Page 12

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Cherise Kent Internship Program Mentor Green Corps Coordinator Holden Forests & Gardens Invest today in Northeast Ohio’s future workforce • youthopportunities.org MARCH 14, 2022 | CRAIN’S CLEVELAND BUSINESS | 11

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FOCUS | MIDDLE MARKET

SUPPLY CHAIN

From Page 10

The Lordstown plant is the venture’s first. The factory, which will be supplying facilities from Michigan to Tennessee, is located near the old Lordstown GM plant, where electric vehicle maker Lordstown Motors Corp. now resides. By the end of the third quarter of 2022, Ultium Cells expects to be in production on some lines in Lordstown, while it continues to add capacity.

Skills that translate Ultium Cells knew the region had people with the “technical knowhow” it was going to need, said Kevin Kerr, plant director at Ultium Cells. Assembling a vehicle and building battery cells are “very, very different,”

Kerr said. But manufacturing is about having technical skills, being able to complete standardized work and managing supply chains, he said. These are skills that translate. Ultium Cells isn’t just recruiting former automotive employees, but also from high-tech industries like chemical. “Simply, if you can bring that know-how and that willingness to learn, then we think there’s a tremendous opportunity to apply that to what we do,” he said. Ultium Cells’ local employees came partly from GM and LG, Kerr said, but the majority are employed by the joint venture. Kerr has been with General Motors for more than two decades. The Ultium Cells announcement is creating a “gravity” in Northeast Ohio for the electric vehicle battery supply chain, according to Jonathan Bridges, managing director of automotive

with JobsOhio. The battery space is a different industry than the traditional automotive supply chain that has been an area of strength for Ohio, and Bridges thinks there will be new players entering the market. These are companies that may be relatively small in terms of employees, but they’re bringing significant investment into Ohio, he noted. “We see it’s an evolving ecosystem that’s going to grow,” he said.

'We have it all here' This is a “transformational time” for manufacturing in the region, Jennifer Brindisi, director of marketing and communications for BRITE Energy Innovators in Warren, said in an email. BRITE is an energy technology incubator. “Pointing to Ultium Cells and that

2.8 million square foot battery plant — it’s reinvigorating industrial development. Now, there’s an indeterminate amount of development potential — to attract more mobility jobs and more companies that support those jobs. We have it all here — the base, the workforce and talent, access to world-class universities, and communities that are ready for the future of manufacturing,” Brindisi continued. The prior automotive experience of the workforce in Northeast Ohio has been a benefit to Lordstown Motors, said president Edward Hightower, who joined the electric vehicle maker at the end of 2021. The propulsion systems of electric and internal combustion engine vehicles are obviously very different, but the exterior components, like the bodies, are similar. It’s been helpful to have employees with ex-

perience putting a vehicle together, he said. “Building vehicles is very complex,” Hightower said. He’d argue that vehicles are the most complex consumer product on the market, with bodies and chassis and propulsion systems working together. And they’re often drawing on global supply chains, with design happening at every level. It’s a lot to coordinate, even without the widespread supply chain challenges the industry has seen in recent years. To that end, Lordstown Motors has been working to bring some of its supply chain under its own roof, creating components like wheel hub motors and battery packs in its massive factory. Supply chains arise when OEMs build vehicles in an area, Hightower said, and Lordstown Motors and its partner — Foxconn, the Tai-

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ogy at the Center for Automotive Research in Ann Arbor, Michigan. “But yes, it is going to be a problem for the From Page 11 smaller companies.” Smith says one challenge that Zeitler, for one, might be better prepared than most smaller compa- might be particularly tough for smallnies and stampers. Some of the er auto suppliers is serving two masstamped parts Die-Matic makes will ters at once. It’s not as though EVs are likely be applicable to EVs, with a lit- going to take over the market entirely tle tweaking — even electric cars will with the flip of a switch — and smallhave door latches, window trim, inte- er suppliers will likely be forced to rior molding and other stampable continue to serve the ICE market for parts after all. Die-Matic also is trying the revenues they need to sustain to stay in front of the challenge by themselves, while at the same time adapting to use more stainless steel adapting to the needs of the EV marand aluminum, which Zeitler says his ket for their long-term growth, if not customers involved with EVs say their very survival. they’ll need. He worries about some And there’s likely to be just as other stampers, though. much emphasis on cost-reduction with EVs as the traditionautomotive market is “OHIO FACES A SIGNIFICANT RISK TO alknown for, if not more. ITS ECONOMIC FUTURE UNLESS With batteries making up portion of the cost INVESTMENTS ARE MADE TO SHIFT aoflarge electric vehicles, autoAWAY FROM THE ICE SUPPLY CHAIN.” makers will need to keep the cost of the rest of the — A JobsOhio report on the EV and battery industry vehicle down, CAR’s Smith said. “There are fewer parts and differ“Some stampers who focused on and grew their business on engine and ent parts. The other part of is that the transmission parts are getting ner- parts have very different values. In an vous,” Zeitler said. “They need to rein- EV a huge, huge portion of it is in the battery,” Smith said. vent themselves.” It's going to be an environment If EVs are adopted the way Ford and some other big companies expect, it fraught with big risks, but also laden won’t be just stampers that have to re- with large opportunities. “Ohio faces a significant risk to its invent themselves to survive either. economic future unless in“Castings for engine vestments are made to shift blocks would disappear, and away from the ICE supply then when you think about chain. As such, Ohio has a parts that have wear in a unique opportunity to lead drivetrain, they disappear, in building a supply chain too,” said Ned Hill, former that capitalizes on the fast dean of Cleveland State Unigrowth in electric vehicles,” versity’s Levin College of UrJobsOhio stated in a Februban Affairs and now a proary report it issued on the fessor of economic EV and battery industry development in the John Kramer and its effect on Ohio’s inGlenn College of Public Afdustrial landscape. fairs at Ohio State University. As it always seems to work out, the smaller companies in the supply chain Seizing opportunities will likely face the biggest challenges. They not only lack the big R&D teams For some larger automotive comemployed by their larger counterparts panies, it’s not a matter of planning but face the risks of landing work with for some distant future, either. Goodone or just a few platforms that may or year, for example, has been pumping may not succeed in the fledgling EV millions of dollars into research and market. Getting hitched to a platform development of special tires for EVs, that sinks in the relatively uncharted and already has some available for seas of the new market could bring cars like those made by Tesla, with them to the bottom as well. many more to come, the company says. “If we get started in 2040, we’re Serving two masters dead,” said Goodyear chairman and “It’s a challenge for everybody,” CEO Rich Kramer. “We’re leading the said Brett Smith, director of technol- pack today and we’re very proud of it.

A Lordstown motor electric pickup, made in Northeast Ohio with items from local suppliers, including its Goodyear tires.

The Ford Mustang Mach-E marks the first expansion of the automaker’s Mustang lineup in more than 50 years and takes advantage of torquey electric motors to go from 0-60 mph in 3.5 seconds with an all-wheel drivetrain. | JAMES LIPMAN/FORD

… I’ve no doubt in my mind EVs are coming.” From its perch in Akron, Goodyear sees not only Ohio and North America, but the world market it serves. The U.S. may be slow to adopt EVs, but they’re already big in Europe and

China, and by 2040 Kramer and his company predict 57% of all passenger vehicle sales globally will be EVs — and that was a projection made before Russia’s invasion of Ukraine, which some are predicting will speed up the desire of governments and

people to abandon fossil fuels such as gasoline. “It’s an exciting time,” Kramer said, and his voice rises and quickens a bit as soon as he starts talking about the opportunities he sees ahead. Little wonder. Tires for EVs will

12 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

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have ICE be q the train safe sens omo eng year that trad and “I 123it,” K G be a on t still that sis i veh tech thos road “W by th

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FOCUS | MIDDLE MARKET wan-based electronics company that plans to buy the physical plant in Lordstown, as well as work with Lordstown Motors on manufacturing — believe in localization. It reduces supply chain risks and lowers logistics and tariff costs, he said, as well as creates local jobs.

A focus on local Scott Colosimo, founder of LAND Energy Inc., didn’t worry too much about whether there was a supply chain locally when he launched the Cleveland startup making two-wheeled electric vehicles. (The company started as an LLC in 2020, but then became LAND Energy Inc. in 2021 in order to be able to bring in venture capital.) He figured that what the company couldn’t find, it could do on its own.

have to handle more torque than ICE vehicles put out, they’ll have to be quieter so as not to be heard over the relative silence of electric drive trains, and they’ll still need to be safe and long-lasting — and with sensors and connectivity for autonomous EVs. That all requires more engineering and means that Goodyear will be able to sell a product that is far less a commodity than traditional tires, with higher value and margins to boot. “It’s a great opportunity to take a 123-year-old company and remake it,” Kramer said. Goodyear predicts there will still be about 900 million ICE vehicles on the road in 2040. Goodyear will still make tires for those cars, but that’s not where its design emphasis is now or will be. Tires for ICE vehicles are largely perfected, and technological advancements for those tires are hitting the end of the road. “We’ll stop designing for ICE tires by then, if not sooner,” Kramer said.

No shortage of optimism Other big companies that play in the automotive field are excited for reasons similar to Kramer’s, including Timken and TimkenSteel, in

“Now, we were surprised at how much we had to do ourselves,” he said. “And how much the established players weren’t prepared to do what we needed.” But Colosimo said he thinks there are a number of factors focused on that supply chain now. Challenges of recent years made both government and industry realize how dependent we were on a far-flung global supply chain, which can be easily disrupted. And there’s more of a focus on making products domestically today. As Colosimo put it, Cleveland has always been a place “where we make things.” The electric vehicle supply chain is the region’s latest chance to prove that right.

What makes a truly outstanding leader? The Leadership Deep Dive program from Weatherhead Executive Education targets four essential levels of leadership: self, teams, organizations and society. Learn to foster innovation among your team through this multi-dimensional, career-renewing experience, ideal for senior executives seeking ways to advance their organizations. Enroll today to benefit from our world-renowned instructors and expert one-on-one coaching. Sessions begin in June.

Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com Canton and North Canton respectively. Like Goodyear, those companies are already getting inquiries from their automotive customers about the products those companies will need for EVs. For TimkenSteel, those inquiries tend not to be for just steel, which is somewhat of a commodity even in the specialized forms made in Canton, but for entire components like bearings and gears made of special steels and designed to handle the extra torque put out by EVs, said Kevin Raketich, the company’s executive vice president of sales, marketing and business development. “We’re one of the few steel companies that not only make bars and tubing, but we manufacture components, Raketich said. “On the EV side, most of our products are actual components. … It gives us the opportunity to provide not only materials but more high-value components.” Similarly, the Timken Co. is working on special bearings that will be designed to handle that same torque — sometimes drawing on the expertise it advanced for the wind-energy industry, said Ryan Evans, Timken’s director of research and development. The coming EVs won’t need the valvetrain parts that Timken makes, but there will still be ICE vehicles, probably especially those used in the big-motor, tough environments in which the company’s products excel. Meantime, Evans’ company is gearing up to capture the new EV market with its expertise. “That actually lends itself to tapered roller bearings that Timken is known for,” Evans said of the torque-handling requirements of EVs. “And with a track record with the OEs (automakers) and our aftermarket companies, we get invited to the game early.” There are still a lot of question marks hanging over exactly what the EVs of the future will entail and what they’ll need, but there’s no shortage of optimism among some of the area’s big automotive companies. “It’s going to be a really exciting time to watch (the EV industry) and where you see it now is probably not going to be in 10 years,” said CAR’s Smith. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

Learn more and apply at weatherhead.case.edu/deepdive or by calling (216) 368-1503.

CRAIN’S THOUGHT LEADER FORUM FOCUS: Logistics and supply chain solutions PARTICIPATION DEADLINE: March 21 | CONTACT: conner.howard@crain.com

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whose firm recently expanded into security services, said the need for cybersecurity has been made overwhelmingly clear by the recent hostilities.

partner or trusted third party. This means companies must account for not just their own cybersecurity, but that of other organizations they rely on.

“This Ukraine-Russia thing has brought it more to light, but it’s always been there and it’s going to continue to grow,” Milliron said. “There’s money in (cyberattacks). There will be more and more money over time. Hacking won’t go away because of that.”

THE NEW ATTACK VECTOR

Both Pietrocola and Milliron said the Russian invasion of Ukraine appears to the be first modern conflict to fully incorporate the element of digital and information warfare. As Pietrocola put it, wars are no longer strictly kinetic — cyberspace is the new battlefield. “We just look at cyber as the next wave of the battlefield; it’s digital, not kinetic,” Pietrocola said. “Cyberattacks can really render not just a government, but all of us (helpless). It can take away things that we not only need, but want.” “Looking at the events occurring right now, I’m surprised by how cyber this war has become,” Milliron added. “Russia has really taken down Ukraine (digitally) over the last two weeks.”

trigger ever being pulled. In this way, the war in Ukraine is bringing broad awareness to what cybersecurity truly entails, as well as what’s at stake if the proper precautions aren’t taken, Milliron and Pietrocola stressed.

THE BEST DEFENSE

Companies of every size and across every industry are waking up to the fact that they operate in an interconnected world, with all aspects of their business tied to some form of modern technology. As a result, underfunded information security precautions are no longer an option. By having a response plan in place for a variety of scenarios – ranging from ransomware attacks and phishing scams to database theft and more – companies can mitigate risk and reduce the damage if the disaster strikes. The panelists also highlighted

to outsource this role to virtual CISOs instead. “The sooner you know (of a breach), the easier it is to mitigate your downsides,” Pietrocola said. Pietrocola also pointed to third-party service platforms as potential areas of concern; proprietary business information isn’t necessarily secure just because you use a cloud-based platform. Those environments can be compromised by something as simple as user error and misconfiguration.

“You’re giving (suppliers) very substantial amounts of identifiable information,” Milliron added. “They’re trusted gatekeepers of some of the most valuable data out there. Proper security and proper policies cost time and money and this is a new expense that businesses have had to absorb. I don’t know if any of us anticipated that.”

A BUSINESS NECESSITY

In the past, the business community has been hesitant to invest in cyber defense, according to Pietrocola and Milliron. However, they believe this attitude is changing as more business leaders realize the importance of defending their data.

Similarly, partner organizations – such as a financial institution or other vendor -- can open up a surprising degree of risk when it comes to cyberattacks.

“Bringing in a trusted security officer, even if it’s on loan for a couple hours a month at the least, is just as important as having an attorney or an accountant,” Pietrocola said. “In fact, you can argue it’s even more important. Businesses have a hard time with that expense. They see it as an expense, but I look at it as the entire defense for their business.”

According to Pietrocola, a little over half of major breaches in Q4 of 2021 could be traced to a supply chain

Milliron echoed that sentiment. “Think of anything that could happen in a small business that’s going to

“Think of anything that could happen in a small business that’s going to cost money, and there’s nothing that will crush your business more than a well-executed cyberattack. If you’re willing to hire a lawyer to protect you from some type of vendor dispute or you’re willing to have your accountant try to help you have less liability with your taxes, none of those things are going to cost you as much as a cyber breach would.” -- Trent Milliron | CEO, Kloud9 IT

cost money, and there’s nothing that will crush your business more than a well-executed cyber-attack,” Milliron added. “If you’re willing to hire a lawyer to protect you from some type of vendor dispute or you’re willing to have your accountant try to help you have less liability with your taxes, none of those things are going to cost you as much as a cyber breach would.”

“Bringing in a trusted security advisor, even if it’s on loan for a couple hours a month at the least, is just as important as having an attorney or an accountant. In fact, you can argue it’s even more important. SMBs have a hard time understanding that this is not an expense but a critical necessity to properly secure their business and their customers’ data.” -- Tony Pietrocola | President, AgileBlue

The effects of this modern, fully digitized war also can be seen in private sector sanctions levied against Vladimir Putin’s regime by companies including Google and Apple. When these brands and others like them limit digital services to countries engaged in an armed conflict, ordinary citizens feel a very real impact to their daily lives. “Apple just shut down their navigation apps for Russia,” Pietrocola said. “People couldn’t get into the subway. That’s infrastructure that gets taken for granted.” Milliron suggests that the new digital frontier opens the door more widely for conflicts between countries to bleed into sectors such as civil infrastructure and vital commodities, such as water and energy. Essentially, this means that entire populations can be targeted and attacked without a

of ent.

the danger of thinking that “it can’t happen to me.” “We’ve had companies come to us as potential clients with disastrous scenarios,” Milliron continued. “The damage is so bad sometimes. The amount of work to get them back to normal — you just don’t want it to happen to you. It is happening all the time.” Preparation alone isn’t sufficient, however. The right tools and equipment need to be put in place to make sure detection and response policies work properly. User management and training, device management and reliable access to certified IT personnel all are crucial aspects of IT infrastructure. Pietrocola recommends hiring a chief information security officer (CISO) if possible, adding that many medium-sized businesses are starting This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

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FOCUS | MIDDLE MARKET

Champion muscle-car driver Vince Khoury uses Oakwood-based Weldon Pump products. | CONTRIBUTED

FAST TIMES

Weldon Pump builds engine equipment for aerospace and racing industries BY DOUGLAS J. GUTH

Weldon Pump traces its history of fuel system product manufacture to World War II, when the company made deicing equipment for the B-24 Liberator bomber. Today, the Oakwood-based enterprise draws upon its decades of custom engineering expertise to build fuel pumps for general aviation and military defense, while a racing division creates fuel systems for drivers. Aerospace comprises about 80% of Weldon’s business. Modifying small aircraft pumps for the racetrack was a natural transition when considering the company’s past work, noted John McClure, vice president and general manager at Weldon. “Our pumps for racing go through the same stringent quality processes as our aircraft and military pumps,” McClure said. “Racing lagged behind at first because aerospace was our initial push, but we’ve been recognized by the market over the last five to 10 years.” Established industry experience has presented Weldon steady growth through the pandemic. As for its local bona fides, the business assembles its pumps and fluid components at a 30,000-squarefoot facility set to add employees later this year. Cradle-to-grave design, proto-

typing, manufacturing and testing all happen on-site. The company partners with major aerospace OEMs and distributors, enjoying further collaborations with Summit Racing and other sport suppliers. New-product development and a customer-centric focus have prevented the business from being gobbled up by conglomerates as has befallen similar entities. McClure attributed Weldon’s unflagging client support as a key facet of its continuing success. For example, the company provides contingency payments for the racers using its pumps. “When larger companies buy medium-to-small businesses in racing, they’re looking at profitability rather than the health of the industry,” McClure said. “We are very active in supporting races and the racers themselves, as well as the community around the sport.”

A culture of winning Now celebrating its 80th year of pump production, Weldon Pump began life as a category of Weldon Tool, launched in Cleveland by the Bergstrom family in 1918. The Bergstroms kept the pump division after World War II, selling in 2015 to Cleveland-born businessman Jeff Kelly and his family. The Bergstroms moved into rac-

ing in the 1970s, even as those early days saw the division as more of a “sidekick” to the aerospace business, McClure said. “We didn’t see racing as a viable growth segment,” he said. “This led to a lack of support and limited offerings for the racer. Over the last 20 years, this has been reversed, and we have a diverse and successful race product line that’s fueling winners every race weekend.” Relationship upkeep is a company norm, McClure added. Weldon holds appreciation events for its wheelmen, backing the racing community further through scholarship funds and additional perks. On race days, a Weldon engineer arrives on-site to work with crews and determine necessary performance improvements. Chardon-headquartered Hutter Performance — an engine producer centered on street and racing vehicles — has been buying Weldon’s fuel pumps, bypass regulators and filters for nearly 20 years. Owner Trevor Hutter likes working with a local business that operates right in his backyard. “Aside from being local, everything we use from them is top-quality,” Hutter said. “You want what you’re getting to do as advertised, do it well and perform through harsh environments.” Hutter’s main contact at Weldon is products manager Jim

Craig, whose yeoman’s work highlights a larger company edict on reliability and clear communication. “Weldon is always up front if you’re looking for a part, without stringing you along,” said Hutter. “With supply a big issue now, having someone be up front means a lot.” During the pandemic, Weldon has undergone many of the same materials slowdowns as its com-

here a long time. People even set recordings to watch, McClure said. “We’ve been in magazines for years, and have banner ads for track events and races that get streamed online. But to see us on TV was cool.” Weldon returns to racing television in 2022, a year that will also include a build-up of current market segments alongside new pump development for large business-class aircraft. To support this growth, the manu“IF YOU FIGHT FOR EACH DAILY WIN, facturing concern is machinists PUSH TO WIN THE MONTH, THEN WIN adding to its 40-person THE QUARTER, YOU’RE GOING TO WIN crew. New CNC machines will also THE GAME.” make an appearance at Oakwood HQ. — John McClure, vice president and general manager at Weldon For his part, McClure has learned to petitors. Even so, the company enjoy racing, not to mention helphad a strong 2021 and projects a ing create a culture able to weath2022 where it meets demand er any type of industry storm. through investment in critical “It’s a long process to create a stock items. culture that wins, and hard to Meanwhile, Weldon is getting maintain it through ups and the word out regarding its racing downs,” McClure said. “It’s a slow skill set through aggressive adver- process that can feel arduous, but tising. Last summer, the company it’s the daily wins that makes the ran television spots on Fox Sports process great. in support of professional drag “If you fight for each daily win, racing. The ads delivered an as- push to win the month, then win yet unquantifiable — though the quarter, you’re going to win nonetheless thrilling — amount of the game.” exposure and brand recognition. “It was exciting for the team, es- Contact Douglas J. Guth: pecially for guys who have been clbfreelancer@crain.com

16 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

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CRAIN'S LIST | ENGINEERING FIRMS Ranked by number of local registered engineers

RANK

COMPANY

LOCAL ENGINEERS 1-1-2022 REGISTERED/ TOTAL

TOTAL LOCAL STAFF 1-1-2022

ENGINEERING SPECIALTIES

NOTEABLE 2021 PROJECTS

TOP LOCAL EXECUTIVE(S)

GPD GROUP 520 S. Main St., Suite 2531, Akron 330-572-2100/gpdgroup.com

205 315

630

Civil, structural, electrical, mechanical, water

Independence-Rockside Road interchange, city of Cleveland Cycle H Pump Station, Akron Gorge Dam

Darrin Kotecki, president

AECOM 1300 E. 9th St., Suite 500, Cleveland 216-622-2300/aecom.com

54 100

184

Water, transportation, environment, buildings, construction management

East 185th Street rehabilitation, Opportunity Corridor environmental assessment/remediation planning, Lakewood Wastewater Treatment Plant digester improvements

Molly E. Page, vice president

OSBORN ENGINEERING 1100 Superior Ave., Suite 300, Cleveland 216-861-2020/osborn-eng.com

53 117

148

Civil, structural, mechanical, electrical, technology

MetroHealth Apex outpatient and administration facility, Sherwin-Williams headquarters, Cuyahoga County Corrections Center

Gary F. Hribar, CEO

MICHAEL BAKER INTERNATIONAL 1111 Superior Ave., Cleveland 216-664-6493/mbakerintl.com

35 41

Structural, roadway, aviation, environmental, bicycle/ pedestrian

Opportunity Corridor phase III, Red Line Greenway Jeff Broadwater, vice president, office pedestrian and bicycle facility, Circle Square development executive roadway improvements

CT CONSULTANTS INC. 8150 Sterling Court, Mentor 440-951-9000/ctconsultants.com

33 53

123

Municipal engineering, site/ civil, water/wastewater, transportation

GM Ultium battery plant water engineering, residential sewer plan in Ravenna Township, West Union Wastewater Treatment Plant design and administration

David Wiles, president

MIDDOUGH INC. 1901 E. 13th St., Suite 400, Cleveland 216-367-6000/middough.com

30 76

126

Multidisciplinary

National projects for the process, power, industrial and facility markets

Ronald R. Ledin, chairman, CEO

NEXUS ENGINEERING GROUP LLC 1422 Euclid Ave., Suite 1400, Cleveland 216-404-7867/nexusegroup.com

28 123

174

Process, mechanical, structural, electrical, instrumentation and controls

Renewable energy projects in the Midwest and Southeast; Jeffrey O. Herzog, president; expanded capacity for chemical client producing Marianne C. Corrao, executive VP materials for medical industry

KARPINSKI ENGINEERING 3135 Euclid Ave., Cleveland 216-391-3700/karpinskieng.com

27 74

Mechanical, electrical, technology, civil, commissioning

City of Cleveland Police Headquarters, CWRU Fribley Commons, Cleveland Clinic Mentor Hospital

James T. Cicero, president

STANTEC 1001 Lakeside Ave., Suite 1600, Cleveland 216-454-2150/stantec.com

27 39

Water/wastewater, mechanical, electrical/instrumentation and controls, structural/civil

NEORSD storage tanks/pump station upgrades, Westerly Wastewater Treatment Center sludge pump station and force main

Michael Reagan, vice president, science and technology

HWH ARCHITECTS ENGINEERS PLANNERS INC. 600 Superior Ave. E., Cleveland 216-875-4000/hwhaep.com

26 41

Electrical, mechanical, structural, process, controls

Industrial manufacturing, testing and research in tire and rubber, energy storage and construction materials

Joseph J. Matts, CEO

THORSON BAKER + ASSOCIATES INC. 3030 W. Streetsboro Road, Richfield 330-659-6688/thorsonbaker.com

24 68

Structural, mechanical, electrical, civil, commissioning

MetroHealth Apex outpatient and administration facility, Wickliffe City School District PK-12 school, Circle Square Library Lofts

Jeffery D. Miterko; Donald J. Schehl; Nathaniel J. Kobb, principals

MS CONSULTANTS 425 Literary Road, Suite 100, Cleveland 216-658-2512/msconsultants.com

24 31

Multidisciplinary

ODOT District 12/3 general engineering, ODOT District 4 Mahoning 680 rehabilitation, Cuyahoga County Department of Public Works right of way services

Anthony Urankar, VP, Northeast Ohio; Jeanne Mosure, VP of public affairs; regional director, Northeast Ohio

THE AUSTIN CO. 6095 Parkland Blvd., Mayfield Heights 440-544-2600/theaustin.com

22 47

116

Multidisciplinary

Confidential aircraft parts plant expansion; Simmons Michael G. Pierce, president, CEO; Foods - multi-project food and pet treats program; Ferrero Brandon Davis, vice president, operations; greenfield chocolate plant general manager

CHAGRIN VALLEY ENGINEERING LTD. 22999 Forbes Road, Suite B, Oakwood Village 440-439-1999/cvelimited.com

21 28

Civil, transportation, environmental, surveying, planning

Dunham Road widening, reconstruction and bike lanes in Walton Hills and Maple Heights

Donald F. Sheehy, president

HDR 1100 Superior Ave. E., Suite 6550, Cleveland 216-912-4240/hdrinc.com

19 29

Water/wastewater, planning, bridge/transportation, civil, automation, mechanical

Wastewater treatment plant automation upgrades and program management, Green and Shepard Road pump stations, Diverging Diamond interchange

Richard G. Atoulikian, vice president; Jennie Celik, associate vice president; Joanne Shaner, associate vice president 1

MANNIK & SMITH GROUP INC. 20600 Chagrin Blvd., Suite 500, Shaker Heights 216-378-1490/manniksmithgroup.com

19 29

Civil, transportation, Ford multi-site national facility improvements, Trilogy environmental, geotechnical, Health Services campuses, Lake County Solid Waste construction services, surveying Facility

Mark A. Smoley, senior vice president

SCHEESER BUCKLEY MAYFIELD LLC 1540 Corporate Woods Parkway, Uniontown 330-526-2700/sbmce.com

18 24

Mechanical, electrical, site civil, technology, fire protection

Crystal Clinic Othopaedic Center, King's Daughters Medical Center Sterile Processing, Northwood Behavioral Health

Chris Schoonover, president

MOTT MACDONALD LLC 18013 Cleveland Parkway, Suite 200, Cleveland 216-535-3640/mottmac.com

18 23

Civil, environmental, structural, geotechnical

NEORSD Westerly Storage Tunnel and Shoreline Consolidation Tunnel; I-90/Columbia Road interchange westbound reconfiguration, Westlake

Michael G. Vitale, senior vice president

DLZ 4208 Prospect Ave., Cleveland 216-771-1090/dlz.com

17 46

Civil, mechanical, structural

NEORSD Morgana Run Relief Sewer, Cleveland; Ohio Canal Thomas Hessler, vice president of Interceptor Tunnel and Basin final design, Akron; city of Northern Ohio operations Cleveland Division of Water general engineering

R.E. WARNER & ASSOCIATES INC. 25777 Detroit Road, Suite 200, Westlake 440-835-9400/rewarner.com

16 55

Electrical, structural, civil, mechanical, surveying

FirstEnergy engineering support, Akron Metropolitan Theodore A. Beltavski, president Housing Authority on-call services, Ford Cleveland Engine Plant No. 1 - new engine line

E2G|THE EQUITY ENGINEERING GROUP INC. 20600 Chagrin Blvd., Suite 1200, Shaker Heights 216-283-9519/e2g.com

16 47

132

Mechanical, material and corrosion, structural, civil, engineering software

—

David A. Osage, president, CEO

DLR GROUP|WESTLAKE REED LESKOSKY 1422 Euclid Ave., Suite 300, Cleveland 216-522-1350/dlrgroup.com

13 20

Mechanical, structural, electrical, environmental

Maltz Performing Arts Center; The Ohio State University Wexner Medical Center Outpatient Care, New Albany; Cleveland Museum of Natural History phase 2

Paul E. Westlake Jr.; Phil LiBassi; Matthew Janiak, senior principals 1

BLUESTREAK CONSULTING 25001 Emery Road, Suite 400, Warrensville Heights 216-223-3200/bluestreak-consulting.com

12 39

Electrical, mechanical, structural Cleveland Animal Protective League; Willows-Salmon Community, Medway, Mass.; Atcheson Place Lofts, Columbus

Peter Fitzgerald, director of engineering; Terry Francis, director of structural engineering

EUTHENICS INC. 8235 Mohawk Drive, Strongsville 440-260-1555/euthenics-inc.com

12 19

Civil, structural, surveying

I-77/Miller Road interchange, East 75th Street bridge replacement, Ohio Route 18 Safety Corridor

Alan R. Piatak, president

OHM ADVISORS 6001 Euclid Ave., Suite 130, Cleveland 216-865-1335/ohm-advisors.com

12 18

Municipal, landscape architecture, city planning, transportation, construction

Vision for the Valley - city of Cleveland; I-480 at Granger Road interchange - city of Garfield Heights; Wales Road city of Massillon

David Krock, vice president

Research by Chuck Soder (csoder@crain.com) | To prevent ties, companies with the same number of local registered engineers are then ranked by total local engineers. Information is supplied by the companies. NOTES: 1. Titles have been

shortened.

Get 46 firms and +190 executives in Excel format. Become a Data Member: CrainsCleveland.com/data 18 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

P018_CL_20220314.indd 18

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LIST ANALYSIS

Engineering firms staffed up after rough 2020 BY CHUCK SODER

Local engineering firms staffed up significantly in 2021 after paring back in 2020, judging by data from the Crain’s Engineering Firms list. The number of local engineers employed by companies on the list grew 6.3% in 2021, judging by 37 companies that provided three years of consistent data. The full digital list contains 46 engineering firms that have offices in Northeast Ohio. That increase more than makes up for 2020, when those same firms saw a 4.7% drop in the number of engineers they locally employ.

THE NUMBER OF LOCAL ENGINEERS EMPLOYED BY COMPANIES ON THE LIST GREW 6.3% IN 2021. THAT INCREASE MORE THAN MAKES UP FOR 2020, WHEN THOSE SAME FIRMS SAW A 4.7% DROP IN THE NUMBER OF ENGINEERS THEY LOCALLY EMPLOY. The list, however, is ranked by local engineers who’ve received a state certification labeling them as “registered engineers.” Employment for that subgroup has been more stable, falling by about 3% in 2020 and rebounding by the same amount in 2021. Larger companies did most of the hiring: The median company on the full digital list saw employment of local engineers grow 2.6% in 2021, but the median was 7.9% for the top 25 firms appearing in the print edition of the list. The largest company on the list, GPD Group, continued a long growth streak that was only briefly interrupted in 2020. As of Jan. 1, the Akron-based firm employed 315 engineers in Northeast Ohio, including 205 registered engineers. Both figures are up by roughly 14%. Six locally based companies in the top 10 submitted revenue figures as well, but their combined sales growth was almost entirely negated by inflation. Nationally, the engineering services industry should keep growing in 2022, according to a September report from market research firm IBISWorld. The report projected 2.5% employment growth and 3.3% revenue growth in 2022. The full Engineering Firms list is available in Excel or PDF format exclusively to Crain’s Data Members. Visit CrainsCleveland.com/ data to see what the full Excel list includes or to submit your firm. Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

Shortages of plastic pipe, such as this drainage pipe at a Medina building site, are among the worries of builders and land developers. | STAN BULLARD/CRAIN’S CLEVELAND BUSINESS

BUILDERS

From Page 1

Although high fuel costs hit all parts of the economy and daily life, they hit homebuilders harder than other parts of the economy, because their equipment uses lots of gas and homes are loaded with oil-derived plastic parts. Ken Simonson, chief economist for the Associated General Contractors of America trade group, wrote in an email that other construction materials have embedded energy costs associated with mining, manufacturing and shipping. “Builders also pay surcharges on many of the thousands of deliveries of (heavyweight) materials as well as fueling equipment to haul away everything from dirt to debris left over after a job,” Simonson said. He and others note manufacturers of items from steel to roofs already were scheduling frequent price hikes before the recent run-up hit. Shortages also are a new and growing source of concern, especially plastic pipe used in everything from installing streets in new projects to drainage pipes (often called drain tile) installed around home foundations. Herman “Bucky” Kopf, president and CEO of Kopf Builders of Avon Lake, is among the few building-business survivors of the high-inflation period in the 1970s and double-digit interest rates in the 1980s that brought it to heel. “We never had the scarcity of both materials and labor that I can remember,” Kopf said in a phone interview. “Certain materials may not have been available at different times, but there was always something to exchange it with, such as a different kind of lumber or flooring sample. It’s become a tough world.

The difference today from years ago is that you have the buyers. Now, it’s amazing how many buyers we have.” The growth of choices of textures, colors and types of materials for homes the past 20 years complicate the substitution process. Mike Kandra, president of Edgewood Homes of North Royalton, said in a phone interview, “Houses are not easy anymore. Everything is intricate. Everything is difficult. There are so many items that homeowners may want that companies have trouble making enough to fill an SKU (Stock Keeping Unit) with it.” He recalled that in the past, interior doors were largely similar. Now, there are raised, recessed and six-panel varieties. Many builders say the situation for them is just like that of consumers, who wait months to get new appliances or furniture. However, builders deal with hundreds of items in a house and that gets multiplied by how many homes they are building. Gary Naim, president of Petros Homes of Broadview Heights, said homes constructed by builders essentially are factories on different, individual sites. “The consumer does not see the conveyor belt behind a home,” Naim said. “Shipping and supply problems make you lose control. All that stuff you planned to get there at a certain time is not there. Each week, it is something new. Things that were always available are not. It’s drywall, sheeting and electrical panel boxes on allocation. We live in a free society. We expect things to be available. They just won’t be.” Typically, cabinet orders are specific for individual homes, especially given growing home customization in much of the industry. “Two or three weeks used to be our cushion,” Naim said. “Last year, we had 18 homes with cabinets se-

lected, (and) we were told a 10-week lead time. It was 26 weeks. You work around it, but it’s very frustrating for us and the consumer.” Builders say getting a garage door may take 11 months. Windows that used to take six weeks to get now require 16 to 20 weeks. Certain fiberglass units, including bathtubs, take eight months. The list goes on and on. Labor is in such short supply that builders sometimes wait weeks for crews to show. Kandra said he worried about getting supplies once last year as various delays piled up for a house, but various subcontractors were so delayed the timing all worked out. The result: lead times for build-

related materials, such as trusses. Lumber is slightly below its record price last year. But builders expect prices to rise as spring brings the busy building season. All those, along with rising land prices, add to the cost of the final home. The rise in existing-home prices from last year’s hot market lowered the gap for some move-up buyers to get into new homes, but the question is how long before costs neutralize that advantage. The concerns sometimes outweigh the saving grace of the current market. Plenty of prospective buyers, energized by the prospect of rising

“WE NEVER HAD THE SCARCITY OF BOTH MATERIALS AND LABOR THAT I CAN REMEMBER ... IT’S BECOME A TOUGH WORLD. THE DIFFERENCE TODAY FROM YEARS AGO IS THAT YOU HAVE THE BUYERS. NOW, IT’S AMAZING HOW MANY BUYERS WE HAVE.” — Herman “Bucky” Kopf, president and CEO of Kopf Builders of Avon Lake

ing homes are growing. Bo Knez, president of Knez Builders of Concord Township, said the national average is for homes to take two months longer than usual to complete. “When dealing with clients, the delay in finishing properties messes things up for us and them,” Knez said. “It delays when homeowners can get the house, so it’s a burden.” Some delays exacerbate climbing costs. To cite a tiny example, a delay in shipping of wall ties used in pouredwall concrete basements — a metal piece 8 inches long, in a variety of widths — has pushed them to 90 cents apiece from 7. But the largest single factor in constructing homes is lumber and

interest rates, allowed some builders to build and sell more homes last year than in the pandemic’s first year, but overall production in the region is still ebbing. Myers said he believes home production in Northeast Ohio is thousands of homes below potential demand. “These costs affect people, how they live and what they are able to do,” he said. “These are places where people are raising their families; I take that very seriously. Shortages and longer lead times are management headaches for builders. The public’s shouldering those higher costs.” Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

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LEAD-SAFE

ting compliance,” she said. “There’s got to be a better way.” Housing groups don’t expect certifications to jump until Cleveland starts penalizing reluctant landlords. For the last year, the building department has focused on launching the program and raising awareness, starting with outreach to owners of the 61% or so of units that are properly listed on the city’s rental registry. “It’s a high priority of the building and housing department to get this right, and to do it well,” said Sally Martin, who took the department’s helm last month.

From Page 1

Cleveland City Council passed the lead-safe ordinance in 2019, laying the groundwork for implementation starting in early 2021. The law requires residential rentals built before 1978 to be certified as safe — not free of lead, but free of hazards — before March 1, 2023. The city set a series of quarterly deadlines, by ZIP code, to avoid overtaxing the public-sector employees handling paperwork and the private-sector testers and contractors touching properties. The first due date passed a year ago. The last is Dec. 31 of this year. Of the estimated 100,000 rental units in Cleveland, only 11,490 have touched the process in some way, according to data from the city’s building department. Those homes are spread across 2,505 structures, from houses to downtown apartment towers. So far, 80% of those units have passed. Nearly 15% are marked as pending or exempt — unoccupied or built after Jan. 1, 1978. Only 5% have failed. Testing professionals say most early adopters are landlords with well-maintained, often updated, properties — not houses with original wood windows and chipping paint. The challenge for the city, and a growing industry devoted to cleanup, will be tracking down and tackling those tougher cases. “The good landlords, it’s not a problem. The bad landlords, it’s a problem,” said Dave Meyer, president of CTG Environmental LLC, a Parma-based consulting and testing firm.

Loans, grants and incentives The Lead Safe Cleveland Coalition, a public-private partnership focused on ending lead poisoning, has raised roughly $114.3 million to tackle the problem over five years. More than $50 million is coming from the Cleveland Clinic, which announced a large donation in January. The city is putting federal pandemic-recovery funds behind the effort. Most of that money is earmarked for property owners, in the form of loans, grants and incentives. The funding also is supporting efforts to train testers and educate contractors, who need a special certification to renovate and repair older properties under regulations from the U.S Environmental Protection Agency. Demand for grants, of up to $7,000, has been steady, said Matt Sattler, vice president of operations for CHN Housing Partners, a nonprofit administering the aid programs. But that free money is available only to relatively low-income landlords and tenants. The loans, topping out at $7,500 per unit, carry no such limits. Yet there are few takers. “We’re seeing a lot of landlords take a wait-and-see approach with the loan product, depending on what happens with enforcement,” Sattler said. Through nonprofit partners, the coalition also is offering incentives of $500 per unit for properties that complete the certification process. In the Mount Pleasant neighborhood, on Cleveland’s southeast side, April Williams took advantage of a CHN grant and the nonprofit’s crew of contractors to address hazards at her two-family home. Painting and environmental cleaning cost $4,500

Ensuring safe and affordable housing

Above: Zak Burkons of Pb Free Ohio talks to a tenant at a home on Cleveland’s West Side during a dust-wipe test for lead. Left: A handheld X-ray device detects lead paint on a stairwell railing at the Residences at 668 apartments in downtown Cleveland in January. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

Lead-safe certification requirement for rentals gradually takes effect The city of Cleveland is midway through the rollout of its lead-safe certification requirement for residential rental properties – from single-family homes to large apartment buildings. So far, compliance is spotty.

44119 44117

Deadline March 31, 2021 June 30, 2021 Sept. 30, 2021 Dec. 31, 2021 March 31, 2022 June 30, 2022 Sept. 30, 2022 Dec. 31, 2022

44110

44121

44112

44108 44114 44103 44106 44115 44102

44113

44111 44144 44135 44130

44104 44127 44105

44109

44120 44128

44122

44129 44134

44142 SOURCE: CITY OF CLEVELAND

to $5,000. That’s typical for the units where CHN is working. Williams paid $500. The 39-yearold, a patient observer at University Hospitals, has not submitted her certification paperwork to the city. Her tenant died in January, after contracting COVID-19. Now Williams’ mother is moving into the unit, rentfree. Still, Williams is glad to know the space is lead-safe. “I don’t have children there, but my mother watches kids from time to time. That’s something to think about,” she said. Programs for landlords must be simple to navigate and swift to access, said Karen Paganini, president of the K&D Group Inc. and chairwoman of the Downtown Cleveland Alliance, which represents property owners. K&D is working through certification at its Cleveland properties. The

CRAIN’S CLEVELAND BUSINESS GRAPHIC

regional apartment titan is spending $87,000 on high-tech testing to get 20-year exemptions for almost 3,000 units. That’s possible only for structures where lead is absent or abated.

‘Property owners are frustrated’ In a city replete with aging homes, where lead paint is a given, most rentals will need to be recertified every two years. They’re undergoing a simpler test that involves swiping window wells, windowsills and floors for hazardous dust. The outcome of that exam hinges on thorough cleaning, including vacuuming with a high-efficiency filter. Paganini did not expect to find lead in K&D’s buildings, many of which have been gutted and restored. But Burkons, using a handheld X-ray device, turned up traces of lead in the

stairwells at two historic downtown properties. The remediation bill is about $50,000. That’s a cost a large business like K&D can bear, without using grants or loans, Paganini said. Other landlords are less well-situated, though, especially on the heels of a pandemic and eviction bans that cut into their bottom lines. “There’s a lot of these small houses that may not even be worth the cost of remediation,” Paganini said. “This war chest of money needs to be disbursed.” The coalition is looking at ways to make grants more flexible and accessible, said Emily Lundgard, a senior program director at nonprofit Enterprise Community Partners. She’s heard feedback about the need to provide grants for window replacements, porch repairs and other projects that target common sites of lead poisoning. “We’re not here to punish people. We’re here to help,” said Ayonna Blue Donald, a former Cleveland building director who leads Enterprise’s work across Ohio. In investor circles, though, there is chatter about property owners who are cashing out, selling off rentals in Cleveland rather than dealing with the certification process. Burkons has talked to out-of-town landlords who recently entered the market, without realizing that they would have to pay for testing under the new law. “Property owners are frustrated, right?” said Ami Gignac, a local mining engineer who saw a market opportunity last year and became an RRP contractor — a designation that any paid practitioner must have to disturb paint in an older home. Now she’s getting calls from landlords who have failed lead tests. And she’s hearing from property owners who, certain they will fail, want to make repairs prior to testing. To meet the deep need for contractors, Gignac plans to become an EPA-certified trainer to teach other people, including property managers, lead-safe work practices. “I really think there is a puzzle between the property owners and get-

The law gives the department the ability to issue citations, with fines attached. Landlords who don’t comply could face misdemeanor charges in Cleveland Housing Court. The city has sent out early warning notices, but Martin said the new administration still is sorting through how to capture the “worst of the worst” properties. Officials and coalition members also are watching a lawsuit in Ohio’s Eighth District Court of Appeals, where an East Side landlord is challenging the Cleveland Housing Court’s decision to make compliance with the lead-safe law a precursor for evictions. Judge W. Moná Scott instituted that rule last spring. Landlords seeking an eviction must document whether a unit is lead-safe, pursuing certification or exempt. Backed by the Northern Ohio Apartment Association, the owner of Shaker House Apartments is fighting the rule as an overreach — and a burden unequally applied to landlords because of the city’s rolling geographic deadlines for compliance. “I’ve not gotten one phone call saying, ‘Oh, this dirty rotten lead law,’” said Ralph McGreevy, the apartment association’s executive vice president. “But I am opposed to the housing court becoming judge and jury. That’s not her job. Her job is to do evictions.” Citing the litigation, Scott would not discuss the case. But she said the rule reflects the court’s role in helping to uphold city laws. The court also requires landlords pursuing an eviction to have a current rental registration. Scott and her staff are working with property owners to allow an eviction first, followed by a lead-risk assessment, in cases where tenants won’t give testers access to a unit. She’s also aware that it can be difficult to safely clean up hazards in certain homes with tenants in place. “The court doesn’t want to frustrate the process,” she said. The broader goal is to ensure that tenants don’t have to live with lead, mold and other contaminants. “This is only going to get a lot tighter in Cleveland,” Scott said, “because you have a mayor now who also wants safe and affordable housing.” Martin said the building department is not relying on the court for code enforcement. City officials and civic groups are talking daily about lead and strategies for boosting education, deploying resources and addressing a longstanding public-health crisis. “We are not stuck doing it one way,” Martin said. “We absolutely will embrace change if we feel like it’s going to make this go better.” Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

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ORTHOBRAIN

room of teens. As costs for supplies and labor have risen sharply for dental pracFrom Page 1 tices, Mikhli said, the use of orclinical aspect of orthodontics and thobrain has helped “to add revepractice development to specialists nue at a time when the bottom line is more challenged. and general practitioners. German said the company re“Our goal is to be a total solution for dentists and dental prac- ceived some angel investments in tices to transform how orthodon- 2020 to support its growth, and tics is delivered,” German said in a officials at CareCapital contacted him about a year ago via LinkedIn phone interview last week. to start a conversation that eventually led to “OUR GOAL IS TO BE A TOTAL the firm’s investment. SOLUTION FOR DENTISTS AND (CareCapital’s director of investments knew of DENTAL PRACTICES TO German from his eduTRANSFORM HOW ORTHODONTICS cational work, German said.) IS DELIVERED.” CareCapital, found— Dr. Dan German, orthobrain founder ed in 2015, is big, with “majority and minority In announcing the fundraise, stakes in a variety of businesses orthobrain said the new capital that span the full dental industry will be used to advance and scale value chain,” according to its webits clinical and education ser- site. The firm’s portfolio spans vices, invest in software and tech- across China, South Korea, the nology services, and expand its United States and Europe. Officials at CareCapireach in North America tal did not respond to a and global markets. Gerrequest for an interview. man said orthobrain reA P A Bindusaran, execucently passed an importtive director of CareCapant milestone: It now ital, said in a statement works with more than that orthobrain “offers 1,000 dentists, mostly an invaluable service of across the United States clinical mentoring, treatbut also in Canada and Australia. It also is scalment planning and on demand support to dening up its staff, which at German tists providing pediatric present totals 31 payroll dentistry, braces and employees and contracaligner treatments. The tors. A year ago, he said, services significantly the number was about boost dentist confi10. dence, enhance patient “We’re seeing some experience and improve strong growth,” German outcomes.” He added said, though the compathat orthobrain “aligns ny does not disclose revwith the mission” of his enues. firm, which is “to Orthobrain’s pitch to Mikhli strengthen the heritage, dentists is this: “You are not providing orthodontic work access and community of dentistby yourself, and you are never ry while supporting technology innovation.” alone.” The company uses telemedicine to make available orthodontists who can deliver assessments ORTHOBRAIN and treatment plans for a dentist’s “EMPOWER(S) GENERAL patients. The orthobrain team examines the patient data, X-rays DENTISTS WITH THE and photos the dentist provides to CONFIDENCE AND determine if a case can be successfully treated in the dental RESOURCES THEY NEED practice or needs to be referred TO BUILD ORTHODONTICS out for more specialized care. In every state, general practitioners INTO THEIR PRACTICE.” are permitted to deliver ortho- — Hardik Desai, JumpStart’s dontics, so orthobrain is designed senior investing partner to provide dentists with a new revenue stream, and, as German sees it, offer a higher level of service to JumpStart’s senior investing patients by enabling them to re- partner, Hardik Desai, said orthoceive orthodontics service with- brain “empower(s) general denout going to a separate provider. tists with the confidence and reDr. Paul Mikhli, owner of sources they need to build Beachwood Dental Group, which orthodontics into their practice. has offices in Beachwood and We are excited to partner with Dr. North Royalton, described him- Dan German and his team as they self as “one of the earlier adopt- navigate the company’s rapid ers” of the orthobrain service and growth.” The JumpStart investCONSULTING said it has been “a great adjunct” mentENVIRONMENTAL is from its NEXT II Fund, a for the practice. $50 million venture fund focused He said the quality of the ortho- on early-stage technology startdontics work is high, and while ups in Ohio and the Midwest. working with an orthodontist virOrthobrain’s advancement of tually can take a little longer, pa- digital technology and AI learning tients have been “extremely hap- systems make it a high-growth, py” with the service. transformative company in Ohio, “They appreciate that this is not said J.P. Nauseef, president and going to be done at a different lo- CEO of JobsOhio, the state’s pricale,” Mikhli said. Another ap- vate, nonprofit, economic develpealing part for adult patients, opment organization, in a stateMikhli said, is that they don’t have ment. to make a trip to an orthodontist’s office that’s typically geared to- Scott Suttell: ssuttell@crain.com, ward kids, filled with a waiting (216) 771-5227, @ssuttell

THE WEEK

The Alcazar, a historic hotel-turned-apartments in Cleveland Heights, is part of the nearly 1,500-unit portfolio that Montlack Realty plans to sell. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

BUYING A PIECE OF HISTORY: A in Northern Ireland and Mexico for staff of 250. commercial real estate firm from Mil- the expansion. An accompanying dewaukee says it has a deal in place to cision to move its local operations to a SAD ANNOUNCEMENT: Eliza Bryant buy an iconic Northeast Ohio proper- new office at the AECOM Building Village will close its nursing home, in ty: Nela Park in East Cleveland, home from its currently leased space in the a decision that stems from financial of GE Lighting, a Savant company. Tower at Erieview provides a telling challenges exacerbated by the panPhoenix Investors announced signal about how the company is al- demic. The Cleveland organization Wednesday, March 9, that it has tering its office after the pandemic. announced in a statement Thursday, agreed to buy Nela Park in a transac- AMS said it will occupy the same March 10, that its board of trustees tion that would add more than 1 mil- amount of space at AECOM as it cur- “has made the difficult decision to lion square feet to its portfolio. Terms rently does across the street, though it shut down its 99-bed skilled nursing were not disclosed. The deal is expect- did not specify how much space it will facility,” effective June 8. Eliza Bryant ed to close by the end of March. Ben have. Real estate sources say it occu- Village, at 7201 Wade Park Ave., said it Sabol, a spokesman for GE Lighting, pies about 24,000 square feet. AMS “will continue to operate its affordable said the company will remain a tenant described the new AECOM space as senior housing, home care, senior at Nela Park under Phoenix’s owner- “a hybrid office that will better sup- outreach, adult day services, commuship, but with a smaller footprint than port the world of work.” It plans to sta- nity transportation, caregiver support it has at present. Sabol said GE Light- tion a staff it expects to grow by 153 groups and Elder Justice Center.” Staff A I N ’in S the C L Esame V E L Aspace N D Bas U Sits I N current E S S | Swill E P Thelp E M B relocate E R 3 - 9 ,residents. 2 018 | PA G E 2 9 ing occupies about three-quarters of C Rjobs the buildings at Nela Park, but those buildings are not filled. A reconfiguration of the company’s operations within Nela Park means “we will be in Advertising Section about 20% of the footprint,” Sabol said. He did not have an exact figure for space GE Lighting and its about 250 employees at Nela Park will occupy. Sabol said GE Lighting is signing a “long-term lease” at Nela Park.

CLASSIFIEDS

STRIKE UP THE BRAND: A little-known company in Canton has raised $204 million. Society Brands announced the capital raise Wednesday, March 9. The company said it will use the money to buy companies known as FBAs, which do business on Amazon.com. FBA stands for “fulfilled by Amazon,” and shoppers at the giant online retailer probably are familiar with the term from seeing items listed as being sold by a third party, but for which Amazon handles fulfillment and shipping. Society Brands, formerly known as EnCap33, will use the money to acquire enough FBAs to produce more than $1 billion in annual revenue in the next “few years,” it said. The funding is coming from i80 Group, an investment firm with offices in New York and San Francisco, which itself has backing from Silicon Valley wealth management firm Iconiq Capital. CLEVELAND WINS: AMS, the London-based global provider of talent outsourcing and advisory services formerly known as Alexander Mann Solutions, announced Wednesday, March 9, that it has selected Cleveland for a 60% expansion of its workforce. Cleveland was competing with cities

To place your listing in Crain’s Cleveland Classifieds, contact Ainsley Burgess at 313-446-0455 or email ainsley.burgess@crain.com

CLASSIFIED SERVICES BUSINESS SHOWCASE

C.W. JENNINGS INDUSTRIAL EMPIRE C.W. Jennings Global Enterprise Inc. C. W. Jennings Global Trading Centers Inc. C. W Jennings Industrial Holdings Inc. C. W. Jennings Industrial Capital Inc. C. W. Jennings Industrial Building Inc. For Details Call Headquarters (216) 505 - 5049 / (855) 707 - 1944 MARCH 14, 2022 | CRAIN’S CLEVELAND BUSINESS | 21

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PEOPLE ON THE MOVE

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

ARCHITECTURE

ENGINEERING / CONSULTING

FINANCIAL SERVICES

LAW

REAL ESTATE

CBLH Design, Inc.

R.E. Warner & Associates, Inc.

Stout

Ulmer & Berne LLP

IRG Realty Advisors

CBLH Design, Inc. has promoted Scott G. Weaver to Principal. Weaver will mentor staff and provide firm management and project leadership. Weaver was instrumental in successful projects for The MetroHealth System, The Ohio State University and Geauga County Public Library. He is a high energy design professional who brings enthusiasm and dedication to every project he is involved in. For more information about CBLH Design, Inc. visit cblhdesign.com.

Matt Benovic, PE, SE, PMP has been promoted to Director of Project Management. He has 15 years of experience Benovic in design and management of projects across the industrial manufacturing sectors. He has a proven ability to effectively direct the people, processes, and business priorities of projects, from repairs to major new construction. Jen Kalin, RA, LEED AP has been promoted to Director of Business Development. She has Kalin 18 years of experience in design and management of projects involving public facilities, warehouses, maintenance facilities, manufacturing plants, and office buildings. Jen’s commitment to excellence, dedication to clients, and personable demeanor make her an effective leader and outstanding client liaison.

Stout is proud to announce Matthew Hricko has been appointed leader of the Cleveland office. In addition to maintaining key client relationships, his new role will prioritize expanding the Cleveland office by supporting Stout’s growing service offerings in the region and recruiting individuals who share Stout’s core values. Matthew is a Managing Director in the Valuation Advisory Group, where he leverages his 15 years of financial advisory experience to provide valuation and corporate finance consulting services with an expertise in projects involving ESOPs. Having worked on over 800 projects in his career, he brings broad experience in a variety of industries and an energetic approach to his new role. For more information, visit stout.com.

Ulmer welcomes Ilir Pipa as a partner in the Business Law Practice Group. Ilir focuses his practice on securities regulatory matters, mergers and acquisitions, and general corporate transactions. He also represents businesses of all stages in private and public offerings and venture capital projects, and uses his depth of experience to assist clients operating in a spectrum of industries. He earned his B.A. from Baldwin Wallace College and his J.D. and MBA from Case Western Reserve University.

IRG Realty Advisors is proud to announce Andi Green has been promoted to Senior Vice President, Director of People Operations. Green has managed tremendous growth over her 12 years with the company. She has developed her department, improved employee benefits, and implemented critical policy and procedures. Recently, she lead several successful company initiatives centered around employee development, evaluation, competitive pay & benefits, and employee retention.

ENGINEERING / CONSULTING

Civil & Environmental Consultants, Inc. CEC welcomes Anthony Yacobucci, P.E., as a vice president and the firm’s corporate public sector transportation services lead. His strong technical background in structural engineering includes more than 34 years of managing transportation projects from conceptual planning through construction. Previously, Anthony served as the Chief Engineer of the Ohio Turnpike and Infrastructure Commission. He is a Professional Engineer in Ohio and a member of the American Society of Highway Engineers.

GOVERNMENT

Northeast Ohio Regional Sewer District Marjorie Chambers was appointed by Cleveland Mayor Justin Bibb and began her term in March of 2022. Ms. Chambers is the Chairperson of the Northeast Ohio Community Action Program Council (NEO-CAP) and member of the United Auto Workers Union. She is a skilled tradesperson and has worked at General Motors for over 40 years. A two-time graduate of Cuyahoga Community College, Ms. Chambers holds a Bachelor of Business Administration in Management and Labor Relations from Cleveland State University.

NONPROFITS

United Way of Greater Cleveland

REAL ESTATE

United Way of Greater Cleveland is pleased to welcome Michael Brown as senior director of Human Resources. He has broad responsibility for Human Resources strategy, planning and initiatives, including talent acquisition, employee relations, performance management, organizational learning and succession planning. He previously held leadership roles with the City of Twinsburg and Cuyahoga County Government. Michael received a B.A. in Philosophy from Miami University and is a SHRM member.

Surety Title Agency, Inc.

1x5

We are pleased to congratulate and thank Robert Greggo on his 30 year anniversary as General Counsel with Surety Title Agency, Inc. Bob is an expert in commercial real estate transactions and as such he has given numerous seminars as part of continuing education courses. His proficiency with working on community development corporation projects, handling complex Low Income Housing Tax Credit ventures, and New Markets and Health Care facilities transactions is well known throughout the industry.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS

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CAPTRUST CAPTRUST is pleased to welcome Sarah Majeski to the Akron team, serving as a financial advisor for new client relationships. Sarah provides advice, guidance, direction, and education to fiduciaries and investment committees for institutional clients. Sarah has nearly 20 years of industry experience and holds the Accredited Investment Fiduciary® and Certified Plan Fiduciary Advisor designations. She is a board member for Dress for Success Cleveland.

22 | CRAIN’S CLEVELAND BUSINESS | MARCH 14, 2022

Cleveland Private Trust Company Jim Hojnacki joins CPTCo as Managing Director & COO. He is responsible for participation in the management activities of CPTCo and business development. Jim began his career in public accounting at PricewaterhouseCoopers and has spent over 30 years in the Finance and Banking industry. For more information on Cleveland Private Trust Company, visit www.cptoh.com

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

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