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5/14/2010
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$1.50/MAY 17 - 23, 2010
Vol. 31, No. 20
Supply chains hum as sales optimism rises
State plan for equal Medicaid payments riles nursing homes Currently, they’re able to bill for separate services
Manufacturers shipping larger quantities, see customers come back as signs point to revival
By SHANNON MORTLAND smortland@crain.com
Nursing homes across Northeast Ohio are racing against the clock. As time ticks away and the state’s biennial budget — which begins July 1, 2011 — draws closer, nursing homes are lobbying state legislators to change a plan to provide a new average Medicaid payment for services rendered at nursing homes. The plan initially was approved in House Bill 66 for the current biennium budget, but it must be approved again if it is to be implemented in the next budget bill, said John Alfano, president and CEO of Aopha, the association for Ohio’s nonprofit nursing homes. Under the state’s plan, nursing homes would receive a set Medicaid reimbursement per patient, rather than billing separately for various services as they do now, said Harvey Shankman, executive director of Eliza Bryant Village, a nursing home in Cleveland’s Hough neighborhood. Some nursing homes would lose money, while others would gain because the state plans to average out the costs for all of Ohio’s nursing homes, he said. As a result, some nursing homes might be forced to cut staff and services to reduce overhead, become part of a chain of nursing homes, or See HOMES Page 8
By DAN SHINGLER dshingler@crain.com
M
anufacturers finally are busy enough to keep companies in their own supply chains busy with steadier volumes than most have seen in more than a year and, in some cases, backlogs. That situation has a lot of companies running with less stress, fewer uncertainties — and more employees. But you don’t have to tell Chris Haas there has been a turnaround and a resurgence of confidence on the part of area manufacturers. As CEO of All Pro Freight Systems Inc. in Avon, he can see it on the floor.
FILE PHOTO/RUGGERO FATICA
Chris Haas, CEO of All Pro Freight Systems Inc. of Avon, says his warehouse is 70% full; a year ago, it was 70% empty.
Mill operates at 70% capacity; employment four times last summer’s level, when production stopped
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The “new normal” in the steel industry might be taking hold on the banks of the Cuyahoga River, where ArcelorMittal’s Cleveland Works is seeing steadily increasing demand for its products — even if
See OPTIMISM Page 11
“(Technology, defense, and forging and industrial markets) have all shown signs of increasing demand, improving frequency of shipments and moving up due dates.” – Larry Fulton, CEO of Lefco Worthington, which makes pallets, crates and steel containers used in shipping
Signature flame burns bright — and often — at ArcelorMittal DAN SHINGLER dshingler@crain.com
Mr. Haas says his 600,000 square feet of warehouse space is about 70% full. A year ago, the space was 70% empty, as most customers that used All Pro to warehouse and eventually distribute their inventory decided they didn’t need inventory. What’s got Mr. Haas’ world rightside ’round, he said, is manufacturers’ belief they will sell their products, and that they’ll do it soon. As a result, they’re shipping him larger quantities of consumer-ready appliances, lawn equipment, plastic bottles and other materials that producers and retailers need throughout the supply chain. “We had one customer give us a
company officials do not yet see a time coming when demand will reach levels common before the economic crisis. “After a challenging 2009, we are now seeing signs of improvement in the economy and steel market,” ArcelorMittal spokeswoman Katie Patterson told Crain’s last week.
“However, the recovery remains slow and progressive.” The mill currently is operating at 70% of capacity, said Mark Granakis, president of United Steelworkers Local 979 in Cleveland, which represents workers at the mill. While that figure sounds far from where both Mr. Granakis and the company would like the mill to be — and it is — it’s at least a long way from the bottom hit in 2009. Last year, in the heart of the recession,
the mill was idled for the summer, and the familiar flame of its blast furnace visible to drivers passing by the mill was snuffed out for the first time in recent memory. Today, the flame is back and Mr. Granakis has about 1,070 members working at the plant, with two or three more called back each week, he said. When no steel was made last summer, he had only about 270 people doing maintenance work
INSIDE Know your Cleveland history? Prove it! As part of our 30th anniversary celebration, we test our readers’ Cleveland knowledge. ■ By how much did the Gateway District tax pass? ■ How much did Al Lerner pay for the Browns? ■ What year did The Cleveland Press cease publication? Take the quiz on Page 19 to test your skills.
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