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MAY 19-25, 2008 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

Parker CEO puts people Mr. Washkewicz also doesn’t London hedge fund. CHOICE BITS hesitate to replace people who aren’t When it was formally introduced first — if they perform performing, according to the column. last August, GodTube was the Excerpts from recent Editor’s Choice blog entries on ■ When an executive he had fastest-growing web site, as rated by CrainsCleveland.com Parker Hannifin Corp. was among the companies cited in a May 12 assigned to a Swedish company comScore, attracting 1.7 million Wall Street Journal column about Parker had acquired disclosed that unique visitors for the month, The mature cyclical business not showing the human factor needed for suc- he had given up trying to persuade Times said. much growth.” But now, he said, cessful corporate dealmaking. managers there to purchase some The traffic remains about the steel “has become a legitimate growth “Corporate deal-making, as we’ve supplies from non-Swedish compa- same today. The site shows Christian sector again.” seen recently, is a lot like dating and nies, Mr. Washkewicz assigned videos and features a flip-through Michael Siegal, CEO of Cleveland- marriage,” wrote Carol Hymowitz in someone else to do that job. Bible and prayer blogs. based Olympic Steel, said simply, The Journal’s “In the Lead” column. “They were sitting on $5 million in GodTube offers sermons and “There’s not a lot of rust anymore.” “Success forging a partnership has as annual potential savings because theological debates, but it also has Steel’s recovery “is certainly much to do with propitious timing they wouldn’t place a purchase Christian rap videos and low-budget another example of how global and mutual attraction as it does with order with a company outside skits like “See man watching porn demand for commodities is breathing adroit negotiating — and it’s often Sweden, and we had to persuade get caught by Jesus!” (which plays new life into raw materials ranging difficult to predict the outcome.” them otherwise,” he said. out exactly as the title suggests, ISTOCK PHOTO from potash to wheat and corn,” the Parker, a diversified manufacturer, according to The Times). newspaper reported. has made about 100 acquisitions in One of the most popular videos on Steel’s on a roll that’s “Global growth is starting to over- the past 10 years, “and everything the site is “Baby Got Book,” a satire likely to continue run us,” Mr. Siegal said. fits our core business and is some- of the rapper Sir Mix-A-Lot’s ode to The weakness of the U.S. dollar thing we know well,” CEO Donald the full-size derrière, “Baby Got ■ Steel is back in a big way, according compared with other currencies also Washkewicz told Ms. Hymowitz. In Back.” to a Cleveland-centric story that ran is causing titanic changes in the steel many cases Parker has acquired In it, Dan Smith, a 34-year-old May 14 in USA Today. market, according to Mr. Parr. former rivals, “so we know the minister at a church near Cleveland, The newspaper noted that prices “Steel exported from the USA, customers, the markets, and the “simultaneously praises godly for hot-rolled band steel, a widely thanks to the dollar, is competitive margins we can achieve,” he added. women and pokes fun at aspects of followed benchmark, have nearly even in nations with lower-cost steel “He also strives to keep talent at Christian culture,” The Times said. doubled from the start of last year to a production, he says,” USA Today acquired companies by communi- “He dances around with a gold neck record of more than $1,100 a ton. reported. “Meanwhile, the weak cating frequently with employees medallion reading KJV (for King “And rather than being the Who’s dollar is making U.S. steel compa- and sticking to an orderly integration James Version) and tweaks Sir Who of Chapter 11 companies that nies irresistible buyout targets for process,” Ms. Hymowitz wrote. “He Mix-A-Lot’s lyrics so that ‘butt’ they were a decade ago, steel foreign steel companies.” assigns an ‘integration manager’ to ISTOCK PHOTO becomes ‘Bible’ and ‘she looks like companies are seeing their stocks Looking forward, Mr. Siegal told the each acquired company to get to a total prostitute’ turns into ‘looks soar,” USA Today said. “The Market newspaper that because many mills know its managers and rank-and-file This site is strictly like Mother Teresa.’ ” Vectors Steel exchange traded fund, are owned by foreign companies, employees and to help them under- by the Good Book The video has logged more views which mirrors the industry’s stocks, they’ll just as soon export to their stand Parker Hannifin’s goals. He on GodTube than it has on YouTube. is up 62% over the past 12 months home countries as sell in the United then sends teams of supply-chain ■ A Cleveland-area minister is one Mr. Smith told The Times he appre- and 23% this year. That blows away States. That situation may cause prices and sales managers, who share how of the big stars of GodTube.com, a ciates the exposure, though he the 7% drop in the benchmark to stay high, go higher or even create they get the best prices for both YouTube knockoff for the evangelical prefers promoting his music in Standard & Poor’s 500 index the past “spot outages,” he said. supplies they use in manufacturing crowd. places where he can reach nonbe- 12 months and 4% drop in 2008.” Don’t expect additional supplies and for their own products. Finally, The New York Times on May 12 lievers, like call-in radio shows. “I Mark Parr, an analyst at Cleveland- of steel to ease the situation, Mr. Parr an innovation team urges acquired looked at the rise of the site, which just know there aren’t a lot of based KeyBanc Capital, told the said: “We’re five years into this. companies to launch new products recently won a $30 million invest- unchurched or de-churched people newspaper, “Steel was seen as a Basic materials cycles last decades.” to expand their units.” ment from GLG Partners, a big going to GodTube,” he said. CCLB 05-19-08 A 10 CCLB 5/15/2008 4:00 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION It’s a crime arc Dann hasn’t been charged with an actual crime, and he may never be. However, he most assuredly is guilty of diminshing the stature and effectiveness Mof an office that’s charged with holding accountable those who would violate the laws of the state of Ohio. Mr. Dann resigned his post as Ohio’s attorney general last Wednesday under great pressure to do so from members of his own party amid charges of cronyism and sexual impropriety in his office. Mr. COMMENTARY Dann wasn’t immune from the indiscretions, admit- ting a couple weeks ago that he had an affair with his 28-year-old former scheduler, Jessica Utovich. The revelations of personal misconduct were It’s like airport security on steroids embarrassing enough. However, we also found appalling the admission/excuse offered by Mr. recall reading a newspaper op-ed the contents of her purse. She was wand- Cavaliers. An immensely successful busi- Dann that the Democrat from Mahoning County piece some months back about ed, questioned, the whole shootin’ nessman, Dan can attribute at least part essentially wasn’t ready to take on the important the Transportation Safety Adminis- match. And, of course, now she had to of that success to his strong belief office for which he ran in 2006. tration staff at our airports being race to the ends of the Hopkins earth, in empowering people to make appro- Iundertrained and underpaid, considering also known as Concourse D. She got priate decisions for their company or “I don’t know how many people here expected me the importance of their role in our there, only to watch in tears as the gate organization. to win the election, but I certainly was not among post-9/11 world. attendant closed the door. It seems to me that the TSA guard dog them,” Mr. Dann stated during a May 2 press confer- Well, last week, my wife experienced Next possible flight to Chicago went to might have given Janet a break on ence where he revealed his affair and addressed firsthand how serious they are O’Hare, which meant that she the license. Did a 2-day-old mistake sexual-harassment allegations against his close asso- about their jobs (and, it appears BRIAN had to redo all her on-the- suddenly make her a suspicious character? ciate, Anthony Gutierrez. “I was not as well prepared to me, how bored the TSA folks TUCKER ground plans, incur extra costs Shouldn’t that TSA staffer be able to for office as I should have been, and I am heartbroken must be at Cleveland Hopkins in order to retrieve her luggage make a decision about whether it was by that and I take responsibility for that.” International Airport). (which, of course, was on the appropriate to take that long with How Mr. Dann could have expected to lose in an She was on her way to plane that went to Midway anyone on a technicality? Aren’t they election year when Democrats were shoo-ins after the Chicago for a long-awaited 50th Airport). trained to spot real signs of suspicious birthday celebration for her She finally got to Chicago, met activity? scandal-plagued administration of Republican Bob sister. Juggling family, work and up with her sisters, and probably Every time my wife and I and the kids Taft, we don’t know. As for why someone who isn’t volunteer activities as she decided to take some solace in a fly, we thank the TSA folks. We don’t ready for prime time would run for office, we won’t prepared for the trip, she inad- glass of wine and some power complain about the time it takes for the ask that question, as it seems to happen all too often. vertently forgot that her own shopping. But she knew she’d be screening because we know why it’s It’s curious that a contrite Mr. Dann only lately birthday had just passed. She got to the facing the same thing coming home, so important. In fact, it’s usually Janet acknowledged his fallibility. Clueless novice certainly airport in plenty of time for her flight, she’d be heading to the airport several calming down her anxious husband wasn’t the image Mr. Dann cast for the national only to have the TSA folks discover hours early in order to get home on time. about the lengthy process. media as he set off last year on a campaign to that — egad! — her driver’s license had Now, this is not meant as an excuse for But in this case, the TSA folks blew it, punish those parties that played a role in creating expired two days prior. anyone forgetting that their driver’s license caused my wife a lot of unnecessary You can probably guess where this is needs to be renewed, but come on ... anxiety, money and precious time she the foreclosure fiasco in Ohio. going. Every item in her carry-on was It brought to mind a speech I’d heard could have spent with her sisters. That’s Consider the photo of an imposing Mr. Dann, emptied and examined, along with all by Dan Gilbert, owner of the Cleveland not what we pay them to do. ■ shot from ground level looking up at the hulking man, that accompanied an Oct. 8, 2007, story in The Wall Street Journal headlined, “ A New Mortgage PERSONAL VIEW ‘Cop.’” The story, which carried the subhead, “Dann, Ex-Footballer, Tackles Fraud Cases, Targets Wall Street,” contained bravura quotes from a confident, combative Mr. Dann. New energy bill to spark industry growth “Everyone who helped create this crisis will be held accountable,” The Journal quotes Mr. Dann as telling By RICHARD T. STUEBI Richard T. Stuebi is the BP Fellow for fuel cells, clean-coal power plants, next- a group of mortgage officials. “My job is to be the bad Energy and Environmental Advancement generation nuclear technologies, and hen Gov. Ted Strickland at the Cleveland Foundation. energy efficiency. cop, and I’m comfortable with that role because I put his signature on a major ■ Of that 25%, half (or a total of 12.5%) believe a terrible crime has been committed.” energy bill last month, it New companies will start up, and must be renewable energy — primarily Less than eight months later, Mr. Dann stands as meant that Ohio finally had existing companies from outside Ohio wind, solar and biomass — and 0.5% a man who undercut his personal authority and that joinedW the majority of states that have will suddenly begin looking at our state must come from solar energy. of his office, turning them both into laughingstocks. adopted energy policies to capture the as a place to set up shop. Until now, we ■ Half of the 25% must be generated In our view, that’s the biggest crime of all. massive economic growth offered by had lagged behind other countries and from sources located within the state. ■ How long it will take the attorney general’s office advanced energy. states that had been more proactive By 2025, overall energy use in Ohio to shake off the blows to its reputation and regain its The bill’s requirement that an increasing in embracing advanced energy. Now, must be reduced by 22% as a result of share of electricity sold in Ohio come however, this new industry can begin to bearings remains to be seen. However, the energy-efficiency programs. from environmentally friendly sources bloom in a state that for decades has Of critical importance, the new law distraction created by months of controversy creates a large local market to be served been associated mainly with old-line includes a gradual ramp-up of require- swirling around the Dann clan could not have by companies that manufacture wind manufacturing. ments beginning as soon as the end of helped the office conduct its business on behalf of turbines and other advanced energy To build the advanced energy industry 2009, which means the advanced energy the people of Ohio. Both they and the many fine technology equipment, and by compa- in Ohio, the bill requires that: industry in Ohio can begin to emerge lawyers in the AG’s office deserve better leadership nies that install solar panels and energy- ■ By 2025, 25% of electricity sold in right away. than they’ve gotten. We hope it’s coming soon. efficient lighting and heating/cooling Ohio must come from advanced energy Also important is that utilities are subject systems. sources, including renewable energy, See VIEW Page11 CCLB 05-19-08 A 11 CCLB 5/15/2008 4:22 PM Page 1

MAY 19-25, 2008 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

THE BIG ISSUE

What are your summer travel plans, and how, if at all, have they been affected by gas prices and Who’s Behind the Power of the economy? RSM McGladrey?

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WILLIAM DOMINGUEZ JEFF PARYZEK GREG LOPEZ RACHEL NOLAN Brooklyn Cleveland Cleveland Lakewood I was planning to go to June 20, my son graduates We’re going to Boston. It We’re going to stick West Virginia for Memorial from Parris Island. We used to make sense to around here, but we Day. (Gas prices) pretty were going to take a just drive up there definitely aren’t going to much ruined it for me. I’d motor home down there, because there are four of be going many places. Dave Dobranic Bill Petrus rather just stay in town several of us, but I think us and it was going to be and find something to do we’re going to transfer cheaper than flying. It during that weekend. that to a motorcycle trip. used to be an easy We’ve grown our careers in Ohio and remain committed to the decision. industries in the region. We listen and understand the challenges ➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com to solving clients’ ever-changing financial service needs in a wide range of segments – from commercial, manufacturing and wholesale distribution to the service sector. Additionally, we’ve gained a well-deserved reputation with our View: Price cap provision a concern distinct knowledge and expertise in employee benefit plan audits. With a team of dedicated professionals ready to serve you, we under- continued from PAGE 10 test is applied fairly, the advanced procedures that will enable the stand the stringent regulations and dynamic nature of this industry. to financial penalties for noncompli- energy industry can succeed in Ohio advanced energy industry in Ohio ance. Proceeds from any fines would regardless. actually to come into being. In that Bill Petrus 216-522-1362 | Dave Dobranic 216-522-1078 be used to install advanced energy The economic implications for the sense, Gov. Strickland’s signature on projects that otherwise could or state are promising. the bill is not the end, but just the should have been developed. Preliminary calculations based on beginning. In addition, the law alleviates cur- information from the Ohio Depart- Expect many months, and perhaps rent limitations on “net metering” — ment of Development suggest that years, of intense activity before the the ability for customers to install about 4,500 megawatts of new wind details are fully sorted out in the their own power generation sources generation and more than 450 mega- PUCO. Advanced energy interests will rsmmcgladrey.com Cleveland Akron Canton Columbus and sell excess generation back to watts of new solar capacity could be need to maintain a visible presence 216-523-1900 330-670-6515 330-455-1120 614-224-7722 the grid. This change should greatly installed by 2025 as a consequence of there in order to protect the interests RSM McGladrey, Inc. and McGladrey & Pullen LLP are two separate and independent legal entities. They operate improve the prospects for customers this legislation. That projection would of building this new industry and in an alternative practice structure that enables them to work together to service clients’ business needs. to reduce their energy bills by imply well more than $10 billion of revitalizing Ohio and its economy. ■ deploying solar energy, fuel cells, aggregate investment just in new wind and other so-called “distributed and solar plants. On top of that, invest- generation” technologies in Ohio. ments in energy efficiency also will be To be sure, the law is not perfect. very large. Most notably, many observers have Our political leaders in Columbus expressed concern about the 3% should be applauded: As a result of price cap provision. It can excuse their efforts, Ohio will become one of utilities from complying with the the largest markets in the United new requirements if they can prove States for renewable energy and that full compliance would increase energy efficiency, which will surely their cost to acquire power supplies attract the attention of advanced by more than 3%. energy manufacturers and installers This provision will be an obvious worldwide to establish operations, area of future contention. Vigorous create wealth, employ people, and and diligent intervention will be pay taxes here. required to ensure that utilities Advanced energy companies of cannot spuriously claim a significant the world, take heed: Ohio is now cost increase associated with open for business. advanced energy in order to evade With the legislation successfully You do everything you can compliance. Advanced energy advo- passed, the game turns to the Public cates would have preferred no price Utilities Commission of Ohio, where to protect them, but it’s still not enough cap provision, or one that was worded the intentions of the lawmakers more definitively. Still, if the 3% price must be codified into rules and

WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 e-mail: [email protected] Workers’ Compensation Managed Care

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008 Boating: Watercraft mix shifting Conservancy group continued from PAGE 1 “Our state watercraft we are just not seeing as many boats was nervous about how the boating officers and local marine on the water as we did, say, five years trying to save habitat season would unfold, but says it’s all ago,” he said. patrols will tell you ... we right so far. Indeed, last month’s sales Just sittin’ around were better than those in April 2007, are just not seeing as By KATHERINE FAY and will raise the money in time. although he’s seen a more cost- many boats on the water Mr. Wisse also said dock rental If the remaining money has not conscious trend among buyers. vacancies are up along Lake Erie The Western Reserve Land Conser- been secured by that time, the Land “I’m selling a lot more small, 16-foot as ... five years ago.” over the last few years, though local vancy might buy an eight-acre forest Conservancy may be forced to termi- fishing boats than I did before,” Mr. – John Wisse, spokesman, Ohio marinas say they’re seeing boaters in Bratenahl to preserve a habitat for nate the agreement and could lose Morrison said. “You certainly don’t Department of Natural Resources change their habits rather than eight species of rare birds. the chance to preserve the site, which need a great big boat to go fishing.” abandon the water altogether. As one of the few remaining is on the north side of Lake Shore Many customers, he said, are inter- Resources Division of Watercraft, “Right now, nothing seems to mature forests along the Lake Erie Boulevard, about 300 feet east of ested in the newer, more fuel-efficient says fuel costs are impacting the have changed for us,” said Sharon coastline in Greater Cleveland, the Bratenahl Road. If the land is not outboard motors that power those boating industry, though not neces- Sherwood, manager of Grand River property in Bratenahl has been a top preserved as a habitat, it could be small boats, and there’s also more sarily any harder than anywhere else. Marine, which operates marinas in priority for preservation by the Land developed or used to build eight to 10 interest in the used boat market. “Gas prices are having an effect on Fairport Harbor and on the Grand Conservancy, which has struck a deal houses, Mr. Skowronksi said. “Older big boats are not that hard to everybody in this country, period,” Mr. River. “But then again, the season to buy the site from its owner. The The Land Conservancy hopes sell,” Mr. Morrison said. “There seems Wisse said. “It’s just rippled through really hasn’t taken off yet.” owner’s identity is shielded by a to formalize a partnership with a to be a ton of people willing to buy every corner of our economy, and Grand River has 450 customers confidentiality clause. government entity that would result them, and 20 years ago, it was harder certainly that’s going to affect boating and hasn’t lost any, though Ms. The total project cost, including in public ownership of the land. A to sell used boats.” He figures more just like it does RVing and motorcycle Sherwood said the marinas’ gasoline the purchase price and expenses, government partner’s participation is customers are willing to accept the riding and general aviation.” sales definitely have slowed signifi- would be about $1.7 million. considered critical because the federal wear and tear on a 25-foot or larger Ohio listed 415,562 registered recre- cantly. The Land Conservancy, a Geauga grant secured for the project must used boat in exchange for the consid- ational watercraft in 2007, about 78% “We have more people sitting at County nonprofit that works to flow to a government entity. The erably lower prices tag on them. of which were powerboats and small their docks, and we have less people protect natural areas throughout the Land Conservancy hopes to work Dave Campogni, co-owner of motorized vehicles like jet skis. There traveling,” she said. “We used to Western Reserve area of Northeast with Bratenahl to create the needed Power Sports of Cleveland, says he’s has been a shift in the mix of water- get people in from Michigan and Ohio, has secured $714,000 in federal partnership, Mr. Skowronski said. feeling the impact of higher gas craft, though, as gas prices have Canada. Our transient business is Coastal and Estuarine Land Conser- Cleveland is located at the center of prices and a stagnant economy, but climbed over the past few years. really slow.” vation funds as well as a charitable a migratory bird flyway and is the first powerboat sales aren’t far off what “We have seen a decline in power- Docksitting also is become more pledge of $300,000 from an anony- stop for birds crossing Lake Erie. they were last year. Like Mr. Morrison, boat registration by about 20%,” Mr. commonplace at Whiskey Island mous donor. The remaining $718,000 A recent survey of the site by the he’s also seeing people change their Wisse said. “And we’ve seen non- Marina, which sales manager Jessica must be obtained or pledged to the Cleveland Museum of Natural History minds about taking to the motorized (registrations) like canoes Kushner says benefits from its added Land Conservancy by July 14, the end determined there are eight bird water in larger craft. and kayaks go up by 41% in that offerings such as cookouts and adja- of a 90-day due diligence period. species considered by the state to be “People are coming in and same time period.” cent Wendy Park. The remaining money will be endangered, threatened or rare. The instead of buying something bigger While boating activity itself can’t “There’s a lot of recreational raised mainly through private site would provide a natural habitat or trading in and getting a bigger be tracked with figures, Mr. Wisse things that people can do here as fundraising, said Mark Skowronski, for the Great Heron, Yellow-bellied one, they’re coming in and getting a cites anecdotal evidence that recre- opposed to just docking their boat,” director of land protection for the Sap-sucker, Red-breasted Nuthatch, smaller boat,” Mr. Campogni said. ational boating is slowing up. she said. “I expected it to be really Land Conservancy. He said the group Brown Creeper, Winter Wren, Gold- John Wisse, spokesman for “Our state watercraft officers and bad this summer, and it’s really not is confident there are enough donors crowned Kinglet, Hermit Thrush and the Ohio Department of Natural local marine patrols will tell you … at all.” ■ who will want to preserve the habitat Dark-eyed Junco. ■

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14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008 Accounting firm plans to double office space Social events become part Maloney + Novotny 1111 Superior Ave. The company “Our commitment to be in downtown Cleveland is part plans to add as many as eight this of our commitment to get back to where we used to be moving to Eaton Center year to its 90-person staff, Mr. Maloney said. as an Ohio-based regional firm.” of Hermes By STAN BULLARD The 24,000-square-foot office at – Matt Maloney, managing shareholder, Maloney + Novotny LLC [email protected] Eaton Center will give the firm room to Sports’ arena grow, as it can accommodate 125 peo- Hausser + Taylor. The familiarity of downtown. ple, Mr. Maloney said. The firm is in The Maloney + Novotny LLC the location worked for us,” Mr. “Our commitment to be in down- By KATHERINE FAY accounting firm is preparing to put about 12,000 square feet at Penton Chudyk said. Many of the accounting town Cleveland is part of our com- down roots as a full-floor tenant at Media Center, which it moved to eight mitment to get back to where we professionals who launched Maloney After its success in managing the Eaton Center when it doubles its months ago when Mr. Maloney and 24 used to be as an Ohio-based regional + Novotny hail from the former annual ERC Corporate Challenge in office from a temporary workplace at others exited North Point Tower to firm,” Mr. Maloney said, referring Hausser + Taylor, which became Cleveland, Hermes Sports and Penton Media Center in downtown break with the RSM McGladrey firm. to predecessor Hausser + Taylor. part of a national concern owned at Events has created Hermes Sports Cleveland. While Eaton Center works for the Staying downtown also was impor- various times by American Express, and Social, a group where people Matt Maloney, managing share- firm on several reasons, Peter tant to younger staffers, he said, and RSM and H&R Block. can participate in non-corporate holder, said the firm is so crowded in Chudyk, a shareholder who runs the firm believes it will aid in recruit- Maloney + Novotny considered recreational sports leagues, tourna- its current office that it can’t add Maloney + Novotny’s tax depart- ing and retaining recent college “several very attractive” offers from ments and social events. staff until it moves in late June to the ment, said one is sentimental. graduates who want to work and live suburban office buildings, Mr. The Corporate Challenge, which seventh floor of the skyscraper at “I worked there for 15 years at downtown. ■ Chudyk said, but decided to remain brings together more than 80 corpo- rate teams each summer to compete in sports tournaments for charity, inspired Hermes president Neal Neroni to create the group for active professionals. Based off the successful Chicago Sport and Social club model, Hermes Sports and Social offers events such as corn hole tournaments, wine tasting and yoga classes, Mr. Neroni MY CAUSE said. “Everything has a social aspect to it,” Mr. Neroni said. “People can do IS TO QUIT MY JOB the competitive part, the social part or both. For example, if we play AS COMPANY HEALTH PLAN softball, a lot of the teams will go to the same bar afterwards and have the opportunity to meet other ADMINISTRATOR. people from the team. It is a good, social networking atmosphere.” Sport and Social held its first event And go back to being just the boss. in April, a corn hole tournament at the Sportsdome in Valley View. It also held a sold-out Cleveland Indians party where 250 block tickets were purchased and participants attended a pre-game party. Summer events will include foot- ball, kickball and softball leagues, as well as yoga classes. A wine-tasting event is scheduled, along with a second Cleveland Indians party. The parent company, Hermes Sports and Events, manages more than 70 road races, including eight Race for the Cure events nation- wide. It also has produced programs for the Cleveland Indians, Cleveland Cavaliers, Cleveland Browns and Fox Sports Net. Mr. Neroni would not disclose company revenues. ■

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MAY 19-25, 2008 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 Private practice keeps growing Despite employment trends, Superior Medical Care bolsters staff

By SHANNON MORTLAND State Medical Association. has had good business sense and [email protected] “We definitely have seen a lot of thoroughly researches the market consolidation in bigger practices, as before he makes big decisions for his While many physicians are well as hospitals buying practices,” practice. Last year, he received busi- clamoring to be employed by a she said. ness training and became certified hospital, one private practice in Ms. Hackley said many doctors by the American College of Physician Lorain County continues to grow. prefer to become hospital employees Executives. Launched three years ago by Dr. or to be affiliated with a hospital The ability to make his own deci- Joseph Girgis, Superior Medical Care system to have some help with sions about his practice and where to in Sheffield Village now has 25 primary overhead costs such as employee send his patients is why Dr. Girgis care physicians and 200 employees. payrolls and medical malpractice enjoys private practice. On the flip With eight primary care physicians insurance. side, he acknowledges that doctors at added in the last four months, Dr. Dr. Girgis said he sees many doc- Superior Medical Care can’t hang Girgis said he has no intention of tors bypass private practice because their hats on a big brand name. slowing down anytime soon. they lack the business skills to run the “You have to prove yourself,” he “We don’t have a specific limit we’re office. Dr. Girgis said he always said. ■ planning to stop at,” said Dr. Girgis, who is not affiliated with any hospital system but has privileges to practice at Community Health Partners, EMH Regional Healthcare System and St. John West Shore Hospital. The practice is adding an average of one physician per month and this month hired its first specialist — a general surgeon, Dr. Girgis said. Another internal medicine doctor and a podiatrist will join the practice this summer, he said, and more  physicians will be added as its 50,000 patients demand them.  Patient demand already has +#&* prompted Superior Medical Care to add two more locations: a 28,000- square-foot office that opened in 8dbbZgX^VaGZVa:hiViZAdVcl^i] Lorain last October and a small office that opened at the EMH Center for Health & Fitness in Avon in March. The Avon office is a temporary location until Superior Medical Care CD8ADH>C< can build another office that would mirror those in Sheffield Village and Lorain, Dr. Girgis said. However, he doesn’t just have his eyes on Lorain County. 8DHIH “We’d like to see several centers in the next five years that would serve Cuyahoga County,” he said. A growing private practice is some- what of an anomaly these days as it’s more common for doctors to shy away from owning a practice, said Lisa Hackley, a spokeswoman for the Ohio

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008 Visit Lake Ridge Academy Wednesday,May 21

Open House Lake Ridge Academy believes Upper School (grades 9–12) Improvisational Theater 8:30 am in the power and talent of each Entrepreneurial Studies 9:30 am of our students.We grow Campus Tour/ 10:00 am College Counseling Resources natural ability by delivering an Global Politics 10:45 am educational experience that is Middle School (grades 6–8) academically driven, globally Musical Rehearsal 2:00 pm Studio Art 2:30 pm connected, exceedingly self- Campus Tour 3:00 pm Diebold: Stock price actualized with an honor code Lower School (grades 1–5) Campus Tour 1:00 pm in a safe environment for Studio Art 1:30 pm empowered Advancement. Enriched Music 2:00 pm signals future action continued from PAGE 3 where they are coming from, and “I wouldn’t say we’re of the opinion what they want the company to do that it’s dead; you’d have to get that (is sell).” Come see where opportunity lives. perspective from United Technolo- Getting an accurate estimate of gies,” said Diebold spokesman Mike Diebold’s worth has been made Jacobsen. “But in terms of what our difficult by its ongoing dealings with board of directors said, with regards the SEC, which is investigating to their unsolicited bid at $40 a share, the company’s accounting practices Parents and Students Welcome! it opportunistically undervalues the that involved booking revenues For a reservation please call 440.327.1175 x104 company.” before shipments were received and United Technologies spokesman accepted by its customers. www.lakeridgeacademy.org Peter Murphy said his company still Diebold has not reported its hopes Diebold will discuss the trans- complete earnings and financials action and will allow United Tech- since the first quarter of 2007 as a nologies to perform due diligence to result of the situation with the SEC better evaluate Diebold’s worth. and has issued only estimates of its “There’s no change. The offer is results. still on the table,” Mr. Murphy said. Asked when Diebold would Investors apparently believe the announce its current and possibly deal eventually will be done. amended previous earnings, company Diebold’s stock price jumped spokesman Mr. Jacobsen said, from less than $25 a share before “That’s the magic question I get United Technologies’ offer to more asked a lot.” than $39 immediately after the offer He said the Diebold anticipates to buy Diebold was announced it will complete its internal acc- on March 2. It since has hovered ounting review by the end of this at around $40, which Luria says year’s second quarter and, soon indicates the market is expecting a after, will update and file its financial transaction. statements. “I wouldn’t say we’re of the opinion that it’s dead; you’d have to get that perspective from United Technologies. But in terms of what our board of directors said, ... it opportunistically undervalues the company.” – Mike Jacobsen, spokesman, Diebold

“If there is no deal, the stock prob- Higher bid possible ably goes down to $35 or so, but if there is a deal it will probably be Once Diebold’s real financial around $50,” Mr. Luria predicted. results are known, both Diebold and United Technologies likely will be Gabelli buys in in a better position to evaluate a Funds controlled by New York possible transaction. investor Mario Gabelli have bought “Until we get our financials filed about 7.2% of Diebold’s shares and give investors solid visibility to outstanding since the United Tech- what our earnings look like, the nologies’ offer was made public and board isn’t in a position to entertain now own about 4.7 million Diebold any kind of bid,” Mr. Jacobsen said. shares, according to Securities and United Technologies, which so far Exchange Commission documents. has bought 2.28 million shares of Mr. Gabelli’s funds and affiliates Diebold, or about 3.5% of the com- reported that they began buying pany, has left open the possibility it Diebold’s stock on March 3, the day will pay more than $40 a share for after United Technologies made Diebold. public its offer to buy the company In a Feb. 29 letter to Diebold chair- and at a time when Diebold already man John Lauer, United Technolo- was trading at $39 a share. gies CEO George David indicated his Mr. Gabelli didn’t return a call last company would pay more for week, but Mr. Luria described him as Diebold if it could put a higher value an “event-driven” investor who on the company as a result of due likely will support a deal with United diligence. Technologies, if not push for it, at a “We have suggested appropriate revised and higher price. due diligence earlier and affirm this “It’s natural. Gabelli’s fund is an now,” Mr. David wrote. “Additional event-driven fund, which means value could be identified, and a higher they buy companies that are in play,” price proposal for Diebold’s shares Mr. Luria said. “That’s obviously could result.” ■ CCLB 05-19-08 A 17 CCLB 5/14/2008 2:56 PM Page 1

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18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008 Some Americans bucking trend of saving very little “American have always been spenders. But we might costs with the hybrid car. Financial advisers report clients are proactive Of course, not even those with be getting to a point where they may not have a advisers always make smart choices. in preventing bigger decisions down the road choice. More may have to go through some real One client didn’t heed her adviser’s belt-tightening.” recommendation to diversify her By LIZ SKINNER the government reported. equity investments before last year’s – Bill E. Carter, president, Carter Financial Management Investment News “Americans have always been stock market downturn. She has spenders,” said Bill E. Carter, presi- “emotional ties” to a certain stock, In response to worries about dent of Carter Financial Management until market performance improves home now and delayed another said Neil Bourgeois, an adviser in the the nation’s floundering economy, in Dallas, which manages about $850 and his portfolio balance rises $300,000 in home renovations to Cincinnati office of Brecek & Young. some individuals are engaging in million. “But we might be getting to a again, said Jeffrey Walkup, an adviser make sure her portfolio will be able “Now she wants to wait for the rather un-American practices: They point where they may not have a with California-based Brecek & to continue generating her current stock to come back before selling are saving more and spending less. choice.” Young Advisors Inc. level of withdrawals, Mr. Schlaffer some of it, but meanwhile, she still Financial advisers around the Some Americans may face situa- Mr. Walkup said the client has said. stands the risk of being all in one country have reported that some tions in coming months where there pension income that he thinks can One of Mr. Schlaffer’s older security,” he said. clients in recent months have made may not be any equity left in their cover his expenses if he trims his clients, who started out with little One of Mr. Carter’s retired clients fiscally responsible moves to protect homes, and because the economy discretionary spending. The client money and now has an eight-figure is teetering on the edge of a bad their future, including cutting back isn’t growing, they won’t be getting said he would rather leave his prin- portfolio, told his adviser recently decision. She has a son in his late 30s on major purchases and drawing raises, Mr. Carter said. cipal intact and make adjustments that he plans to spend less because who is $100,000 in debt from “buying less from their retirement savings. “More may have to go through to his lifestyle, said Mr. Walkup, he is worried about the economy. too much house” and not limiting These individuals stand as great some real belt-tightening,” he said. who works in the firm’s Cincinnati “He believes that when times are his own spending. If she bails him examples for the rest of the nation, Advisory clients who are making office, which manages $500 million tough, you cut back,” Mr. Schlaffer out, she won’t have enough to live which suffers from a dismal personal- decisions to cut back frequently say in assets. said. out her years as she planned, Mr. savings rate, the advisers say. they are doing so to ensure that they A woman in her 40s who works Carter said. The personal-savings rate as a don’t need to make more difficult but is supported by a sizable inher- Farewell to Europe “I told her that if she’d like to be in percentage of disposable income was economic changes in the future. itance received at a young age recently Michael Boulton, an adviser since a Medicare nursing home in the 0.2% in March, according to Depart- Some say they are doing so to set a scaled back home renovations she 1996 with Financial Solutions, a future, then she can bail out her son ment of Commerce data released this good example for others. had been planning, “just to be safe,” boutique firm in Mill Valley, Calif., again,” he said. Parents who bail out month, down from 1.5% in March said Gary Schlaffer, a senior partner said many of his high-net-worth their children are rarely repaid, Mr. 2007. Saving from current income Reeling in the renovations with Alexander Randolph Advisory clients are postponing travel to Carter said. ■ actually may be closer to zero or One man who retired in 1999 and Inc. of Reston, Va., which manages Europe this summer because of the negative when expenses are being began taking income from his advi- $260 million in assets. drop in the U.S. dollar. Several Liz Skinner is a reporter with paid with credit cards or home sory account four years ago recently The woman decided to complete other clients are buying a Toyota Investment News, a sister publication equity loans or by selling investments, chose to suspend his distributions about $150,000 of work on her Prius, expecting to save on gasoline of Crain’s Cleveland Business.

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MAY 19-25, 2008 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

TAX LIENS LIENS RELEASED B & O Auto Parts Co. Inc. First Choice Homecare Inc. AKJ Inc. 21487 Royalton Road, Strongsville 601 Towpath Trail, Suite C, The Internal Revenue Service filed tax ID: 34-0965060 Broadview Heights United Towing Services Inc. 3628 Valley Road, Cleveland liens against the following businesses ID: 34-1451974 Date filed: Dec. 18, 2006 ID: 34-1876809 3929 Superior Ave., Cleveland in the Cuyahoga County Recorder’s Date filed: Oct. 9, 2007 Date released: March 24, 2008 Date filed: April 26, 2006 ID: 34-1873545 Office. The IRS files a tax lien to Date released: March 13, 2008 Type: Employer’s withholding Date released: March 24, 2008 Date filed: March 17, 2008 protect the interests of the federal Type: Employer’s withholding Amount: $12,014 Type: Employer’s withholding Type: Employer’s withholding government. The lien is a public notice Amount: $16,851 Amount: $73,349 Amount: $5,281 B & O Auto Parts Co. Inc. to creditors that the government has a 21487 Royalton Road, Strongsville JPT Inc. Baricelli Inn claim against a company’s property. Allset Corp. Inc. Ultimate Landscapes Inc. 4472 W. 160th St., Cleveland ID: 34-0965060 2203 Cornell Road, Cleveland Liens reported here are $5,000 and 6127 Hathaway Road, Garfield Heights Date filed: Feb. 13, 2007 ID: 34-1448273 higher. Dates listed are the dates the ID: 34-1552743 ID: 34-1661058 Date filed: July 3, 2007 Date released: March 24, 2008 Date filed: Dec. 12, 2007 documents were filed in the Date filed: March 19, 2008 Type: Employer’s withholding Date released: March 3, 2008 Recorder’s Office. Date released: March 13, 2008 Type: Employer’s withholding, Type: Employer’s withholding Amount: $7,537 Type: Employer’s withholding unemployment Amount: $7,999 Amount: $11,991 LIENS FILED Amount: $5,229 Ezzos Independence Allset Corp. Inc. Landscaping Inc. Kordiac Plumbing Inc. Affordable Careers Staffing Czaban Cleaning Co. 4472 W. 160th St., Cleveland 6374 Evergreen Drive, Independence 11010 Union Ave., Cleveland & Job Placement Services Inc. 6454 W. 29th St., Parma ID: 34-1552743 ID: 34-1622799 ID: 34-1808496 th 1370 W. 6 St., Suite 215, Cleveland ID: 34-1755118 Date filed: March 30, 2007 Date filed: July 26, 2005 Date filed: Nov. 7, 2005 ID: 01-0833892 Date filed: March 17, 2008 Date released: March 13, 2008 Date released: March 3, 2008 Date released: March 3, 2008 Date filed: April 28, 2008 Type: Corporate income Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Amount: $5,224 Amount: $15,748 Amount: $14,847 Amount: $60,911 Amount: $253,993 Children’s Community Access Program 5000 Euclid Ave., Suite 204, Cleveland ID: 34-1810688 Date filed: April 2, 2008 Type: Employer’s withholding Amount: $146,904 Grant Barlow Organization Inc. 17830 Englewood Drive, Suite 19, Middleburg Heights ID: 34-1914467 Date filed: April 7, 2008 Type: Employer’s withholding Amount: $123,455 Alternative National Mortgage Co. 6120 Parkland Blvd., Suite 302, Mayfield Heights ID: 34-1920083 Date filed: April 30, 2008 Type: Unemployment, employer’s withholding Amount: $62,224 Orca Foods Inc. 14341 Euclid Ave., East Cleveland ID: 34-1737000 Date filed: March 13, 2008 Type: Employer’s withholding Amount: $7,227 Papagianis Inc. 3317 Scranton Road, Cleveland ID: 34-1374674 Date filed: March 24, 2008 Type: Employer’s withholding Amount: $7,142 Mayfield Medical Transportation Inc. 26660 Tungsten Road, Euclid The value of a relationship predicated on service instead of sales. ID: 34-1927673 Date filed: March 24, 2008 Type: Employer’s withholding Amount: $6,882 When it comes to small business there’s a fundamental difference between some banks and ours. Michael A. Covas D.D.S. Inc. 6563 Wilson Mills Road, To us, business banking is not a commodity. It’s not about a customer placing orders while we gather Mayfield Village ID: 34-1962025 commissions. To us, business banking is about one thing and one thing only. Your business. Date filed: March 17, 2008 Type: Employer’s withholding And about the relationship we have with your business. One that places service above volume and Amount: $6,683 Blues to You Inc. sales quotas. Our banking officers are evaluated and rewarded only on the knowledgeable advice 812 Huron Road, Cleveland ID: 75-3102064 they offer and the way they treat you as a valued client. In short, we know that a long-term Date filed: March 5, 2008 Type: Employer’s withholding, unemployment relationship is always far more rewarding than a short-term profit. So call today and we’ll Amount: $6,191 talk business. One to one. Pramukh Inc. 18451 S. Salem Row, Strongsville ID: 34-1852948

Date filed: March 5, 2008 SM Type: Employer’s withholding Amount: $5,608 PRS Investors One LLC ONE to ONE Business Relationships. That’s the Value of a Dollar. 8 E. Washington St., Chagrin Falls ID: 20-2007331 Date filed: March 17, 2008 Corporate and Small Business Lending • Leasing • Real Estate • Cash Management • Private Banking • 216-736-8949 Type: Partnership income Amount: $5,500 Equal Housing Lender. Member FDIC. Copyright © 2008, Dollar Bank, Federal Savings Bank. CCLB 05-19-08 A 20 CCLB 5/14/2008 1:45 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008

GOING PLACES JOB CHANGES vice president of commerical lending. ARCHITECTURE FINANCIAL SERVICES BURT HILL: Justin Fliegel to project HAMILTON MORE GROUP: Jeff manager; Erin Vollmer to interior Rickbrodt to partner. designer. MALONEY + NOVOTNY LLC: Ron Sutyak Shaw VanAntwerp RICHARD L. BOWEN + ASSOCIATES Hashier and Jack A. Maschke to INC.: Gregory S. Sutyak to director principals; John Funk to director, real of engineering. estate services; Pamela Lebold to director, not-for-profit services; DISTRIBUTION Christopher B. Anderson to director, tax services; Neil R. Sidorak, Sherri EARNEST MACHINE PRODUCTS: Bates and Christopher M. Felice to Dan Harriger to director of sales, senior managers, audit; Dana L. Fay, industrial distribution. Mike Spangler and Matthew R. Vish to managers, audit; Lane Knore Burk Strauss Hoehnen EDUCATION and Paul E. Valencic to managers, CORNERSTONE COMMUNITY tax; Dean A. Ward to director, SCHOOL: Nancy Pierce to commu- technology; Johanna M. Brooks to nity relations coordinator. human resources manager; Tom Marinic to controller; Alice Ott to ENGINEERING billing manager; David L. Standen to KARPINSKI ENGINEERING: Crina office services manager; Timothy G. Bosch to mechanical engineer; Mike Apger to systems associate. Mullen to technology engineer; MCGLADREY & PULLEN LLP: Burton Kushnick Martin Vanessa Aron to marketing coordinator; James P. Valderrama to director. Dale Simmons to director of security KELLER WILLIAMS REALTY and fire safety; Bob Laurenti to INSURANCE GREATER CLEVELAND WEST: senior project engineer, technology; DAWSON COS.: Amy Moore, Ted Crystal Francis, Allison O’Donnell, Shawn Callahan to project engineer, Sarko and Susan DiPietro to Christine Williams, Kevin Arnold, electrical. account executives. Joyce Reese, Ed Mayer, Will Tyler FINANCE HYLANT GROUP: Elizabeth Thorne and Heather Wills to sales associates. to vice president. LIBERTY BANK NA: Peter G. Shaw to SERVICES LEGAL HUMAN ARC: Dorian Barnes and KAHN & ASSOCIATES LLC: Rick Chanita Chambers to RMS account VanAntwerp to associate. representatives; Jessica Huston to STUMPHAUZER, O’TOOLE, HCAP account representative; MCLAUGHLIN, MCGLAMERY Barbara Powell to PA account & LOUGHMAN CO.: Steven B. representative; Amy Henderson to Beranek to commercial and civil Kansas City account representative; litigation attorney. Steve Mines to patient service representative; Lauren Colvard and MANUFACTURING Cheryl Kish to clerical assistants. IMAC: Peter Martin to president. ALCOA WHEEL AND TRANSPORTA- TION PRODUCTS: Victor Marquez to TOWERS PERRIN: Connie Mayse to global vice president of marketing. consultant. EDGETECH I.G.: Mike Burk to TECHNOLOGY technical service manager. MCPC INC.: Frank Yako to director JADE-STERLING STEEL CO. INC.: of operations; Tolga Yanmaz to John G. Asimou to director of programmer; Ken Roberts to field metallurgy and quality. service technician; Daryl McCraney SIFCO FORGE GROUP: Geneva to associate engineer, A/V; Josh Anderson to human resources Merold to order management manager; Ray Janson to quality specialist; Barb Moore to sales and engineer; Ralph Moore to project executive administrator. coordinator; Carl Pyatt to mainte- NINESIGMA: Denys Resnick to nance manager; Mike Lambert to engagement manager. quality engineer; Jim Butcher to die room supervisor. BOARDS MARKETING ASSOCIATION OF LEGAL ADMINIS- LIGGETT STASHOWER: Hollie TRATORS: Sunny K. Nixon (Roetzel Rybak to account coordinator; Linda & Andress) to president; William D. Fantone to graphic designer. Mech to past-president; Michael A. MARCUS THOMAS LLC: Mike Krnac to president-elect; Albertha E. Strauss to vice president. Becoats to secretary; Christine Metzler to treasurer. NORTHLICH: Molly Sustar to public relations account manager. EMH REGIONAL HEALTHCARE SYSTEM: Jeff Brausch (UBS) to OPTIEM LLC: Jason Hoehnen to chairman. account manager; Adam Burton to online public relations specialist. GOODWILL INDUSTRIES OF AKRON: William Glaeser to chairman; James NONPROFITS E. Merklin to first vice chair; Christopher Moll to second vice THE ALZHEIMER’S ASSOCIATION, chair; Barry E. Thoman to treasurer; GREATER EAST OHIO AREA Carolyn Pizzuto to secretary. CHAPTER: Andy Junn to development director. AWARD DOWNTOWN CLEVELAND ALLIANCE: TM Higher standards make better lawyers. Laura Kushnick to development and LUTHERAN METROPOLITAN community affairs director. MINISTRY: David Abbott received Vorys, Sater, Seymour and Pease LLP the Lutheran Metropolitan Ministry 1375 East Ninth Street 2100 One Cleveland Center Cleveland, OH 44114 REAL ESTATE Faith & Friendship Award; Mary 216.479.6100 www.vorys.com HOWARD HANNA SMYTHE Weyburne received The Richard E. CRAMER: Elizabeth Stover Starrett Sering Living Faith Award. to manager, Eastern region; Tina Nichols to sales manager, Pepper Send information for Going Places to Pike office; Nancy Collins Irwin to [email protected] or kratliff-null@ realtor, Chagrin Falls office. crain.com. SERVING $50,000 GLASSES OF BEER. $50,000 GLASSES SERVING WE HELPED STOP A RESTAURANT CHAIN FROM CHAIN FROM A RESTAURANT STOP WE HELPED Responsibility. What’s your policy? your What’s Responsibility. information visit libertymutualgroup.com/gl. When the patron of a restaurant chain became ill from drinking beer from an improperly flushed flushed When the patron of a restaurant chain became ill from drinking beer from an improperly was caused tap line, our General Liability experts investigated. We discovered the problem measures by a third party who failed to properly clean the line. We identified preventive future errors and recommended changes to their service contracts to help protect them from protocols, or made by vendors. Whether it’s responding quickly, adhering to stringent litigation That’s our policy. keeping you informed, we’re committed to helping you protect your business. For more © 2008 Liberty Mutual Group. AUTO GENERAL LIABILITY COMMERCIAL COMP UMBRELLA WORKERS PROPERTY CCLB 05-19-08 A 21 CCLB 5/14/2008 1:43 PM Page 1 Page PM 1:43 5/14/2008 CCLB 21 A 05-19-08 CCLB CCLB 05-19-08 A 22 CCLB 5/14/2008 1:43 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 19-25, 2008 Business travelers will feel painful pinch from % airlines’ price increases 3.50 Fares already 12% higher than a year ago APY By MATTHEW SCOTT “Airlines are trying to get For the first 90 days Financial Week On balances of $1,000 or more enough traction to be able to pass some of the Business Money Market Account Corporate travel budgets may be headed for a course correction this costs that they’re facing summer as record-breaking fuel on to their customers.” costs push airlines to raise ticket prices and slap an array of fees on – Caleb Tiller, spokesman, services that used to be free. National Business Travel “The impact for the business Association traveler hasn’t been realized yet, as much as it will be over the next few capacity on many routes, which months,” said Diane Clarkson, a leads to higher ticket prices. travel industry analyst at Jupiter Ms. Clarkson said she has noticed Research. She and other industry carriers placing smaller aircraft on observers expect airfares to increase many domestic routes, making it significantly — not just this summer, harder to get a seat and making the but for the foreseeable future. seats that are available more expen- Hiking ticket prices is the main sive. Analysts say the goal is to keep defense for air carriers trying to cope fares perpetually moving higher. Mr. AmTrust Bank has been a safe and secure provider of innovative financial products and services with the escalating price of oil. With Tiller estimated planes are flying at since 1889. We offer customized checking, investment and small business services, and are one the cost of crude oil up 90% since last better than 80% capacity right now, of the largest providers of home loans in the country. May, airlines also have added or higher than in previous years. increased fuel surcharges and intro- Newly opened air routes out of New Offered especially for the business that matters most – yours. duced other fees to raise money. York area airports and Department of “Airlines are trying to get enough Transportation limits on the number traction to be able to pass some of of flights during peak periods should the costs that they’re facing on to ease congestion this summer, he said, their customers,” said Caleb Tiller, a alleviating the airport delays seen in spokesman for the National Business recent years, even though leisure trav- Travel Association, which expects a 6% elers will increase the overall number to 10% increase in the overall cost of of flyers. 3.50% Annual Percentage Yield (APY) effective for the first 90 days on balances up to $250,000 (balances of flying by the end of the year. Business travelers still have the $250,000 and over will earn the standard APY of 3.00%). After first 90 days, rate reverts to standard tiered rate for Online travel agency Travelocity added burden of a wave of new fees balance on deposit. Offer applies to new accounts only; account cannot be funded with monies currently on deposit reports even worse numbers. The for services and items that used to with AmTrust. Offer requires an existing or new Business Checking Account. Business Money Market Account average current airfare is already cost nothing. requires a $1,000 minimum deposit to open. Standard Money Market tiered APYs for balances are as follows: 12% higher than the average fare “Airlines are in the process of $1-$999 is 0.75%; $1,000 and over is 3.00%. APYs accurate as of 05/11/08. Account limited to six (6) withdrawals a year ago, it recently said. The shifting the economy cabin from all- or transfers per statement cycle (including ATM and ACH transfers to third parties), of which a maximum of increases are most pronounced on inclusive to à la carte,” said Forrester three (3) may be checks, drafts or similar order. Transactions beyond these limits will result in additional fees. domestic routes, where prices have Research analyst Henry Harteveldt. Fees could reduce earnings on accounts. Rates may change at any time before or after accounts are opened. jumped 16% year-over-year. The à la carte menu includes a $25 Offer subject to change without notice.Not available to public fund entities or institutional investors. Some airlines are taking drastic fee to check a second bag each way, measures, cancelling “summer sale” which most airlines adopted this fares and instead raising their prices. month. Carriers are levying penalties And a number of carriers are aborting of $50 or more on baggage weighing growth plans in favor of cutting more than 50 pounds. Fees for booking by telephone and charges for in-flight food and other items also will add to the expense of flying. Many of these new fees are likely to affect corporate travel policies. “We will see travel policies that discourage traveling with a second bag,” Ms. Clarkson predicted. Companies whose sales representa- tives must carry samples or other equipment will need to absorb the added costs of the new baggage poli- cies. Expect to see businesses adjust by using travel management companies more and re-evaluating caps on travel expenses. Ms. Clarkson said compa- Getting sensors in a network to talk to one another, share information and nies may tighten their requirements potentially avoid disastrous results, is just one example of the pathfinding for flying first class and “consider research happening at Cleveland State University. shifting people from a five-star prop- erty to a four-star property as part of The National Science Foundation recently recognized Dr. Sridhar, Assistant Professor of cost containment.” Electrical and Computer Engineering in our Fenn College of Engineering, with their highly Colleen Cunningham, former pres- prestigious Faculty Early Career Development (CAREER) Award, along with a grant of ident and CEO of Financial Executives $450,000 to further his revolutionary research on programming sensor networks. International, said she expects compa- nies to make investments in videocon- ferencing and other communications We congratulate Dr. Sridhar on his breakthrough research. At Cleveland State University, technology to help offset the effects of we call this engaged learning. To find out more about the many wonderful ways CSU higher food and oil prices on travel engages in research, go to csuohio.edu and read our latest issue of Inquiry on line. expenses. “I am on a board that has moved two of its four board meetings to teleconferences to manage meeting and travel expenses,” she said. ■

Matthew Scott is a reporter for Financial Week, a sister publication

CSU is an AA/EO institution. ©2008 University Marketing_08-00326/Crains of Crain’s Cleveland Business.