VOL. 37, NO. 42 OCTOBER 17 - 23, 2016
Business of Life Source Lunch Felton Thomas talks about the importance of libraries. Page 24
Johnnyville is quite The List the location for fans CLEVELAND BUSINESS Largest foreign-owned of mementos. Page 23 companies. Page 27
By KEVIN KLEPS
[email protected] @KevinKleps
he Cleveland Indians have had two raucous on- eld and lock- Ter-room celebrations in the last three weeks. Both occurred on the road — after a Sept. 26 win at Detroit, which clinched the Tribe's rst American League Central Division champion- ship since 2007, and on Oct. 10, when the Indians completed a three-game sweep of Boston in the AL Division Series. Entering the AL Championship Se- ries on Friday, Oct. 14, the Indians were eight wins away from the big- gest ceremony of all — downtown Cleveland's second championship parade of 2016. e Tribe's business team has had a few reasons to pop the bubbly of late, too. Since the division-clinching victo- SPORTS BUSINESS ry at Detroit, the Indians' ticketing and digital numbers predictably have soared. From Sept. 26 to Oct. 13, the club's unique users and impressions on Tribe, fans Facebook nearly doubled from the previous 18-day stretch, and its shares on the social platform rose 63.1%. e Indians' snarky Twitter are soaking account had 44 million impressions from Sept. 26 to Oct. 13, a rise of 58.9% from the previous 18 days. Page views on Indians.com post- in success clinch also almost doubled, and unique visitors increased 66% from Jason Kipnis sprays celebratory the previous 17 days. champagne following the SEE TRIBE, PAGE 26 Indians’ sweep of the Boston Red Sox in the ALDS. (Dan Mendlik/Cleveland Indians) FOR A LOOK AT THE NUMBERS BEHIND THE TRIBE’S SUCCESS, SEE PAGE 26
GOVERNMENT SPORTS BUSINESS Key zoning issues up for vote Cleveland’s Veritix By JAY MILLER some things at the bottom of the ticket land Hills are important but appear o ce is key for AXS — zoning issues — that have a direct headed for passage. [email protected] impact on your life or your business. But a few are hot-button issues in By KEVIN KLEPS month after the merger was an- @millerjh ere are an even dozen zoning is- their communities, and none are nounced. sues on the ballot in the seven counties hotter than in Solon, in eastern [email protected] at’s anything but the case, AXS e top of the ballot — the presi- of Northeast Ohio. Some seek modest Cuyahoga County. e city has two @KevinKleps CEO Bryan Perez told Crain’s. dential race — is sucking up most of changes in zoning codes. A Brecksville issues on the ballot next month. And “ at o ce is one of our technolo- the oxygen this election season. ballot issue, for example, would allow in Solon, that means those develop- A lot has changed at Veritix since gy hubs — Los Angeles and Cleve- But if you live or do business in a cluster homes on land now zoned for ers face what’s called “ward veto.” the digital ticketing company’s merg- land,” Perez said. “ e team that is handful of Northeast Ohio communi- single-family homes on half-acre lots. Traditionally, zoning code chang- er with AXS was nalized a year ago. there is really core to our ticketing ties, you may be paying attention to Issues in Fairview Park and More- es were handled by a community’s Many key leaders have left, includ- platform operations.” city council, after review by a plan- ing Sam Gerace, who had been the The AXS CEO said that’s because Entire contents © 2016 by Crain Communications Inc. ning commission. But that has been CEO since Veritix was founded as all of the reasons for optimism at changing, and now about half of the Flash Seats in 2006. All of Veritix’s the time the deal was struck — mar- states, including Ohio, allow com- digital branding now has the rying AXS’ major-venue access and munities to put zoning changes on more-recognizable AXS name. costumer-focused platforms with the ballot for voter approval. at e changes — considering Los Veritix’s paperless ticketing tech- means that before allowing a devel- Angeles-based AXS is operated by nology and increasing reach in the oper to consider turning a piece of AEG and has o ces in Charlotte, sports industry — have proven to land the community has earmarked Dallas, Denver, London and Sweden, be true. for single-family homes into, say, in addition to L.A. and Cleveland — e L.A. o ce (AEG has relation- condominiums or an o ce building, might seem ominous for the Cleve- ships with more than 100 major ven- it must go before voters. land branch of Veritix, which had 54 ues) has the “consumer-facing SEE ZONING , PAGE 22 full-time employees as of July 2015, a SEE VERITIX , PAGE 21 ixcenter.com One I-X Center Drive I X CENTER 216.265.7000 Cleveland, OH 44135
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December 8–11 CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 3 JobsOhio is adding recruiting to portfolio Six of its regional partners, including Team NEO, will help companies attract and train talent By JAY MILLER “We would sit down land’s Silverlode Consulting, a ate the custom programs. Hay said cently the director of human resourc- site-selection consulting rm, said JobsOhio expects to begin o ering es in Atlanta for two businesses of the [email protected] with that company and one of his clients was looking around the programs by the rst of next year. Audia Group, a polymer company. @millerjh understand the number the country for a place to open a sec- Hay couldn’t say how much the Stanton, who joined Team NEO in ond location for a sophisticated as- service will cost JobsOhio, since each July, said he is laying the groundwork Companies are making the avail- of occupations, the sembly operation and considered project will be designed to meet the — developing recruitment software, ability of the right kind of talent an type of skills they need, Louisiana. needs of the target company. partnering with workforce progams increasingly important factor when “ e company was concerned Among the key partners will be the — for the four services JobsOhio has they evaluate locations for new busi- as well as the culture fit they wouldn’t be able to replicate state’s community colleges, which outlined, and will focus in particular ness operations. what they had (in New England) to o er many targeted job-training pro- on trying to woo Northeast Ohio na- So JobsOhio, the state’s nonpro t they are looking for, and do the (assembly) process,” Weitzner grams, and Ohio Means Jobs, the tives back to the region. business attraction organization, is we would tailor a said. “Louisiana recruited and state program that online and at its “I was human resources manager turning that need into an incentive. trained people on this production local o ces, matches employees of a plastics rm. We did an expan- It is creating what it calls a talent ac- program around that line. All on the state’s dime. It was re- with employers. sion project and I was on the receiv- quisition service that can be used as scope of work.” ally remarkable.” To handle the local end, Team ing end of this type of service,” he an enticement to woo companies to JobsOhio will have Hay and a small NEO has hired Michael Stanton as re- said. “What’s going to make us Ohio. rough its six regional eco- — Cheryl Hay, JobsOhio’s director sta guiding the program in Colum- gional talent manager. Stanton, a unique is that we are going to tailor it nomic development partners, includ- of talent acquisition bus, but its regional partners will cre- Northeast Ohio native, was until re- to each company we work with.” ing Team Northeast Ohio, JobsOhio will o er a target business — and will fund as an incentive to bring a new operation to Ohio — a custom pro- gram that will attract the kind of tal- ented job candidates the company will need, then screen and train them. JobsOhio nds that it's competing to attract new businesses with states, ญáฟKA?E=б especially in the South, that can give a company looking around the coun- try the con dence that a new opera- 505)&$&/5&//*"- tion in a given state can attract talent ȈІέцХáҵіP that meets the company’s skill needs and hiring deadlines. $&-"5*0/ “What we want to o er them is a $&")"--0''".& customized and tailored talent strat- 410/4034 egy and services that accompany */%6$5&&4 that talent strategy,” said Cheryl 㙆ÖJЄM=OPH=OEÖJN Hay, JobsOhio’s director of talent ac- quisition. “We would sit down with 1-"5*/6.410/4034 that company and understand the 7KH&OHYHODQG0DUEOH0RVDLF&R number of occupations, the type of 'RQOH\ V skills they need, as well as the cul- ture t they are looking for, and we 2&3&RQWUDFWRUV would tailor a program around that :DUUHQ5RRILQJ ,QVXODWLQJ&R scope of work.” at program could include any or (0-%410/4034 all of four kinds of assistance. It could create a program to identify where -$0(6$&21$17 5,&+',*(521,02 7(55<'21/(< 3UHVLGHQW 3UHVLGHQW &KDLUPDQ $OO(UHFWLRQ &UDQH5HQWDO&RUS the particular talent is — software &RQDQW&UDQH5HQWDO&R ,QGHSHQGHQFH([FDYDWLQJ&R 'RQOH\ V )RUHVW&LW\(UHFWRUV engineers, welders, nurses, etc. — *LOEDQH%XLOGLQJ&RPSDQ\ and market the new jobs on those *LRUJL,QWHULRU6\VWHPV areas, then develop tailored job post- ings, screen candidates and nally 7KH*UHDW/DNHV&RQVWUXFWLRQ&R train them for any speci c skills the ,QGHSHQGHQFH([FDYDWLQJ target company requires. 1RUULV%URWKHUV e program will use the state’s ex- 2]DQQH&RQVWUXFWLRQ&R isting workforce and education infra- 3DQ]LFD&RQVWUXFWLRQ&R structure and outside services as 3UHFLVLRQ(QYLURQPHQWDO needed. 6KRRN&RQVWUXFWLRQ e Ohio program is likened to /((0$//2< -,00,5*/,277$ /(52<2=$11( Louisiana’s FastStart program. at &KDLUPDQ ([HFXWLYH9LFH3UHVLGHQW 3UHVLGHQWUHW program, started in 2008, creates cus- 'XQORS -RKQVWRQ )RUHVW&LW\(UHFWRUV 2]DQQH&RQVWUXFWLRQ&R 4*-7&3410/4034 tom, and often high-tech, recruit- ment and training products for com- $.$7HDP panies that agree to bring more jobs 7KH$OEHUW0+LJOH\&R to Louisiana. $UWKXU-*DOODJKHU &R Steve Weitzner, principal in Cleve- %ULFNOD\HUV/RFDO %XLOGLQJ/DERUHUV/RFDO &HPHQW0DVRQV/RFDO 7KH&KDV(3KLSSV&R CLEVELAND BUSINESS 5216,021(77, 9,1&(675$==2 %(51,(:(,5 &OHYHODQG&HPHQW&RQWUDFWRUV 700 W. St. Clair Ave., Suite 310, &KDLUPDQ 9LFH3UHVLGHQWRI2SHUDWLRQVUHW &(2UHW ' $PRUH7DWPDQ*URXS Cleveland, OH 44113 Phone: 216-522-1383 &OHYHODQG&HPHQW 7KH*UHDW/DNHV 1RUULV%URWKHUV&R 'XQORS -RKQVWRQ www.crainscleveland.com &RQWUDFWRUV,QF &RQVWUXFWLRQ&R *OD]LQJ&RQWUDFWRUV$VVRFLDWLRQ Reprints: 212-210-0750 ,QGXVWULDO)LUVW Krista Bora [email protected] ,QWHUQDWLRQDO8QLRQRI%ULFNOD\HUV $OOLHG Customer service and subscriptions: 877-824-9373 &U& DIWZRUNHUV2KLR$GPLQLVWUDWLYH'LVWULFW&RXQFLO Volume 37, Number 42 Crain’s Cleveland Business /LEHUW\%DQN (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113- 1DWLRQDO(OHFWULFDO&RQWUDFWRUV$VVRFLDWLRQ 1230. Copyright © 2016 by Crain Communications 1RUWK&RDVW&RQFUHWH Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing o ces. Price per copy: $2.00. 2VZDOG&RPSDQLHV POSTMASTER: Send address changes to Crain’s 3UHFDVW6HUYLFHV Cleveland Business, Circulation Department, 1155 -$0(65%52:1 -2+1'325$'$ 5HJHQF\&RQVWUXFWLRQ Gratiot Avenue, Detroit, Michigan 48207-2912. 'LUHFWRURI6DIHW\ (GXFDWLRQUHW ([HFXWLYH9LFH3UHVLGHQWUHW 1-877-824-9373. &RQVWUXFWLRQ(PSOR\HUV &RQVWUXFWLRQ(PSOR\HUV 5RHW]HO $QGUHVV Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside $VVRFLDWLRQ $VVRFLDWLRQ Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 5RRIHUVDQG:DWHUSURRIHUV/RFDO 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience 7KH5XKOLQ&R Development Department, Crain’s Cleveland Business, 1155 $ : $ 5 ' ( ' 3 2 6 7 + 8 0 2 8 6 /< 7XUQHU&RQVWUXFWLRQ&R Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to [email protected], or call 877-824- 9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 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From left, Clearsulting manager Paige Howard, founder Marc Ursick and partner John Tilow. (Jeremy Nobile) Clearsulting embraces millennial roots, has lofty goals By JEREMY NOBILE e team embraces its millennial “ ey brought an energy and com- heritage, promoting a rather infor- fortableness that was conducive for [email protected] mal culture and more casual style the the space they’re trying to get in to,” @JeremyNobile demographic tends to be associated said Ed Auker, an accounting manag- with. er at Ashland Inc., a Fortune 500 Clearsulting doesn’t look quite like While going business casual at cli- chemical manufacturer and distribu- your typical Big 4 consulting team. ent projects, they’re wearing street tor. But that’s not keeping it from nd- clothes at their modest Ohio City of- e company hired Clearsulting ing its place in the market. Indeed, it ce that they moved into only a few over another large rm to implement could be helping it. months ago. eir business cards list BlackLine into their systems, a cloud- e rm, just about 1 year old, al- personal interests. Ursick’s points out based accounting platform. ready is on track to log $1.5 million in he’s an amateur BBQ competitor and “He was just very comfortable with annual revenue. Its sta has grown to a craft beer enthusiast. Twenty- ve- the environment and the system. It Contact Jonathan A. Mokri seven full-timers. And it's taking on seemed like a no-brainer to give them projects across the globe, competing a shot,” Auker said. “( e project) was 440.526.8700 • [email protected] “People often for work against some of the coun- conducive to a small, focused work www.cbscuso.com try’s biggest nance and advisory think if you’re team and implementation e ort. And rms. the attitude they brought to it was very Providing Commercial Loan Financing in Partnership with Area Credit Unions SM And they’re all in their 20s. refreshing and very good.” “We take an informal approach,” successful, you’ll Experience was certainly key. e said partner John Tilow, 28, who’s personal feel resonated with him. But wearing blue jeans and a backward be happy. But I in terms of a seemingly laid-back Cleveland Indians ballcap. “It’s a style, Auker said, “Corporate Ameri- much di erent feel for the buyer than think if you’re ca is probably ready for some of these having three guys in suits and all changes.” Is your these years of experience between happy, you’ll be Ursick made a goal to secure a them.” project in the rst year or so in busi- Environmental It’s certainly not uncommon for successful.” ness. Yet, he’s already landed several, millennials to ll out consulting proj- forcing him to onboard the addition- Advisor piling ect teams. But in a traditionally for- — Marc Ursick, Clearsulting al sta to meet demand, several of up frequent mal industry where reputation and founding partner whom are migrating from other Big 4 appearance can make all the di er- year-old manager Paige Howard’s rms, drawn by a true work-life bal- flyer miles? ence in landing work, the group at mentions her love of traveling and ance and the opportunity to build a Clearsulting wants to blaze its own country music. business from the ground up. trail. e group talked about sharing Revenue-wise, the rm is shooting Ours? e business was founded by Marc drinks and swimming with clients at for $5 million in revenues in its sec- Ursick, a 29-year-old Willoughby na- a client project in India this past ond year. Additional sta will ow in Local. Expert. tive who left a consulting manage- summer. accordingly. ment job at a Cleveland Big 4 rm to “We do operate a lot more freely. Embracing the culture Clearsult- Protecting clients. pursue his own enterprise — a jump We couldn’t do that at EY,” Ursick ing has established is key to any new any reasonable person might be hes- said with a laugh. “Drinking a beer in sta er, Ursick said, adding that he ef- itant to take. the pool with a client and not work- fectively requires everyone to main- LEARN MORE J www.armadarisk.us/EnvExperts “I was working at (Ernst & Young) ing? HR would be calling us on Mon- tain some kind of hobby outside of or call 216 350 5050 for seven years, and one day it hit me: day.” work. I needed to make a change,” Ursick But if the work gets done, enjoying “Even if you’re a top performer, but said. “I wanted more freedom.” free time shouldn’t be a concern. you don’t t our informal culture, e freedom comes not only in And it’s obviously not when unshack- we’re not interested at all,” he said. more personal time — Tilow, who led from the oversight of a large cor- “ at’s what’s most important to us. also formerly worked at EY, said it poration. at’s what we’re doing this for.” We Protect. You Grow. wasn’t uncommon to constantly While they haven’t secured every “People often think if you’re suc- travel and work more than 80 hours a project they’ve pursued, Ursick’s cessful, you’ll be happy,” he added. CLEVELAND TAMPA week — but in their approach to the straightforward and laid-back style “But I think if you’re happy, you’ll be business. has been winning over clients. successful.” Who says your desk phone has to be at your desk?
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Learn more at onetalk.com or call 1.800.VZW.4BIZ. PAGE 6 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS Downtown Hudson Class A Space +/-1,198 SF, +/-1,203 SF and +/-7,121 SF Available Study ‘reinforces’ impact of hospitals to economy By LYDIA COUTRÉ Northeast Ohio hospitals compared [email protected] The Northeast Ohio region covers the Center for Health A airs’ membership @LydiaCoutre area. In 2010, that included 14 hospitals in Ashtabula, Cuyahoga, Geauga, Lake, Lorain and Medina counties. In 2015, 11 hospitals were in the CHA report. In 2015, hospitals in Northeast Ohio pumped roughly $11.5 billion into the local economy through both Resources and patient numbers direct and indirect employment, ac- 2010 Category 2015 cording to a new study from the Cen- 10,233 Beds available 9.851 First & Main, Hudson, OH 44236 ter for Health A airs. 365,221 Inpatients 347,014 “It reinforces how important the • Downtown Hudson Class A • In the heart of Downtown hospitals are to Northeast Ohio (and) 24,190 Babies included in inpatient total 23,488 O ce Space Hudson the nancial health of the communi- 4,838 Inpatients averaged daily 4,627 • Space Available: • Adjacent to historic Main Street ty," said Laura Gronowski, chief of +/-1,198 SF, +/-1,203 SF, & +/-7,121 SF 5.18 days Average length of stay 5.22 days • Evening & weekend community sta for the center, an advocacy • Velocity broadband events group for Northeast Ohio hospitals. 1,028,294 Patients treated in emergency rooms 1,233,870 • Proximity to amenities & retail • Proximity to Route 8 & I-80 (Ohio “ e hospitals are major employers 170,778 ER admissions 168,143 establishments at First & Main Turnpike) in the area and contribute greatly to 105,203 Inpatient surgeries 97,299 the nancial strength.” 226,177 Outpatients surgeries 245,158 Diana (Golob) Whisenant, SIOR Cheng-Han Yu Hospitals in Cuyahoga and sur- 216.861.5398 216.861.5490 rounding counties employ more than 17,798 Patients received psychiatric 20,158 [email protected] [email protected] HannaCRE.com 81,000 people directly, plus roughly and/or chemical dependency care 4,300 through their construction projects. Combined, these employ- locally. Prior to that shift, UH “sort of Western Reserve University, a project ees earned almost $7 billion in sala- bought things where we bought around $500 million; and a new hos- ries and bene ts in 2015. things.” pital in Avon for about $160 million. 440.352.4700 e 2016 Economic Impact Re- Of the total $832 million it spent in Given its international reputation, port, which the center released in goods and services in 2015, $199 mil- Harrington said, the Clinic also September, also factors in the jobs lion was spent with vendors in Cleve- brings in a lot of patients from out- and income estimated to be created land and $363 million with vendors side the region, state or country, by employees spending their pay- in Ohio. which further fuels local spending. checks in the community. e study “We know that the minute we in- According to the Center for Health calculates that this contributes to an- vest that purchase in the local econo- A airs’ report, 16.9% of the region’s other roughly 81,000 jobs and $4.5 my, those dollars stay locally,” Gart- total hospital revenue was earned billion in a six-county region: land said. from providing care to patients who Cuyahoga, Ashtabula, Geauga, Lake, e Cleveland Clinic also con- live outside of Northeast Ohio. 19 Ways to Put Lorain and Medina. ducts internal studies of its economic e report also highlighted the e center releases this study about impact, generally for stakeholders, community bene t total from hospi- Accounts Receivable every three years. e total contribu- board members, community leaders tals in Northeast Ohio, which calcu- tion to direct and indirect income in or the media. Mike Harrington, the lates the free and subsidized care the region is up from $10 billion in the Clinic’s chief accounting o cer and they provided, community health on AutopilotAutopilot E-BookE-Book last report examining 2010 data. controller, said that people often ask improvement initiatives, health pro- Heidi Gartland, vice president of the Clinic about its impact, especially fessions education and in-kind con- government and community rela- as a nonpro t. tributions to community groups. Scan above or visit tions for University Hospitals, said ese studies are a way to “demon- In total, the region's hospitals o ered UH is keenly aware of its work not strate what kind of engine we are in $1.8 billion in community bene t. www.anytimecollect.com/crainswww.anytimecollect.com/crains only as a health care provider but terms of fueling the economy here in “ ere's a really big tie in terms of to download the also as an economic driver. Northeast Ohio,” he said. our economic predominance to be- “Obviously, we do an amazing job In addition to the workforce it em- ing able to really not only do good FREE E-BOOK at UH in providing health care for the ploys, Harrington points out the health care, but also think about the community, but I think one of the Clinic’s investments into the expan- future both in cures from the re- things that people don't often think sion of its services across the region search that we do and in making sure a better WAY to about is the bene t of the economy also impacts the economy, including that we've got the workforce that's that presence of amazing health care building a brand new cancer center going to take care of the certainly get PAID faster provides,” she said. with a budget in the $300 million changing demographic,” Gartland In the past several years, UH has range; creating a Health Education said. “We know our population is get- begun focusing on buying and hiring Campus in partnership with Case ting older so we have to make sure
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Contact us today for a free 30-day trial. 7HEN YOURE IN "EACHWOOD YOU HAVE ARRIVED CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 7 Economic impact of area hospitals The economic impact of Northeast Ohio hospitals is measured both by the jobs they create and the wages earned in those jobs. The report measures direct jobs as well as secondary jobs and wages created when their employees spend Western Reserve Partners their paychecks in the community. It also calculates the income, sales and Your Gateway to International M&A other taxes that employees pay. Here’s a look at 2015 numbers. Recent Cross-Border Transactions Employment impact 81,836 Direct employment 4,347 Direct employment, construction 81,360 Secondary employment has acquired 167,543 Total employment impact has merged with has been acquired by
Labor income impact a portfolio company of $6.8 billion Total labor income Sell-Side Advisor Buy-Side Advisor Sell-Side Advisor $228 million Total labor income, construction $4.5 billion Secondary labor income $11.5 billion Total labor income
State and federal tax impact has acquired has sold its $347.2 million County residential property taxes has acquired Wiring Business segment to $369.5 million State income taxes $275.5 million Retail sales taxes $60.5 million Motor vehicle fuel taxes Buy-Side Advisor Strategic Advisory Services Sell-Side Advisor $2.5 billion Federal income taxes Western Reserve Partners believes that access to international buyers, sellers and investors $3.7 billion Total state and federal tax impact is fundamental to maximizing value for our clients. Let us help bridge the gap between domestic growth and global success. Our professionals have completed over 40 cross-border Local tax impact transactions and have the knowledge and resources to navigate the international marketplace. $99.8 million Municipal income tax in Cuyahoga County For more information regarding our investment banking services, please call (216) 589-0900 or visit our website www.wesrespartners.com. that we're training that next genera- Health Center, St. Vincent Charity tion that's going to be there to take Medical Center, e MetroHealth care of whatever the health diseases System, UH St. John Medical Center are of that future population.” and University Hospitals Hospitals included in the study e report compiles data from e Mergers & Acquisitions . Capital Raising . Financial Opinions & Valuations . Restructuring & Bankruptcy were Ashtabula County Medical Center for Health A airs' Volume Center, Cleveland Clinic Health Sys- Statistics Report, its tax study and an 200 Public Square . Suite 3750 . Cleveland . OH . 44114 tem, Lake Health, Louis Stokes economic impact report it commis- :HVWHUQ5HVHUYHLVDPHPEHUȴUPRI2DNOLQVWKHZRUOGȇVPRVWH[SHULHQFHGPLGPDUNHW0 $DGYLVRU\RUJDQL]DWLRQ Cleveland VA Medical Center, Mercy sioned. e report was completed by Allen Hospital, Mercy Regional Med- professors of regional economics at ical Center, Southwest General Oklahoma State University.
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Financial Executives International New Riverside fund gets Northeast Ohio Chapter JumpStart’s attention t t By JEREMY NOBILE of tech companies tility, propelling more investors to take Leadership Vision Management in Cleveland, we on greater exposure to the asset class. [email protected] love when we have e venture debt space, mean- @JeremyNobile chances to work while, has been growing on its own as FEI serves as the resource for today’s together with par- investors increasingly supply capital When JumpStart Inc. CEO Ray Leach ties like that.” to companies that aren’t yet pro table CFOs and their finance teams. learned about Riverside Co.’s new “Multiple” and don’t have many physical assets. non-control, venture debt fund, he im- Cleveland soft- Couple all this with the explosion mediately connected with Jim Toth. ware companies, of software companies and a desire Toth is the fund manager of River- Toth he said, already for alternative nancing by business- Join now and pay no local dues side Acceleration Capital, a new, na- are on his radar. es in that space, and the strategy be- tionally focused growth-investment “With Riverside being in the venture hind this fund becomes evident. for the rst year. Become our fund for the rm that targets fast-grow- business … that could be a really, really “I was seeing a lot of software com- ing enterprise software companies. powerful result to solidifying and ad- panies trying to invest in the busi- newest member for $399! e fund itself is some new territory vancing the early-stage investing com- ness, but didn’t want to take on big for the nearly 30-year-old private eq- munity in Cleveland,” Leach said. growth rounds or be acquired. And uity rm as it breaks into venture debt. there really aren’t many other op- But with Riverside being a respect- Sensing opportunity tions,” Toth said. “ is felt like a real www. nancialexecutives.org/join ed trendsetter in the private equity hole in the market to come in with an Questions? Contact us at 216.696.5501 space, some observers see this po- Riverside Acceleration Capital — alternative source of capital.” tentially drumming up additional in- which closed on fundraising in Octo- vestor interest in the rapidly growing ber after eight months at $50 million Impact of a trendsetter world of venture debt — a form of — provides loans to fast-growing en- investment fundamentally di erent terprise software companies to accel- What Riverside is doing in devoting from the traditional private equity erate growth in their early years of some attention to venture debt may deals on which Riverside has built its development through exible, not be entirely novel, but it’s still rath- global business. non-dilutive capital. er new territory for private equity. Given that JumpStart, a nonpro t, ere’s no ownership stake, like in It’s not entirely surprising they IS YOUR TECHNOLOGY works with young tech companies a traditional private equity invest- would branch out their e orts in this throughout Northeast Ohio, ones ment. way considering the competition in that could potentially attract capital Riverside collects in a structure dealmaking and the challenges of HOLDING YOU BACK? from the new Riverside fund, Leach that “feels a lot like a royalty,” Toth nding and investing in the best said he’s excited by the opportunities explained. Companies pay back companies as more money ows into Simplified data. Productive employees. Riverside’s new fund could create for based on a percentage of their reve- the asset class. All of those factors are Enhance your software and processes with PARS. growing local enterprises. nues, usually in the low single digits, driving the private equity sector at “We are seeing more and more ven- until they hit a cap. Terms can vary, large to seek more non-traditional ture debt, and this is an evolution of but the return is anticipated to be in investing strategies as a result, notes that,” Leach said, referencing the inter- the range of 1.5 to two times the in- Bertrand Smyers, managing partner est of a private equity rm in that space. vestment over roughly ve years. at Cleveland’s New Heights Research. “We certainly have companies not only e target enterprise companies, of e relatively young River SaaS in our portfolio, but also companies course, aren’t pure startups. ey’ll Capital, for example, provides debt across Ohio and the Midwest that have a good customer base and annu- nancing to growing software-as-a- would have an interest in talking to al revenues ranging from $1.5 million service companies, primarily target- Riverside as it relates to the role and to $15 million. ere usually are some ing borrowers with a minimum of purpose of this particular fund.” warrants in the deals, but Toth said $150,000 in monthly recurring reve- And while Toth emphasizes the they’re not a “big part” of the return. nue. River SaaS chief investment o- fund is vetting companies across the “Where we saw opportunity for eq- cer Wendy Jarchow said those with country, not focusing on a speci c uity is if these companies do go on to $1.5 million in annual recurring reve- region, the potential for local impact raise equity rounds from more tradi- nues could be ideal targets — the shouldn’t be understated. tional later-stage VC funds, we hope lower end of the revenue spectrum Riverside is co-headquartered at that point we know them well, they Riverside would consider. TM here, and naturally has a large Cleve- know us well, and we’re able to par- River SaaS is working out of a fund GROW YOUR BOTTOM LINE. land team. ticipate in those equity rounds, too,” that has a $4 million target, but fund- Call 216-302-4769 to learn more, “Because we’re doing something that Toth explained. raising for that is ongoing. e rm Or visit www.pars.systems/crains is new and innovative, one of the biggest Riverside co-CEO Stewart Kohl re- also doesn’t require any exit strategies. challenges we have is companies don’t cently told Crain’s that fundraising has In this case, River Saas and Riverside know about us,” Toth said. “For some- been a bit easier lately for reasons rang- aren’t targeting exactly the same com- one like JumpStart, which is in the ow ing from strong returns to market vola- panies with the same o ers, but there is potential for some overlap there. So while Jarchow said she doesn’t feel too much additional pressure as Riverside steps into venture debt, more competition could potentially impact deal terms. e way Leach sees it, what River- side is doing eventually could result in other private equity shops or other QUALITY alternative lenders pursuing venture COMMERCIAL debt as well. Locally, there aren’t a We’re obsessed with providing the highest large number of rms o ering this kind of nancing today. But that quality in our products and services. REAL ESTATE SERVICES could change. Can your paving contractor say that? And as more competition stirs up in venture debt, that will naturally Visit naicummins.com bene t the receiving companies. • Asphalt Paving • Pavement Milling • Pavement Marking “It does create more competition, • Hot Mix Production Facility or call 330-535-2661 and in my mind, competition is al- ways good,” Leach said. “But it also • Concrete and Excavating Services signals to other investors that this is an approach that has merit. at results in aggregating even more capital.” “If you are in the private equity space and you are innovative, or Quality and Excellence in you’re thinking about starting a fund Asphalt Paving Since 1939 or investing in Ohio,” he added, “the fact Riverside has created this fund and is interested in doing deals that 800.PAVE.NOW are just as connected to the venture ecosystem as much as the private eq- www.RonyakPaving.com uity system is another positive signal to the market.” CRAIN’S Health Care Forum TITLE SPONSORS A NEW ERA OF HEALTH CARE DELIVERY s scrutiny intensifies over health care costs and quality, the PANEL DISCUSSIONS A medical industry is expanding “The comprehensive approach: Opportunities, challenges for the its focus beyond individual patient care health care sector, business world and community” and fee-for-service models to value- As the medical community makes the transition to preventive care, based contracts and population health what is the responsibility for those outside of health care? management. DR. RANDALL CEBUL, president and director, Better Health Partner- The goal of this emerging care delivery ship: “I think the government, as an employer, as a tax receiving orga- system is simple: Keep people healthy as nization, has a responsibility, and if – as providers and payers within a opposed to treating what ails them. geographic location – we can influence the coordination, the alignment However, as Dr. Nabil Chehade, of those programs, we should to that.” notes: “It’s how we get there that is very DR. ROBERT MCGREGOR, chief medical officer, Akron Children’s complicated.” Hospital: “If you are employing 6,000 people, that’s a pretty good Chehade, senior vice president of population to think about investigating, because the healthier your em- population health for MetroHealth ployees are the less missed days, the less overtime, etc., you will have.” System, was the keynote speaker at KELLY OWEN, regional vice president, network management – the Crain’s Cleveland Business Health payment innovations, Anthem Blue Cross and Blue Shield: “Patients Care Forum, which had the theme of have to make better decisions about their lifestyle and be more “Population Health: What it means for proactive about preventive care.” health care and Northeast Ohio.” PHOTOS BY JIM BARON J. RYAN WILLIAMS, partner, Brouse McDowell: “The scarcity of hous- The Sept. 28 conference drew hundreds LEFT: Dr. Nabil Chehade, senior vice president of population health for ing, insecurity of food, violence in the home, transportation issues – all of regional stakeholders to the NEW Cen- MetroHealth System, was the keynote speaker at the Crain’s Cleveland are social issues that we as employers, as governments and policymak- ter at Northeast Ohio Medical Univer- Business Health Care Forum, which had the theme of “Population Health: ers can influence.” sity for presentations and panels about the What it means for health care and Northeast Ohio.” fast-changing health care landscape. RIGHT: Dr. Jay Alan Gershen, president of Northeast Ohio Medical University, “Big data, big possibilities: Harnessing the power of IT” Chehade said that while the definitive helped open up the Sept. 28 event at the NEW Center. Technology holds the promise to engage and empower patients, but meaning of the term population health health care organizations are only on the cusp of realizing that vision. may still be on the horizon, the move to the federal Medicare program in 2015. better integrating health care practices so DR. PETER RASMUSSEN, medical director, distance health, Cleve- value-based medicine, which involves “They are not going to go back,” that providers can comply with complex land Clinic, said hospitals are beginning to monitor patients with linking payment to health outcomes, is Chehade said, “and some of the work value-based contracts also are part of the chronic diseases at home. That data will ultimately “stream into the very real. in this new world does not jive very “journey,” which, Chehade estimates, electronic medical record” and provide “a broader view of the patient In 2015, the U.S. Department of well in the fee-for-service world. … We will take five to 10 years. when we have that one-on-one interaction with them.” Health and Human Services announced have to navigate a very tortuous future Meeting patients where they are AMBER GREGG, director of analytics and innovation, CHAMPS a goal of increasing Medicare payments in the next few years.” Even after the arduous processes of Oncology, believes data analytics will play a major role in helping through value-based models from 20% That future involves some key steps, reforming payment systems and opti- diagnose and treat diseases like cancer. To some degree that is already in 2014 to 50% in 2018 – a goal the notably moving more care to outpatient mizing practice networks, health care happening, Gregg said, although data integration remains a barrier. Centers for Medicare and Medicaid settings where “the cost of taking care of will have one more giant leap to go be- LORREN PETTIT, vice president, HIS, HIMSS North America, would Services is poised to uphold. them is much lower,” he said. Next, the fore realizing what Chehade calls “Pop- like to see the medical community “advance the concept of the lon- Today, an estimated 30% of Medicare industry will be tasked with getting all ulation Health 2.0” — bringing care into gitudinal patient record,” which would be curated and maintained at payments are tied to models that payers — public and private alike – at homes and community-based clinics. outpatient settings such as rehabilitation facilities. reward the quality of care over quantity the table to reform and align payment “For all of us building those giant DR. WILLIAM STEINER, interim president and medical director, Uni- of services, he said, adding that one systems so providers aren’t juggling a outpatient facilities, I have news for versity Hospitals Accountable Care Organization, stressed the need to initiative alone — the agency’s cohort series of diverse requirements. you: It is a necessity for now, but the focus on “actionable data” – information health care providers can use of Accountable Care Organizations — Restructuring provider compensation future is way beyond those brick-and- – and “then get back to the point of care.” generated $466 million in savings to to incentivize quality outcomes, and mortar facilities.”
NEOMED’s NEW Center serves as population health model Opened September 2014, the NEW the (residents) of Rootstown and platform for whole community wellness,” gym users, Ellis said. Even more come Kasmer, vice dean and professor of Center at Northeast Ohio Medical Uni- surrounding communities,” said Boltri, explained Jim Ellis, executive vice presi- to educational programs about health pharmacy practice at NEOMED said versity is way more than a modernized who also is managing director for the dent and managing director of Integrated topics, many of which are free. the on-site pharmacy features an open student union. facility’s fitness center, Sequoia Wellness. Wellness Partners. His company manages The center’s experts also go out design so that customers can interact It is a state-of-the-art health and well- Boltri joined fellow NEW Center col- the operations at Sequoia Wellness. to schools to teach children how to with pharmacists – who, by the way, are ness hub with a fitness center, physicians’ laborators in a panel discussion, mod- The NEW Center “does have fitness take control of their well-being, and not trapped behind a counter – patient offices, a pharmacy, and conference and erated by Monica Robins of WKYC, components to it, but it is so much more,” the center hosts a Bio-Med Science counseling rooms and a “tech bar” where event space – designed purposely to “de- about the university’s new health care Ellis said. “It is really about taking this Academy for high school students and consumers get advice and guidance on velop programs for the whole communi- hub and what it means to the future of 360-degree view of someone’s health.” recently launched a free clinic run by its health care technologies and digital apps. ty,” according to Dr. John Boltri, profes- integrated care. That approach has transformed graduate students. “It’s all designed for easy access, for sor and chair of the department of family The medical wellness model has NEOMED’s relationship in the Another recent addition is the the pharmacist to be approachable, to be and community medicine at NEOMED. evolved over the last 20 years from merely community. At Sequoia Wellness Pharmacy of the Future, a joint venture asked questions at any time,” said Dr. Beth “By community, I mean NEOMED “fitness facilities that health care organi- alone, 1,500 community members, not between regional retailer Ritzman Husted, general manager of pharmacy employees and students, as well as zations would have their name on” to “a affiliated with NEOMED, are regular Pharmacy and NEOMED. Dr. Richard services for Ritzman Pharmacy.
CRAIN CONTENT STUDIO FOR MORE PHOTOS FROM THE EVENT, GO TO www.CrainsCleveland.com/HCForum Cleveland PAGE 10 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS Opinion
From the Editor Tapping into the power of young professionals
As a certain Nobel laureate once wrote, the times they are a’changing. Baby boomers knew that back when Bob Dylan penned those lyrics in 1964, as they were coming of age. e leading edge of the generation was just starting to enter the workforce then. ey’d be disrupters, bringing about a seismic change in how we live and work. Baby boomers today have a di erent perspective on change as they watch an- other generation shake up the status quo. e millennials have arrived, and they are changing how we live, work, shop, eat and communicate. And, if you ask me, this change is good. Millennials — those born between 1981 Elizabeth and 1997 — are now the largest living gen- McIntyre eration in the United States, having sur- passed the baby boomers earlier this year, according to the U.S. Census Bureau. e generation’s impact worldwide will only increase. By 2020, PwC estimates, millen- Editorial nials will make up half of the global workforce. is earthquake is rocking my world, too. I’m a member of generation X. We were the latchkey kids who had the attitude, but not the numbers, to make a huge impact. But the millenni- als — sometimes referred to as generation Y — have the pull and the numbers. Cash infusion And they are making their work-life demands known, as many employers in Northeast Ohio have already experienced. e picture Cleveland Mayor Frank Jackson paints of life ect funded with state dollars. Specically, the new state law tar- Employers are implementing more exible work schedules, al- without an increase in the city’s income tax is a dire one: mass gets Cleveland’s Fannie Lewis Law, which requires that on the lowing employees to telecommute when possible and creating layo s, greatly diminished city services and a di cult time im- city’s construction contracts of $100,000 or more at least 20% of unique job structures. plementing federally directed police reforms. the labor be performed by Cleveland residents, a sliver of which We at Crain’s Cleveland Business are aware of the growing in- It would be easy to cast blame on the Jackson administration should also be low-income. Cleveland recently challenged the uence of this important demographic, which is why we are for gross negligence when it comes to the city’s books —after law in a lawsuit. But to his credit, Kasich did support Cleve- starting a young professional advisory board called Crain’s all, isn’t Cleveland in the midst of a renaissance and shouldn’t land’s bold school reform e orts. RISE to give millennials a voice in Northeast Ohio business the boon in business within the city’s limits be re ected on its Having more money stripped from our paychecks isn’t an news. ey’re a huge part of the business climate, but some- balance sheet? ideal scenario in what for many is still a challenging economy. times the old guard develops selective hearing problems. We e truth is much of the blame for the city’s problematic - But even more dangerous is disrupting critical city services at a aim to help amplify their message. nancial position falls on the state’s leadership, particularly Gov. time when Cleveland seems at last to be turning a corner. Yes, e group will advise Crain’s on coverage, events, network- John Kasich. During the governor’s admirable and princi- sports championships, new housing developments, restaurants ing opportunities and more. We want to learn what’s on the ple-driven run for the presidency — an ongoing one given his and the like are important components of a city on the rise. But minds of young professionals as they chart their career paths, refusal to support Donald Trump — he boasted often about his if we can’t support our own, do we still deserve the spotlight? which one day (already, for some) will bring them to top lead- ability to balance the state’s budget. However, as we’ve stressed ership positions in our communities and businesses. in the past, much of Kasich’s budget wizardry came in the form We have brought together a group of 16 young professionals of shell games, leaving local governments like Cleveland to who will meet quarterly under the guidance of Michelle Sustar, pick up the tab for that sleight of hand. And that’s why we sup- Tribe time our integrated marketing manager, who is a millennial herself. port Jackson’s proposal to increase the city’s income tax from is year’s Cleveland Indians team has been nothing short of Serving on Crain’s RISE will be: 2% to 2.5%. inspiring. In the face of adversity — namely injuries to key play- Francesca Alex Justin Lonis Kasich’s and the Legislature’s much-touted cuts in the state ers and skepticism from the national press — the Tribe rallied Lisa Catalano Gabriel Malemud income tax resulted in severe cuts to local governments and and captured Cleveland’s imagination. Yes, the Cavaliers’ Benjamin Colas Jill Pecoraro schools. Now, Cleveland is trying to play catch-up, and we ap- championship was special and brought a wonderful amount of Greg Genega Ryan Puente plaud the mayor’s political courage in asking Clevelanders and attention to our city. And yes, those Tribe teams of the mid- Lauren Gliha Christina Suh those working within the city to keep the funds owing to pre- 1990s were magical. But for whatever reason, the Tribe’s 2016 Mara Kamat Meghan Tinker serve — and improve — critical city services. Fixing potholes, playo run feels di erent. Gelise LittleJohn Patrick Zangardi hiring cops and reghters, cleaning our streets — they all cost Perhaps it’s because in many ways this collective of ballplay- Jazmin Long Adam Zuccaro money. ers is representative of the city it calls home. ey’re gritty. ey e state certainly hasn’t been Cleveland’s closest ally in re- thrive in the face of adversity. ey are underdogs, and there We’ve also launched a young professionals blog at Crains- cent years. isn’t any one player stealing the spotlight. is is a “team” in Cleveland.com as a way for YPs to learn from each other and e same could be said about the woefully underfunded every sense of the word. connect. We hope this platform also will help other generations Greater Cleveland Transit Authority. e typical state provides e hearts of many Cleveland sports fan are beating as loudly to engage with young professionals and learn their perspective 20% of the transit needs in their state, whereas Ohio is at 8/10th as John Adams’ drum as the Tribe faces o against the Toronto in the workplace. of 1%. Also, Kasich recently signed o on a new law that prohib- Blue Jays to secure the American League pennant. And frankly, If you are interested in writing for the Crain’s YP blog or have its state and local governments from requiring a contractor to nearing cardiac arrest has never felt so good. a topic suggestion, or would like to learn more about Crain’s employ a certain number or percentage of residents on a proj- Go Tribe. RISE, send Michelle Sustar an email at [email protected].
Publisher and Editor: Elizabeth McIntyre ([email protected]) 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, Managing Editor: Scott Suttell ([email protected]) Cleveland, OH 44113, or by emailing [email protected]. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sections editor: Timothy Magaw ([email protected]) CLEVELAND BUSINESS Sound o : Send a Personal View for the opinion page to [email protected]. CLEVELAND BUSINESS Contact Crain’s : (216) 522-1383 Please include a telephone number for verification purposes. CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 11
Personal View Travel can grow our economy GOGO TRIBE!TRIBE! and change Cleveland’s narrative #RallyTogether By DAVID GILBERT into November, if needed. No matter how long the im- mediate spotlight remains, your commitment and Yet again, Cleveland is in the media spotlight thanks support is essential to our ongoing and long-term col- to a signi cant national event. From the Cavaliers lective success. We need you to: championship run to hosting the Republican National J Embrace the momentum of the travel and tour- Convention to the Indians’ current chase for a World ism industry. Get out and experience Cleveland so Series berth, we continue to welcome visitors to our that you continue to recommend the city as a visitor great city to enjoy our hotels, attractions and restau- destination to family and friends. From conversations rants while also making an impression with those who with our CLE Concierge team (both online and at the PROUD PARTNER OF THE CLEVELAND INDIANS are hearing about Cleveland through media. We are Visitors Center at 334 Euclid Ave.) to resources avail- sending a loud and clear message to travelers, busi- able on isisCleveland.com and through our social ness owners and potential residents around the globe: media channels, we have plenty of ideas to help you If Cleveland isn’t on your radar, you’re missing out. explore our area and become an ambassador. Every day, Destination Cleveland and our pri- J Continue to spread the positive Cleveland atti- vate-sector partners actively work to shape percep- tude. Be proud (and loud) when you travel outside of tions and ultimately entice travelers to explore our the region. Talk up the revitalization of our city, includ- neighborhoods, meet in our convention center, eat in ing more than $3.5 billion in visitor-related infrastruc- our restaurants and enjoy our distinct attractions. ture, the transformation of our economy from a tradi- We undertake this e ort to create more than just tional manufacturing center to a health-tech/high-tech one-time visits. We do so to also in uence opinions hub, and our determination to continually improve — 575 JOBS. THAT’S WHY. about Cleveland among business site selectors and fu- and have fun while we do. Be the voice of Cleveland. ture residents. Research from Oxford Economics J Pursue activities that can drive further industry WE ARE ECONOMIC shows that investments in the visitor economy drive growth to benefit the city and county. If you can in- broader economic growth. Speci cally, a recent study uence meetings and conventions to come to Cuyahoga DEVELOPMENT EXPERTS. indicated that perceptions of an area are in uenced by County by either booking business directly or providing A recent inSITE project preserved business travel for 37% of executives with site selec- access to decision makers for meetings and conven- tion responsibilities while 32% of new residents in an tions, consider becoming a Cleveland Champion and 450 jobs and created 125 more area rst visited their community as tourists. advocate for the city as a business destination. Destina- for the City of Cleveland. e travel industry in Northeast Ohio is big busi- tion Cleveland works hand-in-hand with Cleveland ness. Collectively in 2015, travel and tourism generat- Champions to determine if the city and its facilities are ed over $8.1 billion in economic impact for the area a good t for upcoming meetings and conventions, and, and supported nearly 65,900 jobs in Cuyahoga County if so, we’ll work with you to introduce and sell Cleveland (8.1% of the county’s total jobs). From July 2015 to July to the decision-making team. 2016, leisure and hospitality experienced the largest ere are plenty of opportunities for each and every job growth in Northeast Ohio, according to the Bureau Clevelander to champion travel to Cuyahoga County of Labor Statistics. so that we remain a desirable leisure and meetings e industry is growing and jobs are being added and conventions destination. I ask you to join our ef- because more and more visitors view Cuyahoga Coun- forts to unleash the untapped potential of the travel ty as a place to convene meetings and conventions, industry and bring more people to our county to enjoy visit, have fun and make memories. Last year, we wel- our area for all the reasons we already do. comed a record 17.6 million visitors, representing a If you have any questions about getting involved, steady increase from 16.9 million in 2014 and signi - please visit www.thisiscleveland.com/contact for a di- Call today to learn more 330.338.4926 www.insiteadvisorygroup.com cant growth from just 14.9 million in 2011. ese visi- rectory of departments and contacts. tors contributed more than $1 billion in sales tax to our county. David Gilbert is president and CEO of Destination As I write this, the number of ALCS and World Series Cleveland, the region’s convention and visitors’ bureau. games Cleveland will host remains undetermined — He also serves as president and CEO of the Greater schedules show we could ride the wave of attention Cleveland Sports Commission.
Web Talk Re: Millennials, the swearing generation London Bridge to citizens. ... If Cleveland Clinic could weasel out of its lease, it will find a way to WHERE THE BRIGHTEST MINDS IN Once upon a time, companies had an o cial code walk away from the freestanding ER, too. — Angela HEALTHCARE CYBERSECURITY MEET of conduct where profanity was expressly White forbidden in the workplace. But sometime over the past 20 years, it became fashionable for upper Re: Utilities in Ohio Please join us for the debut of the HIMSS management to drop four letter words in big Cybersecurity Hub, a new flagship component meetings (for emphasis and style points) and it's I read with interest the Oct. 10 Personal View by of the HIMSS Innovation Center. trickled down from there. So like everything else Dick Munson and Devin Hartman, "Utility regulators — notably dress codes — language has must protect average electricity customers and • Discover innovative solutions. degenerated to the stench of the sewers. — competition." Utilities all tend to be underproductive • Encounter cutting-edge technology. Donald Templeman and very fat with costs. My company has been • Interact with health IT thought leaders. trying to help the nine operating companies of Re: Future of health care in Lakewood FirstEnergy for years to deal with productivity and OPENING RECEPTION costs by addressing "how to manage work" outside Tuesday, October 25, 2016 | 5:30 pm – 7:00 pm I'm an ER nurse and also work in critical care. A city the computer where the operational issues exist. Global Center for Health Innovation that has a 52,000-person population without a There is no need for rate hikes. I know for a fact that HIMSS Innovation Center, 4th Floor hospital is insane. An ER without a cath lab for my company can improve productivity and reduce 1 St. Clair Ave., NE, Cleveland, OH strokes and heart attacks is not a real ER. costs by 20% or more across their operating Recently, an 85-year-old man sat in the hallway at companies in less than six months. We're talking Learn more: St. John Westshore in a bed. Why? There wasn't about $100 million-plus. The savings can be WWW.HIMSSINNOVATIONCENTER.ORG/CYBERHUB #HITsecurity enough hospital beds on the West Side. Wait until redirected to infrastructure improvements where flu season!!! Lakewood politicians are selling the it's needed most. — Paul Lanich PAGE 12 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS The Dish: Susan Condon Love McNulty, partners raise glass to brewery’s success Sam McNulty — restaurateur, beer co-owns — all located in his beloved and the production brewery, which On this particularly gloomy fall connoisseur and innovator — doesn’t Susan Condon Ohio City — and new projects that he co-owns with partners Mark day, it is a mixture of all of the above. just create and manage popular Love is a are still in the fermentation stage Priemer, brew master Andy Tveekrem McNulty’s longing to live in the restaurants and breweries in Ohio freelance (pardon the pun). and Mike Foran. e brewery has historic neighborhood began long City. He and his partners salvage, re- writer who was Just walking a half-block from his been going strong since its January before he moved there in 2004. After store and renovate, giving new life to an editor and apartment on West 25th Street (“I’ve premiere. spending more than half his life liv- dilapidated houses, warehouses and writer at The lived there for 12 years, on a month-to- Before McNulty can reach the fa- ing just minutes from the Lorain Car- even fallow land to celebrate the his- Plain Dealer, month lease after the rst six months,” cility, located diagonally from Market negie Bridge (with its guardians fea- tory, people and the electric vibe of The Las Vegas Review-Journal, he said. “My mom says I can’t com- Garden and close to the West Side tured on his company logo), he still the trending neighborhood on Cleve- the Savannah (Ga.) Morning mit.”) is an adventure in neighborli- Market, there is not a person walking sounds wistful talking about how, in land’s near West Side. News and The Annapolis Capital. ness. He sees his landlord and soon is by that he doesn’t greet. the 1970s, his parents came “this McNulty’s most recent project, engaged in an animated, 20-minute It’s hard to pinpoint what makes close” to moving to the slowly rising along with his three partners, is the conversation, his rescue labradoodle McNulty, 41, more excited — the his- neighborhood. But a shady develop- Market Garden production brewery, and watching the process of making Bo standing patiently at his side. tory of Ohio City and e orts to pre- er took their money, and that of oth- tour and tasting room, which turned them, a passion that began for at conversation over, and after a serve its unique character; the peo- ers, and disappeared. out its inaugural brew on Jan. 27. In McNulty more than two decades ago. little time spent talking in the back ple; his many restaurants and new In 2005, he opened McNulty’s Bier the nearly 10 months since, scores of He recently met to talk about prog- patio of his Market Garden Brewery brewing facility with its public tours Markt after being inspired by beer gar- beer lovers have enjoyed both the ress at the production brewery and at restaurant, McNulty ventures outside and open production; or, last but cer- dens in Europe. He’s since added the craft brews produced at the facility the restaurants and companies he to give a tour of the neighborhood tainly not least, beer. restaurants Bar Cento, Speakeasy, Market Garden Brewery and Nano Brew Cleveland to his growing busi- ness lineup. ey’re all clustered around West 25th Street. McNulty and his partners have become a combina- tion of businessmen, brewmasters and goodwill ambassadors for Ohio City.
Already expanding
e two-story, 43,000-square-foot Market Garden production brewery was created out of a block of 19th-century homes that had merged into one unit over nearly 150 years. Visitors are able to watch from cat- walks and large glass windows the tanks in which the facility currently can produce 7,000 barrels per year. Since January, the facility “already expanded with a new row of fermen- tation tanks three times the size of the original tanks,” said McNulty. “ ere’s plenty of room to grow, but we’re taking a methodical approach to the expansion so we can really fo- cus on the highest quality and con- sistency of our beers.” He added, “ ere’s a huge in ux of craft beer into the marketplace across REL ABLE the country, and we want to invest time and energy in our three QA/QC labs (sensory, biological, analytical), rather than simply focus on pushing as much beer as possible into the market.” e size of the production brewery will allow the company to expand to 80,000 to 100,000 barrels a year, said McNulty. In the rst year alone, “160,000 gallons will be brewed” of approximately 70 di erent styles of beer, he said.
Surrounded by history
One of the goals of the Market Gar- den Production Brewery was to allow the public to watch the brewing of craft beers. Visitors can take tours ev- ery hour on the hour from 11 a.m. to 6 p.m. on Saturdays and Sundays (and by appointment). Plus, they can shop at the brewery’s store at the end of the tour. Cost is $6, which includes a tasting for those over age 21. You rely on your employees. The feeling is mutual. “We have tours come through all the time, everything from science At Aflac, we know the most important ingredient to your success is your employees classes at area schools and universi- performing at their best. Which is why we help with costs not covered by major medical ties, to company outings and tourists insurance and pay employees directly. And with One Day Pay,SM we make it a priority from around the country and even some from overseas,” McNulty said. to pay claims as fast as possible — in 2015, Aflac paid 1.2 million One Day PaySM claims. “To date, we’ve given tours to about Give the people you depend on, something they can depend on. See what Aflac can 5,000 people, and the interest in the do for your business at aflac.com/reliable tours keeps growing by the week.” Eagle-eyed visitors will see more than just beer production when they visit the facility: ey will be able to spot rem- *Aflac pays policyholders directly, unless otherwise assigned. **One Day PaySM available for most properly documented, individual claims submitted online through Aflac SmartClaim® by 3 p.m. ET. Aflac SmartClaim® not available on the following: Disability, Life, Vision, Dental, Medicare Supplement, Long-Term Care/Home Health Care, Aflac Plus Rider, Specified Disease Rider and Group nants of Ohio City’s rich, human history. policies. Aflac processes most other claims in about four days. Processing time is based on business days after all required documentation needed to render a decision is received and no “During construction, we found further validation and/or research is required. Individual Company Statistic, 2015. Individual coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, individual coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road I Columbus, GA 31999. some wonderful parts that revealed Z160117BR1 3/16 the original use — homes!” said McNulty. “One of our discoveries in- cluded a brick replace and layers of wallpaper.” CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 13 HOLIDAY PARTIES AT GREAT LAKES SCIENCE CENTER
Take the stress out of planning and let the Science Center create an unforgettable holiday event for your Sam McNulty, right, is shown with, from left, business partners Mark staff, clients and friends. Priemer, Andy Tveekrem and Mike Foran. (Susan Condon Love for Crain’s)
Walking through a maze of rooms sculptures salvaged from the Church while showing o the production of the Trans guration and Emmanu- Contact our brewery, McNulty pauses and points el Episcopal building, demolished by Event Coordinator Today! up. “See those,” he asked, motioning the Cleveland Clinic. to two windows on an internal wall of “Our tours are very much an im- the brewery. “ ose are original win- mersion and tactile experience,” said dows,” he said. “From the second sto- McNulty. ry of a house.” He added, “Not many people know 216-696-4941 Any original woodwork that could that Cleveland has a ag. It features the be saved was used to trim windows words ‘Progress’ and ‘Prosperity.’ ” [email protected] and doors. at is why, he said, he is naming his Even the entryway of the facility new beers Progress and Prosperity. manages to convey the warmth of e two words also encapsulate history and the march of progress. McNulty’s dreams for Ohio City: Original beams crisscross the ceiling. cherishing the past; looking forward e reception desk is embellished to the future. with stunning, unique wooden While enjoying a good beer, of course.
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FEATURING THE FOLLOWING SPEAKERS & MODERATORS KEYNOTE SPEAKERS
ANDREW BADER, co-founder and vice president, Additive Engineering Solutions CHARLIE DELACEY, vice president, corporate development, The Kenan Advantage Group PETER A. DEMARCO, vice president, tax services group, Meaden & Moore CARL J. DYCZEK, partner, Buckingham, Doolittle & Burroughs BRIAN D. GALE, president, I.D. Images LLC MIKE GIBBONS, senior managing director, Brown Gibbons Lang & Co. ROBERT MALONE, business practice group leader, Buckingham, Doolittle & Burroughs ASHLEY BASILE OEKEN, president, Engage! Cleveland RAJU PATEL, senior vice president in global commercial banking, Bank of America Merrill Lynch JOE KANFER STEVE PEPLIN, CEO, Talan Products Chairman and CEO, RICHEY PIIPARINEN, director, The Center for Population Dynamics, Maxine Goodman Levin GOJO Industries College of Urban Affairs, Cleveland State University JIM PSHOCK, founder, CEO and president, Bravo Wellness MIDMARKET CATHERINE M. SHEW, certified executive coach, business adviser; retired director of business development, FirstEnergy Corp. PERSPECTIVES THOMAS A. STEWART, executive director, National Center for the Middle Market DALE W. VERNON, principal, Bernstein Wealth; executive vice president in charge of PRESENTED BY programming and innovation, ACG-Cleveland KATHLEEN VEGH, manager of employee engagement, Hyland, creator of OnBase MARCELLA KANFER ROLNICK CO-PRESENTING SPONSOR MAJOR SPONSORS SUPPORTED BY Vice Chair, GOJO Industries
EVENT INFORMATION Visit CrainsCleveland.com/MidMarket for tickets *** Please note that this event is exclusive to C-level executives, Thursday, November 3, 2016 | 7:30 - 11:30 a.m. | Hilton Cleveland Downtown managers, and their direct reports *** CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 15 Focus MIDDLE MARKET The best plan of a ack
By RACHEL ABBEY MCCAFFERTY community development adviser. But lot of commitment, Nelson said. nomic development o ces, schools The familiar it also kept hearing about promising “It takes time. A lot of time,” she and nonpro ts to help individuals [email protected] sector-based initiatives in its coverage said. “But they all think it’s worth it.” looking for jobs. e programs of- @ramccafterty region, some of which it examined in And in Cuyahoga County, govern- fered by the partnerships in the study approach of a study released this summer. ment, business and community part- range from training to high school e idea of a skills gap — where A common thread among these suc- ners are coming together to develop outreach, and the employers in- there aren’t enough potential em- cessful programs is the ability to build a systemic approach that could lead volved were able to directly in uence sector-based ployees trained in an industry to ll relationships among employers and to more of these sector-based work- what skills were being taught. the available jobs — is nothing new. community partners. ey also take a force development programs. e study takes a look at the Re- But some sector-based partnerships e Federal Reserve Bank of gional Information Technology initiatives could in the Cleveland area and beyond are Cleveland de ned sector-based part- SEE SKILLS, PAGE 17 working to change that reality. nerships as those bringing employers be key to closing e Federal Reserve Bank of Cleve- from an industry together with eco- land often hears about a “skills mis- match” between available jobs and the skills gap available workers, said Lisa Nelson,
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Buckingham, Doolittle & Burroughs LLC A Northeast Ohio Business Law Firm, Akron • Canton • Cleveland bdblaw.com PAGE 16 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS MIDDLE MARKET Ritzman alters the pharmacy experience By JUDY STRINGER “We are trying to take that kind of vintage care — where the pharmacy [email protected] was the place to go to get preventa- tive health care and wellness care As painful as it may be, try to re- and at the same time a place for the member life before Starbucks. community to go and learn about Millennials are too young to recall, health care — and modernize that for but a cup of co ee did not used to be the 21st century,” he said. an experience. It was a commodity. Ritzman’s Barberton pharmacy is Consumers bought canned super- the rst to undergo a facelift, al- market grounds and brewed it at though earlier this year the company home or plunked down 75 cents for a unveiled its Pharmacy of the Future hot cup at a gas station. e only op- prototype at the Northeast Ohio tions were cream and sugar. Medical University campus in Root- George Glatcz believes prescrip- stown. e NEOMED site is a joint tion drugs are in about the same venture between Ritzman — 49% — place today. ere is no di erence and the university and acts as a train- between a prescription lled at a gi- ing center for pharmacy students. ant pharmaceutical company like Dr. Richard Kasmer, vice dean and CVS or a smaller community phar- professor of pharmacy practice at macy like his own Ritzman Pharma- NEOMED, said administrators con- cy, and supply chain pressures — pri- sidered a number of regional provid- marily via the A ordable Care Act ers but chose Ritzman because of — have put a squeeze on pro t mar- how “magically” the company’s goals gins for all dispensaries. Perhaps aligned with the direction NEOMED more importantly, the experience is educators wanted to go. Busying much the same. Most people walk in, Ritzman, which recently opened a pharmacy at NEOMED, is redesigning its pharmacies, tearing down conven- pharmacists with lling and manag- get their prescriptions and leave. tional aisles of shelving and opting for a cleaner, open design. (Casey Rearick) ing prescriptions, he said, “is proba- e Wadsworth-based company bly not the best use of their skills.” can’t do anything about consolida- will consumers see racks of medica- Old is new again Today, about 6,000 people use the “ ey should be out interacting tion among pharmacy chains or thin- tion bins or vials. Pharmacists will be pre-packaged service, a number he with customers, o ering advice and ning margins. It can, however, im- out on the oor or in designated Beyond the renovations, Ritzman’s expects to grow to 8,000 to 9,000 by counsel,” Kasmer said. prove the experience. counseling rooms consulting with strategy involves re-branding itself as the end of the year. Boosting the role of pharmacists “We want to be the Starbucks of the patients one on one, and the actual a resource for people who want to “It’s better for us, because it’s not couldn’t have come at a better time, pharmacy world,” said Glatcz, chief dispensing will take place behind live healthier lives with seminars and commoditized,” he said. “ is is a dif- Glatcz added, given the current wave operating o cer of the family-owned closed doors. classes about health topics, a refresh ferent way of delivering pharmaceuti- of health-related consumerism, Ritzman Pharmacy. “We want (cus- And, like Starbucks, this transfor- of its private label vitamins and sup- cals. I would love if one day we tell which is driven primarily by millen- tomers) to come in and have an expe- mation comes with its own lingo. plements, and new product lines. patients this is the only way we do it.” nials and moms. Millennials are rience they have never had before.” Shelves are not stocked; products are Newer o erings include the In:Q Patients who submit to a blood test much more engaged in maintaining To that end, Ritzman is embarking “curated.” Cashiers are “concierges,” Pak, a 30-day supply of medications also can sit down with a Ritzman their health to avoid future disease on a redesign of its pharmacies, tear- and the 65-year-old company now packaged in pre lled daily doses. pharmacist and learn how to opti- than previous generations. Moms, ing down conventional aisles of refers to its 22 stores as “practices.” is is more than just a convenience, mize certain biomarkers known to well they are just plain tired. shelving and opting for a cleaner, “A store is a place where stu is according to Glatcz. Clinical studies play a role in energy, metabolism, “ e people who have the least en- open design with more space for cus- bought and sold, and a practice is indicate people whose meds are strength and endurance. And, each ergy are moms,” he said. tomers to mingle and interact. Phar- where care is being dispensed, well- synced and pre-packaged adhere store — sorry, practice — will include Ritzman’s newest venture, Re- macists will no longer be trapped ness is being exercised,” Glatcz ex- better to therapies and “have better a “tech bar” where customers get ad- freshinq, is a nod to both. e line of behind a counter counting pills nor plained. health outcomes,” he said. vice and guidance on health care supplement patches and pre- lled technologies and digital apps. vitamin packets are fabricated for Marketing director Christina Cyrus designated wellness goals, such as likens the tech bar to the soda foun- boosting energy levels or assisting in tains of pharmacies past — a com- workout recovery. e products are parison that jives nicely with Ritz- available at it pharmacies, although man’s goal to reestablish pharmacists the company hopes a national cam- as a trusted medical adviser in the paign launched this month will bring community. Before the pharmaceu- in a urry of online orders. tical industry had a drug for nearly “We are doing a lot (with Refresh- every problem, “people would come inq) at the local level, but I’m excited in and talk to the pharmacist about to see what the paid media at the na- their ailments,” Glatcz said. tional level will do for us,” Cyrus said.
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aren’t happy with the results, they for strategic initiatives and research. specific to each industry’s needs, connector to entry-level jobs, Mar- have to be the ones to change, she e partnership has been hearing Marbury said. For example, both bury said. SKILLS said. that workforce development is one of truck driving and CNC machining Bedford Heights equipment maker CONTINUED FROM PAGE 15 “Because we are driving behavior,” the top issues for its members for the have a PR problem, where people FEMC is one of the companies that Jordan said. past couple years. have an outdated understanding of took part in the Greater Cleveland Engagement Board in Northeast e employer- or demand-driven During the summer, the partner- what those jobs are like today. Partnership’s focus groups. Ohio, the Skills for Life Marine Me- approach to workforce development ship held focus groups with employ- Marbury said many truck drivers e company has about 20 em- chanics Training Program in North- is important, though not necessarily ers in the relevant areas on what today have day shifts, instead of ployees, ages 20 to 75, with the ma- west Ohio, the West Central Ohio new, Jordan said. e occupations skills were needed, what successes overnight ones, and CNC machin- jority under the age of 30, said manu- Manufacturing Consortium, the the group is currently focusing on they’ve seen in the past and the bar- ing takes place in highly automat- facturing supervisor Chris Winters. Tri-County Health Care Industry are: CNC machinist, software devel- riers to getting jobs lled, Marbury ed factories that are much cleaner e company had already been Partnership in Western Pennsylvania oper, patient care technician, cus- said. than factories of the past. So in- working with government groups like and the Hiring Our Miners Everyday tomer service representative and Now, the Greater Cleveland dustries like those may need a OhioMeansJobs and local colleges program in Eastern Kentucky. truck driver. Partnership is aggregating the marketing intervention, Marbury and universities to recruit future em- All of these partnerships require company feedback it received in said. ployees. slightly di erent approaches, so they’re The employer voice the summer and building out the But in health care, one of the is- He said the biggest problem for not going to look identical, said region- framework for each of the in-de- sues is that, unlike IT and manufac- manufacturers is branding, especial- al community development adviser Bringing the “employer voice” to mand jobs the initiative is target- turing, a successful intermediary ly getting parents to understand that Kyle Fee. What is important is the re- the county’s initiative is where the ing. Marbury said the group is still hasn’t been created to bring em- the industry has valuable jobs to of- lationship-building and engagement Greater Cleveland Partnership determining what the specific in- ployers together, so an intervention fer. from companies each requires. It’s comes in, said Shana Marbury, GCP’s terventions will be. in that eld could include develop- “Because we need the next genera- not about just going to a meeting and general counsel and vice president But those interventions will be ing an industry group to serve as a tion,” Winters said. being the employer in the room, he said. e Regional Information Tech- nology Engagement Board, or RITE, has been around since 2009, when it was known as the Ohio Skills Bank, said director Courtney DeOreo. It began as a sector-based strategy, but it soon became clear that IT a ects all industries and needed a sys- tem-level approach. RITE is hosted and administered by Lorain County Community College and includes a variety of industry and education partners. A few factors led to the need for the board. ere were an insu cient number of students in the tech pipe- line, DeOreo said, and those that were in it lacked the soft skills em- ployers wanted. And there were is- sues connecting employees to com- panies. It became clear that RITE needed to develop a way to better track, train and place tech talent, which became the group’s “Attract, Pre- pare, Place” framework, she said. e group doesn’t have enough re- sources to do this on its own, so it relies heavily on partnerships. e “Money in the” focus in recent years has been on the talent pipeline, especially at the high school level.
The county plays a role
e partnerships included in the Federal Reserve report came about because something was hurting busi- ness, Fee said. According to the study, examples of these turning points were a nursing shortage for the Pennsylvania initiative, and a shortage in IT workers for the RITE board. And while these programs have been around for a while, Fee said more are likely to develop now as the federal Workforce Innovation and Opportunity Act, passed in 2014, encourages investment in sector partnerships. Locally, Cuyahoga County is work- Incomplete is not good enough. ing to develop a systemic approach that could lead to new sector-based workforce development groups. * When Cuyahoga County Executive 93% client satisfaction makes us an industry leader. Armond Budish came into o ce, he set a goal of meeting with 100 busi- Striving for 100% makes us BNY Mellon. ness leaders in 100 days. During that time, everyone was asked what the biggest obstacle to growth was, said Chief of Sta Sharon Sobol Jordan. Almost all of them had the same an- swer: workforce. What kept coming up is that there’s a robust but “fragmented” system of support, Jordan said. In order to @BNYMellonWealth Contact Ron Ambrogio President – Ohio change that, the county knew it (216) 593-2001 | www.bnymellonwealth.com would have to get the public, private and philanthropic funders, like the *Based on BNY Mellon Wealth Management’s 2015 Client Survey and Spectrem Group UHNW Investor Study 2015. BNY Mellon Wealth Management conducts business through various operating subsidiaries of Greater Cleveland Partnership, to- The Bank of New York Mellon Corporation. ©2016 The Bank of New York Mellon Corporation. All rights reserved. gether to work on a plan, which it did at the end of last year. If the funders PAGE 18 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS MIDDLE MARKET Q&A: Sharlene Ramos-Chesnes CEO, InterChez As the youngest of six to a single mother, Sharlene Ramos-Chesnes “My message is to No matter who comes through that learned early on about the importance of resiliency and independence door, your culture must be inclusive, while growing up in a dominantly Puerto Rican neighborhood on look across the but that person must be too. It’s dangerous to bring someone into Cleveland’s near West Side. In fact, it’s that sort of work ethic — board at how you your circle and not know whether something championed by her mother — to which she attributes her they’ll be inclusive to what you have. success in the business realm. recruit a student When one person gives permission to Today, Ramos is the CEO of Stow-based logistics firm InterChez, a and how you make a be negative or not politically correct, company that works both in the United States and abroad. Over the that turns a switch on for all that student feel had the inclination that it’s OK. It’s last year, she also has served as the President’s Ambassador at Kent like a cancer. State University, a program in which the university brings in comfortable, distinguished local minority professionals to stress the importance of Why is inclusivity so important diversity, understanding and respect. welcome and safe from a business perspective? Crain’s recently chatted with Ramos-Chesnes about her life, career I jut feel that this diversity/inclusion and then once they piece is huge on many levels. For the and the importance of diversity in the workplace. — Timothy Magaw workplace to be successful, you have feel that, then they to be willing to be inclusive. We date What was it like growing up? was definitely a di erent experience can interact and be people now. When a job candidate I went to Lincoln-West High School. I being away from a community makes it to the final four, we bring find that’s important because today where I felt protected and open and accepting them in for a day and have them it’s described as the international embraced. When I first moved in the spend a day with the team they’d be school, but back then it really was freshman dorm, my roommate of everybody else.” working with. At end of the day, they the international school. We frightened me. They moved me into might say, ‘This is not the right celebrated all cultures at Lincoln- another dorm with another Hispanic is there. Enrollment in diversity has that’s it. At the end of the day, the environment for me.’ I operate very West because of where it’s situated. student on campus who was a grown immensely. When I am on best thing we can do is celebrate lean. When you come here, you don’t You have the Slavic area, the junior. She was very welcoming and campus, I can’t believe it’s the same each other’s di erences and cultures just do one thing. As an employer, it’s Puerto-Rican area, the African- understanding. I was comfortable in campus. You have hundreds of because we learn from them. my job to help develop my people and American communities. It was just a my living space, but outside, not so Hispanic and Latino students. Growing up, I watched my mom when make sure they’re a good fit. hidden gem back then. I was very much. My college years were spent she shared her friends’ di erent fortunate early in life to be working, going to school and being What message do you promote in foods and cultures and saw how What would be the best advice embraced in my culture, but focused. I did not feel like all the your role with Kent State? wonderful it was. We need to do you’d o er a young professional? knowing what it was like to interact, things you could do at a university When I’m up at Kent right now, my more of that sort of thing at Stay grounded. First foremost, know get along and not feel tension were for me. message is to look across the board universities. who you are and what you stand for growing up with all these other at how you recruit a student and and what your beliefs are. This will cultures around me. That is my basis Do you think the campus how you make a student feel What about diversity in the always carry you through any for describing what inclusivity is. We environment has changed? comfortable, welcome and safe and workplace? situation. I’ve gone through some were all in the same space, and Kent State today is not the Kent then once they feel that, then they In the workplace, there needs to be a obstacles in my career and life. They nobody was less than or better than State of 1977. Talk about inclusion, can interact and be open and zero tolerance policy for any are obstacles but some of them I anybody else. and that starts with President accepting of everybody else. The negative — no matter how small wouldn’t change. Being a first- Beverly Warren. For all the things first thing you do when you don’t feel — verbal or racial things that are said generation Hispanic, that was an You started at Kent State in the she’s dealing with today, she’s done safe is you put up your guard. You or displayed against any one of any obstacle. People always question late 1970s. What was your college an incredible job in a short amount of have to break the barriers first to group. It may be a joke to you, but it you — ‘Who are you?’ ‘What are you?’ experience like? time. I’m pleased, honored and expect that student to be might not be so funny to the next ‘What race are you?’ I remember Back then, there were probably two everything else to have the welcoming. It will just take one person. The other thing is that you telling a gentleman once, ‘The Hispanics on the entire campus. It opportunity to be up there while she negative situation to happen, and make inclusion part of your culture. human race.’
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Adviser: Linda L. Bluso Family businesses have common recipes for success Do you have a desire to pass your and towels, and textiles. ey have Ideal Industries is a 100-year-old depth board books for board mem- privately held company to the next Linda L. Bluso is the ability to adapt to changing in- company founded in Chicago most bers to gain a comprehensive un- generation and hope that your family the founder dustries, markets and technologies, known for its colored screw-on wire derstanding of the company, the business continues to be passed to and CEO of the and this ability is usually punctuated connectors invented by the founder industry and competitive land- succeeding generations? Regardless Adaptive by the change of generational leader- in 1924. Ideal demonstrated not only scape. They have established term of the industry, companies celebrat- Knowledge ship. its adaptability to market shifts, but limits of board members, a healthy ing 100 or more years in business Institute, which 3. Resiliency is demonstrated by the its exibility of the family governance practice for private and public have much in common about how o ers solutions ability to overcome extreme di cul- models, resulting in family goodwill, companies. they got there. for the middle ties. Remember, these companies cohesiveness, engagement and 8. e company has professionalized Here are eight key factors impact- market’s leadership develop- survived the Great Depression and building of trust among family mem- management practices. ey have ing that longevity: ment challenges, particularly the Great Recession. bers who saw the need to change to established policies on hiring family 1. A mission, vision, values or guid- those facing family-owned and 4. ere’s an emphasis on technolo- address the needs of the family. members and have moved from an ing principles have provided the -operated companies. gy, used as a tool for business, not 6. ere is a forward-thinking mind- entitlement-to-a-job to eligibili- framework for family businesses to necessarily being controlled by it. set about the long-term needs of the ty-to-earn-the-job. In some cases, successfully guide their businesses 5. ere is a transition from manag- company and the family, not just the the decision was made to hire and their families. at framework is gun producing one product and to- ing the business to owning the busi- short-term view of making numbers non-family employees to lead the communicated and shared with em- day have moved to another industry ness. is means as multiple genera- for the quarter. company during certain periods of ployees and all family members. It or expanded markets. tions became owners, and not 7. There’s a professionalized board growth, economic downturns or for provides for consistency, is used in For example, Midmark Corp., a necessarily managers of the busi- of directors. They understand the other strategic reasons. Whatever the decisionmaking and is embedded in 100-year-old Dayton-based compa- ness, they establish family councils, role of the board chair: agenda-set- reason, the company was receptive all the company does when conduct- ny began as a manufacturer of con- family assemblies and family foun- ting, constant contact with man- to hiring the non-family leader with ing business. crete mixers, mining cars and loco- dations. is provides a governance agement, managing shareholder the skill set needed by the company 2. Family tradition is honored and motives. Today it is a manufacturer of structure to allow for owners’ collec- relationships and managing the at that moment in time. Developing celebrated but is not an obstruction medical, dental and veterinary tive voices to be heard by manage- board meetings. They have outside people’s skills aligned to the business to innovation. Family tradition can equipment. Wisdom Adhesives ment and family members running independent directors along with needs was critical. ground the family and build loyalty, Worldwide, a 140-year-old, Elgin, Ill., the company; educates family mem- family members as directors who Regardless of whether you have a dedication and pride of employees. company began as a seller of bers about the legacy company; en- bring an outside perspective, sub- next generation to pass the company Innovation is crucial to the family book-binding adhesives and today gages owners; and sets up how the ject matter expertise and facilita- to, incorporating these best practices business. It’s not uncommon for has expanded its markets to packag- family wealth will be put to use for tive role when needed to overcome have been shown to add value to the 100-year-old companies to have be- ing, converting, graphical arts, tissue philanthropic purposes. family conflicts. They provide in- enterprise.
Adviser: Carl Grassi Accelerate succession planning before changes WHENEVER YOU NEED US to valuation discounting WE ARE HERE FOR YOU. Two months ago, the U.S. Treasury Department released proposed regu- Carl Grassi is lations aimed at curtailing the prac- chairman of tice of valuation discounting — a McDonald common wealth transfer planning Hopkins LLC. technique where the value of an in- terest in a family-owned business is We are here for you discounted upon the transfer of that and for your business. interest, reducing the estate or gift tax due on the transfer. Discounting also likely that a buyer of a minority stake can apply where family members in the closely-held company would The NYCB Family of Banks transfer assets into a business entity require a discount from this value. (such as a limited partnership or an erefore, the actual value of the 49% has a proud tradition of LLC) and impose restrictions on that interest would be less than $4.9 mil- entity that reduce the gift or estate tax lion. e value could be further re- strength, stability and owed on those assets. duced if additional restrictions are service since 1859. If they become e ective as expect- imposed on the LLC owners, such as ed, the new regulations will severely the lack of voting or limited liquida- limit this practice in several signi- tion rights. Since the individual fami- Visit one of our 28 cant ways. ly member cannot control the entity e Treasury Department has pri- or “cash out” his or her interests uni- Ohio branches today. oritized curtailing estate valuation laterally, taxpayers have reduced the discounts for many years because value of the individual’s share for es- valuation discounts can yield signi- tate and gift tax purposes. cant tax savings. For example, sup- e Treasury Department has pose an individual owns a family questioned the use of family-con- Enjoy the convenience of business banking on the go with NYCB Mobile. business worth $10 million. When trolled entities to reduce the value of applying the current estate tax rate of the individual interests by restricting Download the App today! 40% against the amount in excess of the voting or liquidation rights since the lifetime exemption of $5.45 mil- these restrictions are illusory if fami- lion, the individual would owe about ly members can act together to con- $1.82 million of estate tax. If the value trol or dissolve the entity. myNYCB.com • (877) 786-6560 of the business could be discounted e new regulations therefore pro- by 30% to $7 million, instead of $10 vide in part that discounts will not be million, then the individual would allowed for most of these types of re- instead owe only $620,000 in estate strictions. Under current law, restric- taxes — a tax savings of $1.2 million. tions on an owner’s ability to liqui- Valuation discounting operates by date an entity are taken in to account having a business or other assets in valuing an interest if the restriction Standard messaging and data rates may apply. owned by an entity (such as an LLC) is consistent with the default provi- Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. that imposes restrictions on the abil- sions (default meaning that they can App Store is a service mark of Apple Inc. ity of the owners to convert the assets be waived or modied by contract) of Android, Google Play and the Google Play logo are trademarks of Google, Inc. into cash. A 49% interest in an LLC any federal or state law. ©2016 New York Community Bank – Member FDIC owning assets or a business worth Over the past decade, a number of $10 million would on its face be state legislatures have enacted worth $4.9 million. In reality, it is SEE TAX TIPS, PAGE 20 PAGE 20 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS In search of ‘Who to Watch TAX LIENS The Internal Revenue Service filed Type: Corporate income, employer’s Type: Corporate income in Education’ candidates tax liens against the following withholding Amount: $11,013 Crain’s “Who to Watch in Education” section, to be published on Dec. 5, businesses in the Cuyahoga County Amount: $31,650 highlights up-and-comers and innovators in Northeast Ohio’s education sector Recorder’s O ce. The lien is a public LIENS RELEASED Jorge Castillo Design Inc. — whether in the classroom, in an administrative role or behind the scenes. notice to creditors that the 13302 Cormere Ave., Apt. 304, Hair by Maxelle’s Inc. If you know an education leader, email sections editor Timothy Magaw at government has a claim against a Cleveland 7701 W. Ridgewood Drive, Parma [email protected]. Please put “Who to Watch in Education” in the subject line. company’s property. Liens reported Date filed: July 3, 2007 Send suggestions by noon on Friday, Oct. 21. Please include the person’s name, Date filed: Sept. 13, 2016 here are $5,000 and higher. Date released: Sept. 6, 2016 position and a few paragraphs explaining why he or she stands out. Type: Employer’s withholding LIENS FILED Amount: $25,971 Type: Employer’s withholding, unemployment P.A.T. Services 2000 LLC Carlitta’s Day Spa & Boutique Inc. Amount: $157,899 24050 Commerce Park, Suite 100, P.O. Box 31417, Independence Beachwood Date filed: Sept. 6, 2016 Apple Child Care Inc. Date filed: Sept. 13, 2016 Type: Employer’s withholding, 6827 Bunker Road, North Royalton Type: Employer’s withholding, corporate income, unemployment Date filed: April 14, 2011 corporate income Amount: $16,602 Date released: Sept. 6, 2016 Amount: $550,258 Type: Employer’s withholding Starr Catering & Food Service Inc. Amount: $154,901 TMG Services Inc. 832 London Road, Cleveland Courtad Inc. 8100 Grand Ave., Suite 100, Cleveland Date filed: Sept. 13, 2016 3400 E. Aurora Road, Twinsburg Date filed: Sept. 6, 2016 Type: Employer’s withholding, Type: Employer’s withholding corporate income Date filed: Dec. 15, 2010 Amount: $253,962 Amount: $16,475 Date released: Sept. 6, 2016 Type: Employer’s withholding, N.G.N. Electric Corp. Stroud-Lawrence Funeral Home unemployment 10310 Brecksville Road, Brecksville 95 S. Franklin St., Chagrin Falls Amount: $150,256 Date filed: Sept. 13, 2016 Date filed: Sept. 13, 2016 Advanced Homecare Type: Employer’s withholding Type: Employer’s withholding Professionals Inc. Amount: $32,592 Amount: $12,949 540 E. 105th St., Suite 300, Cleveland Wade Park Child Care MLC Inc. Date filed: April 4, 2014 & Enrichment Center 19049 Fowles Road, Middleberg Date released: Sept. 6, 2016 9200 Wade Park Ave., Cleveland Heights Type: Employer’s withholding Date filed: Sept. 6, 2016 Date filed: Sept. 6, 2016 Amount: $19,530
For example, the proposed regula- and will only apply to transfers made tions would not allow a discount on the after their nal release. TAX TIPS value of an interest to the extent the dis- e new proposed regulations will CONTINUED FROM PAGE 19 count was attributable to restrictions change the landscape for business on an individual’s right to liquidate or and estate planning for the long- favorable default restrictions that allow redeem the individual’s interest. term for family-owned businesses if for higher valuation discounts in order e proposed regulations must they are nalized. While the new reg- to attract new entities to their states. undergo a 90-day comment period ulations will clarify the tax planning e proposed regulations will narrow before they can be nalized. ere process by instituting new bright line this exception signi cantly by only al- also will be a hearing on Dec. 1 and rules, they will also create uncertain- GIVING n · Y o O i U lowing the statutory exception to apply the nal regulations may be issued as ty for family-owned businesses. In t R a
W d where the restriction is “mandatory” early as the end of the year, but many order to utilize discount planning
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m mandatory, this change would e ec- light of problems with the proposed the end of the year, from a tax plan- tively eliminate many of the valuation regulations. Importantly, the new ning professional before the new reg- Akron Community Foundation discounts currently in place. regulations will not be retroactive ulations take e ect. invites you into a whole new world of giving: one that’s inspired, connected and deliberate. A Donor-Advised ’ Fund at Akron Community You re working hard at growing Foundation helps you support your business..... We can help you. the causes you believe in – now or in the future, here or across the country – while providing the maximum tax bene t at precisely Small Business Loans Rates as low as the moment you need it. You also get local insight, responsive sta and more than 60 years % of expertise. 3.75 3Fixed Rate 35-Year Term We help everyday people become 3No Origination Fees philanthropists. Discover how a Donor-Advised Fund can help you at www.akroncf.org/fund.
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*The 3.75% interest rate applies to small business loans $250,000 and under, 80% LTV for loan terms up to 60 months for qualified credit applicants. A higher rate may apply based on lower credit score or a higher LTV. All credit products are subject to underwriting guidelines and credit approval. Advertised rate is as of 6/08/2016 and is subject to change without notices. CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 21 Flash Seat’s pro VERITIX sports partners CONTINUED FROM PAGE 1 NBA (7): Opening Doors Around the World Cleveland Cavaliers aspects, the data and market orienta- Denver Nuggets Thompson Hine LLP is pleased to announce Pingshan Li tion aspects” covered, Perez said. has joined the rm as a partner in the Corporate Transactions & “But Cleveland is critical and essen- Houston Rockets Securities practice group. tial to the ticket platform,” he added. Los Angeles Clippers Veritix — which was owned by Los Angeles Lakers Ping has substantial corporate and legal experience, with a particular Cavaliers majority owner Dan Gil- Minnesota Timberwolves emphasis on representing U.S. companies doing business in China as bert, who maintains a minority own- Utah Jazz ership in the combined entity, a Cavs well as Chinese companies in direct investment and expansion- source told Crain’s — had relation- Major League Soccer (3): related matters in North America. He focuses his practice on: ships with ve NBA teams, ve Major Colorado Rapids t Cross-border mergers, acquisitions, joint ventures, technology League Soccer clubs, two NHL teams, FC Dallas transactions and intellectual property rights protections the NFL’s Detroit Lions, the WNBA’s Real Salt Lake Minnesota Lynx and several major t *OUFSOBUJPOBM USBEF BOE NBSJUJNF MBX NBUUFST colleges at the time of the merger. NHL (2): t $PSQPSBUF GJOBODF HPWFSOBODF DPNQMJBODF BOE Flash Seats now is being used at the Colorado Avalanche restructuring matters Staples Center, the largest venue in L.A. Kings the United States in terms of revenue. Ping brings together signi cant legal acumen and extensive at, in turn, has added the L.A. NFL (1): business experience to help clients take advantage of Lakers and L.A. Clippers to Flash Detroit Lions Seats’ growing client list. opportunities, overcome challenges and manage risk in AXS Outbox had been the compa- WNBA (1): the United States and abroad. ny’s ticketing platform for its many Minnesota Lynx concerts and events. Flash Seats, Flash Seat’s notable collegiate meanwhile, is AXS’ sports and arena partners: Cleveland State Pingshan Li platform. University, Drake University, 216.566.5630 But the combined company is in Duquesne University, Texas A&M [email protected] the process of consolidating its tech- University, University of Utah nologies and “hopefully moving to one platform,” Perez said. Flash Seats is also used for: The In what sounds like really good College World Series in baseball and news for the Northeast Ohio opera- softball, and the NCAA men’s and tion, the AXS CEO added, “I think women’s Final Four. A Smarter Way to Work – predictable, ef cient and aligned with client goals. you’ll see a lot of the Veritix platform Source: Crain’s reporting beyond just sports and arenas.” Atlanta | Cincinnati | Cleveland | Columbus | Dayton | New York | Washington, D.C. deal with AXS was nalized. But it Change was expected has three job openings, Perez said. ThompsonHine.com “We’re pretty steady in that o ce,” Since Gerace left the company in Perez said. “We’re actually looking to October 2015, around the time the deal grow it, largely around the engineer- was nalized, eight other key leaders ing function itself. Historically, we have left Veritix. e list includes for- had administrative and executive mer senior vice president of marketing functions there. As some of the ad- FFacebook.com/CrainsClevelandacebook.com/CrainsCleveland Caroline Barni, senior VP of IT opera- ministrative functions get absorbed AT HOME. IN THE OFFICE. tions David Garrett, executive VP Erica by the broader company, it allows us TTwitter.com/CrainsClevelandwitter.com/CrainsCleveland Yesko, director of product manage- to open that head count for technolo- AT THE GYM. ON THE GO. Instagram.com/CInstagram.com/CrainsClevelandrainsCleveland ment Ti an Clark, product manager gy positions.” Je Mather, project manager Aaron Mike Rojas, a senior VP of product Slepecky, director of human resources and technology under Gerace at Ver- STAY CONNECTED. Kathleen Sullivan and content special- itix, has emerged as a key gure for ist Alexandra Miles. AXS in its push to implement Flash Plus, two key technology employ- Seats in more venues worldwide. Ro- ees recently left to join Gerace, a serial jas became AXS’ chief product o cer entrepreneur who founded Be Free in September 2015 and is one of Pe- and two other companies, on his next rez’s direct reports. venture, a source told Crain’s. (Gerace Perez said he has spent a lot of declined comment for this story.) time in Cleveland since the merger Crain’s spoke with several former was nalized. is past spring, after employees who described the many of the key Veritix leaders had changeover as “not uncommon” for a left, he gave a copy of AXS’ strategic merger of this size. Two former exec- plan to every employee. utives expressed optimism for the “ is is where we’re going and what future of Veritix, because of Flash potential our company has,” he said of Seats’ importance to AXS. his message. “ at’s certainly given ere were questions about the di- everyone a sense of not only is this of- rection of the Cleveland o ce, they ce important in the grand scheme of said, and integration issues once the things, but the technologies we’re companies’ technologies were working on are part of the centerpiece merged, which were to be expected. operations going forward.” e simple answer to all of the ex- e Cleveland o ce is so critical, its, Perez said, is AXS — the larger of Perez stressed, that he’s “close” to - the two companies — had “deep, es- nalizing a deal to move the local op- tablished” management teams in eration to a di erent, yet-to-be- place prior to the merger. What it re- named downtown o ce building. ally needed was Veritix’s innovative Flash Seats — an easy, albeit costly, technology, and a lot of the people way for Cavs fans to purchase and behind it. transfer seats for a decade — is a “hid- “All it does is give us desk space (in den jewel” of a merger that created WHAT IS THE WHEELMOBILE? Cleveland) to add to the engineering the second-largest ticketing company head count,” Perez said of the depar- in North America, Perez said. The Wheelmobile is a 36-foot Winnebago that tours nationwide in search tures. “ at’s really our focus right AXS will process more than $2.5 of contestants for television’s #1 game show. The Wheelmobile team is now — to nd quality people in Cleve- billion in transactions this year, the coming your way to find contestants in the Cleveland area. land to work on all of our technology.” company said. at matches the pre- vious two-year total for Veritix prior FRIDAY, OCTOBER 21 6PM – 10PM Flash is where it’s at to the merger. SATURDAY, OCTOBER 22 NOON – 4PM “It enables us to do so much in a AXS consolidated its call-center rapidly changing environment,” Pe- operations, which resulted in the rez said of Flash Seats. “ e ticketing *MUST BE 21+. LIMITED SEATING. Dallas o ce of Veritix doubling in business is evolving more rapidly PAT AND VANNA WILL NOT BE IN ATTENDANCE. A CONTESTANT AUDITION DOES NOT size. e Cleveland o ce, which now than it has in the past 30 years. It GUARANTEE A SPOT ON THE SHOW. THE APPLICANT UNDERSTANDS THAT WHEEL OF FORTUNE Gerace told Crain’s in 2015 had out- was always our premise going in that IS UNDER NO OBLIGATION TO USE HIM/HER AS A CONTESTANT. SELECTION OF CONTESTANTS grown its fth-oor space at the Flash was a singular piece of technol- IS AT THE PRODUCERS’ SOLE DISCRETION. ©2016 CALIFON PRODUCTIONS, INC. WHEEL OF Chase Financial Tower at Tower City ogy with a lot of potential. e reality FORTUNE IS A REGISTERED TRADEMARK OF CALIFON PRODUCTIONS, INC. ALL RIGHTS RESERVED. Center, has two fewer full-time em- is it has greater potential than we ployees today than it did when the might have thought.” PAGE 22 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS
bers, told Crain’s Cleveland Business likely the dealership would leave the earlier this month that he expects the city over a disagreement with city ZONING issue to go down to defeat. council about the terms of a rezoning CONTINUED FROM PAGE 1 Solon councilman Doug Magill, request. e dealership reportedly is who does not represent residents in headed for nearby Bainbridge Town- Sheldon Berns, a member of Ber- the ward where the Fountains of So- ship in Geauga County. ns, Ockner & Greenberger LLC, a lon zone change is being considered, Beachwood law rm that specializes sees the city as trying to bring some Eye on the future in real estate law, said he’s aware of character to a community that lost many developers who will avoid any small-town appeal it had to rapid In Fairview Park, voters are being working in communities that have development after the Route 422 asked to rezone two o ce buildings adopted ballot box zoning. freeway came through several de- on Brookpark Road, sold o by NASA Even if a zoning change is ap- cades ago. several years ago, for a boutique ho- proved by voters, a zoning election The Fountains of Solon project needs voter approval, which has meant a “We’ve gotten tighter on zoning is- tel. Mayor Eileen Patton is con dent can add a year or more to the pro- “substantial” cost for its developers. (Dimit Architects) sues because what we’re trying to do the issue will pass and she said she cess, raising the cost of development, is add around the edges, so that we’re hasn’t lost one she’s supported since Berns said. If the issue is controver- “(Ward veto) is not a national “We’re knocking on consistent on our architecture and she became mayor in 2000. sial, the developer also may incur a trend. It is not even an Ohio trend,” our look,” he said. “So over time, and “When we present projects to the signi cant expense mounting a me- said Majeed Makhlouf, Berns’ law every door in the ward it may be a long time, we add some voters for rezoning, we give them a dia campaign to help pass the issue. rm partner. “Ward veto zoning where the project is and charm to the city.” great story about how it can change Some economists believe ballot (used by some Northeast Ohio cities) Dan Siegel, a co-developer of the the landscape of our community,” box zoning puts the parochial con- is a very unique procedure.” doing an intense mail Fountains of Solon, told Crain’s his she said. “We don’t bring something cerns of current residents ahead of a Berns, a former Beachwood coun- campaign in the ward group has hired a consulting rm to to our residents if we don’t think it’s community’s long-term interests. cilman with a 50-year career in real mount a campaign that includes go- good for our future. It’s a product of the NIMBY — “Not estate law, agrees. and citywide.” ing door-to-door to help pass the is- In Moreland Hills, the village has In My Back Yard” — citizen move- “I’ve done a lot of reading on zon- sue. worked with a developer, Omni Con- ment that often pops up to oppose ing,” he said. “I’ve never seen a men- — Jori Kate Mintz, manager in the Asked the cost of the campaign, he struction Co. of Beachwood, to de- development projects or other tion of ward veto zoning” anywhere strategic advisory practice of LNE said, “It’s substantial. I try not to re- sign a zoning plan acceptable in a changes in a community. else in the country. Group member.” community that has favored 2-acre Getting voter approval is even Sielgel’s group hired the LNE lots. e plan would allow sin- more di cult in several communi- Battle in Solon Developers of a project called the Group of Cleveland, a government gle-family homes and townhouses ties in Northeast Ohio. ey have Fountains of Solon, are awaiting the relations consulting rm to handle on smaller lots. gone a step beyond basic ballot box Two issues in Solon face ward veto. results of Issue 98, which would re- the campaign. Jori Kate Mintz, man- Omni has an option on 21 acres of zoning and have amended their One would rezone two parcels to o ce zone 21.6 acres on Solon Road east of ager in the strategic advisory practice single-family parcels near the Or- charters to require not only a majori- use where businesses already operate Route 91, in the eastern suburb’s Ward of LNE Group, said the campaign be- ange schools campus along Chagrin ty of a community’s voters, but that a but are, however, zoned industrial. 4, from commercial to multifamily gan in earnest on Sept. 1. Boulevard. majority of voters in the ward where at has not raised anyone’s shackles. residential. Mark Haas, treasurer of “We’re taking kind of a unique ap- Issue 70, like the Fairview Park is- the change will take place approve e other one, though, is being Citizens Against Rezoning Solon, a proach. I don’t think most campaigns sue, requires only citywide approval. the zoning change. heatedly contested. citizens group with about 100 mem- still do this,” she said. “We’re knocking e village has taken the lead on the on every door in the ward where the project, creating standards for open project is and doing an intense mail space and wetlands. campaign in the ward and citywide.” “We are cautiously optimistic, If the Fountains of Solon is thwart- though obviously it’s an election,” ed, it would be the second project to said Bryan Stone, executive vice go unbuilt in Solon this year. In Au- president of Omni. “It only will allow gust, the owner of Liberty Ford of So- high-quality residential develop- lon told cleveland.com that it was ment. It’s a good idea for the village.”
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Paid Circulation (by mail and outside the mail) (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies and exchange copies) 7,059 6,522 (2) Mailed In-County Paid Subscriptions stated on PS Form We believe that banking is about more than expert 3541 (Include paid distribution above nominal rate, advertiser’s proof copies and exchange copies) 11,350 10,392 nancial guidance and proven banking products. (3) Paid distribution Outside the Mails including Sales through dealers and carriers, street vendors, Counter Sales, and other It’s also about collaboration, individualized service, and fostering paid distribution outside USPS 5 1 (4) Paid distribution by other classes of mail through the USPS 0 0 C. Total Paid and/or Requested Circulation economic growth in our community. We’re committed to it. And [Sum of 15B(1), (2), (3) and (4)] 18,414 16,915 D. Free or Nominal Rate Distribution (by mail and outside the mail) more than 80 years of community banking expertise supports it. (1) Free or Nominal Rate Outside-County Copies included on PS form 3541 1,161 5,369 (2) Free or Nominal Rate In-County Copies included on PS form 3541 256 350 (3) Free or Nominal Rate Copies mailed at other classes through Let our team help yours thrive. the USPS 0 0 (4)Free or Nominal Rate Distribution outside the mail Contact Matt Lay at (216) 239-5909 or mlay@ .net. (Carriers or other means) 422 150 E. Total Free or Nominal Rate Distribution [Sum of 15D (1), (2), (3) and (4)] 1,839 5,869 F. Total Distribution [Sum of 15C and 15E] 20,253 22,784 G. Copies not distributed 557 668 H. Total (Sum of 15F and G) 20,810 23,452 I. Percent Paid and/or Requested Circulation (15C/15F x 100) 90.92% 74.24% 16. Electronic Copy Circulation. Report circulation on PS Form 3526-X worksheet 17. Publication of Statement of Ownership printed in the 10/17/16 issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner: Elizabeth McIntyre, Publisher 9-28-16 I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties). CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 23 Business of Life
By KEVIN KLEPS [email protected] @KevinKleps
Johnny Smatana is brash and un- censored. He’s also emotional and expects to be hugged after a customer receives one of his custom baseball bats. Welcome to Johnnyville Woods — located in the 5th Street Arcades, with the look of a surreal man cave that combines baseball, movies and rock and roll. “ is is what really makes me a rock star. It’s your hand-written mes- sage on the back of the bat,” the 55-year-old Smatana says, pointing to a souvenir that has a laser-en- graved note from an uncle to his nephew. “It’s an instant heirloom.” Smatana moved from his former West 25th Street storefront to the Ar- cade in 2014. On West 25th, he was a “destination.” at’s still the case, but Johnnyville now has the added bene- t of the passers-by — who can’t help but notice the replace, funky light- ing, movie posters and bat racks. “Now I get the Residence Inn. Now I get the guy from Hyatt coming through,” Smatana said. “All they have to do is come in.” Smatana, a Nordonia High School Johnny Smatana’s custom bats are a mix of father-to-daughter messages, high school heirlooms, corporate salutes and more. (Kevin Kleps) It’s good to be Johnny in Johnnyville product who was a wide receiver on Alan Langhals, a managing direc- the University of Miami team that tor and principal at Deloitte Consult- was recognized as the national ing, is one of Smatana’s corporate champs following the 1983 season, clients. Langhals is close to complet- gets as much as $400 for the high-end ing a three-year assignment in Ger- bats he produces. many. In 2015, after seeing Smatana He’s quick to point out that in 27 at the Mid-American Conference years in outside sales, “it was nothing baseball tournament (Langhals’ son for us to drop 400 bucks, 500 bucks at played for the University of Toledo at dinner.” His bats, on the other hand, the time), Langhals had Smatana de- “last forever,” and are a heck of a con- sign a bat that blended the U.S. and versation piece. German ags, and included the com- And what a story Smatana has pany logo and a personalized mes- from his time in the transportation sage for about 30 people he was business. Back then, when he was working closely with in Germany. monitoring large shipments of inter- “ e bats were a huge source of national freight, he couldn’t pass up conversation and a big hit. Many of the chance to purchase 15,000 dow- my partners in Germany have them els (wooden tubes), “because the prominently displayed in their o c- price was so ridiculous.” es,” said Langhals, who intends to en- A few years later, he made custom list Smatana’s services for his next bats his full-time job — though in his assignment, wherever that might be. mind it’s not work. Every year, Smatana’s business has Smatana recently sold his 4,500th gotten “bigger, better, stronger, fast- bat, which means that, almost a de- er,” he says. cade after his monstrous purchase, He adds that it’s just “the tip of the he’s not even one-third of the way iceberg,” though he admits he doesn’t through the wood. have his future plans as well-de- “You know what you want to do?” signed as one of his bats. he tells a reporter visiting his store. “I’m not sure because we’re having “Be me. Being Johnny in Johnnyville. so much damn fun,” Smatana said. ey say it’s the top of the food chain, but they say it’s a pain to get there. It Top left: Smatana moved his store will test your manhood. But once you from West 25th Street to the get there, the next 30 years will be Arcade in 2014. green grass and high tide.” Top right: Smatana also sells A lot of Smatana’s green comes custom woodwork. from corporate purchases. He said he Middle left: Johnnyville is a mix of completed a deal two weeks ago in sports, movies and music. which a customer paid $355 each for Middle right: A bat that 126 bats. celebrates Smatana’s birthday. “It really has nothing to do with Bottom left: There are several baseball,” Smatana said. “It’s a gradu- Batman tributes in the store. ation gift. Words to live by. Grandfa- Bottom right: Smatana’s slogan is thers to grandsons. (Expletive) huge.” prominently displayed. PAGE 24 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch
Cleveland Public Library director Felton Thomas was raised in libraries, working his first job helping to shelve books at the age of 13. Although for a while he thought he’d use his undergraduate degree in psychology to work as a sports psychologist, the library pulled him back in. When he was getting ready to leave the Las Vegas library where he grew up, they o ered to pay for his graduate degree. He leapt at the opportunity and chose the University of Hawaii at Manoa to earn his Master of Library and Information Science. After receiving his masters, a couple of years into his time as director at that very same library, he received a letter from a young man who credited Thomas for showing him what was possible through the library. “I hadn’t thought of myself as a role model for all of these young people coming in,” he said. “But at that point in time, I realized this was what I did and Felton Thomas what I could do best for the community.” LIBRARIES — Lydia Coutré
What is the role of the library in a That sounds pretty similar to “The best thing we community? what it was when you were Five Things The best thing we could do for our growing up. What has changed? could do for our young people is be present. For me, I I think we’ve changed a lot from SECRET SKILLS? came in the library trying to escape when I was young. What’s di erent is young people is be Thomas can juggle, and when my friends who were getting into when I was young, basically the he was young, he was a drugs and gangs, and just (to have) a library was a book repository. It was present.” drummer in an industrial metal place where I could go to be that was the one place I could come to study band. safe. It was the children’s librarian and I could find a book to read. Now, … And so we decided really early on who asked me, “You know, you’re there are so many other things that in the library world that we would HOBBIES? here every day, you should work we o er in the library. For us, we see jump ahead of that and make sure Playing and watching sports, here.” Now, she left six months later. ourselves as the community deficit that we were providing the top levels and hiking I can’t even remember her name. But fighter. So whatever the community of technology for our young people, just the fact that she was present doesn’t have, we find ways to either but for our adults as well. So we FAVORITE BOOK? Lunch Spot and took that one leap of faith with provide or to partner with others to went deep into examining what "The Catcher in the Rye," by me made all the di erence in my life. provide. So a child will come in after would be the great maker space. J.D. Salinger The Greenhouse Tavern My two best friends — one is in school. They will have the Foodbank 2038 East 4th Street prison for life and one was killed in a providing lunches, after-school How do you make sure that the UNDERAPPRECIATED Cleveland drive-by. And so that one question is snacks. They will have Tri-C or community understands all the AUTHOR? 216-443-0511 all the di erence that many kids Cleveland State doing tutoring. They resources that are available in the Colson Whitehead thegreenhousetavern.com need sometimes. … All we have to do will have access to a bank of library? is be present. Everyone in our computers that they can get online, That’s one of the hardest things we AS PRESIDENT OF THE The meal libraries is present in the lives of our too. And many of the libraries have have to do. One, because librarians PUBLIC LIBRARY Veggie burger with young people. access to technology that they are horrible marketers. Just at our ASSOCIATION, HE GETS TO pommes frites and fried would never have any other place, core, we are folks who believe in CHOOSE SPEAKERS FOR brussel sprouts, plus an How do Cleveland’s libraries fit in like 3D printing, laser engravers, getting things done and not THEIR EVENTS. WHO HE’D iced tea; crispy chicken the community and provide that things of that nature. necessarily thumping our chests to LIKE TO INVITE: wings confit, and an Ohio space for role models and a safe say, “Look, look what we’ve done.” Colson Whitehead beef burger escape? You were honored by the White And the second piece of that is — Ta-Nehisi Coates In many of the neighborhoods, House this year as one of 10 the very di cult piece of us — is Amy Schumer Cleveland’s libraries are that safe “Champions of Change for Making.” that many people already think they The vibe place. It’s that one place that the (The award honored individuals for know what being a library is. I think Chef Jonathon Sawyer’s kids know (they can go), whether e orts to empower more it’s harder to change the perception East 4th Street restaurant they are the brainiacs that just need Americans to become tinkerers, of something that people already o ers a rustic, semiformal a place to be away and really study … inventors and entrepreneurs.) know than it is to change the percep- feel in a relaxed whether they’re any kid who just What made that possible? tion of something that’s new or atmosphere. The menu needs a safe place to go and play That award wasn’t about me. It was something that people don’t have a o ers something for games, to get on the computer, about the work that my sta does. very good understanding of. I think everyone, from meat which they may not have access to. You know, we realized early on just every library understands that that’s lovers to vegetarians We’ve made a big commitment. ... We as I told you about that survey where our number one marketing piece — to people who are did a survey, and the number one the number one thing that the the fact that we are a place that gluten-free. thing that the community wanted community wanted us to do was be people can get books. But little by from us was to be a safe place. safe. The second thing they wanted little I think people understand that us to provide was the technology so we’re doing more than that. And they The bill $60.48 with tip that their children didn’t fall behind. come and use us for more than that. CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 25
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BUSINESS SERVICES BUSINESSES FOR SALE Crain’s Executive Recruiter C.W. JENNINGS INDUSTRIAL EXCHANGE GROWTH INDUSTRY FLYNN Non-Medical Home Care Global Industrial Consulting Vesuvius USA Corporation is seeking a Tundish Product Specialist to work ENVIRONMENTAL Established, Excellent Rep., in its office in Cleveland, OH and be responsible for developing, Construction • Acquisitions UST REMOVALS • REMEDIATION Growing. Eastside. Owner Retiring. administering, and executing the marketing strategy with the aim of Exporting • Financing DUE DILIGENCE INVESTIGATIONS Principals Only. increasing sales and profitability of various product lines in the Tundish (855) 707-1944 Send Inquiries to: Refractory Business Unit. The position requires, at a minimum, a Master’s (800) 690-9409 [email protected] degree in Chemistry, Physics, or Mechanical Engineering and three years’ Reference box #1002 in subject line experience in the job offered or a related occupation. The position also EXPERTS IN MOBILE APP requires experience in a continuous caster steel manufacturing Haul-My-Mess.com Solutions for Businesses on Apple, THINKING OF SELLING? environment with a specific focus on Tundish-related refractory products; Full Service Junk Removal For daily on-line FREE MARKET ANALYSIS experience with the refractory precast manufacturing process including Android & Windows Platforms. and Mini Dumpster Rental product quality requirements; experience with magnesite working linings updates, sign up @ No Upfront Fees Please contact: "We haul away your unwanted stuff" installation techniques, purposes, and modes of degradation; and Viztek Software See our listings at: experience with Flow Simulation aspects related to the Tundish which CALL TODAY 440-972-0157 CrainsCleveland.com/Daily www.empirebusinesses.com includes both physical (water modeling) and Computational Fluid Design. www.vizteksoft.com 216-799-9911 [email protected] Applicants must also be willing to travel up to 30% of the work schedule, 440-461-2202 both domestically and internationally. Interested applicants should e-mail their resumes to Carlos Bersoza, HR Director Advanced Refractories NAFTA, at [email protected] and reference "Tundish Product Specialist" in the subject line.
û CHIEF FINANCIAL OFFICER û List your commercial, executive property, The Cleveland-Cuyahoga County Port Authority ("the Port"), which operates the Port of Cleveland and other lines of business, is seeking industrial or retail space here! highly qualified candidates for the position of Chief Financial Officer, reporting to the President and CEO. The Port seeks a strong leader with technical expertise who is motivated by the opportunity to join a talented team dedicated to organizational excellence and making our region more Crain’s Cleveland Business’ classi eds will help you ll that space. competitive and a better place to live. Detailed requirements can be found at http://www.portofcleveland.com Send cover letter and resume to: Contact Lynn Calcaterra at 216-771-5276 [email protected] by the application deadline of Wednesday, October 19, 2016 PAGE 26 | OCTOBER 17 - 23, 2016 | CRAIN’S CLEVELAND BUSINESS
TV SOCIAL MEDIA TRIBE 6.5: The average rating for the 152 FACEBOOK game broadcasts on SportsTime Ohio, CONTINUED FROM PAGE 1 A comparison between the Tribe’s Facebook numbers the fifth-best in MLB. Possibly even more encourag- during two 18-days stretches — one before and one after ing for a club that has ranked in the 65%: Increase from the Tribe’s 3.93 the club clinched the division. bottom three of Major League ratings norm in 2015. That jump was Baseball in attendance for ve Category Sept. 8-25 Sept. 26- Percent the best in baseball by a wide margin. Oct. 13 increase consecutive seasons: e Tribe has sold 850 full-season equiva- Unique users reached 26,386,066 49,889,563 89.1% lents since July and has already Impressions 41,957,241 83,642,627 99.4% surpassed 9,000 season-ticket Post likes 568,555 720,065 26.6% holders for 2017. e current FSE total, which is up 25% year-over- Comments 29,643 42,385 43% year, includes 1,000 accounts (full- Shares 66,729 108,830 63.1% and partial-season packages) that 30%: Facebook followers from outside the U.S. have joined since July. ose numbers should contin- TWITTER ue to increase as well. 44 million: The Indians’ impressions from e Indians have a promotion Sept. 26, the day they clinched their first that ends at noon on Monday, Oct. division title in nine years, until Oct. 13. 17, and gives customers who pur- chase 2017 season tickets access to 27.7 million: The Tribe’s impressions in the World Series seats later this month. previous 18 days. And if the baseball gods really 58.9%: Increase in impressions. want to make things interesting, that Fall Classic would be against the Chicago Cubs, who haven't DIGITAL won a title in 108 years. INDIANS.COM 7,044,399: Total page views from Victory by the numbers Sept. 26, the day the Tribe clinched, to Oct. 12. TICKETS 3,627,911: Page views during the previous 17-day stretch. 9,000+: The Indians’ current season-ticket base (full-season 94.2%: Increase in page views equivalents). 1,240,661: Daily unique visitors 25%: Year-over-year FSE jump. from Sept. 26-Oct. 12. 14.6%: The club’s attendance 66%: Increase in daily unique increase, which was the visitors from the previous 17 second-largest in baseball. days. 28: The Tribe’s attendance rank in MLB. 49%: YOY increase in EMAIL single-game ticket sales. 20.95%: The Indians’ open rate from Sept. 26-Oct. 12. 202,000: YOY increase in tickets sold during the regular season. 17.61%: The club’s open rate in the previous 17 days. 850: FSEs the club has added since July. 6.84%: The Indians’ click rate from Sept. 26-Oct. 12. 1,000: New season-ticket accounts (full and partial plans) since July. 2.35%: The club’s click rate in the previous 17 days.
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Kent State University, Kent State and KSU are registered trademarks and may not be used without permission. Kent State University, an equal opportunity, affirmative action employer, is committed to attaining excellence through the recruitment and retention of a diverse work force. 16-UR-00309-324 CRAIN’S CLEVELAND BUSINESS | OCTOBER 17 - 23, 2016 | PAGE 27 LARGEST FOREIGN-OWNED COMPANIES The List Ranked by Number of Local Employees
NUMBER OF FULL- TIME EQUIVALENT EMPLOYEES NAME # OF THIS LOCAL ADDRESS PARENT COMPANY 6/30/ 6/30/ OHIO WORLDWIDE LOCAL YEAR PHONE/WEBSITE HQ LOCATION 2016 2015 EMPLOYEES EMPLOYEES FACILITIES TYPE OF BUSINESS TOP LOCAL EXECUTIVE
Signet Jewelers Ltd. Signet Jewelers Ltd. 3,292 3,318 4,148 28,949 36 Retail jeweler Mark Light 1 375 Ghent Road, Akron 44333 Hamilton, Bermuda CEO (330) 668-5000/www.signetjewelers.com
Nestle USA Nestle S.A. 2,300 2,277 3,400 335,000 1 Food manufacturer; Nestle HQ for Paul Grimwood (1) 30003 Bainbridge Road, Solon 44139 Vevey, Switzerland Prepared Foods, Baking and Pizza chairman, CEO 2 (440) 349-5757/www.nestleusa.com divisions; NUSA Business Services Center; Nestle R&D Solon; Nestle Solon frozen foods production
ArcelorMittal ArcelorMittal 2,157 2,161 3,110 209,000 2 Steel manufacturer Eric Hauge 3 3060 Eggers Ave., Cleveland 44105 Luxembourg vice president, general manager, (216) 429-6000/www.usa.arcelormittal.com ArcelorMittal Cleveland
Schaeffler Group USA Schaeffler KG 1,700 1,600 1,800 84,198 2 Transmission systems manufacturer Marc L. McGrath 4 3401 Old Airport Road, Wooster 44691 Herzogenaurach, president, Automotive Americas (330) 264-4383/www.schaeffler.us Germany
Bridgestone Americas, Inc. Bridgestone Corp. 1,436 1,150 2,196 144,303 6 Tire manufacturer Steve Charles 5 10 E. Firestone Blvd., Akron 44317 Tokyo, Japan vice president, product development, (330) 379-7000/www.bridgestoneamericas.com Bridgestone Americas Tire Operations
Philips Royal Philips Electronics 1,000 1,000 1,200 69,000 1 Developer of CT and Nuclear Medicine Chad Collins 6 595 Miner Road, Highland Heights 44143 Amsterdam, Netherlands medical imaging systems head of site operations (440) 483-3000/www.philips.com/healthcare
Saint Gobain Performance Plastics Saint-Gobain 804 804 894 170,000 7 Manufacturer of construction John Crowe 7 31500 Solon Road, Solon 44139 Paris products, high-performance materials president and CEO, Saint-Gobain Corp. (440) 836-6900/www.saint-gobain-corporation.com and glass containers and CertainTeed Corp.
Republic Steel Industrias CH S.A.B. de 600 1,000 600 6,000 4 Manufacturer of special bar quality Jaime Vigil 8 2633 Eighth St. NE, Canton 44704 C.V. steel president, CEO (800) 232-7157/www.republicsteel.com Tlalnepantla, Mexico
Bendix Commercial Vehicle Systems LLC Knorr-Bremse Group 514 514 514 24,275 1 Developer of active-vehicle safety Joseph J. McAleese 9 901 Cleveland St., Elyria 44035 Munich, Germany technologies, air brake charging and chairman (440) 329-9000/www.bendix.com control systems, and components
Cristal USA Inc. The National Titanium 454 489 454 5,696 2 Producer of titanium dioxide Scott Strayer 10 2900 Middle Road, Ashtabula 44004 Dioxide Co. DBA Cristal site director (440) 994-1400/www.cristal.com Riyadh, Saudi Arabia
ABB Inc. ABB Group 450 460 650 135,000 1 Industrial process control systems Mark Taft 11 29801 Euclid Ave., Wickliffe 44092 Zurich, Switzerland developer HUB manager, Power Generation, (440) 585-8500/www.abb.com Americas
Razorfish Publicis Groupe SA 300 300 440 77,000 1 Digital marketing and technology Mark Eckman 12 629 Euclid Ave., 15th floor, Cleveland 44114 Paris agency managing partner (216) 896-8900/http://www.razorfish.com/
Nelson Fastener Systems Doncasters 275 260 275 5,000 5 Manufacturer of critical fasteners Ken Caratelli 13 7900 W. Ridge Rd., Elyria 44035 Burton Upon Trent, UK and stud welding equipment president 440-329-0400/www.NelsonFastenerSystems.com
KYOCERA SGS Precision Tools Inc. Kyocera 219 219 219 69,229 (2) 5 Manufacturer of drill bits and cutting Thomas J. Haag 14 55 S. Main St., Munroe Falls 44262 Japan tools president, CEO (330) 688-6667/www.sgstool.com
The Akron Beacon Journal Black Press Ltd. 209 216 315 NA 1 News publisher Mark Cohen 15 44 E. Exchange St., Akron 44309 Victoria, British Columbia publisher (330) 996-3000/www.ohio.com
JTEKT North America/Koyo Bearings North America JTEKT Corp. 178 166 180 44,000 2 Manufacturer of ball and roller Clint Svancara 16 29570 Clemens Road, Westlake 44145 Osaka, Japan bearings for automotive and site lead (440) 835-1000/www.jtekt-na.com industrial applications
Pepperl+Fuchs Inc. Pepperl+Fuchs GmbH 160 150 160 5,700 1 Manufacturer of sensors, controls Robert Smith 17 1600 Enterprise Parkway, Twinsburg 44087 Mannheim, Germany and safety devices COO (330) 425-3555/www.pepperl-fuchs.us
EYE Lighting International of North America Inc. Iwasaki Electric Co. 150 150 152 2,038 (2) 1 Manufacturer and distributor of LED Tom Salpietra 18 9150 Hendricks Road, Mentor 44060 Tokyo and HID light sources president, COO (440) 350-7000/www.eyelighting.com
Valtronic Technologies (USA) Inc. Valtronic Holding SA 105 107 105 350 1 Medical device innovation, Jon Jay Wimer 19 29200 Fountain Parkway, Solon 44139 Les Charbonnières, development and manufacturing general manager, president, CEO U.S. (440) 349-1239/www.valtronic.com Switzerland company
The Austin Co. Kajima Corp. 85 80 85 9,000 1 Consulting, architecture, engineering NA 6095 Parkland Blvd., Cleveland 44124 Tokyo, Japan and construction services provider 20 (440) 544-2600/www.theaustin.com for industrial, commercial, health care and government clients
Xellia Pharmaceuticals USA LLC Xellia Pharmaceuticals 85 0 85 1,200 1 Manufacturer of sterile injectable Niels Lynge Agerb¾k 20 200 Northfield Road, Bedford 44146 ApS pharmaceutical products general manager (440) 359 2050/www.xellia.com Copenhagen, Denmark
Ebner Furnaces Inc. Ebner-Industrieofenbau 85 80 85 950 1 Designer and manufacturer of Herbert Gabriel 20 224 Quadral Drive, Wadsworth 44281 Linz, Austria industrial furnaces for the metals general manager (330) 335-1600/www.ebnerfurnaces.com industry, servicing NAFTA region
Cosmax USA Corp. Cosmax Inc. 81 28 81 2,800 1 ODM/CM supplier to the cosmetics Byung Joo Lee 23 30701 Carter St., Solon 44139 Pangyo, South Korea industry COO, CFO (440) 600-5639
Fuserashi International Technology, Inc. Fuserashi Co. Ltd. 78 70 78 800 1 Manufacturer of custom forged and Hal Wagoner, senior vice president 24 5401 Innovation Drive, Valley City 44280 Osaka, Japan machined safety-critical components Keith Albrecht, general manager (330) 273-0140/www.fitinc.net for the automotive industry
Novelis Corporation Aditya Birla Group 78 79 78 120,000 1 Aluminum rolled products and Paul Nelson 24 390 Griswold St., NE, Warren 44483 Mumbai, India beverage can recycling plant manager (330) 841-3127/www.novelis.com
RESEARCHED BY CHUCK SODER
Information is supplied by the companies. Some worldwide employee numbers were pulled from parent company websites or annual reports published in 2015 or 2016. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual business lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Based in California (2) Excludes employees of businesses that have not been consolidated into the parent company.