GETTING AHEAD of the CURVE Manufacturing Across the Coun- Sector
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20141124-NEWS--1-NAT-CCI-CL_-- 11/21/2014 3:37 PM Page 1 $2.00/NOVEMBER 24 - 30, 2014 Product demand sparking business Manufacturing industry is getting significant boost from companies investing in tooling and equipment By RACHEL ABBEY McCAFFERTY [email protected] Manufacturers across the nation have opened their wallets to buy more tooling and equipment this fall. That’s driving business for the companies that make those products, and it indicates growing JANET CENTURY optimism in the industry at large. Esperanza executive director Victor Ruiz, a product of Cleveland public schools, says the Hispanic community is critical to Cleveland’s growth. Bill Beattie, president of Bar- MORE INSIDE dons & Oliver, a Brown Gibbons Lang machinery mak- & Co. report shows er in Solon, said high growth for U.S. companies GETTING AHEAD OF THE CURVE manufacturing across the coun- sector. Page 19 With help of Esperanza, Hispanic graduation rates in Cleveland have soared try are ap- 30% proaching 80% capacity utilization, which is a high The graduation rate of Hispanic By TIMOTHY MAGAW of white and black students. And considering the His- number based on historical norms. Cus- students in Cleveland public [email protected] panic population was one of the fastest-growing com- tomers that might have been putting off schools in 2011, an all-time low. munities in the city and poised to make up a major In 2011, Cleveland Metropolitan School District part of the future workforce, concerns continued to purchasing equipment are having a CEO Eric Gordon decried the district’s dismal Hispan- mount. harder time doing so now, he said. Bar- 64.3% ic graduation rate as a crisis in the community. But in a few short years, the district managed to dons & Oliver makes equipment for pro- The current graduation rate for At 30%, that figure — an all-time low — was more double the Hispanic graduation rate to about 61% in cessing tube, pipe and bar for a diverse Hispanic students, an all-time best. than 20 percentage points lower than that of the dis- 2013, which is more in line with the national average. range of industries, including energy, trict’s overall student population and well below that See CURVE, page 8 See DEMAND, page 17 Firefighters banking on Lorain County with latest addition By JEREMY NOBILE Dec. 31, pending regulatory ap- ographic footprint and bolstering 18 employees with the merger, said ing its fourth acquisition in about [email protected] provals. Financial terms of the membership since the adoption of CEO Ben Laurendeau. The deal will as many years in the transaction transaction were not disclosed. its community charter in 2005. take Firefighters to $235 million in with Sun. Firefighters Community Credit The deal is rooted in succession Firefighters, which currently serves assets with about 32,000 members “It’s just very difficult for a small Union in Cleveland is continuing planning for Sun, from which CEO Lake and Cuyahoga counties, will and 80 employees. credit union to survive with addi- expansion efforts with its first foray Brenda Hammond will retire in De- take over operations of Sun’s five Mergers of credit unions have tional regulatory burdens (and) ag- into Lorain County at the end of the cember, and in strategic planning Lorain County locations. The deal become increasingly common ing memberships. … There are a lot year via its acquisition of Sun Cen- for Firefighters, where board mem- has been in the works since spring. since the end of the Great Reces- of forces that make it hard to sur- ter Federal Credit Union of La- bers have been pushing the credit Firefighters will add $35 million sion, Laurendeau said, especially vive,” he said. “We want to be an Grange.The transaction takes effect union to continue expanding its ge- in assets, about 4,000 members and for Firefighters, which is complet- See FIREFIGHTERS, page 8 47 7 ALSO INSIDE: SMALL BUSINESS NEWSPAPER Entering its third year, the Cleveland Flea is popular, Entire contents © 2014 74470 83781 profitable and entrepreneur-friendly ■ Pages 13-15 by Crain Communications Inc. Vol. 35, No. 47 0 PLUS: ADVISER ■ TAX TIPS ■ & MORE 20141124-NEWS--2-NAT-CCI-CL_-- 11/21/2014 11:44 AM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 24 - 30, 2014 Sale to private equity firm should bolster Q Holding Co. By MIKE McNULTY Both 3i and Q Holding have a terest in the company.” ence and network to help acceler- end market strategies makes 3i an Rubber & Plastics News common goal of expanding in a Q Holding primarily serves the ate the company’s continued inter- ideal partner for this phase of the number of regions. The transac- automotive, medical and pharma- national expansion.” business.” Precision molded rubber and sil- tion, which is subject to standard ceutical markets with goods made Relyea said there are excellent With its expertise and contacts in icone components maker Q Hold- regulatory approvals, is expected to by Qure Medical and QSR. growth opportunities for Q Holding Europe, 3i will be able to help Q ing Co. of Twinsburg will get an op- close in mid- to late-December. not only in the United States but in Holding navigate in its bid to grow Q Holding President and CEO Mexico, Europe and China. “We further in Europe, he said. A good portunity to further expand its Well positioned growing business in Europe and in Randy Ross said the company’s have a terrific depth of resources to portion of that growth is expected other regions of the world under management team and workforce Richard Relyea, a 3i North Amer- help them grow.” to be organic driven by the creation the guidance of a new owner. of about 1,100 will remain intact. ica partner based in New York, said 3i is a leading international in- of new or improved products, he Private equity firm 3i Group The firm operates six manufactur- Q Holding “is an excellent business vestment manager based in Eng- added, but some could come via P.L.C., with a strong foundation in ing facilities in the United States and a global leader in the majority land. It is well-known throughout acquisitions. Europe and elsewhere, plans to and China, selling products in of its product categories. It’s well Europe where it has had a strong “I see this (acquisition) as a ben- purchase the company and its more than 50 countries, and has a positioned in the markets it serves.” base since the 1940s, Ross said. efit to us in order to find the right three operating businesses — Qure sales and engineering office in Ger- He said his firm is looking for- It “has the network to help us be platform for us as we expand in Eu- Medical, QSR, and Quadra Tooling many. ward to working with Q Holding’s a global partner to our key cus- rope,” according to Ross. and Automation — from Industrial He said the management team management team “to build upon tomers. Our shared vision of ‘cus- Relyea agreed, noting that in ad- Growth Partners for an estimated was given an opportunity to invest this strong platform for growth, in tomer first’ philosophies and 3i’s dition to organic growth, selective $160 million. in the operation, “so I have an in- particular leveraging our local pres- unique position to help support Q’s See Q HOLDING, page 7 700 W. 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