20150622-NEWS--1-NAT-CCI-CL_-- 6/19/2015 2:35 PM Page 1
$2.00/JUNE 22 - 28, 2015
A sure sign of good times for the local apartment industry: Owners are reinvesting millions — P. 3 Police reform is going to be very costly for Cleveland, but business leaders are willing to help — P. 3 Parker could be cracking Clinic believes posting ratings case on mysterious crash of physicians is Mayfield Heights manufacturer believes its search for answers a healthy step to Earhart’s death is on point MetroHealth and UH also plan to post By DAN SHINGLER their docs’ scores in coming months [email protected] By TIMOTHY MAGAW Talk about a great quarter — Parker Hannifin had one [email protected] that might even be historic. Increase net income, check. Increase earnings per Cleveland Clinic docs are seeing stars, and hopefully share, check. Find Amelia Earhart’s crash site, check. five of them. Well, probably. Company executives think so, and The regional health care giant recently joined a hand- we’ll probably know soon if they’re right. ful of hospitals around the country that are posting physi- The Mayfield Heights-based maker of motion control cian ratings — the good, bad and the ugly — on their own products says an expedition led by veteran Earhart re- websites. Doc reviews aren’t necessarily a new thing, but searchers Mike Harris and Dick Spink, which Parker with the limited number of writeups on websites such as sponsored and participated in, has struck gold. Or some Vitals.com or Healthgrades.com, health systems like the of the world’s most sought-after aluminum, at least. Clinic believe they can offer prospective patients a more “We’re looking, really, for the technical compositions accurate picture of what’s happening with their caregivers. of the (aircraft) pieces we found,” said John Jeffery, di- And soon the Clinic won’t be alone in Northeast Ohio, rector of Parker Aerospace technology and business de- as University Hospitals and MetroHealth plan to do the velopment, who participated in the search. same in the coming months. “Also, one has some paint that we think might be a “We believe that what’s out there isn’t data that’s valid match to her airplane,” he said. “I have good confidence or of reasonable numbers to truly reflect the care people we’re going to have some success here.” Executives at are getting,” said Dr. Adrienne Boissy, the Clinic’s chief So how did Jeffery, a California-based engineer and Parker Hannifin experience officer. “We can provide more meaningful executive of an Ohio-based company, end up halfway believe they data for patients. Transparency isn’t just posting good around the world in the remote Pacific Ocean, looking found the crash stuff. When I say we mean it, we mean it.” for a famous plane that crashed in 1937? And why does site of Amelia The Clinic’s scores, which can be accessed through its Parker even care? Earhart. Below, online Find a Doctor tool, are an average of all responses The answer to the second question is fairly simple. parts they found to the system’s outpatient and inpatient surveys, which Parker found out that it made parts for Earhart’s Lock- that are being are administered by a third-party vendor. To ensure heed Electra 10E plane, including the fuel gauges and tested for validitiy. they’re accurate, ratings are displayed only for those other parts of the plane’s fuel system, which had been providers with at least 30 returned surveys. heavily modified to enable the pilot to cross the Pacific Clinic officials insist the anonymous comments aren’t in her attempt to circle the globe. cherry picked and are monitored only to ensure protect- As for how the company got involved, that’s a longer ed health information or vulgarity doesn’t make it onto and better story. It began last year when Jeffery’s broth- the site. Moreover, the Clinic is posting data gleaned from er, Jim, heard from an old friend who was a profession- surveys sent directly to patients, so not just anyone can al explorer and Earhart researcher. post a negative review. The surveys are administered by “Just before Christmas, my brother called me, he had Press Ganey, an independent patient satisfaction compa- a friend, that I know also, who has been a professional ny that works with roughly half of all U.S. hospitals. explorer all his life. Mike Harris,” John Jeffery recalled. Boissy, a neurologist, doesn’t have much to hide, as she “He said he had an exploration and knew Parker was an carries a perfect five-star rating (“Nothing bad to say,” one aerospace company and wanted to know if we wanted patient said). On average, the Clinic’s docs boast 4.8 stars to be involved.” out of five, but if you dig deep enough, you’ll find some Harris had been looking for Earhart’s plane for less-than-flattering comments. For example, despite a
See CRASH, page 11 GETTY IMAGES (2), CONTRIBUTED PHOTO See CLINIC, page 22 25
7 ALSO INSIDE: WHO TO WATCH
NEWSPAPER Crain’s looks at some of the people who are Entire contents © 2015
74470 83781 making their mark in the Northeast Ohio by Crain Communications Inc. ■ Vol. 36, No. 25 0 technology sector Pages 13-18 20150622-NEWS--2-NAT-CCI-CL_-- 6/18/2015 12:53 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY
ASK THE EXPERT IT in the Sky: Is the Cloud Right for Your Business?
What is the “cloud” phenomenon all about? that will work with you on a Proof of Concept You hear it constantly, but what does it mean 76*HUKPUWOHZLZÄ[`V\PU[V[OLJSV\K( and how can it be used to help small business POC will determine the feasibility of moving to June 22 owners? the cloud; it can also be a useful tool to see The cloud has been a buzzword for several how well you and the vendor work together. years, and with good reason. The cloud is rap- Look for a cloud provider capable of mov- PKS`YLK\JPUNJVZ[ZHUKPTWYV]PUNLɉJPLUJPLZ ing you to a global economy. An important By The Numbers for businesses globally. In its simplest form, business consideration in today’s fast-paced the cloud consists of services and software and ever-changing technology landscape is that are accessed through the Internet instead leveraging IT ecosystems. It’s important to of your local network. Cloud environments are partner with groups that can understand your housed in highly available, fully redundant and business and collaborate to meet and exceed 40% compliant third-party audited data centers and your objectives. of business owners say 2L]PU.VVKTHU are built on enterprise hardware. It’s safe to By virtualizing your IT applications and in- bookkeeping & taxes are )S\L)YPKNL5L[^VYRZ return to an old business axiom: When trans- frastructure, your company can create oppor- the worst part of owning a formation occurs it brings new challenges; it [\UP[PLZ[VILJVTLTVYLLɉJPLU[HUKYLK\JL small business also brings opportunity. Small and mid-size drive and grow your business. You may want your overall IT footprint. As you move toward 6SHFLðFDOO\ businesses must become comfortable under- to beef up your disaster recovery and busi- the cloud, be sure to leverage the umbrella of standing the cloud infrastructure and all they ness continuity strategies or be prepared to your provider’s audits and compliance to laws 47%GLVOLNHWKHðQDQFLDOFRVW can gain from utilization. Careful due diligence scale your IT to meet varying customer de- and best practices. By entering the cloud lay- 13% dislike administrative ^PSSOLSWI\ZPULZZLZTHRLJVUÄKLU[KLJPZPVUZ mands. Connecting your mission critical apps ers, you will reduce and eliminate single points headaches & time PU ÄUKPUN [OL YPNO[ WYV]PKLYZ [V SH\UJO [OLT into facilities that have faster performance of failure, and bring your company to the out- 13% dislike the complexity of into this space. and higher security than your own makes side world in a highly reliable and secure way. compliance Reasons to move to a cloud platform are good business sense. 10% dislike changing many. Perhaps you are facing a hardware re- The idea that the cloud is only for larger KEVIN GOODMAN is managing director and regulations & confusion fresh, new levels of compliance requirements, companies is inaccurate. There are many bud- partner with Blue Bridge Networks, a cloud 8% dislike all the paperwork security and /or law, or your company may get-friendly cloud options for small and medi- data center and managed services business wish to move toward applications that can um-sized businesses. Find a cloud company headquartered in downtown Cleveland. 8% dislike inequity of the tax code SOURCE: SCORE Owner Resources ,HYU \W [V MV\YWLYJLU[ VɈ `V\Y^VYRLYZ» JVTWLUZH[PVU WYLTP\TZ Q\Z[ I` QVPUPUN [OL Connection Calendar Northeast Ohio Safety Council (NEOSC) and attending its monthly breakfast meetings. THINK SPOT KEYNOTE SERIES The NEOSC is a great resource for business owners looking to create and maintain a FEATURING FRANS JOHANSSON, ZHML^VYRPUNLU]PYVUTLU[-YVTWLY[PULU[ZHML[`PUMVYTH[PVU[VX\HSPÄLKHUKL_WLYPLUJLK AUTHOR OF THE MEDICI EFFECT speakers, NEOSC can provide your organization with the tools and knowledge you need In today’s fast-changing and unpredictable to improve the safety culture within your workplace. The deadline to enroll is July 31. Visit world, the rules are changing so fast that the tried-and-true formulas for success are www.neosafetycouncil.com or call (216) 592-2340 for more information. disintegrating. Hear best practices for standing apart and developing a winning strategy. JUNE 24 5:30 - 8 PM 52 TIPS FOR YOUR BUSINESS Reserve your Renaissance, Cleveland spot today!
Cost: Free #25 – Always be Ready to Pitch Reserve your seat at www.cose.org/thinkspot. Quick, in 30 seconds or less tell us what )LJVTL )\`LY+YP]LU Typical elevator your company does and wow us with your speech content includes a seller-driven menu RNC FORUM unique selling proposition. Can’t do it? of products, services or features. Stand out Find out how to get listed as a potential You’re not alone. It can take some time to in a crowd by being more buyer-driven by fo- supplier to the 2016 Republican get your business pitch just right. You’ll likely cusing on what the listener might want or get National Convention. NV[OYV\NOZL]LYHSKYHM[ZILMVYLÄUKPUNVUL when they work with you. Emphasize the ben- JUNE 24 that is compelling, and that sounds natural LÄ[ZHUK]HS\L 3:30 - 4:30 PM in conversation. 7YHJ[PJL+VLZU»[ 4HRL7LYMLJ[ Practice Renaissance, Cleveland A business pitch or elevator speech is a only makes permanent. Only perfect practice brief, persuasive speech used to spark inter- makes perfect. So, practice your succinct, Cost: Free est in you and your business. A good elevator buyer-driven speech until it’s articulate and en- Reserve your seat at www.cose.org/rnc. pitch should take no longer than a short eleva- thusiastic and don’t forget to prepare similarly tor ride of 20 to 30 seconds, hence the name. focused responses to obvious questions inter- COSE EDUCATION SESSION: “Elevator speeches are shameless self-pro- ested people might ask. PEOPLE AND BOARDS TV[PVUZ¹ZH`Z7OPS:[LSSHWYLZPKLU[VM,ɈLJ To elevate your elevator speech, Stella rec- 7OPS:[LSSH Experience the power of connecting to tive Training and Communication in Cleveland. ,ɈLJ[P]L;YHPUPUNHUK*VTT\UPJH[PVU ommends starting out by writing out your typi- other business owners who have walked “We use these speeches every day at meet- cal response to the question, “So, what do you in your shoes. COSE’s Strategic Planning ings and networking events, but most of us 0[»Z5V[(IV\[@V\ It’s about the people lis- do?” Then edit it in the context of the strat- Course (SPC) representatives will host this KVU»[KV[OLT^P[OLUV\NOMVJ\ZVYÄULZZL¹ tening to you and why they should want to ask egies above and polish and practice it until it session on the importance of people and We asked Stella to share some simple strat- you more questions or get to know you better. ÅV^ZUH[\YHSS`¸6UJL`V\OH]LWLYMLJ[LK`V\Y IVHYKZPU`V\YI\ZPULZZHUKVɈLYHZHTWSL LNPLZMVYJYHM[PUNHÅH^SLZZLSL]H[VYWP[JO A good elevator speech should generate four elevator speech, you can enjoy the ride up to of SPC course content. 3LZZ0Z+LÄUP[LS`4VYL Elevator speech- VYÄ]LTVYLZWLJPÄJX\LZ[PVUZPM[OL`»YLPU[LY [OL[VWÅVVY¹ZH`Z:[LSSH JUNE 30 es are supposed to begin a dialogue, not ested in you. If not, you’ve just saved them and 8 - 10 AM be a monologue. Provide enough focused yourself valuable networking time. i Want more expert advice? Check out *6:,6ɉJLZ*SL]LSHUK information to engage your listeners in con- 3L[ .V VM[OL ,NV Titles are for business Linktunity (www.linktunity.com), an versation, but keep it brief. With every word or cards. Write out your typical elevator speech online forum connecting business Cost: Free fact you might mention, ask yourself “Who and count the number of “I” statements. The owners with creative solutions to the Reserve your seat at www.cose.org/events. really cares?” more you have, the more ego you need to let go. tough questions they face every day. Check out www.cose.org/events CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150622-NEWS--3-NAT-CCI-CL_-- 6/19/2015 2:34 PM Page 1
JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Business leaders are pledging support for costly police reform By JAY MILLER this,” he said in a telephone inter- [email protected] view. “We’ve got to figure out the best way for us to be involved with it.” Cleveland Mayor Frank Jackson David Abbott, executive director has said he will be asking the busi- of the Gund Foundation, also agreed ness and philanthropic communi- with Mooney. Abbott said he recent- ties to help the city pay for the cost of ly attended a meeting on the subject reforming the city’s police force. of police reform with Jackson, U.S. The reform will come about as the Attorney Steven Dettelbach and sev- city implements the consent decree eral business and foundation lead- with the U.S. Department of Justice ers, including Joe Roman, president that is designed to remedy what the and CEO of the Greater Cleveland Justice Department found to be a Partnership; Ronn Richard, presi- pattern of excessive and deadly force dent of the Cleveland Foundation; by Cleveland police officers that vio- and Albert Ratner, co-chairman CONTRIBUTED PHOTOS lated the civil rights of city residents. emeritus of Forest City Enterprises Dover Farms in North Royalton is a 300-unit complex that is currently undergoing a $4.5 million renovation project. It’s too early to know how much it Inc. will cost or how the community will administer the private funds it hopes to raise, but early indications are that “The business community the Cleveland community is ready to and GCP has already The ‘sun is shining’ on help. pledged to help the mayor But if the experiences of Seattle see this issue through to are at all comparable, the cost could be steep. Through the end of 2014, real reform.” that city spent $12.8 million since – Beth Mooney 2012 for its own court-enforced po- Greater Cleveland Partnership NEO apartment industry lice reform, according to a Jan. 30 board chair memorandum from the Seattle bud- get director to Seattle City Council. Competition and improved economy have meant a surge in investments At the annual meeting of the “I would say there is a willingness Greater Cleveland Partnership last among funders in an abstract way, By STAN BULLARD Wednesday, June 17, GCP board but I don’t know how much (money [email protected] chair Beth Mooney pledged her foundations could invest) and for group’s support, even though no de- how long,” he said. “There are cate- From the hills of North Royalton tails are yet known. gories (of needs) that are easier to to the mid-rise apartment towers of “The business community and fund than others.” Euclid, workers are swinging ham- GCP has already pledged to help the Abbott said that a foundation’s mers, replacing sinks and tacking mayor see this issue through to real mission might limit what it can do. down carpet at levels not seen in reform,” Mooney, KeyCorp chair- For example, he said that while the years in Northeast Ohio multifamily man and CEO, told the membership Gund Foundation is providing sup- properties. in her opening remarks. “We intend port to develop schools for Cleveland Driven partly by competition from to get involved early with the mayor students, “We don’t pay for teachers, a bevy of new multifamily projects in and his team to deliver consensus that’s what taxes are for.” a region that historically sees few, and a lasting plan for Cleveland.” Paying for new police equipment suites housing tenants from high- The Justice Department, in a re- or software to track the police de- end renters by choice to low-income port released in December, found partment’s performance might be tenants with subsidies are getting that Cleveland police officers more compatible with a founda- updates. Some improvements had demonstrated a pattern of unrea- tion’s funding guidelines, said been delayed by the housing bust sonable and unnecessary use of William LaPlace, treasurer of the while others are designed to meet force. Kelvin and Eleanor Smith Founda- the desires of the echo boom just It said officers too often used ex- tion, a private family foundation with the mission to make grants to graduating from college; still, others cessive lethal and non-lethal force and used poor and dangerous tactics nonprofit, charitable organizations are being undertaken by new prop- properties here withstood the shopping. Managers were spending that placed officers in situations in Northeast Ohio. erty owners. downturn. While thoughtful apart- a lot of time fetching goods that where avoidable force becomes in- LaPlace said he was aware of Ralph McGreevy, executive vice ment owners worry about the pro- were piling up in their offices since evitable. These practices, the report foundations helping smaller com- president of the Northeast Ohio fusion of new multifamily projects Amazon became ubiquitous. found, have eroded public confi- munities buy police equipment. “I Apartment Association trade group, in the region, Madary said the pace So Dover Farms received a sys- dence in the police force. don’t know that any of us with the said the renewed activity is a func- in Cleveland is less than in other tem called Parcel Pending, a soft- Under the consent agreement, the larger philanthropic groups here in tion of good times in the apartment markets where it operates, such as ware system that notifies tenants city will retrain officers and create Cleveland have done it, but that industry. Columbus. when they have a delivery. Tenants several layers of oversight and en- doesn’t mean it couldn’t happen “Things have never been better for “We’re conservative,” Madary receive a personal identification forcement, including creation of a here,” he said. “It’s going to be trial apartments. Owners are investing said in a phone interview. “We real- number to open a special storage police inspector general, an over- and error until people figure out if and getting ready for what comes ized some of the best opportunities locker that contains their parcel. hauled internal affairs unit and, over they want to participate or not.” next,” McGreevy said. “Remember are under our nose. There is a lot The system is available around-the- it all, an independent monitor cho- Seattle made a similar agreement the old saying about the best time to more demand and not a lot of new clock, so tenants do not have to pick sen by the city and Justice Depart- with the Justice Department in 2012 put on a roof? It’s when the sun is properties coming into the market up parcels during business hours. ment who will serve a five-year term. after the DOJ found a pattern of ex- shining. The sun is shining on the in- in Northeast Ohio. We see it as a Such steps go along with updated Though the cost of the retraining, cessive force used by Seattle police. dustry now.” chance to make significant renova- entrances, lobbies and suite-by- data collection and monitoring of That settlement created the office of Some big dollars are involved. tions for our tenants and our port- suite improvements to add value for the reform effort has not been calcu- Seattle Police Monitor charged with Take Dover Farms in North Royal- folio.” tenants. The updates allowed the lated, Jackson said the city likely will remaking that city’s police depart- ton, a 300-unit complex dating from JVM’s renovations went beyond owner to receive increased rents on be able to cover some, but not all, of ment. the 1980s. Owned by Oak Brook, Ill.- cosmetic updates such as painting, the properties. Renovated suites are the cost through its general fund, The agreement requires local po- based JVM Realty Corp., major fea- Madary said. The firm took steps to going for about $150 more than the and that he will turn to the business lice to report the rate of arrests, tures of a $4.5 million renovation enhance the properties in ways $800 average monthly rental before and philanthropic communities for where an officer used excessive project have been completed but that, Madary said, will benefit the they were renovated, Madary said. financial help. force, and how many times police suites will continue to be renovated tenant and owner for years to come. Across town, at The Drake, a five- department policy was violated in as they turn over in the next year. For example, at Dover Farms, floor apartment complex at 15830 Foundation funders each incident. The monitor oversees In JVM’s case, it toyed with using JVM gutted a dated racquetball Van Aken Blvd., Shaker Heights, an the whole process. the surge in the apartment market as court and removed a hot tub to re- affiliate of Rock on Cleveland Op- Barry Doggett, senior vice presi- In 2014, according to a report filed a chance to buy new properties na- place them with a contemporary fit- portunity Fund has invested from dent for public and community af- with Seattle City Council by the city’s tionally. However, Jay Madary, JVM ness center complete with large- $4,000 to $12,000 per suite at the fairs for Eaton Corp. and chairman budget director, the city spent $7.6 president and CEO, said the firm screen TVs that offer exercise 1950-vintage property since buying of the Eaton Charitable Fund, agrees million on the monitor, the commu- found itself looking in other cities at programs. JVM also installed a new it a year ago, according to Ned with Mooney that the business com- nity police commission and on po- properties somewhat like Dover system for handling parcel deliver- Wasserstein, managing partner of munity should be involved. lice department spending related to Farms and appreciated how well its ies to cope with the rise in online See APARTMENTS, page 19 “We recognize the importance of the consent decree. 20150622-NEWS--4-NAT-CCI-CL_-- 6/19/2015 1:58 PM Page 1
4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 LEASED 6180 HALLE DRIVE, VALLEY VIEW, OHIO
Newmark Grubb Knight Frank is pleased to announce the lease and Visit relocation of Meier Transmission TerryCoyne.com to 6180 Halle Drive in Valley View. Or Call Terry at 216.453.3001 Kristy Hull and Terry Coyne represented Meier Transmission. Former Hugo Boss plant 1350 Euclid Ave., Suite 300 Cleveland, Ohio 44115 getting needed makeover New owners will invest about $1.5M in Brooklyn facility
By RACHEL ABBEY McCAFFERTY [email protected]
Keystone Group Holding LLC is investing about $1.5 million in the former Hugo Boss plant in Brooklyn to get the factory ready to make Hart Schaffner Marx brand menswear starting in August. Keystone purchased the plant for REBECCA R. MARKOVITZ (TOP)/CONTRIBUTED PHOTO an undisclosed price at the begin- Doug Williams and Keystone Group Holding LLC are investing $1.5 million in the ning of May, throwing a lifeline to former Hugo Boss plant in Brooklyn. the factory that Hugo Boss planned to close. more. ee meeting shortly after the sale. When Workers United, the union The appreciating dollar means Milko said he thinks the new representing employees at the plant, that raw materials have been less ownership will make the plant a less approached the new parent compa- expensive, he said, and younger stressful work environment for em- ny about the closure, the group took men are dressing up more than ployees, as Hugo Boss’ leadership action. their fathers’ generation did. had often spoke about moving the “It just became a greatly oppor- The personalization side of the work offshore. tune moment for us,” said Doug business has been especially lucra- Williams, on the other hand, is Williams, one of the owners of Key- tive. In about 18 months, the com- big on made-in-America products. stone in Cleveland and CEO of W. pany more than doubled its made- “That stress point will be gone,” Diamond Group Corp. in Chicago, to-measure business. Milko said. which also owns entities such as the Williams said he planned to grow Training has already begun for Hickey Freeman retail store in New the company by mid-double-digit the retooled plant, which is expect- HOW BAD IS THAT LEAK? York and Misook.com. percentages, and that the lack of ed to open Aug. 1. The Hart Schaffn- The group has more than $70 mil- space in Chicago was the only fac- er Marx garment required new lion in annual revenue, though tor that had been holding them equipment and a new material Williams declined to be more specif- back. The Brooklyn plant’s approx- management technology, Williams ic. The company has a license for the imately 150 employees were put on said. Hart Schaffner Marx brand, and furlough near the beginning of May, The company has taken some of Cleveland-area customers can find but the majority are expected to re- the supervisors to Chicago to see its suits, sport coats and trousers at turn. Williams noted that the com- how the process works, and the first stores such as Dillard’s. pany has come up with a plan to six to eight weeks of production will Finding individuals who sew in make up the difference after unem- be under a trained method. the U.S. is a problem for the garment ployment when employees return Williams said he is looking for business, Williams said. to work. additional business for the Brook- The company has seen growth As part of the agreement, the lyn plant and wants to find a third since the Williams family bought the union agreed to a three-year deal party to take on the distribution operating company for the Hart that included better insurance and center. Keep your assets safe by taking the time to ensure that problems Schaffner Marx brand in 2012 and built-in pay increases, said Workers He plans to reopen the outlet had outgrown its Chicago factory. United area director Mark Milko. store to carry Hart Schaffner Marx at the top of your building are not damaging your bottom line. “Our business has been spectacu- He called Williams a hands-on clothing and Austen Heller lar,” Williams said. owner and sounded impressed that footwear, which also is owned by Carey Roofing Corp. has eliminated asset damage due And he expects it to grow even he personally attended an employ- the company. to a leaking roof with practical solutions since 1946.
Volume 36, Number 25 Crain’s Cleveland Business (ISSN 0197-2375) is published Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - 216 • 881 • 1999 MEMBER: weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of ad- CAREY by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at addition- dress. For subscription information and delivery concerns send correspon- National Roofing dence to Audience Development Department, Crain’s Cleveland Business, 1155 www.careyroofing.com al mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Roofing Corp. Contractors Association Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to founded in 1946 Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan [email protected], or call 877-824-9373 (in the U.S. and 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-210-0750 Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20150622-NEWS--5-NAT-CCI-CL_-- 6/18/2015 12:54 PM Page 1 20150622-NEWS--6-NAT-CCI-CL_-- 6/19/2015 3:09 PM Page 1
6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015
Prime Offi ce Space Available The Delaware Building Airport study shows lofty need for funds from state General aviation airfields and their
137 S. Main Street, Akron, OH backers say Ohio’s • 5 Unique Spaces Available, ranging from • Access to Skywalk & Cascade Parking support is critical 700 SF to 8,000 SF • On-site Property Management • Outstanding CBD Location • Renovated Common Areas & Restrooms By JAY MILLER • Located only one block from the Summit • Private parking deck in the rear of the [email protected] County Courthouse, The Ohio Bldg., & building for an additional fee Government Offi ces • Convenient Location Ohio’s 97 general aviation airports will need more than $500 million Ronald Midcap II over the next 20 years to maintain safe and efficient levels of operation, 216.839.2019 according to a study released by the [email protected] HannaCRE.com Ohio Department of Transportation. Aviation supporters are optimistic that an increase in state spending will survive the current state budget process and allow Ohio’s airports to keep operating safely and effectively. The Federal Aviation Administra- tion pays a significant portion, typi- cally 90%, of the cost of maintaining the infrastructure of these smaller air- fields, including Burke Lakefront Air- port, Cuyahoga County Airport and through an excise tax. Currently, avi- speed sensing equipment for indus- Lorain County Airport. Nonetheless, ation fuel purchasers pay a sales tax, trial applications. the cities, counties and quasi-public which goes into the general fund. The company has fewer than airport authorities that operate the “Our airports are currently in dire two dozen employees. Swanson landing fields struggle to find the lo- need of maintenance and improve- considers Willoughby Lost Nation cal matching money the federal gov- ments,” Perales said in February Airport an important asset to his ernment requires. Airport operators, when he introduced HB 32. “This business. That’s especially so since the businesses on airport grounds bill will not result in a tax increase, United Airlines’ cutbacks at Cleve- and private pilots who use these fields but will simply relocate revenue re- land Hopkins International Airport. have never been able to convince the ceived from aviation fuel from the Business trips that used to be day state to treat airports like highways General Revenue Fund.” trips became overnight stays be- and take a financial role in maintain- Perales said the sale of aviation cause of more cumbersome travel ing this infrastructure as other state fuel generates between $14 million itineraries. governments have. and $16 million a year in sales taxes, But with Lost Nation nearby, he The Ohio Department of Trans- and the excise tax created by his bill has an alternative. portation has allocated less than $1 would not raise that amount. A sim- “I use the airport, half my em- million a year to airport improve- ilar bill has been introduced in the ployees use the airport,” said Swan- ments, and the Kasich administra- Senate by state Sen. Bob Beagle, a son, who is a pilot and rents planes tion, for fiscal 2016, budgeted Republican whose district includes for trips of 450 miles or fewer. “We $620,000. But the House — unex- parts of Dayton and surrounding view it as a pretty important part of pectedly to many observers — counties. what we do.” bumped that up to $6 million while The airport study found that the “You have people saying, ‘Close the Senate version of the budget state’s general aviation airports will down those little airports. All they trimmed that back to $3.4 million. need nearly $460 million over the do is suck up money,’ ” Swanson A final number is up in the air un- next 20 years to upgrade and main- said. “What non-fliers don’t under- til the politicians do their horse trad- tain the pavement of their runways. stand is that they separate traffic.” ing and budget compromising in Another $56 million will be needed Swanson likened it to having 25- time for the governor to sign by June to purchase and maintain land be- mile-an-hour traffic and 70-mile- 30, the end of the fiscal year. yond the ends of runways to meet an-hour traffic using the same “We have gotten strong support FAA-mandated safety require- roads and freeway interchanges. from the House, especially Rep. ments. “Do you really want planes like I (Rick) Perales, and the majority Another part of the state-com- fly, doing 90 knots on the approach leader and now the Senate has put in missioned study focuses on and and commercial airliners in the money,” said Terry Slaybaugh, direc- drills down to county-level eco- same section of air doing 150 tor of aviation for the city of Dayton, nomic development. The economic knots?” he asked. “It’s not a good who oversees both the Dayton Inter- impact section reports that Ohio’s thing.” national Airport and a general avia- general aviation airports and the Swanson believes that people tion field, the Dayton Wright Broth- visitor-related and construction ac- don’t fully understand the value of ers Airport. “It would be a good start tivity on airport grounds account these airports, many of which date to a program.” for more than 123,000 jobs and a back 50 years, when Gov. James Slaybaugh is a former president of $4.2 billion payroll. Rhodes wanted an airport in every the Ohio Aviation Association, a The study also estimated that be- county as part of his economic de- nonprofit that works for aviation cause of their role in supporting velopment strategy, believing that safety and airport improvement. emergency medical transport, pilot businesses will want to locate near Inclusion in the next biennial bud- training, crop dusting and utility in- good air facilities. get likely would move ahead legisla- spections as well as business travel, “A customer of ours is Cessna tion to make a larger allocation for these general aviation airports have (Aircraft Co.) in Wichita, Kansas,” airport improvements permanent. a $13.3 billion economic impact. he said. Rep. Rick Perales, a Republican “We sent four of our engineers who represents part of Greene Coun- out there and we chartered a twin- ty near Dayton, is sponsoring a bill in The roads less traveled engine airplane for that. That costs the House that would create a dedi- Garry Swanson believes main- us about $3,000, but if you multiply cated revenue stream to be used for taining the small airports is an im- four guys by four airline tickets, by improving airports and promoting portant investment. four hotel rooms, by extra meals, by economic development in the aero- Swanson is president and CEO of being on the road an extra day, it space and aviation industry. The bill Thermotion LLC, a Mentor manu- made sense. One less day on the would tax aviation fuel like gasoline facturer of tachometers and other road is always a happy event.” 20150622-NEWS--7-NAT-CCI-CL_-- 6/19/2015 3:27 PM Page 1
JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Product Hunt funnels tech fans toward local startups
By CHUCK SODER nies do better on Product Hunt than not sure he would try to get on Prod- about the book. The most common process of creating expense reports. [email protected] others. uct Hunt again. These days, Beegit is response was Product Hunt. It came as a surprise to CEO Ed Take Beegit. In December, when going after companies that employ Individuals also are Quo’s target Buchholz. He learned that his com- Mike Cottrill knew that tech geeks the Cleveland company appeared entire teams of writers and content market. The Cleveland company, pany was on Product Hunt through from around the world were about on Product Hunt’s homepage, Cot- marketers. He didn’t find many of which matches people with apart- Twitter. to flood his company’s website. trill and his small team manned them on Product Hunt, which is ments, attracted about a dozen pay- Back then, though, ExpenseBot A customer who helped test Bee- their battle stations. They knew popular among entrepreneurs, ing customers after it appeared on wasn’t “really ready for scale,” he git’s first product — a software tool they’d have to respond to an influx technophiles and other individuals. Product Hunt in May. said. So the company decided not to designed to help writers work to- of emails and tweets. And they They’re only operating in a few campaign for upvotes. It earned 158 wanted to do whatever they could to cities at this point, but they told of them anyway. And the company’s gether online — had told the com- Connections matter pany that he was going to promote get people to upvote their product friends in those cities about the ser- website still attracted three or four that product on Product Hunt. — without being punished by Prod- The site works better for guys like vice. They attracted “good New York times as many visitors as usual. That’s a big deal. In less than two uct Hunt. The site is programmed to Mike Belsito. In March, he released and Chicago traffic,” two of the cities About 100 of them signed up for a years, Product Hunt has become the lower a product’s ranking, or re- a book called “Start Up Seed Fund- where Quo does business, accord- 30-day free trial. At least a few pay- go-to place for people who want to move it entirely, if it senses that a ing for the Rest of Us.” ing to CEO Amit Patel. ing customers have told him that learn about tech products as soon as promotional campaign is underway. It racked up 347 upvotes and be- So how does a brand new compa- they found ExpenseBot through they’re released. People who might “You’re suddenly turned on call. came the top product featured that ny like Quo end up on Product Product Hunt, but like Cottrill, be willing to try a brand new prod- It’s the equivalent of a hospital code day. Why? Belsito — who is best Hunt? It helps to know someone. Buchholz said his company wasn’t a uct released by a startup company. red. A bunch of alarms are going known for starting eFuneral, a now- Only particularly active members great fit for the site. Beegit is one of at least six local off,” said Cottrill, one of the compa- defunct company that helped peo- of Product Hunt’s online community “It’s not the best way to get in companies or entrepreneurs who ny’s three cofounders. ple shop for funeral homes online — are given the ability to post new front of midsize businesses,” he said. have had products featured on During that first 24 hours, Prod- gave a few reasons: 1) It was ready- products. In Quo’s case, Belsito rec- Buchholz described Product Product Hunt, which posts a list of uct Hunt pushed more than 1,500 made for the many entrepreneurs ommended the company. Hunt as “the new TechCrunch.” new products every day and ranks unique visitors to Beegit’s website — who frequent Product Hunt; 2) they As for Belsito, someone he never He’s also started companies that them based on how many “upvotes” roughly double what the site was could download it immediately; and met posted his book on Product were written about on that website, they get. drawing at the time. The company 3) it was free for that first week. Hunt, after reading a tweet about it. which is popular with the same au- Getting on Product Hunt’s home also saw a “huge spike” in the num- About 5,000 people downloaded An investor at Ludlow Ventures in dience. So he knows exposure can page can help a company generate ber of people who signed up for a it that week. Belsito — who now Detroit added ExpenseBot to Prod- be good for a startup. But he also web traffic, sales and interest from free trial, Cottrill said. works for Movable, a Brecksville- uct Hunt last fall, even though his knows that it rarely will launch a reporters and investors. Not to men- But he only knows of a few who based company that makes a wear- firm never invested in the Cleve- company to the next level. tion “street cred,” as Cottrill puts it. became paying customers. able fitness tracker — emailed some land-based company, which makes “It’s awesome, believe me, but it’s Of course, some types of compa- Looking back, Cottrill said he’s of them to ask how they learned software designed to automate the not the end-all-be-all,” he said.
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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 ‘Dawg Pounded’ returns for more Browns ‘therapy’
By KEVIN KLEPS of many others (five consecutive Canton native Don Jones is back Bleachers and brats [email protected] losses to end the campaign), Tyler as the latter character — which he ‘Dawg Pounded’ A scheduling conflict at Play- decided the return of his play called originally was about as eager to play house Square — “We’re pretty much “Dawg Pounded” is back and for a more uplifting plot. as Browns fans would be to sit Where: Kennedy’s Theatre, booking things a year or a year and a bigger than before, but the Cleve- “It’s a little more positive,” he through another season of Brandon PlayhouseSquare; and the Hermit half in advance,” Marshall said — re- land Browns’ 7-9 season in 2014 has said. “Last year, I had the mythical Weeden at quarterback. Club (located at the Hofbräuhaus) sulted in “Dawg Pounded” splitting called for a rewrite. ‘every Browns season’ and kind of “Once we broke the news to him, its 2015 run between two theaters. The two-hour production — made stuff up. Now, we mirror last he was very disappointed,” Tyler When: The eight shows at Kennedy’s There will be eight performances which features parody songs and year’s season.” said of Jones. “He did not want to be will be July 17, 18, 24, 25 and 31, at Kennedy’s, five of which will be looks back at some of the most dev- The play will touch on the crazy a Pittsburgh fan. But I tell you, he and Aug. 1, 7 and 8. The 12 Hermit held in July, before Browns mania re- astating moments in Browns history finishes at the start of last season nailed it. He comes out every night Club performances will be Aug. 15, ally sets in. — debuted in 2014 at Kennedy’s (the Browns’ first four games were and people are booing him.” 21, 22, 28 and 29, and Sept. 5, 11, “I’m wondering how that will play Theatre in Playhouse Square. This decided by three or fewer points), It’s all part of a festive atmosphere 12, 18, 19, 25 and 26. All shows are out,” Tyler said of the play starting summer, the play has doubled its plus the three-touchdown routs of that Tyler wants to more closely re- at 8 p.m. three weeks earlier than it did in schedule to 20 performances, and the Pittsburgh Steelers and Cincin- semble a pregame tailgate than a 2014. will be held at Kennedy’s and the nati Bengals. performance geared toward the Tickets: $25. Tickets for the “Dawg Pounded” will shift over to nearby Hermit Club, the 95-year-old It will also have a song about wine-and-cheese crowd. Kennedy’s shows are $22 if the Hermit Club for 12 Friday and landmark that is now part of the Johnny Manziel — sung to the tune “There were people looking for a purchased in advance from Playhouse Saturday shows, beginning with an Hofbräuhaus complex in Cleve- of “Johnny Angel” — but that is good time, drinking and having Square, and the VIP package at orange-carpet event on Aug. 15. The land’s theater district. where Tyler’s optimism turns to dis- fun,” said Playhouse Square events Hofbräuhaus is $45. Available at addition of the Hofbräuhaus to the Last year, the play — which is may. manager Heather Marshall, who at- tinyurl.com/lux6nzw (Playhouse written by Cleveland native Tim “We’re going to do the same song tended the play’s debut at schedule brings another twist — a Square shows) and Tyler and produced by Rita Bigham (that was featured in 2014), but total- Kennedy’s last August. “It’s like VIP “tailgate” package that includes — was a comedic look at the fre- ly different lyrics,” Tyler said of the you’re at a football game. You iden- dawgpounded.com. a half-liter of beer in a “Dawg Pound- quent heartbreak that so often is ode to Manziel. “We’re not hopeful tify with the emotions of, ‘I’m so up. ed” stein and a meal catered to the Facebook: pregame crowd (bratwurst and part of Browns fandom. The day af- anymore. We’re very disappointed.” I’m so down.’ ” facebook.com/dawgpounded ter “Dawg Pounded” wrapped up its Sadness is still a prominent theme Marshall said the first show drew fries). 10-performance run at Kennedy’s in the Tyler-Bigham production. a crowd of about 90 at the 100-seat Twitter: @DawgPoundedPlay “It’s going to be a wild environ- last September, the Browns began a The main characters — Paul theater, and each of the nine shows ment,” Tyler said. season in which they won six of their (played again by Tom Hill) and Otto that followed sold out. General admission for the 20 first nine games and briefly were in (Greg Mandryk returns in the role) “We heard nothing but positive land, and we understand how heart- shows is $25, and the Hofbräuhaus first place in their division. — are taunted by their nemesis, feedback from everybody,” she said. breaking the Browns can be, and VIP package is $45. The Hermit Club And even though the season had Pittsburgh Pete, as they watch “The audience seems to really enjoy sports can be. I think people found it will give the play the potential of in- a second half that followed the script Browns games at a local sports bar. it and identify with it. We’re Cleve- very relatable.” creasing its attendance to 130 per That’s one of Tyler’s biggest fo- night. cuses. The 63-year-old Browns fan “They’re going to erect bleachers hatched out the plan for “Dawg in the back of the theater to get more Pounded” during a three-hour flight, people in,” Tyler said. which he said started with him bat- “Dawg Pounded,” as it did in 2014, tling a heck of a case of writer’s will conclude in an uplifting manner. block. And unlike most of the “You know how us Browns fans Browns seasons he has followed, he are: ‘We’re really going to do it next was pleased with the end result. year,’ ” Tyler said. “We think it went very well,” Tyler The play’s creator called the first Saving today said. “The feedback we got, people round of performances “surprising- enjoyed it. They wanted something ly good.” to laugh about. And like any Browns diehard, he “We call it therapy for Browns added, “We’re going to give it anoth- with a Great Rate CD! fans.” er try this year.”
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1Annual Percentage Yield (APY) is accurate as of date of publication and is subject to change without notice. The minimum balance to earn the stated APY for the 11-month CD is $500. The minimum balance to open the account for the 11-month &'LV7KHLQWHUHVWUDWHUHPDLQVÀ[HGXQWLOPDWXULW\$SHQDOW\PD\EHLPSRVHGIRUZLWKGUDZDOVEHIRUHPDWXULW\)HHV could reduce earnings. The promotional CD must be opened with new money not currently on deposit with the Bank. The bank is not responsible for typographical errors. Offer may be withdrawn at the discretion of the bank at any time. 1HZ JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Community banks rebounding in big way Sandusky-based Civista Bank is setting records for profits; other local institutions share enthusiasm By JEREMY NOBILE ter the Dayton market and helped Jacques, Boynton D. Murch Chair 2015. Both banks attribute the profit [email protected] push the company’s total assets to in Finance at Baldwin Wallace Uni- Following the first quarter, net growth to lending activity. Neither about $1.4 billion. Additional acqui- versity and a former financial econ- income was up 2.4% over the like is pulling out of reserves. Despite rising costs and the im- sitions are a possibility, although omist with the U.S. Department of period last year, said Thomas Fras- However, stronger asset quality pact of modern banking regulations none are immediately in the the Treasury. er, president and CEO at First Fed- means banks likely will feel less that tend to hit smaller institutions pipeline. “But that has to be balanced eral Lakewood, which has about compelled to put more money into the hardest, many community The Dayton customer base is a against the cost side of structure, $1.56 billion in total assets. That reserves to cover loan loss. banks are seeing their strongest strong complement to its legacy like the increased regulatory bur- growth comes as interest income Overall loan delinquencies are profit growth since the recession, Northeast Ohio operations and its den,” Jacques said. falls and noninterest expenses in- falling, too. thanks to a gradually improving “sticky, loyal” customers, Miller Jacques said while the national crease. This quarter, Portage Communi- economy in Northeast Ohio. said. economy has seen somewhat tepid Overall income growth was flat in ty Bank hasn’t injected anything Sandusky-based Civista Bank, for The business model, which Miller growth overall this year, the second 2014 over 2013. But Fraser said the into loan reserves, compared with instance, is bigger and more prof- describes as applying a community half is expected to be robust, which bank is projecting 10% growth over $30 million placed in there at the itable than ever. banking approach to larger mar- will create even more loan demand 2014 by the end of the year. same point last year. While that might be expected of a kets, is to gather deposits around its and further push up net interest in- “We feel good about credit per- “I think it’s definitely positive bank that traces its roots back more largely rural hometown and put comes. formance, and the local economy and the continuation of a turn- than 130 years, it’s a significant those dollars to work via loans in He also said the Federal Reserve seems to be moving along at a de- around,” Coe said of the statistics turnaround from five years ago, more vibrant areas like Akron, is expected to raise interest rates cent pace,” Fraser said. on FDIC-insured community when the lingering effects of the Dublin and, now, Dayton. later this year, which will further ex- “We think the underlying trends banks. downturn led to loan losses that With Ohio’s economy improving pand net interest margins. are favorable. “I think 2015 will continue to be slashed revenues. — although less quickly in rural ar- “If we’re facing any challenges, every bit as good as 2014, plus,” he “You’ve got to grow to survive,” eas, Miller says — the ongoing strat- said. Turnaround continues it’s on yield of earning assets be- said Civista chairman and CEO egy, he said, is “not rocket science.” cause of the prolonged rate envi- “And the reason is because small James Miller. “There will continue to be pres- Civista Bank is enjoying a surge ronment.” business owners are feeling more “And we knew the recession sure on interest margin simply be- of income growth this year. And Portage Community Bank in confident. They’re willing to take a would eventually end and things cause of this rate environment,” while the growth varies, other com- Ravenna, which has about $285 little more chance now. They’re would come out right.” Miller said. munity banks in Northeast Ohio are million in assets, logged 3.5% in- willing to borrow. And they did. Net income in 2014 “There is not much opportunity echoing a story of cautious opti- come growth in the first quarter “And I think that’s going to con- jumped more than 54% in 2014 to reduce interest expenses further mism marked by a solid start to over 2014, said CEO Richard Coe. tinue through 2015.” from 2013, to $9.5 million from $6.1 and increased competition for million. First-quarter income is up good loans will keep loan rates in 34.5% this year over the like period check.” in 2014. He added, “The key will be UPCOMING CUSTOM SECTION But an improving economy, searching for good loans, don’t do stronger asset quality and hunger stupid things just to put loans on In partnership with: for new loans aren’t the only rea- your books, providing other prod- sons Civista is growing. ucts and services to generate fee in- The bank has been on an up- come and work to keep expenses swing since 2010, which was pre- under control.” ceded by income loss and some lay- offs. But a rebound came, sure enough. Indicators of a strong 2015 Not only are community banks overall seeing better business that Not ‘rocket science’ HR in many cases is outpacing the The bank began hiring more loan growth of their larger counterparts, R ESOURCES, production staff and eyeing other the strong activity at small and mid- changes and acquisitions as rev- size institutions so far this year GROWTH AND enue picked back up. bodes well for the future. This year saw many more According to the Federal Deposit PERFORMANCE changes. In March, Civista rebrand- Insurance Corp., community banks ed from its First Citizens moniker, led the industry in first-quarter creating separation from other profit growth. banks with “citizens” in the name, Aggregate net incomes rose Miller said. (Its holding company, 16.4% from a year ago with increas- First Citizens Banc Corp, became es logged in both net interest and Civista Bancshares Inc. in May.) non interest income. This March also saw Civista’s ac- Comparatively, that’s nearly quisition of Dayton-based TCNB three times the growth seen in non- Financial Corp. and its banking community banks (6.1%). Aggregate subsidiary, The Citizens National growth among all FDIC-insured Bank, in an all-cash transaction banks was just under 7%. valued at $17.2 million, or $23.50 “Things are clearly improving for per share. the small community banks on the The deal enabled Civista, which revenue side, and we expect them now has 28 locations in Ohio, to en- to continue to improve,” said Kevin STAY CONNECTED WITH CRAIN’S Are you an HR expert? TWITTER: @CrainsCleveland Have your voice heard in this custom section! FACEBOOK: Facebook.com/CrainsCleveland The HR Leadership group of Northeast Ohio and Crain’s publishes an annual LINKEDIN: linkedin.com/company/crain’s-cleveland-business INSTAGRAM: instagram.com/crainscleveland section on the strategic role HR plays in corporate leadership and growth. DAILY E-NEWSLETTERS: CrainsCleveland.com/register NEWSLETTER SCHEDULE ISSUE DATE: August 3 • RESERVE YOUR SPACE BY: June 29 WEEKDAYS: Morning Roundup and daily headlines ARTWORK DUE: July 6 MONDAYS: Real Estate Report and Sports Business Report TUESDAYS: Health Care Report WEDNESDAYS: Manufacturing Report THURSDAYS: Small Business Report Reserve your space today. FRIDAYS: Shale and Energy Report Contact Nicole Mastrangelo at 216-771-5158 or [email protected]. 20150622-NEWS--10-NAT-CCI-CL_-- 6/18/2015 4:27 PM Page 1 10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Cage it When President Lyndon Johnson signed the High- er Education Act 50 years ago, he said the following at the signing ceremony, held at his alma mater Southwest Texas State College: “The President’s signature upon this legislation passed by this Congress will swing open a new door for the young people of America. For them, and for this entire land of ours, it is the most important door that will ever open — the door to education. And this legislation is the key which unlocks it.” The HEA boosted federal aid for colleges and financial help for students, including work-study programs, scholarships and low-cost loans. For FROM THE PUBLISHER millions of young Americans, the provisions of the HEA truly provided that symbolic key to a better life. In the five decades since, the Higher Education Act has been reauthorized nine times, and as is the case The real power of LeBron James all too frequently with government regulation, the HEA has bloated into a beast. I go back and read LeBron James’ “I’m mistic, celebratory and forward-looking. But when a superstar, the world’s best, In 1965, the legislation was 58 pages. Today, it is Coming Home” Sports Illustrated essay We simply feel better about ourselves leaves, realizes what he’s left behind and 432 pages. pretty regularly. and our future. then returns, well, that’s not only know- As the act has expanded, so have the higher-edu- I carry a copy in my wallet It’s difficult to quantify this ing it in your brain, it’s confirming it in cation regulations, directives and mandates from the as if it were a historic docu- kind of stuff, but that survey your heart. ment, because I believe it kin- from TNS Global from earlier LeBron said he came home to raise his Department of Education. Those equal about 2,000 da is. this year is perhaps most family in his hometown, that he has an pages of text. When the darkness moves telling. obligation to lead and be a mentor and Colleges and universities now stagger through in, literally during the cold The percentage of locals that he wants to make a difference. “This literally hundreds of pages of regulations on nights of winter or figuratively who would recommend is what makes me happy,” he wrote. accreditation, the definitions of “credit hour” and on the bad days in business or Cleveland as a visitor destina- In other words, LeBron James, who “gainful employment,” their stewardship of federal life, it is a thousand words of tion has jumped from 34% in could live, work and play anywhere in funds and scores of other topics. sunshine. JOHN 2013 to 54% in 2015. For a shift the world, realized that he just wanted to If that were not troublesome enough, colleges I don’t think there are many that astonishing, something be … like you and me. must also comply with rules that have nothing to do natives of Northeast Ohio who CAMPANELLI special must have happened. In many ways, LeBron’s emotional with educating young people. These include can read it aloud without a LeBron’s return is certainly words in that essay accomplished the requirements on voter registration, file-sharing speck of something getting in their eyes. not the only reason for this palpable shift same magic for the region that his on- We’ve just seen, again, the amazing the-court poetry did for the Cavaliers. policies, vaccinations and Selective Service. Colleges in attitude. power of LeBron James the player, Downtown development, the RNC, We are in uncharted territory. are required to disclose their policies on candle putting a motley collection of role play- our hospitals, our arts, our food culture, Am I giving too much credit to the usage in dormitories. And when students travel ers on his shoulders and carrying them vibrant neighborhoods, the improving ghost-written words of a millionaire pro overseas to study or participate in athletics, colleges to the edge of a world championship. economy — they all deserve a share of athlete? Maybe. are mandated to gather crime statistics on any What’s arguably more amazing — and the credit, but LeBron provided some- But I also know how those words location that has an agreement with the school. that’s saying a lot — is the power of Le- thing different. He told the world, elo- made me feel that day last July and how (At a recent Crain’s event, one local former college Bron James the inspirer. quently and passionately, what we al- they make me feel when I read them to- president described calling a police department in In the 11½ months since he an- ready felt. day. Italy to request crime statistics for a hotel. The officer nounced he was coming home, some- The world was shocked when he chose I am inspired. on the other end of the line just laughed.) thing has changed here. to come home. We nodded our heads. And what can an inspired person, an The feeling about Cleveland, the out- inspired workforce, an inspired city or “Colleges and universities find themselves We’ve all known, in our brains, that look, the conversations — from both in- region do? enmeshed in a jungle of red tape,” concluded a Northeast Ohio is an incredible place to side the region and out — are more opti- live and work. We’re here for a reason. Anything. recent report from the nonpartisan Task Force on Federal Regulation of Higher Education, whose members included Hiram College President Emeritus Thomas V. Chema and former Ohio State President William E. Kirwan. The stifling overregulation of higher education has LETTER TO THE EDITOR done more than frustrate administrators. It’s The two major trade deals that Presi- One part of TPP sets up an interna- Perhaps the reason why these agree- beginning to break the bank. After an analysis, Van- dent Obama is hoping to push through tional court that takes complaints ments are kept under lock and key and derbilt University figured that it spent $150 million Congress — the Trans-Pacific Partner- foreign companies have against our the public is forbidden from viewing — 11% of its expenditures — on complying with fed- ship (TTP) and the Transatlantic Trade laws. them is that buried in the myriad pages eral mandates in 2013 alone. and Investment Partnership (TTIP) — Our laws are the result of the democ- is a provision that formally prioritizes Who pays for that? Already debt-laden students, of are not only bad ideas for our economy, ratic process. They should not be modi- foreign corporate rights over the sover- course, with higher tuition, reduced services and but also for our national sovereignty. fied or eliminated in order to bulk up for- eign rights of states to govern their own thinner course offerings. If passed, these agreements will let eign corporations’ bottom lines. affairs. Congress will again take up HEA reauthorization foreign corporations dictate business These massive and mysterious trade Congressional representatives can and financial regulations, food safety deals allow foreign corporations that do stop this madness and protect our sover- later this year. It’s time for lawmakers to slash laws, taxes, and other regulations to our not like specific laws to sue at the World eignty by voting no on giving President needless regulations, to simplify wherever possible state government. Bank tribunal. Obama fast-track authority to negotiate and to again find that symbolic key. Sound crazy? It’s TPP and TTIP. And damages awarded to the foreign secret deals. We need to lock up the beast. The agreement is about a lot more corporation by the tribunal would come — Fred Welty than just trade. out of our pockets. Chardon 20150622-NEWS--11-NAT-CCI-CL_-- 6/18/2015 2:50 PM Page 1 JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 CRASH continued from page 1 pied the islands, forced the natives Space Museum’s long-held view decades, and had become con- to build a makeshift railroad on that Earhart crashed elsewhere, vinced that the plane had landed or which to drag the plane across the leaving her plane under 18,000 feet THANKS FOR AN crashed in the Marshall Islands. island so it could be taken away by of water in the Pacific. Specifically, Endrikin Island, a tiny ship. “The initiative by Parker Han- spec of land in the Marshall’s Mili Sure enough, the searchers found nifin may, or may not, silence the Atoll. The spot is in the middle of old railroad ties and other evidence incorrigible conspiracy theorists the vast Pacific, near the equator right where they were told the rail- and achieve public ‘closure,’ but at INCREDIBLE and about 3,000 miles northeast of road was built. Soon they had geo- least the responsible authorities in Australia. Not only did the spot log- physicists with magnetometers and Washington, D.C., might be able to ically match an area where Earhart metal detectors at work. close their dusty files,” reported the might have run out of fuel, based on “We searched for a week and Show News publication from the gi- SEASON her last radio contact, but there found about half a dozen pieces we ant Paris Air Show, where the latest were eyewitness accounts from is- think are off of her airplane,” Jeffery search results were being discussed landers that Harris found. They said. last Monday, June 15. claimed to have seen Earhart’s It added, “If Parker’s public-spir- plane land on the island. Down to the science ited sponsorship and technical Jeffery was, if not convinced, cer- analysis proves the Museum’s un- tainly intrigued, and he thought the What they found certainly does supported assertion to be 18,005 effort to follow Harris’ lead was not look like an airplane. It would feet in vertical error, not to mention worth Parker’s consideration. take someone familiar with aviation over 850 miles horizontally askew, “So I put together a proposal and to know that the small pieces of it will have been money well spent.” sent it to Cleveland, to a senior vice metal the expedition found came president there. On Christmas Day, from an aircraft. he sends me a message that said They are bits and pieces that Ending a mystery? PROUD PARTNER OF THE CLEVELAND CAVALIERS were torn off the plane as the ‘cool,’ ” he said. Parker plans to complete the elkandelk.com/cavs Japanese and their island laborers analysis of the parts and announce An eventful week wrestled the Lockheed through the its results sometime later this year. thick jungle, Jeffery said. A few frag- But the parts are the most that any But not quite cool enough. Not at ments of aluminum, two corroded searcher has found so far, and that point, at least. identification plates from a part or everything adds up to the site being The matter went all the way up to aircraft component, and a piece of where Earhart landed or crashed af- Parker chairman and then-CEO what appears to be a wheel well. ter running out of fuel. Don Washkewicz, who wanted to None of them scream “Earhart” “Having talked to some of the lo- know if Parker had a direct connec- or even “Lockheed,” but science is tion to the plane. Jeffery told him he unlocking where the parts came cals who have ancestors who were did not know, but would find out. from nonetheless. there — some of them were on the Weatherhead Executive Education As it turned out, Harris’ team had a Metallurgists and chemists are trip with us — and having seen parts list and, sure enough, Parker hard at work to determine if what firsthand how this would have hap- parts were on it. was found matches what was used pened,” Jeffrey said. “Having seen Upcoming Courses the railroad ties, the (railroad) axels Jeffery was soon on a plane. in U.S. planes of the era. Jeffery said June 18 - Drawing Ideas and Modeling and finding these parts that should- On Jan. 22, Jeffery, Harris and data from the aluminum giant, Al- Change: Visual Thinking For Managers Spink, along with four other Earhart coa, should help to show if the met- n’t have been there — and they researchers, rented a 75-foot ship al is the same type used to make were all found along this corridor June 23-24 - Manager’s Toolkit for for their base. (It was already in the Lockheed planes during Earhart’s that’s only about 50 feet wide. … I Delegation, Accountability and Results area, scouting surfing locations for time. If it is, that will be nearly con- have good confidence.” July 8 - Introduction to Emotional a Google executive.) They found the clusive proof, since few other U.S. But, he added, he and the world woman who owned Endrikin Island planes were in the area back in the will wait for the scientific results Intelligence in the Marshall Islands’ matriarchal 1930s, Jeffery said. and interpretation of the data by July 9 - Resilience: Thriving Through hierarchy, and for a few chickens There’s also the read paint on Harris and other researchers before Uncertainty and Change and some rice, she gave them per- one of the parts. If researchers can the case is closed. If it is, Parker will mission to search, Jeffery said. match that to the paint used on have played a significant role in July 30 - The Coach Approach: Initiating So, how long did it take to poten- Earhart’s Electra, that will also help solving one of the 20th century’s — Dialogues for Effective Outcomes tially wrap up a 78-year search for to prove their case. and aviation’s — greatest mysteries. arguably the world’s most famous “But the real home run would be There could be a sad element to http://weatherhead.case.edu/ aviator, once the team began look- to get some information from the the story, though. executive-education/catalog ing on Endrikin? About a week. metal ID plate — that could posi- The same Marshall Islanders who Islanders took them to not only tively identify it as Earhart’s plane,” claim to have seen Earhart land also the spot where they said the plane Jeffery said. reported that the Japanese took her came down on the shore of the is- If Parker and its sponsored re- and her navigator, Fred Noonan land, but they also showed them searchers are right, they’ll be disap- away, where they presumably died where the Japanese, who then occu- proving the U.S. National Air and in captivity before or during World 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com Complimentary In-flight Wi-Fi Publisher: John Campanelli Art director: Rebecca R. Markovitz Web/Print production director: ([email protected]) ([email protected]) Craig L. 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Hillyer Audience development director: G.D. Crain Jr. Founder (1885-1973) [email protected] ([email protected]) Eric Cedo ([email protected]) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20150622-NEWS--12-NAT-CCI-CL_-- 6/18/2015 12:44 PM Page 1 12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 GOING PLACES SAGEMARK CONSULTING TECHNOLOGY JOB CHANGES PRIVATE WEALTH SERVICES: Jim SHAKER: Jennifer Wason Jump to financial planner. to communications specialist. ARCHITECTURE FABO ARCHITECTURE INC.: Bob HEALTH CARE BOARDS Matakovich and Katie Chew COMS INTERACTIVE LLC: to architects; Christopher Abbott Christine Vetrano to senior vice CLEVELAND METROPOLITAN BAR to project manager; Kyle Davis president, professional services. to project coordinator; Joe Evans ASSOCIATION: Anne Owings Ford METROHEALTH: Jerry T. Klue to senior CAD tech. to president; Richard D. Manoloff to director and chief, protective to president-elect; Darrell Clay RDL ARCHITECTS: Michel services. to vice president; Joseph N. Gross Wildermuth to senior project to treasurer; Majeed G. Makhlouf manager; Nora Hoxha to project WE’VE BEEN NAMED A LEGAL to vice president, diversity and designer; Samantha Jones BENESCH: Kevin J. Kessinger inclusion; R. Scott Heasley to vice ® to interior designer. to of counsel, real estate practice president, membership; Rebecca GO-TO LAW FIRM group. Ruppert McMahon to secretary. BY SOME OF THE TOP COMPANIES CONSTRUCTION LITTLER: Patricia Krewson and CHAPLAIN PARTNERSHIP: Scott IN THE COUNTRY. AGAIN. DONLEY’S: Jeff Dentzer to regional Ryan Morley to shareholders. Robinson (Schneider, Smeltz, Ranney vice president, business development; & LaFond PLL) to president; Barbara Jeff Anderle to director, marketing MANUFACTURING Hoekstra to vice president; Luisa For the 12th consecutive year, Vorys has been recognized as a and communications. SERVICE STORAGE Barone Gantt to secretary. Go-To Law Firm® in American Lawyer Media’s survey of in-house INTERNATIONAL INC.: Tim Bernot counsel at the top 500 companies in the country. Less than one FINANCE SERVICE to president. CIUNI & PANICHI INC.: Brian Aiello AWARDS percent of all law firms in the U.S. are recognized with this honor. and Sean White to staff accountants. And in the past two years, 23 companies listed Vorys as their firm NONPROFIT HEALOGICS INC.: Lisa Osborne GABRIEL PARTNERS: Frank Ewing KOINONIA: Polly Mix to behavior (University Hospitals Elyria Wound of choice for specific practice areas. to partner and assistant general support manager. Care Center) received the 2015 Mary counsel; Reggie Garcia, Matthew STARK COMMUNITY Cook Nurse of the Year Award. Zavodnik, Alexandra Cotten, FOUNDATION: Callie A. Livengood Hannah Fischer, Darren Cole, LAKE COMMUNICATORS: Phil to director, marketing and James Gruber, James Morehouse, Stella (Effective Training communications. Maria Mellody, Mici Chase, Amber & Communication Inc.) received an Schydzik, Dimitrius Lovett, Lydia REAL ESTATE Apex Award for Copywriting. For more information, visit vorys.com. Chiro, Mathew Virden, Kelsey TRANSACTION REALTY: Dustin OHIO ASSOCIATION FOR ADULT Vorys, Sater, Seymour and Pease LLP Bascombe, Kyle Weissberg, Sun to sales associate. AND CONTINUING EDUCATION: Gabrielle Giordano, Jessica Nolan Bonnie Entler (Seeds of Literacy) 200 Public Square, Suite 1400, Cleveland, Ohio 44114 106 South Main Street, Suite 1100, Akron, Ohio 44308 and Marina Frandanisa STAFFING received the Sharon Stubbs-Davis to associates; Madi Maruna AREA TEMPS: Camille Jarrett Award for State Administrator of the to marketing coordinator. to sales coordinator, Cleveland. Year. Columbus Washington Cleveland Cincinnati Akron Houston Pittsburgh Send information for Going Places to [email protected] MEMBER FDIC 20150622-NEWS--13-NAT-CCI-CL_-- 6/18/2015 3:38 PM Page 1 JUNE 22 - 28, 2015 CRAIN’S CLEVELAND BUSINESS 13 Technology is a fast-moving field, one that includes a variety of specialties. In Northeast Ohio, there are countless individuals spending their time thinking WHO TO WATCH up the next best thing or building upon and efficiently implementing current technologies. In this section, we highlight just of few of those who are making a mark IN TECHNOLOGY in the field of technology. MONIQUE WILSON FELIPE GOMEZ DEL CAMPO Executive director, Center for Founder and CEO Information Technology Training FGC Plasma Solutions Corporate College, a division of Cuyahoga Community College Felipe Gomez del Campo started a com- pany that has raised more than $130,000 in funding and recently won a top regional A little less than a year ago, Monique Wil- prize in the Energy Department’s National son set off on a new career path — and put Clean Energy Business Plan Competition. the Center for Information Technology He’s hired a couple of employees, and this Training at Corporate College on a new Wednesday, June 24, his company will com- course. pete for more federal funding in the Energy Wilson was recruited in July 2014 to the di- Department’s national competition in vision of Cuyahoga Community College from Washington, D.C. Hospital Corp. of America, where she was se- Not bad for a 22-year-old who is still work- nior project manager of supply chain at the ing to complete his undergraduate degree at world’s largest for-profit operator of health Case Western Reserve University. care facilities. She previously worked in IT “He’s a very unique mix of ambitious, ca- management positions at other large compa- pable, humble and an outstanding listener,” nies, including Xerox and Bridgestone/Fire- said Mindy Baierl, the commercialization stone. program manager of the Great Lakes Energy While she enjoyed corporate life, Wilson If you weren’t working in the technology If you weren’t working in the technology Institute at CWRU and one of Gomez del also had a passion for education, having taught sector, what would you be doing and sector, what would you be doing and Campo’s mentors. for eight years as an adjunct instructor at the why?: “I’ve worked in IT since I was 19, so why? “I think I’d want to be in health care or “All I can say is he is an absolute delight University of Phoenix and Volunteer State it’s kind of hard to say, but I guess I’d be a some sort of public policy role,” Gomez del to work with. And I think most people who Community College in Tennessee. Her bache- professional dancer. I want to dance!” Campo said. “I’m also interested in seeing lor’s and master’s degrees are in computer in- come into contact with him feel the same what are the best practices to promote en- formation systems, but she earned her doctor way.” trepreneurship.” of management degree in community college Robert Peterson, president and CEO of Gomez del Campo’s passion project — policy and administration from the University Corporate College, said the Center for Infor- developing a method of injecting fuel into jet of Maryland University College. mation Technology Training already has engines that improves safety and decreases mits his company is “very far away from a “Education increasingly became a major made “a lot of progress” under Wilson’s di- fuel consumption — started as a high school product launch.” part of my life,” Wilson said. rection. He said she “quickly identified a need science fair project for the Weston, Fla., na- But as Gomez del Campo and his col- When she interviewed for the position at for a fresh look at the IT training programs,” tive. It led to a full scholarship at CWRU — leagues — CWRU student Joe Scott, FGC Corporate College, Wilson said she was “im- with the goal to “make sure the programs where Gomez del Campo has juggled his Plasma Solution’s chief financial officer, and pressed by the energy and the enthusiasm” aligned with the needs of the business com- schoolwork, his company and being a mem- recent CWRU graduate Joe Heebner, the for ramping up the scope of the school’s IT munity.” ber of the swim team — and a product that company’s vice president of research and training offerings. The school already has be- Her “high-level IT background at Fortune Baierl and others believe could revolution- development — work to perfect their tech- gun to do just that, with new computer net- 500 companies,” coupled with her teaching ize the airline industry. nology, the soon-to-be senior plans to earn working and programming educational experience, “offered a unique perspective He originally looked at the technology his master’s in aerospace engineering. After tracks and plans for expansions into areas in- and skill set” for Corporate College as it from a research perspective, but once he got that, he’d like to get his Ph.D. cluding data analytics, cloud computing, the strengthens IT training, Peterson said. to CWRU and worked with the entrepre- He’s even met the president, thanks to his Internet of Things and cyber security. “She’s looking at where the puck is going, neurial-minded professors there, he said he participation in a panel that was part of the Wilson said the Corporate College focus is not where it is,” he said, using a popular became “motivated to pursue it as a com- White House’s celebration of entrepreneurs on preparing students for what she calls jobs sports metaphor. mercial endeavor.” on May 11. There, Gomez del Campo re- with “middle skills” — those requiring more Wilson had never been to Cleveland before By taking that approach, “your access to ceived advice from three of the judges on than a high school degree but less than a bach- she interviewed for the Corporate College job. capital is improved a lot,” Gomez del Cam- “Shark Tank.” The sharks liked his one- elor’s degree. So, she said Corporate College She was accustomed to the more mild winters po said. minute pitch, along with his responses in a wants to be able to prepare data analytics stu- in her former home, Tennessee, but says she As one of five regional winners who will question-and-answer session that followed, dents who can, for instance, produce charts, has become more acclimated to Cleveland’s compete in the Energy Department’s na- Gomez del Campo said. graphics and data visualizations for re- climate — especially after buying a coat tional competition this week, he has a That experience means he’s no longer el- searchers working on medical genome infor- “that’s actually made for a winter.” chance to receive more funding. The winner igible to be on the popular ABC show, but it mation. She gets back to Nashville occasionally to of the June 24 event will receive a $50,000 seems as if he’ll be just fine. Corporate College plays a critical role for see her 2-month-old grandson. In her free prize, plus services to help bring their tech- “Except for the winters, I wouldn’t change Northeast Ohio employers, Wilson said, by fill- time, Wilson said she enjoys all varieties of nologies to market. my time here for anything,” Gomez del ing gaps in a talent pipeline that traditionally dancing, including ballroom dancing, and Because of the complexities involved in Campo said. “It’s the perfect place to launch th overproduces students with bachelor’s and researching family ancestry back to the 14 commercializing a device that would be in- a business, and I didn’t plan it like that all.” graduate degrees. century. — Scott Suttell stalled in a jet engine, Gomez del Campo ad- — Kevin Kleps 20150622-NEWS--14-NAT-CCI-CL_-- 6/18/2015 3:12 PM Page 1 14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 JANE ALEXANDER LUIS CABRERA Chief information officer ServiceNow administrator, Cleveland Museum of Art IT application support Forest City Enterprises Inc. As a lifelong admirer of the arts and some- one who stumbled into — and discovered a Luis Cabrera doesn’t work in finance or passion for — a career in technology, Jane real estate at Forest City Enterprises Inc., but Alexander couldn’t think of a more perfect his work is crucial to the operation of the job than the one she holds now. In her role Cleveland-based public real estate compa- as the Cleveland Museum of Art’s chief in- ny. formation officer, she’s been tasked with im- He works on ensuring its enterprise soft- proving the visitor experience by augment- ware system called ServiceNow does what ing the museum’s world-renowned staffers in its procurement, treasury and hu- collection with modern technology. man relations need for it to do. As she sees it, it couldn’t be a better fit. Cabrera, who earned a bachelor’s degree “I’m living in a dream right now,” Alexan- of fine arts in digital arts from Bowling Green der said. “It’s incredible.” State University, switched to the information She added, “Sometimes, you just need to technology department in 2014 after work- walk around downstairs and be in these gor- ing as a senior multimedia designer for For- geous galleries. Even on the worst day of the est City’s communications department. year, you have gorgeous art around you.” If you weren’t working in the technology The change meant he was able to capital- If you weren’t working in the technology Alexander, who has also held jobs at the sector, what would you be doing and ize on the interest he had developed in more sector, what would you be doing and Great Lakes Science Center and Case West- why? “Since I thrive in fast-changing high- challenging technical aspects of computer why?:“I would be pursuing a career in art or ern Reserve University, knows the sensitivi- pressure environments and love travel it and web design. something few people would expect from ty of her job. Art, as she describes it, is “emo- seems obvious … starting point guard for “It’s similar but I’m solving a lot more me, running a small restaurant or being a tional, and you don’t want technology to get the Cavaliers.” problems and making things more stream- chef.” in the way of that.” That said, she’s led a pro- lined,” Cabrera said. “It makes you think dif- ject to transform the art museum into one of ferently, more technically, about things.” the most technologically advanced muse- active experience allows visitors to shape He was also attracted to the ability to work ic and was in the Cleveland Bridge Builders ums in the world without compromising the their own tours and explore these works of in a role that directly impacts the business class of 2013. integrity of its collection. art like never before. and helps people because they use the soft- A native of Lorain who now lives in Lake- “Leadership has been behind it all,” There’s also ArtLens — the museum’s app ware on a daily basis. wood, Cabrera said he was “enchanted” by Alexander said. “When you have that, you for iPhone, iPad and Android. The interactive To make the switch, Cabrera had to obtain computer games as a kid. can do anything. It’s not technology for tech- map in ArtLens, for instance, uses iBeacon multiple software certifications. He has han- That grew into learning how they worked nology’s sake. It’s not about that at all. It’s technology that helps guide visitors through dled the transition well, according to Mary to make his own, which led him to graphics about building experiences for people who the museum and discover works of art. She at- Adams, Forest City’s application support design and computer graphics. are coming from all over the world.” tributes much of the museum’s technological manager, who supervises Cabrera. On the side, he is working on a computer Augie Napoli, the museum’s deputy direc- advances to the hard work of her staff, which “He’s done a fantastic job learning to use game with a group of people he met online tor and chief advancement officer, described she said is comprised of some of the best pro- the technology and how to bend the tech- and also participates in several local groups Alexander as an energizing leader, and that fessionals with whom she’s ever worked. nology to do what we need it to do,” Adams such as Cleveland Game Developers and the working with her is like “drinking water from “This is the job to have right now,” she said. CLE Game Co-op. a fire hose.” said. “We get to do what no one’s doing. To “His sense of dedication to Forest City and He also volunteers with TechPint, a tech- “She sees the possible where no one else me, that’s so thrilling.” sense of customer service are outstanding. nology networking group, and has been a would see it from a technological perspec- As a native of New York, Alexander said He really cares about helping people.” volunteer teacher at tech-related workshops tive,” Napoli said. she had a bit of culture shock when she ar- At Forest City, Cabrera is co-chair of its at Esperanza and the Techie Club at Mound Alexander’s largest achievement was the rived in Cleveland in the mid-1990s. But Young Leaders group, which he was in- Elementary School in Cleveland. launch of Gallery One — a gallery that since, she said she’s “drank the Kool-Aid.” volved in founding to allow employees to ap- “I can pin some of my success to taking blends art and technology. The gallery in- She said, “We have access to things you ply their professional skills to community advantage of these kinds of opportunities,” cludes the largest multi-touch screen in the would never be able to access in New York, needs. Cabrera said. country and displays more than 4,100 ob- and they’re world class.” He also belongs to UNIDOS, a year-old re- “For me, it’s a way of giving back.” jects in the museum’s collection. The inter- — Timothy Magaw source group for associates who are Hispan- — Stan Bullard Crain’s 2015 program nominations Nominations are now open for all of Crain’s Cleveland Business’ 2015 pro- grams. Deadlines for each of the programs are: )! ҃) ■ CFO of the Year Awards ■ Who to Watch in Manufacturing Nomination deadline: July 10 Nomination deadline: Aug. 24 &" "" ("!" ■ General & In-House ■ Who to Watch in Counsel Awards Marketing/Creativity !+&!! 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[email protected] 234.380.4852 1938 Euclid Avenue, Suite 200 Cleveland, OH 44115 | 216-965-0630 | allegrorealty.com 20150622-NEWS--15-NAT-CCI-CL_-- 6/18/2015 3:13 PM Page 1 JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 Experience the Power of Being Understood® If you weren’t working in the technology sector, what would you be do- ing and why?: Iyer said he’d be a writer, probably covering politics or social topics. Currently living in Macedonia with his wife and two daughters, he often spends his spare time reading both fiction and nonfiction materials. He’s dab- bled in blogging, penning personal thoughts on everything from sports to poli- tics and observations on current events. But, he says that would never com- pare to the satisfaction of running his first business. “The building of the organization is really the most rewarding,” Iyer said. “I’m very excited by where we’re at and where we’re going.” GANESH IYER friendly and modest yet direct in conversation — but he’s far from Co-founder, president meek. Vertex Computer Systems “He’s extremely aggressive and very tech savvy. He wants to get Ganesh Iyer calls the profession- things done yesterday,” said Venkit als at Vertex Computer Systems “so- Raman, Vertex CEO. “He just has lution scientists.” that kind of personality.” While Iyer studied computer en- He thinks quickly and “on his gineering, he’s always had the drive toes,” Raman said, and encourages of a businessman. He dreamed of free thinking of his “solution scien- running his own business since tists” to generate unique solutions childhood. It just so happened he to complex problems at a fast clip, When you trust the advice you’re getting, you know excelled in computer technology. whether that’s moving entire digital So it was only a matter of time archives or simply reengineering a your next move is the right one. until his two passions converged current IT operation to make it with the formation of Vertex, a com- more efficient. It’s how the firm is pany he co-founded and currently positioning itself not only as a con- serves as president. sultant for clients, but a business That’s what you can expect from McGladrey: a team “Becoming an entrepreneur was partner. just always there in my life,” Iyer But his people skills result in the that can help middle-market executives navigate the said. “I was thinking about business relationship building that Raman even in my teen years. It’s exciting, said is equally behind Vertex’s surg- opportunities and challenges they encounter here not just because of the fact that be- ing growth. Today, the firm prides ing an entrepreneur comes with a itself not only on crafting IT solu- in Ohio, across the country or around the world. lot of risk, but also it comes with a tions, but proactively offering lot of reward.” unique workarounds to issues that Those rewards are apparent now. a company might’ve never even In other words, anywhere their businesses take them. Vertex traces its roots back to considered yet. The term “thought 1989, Iyer said, but its current incar- leader” comes up often when talk- That’s the power of being understood. nation, which is headquartered in ing about Iyer. Twinsburg, was established in 2001. “He’s a leader who is so passion- The company — which has ate about everything that goes into grown from being a startup in 2001 the organization,” Raman said. To learn more about how McGladrey can help your to more than 300 employees today “He’s detailed where he needs to be — crafts unique IT-based solutions and very strategic in direction. He’s organization, call our Cleveland office at216.523.1900 . for a bevy of companies that today driving the growth here in a big, big include several Fortune 500 and way.” Or go to www.mcgladrey.com/growingohio. Fortune 1000 companies and big- An obviously quick thinker, Iyer name partners like Microsoft. said the tech industry appeals to Vertex is growing at an annual him because it’s continuously rate of about 10%, Iyer said, declin- evolving by nature. ing to disclose specific revenues. “We’re on our toes constantly That growth is partly why it secured looking at new technologies,” he a 2015 Best of Tech award from said. “Big Data is evolving. And OHTec, the Council of Smaller En- we’re constantly helping customers terprises’ technology network (for- notice technology as a differentiat- merly called NEOSA.) ing solution.” A native of Kerala, India, Iyer is — Jeremy Nobile © 2015 McGladrey LLP. All Rights Reserved. YOU CAN WATCH US, TOO Look for Crain’s Weekly Report webcast, which will hit your inboxes Friday afternoons. To sign up, go to: crainscleveland.com/register. 20150622-NEWS--16-NAT-CCI-CL_-- 6/18/2015 2:51 PM Page 1 16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 Maximize your office productivity with MT Business Technologies— the largest independent Ricoh dealer in the country. For Copiers, Printers, Service and Supplies. Call MTBT at 216.328.9777 or find out more at MTBT.com If you weren’t working in the technology sector, what would you be do- ing and why? “That’s easy. I’d own an ice cream parlor.” WE KEEP YOU UP AND RUNNING. PATRICIA HUBBARD Global technology director PolyOne The chances are good that you’ve personally with the company’s used a product engineered by Patri- technology efforts and, sometimes, cia Hubbard and her team of about even with specific projects for indi- 60 scientists. vidual customers. IT’S HERE. They don’t make cars, health care “I absolutely still get to do sci- CRAINSAKRON.COM products or even consumer goods. ence,” Hubbard said. But they make the polymers that “It’s one of the best parts of my Facebook.com/CrainsAkron • Twitter.com/CrainsAkron make all of those things lighter, job!” stronger and generally better. She also likes the variation that For the past eight years, Hub- she sees in her work, which she says bard has been the global technolo- never gets boring and always pre- gy director for Avon Lake-based sents new challenges. PolyOne, a specialty polymer com- “One day we might replace a pany. metal bracket that goes into a car, Her business line is Global Spe- another day … we might replace cialty Engineered Materials, and she lead in an X-ray machine,” she said. oversees teams of researchers and The tasks might sound mundane developers not only in Avon Lake, to some, but developing new mate- FOCUS ON YOUR but in Germany and at a new inno- rials that have the right strength, the vation center PolyOne has built in right weight and can withstand China that she was responsible for specified environmental conditions launching. and interact with other materials as BUSINESS KNOWING Though she has both an under- needed is hardly boring stuff to a graduate degree and a Ph.D. in materials scientist. It’s the stuff that chemistry, Hubbard’s job also en- makes the world go ‘round, and YOUR TECHNOLOGY tails a fair amount of communica- they know that, even if most of us tions. do not. She not only has to communicate Hubbard said she credits some with her own teams on three conti- childhood influences with helping IS COVERED. nents, but with customers who rely her to succeed in a scientific field. on PolyOne to understand and Her father was a chemistry and meet their materials needs and with math major who went on to teach, other company executives. but she actually credits her decision “Patti was instrumental in help- to go into science as a career to “Dr. ing us transform into a specialty Decker” — her advanced chemistry business through her technical ex- teacher at Vermilion High School. pertise, business savvy and inspira- Not that her life is all scientific tional leadership skills,” said Craig endeavors. The Olmsted Falls resi- Nikrant, president of Global Spe- dent and her husband, Steven Hub- COX BUSINESS VOICEMANAGER SM cialty Engineered Materials at Poly- bard, have two sons, Sam and Isaac. One. Her sons plan to pursue careers in 20+ PROFESSIONAL FEATURES “But most importantly, she al- medical technology and computer line including Caller ID, Call Forwarding & Three-Way Calling ways puts our customers first and is programming, she said — not too $ committed to their success through shabby for two kids not yet in high / per mo* KEEP 25 your same number to make a seamless transition continuous innovation.” school. She’s also been a key member of But that doesn’t really shock ASK ABOUT readable voice mail PolyOne’s integration teams follow- Hubbard. ing recent acquisitions, in addition “My husband’s a physics profes- to expanding its technology with sor,” she says with a chuckle, “so ( ) - | CALL 866 791 2688 VISIT COXBUSINESS.COM projects like the new R&D center in they got the nerd genes.” China. But as anyone, including Sam *Offer valid until 8/30/15. Minimum service term, equipment, installation, fees, taxes, and other restrictions may apply. See coxbusiness.com. © 2015 Cox Communications, Inc. All rights reserved. Hubbard likes that she gets to and Isaac, knows these days: Nerds manage and direct such broad ef- are cool. forts, while still remaining involved — Dan Shingler 20150622-NEWS--17-NAT-CCI-CL_-- 6/19/2015 2:00 PM Page 1 JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 DERRICK NAU JEFF TAYLOR Computer generated image CEO; Event 38 generalist; TRG Reality Jeff Taylor has a work of art on the wall in his Imagine having the opportunity to virtual- office. It’s not a Picasso. It’s an aerial image of ly explore a building from top to bottom be- a public park right outside the offices of 3D Ro- fore it is even built. botics. He used to work at the San Diego-based Cool, right? company, which makes drones for the con- If Derrick Nau’s vision is correct, that’s exact- sumer market. ly what might be possible in Northeast Ohio. The image — which includes six baseball di- Nau is a computer generated image spe- amonds and three soccer fields — is a compos- cialist at TRG Reality, a 30-year-old visual arts ite that Taylor created with the help of a minia- studio in Cleveland with about 30 employees. ture airplane equipped with a camera. That’s And, he’s “obsessed” (his word, not ours) when he knew he was onto something. with his work and craft, and the technology “I was like, ‘Holy crap, this is really valuable behind it. So it should be no surprise that information,’” Taylor said. “I can make this in Nau recently was the one who pitched the 20 minutes, and you can zoom in and see the If you weren’t working in the technology possibility of his studio further taking advan- guy raking the dirt on the baseball diamond. sector, what would you be doing and tage of advances in virtual reality technology. And you can measure the size of the baseball why? He’d be a health care researcher. Sure, It’s the kind of sci-fi stuff that allows a user to diamond, and you can look at the grass and see doctors no longer use leeches, but for many fully experience a situation or setting through how well it’s growing.” conditions — like the common cold — they If you weren’t working in the technology Today, the 28-year-old is CEO and founder the use of special goggles. simply tell people to “wait it out.” He’d like to sector, what would you be doing and of a company that makes its own drones, Event “He’s really a driving force in bringing us find better solutions. why?: “I find myself wondering this frequent- 38. The company employs about 10 people at into the future,” said Adam Wilde, studio ly, and it is hard to imagine because I am Canal Place in Akron. manager and senior photographer at TRG, very happy in my profession. I think I would Over the past three years or so, the compa- which works with clients as diverse as Nestle, aerospace engineering at Case Western Re- be an organic farmer, or an oil painter, or ny has sold hundreds of drones to people all Moen, Things Remembered and Swagelok. serve University. both. A ‘techno-farmer.’ I love the outdoors over the world. Many of them are farmers who “He thinks big picture.” After college, he landed a job at SpaceX, a and although I spend most of my time sitting otherwise would have a hard time inspecting The 28-year-old Nau is originally from spacecraft manufacturing company led by in front of a computer, I find messing around vast tracts of land. The maps generated by the Athens, Ohio, and is a graduate of the Cleve- Elon Musk. He spent about a year there before in the dirt very satisfying and therapeutic company’s E384 machine give them a way to land Institute of Art, having specialized in leaving for 3D Robotics. (cliché, I know). I am vaguely hopeful that one quickly spot problems. He started Event 38 in mid-2012, and at the biomedical art. day I will be a zero emission, off-the-grid-type For instance, maybe there are weeds grow- end of the year he moved the company to San- He started at TRG as a freelancer, and has person, but not a drop out, just kind to good ing in one area of the field. Or maybe the stalks tiago, Chile, to join an accelerator program for worked full-time at the studio for about three old mother earth. An odd juxtaposition for a of corn on top of a hill are turning brown be- startups. However, he ran into “huge customs years, currently focusing his efforts on the tech person, I suppose, but that is me.” cause water is rolling down the hill — and issues with corrupt immigrations officers” who texturing, surfacing, lighting and rendering flooding the plants at the bottom. he “refused to bribe.” of virtual 3-D objects. “You can see every single leaf on every sin- So, in 2013, he started having his drones Nau’s also active in an organization called emony, 3-D scanning and printing, holo- gle plant,” Taylor said. built in Akron. He originally planned to move SIGGRAPH, or the Special Interest Group on grams and, of course, the virtual reality that Now, the company is getting more into soft- the company back to California, but after hir- Computer Graphics and Interactive Tech- caught Nau’s eye. ware development. For instance, a few Event ing a few employees here, he decided to stay. niques. Nau is a staunch believer that Cleveland 38 customers are testing out drones with sen- Ken Burns is glad he did. Burns, the founder While certainly not a household name, ac- can become a hotbed for computer graphics sors that can tell how healthy plants are by the of TinyCircuits, works right next to Taylor’s of- cording to Nau and Wilde, SIGGRAPH is the work. In his free time — hence, the earlier use light they reflect. The software then converts fice. The two entrepreneurs regularly give each premiere organization for professionals spe- of the word “obsessed”— he also has put to- that information into a heat map: Green other advice. Burns describes Taylor as “a lit- cializing in any type of computer graphics. gether what he calls a “animated short film means healthy, yellow is OK and red is bad. tle insane.” Taylor enjoys rock climbing and Indeed, according to information submit- creative collective group” called Magic City If Taylor’s eighth-grade English teacher is diving, and he uses spreadsheets to keep track ted by Wilde, a number of developments Animation & VFX. reading this, he or she probably isn’t surprised. of his workouts and everything he eats. have been exhibited at SIGGRAPH, such as The group is producing an animated short That year, he wrote an essay stating that he He’s also “very down to earth,” Burns said. Pixar’s “Toy Story,” the visual effects of film that is a romantic comedy titled “Love is wanted to be an aerospace engineer. Thus, af- That’s all the more impressive, given his “Jurassic Park,” projection mapping such as Sweet.” Release is expected in mid-2016. ter graduating from Brecksville-Broadview achievements. “It’s inspiring to see someone that used in the Sochi Olympics opening cer- — Amy Ann Stoessel Heights High School in 2005, he majored in his age do all this,” he said. — Chuck Soder TRAINING PRIMARY CARE DOCS TO PRACTICE WHERE WE PREACH. Facing a critical shortage in primary care physicians by 2020, the Ohio University Heritage College of Osteopathic Medicine and the Cleveland Clinic have joined forces to train new physicians inspired to tackle the unique health care issues facing communities throughout northeast Ohio. OPEN JULY 2015 ohio.edu/medicine/cleveland 20150622-NEWS--18-NAT-CCI-CL_-- 6/19/2015 2:02 PM Page 1 18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 MICHAEL KISTER President and CEO Because we understand your business… Acceleration Systems Michael Kister has his eye on the Business end for Acceleration Systems, a young company that is developing Litigation cloud-based bandwith optimiza- tion. Or in Kister’s translation from geek-speak: “It makes the Internet Employment & Labor go faster.” That end, of course, as it is for so Real Estate & Construction many tech startups, is a sale to a larger company that has the where- Health & Medicine withal to grow the business beyond the 12 people now working for Ac- Trust & Estates celeration Systems. And that’s OK. Actually, it’s Kister’s specialty. The Dayton native looks and sounds like a tech exec in his black sport coat and jeans. But it might ...we ease your fears be more accurate to call him a tech farmer because he grows things, ei- ther from seeds or from a withering When your business is on the line we are here to support you vine. Then he takes them to market. and stand by you. We’re ready to take on your worst headaches Kister outlines a simple business philosophy. and ease your biggest fears so you feel supported by, and “I’m always looking at what does confident in, the legal system. the customer need and what does the market need and then build a solution that delivers against that,” he said. His first was Multiverse Inc. When Kister graduated from Case Western Reserve University’s law If you weren’t working in the technology sector, what would you be do- school in 1993 he lost his email ac- ing and why?: “If I weren’t running a technology company, I would be running Buckingham, Doolittle & Burroughs, LLC • A Northeast Ohio Business Law Firm count. So, with the help of three some other type of business — manufacturing, distribution, retail — it doesn’t lawyers, he started Multiverse, a Akron • Canton • Cleveland really matter. I prefer running technology companies because it seems that company that was an early provider bdblaw.com technology attracts some of the best and brightest. However, it is the puzzle of Internet access to people. and challenge of business — any business — that gets me out of bed in the That turned him on to the busi- morning.” ness potential of the Internet and after doing a couple startup e-com- merce divisions for Fortune 1000 managing it.” crease the speed of access to the In- companies, he began growing and For Acceleration Systems, he’s ternet. SALT • SALT • SALT building businesses with names setting his sights high. He believes Kister was brought in to turn the like Cycle Therapy and Skycasters. it has developed the best, most eco- idea into a business. Now, after sev- • Water Softener • Industrial • Food “I’ve done six of these, four star- nomical way for small businesses to eral dozen investors have put up tups and two turnarounds,” he move their computer storage and about $3 million, it’s testing the • Ice Melt • Sea Salt said. “Six in 22 years.” even applications to a data center market with what Kister believes is With a bachelor’s degree in that can offer more powerful com- an attractive way for small busi- Call For Pricing!! chemistry from Bowling Green puting than a small company could nesses to keep up with the pace of State University in addition to his afford on its own. technology. Minimum Delivery: 1Pallet law degree, Kister readily admits Kister joined the company in “This is going to be part of the in- he’s not a keyboard whiz. April 2013. Before that, two broth- frastructure of the Internet,” he “I keep saying, ‘I built it,’” he said ers, Richard and Jack McKinney, predicted. during an interview in Acceleration came up with the technology. Jack “Ultimately, somebody like an Systems nondescript suite of offices is the engineer, with 45 years’ expe- IBM or a Cisco, that has a global on Old Northfield Road in Sag- rience in technology design. cloud strategy and customers all amore Hills. Richard’s career was on the sales over the world, is going to figure “I would put the team together and marketing side of technology. out that we fit strategically into and we would build it. I understand Between them, they came up with their offering. Or it could be a technology, and I’m pretty good at the idea for a box that would in- provider like Comcast (a cable tele- vision operator) with millions of set top boxes.” One of Acceleration Systems’ key investors agrees with, and is im- pressed with, Kister. “What Mike’s developed is an ef- ficient way to (get on the cloud) in a cost-effective manner, where even small companies can afford it,” said Warren Musser, a key in- vestor. “And he’s doing it without a lot of resources and people.” Musser is chairman emeritus of Safeguard Scientifics Inc., a pub- licly traded Philadelphia firm that invests in innovative life sciences and technology companies. “Mike has a great brain, he’s very 1-800-547-1538 practical and indomitable,” Musser said in a telephone interview. Salt Distributors Since 1966 If Acceleration Systems is even- tually sold, Kister expects to stick around for two years to integrate it STAY CONNECTED WITH CRAIN’S into its new parent company. After that, he’s not sure where he’ll go TWITTER: @CrainsCleveland next. FACEBOOK: Facebook.com/CrainsCleveland Asked where he’ll be in five years LINKEDIN: linkedin.com/company/crain’s-cleveland-business said, “I don’t know but I’m sure it INSTAGRAM: instagram.com/crainscleveland will find me. It always has.” DAILY E-NEWSLETTERS: CrainsCleveland.com/register — Jay Miller 20150622-NEWS--19-NAT-CCI-CL_-- 6/19/2015 2:34 PM Page 1 JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 APARTMENTS The Weatherhead Executive MBA continued from page 3 Favorable terms that means funds for updates are Rock On and president of Water- available. Ken Ippolito, the owner of RLI, stone-Brainworks Capital Manage- “Money is much more flexible,” specializes in turning around se- ment, a property management Wasserstein said. firm. verely distressed properties for re- When Rock On bought the “Everything leaked,” Wasserstein sale and said he was shocked at the Drake, the firm obtained $300,000 condition of Triumph. Thirty-two said. Work ranged from redoing for capital improvements as part of Weatherhead’s world-class mortar on the building’s brick exte- suites of the 126-unit property were its acquisition loan with an equity rior to adding waterproofing to the empty at the inception, but it’s now investment of 20% down. In 2008, Executive MBA for elite outside of the foundation. full with a waiting list, said Ippolito, he was in the middle of buying an- Inside, the search for leaks re- a long-term multifamily Cleveland- other property when the bank working professionals is area investor who used the pur- quired a suite-by-suite examination changed its terms to require 25% delivered by internationally of every plumbing fixture to find chase to return to Euclid after down and eliminated funds for im- which showers needed new bot- spending the last decade turning provements. He had to scurry to renowned faculty who toms. If nothing else, new valve around four buildings, some 560 find $200,000 to fund needed re- stems were put in fixtures because suites, in Canton. pairs. have pioneered the of the age of the property. Rock On “LeBron came back and so did I,” Another factor making it easier to also installed programmable ther- said Ippolito, whose Jaguar bares undertake projects, Wasserstein advancement of mostats in hopes of reducing heat- the vanity plate “APT KING.” said, is that more investors are in- leadership on four levels: ing costs, which the building pays, There is plenty of room for im- terested in real estate. A 7% return by helping tenants appreciate the provement in rentals. At the Cleve- for real estate looks good now, he self, team, organization savings in electricity, which they land Tenants Organization, the sec- said, in the present low-interest rate pay, for air conditioning. A list of ond most frequent complaint environment. and society. 700 building code violations has triggering calls after the quest for In JVM’s case, it paid for im- been whittled down to 100. rent assistance is the need for land- provements on Dover Farms with a Info: bit.ly/WeatherheadEMBA From half-empty a year ago, the lords to make improvements to the letter of credit from its Chicago- 27-suiter now has just one three- property, said Angela Shuckahosee, based lender who believes in its bedroom available, and that’s be- executive director. project, Madary said. When banks cause the landlord did not renew Last year, the organization got lend on such projects now, they are the tenant’s lease. The asking rent 1,078 such calls, according to its an- more focused on the borrower and for it is $1,150, compared to $950 nual report. CTO counsels tenants the project than before the down- previously. on ways to make landlords ac- turn, when more banks were in the The story is similar at the much- countable, she said, but often ten- market. Until recently, he said, Groundbreaking leadership concepts for larger Triumph Towers, 25400 Eu- ants in such cases have to go to the “Banks weren’t doing much of any- a better world. clid Ave. in Euclid, where an affili- last resort: Move. thing.” the business of ate of Canton-based RLI Part of the trend in renewed mul- JVM plans to undertake similar Enterprises in the past year has tifamily makeovers is due to apart- improvement programs at its other shooed homeless people from its ments becoming a favored invest- properties here, Royal Oaks in stairwells, replaced light fixtures, ment as occupancy reached high North Royalton and Butternut updated suites and repaved a levels and rents increased as home- Ridge in North Olmsted. Both Rock apply TODAY crater-filled parking lot since buy- ownership declined due to foreclo- On and Ippolito are in the hunt for ing the property out of receivership. sures. Lenders like apartments, and more deals. SHALE GAS INDUSTRY REVIEW & OUTLOOK OUR ANNUAL REPORT ON For a preview of this report and to view our complete THE SHALE GAS INDUSTRY library of market intelligence and data reports, please visit: PROVIDES IN-DEPTH ANALYSIS www.plasticsnews.com/data OF THE SHALE GAS INDUSTRY IN NORTH AMERICA. IN THIS SPECIAL REPORT WRITTEN BY SENIOR REPORTER, FRANK ESPOSITO, YOU WILL GAIN INSIGHT ON: • Impact of the historic drop in oil prices on the Shale Gas boom • Emerging trends shaping the SHALE GAS industry • Key EXPANSION projects under way & planned for start-up • Why SHALE development is fueling growth for plastic Questions? pipe makers Please contact Kelley Trost at 1-313-446-6761 • Greatest potential for Shale Gas development in Mexico or [email protected] 20150622-NEWS--20-NAT-CCI-CL_-- 6/19/2015 2:04 PM Page 1 20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 HIGHEST PAID CEOS G AF1& G Total Company net Company net compensation Change in income in income % Executive (Age) 2014 Nonequity pension All other 2014 change from Rank Company 2013 % change Salary Bonus Stock awards Option awards incentive plan value(1) compensation (millions) 2013 W. Nicholas Howley(2) 3=A4 @F A&% &FF 1 : .; *'- :0B2 . 5 =& A1& =%= 3%A5/4 1 F@F FFF 1 @A% FFF F F F F A< "/F &FF @1=5@ F5% Richard J. Kramer 3%14 1< "%@ F/< 2 00 E! : *:! B !: 05 1/ 1/F %FF 3<5F4 1 F"@ @@@ F 1 &&< G >G &"A @F" 1 AFF FFF & A&& FFF @ &%< %FF F F /@ @@& 3 < AA&5A4 Ward J. "Tim" Timken Jr.(4) 3&<4 / &F% ==A 8 *-+!. ?!!, 0:25 = A=A /"% %F5A "=% AFF F A 1F@ @1@ A &=/ A@@ 1 A1F F=/ A %"= FFF 1<1 "&< 1F&5& 1=5< Richard G. Kyle(5) 3&/4 " 1=% FF/ 9 (! *-+!. 05 >G >G "%F FFF F A &"< A<" A =<< <<" 1 FF< %%/ 1 F=A FFF "F @/& 1 HELP US BUILD // because we y our heros For more than twenty years, Fisher House Foundation has been dedicated to meeting the needs of our military heroes and their families, all made possible by the generosity of people just like you. At the very heart of our program, we construct and donate Fisher Houses to military and VA medical centers. These “homes away from home” offer a welcoming place to stay for the families of our military while their loved ones receive specialized medical care. Because lodging at any Fisher House is free, patients and their visiting families can focus on what’s most important, the healing process. Show your love by making a donation to the Greater Cleveland Fisher House as we enter the home stretch of our $3.5 million dollar fundraising goal. To find out more, or to donate now, please visit www.gcfh.org 20150622-NEWS--22-NAT-CCI-CL_-- 6/19/2015 2:03 PM Page 1 22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 22 - 28, 2015 a more complete picture of a physi- based on already-existing physician back is going to build trust with cian’s ability. The Clinic already is reviews websites. At present, those them.” CLINIC one of the few hospital systems that docs average 4.1 stars with 3.5 com- In many respects, it’s very much continued from page 1 study in the coming months. post institute-wide outcomes data ments apiece, whereas if they pub- the Wild West online when it comes healthy 4.7-star rating, one doc’s pa- “Patients are very eager for infor- on its website, though it can be diffi- lished the rankings based on the to physician and hospital reviews tient said, “This was the worst expe- mation to help them make a deci- cult for general consumers to digest throngs of data they already have in and rankings. The much-discussed rience I have ever had with a prima- sion,” said Hanauer, a pediatrician at the hulking documents. hand, they would average 4.6 stars U.S. News and World Report rank- ry care provider. I will NEVER see the University of Michigan Health and 44.4 comments per doc. Laskey ings, which haven’t come without System. “They get this information said posting the reviews could pro- this doctor again.” Don’t get Yelped criticism, have proven to be a fa- “Transparency can be somewhat for movies and food, but when it vide an instant boost to Metro- vored marketing tool for high-scor- of a risk,” Boissy said. “You have to comes to health care, we tend to pro- MetroHealth, too, has taken an Health’s docs’ online reputations. ing hospitals. The same goes for be comfortable with the quality of vide no information to them about interest in boosting its own patient “Nobody wants to feel like they’re Leapfrog Group’s safety rankings. care you’re providing to take this how to pick a doctor.” experience efforts, and being trans- being Yelped,” said Laskey, referring As for the individual docs, review step. It’s a change for people.” The feds have surveyed patients parent about its satisfaction scores to the popular ratings site. “We want sites like Vitals.com can be particu- A referral from family or friend or on their experiences and percep- is a key prong of that journey, said to do this to be transparent and larly damning for providers with a patient’s insurance coverage tend tions of docs since 2006, but relative- Dr. Sara Laskey, a MetroHealth vice change behaviors if that’s the appro- only a handful of reviews. One to be the largest influencers when ly recently, they’ve begun to tie reim- president and its chief experience priate thing.” scathing write-up out of three re- choosing a doc, experts say, though bursements to the satisfaction officer. At MetroHealth’s annual The University of Utah’s health views, for example, can ravage a online reviews and ratings are taking surveys. That’s part of the reason meeting last month, CEO Dr. system led the way in posting physi- physician’s reputation in a quick a more prominent role. According to why hospitals like the Clinic have Akram Boutros said he was “embar- cian reviews back in 2012. Last year, Google search. However, posting a 2014 study published in the Jour- pumped significant resources into rassed” in the fact that only 66% of Wake Forest Baptist Medical Center their own doc ratings and reviews nal of the American Medical Associa- their patient experience efforts. patients say “definitely yes” to in Winston-Salem, N.C., followed — data they stress is compiled by tion, about two-thirds of the general A few years ago, the Clinic began whether they would recommend suit — a process that hospital offi- independent parties and not fluffed public is aware of online physician sharing satisfaction ratings with their the hospital to family and friends, cials said have had a positive impact. for marketing purposes — could rating sites — a figure higher than docs to let them know how they as opposed to the national average For one, the hospital’s physicians put the providers in a more positive previous studies — and a little more stack up against their peers. Publish- of 71%. are taking a keener interest in these light. than a third had used these sites ing the ratings and reviews is the With that in mind, the health sys- scores now that they’re public and Still, hospitals insist the move is- when selecting a doc. Those figures next logical step in that journey, tem has pledged to post its scores working to improve upon what they n’t about marketing. were based on a 2012 survey, and Dr. Clinic officials said. Over the coming online in the next few weeks to in- see as deficient. “This kind of transparency is the David Hanauer — one of the study’s months, the Clinic plans to do the centivize improvements. Building “We have confidence in those we right thing to do and gives our pa- authors — anticipates they have same with its nurse practitioners and on that effort, Laskey said the serve and hope they would under- tients more information so that they since grown given that people are physician assistants. health system plans to also post stand and know how to use this in- can make intelligent choices,” said becoming increasingly comfortable Eventually, Boissy said the Clinic physician ratings within the next formation,” said Dr. Russell Hower- Dr. William Annable, the chief qual- with using the Internet to make would like to post each doc’s quality eight to 12 months. Recently, the ton, Wake Forest’s chief medical ity officer at University Hospitals, health care decisions. The re- data, including complication and health system took a sampling of 40 officer and the bearer of 4.7 out of which plans to launch its ratings searchers hope to do a follow-up readmission rates, which would offer of its docs and tallied their scores five stars. “Sharing all of the feed- over the next month or two. REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card LAND OFFICE/ BUSINESS SERVICES Position WAREHOUSE Wanted Cleveland Prime Lakefront Property C. W. JENNINGS INDUSTRIAL EXCHANGE For Lease Global Expansion Consulting Vacant Land - N. 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Denise Donaldson at To find out more, contact Denise Donaldson at 216.522.1383 440-243-5500 216.522-1383 20150622-NEWS--23-NAT-CCI-CL_-- 6/19/2015 3:26 PM Page 1 JUNE 22 - 28, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS In hindsight, OverDrive CEO but for the most part it grew organically. He The institute will partner with Kent State JUNE 15 - 21 encouraged business owners in the room to University’s Manufacturing and Technolo- would think even bigger think about buying other companies if it can gy Small Business Development Center to Be glad that OverDrive got into the real help them “get to the next level.” reach possible applicants. The big story: Craig estate business. “This could’ve been a much bigger num- — Rachel Abbey McCafferty Arnold will become the next Sure, the digital content distributor is ber for us. No regrets,” he said to laughs. CEO of Eaton Corp., replac- now owned by a much larger company, but — Chuck Soder Ursuline preps MBA students ing Alexander “Sandy” Cut- CEO Steve Potash expects OverDrive to con- for ‘triple bottom line’ world ler, who is scheduled to retire tinue growing in Northeast Ohio. Partly be- Grant to aerospace group on May 31, 2016. By then, cause of the “mini Googleplex” he built in aims to help small firms soar Ursuline College is taking its MBA pro- Cutler will be 65 years old, Garfield Heights. gram beyond business as usual. which is the power manage- In April, a Tokyo-based Internet services The Ohio Aerospace Institute in Brook The college’s School of Graduate and Pro- ment company’s mandatory Arnold company called Rakuten Inc. paid about Park has received a $100,000 grant to help fessional Studies this fall is launching a so- retirement age. Arnold has $410 million for OverDrive, which has capi- small businesses in the state, especially cially conscious Master of Business Admin- been an executive at the Beachwood-based com- talized on the growing demand for digital those owned by women, minorities and vet- istration program designed for students to pany for 15 years. He has served as vice chair- books and audio books. Potash gave a be- erans. “gain both a practical knowledge of modern man, president and chief operating officer of hind-the-scene account of the deal last The grant is part of the U.S. Small Busi- business as well as an understanding of the week, while speaking to a small crowd in a Eaton’s Industrial Sector since 2009. Until Cut- ness Administration’s Federal and State new emerging economy.” private dining room at Lockkeepers in Val- ler’s retirement, Arnold will serve as president Technology Partnership Program, accord- Gina Messina-Dysert, dean of the School ley View. The event was organized by and chief operating officer of Eaton. His current ing to a news release. It will be aimed at of Graduate and Professional Studies, said OHTec, a local technology association that position will be filled by Uday Yadav, president helping small businesses in aerospace tech- in a statement announcing the new MBA used to be called NEOSA. nology and related industries get access to program that concepts taught in it “will in- of the company’s Aerospace Group. A few years ago, when OverDrive was rais- Small Business Innovation Research and clude the gift economy, the sharing econo- ing venture capital, it turned away investors my, cooperative business models, collabo- Thinking big: The new owner of the 925 Euclid Small Business Technology Transfer fund- who didn’t want the company to own real rative leadership, corporate social Ave. building, best known as the former Hunt- ing, which helps companies create and estate. Why? Potash wanted to put down responsibility and the triple bottom line,” commercialize new technology ideas, said ington Building, plans to transform it into a roots in Northeast Ohio. often expressed as the “three Ps” of people, executive vice president Ann Heyward. mixed-use property with a high-end hotel, 550 That building has more than enough planet and profit. The institute was just notified of its award apartments and a whopping 400,000 square feet room for OverDrive’s 250 employees. To accommodate professionals, classes in the past two weeks, Heyward said, and of office space. Andrew “Avi” Greenbaum, a “Their financial guys are saying, ‘Who else will be held one night per week, and each the program is expected to start in October. principal of Delray Beach, Fla.-based Hudson can we put in that Garfield Heights location class will last for eight weeks. The courses Holdings, puts a $280 million price tag on the that we own?’ ” he said to laughs. The institute had been a Federal and State will take place on Ursuline’s Pepper Pike renovation plan. Hudson wants to have the The deal also will help some members of Technology grantee in the past, but this pro- campus as well as online. Registration is building ready for occupancy in 36 months. his management team put their kids gram will have more of a statewide focus, in- open for the program on www.ursuline.edu. Greenbaum said the company needs to cobble through college, according to Potash. Many stead of a regional one. Nurete Brenner, director of the new MBA together financing and plans to seek Ohio State of them had stock options, and they re- Heyward said the institute is excited program, said the goal is to prepare students Historic Preservation Tax Credits, which has de- ceived big checks after the Rakuten deal, he about the mentor network that will be part to be “socially conscious managers and col- layed more than one project due to constraints said. of the program. The network pulls together laborative leaders.” She said those charac- on state allocations of the credits. However, those checks could have been a group of C-level executives from the type teristics dovetail with trends at large compa- bigger. Potash told the crowd that OverDrive of companies it’s trying to reach to offer ad- nies and health care providers, including the Insight into a deal: Medtronic acquired Car- should have acquired more companies and vice. Cleveland Clinic, University Hospitals and dioInsight of Cleveland in a deal valued at $93 grown faster. Founded in 1986, OverDrive “These are folks who have been there, MetroHealth in Northeast Ohio. million. The local company’s technology is de- has bought a few companies over the years, done that and succeeded,” Heyward said. — Scott Suttell signed to diagnose electrical abnormalities affect- ing the heart. Thus, CardioInsight will become part of Medtronic’s Atrial Fibrillation Solutions business. The medical technology giant plans to WHAT’S NEW BEST OF THE BLOGS maintain CardioInsight’s presence in Cleveland, according to an email from a Medtronic executive. COMPANY: Renegade Brands, Excerpts from recent blog entries kets as his customers struggle.” The company bought CardioInsight for its “talent on CrainsCleveland.com. On June 3, producers of the metal, includ- and technology,” she stated. Beachwood ing U.S. Steel Corp. and ArcelorMittal, filed PRODUCT: Xenith Gear Cleaner, They like him a U.S. trade case against corrosion-resistant On the move: Kent State University made a steel from five countries, Bloomberg report- high-profile hire and will bring on Paul DiCor- powered by Sweat X Sherwin-Williams CEO Chris Connor is in ed. If steel trade cases fail, Goncalves said he some pretty elite company — specifically, leto — a veteran of the Cleveland Clinic — as its Renegade Brands would have to find another way to assure his one of the 50 Highest Rated CEOs for 2015, new vice president for research and sponsored said it finalized a pri- company’s performance is aligned with U.S. as ranked by Glassdoor.com. programs. DiCorleto, who starts in his new role vate-label deal with economic growth instead of a global com- The website enables people to rate their Aug. 17, most recently chaired the Clinic’s Lern- Lowell, Mass.-based modity slump. employers — and the companies’ CEOs — er Research Institute, a role he has held since Xenith to bring a power- “If I don’t have the trade case, I will have anonymously and to list the companies’ 2002. DiCorleto also led the department of mol- to figure things out,” Goncalves told ful gear cleaner into the pros and cons. ecular medicine at Case Western Reserve Uni- Bloomberg. “It is important for my clients. football market. Among large companies (those with versity’s School of Medicine. DiCorleto takes It is important for the market.” The company is mar- 1,000 or more employees), Connor ranked over for Grant McGimpsey. McGimpsey an- China is among countries unfairly subsi- keting the new product No. 46 in this year’s survey, with 89% of re- nounced in August he would return to a faculty dizing the metal, allowing the Asian coun- as a dual-purpose spray views on Glassdoor.com giving him positive position after serving in the vice president role try’s steelmakers to sell to U.S. buyers at un- designed to clean hard marks. since 2011. fairly low prices, Goncalves said. “I’m a equipment surfaces and The top-rated CEO was Google’s Larry resourceful guy,” he said. “If I don’t have a to eliminate sweat odor Page, with a 97% approval rating among trade case, I will figure out a way.” We’re really not interested: MetroHealth from absorbent pads employees. The rest of the top five: Mark wants to be clear: It’s no longer interested in tak- and gear. Parker of Nike, Charles Butt of food retailer ing over Lakewood Hospital. “More than one The product comple- HEB, Mark Zuckerberg of Facebook and Are these prices right? year ago, MetroHealth submitted a proposal for ments Renegade’s Scott Scherr of Ultimate Software. Lakewood Hospital, which was unsuccessful. Sweat X Laundry Clean- The list had a couple other Ohio connec- Christopher L. Sagers, an antitrust profes- Since that time, we have moved forward with de- ing Line, which includes tions. sor at Cleveland-Marshall College of Law, veloping strategies for the physical transforma- a detergent, stain and A.G. Lafley of Cincinnati-based Procter & was quoted in a New York Times story that tion of our health system. These plans do not in- odor spray and is designed to remove sports Gamble was No. 19, and Bill Emerson of examined a favorite buzzword of the airline clude an inpatient facility in Lakewood,” stains and odors. Renegade says the Sweat Quicken Loans, the company founded by industry these days: “discipline.” MetroHealth said in a statement on June 19. X detergent and laundry line “eliminates Cavaliers owner Dan Gilbert, was No. 44. The heads of at least three airlines used Lakewood and the Clinic agreed to close the 99% of harmful bacteria causing staph and some variation of that term during a recent money-losing hospital in favor of a $34 million acne from technical fabrics and everyday Nerves of steel industry conference in Miami. community health center and emergency de- clothing.” “Discipline,” the paper said, “is classic oli- partment. That plan is facing opposition from Sweat X inventor and Renegade Brands Lourenco Goncalves, CEO of Cleveland- gopoly-speak for limiting flights and seats, some city residents, as well as a lawsuit. CEO Cathy Horton said she’s “honored to based mining company Cliffs Natural Re- higher prices and fatter profit margins.” And partner with Xenith” and hopes to turn the sources Inc., said the plan to decrease the this year, that discipline seems to be work- Hear them out: The Cleveland Orchestra new products into “a must for all profes- company’s exposure to low global com- ing, as airline industry profits are projected found another Internet stage to help take its mu- sional, collegiate and youth football players modity prices is at risk without limits on un- to hit a record $30 billion. sic global. It’s among five leading orchestras and programs. fairly traded steel, according to a Sagers, an airline industry specialist who worldwide that are launching Classical Live, of- Joe Esposito, CEO of Xenith, added, “We Bloomberg story. opposed the American-US Airways merger fering some of their recent recordings on Google are proud to be working with an organiza- When he took over the company last Au- in testimony before Congress, told The Play Music. Also participating in Classical Live tion committed to revolutionizing and pro- gust after an activist-investor revolt, Times that all the “discipline” talk at a con- are the Boston Symphony Orchestra, the Lon- moting safety technology in football hel- Goncalves “promised to end Cliffs’ vulner- ference of direct competitors in a concen- don Symphony Orchestra, the New York Phil- mets and protective equipment.” ability to the oversupplied seaborne iron trated oligopoly is a huge legal risk. harmonic and Royal Concertgebouw Orchestra For information, visit market,” the news services noted. “Cheap “I don’t see a smoking gun,” he said. “But of Amsterdam. www.SweatXsport.com and imports of steel made from iron mined they’re all but saying you need to limit out- www.Xenith.com. abroad also expose Cliffs to overseas mar- put to keep up prices.” 20150622-NEWS--24-NAT-CCI-CL_-- 6/18/2015 12:55 PM Page 1 The 2015 Sprinter Cargo Van Built to build your business. 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