In Search of Research Recognition
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20110822-NEWS--1-NAT-CCI-CL_-- 8/19/2011 3:23 PM Page 1 $2.00/AUGUST 22 - 28, 2011 SPECIAL REPORT A DOSE OF REALITY: Is all this health care building good for us? PAGES 13-19 Market’s IN SEARCH OF volatility RESEARCH leads to RECOGNITION Kent State’s new hire has tough task: buybacks Boost coffers amid budgetary upheaval Firms see their shares By TIMOTHY MAGAW as value investments [email protected] s the point man for filling marching By MICHELLE PARK orders by Kent State University [email protected] president Lester Lefton to build in a big way the school’s stash of research A number of public companies in dollars,A Grant McGimpsey knows he faces an Northeast Ohio aren’t sitting on the uphill battle — but one he intends to take on sidelines as insiders and investors at full speed. pocket their shares at reduced prices Though he has been on the job as Kent in a yo-yo stock market. They, too, State’s vice president for research for just a are buying or are poised to do so. few weeks, Dr. McGimpsey already is knee- The boards of both Cliffs Natural deep in discussions about how to inject Resources Inc. and Invacare Corp. more research money into the university’s just last week authorized new stock coffers, an amount often perceived as a metric repurchase plans that allow both that gauges a school’s prestige. companies to buy back millions “Kent State needs to be recognized as a more of their own shares. research university, and that’s why I’m here,” The Cliffs board last Monday, Aug. Dr. McGimpsey said. “I want to work at an 15, authorized a new repurchase institution that recognizes the value of what plan allowing the iron ore producer MARC GOLUB research can do for a society, and I’m not to buy up to 4 million shares of its Dr. Grant McGimpsey, Kent State University’s new vice president for research, being corny here.” common stock outstanding. stands next to a confocal microscope in the biology department at KSU. See RESEARCH Page 11 Citing “recent volatility in the global equity markets,” Cliffs chief financial officer Laurie Brlas said last week’s buyback authorization “will allow Cliffs to opportunistically acquire shares at attractive valuations.” New convention home luring industrial groups back And Invacare, based in Elyria, announced last Friday, Aug. 19, that By DAN SHINGLER Even two years before the city’s new ventions here, Positively Cleveland so far has been encouraged to see its board had authorized the company [email protected] convention center is finished, big leaders say. Their audience — those not just medical device companies to repurchase more common stock, industrial organizations already are in rubber, plastic and steel-related drawn to the city as it prepares to boosting its overall authorization to Cleveland is the place to be — at signing up to use it. And when they manufacturing businesses — never build and unveil the Cleveland 2.5 million shares. least if you are holding a big indus- do, some shows will bring thousands left town. Medical Mart and Convention Center Asked why Invacare executives trial trade show. of people to town, Positively Cleve- “The shows are returning because in late 2013, but basic industrial sought a new authorization, Gerald That’s the word from Positively land says. this is their market. Their wheel- groups as well. B. Blouch, president and CEO, cited Cleveland, the group that markets It wasn’t that the industrial groups house is right here,” said Eric Julian, For some, it will be déjà vu all widespread uncertainty over equities Cleveland as a tourism and conven- ever had a beef with this shrunken national sales manager for Positively over again, as many of those groups and the general economy, as well as tion destination, along with those old manufacturing giant; there just Cleveland. used to hold their meetings here See BUYBACKS Page 21 who hold the shows themselves. weren’t good places to hold con- Mr. Julian said his organization See SHOWS Page 21 INSIDE 34 6 Growth in road racing, Corporate Challenge give sports management outfit NEWSPAPER Hermes Cos. boost ■ Page 3 Entire contents © 2011 74470 01032 by Crain Communications Inc. PLUS: ALUMNI STEP UP GIVING ■ Vol. 32, No. 34 0 TEAM NEO DATA ■ & MORE 20110822-NEWS--2-NAT-CCI-CL_-- 8/19/2011 2:12 PM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 22 - 28, 2011 CORRECTION COMING THE RIGHT DIRECTION An Aug. 1, Page One story on the NEXT WEEK In the second quarter of 2011, private-sector U.S. employers initiated 1,624 possible sale of land at Lakewood “mass layoff events” that resulted in the separation of workers from their jobs Country Club to American Greet- for at least 31 days, down 19% from 2,008 mass layoffs in the 2010 second ings incorrectly indicated that land in Philanthropic duties quarter. The federal government says the number of extended mass layoffs 700 W. St. Clair Ave., Suite 310, South Euclid at Oakwood Country declined in 16 of the 18 major private nonfarm industry sectors over the year Cleveland, OH 44113-1230 Club already is undergoing redevelop- We explore in our philan- that ended in the second quarter of 2011. Such layoffs now are at less than Phone: (216) 522-1383 ment as a big-box shopping center. half their recession peak, which ran from late 2008 through the first two quar- Fax: (216) 694-4264 thropy, fundraising and non- www.crainscleveland.com The redevelopment of that land only is ters of 2009. Here are data for the past three years: proposed at this stage. profit section Publisher/editorial director: a partnership QuarterNumber of Quarter Number of Brian D. Tucker ([email protected]) between the mass layoffs mass layoffs Editor: REGULAR FEATURES Mark Dodosh ([email protected]) Cleveland April-June 2011 1,624 Oct.-Dec. 2009 2,416 Managing editor: Classified ....................22 Sight Center Jan.-March 2011 1,490 July-Sept. 2009 2,034 Scott Suttell ([email protected]) Sections editor: Editorial ........................8 and InfoCision aimed at Oct.-Dec. 2010 1,999 April-June 2009 3,395 Amy Ann Stoessel ([email protected]) Assistant editors: Going Places ...............12 training blind and visually July-Sept. 2010 1,370 Jan.-March 2009 3,979 Letter............................9 impaired individuals to work Joel Hammond ([email protected]) April-June 2010 2,008 Oct.-Dec. 2008 3,582 Sports List: Largest nursing for InfoCision’s call center Kathy Carr ([email protected]) homes ......................20 operations. Plus, we look at Jan.-March 2010 1,870 July-Sept. 2008 1,581 Marketing and food Senior reporter: Personal View ...............8 workplace fundraising. SOURCE: U.S. BUREAU OF LABOR STATISTICS Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) to understand Manufacturing Tim Magaw ([email protected]) your mission, Health care & education Michelle Park ([email protected]) Finance we must Research editor: Deborah W. Hillyer ([email protected]) understand Cartoonist/illustrator: Rich Williams Marketing/Events manager: your passion Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) Advertising sales director: Unlock a different approach to business banking. At KeyBank, Mike Malley ([email protected]) Account executives: we ask questions. We listen. 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Audit Bureau of Circulation ©2011 KeyCorp. KeyBank is Member FDIC. ADL2662.12 20110822-NEWS--3-NAT-CCI-CL_-- 8/19/2011 3:24 PM Page 1 AUGUST 22 - 28, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 East Side manufacturers on the move hopes to move into his new building machines he already installed and of a six-person Mentor grinding Work orders hum along, prompt expansion on Tyler Boulevard by spring 2012, has up and running in the new company, CR Grinding, that Fredon but how soon his company com- plant.