20091130-NEWS--1-NAT-CCI-CL_-- 11/24/2009 5:15 PM Page 1

$1.50/NOVEMBER 30 - DECEMBER 6, 2009

Third Frontier Manufacturers in bond renewal uncharted waters under scrutiny Senate prez wants assurances that Rocky political, business climates cloud industry’s ability project review process is ‘apolitical’ to navigate through tough times and expand as hoped By JAY MILLER [email protected]

Story by DAN SHINGLER ■ [email protected] The Republican leader of the Ohio Senate has taken a step back from support of an early ballot renewal of the eith Kokal runs the Inc., a six-person company in state’s Third Frontier technology development program. kind of business that Mentor that calibrates equipment In August, a spokes- woman for Senate Presi- politicians in Washington and instruments for many manufac- dent Bill Harris said the “I think Sen. hope will lead the country turers in Northeast Ohio. It’s been a Senate leader would support Harris just wants putting the bond renewal Kout of the recession. good year for Mr. Kokal, as many some questions issue on the May 2010 answered.” Problem is, the policies many of customers have laid off workers who ballot, agreeing with simi- – Maggie Ostrowski, those politicians are pursuing are do some of these same tasks, relying lar statements of support from spokespeople for communications director squelching Mr. Kokal’s desire to instead on vendors such as Micro Gov. Ted Strickland and for Senate President Bill Harris ramp up his business. Labs. House Speaker Armond Budish. See ANXIETY Page 12 Mr. Kokal owns Micro Laboratories However, Maggie Ostrowski, Sen. Harris’ communi- cations director, told Crain’s Cleveland Business on Nov. 19 that the Senate president wasn’t ready to commit to an early renewal of the successful technology investment program, though he still strongly supports the Third Frontier. “I think Sen. Harris just wants some questions See THIRD FRONTIER Page 6

Cuyahoga’s commercial docket a winner so far

By ARIELLE KASS [email protected]

There’s no business like business. And with a docket at the Cuyahoga County Court of Common Pleas devoted to the cases companies bring, two local judges are helping make the county a favored venue for addressing commercial disputes. Cuyahoga is one of four counties statewide participating in the Supreme Court of Ohio’s commercial docket pilot program, which is slated to run through 2012. So far, See PILOT Page 30 INSIDE The Galleria goes green The Gardens Under Glass plan calls for a hydroponic garden to grow flowers and vegetables at The Galleria at Erieview in downtown Cleveland. See Jay Miller’s story on Page 5.

44 SPECIAL SECTION 6 We shine the spotlight on a group of individuals who demonstrate

NEWSPAPER personal and profes- Entire contents © 2009

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 30-DECEMBER 6, 2009 COMING NEXT WEEK THE WINNING TOUCH As you can tell from the headline, this item is not about the Cleveland Browns. Legal Affairs But would it surprise you to know that labor unions have increased significantly their win rates in National Labor Relations Board-representation elections for The swine flu not only can make unorganized workers since fiscal 2003? In fiscal 2009, which ended Sept. employees sick, but it also puts their 30, labor won more than two-thirds of such elections, according to data from 700 W. St. Clair Ave., Suite 310, the NLRB. Cleveland, OH 44113-1230 employers ill at ease when it comes to Phone: (216) 522-1383 Union win rates, fiscal years ended Sept. 30, 2003-2009 Fax: (216) 694-4264 handling cases of employees who www.crainscleveland.com come down with the H1N1 virus. Next Year Union win rate Publisher/editorial director: week, we explore the legal ramifica- Brian D. Tucker ([email protected]) 2003 56.4% tions associated with companies’ Editor: swine-flu policies. 2004 55.5 Mark Dodosh ([email protected]) Managing editor: 2005 58.9 Scott Suttell ([email protected]) REGULAR FEATURES 2006 57.5 Sections editor: Amy Ann Stoessel ([email protected]) 2007 58.6 Best of the Blogs ...... 31 Going Places ...... 9 Senior reporter: 2008 62.4 Stan Bullard ([email protected]) Big Issue ...... 11 Personal View...... 10 Reporters: Classified ...... 30 Reporters’ Notebook ...31 2009 66.8 Shannon Mortland ([email protected]) Jay MIller ([email protected]) Editorial ...... 10 The Week ...... 31 SOURCE: NATIONAL LABOR RELATIONS BOARD; WWW.NLRB.GOV Chuck Soder ([email protected]) Dan Shingler ([email protected]) Arielle Kass ([email protected]) Designers/reporters: Joel Hammond ([email protected]) Kathy Carr ([email protected]) Research editor: Deborah W. Hillyer ([email protected])

FAST FACTS: Cartoonist/illustrator: Rich Williams • Ohio’s export to the Marketing/Events manager: Netherlands is $697 million. Christian Hendricks ([email protected]) Marketing coordinator: • The Netherlands is the Laura Franks ([email protected]) 7th largest overseas investor Advertising sales director: in Ohio. Mike Malley ([email protected]) Account executives: LARGE DUTCH Adam Mandell ([email protected]) EMPLOYERS IN OHIO: Dirk Kruger ([email protected]) Philips Electronics Nicole Nolan ([email protected]) Dawn Donegan ([email protected]) Akzo Business development manager & ING classified advertising: Provimi Genny Donley ([email protected]) Aegon Office coordinator: Toni Coleman ([email protected])

SOME OHIO COMPANIES Production manager: WITH EUROPEAN Craig L. Mackey ([email protected]) OPERATIONS IN THE Production assistant/video editor: NETHERLANDS: Steven Bennett ([email protected]) Owens-Illinois Graphic designer: Eaton Kristen Wilson ([email protected]) Hexion Billing: Greif Susan Jaranowski, 313-446-6024 ([email protected]) Parker-Hannifin Credit: Todd Masura, 313-446-6097 ([email protected])

Circulation manager: Erin Miller ([email protected]) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) Crain Communications Inc.

Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Did you know that Ohio and the Netherlands have had a strong bond in business for over Explore European business Group vice president technology, circulation, manufacturing a century? Close to 100 Dutch companies employ well over 5,000 Ohioans. At the same opportunities with Paul Dalpiaz: Chief Information Officer Pierre van Kleef, Dave Kamis: time, more than 100 companies from Ohio have Dutch operations supporting the economy Vice president/production & manufacturing NFIA’s Area Director. Kathy Henry: back home. Cleveland even ranks #16 on the list of top cities, worldwide, trading with Corporate circulation/audience the Netherlands. Pierre will be in Cleveland development director the week of December 14th. This mutually beneficial relationship can help your business as well. We at the Netherlands G.D. Crain Jr. Call 312-616-8400 Founder (1885-1973) Foreign Investment Agency have helped many Ohio companies like yours succeed in Europe Mrs. G.D. Crain Jr. or email [email protected] Chairman (1911-1996) and grow your business at home. We can provide you with necessary information as well as to arrange a meeting at Subscriptions: In Ohio: 1 year, $59; 2 years, $102. your convenience. Outside of Ohio: 1 year, $102; 2 years, $180. Single assistance to make setting up or expanding in Europe easier and more likely to succeed. The copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- Netherlands has long been the gateway to Europe and can partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, Detroit, Michigan 48207-2912. 1-888-909-9111 be your bridge to more business at home. or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 www.nfia.com Audit Bureau of Circulation

This advertisement is prepared by Al Paul Lefton Company, Inc. on behalf of the Netherlands Foreign Investment Agency. Additional information is available at the Department of Justice, Washington, D.C. 20091130-NEWS--3-NAT-CCI-CL_-- 11/24/2009 1:56 PM Page 1

NOVEMBER 30-DECEMBER 6, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Magazine Resetting the bar publisher to bolster Case Western Reserve wrestles with why its bar exam passage rate continues to trail Cleveland State, Akron portfolio

By ARIELLE KASS “Certainly, we are working on it,” Still, recession affects [email protected] interim dean Bob Rawson said. “You try as best as you can to understand Great Lakes Publishing or the third fall in a row, why students are not able to pass.” students at the Case Western The reasons, though, remain By KATHY AMES CARR Reserve University School of unclear. [email protected] Law have seen their peers at Some students may have thought Ftwo other local law schools best they were better-prepared than they Great Lakes Publishing Co. wants to their results on the state of Ohio’s actually are, Mr. Rawson said, and make sure it has both its Northeast summer bar exam. failed to take optional bar-preparation Ohio and Ohio audiences covered, so And the faculty at the school isn’t courses. Some just don’t test well. the Cleveland-based company is quite sure what to do. See BAR Page 8 diversifying the product line under its publishing umbrella. Lute Harmon Jr., president of the magazine publisher, said the company in 2010 expects to offset revenue and circulation losses that stem from a subpar advertising climate and paltry economy by creating more events, rebranding its web site development business and launching two more regional magazines. “We have a diversified platform of products that we can produce in a low-cost way,” Mr. Harmon said. The 82-employee company currently publishes 12 consumer and special interest magazines, including Cleveland Magazine and Ohio Maga- zine, along with custom publishing products. Magazines in general, like news- papers, have struggled to generate revenue during the recession, but observers say publishers that provide a more localized focus and offer a broader range of products are weathering the storm better than their national counterparts. “Many publishers are branching out,” said Jim Dowden, executive director of the City and Regional Magazine Association, of which Great Lakes Publishing is a member. STEVE BENNETT ILLUSTRATION SOURCE: OHIO SUPREME COURT “It used to be, circulation and adver- tising attracted income. Now it’s also the Internet, ancillary products and See MAGAZINES Page 7 Max-Wellness launch next on THE WEEK IN QUOTES “There really isn’t a “We’re not going to OfficeMax founder’s agenda credible opportunity to expand, we’re not go to the ballot if we going to do nothing By SHANNON MORTLAND to take on a feverish pace in 2011 [email protected] with the opening of 30 to 50 stores a miss the May election.” — we’re just going to year. The pickup in openings would — Baiju Shah, CEO, try to make it by.” Michael Feuer’s business ven- follow what Mr. Feuer did in building BioEnterprise. Page One tures seem to follow his own path OfficeMax, which was sold to paper — Roger Sustar, owner, Fredon through life. manufacturer Boise Cascade Corp. Corp. Page One In launching OfficeMax Inc. in in 2003 for $1.5 billion. 1988, he sold office products when “Max-Wellness will carry prod- he was a mid-career businessman. ucts that will perpetuate or improve Now a 64-year-old baby boomer, people’s health,” Mr. Feuer said. “There’s a lot of “We like to let the he’s starting a new retail chain “It’s a toy store for adults.” people still growing educators drive the called Max-Wellness, which aims to The stores will carry high-end help boomers and other genera- wellness products in categories and expanding.You design of the interior of tions live well and stay well. such as sports nutrition, vitamins, don’t think that’s the buildings and let Max-Wellness plans a January and health and beauty aids. Some opening of four stores, with loca- products available at Max-Wellness happening, but it is.” the community’s wishes tions in Westlake and Woodmere in will have never been sold in retail — Mary Cierebiej, manager of drive the exterior.To do the Cleveland area and in the Florida stores and none of them can be attraction and expansion, Team cities of Naples and Sarasota; four found in drug stores, he said. Lorain County. Page F-5 that, you have to let the more stores are planned for two In the fashion of makeup retailer JESSE KRAMER undisclosed major markets by the Sephora, customers will be able to Michael Feuer, who started OfficeMax ego out the door.” end of 2010, Mr. Feuer said. test the products sold at Max-Wellness Inc. in 1988, has created a new chain — Chris Smith, partner, TDA Plans call for the chain’s growth See MAX-WELLNESS Page 32 called Max-Wellness. Architecture. Page F-15 20091130-NEWS--4-NAT-CCI-CL_-- 11/24/2009 5:15 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 30-DECEMBER 6, 2009

Dr. Harris, who is CEO of Akron Poly- Polymer outfit branches out mer Systems, and Dr. Cheng, dean of the university’s College of Polymer Science and Polymer Engineering. with $3.4M Akron expansion That invention on the founders’ résumés has helped Akron Polymer Systems establish relationships in Founders’ previous film success provides traction the industry, said Dr. Harris, who also is a distinguished professor By CHUCK SODER The company has yet to release emeritus of polymer science at the [email protected] any of its own products, but its university. founders have proven they can “The reason we can do it is because If Akron Polymer Systems is half create a successful polymer: While we were able to establish a reputa- as successful as its founders were at the University of Akron, Frank tion by developing that first product before they started the company, Harris and Stephen Cheng invented at the University of Akron,” he said. then watch out. a film that today is found in LCD Akron Polymer Systems on Nov. The developer of specialty poly- televisions across the globe. 20 held a groundbreaking ceremony mers is embarking on a $3.4 million That film, which allows TVs to be at what will become its new head- expansion in an effort to develop viewed from wide angles, topped $1 quarters on North Summit Street in and make more of its own polymers billion in sales in early 2009. It downtown Akron. for products such as liquid crystal has generated about $5 million in That ceremony could have taken displays and solar cells after spending royalties for the university, which place in South Carolina: Officials its first seven years developing mate- licensed it to a Japanese company from that state flew to Ohio a year rials alongside larger companies. in the 1990s, and additional cash for ago to try to lure Akron Polymer Systems to the south. The company still is here primarily because of Ohio’s Third Frontier Program, a 10-year, $1.6 billion initiative aimed at stimulating Ohio’s economy NationalCity.com/CashFlow through investments in technology. “That state had nothing like the Third Frontier,” said Dr. Harris, who added that his company also received a $1.27 million low-interest loan and a 45%, six-year job creation tax credit from the state of Ohio. The new space will encompass about 16,000 square feet, which is about three times larger than the offices the company rents from Omnova Solutions on Gilchrist Road. With the expansion, the 13-person company aims to employ 40 to Make sure 50 people two years from now, Dr. Harris said. The company also plans to add enough equipment to produce low volumes of polymers for specialty products and to test products needed your cash flow in larger amounts. Akron Polymer Systems has bigger goals, though: It aims eventually to make batches exceeding 1,000 kilograms or more, Dr. Harris said. Akron Polymer Systems already is working on some polymers that is headed in could be mass produced by other manufacturers: The company is developing second and third gener- ations of the film that allows LCD TVs to be viewed from wide angles. Among the products the company the right direction. plans to manufacture itself are polymers for flexible liquid crystal displays, flexible solar cells, missile nose cones, fuel cells and bone replacement implants. The company’s desire to produce medical polymers was a big reason it chose to locate in downtown Akron instead of its first choice at Ascot Industrial Park on the northern edge of the city. Akron Mayor Don Plusquellic convinced Dr. Harris that No matter what goals you’ve set for your business, meeting them would be impossible his company could benefit by being part of Akron’s biomedical corridor, without effective cash flow. At National City, we can help improve yours, by taking a close a part of the city’s downtown. look at how your business operates, and developing customized cash flow solutions. During the groundbreaking cere- mony, Mayor Plusquellic expressed With help from our business banking experts, we can help you collect receivables faster, his gratitude that the company make payments more efficiently, and ensure access to credit when needed. stayed in Ohio at all. “We’re very happy not to see more ■ To learn more about how we can help you improve your cash flow, stop by any National City jobs going south,” he said. branch, visit NationalCity.com/CashFlow, or call 1-866-874-3675. Volume 30, Number 44 Crain’s Cleveland Busi- ness (ISSN 0197-2375) is published weekly, except for combined issues on the third week of May and fourth week of May, the fifth week of June and first week of July, the fourth week of August and fifth week of August, the third week of November and fourth week of November, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2009 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMAS- TER: Send address changes to Crain’s Cleveland National City Bank, Member FDIC Business, Circulation Department, 1155 Gratiot Av- ©2009 The PNC Financial Services Group, Inc. Credit products are subject to an approved credit application. enue, Detroit, Michigan 48207-2912. (888)909-9111. REPRINT INFORMATION: 800-290-5460 Ext. 136 20091130-NEWS--5-NAT-CCI-CL_-- 11/24/2009 5:16 PM Page 1

NOVEMBER 30-DECEMBER 6, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Limping Galleria shopping center soon may be flush with green For example, the Cleveland Project is looking for a site for an Latest idea in local Foundation and the city of Cleve- 18,000-square-foot greenhouse in land are lending financial support the city of Cleveland. It would use food movement would to a project called Evergreen City solar, wind and geothermal energy bring garden feeding off Growers that plans to build and to heat the hydroponic growing tanks. This photo shows operate a year-round hydroponic Timothy Smith, who is developing the Galleria and mall’s greenhouse roof greenhouse capable of producing the Cleveland Greenhouse Project, Tower at Erieview more than 3 million heads of fresh said Northeast Ohio once had a food court windows By JAY MILLER lettuce and nearly 1 million pounds thriving greenhouse industry. Rising with hydroponic [email protected] of basil per year. The business even- natural gas prices in the 1970s killed vertical units that tually would be owned and operated off local growers, whose poorly in- can grow seasonal The nascent local food movement by its employees. sulated greenhouses were built in produce. may be coming to a shopping mall Likewise, the Cleveland Greenhouse an era of cheap fuel, he said. ■ PHOTO PROVIDED near you — at least if you live or work near the Galleria at Erieview in downtown Cleveland. It’s a project called Gardens Under Glass. It would take advan- tage of the greenhouse roof of the struggling, two-story mall attached to Erieview Tower at East Ninth Street and St. Clair Avenue to create a hydroponic garden to produce flowers, lettuce, cucumbers and other herbs and vegetables. If all goes according to plan, some of the produce would be sold on site, in restaurants and at a market or carts in the mall, according to Vicky Poole, director of marketing for the Galleria, which is owned by Minshall Stewart Properties Co. of Bethesda, Md. Ms. Poole is one of the drivers behind the greenhouse project. “I got the idea after reading about vertical gardening,” said Ms. Poole, who has worked at the Galleria for more than five years and had long thought about ways to put the shop- ping mall space to better use. “So I thought, what if we could do hydro- ponic growing?” Vertical gardening is a way to grow food in limited spaces. Hydroponic gardening grows plants in nutrient- enriched flowing water rather than soil, a technique that has been used for more than a century. Ms. Poole envisions hydroponic tanks along banisters and in carts under the Galleria’s greenhouse-like glass roof. Her plan, which is before the Civic Innovation Lab for a $30,000 startup grant, also includes composting and even aquaponic tanks for cultivating fish — and using the nutrient-rich waste from the fish to nourish the plants. The project’s application to the lab estimates first- year expenses at $107,000. Gardens Under Glass is among Your doctors. Your hospitals. more than a dozen local food ideas bubbling up in Northeast Ohio. These ideas are proposed and discussed at Local Food Cleveland, an online Health Insurance for Your Business. social network with 1,300 members. Ms. Poole, like others in the local food movement, believe shipping fresh food long distances is becoming increasingly impractical as the cost of oil rises, raising the cost of ship- ping. They also are spurred on by what they see as an opportunity to keep a bigger share of local food spending within the region. Brad Masi, executive director of the New Agrarian Center in Oberlin, SummaCare’s network includes the doctors and hospitals your said locally produced food can play a greater role in the food market. In employees want to see. With SummaCare, your employees have a paper he wrote while a graduate access to more than 50 of the region’s finest hospitals, including student at Cleveland State University in 2002, Mr. Masi found only $259 the Cleveland Clinic Health System, University Hospitals and million of the $7 billion food market in Northeast Ohio came from local Summa Health System. Plus, our network includes nationwide farmers and producers, leaving, he coverage that follows your employees wherever they may reside or believes, ample room for growth. Mr. Masi said considerable oppor- travel. To learn more about SummaCare, call your agent today or tunity exists to create “a more interac- tive space where food production is visit www.summacare.com. more integrated into the urban fabric. If it’s a garden in a neighborhood or hydroponics in the Galleria, that food production is becoming more a part of people’s experiences.” 20091130-NEWS--6-NAT-CCI-CL_-- 11/24/2009 1:57 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 30-DECEMBER 6, 2009 Third Frontier: Funds expire in 2012

continued from PAGE 1 issue is expected to be at least $500 Independent experts now review answered,” she said. “He wants as- million or perhaps as much as $1 requests for grants from the Third surances that these projects will be billion. Gov. Strickland has voiced Frontier fund. Reviewers recom- reviewed on an apolitical basis, on support for a $1 billion issue. mend projects to the Ohio Third an independent basis.” A study on the impact of the Frontier Commission. Ms. Ostrowski denied reports the Third Frontier program released in Voter passage of a new bond issue Senate leader wants to delay renewal September by SRI International, an would ensure the continuation of of the popular program to deprive independent research institute in state financial support beyond 2012 Gov. Strickland of a political feather in Menlo Park, Calif., found the program for Third Frontier programs. However, his cap. attracted significant new investment it takes the approval of both houses The Third Frontier program to the state. According to SRI, $681 of the General Assembly to get the funds efforts by Ohio-based busi- million in state Third Frontier money bond issue on the ballot. nesses and research institutions to invested from 2003 to 2008 generated Postponing the vote beyond the commercialize high-tech products $6.6 billion of economic activity, May 2010 primary election, Third and processes. The goal is to attract 41,300 jobs and $2.4 billion in Frontier backers believe, could risk venture capital and create jobs. employee wages and benefits. disrupting the flow of money, which A $500 million bond issue passed According to the impact study’s could cool investor enthusiasm for in 2005 funds the Third Frontier’s figures, every dollar the state spent investing in Ohio. investments. The money is expected attracted nearly $10 in private “There really isn’t a credible oppor- to run out by 2012. The next bond investment. tunity to go to the ballot if we miss the May election,” said Baiju Shah, CEO of BioEnterprise, a nonprofit that nurtures young biotech companies, many of which have gotten financial help from the Third Frontier program. As Keary McCarthy, a spokesman for state Sen. Budish explained it, putting the issue on the November 2010 ballot is out because it could get lost in an election dominated by the race for governor. With no other statewide issues or candidates sched- uled for the May 2011 primary, a special statewide vote for the Third Frontier would be costly. A spokesman for Ohio Secretary of State Jennifer Brunner said a May 2011 vote on a Third Frontier bond issue would cost between $800 and $1,000 per precinct for any of the state’s 10,000 precincts that did not have any other primary votes scheduled. Waiting until November 2011, Mr. Shah said, would create a gap in Third Frontier financial support because it would take time to issue bonds and get funds flowing. “If we take away the funding or create uncertainty, (it will hamper) all the work we done to build up Ohio” as a Hard at work high-tech state, Mr. Shah said. ■

ON THE WEB Story from www.CrainsCleveland.com. You work hard for your business, but you shouldn’t be the only one. You need a bank that will Area jobless rates work hard for you, too. At FirstMerit, our people and products provide you with smart, money saving advantages that will boost your bottom line. buck the state’s Unemployment rates in Come in and find out how we are hard at work for you. most Northeast Ohio coun- ties in October were substantially below the statewide jobless rate of 10.5%, according to figures from the Ohio Depart- ment of Job and Family Services. Geauga County, at 6.7%, had the lowest unemployment rate of 88 Ohio counties. Medina County firstmerit.com (7.5%) and Lake County (7.9%) also were among the six counties 1-888-283-2303 statewide with unemployment rates below 8%. Unemployment in Cuyahoga County was 8.6%. The highest unemployment rates among counties in the Cleveland-Akron area were Lorain County (10.5%), Summit County (9.8%) and Portage County (9.5%). In all seven local counties, unemployment rose from October 2008, generally by about 2 percentage points. The sharpest year-over-year increase was in Lorain County, where unemploy- ment was up 4.3 percentage points, to 10.5% from 6.2%. The city of Cleveland had a 10.5% unemployment rate in Oc- tober. Akron’s rate was 10.4%. 20091130-NEWS--7-NAT-CCI-CL_-- 11/24/2009 5:16 PM Page 1

NOVEMBER 30-DECEMBER 6, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Magazines: Companies investing in niche publications continued from PAGE 3 HERE’S THE STORY custom publishing.” About 40% of Great Lakes’ Some of Great Lakes Publishing’s more notable magazines have reported declining revenue is generated from custom circulation since 2005. The following Great Lakes publications report their total publishing and web site develop- average circulation numbers as of June 30 to media auditor BPA Worldwide: ment, and about 60% by the maga- zines’ circulation and advertising. As of 6 mos. As of 6 mos. % The company hasn’t escaped the Magazine ending June ’09 ending June ’05 change cost-cutting measures that have impacted the media industry and Cleveland Magazine 39,233 44,785 -12.5% most employers. Great Lakes imple- Ohio Magazine 68,671 73,572 -6.7 mented wage freezes this year and reduced the size of its full-time Inside Business 15,853 22,956 -30.9 staff by four employees, though Mr. Harmon said it plans to increase the While BPA did not have national circulation numbers, the consumer magazine size of its staff next year. auditor Audit Bureau of Circulations reported that magazine circulation as of June 2009 compared to June 2008 was down 1.2%. During the like period, Cleveland A new year Magazine was down 9.9%, Ohio Magazine was down 4.4% and Inside Business To capitalize on advertising was down 9.2%. opportunities and garner more niche audiences, Great Lakes plans launched Organic Spa magazine, Lake Erie Living will publish four to add to its portfolio of regional since its inception has experienced times a year rather than six. The magazines — among them West 179% revenue growth and 192% subscription rate will drop to $12.95 JASON MILLER Shore’s Live Well, Valley increase in circulation, of from $17.95, and subscribers also Lute Harmon Jr., president of Cleveland-based Great Lakes Publishing Co., said and Pulse — by launching which about 70% is paid, will receive twice yearly Long Week- the company next year is planning on expanding its events business and in January Circle East Live said Beverly Maloney- ends, a publication that offers readers launching more regional publications. Well and Cuyahoga Valley Fischback, founder and travel options in the Great Lakes and Live Well for Cleveland’s CEO. Ohio River Valley regions. times rather than 12, though Mr. “We want to ensure that there is East Side and Northeast Like Great Lakes Pub- Meanwhile, Over the Back Fence Harmon said Inside Business will substance and quality each time we Ohio’s southern regions, lishing, Oceans Publishing, will be shipped as a supplement to relaunch on a wider format with produce the print publication,” Mr. respectively, Mr. Harmon with 12 employees between Ohio Magazine subscribers. heavier stock, accompanied by a Harmon said. “The economy has said. Rocky River and New York, Its business magazine, Inside redesigned web site, Mr. Harmon affected our ability to do that 12 “We are uniquely posi- Maloney- also is diversifying its prod- Business, next year will publish six said. times a year.” ■ tioned to leverage our infra- Fischback uct line. structure to produce high- It’s working with a Cana- quality magazines for areas of dian software developer on developing interest that were deemed too an Organic Spa iPhone app. It also is narrow in the past,” he said. working with Delta and United West Shore’s Live Well serves Airways to offer the publication in Cleveland’s West Side, Valley targets their VIP clubs. It currently is offered Mahoning and Shenango valleys and in Continental Airlines’ VIP lounges. Pulse serves Lorain County. Not all local magazines have been Great Lakes also acquired three as fortunate. Northern Ohio Live last regional titles in October from Long May ceased publishing after 29 Point Media LLC in Brunswick — years, although two former editors Lake Erie Living, Over the Back Fence recently launched OhioAuthority.com, and Lake Erie Travel Guide. an online arts and culture magazine. The increase in titles at Great The big event Lakes is in keeping with a decade- long industry trend. As for Great Lakes, it’s augmenting According to the American Society the launch of each of its regional of Magazine Editors, regional publi- publications with an associated cations are No. 2 in title growth, with event as part of a larger strategy of their number of titles rising 52% over expanding its events business. a 10-year period, to 1,138 in 2008 The company plans on adding five from 752 in 1998. No. 1 in magazine more of its own events, including a growth over that period were ethnic fall 2010 “Ever After” wedding event. titles. With those additions, Great Lakes Producers of other specialty titles will host or co-host 19 events. are popping up, too. As the publisher extends certain For example, Oceans Publishing product lines, however, it is restruc- Co. in Rocky River, which in 2007 turing others.

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but said 28 of the 30 students who took New York’s bar exam passed it. Bar: Prep courses may influence exam results “Our curriculum is aimed at preparing students to take the bar wherever they’re going to go,” Mr. continued from PAGE 3 that trains professionals for a career better since the start of the decade, takes a relatively small number of Rawson said. “I don’t think of myself “That’s the kind of thing we need that has nothing to do with the bar. and their bar passage rates have topped students passing or failing to change as being in a horse race with Akron to try to find out,” he said. Everyone here teaches to prepare for CWRU’s for the last three years. that number. We don’t want to make and Cleveland State. I think it’s Mr. Rawson speculated that the the profession, not to teach for the For example, 67% of first-year test- too much out of it.” probably true that more of their high number of CWRU students bar. … It’s merely an excuse.” takers at Cleveland-Marshall passed Akron had 89 students take the Ohio students are staying in Ohio.” who come from out of state, and The percentage of CWRU law stu- the exam in 2000; in 2009, that figure bar for the first time this summer, and Mr. Williams said he would bet take bar exams in other states, may dents passing the bar hasn’t varied was 86%, with a high of 90% in 2007. 82 passed. At CWRU, 75 of the school’s “dollars to donuts” that CWRU contribute to the school’s lower widely since 2000, with anywhere Cleveland-Marshall’s passage rate 89 first-time takers passed the state students use the same textbooks as passage rate in Ohio versus its peers from 81% to 88% of first-time test- rose by 12 percentage points in one exam, for an 84% passage rate. Cleve- their Cleveland-Marshall counter- because CWRU does not teach takers passing the summer bar this year after the introduction of a bar land-Marshall had 107 of 125 first-time parts. He said the difference is that specifically to the Ohio exam, as he decade. And for seven straight preparation course in 2006, Mr. takers pass in July. Cleveland-Marshall students have a said other schools do. years, from 2000 through 2006, the Williams said. It’s not a race reputation for being particularly hard Gary R. Williams, director of bar school could boast the highest At Akron, students improved from working, and that preparation helps exam preparation and academic percentage of students passing the a 78% passage rate in 2000 to 92% for Mr. Rawson said this year’s class anyone improve. support at Cleveland-Marshall College Ohio bar among area law schools. the last exam. had 209 students, but that many of Mr. Williams said about 20% of the of Law at Cleveland State University, However, the percentage of “Of course we’re pleased,” associate them chose to take the bar in states school’s students come from out of scoffed at the idea. students at Cleveland-Marshall and dean for academic affairs William other than Ohio. He did not have results state. “I disagree strongly with that,” Mr. the University of Akron School of Law Jordan said of Akron’s success. “As for all 22 locations where CWRU Lee Ann Ward, the Supreme Court Williams said. “This is a law school passing the bar has changed for the pleased as we are to be up there, it students took the test this summer, of Ohio’s director of bar admissions, said the court does not track how the state’s students do on out-of-state exams. She said she wonders if Cleve- land-Marshall’s bar exam review course had a large effect on its increase, and speculated that some of the uncertainty surrounding the lead- ership of CWRU’s law school may MY BANKER have contributed to its slipping in the rankings. “They haven’t had a steady dean for a while,” Ms. Ward said. “Some- one at the helm running the show might be helpful.” Mr. Rawson, who came on as interim dean last fall, will stay until 2011. He is the former head of the Cleveland office of legal giant Jones Day and took the job after former dean Gary Simson resigned only two years into the job amid ragged relations with some alumni and major donors. Ms. Ward also emphasized that a I’M WORKINGGL LATERLATER THANTHTHA USUAL THESE DAYS, but so is small number of students doing better or worse on an exam can make a big my Citizens Banker. She’s in her office crunching numbers. difference in a school’s results. She said all the state’s law schools My numbers. And tomorrow she’ll call, to tell me another way are good, and CWRU continues to I can save or make more money. And when I say “thanks,” have a “great” reputation. But Ms. Ward said that bar exam results are she’ll say, “No thanks necessary. Just doing my job.” important to alumni as well as current students. “We report it to them because it’s important to them,” she said. If you want a banker that works hard for your business visit a Working harder, smarter Citizens Bank branch near you today, call (800) 946-2264 or If a student doesn’t pass the bar, visit us online at CITIZENSBANKING.COM/BUSINESS Akron Law’s Mr. Jordan said, he or she has “a lot of pain” with which to contend. He said anyone who has gone through law school should be able to pass the bar exam, but that Akron has added weekend workshops and for-credit preparation classes to increase students’ familiarity with the two-day test and help them retain the material. He said the faculty at both CWRU and Cleveland-Marshall are good, and that while CWRU’s demographics may be different because it is a private school and the other two are public, he doesn’t want to make too much out of Akron’s recent success. “Whatever the differences may be, I’m not sure where they came from,” he said. For his part, Mr. Rawson said while CWRU encourages students to take bar review courses that are offered at the school, he is not sure whether the 14 students who did not pass the bar took the classes, or if they have anything in common that the school could latch on to as a focal point to increase its scores. The bar-preparation course is being tweaked, he said. “We’re going to work harder and work smarter once we do everything to understand,” he said. “One student failing the bar is too many as far as I’m concerned. My concern is about each student, not about the horse race.” ■ 20091130-NEWS--9-NAT-CCI-CL_-- 11/24/2009 9:34 AM Page 1

NOVEMBER 30-DECEMBER 6, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

Juster to vice president; Lauren Bruce Hearey (Ogletree, Deakins) GOING PLACES Rich Fine to secretary; Richard H. received the Rudolph H. Garfield Circle Zucca to treasurer; Thomas C. of Caring Award. COATS FOR KIDS — CLEVELAND: JOB CHANGES Sullivan Sr. to immediate past OHIO COUNCIL FOR HOME CARE: Debbie Martinko to executive president. ARCHITECTURE director; Loretta Arnold to opera- Diane Korman (Montefiore/NCJW tions manager. WEST TECH ALUMNI ASSOCIATION Hospice) received the 2009 Award of MBI | K2M ARCHITECTURE INC.: INC.: Gloria Janollari Cichon to Excellence. Anthony D. Sarno to project manager. president; Norm J. Colonna to OHIO PROVIDER RESOURCE SERVICE Saillant Hocevar Brown secretary. ASSOCIATION: Steven M. Licciardi AUDIO VIDEO INTERIORS: Gary EDUCATION (Morgan Stanley Smith Barney) received Matthews to director of business AWARDS the Outstanding Volunteer Award. CASE WESTERN RESERVE development, commercial systems. UNIVERSITY: Roger Saillant to COMMUNITY FOUNDATION OF U.S. DEPARTMENT OF HEALTH executive director, Fowler Center for TECHNOLOGY LORAIN COUNTY: Dr. Basabi AND HUMAN SERVICES: Dr. Daniel Sustainable Value. Ratnaparkhi (Medina Village) J. Lebovitz (LifeBanc and Cleveland WESTERN RESERVE ACADEMY: THE KARCHER GROUP: Todd received a Women of Compassion Clinic) received the Region 10 Champion Andrea Hocevar to development Whetstone to controller; Mike Award. Award. Halvorsen to SEO specialist. assistant, leadership gifts. THE FORUM FOR VOLUNTEER WVIZ/PBS AND 90.3 WCPN Armour Chryst Lebovitz ADMINISTRATORS: Melissa J. IDEASTREAM: Betty Cope received FINANCE BOARDS Ghoston (The Free Medical Clinic of the Great Idea Award. CITIZENS BANK: Jeff Burke to COATS FOR KIDS — CLEVELAND: URBAN COMMUNITY SCHOOL: Greater Cleveland) received the Volun- branch manager, Bainbridge. Gary Mincer (Clear Channel) to Martin J. Uhle (Vantage Financial teer Administrator of the Year Award. Send information for Going Places to chairman. Group) to president; Joseph K. HATTIE LARLHAM FOUNDATION: [email protected]. FINANCIAL SERVICE HATFIELD CPA LLC: Jane Wiener to accounting manager. KEY EQUIPMENT FINANCE: Deborah Brown to regional sales director, Great Lakes region. KPMG LLP: David Armour to partner. MCMANAMON & CO. LLC CPAS: Lynna Donofrio to audit supervisor; Jeffrey D. Firestone to director of audit and accounting services and director of litigation services. RYAN: Matthew Tomko to senior consultant.

HEALTH CARE THE FREE MEDICAL CLINIC OF GREATER CLEVELAND: Dr. Marlene H. Weinstein to medical director.

INSURANCE USA INSURANCE: Mark Cole to account executive.

LEGAL BONEZZI SWITZER MURPHY POLITO & HUPP CO. LPA: Thomas L. Colaluca to shareholder. WALTER & HAVERFIELD: Richard W. Chryst to of counsel.

NONPROFIT CLEVELAND HEARING & SPEECH CENTER: Jennifer Heiman, Lindsay Ann Kodramaz and Rachel L. Wellman to clinical fellows, speech language pathologists; Justine M. Leshikar and Jenny Sheargold to speech language pathologists; Carol M. Theil to senior speech language pathologist; Dr. Karen Burk Paull to pediatric neuropsychologist; Timothy N. Thomas to operations manager; Geraldine A. Medoro to develop- ment associate.

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Register for free e-mail alerts and receive: ■ The Morning Roundup: A collection of the day’s business news from Ohio’s daily papers ■ Breaking news alerts: When major news happens, you’ll know ■ Daily headlines: A collection of Crain’s-produced news and blog items from the day ■ eCleveland!: A weekly guide to arts and leisure in Northeast Ohio SIGN UP NOW AT: CrainsCleveland.com/register 20091130-NEWS--10-NAT-CCI-CL_-- 11/24/2009 3:53 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 30-DECEMBER 6, 2009

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Get it right ow that the business community has succeeded in bringing about a change in the structure of Cuyahoga County govern- ment, it needs to address an extremely Nimportant question: What do we want out of county government? Right now, the business community is a lot like a barking dog that finally has latched on to the bumper of the car it has chased for years. It has achieved its objective — now it needs to figure out FROM THE PUBLISHER what to do with its prize catch. The change that will take place in the form of county government in early 2011 thanks to the recent passage of Issue 6 won’t be sufficient to Med mart plan carousel of confusion ensure that the government will operate more efficiently, or that it will advance the economic he community was abuzz after Quicken Loans Arena. who obviously was peeved about this interests of the people and businesses within Cuya- the Chicago developer of our long- I wondered as I read the news accounts latest development in the non-develop- hoga County. Business and civic leaders need to sought medical merchandise mart from the meeting between Cleveland City ment) is that we’re paying these guys a convene an inclusive series of meetings, ASAP, to and convention center told public Council and executives of MMPI Inc. how third of a million bucks a month, and don’t Tofficials that Public Auditorium was all but much of it was negotiating bluster. After know what we’ve received so far. define the role county government should play in the region, and then should lay out a road map for beyond repair and it wanted to slide the all, the original plan was contingent on the I’m sure there’s an answer to that how the government can achieve its purposes. med mart to the north toward Lake Erie. project buying an old deli, small office question, and to think otherwise would The process for setting an agenda for the new There are so many random thoughts building and modest parking garage on the be to suspect that MMPI doesn’t really and questions, it’s hard to know site’s southwest corner, but the want to do the project, or perhaps never government is far more important than the handi- where to start. BRIAN owners were driving too hard a intended to do it at the agreed-upon site. capping that already is going on as to who the new First, and despite my professed TUCKER bargain. After all, the original plan called for the county executive will be. Throwing money and love for historic buildings (I So, was MMPI being forth- convention center’s middle space having support behind candidates who don’t buy into that moved our offices into one two right, and did it really take it this a ceiling considerably lower than the rest agenda would be a waste of both, as well as a waste of decades ago), I had a hard time long to determine the depth of of the complex because it had to go under a once-in-a-generation opportunity to revamp for the understanding how Public Audi- the problems at Public Audito- a street so as to keep intact the sight lines better the way business is conducted in the county. torium was going to fit into either rium? Or was it an attempt to to the lake deemed so precious by original We believe there is wisdom in many counselors, convention planning or a broader leverage Mayor Jackson and how Cleveland planner Daniel Burnham. That and that gatherings of engaged minds can deliver a community use. How many much it would have to pay for a would be nice, but should it drive this building that’s nearly a century once-in-a-generation development project rich agenda. Nonetheless, we do have a few conventions would we get that would require a general assembly old and outdated by all standards that offers so much for the city and region? thoughts about what the directives of that agenda space for thousands of people? applicable to today’s convention or The answer should be clear. MMPI and should be. I love going there for the Rock and Roll concert space? its advocate, Cuyahoga County Commis- The people who will be in charge should be Hall of Fame’s annual gala, but that’s And don’t even get me started about the sioner Tim Hagan, should start appearing committed to driving government efficiency, both once a year. I enjoy thinking about my council members wailing about “bait and everywhere to explain the status, why it’s within county government itself and among munic- nights up in the seats watching the likes switch.” They know as much about these changed and what the payoff would be if ipal governments within the county. To bring about of The Who and David Bowie, but back things as I do, which is dangerously little. we do it right. It’s too painful to think about the latter, the new county chieftains might consider then we had no Wolstein Center or What they do know (as does the mayor, doing it wrong. ■ appointing a czar of shared services, who could look out over the cities and towns that make up the county and could broker or otherwise encourage PERSONAL VIEW collaborative efforts among clusters of them. The county also could create a pot of seed money to provide grants for studies into how such collabora- tions could be executed. Regionalism cannot be universally applied As for dealing with the county’s own operations, the new bosses must do away with the mentality By ALEX KELEMEN Mr. Kelemen is a small business owner in Myron Orfield, a former Minnesota that county government is a hiring hall. Solon. legislator and urban planning consultant, Government’s job isn’t to provide people with ow that Cuyahoga County was one of the group’s early advisers. His voters have passed a reform of philosophy is simple — regions like ours jobs; it’s to provide services as efficiently as possible and to work together to promote a more county government, the focus prosperous region. have a bad economy because their central so that taxes are held in check. That leaves private- will turn to regionalism, the Four years ago, a group of mayors and cities are failing. Cities are failing because sector employers with more money to do more Nreform of municipal government in our community leaders began meeting to their suburbs have sapped them of their hiring themselves, and individual taxpayers with region. But this is one change that will explore ways to achieve these goals. The economic strength. Restore their strength more money to spend on goods and services that likely never come before voters. Northeast Ohio Mayors and City by diverting taxes from prospering produce jobs for other people. If history is any indication, it’s also very Managers Association has admirably suburbs back to cities, and redirect new Business flexed its muscles to help pass Issue 6. It unlikely to ever receive a vote before any taken the first big steps to working development back to those same urban now must put purpose behind its power by playing city council, township board or county together — sitting down and discussing areas through centralized land use plan- an active role in the transformation process. The commission before becoming law. But solutions. Unfortunately, the result of ning. This form of regionalism started over alternative is to get to the end of the reform road, when it is enacted, this regionalism plan their meetings is a proposal, the Regional 30 years ago in his hometown, the Twin will fundamentally reshape the way North- Prosperity Initiative, that is long on tax Cities of Minneapolis-St. Paul. only to be reminded of the classic line from “Won’t east Ohio lives, works and governs. redistribution and a new central land use Regional Prosperity Initiative members Get Fooled Again” by The Who: “Meet the new boss The public has a positive view of region- planning authority, but short on cost have presented their ideas, based largely — same as the old boss.” That would be failure by alism in general. Polls tells us voters want savings and economic benefits. on the Twin Cities model, before local any measure. our local governments to collaborate The solution is due in large part to where leaders throughout the 16-county region. more, to reduce waste and inefficiency, the mayors went for their answers. See VIEW Page 11 20091130-NEWS--11-NAT-CCI-CL_-- 11/24/2009 9:31 AM Page 1

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View: Contact Us For All Of Your Plan warrants careful consideration Corporate Gift continued from PAGE 10 The Regional Prosperity Initiative seeks local endorse- The local response: “We’re in favor of ments, while it remains frustratingly unclear on the Giving Needs! regionalism in principle, but we need more details.” most basic question — how will regionalism come to Which cities will be asked to give Northeast Ohio? 216.226.8300 up future tax revenues? Who makes the decisions on which cities receive this way, as an emergency measure, vote on a regionalism plan. It has the extra tax money? Who will make tacked on to an unrelated bill in the taken a long time to get us to this the decisions on where new devel- Minnesota Legislature. point. Let’s not miss the opportunity Regionalism doesn’t have to be to do this right. opments will be permitted, and how CLEVELAND FOUNDATION much say will the affected commu- forced on unwilling cities. nities have? And most importantly, Denver communities were given Editor’s note: The Ohio Commis- will we get a vote on the final plan? an opportunity to join or leave their sion on Local and Government Instead of answering these ques- regionalism plan by a local vote. Reform and Collaboration holds its Do you know the tions, Regional Prosperity Initiative Regionalism had to be sold to skep- Northeast Ohio hearing this Friday, members point to the Twin Cities tical city governments, based largely Dec. 4, at 10:30 a.m. at the Cleveland Cleveland Foundation? results as an answer and call to action. on results. In the past eight years, Public Library Auditorium, Louis B. Stokes Wing. Public comments are “The Cleveland area is failing,” they Colorado municipalities representing We bet you do know many of the worthy organizations over 87% of the Denver area have welcome. say, “because we don’t plan growth and programs we have funded to strengthen our and cooperate (share taxes) the way joined. Results will answer skeptics community over our 95 years. they do in the Twin Cities.” and reduce distrust faster than pre- WRITE TO US The Twin Cities area has experi- dictions from experts. Send your letters to: Mark Dodosh, The Cleveland Foundation is Greater Cleveland’s Fear of ceding control only can be editor, Crain’s Cleveland Business, enced growth, but this is due in large largest grantmaking organization, and our sole mission part to its white-collar economy, overcome by open, honest dialogue. 700 W. St. Clair Ave., Suite 310, is to make life better for people here. Each year, we compared to our dependence on Our municipal leaders should insist Cleveland, OH 44113-1230 manufacturing. on all the details and the right to a e-mail: [email protected] give about $85 million to reform education, create jobs, We can’t change our economic revitalize neighborhoods, nurture youth, support arts base, but in the aspects the Regional and so much more. Prosperity Initiative says it can control — sprawl, poverty and government When you give to your favorite causes through the costs — the Minneapolis-St. Paul area “ Everybody here Cleveland Foundation, you can tap into our experts in is far from being a model. deals with customers investing and grantmaking so that your gift lasts – In fact, Cleveland outperforms the and keeps on giving – forever. Twin Cities in these categories: Our at some level. region has less sprawl (Brookings, 2009), a lower poverty rate among So everybody African-Americans (Census, 2002) gets training.” and has a lower cost of municipal government (Gund-Miller, 2002). Mark Trushel The Regional Prosperity Initiative President seeks local endorsements, while it Mantaline Corp remains frustratingly unclear on the 135 employees most basic question — how will regionalism come to Northeast Ohio? The only published answer is that the Regional Prosperity Initiative will be enforced on the region by a state The Cleveland Foundation strongly supports mandate. early childhood and youth development programs Regional Prosperity Initiative chair- in Greater Cleveland. man William Currin, the mayor of Hudson, told an Ashtabula audience, “The group wants to enact the plan from Columbus, through state govern- ment, so that each one of the 571 INTERESTED? CALL TODAY, 440 575-7000 216.861.3810 If you want to be remembered, ~OR~ FOR MORE FROM OTHER COMPANIES VISIT TM municipalities in the 16-county region www.clevelandfoundation.org do something memorable. WWW.SALESCONCEPTSINC.COM would not have to sign on individually.” The Twin Cities plan came into being SELL MORE. 20091130-NEWS--12-NAT-CCI-CL_-- 11/24/2009 12:17 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 30-DECEMBER 6, 2009

8-passenger Beechjet 400A Quality Air Transportation Services Anxiety: • Highest safety standards Expectations unrealistic • First class customer service LLC • Convenient, comfortable way to travel continued from PAGE 1 ■ And, lastly, the tax relief they whether you’re going to invest in your Charter revenue available for your under-utilized aircraft “We’re busy, and we’ve been received from the last U.S. president business, he said. “There gets to be a busy all through this downturn,” is set to go away when the so-called point of diminishing returns where Mr. Kokal said. “There were several Bush tax cuts expire at the end of you say, ‘Do I want to get bigger?’ times in 2009 when every single 2009. Because it really is hard work,” Mr. bench and table at Micro Labs was “They haven’t seen anything from Gordon said. the government that helps them yet,” full of work and more was coming Expand? Not us in — but I didn’t hire anyone said Thomas Murphy, head of the Cleveland Hopkins Airport - Atlantic Aviation because I didn’t want to hire anyone manufacturing consulting group It would be easy to chalk up such 216-362-9904 • [email protected] • www.SkyQuestLLC.com and then just have to lay them off. for RSM McGladrey in Chicago. angst as just so much partisan carping “I’m at the point where I need to “We’ve got to have a pro-growth in an era of increased political polar- expand, but I don’t know what to do manufacturing agenda, and I don’t ization in almost every segment of because of our people in Washington,” see that coming out of (Washington) American society, including business. Mr. Kokal said. yet — that’s why these small to mid- But, in the end, the politics of the Local manufacturers such as Mr. sized guys are so reserved.” nation’s small and midsize manufac- turers hardly matter. Kokal say charting a course amid Feeling hated today’s business and political climates Regardless of their political lean- is like steering a ship through choppy Brendan Slabe, owner of Slabe ings, the government is counting on seas with no map or weather fore- Machine Products, a contract them to hire or rehire workers when cast, all while being bombarded by machine shop in Willoughby, puts it the economy begins to rebound — proposed government policies they more bluntly. and many businesses say they won’t, fear will sink them. “If they hate manufacturing this because they’re just too scared and too As a result, they say they’re in no much, why don’t they just put a ban unable to predict their future costs. mood to load up their ships with on it?” said Mr. Slabe, who employed Some could already use extra new crew members and equipment about 125 workers before the eco- employees, but are delaying adding — which, ironically, is just what the nomic downturn hit with full force them — as is the case with Micro government wants businesses to do last year. Laboratories’ Mr. Kokal and others in order to alleviate unemployment and help tow the nation out of the “If you’re going to live in an environment where 50% dark waters of the recession. A slew of threatening counterpro- or more of what you make is sent away (in taxes), you ductive developments are coming really have to think about” whether you’re going to out of Washington, according to local invest in your business. manufacturers, who say: – Mike Gordon, owner, Tendon Manufacturing ■ So-called cap and trade legisla- tion, meant to avert climate change by using tradeable pollution credits “So far, the stimulus package has who say they will drag their feet. to limit carbon emissions, will put stimulated us down to about 80 “We’re not going to hire, we’re not them at a competitive disadvantage people,” Mr. Slabe quipped. going to expand, we’re not going to to overseas companies that already Mr. Slabe is no fan of the Obama do nothing — we’re just going to try have lower regulatory costs. administration. But he describes to make it by,” said Roger Sustar, ■ The proposed Employee Free himself as non-political — and for all owner of Fredon Corp. in Mentor Choice Act will enable unions to his vitriol toward the current federal and a sort of modern Sam Adams coerce their workers to organize, government, others are even more who uses e-mail to keep many local driving up their costs and impacting angry and strongly opposed to some, manufacturers abreast of, and some- their flexibility to manage their if not all, of the administration’s ini- times infuriated by, federal policies. workplaces. tiatives. “There’s so much uncertainty,” Mr. ■ Health care reform will punish One might guess before he even Sustar said. “With health care, with those who do not provide health speaks that Mike Gordon is not (Employee Free Choice), with cap and care benefits by imposing new happy. The owner of Tendon Manu- trade — no one’s really sure what the fines, while those who do provide facturing in Cleveland has an office hell is going on.” décor that might be called “post- benefits worry that the cost of new ‘A general pall’ health care provisions will drive up Reagan,” with commemorative photos their tax rates. and even a bust of former president Therein lies the threat, said Ken ■ Government spending is and conservative hero Ronald Reagan Mayland, owner of ClearView Eco- threatening to cause high interest festooning his walls and tables. nomics in Pepper Pike and an econ- rates and a devaluation of the “Where is the money going to omist who counsels many area man- dollar, which might boost exports come from for all of this?” Mr. Gordon ufacturers on economic issues. but also would drive up their cost of asked. “If you’re going to live in an “All this (government policy) is borrowing and the price they pay, environment where 50% or more of creating an extra degree of uncer- for everything from oil to steel on what you make is sent away (in taxes), tainty, and the way uncertainty the world markets. you really have to think about” operates on business is to make them more cautious with all busi- ness behaviors — like hiring, capital spending and ordering more for the future instead of ordering just for the moment,” Dr. Mayland said. THE “INVISIBLEE HEROES” PRESENT “I talk to manufacturing groups quite often, and I hear what you’re hearing — that there is a lot of fear WEBINARS of WONDER! about all this stuff that’s coming down and that is not going to be Our “Invisible Heroes” will take off their masks and give you a free glimpse of good for business ... there’s a general their expertise with a new series of presentations to help your private business. pall over everyone,” he said. It’s a study in irony, as the very International Financial policies Congress and the adminis- Reporting Standards (IFRS) tration hope will boost the nation’s Thursday, December 10, 2009 @ 9:00 a.m. economy are the same policies likely to create a drag on the hiring and Make a smooth transition before the complex international expansion needed to drive economic oyster perpetual regulations can take a bite out of your business. growth, the economist said. day-date ii Prepare today for the SEC’s pending issuance of an Dr. Mayland said an economic IFRS implementation timetable. recovery will still come — and no Presented by Pamela Dunlap, CPA and Audit Principal amount of anger or anxiety is likely at Apple Growth Partners. to stop it if the world economy picks up and creates growth generally. Register today at IWantHealthyGrowth.com Pamela Dunlap, CPA and Audit Principal But that recovery could take longer to manifest itself in the form of job Akron P 330.867.7350 growth and could be less wide and Westlake P 440.871.8288 deep than the government hopes if Apple growth is healthy growth.SM Mayfield P 440.460.1980 businesses remain too uncertain or OFFICIAL ROLEX JEWELER fearful to act quickly on any signs or W www.applegrowth.com ROLEX OYSTER PERPETUAL AND DAY-DATE ARE TRADEMARKS. © 2009 Apple Growth Partners recovery, Dr. Mayland said. ■