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Crain's Cleveland Business 20160425-NEWS--1-NAT-CCI-CL_-- 4/22/2016 2:41 PM Page 1 VOL. 37, NO. 17 APRIL 25 - MAY 1, 2016 CLEVELAND BUSINESS Entire contents © 2016 by Crain Communications Inc. 20160425-NEWS--2-NAT-CCI-CL_-- 4/21/2016 2:48 PM Page 1 Cleveland is growing fast. And AT&T is growing with you. Our investment in Cleveland goes deeper than you thought. Underground and overhead, we’re building a cutting-edge fi ber-optic network in Cleveland. Giving businesses the speed and fl exibility they need to compete, create jobs, and thrive for years to come. We’re making Cleveland AT&T Fiber Ready. Learn more about business fi ber at att.com/fi berready © 2016 AT&T Intellectual Property. All rights reserved. Services not available everywhere. 20160425-NEWS--3-NAT-CCI-CL_-- 4/21/2016 2:36 PM Page 1 I-X Center Wi-Fi A new wireless network at the I-X Center ensures exhibitors and guests always have a blazing-fast, reliable Wi-Fi connection. Congratulations to Crystal Wilkie, IT Director, and the I-X Center team for their vision and forward thinking approach. It’s just one reason the I-X Center was awarded the Crain’s CIO Business Project of the Year. Proud technology partners to the I-X Center 440.625.1955 | [email protected] | www.bnteam.com [email protected] | samsung.com/wlan >P-Pc,U[LYWYPZL077OVUL:`Z[LTZc/++PZWSH`c/PNO+LÄUP[PVU;=c4VIPSL+L]PJLZ 20160425-NEWS--4-NAT-CCI-CL_-- 4/22/2016 2:11 PM Page 1 PAGE 4 z APRIL 25 - MAY 1, 2016 z CRAIN’S CLEVELAND BUSINESS LEASED Lorain’s steel industry 4580 EAST 71ST STREET CUYAHOGA HEIGHTS, OHIO is almost at standstill BY RACHEL ABBEY MCCAFFERTY happen any time soon. He said he Root causes doesn’t think the mills will restart Sealy pointed to the downturn in [email protected] until next year at the earliest. the energy market and the low-cost @ramccafferty “I mean, they’re struggling, really dumping of foreign steel as the ma- struggling, now,” he said. Terry Coyne and Kristy Hull jor factors contributing to the cur- If there’s a city that encompasses And that struggle extends beyond rent environment, and he believes represented the repercussions of the steel down- the plants and workers directly af- the Trans-Pacific Partnership trade turn, it’s Lorain. fected. deal will make things worse by al- Consolidated Electrical The city is home to two large steel Lorain Mayor Chase Ritenauer lowing even more foreign goods to plants, one of which is currently shut said he’s expecting $2 million to $3 be sold in the U.S. The solution has Distributors, Inc. down. The other is only running one million less in tax collections from Visit of its three mills, according to the the companies because of their di- to start at the top with the govern- in their expansion TerryCoyne.com union. Both have left hundreds with- minished workloads. The city’s total ment, he said. and relocation. Or Call Terry at out jobs and will contribute to a like- general fund is about $28 million to Companies currently have to 216.453.3001 ly budget shortfall for the city. $30 million, so a loss like that can be show damages before tariffs can be The issues plaguing the plants “catastrophic,” he said. applied — and by the time action is aren’t unique. The steel industry has taken, employees, like those in Lo- been facing oversupply globally; do- rain, are already out of work. mestically, producers have also been Companies and politicians alike 1350 Euclid Ave., Suite 300 “It’s been longer have been striving recently to get Cleveland, Ohio 44115 struggling with a strong dollar and low oil prices driving down demand and deeper than this issue addressed. for drilling-related products. At the global level, United States “It’s going to be a rough couple we can withstand officials on April 18 met in Brussels years,” said Brian Sealy, staff repre- with representatives from the Euro- sentative for the United Steelworkers. pean Union, as well as from coun- Sealy, who worked in the Lorain without making tries like Japan and Mexico, to dis- plants for about 20 years before join- sizable cuts cuss steps governments could take CONTINUE TO BUILD ing the USW staff, said he hasn’t to deal with the overcapacity. seen a downturn like this since at The week before, the Office of the least 2009, when the entire economy on our own.” U.S. Trade Representative and the took a dive. Even then, both mills — Chase Ritenauer Department of Commerce held a “limped along” instead of shutting hearing on the state of the steel in- YOUR BUSINESS Lorain Mayor dustry. U.S. Sens. Rob Portman, R- down, he said. Canton-based Republic Steel shut Cincinnati, and Sherrod Brown, D- With our strong its Lorain plant at the end of March Police and fire make up about 65% Cleveland, were two of the and is just keeping security and a of the budget, he said. The police and politicians who testified. team of Credit Unions, few people on site to protect its as- fire departments have offered con- Portman’s testimony focused on sets. Pittsburgh-based United States cessions, but the city is still waiting to creating a “level playing field” for CBS will fi nd the right Steel Corp. is operating its Lorain see if it gets a federal SAFER grant to U.S. steelworkers, noting that record plant on a limited basis. cover the rest. If not, Ritenauer said, amounts of foreign steel entered the loan structure for Neither company would com- there will be layoffs. The city’s other United States last year while domes- your business. ment beyond confirming the status departments will have layoffs and tic exports declined. of the operations. furloughs, and capital projects with- Brown said in a call after the hear- Sealy estimated that more than out a dedicated revenue source, like ing that he follows the steel industry 300 people are currently laid off at street repairs, are on hold. closely, because it is in many ways U.S. Steel; another 550 are out at Re- This is a stark change for Ritenauer, still the “foundation of manufactur- public. And Republic’s parent com- who entered office in 2012. 2014 was ing.” pany offered settlements or buyouts a “banner” year, he said, with hun- He wants to see the government to its workers, he said. Sealy said dreds of thousands of dollars of in- renegotiate the Trans-Pacific Part- more than 300 took them, which come tax coming in above budget. nership to address dumping of Contact Jonathan A. Mokri means that companies will have a The layoff notices started in 2015. products from countries such as 440.526.8700 • [email protected] • www.cbscuso.com hard time staffing their local mills if “It’s been longer and deeper than China and Korea. and when they get them running we can withstand without making “When steel stumbles, so much of Business Lending in Partnership with Area Credit Unions SM again. sizable cuts on our own,” Ritenauer the rest of the economy is hurt,” But Sealy doesn’t expect that to said. Brown said. CORRECTION In an April 18 story on Page 17, Dara Perrin’s name was misspelled in the LANDERHAVEN headline. Perrin is the owner of In- terstate Freight Carriers in Solon. For life’s most important CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 moments. Phone: (216) 522-11383; www.crainscleveland.com Reprints: 212-210-0750 Krista Bora [email protected], Customer service and subscriptions 877-824-9373 Volume 37, Number 17 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113- 1230. Copyright © 2015 by Crain Communications New Image Photography Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Bar & Bat Mitzvahs, Birthdays, Anniversaries, Showers, Weddings. Crain’s Cleveland Business, Circulation Depart- Flexible event space with a variety of rooms and outdoor locations. ment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. CONTACT ONE OF OUR EVENT CONSULTANTS TODAY! REPRINT INFORMATION: 212-2210-00750 440.449.0700 or [email protected] Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Al- low 4 weeks for change of address. For subscription in- formation and delivery concerns send correspondence to 6111 LANDERHAVEN DRIVE Audience Development Department, Crain’s Cleveland CLEVELAND, OH 44124 Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- 9911, or email to [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20160425-NEWS--5-NAT-CCI-CL_-- 4/22/2016 2:32 PM Page 1 CRAIN’S CLEVELAND BUSINESS z APRIL 25 - MAY 1, 2016 z PAGE 5 Quicken Loans is headed to Higbee BY STAN BULLARD require different permits, but put the for its Cleveland office, declined estimated cost of the work at $19 comment. [email protected] million. Forest City spokesman Jeff Linton @CrainRltywriter The exit stands to compound For- said the company never comments est City’s growing vacancy problem on individual properties or tenants at Post Office Plaza. CBRE Group is as a matter of policy. Look for more lights to go on at marketing almost 270,000 square The companies in the portfolio of the Higbee Building at 100 Public feet at the 434,491-square-foot investments for the casino owner Square in downtown Cleveland, in building for Forest City, including and operator also hold their cards addition to those of Jack Cleveland 55,000 square feet on the fifth floor close to the vest on this question.
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