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Budget Cuts Bring Rocky Road For 20160404-NEWS--1-NAT-CCI-CL_-- 4/1/2016 3:04 PM Page 1 VOL. 37, NO. 14 APRIL 4-10, 2016 MANUFACTURING: M & A Business of Life Deals again should abound in 2016. P. 4 Raising horses Canton attorney REAL ESTATE: For sale? is enjoying the ride Richmond mall has murky future P. 30-31 P. 6 Source Lunch THE DISH: Healthy gesture CLEVELAND BUSINESS Edwins founder is making difference Dominic Ozanne talks construction P. 13 P. 32 Local printers must be up to speed on tech Companies are investing in presses that use ultraviolet light to dry ink instantly BY CHUCK SODER commercial printing presses have released versions equipped with UV [email protected] light sources that generate signifi- @ChuckSoder cantly less heat. These new ma- chines not only use less energy, but Last fall, one of Scott Durham’s they can also be used to dry ink on all biggest clients made a request he sorts of heat-sensitive materials, like couldn’t meet. plastic. They wanted his company, HKM So the phrase “hot off the presses” Direct Market Communications, to doesn’t apply to these new ma- print a catalog using a technique chines. that may have a big impact on the As a result, a growing number of commercial printing industry — UV print shops are reaping the benefits curing. of UV curing: Not only does the tech- HKM couldn’t do it. So the Cleve- nique produce a brighter, glossier fi- land company proposed a solution nal product, but it dries the ink im- that would only work once: They mediately. The Greater Cleveland Regional Transit Authority might discontinue weekend service for the 77F bus route would give the cover of the Winter No need to store the paper while it that runs from downtown Cleveland to Independence. (Marc Golub) Wonderland catalog to an out-of- dries or apply additional coatings. So state company that could hit it with if you need to print something on ultraviolet light and make the the other side of the paper, you pull snowflakes really shine. Then HKM it out of the machine, flip it over and would print the rest of it using a tra- stick it right back in the other side, Budget cuts bring ditional coating — a coating that Durham said. doesn’t quite pack the same punch. “When something comes off this HKM won the job, but the client press, it’s bone dry,” he said. made it clear that they’d lose the The UV curing capability speeds next one if they couldn’t do UV cur- up the entire printing process, di- rocky road for RTA ing. rectly or indirectly. And of course, So HKM bought a new printing the fact that the machine is brand press that could do the job. new helps, too: HKM’s new Komori Many other print shops are mak- Lithrone G40 churns out about Transit authority needs to reduce $7 million from its ledger ing the same decision these days, 15,000 sheets per hour. It sits next to BY JAY MILLER abrese said, kicking off a 25-minute said Durham, CEO of HKM. His another Komori printing press HKM presentation describing the poten- brother Rob is president. bought over a decade ago. It was MORE ON THE RTA [email protected] tial service cuts and the fare increase “That’s the trend of the industry running at 9,500 sheets per hour ● Crain’s editorial: The state needs @millerjh options. “Our goal in life is not to re- right now. … If you don’t have it, when Crain’s visited the plant two to step up. Page 10 duce service but to increase service. you’re not going to be considered for weeks ago. ● More riders are using transit Unfortunately, we find ourselves in a lot of jobs,” Scott Durham said. Thus, HKM can take on jobs that A half-dozen members of the systems, but public funding has this situation because of funding Granted, printers have been using require faster turnaround times. And crowd of about 30 people who came steadily decreased. Page 29 cuts. It’s not a fun time at RTA.” UV light on specialty jobs for it will have the extra capacity to take out to Christ the Redeemer Lutheran decades. those jobs, since the machine is so Church in Brecksville on a recent Over the past eight years, howev- much faster than the one it replaced. Tuesday evening arrived, and later hourly — is one of the possible cuts. The state of things er, several companies that build SEE PRINTERS, PAGE 35 left, on the 77F — a bus route that Weekday and evening service, more While the assembled riders of the runs from downtown Cleveland on frequent during rush hours, would 77F and other lines facing cuts Interstate 77, exits the freeway near continue unaffected. would ask questions about how their Entire contents © 2016 by Crain Communications Inc. Rockside Road in Independence and RTA is considering a number of rides to work, church or cultural op- travels south on Brecksville Road be- options, including a fare increase portunities in Cleveland would be fore circling around a business park and 17 cuts of service similar to the affected, or complained about the at Snowville Road and heading back 77F proposal, to bring its 2016 budg- fare increase, Calabrese’s presenta- north. et into balance. General manager tion offered a brief tutorial on the The transit-dependent and the Joseph Calabrese told the group in sorry state of public transit financing others came to hear how the plans of Brecksville that those are the only in Ohio. That state component, he the Greater Cleveland Regional ways he and his staff can find the $7 said, plays a major role in RTA’s cur- Transit Authority to balance its million they need to balance the rent financial dilemma. budget might affect them. Discon- nearly $300 million budget. Echoing his testimony in February tinuing 77F service on the weekends “There is no easy answer to what before an Ohio joint legislative — a service that currently runs we’re going to discuss tonight,” Cal- SEE RTA, PAGE 29 20160404-NEWS--2-NAT-CCI-CL_-- 4/1/2016 11:26 AM Page 1 20160404-NEWS--3-NAT-CCI-CL_-- 4/1/2016 3:04 PM Page 1 Classic Hyundai 49,%2",6$-%.4/2s440-266-6700 NEW 2016 HYUNDAI Per mo. $2,995 DUE $ 36 at lease signing (Cash or Trade!) Month *Lease Includes (10,000 miles/year - 20¢/mi. over) Lease** HMF leases plus taxes, title, license & $250 doc. fee. U *"7 , 7 "7-É" UÊ-/ / Ê, " “Valued79Owner Coupon” ", 0% APR For 72 ÃIII UÊ 9 --Ê /,9 -OR-“Competitive Owner Coupon” Save an additional $500! PLUS...$1,500 UÊ­£nÓ® Please call for complete details. NEW 2016 HYUNDAI $2,995 DUE Per mo. at lease signing (Cash or Trade!) 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Sale Ends 4/7/16. www.DriveClassicHyundai.com 306 2 2 2 615 306 Drive .com 20160404-NEWS--4-NAT-CCI-CL_-- 4/1/2016 3:05 PM Page 1 PAGE 4 z APRIL 4 - 10, 2016 z CRAIN’S CLEVELAND BUSINESS FOR SALE OR LEASE UNIQUE OFFICE SPACE Manufacturers laying 6675 PARKLAND BOULEVARD SOLON, OHIO foundation for deals BY RACHEL ABBEY MCCAFFERTY of non-core businesses will lead to a search and development to create it. lot of private equity activity in 2016, Companies that have invested in [email protected] as they can offer good opportunities research and development will play @ramccafferty for firms to invest for growth. offense in this market, Monico said, “There’s a lot of capital on the adding they’ll be looking to invest It’s a pretty good time for anyone sidelines,” Harnett said. for the future or to acquire for mar- looking to buy or sell a manufactur- ket share or new technologies. Some ing company. of the technologies he thinks are Experts expect a good 2016 for Foundation work particularly attractive are industrial • VTXDUHIHHWRIRIÀFHVSDFH merger and acquisition activity in Al Melchiorre, president of invest- automation, industrial “Internet of SDUNLQJVSDFHV the sector, though some said the ment banking advisory firm Melcap Things” products, and products that Visit year was off to a slightly slow start. )XOO\IXUQLVKHG TerryCoyne.com Partners LLC of Medina, agrees that support fuel efficiency. Last year, though, was particular- Or call Terry at there’s a lot of liquidity in the mar- At Beckett Gas, the company has &RUSRUDWHRZQHG 216.453.3001 ly strong for manufacturing deals; a ket from private equity firms and an “appetite” for higher-efficiency 1HZURRILQ report from PwC US found that deal strategic corporate buyers.
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