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NOT YOUR EVERYDAY CUSTOMER VOL. 37, NO. 21
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She’s striving to form a more cohesive arts community in Summit County. Page 34
Mark Messina helps with Toddler Rock, a music therapy program for preschool-age kids. Page 33
CLEVELAND BUSINESS
MANUFACTURING
Still all in the family Mark Smucker is fifth generation to head the family-run food giant By DAN SHINGLER dshingler@crain.com @DanShingler
It would have been easier for Mark Smucker if he’d been born earlier. If he’d been only the second, third or fourth generation of his family to run the big and famous J.M. Smucker Co. business in Orrville, he’d have only had one business to run, maybe two. As it is, he’s the fifth of his line to ascend to the company’s CEO post and he comes at a time when the company has become a behemoth. He sits atop three separate lines of business, each with about $2 billion in annual sales. “I’ve got a lot of people helping me,” he said, referring not only to family members like his “cool uncle” Richard — who became executive chairman when Mark became CEO on May 1 — but to the 7,000 people that the company employs. It was not a foregone conclusion that another member of the family would take the helm. One might imagine that Wall Street might look on and say: “Really? Another Smucker? That’s the best choice?” and have a valid question. SEE SMUCKER, PAGE 31
ILLUSTRATION BY GIULIA BERNARDELLI
CycleWerks revs up for expansion FOCUS Page 13
DEVELOPMENT
Riddell could call audible, relocate to North Ridgeville By STAN BULLARD
Entire contents © 2016 by Crain Communications Inc.
sbullard@crain.com @CrainRltywriter
Six football fields. That’s the size of a building proposed in North Ridgeville that’s believed to be a new home for Riddell, a football helmet and equipment maker now in Elyria, in a $25 million project. North Ridgeville Mayor David Gillock is hopeful the project could reuse a 40-acre site at 38889 Center
Ridge Road that he characterized as an eyesore. The site, visible from the Ohio Turnpike, housed a long-vacant shopping center until it was razed for a retail development in 2009 that ultimately did not proceed. Although Gillock and the city council of the Lorain County suburb on the collar of Cuyahoga County are in talks for the project and readying documents to clear the way for it, the mayor said he signed a nondisclosure agreement with the prospect’s site consultant, real estate
brokerage Avison Young, and would not identify the company behind it. However, Elyria Mayor Holly Brinda said the project sounds similar to one she and her staff have discussed with Riddell to allow it to expand and remain at its current building at 669 Sugar Lane. She said her staff has offered incentives to encourage the company to renew the lease at its current building and expand on an adjoining 40-acre farm to keep the company’s 490-person payroll in the city. SEE RIDDELL, PAGE 37
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Construction of a $15 million data center building by Cedar Rapids, Iowa-based Involta looks to be headed to a site on Pleasant Valley Road in Independence. “We’re pretty close,� said Involta CEO Bruce Lehrman. “I think everyone is aligned on this, but we have some more negotiations with the property owner and the city to complete.� However, major factors are in place for the bunker-like structure housing multiple servers. Independence Planning Commission on May 3 approved plans for the building to rise on a greenfield site on Pleasant Valley. The city council is considering an incentive package for the project under terms the city has approved in the past. Lehrman declined to identify the owner of the 7-acre site or proposed address specifically because of security concerns. Finding a location in the Cleveland area has been a process the company embarked on two years ago.
“A lot of factors come into play with a data center. ... It limits the number of locations you can consider.� — Bruce Lehrman, Involta CEO “A lot of factors come into play with a data center,� Lehrman said in a phone interview. “One is good utilities and fiber access. We also have to avoid risks that clients identify for a data center, such as a certain distance from interstate highways, railroads and airport. It limits the number of locations you can consider.� The 25,000-square-foot building is primarily a concrete structure built to withstand tornadoes and other significant weather hazards. The building will have a small office component but primarily house computer servers.
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The suburb’s council at its May 10 meeting introduced a measure to provide a grant to Involta. The grant would be $3,300 yearly, or a total of $33,000 over 10 years, if Involta meets its goal of having a 10-person staff. Involta’s 10-person staff is projected to have an annual payroll of $650,000. Although the council action would make it official, the suburb’s mayor, Anthony Togliatti, and Lehrman have agreed to terms of the pending incentive package. Although the incentive is calculated on a 10-person staff, Lehrman said the final size of the staff in Independence is not yet determined. The facility is staffed constantly, he said. Togliatti said the city would benefit not only from the new business but from Involta’s ability to provide an amenity that some of the city’s businesses might need. When the Independence structure is completed in mid-2017, it will join other Involta operations in Akron and Youngstown in Northeast Ohio. The addition of the Independence center, Lehrman said, means the company can build a fiber ring with its Akron location to allow real-time replication of data between both locations in less than a millisecond. Involta provides clients the opportunity to buy storage on its servers or the cloud or locate their own equipment in the properties. About 40% of Involta’s clients are health care concerns, Lehrman said. Involta also serves third-party service providers that cater to small and midsize business and technology concerns.
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Researchers from Case Western Reserve University are closely studying the Hub 55 project, which aims to create jobs, increase food access and encourage healthy food education and consumption. Through Hub 55, a mixed-use development project, St. Clair Superior Development Corp. plans to establish a food hub, which centralizes in one facility food storage, processing, distribution, marketing, retail and more to promote healthy food access. It has the potential to shift eating behaviors, healthy food access, neighborhood perception and so much more. But the funds are limited, as would be any possibilities to truly examine these potential impacts — if it weren’t for a $2.3 million federal grant CWRU secured last year. The three-year Future of Food in Your Neighborhood Study (foodNEST) is led by CWRU’s Prevention Research Center for Healthy Neighborhoods (PRCHN) and Center for Reducing Health Disparities (CRHD). “We took advantage of this opportunity to examine in a much more rigorous way what happens when the food retail environment changes and the social food environment changes?” said Darcy Freedman, PRCHN associate director and associate professor of epidemiology and bio-statistics. Hub 55 is well underway. Café 55 opened last year. Goldhorn Brewery is slated to open in the next month or so. Plans for the remaining parts of the facility, which is a renovated industrial office complex, are underway and likely will include some office space, a marketplace and a location to support food entrepreneurs and food-based businesses. The foodNEST research helps to look at not only the changes of the physical food environment, but also some of the social connections
Case Western Reserve University researchers are studying healthier food programs in Cleveland neighborhoods. (Contributed photo)
“You have this abundance of food, but it’s all bad choice, high in fat, high in sugar, high in sodium.” — Stephanie Pike, CWRU pre-doctoral graduate fellow working under the foodNEST grant around food and the culture of the community, said Morgan Taggart, director of agriculture for St. Clair Superior Development Corporation. “And I think that’s what’s really unique about this project and also unique about the evaluation that Case put together that’s not only looking at things like dietary recall and food consumption and shopping patterns, but also perceptions,” Taggart said. “Do you feel engaged in your community? Do you feel like you can make a difference? Are you
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taking advantage of any of the cooking education classes or neighborhood cooking circles or garden network meetups?” It’s not common to see funding for in-depth research align so well with an ongoing project. Typically, when receiving a grant of this size, Freedman said there would have been a year of planning for the actual research, but with Hub 55 already underway, “We had to fly by the seat of our pants.” Stephanie Pike, a pre-doctoral graduate fellow who’s working under the foodNEST grant, worked quickly over the past several months to collect a baseline framework of the neighborhood. For more than 85% of people who live in St. Clair Superior, the healthiest item they can access within a quarter-mile radius is canned vegetables “in a sea of chips and soda and all sorts of other things that aren’t really that good for you.” The term “food desert,” which is brought up often in healthy food access discussions, is pretty limited, Pike said. Through the foodNEST research, she expanded that definition to look at convenient stores, gas stations and other places to purchase food that aren’t encompassed in the traditional idea of food deserts. “What we found was that it’s not really a food desert per say, it’s like a food swamp,” she said. “You have this abundance of food, but it’s all bad choice, high in fat, high in sugar, high in sodium.” Meanwhile, two partners in Columbus — the John Glenn College of Public Affairs at Ohio State University and the Parsons Avenue Merchants Association — are looking at a comparison neighborhood that isn’t going through such a transformational change. The Hub 55 project looks to change that in hopes of encouraging healthier food choices, but without the foodNEST grant to examine that, there would have been no way of knowing whether the attempt to change food behavior was successful. “It wouldn’t be really looking at behavior change, environment change,” Taggart said. “Some of those bigger ripple effects in the community, with this type of project we would not have the resources or capacity and expertise to be able to measure without the foodNEST study.”
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Startups scoop up Venture for America fellows Entrepreneurial college grads find career, community in Cleveland By CHUCK SODER csoder@crain.com @ChuckSoder
Boxcast has already hired five fresh college graduates through the Venture for America program. And CEO Gordon Daily says he may very well hire another from this year’s graduating class. He loves the Venture for America program. Loves it. After all, the national fellowship program has provided his Cleveland-based startup company with a steady pipeline of well-rounded, entrepreneurial overachievers from all over the country. People he shouldn’t be able to afford. “I’ve never met a VFA candidate that I wasn’t impressed with,” Daily said.
Several local CEOs have lavished praise on the Venture for America program since 2013, when it started helping local startups hire recent college graduates who are interested in entrepreneurship. And some of those CEOs now have multiple VFA fellows on staff. Like Boxcast — which makes a device used to stream live video via the internet — Genomoncology has hired five VFA fellows so far and may still hire another one this year. To say that CEO Manuel Glynias likes the Venture for America program would be an understatement. The program has given his genetic data analysis software company a way to hire students who would normally be scooped up by big management consulting firms or end up in law school, Glynias said, noting that
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Venture For America participants include, left to right, Robert Palacios, Julie Block, Alexa Wilcox, Lena Kelly, Michael Tantum and Taher Hassonjee (front). (Contributed photo) many of them started businesses while in college. The fellows he has worked with so far “have all been stars,” he said. They’re the types of students to whom he can continuously feed harder tasks. And despite their youth, they also know how to carry themselves when dealing with clients and people many years their senior.
For instance, Glynias says that many of the Cleveland company’s clients speak highly of Michael Tantum, an account manager hired straight out of Wake Forest University in 2014. “I don’t think many of them understand that he’s only a year and a half out of college,” Glynias said. While in school, Tantum started a
company called Sun Tape, which made tape designed to measure the sun’s power generating potential in any given spot. That experience made it clear that he didn’t have all the skills he needed to run a business. Tantum plans to continue his entrepreneurial education at Genomoncology, even after his SEE VFA, PAGE 35
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River SaaS Capital begins lending to startups Private lender closes its first deal with local software company Banyan Technology BY CHUCK SODER csoder@crain.com @ChuckSoder
River SaaS Capital wants to lend money to software companies — even if they haven’t yet turned a profit. The new company, a subsidiary of River Capital Finance in Westlake, is hunting for “software as a service”
companies that can generate significant recurring revenue, even if they don’t yet qualify for a traditional bank loan. In January, River SaaS Capital made its first loan to Banyan Technology, a freight management software company in Elyria. And it has “about a half dozen in the pipeline,” said River SaaS president Matt Kennedy. The lender is looking to do deals in this re-
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gion and in nearby states. “We’re going to start from here and grow out,” said Kennedy, whose family owns a few local businesses through a holding company called TruWest Co. River SaaS Capital is part of a trend: A small-but-growing number of private lenders are starting to make loans to startups. These socalled venture debt lenders often look for fast-growing companies that have either reached profitability or can see it on the horizon. Many of the lenders target companies in the software as a service category, which means that they offer their software via the internet on a subscription basis. That business model makes it possible for those companies to generate reliable, recurring revenue. And lenders like predictability. What drove River Capital Finance to get in on the trend? The company, formerly known as MRK Leasing, offers loans and leases to businesses in the process of buying material handling equipment — think barcode scanners and other inventory tracking systems — and computer equipment. Occasionally, companies selling those products would send River Capital Finance a SaaS software company looking to finance desktop computers or equipment for a data center. Those software companies often wouldn’t meet River Capital Finance’s financial requirements, so it formed River SaaS Capital to provide them with loans that will usually range from $500,000 to $1 million, Kennedy said. A few of River Capital Finance’s employees are dedicated to the new subsidiary, which otherwise
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“We’re going to start from here and grow out.” — Matt Kennedy, River SaaS president shares employees and resources with its parent company in Westlake. Granted, it is riskier to lend money to younger companies that don’t have long track records of profitability or significant physical assets that can serve as collateral. To mitigate that risk, River SaaS Capital’s interest rates are somewhat higher than rates charged by banks, Kennedy said. It also takes a close look at the borrower’s business. For instance, River SaaS Capital will consider a software company’s growth rate, customer retention rate, gross margins and the quality of the management team, he said. He noted that borrowers will typically have to be generating at least $150,000 in recurring revenue each month.
A few local companies have raised venture debt over the past year. They include two Cleveland-based SaaS software companies, OnShift and StreamLink Software, and a medical technology company in Oakwood Village, ViewRay. And then there’s Banyan. The freight management software company was in a good position to serve as River SaaS Capital’s first customer, said Banyan CEO Jim Walborn. For one, the two companies have known each other for years. River SaaS Capital’s CEO, Mike Kennedy, Matt’s father, serves on Banyan’s board, and multiple members of the Kennedy family are investors in Banyan. Though Banyan had reached profitability, it needed more capital to speed up its expansion efforts, Walborn said. The money helped Banyan hire seven new sales people and a marketing director. Why not raise more cash from investors? Banyan, which has 36 employees, wasn’t interested in giving up more shares in the company, Walborn said. “The greatest asset that we have is our equity,” he said. But there is one big downside to raising debt: You have to pay it back. Young companies looking to borrow money must be confident that they will be able to make payments. That issue did cross Walborn’s mind. Banyan took a close look at its track record and projected growth “to convince ourselves that, yes, this is worth the risk.” “There is some calculated risk to it,” he said.
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School districts turn to EcoChem to make buses more efficient BY DAN SHINGLER dshingler@crain.com @DanShingler
OK, he can’t cure Volkswagen’s diesel emissions problems. But Joshua Koch can make a school bus diesel engine run cleaner. In fact, he can make any diesel engine run cleaner and more efficiently. That’s why a number of Northeast Ohio school districts are taking him up on the offer in an effort to save money on bus fuel and cut down on noxious fumes. Is it working? “Actually, yes it is,” said Mark Fritz, director of operations for the StowMunroe Falls City Schools. “Not only have we been able to see a better performance-based result in fuel consumption, but an increase of time between (fuel) filter replacements.” So what magic does Koch work on a diesel engine to get what he describes as an average fuel economy improvement of 10%, cleaner emissions and lower vehicle-maintenance costs. Actually, none at all. It’s the fuel that Koch deals with, or rather his company does. He’s owner of Dublin, Ohio-based EcoChem Alternative Fuels, which provides ultrahigh-quality diesel fuel to its clients, or, in the case of larger consumers, whole fueling systems. As it turns out, diesel has a reputation as a dirty fuel for a reason. Not only does it normally burn with more emissions than regular gasoline, it also generally is full of unwanted contaminants and ingredients that weren’t fully removed in the refining process, as well as water,
and lots of it, said Koch. “Without water, fuel burns more completely and injector tips are protected from steam explosions,” he said. “What we’ve developed is basically a diesel fuel re-refinement system. … What comes out in the end is a high-performance, clean-burning diesel fuel.” Koch replaces the water he removes with additives that also help the fuel to burn cleaner, he said. EcoChem delivers fuel to the schools with its own 7,500-gallon tanker trucks, some of which are designed with EcoChem’s re-refining equipment attached right to the belly of the tanker. The premium fuel comes with a premium price — about 20 cents more per gallon than regular diesel fuel. But it saves the districts money in fuel efficiency and maintenance costs, Koch said. When the Cleveland Metropolitan School District studied the fuel last spring, it found it was getting about 11% more miles per gallon and it anticipated lower maintenance costs. After the study, the district signed up to use the fuel in its buses this year. It’s not alone. So far, 18 school districts in Ohio have begun using EcoChem’s fuel. Aside from StowMunroe Falls and Cleveland, Twinsburg and Chagrin Falls have been using the fuel in their school buses, and Revere Local Schools signed up in April. Most of the districts have only one year or less of experience, so they’re still measuring their results — but they are pleased with what they’re seeing. “So far, we are happy with our decision to move in this direction, but
are keeping an eye on it to review over a longer period of time and through a colder winter than we had this past year,” said Fritz of StowMunroe Falls. In Revere, school district transportation supervisor Justin Miller said the district already seems to be seeing some improvement in fuel efficiency. But Miller is hoping the fuel cuts his maintenance costs and the amount of time buses might be down for repairs. “I drove for seven years, and I’ve been supervising for two,” he said. “You always know when you clean the (fuel) filters that there’s some gunk in the fuel, but I don’t think you realize how much until a product like this comes along.” Even if the fuel does not live up to its claims of saving the district 10% or more with increased efficiency, even a smaller gain would be worth the premium if maintenance costs are cut too, Miller said. Next, Koch hopes to get some of the schools to buy their own fueling stations — something he’s working on now with the Cleveland district. He’s helping the district write a grant application in the hopes the federal government will help fund the system as part of the Environmental Protection Agency’s Clean School Bus initiative, he said. By buying the system and re-refining their own fuel, districts can cut the 20-cent premium down to about 13 cents per gallon, Koch said. Ultimately, Koch has his eyes on more than just school districts as customers. He hopes the fuel and rerefining system will be used by truck fleet operators and others running diesel-powered engines.
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ALLYSON O’KEEFE, 37 Partner; Porter Wright
35th Anniversary
CLEVELAND BUSINESS
VOL. 36, NO. 47
NOVEMBER 23 - NOVEMBER 29, 2015 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON partner. O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,” said O’Keefe, a Partner; Porter Columbus native who lived downtown forWright 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t for granted.” VOL. 36, NO. take 47 it Allyson NOVEMBER 23 - NOVEMBER 29, 2015 O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estateALLYSON partner. O’KEEFE, Just seeing what Cleveland has gone through in the time that I’ve 37 been here, there’s obvious“Young professionals who live downtown are so excited about the city,” said O’Keefe, a ly a lot of excitement around real estatePartner; development. I started in 2004 when we were crazy Porter Columbus native who lived downtown for Wright 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.” Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship as a Case Western Reserve University law student. Since then, she has MANY OF THE PROJECTS YOU WORKED ON there ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The THAT AN AREA OF EXPERTISE? Metropolitan at the 9, Uptown in every University and Steelyard Commons, and has been proYes, definitely. Real estate is extremely interesting because deal Circle is differWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate ent. You can never get bored because there’s so partner. much variety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious“Young who live downtown so excited about the city,” said O’Keefe, a credits to historic renovations, from professionals ground-up development to rehab, are from ly a lot of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.” HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE?
CLEVELAND BUSINESS
O’KeefeI expect is not working or spending timeI work, with her husband and two children, she can I definitely believe in leadingWhen by example. the people with whom MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the very boards of nonprofit and watching college football. my associates, to work hard, and they see me working hard. For me, it’sorganizations all THAT AN AREA OF EXPERTISE? about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get bored because there’s so much variety there, from tax Just WHAT seeingWAS whatITCleveland has gone the time that I’ve been here, there’s obviousWHAT OTHERS ARE SAYING: LIKE TO WORK WITHthrough O’KEEFEinON credits to historic renovations, from ground-up development to rehab, from ly a lot of excitement around real estate development. I started in 2004 when we were crazy THE FLATS EAST BANK PROJECT? mixed-use to residential. busy with development. of the boom from ’04 through ’08. I saw it go through “Allyson is extremely bright and quick witted, butThat whatwas trulysort distinguishes her the downturn, then I saw itpeople rise again, even from most successful attorneys is her exceptional skills. Shestronger has an than before locally. HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, OF THE PROJECTS YOU WORKED concert with her to achieve win/win MANY solutions to difficult problems,” said ON ARE MIXED-USE URBAN PROJECTS. IS my associates, to work hard, and they see me working very hard. For me, it’s all THAT AN AREA EXPERTISE?of the Scott Wolstein, CEO of Starwood Retail Partners andOF co-developer about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differFlats East Bank project. ent. You can never get bored because there’s so much variety there, from tax — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECT? mixed-use to residential. “Allyson is extremely bright and quick witted, but what truly distinguishes her
PROMOTE. Why not?
successfulInc. attorneys is reserved. her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rights HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040
I definitely believe in leading by example. I expect the people with whom I work, concert with her to achieve win/win solutions to difficult problems,” said my associates, to work hard, and they see me working very hard. For me, it’s all Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work. Flats East Bank project.
— Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON THE FLATS EAST BANK PROJECT? “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rightsisreserved. ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project. — Lee Chilcote
Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved. Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040
For more information contact Krista Bora, Reprint Account Executive kbora@crain.com • tel 212.210.0750
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Opinion From the Publisher / Editor
In the true Believeland, we’re all in
Editorial
At minimum Cleveland Mayor Frank Jackson and City Council president Kevin Kelley are right to oppose an effort led by the Service Employees International Union to establish a $15-perhour minimum wage in the city. At present, there is no official minimum wage in the city of Cleveland, though Ohio’s minimum wage is $8.10 per hour. Establishing a minimum wage of $15 per hour — 85% above the Ohio rate — in Cleveland without a corresponding hike statewide would put the city at a huge competitive disadvantage and likely would drive at least some companies and lower-wage jobs to neighboring communities. Why build or expand your service-oriented business in Cleveland when, say, nearby Lakewood or Euclid would enable you to do it at significantly lower cost while drawing from virtually the same labor pool? Give credit where it’s due — the SEIU and a group it supports, Raise Up Cleveland, did a bang-up job in a petition drive that compelled City Council to take up the minimum wage legislation introduced last Monday, May 16, which would establish the $15 rate as of Jan. 1, 2017. The Plain Dealer noted that council, under the city’s charter, now has to vote on the legislation within 90 days. Council can pass the legislation as is, amend it or reject it. If it goes with either of the latter two options, the petitioners could call for the original measure to be put to Cleveland voters in November. There has been much debate, and many studies, about the impact of raising the minimum wage, and it’s easy to find research that supports your point of view. It should be said, though, that the push in some cities nationwide for the $15 wage is fairly new, and there’s much less data available about the impact of dramatic increases in the wage over a short period of time, as the SEIU effort envisions for Cleveland. To date, the cities that are experimenting with $15 minimum wages, including New York, Seattle and San
Francisco, are doing it on a more phased-in schedule, and they have significantly more dynamic economies than Cleveland. Raising the minimum wage definitely helps some lowincome workers and increases their buying power. Opponents of minimum wage hikes should not lose sight of the fact that at the state’s current minimum wage of $8.10 per hour, a person working 40 hours per week grosses just $324 in that week, or less than $17,000 per year. These aren’t just teenagers working summer jobs or at fast-food restaurants after school. Many minimum wage workers are adults with families. The argument is over whether the higher demand created by the increased wages offsets losses caused when some businesses, invariably, reduce their numbers of low-wage workers, or scale back hiring plans. A 2015 report, “Minimum Wage Policy and the Resulting Effect on Employment,” from the research institute Integrity Florida, is supportive of minimum wage hikes, noting, “Our examination of employment statistics in states found no evidence of employment loss in states that have increased the minimum wage and more evidence that suggests employment increases faster when there is an increase in the minimum wage.” Note the focus in that sentence on “states.” We encourage the city and SEIU to work together to come up with a strategy that makes raising the minimum wage a statewide issue, rather than one done just in Cleveland, or any other big Ohio city. Any increases, statewide or local, that are implemented also should be phased in over a period of at least three years, to reduce the impact on companies that would struggle with the higher labor costs. The goal should be to help all low-wage workers and reduce wage inequality. The blunt instrument wielded by the SEIU does not do that.
PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)
CLEVELAND BUSINESS
MANAGING EDITOR: Scott Suttell (ssuttell@crain.com) SECTIONS EDITOR: Timothy Magaw (tmagaw@crain.com)
My friend Sue Klein knows heartbreak. Decades of being a Cleveland sports fan will do that. Sue rattled off the lowlights recently over lunch: The Drive. The Shot. The Fumble. The Decision. She got a chance to relive the litany of sorrows so familiar to Browns, Indians and Cavs fans everywhere when she watched the television debut of ESPN Films’ 30 for 30 documentary “Believeland.” She’d already seen the premiere at Playhouse Square in April. Yeah, she’s a Cleveland sports fan, all right. The misery never ends. But as good a job as ESPN did in capturing our heartbreak, in illustrating the loyalty and resilience of Northeast Ohio’s people, the network failed to include voices like Sue’s. It failed to include the perspective of any of Cleveland’s many female fans. I’m tempted to call it The Snub. To remedy that, I’d like to tell you more Elizabeth about Sue and to offer her perspective. She McIntyre bleeds brown and orange, wine and gold, and red, white and blue. Of all the ignominy she’s suffered through, The Fumble is the one that really stuck with her. The Cleveland Browns were staging an epic comeback in the 1987 AFC Championship Game against the Denver Broncos at Mile High Stadium, thanks to her hero quarterback Bernie Kosar and running back Earnest Byner. With barely a minute on the clock, as the Browns were driving to tie the game, Byner fumbled the ball on the 1-yard line. The Broncos went on to win 38-33. “I was hysterical,” Sue said. “I remember thinking that if they didn’t get in that year, they’re never going to get in.” Since then, Sue has been waiting, and nursing her grudge against Byner. “I’m that person that for the last 30 years hated him and blamed him for everything.” But something changed in April when Sue watched “Believeland” during the Cleveland International Film Festival. Byner got emotional as he apologized for fumbling that day in Denver. “It broke my heart when he cried and broke down. When he looked and said, ‘I let you down,’ ” she said. “Oh my God. This man actually carried this … I mean, I wanted him to carry it … but then when I actually saw it. It was heartbreaking.” Sue is a true Cleveland fan. She was born and raised in Buffalo until work forced the Klein family to move to Parma a week before Sue’s 13th birthday. That was when she fell in love with Brian Sipe and the Kardiac Kids. Little did she know that the Indians love affair ran deeper. “It’s in my blood,” she said as she told me about her dad, Ralph, who was a lifelong Indians fan, despite living more than half his life in Buffalo. Watching the premiere of “Believeland” at the end of March, I was struck by what was missing. Where was Sue? Where was my mother-in-law, who loved Lou Boudreau and hated the intentional walk? Where were the girls in the nosebleed “Loudville” section blowing the roof off The Q with their screams? Where was Mary Kay Cabot of The Plain Dealer and Cleveland.com? Marla Ridenour of the Akron Beacon Journal? Both are award-winning sports journalists with years of experience, perspective and inside knowledge. The Cleveland Cavaliers are about to rewrite the script for us by winning the NBA championship. The team’s motto this year is “All in.” And we are. When ESPN hits Cleveland’s streets to record our celebration, I hope the camera finds Sue. “I can’t imagine what it’s going to feel like,” she said. In Believeland, none of us can.
WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.
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Stockbroker fraud? Bad investment advice?
Personal View
Do you have the right skills for the 21st-century economy? BY LISA P. GAYNIER Most people agree that the key to business success is having the right people with the right skills in leadership positions. But what are the right skills? Technically competent people often make poor managers and leaders. Why? Because managing and leading people are entirely different skill sets from accounting, engineering, banking, teaching, manufacturing, doctoring, policing and so on. There are two key requisites of successful leadership in today’s economy: cultural competence and change leadership. Increasingly, our economy will feature a workforce that very soon will be 40% “minority.” These changing demographics require culturally intelligent leaders. Organizations that are unable to adapt to the changing workforce demographics and global business environment will fail. Today’s leaders need a cultural intelligence that allows them to flex to a changing landscape of people and business situations. This means they need the capacity to scan for social cues that they may not have been socialized to see, to be curious about what these different cues mean and to challenge their own habitual assumptions. Leaders will also need to understand how to be effective change agents. Change is the new normal.
Web Talk Re: Report on downtown’s growth I have a ton of high regard for Downtown Cleveland Alliance, but it seems the numbers indicate maybe 7,000-8,000 new residents have been added over 16 years. That’s around 500 per year. For downtown to become really serious, we need to triple that pace. And that means new residential building, not just conversions. What’s happening on the West Bank of the Flats is exciting, but that’s not really downtown. I’d like to see something big on the lakefront. Then they’d have some numbers to get truly excited about. — Alan Glazen
Successful leaders will need to understand that new external business imperatives require flexibility and nimbleness. They cannot afford to be ambivalent about change. There will be a huge exodus of baby boomers out of the workforce in the next 20 years. Incorporating new workers, whether they are generation Xs, Ys or Zs, minorities or new immigrants, will require leaders to change work climates and cultures to integrate, not assimilate, these new workers. These organizational dynamics require leaders who can lead and sustain change in their diverse organizations and communities. The shifting demographics and economic realities also require that our employees develop their own cultural competence as well — after all, they will be working with each other every day. We all need to develop these two key 21st-century skills: cultural competence and change agency. The new economy will require millions of people who can overcome their cultural hard-wiring and can create the new neural wiring to effectively interact with one another, their customers and their constituents. Are you ready?
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Re: Brands shying away from RNC? I think it’s a great opportunity for others to fill the void. Go ahead and “step out.” We’ll be paying attention, and make a point of supporting the companies which DO participate. Cut your nose off to spite your face, wimps. — T2
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Focus MANUFACTURING
Global dreams revving up
CRAIN’S CLEVELAND BUSINESS z MAY 23 - 29, 2016 z PAGE 13
NATURAL GAS - P. 14
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Cleveland CycleWerks searches for U.S.-based investors to accelerate the company’s growth By DOUGLAS J. GUTH clbfreelancer@crain.com
The way Scott Colosimo sees it, Cleveland CycleWerks spent its first six years in startup mode. That changed in 2016 when the small-volume motorcycle manufacturing company fully emerged as a global entity selling products worldwide from its bustling headquarters in Cleveland’s Detroit Shoreway neighborhood. “This is our first year as full-line business; the first year of getting where I want us to be,” said Colosimo, whose revenue has grown 200% since he and partner Jarrod Streng began shipping bikes in 2009. CycleWerks, housed in a 60,000square-foot former factory on West Colosimo 65th Street, produces strippeddown motorcycles that aren’t as expensive as their sleek appearance suggests. Colosimo’s models run between $2,100 and $3,495; the priciest is the Gen II Misfit, which launched in mid-2015. The Misfit, like all of CycleWerks’ bikes, is designed by Colosimo’s company and assembled by contracted manufacturers in China. Though the Parma native declined to offer precise financial figures, he said CycleWerks has sold “tens of thousands” of bikes in 23 countries, with Japan topping the list. The company also sells high-end, aftermarket parts and accessories through an on-site “speed shop” and a global group of independent distributors. “It’s mostly custom stuff,” Colosimo said. “Like if someone wants custom gas caps or exhaust, we’ll do SEE CYCLE, PAGE 19
McKinley Wiley photos
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z MAY 23 - 29, 2016 z CRAIN’S CLEVELAND BUSINESS
HOW BAD IS THAT LEAK?
MANUFACTURING
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MEMBER: National Roofing Contractors Association InsightFuel would like the use of compressed natural gas to increase among truck fleets. (Dan Shingler)
We look beyond the key performance indicators to really understand your business.
InsightFuel hopes to build upon SSP’s work in natural gas space By DAN SHINGLER dshingler@crain.com @DanShingler
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This isn’t going to end well. You wouldn’t have a dog operate a forklift in your factory. So why would you roll out a new manufacturing system without proper IT review and support? System downtimes due to IT failures occur an average of 7 times a year, costing manufacturing operations nearly $17,000 per failure. Partner with Ashton Technology Solutions today to make sure your manufacturing technology is properly managed and enhanced to avoid major downtimes and errors. With our co-managed and outsourcing IT management options, Ashton will ensure your manufacturing systems can lead you to success. Call Ashton at 216.397.4080 or visit ashtonsolutions.com for more information.
While many folks have been lamenting the downturn affecting Ohio’s natural gas industry, not everyone is giving up on the fuel, or its future in the transportation industry. Take Jeff King, for example. The former CEO of Twinsburg-based SSP Products, which makes stainless steel tubing, valves, connectors, hoses and tools for a variety of industries, including chemical processing and shale drilling. He quit his cushy job running that established company to start a new company, also in Twinsburg, called InsightFuel. The new company has 20 employees and makes parts and components that are the guts of compressed natural gas (CNG) fueling systems. Its bent-tube assemblies and other parts and components are used to build the fueling stations, and also on vehicles themselves to deliver fuel from storage tanks to an engine’s combustion chambers. InsightFuel is actually the combination of two companies formed within SSP: AFV Natural Gas Fuel Systems, which made parts for vehicles, and CNG Plus, which made the pieces used to build fueling stations. After forming AFV in 2013 and CNG Plus in 2014, King and his brother David decided to finally and formally split them off from SSP this year — and King said he was more than willing to let his brother take over the larger and more established company, while he runs the riskier and more entrepreneurial new venture. “We call it ‘intrepreneurship,’” King said, “And the opportunity to get into these clean transportation businesses, was for me very compelling. Both of them were incubated and launched within SSP.” Both privately held companies are owned primarily by the King family, but now Jeff King is the sole owner of InsightFuel. He said he now has a clearly defined mission: to maintain and grow InsightFuel’s already strong position in the CNG market. He remains convinced that use of
the fuel will continue to grow, if not among passenger cars then at least among the nation’s truck fleet. The company has done well so far, he said. It has annual revenues of more than $5 million, even though the adoption of CNG as a fuel has slowed a bit over the last two years. More importantly, King said, it has strong market share. The former CNG Plus unit supplied parts for half of the approximately 150 CNG fueling stations built across the United States in 2015, King said. Truck operators like CNG because it is cheaper to burn than diesel. A few years ago, it was less than half the cost of diesel fuel. Those discounts have gotten smaller as the price of diesel fuel has come down, but CNG still represents a savings of up to 40 cents per gallon, according to station operators. Still, it’s gotten more difficult to persuade companies to invest in CNG trucks and the fueling systems needed to run them, at least temporarily. King said he’s not too upset by that, though, because he believes the industry will come back strong and, in the meantime, he’s gaining market share. “The sales figure might be fairly flat this year over last year, but where we’ve made strides over the last two years is in increasing our customer base — we’ve picked up market share. … If you look at the customers who buy from us, there are twice as many as there were two years ago,” King said. One way he’s done that, he said, is by partnering with the designers and builders of CNG stations across the country. One of them is Marion, Ohiobased R. Antony Enterprises, owned and operated by Rocco Piacentino. The company has so far built 25 CNG stations, Piacentino said, and has agreements to build 11 more this year. Contractors like R. Anthony like working with InsightFuel because they don’t just buy stainless steel parts, they also get engineering help, Piacentino said. “If we have something we’ve not seen before or some new part that
we need, at other stainless companies I never get to talk to engineering. With InsightFuel I can call up an applications engineer and have a solution in 24 hours,” Piacentino said. But, no matter how pleased its customers are, the challenge for InsightFuel going forward remains pricing — not the pricing of its products, but the relative prices of compressed natural gas and diesel fuel. One major trucking company operator in Ohio that has adopted CNG said he’s seen his savings shrink as the price of diesel has dropped. He said he was re-evaluating whether to invest more in CNG in the current environment, but asked not to be named. That operator said there is some extra maintenance associated with running CNG-powered trucks, not to mention that the trucks cost tens of thousands of dollars more than their regular diesel-burning counterparts. But the industry still appears to be embracing CNG in general. The big engine maker, Cummins Inc., continues to unveil new CNG-powered engines and fuel sellers say they see demand continuing to increase. That includes Columbus-based IGS CNG Services, a customer of both King and Piacentino that operates 11 stations and is about to open its 12th near Dayton. “We are seeing growth at all of our existing stations,” said CNG Services program director Dave Mrowzinski. He said his company and others will support InsightFuel by doing exactly what King hopes they will do — build more stations. “Overall station build up, both at our company and in the whole industry, has slowed — but it’s still growing,” Mrowzinski said. That’s no surprise to King, who said he was well aware of the industry’s cyclical nature when he formed InsightFuel. He’s both waiting and hedging his bet. “There are a lot of macro trends we can’t control, one of them is how long CNG will remain a viable fuel — so we’re not limiting ourselves to just CNG,” said King, who added that his new company is also preparing itself to work with systems for new and future fuels, like hydrogen.
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MANUFACTURING
Mahoning Valley eyes new innovation hub By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty
Youngstown State University wants to create more opportunities and resources in manufacturing in the Mahoning Valley, helping existing companies, companies that expand into the region and companies created by its graduates. That’s the driving force behind its planned Mahoning Valley Innovation and Commercialization Center. “Our objective is jobs, ultimately,” said provost and vice president for academic affairs Martin Abraham. The center would include research and manufacturing equipment and teaching labs, as well as space for offices, other instruction and general brainstorming, Abraham said. The aim is to create a space to pull the region’s manufacturing resources, faculty and students under one roof to allow for more collaboration and innovation. It’s years away from becoming a reality, but plans to create a cohesive, shared space for manufacturing innovation and learning on Youngstown State’s campus are underway. The university will collaborate with a variety of educational partners on the center, including Eastern Gateway Community College and local K-12 schools, as well as groups like the Youngstown Business Incubator. The cities of Youngstown and Warren also will be involved, according to a news release. The Youngstown Business Incubator already works with Youngstown State on a number of manufacturing-
Architectural rendering of the proposed Innovation and Commercialization Center at Youngstown State. (MS Consultants Inc.) related projects, said chief operating officer Barb Ewing, so this project is a “logical next step.” When the center is complete, it will offer local schools and businesses a full, seamless array of services, she said. Abraham said he expects there will be something in place to allow local businesses and individuals to take advantage of the space in addition to the schools in the partnership. And by working together, the institutions will be able to share resources — and costs, Abraham said. Manufacturing equipment can be expensive to purchase and maintain, especially if a school isn’t using it 24/7. But sharing the equipment would allow the university, the community college and the K-12 schools
to share those costs, as well. That collaborative vision comes with challenges, though. Abraham said the parties will have to work through agreements to figure out how to operate the facility. The maintenance costs will be one consideration, he said, as will liability coverage, as students from other schools would be working on Youngstown State’s campus. And figuring out how to handle intellectual property in a collaborative facility will be a concern. “We know that’s going to be a challenge,” Abraham said. The other big challenge is funding. Abraham said he envisions the project costing about $30 million total, but the facility will be able to
be completed in pieces. He estimated that the university would need about $6 million to $8 million to move forward on the first piece, which would be the manufacturing center where most of the equipment and teaching laboratories would be housed. Future additions would include space for people to collaborate and plan for innovations, as well as space for offices, conference rooms and instruction areas. Abraham said the group has looked into similar facilities, but didn’t find anything exactly like what they want to do, so they’re “picking and choosing” from different models. One similar program locally is the think[box] at Case Western Reserve University,
but Youngstown State wants its program to include more heavy manufacturing equipment. Abraham said the space will include everything from additive manufacturing and robotics to CNC machines and welding equipment. So far, the university has received $3 million in the state capital budget, Abraham said. It’s looking into other state and federal funding, in addition to private donations. He expects the group could raise enough to get started in the next six months to a year. Construction could begin in the summer of 2017, but Abraham said he thinks the summer of 2018 is more likely. “I’m optimistic, but there’s a lot of unknowns still,” he said.
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ADVISER: Tanya Andolsen
Meeting the neighbors — one claim at a time Air, soil, water or any other natural resource is typically something that provokes warm and fuzzy feelings, until it has been affected by a pollutant. A pollutant can simply be anything that is not where it was intended to be. In other words, something doesn’t have to be hazardous to be deemed a pollutant, just out of place and having an adverse effect on the resource. Most manufacturers have been operating in the same location for years, if not decades. Their managers know the ins and outs of their business and are most likely comfortable that risk exposures in their facilities have been mitigated. But what about those exposures outside of their control or, worse yet, knowledge? Manufacturing, by its very nature and diverse forms, is a vulnerable industry when the potential for environmental contaminations are taken into consideration. Whether from historical operations, waste disposal practices, transportation, distribution, or everyday activities, the potential for environmental liability exists and persists with growth. Neighbors can easily allege they became sick or experienced bodily injury or property damage as a result of a pollutant that has or is migrating to
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Tanya Andolsen is a senior VP and director of environmental at Armada Risk Partners. their property. When this happens, manufacturers are often caught off guard and not prepared to defend against third-party claims from individuals or groups asserting they have been adversely affected. In addition, the company may lack any dedicated funds and resources that would be necessary to secure legal and/or public relations services to protect their reputations. Worse yet, many owners and managers are blind to the legacy of the property where their businessSEE ADVISER, PAGE 18
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z MAY 23 - 29, 2016 z CRAIN’S CLEVELAND BUSINESS
MANUFACTURING
Q & A: Patrick Hoffman
ADVISER
President, Rooftop Green LLC
CONTINUED FROM PAGE 17
Patrick Hoffman began working for Cleveland-based Dan T. Moore Co. right out of college, after studying environmental sustainability and international business at Baldwin Wallace University. He started out doing market research on green infrastructure for the manufacturer and showed the CEO that such products could be immediately made in-house. Today, he’s the president of Rooftop Green LLC and does production
management for Fiberworx, one of Rooftop Green’s sister companies under the Dan T. Moore Co. umbrella. Hoffman touts the benefits of green roofs beyond just supporting the environment: they protect roofing surfaces, serve as insulation, diminish noise from the outside and help with stormwater retention. Hoffman thinks Cleveland’s pride in its natural resources like the Metroparks and Lake Erie make the region a good place for Rooftop Green, as the actions of its many companies and individuals impact those green spaces.— Rachel Abbey McCafferty What drew you to your interest in sustainability to begin with? I have to say that I have to attribute a lot of that to my parents. I do come from a farming community and grew up on a farm out in the middle of Wooster, Ohio. … My family’s always had a deep passion for kind of arborist work and trees and things of that nature. There’s always been a garden somewhere close to me or in the house, depending on where we were living at the time. My mother’s always been able to kind of cook things that she grew and made in her own farm and things of that effect. And I’ve always worked a little bit on the farm. So, I’ve always been really close to nature, I think. What has the reaction (to Rooftop Green) been like so far? It’s been good. A lot of people are first kind of off-put when you have that conversation with them about green infrastructure or green ideas, because there
really is this stigma of price associated with it. But when you’re able to offer them something that is really feasible and actually within their budget, then they’re willing to sit down and talk to you. What do you hope to see going forward in the company? I hope to see a decent amount of growth. I want to bring more Clevelanders in on it. We’re obviously already Cleveland proud. … I know industry has been something that’s been kind of rough patch for Cleveland going off and on for a long period of time, but if it’s something I can see grow in terms of both production and sales here in the Cleveland area, that would be awesome. Not only do I want to see us make more here in Cleveland, but I want to see us install more here in Cleveland. There’s so much opportunity when you’re talking about flat hardscapes that can use green amenity spaces or green
infrastructure. … There’s a lot of cities and places out there right now — Washington, Chicago, New York City — a lot of things that are kind of incentivized by the policies, incentivized by the money that’s being passed down and legislation and things like that. I’d really like to see Cleveland kind of jump on that wagon, too, and not be at the end of the curve, if you will. Now, when you were in school studying environmental studies and business, did you think you’d end up in the manufacturing sector? No, I did not, actually. I knew I always wanted to be a hippie and make money, but I didn’t think that I would end up doing production work, management work at a heavy industrial, you know, complex, working on a bunch of different things with a bunch of different manufacturing companies. But in all honesty, I think the opportunity for impact, both in terms of the environment,
and also the success in the future of something like this is so great that I’m really happy that it did work out that way. What would you say to other young people who want to get into this space? I think it’s definitely, definitely about who you know and what you know. You have to prove to the people that make up your network that you’re not only able to work hard but that you can apply a lot of what you learned and how you learn to a lot of different things. I got the position here not necessarily because I knew anything about manufacturing or managing people in the manufacturing setting, but because I think I was able to prove that learning is kind of part of the repertoire that people need to know. They need to know how to learn to really be successful to employers and anyone who’s looking to kind of grow, especially in the small business area or new ventures.
es reside and operate, leaving them subject to claims resulting from preexisting pollutants having nothing to do with their current operations. In many cases, this lack of environmental liability protection is realized at the wrong times, such as when selling a business or refinancing a property. Either one of these acts can trigger the need for an environmental audit or Phase I site assessment. Even though these assessments are relatively noninvasive, more often than not a Phase 1 study triggers a Phase 2 study, which will likely include actual testing of soil, water and air for contamination. If contamination is discovered on or off-site, the property may require remedial activity. Meanwhile, business activity is disrupted, revenues jeopardized and the ability to secure needed capital diminished greatly. In addition, the knowledge of a condition does not eliminate the potential for a third party claim. The broad definition that anything can potentially be deemed a pollutant, coupled with the fact that for more than 40 years most Commercial General Liability policies have contained pollution exclusions, ultimately leaves most manufacturers without adequate protections against thirdparty claims. Owners and operators of manufacturing operations can take comfort in knowing that there are experienced insurance professionals that offer pollution legal liability coverages to provide appropriate protection against environmental liabilities. So when manufacturers do meet their neighbors, they need not go alone. They can do it with coverage.
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CycleWerks’ HQ is on Cleveland’s West Side. (McKinley Wiley photos)
CYCLE
CONTINUED FROM PAGE 13 production runs of 100 to 150 pieces.” While the business still builds a high percentage of its finished motorcycles overseas, it does some final assembly work through Cleveland Motorcycles, a separate enterprise also owned by Colosimo. Additional bike construction takes place with a partner company in New Jersey. Over the last two years, meanwhile, Colosimo has connected with 20 Northeast Ohio manufacturers on aftermarket product creation. Among them is Cleveland’s HMF Engineering, which makes handlebars and other gear for recreational off-road and onroad vehicles. “We wanted to do more work here,” Colosimo said. “The (aftermarket production) was just a concerted effort to do some of the smaller-run stuff in Cleveland.” CycleWerks’ West Side headquarters serves as its distribution, engineering, design, prototype and manufacturing space. Colosimo is talking to U.S. investors interested in the seven-employee operation, which its founder believes has room — Scott for an additional Colosimo, 500% growth na- CycleWerks tionally. “We’ve reached a (U.S.) audience in terms of riders, but in terms of the business community, we haven’t reached them yet,” Colosimo said. “Now we’re finally talking to Americans who see value in what we’re doing.” Gaining traction with local or national financiers and manufacturers has never been easy for the motorcycle startup. For example, most manufacturing companies weren’t interested in building small-scale parts orders, a circumstance that led CycleWerks beyond the country’s borders, said Colosimo. China was the company’s first international landing spot, with CycleWerks expanding some portion of its manufacturing and distribution to India, Thailand, Korea, the Philippines and Indonesia. Indonesia, the world’s third-largest motorcycle market, has been a particular spark for CycleWerks’ more re-
“We’ve proven we’re ready for scale up.”
cent outreach efforts. Colosimo was in the country in April to oversee a new distribution warehouse in Jakarta. The entrepreneur’s intentional journey, which also took him to China and the Philippines, revealed once more how passionate foreign investors are for his bikes, a reaction markedly different from the lukewarm reception he’s often received stateside. “I don’t feel like the U.S. is that hungry for manufacturing from a political or investment standpoint,” Colosimo said. “There’s a kinship when I go to different countries. People there are so hungry to make it. If I can capture 1% of the Indonesian market and get a driven guy with capital and a team, the potential is insane.”
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STAY CONNECTED. Ready for the next step Asia’s 21st century motorcycle manufacturing explosion has coincided nicely with the small, simple machines CycleWerks designs, said Colosimo. The company uses stock parts to cut costs, chopping them to fit where needed. Bikes are also built around smaller engines, further reducing production price. “In the U.S., affordable custom bikes are at the lower end of the spectrum,” Colosimo said. “But in Asian countries it’s an upmarket product.” Though CycleWerks doesn’t have the large dealer network or marketing department of a Harley-Davidson, the company has expertly filled a void in the market, said Brett Moorer, whose New Jersey company, PIT Motors LTD, acts as Cyclewerks’ exclusive U.S. distributor. “People were looking for a bike that appeals to their individuality; that’s where Scott hit the nail on the head,” Moorer said. “As a result he’s brought quality, affordable motorcycles to the masses.” Colosimo is far from done when it comes to spreading his clean, simple design approach across the globe. Growing CycleWerks into a $100 million business is a larger goal — one the company owner believes is well within reach. “The last six years was to show investors that our business model works,” Colosimo said. “We’ve proven we’re ready for scale up.”
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Balancing act Making school fit with work, life
E
ric Tepfenhart has a packed schedule as a freshman history teacher and assistant coach of varsity boys basketball at North Ridgeville High School. He’s also pursuing a master of arts in education at Baldwin Wallace University, the
course load of which he is able to balance with his professional and extracurricular activities thanks to the program’s built-in flexibility. “They understand that as educators, we have a lot on our plates,” said Tepfenhart, whose ultimate goal is to transition into
a school system technology coach. “We get one or two assignments a week, and the professors are really great about accommodating deadlines with our schedules. All our technology classes are online. The program’s convenient format will allow me to finish the program within three years.” From virtual programs and student-designed course schedules to compressed weekend classes, local colleges and universities offer a variety of ways to assimilate graduate programs with students’ professional
and personal responsibilities. “We follow an adult learner model at BW, which is different from young learning adults,” said Karen Kaye, dean of BW’s School of Education. “We make sure students have the opportunity to engage in course material relevant to their careers. Participation is paramount to the program, but we understand students have busy lives, so we’ve made some adjustments to our systems that have been very helpful.” Administration internships were extended from one semester to one
Take Control of Your Career. Earning a master’s degree in business is an investment that can help boost your career and earning potential to the next level. At Cleveland State’s Monte Ahuja College of Business, we have an AACSB-accredited graduate program that fits your interests and lifestyle.
school year to give aspiring principals additional time to accomplish required tasks. The school a few years ago trimmed its five-day-a-week summer course schedule to three days per week. “We eliminated Mondays and Fridays. Students understandably were missing those days because they had other personal obligations throughout the summer,” she said. “And missing a day or two of class is like missing two or three weeks. We virtually eliminated the need to be absent by making that accommodation. The unexpected outcome was that students were telling us they made significant learning gains because they had additional time to reflect and let the material soak in.” On the flip side, employers have a lot to gain by relaxing the boundaries of a fixed work schedule or folding education into the workday. McCarthy, Lebit, Crystal & Liffman, a Cleveland-based law firm, offers law clerkships that tie in career exposure in a number of practice specialties — including corporate, estate and finance — with law degree schooling. The full-time, one- to two-year positions afford law clerks the opportunity to work on research and writing projects during the day, while balancing law school, which most students usually attend at night, said Ann-Marie Ahern, principal and head of the employment law practice. Law clerks also receive time off to study for the bar exam. In fact, the firm is preparing to hire one of their current law clerks, once that individual passes the bar exam, she said. “We have a number of lawyers who hold law degrees beyond a J.D.,” Ahern said. “Our firm and our clients view a graduate degree as an invaluable investment. Lawyers that specialize in a particular field of knowledge offer a deep level of expertise.” Lawyers who possess an advanced degree are particularly valuable, as the market is saturated with career-seeking talent. “The advanced degree distinguishes individuals in a competitive environment,” Ahern said. “We’re always looking for lawyers with an advanced degree.”
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Pursuing a graduate degree takes careful consideration
A
graduate degree is a powerful tool for career advancement and job security. The unemployment rate in 2015 was 1.7% for individuals aged 25 and older who possessed a doctorate degree and 2.4% for those with a master’s degree, compared to 2.8% for individuals with a bachelor’s degree and 5.4% for high school graduates. Earning potential is another compelling incentive. During the same year, median annual earnings for individuals with doctorates were about $84,396, compared with about $69,732 for master’s degrees, $59,124 for bachelor’s degrees and $35,256 for those with a high school diploma. The decision to pursue a graduate degree may seem like a no-brainer, but individuals who are considering a master’s, doctorate or other professional degree should outline their time frame, career goals, work-life obligations and the bigger financial picture before initiating the application process. “The decision to pursue a graduate degree differs from person to person,” said Robert Trebar, dean of the School of Business at Lake Erie College. “When it comes to timing, in a perfect world, students should get some professional experience under their belt before pursuing a graduate degree. The experience adds context, so the course material and discussions are more meaningful.” In contrast, others are better armed for post-college job placement if they have both the undergraduate and master’s degree under their belt, he pointed out. “An undergraduate degree in psychology coupled with an MBA could lead a young person right into a career in human resources,” Trebar said. Ryan Glinn falls into the latter category. Glinn graduated in December 2013 with a degree in strategic communications from Ohio State University, and enrolled as a fulltime graduate student at Kent State University the following summer. Glinn graduated this month with an MBA in finance and international business, and is transitioning his internship at Northwestern Mutual — which he secured through Kent State
EARNINGS AND UNEMPLOYMENT RATES BY EDUCATIONAL ATTAINMENT, 2015 Unemployment rate in 2015 (Percent)
Median weekly earnings in 2015
Doctoral degree
1.7
$1,623
Professional degree
1.5
1,730
Master's degree
2.4
1,341
Bachelor's degree
2.8
1,137
Associate's degree
3.8
798
Some college, no degree
5.0
738
High school diploma
5.4
678
Less than a high school diploma
8.0
493
All workers
4.3
860
Education attained
Note: Age 25 and over. Earnings are for full-time wage and salary workers. SOURCE: Current Population Survey, U.S. Department of Labor, U.S. Bureau of Labor Statistics
— into a full-time role. “This has been a very rewarding experience for me,” Glinn said. “My focus is on the sales side, and I believe the MBA will definitely help lead toward leadership opportunities, whether as a managing director or field director.” Master’s education programs are the fastest-growing and largest segment of graduate education overall, representing 81% of graduate degrees awarded in 2012-13, according to the Council of Graduate Schools, a graduate education advocacy and research organization. The number of master’s degrees awarded in the U.S. increased by 62% between 2000 and 2013. In the same vein, the number of doctorates awarded in the U.S. during the same time period increased by 47%, primarily because of growth in the number of women earning doctorates, according to the organization. Employment in occupations that typically require a master’s degree will increase by 14% between 2014 and 2024, while the number of jobs requiring a doctorate will increase by 12% during the same period, according to the organization. The motivations differ in graduate education candidates, who
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THE AVERAGE LENGTH OF TIME IT TAKES TO RECOVER THE INVESTMENT MADE TOWARD A MASTER’S DEGREE IN BUSINESS ADMINISTRATION.
typically fall into three categories — undergraduate students, early to midcareer professionals or individuals who are more advanced in their careers, said Louise Ditchey, graduate programs director in the College of Business Administration at Kent State University. “The younger candidates typically already have developed a longer vision about what they want to do, and are targeting some type of leadership path or want to start their own business,” she said. “The mid-career professional typically wants more formalized education to help advance their career. Candidates who are further along in their career understand the value an advanced degree has in helping them reach the highest ranks of decisionmaking within their company or organization.” Ditchey encourages prospective graduate students to explore the backgrounds of the positions they aspire toward, and determine what training or degrees are required. Study for the required graduate admissions test well in advance, and search possibilities for financial assistance. “It’s never too early to start exploring your options,” she said.
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Consider the costs A variety of options exist to offset the financial commitment
T
he considerations associated with whether to attend graduate school often coagulate into one big question mark. Career impact. Time commitment. The right school. The right program. And, of course, the cost of the graduate degree. “Students should plan a year in advance of attending graduate school,” said Venus Puliafico, director of financial aid at Case Western Reserve University. “They need to know what the program offers, what their longterm goal is, what the long-term payoff is, and the level of borrowing in terms of what they’re pursuing.” There are many vehicles for financial assistance. The first step, Puliafico suggests, is to contact the admissions office and the specific department of the institution at which the student is interested in attending. Inquire about what type of institutional support is available. “Even if you haven’t been accepted, it’s worth it to call the institution and find out what it means financially to pursue that degree,” Puliafico said. For students who are planning
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to attend graduate school full time, graduate assistantships that subsidize the cost of the degree and even pay a small stipend may be an option, said Louise Ditchey, graduate programs director at Kent State University’s College of Business Administration. “Individuals who are working full time should look into what type of employer assistance may be available,” she said. Scholarships, meanwhile, run the gamut. “There are a couple large databases that list different scholarships,” Ditchey said, ranging from assistance for those involved with the military to rewards for those with high GMAT scores. “The candidate fills out a profile, and the database searches scholarships that meet their age, race and other background factors,” she said. Other avenues for scholarship searches include an institution’s financial aid office, a library’s reference department, U.S. Department of Labor and organizations related to a candidate’s field of interest. The bulk of graduate student borrowing stems from federal loan
programs. According to the nonprofit College Board’s “Trends in Student Aid 2015,” federal loans constitute 61% of graduate student borrowing nationwide, followed by institutional grants (20%); private and employer grants (10%); federal education tax credits and deductions (6%); federal grants (3%); and state grants and federal work study programs (less than 1% each). In 2014-15, full-time graduate students received an average of $26,950 in financial aid, including $8,840 in grants, $16,570 in federal loans, $1,490 in education tax credits and deductions, and $50 in federal work-study programs. A direct unsubsidized federal loan gives borrowers up to $20,500 annually, or $138,500 in total, according to Federal Student Aid, a provider of student aid and part of the U.S. Department of Education. Graduate PLUS loans will cover the cost of attendance minus all other aid. Students should also apply for federal aid early, Ditchey said. Students also may be considered for a federal Perkins loan if the institution — which is the lender — participates in that program. Graduate or professional students may be eligible to receive up to $8,000 a year, or $60,000 in total. “There are a lot of possibilities for assistance,” Ditchey said.
Taking the classroom online
Programs evolve to serve a variety of needs, students
T
he higher education online space is growing increasingly sophisticated. Formats vary, from projectbased learning and gamification to live courses and self-paced instruction. Webcam proctoring services, browser controls and databases that can verify in real time the originality of essay-based tests are just some of the safeguards that facilitate the virtual learning environment. “Online learning has taken on a life of its own in the past couple years,” said Walter Simmons, an associate dean at John Carroll University’s Boler School of Business. Technology advancements enable roving students near and far to fulfill certain coursework when it’s convenient for them. The latest and greatest software and tools empower professors to customize courses in ways that simulate the classroom experience, drive interaction and attract device-dependent students. “Our MBA program was developed to be totally mobile,” said Caryn Lanzo, director at the Center for eLearning at Cleveland State University. “Students have the ability to post to a discussion board or send a quick email to their professor, whether they are on a computer, tablet or smartphone.” Faculty members can incorporate internal and external materials, from the
syllabus, exams and online supplements through videoconferencing or voice to voice, Simmons said. “We can link up with lecturers in other parts of the country,” he said. “Students can access our online classes from anywhere in the world.” According to the National Center for Education Statistics, the percentage of graduate students enrolled in online/distance learning more than doubled, from 16.5% in 2003-04 to 36% in 2011-12, which is the most current data available. The transition has been more gradual at some universities, which place a premium on the value of faceto-face engagement. “We’re moving in the direction of introducing more hybrid course options, but I’d say about 95% of our business graduate classes are still fully based in the classroom,” Simmons said. To that extent, Lanzo said higher education institutions such as Cleveland State University are making sure their online programs uphold the same standards as their campus counterparts. “Institutions are developing guidelines for quality, which are driven by states and accreditation boards,” Lanzo said. “We have a lot of measures and safeguards in place to help protect students so that they’re receiving the
highest quality education, no matter the delivery.” Online learning and blended learning courses undergo a comprehensive review from Quality Matters, an international faculty-centered organization that certifies the quality of those formats. The quality of those online and blended learning programs has shaped enrollment and is guiding future online program development. Online learning and blended courses account for more than 14% of total student credit hours and 14% of enrollment at Cleveland State University. The university is experiencing an increased interest from students who are looking to take a single online course to advance their skills in a particular area, which could lead to an eventual commitment to an advanced degree, Lanzo said. “We’re seeing an interest in younger workers who want quick-skill upgrades but not necessarily the graduate degree all at once. This is a part of a national trend,” she said. “Here at Cleveland State, we’re making a more strategic effort to develop more flexible programs, sort of like stackable credentials, that meet the student’s needs now but could be spread out and counted toward a graduate degree down the road.”
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GRADUATE EDUCATION DIRECTORY PUBLIC
THE UNIVERSITY OF AKRON Akron 330-972-7663 gradsch@uakron.edu GRADUATE PROGRAMS: The Buchtel College of Arts and Sciences offers 37 master’s degree programs, including family and consumer sciences – clothing, textiles and interiors; engineering/applied math; J.D./master of applied politics; and executive master of public administration. Doctoral degree programs include integrated biosciences and adult development and aging. The College of Business Administration offers nine MBA concentrations, including business analytics, international business and supply chain management, as well as management, accountancy, taxation and J.D. degrees. The LeBron James Family Foundation College of Education offers education-focused master’s degree programs that include elementary education - literacy option and higher education administration. The College of Engineering offers six types of master’s degree programs, including focuses on biomedical, civil and mechanical. Doctoral degree programs also are available. The College of Health Professions has master’s degree programs in a variety of disciplines that include nursing, clinical mental health counseling and public health. Doctoral programs are available in some of those specialties, including nursing and audiology. The College of Polymer Science and Polymer Engineering has master’s and doctoral programs in polymer engineering and polymer science. The School of Law offers J.D., two-year J.D. for foreign attorneys, and master of laws in intellectual property. HIGHLIGHTS/ACCOLADES: The Buchtel College of Arts and Sciences features the archives of the History of American Psychology, which is the world’s largest repository for history
of psychology. E.J. Thomas Hall at the University of Akron is the Neos Dance Theatre company’s headquarters. The MBA concentration in health care and master of science in accountancy are rated in the Top 25 Best Value programs in the U.S. The College of Business Administration has been on The Princeton Review’s list of Best Business Schools every year since 2005. The College of Education has a 100% pass rate on the Ohio Assessment for Educators test for Computer/Technology Facilitation Endorsement. The Instructional Technology program is ranked among the nation’s best by thebestschools.org. The Schools of Audiology and Speech Language Pathology are ranked among the nation’s best programs. The College of Polymer Science and Polymer Engineering has a 100% placement rate within one year of graduation. The College of Education has experienced a 400% growth in research expenditures over the last eight years. Akron Law’s 2011-15 average pass rate in Ohio is 86.3% for firsttime takers. In June 2015, Akron Law made Above the Law’s list of Top 50 law schools.
of Education, Criminal Justice and Human Services; College of Engineering and Applied Science; College of Medicine; College of Nursing; College of Pharmacy; College-Conservatory of Music; and McMicken College of Arts and Sciences. HIGHLIGHTS/ACCOLADES: U.S. News & World Report honors many University of Cincinnati programs as among the best of their kind. The School of Criminal Justice in the College of Education, Criminal Justice and Human Services is ranked as the third-best program in the nation. The College-Conservatory of Music oversees top 10 programs in opera/voice, musical conducting, music and music composition. Additionally, the university’s online graduate programs in taxation and nursing also place within the top 10 nationwide. CLASS LOCATIONS: Main campus ONLINE OPTIONS: Distance learning is available for certain programs.
Big Data, Big Money Improve your earnings potential in just one year with our new graduate degree!
CLASS LOCATIONS: Main campus, Medina, Orrville, Lakewood, Brunswick, Holmes County ONLINE OPTIONS: Online master’s degrees are available in taxation, public health, speech and language pathology and educational foundations. Certificates in educational foundations, literacy specialist and e-learning are offered.
UNIVERSITY OF CINCINNATI Cincinnati 513-556-4335 grad.info@uc.edu GRADUATE PROGRAMS: The colleges within the University of Cincinnati offering graduate programs are Carl H. Lindner College of Business; College of Allied Health Sciences; College of Design, Architecture, Art, and Planning; College
MIAMI UNIVERSITY Oxford 513-529-3734 ApplyGrad@MiamiOH.edu GRADUATE PROGRAMS: Graduate degrees are offered by the following schools within Miami University: College of Arts and Sciences; College of Education, Health and Society; College of Engineering and Computing; Farmer School of Business; and Professional Studies and Applied Sciences. HIGHLIGHTS/ACCOLADES: Miami University has several highly ranked graduate programs, including the MBA; speech pathology and audiology; chemistry; biological sciences; earth sciences; and English. The Department of Educational Leadership has been recognized for its innovative programs. Miami University provides a high level of assistance in the form
Master of Science in Business Analytics (MSBA)
Learn more: business.kent.edu/degrees/msba
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We are proud to be the only College of Urban Affairs in Ohio. Levin is nationally recognized as one of the premier colleges of Urban Affairs. We are ranked highly in the specializations of City Management & Urban Policy and Nonprofit Management by U.S. News and World Report. We teach men and women how to work effectively for positive change within and beyond the communities of Northeast Ohio. By blending a broad understanding of the urban environment with advanced problem-solving skills, our graduate programs prepare students for a variety of careers in the public, private, and nonprofit sectors. Our graduates are engaged in city planning, program development, community organizing and development, public safety and homeland security, nonprofit organizations, environmental and sustainability policy development and analysis, public finance, and economic development.
WHY LEVIN? → Experience through internships
of graduate assistantships to both master’s and doctoral students and provides support during the summer. Faculty work side by side with graduate students in labs and in the dozens of research centers on campus. Numerous opportunities exist for graduate students seeking to develop as both scholars and teachers. The Graduate Research Forum and Three-Minute Thesis help students enhance their abilities to communicate their scholarship to a diverse audience. The Center for Teaching Excellence supports graduate students in their teaching responsibilities and helps them develop with the graduate student enhancement teaching program, a certificate in college teaching and doctoral and undergraduate research opportunity scholarships. CLASS LOCATIONS: Oxford; Voices of America in West Chester; the Middletown and Hamilton regional campuses ONLINE OPTIONS: Biological science, biology, criminal justice, educational technology, creative writing, instructional design and technology and special education.
→ Graduate assistantships → Scholarship opportunities → Outstanding faculty & practitioners → Network through student organizations → Evening courses offer flexibility
GRADUATE DEGREES Masters: Public Administration Urban Planning & Development Nonprofit Administration & Leadership Environmental Studies Urban Studies PhD in Urban Studies & Public Affairs Joint Law Degrees with Cleveland Marshall JD/MPA, JD/MA, and JD/MUPD
SPECIALIZATIONS & CERTIFICATES Economic Development Environmental Planning
Housing, Community & Neighborhood Development
Geographic Information Systems
Policy & Administration
Historic Preservation
Public Financial Management
Nonprofit Management
Real Estate Development & Finance
Public & City Management
CONTACT Phone: 216.687.3884 Email: urbanprograms@csuohio.edu
csuohio.edu/urban
NORTHEAST OHIO MEDICAL UNIVERSITY Rootstown 330-325-6501 or 330-325-6499 mweakland@neomed.edu or nhose@neomed.edu GRADUATE PROGRAMS: The College of Graduate Studies offers the following certificates and degrees: bioethics certificate, master of public health, master of science in health-system pharmacy administration, master of science in integrated pharmaceutical medicine, doctorate in integrated pharmaceutical medicine. HIGHLIGHTS/ACCOLADES: The College of Graduate Studies provides support to students who are pursuing graduate-level degrees at Northeast Ohio Medical University and in partnership with other Ohio universities. For example, the biomedical sciences program, in collaboration with Kent State University, offers a degree program in five biomedical science disciplines. Students enroll at and receive their degree from Kent State University but have the opportunity to carry out their research with scientists at NEOMED. CLASS LOCATIONS: NEOMED campus, additional locations at consortium universities
SPONSOR SPOTLIGHT GRADUATE PROGRAMS: Maxine Goodman Levin College of Urban Affairs is one of the top colleges for urban affairs in the nation with master’s degree programs in urban planning, public administration, urban studies, nonprofit administration and environmental studies, as well as a doctorate in urban studies and public affairs. It also offers joint master/J.D. programs in public administration, environmental studies and urban planning and development. The Monte Ahuja College of Business offers Association to Advance Collegiate Schools of Business-accredited programs, including its MBA, master of accountancy and MBA with health care administration specialization. The doctor of business administration includes finance, global business, information systems, management, marketing CLEVELAND STATE and operations management arUNIVERSITY eas of study. Cleveland Marshall Cleveland College of Law includes full-time 216-687-5047 and part-time J.D. programs, come2csu.grad@csuohio.edu master of laws and master of legal studies. The College of Liberal Arts and Social Sciences offers master’s degree programs in liberal arts and social sciences. The College of Sciences and Health Professions master’s degree offerings include health sciences, speech pathology and audiology, public health, physics, mathematics and physician’s assistant. Doctoral offerings include adult development, clinical/bioanalytical chemistry, physical therapy and regulatory biology. The Washkewicz College of Engineering offers seven master’s programs that focus on biomedical engineering, civil engineering, computer science, mechanical engineering and software engineering. Doctoral offerings also are available. The College of Education and Human Services offers 11 master’s offerings, including administration, community health education, urban secondary teaching and educational administration. Doctoral programs in urban education include adult, continuing and higher education, counseling psychology and school administration. The School of Nursing master of science in nursing programs include focuses on specialized population, forensic nursing, clinical nurse leader and nursing education. HIGHLIGHTS/ACCOLADES: Cleveland State University offers nationally recognized graduate programs, taught by award-winning faculty, offered at one of the lowest tuition rates in Ohio. Many of CSU’s graduate programs are ranked among the best in the nation, according to U.S News and World Report, including: the No.1 part-time law program in Ohio; the No. 1 online MBA program in Ohio; the No. 7 city management and urban policy program in the country; the No. 17 nonprofit management program in the country; highly ranked health programs in occupational therapy, physical therapy, physician assistant, social work and speech-language pathology. Cleveland State University was selected to receive the 2015 Community Engagement classification from the Carnegie Foundation for the Advancement of Teaching. This prestigious national honor is highly sought-after by higher education institutions as an indicator of close connectivity to the public and private sectors in the region surrounding an institution. CLASS LOCATIONS: Main campus, Cleveland; West Center, Westlake ONLINE OPTIONS: Online accelerated MBA; master of science nursing; master of science, health sciences; master of education, adult learning and development; master of education community health promotion; master of education, educational technology; master of education, gifted education; board certified behavioral analyst; bioethics certificate; chemical dependency counselor assistant; Inspired Leaders principal licensure program; and data-driven decision making.
740-593-2800 graduate@ohio.edu
OHIO UNIVERSITY Athens
GRADUATE PROGRAMS: College of Arts and Sciences, master of arts, master of science, doctorate, master of financial economics; College of Business, master’s degrees
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SPONSOR SPOTLIGHT GRADUATE PROGRAMS: College of Applied Engineering, Sustainability and Technology, master’s; College of Architecture and Environmental Design, master’s; College of the Arts, master’s and doctoral; College of Arts and Sciences, master’s and doctoral; College of Business Administration, master’s and doctoral; College of Communication and Information, master’s and doctoral; School of Digital Sciences, master’s; College of Education, Health and Human Services, master’s, doctoral and educational specialist; College of Nursing, master’s and doctoral; College of Podiatric Medicine, doctoral; College of Public Health, master’s and doctoral. HIGHLIGHTS/ACCOLADES: With a strong focus on research and experiential learning, Kent State KENT STATE UNIVERSITY University is ranked as one of the Kent top-tier Best National Universities 330-672-2661 by U.S. News & World Report. gradapps@kent.edu The university has more than www.kent.edu/graduatestudies 6,000 students working toward one of its graduate offerings, which include doctoral, master’s, specialist, certificate and licensure programs. With its eight-campus system in Northeast Ohio, Kent State offers more than 50 master’s programs in more than 100 areas of specialization, as well as 23 doctoral programs with more than 50 specializations. A range of dual degree options are also available. The College of Business Administration is fully accredited by the Association to Advance Collegiate Schools of Business in business and accounting, a dual accreditation earned by less than 1% of business schools worldwide. The college is internationally ranked a top business college by U.S. News & World Report, rated a best graduate business college by the Princeton Review and ranked Top-Tier by CEO Magazine for executive and full-time MBA programs. The university has a dedication to research with cutting-edge facilities, researchers, resources and partnerships, and its faculty attract multimillion-dollar research grants and contracts. Kent State offers a variety of learning options to allow flexibility in study, including evening and weekend classes and online learning programs, attracting full-and part-time students, as well as working professionals. CLASS LOCATIONS: Kent, Independence, Canton and Regional Academic Center (Twinsburg) ONLINE OPTIONS: Online options are available in art education; business administration; criminology; evaluation and management; instructional technology; journalism and mass communications; liberal studies; library and information science; podiatric medicine; and public health. in business administration and sports administration, and a master of science in athletic administration; Scripps College of Communication, master of arts, master of science, doctorate, master of communication technology and policy, master of information and telecommunication systems; Patton College of Education, master of education, doctorate, masters in educational administration, human and consumer science, recreation science; Russ College of Engineering and Technology, master of science, doctorate, masters in biomedical engineering, computer science, engineering management; College of Fine Arts, masters in arts, fine arts, music, doctorate; Graduate College, master of arts, master of science, doctorate; George Voinovich School of Leadership and Public Affairs, masters in public administration, environmental studies; College
of Health Sciences and Professions: masters in food and nutrition science, exercise physiology clinical, athletic training, nursing, audiology, doctor of physical therapy, speech and language pathology, doctorate, community health services, public health, family studies, child and family studies, social work, physician assistant practice; and Center for International Studies, master of arts. HIGHLIGHTS/ACCOLADES: Ohio University offers an array of graduate programs in disciplines ranging from communication and fine arts to engineering and business. These represent both onsite programs located on the Athens campus and several regional campuses, as well as a variety of online options. Of particular interest to business professionals, the online MBA offers four areas of concentration. The
program is housed in the College of Business and ranked 115th among Best Online MBA Programs by U.S. News and World Report. The master of public administration, offered through the Voinovich School of Leadership and Public Affairs, is another program to note. Ranked as 39th of the Top 50 Most Innovative Public Service Schools in the country, the Voinovich School was also recently elevated into the top 100 U.S. News and World Report Best Public Affairs Grad Schools. The MPA is offered in three formats: traditional on-campus, executive format for working professionals and online. CLASS LOCATIONS: Athens, Pickerington, Lancaster, Chillicothe, Dublin ONLINE OPTIONS: The following master’s degrees programs offer online options: business administration, health administration, financial economics, public administration, athletic administration, sports administration, education, nursing, coaching education, electrical engineering, organizational communication and information and technology systems.
SHAWNEE STATE UNIVERSITY Portsmouth 740-351-3177 graduate_center@shawnee.edu GRADUATE PROGRAMS: The institution offers three master’s programs: a master of education, intervention specialist (mild/moderate K-12); a master of science in mathematics; and a master of occupational therapy. HIGHLIGHTS/ACCOLADES: The master of education prepares educators to be learner-centered and to think critically, act ethically, communicate effectively and work collaboratively to meet the diverse needs of all students. The master of science in mathematics provides professionals -- particularly high school teachers -- with an accessible degree program that allows them to complete a graduate degree in mathematics while maintaining their current employment. The program also provides high school teachers with prior master’s degrees in a content area other than mathematical sciences to become qualified to teach dual-credit courses by completing 18 credit hours in their content area. The master of occupational therapy is a six-semester, full-time, hands-on entry-level program. A graduate degree in occupational therapy includes coursework focusing on theoretical constructs and their application to clinical practice, research competen-
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JCU OFFERS MORE THAN
GRADUATE PROGRAMS COLLEGE OF ARTS & SCIENCES Biology
Mathematics
Clinical Mental Health Counseling
Nonprofit Administration
Communication Management
Pre-Medical Post-Baccalaureate
Education
School Counseling
Educational Psychology
School Psychology
English Humanities
Spiritual Wellness and Counseling
Initial Teacher Licensure
Theology and Religious Studies
BOLER SCHOOL OF BUSINESS Part-time Boler MBA
Master of Science in Accountancy
5th Year Boler MBA
Master of Science in Laboratory Administration
TOP U.S. News & World Report ranks JCU among the top 10 universities in the midwest offering master’s degrees.
Learn more at go.jcu.edu/graduate
cies and professional leadership skills. Graduates are able to sit for the national certification examination for the occupational therapist, administered by the National Board for Certification in Occupational Therapy Inc. The bachelor’s to master’s 3+2 is designed for incoming freshmen who want to fast-track their master of occupational therapy degree. This specialty 3+2 degree offers a bachelor’s in health and occupation and, pending completion, students are admitted into the master of occupational therapy program. The 3+2 degree is a selective program. Acceptance is not guaranteed.
BusinessWeek’s Top Part-Time MBA Program. U.S. News & World Report ranked Wright State University’s online master of nursing degree as among the best online graduate education programs in the nation in 2013. In its Best Graduate Schools 2014 edition, U.S. News ranked Wright State’s College of Nursing and Health program at 38th.
are available in master of arts in financial economics; MBA; master of health and human services; master of respiratory care; master of science in criminal justice; criminal justice management and program planning; master of science in engineering; master of science in teacher education; and early childhood education.
CLASS LOCATIONS: Main campus
PRIVATE
ONLINE OPTIONS: Wright State offers online classes in 14 programs, including a fully online MBA.
CLASS LOCATIONS: Main campus ONLINE OPTIONS: Education is offered in a blended format, with students attending campus two to three times per semester, as needed. Math is 80% to 90% online, with students attending campus two times per semester.
WRIGHT STATE UNIVERSITY Dayton 937-775-2976 wsugrad@wright.edu GRADUATE PROGRAMS: Wright State offers the following graduate studies within the following schools: Boonshoft School of Medicine; School of Professional Psychology; College of Liberal Arts; College of Education and Human Services; College of Nursing; College of Science and Mathematics; College of Engineering and Computer Science; and Raj Soin College of Business. HIGHLIGHTS/ACCOLADES: Wright State University’s graduate school offers more than 80 master’s programs with cutting-edge research, outstanding faculty, educational opportunities and connections to the world. The Boonshoft School of Medicine was honored with a Top Ten Award from the American Academy of Family Physicians for being among the top medical schools in the nation with the highest percentage of graduates who chose to enter family medicine after graduation. According to the Association of American Medical Colleges’ Benchmark Performance Measures, the School of Medicine ranks in the 99th percentile for the number of graduates who practice in primary care. U.S. News & World Report has ranked Wright State’s online master of education degree in curriculum and instruction as No. 31 in the nation among online graduate education programs. Wright State’s part-time MBA program has been recognized in the Bloomberg
CLEVELAND INSTITUTE OF MUSIC YOUNGSTOWN STATE UNIVERSITY Youngstown 330-941-3091 gradcollege@ysu.edu GRADUATE PROGRAMS: The following colleges offer graduate studies: Beeghly College of Education; Bitonte College of Health and Human Services; College of Creative Arts and Communication; College of Liberal Arts and Social Sciences; College of Science, Technology, Engineering and Mathematics; Williamson College of Business Administration. HIGHLIGHTS/ACCOLADES: Youngstown State University offers a broad variety of advanced degrees, including 44 master’s degrees, three doctoral degrees and 15 certificate programs. In addition to the on-campus programs, which offer students hands-on laboratory and research access, there are seven programs offered 100% online to meet the needs of students with personal/professional commitments or who are in geographic locations best served by this more flexible educational format. The university’s 1,300 graduate students have the opportunity to build relationships with graduate faculty and contribute to the research conducted at the school. This provides students with the professional and personal interaction needed to develop their potential in addition to increasing career mobility. Among other accolades, Youngstown State master’s programs in financial economics, counseling, early childhood education and engineering have been recently recognized and nationally ranked by industry publications. Youngstown State’s College of Graduate Studies continues to expand to meet the growing demand for advanced-degree professionals in the global workforce. CLASS LOCATIONS: Main campus ONLINE OPTIONS: Online options
Cleveland 216-795-3107 admission@cim.edu GRADUATE PROGRAMS: Master of music in performance; doctor of musical arts in performance; professional studies diploma; artist diploma. HIGHLIGHTS/ACCOLADES: The Cleveland Institute of Music is one of seven independent music conservatories in the country and is known for superior orchestral, chamber, composition, voice and opera music programs at both the undergraduate and graduate levels. CIM cultivates new generations of young musicians through an immersive and creative educational process. CIM’s world-renowned faculty, which includes principals of the Cleveland Orchestra, is dedicated to mentoring students toward successful performing and professional careers in the musical arts. CLASS LOCATIONS: Main campus ONLINE OPTIONS: None
HIRAM COLLEGE Hiram 330-569-5161 mais@hiram.edu GRADUATE PROGRAMS: A master of arts in interdisciplinary studies. HIGHLIGHTS/ACCOLADES: The Hiram College master of arts degree in interdisciplinary studies allows students to explore areas of study without the boundaries of typical discipline-based graduate programs, which helps to prepare them for a job market that demands a broad set of skills. As part of the Hiram
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SPONSOR SPOTLIGHT GRADUATE PROGRAMS: BW offers the following graduate programs: master of business administration, master of arts in education, leadership in higher education, school social work, physician assistant and speech-language pathology. HIGHLIGHTS/ACCOLADES: BW’s MBA allows working professionals to complete a graduate degree in two years on a part-time schedule. Students can enroll for evening classes, the Saturday-only program or the online, hybrid MBA. The general systems MBA features specialized tracks in management, data analytics, entrepreneurship, human resources, international business and sustainability. In addition, students can opt for an MBA in accounting or health care, or choose the execuBALDWIN WALLACE tive MBA for experienced managers. UNIVERSITY The master of arts in education Berea also is a part-time program. Teach440-826-8002 ers can earn an additional license wgerhard@bw.edu or endorsement in as little as 14 months or complete the entire master’s degree in two years. All master of education programs—literacy, mild/moderate educational needs, school leadership and technology integration — are offered in both an online and traditional-seated format. BW’s online graduate programs in business and education are ranked among the best in the nation by U.S. News & World Report. BW’s newest graduate programs are aimed at Northeast Ohio’s expanding health care sector. The physician assistant and speech language pathology programs are full-time, two-year programs leading to a master’s degree and professional licensure. In addition, BW offers a oneyear accelerated bachelor of science in nursing for students who already have a bachelor’s degree in another field. CLASS LOCATIONS: All programs are offered on the Berea campus. Some MBA programs are offered at Corporate College East, Cuyahoga Community College ONLINE OPTIONS: Master of arts in education in literacy, school leadership, special education and technology integration; and a hybrid MBA, which requires seven weekends on campus in a two-year program, but the majority of the work is online.
master of arts in interdisciplinary studies program, students will go beyond the exploration of a single field of study. Instead, they’ll integrate multiple. Semesters are divided into two, eight-week terms during which students take blended courses -- part online and part on-campus. Coursework is broken up into three distinct sections: interdisciplinary coursework, which is an introduction to the interdisciplinary learning that guides students as they begin to develop the question that will ultimately frame their capstone research; discipline-based coursework, in which students will explore how scholars of various disciplines raise critical questions and how they approach the research to answer them; and lastly, students work with a faculty adviser as they begin answering their chosen capstone question based on the research models studied in their interdisciplinary and discipline-based course work. CLASS LOCATIONS: Main campus ONLINE OPTIONS: All courses are offered in a blended format -- part online and part on-campus.
NOTRE DAME COLLEGE South Euclid 216-373-6337 gradadmissions@ndc.edu GRADUATE PROGRAMS: Master of education, mild intervention specialist license and degree, educational leadership, master’s with a reading endorsement (dyslexia certification can be obtained); master of arts in national security and intelligence studies; and master of science in nursing education. HIGHLIGHTS/ACCOLADES: The Finn Center for Online and Adult Programs offers professionals seeking master’s degree opportunities to commit to new personal benchmarks, create a meaningful program of studies and contribute to the Northeast Ohio community. The Notre Dame College online master’s programs, with two academic terms in fall,
spring and summer, allow a student to take between six and 12 courses in an academic year depending on the individual’s personal goals and commitment. The institution offers a post-graduate program in education and certificate programs. CLASS LOCATIONS: Main campus ONLINE OPTIONS: Master of education programs are hybrid or online; all courses in both the master of arts in national security and intelligence studies and master of nursing education programs are online.
OBERLIN COLLEGE Oberlin 440-775-8413 conservatory.admissions@ oberlin.edu GRADUATE PROGRAMS: The Oberlin Conservatory of Music offers a master of contemporary chamber music; master of music in performance on historical instruments; master of music in teaching; artist diploma; and master of music in choral conducting or instrumental conducting. HIGHLIGHTS/ACCOLADES: Oberlin Conservatory’s graduate programs are intended for highly advanced students of exceptional artistic and creative potential. Students in these programs have access to full scholarships. The masters of music teaching program is a 14-month degree program, beginning each June, leading to initial teaching licensure in pre-K-12 music education. Field experiences focus on public school and community music school teaching. CLASS LOCATIONS: Oberlin ONLINE OPTIONS: None.
TIFFIN UNIVERSITY Tiffin 800-968-6446, ext. 3401 grad@tiffin.edu GRADUATE PROGRAMS: An MBA degree is offered with concentrations in finance, general management, health care administration, human resource management, international business, leadership, marketing, nonprofit management and sports management. The master of education degree offers concentrations in educational tech management, higher education ad-
SPONSOR SPOTLIGHT GRADUATE PROGRAMS: College of Arts and Sciences offerings include a master of arts, master of arts/doctor of laws, master of science, master of fine arts, master’s in integrated graduate studies and a doctorate. Case School of Engineering includes 15 master of science degree programs, including a master’s in engineering and management and a doctor of philosophy. The Weatherhead School of Management includes an EMBA; MBA; master of engineering and management; master of science in positive organization development and change; MSM in finance; health care; operations or research; and supply chain management; a doctorate in management, organizational behavior and operations research. Degrees through the Jack, Joseph and Morton Mandel School of Applied Social Sciences CASE WESTERN include a master of nonprofit RESERVE UNIVERSITY management, master of science Cleveland in social administration and a 216-368-4390 doctorate. Several degrees and gradstudies@case.edu specialties are offered through the Frances Payne Bolton School of Nursing, including master of science in nursing, neonatal nurse practitioner, women’s health nurse practitioner and doctor of nursing practice. At the School of Dental Medicine, degrees include the master of clinical research, DMD/ master’s in public health and doctor of dental medicine. At the School of Law, degrees include executive master of arts in financial integrity, master of patent practice and doctor of juridical science in health law. The School of Medicine degrees include master of arts, master of public health, master of pathology, master of nutrition and doctorates. HIGHLIGHTS/ACCOLADES: Case Western Reserve placed three degree programs in the nation’s Top 10 in the 2016 U.S. News & World Report’s annual ranking of graduate programs. The Frances Payne Bolton School of Nursing master’s degree program ranks eighth, and its doctor of nursing practice is fifth. The Jack, Joseph and Morton Mandel School of Applied Social Sciences ranks ninth in social work master’s degree programs. The School of Law is ninth in health law and 11th in international law. The School of Medicine ranks in the Top 25 for research-oriented medical schools. CLASS LOCATIONS: Main campus ONLINE OPTIONS: Master of science in social administration, master’s degrees and certificates in engineering
ministration and teaching English as a second language. The master of humanities program offers concentrations in arts and visual media, communication, creative writing, English and film studies. The master of science in criminal justice has concentrations in crime analysis, criminal behavior, homeland security administration and justice administration. The master of science also offers a concentration in psychology. HIGHLIGHTS/ACCOLADES: Tiffin University faculty members hold graduate degrees from some of the nation’s most distinguished colleges and universities, have served in executive and mid-level management in various industries, corporations, federal law enforcement, intelligence and military organizations. The Graduate Student Services Office assists graduate students with registration, advising and other concerns. The Career Development Office provides guidance for students and alumni during their career development pro-
cess by providing self-assessment, career exploration and career preparation resources. Academic programs at Tiffin University are authorized by the Ohio Department of Higher Education. Tiffin University is accredited by the Higher Learning Commission. MBA degrees are accredited by the Accreditation Council for Business Schools and Programs. CLASS LOCATIONS: Main campus ONLINE OPTIONS: All classes are available online.
UNIVERSITY OF MOUNT UNION Alliance 800-334-6682 admission@mountunion.edu
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SPONSOR SPOTLIGHT GRADUATE PROGRAMS: Schools offering graduate programs are the Boler School of Business and College of Arts and Science. HIGHLIGHTS/ACCOLADES: The College of Arts and Sciences offers more than 20 graduate degree programs. Master’s degree options include advanced studies in education, biology, business, clinical mental health counseling, educational psychology, English, humanities, initial teacher licensure, mathematics, school counseling, school psychology and theology and religious studies. Graduate studies also offer degrees in communication management and nonprofit administration. The Boler School of Business offers four graduate programs. The part-time MBA program is for those who have two or more years of professional work experience and are planning to take classes on a part-time basis. JOHN CARROLL The 5th Year Boler MBA program is UNIVERSITY for recent college graduates from University Heights any institution, regardless of major. 216-397-1970 Students can finish the degree in ktibbs@jcu.edu 12 months if they complete certain undergraduate business classes before entering the program. The master of science in accountancy prepares students for careers in accounting and for licensure as CPAs. The master of science in laboratory administration is designed to prepare laboratory personnel to grow a laboratory as a business. U.S. News & World Report ranks John Carroll among the top 10 universities in the Midwest offering master’s degrees. U.S. News & World Report ranks the part-time Boler MBA program with the Top 10 in Ohio. CLASS LOCATIONS: Main campus
GRADUATE PROGRAMS: Mount Union offers a master of science in physician assistant studies, master of arts in educational leadership and doctor of physical therapy. HIGHLIGHTS/ACCOLADES: The school’s five-year first-time taker average pass rate on the Physician Assistant National Certifying Examination is 96%, or two points higher than the national average. The institution ranked No. 57 in the U.S. and No. 1 in Ohio by U.S. News and World Report for best graduate schools for physician assistants. The master of arts in educational leadership is a two-year blended program, offering a combination of convenience and connection with online coursework during the traditional academic year and an intensive seven-day on-campus session each summer. That program includes a year-long supervised graduate internship in a school district. The Doctor of Physical Therapy is scheduled to begin in the fall of 2016, pending the appropriate approvals. Mount Union also has a new state-of-the-art science facility as well as working relationships with the Cleveland Clinic (Medical Technology Program), Alliance Community Hospital and Canton and Youngstown area hospitals.
ONLINE OPTIONS: The business statistics course is fully online. ONLINE OPTIONS: The master of
Trusted Advisors. Respected Advocates.
arts in educational leadership is online during the academic year, with an on-campus summer residency.
UNIVERSITY OF NORTHWESTERN OHIO Lima 419-998-3120 jcary@unoh.edu GRADUATE PROGRAMS: MBA HIGHLIGHTS/ACCOLADES: The MBA program offers a one-nightper-week program and a fully online program. The MBA program can be completed in 18 months. The curriculum prepares individuals holding bachelor’s degrees to contribute to the success of their organizations through the enhancement of their management skills. Courses include legal and ethical environment of business, organizational behavior for managers, executive leadership, global business issues and strategies, along with accounting, finance, marketing and production and operations. CLASS LOCATIONS: Main campus ONLINE OPTIONS: All classes are available online.
SM
URSULINE COLLEGE Pepper Pike 440-646-8119 graduateadmissions@ursuline.edu GRADUATE PROGRAMS: Counseling and art therapy; historic preservation; liberal studies; theological and pastoral studies; educational administration; master apprenticeship program for teachers (initial licensure); MBA; master of science in nursing; and doctor of nursing practice.
Helping students get the education they deserve Everyone has the right to an education and at McCarthy Lebit, we advocate on behalf of students of all ages from grade schools to graduate programs. If you or your college student is facing an academic charge of misconduct, Title IX claim or other higher education matter, McCarthy Lebit’s education law practice is here to help.
HIGHLIGHTS/ACCOLADES: Classes are scheduled with a choice of weekdays, evenings and weekends; semester-long and executive formats; as well as hybrid courses, combining both in-class and online learning. All graduate programs include hands-on experiences, where students will apply classroom learning to their field. Students also complete a capstone project that will further integrate all they have learned during the program. CLASS LOCATIONS: Pepper Pike, Holden University Center at Lakeland Community College.
SPONSOR SPOTLIGHT
LAKE ERIE COLLEGE Painesville 855-GOSTORM admissions@lec.edu GRADUATE PROGRAMS: MBA, master of education, master of science in physician assistant studies. HIGHLIGHTS/ACCOLADES: The Parker MBA is one of the most popular graduate degree programs at Lake Erie College. The program is practical, flexible, affordable and regarded by employers. Students may choose from one of several convenient degree tracks, with an accelerated option available for degree completion in 11 months. Specialized concentrations also are available, including concentrations in health care administration and information technology management. Faculty members have prestigious academic credentials and have been leaders in the business world, providing an opportunity for students to develop valuable contacts. Lake Erie College offers a lifelong learning guarantee, allowing graduates of the Parker MBA program to continue taking MBA courses at no charge for the rest of their lives. The Parker MBA program is among the less than 10% of programs worldwide that have earned accreditation from the International Assembly for Collegiate Business Education. CLASS LOCATIONS: Main campus, Holden University Center of Lakeland Community College, Kirtland ONLINE OPTIONS: Students have the option of taking selected courses online.
ONLINE OPTIONS: Some courses are hybrid, while others are completely online.
Inquiries for inclusion in this directory were sent to all public colleges and universities in Ohio, as well as to all private institutions within Crain’s Northeast Ohio coverage area. All information included has been provided by the schools. Sponsor schools are highlighted.
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quarters, in Pittsburgh, while maintaining the other in San Francisco, Mark said. Smucker’s realized about $35 million in annual savings from the integration of Big Heart in its fiscal year that ended April 30, Mark said. It will work this year to cut another $90 million from Big Heart’s cost structure, and then try to get at least another $75 million out the following year. All of that savings will go straight to the company’s bottom line, he said. “Anything above $200 million will be reinvested in the business,� he said.
CONTINUED FROM PAGE 1
“They did say that!� noted the 46year-old Mark Smucker. But the company’s board, as it has always done, valued the company’s values and culture above all else, and sees it as key to the company’s success, said Richard. “You certainly can’t do it without the skills, which he has. Then the question is how important is culture on top of that — and it’s very important,� Richard said. “Actually, our board considered external and internal candidates — and the impact of each on the company.� Investors seem to approve. Smucker’s stock has risen from $127 per share to about $130 in the two weeks after Mark was named CEO. Orrville didn’t mind, either, and Mayor Dave Handwerk said he’s very happy to see another Smucker take the company’s top job, because the company’s culture is important to the town where it employs about 1,700 people. “I am very proud, no matter where I travel, to say that Orrville is the home of the J.M. Smucker Co. I can think of no better example of a community-minded business,� Handwerk said. “Mark is younger, but going to be a great leader.� Not that Mark didn’t have a bit of an advantage over most outsiders — or insiders, for that matter — in terms of knowing the business. Like most members of his family, he started working at the company’s main Orrville plant when he was 16. He also had to, per the family’s selfimposed rules, try something else first, and get a master’s degree. Check, and check. Mark got his bachelor’s degree in geology and an MBA. He taught high school in Alabama and then went into advertising in South America, where he
worked on Proctor and Gamble accounts for Leo Burnett. At his father’s urging, he joined the company full-time in 1998. He remained in South America for a couple of years, working for Smucker’s, before returning home, buying a home in West Akron and working in Orrville. Now, with almost 20 years under his belt as a company executive, Mark has what could be one of the greatest challenges in business: taking over a successful company, maintaining its success and growing it at the same time.
Still hungry?
The full spread For those who have not been watching in recent decades, Smucker’s is a lot more than a jelly and jam company. It consists of more than 80 brands, including American icons like Jif Peanut Butter, Folgers Coffee, Pilsbury and, as of late, Milk-Bone, Meow Mix and Kibbles ’n Bits dog food. “We’re the center of the store,� Mark said, explaining that the company does not deal with the perishable or refrigerated foods that occupy the perimeters of most grocery stores and, instead, focuses on the canned, boxed and bagged items that tend to be in the middle of the market. The empire is almost evenly divided in terms of sales among its three major business lines: coffee, consumer foods and pet foods. For the quarter ended Jan. 31, the company reported revenues of $1.97 billion. Coffee accounted for 29.2% of sales, consumer food was 28.9% and pet foods contributed 28% of sales. The company’s international and food service business, which sells products from the other segments, made up 13% of sales. “It’s a third, a third and a third,�
The Smucker’s General Store in Orrville. (Dan Shingler) Richard said of the company’s diversification. Mark’s job is to sustain and grow all three. Job one will likely be for the company to stick to its knitting — keeping its values of “the golden rule and common sense� in place and continuing to integrate its most recent big acquisition, the purchase of Big Heart Pet Brands a little more than a year ago for $6 billion.
That company brought Smucker’s into the pet food and treats market in a big way and added about $2 billion a year to the company’s current sales. The sales gains came quickly and, to some degree, almost automatically. Now Mark must ensure that Smucker’s integrates the company to realize $200 million in annual cost savings. Toward that end, Smucker’s will close one of Big Heart’s two head-
One way that Smucker’s invests its money is in acquisitions. Mark divides them into three categories: “transformative� acquisitions that change the company the way the Big Heart deal did, “enabling� acquisitions that bring the company product lines related to its existing brands, and “bolt-on� acquisitions that can be added to existing business lines. The transformative deals come infrequently and the company will react to them as opportunities come up, but it can do smaller bolt-on and enabling deals almost anytime, Mark said. Such deals are also where Mark might put his own stamp on the company. Younger and perhaps more worldly than his predecessors, Mark is a bit of a new breed of Smucker. For example, one of the first things he did as CEO was to allow employees — even executives — to wear jeans to work whenever they like. That was a no-no under Richard and those who came before, and the amount of rigid, unwashed new denim walking around the company’s executive suites might be telling, with regard to how big a change that is for company executives. CONTINUES ON PAGE 32
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CONTINUED FROM PAGE 31 About 20% of Smucker’s brands account for about 80% of the company’s sales, Mark said. It’s critical to keep those big brands healthy, and doing that enables the company to pay for smaller acquisitions. Often, that means buying companies making modern, trendy foods, like when Smucker’s purchased Seattle-based Sahale Snacks Inc., a maker of what Mark terms “salted nuts and snacks for foodies.” Smucker’s did not disclose what it paid for Sahale, but with annual sales of about $50 million it was surely an easy buy for the Orrville giant. Nonetheless, it’s an obvious favorite of Mark. It’s the first small acquisition he mentions, the first new snack food he mentions and the product he brings out to give to a reporter asking about important new brands.
As CEO, Mark is now in a position to pick future, small acquisitions that he thinks will position the company for future growth. “Those smaller brands allow us to go after trends that are happening, with more of a modest investment, while we see if they turn out to be big ideas,” Mark said. The company will be on the lookout for such deals, he said, and can do them without having to bring in investment bankers or tinker much with its balance sheet. Bigger deals, if they present themselves, will still get done — they’ll just require a bit more financial work, Richard said. “You never know when someone is going to be willing to sell a brand or a business, but when they are you, we have to be ready. And we are,” Richard said. In the meantime, Smucker’s will
Of Smucker’s 7,000 employees, 1,700 are in Orrville. (Dan Shingler) keep up its usual regimen of heavy marketing, which only grows in scope as the company’s line of products expands. That means big ad
campaigns for products, like Smucker’s “Uncrustables” sandwiches, continued support for stalwart products like Jif Peanut Butter, cam-
paigns for the new pet food lines and continued support for the U.S. Olympic team. That last effort might be Mark’s favorite, since it means being involved with the Olympics in Brazil, a place Mark knows well and still loves. Will he go personally to support both the team and his company’s efforts even in light of the Zika virus that has broken out in South America? You bet. “I’m taking my family, actually. We’re going to the beach for a week first,” Mark said. Is he worried about Zika? “Yes, it is on my mind. I’ve talked to friends there — they say ‘bring a lot of bug spray.’ ” But he’s not too worried, he said. He’s already braved things like Dengue Fever, after all. And he’s got a lot more to think about these days as well.
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Business of Life
Volunteers from PNC Bank, lower right, lean back as they help lead roughly 400 Head Start children in the “Hokey Pokey” during Toddler Rock at the Rock Hall. (Tim Harrison photos)
Toddlers discover that learning rocks BY JAY MILLER Mark Messina stands at the back of a crowd gathered below the Klipsch Stage on the main floor of the Rock and Rock Hall of Fame and Museum as Kathryn Metz belts out a song. “Aaahh … aaahhh … aaahhh … aaahh,” she sings, her voice rising and falling just like The Beatles’ version of “Twist and Shout,” a rock standard. “Yeah, shake it up toddlers, twist and shout …” Shake it up toddlers? Yes. It’s a brief concert for preschoolers, and Messina, a sourcing specialist at PNC Bank’s operations center on Cleveland’s West Side, is a volunteer, making sure none of the 100 toddlers dancing and singing below the stage wander too far off. The kids, from Head Start programs around Cleveland, are at the Rock Hall for “Toddler Rock,” a music therapy program that uses rock music to prepare pre-kindergartners for school through singing, instrument playing, movement, storytelling and pre-reading. When “Twist and Shout” wraps up, Metz calls four PNC volunteers to the stage and hands out sheets of paper with the letters D, I, M and G on them and closes the “concert” singing a less-recognizable song whose key lyrics are just the letters D, I, M and G. Still, the kids are up and dancing and
shouting out the letter names as Metz points to each letter. Messina is there because he leads one of several teams of PNC employees who come down to the lakefront museum on Tuesdays and Thursdays to help out with Toddler Rock. They are among a large cadre of PNC employees and executives who donate their time to groups that help toddlers get ready for school. (And Metz, the singer, by the way, is not exactly a rock and roller, at least not this day. While she’s been in bands, she’s also manager of education outreach at the Rock Hall,
with a doctorate in ethnomusicology from the University of Texas at Austin.) PNC employees can get 40 hours annually of paid volunteer time as part of the bank’s longstanding “Grow Up Great Program,” a philanthropic commitment to early education. Messina puts more than his 40 hours into Toddler Rock. “Our group is dedicated,” he said. “The slot is always on our calendar.” After the concert, the PNC volunteers will shepherd the kids into rooms with a music therapist. “Then the excitement begins,”
Messina said. “The guitar strums, the songs begin, the learning begins. For an hour, we capture an environment of new letters, new songs, colors, following directions — wherever the music therapist leads, we follow. Children and education are special to me, and the music is icing on the cake. The three together are incredible.” The Rock Hall created Toddler Rock in 1999. It’s part of a broader commitment to education that reaches everyone from toddlers to students in grades K-12 and beyond and teachers. For PNC Financial Services Group Inc., the bank’s parent company, Toddler Rock is part of a $350 million commitment the company made in 2004 to help prepare children from birth to age 5 for success in school and life. In Northeast Ohio since 2009, Grow Up Great has provided $6.8 million in grants to support learning readiness programs like Toddler Rock and paid its employees for nearly 45,000 hours of volunteering. In addition, PNC volunteers who hit 40 hours in a year can earn a donation of $1,000 — or $3,000 for a volunteer team — to their preschool program. Mark Messina, a sourcing specialist at PNC Bank, helps with Toddler Rock, a music therapy program for preschool-age kids, at the Rock Hall.
The business world has gotten more involved in early childhood education in recent years, as a growing body of studies concluded that it will be difficult for the United States to maintain a world-class workforce without a serious commitment on the part of government and the business world to high-quality early education. In 2009, the Business Roundtable, a national organization of corporate chief executives, reviewed educational, scientific and economic studies and issued a report titled, “Why America Needs High-Quality Early Care and Education.” The report argued that business, which traditionally has focused philanthropic resources on K-through-12 education, should turn its attention to birththrough-age-5 education as well. PNC was an early adopter of this pre-K education, but others have joined the bandwagon. For example, in addition to PNC, DDR, Eaton Corp. and RPM Inc. have helped fund Invest in Children, a public-private partnership operated by Cuyahoga County that advocates for the well-being of young children and works to increase financial support for early childhood programs. As for Messina, while he is looking ahead to retirement some years down the road, he expects that he’ll continue to work with Toddler Rock. “It’s a passion,” he said.
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Source Lunch Throughout Nicole Mullet’s career, love of community has been a driving force. Mullet is executive director of ArtsNow, a nonprofit aimed at advancing arts and culture in Summit County. Along the way were stops as a language arts teacher and a director of tech prep at the University of Akron. But the common threads were always the arts and community connection. The connection part is evident to those who know Mullet. Involved in professional organizations and passionate about her city, she seems connected to just about everyone in Akron. ArtsNow looks to facilitate a more cohesive arts community — one that can bring all sorts of benefits to Summit County. That’s important work to Mullet. “I am incredibly blessed that my love of arts, community and service have found such a perfect space in ArtsNow.” — Sue Walton
ArtsNow’s first priority was to set up SummitLive365.com, an interactive website that lists all of the arts and culture happenings in Summit County. Now that it is complete, what’s next for ArtsNow? Websites, especially one with the daunting task laid out for SummitLive365, are never complete. It truly is an evolving and growing resource that is constantly being examined and improved with an eye toward connecting the community to arts and culture — and connecting artists to one another. ArtsNow is also in the midst of strategic planning, which will help crystallize how we enhance communication efforts and deepen relationships among the arts sector and other sectors. We also expect to embark on arts advocacy, storytelling and data collection. How do arts and culture help define a region? The arts have the power to inspire creativity, fuel innovation, generate economic vitality and create a space that is uniquely our own. When communities authentically engage with the arts and culture sector, we have the ability to expand our capacity to understand the lives of our neighbors, colleagues and friends. That is an incredibly powerful opportunity. How can the business and the arts communities better work together? Communities that invest in the arts reap the additional benefits of jobs, economic growth and a
quality of life that attracts and retains talented individuals. In Summit County, we are lucky to have some business partners who understand this reality and work to actively engage and celebrate our creative community. I believe that learning to communicate with one another and seeing each other as resources and advocates is the baseline for increasing collaboration and partnership. You’re president of the young professionals group Torchbearers. Why should people participate in these types of organizations? The emerging leaders of Akron do a tremendous job of collaborating with one another. These groups truly set the bar for authentic partnership in the city. Representatives from the Young Black Professionals Coalition, ArtCetera, the Young Professionals Network and the Young Professionals of Akron all meet quarterly along with Torchbearers to partner on a variety of initiatives to increase opportunities for people to connect to and engage with their city. For me, Torchbearers provided an opportunity to meet passionate, smart, committed leaders who are committed to giving back to the area. I was provided the space to grow, develop new skills and increase my capacity to give back. Torchbearers, as an organization, has committed to being uncomfortable in 2016. As individuals and an organization, we are seeking out opportunities to grow and develop as community members
Nicole Mullet ARTS ADVOCACY
and leaders — not because it is the easy option, but because we know that in times of discomfort we are provided the opportunity to become stronger versions of ourselves. I would love for every person to have the opportunity to get uncomfortable, grow, develop and meaningfully connect to their city. Is Northeast Ohio doing a good job of utilizing and engaging its young professionals? This is a big question with a complicated answer for a oneparagraph response! I will say this: When community members move beyond identifying one another by age and generation, we allow the space for some truly powerful collaborations to occur. When emerging leaders authentically seek insight from colleagues who have more experience in a particular area, there is an opportunity for both individuals to grow. When organizations stop thinking that including a millennial on a committee or board is the same as engaging that individual and fully utilizing their unique skill sets and vantage point, I believe there is a better chance of accomplishing mutually beneficial goals. It is a powerful room to be in when a group, regardless of age and background, seeks first to understand, and then to be understood. If we continue to allow the space for individuals with passion, a collaborative spirit and the foresight to believe that change does not need to be feared, we will have provided our region with some incredible momentum.
FOUR THINGS: GUILTY PLEASURE Watching endless hours of “Murder, She Wrote.” “I love it because you know everything will be OK in the end,” she said.
FAVORITE THINGS TO DO Reading plenty of fiction, because fiction opens the mind to possibilities and allows people to feel empathy, she said. Journaling.
FAVORITE READS Mysteries (see above guilty pleasure) Fantasy novels “And, like everyone, I went through a Jane Austen phase.”
WHY AKRON Mullet is from Berlin, Ohio, in the heart of Amish country. Akron offers a ton of things to do and a metropolitan vibe without being overwhelming to someone who grew up in a small town, she said.
LUNCH SPOT Mustard Seed Café 867 W. Market Street, Akron
The meal A bowl of Thai coconut vegetable soup with a side of brown rice and soda water; chicken quesadilla and reverse osmosis water.
The vibe Open and bright, the café has a casual vibe. Patrons place their orders at a counter and runners bring out the food to sleek, modern tables. Locals call the café “Akron’s living room” because people love to just hang out, and the space has sofas and a fireplace. It even has a stage for live music.
The bill $22.95, plus tip
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VFA
CONTINUED FROM PAGE 7 fellowship ends this summer. Many of his peers who joined the program at the same time plan to stick around as well, he said. “Everyone here has that love of Cleveland and wants to see it grow and succeed,” he said. Four of the seven fellows who came to Cleveland in 2013 stayed in the area after their fellowship ended, said Deborah Hoover, CEO of the Burton D. Morgan Foundation, one of several nonprofits that has helped finance the program in Cleveland. Several current fellows plan to stick around as well, she said, citing a conversation she had with five fellows in April, while attending an event that featured a speech by Venture for America founder Andrew Yang. “A number of them at my dinner table said, ‘We love it here. … Cleveland is my new town,’ ” she said. Multiple fellows told Crain’s that they’ve formed a strong bond with the region — partly because they’ve formed a strong bond with each other. Venture for America encourages fellows in the same city to get to know each other and get involved in the local community. And that effort has worked well in Cleveland. So well that it’s kind of weird, Boxcast fellow Lena Kelly said with a laugh. There are 15-or-so VFA fellows and alumni who still live in the area, and almost all of them live within a few blocks of each other, near PlayhouseSquare. They get together for dinner and coffee. They play sports
Courtney Kishbaugh at Biomotiv, where she works as a business analyst. (Philip Campbell via Man With A Cam) with each other. They even watch “Game of Thrones” together. Why would they not want to hang out with a bunch of like-minded people? “We joke that we’re a little cult,” said Kelly, a Los Angeles native who is planning to stay in Cleveland. She joined Boxcast’s marketing team because the company seemed invested in her growth. Daily, the company’s CEO, said companies that recruit Venture for America fellows should go out of their way to find mentors who can help them grow — even if the mentor doesn’t work at the company. “Don’t you dare bring a candidate
in unless you can mentor them with someone really good,” he said. Back in 2013, Boxcast was based in the basement of a convent in Cleveland’s West Park neighborhood. So how did it manage to recruit its first fellow, Peter Spaulding, from Yale University? Spaulding said that Daily promised to show him “the ins and outs, the ups and downs” of running a startup. That sounded great to Spaulding, who said his “goal was to learn as much as possible.” And he’s still learning, which is why he stayed in Cleveland after his fellowship ended last summer. “I’m still growing. I saw a bunch
of challenges ahead of me — and still do,” he said. Eighteen local employers are currently recruiting VFA fellows, said Joe Guy, senior community partnerships manager for the Midwest region. Seven 2016 graduates have already accepted positions in the Cleveland area, and that number will probably grow to at least 10, Guy said. Companies that recruit them need to pay at least $38,000 a year. They also are required to pay Venture for America a one-time, $5,000 fee for each fellow they hire. So what do you need to know if you’re a student — or a parent of a student — interested in the program?
For one, Venture for America vets all of its employers to ensure they are actually interested in providing an entrepreneurial experience for its fellows. And if one of those employers goes out of business, as startups often do, the organization will help any fellows who work there find new positions, said Courtney Kishbaugh, a fellow at BioMotiv, a drug development company in Shaker Heights. She’s one of two fellows with local ties; she attended Magnificat High School in Rocky River. Sam Roberts, a Case Western Reserve University graduate from Boston, worked for Paragon Robotics and helped start Bookwork, which created a career services platform for universities. Not every fellow is interested in starting a company. For instance, Kishbaugh wants to support entrepreneurs through a career in economic development. However, at least three Cleveland fellows have served as founders or cofounders of new companies. One of those companies is based in another state and another, Bookwork, is on hiatus. The third, a natural hair care products business called NaturAll Club, has been accepted into the VFA Accelerator in Philadelphia. Roberts, who plans to remain in Northeast Ohio, will soon begin serving as that company’s chief operating officer. Over time, however, more fellows who do stay will start their own companies, according to Baiju Shah, CEO of BioMotiv, which has hired four VFA fellows to date. “I imagine we will be training a cadre of future bioscience entrepreneurs for the Cleveland area,” he said.
Your Leasing Solution Get customized financing for the equipment your company needs. When Don needed to replace the equipment in his steel manufacturing plant, he immediately went to FirstMerit Bank. Thanks to their experienced Equipment Finance team and wide range of leasing options, Don was able to improve his company’s cash flow by financing 100% of the equipment cost, plus the additional associated soft costs. So now, Don has the right equipment to manufacture a lot of steel—and a lot of profit.
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z MAY 23 - 29, 2016 z CRAIN’S CLEVELAND BUSINESS
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CONSTRUCTION John Berg Vice President of Field Operations Cleveland Construction, Inc. Cleveland Construction announces the appointment of John Berg as Vice President of Field Operations. He joins the leadership team where he will oversee the company's field personnel and subcontractor activities in Cleveland and nationally. John received his bachelor's degree in Construction Engineering from the University of Toledo College of Engineering and has a Construction Site Supervision Certificate from Purdue University. Learn more at www.clevelandconstruction.com
Dan Dietrich has been promoted to Vice President of Construction and continues to be one of the firm's key construction managers since 2002. In this new role, he will join the executive team and be responsible for overseeing all Cleveland-area projects while ensuring a working collaboration with clients and the local subcontractor community. Dan received his Bachelor of Science Degree from Bowling Green State University in Construction Management. Learn more at www.clevelandconstruction.com
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Frantz Ward LLP Frantz Ward is pleased to promote Susan J. Abraham to the dual roles of COO/CFO. Susan joined the firm in 2015 and will continue her previous duties. As COO/CFO, Susan oversees all administrative staff and works closely with the Management Committee to assist in the development of long range plans, group goals, and growth objectives. She provides direct leadership and oversight by creating policies and procedures and leading the execution through training, implementation and reporting.
Swann will oversee culinary operations throughout the three InterContinental Hotels Group managed properties on the Cleveland Clinic campus, including banquet services and in-room dining at all three hotels, as well as C2 restaurant in the InterContinental Suites, Moce' Cafe & Bar in the Holiday Inn Cleveland Clinic and Table 45 and the North Coast Cafe in the InterContinental Hotel.
Mattew Anderson Chef de Cuisine Table 45 Mathew will collaborate with Table 45 creator Zack Bruell to advance the restaurant's World Cuisine menu, sushi bar and patio. The restaurant features one of the city's only eight-person, theater-style chef's table, enclosed in glass, which overlooks the main kitchen. The table is available for customized multi-course tastings and wine parings.
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RIDDELL
make who it is known, we’re not saying nor commenting on speculation about Riddell,” Gillock said. For its part, Gillock said the suburb did not contact the prospective company. “I’m very happy to see their interest,” the mayor said. “We were approached by the site selector and their consultant. They were originally looking at several sites but are now focused on this one.” Sizing up the deal for North Ridgeville “is a really hard question,” Gillock said. “It’s important. It would immediately become our largest employer. On the other hand, I have taken a lot of comfort in not being dependent on one large company that might leave someday. It’s a huge opportunity for us to bring in a company like this and get rid of an eyesore.”
CONTINUED FROM PAGE 1
Riddell spokeswoman Erin Griffin said the company won’t comment until it works “through our facility exploration process, and we look forward to sharing more about our plans in the next 30 days.” Steps North Ridgeville has taken for its mystery prospect include giving a measure to rezone the former shopping center site two of three required readings and enacting a tax increment financing plan for the parcel. Gillock said the council will have a special meeting on Tuesday, May 31. The company wants to finalize details to perhaps announce its plans July 1. “Until the company decides to
Brinda said her city has offered a tax increment financing package and income tax incentives for Riddell. She said she’d once been told the company was looking outside the city and later told it was not. “It’s frustrating, but we want to keep them,” she said. Riddell’s Griffin would not discuss why the company is in the market. She noted its current property is 220,000 square feet in size. Riddell purchased All-American Sports Co. in 1991. All-American was established in Elyria in 1946. Scannell Corp. the Indianapolis developer working with the North Ridgeville project, declined comment on the plan. Chris Livingston, managing director of Avison Young’s Cleveland office, did not return three phone calls on the project.
Know someone who is great with numbers and has a story to tell? The second “Who to Watch” section of 2016 — “Who to Watch in Finance” — is scheduled for publication on June 27. It will highlight up-and-comers and innovators in Northeast Ohio’s finance sector, and we’re looking for suggestions. We’re profiling individuals who are, of course, good with numbers but also have a passion for their work, their clients and the Northeast Ohio community. They could be crunching numbers for a wealth management firm, one of the region’s big hospitals, a growing public company or even a worthy nonprofit. There are no hard and fast requirements for this section, other than that the candidate needs to exhibit the kind of potential that makes him or her someone to watch in the finance sector. We’re looking for those individuals who might fly under the radar now but could disrupt their fields — for the better — in the future. If you think you know who will be among those leading Northeast Ohio’s finance space in the future, drop an email to sections editor Timothy Magaw, tmagaw@crain.com, or call 216-771-5359. Send your suggestions no later than Wednesday, May 25. Please include the person’s name, position and a paragraph explaining why he or she stands out.
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20160523-NEWS--38-NAT-CCI-CL_--
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z MAY 23 - 29, 2016 z CRAIN’S CLEVELAND BUSINESS
THE DISH: Lee Chilcote
Busy companies are well served by LunchOwl delivery BY LEE CHILCOTE Chilcote is a freelance writer and editor who has written for Vanity Fair, Next City, Belt and other publications. He is cofounder of Literary Cleveland.
A few years ago, Scott Himmel had a memorable conversation with a friend who runs a software company about how much time his employees waste ordering lunch.
“By 10 a.m., his developers who he paid very well weren’t writing code, they were debating where to pick up lunch that day,” said Himmel. “It all takes time. Then the pizza and Chinese food would put people to sleep by 3 p.m.” To create a healthier, more convenient option for employees, he launched LunchOwl, a “fun and innovative workplace lunch service … on a mission to help office workers
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across the country eat well and feel their best.” LunchOwl’s target market is companies with between 15 and 400 employees that don’t already have their own cafeterias. Partner companies kick in $3 to $6 of the cost of each lunch, which keeps it affordable for employees. A couple times a week, the company delivers a healthy, delicious lunch to employees who opt into the service. Employers buy into it as a wellness initiative that keeps workers healthy and productive. In its first year and a half, LunchOwl has garnered 27 partner companies. Currently, it is serving about 800 lunches per week. Retention has been 100% so far, Himmel said, and the company is gearing up for another growth spurt as it brings on a new executive chef and expands its footprint. The service has received positive reviews from employers and employees alike. “Our philosophy is to meet you where you are and offer lunch that’s one small step to better health,” said Himmel, a native Clevelander who created and sold a startup called Campusmenus.com before starting LunchOwl. He also spent four years working for Paladar Restaurant Group, where his brother, Andy Himmel, is the founder and CEO. LunchOwl owes its success in part to validating the concept early on, Himmel says. During a six-week pilot phase, he worked closely with three companies to test the employer contribution amount, the percentage of employees that would sign up for the service, and the average check amount. He also developed and tested the initial menu and honed his delivery model. As a result, when it came time to
launch, Himmel was able to base his decisions on real data. Additionally, he could observe the impact of his service on people’s lives. “If I invested so much in something, I wanted to make sure it was so special that if it was gone they’d truly miss it, and they did,” he said.
At your service When a partner company signs up, LunchOwl brings lunch to the office so everyone can try it. Once employees sign up, it delivers lunches in a custom-built tote and places them in a branded fridge in the office. Himmel also is in the process of finalizing a prototype delivery vehicle and rack system. Yet perhaps the coolest part of LunchOwl’s service is its proprietary software, which Himmel calls “the Pandora for lunch algorithm.” When customers sign on, they’re asked to fill out a profile and choose what type of food they prefer (the choices are “Kale, who?”, “Middle of the road,” “Pretty healthy” and “Adventurous”). Then the algorithm generates a recommendation before their delivery day. Workers can also select from a menu of eight to 10 options in the $7 to $10 range. For example, LunchOwl’s “pretty healthy” option might be the grilled asparagus spring salad, dark chocolate truffle and pineapple mint infused water, while customers who choose “Kale, who?” might get a recommendation for the turkey Caesar wrap or adobo steak sandwich. All of LunchOwl’s meals are antibiotic free, and they source some of their products locally. Himmel, who calls his customers “guests,” prides himself on LunchOwl’s quirky, personalized service.
A character called Mama Owl delivers virtual lunch notes with every meal, recommending local activities or providing healthy eating tips. Himmel said companies like the service because it’s a relatively inexpensive, high-value benefit for employees. It also improves worker productivity and enhances team bonding. Many companies underestimate how important this is to attracting and keeping top talent, he said. LunchOwl also strives to be green by minimizing waste. Dishes come in microwaveable reusable clam shells that are picked up with the next delivery.
Looking ahead Currently, LunchOwl’s geographic focus is downtown/Midtown, Lakewood, Beachwood and Solon. Soon it will add Landerbrook/Mayfield Heights to the mix. The firm has seven full-time employees. Himmel said it will be up to 30 partner companies soon. In May, Himmel is bringing on a new executive chef, Matt Creighton, the former executive chef at Eaton Corp. with Guckenheimer Corporate Dining, to ramp up operations. “We’re at a good place, because we’ve been focused on getting the service right, not the rate of growth,” said Himmel. “Now we’re shifting to scaling up and operations. We want to bring in more companies at a faster clip.” Himmel’s long-term plan is to be in 30 major markets in the next 10 years. To that end, he’s preparing to raise seed funding. There are about 9,000 companies with 15 to 400 employees in Northeast Ohio, so his first step is simply bringing on more local partners.
We’re Back in Beachwood. Local Loan Decisions from a Local Bank. When you’re local, naturally you care more about local business ... and Geauga Savings is ready to help grow your business with a lending office right here in Beachwood! For years, Dell and Heathyr have been helping area businesses with: • Working Capital Lines of Credit • Equipment Guidance Lines
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20160523-NEWS--39-NAT-CCI-CL_--
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CRAIN’S CLEVELAND BUSINESS z MAY 23 - 29, 2016 z PAGE 39
The List COMPANY THIS ADDRESS YEAR PHONE/WEBSITE
LARGEST MANUFACTURING COMPANIES Ranked by FTE Local Employees FTE FTE LOCAL EMPLOYEES EMPLOYEES IN OHIO
PARENT COMPANY HEADQUARTERS
LOCAL MANUFACTURING FACILITIES
PRODUCTS MANUFACTURED LOCALLY
(1)
TOP LOCAL EXECUTIVE TITLE
1
General Motors Co. P.O. Box 33170, Detroit 48232-5170 (313) 556-5000/www.gm.com
6,000
8,850
General Motors Co. Detroit
Lordstown Complex, Parma Metal Center
Chevrolet Cruze and vehicle parts
Rick Demuynck, plant manager, Lordstown Complex; Lamar Rucker, plant manager, Parma Metal Center
2
Swagelok Co. 29500 Solon Road, Solon 44139 (440) 248-4600/www.swagelok.com
3,917
3,917
Swagelok Co. Solon
Solon, Highland Heights, Strongsville
Tube fittings, valves, hoses, regulators, fluid systems components, assemblies
Arthur F. Anton president, CEO
3
Sherwin-Williams Co. 101 W. Prospect Ave., Cleveland 44115 (216) 566-2000/www.sherwin.com
3,126
5,044
Sherwin-Williams Co. Cleveland
Bedford Heights
Paint
Christopher M. Connor executive chairman
4
Ford Motor Co. One American Road, Dearborn 48126 (800) 392-3673/www.ford.com
3,076
NA
Ford Motor Co. Detroit
Avon Lake, Brook Park
E-Series Strip Chasses, F-650/750 Medium Duty Trucks, 3.5L EcoBoost and 3.7 L Duratech engine
NA
5
Goodyear Tire & Rubber Co. 200 Innovation Way, Akron 44316 (330) 796-2121/www.goodyear.com
3,000
NA
Goodyear Tire & Rubber Co. Akron
Akron
Race tires
Richard J. Kramer chairman, CEO, president
6
Lincoln Electric 22801 St. Clair Ave., Cleveland 44117 (216) 481-8100/www.lincolnelectric.com
2,670
2,700
Lincoln Electric Holdings Inc. Euclid
Euclid, Mentor
Welding and cutting systems
Christopher L. Mapes chairman, president, CEO
7
Nestle USA 30003 Bainbridge Road, Solon 44139 (440) 349-5757/www.nestleusa.com
2,635
3,148
Nestle S.A. Vevey, Switzerland
Solon
Stouffer's and Lean Cuisine frozen entrees
Paul Grimwood chairman, CEO
8
The Lubrizol Corp. 29400 Lakeland Blvd., Wickliffe 44092 (440) 943-4200/www.lubrizol.com
2,300
2,362
Berkshire Hathaway Inc. Omaha, Neb.
Avon Lake, Painesville
Lubricant additives for engine oils, driveline and other transportation-related fluids, industrial lubricants
James L. Hambrick chairman, president, CEO
9
TimkenSteel Corp. 1835 Dueber Ave. SW, Canton 44706-0932 (330) 471-7000/http://timkensteel.com
2,260
2,350
TimkenSteel Corp. Canton
Canton
Special bar quality (SBQ) steel and seamless mechanical tubing
Ward J. "Tim" Timken Jr. chairman, CEO, president
ArcelorMittal 3060 Eggers Ave., Cleveland 44105 (216) 429-6000/www.usa.arcelormittal.com
2,157
2,300
ArcelorMittal Luxembourg
Cleveland, Warren
Steel
Eric Hauge vice president, general manager ArcelorMittal Cleveland
Alcoa 1616 Harvard Ave., Cleveland 44105 (216) 641-3600/www.alcoa.com
2,000
2,115
Alcoa Inc. New York City
Cuyahoga Heights, Cleveland, Barberton, Canton, Niles
Aerospace structural components, commercial vehicle wheels, titanium ingot
Eric Roegner, COO, Alcoa Investment Castings, Titanium and Engineered Products; president, Alcoa Titanium & Engineered Products; president, Alcoa Defense; Tim Myers, president, Alcoa Wheel and Transportation Products
10 11
LET OUR EXPERIENCE BE AN ASSET TO YOUR BUSINESS Contact Chris Felice + cfelice@maloneynovotny.com + 216.363.0100 COMPANY THIS ADDRESS YEAR PHONE/WEBSITE
FTE FTE LOCAL EMPLOYEES EMPLOYEES IN OHIO
PARENT COMPANY HEADQUARTERS
LOCAL MANUFACTURING FACILITIES
PRODUCTS MANUFACTURED LOCALLY
TOP LOCAL EXECUTIVE TITLE
12
Parker Hannifin Corp. 6035 Parkland Blvd., Cleveland 44124 (216) 896-3000/www.parker.com
1,933
3,029
Parker Hannifin Corp. Cleveland
Akron, Avon, Elyria, Fairlawn, Kent, Mentor, Ravenna
Motion and control technologies
Thomas L. Williams chairman, CEO
13
Avery Dennison 8080 Norton Parkway, Mentor 44060 (440) 534-6000/www.averydennison.com
1,849
2,423
Avery Dennison Corp. Pasadena, Calif.
Painesville, Mentor, Concord, Painesville Township
Pressure-sensitive adhesive label, packaging and graphics materials; pressure-sensitive tapes; reflective sheeting
Darrell Hughes vice president, general manager, Materials Group North America
14
Rockwell Automation Inc. 1 Allen-Bradley Drive, Mayfield Heights 44124 (440) 646-5000/www.rockwellautomation.com
1,806
1,912
Rockwell Automation Inc. Milwaukee
Twinsburg
Automation products
Frank Kulaszewicz senior vice president, architecture and software
15
Eaton 1000 Eaton Blvd., Cleveland 44122 (440) 523-5000/www.eaton.com
1,771
2,676
Eaton Corp. Dublin, Ireland
Brooklyn, Parma, Aurora, Euclid, Berea
Aerospace, electrical, hydraulics
Alexander M. Cutler chairman, CEO, president
16
The J.M. Smucker Co. One Strawberry Lane, Orrville 44667 (330) 682-3000/jmsmucker.com
1,700
2,200
The J.M. Smucker Co. Orrville
Orrville
Fruit spreads, ice cream toppings, syrups and foodservice items
Mark T. Smucker president, CEO
17
Bridgestone Americas Inc. 10 E. Firestone Blvd., Akron 44317 (330) 379-7000/www.bridgestoneamericas.com
1,436
2,196
Bridgestone Americas Inc. Nashville, Tenn.
Akron
Racing tires
Steve Charles vice president, product development, Bridgestone Americas Tire Operations
Scott Fetzer Co. 28800 Clemens Road, Westlake 44145 (440) 892-3000/www.scottfetzer.com
1,358
1,609
18
Berkshire Hathaway Inc. Omaha, Neb.
Avon Lake, Bedford Heights, Chagrin Falls, Cleveland, Westlake, Wooster
Diversified manufacturer of products for the home, family and industry.
Bob McBride president, CEO
19
Shearer's Foods LLC 100 Lincoln Way, Massillon 44646 (330) 834-4030/www.shearers.com
1,225
1,225
Ontario Teachers' Pension Plan Ontario
Brewster, Massillon
Snack foods (potato chips, tortillas, extruded products i.e. cheese curls)
CJ Fraleigh CEO
20
Philips 595 Miner Road, Highland Heights 44143 (440) 483-3000/www.philips.com/healthcare
1,000
NA
Philips Andover, Mass.
Highland Heights
Medical imaging devices
Chad Collins head of site operations
21
RPM International Inc. 2628 Pearl Road, Medina 44258 (330) 273-5090/www.rpminc.com
976
1,158
RPM International Inc. Medina
Cleveland, Medina, Euclid, Twinsburg
Roofing materials, sealants, adhesives, concrete admixtures and coatings, fluorescent colorants
Frank C. Sullivan chairman, CEO
BWX Technologies Inc. 24703 Euclid Ave., Cleveland 44117-1714 (216) 912-3000/www.bwxt.com
950
950
BWX Technologies Inc. Lynchburg, Va.
Barberton, Euclid
22
Pressure vessels, steam generators, electromechanical components
Doug Paulson, general manager, BWXT Nuclear Operations Group Euclid; Jim Bittner, general manager, BWXT Nuclear Operations Group Barberton
23
PPG Industries Inc. One PPG Place, Pittsburgh 15272 (412) 434-3131/www.ppg.com
854
854
PPG Industries Inc. Pittsburgh
Cleveland, Strongsville
Automotive OEM coatings
Keith Schneider plant manager
RESEARCHED BY DEBORAH W. HILLYER Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Steris Corp. does not report local employee numbers. The Timken Co. did not respond to the survey. (1) Employee numbers as of March 31, 2016.
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Source Lunch
THE AKRON EDITION
ArtsNow executive director Nicole Mullet Striving to form a more cohesive arts community in Summit County
Twinsburg fares well after Chrysler Page A1
CLEVELAND BUSINESS
Page 34
MANUFACTURING
Still all in the family Mark Smucker is fifth generation to head the family-run food giant By DAN SHINGLER dshingler@crain.com @DanShingler
It would have been easier for Mark Smucker if he’d been born earlier. If he’d been only the second, third or fourth generation of his family to run the big and famous J.M. Smucker Co. business in Orrville, he’d have only had one business to run, maybe two. As it is, he’s the fifth of his line to ascend to the company’s CEO post and he comes at a time when the company has become a behemoth. He sits atop three separate lines of business, each with about $2 billion in annual sales. “I’ve got a lot of people helping me,” he said, referring not only to family members like his “cool uncle” Richard — who became executive chairman when Mark became CEO on May 1 — but to the 7,000 people that the company employs. It was not a foregone conclusion that another member of the family would take the helm. One might imagine that Wall Street might look on and say: “Really? Another Smucker? That’s the best choice?” and have a valid question. SEE SMUCKER, PAGE 31
ILLUSTRATION BY GIULIA BERNARDELLI
CycleWerks revs up for expansion FOCUS Page 13
DEVELOPMENT
Riddell could call audible, relocate to North Ridgeville By STAN BULLARD
Entire contents © 2016 by Crain Communications Inc.
sbullard@crain.com @CrainRltywriter
Six football fields. That’s the size of a building proposed in North Ridgeville that’s believed to be a new home for Riddell, a football helmet and equipment maker now in Elyria, in a $25 million project. North Ridgeville Mayor David Gillock is hopeful the project could reuse a 40-acre site at 38889 Center
Ridge Road that he characterized as an eyesore. The site, visible from the Ohio Turnpike, housed a long-vacant shopping center until it was razed for a retail development in 2009 that ultimately did not proceed. Although Gillock and the city council of the Lorain County suburb on the collar of Cuyahoga County are in talks for the project and readying documents to clear the way for it, the mayor said he signed a nondisclosure agreement with the prospect’s site consultant, real estate
brokerage Avison Young, and would not identify the company behind it. However, Elyria Mayor Holly Brinda said the project sounds similar to one she and her staff have discussed with Riddell to allow it to expand and remain at its current building at 669 Sugar Lane. She said her staff has offered incentives to encourage the company to renew the lease at its current building and expand on an adjoining 40-acre farm to keep the company’s 490-person payroll in the city. SEE RIDDELL, PAGE 37
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Going lean
Tobin Buckner
Welty puts its focus on lean principles P. A2
Shaping entrepreneurial scene in Akron. P. A3
Still playing
Main Course
Despite turmoil, E.J. Thomas stays busy. A6
Ohio Brewing opens in Highland Square. P. A8
Six years after Chrysler, Cornerstone puts Twinsburg on solid footing Developers, city officials happy that the 167-acre business park has attracted tenants quickly BY DAN SHINGLER dshingler@crain.com @DanShingler
Some towns dry up and wither when they lose a dominant employer like a Big Three automotive stamping or assembly plant. Not Twinsburg. You might think that the loss of its Chrysler stamping plant in 2010 would have given the town a crippling blow – like the way the loss of the steel or rubber industries knocked Youngstown and Akron for long loops in the 1970s and ’80s. After all, the plant is pretty much the reason that Twinsburg became a city. When the plant was constructed in 1956, it resulted in homes, utility lines, roads and businesses being built like never before. It employed more than 5,000 people at its peak in the 1960s and was still one of Chrysler’s most productive plants in the ’90s, after hundreds of millions of dollars of reinvestment by the company. When the Great Recession finally killed it and Chrysler announced in 2009 it would close, there were still more than 1,000 employees working in its more than 2 million square feet of space. In a town of fewer than 20,000, that’s usually a seismic event with long-lasting consequences. Yet six years after the last worker closed the gate, Twinsburg has replaced the plant and even the income tax revenue it generated. The city also just announced a new 250,000-square-foot construction project for a site that will house one or more new businesses. The 167-acre Cornerstone Business Park now sits where the Chrysler plant was once a fixture, and developers, business advocates and city officials have all been surprised and pleased with how quickly it’s gone up and attracted new tenants. “What the city has been able to do, from the time that Chrysler has closed to what it has redeveloped into now, is pretty amazing,” said Abby Fechter, executive director of the Twinsburg Chamber of Commerce and a lifelong city resident. “We’re really proud of that.” The site’s redevelopment largely has been led by Scannell Properties, an Indianapolis-based developer that purchased the plant with Independence’s DiGeronimo Cos. in
$17.9 million
$19.7 million
Twinsburg municipal income taxes collected in 2008, with the Chrylser plant still operational
Twinsburg municipal income taxes collected in 2015, without the Chrylser plant
Construction is ongoing at Twinsburg’s Cornerstone Business Park site, where a Chrysler stamping plant once stood. (Shane Wynn photos) 2011. Since then, Scannell has invested about $14 million cleaning up the site and another $75 million constructing three massive buildings that are already largely leased out. The state of Ohio provided about $5 million to clean up and prepare the site for development. It has gone as good, or better, than Scannell expected.
Buildings still going up “We got our first deal done within a year of them tearing down the plant,” said Scannell managing director Tim Elam. That was after Scannell built a 137,000-square-foot building on spec. It was quickly leased when the vending-machine service company Vistar took the space and began operations there in 2013. So Scannell built another building, this time a 300,000-square-foot structure for FedEx that was announced in 2014. With that filled, Scannell moved on and is construdting another, this time a 200,000-square-foot building that has since filled up with multiple tenants, including Bridgestone and Dunkin’ Donuts this year. Scannell will keep building, too, because of the demand, Elam said. It received approval May 10 from Twinsburg City Council for a seven-
The Cornerstone Business Park has three buildings up and one more building on the way. year, 50% property tax abatement on a fourth building – this one, a 250,000-square-foot building for which a tenant has yet to be named. That’s expected to be another $14 million investment. “Demand is good,” Elam said, noting that his company will probably build a half-million square feet of new buildings in Greater Cleveland this year – with Twinsburg representing its largest project so far here in 2016. Terry Coyne, vice chairman of Newmark Grubb Knight Frank’s Cleveland office, is the realtor charged with finding tenants for the
park and helped Scannell buy the property, for about $10 million. He said the site’s proximity to the interstates has helped it attract tenants, especially in the distribution sector. But the main attraction has been that the park offers some of the only opportunities for big, new buildings in the region. “We are a very old, mature region, where new buildings fetch a premium,” Coyne said. “And people just want new, modern buildings.” It’s all been a very good turn of events for the city, said Larry Finch, Twinsburg director of planning and community development.
“We are ecstatic that we were able to turn that property around,” he said. The city, to the surprise of many, has not even lost income tax revenue in the process. In 2008, when the plant was still going, the city collected $17.9 million in municipal income taxes. In 2015, without the plant, it collected $19.7 million, according to figures provided by Twinsburg finance director Karen Howe. But to be fair, the gains in income tax aren’t primarily from the new business park tenants – though they’ve helped. They’re mostly from other businesses that have moved or expanded in Twinsburg. Companies like Dublin-based Cardinal Health, which has expanded in Twinsburg with high-paying jobs, have probably done more to buoy tax receipts than the business park, Finch said. That’s largely because all of the business park tenants so far are distribution centers. They require a lot of space, but they don’t have that many jobs per square foot – less than the Chrysler plant did and certainly less than an office building would, Finch said. That presents the city and Scannell with their next challenge – attracting businesses to the park that SEE CORNERSTONE, PAGE A3
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For Welty, lean is the next building block BY JUDY STRINGER clbfreelancer@crain.com
Welty Building Co. president and CEO Don Taylor was delighted when Akron Children’s Hospital approached him in 2012 about the construction of a $240 million medical tower at its downtown Akron campus. The excitement was tempered as hospital officials explained they wanted to use a new process called integrated project delivery, which draws on many of the “lean” principles and practices of the manufacturing sector. “My heart sank,” Taylor said. The 70-year-old company had worked with Akron Children’s before and, Taylor believed, had a good shot at winning the work if it were conventional construction management. “So, I’m thinking we’re going to lose this project.” Welty didn’t. The 368,735-squarefoot Kay Jewelers Pavilion opened last May, two months earlier than planned and at $178 million, 26% under budget. In addition, the seven-story facility is 34,000 square feet smaller than it would have been had they followed a traditional building design practice, and operating margins are tracking at about 33% higher than similar facilities, Taylor said. “Not only did we bring it in under budget, we made the hospital more efficient in the way they delivered service,” he said. Today, Welty, with offices in Fairlawn and Cleveland, is making a big push to bring lean into most of its construction projects. According to Taylor, the company has completed eight smaller projects along with Akron Children’s — all following the same practices and “getting the same results.” In addition, four of its current projects involve integrated project delivery (IPD) contracts, which incentivize Welty and its trade partners to do more with less. Those include a $5 million project with an unnamed food manufacturer. “We wanted to demonstrate that this could be done on a $5 million project, and it did not have to be a mega quarter-million-dollar project,” Taylor said. And this summer the company will partner with FirstEnergy Corp. to pioneer the application of lean in electric transmission infrastructure. “Their CEO was aware of the success that we had had at Children’s Hospital,” Taylor said. “We are working with them to see if we can duplicate that kind of savings on the transmission and distribution work that they are doing.”
Early adopters The term “lean” was coined in the late 1980s to describe Toyota Motor Corp.’s approach to reducing waste, such as downtime, rework or lost inventory. Lean now refers more broadly to a set of tools designed to help companies identify “pain points that cause disruption, waste or inefficiency,” according to Samantha Kaplan, director of quality and continuous improvement at Cuyahoga Community College Corporate College. While manufacturers were the first to embrace it, lean has been filtering into other areas,
When planning the Kay Jewelers Pavilion at Akron Children’s Hospital, full-size cardboard mock-ups of floors were used to better understand how each space would be utilized. This led to the downsizing of some areas to make them more efficient for the hospital staff. (Contributed photo)
What it means to build lean Traditional construction: Project is planned from beginning to end. Lean construction: Project is planned from end to beginning. Outcomes: Fewer delays, easier to revisit/revise, wider team engagement. Traditional: Supervisors assign tasks and timing. Lean: Front-line employees and contractors aid in the workflow planning. Outcomes: Improved workflow, productivity and individual accountability. Dr. Brett Luxmore, an emergency room physician at Akron Children’s, (left) and Harry Ostapowicz, manager of security, look at plans for the pavilion. (Contributed photo) notably health care. “Notice how it is pushing down to their suppliers,” Kaplan said. Construction is ripe for lean’s waste-reduction tactics. According to Taylor, only 41% of a construction worker’s day adds value that a client would be willing to pay for. The rest of the day is some type of waste, such as time spent getting to the worksite or waiting for equipment or materials, or work that has to be redone either because it was done wrong the first time or instructions were miscommunicated. “You can’t get rid of 100% of the waste,” Taylor said. “But certainly we can do better than 59%.” Some fixes are fairly straightforward. Construction materials, for instance, are typically dumped on-site at the beginning of a project. As a result, inventory is moved around several times, which is inefficient and can create a safety hazard and increase the chances of damaged materials. Lean projects maintain a tar-
get of only touching materials once for final installation. Other waste-cutting changes are a bit more complicated. Traditionally, project managers and foremen begin their work when blueprints arrive at the site. Specialized subcontactors clock in when their trade skills are needed. The lean approach brings everyone together during the project planning, not only to coordinate logistics for things like just-in-time delivery, but also to test assumptions and spot potential problems. Despite the potential upside, industry players said the lean construction movement is still in its infancy. “People are wedded to traditional practices, just as they are in any industry,” explained Dan Heinemeier, executive director of the Lean Construction Institute, a trade group based in Arlington, Va. “What we are advocating as a whole is really cultural change, asking people to do projects very differently than they
Traditional: Equipment and materials are delivered at the beginning of the project. Lean: Equipment and materials are delivered when needed. Outcomes: Reduced damages, accidents and rework caused from moving materials. Traditional: Fabrication and assembly are done on-site. Lean: Fabrication and assembly are done off-site Outcome: Enhanced efficiency and safety. Traditional: The project is built directly from drawn plans. Lean: Models and flow charts help plan the project. Outcome: Reduced rework and downtime. have in the past. Cultural change is very difficult and painful.” Jason Jones, vice president and general manager for Turner Construction Co.’s Cleveland office, said: “Everybody talks about doing (lean), all the commercial general contrac-
tors, that is. But different entities are at different stages of their adoption.” Turner, like Welty, learned many of the lean strategies and tools while working with a hospital system, which, in Turner’s case, was Cleveland Clinic. The same is true for another early adopter, The Ruhlin Co., based in Sharon Center, although project manager Jim Pianalto declined to identify the health care client. Pianalto said many medical organizations are immersed in lean and, as such, are willing to engage contractors and partners during the design stage, when the practice has the greatest potential impact. But not all companies are. “That design-assist and bringing new partners on board is a new concept to them, and they don’t really want to do that yet, not thinking or understanding how they are going to get the best bang for their buck,” Pianalto said. Other projects, such as those involving public entities, Pianalto added, may not be structured in a way that allows the client to enter into IPD contracts. Still, Ruhlin integrates lean construction practices when and where it can. “Even if they don’t insist on that, we would bring the toolbox that we know would make the project better,” he said.
Power play To what extent lean techniques can improve the construction of power substations and transmission lines is the question Welty and FirstEnergy hope to begin to answer this summer. The Akron-based energy company is in the midst of a nationwide, $4.2 billion transmission system investment. The partners will pilot the use of lean on the upgrade of two substations – one in Barberton and one in Avon Lake – and a 69,000-volt line rebuild project in Cranberry Township, Pa. The initial cost projections for the three lean projects is a combined $25 million, according to FirstEnergy spokesman Mark Durbin. “We are helping educate Welty on the details around building transmission infrastructure, and they are helping work with us on the details of lean construction techniques and tools,” said Mark Mroczynski, FirstEnergy’s executive director for transmission programs. He expects practices such as justin-time delivery and prefabrication to be part of the ultimate solution. Although in the transmission realm, less time will be spent on studying the actual design and more time will be devoted to exploring the best materials and processes to use, Mroczynski said. “What kind of foundation we are going to use, whether we use traditional ground construction or helicopter construction – those types of things,” he said. “If you decide that up front, the design you use through your engineering and procurement phase will be effective.” Heinemeier expects similar lean construction pilots are taking place all over the country. Though he said, “We are really just scratching the surface. The total industry really is not as engaged in lean practices as we want to see them.”
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PLAN. 5 ways Akron entrepreneurs EXIT. are shaping their circumstances PLAY. ENTREPRENEURSHIP: Tobin Buckner
Akron entrepreneurial groups are involved in everything from a microbusiness center to several startup events I had the pleasure in April of moderating a question-and-answer reception featuring New York Times bestselling author, broadcaster, publisher, advocate, philanthropist and entrepreneur Tavis Smiley. Smiley, one of TIME magazine’s “World’s 100 Most Influential People,” asked during our time together, “Are we creatures of our circumstances, or creators of our circumstances?” The question begs us, as entrepreneurs, to take matters into our own hands — to create and develop what we see a need for (innovation and invention), and help substantiate and elevate thriving businesses in our city. Here are five ways I believe we are doing exactly that:
Microbusiness Center The Akron-Summit County Public Library on Main Street has embarked on a Microbusiness Center, supported with dollars from the John S. and James L. Knight Foundation. In this new space, entrepreneurs and business owners have access to business training, educational resources and support. The Microbusiness Center offers co-working space to contemplate, cultivate or expand a business or business idea. The library offers business courses and workshops, many in cooperation with other organizations that assist entrepreneurs. Adjacent to the new center is a sound studio, a video studio (complete with a green screen) and access to a 3-D printer and a banner maker.
NEXTOhio NEXTOhio is a one-night conference in Akron where startup enthusiasts come together to celebrate
and entrepreneurship. The center kicked off its grand opening in early March with Startup Week, which layered mentorship support with education and research. On April 15, the EXL Center held a hackathon that saw more than 60 high school and college students come together to form teams and come up with new ideas and products over a 24-hour period.
are not going to use it for warehousing and distribution. Some professional service firms or some modern manufacturers are what Finch and others would like to see move in next.
Looking for more workers The park has almost 80 acres of uncommitted land left, and Elam said he’s on the same page as city officials – whom he said have been very helpful in developing the site so far – with regards to getting tenants with more wage density. “We’ve really kind of held that northwest corner of the site for office or higher-end, finished-product use,” Elam said. Finch said future tax abatements for the site might be hard to come by
Call our Certified Exit Planning Advisor, Ray Lampner: 330.572.8014 Ray.Lampner@bcgcompany.com • www.BCGLegacyAdvisors.com
StartUp Bus
Tobin Buckner is JumpStart’s Akron entrepreneurial community manager and contributes a monthly blog about entrepreneurship in the region. what’s ahead in Ohio’s startup scene. This year’s event, held April 14, was the second year for the conference, which featured stories from successful founders, investors and those who have helped to shape the startup ecosystem in Ohio. The conference covered everything from what makes a great pitch, to how to access funding opportunities for your startup, to scaling your existing company so you can grow and hire more aggressively. There was also a pitch competition, which West Akron startup Komae won.
Startup week and hackathon The EXL Center at the University of Akron has created quite a buzz — both on campus and in the community — about experiential learning
CORNERSTONE CONTINUED FROM PAGE A1
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if they are for another distribution center. “We’re kind of holding out for an office or higher-density user for that site,” Finch said. Elam, however, said he might be able to meet that requirement more quickly than most expect. “On the south end of the site, we’ve been trying to attract more manufacturing companies. We’ve got one company fairly interested so far, but we’ll see. They haven’t signed anything,” Elam said. Coyne, like Elam, said he’s also in agreement with the city that future tenants need to be more along the lines of professional service firms, which need office space, or finishedgoods manufacturers. Toward that end, Coyne said he’s working to find office tenants for the front part of the park, at the corner of
On May 15, the Startup Bus departed from Akron for Boulder, Colo. The bus housed high-energy entrepreneurs with a passion for ideating, making and commercializing their products in an accelerated, collaborative environment. The trip served as a 72-hour startup boot camp, during which teams organized around riders’ ideas to innovate across markets and industries. Once in Boulder, they presented their ideas during Boulder Tech Week.
Startup Scaleup On June 28, JumpStart will hold its second annual Startup Scaleup event in Cleveland’s Gordon Square Arts District. Akron-based organizations will collaborate on a number of sessions. Those groups include the Akron-Summit County Public Library, with a “Best Practices in Product Design & Maker Space” networking event; the Bit Factory, with its “Building a Mobile App” workshop; and Launch League, whose Rick Stockburger will facilitate a session on the keys to building a compelling story using multimedia. So, as you can see, it appears the people of Akron are working harder than ever to create our own circumstances. state Route 82 and Chamberlin Road. That would give an office the most attractive location in the park, and an office building to dress up the park itself. As for a manufacturing tenant, Coyne said his firm is hoping that the old Chrysler plant’s rail access – which he contends is among the best and largest in the state – will help attract a company that might need it for raw materials and/or to ship finished goods. “We’ve got room to build probably a 500,000-square-foot building” for a manufacturer, Coyne said. If that’s an announcement that’s made anytime soon, Finch and others will be overjoyed — but most folks already think the project is a success. “I think they’ve done an excellent job with the timing,” Fechter said. “From the business community, I’ve never heard, ‘Oh, I wish they would have moved faster.’ I think from where they started to where we are now, it’s been an excellent transition.”
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Honeymoon is over, but ‘Mr. Akron’ still finds Knight Foundation role exciting Kyle Kutuchief thinks the time is ripe for new solutions to the city’s old problems BY JUDY STRINGER
younger crowd, Knight and Leadership Akron are in the third year of the Intern Edge program. Each year, the six-week program introduces 60 college interns to Akron leaders and the city’s civic and cultural institutions during the interns’ summer stints at local companies. Knight funded the design and first year of the program, which is currently selfsustaining. “Surprisingly in the first two sessions over the last two summers, about half of the group has not been from the Akron area. They are coming in from Pittsburgh, Toledo, Columbus, Cincinnati, Cleveland to have internships at GOJO, Goodyear, Smuckers – these prestigious companies that we forget are in our own backyard,” Kutuchief said. “We have a very short window of time to make the case to those interns that Akron is amazing. “You have to make that case intentionally. They are not going to find it on their own.”
clbfreelancer@crain.com
Earlier this month, Kyle Kutuchief boarded a plane for a honeymoon trip to Europe. That adventure began just as Kutuchief wrapped up another sort of honeymoon: his first year as the Akron program director for the John S. and James L. Knight Foundation. Kutuchief – who many jokingly refer to as “Mr. Akron” – admits the past 12 months have not gone without challenges, mostly involving time management. Still, the bloom is clearly not off the rose for the Bath native. “I feel lucky to be in my position, especially at this particular point in Akron’s history,” he said, explaining that mayor Dan Horrigan’s new administration and its willingness to collaborate is a key indicator that the time is ripe for “finding new solutions to some of the old problems in Akron.” Kutuchief’s job is to manage Knight’s grants in the Akron market with an emphasis on communitybuilding initiatives. Prior to working for the foundation, he was director of development at the Austen BioInnovation Institute and president of Torchbearers, a young professionals’ organization that works to attract talent to Akron and nurture future community leaders. It was through Torchbearers that Kutuchief met Josh McManus, his mentor and Knight Foundation predecessor. When McManus left Akron for an opportunity in Detroit, the $2.4 billion Miami-based foundation handed Kutuchief the keys to its Akron office. “I wish I could say I had a plan to get to this job, but I had no plan. I made my own luck, I guess,” Kutuchief said. Craig Horbus, an Akron attorney who succeeded Kutuchief as Torchbearers president, would argue that Knight is the lucky one. Torchbearers grew into “a collaborative thought leader in Akron” under Kutuchief’s direction, according to Horbus, who was vice president at the time. “Kyle was always the big picture guy – he saw the forest,” he said. “I usually counted the trees.”
Community-building fronts
Making Akron stick The big picture for Kutuchief these days is helping to transform Akron into the kind of city where talented people – especially collegeeducated millennials – want to lay down roots. Unlike previous generations that typically chose hometowns based on job locations, today’s young professionals tend to pick the place first, he said, then find a job. His aim is to make Akron that place. As such, Kutuchief is at the table as Horrigan and the nonprofit Downtown Akron Partnership (DAP) begin the arduous planning process to make downtown Akron a more livable city. The foundation
Kyle Kutuchief has been the Akron program director for the Knight Foundation for a year. (Shane Wynn) also backs new concepts designed to increase the city’s economic vitality, such as DAP’s “pop-up retail” leases through which promising entrepreneurs can fill vacant storefronts at reduced rents. Just as important, Kutuchief said, are new and ongoing initiatives to boost Akron’s “stickiness” factor. Knight recently awarded Leadership Akron a $100,000 grant to plan and implement the Civic Solutions Lab, which was modeled after a Louisville, Ky., program. A small
“When people serve their community, they fall in love with it. And they want to stay.” — Kyle Kutuchief group of midcareer professionals will spend a year studying a pressing social challenge, such as early childhood education, and deliver policy recommendations or potential solu-
tions to address the issue. “When people serve their community, they fall in love with it,” Kutuchief said. “And they want to stay.” Hoping to win the hearts of a
Kutuchief is also deeply engaged in Akron’s Reimagining the Civic Commons initiative, which is exploring ways to increase the use of common spaces along the Ohio & Erie Canal Towpath Trail, particularly the nondescript, three-mile stretch that goes through downtown. “He is helping Akron to understand and own its public spaces in a new way,” said Christine Amer Mayer, president of GAR Foundation. “It will be a game-changer for Akron’s sense of place.” Meanwhile, Kutuchief has been quietly working behind the scenes on a number of other communitybuilding fronts, not the least of which is bringing two more Better Block projects to Greater Akron following a pilot in the city’s ethnically rich North Hill community last May. This summer, organizers will target Cuyahoga Falls’ Front Street and Akron’s Middlebury neighborhood, which sits at the intersection of East Market and East Exchange streets. Kutuchief also stays mindful of how Knight can help beyond grants, whether that means championing “cross-pollination” among Akronarea organization, such as the Young Black Professionals Coalition and the Women’s Network of Northeast Ohio, or sponsoring a 25-person bus trip to Detroit’s Eastern Market, a massive farmers market that accepts more food stamps than any other site in the U.S. The latter, Kutuchief hopes, will serve as a model of how Akron might address its own food deserts. “He is really wonderful at just kind of toiling in the background and making stuff happen, and you would not necessarily know that Kyle Kutuchief had his fingers all over it,” said Jason Segedy, director of planning and urban development for the city of Akron. “To him, it’s not about credit. It’s about the mission to make Akron a better place.”
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LeBron James Family Foundation finds good partner with Bridgestone Invitational BY DAN SHINGLER dshingler@crain.com @DanShingler
LeBron James scores again. What else is new, right? Except that this time James has scored a victory for Akron-area children and young adults by winning support for his LeBron James Family Foundation from the World Golf Championships-Bridgestone Invitational, Akron’s premier sporting event and a big annual tournament for the PGA’s best players. The Bridgestone Invitational has chosen the LJFF as its philanthropic partner, which means the foundation will get $50,000 from the tournament this year – money it’s already received. “The World Golf ChampionshipsBridgestone Invitational is honored to support the LeBron James Family Foundation,” said Don Padgett, executive director of the Bridgestone Invitational. “Bridgestone is committed to helping make the communities where they work better places to live. We’re proud to align the Bridgestone Invitational with an organization with the same values to make a lasting impact in Northeast Ohio.” Each year, the tournament raises more than a million dollars for charity, Padgett said, amounting to more than $25 million for regional charities since the tournament began in its current form in 1999.
As a philanthropic partner of the Bridgetone Invitational, the LeBron James Family Foundation will receive funds to support its programs for Akron-area students. (Getty Images) More importantly for the LJFF is that the gift probably won’t be a one-time thing. Padgett said the partnership is likely to continue in the years ahead. “We went into it with them saying that we’d like to have a partner for a period of time and not just have it to be a one-off, and they agreed,” Padgett said. “Things are going well, and I’d say they’re a good partner we hope to have in future years.”
Experience outings The LJFF seems to agree. “What this partnership with Bridgestone allows us to do is offer
our kids opportunities outside of the classroom that broaden their horizons and expose them to experiences they may never otherwise have access to,” said Michele Campbell, LJFF executive director, in an email with Crain’s. “We want to help these kids find their passions in life so they are thinking beyond grade school. We want them thinking about college degrees and about their future careers, so experiences like this help them explore all of the opportunities that are out there.” To do that, the LJFF will use its newfound funding to help pay for things like taking area schoolchild-
ren to participate in WKYC Channel 3’s “anchor for a day” program. Other events might be a performance by the Akron Symphony Orchestra or a visit to Little Tikes Co. in Hudson to learn about engineering and to make a toy that students design. “The proceeds from Bridgestone will support our monthly experience outings that give each of our classes of students educational experiences in different fields ... Other upcoming opportunities include being doctors for a day at the Cleveland Clinic and going behind the scenes at The Q with the Cleveland Cavaliers. These are all part of our mission to expose these kids to the world of possibilities that are out there when it comes to their future careers,” Campbell said. That’s all perfectly aligned with Bridgestone Invitational’s intent as well. “We pick out charities we think are great causes and that help to tell our story,” Padgett said. “We feel like they’re doing great work with students right in our backyard. And LeBron and the Bridgestone Invitational have internationally known identities, so we just thought it would make sense to partner with them.”
An introduction to golf And the Bridgestone Invitational, and golf in general, might get some new fans – or even future players for the Akron tournament. Golf needs new, young players, especially from inner-city communities where kids might not normal-
ly be exposed to the game. Campbell said the LJFF would love to introduce more kids to the sport. “This partnership is a perfect fit for our kids because it is exposing them to the game of golf, which is something many of them have never experienced,” she said. “They will be able to attend the tournament this summer and get to go behind the scenes of the event, and even hit some shots at the Bridgestone Green Monster Challenge, so it will expose them to golf in a really unique way and give them a pretty cool perspective on the game.” And if you’re wondering whether your own game can keep up with those of the new kids, you’ll have a chance to find out. The mini Green Monster that the kids will play on – a 40-yard replica of the 667-yard 16th hole that helped to make the tournament’s Firestone Country Club course famous – will be available during the tournament for fans to test their skill. As for James, there’s no word yet on whether he’ll attend the tournament, which runs June 30 through July 3. By then, Padgett, Campbell and just about everyone else in Northeast Ohio hope that James is celebrating an NBA championship with the Cavaliers. For now, James is focused on basketball and helping area kids, though – which is just par for the course for the man many think is basketball’s greatest player and maybe its best ambassador.
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AKRON
Shows still go on at E.J. Thomas, thanks to partnerships BY MARTHA NEFF clbfreelancer@crain.com
Despite reports of its untimely death at the age of 43 late last summer, Edwin J. Thomas Performing Arts Hall in Akron is alive and, for the most part, well. Ten months after a major reshuffling of staff and a firestorm of protest that the University of Akron would shutter its gleaming concert hall as part of large budget cuts, E.J. Thomas remains open and hosts Broadway shows, symphony concerts and even YouTube darlings Dan and Phil. “The perception is that it totally shut down, but the reality is 85% to 90% of the events that were scheduled to happen there did happen and we have even added shows,” said Howard Parr, executive director at the Akron Civic Theatre. The Civic is contracted with the university to manage E.J.’s box office and coordinate marketing efforts, among other duties. But many on the UA campus see issues at E.J. Thomas Hall — confusion about buying tickets, long lines before shows and the resulting late starts, messy aisles and seats — as a small part of larger leadership problems and faculty discontent at the university. “I’ve seen what’s happened to [E.J.], and it’s tragic,” said Guy Bordo, a UA professor of music and the conductor of the university’s symphony orchestra, whose members practice and perform at the facility. “I love my students, and it’s been a tough year.”
‘Front door to the university’ There’s no denying E.J.’s place in the heart of Greater Akron arts supporters. But it is no stranger to attendance decline and struggles. “E.J. is unique. It’s very important to the community. ... Not a lot of universities support that kind of theater,” said Ann Usher, the outgoing head of the university’s music department. Usher is staying at the university but will only teach. “I think it’s limping by at this moment,” she said. “It should be able to be sustained. That is the front door to the university, and it’s important.” The facility’s landmark status in downtown Akron has never been in doubt; its future, though, has been fuzzy since last summer, when UA made budget cutbacks to deal with a $60 million deficit. Among the many targeted cuts were the university’s baseball team and 215 nonfaculty positions, including 15 at E.J. Thomas. In a series of badly communicated moves, university officials laid off all E.J. staffers, including executive director Dan Dahl. It also cut all nonacademic programming at E.J., except for rentals. The university later rehired four of those employees : in the areas of stage management and front-of-the-house
E.J. Thomas, by the numbers Built: 1973 Cost: $13.7 million Capacity: 3,000 Square footage: 121,000 Annual attendance: 400,000 Annual operating cost: $3.4 million, with about $2.1 million coming from the university; about $200,000 from donations, including an endowment distribution; and about $1.1 million from box office and rental income management (tickets, etc.) and a house manager (who had been concessions manager), plus part-time students to help during shows. But the public relations damage had been done; many in the media and the public thought that the venerable E.J. Thomas was closing. For 2016, “Our goal was to stabilize E.J. Thomas and overcome the perception that it was closed,” a perception fed by the media, according to Nathan Mortimer, UA’s chief financial officer and vice president for finance and administration. Mortimer said E.J. gets $3.4 million a year in funding from three sources: the university, inside and outside sales, and donations. The university’s contribution has dwindled, however, because of other funding needs, he said.
Reaching out for help After the “painful decision” to lay off the E.J. staff, Mortimer said, the university decided it needed a different model to stabilize the venue. But that decision put the 2015-16 Broadway series in limbo when the Theater League, which produced the series, pulled out. The university then struck a oneyear deal with the Civic, which the university is now evaluating to see how to proceed, and a two-year agreement with Playhouse Square to present Broadway shows at E.J. The 2016-2017 season was announced on May 11 and includes “Cinderella,” “Once,” “Rent” and “Chicago.” The collaborations have worked with two major exceptions: There have been kinks in ticketing, and those involved are still working to overcome the perception that E.J. closed. “The reality is we need more people. [The shows] should be full,” said Playhouse Square executive producer Gina Vernaci. Only about 1,200 people are attending the shows; Vernaci said 2,000 is the goal. “From a business model, we wanted to see the shows go on,” said Vernaci. “Our challenge was how to keep the current season going and plan for the next season. … It’s a work in progress. Next season, the shows have a wider appeal and are absolutely more expensive.” Shows for 2015-16 have gone on
The University of Akron’s E.J. Thomas Performing Arts Hall saw much of its staff cut last year. (Shane Wynn) as normal at E.J. for the Akron Symphony Orchestra and Tuesday Musical Association, whose leaders said the E.J. staff is doing a great job keeping things running smoothly, despite the circumstances. “Production and facility-wise, our experience has been on par with previous seasons,” said Paul Jarrett, executive director of the Akron Symphony. The downside, though, is that getting tickets to the concerts on a walkup basis is confusing; the E.J. box office is closed when there isn’t a performance, so patrons must get tickets across the street from the Civic on the first floor of the Ohio Building. This makes the subscriber base for both groups — and for the Broadway series — extremely important. Mortimer said the partnership with both the Civic and Playhouse
Square exceeded the administration’s hopes. “We really flipped E.J. Thomas in the last 10 months for the better,” he said. Parr expressed similar thoughts. “I think the collaboration between the Civic and E.J. has been good for the community,” he said. “It’s not about these two buildings; it’s about making the community stronger.”
Same problems, different era Even when the hall opened in 1973, some predicted that maintaining such a large structure on a college campus would be costly. A New York Times critic predicted that the “spectacularly beautiful” hall would “be no stranger to the economic problems that haunt the performing arts.” And as E.J. ages, it needs repairs.
With help from the state, the university is repairing its roof and the roof of the parking deck. Other areas need updates that aren’t likely to happen. But Bordo and others are concerned about E.J. in the short-term, and the university in the long-term. “We are seeing less students coming, and we’re concerned, very concerned,” said Bordo, who has been a vocal critic of Scarborough, the school’s administration and its board of trustees. “They don’t know how to run a university, and they don’t know how to run a concert hall.” But that’s not what everyone thinks about E.J. Mortimer said the university is working to program the facility more and “demonstrate that there’s a viable market in the Greater Akron community.”
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Countryside Initiative helps small farms flourish in Cuyahoga Valley National Park BY JENNIFER CONN clbfreelancer@crain.com
A summer morning at one of Countryside Conservancy’s farmers markets can make you glad to be an Ohioan. Strolling through rows of vendors in the open air, you can participate in cooking programs and enjoy food competitions while buying every item in your family’s meal plan knowing it came from local growers. “The farmers markets are all about the local food system,” said Brian Reitz, Countryside Conservancy development director. “You’re supporting that community-based agriculture system.” So far, so good. The first Countryside farmers market launched in 2004. Countryside now has three active markets, and revenues for the past two years from them collectively have exceeded $1 million. The Howe Meadow and Highland Square markets run May through October, and Old Trail School’s indoor market runs November through April. All offer fresh, sustainably produced fruits, vegetables, jams, bread, honey, cheeses and other foods that give farm-totable food enthusiasts a reason to feast. Although farmers markets are popping up around the country as the farm-to-table movement gains ground, Countryside Conservancy’s markets are truly the fruit of a unique backstory. They represent the sweat equity of several tiny local farms working to be profitable in conjunction with the National Park Service and the Cuyahoga Valley National Park’s efforts to preserve the valley’s historic homesteads. The Countryside Conservancy is the nonprofit established in 1999 to oversee this unique partnership, which doesn’t exist in any other national park in the U.S.
Real small businesses Countryside Initiative program’s farms are, in essence, small businesses and are required by the park service to use sustainable practices, whether they farm berries, goats, pumpkins or chickens. Farming is no easy trade, and like any other small business, many of them fail. “The nice thing about this program is it’s a safety net,” said Tracy Emrick, Countryside’s core partnership manager. Among her duties, Emrick provides agricultural guidance and resources to help the farmers and the park. “They’re not penalized if they don’t have a good year,” she said. “They have amazing access to direct market, and they get free marketing from Countryside and the park service.” Even so, the park service owns the properties, but the farmers own their businesses and, with support from Countryside, it’s firmly on their shoulders to make them successful. It seems to be working. Like the farmers markets, the program’s farms in 2015 also reached a mile-
Nine farms are currently part of the Countryside Initiative in Cuyahoga Valley National Park. They raise everything from pumpkins and berries, to goats and pigs. (Contributed photo) stone when their combined revenue exceeded $1 million. Most farms sell their goods onsite, as well as at the farmers markets. But make no mistake: These are working farms that enjoy good years and bad, and they must face destructive insects, invasive weeds and unpredictable weather. “One of the purposes of the program is that they are commercial farms; they’re not hobby farmers,” Emrick said. “If they’re financially viable, then they’ll be able to maintain that property and that’s the purpose of the program — to protect that resource for the park service.”
“It’s just like any business. It’s about management, planning, recordkeeping and business marketing. It’s typical business 101.” — Tracy Emrick, Countryside’s core partnership manager
Currently, nine initiative farms are in full swing, with two new leases soon to be announced. Each farm takes on a 60-year lease and pays leasing fees based on fair-market value of the property, minus a percentage for living in a national park and complying with the many regulations that come along with it. Initiative farms also pay business fees based on a percentage of their gross revenue. The fees graduate from 1% to 10% over 10 years to allow for startup costs and time to produce marketable goods. All the fees go to the National Park Service for maintenance of the properties. A separate,
The Countryside Conservancy runs three farmers markets where initiative farms, among others, sell goods.
federal fund is in place to maintain the properties’ structural needs, such as roofing, cladding and foundations, as part of the preservation plan. Spice Farms, one of the initiative farms, raises laying hens and pigs, and farms a variety of unique and heirloom vegetables. It operates the farm and the Spice Kitchen + Bar restaurant in Cleveland’s Gordon Square Arts District. It also developed the Spice Acres Field Kitchen, an educational program for schools that offers tours and workshops focusing on connecting soil health to personal wellness. Although the farm is run as a business, Spice Acres’ Ben Bebenroth views the mission as much more. “By deepening the connections to our food system and soil, the Spice companies are not just setting out to make a few dollars off of the land in the CVNP,” he said. “We’re changing the way people think about food, family and the environment that creates our community.” But Spice Acres’ start was challenging. “Our first year of operation was very scattered and lacked accountability and measurable deliverables,” Bebenroth said. “We decided to rebuild the team from the ground up and invest even further into the operating budget and labor allotment, making the farm manager position year-round.” It was a targeted approach that supported a solid schedule for planting and harvesting. To date, Spice Acres has earned more than $100,000 to fund coordination of the farm with the restaurant and a catering company. “This has required great analysis of our purchasing, and timing of seeding and deliveries, to guarantee the freshest and best quality products getting into the hands of our chefs at the optimum times,” he said.
Tools to succeed “It’s just like any business,” said Emrick, who teaches several classes through Countryside’s educational arm, Countryside U. “It’s about management, planning, recordkeeping and business marketing. It’s typical business 101.” Countryside U’s educational programs are for anyone interested in farming as a business. Partnering with entities such as the Summit County and Ohio State University farm bureaus, and Kent State University’s Geauga viticulture program for winemakers, Countryside U classes cover everything from “exploring the small farm dream” to “starting with sheep.” Countryside Conservancy also hosts local pop-up markets, working with individuals or nonprofits to launch neighborhood markets that can in time become self-sustaining. With the help of such local entities as Let’s Grow Akron, Countryside’s goal is to have small markets up and running every year. “We provide support and training for three years, and help recruit the farm vendors,” Reitz said. “It’s too early to tell whether the programs will work, but it’s an attempt to work toward growing the local food-access system.”
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AKRON THE MAIN COURSE: Jennifer Conn
Ohio Brewing Co. finds spot that fits in Highland Square Akron craft beer enthusiasts can thank Ohio Brewing Co. owner Chris Verich not only for opening the new brewpub in Highland Square, but also for the amendment that raised the allowable alcohol volume in Ohio beer from 6% to 8% in 2002. A former Ohio state representative turned brewer and restaurant owner, Verich — along with partners Michael Verich, his brother, and Dave Miller — opened the Ohio Brewing brewpub at 804 W. Market St. in stages since March. The new patio is set to open this week, adding 15 outdoor seats to the existing 90seat capacity. Verich and partners chose Highland Square for more than its visibility — Ohio Brewing straddles two sites, with its bar side in the former counter area of Dodie’s Highland Café, a square mainstay for decades, and its dining room where Two Amigos used to be. Ohio Brewing’s partners wanted to bring a classy but accessible pub and restaurant to the square, and envisioned a warm interior where people could relax. “The community needs something like this,” said Chris Verich, who has lived in the square for eight years. “Highland Square is very artistic, and very diverse and funky. It’s just a fun neighborhood to live in.” Although Ohio Brewing crafts more than two dozen beers, Verich wanted to offer the full craft-beer experience to the neighborhood, so he rotates in “guest beers,” especially Ohio beers. “I’m not the only one who makes beer, and I can’t make every style,” he sai But Ohio Brewing can make a lot. Master brewer Matt Coffey operates a seven-barrel system with fermentation capacity for 44 barrels. The brewery can finish 750 barrels a year, with each barrel equaling about two kegs. It bottles its beer on-site. Many of the beers have won national and international medals, including Kolsch-style Verich Gold, the Irish red Cardinal Ale, O-Hoppy Ale IPA and Steel Valley Stout, a nod to Ohio Brewing’s first brewery in Niles. In Highland Square, Ohio Brewing’s space features the sky-high, tin ceilings of many historic Akron structures, wide windows that open (literally) onto the street and wide-screen TVs. The full-service bar offers patrons a glimpse of the brewing equipment, while pendant accent lights made from beer bottles hang in the windows and over the bar. Several framed beer coasters hang on the walls, collected during Verich’s travels to breweries around the world.
Ohio Brewing Co. offers up its own brews but also “guest beers,” especially those from around Ohio. (Shane Wynn photos)
Ohio Brewing Co. at a glance
Ohio Brewing’s bar area occupies the former space of Dodie’s Highland Cafe.
A career change With a master’s degree in political science and international relations from Kent State University, Verich had his eye on a very different career path. He didn’t know anything about beer until he took a trip to Europe as a college student. There, he first tasted German beer and found he loved it. “It was a mystical experience,” he said. Throughout the late 1980s and early 1990s, Verich studied various styles of beer and visited micro-
The brewpub fills up two storefronts on Highland Square. breweries. He bought a home-brewing kit, created his own recipes and brewed beers that won awards. He worked at breweries in Florida and
New York. It snowballed from there. The first Ohio Brewing opened in Niles in 1997. That site eventually closed and was followed by the ill-
Flights of beer, as well as flights of whiskey, are available. timed 2008 opening of Ohio Brewing in partnership with Damon’s Grille on Main Street, which struggled in the recession. Since then, Ohio Brewing has scouted new sites while con-
Where: 804 W. Market St., Akron. Hours: 11:30 a.m.-midnight Monday through Wednesday; 11:30 a.m.-2:30 a.m. Thursday through Saturday; 1 p.m.-midnight Sunday. Live music on Thursday nights. The vibe: An intimate but accessible brewpub with a warm interior. Seating for 90, with a 15seat outdoor patio looking onto Highland Square. Specialty: More than two dozen Ohio Brewing beers, with “guest beers” from around Ohio. Menu: A wide variety of scratchmade dishes that reflect on the area’s diverse population. Lots of vegetarian offerings, too. tinuing to brew and distribute beer. Now with the Highland Square brewpub open, Ohio Brewing offers a menu developed by the partners and head chef, Brendan Gilpatric, with the square’s diverse population in mind. Almost everything is made from scratch. Dishes include Cajun grilled salmon, a Cardinal Ale-infused bratwurst sandwich and smoked pork chops. Also on offer are vegetarian dishes, such as handmade veggie burgers and a quinoa hummus wrap. One interesting twist is the pizza, which is made using the spent grain from the brew process. “It’s a crunchy crust with a richly textured flavor from the grains,” Verich said. For those who prefer liquor, Ohio Brewing has a full bar and will soon offer single-malt scotches, whiskeys and bourbons in flights.