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FOCUS | CYBER SECURITY: Keeping data protected amid the COVID-19 threat. PAGE 10

Akron has retained some of its rubber legacy. PAGE 19

CRAINSCLEVELAND.COM I JULY 27, 2020

HEALTH CARE

‘Common enemy’ spurs innovation, collaboration Pandemic is bringing competitors together BY LYDIA COUTRÉ

Street at the southern end of the Tremont Historic District, construction workers are putting the finishing touches on an unusual conversion project.

Innovators and researchers across Northeast Ohio have come together to rapidly find and implement solutions to help protect patients, caregivers and the community during the global pandemic. Developing a new vaccine or treatment for COVID-19 will take time as new medications wind their way down a regulatory path to be tested and proven safe and effective. Scientists around the globe are racing to find these answers. Meanwhile, many others are working toward fixes that can be implemented more rapidly to mitigate and track spread of the virus, protect caregivers and address shortages of personal protective equipment (PPE). “Where I think innovation has been able to be so thoughtful and, quote unquote, rapid-to-market in response to the pandemic is in looking at ways to better protect patients and protect health care practitioners and capitalizing on opportunities that already existed in the marketplace, but looking at creative solutions to deal with raw material shortages, to deal with a lack of access for traditional manufacturing practices,” said Dr. Brian Rothstein, assistant professor of pediatric neurosurgery and clinical ventures fellow for University Hospitals’ innovation arm, UH Ventures.

See SAN SOFIA on Page 17

See PANDEMIC on Page 18

REAL ESTATE

A HEAVENLY REIMAGINING

The San Sofia redevelopment project involved minimal changes to the outside of the church, beyond brick repairs and storm windows over the original glass. | MICHELLE JARBOE/CRAIN’S

Tremont apartment project revives historic church — and keeps its congregation in place BY MICHELLE JARBOE

The pews are gone. So are the two-story arches that framed the nave of Zion United Church of Christ in Tremont for more than 130 years. But the central aisle of the church, a Gothic Revival structure in Cleveland’s Tremont neighborhood, remains. Soon, renters, rather than congregants, will traverse the high-ceilinged space to reach their front doors. They’ll walk beneath ornate chandeliers and climb stairs to a catwalk where the walls are lined with restored panels of 19th century stained glass.

Stained-glass restoration expert John Abbott created these panels to replace three windows that had been stolen from the front of the Zion schoolhouse.

Almost four years after developer Dan Siegel bought the church and neighboring school, on West 14th

ENERGY

Ohio’s nuclear plants face new uncertainty as HB 6 comes under attack NEWSPAPER

VOL. 41, NO. 27 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

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BY DAN SHINGLER

So what happens to Ohio and its nuclear plants now? It’s becoming apparent that 2019’s House Bill 6, the now-tainted law that provides about $150 million a year in subsidies primarily to Ohio’s two nuclear plants, likely will be repealed. But will it be replaced? And if so, will

the plants, which Ohioans were told would close without the subsidies, be saved? Those are questions now causing angst from Columbus, where Householder state lawmakers are grappling with the issue, to the To-

ledo area and Lake County, where the affected Davis-Besse and Perry nuclear plants are respectively located. The companies involved, FirstEnergy Corp. of Akron and its former subsidiary, Energy Harbor, which owns the plants, have yet to say how they might address the matter and have declined interview requests. See NUCLEAR on Page 16

7/24/2020 3:28:37 PM

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Cleveland company helps colleges connect with students virtually Wisr’s revenue doubled in March and has continue to grow since BY RACHEL ABBEY MCCAFFERTY

Higher education software company Wisr has been adding to its product lineup in recent years, expanding beyond its base as a tool for engaging students with alumni. That was a particularly good choice this year, as the COVID-19 pandemic forced colleges and universities to look for virtual student supports to replace their in-person events. “We doubled as a company in March,” said Kate Volzer, co-founder and CEO of Cleveland-based Wisr. Wisr got its start in 2016. At that time, the software company was focused on creating connections between current students of a school and alumni, who could help them transition to the post-graduation world of work. This was typically aimed at upperclassmen who were a year or two from graduation. The next step was to look for ways to connect students with support systems outside of a school’s alumni base, allowing schools to bring other students or community members into that support role in the software. Then, one of its customers expressed an interest in creating a digital space for its incoming class and connecting that cohort to its upperclassmen. Volzer said last year that school saw a dramatic decrease in its “summer melt,” the number of students who enroll but don’t show up on campus in the fall. A new product was born. And it was a timely one, even before the COVID-19 pandemic. Last fall, the National Association for College Admission Counseling changed its code of ethics, making it easier for schools to entice students away from their school of choice. Previously, schools in the association had agreed to stop recruiting students once they had committed to an institution. “Most schools had a longer-term digital engagement strategy that they wanted to deploy, but they just kind of kept kicking the can on it,” Volzer said. Clients for this new enrollment product were starting to pick up at the end of February, in part because of the code of ethics change, Volzer said. Then came the pandemic and the stay-at-home orders. Colleges and universities had to cancel the in-person programs and campus tours they planned to use to keep prospective students engaged. Enter Wisr’s new product. Revenue doubled in March, Volzer said, though she declined to share specifics. And it has continued to grow in the months since. The number of colleges the company is working with has about doubled as well. The company has also grown its employee base, from six in February to 18 today. And Volzer is thinking about hiring more. Ultimately, Volzer doesn’t see the company’s growth slowing down anytime soon. Even without the pandemic, Wisr’s software product is less expensive than many in-person events aimed at keeping prospective students engaged, she said, but it has a similar rate of success. Volzer thinks that for many the pandemic just ac-

olest expe

Cleveland-based Wisr helps students connect with support systems that are outside of a school’s alumni base. It also gives incoming students a chance to interact with upperclassmen. | CONTRIBUTED

celerated schools’ existing plans for digital recruitment. The platform allows colleges and universities to share practical information, like how to register for classes. But it also offers the chance for students to build communities. Volzer That peer-to-peer interaction on the platform is critical, said Dawn Medley, associate vice president for enrollment management at Wayne State University in Detroit. That includes mentoring that can happen between existing students and incoming students, as well as interest groups that incoming students can form on their own. “It’s just like what would happen among student organizations, typically in person, but it will allow them to build those connections virtually with students,” Medley said. “And that has become so much more important now with COVID.” Wayne State had begun talking to Wisr about its admissions software back in January or February, Medley said, as the university was interested in better engaging its incoming class to improve the number who persisted to campus. The software seemed like a good way for students to engage with the university “on their schedule,” she said. Medley said that since Wisr is a younger company, it has been able to be “nimble” and adjust to Wayne State’s needs. For example, the university took its orientation program and made it into modules that students could take through Wisr. Instead of making students take orienta-

tion before registering for courses, the university is letting students register as soon as they want and change their schedule as they learn more in the modules. Classes are changing between in-person and online, synchronous and asynchronous, and Wisr has allowed Wayne State to stay engaged with students through those changes, she said. Wayne State has expanded its use of Wisr in recent months, starting with the admissions piece and adding components for orientation and alumni engagement. Volzer said more colleges and universities are starting to use the full life cycle of Wisr products, from recruitment to alumni relations. At this point of the summer, Wayne State is up by more than 5% in terms of registered students year over year, Medley said. That’s significant for a couple of reasons. The university has seen its freshmen classes grow in recent years. So not only is it seeing enrollment growth during a pandemic, when in-person events are off the table, it’s starting at a higher baseline than in the past. “And the only thing that we have added to the mix — and we have lots of other strategies and lots of other things that we do — is our communication cycle is now completely virtual and online and through text messaging and chat,” Medley said. “And Wisr’s really the only addition that we’ve made.” Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

2 | CRAIN’S CLEVELAND BUSINESS | JULY 27, 2020

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MEDIA

Local news ecosystem takes root in Northeast Ohio

MILESTONES

SPONSORED CONTENT

Young organizations are attempting to bring crucial information to overlooked communities BY JAY MILLER

North Carolina consultants that was aimed at civic leaders. One of its key They’re being called “local news conclusions: “Whatever your primaecosystems,” and one is building in ry issue of concern, your second issue should be media.” It argued that Northeast Ohio. It’s what philanthropies, civic ac- local news engages citizens, imtivists and entrepreneurial journal- proves public decision-making and ists across the country see as the makes political and civic leaders acsprouting of mostly young and fragile countable to their communities. It organizations that are trying to bring also makes contributions to public news and information, usually on- health and political participation. When participants in six focus line, to overlooked neighborhoods and communities. Many share con- groups were asked to talk about issues tent to spread their stories further, they were facing and how they stayed with a focus on bolstering, if not di- informed, they were critical of the exrectly competing, with the work of isting media landscape. Said one parstruggling traditional print and ticipant: “I can find out where the trash is, or (about) an event over here. broadcast media. Northeast Ohio has already But what’s really, really happening spawned several news operations, policy-wise coming from city hall, including the Observer group of coming from my school board and community newspapers serving that sort of thing? People are not really Lakewood and several other getting good quality information.” The study also found that the numCuyahoga County communities, and ber of news gatherers in Cleveland was The Devil Strip in Akron. One of the latest, and maybe the most down 61% between 2004 and 2019. In ambitious, is The Land, which just Akron, that figure was down 54%. Michael Murlaunched its webphy, chief marsite. As planned, keting officer of The Land would the Cleveland “deliver in-depth Foundation, said stories that foster that funding accountability, inparts of the ecoform the commusystem makes nity and inspire sense to his and people to take ac- “THE NONPROFIT MODEL other organization,” according to WILL ALLOW US A LOT OF tions in the comthe crowdfunding munity. In Deproposal prepared ABILITY TO SERVE THE cember, the by founder and COMMUNITY, HAVE SOME Cleveland Founeditor Lee Childation and the cote and publisher EARNED INCOME BUT HAVE Akron CommuTammie Wise, MEMBERSHIPS AND GRANTS nity Foundation, both formerly asthe Center for sociated with TO FULFILL OUR MISSION.” Community Freshwater Cleve- — Lee Chilcote, founder Solutions, the land, a for-profit and editor of The Land George Gund digital magazine owned by Detroit-based Issue Media Foundation and the Knight Foundation announced more than $110,000 Group. The Land plans to cover all of in journalism grants to address comCleveland’s neighborhoods and the munity information needs in Akron city’s inner ring of suburbs, eventual- and Cleveland. “As a coalition of funders, we are ly building a staff of six reporters to cover government, development, en- starting to see news and information vironment, education, health care as the critical part of any community infrastructure,” Murphy said. “If you and civic engagement. “There’s been a tremendous don’t have a healthy news and inforamount of growth in the nonprofit mation ecosystem, you can’t have a news sector in recent years,” Chilcote community that’s thriving. Citizens said. “The nonprofit model will allow need to be informed.” The Cleveland Foundation, for exus a lot of ability to serve the community, have some earned income but ample, has funded a project on food have memberships and grants to ful- insecurity in Cleveland developed by Black Girl Media, a blog and podcast fill our mission.” Chilcote said he and Wise were collective; Edible Cleveland, a print motivated by what they see as a and online magazine; and WOVU, a “news crisis” in Northeast Ohio as community radio station created by traditional news organizations, par- Burten, Bell, Carr Development Inc., ticularly The Plain Dealer, have made the nonprofit community development corporation serving Cleveland’s significant cuts in news coverage. This is not a Northeast Ohio phe- Central and Kinsman neighborhoods. It also is sponsoring a one-year pinomenon. Across the country, the decline or demise of newspapers has lot of a program through Neighborcreated so-called “news deserts” in hood Connections, a Cleveland nonthat boosts Cleveland many communities. At the same profit time, foundations and other philan- neighborhoods, to pay Greater Clevethropies are beginning to see that lo- landers to document official commitcal news is critical to maintaining tee meetings of Cuyahoga County and healthy communities, especially in City of Cleveland governments. The program, Documenters.org, was crelower-income parts of cities. Last year, the Cleveland and ated in Chicago by City Bureau, a nonKnight foundations commissioned a profit civic journalism lab. study, “Northeast Ohio’s Local News and Information Ecosystem,” by two See NEWS on Page 4

From left, Alex Shannon, financial advisor; Matt Shannon, managing director; Sharon Whitacre, senior institutional consultant; Jim Barsella, managing director; Doug Krapf, managing director; and Dave Wohlabaugh, senior institutional consultant.

Legacy Strategic Asset Management: ‘We’ve broken the mold’ By VINCE GUERRIERI Crain’s Content Studio-Cleveland

It happens so often that it’s become a cliché: The first generation of a family builds a business. The second generation grows it. The third generation sells it. But nothing could be further from the truth for Legacy Strategic Asset Management of Wells Fargo Advisors. Founded in 1987 by John Shannon and Steve Hasbrouck, two financial advisors who’d met decades earlier at a Merrill Lynch training class, the Hudson-based company is still going strong and growing, overseeing more than $7.8 billion in assets, as of Dec. 31, 2019. “We’ve broken the mold,” says John’s son Matt Shannon, managing director and senior institutional consultant. “It’s still very much a family business. Everyone works hard, everyone’s got a passion for the business, and everyone’s moral compass points north.” Legacy recently was recognized as one of Barron’s Top 50 Institutional Consultants, an invitation-only honor that takes into consideration assets, revenue generation and regulatory record for their work serving university endowments, charitable foundations, pensions and other institutional assets. Longevity isn’t one of the factors for the award, but it remains a point of pride for the company.

a couple years,” says Alex Shannon, Matt’s cousin and a financial advisor. “We haven’t had a turnover in our firm’s history.” And clients recognize and appreciate that, too. One of the firm’s initial clients, enlisting its services a year after the company was founded, was the Akron Community Foundation. It still uses Legacy as its investment consultant, reviewing and analyzing market conditions, evaluating and monitoring at the performance of its own managers and evaluating asset allocation, among numerous other services. “They’ve had no consultant turnover for us,” says John Petures, who’s been president and CEO of the foundation since 2008. “And they offer what I call ‘bench strength’ with personalized service.” Legacy offers its clients a boutique service model while still maintaining all of the resources of a multi-national financial services firm. Legacy’s success, as is so often the case, stems from hiring people who fit in with the company’s culture.

better word, get it,” Matt Shannon says. “At the end of the day, we are working toward a meaningful end. A lot of our institutional clients are nonprofits. The dollars we gain them help positively impact someone else, and that’s kind of our guiding principle.” Those results can be seen on the streets of Akron. When the community foundation signed on with Legacy in 1988, its assets were $8.4 million. It now disburses more than that -roughly $10 million -- annually, some in grants and some in funds to the more than 100 nonprofit organizations that hold endowments with the foundation. Petures came in on the teeth of the Great Recession, which at the time was the worst American economic downturn since the Great Depression. The foundation’s endowment took a hit, but Legacy’s steady hand helped it recover from the recession to become a $222 million organization. In Petures’ time as president and CEO, the foundation more than doubled its number of funds, from about 300 to more than 700. In Legacy’s time as consultant, the foundation’s annualized net gain has been roughly 8.27%.

“People know when they sign on to work with us, we aren’t leaving in

“We want to hire good people whose value system aligns with ours and intelligent people who, for lack of a

“We’re proud of that, and so are our fundholders and donors,” Petures says. “Our relationship with Legacy is a true partnership, with prudent, honest stewardship that’s based on facts.”

The Barron’s Top 50 Institutional Consultants rankings are evaluated on a range of factors for the Financial Advisor and their team including institutional assets under management, revenue produced for the firm, regulatory record and number of clients served by the consultant’s team. Also considered were the advanced professional designations and accomplishments represented on the team. About Legacy Strategic Asset Management of Wells Fargo Advisors: Legacy Strategic Asset Management, located in Hudson, OH, is a nationally recognized investment consulting practice that was founded in 1987 to assist families, institutions and non-profit organizations in implementing a strategic investment process while managing investment risk. With over $7.8 billion in assets under advisement, Legacy Strategic Asset Management works with many of the most respected institutions, corporations, and high-net-worth individuals and families in Northeast Ohio and the Midwest. Combining the powerful resources of Wells Fargo with the local

experience of Legacy Strategic Asset Management allows us to serve our over 63 institutions and over 100 high-net-worth clients with local service and global expertise. About Wells Fargo Advisors: With $1.7 trillion in client assets as of December 31, 2019, Wells Fargo Advisors provides investment advice and guidance to clients through 13,512 full-service financial advisors and referrals from 5,471 licensed bankers. This vast network of advisors, one of the nation’s largest, serves investors through locations in all 50 states and the District of Columbia. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. All data includes Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, as of December 31, 2019. www.wellsfargoadvisors.com. About Wells Fargo: Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services

company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,400 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 260,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.Investment and Insurance products: Not Insured by FDIC or any Federal Government Agency; MAY Lose Value; Not a Deposit of or Guaranteed by a Bank or Any Bank Affiliate.

This advertising-supported feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content. JULY 27, 2020 | CRAIN’S CLEVELAND BUSINESS | 3

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NEWS

From Page 3

“Residents in Cleveland, especially, felt that they don’t feel represented at editorial meetings, that there is not someone that looks like them who is making decisions. There is a strong, strong sense of distrust,” Murphy said. “They feel that even when there are stories of hope in their neighborhood, the traditional media rely on antiquated B-roll, or antiquated images, to even tell a story of good news.” One of the oldest parts of the building Northeast Ohio news ecosystem is the Observer group, a loosely connected group of for-profit and nonprofit news organizations started more than a decade ago as print monthlies or biweeklies that are considered “hyperlocal” because they focus on a single community, or closely linked communities. They cover schools heavily but also housing, libraries and city councils. Seven Observers, each separately owned, cover communities from Westlake and Parma to Collinwood and Euclid. Bob Rosenbaum, advertising director of the Heights Observer, which covers Cleveland Heights and University Heights, said the Observers started as print publications and continue to have a strong print presence because its revenue comes from local advertisers who don’t need or

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can’t afford to reach the kind of audience that larger media reach. “We’re now in our 11th year, and we’ve been making it on advertising revenue almost exclusively. Ninety percent of our revenue is advertising,” he said. “We’ve largely had year-onyear growth until this year. This year,

“I THINK THE WAY WE FIT INTO THE LOCAL NEWS ECOSYSTEM IS FILLING GAPS THAT WE SEE.” — Chris Horne, editor, The Devil Strip

everything is blown to the wind.” Rosenbaum said his organization does attract some foundation funding for specific projects, and it is a member, along with some of the other Observers, of the Neighborhood & Community Media Association of Greater Cleveland. That association’s website posts stories from its 14 members, including the Plain Press, which covers Cleveland’s West Side neighborhoods, and the Real Deal Press, which covers “the interplay of race, class and power in the civic, business and cultural

spaces of Northeast Ohio.” The Devil Strip, a 5-year-old online and print news co-op in Akron that believes media are a city’s “chief storyteller,” sees its role as being an advocate for the city. “I think the way we fit into the local news ecosystem is filling gaps that we see,” said editor Chris Horne. “We’re looking at more narrative, long-term, slow journalism. Part of it is, we don’t have the ability to do the daily stuff.” Those gaps include looking at local arts, music, entrepreneurship and community leadership, and celebrating the people who make Akron a unique place — as well as exploring the challenges that hold it back. Horne said Devil Strip is getting 30,000 unique visitors a month. Before the pandemic hit, much of Devil Strip’s revenue came from advertising. But it also is in the middle of a two-year, $200,000 grant from the Knight Foundation, and it has won a $50,000 grant from the GAR Foundation. News organizations like these are cropping up all over the country. The Institute for Nonprofit News, a Los Angeles organization that is a hub where members can share best practices, pool resources and collaborate on stories, has more than 250 members — including The Devil Strip and Belt magazine in Northeast Ohio. Jay Miller: jmiller@crain.com, (216) 771-5362, @millerjh

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4 | CRAIN’S CLEVELAND BUSINESS | JULY 27, 2020

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not competitive here.” To date, neither the presumptive Democratic nominee’s campaign or Priorities USA, a Biden-supporting political action committee, has bought broadcast TV ads in Ohio. But Nick Martin, political marketing technology consultant and Data Genomix CEO, said that could change quickly as decisions regarding how and when the state will vote solidify. “All of the recent uncertainty means campaigns have not been able to plan that far ahead,” Martin said. With so many primaries, including Ohio’s, pushed back because of COVID-19 shutdowns, and results

cide how to target messages to the appropriate demographic. “What campaigns need to look at is President Donald Trump’s re-elecage. Under 45 years old, campaigns tion campaign and affiliated political need to look to streaming media, action committees are spending (while) 55 years old and up are more more money in July on Ohio media likely to not be cord-cutters and are ad buys than in any other battlemore likely to be watching TV, espeground state apart from Florida, a cially local news,” he said. move that has not yet been matched In Ohio, spending on Facebook by former vice president Joe Biden’s ads shows a smaller margin between campaign or supporters. the two national campaigns. FaceFederal Communications Combook reports that Trump has spent mission (FCC) records show the $27.9 million on ads in Ohio so far in Trump campaign recently bought this election cycle, while Biden has about $50,000 in advertising with spent $23.6 million. Cleveland-market TV channels Part of the Trump campaign’s reWKYC, WEWS and WJW and nearly cent foray into the Cleveland market $16,000 with WOIO for the week of are three spots scheduled July 20-24. to run during the Cleve“TV got a shot in the arm “THIS IS NOT A STATE THE land Indians’ first three with the pandemic,” said TRUMP CAMPAIGN WANTED TO games of the season. Nick Everhart, founder and Advertising during president of Content CreSPEND $20 MILLION IN. THERE sporting events, said Jeff ative Media and Medium IS NO REASON THE CAMPAIGN Rusnak, president and Buying, two RepubliWOULD DO THAT IF IT WAS NOT CEO of political consulting can-aligned political meR-Strategy Group, “is usudia-buying firms based in COMPETITIVE HERE.” ” ally not cost efficient, but Columbus. “Advertising is with no fans in attendance, a supply-and-demand in- — Nick Everhart, founder and president, and in the case of Major dustry, and from March Content Creative Media and Medium Buying through this summer, there was an delayed because of the heavy reli- League Baseball, a shorter season, it interesting shift where ad costs were ance on mail-in ballots, normal cam- makes sense that more eyes will see down, ratings were up, so you can paign schedules have been altered those ads.” Fox Sports, which televises MLB reach a larger numbers people at a dramatically. “More money is going to be spent games, typically opens the season lower cost.” The Trump campaign, trailing in over a shorter amount of time this cy- with 60% of game ad inventory sold. polls, is looking to spend more in cle. A lot of candidates were in a wait- However, this year, 90% is accounted Ohio, a state the president won by 8 and-see mode,” Martin said. “There for as opening days across the counpercentage points in 2016. The cam- had been a lot of questions regarding try were pushed back to July, accordpaign already has committed to how and when the campaigns shift ing to Seth Winter, executive vice spending more than $18 million — gears and change tactics. Now is the president of sports sales at Fox about $7 million in both Cleveland time to change from the theoretical Sports. As local audiences have been and Columbus, and about $4 million and get down to brass tacks.” Traditional media ad buys also are starved for sports of any kind and in Cincinnati — in TV advertising scheduled to run in the last two not the straightforward indicators campaigns look to reach a larger capmonths before the election. That’s a they once were in analyzing cam- tive audiences outside of the media big amount, though it’s still well be- paign priorities. Technology, social bubble many voters reside in, adverhind the $37.8 million being spent in media and changing demographics tising during these baseball games TV markets in Florida, another must- were poised to make this campaign presents significant value. “These are the first games, people win state for Trump, from Labor Day cycle look different even without issues brought on by COVID-19 delays, are more inclined to watch them live to Election Day. It’s a sign that Ohio is, once again, shutdowns and accompanying un- and there is clearly a large sports audience,” Everhart said. “These spots a swing state in a presidential elec- certainty. Bill Burges, founder and chair of could have an over-top impact when tion. “This is not a state the Trump cam- Burges & Burges Strategist, a cam- the numbers come in.” paign wanted to spend $20 million paign communications firm, points in,” Everhart said. “There is no reason out that with the proliferation of on- Kim Palmer: kpalmer@crain.com, the campaign would do that if it was line media, campaigns have to de- (216) 771-5384, @kimfouroffive

6 | CRAIN’S CLEVELAND BUSINESS | JULY 27, 2020

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PERSONAL VIEW

Immigrant owners face added hurdles to business survival

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

BBY BRIAN HALL

EDITORIAL

Bill comes due T

his is about as easy as it gets: House Bill 6, the $1.5 billion bailout of two nuclear power plants now owned by Energy Harbor Corp., should be repealed. The bill was bad enough when it was passed. It stuck consumers with higher utility bills — HB 6 carved out $150 million annually for the Davis-Besse and Perry plants, which Energy Harbor predecessor FirstEnergy Solutions had said would close without aid — while also cutting support for wind and solar. But now that we know HB 6 was at the center of a bribery scandal that led to the arrests of Ohio House Speaker Larry Householder and four political associates, the process that led to the bill’s passage has been revealed as thoroughly illegitimate. As of Thursday afternoon, July 23, a bipartisan group of state lawmakers was working on a repeal measure. Gov. Mike DeWine on Thursday reversed himself, saying he supports repealing and replacing HB 6. DeWine still thinks the substance of the law is fine but acknowledged the process was tainted — a fair way to characterize the deception at play in THE BILL WAS BAD turning HB 6 into law. ENOUGH WHEN IT A repeal would, in theory, clear the way to fix the PASSED. IT STUCK deficiencies of HB 6. EnviCONSUMERS WITH ronmental groups opposed its rollback of renewable HIGHER UTILITY BILLS energy and energy efficien... WHILE ALSO CUTTING cy standards. Conservative groups decried it as a corSUPPORT FOR WIND porate bailout. (Both were AND SOLAR. right.) But before anything significant can come out of this Legislature, a few things need to happen. First among them: Householder has to resign. Top Republicans and Democrats have called on him to do that, though he has said he won’t. Householder is of course innocent until proven guilty, but the details contained in the 82-page federal complaint outlining the scandal are too serious to be ignored. If he won’t go voluntarily, the House should use its ability to

expel a member with a vote of two-thirds of legislators for “disorderly conduct,” which could cover Householder’s alleged actions. Also, the state needs to strengthen anti-corruption legislation related to “dark money” — political spending by nonprofits that are not required to disclose their donors. Such organizations can receive unlimited donations from corporations, individuals and unions. In this case, a company identified in federal documents so far only as “Company A” — but known to be FirstEnergy Corp., the parent of FirstEnergy Solutions, which changed its name to Energy Harbor when it emerged from Chapter 11 bankruptcy protection earlier — paid almost $61 million over three years to a nonprofit called Generation Now. As outlined by U.S. Attorney David DeVillers, Generation Now used the money to help elect candidates who would support Householder for speaker, pass the bailout law, and then stop a proposed ballot initiative to overturn it. The tactics are complex. The Cincinnati Enquirer reported that the federal complaint outlined allegations of how “Company A” used an “Energy Pass-Through” to funnel millions to Generation Now. That pass-through, the Enquirer noted, was Partners for Progress Inc., a nonprofit that engaged in “advocacy in support of nuclear power and the power generation in general.” The principal of Partners for Progress was Dan McCarthy, now DeWine’s director of legislative affairs. A system that works like this is only working for parties willing and able to throw money around to get what they want. It’s certainly not in service of the citizens of Ohio. FirstEnergy so far has said little on the matter, beyond noting in a statement that it had “received subpoenas in connection with the investigation surrounding” HB 6 and that it was “reviewing the details of the investigation” and would “fully cooperate.” The company’s stock took a tumble last week, and, as Katie Bays, an energy analyst and managing director at FiscalNote Markets, told Bloomberg, “They are going to have a credibility deficit with folks in Ohio,” including regulators, lawmakers and the public. There’s still much to learn. But if the government’s case holds up, a heavy fine will be just the start of ramifications for the company.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

Each word translates to “loan” from the most common non-English languages spoken in Cleveland. If you own a small business, applying for emergency relief and seeking strategic guidance during the pandemic has been difficult; imagine if the laws and applications were not written in your first language. This reality exists for hundreds of business owners in Cleveland who speak En- Hall, senior vice glish as a second language. Few culturally president of the competent resources exist, many small Greater businesses are unbanked (and cannot Cleveland take advantage of relief), and opaque Partnership, terms in lending prevail. Immi- wrote this on grant-owned businesses are also more behalf of GCP’s likely to operate in sectors especially vul- Equity & Inclusion Team. nerable to disruption by COVID-19. “Comprising 16% of all business owners, immigrants were majority owners of 22% of businesses in higher-risk industries in 2016. The principal reason for this is their entrepreneurship in accommodation and food services, an industry in which immigrants own 33% of businesses,” the Pew Research Center explained in April. These businesses may also have smaller cash reserves. The lack of concern for small businesses in the recovery exacerbated challenges for new immigrants. As the Wall Street Journal reported, the Paycheck Protection Program did not target areas with a higher share of business closures or hours cut. The cap on non-payroll expenses and failure to prioritize deeply affected industries exhausted the program quickly. Given the immense impact of international-born residents of Cleveland — today and throughout history — how might our community support business owners whose first language is not English? Here are a few recommendations. 1. Takeout Tuesdays: Scan Global Cleveland’s map of immigrant-owned restaurants and the Hispanic Business Center’s list of businesses providing takeout or delivery for one (or more!) to patronize each week. Ordering or dining in is an excellent way to help sustain small businesses that are less likely to receive a lifeline from the federal government. Consider posting on social media after ordering to help the businesses market themselves. 2. Culturally competent tools and resources: Have you considered your audience and their linguistic needs? Providing materials on how to start a business in multiple languages is critical. Organizations should consider publishing their surveys and applications in several different languages. In addition, they can hire experienced translators to ensure idiomatic communication with entrepreneurs. Immigrants contribute disproportionately to entrepreneurship: it is critical to our region’s success that language is not a barrier. 3. Create and promote alternative financing vehicles: Lending Circles, KIVA and Honeycomb Credit are a few tools that do not rely on traditional banking structures but still provide access to capital. Another concept is Islamic banking — a culturally distinct system of investing that requires borrowers to return a share of profits rather than paying interest. Greater Cleveland does not have such a bank, and many business owners travel to Michigan for services. Xenophobia has spread as fast as COVID-19. With rising hate crimes, plummeting sales at Chinese restaurants, and federal attempts to freeze immigration, today is a critical time to show solidarity with our international community.

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 ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

8 | CRAIN’S CLEVELAND BUSINESS | July 27, 2020

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OPINION

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PERSONAL VIEW

Construction

Bankruptcy law changes could help struggling restaurants BY ADAM FLETCHER

Operating a small or independently owned restaurant has always been challenging. Even in the best of times, tight margins and fixed expenses result in many new restaurants never seeing their first birthday. Now, restrictions on eat-in dining under stay-at-home orders instituted to combat the COVID-19 pandemic have caused the profits of many otherwise financially sound restaurants to evaporate, while expenses, such as rent, remain. While loans provided through the Paycheck Protection Program (which can be forgiven under the right circumstances) have been a temporary cash lifeline for some restaurants, they may not be sufficient to keep restaurants afloat in light of back rent and other expenses that continue to mount while revenues remain depressed as a result of continued social distancing measures. Confidence in the industry seems to be at an all-time low, with the Independent Restaurant Coalition estimating that 85% of independent restaurants could fold by the end of 2020. In the past, restaurateurs were often unable to use bankruptcy to save their businesses because, in a typical Chapter 11 bankruptcy, the court cannot approve a reorganization plan that leaves the existing equity owners in control unless all creditors’ claims are paid in full or the existing owners put new capital into the business. This meant that restaurateurs without access to additional capital could not reorganize in a Chapter 11 bankruptcy and instead were forced to liquidate their businesses in a Chapter 7 bankruptcy. But two recent changes to federal bankruptcy laws now make it possible for owners of smaller or independently owned restaurants to restructure their debts in bankruptcy and maintain ownership of the business without having to pour in more capital. In 2019, Congress passed the Small Business Reorganization Act (SBRA), which created a streamlined bankruptcy reorganization process for businesses with noncontingent, liquidated debts (excluding certain debts, such as shareholder loans) totaling up to $2,725,625. Under the Coronavirus Aid, Relief, and Economic Security Act passed this year in response to

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City moved quickly to expand outdoor dining space The city of Cleveland is open for business. Even the COVID-19 cloud that is hanging over us all has a sliver of a silver lining. The devastation wreaked by this global pandemic has forced a reckoning and challenged many assumptions about how we live, work and play. Speed, innovation and efficiency aren’t characteristics we normally associate with government. Two years ago, I developed seven upscale townhomes in Cleveland’s Duck Island neighborhood, and the architectural plan review process dragged on for over nine painful and costly months. But in this encouraging case, the city took a bold and decisive approach to fast-tracking the use of “temporary expansion areas” (TEA) to allow restaurants to expand outdoor dining space into streets and public areas, better known as “parklets.” This math for this unorthodox use of the parking lane in front of Market Garden Brewery and our other restaurants made simple sense. Parklet #1 took the place of six parking spaces and provided safe seating for nearly 100 people with a full 6 feet of physical distancing in effect. The TEA application process was simple and streamlined, and feedback was immediate. Compromises were discussed in conference calls and decisions were made on the spot. Even with Cleveland City Hall employees working remotely, the process turned around in a couple short weeks, and the city

delivered and installed the concrete barriersCandor in short Logistics Ad-4-8 copy.indd order. This was government working fast, smart and efficiently. The process involved Councilman Kerry McCormack, the Ohio City Inc. team, City Planning Director Freddie Collier, Terrell Pruitt of Public Works, Cleveland Director of Building and Housing Ayonna Donald, and so many others from various departments. Without exception, these leaders worked hard and fast to make TEA a reality. And while these parklets aren’t a cure for COVID-19, they are a lifeline for the struggling hospitality industry in Cleveland. And they’re also a clear sign of hope that difficult times can bring out the best in people and our government leaders. The city of Cleveland is clearly and decisively open for business. And if the parklets are a success this year, they will likely return every year in the future. Now it’s time we rethink long-held opinions and assumptions and begin to question the reasoning behind every aspect of life and business. Change can often be uncomfortable, but change is necessary for our continued progress and prosperity. Here’s to a brighter future ahead. Sam McNulty Co-founder Market Garden Brewery, McNulty’s Bier Markt, Bar Cento, Speakeasy, Nano Brew Cleveland and Duck Island 7

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CYBERSECURITY

CYBERATTACK: YET ANOTHER THREAT FROM COVID-19 Pandemic and its worldwide stay-at-home orders raise new questions about data security and put companies on alert to watch for vulnerabilities in their own systems BY DOUGLAS J. GUTH

Cyberattacks are notoriously difficult to manage due to their fast-moving, ever-changing nature, complete with a frightening ability to spread quickly throughout a computer network. In the era of COVID-19, organizations should prepare for a global cyber pandemic as any forward-thinking nation would a deadly biological virus, experts told Crain’s. “People are in crisis mode,” said Chris Hickman, chief security officer at Independence certificate management provider KeyFactor. “(The coronavirus) is forcing companies to think about how well prepared they are for a disruption to their business approach. Cybersecurity is a big part of that.” Worldwide stay-at-home orders not only have changed the way we live, they’re altering the means in which companies store data as well. A home office’s ability to access sensitive information from an enterprise server is raising larger questions about data security, reflecting a new reality where industries are vulnerable to increasingly savvy hackers.

“How secure is data in this environment, and how can we secure that model seamlessly?” Hickman said. “COVID-19 has shone a spotlight on those challenges.” Even before the virus crisis, cybersecurity was deemed a global threat by entities including the World Economic Forum. Experts say a cyberattack could potentially multiply faster than a pathogen. The 2003 Slammer/Sapphire worm, for instance, doubled in size every 8.5 seconds, spreading to over 75,000 devices in 10 minutes and 10.8 million devices in 24 hours. David Mastny, director of information security at Cuyahoga Community College, pointed to the 2017

“HOW SECURE IS DATA IN THIS ENVIRONMENT, AND HOW CAN WE SECURE THAT MODEL SEAMLESSLY? COVID-19 HAS SHONE A SPOTLIGHT ON THOSE CHALLENGES.” — Chris Hickman, chief security officer, KeyFactor

WannaCry ransomware attack, which disabled more than 200,000 computers globally by exploiting a flaw in older Windows systems, as an example of how easily a virus can disseminate across networks. “For software that’s widespread, a computer will seek out others to infect,” Mastny said. “You shut off network access, and operations will shut down.” The WannaCry incident caused massive disruption to health care system operations, including the

United Kingdom’s National Health Service. Another version of ransomware, called NonPetya, brought down the IT systems of shipping giant Maersk, resulting in millions of dollars in damage.

‘A never-ending battle’ A coordinated digital shutdown could theoretically take millions of devices offline in days, noted Greg White, director of the San Antonio-based Center for Infrastructure

“FOR SOFTWARE THAT’S WIDESPREAD, A COMPUTER WILL SEEK OUT OTHERS TO INFECT. YOU SHUT OFF NETWORK ACCESS, AND OPERATIONS WILL SHUT DOWN.” — David Mastny, director of information security, Cuyahoga Community College

Assurance and Security (CIAS). White said a single hacking attempt is less concerning than a multifaceted attack that companies don’t have the resources to mitigate. Though White hesitated to make a direct parallel between COVID-19 and a computer virus, infected devices can be “asymptomatic” and spread the virus without their owners knowing a problem existed. Businesses forced by the pandemic into telecommunications mode are now busy updating their continuity of operations plan, or COOP, to determine how to sustain essential functions following a disaster event. In the case of cyberattacks, prevention is the best cure, even as there’s not much companies can to do stop a common denial-of-service (DoS) attack that floods a machine or network with traffic, rendering it inaccessible. Industries, including the financial services sector, share cyber best practices through Information Sharing and Analysis Organizations (ISAOs), the result of a White House directive promoting the voluntary sharing of threat information within market sectors. However, some industries

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and areas of the national infrastructure don’t have the means to guard against a large-scale infection. “They’re not as prepared as we’d like them to be,” said White, who also serves as executive director of the ISAO Standards Organization. “For example, small power compa-

nies in rural communities may not have the funds for full-time IT people on staff.” ISAOs actively respond to cyber incidents, designing a bulwark of measures to protect against future attacks. Wise organizations create a “maturity model” assessment tool

for threat and vulnerability management that also can be easily communicated to C-suite executives. “We all have to think like Hawaii does in its disaster recovery plans,” White said. “Each person in the state has enough food and water to last seven days. They are on their own. Large organizations need to be thinking along the same lines.” In a worst-case scenario, the entire planet could experience a costly and dangerous cyber lockdown until a digital vaccine is developed. As the coronavirus pandemic continues, it’s incumbent upon companies to analyze their enterprise’s “moving pieces,” including remote workers who need authentication before utilizing an internal network, said Hickman of KeyFactor. “Do that discovery, then look at the underlying places where your people are the weakest link,” Hickman said. “Most attacks happen due to mistakes people make.” Millions of office employees now operating from home must be educated out of bad online habits, added TriC’s Mastny. During state-mandated shutdowns, hackers may send phony emails on back-to-work procedures so individuals download malware or give away personal information. Multifactor authentication and randomizing passwords are simple ways to keep cyber criminals from gaining high-level access to company data. “It’s not just about box-checking. It’s about keeping up with threats and making sure you don’t move backward,” Mastny said. “With cloud services, every change introduces a new risk. It’s a never-ending battle.”

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Attempts to compromise systems are on the rise during pandemic BY KAREN FARKAS

As employees began working from home during the coronavirus pandemic, cybercriminals found new opportunities to gain unauthorized access to computer systems and data. And that has led to more business for local companies that focus on cybersecurity, especially since what was initially thought to be a short-term solution has extended for months, officials said. “We have definitely seen, along with most of our counterparts in the cybersecurity industry, a big increase in both the number of security incidents that need to be investigated and attempts to compromise the security of companies,” said Randy Pargman, senior director of threat hunting and counterintelligence at Binary Defense in Stow, which provides cybersecurity defense for organizations. “I think it is very clear that those are related to the pandemic situation.” Christopher Hartley, director of cybersecurity at Sikich LLP, a profes7/16/20 3:24 PM sional services firm in Akron; Damon Hacker, president and CEO of Vestige Digital Investigations, a Medina company specializing in digital forensics and cybersecurity; and Pargman said their firms have been contacted by small and large companies in all sectors, including government, law and manufacturing. Some of their businesses have hired more staff, but all are adding clients, many who never imagined their information could be in jeopardy. Binary Defense, which employs 97, has added 15 people in 2020, Pargman said. And even faced with challenges of the pandemic, the company experienced strong growth, he added. Vestige has added two people this year, bringing its staff to 16 in town, Hacker said. Business is up just under 30% year over year from 2019, he said. Sikich employs about 35 on its cybersecurity team, and Hartley said its work requests have been steady and even ticking upward as clients return to their offices. Here’s what the experts said are the primary cybersecurity issues they have handled during COVID-19:

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“Organizations never had a real work-at-home scenario,” Hartley said. He said many did not set up firewalls, a network security system to monitor and control traffic on remote desktops. “So basically it allows access to the corporate environment,” he said. “Hackers are out there sniffing traffic and looking into things. A remote desktop can offer carte blanche access, unimpeded, unencrypted.” Hacker said a lot of companies were not prepared to turn their workforces loose. “In a fair number of companies, the option was to just open up remote desktop services, and they did little or nothing to actually secure that,” he said. “The analogy I use is that imagine driving home in your neighborhood and see not one, two or five, but 50 burglars going down the road rattling the windows. It happens on the internet 24/7, 365.” When an employee works from a

computer at home it is not in the safe, protected network environment in a business, “that makes it a lot more important to have active security software running on the computer to detect any threats,” Pargman said.

Phishing emails Bad guys are having success with phishing and credential harvesting, Hacker said. “A lot of fake emails, especially around COVID, because people are going out there and want to get information,” he said. “We have seen an increase in malicious files being hosted on websites that either are or appear to be authoritative as it comes

And IT is supporting more new systems for remote access and must keep those systems up and running, he said. Most small businesses have not allocated the necessary funds for security because they think they are not a target. They think they don't have anything anyone would want or value, Hacker said. “I have had people tell me they don’t have credit card information, or financial, health care or intellectual property, so there is no way they would be a victim,” he said. “You have to recognize the burglars are going up and down the road. You can become a victim for no other reason than you have a connection to the internet, and they are using your system for nothing other than a launching point to attack another organization.”

Ransomware

“WHEN COMPANIES HAVE REMOTE ACCESS SYSTEMS FOR EMPLOYEES TO LOG INTO REMOTELY, THE ATTACKERS ARE COMING IN THE SAME WAY.” — Randy Pargman, senior director of threat hunting and counterintelligence at Binary Defense

to COVID. People are reaching out to pull down a white paper and are bringing down malware.” Employees working from home could also be fooled by what they think is a company email with documents to view. “They could receive an email about some new work procedures or updates to polices — anything that would convince an employee that it was urgent and they should take quick action,” Pargman said. “They would not think through it very carefully before opening it up.”

Password fraud Cyberthieves can easily run through iterations of passwords to gain entry, Hacker said. And there is a lot more fraud around pretending to be someone, he said. “They will contact the help desk or IT and say they are an employee and request their password,” he said. “An IT staffer may not take the necessary steps to make sure that person is who he says he is and provide information. A lot of organizations were not set up to do that. You could walk down to the office, or they could see what extension you were calling from.”

IT resources

Attackers are taking advantage of the fact that some companies have shrinking budgets because of COVID-19, Pargman said. They may not have as many IT staff members or may not be able to replace employees.

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One of the major threats affecting industries across the board is ransomware, Pargman said. “When companies have remote access systems for employees to log into remotely, the attackers are coming in the same way,” he said. “They come in, appear to be a regular employee and use their access of the company systems to steal administrator passwords.” The attacker can spend days exploring the system and find the most critical servers. “That puts the company in a really bad position — they pay the ransom or pay the cost of recovering the information without the encryption key,” he said. Attackers can lock up systems and demand ransom even if the company doesn’t have financial information or anything they think could be stolen or sold to other people for profit, he said.

Removing threats “One of the things that often happens in an incident is that IT gets involved right away and the gut reaction is to get the person out of there, shut down the system or eradicate the virus,” Hacker said. “While the nuclear option is effective in getting the bad guy out of there, the problem is after the dust starts settling and executive management and outside entities ask questions about what happened. Did they take anything, or do we have to notify people? They might not be able to answer those questions.” Hacker and Pargman said companies must have enough information to create a timeline of what happened. “There is a careful balance to be made to reacting quickly enough to cut off a threat actor access and not reacting so quickly before you understand the scope of the threat,” Pargman said. “A really difficult decision has to be made by the company, but the situation is if you don’t really understand how the threat actor got in and what other systems they also have access to, you might just cut off one avenue the attacker has on one computer and unknowingly leave access open to many other critical servers.” Contact Karen Farkas: clbfreelancer@crain.com

12 | CRAIN’S CLEVELAND BUSINESS | JULY 27, 2020

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Survey question: Which of these factors is currently causing the biggest increase in risk for companies working remotely? 23 of the 34 companies on the Cybersecurity Firms lists responded Use of home computer Use of home network connection Use of unapproved file-sharing services or software Increased use of approved tools (email, VPN, etc.) 0 responses Devices being lost or stolen 0 responses Other 0

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CRAIN’S CLEVELAND BUSINESS GRAPHIC

Every company we asked reported an increase; employment is up, too BY CHUCK SODER

33 out of 33

Cybersecurity is a darn good business to be in these days, according to data Crain's collected while assembling the Cybersecurity Firms lists on page 14. Every single company who answered the question asking them whether demand had increased or decreased over the past 12 months reported an increase. Only one of the 34 companies on the full digital versions of the two lists didn't answer the question. Historical data from the lists back up those claims. Nineteen of the companies on the lists submitted data the last time we published them in 2017. Today those companies have a total of about 419 local, full-time equivalent employees focused on their cybersecurity offerings — up 47% from 2017. When you include all of the companies on the two lists, the total jumps to 590. Our cybersecurity products list is topped by Independence-based Keyfactor, a venture-backed digital identity management software firm with 75 local employees (up 88% since 2017). Three years ago we called that the "software" list, but this year we included Everykey, which does hardware and software. The Cleveland company makes a "smart key" device designed to help people wirelessly unlock the owner's devices and online accounts. Granted, that list previously in-

respondents to the Crain’s Cybersecurity Firms list survey said demand for cybersecurity offerings has increased over the past 12 months.

Check out the latest episode:

respondents said cybersecurity threats increase when companies allow employees to work remotely.  See the list on page 14.

cluded Binary Defense, which this year is in the No. 1 spot on the other list, which focuses on services companies. Binary Defense does still offer a proprietary software product, but it comes bundled with Binary De-

Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

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CRAIN'S LIST | CYBERSECURITY FIRMS — PRODUCTS Ranked by local employees RANK

COMPANY

LOCAL FTE STAFF 1

CYBERSECURITY PRODUCTS OFFERED

CHIEF INFORMATION/TECHNOLOGY OFFICER

TOP LOCAL EXECUTIVE

1

KEYFACTOR, Independence 216-785-2990/keyfactor.com

75

Public Key Infrastructure as a Service, digital certificate lifecycle management software, IoT crypto-agility software, secure signing software

Ted Shorter, CTO

Ted Shorter, CTO; Kevin von Keyserling, chief strategy officer

2

PREEMPTIVE SOLUTIONS, Mayfield Village 440-443-7200/preemptive.com

26

Software to shield desktop, mobile, server and embedded applications from hackers

William Leach, CTO

Gabriel Torok, CEO

3

AGILE1, Valley View 216-606-9400/agile1.io

13

SOC-as-a-Service, MDR, managed security

Steve Smith, CTO

Tony Pietrocola, president

4

EVERYKEY, Cleveland 855-666-5006/everykey.com

8

"Smart key" device that wirelessly unlocks owner's devices and online accounts

—

Chris Wentz, CEO; McKelvey Packard, chief operating officer

5

HEUREKA INC., Cleveland 888-968-7199/heurekasoftware.com

6

Software to index unstructured data, eliminate unneeded data, mitigate data breaches and enhance cybersecurity/data loss prevention

Dan Shinton, CTO

Greg Pacholski, CEO

5

MICRO SYSTEMS MANAGEMENT, Westlake 440-892-9997/msmctech.com

6

Barracuda Premier Partner, DAtAnchor Data Control and Security

Michael Zinn, computer forensic examiner, senior consultant

Patricia Zinn, CEO

7

SEKURE INC., Solon 440-467-0925/sekurecloud.com

5

Automated: Data Classification, Data Compliance, Data Governance, Data Security

—

Shoban Dharapareddy; Jagan Kolli; Sri Vishnu Pasumarthy, cofounders

8

INFOGPS NETWORKS INC., Boardman 844-446-3647/infogpsnetworks.com

3.5

InfoGPS 3D: Managed data risk and information system monitoring and correction; InfoGPS 555: Licensed information systems discovery engine

—

Paul B. Hugenberg III, CEO

NOTES: 1. Full-time equivalent as of 6-30-2020

CRAIN'S LIST | CYBERSECURITY FIRMS — TECHNICAL SERVICES Ranked by local employees focused on cybersecurity offerings COMPANY

LOCAL FTE STAFF CYBER/ TOTAL 1

SECURITY SERVICES DESCRIPTION

CHIEF INFORMATION/TECHNOLOGY OFFICER

TOP LOCAL EXECUTIVE

1

BINARY DEFENSE, Stow 800-246-2792/binarydefense.com

76 81

Incident response, managed detection and response, managed SIEM, managed SOC, threat intelligence

David Kennedy, cofounder, CTO

Mike Valentine, cofounder, CEO

2

HURRICANE LABS, Independence 216-923-1330/hurricanelabs.com

75 75

Managed security services

Bill Mathews, CTO, coowner

Bill Mathews, CTO, co-owner; Glenn Brzuziewski, managing partner, co-owner

3

MCPC INC., Cleveland 800-777-7178/mcpc.com

41 274

Incident preparation, prevention, response, disaster recovery, remediation; managed security: 24/7 monitoring, EDR, managed patching/backup

Scott Farris, senior security principal, CIO

Andy Jones, CEO

4

RSM US LLP, Cleveland 216-523-1900/rsmus.com

40 171

Consulting services designed to help organizations understand where they are today and build a program for the future

Troy Cardinal, CIO

David Andrews, Ohio market leader

5

FIT TECHNOLOGIES, Cleveland 216-583-5000/fittechnologies.com

31 73

Cybersecurity: Identity, data, infrastructure, endpoints, dark web; training and testing: Staff with live sessions and simulated attacks; security operations center

Fred Franks, CIO

Micki Tubbs, CEO, cofounder; Michelle Tomallo, chief people officer, cofounder

6

TRUSTEDSEC, Strongsville 877-550-4728/trustedsec.com

30 30

Penetration testing, software security, red/purple team, IoT assessments, incident response, remediation, security program building, PCI/QSA

—

David Kennedy, CEO, founder

7

ASMGI, Cleveland 216-255-3040/asmgi.com

18.5 39

Vulnerability management, incident response, assessments, GRC, breach simulation, TPRM, MSSP, MDR/MSOC; additional resources in five other states

Frank Yako, CIO; Steve Faykus, CTO

Steve Roesing, president, CEO

8

SIKICH LLP, Akron 330-864-6661/sikich.com

15 102

Incident response, penetration testing, vulnerability scanning, code reviews, IT audits, policies, risk assessments, remediation guidance, managed security

Scott Sanders, director internal technology

David A. Brockman, partnerin-charge, Akron

9

INVOLTA LLC, Akron 330-752-7163/involta.com

15 75

24/7/365 security operations centers that monitor, protect, analyze and respond to network, server and end user threats

—

Tom Lang, data center manager

10

MRK TECHNOLOGIES, Westlake 216-535-4100/mrktech.com

12 30

Chief information security officer for hire, 24/7/365 managed security operations center, cloud security, network forensics and analytics

Joe Yanoska, CIO

Matt Kennedy, president

11

BLUEBRIDGE NETWORKS, Cleveland 216-621-2583/bluebridgenetworks.com

12 24

Helps companies build a comprehensive security platform to eliminate any vulnerabilities

Roger Mitan, CTO

Kevin J. Goodman, managing director, partner

12

VESTIGE DIGITAL INVESTIGATIONS, Medina 330-721-1205/vestigeltd.com

11 16

Data breach investigation/response, proactive assessments, BreachReady proactive data breach preparation and provider of Hunt Team services

Greg Kelley, CTO

Damon S. Hacker, president, CEO

13

TCDI, Cleveland 216-664-1100/tcdi.com

11 13

Penetration testing, assessments, incident response, managed security, computer forensics, program management, policy development, chief information security officer on-demand

—

Joe Anguilano, managing director, cybersecurity

14

LOGICALIS US, Cleveland 216-350-4200/us.logicalis.com

10 50

Advisory, risk, implementation and managed security (MDR, device and vulnerability management)

—

Dave Hennie, vice president of sales

15

ACCELLIS TECHNOLOGY GROUP INC., Valley View 216-662-3200/accellis.com

9 39

Vulnerability management, security operations center, penetration testing, policy development, IAM/PIM, security assessment, Active Directory/Azure AD

Brian Guscott, director of operations and technology

Joesph Marquette, president, founder

16

ASHTON TECHNOLOGY SOLUTIONS, Beachwood 216-397-4080/ashtonsolutions.com

9 22

Security training, firewall management, endpoint management, vulnerability testing, two factor authentication, data loss prevention, business continuity, email protection

Travis Grundke, COO, CIO

Jim Millican, president

17

KIMMELL CYBERSECURITY, Fairlawn 330-338-4433/kimmell.com

8 9

Managed security, PCI DSS compliance, penetration testing, vulnerability assessments, DFARS/CMCC assessments, HIPPA assessments, digital forensics

Abdullah Alkhulaiwi, partner

Brett L. Kimmell, managing partner

18

CBIZ INC., Independence 216-447-9000/cbiz.com

6 340

Penetration testing, vulnerability assessments, web/mobile assessments, digital forensics and litigation support, facility breach exercises

John A. Fleischer, senior VP, CIO

Jerome P. Grisko Jr., president, CEO

RANK

Researched by Chuck Soder: csoder@crain.com | This list excludes data centers and managed IT services providers that offer cybersecurity services exclusively to managed services clients. Information is supplied by the companies. Send feedback to Chuck Soder: csoder@crain.com. NOTES: 1. Full-time equivalent as of 6-30-2020

Get all 34 companies on these lists in Excel format. Become a Data Member: CrainsCleveland.com/data 14 | CRAIN’S CLEVELAND BUSINESS | July 27, 2020

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7/23/2020 4:36:48 PM

AKRON HIGHER EDUCATION

UA scientists see bright future for color replication research BBY KAREN FARKAS

Scientists at the University of Akron just might make the world a more vibrant place. Vibrant colors, like those of bird feathers, have been replicated by University of Akron researchers, who think the hues they created could be used in inkjet printers, cosmetics and coatings on a wide range of surfaces. And, in an added bonus, they realized their color pigment, when placed on treated surfaces, only can become visible when the surface color is altered by changing the temperature, which could be beneficial for anti-counterfeiting applications. In the researchers’ process, any color is created by mixing different amounts of black and white particle dispersions in water. “If we can make colors like this using black material, it is really spectacular,” said Ali Dhinojwala, the H.A. Morton professor of Polymer Science at UA, of the results of the work of polymer science doctoral students Mario Echeverri and Anvay Patil. According to the researchers, the methodology, which enables them to print bright, long-lasting and nonfading colors, revolutionizes current printing technology. Their research is part of a wide-ranging effort by several uni-

Mixtures, With Applications in Anticounterfeiting,” recently published in the American Chemical Society’s Applied Materials and Interfaces journal. The melatonin research at UA is based on biomimicry, which involves copying nature to solve human problems. Previous research teams have created gecko-inspired adhesives, studied the elements of spider glue in webs and developed impact protection technology inspired by hedgehog quills. Echeverri and Patil focused on bird feathers. Feathers contain hairlike structures called barbs, and within the barbs is melatonin, Patil said. They took a colorful turkey feather and a black crow feather and sliced them extremely thin. A powerful microscope revealed that while the melanin in the black feather barb was random, the melanin was organized in the turkey feather. Using that information, the researchers obtained a synthetic mimic of melanin developed at Northwestern University and used sand (silica) as the replacement for keratin, which fills the spaces between the melanin in feathers. Synthetic melanin particles suspended in water become a black liquid. The liquefied silica particles are white. “This is where the magic is,” Echeverri said, as he held a vial with white liquid and a vial with black liquid. A variety of colors are created de-

University of Akron polymer science doctoral students Anvay Patil, left, and Mario Echeverri show feathers they used to determine how to reproduce colors. | KAREN FARKAS

versities to look at the biology, chemistry and nanoscience of natural and synthetic melanins, funded by an $8 million, five-year grant awarded in 2018 by the Air Force Office of Scientific Research. Melanin is a class of natural pigments that account for colors, including that of skin, scales, hair and fur. “Melanin is understudied and has been in the world for millions of years,” Patil said. “The focus was, ‘Can we learn anything from the material, and then are there any applica-

tions?’ ” Their work has attracted interest. Two samples with synthetic melanin are in orbit on the International Space Station. Dhinojwala said samples were sent on two launches and they are mounted on a panel outside the station to see how they react to ionizing radiation. The trio also authored, with researchers at Northwestern University and Ghent University in Belgium, an article, “Printing a Wide Gamut of Saturated Structural Colors Using Binary

pending on the amount of each liquid that is mixed together. “There was excitement when we observed the broad gamut of colors,” Patil said. They needed to test the colors on surfaces, but the surfaces had to be modified in a so-called cold plasma chamber so the liquid color would adhere. They treated a number of materials, including plastic, metal, rubber and glass. Drops of colors on the materials not only adhered, but have not faded, even after a year. An unexpected discovery was realizing that the pigment can be temperature sensitive, thus images could be hidden, which could lead to anti-counterfeiting applications. The scientists have applied for patents and plan to work with Northwestern University researchers to see if their color process can be applied to inkjet printing. Current printing technologies employ pigmentary, colors which are composed of toxic metal- or organic-based pigments that are susceptible to degradation and fading over time, the university said. Other potential commercial uses of their process include paint, ink, cosmetics, textiles and plastics. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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NUCLEAR

From Page 1

Legislators, economic developers and others across the state expressed their disgust with the situation — which already has become one of the largest scandals in Ohio’s history and resulted in the July 21 arrest of House Speaker Larry Householder and four others for what federal officials say was a $60 million bribery scheme to pass the law. Lake County commissioner Jerry Cirino said stakeholders in his community — where the Perry plant supports about 700 direct jobs at the facility and another 700 or so contractors — are feeling apprehensive. With the community, like others, already dealing with lost jobs and a decrease in sales tax revenue from the COVID pandemic, the timing couldn’t be worse, he said. “They’re on pins and needles all over again. This is their livelihoods, their jobs and their schools. With the sales tax reductions, this would just be a terrible double whammy.” Cirino said he would like to see HB 6’s subsidies remain in place, but he’s resigned to the bill likely being repealed. A number of lawmakers have already announced legislation to undo HB 6, and Gov. Mike DeWine, who said he supported keeping the law in place when the scandal broke, had reversed course by July 23 and joined calls for it to be repealed. “I think it’s going to need to be addressed. The outcry now and the reactionary approach are going to require this to happen soon,” Cirino said. He said he hopes that lawmakers don’t “throw the baby out with the bathwater” and will not abandon support for the nuclear plants and the jobs

of thousands of people at both facilities. He’s worried such things will not be considered as legislators rapidly seek to repeal the law; lawmakers on both sides of the aisle and from both chambers are already seeking to do so. “In the last two days there were calls for the repeal, but zero discussions of what to do afterward,” said Cirino, who is running for a state senate seat this fall. Legislation might be the plants’ best chance of replacing any lost HB 6 subsidies, too. The federal government would seem unlikely to help. The Federal Energy Regulatory Commission already had expressed its displeasure with the Ohio subsidies, even before the scandal broke. The Public Utilities Commission of Ohio would be unable to help even if it wanted to — the PUCO is headed by former FirstEnergy attorney Sam Randazzo — because it has nothing to do with Energy Harbor. Energy Harbor, previously known as FirstEnergy Solutions, took ownership of the plants when it emerged from bankruptcy. “I couldn’t speculate on what their options are. As you may know, generation of electricity is a deregulated space, and the PUCO has no involvement in how power plants operate,” said PUCO spokesman Matt Schilling. Perhaps Energy Harbor or its shareholders could go back to bankruptcy court. Though FirstEnergy and Energy Harbor exited the case as separate companies in February, that case actually remains open as administrative matters are addressed. “I’m sure the advisers for the debtor, including in New York City, are paying close attention to the politics in Ohio right now,” said well-known Cleveland bankruptcy attorney Jean Robertson.

Robertson said it would be extremely rare for a judge to revisit an approved plan of reorganization after the fact. She’s never seen it happen, she said. “I’ve never seen anything like this play out before. This is new for every professional involved in the case. This is new territory. … This is not how this usually ends,” Robertson said. Robertson said the federal bankruptcy judge who handled the case, Alan Koschik, is extremely thoughtful and likely would consider any new information presented to him. But for anything to happen, it would likely require a party in the case asking

“WE NEED TO START AFRESH WITH ANY NEW ENERGY LEGISLATION GOING FORWARD.” — Rep. Laura Lanese, R-Grove City

him to take action, she said, and so far that’s not happening. Energy Harbor’s largest shareholders, Avenue Capital Group and Nuveen Asset Management, are perhaps the parties that would be most affected if HB 6 is repealed. But neither has given any sign they’ll seek redress. Avenue Capital declined to comment on the matter, and Nuveen indicated it’s standing pat. “Nuveen’s investment in FirstEnergy Solutions and the subsequent Energy Harbor Corp. (ENGH) reflect an investment view and strategy that we pursued on behalf of our clients’ best long-term interests, including a positive outlook on the return potential of clean energy and the benefits it provides to society,” Nuveen head of municipal investments John Miller said

in a statement emailed to Crain’s. “At this time, we continue to see value in ENGH, which as an independent company has steady cash flows, low debt and stable operations.” FirstEnergy and Energy Harbor could try to find a way to get the matter before the PUCO, but that would require them working together when they are now supposed to be separate and independent. Unlike Energy Harbor, FirstEnergy is still a regulated utility under the purview of the PUCO, so getting the matter to become its issue, rather than Energy Harbor’s, could bring in the PUCO. Tom Chema, past chair of the PUCO, said he thinks the company will likely try that, but he doesn’t predict it will work. “What I would be thinking (as PUCO chair) is that FirstEnergy, the distribution company, is probably going to come to me with a purchase agreement with Energy Harbor. … They’ll have a purchase agreement with them that will result in a substantial rate increase. I’m assuming HB 6 is repealed,” Chema said. But that would be a tough sell politically, he predicted, and would put the entire cost of supporting the power plants on FirstEnergy’s ratepayers, rather than on all ratepayers in Ohio the way HB 6 did. A better route might be something along the lines of what Cirino suggested: another form of legislative support for the plants. Chema said he thinks supporting the plants is a good idea, even if it’s not politically popular at the moment. “From a policy point of view, I think subsidizing the nuclear power is a good idea. You want to have a portfolio approach to your electric power,

and nuclear power is a good part of a portfolio, particularly because of the relatively clean nature of the power,” Chema said. “That part (of HB 6) that subsidized the coal plants, I don’t see any public policy justification for. And the portion of the bill that eliminated support for renewables was just atrocious and ridiculous, and should’ve never been in that bill.” Subsidizing both nuclear and renewable power sources would have been unthinkable just a few years ago, as Ohio’s GOP-controlled Legislature has opposed subsidies in general and has been particularly hostile toward renewable energy subsidies. But that may change, and some GOP lawmakers working to repeal HB 6 are expressing support for renewables. “Renewable energy in the long run will save the consumer a lot of money, in addition to the job development,” said Rep. Laura Lanese, R-Grove City, who is working on legislation to repeal HB 6. She and other lawmakers, from both parties, are calling for Ohio to start over on a new energy policy. “We need to start afresh with any new energy legislation going forward,” Lanese said at a July 23 news conference. That’s what Cirino and other backers of the nuclear plants hope for, but he said that’s going to take some time. “You can’t create an energy bill for the state of Ohio in two or three months. It’s just not going to happen,” Cirino said. “Let’s take the rest of this year to start the process, and lets the house get itself in order and start again.” Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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CRAIN’S CLEVELAND BUSINESS

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S E P T E M B E R 3 - 9 , 2 018

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PA G E 17

SAN SOFIA

ple are either going to walk in and say ‘It’s not for me,’ or they’re going to say ‘Where do I sign up? I love it.’ ” The Rev. Scott Rosenstein, the congregation’s pastor, said the church plans to renovate its own space now that work on the apartments is near-complete. The makeshift chapel in the schoolhouse has been a construction passthrough, at times. Last year, Sunday services moved to Rosenstein’s Tremont home for a few months when the buildings didn’t have running water. “I know, for Dan, it would probably have been easier to knock it all down and start from scratch,” Rosenstein said. “He and his company have spent, I’m sure, a small fortune … on both keeping us there and keeping the historic character of these buildings.” Zion’s congregation, which once approached 600 people, is down to a core group of 10. Since mid-March, they’ve been holding virtual, video services due to the coronavirus pandemic. When members gather in person again, they’ll have company. The first tenant signed a lease at San Sofia in mid-July. Siegel hopes to fill both buildings before the end of the year. Crowther said the project could be a model for other redevelopment deals, though she cautioned that each historic church has to be examined on its own merits — and, ideally, some would be left largely open inside, perhaps remade as a restaurant or a performing-arts venue. “In my opinion, it’s all on the table here in the city of Cleveland. … We have so many historic churches, and the very finest of them even are struggling to survive,” she said. “I think that we have to hope that there are new ways to reuse churches, and we have to be open to new things like this residential approach. For these buildings to live, they have to adapt.”

From Page 1

The buildings now house 25 apartments — a dozen in the school and 13 in the church. A pair of two-bedroom units stretches into the former bell tower, beneath a 175-foot-tall spire. On the first floor of the former school, the church’s congregation still maintains a chapel under a long-term lease with the developer, for $1 a year. The project, called San Sofia Luxury Apartments, is an unorthodox approach to remaking a religious building in a region replete with vacant churches and shrinking congregations. Residential makeovers of churches aren’t unheard of, but they’re rare across the United States. And Zion’s transformation is all the more notable for allowing a small but stalwart group of worshipers to keep a 153-year-old tradition alive on-site. In preservation circles, the project isn’t without controversy. The Cleveland Landmarks Commission signed off on Siegel’s plans and worked with him to ensure that as many stained-glass windows as possible were retained. The exteriors of the buildings haven’t changed significantly. But the developer and the architect, Cleveland-based Arkinetics, dramatically altered the inside of a church recognized not only for its design but also for its history, as the site of a 1934 merger of Protestant denominations with German roots. “It’s an adaptive use that takes its inspiration from the historic character of the building, but it is not a pure historic-preservation approach,” said Kathleen Crowther, president of the Cleveland Restoration Society. “But that’s OK. We have to accept that there are varying degrees of preserving historic buildings and that different situations call for different approaches.” Every apartment at San Sofia — named after Siegel’s wife, Sofia Lucaj, who selected the paint colors, carpet, lighting and other finishes for the project — is different. Columns punctuate some living rooms and bedrooms. In a bathroom, an embellished capital sits outside a shower. Rather than putting in ductwork, which might have obscured exposed brick and wooden beams, the developer installed individually controlled, wall-mounted heating-and-cooling units in every room, along with smart thermostats. The tiniest living space, a 280-square-foot studio, is listed for $750 a month. Multi-story, two-bedroom units top out at 1,087 square feet,

A two-story apartment inside the former Zion schoolhouse has a living room lined with windows and a vaulted ceiling. | MICHELLE JARBOE/CRAIN’S

at an asking price of $2,500 a month. Siegel, whose Beachwood-based Integrity Realty Group owns roughly 7,000 apartment units in the region, described the project as a creative endeavor. Construction lasted two years. The costs are likely to exceed $3.5 million. “It’s more of an art project than a fully for-profit deal,” said Siegel, who had been eyeing Zion for years before the congregation decided to sell and who brought on residential developer Andrew Brickman as a partial owner. John Abbott, owner of Cleveland-based Arclight Glassworks, spent a year taking apart, rebuilding and reconstructing stained glass from the buildings. The interior demolition crew had removed all but the topmost panels from two-story windows along the sides of the church, to make way for clear glass that would let more natural light into the apartments. Abbott restored some of those panels as insets for the second-floor walkway. He used leftover stained glass to build a 14.5-foot-tall and 6-foot-wide feature, a window-style piece of artwork that now hangs, backlit, in an alcove over the former entrance to the nave. Using a mix of old and new glass, he replaced missing panels in the church and school. “There’s no other thing like that in Cleveland,” Abbott said of the renovated church. “It’s definitely going to please a specific demographic. Peo-

A decorative capital and part of an arch make for unusual features in an apartment bathroom in the former church.

A door surrounded by pops of contrasting colors leads into an apartment in the church’s former bell tower.

Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

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PANDEMIC

From Page 1

“And at the end of the day, really just outside the box thinking on how we can make health care as safe as possible in a very challenging and unpredictable time,” Rothstein said. The work has not only offered practical solutions but also prompted new partnerships that may not have otherwise existed. For instance, UH worked with MAGNET, the Manufacturing Advocacy and Growth Network in Cleveland, to quickly develop testing booths — structures that allow a practitioner to directly interact with a patient through a Plexigas wall and long laboratory-quality testing gloves. After providing nasal swab testing for a patient, the front can be wiped clean, helping to preserve PPE. MAGNET created a design for this booth less than two days after UH brought them the idea, Rothstein said. UH now has four of them in use throughout the system. Though people in the two organizations work to-

gether here and there, that collaboration may have never happened outside of COVID-19. “I think that’s one of the most exciting aspects of this is that there’s been a level of trust that and engagement forged,” said Brandon Cornuke, MAGNET vice president. “It’s created a ton of respect and trust and knowledge that I believe is going to pay dividends in our region in terms of innovation and collaboration for a long time.” Dr. Lara Jehi — chief research information officer for Cleveland Clinic, whose research background includes data research and predictive modeling — helped develop a risk prediction model for health care providers to forecast an individual’s likelihood of testing positive for COVID-19 and their outcomes. Jehi also noted a new nursing practice implemented in response to the pandemic: IV lines were extended to allow providers to access IV and other pumps from outside a patient’s isolation room, preserving PPE. But the resulting lines of tubing laying on the floor presented potential safety

issues, like tripping or line dislodgement. Prior to COVID-19, an advanced practice pediatric nurse at the Clinic had developed the High-Line — a system that can keep tubing off the floor — and was in the process of initiating a research study to assess its value. It’s in place today to help lower the average of 66 pieces of PPE that caregivers typically use each day when caring for patients requiring isolation in intensive care units. Innovations put in place during COVID-19, including a survey integrated into patients’ medical records to monitor symptoms, and other advances in research have the potential to help patients well into the future. The pandemic also has shown what can be achieved when innovators, researchers, industry, government and others set aside excuses (collaboration is too complicated, or there are insurmountable hurdles) and all work together, Jehi said. Now that COVID has helped show rapid, broad collaboration is possible and effective, she is hopeful that will help accelerate innovations in the future.

“It took having a common enemy, really. We all knew that COVID is what we need to fix,” Jehi said. “It’s a pandemic. It’s a life-threatening virus. It’s either it or us, and we have to figure it out.” With PPE shortage concerns top of mind, many organizations shifted gears to begin production of needed supplies while some researchers worked to find ways to maximize safe use of existing products. MAGNET assembled a supply chain of more than 20 partners across Ohio to help make face shields. Plus, the organization has helped create 3D-printed swabs locally, started down the path of creating a new type of ventilator and supported local production of more isolation gowns. At Case Western Reserve University, work at the Sears think[box] innovation center led to an invention that rapidly disinfects N95 respirators. Ian Charnas, director of innovation and technology at Sears think[box], put together a small engineering team that worked with medical researchers at CWRU to develop a decontam-

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ination chamber that uses UV-C light to effectively decontaminate the N95 masks. The Synchronous UV Decontamination System (SUDS) can decontaminate an N95 mask in just 60 seconds. Charnas thinks this is much more practical for many systems than other options like a hydrogen peroxide vapor chamber that can sterilize tens of thousands of N95 masks. That process requires a lot more staffing, as well as tracking systems to ensure that masks are returned to the same clinician who used it before. With SUDS, a clinician can exit an ICU room, place their N95 mask in the chamber to be decontaminated as they remove other PPE (cap, gown, booties, glove) and wash up. By the time they’re done, the door on the chamber pops open with a decontaminated mask. “I think every innovation team that’s worth their salt right now is working on COVID-related projects,” Charnas said. At University Hospitals, critical care physicians Drs. Amrita John and Shine Raju are exploring another way to decontaminate PPE: peracetic acid, a chemical disinfectant commonly used in the health care, food and water treatment industries. The husband-wife duo, who have been caring for a lot of really sick COVID-19 patients in intensive care, had a lot of discussions around the dinner table about the challenges they and other health care providers were facing, Raju said. “We both knew that when and if this does hit Ohio, we’re going to be in the thick of it,” John said. “We could already see how badly it was affecting our colleagues in New York. For me, I said this is our time. This is our time to prepare because we see what lies ahead. And to waste this time would be very foolish.” John and Raju began looking for ways to help and ultimately found the peracetic acid application. Because Ohio didn’t experience the surge that was first projected, UH hasn’t had to use this process on masks, but is currently using it to help decontaminate ventilators. The system currently has a dedicated room for this decontamination process, in which the peracetic acid is aerosolized and acts like a gas to reach difficult-to-clean areas of the ventilators. The peer review process for their research is ongoing, and the U.S. Food and Drug Administration is reviewing the peracetic acid method, which has been proven to work for five cycles of decontamination, for an emergency use authorization. UH collaborated with NASA’s Glenn Research Center to develop the peracetic acid method as well as an atomic oxygen method to decontaminate PPE for applications in aerospace and medicine. In the past few months, University Hospitals has developed relationships with industries “far beyond what we’d ever imagined would be considered a part of the health care environment,” Rothstein said. “And I think that that really will contribute to our ability to remain nimble, to remain really at the top of our innovation game, to be able to rely on these brilliant people who have different backgrounds than those of us who work in health care, to continue to solve the problems of how we deliver safe, effective and compassionate care to our patients.” Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre

18 | CRAIN’S CLEVELAND BUSINESS | July 27, 2020

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7/24/2020 3:09:35 PM

CRAIN’S CLEVELAND LOOK BACK | RUBBER COMPANIES LEAVE AKRON

When the rubber hit the road

crainscleveland.com

For more than 75 years, Akron was known as the Rubber Capital of the World. With more than 37,000 people working in the tire and rubber industry, the city was home to tire giants Goodyear, Firestone, General, Mohawk, Uniroyal Goodrich and B.F. Goodrich. Entire neighborhoods — Goodyear Heights and Firestone Park — were built to house workers. But by the 1980s, a major shift was underway as changes in the way tires were manufactured and foreign companies entering the market had uprooted the city’s hold on the industry. Still, just as the old B.F. Goodrich smokestacks rise up above the city, Akron holds onto to some of its rubber legacy and even eyes the future with a stake in polymer science. — Sue Walton

``THE HISTORY

``IN THEIR OWN WORDS

After Dr. Benjamin Franklin Goodrich established his rubber company in Akron in 1870 — the first large rubber business established in the city, according to historian Dave Lieberth’s accounts — Akron’s labor pool, abundant water, railways and the Ohio & Erie Canal soon lured others to base their companies here. Soon, other industrialists followed suit and Akron was home to the Big Four tiremakers: Goodyear, Firestone, B.F. Goodrich and General Tire. But by the mid-1950s, companies began expanding their manufacturing to other parts of the country. And when radial tires became the dominant choice in the market — replacing bias-ply tires — by the mid-1970s, tiremakers saw the need for big changes at their plants. With high price tags to convert old, multilevel bias plants to radial production, businesses found it cheaper to build new single-level factories. Companies were building plants in Alabama, Tennessee and the Carolinas. By the 1980s and ’90s, a wave of consolidation and the entrance of foreign players turned tiremaking into a global industry and moved headquarters and operations away from Akron. Firestone was bought by Bridgestone and took its headquarters to Tennessee. General Tire was acquired by Continental A.G., which pulled up stakes for Charlotte, N.C. B.F. Goodrich left the tiremaking business, combining its operations with Uniroyal, which in turn was bought by Michelin. Mohawk became part of Tokyo-based Yokohama Rubber Co. Ltd. That leaves Goodyear as the lone major tire company still headquartered in Akron. Goodyear in 2013 opened its new headquarter campus on Akron’s east side, where it employs about 3,000. Goodyear still makes its race tires at a plant in Akron, too.

“For a long time, it made sense to be based in Akron because all the competitors were there. You were close to the original equipment market and there was a lot of polymer knowledge. Now, every company wants to have a separate identity.” ——Harry Millis, tire industry analyst, to Rubber & Plastics News in 1996

At the East End development at Goodyear’s former, redeveloped campus, elements of the past remain, such as the rooftop sign. The company is the only major tiremaker whose headquarters remain in Akron and has built a new campus. | SHAYNE WYNN

``WHY IT MATTERS TODAY Despite the major manufacturing being long gone, Akron hangs on with pride to its reputation as the Rubber City. And there’s still plenty of ties to the industry left in Akron to justify that claim. As the rubber industry rose in Akron, so did the University of Akron’s College of Polymer Science and Polymer Engineering, which — although taking some hits in recent years — still holds a reputation as one of the premier polymer programs in the world. How changes at the university amid drastic budget cuts and a reorganization will affect the program — which will lose its status as a college, instead becoming a school — is yet to be seen, but

the industry still looks to Akron for polymer expertise. That’s evidenced by how many tire companies have research and development facilities in the Greater Akron area. Goodyear and Bridgestone are the big names with big R&D centers that employ up to 1,000 people each. But smaller tiremakers — such as Hankook Tire America, Nexen Tire America Inc., American Kenda Rubber, Giti Tire and Triangle Tires — have technical facilities in and around Akron, too. And Bridgestone, signaling Akron’s legacy as the Rubber City, last year announced an invigorated wave of manufacturing in the city, where it’s building an 80,000-squarefoot race tire plant that was scheduled to begin production by the end of this year.

“You had new owners of companies and everybody wanted to put their own stamp on the business. The international companies wanted to do away with the cultures that had been built up in Akron.” ——Jim Novak, then director of communications for Conti General, to Rubber & Plastics News in 1996

“Even when (companies were closing plants), there was nothing we could do. Multistoried plants just couldn’t compete.” ——Kenneth Coss, retired United Rubber Workers president, to Rubber & Plastics News in 1996

“There’s research institutes, government agencies, associations; there really is a great network here. And it makes a lot of sense to be here if you’re in the polymer industry.” ——Bernard Rzepka, then A. Schulman president and CEO, to Crain’s in 2016

THE WEEK THIS IS BIG: Federal officials charged Ohio House Speaker Larry Householder and four political associates in a racketeering conspiracy involving almost $61 million in bribes to secure a $1.5 billion bailout of two nuclear power plants now owned by Energy Harbor Corp. Efforts are accelerating to repeal House Bill 6, the law at the scandal's center. See story, Page One, and editorial, Page 8. MONEY FLOWS: TCF Bank pledged to lend minority and women small businesses $1 billion over the next five years in markets that include Cleveland. The Detroit-based bank also is pouring $10 million into a grant program to help low-to-moderate income home buyers with up to $3,000 in assistance for making down payments. TCF will make the loan fund available to

in Mayfield Heights to Driftwood Restaurants & Catering of Cleveland. If the purchase agreement is consummated, Driftwood said, it will renovate Landerhaven, 6111 Landerhaven Drive. The deal would be a major expansion for Driftwood.

Ohio House Speaker Larry Householder has been charged for allegedly being part of a $61 million racketeering conspiracy. | WIKIPEDIA COMMONS

minority and women-owned businesses across its main markets in Detroit, Minneapolis, Chicago, Cleveland and in Grand Rapids and Flint, Mich.

END OF AN ERA: Executive Caterers owner/operator Harlan Diamond has agreed to sell the business and its landmark Landerhaven location

HOWDY, PARTNER: Dollar Bank was announced as the new retail banking partner of the Indians. For the Pittsburgh-based bank with more than $9 billion in assets, that means a multiyear partnership that will include Dollar Bank-branded ATMs and signage in and around Progressive Field. It also signifies that Cleveland-based KeyBank isn't an Indians partner for the first time since Progressive Field opened in 1994.

Publisher/editor Elizabeth McIntyre (216) 771-5358 or emcintyre@crain.com Group publisher Mary Kramer (313) 446-0399 or mkramer@crain.com Managing editor Scott Suttell (216) 771-5227 or ssuttell@crain.com Assistant managing editor Sue Walton (330) 802-4615 or swalton@crain.com Creative director David Kordalski (216) 771-5169 or dkordalski@crain.com Web editor Damon Sims (216) 771-5279 or dasims@crain.com Assistant editor Kevin Kleps (216) 771-5256 or kkleps@crain.com Senior data editor Chuck Soder (216) 771-5374 or csoder@crain.com Editorial researcher William Lucey (216) 771-5243 or wlucey@crain.com Cartoonist Rich Williams REPORTERS

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits. (216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter. (216) 771-5437 or michelle.jarboe@crain.com Rachel Abbey McCafferty, Manufacturing/energy/ education. (216) 771-5379 or rmccafferty@crain.com Jay Miller, Government. (216) 771-5362 or jmiller@crain.com Jeremy Nobile, Finance/legal/beer/cannabis. (216) 771-5255 or jnobile@crain.com Kim Palmer, Government. (216) 771-5384 or kpalmer@crain.com Dan Shingler, Energy/steel/auto/Akron. (216) 771-5290 or dshingler@crain.com ADVERTISING

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Customer service and subscriptions: (877) 824-9373 or customerservice@crainscleveland.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com

Crain’s Cleveland Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain President KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Editorial & Business Offices 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 (216) 522-1383 Volume 41, Number 27 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the first issue in January, July and September, the last issue in May and the fourth issue in November, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2020 by Crain Communications Inc. Periodicals postage paid at Cleveland, OH, and at additional mailing offices. Price per copy: $2.00. Postmaster: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. 1 (877) 824-9373. Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, MI, 48207-9911, or email to customerservice@crainscleveland.com, or call (877) 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax (313) 446-6777.

July 27, 2020 | CRAIN’S CLEVELAND BUSINESS | 19

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7/24/2020 2:18:39 PM

JOIN US VIRTUALLY AS WE CELEBRATE THE 2020 EXCELLENCE IN HR FINALISTS AND WINNERS IN THIS TRIBUTE TO NORTHEAST OHIO’S LEADING HUMAN RESOURCES PROFESSIONALS.

AUGUST 19 | 11 A.M. – NOON

! w e N

New this year will be a discussion on inclusion and diversity in the workplace, kicked off by keynote presenter Peggy Zone Fisher, president and CEO at The Diversity Center of Northeast Ohio.

Congratulations TO THE 2020 FINALISTS AND WINNERS! OVERALL EXCELLENCE, INDIVIDUAL, NONPROFIT/GOVERNMENT FINALISTS Jason Welsh Director, Human Resources Cleveland Clinic Rehabilitation Hospital, Edwin Shaw

OVERALL EXCELLENCE, INDIVIDUAL, SMALL PRIVATE WINNER Christine Peters Director of People Operations Willory

Monica K. Brown Vice President, Human Resources & Administration Cleveland Foundation

OVERALL EXCELLENCE, TEAM, NONPROFIT/GOVERNMENT FINALISTS Federal Reserve Bank of Cleveland, People and Culture Department

Tamatha Belton Sr. Director of Human Resources Cleveland Institute of Music OVERALL EXCELLENCE, INDIVIDUAL, MEDIUM-LARGE PRIVATE FINALISTS Mary E. Miles Chief People Officer Brennan, Manna & Diamond Lesa Evans Chief Human Resources Officer MAI Capital Management

Cuyahoga Metropolitan Housing Authority (CMHA) Human Resources Department The MetroHealth System OVERALL EXCELLENCE, TEAM, PUBLIC WINNER TravelCenters of America HR Team

Mike Nikolaus Chief Human Resources Officer Cleveland Browns

EMPLOYEE ADVOCACY, INDIVIDUAL WINNER Robert L. Smith, Ph.D. Director, Medical Staff Assistance Programs The MetroHealth System EMPLOYEE ADVOCACY, TEAM WINNER Earnest Machine Culture and Talent Development Department RISING STAR WINNER Hailee Houston Business Partner, Human Resources The MetroHealth System ACCIDENTAL HR, NONPROFIT WINNER Diana Rosa Chief Quality Officer Koinonia ACCIDENTAL HR, PRIVATE WINNER Evelyn Bruce Chief Innovation Officer Bonnie Speed Delivery Inc.

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