2012 northeast ohio year-end regional economic development report
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2012 Northeast Ohio Year-End Regional Economic Development ReportTRANSCRIPT
DRIVINGG R O W T H
rebuild innovate
energizethrive
YEAR-END REGIONAL ECONOMIC DEVELOPMENT REPORT
N O R T H E A S T O H I O 2 0 1 2
2012 was a pivotal year for Northeast Ohio. National and international attention during the presidential
election campaign underscored the significance of this region to not just Ohio but the entire nation, as
well as the rest of the world. “As the Economy Booms in Northeast Ohio, Which Candidate Will Reap
the Benefit?” asked PBS, just one of many media outlets that focused on the resurgence of our regional
economy. By summer, the national media had shifted from talking about Northeast Ohio’s struggling
economy to applauding its rebound.
Our future as a home for new technology was emphasized by President Obama in his 2013 State of the
Union address when he cited the strategic placement of the nation’s pilot manufacturing innovation
institute, the National Additive Manufacturing Innovation Institute (NAMII), in Youngstown in 2012.
“A once-shuttered warehouse is now a state-of-the-art lab where new workers are mastering the 3D
printing that has the potential to revolutionize the way we make almost everything,” the President
shared. With our rich history of manufacturing excellence, Northeast Ohio is well-equipped to take the
lead on this advance.
Throughout our 18-county region, strategic investments in existing industries, emerging clusters,
entrepreneurs, companies and communities sustained and fueled growth in 2012. Preparation met
opportunity as the region successfully leveraged the booming oil and gas industry, the growing
healthcare/biotechnology market and the reemergent demand for manufacturing excellence. Positive
indicators included an unemployment rate that was consistently lower than the national average and
projections that our manufacturing output would outpace that of the nation for the rest of the decade,
reversing a 20-year trend.
The resilience of Northeast Ohio’s economy is attributable, in part, to its unique economic development
ecosystem – a network of partners including private-sector economic development organizations, the
public sector, investors, lenders, incubators, accelerators, educators, mentors, philanthropic organiza-
tions and others dedicated to fostering economic health. For practical purposes, this report does not
enumerate the results of the countless organizations that are engaged in economic development in
Northeast Ohio. However, we recognize the integral role that each of these entities has played, and
continues to play, in the region’s revival.
This report provides an overview of the combined impact of the development activities and achieve-
ments of 10 private-sector economic development organizations that are part of the larger ecosystem.
Though their capabilities are diverse and they each fulfill a specialized role, these organizations work
synergistically toward common goals and demonstrate the positive impact that can be achieved
when organizations work together. The focused collaboration and teamwork among these diverse
organizations have produced profound results that continue to bolster the strength and resilience of
the Northeast Ohio economy.
While much has been accomplished, we recognize that much remains to be done. With an eye toward
the vast spectrum of opportunities on the horizon, this report also looks at imperatives for the region
going forward.
2012: Capitalizing on Assets and Opportunities
Executive Summary 1
Unique Culture of Collaboration and Teamwork 2
How Northeast Ohio Grew in 2012 4
Manufacturing Rebound 4
Oil and Gas Boom 6
Healthcare/Biotech Momentum 7
Development and Revitalization Investment 8
Entrepreneurial Growth 9
Emerging Clusters 10
2012 Overview: Strengthening Our Economic Resilience 12
Performance Across the Region 12
West: Erie, Huron and Lorain Counties 13
North: Cuyahoga, Geauga and Lake Counties 14
Central: Medina, Portage and Summit Counties 16
South and East: Ashland, Ashtabula, Columbiana, Mahoning, Richland, Stark, Trumbull, Tuscarawas and Wayne Counties 17
Initiatives Powering the Progress 18
Business Attraction 18 Business Growth and Development 22
Entrepreneurship 24
Technology, Innovation and Commercialization 26
Regional Marketing: Building our Brand 30
Moving Forward: Imperatives for Northeast Ohio 32
Business Growth and Development
Jobs: 33,577
Payroll: $1.5 billion
Capital Investment: $943 million
Entrepreneurship
Jobs: 293
Payroll: $17.6 million
Capital Attracted: $112 million
2 0 1 2 H I G H L I G H T S
Total Impact
Jobs: 36,383
Payroll: $1.7 billion
Capital Investment: $1.8 billion
Business Attraction
Jobs: 2,407
Payroll: $94 million
Capital Investment: $501 million
Technology, Innovation and Commercialization
Jobs: 717
Payroll: $46.7 million
Capital Investment: $277.5 million
TA B L E O F C O N T E N T S
Sources: The Fund for Our Economic Future analysis of data reported by grantees for the calendar year 2012. Additional data submitted by JobsOhio, Team NEO and economic development organizations in 18 counties across Northeast Ohio. In certain cases in which multiple organizations worked on the same project, data may be included in more than one section of this report.
O F R E G I O N A L E C O N O M I C D E V E L O P M E N T I M P A C T
1
AshtabulaLake
Geauga
Portage
Stark
Wayne
SummitMedina
Cuyahoga
Lorain
Ashland
ONOAKROO
CANTONNN
YOUNGGGSTOWNG
Richland
Huron
Erie
Tuscarawas
Trumbull
Mahoning
Columbiana
LANDLCLEVELLLORRRAINRA
LDLMAAANSFIELANSFIEL
Our extensive economic development ecosystem ensures that
necessary resources are available for cluster building, research
and development efforts, business creation, attraction, expan-
sion, acceleration and much more. Various partners within the
ecosystem collaborate on a case-by-case basis to create the most
effective solutions. Working in concert, these entities help to
create and nurture a healthy, thriving economy.
While many development activities are best addressed regionally,
others are better managed locally. Almost every project involves
the teamwork of the economic development organizations
featured in this report, local communities and governments, as
well as programs of the state such as JobsOhio and Ohio Third
Frontier. Every example reflects the skill of these organizations in
creating collaborative relationships that yield significant results.
FOR EXAMPLE:
· MAGNET partnered with the NASA Glenn Research Center,
the City of Cleveland and Cuyahoga County on a program
providing small- and medium-sized manufacturers with 40
hours of no-cost access to the subject-matter experts at NASA
Glenn. The scientists helped to resolve technical issues with
new and existing products.
· The Greater Cleveland Partnership, Team Lorain County,
Youngstown/Warren Regional Chamber, Stark Development
Board and Greater Akron Chamber joined forces to create
Northeast Ohio’s first collaborative, region-wide retention and
expansion program through a grant awarded by Team NEO.
Unique Culture of Collaboration and Teamwork Economic development is a broad and multifaceted discipline
encompassing public and private sectors. Northeast Ohio is
both fortunate and unique in that we have an unusually strong
economic development ecosystem sustained by equally robust
philanthropic support. Few, if any, regions in the US enjoy this
level of philanthropic support for economic development.
· Jumpstart, along with the Council of Smaller Enterprises,
the Northeast Ohio Hispanic Chamber of Commerce and
the Urban League of Greater Cleveland, helped launch the
Goldman Sachs 10,000 Small Businesses program at
Cuyahoga Community College. This nationwide initiative is
dedicated to helping companies create jobs and generate
revenue by providing education, resources and funding.
· NorTech worked with JumpStart, Lorain County Community
College and MAGNET to launch the Speed to Market Accel-
erator, a federally funded regional collaboration providing
services to accelerate the commercialization of products and
services for companies in the advanced energy and flexible
electronics industry clusters.
· BioEnterprise joined The America21 Project to launch the
country’s first Minority Biomedical Entrepreneurship Confer-
ence, an event dedicated to promoting and accelerating
underrepresented minority healthcare innovation and
entrepreneurship.
Efforts such as these illustrate the depth and breadth of what
can be accomplished when organizations and individuals come
together for a common purpose. By leveraging each partner’s
unique capabilities, expertise and networks, the economic
development ecosystem consistently provides the resources
and environment necessary for sustainable growth throughout
the region.
BIOENTERPRISEBioEnterprise is a business formation, recruitment and acceleration
initiative designed to grow healthcare companies and commercialize
bioscience technologies. bioenterprise.com
GREATER AKRON CHAMBERThe Greater Akron Chamber attracts, retains and creates jobs by
promoting the assets of Greater Akron. Its economic development
team works directly with companies to increase business investment
in the area. greaterakronchamber.org
GREATER CLEVELAND PARTNERSHIPThe Greater Cleveland Partnership mobilizes private-sector leadership,
expertise and resources to create attractive business conditions that
create jobs, grow investment and improve the region’s economic
prosperity. gcpartnership.com
JUMPSTART JumpStart Inc. accelerates the successes of diverse
entrepreneurs, their high-growth companies and
the ecosystems supporting them. jumpstartinc.org
Twitter: @JumpStartInc
MAGNET (Manufacturing Advocacy & Growth Network)
The mission of MAGNET is to support, educate and champion
manufacturing in Northeast Ohio with the goal of transforming
the region’s economy into a powerful, global player.
manufacturingsuccess.org
NORTECHNorTech advances the revitalization of Northeast Ohio by accelerating
the growth of regional innovation clusters in targeted emerging
industries, which currently are advanced energy, flexible electronics
and water technologies. nortech.org Twitter: @NorTech
STARK DEVELOPMENT BOARDThe Stark Development Board retains, expands and attracts
business investment in Stark County. The Board provides financing
through federal and state programs, location and building searches,
government relations coordination, economic development incentive
packaging and infrastructure planning. starkcoohio.com
TEAM LORAIN COUNTYTeam Lorain County (TLC) is a private/public economic development
partnership dedicated to increasing business investment in Lorain
County. TLC works to recruit new employers and facilitate the
expansion of its existing employment base. teamloraincounty.com
TEAM NEOTeam NEO advances Northeast Ohio’s economy by marketing the
region’s assets, attracting new businesses, building collaboration
among economic development organizations and linking the region
to the state’s JobsOhio program. clevelandplusbusiness.com
Twitter: @TeamNEO
YOUNGSTOWN/WARREN REGIONAL CHAMBERThe Youngstown/Warren Regional Chamber is the single point of
contact for business-related services. It assists companies by providing
strategic information, identifying available buildings or land sites and
securing state and local incentives. regionalchamber.com
ORGANIZATIONS CONTRIBUTING TO THIS REPORT
Accelerate Growth of Innovation Clusters
Connect Biomed Companies to Growth Resources and Funding
Retain/Grow our Largest Industry (Manufacturing)
Accelerate Entrepreneurial
Success
Primary Funding: Businesses, Foundations, State of Ohio
Develop Business Statewide
Attract New BusinessesAdvance Regional
Strategy
Optimize Regional Marketing
Improve NEO’s AssetsExpand/Retain Businesses
Chambers of Commerce, Local Government,
Economic Development Organizations
GOAL:Accelerate
NEO Economic Growth
U N I Q U E C U LT U R E O F C O L L A B O R AT I O N A N D T E A M W O R K
2 3
Manufacturing reboundManufacturing has historically been the driving force of North-
east Ohio’s economy. Though the manufacturing segment was
hit hard by the 2007 recession both regionally and nationally,
that same base is playing a vital role in Northeast Ohio’s recov-
ery. We continue to make things here, but our manufacturing
capabilities have evolved to include the fabrication of a much
more diverse array of products. There has been a fundamental
shift from traditional manufacturing – primary metals, coal and
minerals – to advanced manufacturing in areas such as specialty
chemicals and medical devices. In total, Northeast Ohio manu-
facturing output is outpacing that of the nation, with projected
growth of 39 percent from 2010 to 2020 compared with 33
percent for the US as a whole.
How Northeast Ohio Grew in 2012The collaborative efforts of the economic development organizations
featured in this report resulted in 36,383 jobs, $1.652 billion in payroll
and $1.757 billion in capital investment in 2012. In terms of equity capital
attraction, the region bucked the national trend, drawing healthy
commitments from angel and venture capital investors alike: 108 Northeast
Ohio companies attracted $212 million in equity throughout 2012.
Bridgestone Technology Center (Akron) | $100 million creative space housing 450 engineers and technicians
Chesapeake Consortium (Columbiana County) | $900 million natural gas processing facility
Eaton Corporation (Cleveland) | $170 million headquarters campus for 700 employees
General Motors (Lordstown/Parma) | $220 million upgrades to Chevy Cruze assembly plant and metal center
Global Center for Health Innovation (Cleveland) | $465 million medical mart – the nation’s first
University Hospitals (Northeast Ohio) | $1.02 billion expansion to hospital plus research and rehab, cancer care and diagnostics facilities
Cleveland Horseshoe Casino (Cleveland) | $450 million entertain-ment venue opened May 2012 in Cleveland’s Public Square
Portage Crossing (Cuyahoga Falls) | $60 million retail development slated for 2013 completion
Alcoa (Cleveland) | $100 million rebuilding of a 50,000-ton, seven-story forging press
Timken (Canton) | $310 million plant expansions to capitalize on company’s specialty steel production and demand from Marcellus and Utica Shale drilling
EXAMPLES OF THE MORE THAN $12 BILLION IN MAJOR CAPITAL INVESTMENTS (2009-2014)
investment Businesses believe in the strength
and spirit of Northeast Ohio.
Northeast Ohio’s economy benefited from noteworthy growth in manufacturing, oil and
gas, healthcare/biotech, development and revitalization investments, entrepreneurship and
emerging clusters as well as national media coverage of our progress. Examples of specific
efforts contributing to this growth follow.
Examples of manufacturing growth supported by regional economic development organizations in 2012:
· With support from MAGNET and the Akron Global Business
Accelerator, Cleveland-based Sterionics Inc. is moving forward
with the development and commercialization of a pen-shaped
cold-plasma device with the potential to change the way
healthcare providers treat wounds. Sterionics’ research efforts
have been backed by grants from organizations including
Great Lakes Innovation and Development Enterprise (GLIDE),
the Akron BioInnovation Fund, the Lorain County Community
College Foundation’s Innovation Fund and the National Sci-
ence Foundation. The company is collaborating with
Akron General Health System and Kent State University on
product testing.
· Newell Rubbermaid plans to invest $25 million to expand
manufacturing capacity at its injection molding plant in the
village of Mogadore in Summit County, and $25 million to
construct an 800,000 square-foot distribution center in the
Tallmadge/Brimfield Township Joint Economic Development
District in Portage County. The million-square-foot Mogadore
facility will add 140 jobs to its current 700, while the
Tallmadge/Brimfield plant will create 79 new jobs.
· General Motors committed to investing $200 million in its
Lordstown assembly plant and $20 million in its Parma metal
center. This investment will support tooling and equipment to
manufacture the next-generation Chevrolet Cruze, retaining
5,000 jobs.
2012 TOTAL REGIONAL ECONOMIC IMPACT
Source: The Fund for Our Economic Future analysis of data
reported by grantees for the calendar year 2012. Additional
data submitted by JobsOhio, Team NEO and economic devel-
opment organizations in 18 counties across Northeast Ohio.
In certain cases in which multiple organizations worked
on the same project, data may be included in more than
one section of this report.
*Capital invested and attracted
36,383
$1
.7 BILLION
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
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PITAL INVESTM
ENT
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$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
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JOBS PAYROLL$1
.8 BILLION
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*
H O W N O R T H E A S T O H I O G R E W I N 2 0 1 2
4 5
oil and gas booMAs the significance of the Utica Shale deposits continues to
grow, Northeast Ohio is becoming a location of choice for
companies seeking to capitalize on natural and liquid gas.
Investments of more than $5 billion already have been pledged
to shale-related projects within 40 miles of Youngstown and
Canton. Supporting businesses are flocking to Northeast Ohio
as well, further bolstering the job creation efforts, revenue and
overall economic health of the region.
Just as significantly, the oil and gas boom occurring in other
parts of the US is driving growth among our legacy manufactur-
ers – big players in the steel industry that serve vital roles in the
supply chain. Republic Steel, U.S. Steel, Timken Co. and V&M
Star are among the myriad companies investing in their opera-
tions to support oil and gas companies as activity increases.
Examples of oil and gas industry growth supported by economic development organizations in 2012:
· In Lorain, Republic Steel moved forward with its plans to
invest $85.2 million in an electric arc furnace and related
equipment, just three years after shutting its blast furnace.
This investment is expected to bring 450 new jobs and
more than $1 billion in annual economic activity to Ohio. In
addition, U.S. Steel spent $100 million expanding its plant to
make seamless pipes for oil and gas production. The com-
pany’s investment added 150 jobs to the mill.
· The Timken Company, headquartered in Canton, moved
forward with a $225 million investment in its Faircrest Steel
Plant to improve productivity, expand its product range and
increase capacity to serve growing demand for specialty
steel alloy bars. The company is also building a $42 million,
two-story office complex adjacent to its existing facility near
the Akron-Canton Airport. The new 160,000-square-foot
building will accommodate nearly 1,000 employees when it is
completed in the fourth quarter of 2013.
· The $1.1 billion investment by Paris-based Vallourec in its
Youngstown steel rolling mill, V&M Star, began to pay off
for the Mahoning Valley in 2012 as its first steel pipe came
off the line in the fourth quarter. The mill, which employs
350 workers, has begun production to support shale oil and
gas operations.
· Chesapeake Energy Corporation purchased 284 acres at the
Beck Industrial Commerce Center in Louisville, to accommo-
date its expanding workforce and growing operations in the
state. Chesapeake also joined M3 Midstream LLC (“Momen-
tum”) and EV Energy Partners LP in making a $900 million
investment to build the largest integrated midstream service
complex in eastern Ohio. Columbiana County will house the
state-of-the-art cryogenic natural gas-processing facility of
this complex.
· Exterran, a global leader in oil and gas services, is investing
$13.2 million in the construction of a 65,000-square-foot
manufacturing facility in Youngstown. This project brings 100
new jobs representing $4.9 million in payroll to the region
and is expected to benefit the regional economy by nearly
$500 million and the Youngstown economy by $335 million.
· Valerus, a world leader in providing oil and gas handling and
processing solutions, is partnering with Brilex Industries to
manufacture oil and gas production equipment to build surface
facilities for customers operating in the Marcellus and Utica
shale plays. The partnership will create more than 30 local jobs
as it increases manufacturing at a Brilex facility in Youngstown.
HealtHcare/biotecH MoMentuMThe healthcare/biotechnology sector is growing at an amazing
pace, and Northeast Ohio is becoming the location of choice
for biomedical businesses from around the globe. With more
than 700 biomedical facilities, 60 hospitals, 230,000 healthcare
and bioscience workers, extraordinary manufacturing capabili-
ties, and billions of dollars in private and public investment,
the region offers an ideal environment for firms specializing in
healthcare, medical device manufacturing, biotechnology and
pharmaceuticals.
Central to Northeast Ohio’s strength in the biomedical sector are
the Cleveland Health-Tech Corridor, home to renowned health-
care institutions including the Cleveland Clinic and University
Hospitals Case Medical Center, as well as biomed and technology
firms, incubators and higher-education institutions; the Akron
Biomedical Corridor, which connects three world-class hospitals
with nationally recognized education, research and development
institutions and biomedical companies; and the Global Center
for Health Innovation (GCHI), formerly the Cleveland Medical
Mart, the world’s first marketplace for medical industry buyers
and sellers.
Work continued throughout the year on the GCHI, which is part
of the $465 million taxpayer-financed convention complex. The
facility is slated to open two months ahead of schedule, during
the summer of 2013. Tenants of the GCHI to date include Philips
Healthcare, GE Healthcare, Johnson Controls, the Healthcare
Information and Management Systems Society, the Cleveland
Clinic and University Hospitals.
The Utica Shale play is reenergizing
the Northeast Ohio economy, as oil- and
gas-related companies commit to sizable
investments. For example, V&M Star’s
$1.1 billion investment in Youngstown
created a new mill and 350 jobs.
$1.1 billion investment
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
vitality Strategic alliances pump new
potential into our future.
Other examples of healthcare/biotech industry growth supported by economic development organizations in 2012:
· BioEnterprise added 22 new companies to its portfolio, which
raised $235 million from venture capital, grant funding and
private equity sources.
· The Greater Akron Chamber partnered with the city of Akron
and venture partners Akron General Medical Center, Summa
Health Systems, Akron Children’s Medical Center, Northeast
Ohio Medical University (NEOMED) and the University of
Akron in the founding of the Austen BioInnovation Institute in
Akron (ABIA). An Ohio Center of Excellence for Biomedicine
and Healthcare, ABIA focuses on patient-centered innovation
and commercialization. The ABIA moved into its $13.3 million
headquarters, located in downtown Akron, in 2012.
· Multi-national Philips Medical Systems relocated a portion of
its Nuclear Medicine division from California to Cleveland,
bringing 100 jobs, $7.9 million in payroll and $2.6 million in
capital investment.
· The biomedical sector flourished as many companies advanced
the commercialization of their products. Among them:
Cervilenz Inc., Neuros Medical, Cryothermic Systems, Milo
Biotechnology and Checkpoint Surgical.
· Potentially life-saving clinical trials were launched throughout
the region by companies including Juventas Therapeutics,
SironRX, TheraVasc, SPR Therapeutics and Great Lakes
Pharmaceuticals.
The Global Center for Health Innovation represents the region’s ongoing commitment to growing our already thriving biomedical sector.
H O W N O R T H E A S T O H I O G R E W I N 2 0 1 2
6 7
Mr. Beams™ ReadyBright™ Power Outage Lighting System.
Both brands became consistent top sellers on the site as they
earned national media attention. ReadyBright, for example,
was named one of Good Housekeeping’s Very Innovative
Products of 2013 and was heralded as particularly useful for
those who had lost power during Hurricane Sandy. Wired’s
GeekDad blog gave a nod to the innovative young company
as well.
· The Innovation Fund, founded by the Lorain County Com-
munity College Foundation, is a regional fund focused on
supporting technology-based entrepreneurial endeavors and
emerging technology-based businesses. In 2012, grants total-
ing more than $1.5 million were awarded to 27 companies.
The Innovation Fund is supported and administered through a
regional and state network of higher education, government
and economic development partners to nurture a technology-
based entrepreneurial environment for wealth creation and
job growth in Northeast Ohio.
· Work continued on the Richard Desich SMART (Sensor/
Microsystems Advanced packaging and Reliability Testing)
Commercialization Center for Microsystems at Lorain County
Community College. The facility, funded by an Ohio Third
Frontier grant, supports entrepreneurs in the $100 billion
sensor technology industry by providing commercialization
support for MEMS (Micro Electronic Mechanical Systems)
products. Upon its opening in 2013, the SMART Center will
serve as a collaboration facility for university and industry
partners to access the complex set of modeling, testing and
verification tools critical to MEMS production.
renovation of the Market Block Building and the transforma-
tion of the Kresge Building into a facility for the Tech Belt
Energy Innovation Center.
· Youngstown’s downtown revitalization continued with devel-
opments such as Erie Terminal Place, a $9 million conversion
project that created residential and commercial space, and
restaurant expansions to accommodate growing clientele.
· The $450 million Horseshoe Casino Cleveland, Ohio’s first
casino, opened in May on Public Square in downtown
Cleveland.
· Site work began for Penn National’s Hollywood Slots at
Mahoning Valley Race Course in Austintown Township, a
150,000-square-foot facility slated to open in spring 2014.
This $125 million investment will create 1,000 direct
and indirect employment opportunities and nearly 1,000
construction jobs.
· Eaton Corporation completed construction of the new $170
million, 600,000-square-foot Eaton Center campus on a
53-acre site in Beachwood in February 2013. The site houses
700 employees.
· Bridgestone Americas opened its new $100 million technol-
ogy center in Akron in April. Four years in the making, the
tech center provides nontraditional working space designed
to inspire creativity among the 450 mechanical and chemical
engineers and technicians who work there on proprietary
advanced technology projects.
Entrepreneur/co-founder David Levine’s (above) risk paid off.
Wireless Environment’s products are outselling big-name
competitors online and earning national attention.
Shining stars
Cleveland’s Public Square is bustling with activity again, thanks in large part to the new $450 million Horseshoe Casino.
excitement Impressive new ventures keep
Northeast Ohio moving forward.
developMent and revitalization investMent From bustling downtown districts to suburbs and industrial
parks, development projects are breathing new life into North-
east Ohio’s residential and business communities. Spurred by the
palpable momentum of business and economic growth, inves-
tors and developers have joined forces to rejuvenate cities and
build new corporate headquarters; increasing consumer demand
is driving aggressive residential construction; and recent legisla-
tion loosening restrictions on gaming is bringing new entertain-
ment venues to the area.
Examples of development and revitalization investment supported by economic develop-ment organizations in 2012:
· Goodyear Tire & Rubber Co. completed construction of its
new global headquarters in Akron, which opened in early
2013. About 2,000 employees are working in the seven-story,
639,000-square-foot facility.
· The city of Kent has announced public and private investment
exceeding $100 million in the redevelopment of downtown
Kent. The project has created more than 950 construction
jobs and 700 new jobs in the city’s downtown district.
· An influx of new businesses, retail shops and dining establish-
ments signaled the revitalization of downtown Warren,
where development projects include the $2.5 million historic
EntrEprEnEurial GrowthEntrepreneurial enterprises are truly the heart and soul of
Northeast Ohio. Our region’s rich legacy of innovation and
entrepreneurship has been changing landscapes and lifestyles
since the 1800s, led by visionaries such as Henry Sherwin and
Edward Williams, who in 1866 founded not only a business but
an industry as they identified a market need for ready-to-use
paint, and Dr. Benjamin Franklin (B.F.) Goodrich, who brought
his small rubber company to Akron in 1870 to lay the foundation
for the global giant that introduced the world’s first automobile
tire, aircraft tire and spacesuit.
Modern-day entrepreneurs demonstrate similar vision: With sup-
port from regional investors and the state, Dr. Raymond Kralovic
turned his innovative ideas for sterilization into a $1 billion
global company – STERIS Corporation – and helped establish
Northeast Ohio as a center for medical technologies and devices.
Inventors such as Lew Urry, designer of the first commercially
viable alkaline battery, and GOJO Industries founders Goldie
and Jerry Lippman, creators of Purell® hand sanitizer, reflect our
region’s spirit of innovation as well.
How does Northeast Ohio nurture promising, high-potential
enterprises? The region’s economic development ecosystem
provides resources and support throughout every stage of their
development. From investors and micro-lenders to incubators,
accelerators and economic development organizations, the net-
work of eager collaborators runs deep, as the ecosystem pulls
together to help young businesses thrive.
The ecosystem also includes a growing bank of angel investors,
who provide startups with seed and early-stage funding to fill
the gap between investments from family and friends and those
of venture capitalists. In 2012, more than half of the companies
that received equity investments were funded in part by angel
investors – some who are independent investors and others
members of organized angel funds, which have the bandwidth
to consider a larger number of proposals across a broader diver-
sity of industries.
Examples of entrepreneurial growth:
· Deloitte named direct digital marketing firm Knotice one of
the fastest-growing technology companies in America (#182
on Deloitte’s 2012 Technology Fast 500™). The Akron-based
company, which also has offices in Seattle, grew to $7.8 bil-
lion in revenue (from $3.2 billion in 2007) and hired its 100th
employee in 2012.
· Solon-based Wireless Environment LLC, maker of environ-
mentally friendly LED lighting systems, took Amazon.com
by storm with its Mr. Beams™ line of wireless lights and
8 9
eMerging clustersEmerging clusters – groups of high-potential businesses in
up-and-coming industries – play a strong role in Northeast
Ohio’s economic revitalization as they enhance the potential for
accelerated and sustained growth by diversifying our industry
base. Among Northeast Ohio’s emerging clusters are advanced
energy, water technologies and flexible electronics. Partners
within the regional economic development ecosystem support
the growth of these clusters through a variety of efforts.
Notably, NorTech has developed a nationally recognized model
to support and strengthen emerging clusters. The Cluster Accel-
eration Model identifies emerging industries likely to evolve into
regional innovation clusters, develops industry-driven roadmaps
that position the region to capture significant economic growth
within seven years, accelerates the growth of regional innova-
tion clusters and provides metrics to guide the evolution of
these services.
- Lake Erie Energy Development Corporation (LEEDCo) has
launched Project Icebreaker, its initiative to build and install
the first offshore freshwater wind project in North America,
thanks to a $4 million grant awarded by the US Department
of Energy in December and $1 million in funding from
LEEDCo’s partners. Icebreaker is one of only seven projects
to earn federal funding.
· Water technologies – a new focus cluster – now includes 54
organizations within the automation and controls, sorbents
and corrosion protection sectors. This cluster accounts for ap-
proximately 338 employees and $72 million in revenue. These
three sectors could grow to 3,510 new jobs by 2019.
· Flexible electronics is a new science and manufacturing op-
portunity to print or deposit ultra-thin electronic components
and devices on materials that flex, bend, fold or stretch.
Northeast Ohio has the only innovation cluster in flexible
electronics recognized and funded by the federal government.
Kent Displays and its Boogie Board, the breakthrough work
of the Liquid Crystal Institute at Kent State – which spawned
Kent Displays – and the globally recognized advances in
polymer science at The University of Akron and Case Western
Reserve University are just a few examples of Northeast Ohio’s
assets in this cluster. By 2019, flexible electronics could be a
$42 billion global market with 3,020 jobs.
The $5 million Project Icebreaker aims to bring North America its first offshore freshwater wind project.
new horizons Northeast Ohio looks toward the future with drive, determination and unwavering optimism.
RECOGNITION OF REGIONAL PROGRESSWith so much investment, development and progress going on in the region, it was easy to
write the story of Northeast Ohio’s resurgence in 2012. The presidential election provided
the ideal opportunity to capitalize on a growing swell of publicity surrounding Ohio, as
journalists focused on the sway of the swing state and the influence its economy would
have on voters.
The Regional Marketing Alliance of Northeast Ohio (Cleveland Plus) continued its national
media relations campaign, resulting in approximately 100 media placements in 2012. Third-
party research revealed that Northeast Ohio received the most favorable coverage of six
Midwest regions. The team’s national media relations strategy touted the more than $12
billion in public and private investment projects taking place in the region through 2014.
Leveraging an in-depth knowledge of manufacturing, healthcare, entrepreneurism, and oil
and gas, the team sent information to more than 200 economic and political reporters. In
addition, the alliance led teams of executives and political scientists on media trips to New
York and Washington. They also repeatedly used social media to link followers with articles
evaluating Ohio’s economy.
Examples of emerging cluster growth supported by economic development organizations in 2012:
· Northeast Ohio is home to more than 500 companies in the
advanced energy industry. Promising sectors include energy
efficiency, energy storage, fuel cells, smart grid, and waste
and biomass to energy. The potential of these five sectors
alone is $50 billion in market opportunities and 9,560 new
jobs over the next seven years.
- Korean industrial and electronic conglomerate LG invested
$45 million to acquire a 51 percent share of North Canton-
based Rolls-Royce Fuel Cell Systems (US) Inc., renaming the
company LG Fuel Cell Systems. The company continues the
research and development, testing and commercialization
of solid oxide fuel cell technology for industrial, commercial
and utility power generation applications.
Regional Marketing Allianceof Northeast Ohio
10 11
2012 Overview: Strengthening Our Economic ResilienceThe promise of a growing, thriving economy powers the ongoing efforts
of economic development organizations throughout Northeast Ohio.
Our robust economic development ecosystem proactively supports every
kind of business – large and small, established and startup, domestic and
international – through investment, incubation, acceleration, education,
mentorship and other development initiatives.
Cities, counties and communities across Northeast Ohio bustled
with economic activity in 2012. Collaboration ran deep, as eco-
nomic development organizations, with support from the state
of Ohio and its programs – JobsOhio and Ohio Third Frontier
– embraced opportunities to work together toward collective
goals, whether to help a single business, a cluster, a community
or the region as a whole.
Following is a snapshot of the forces that drove attraction,
expansion and development activities across Northeast Ohio in
2012, along with stories illustrating exceptional successes.
OUT WEST: LORAIN, ERIE AND HURON COUNTIESIn our western counties, healthcare, manufacturing and tourism
showed strong growth in 2012. Several hospitals expanded
in response to growing patient demand, both advanced and
traditional manufacturing gained momentum (see details about
Republic Steel’s $85.2 million investment and U.S. Steel’s $100
million expansion on page 6), and Lake Erie Shores & Islands
tourism flourished among locals and visitors alike.
HEALTHCARE FACILITIES INVEST IN DEVELOPMENT PROJECTS
Healthcare investments played a key role in the economic
momentum of our western counties in 2012, with organiza-
tions including the Cleveland Clinic, Mercy Willard Hospital and
Fisher-Titus Medical Center leading the way.
· The Cleveland Clinic’s $97.9 million Richard E. Jacobs Health
Center opened in Avon.
· Mercy Willard Hospital completed construction of its
$40.5 million two-story replacement hospital in Huron County.
· Fisher-Titus Medical Center in Norwalk broke ground on a
$12.5 million emergency department expansion in June.
perforMance across tHe regionThe following pages offer a composite view of the combined
impact of the economic development organizations featured in
this report, as well as a glimpse into some of the notable results
achieved by individual initiatives and organizations. These stories
and statistics reflect the spirit of collaboration that is permeating
Northeast Ohio and ramping up the region’s resolve to rebuild
and reinvigorate the economy.
Economic development partners worked individually and in
teams to bring in new businesses and encourage expansion
in established ones. Their efforts netted 36,383 new jobs
representing $1.652 billion in payroll and capital investments
totaling $1.757 billion.
BRAND CAMPAIGN SPURS REINVESTMENT BY LAKE ERIE SHORES & ISLANDS PROPERTIES
A targeted 2012 advertising campaign touting Lake Erie
Shores & Islands as a year-round destination helped the
area draw 7.5 million visitors throughout the year. The
steady influx of tourists is fueling upgrades and expan-
sions, including the recent completion of Cedar Point’s
new $30 million roller coaster, GateKeeper (opening May
2013), as well as the park’s commitment to invest $45 -
$60 million more over the next three years for resort hotel
upgrades; Kalahari Resorts’ $25 million convention center
expansion and $5 million upgrade of onsite amenities;
and the $4 million reopening of Maui Sands Waterpark.
PLASTICS INNOVATOR EXPANDS WORKFORCE AND FACILITY
Ohio’s Job Creation Tax Credit provided the impetus for
Thogus Products to begin expansion of its Avon Lake
operation. This $6 million expansion project will create
30 new jobs and $1.6 million in additional payroll over
the next three years and enable Thogus to retain its
existing 96 jobs and $4.8 million in payroll at the Avon
Lake operation.
AUTOMOTIVE EXPANSION BRINGS NEW JOBS TO HURON
International Automotive Components (IAC) has com-
mitted to investing $5 million into its Huron facility, with
plans to add 143 new jobs to its existing 593. IAC’s
investment represents the state’s third-largest automotive
expansion of 2012.
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12
2012 TOTAL REGIONAL ECONOMIC IMPACT
Source: The Fund for Our Economic Future analysis of data
reported by grantees for the calendar year 2012. Additional
data submitted by JobsOhio, Team NEO and economic devel-
opment organizations in 18 counties across Northeast Ohio.
In certain cases in which multiple organizations worked
on the same project, data may be included in more than
one section of this report.
*Capital invested and attracted
36,383
$1
.7 BILLION
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,651,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
JOBS PAYROLL
$1
.8 BILLION
CA
PITAL INVESTM
ENT
*
13
NORTHERN HIGHLIGHTS: CUYAHOGA, LAKE AND GEAUGA COUNTIESCollaboration reached a new high in Northeast Ohio’s northern
counties in 2012, as the Greater Cleveland Partnership (GCP)
and other area partners rallied around community issues with
great success. Cleveland set the bar for education reform by
engaging an impressive collaboration of organizations, individu-
als and communities to pass legislation needed to support The
Cleveland Plan, a game-changer that captured the attention of
education reformers across the country. Education efforts also
included successful passage of a 15-mill school levy, which is
expected to generate $64 - $70 million per year for the Cleve-
land Metropolitan School District.
Business potential got a shot in the arm as well, as another
collaboration of concerned business executives made significant
strides toward maintaining and growing the United Airlines hub
at Cleveland Hopkins International Airport (CLE). The GCP spear-
headed “United for Cleveland’s Hub,” engaging the region’s
largest corporations, middle-market firms and small businesses
in the push to ensure Cleveland’s ongoing hub status. The GCP
led efforts to help grow United’s market share at CLE, increase
traffic and local demand, and provide advocacy support on key
United/CLE issues.
In downtown Cleveland, multitudes of building cranes are just
one indicator of the extensive physical developments that are
changing the landscape of the city. Development investments
hit 95 percent in 2012, developers stepped up efforts to meet
demand. Those under construction or in the planning stages in
2012 included 318 units at The Langston near Cleveland State
University, 232 units in the former Embassy Suites on East 12th
Street and 36 units in the Chester Commons Building adjacent
to Perk Plaza.
Many more units are in the works. For example, the 21-story
office tower at 1717 East 9th Street recently received $5 million
in tax credits for the conversion of the former headquarters of
East Ohio Gas into 223 apartments; and renovations of both the
Schofield Building and Truman Building could add 75 units along
the Euclid Corridor.
Additionally, Cleveland Development Advisors (CDA), the real
estate investment affiliate of the Greater Cleveland Partnership,
provided financing to repurpose the Hanna Annex office build-
ing in Playhouse Square into the district’s first housing project,
which will result in 102 apartments and supportive retail space.
The Rosetta Building, at 629 Euclid Avenue, is using CDA financ-
ing to transition office space into 102 new apartment units.
In total, CDA invested more than $33 million in real estate and
business development projects throughout Cleveland in 2012,
including:
· Transformation of the nearly vacant building at 800 Superior
Avenue into office space to house more than 1,000 employ
ees of AmTrust Financial Services and its affiliates.
· Completion of the Public Square headquarters for Global
Cleveland, an organization focused on attracting talented
newcomers to Cleveland.
· Lutheran Metropolitan Ministry’s creation of the Richard Sear
ing Center, where job training and placement, and innovative
social enterprise programs are taking place.
SPARKS CONTINUE TO FLY IN EUCLIDUpon acquiring a Baltimore company, Lincoln Electric
faced the decision of whether to invest in the expansion of its
Euclid world headquarters or move its consumables division to
Baltimore, Houston or an overseas location. At risk in the short
term were 1,000 Northeast Ohio jobs; in the long term, 2,200.
Local, county and state incentives helped convince the welding
giant to stay and invest $40 million in its Northeast Ohio facili
ties, retaining 2,200 jobs and adding 200.
The Flats East Bank project is breathing new life into down-town Cleveland, as residential space, offices, restaurants and entertainment venues make the city an amazing place to live, work and play.
renaissance When vision and resources meet,
a whole new world can emerge.
soared in 2012, from construction of the Global Center for
Health Innovation (formerly knows as the Cleveland Medical
Mart & Convention Center) and the Flats East Bank project to
residential development projects trying to keep pace with the
demand for downtown living space.
CLEVELAND ROCKS WITH DEVELOPMENT ACTIVITY
Downtown Cleveland was a hotbed of development activity in
2012. The $465 million complex housing the Global Center for
Health Innovation (GCHI) and Convention Center progressed
ahead of schedule, as did the $60 million transformation of
the former Crowne Plaza Hotel next door into Cleveland’s first
Westin Hotel.
Phase I of the $500 million Flats East Bank project, designed to
revitalize Cleveland’s riverfront, moved forward toward its spring
2013 completion goal as development efforts continued on a
23-story, 500,000-square-foot office tower, a 150-room Aloft
Hotel by Starwood, a variety of restaurants and entertainment
venues, a 16,000-square-foot health club, a 1,200-foot board-
walk and an urban beach. Phase II will include development of
a 140-unit residential complex along the water, plus additional
restaurants and retail and entertainment space.
This is just the beginning of the residential development under
way in downtown Cleveland. As the residential occupancy rate
Phase I of the Flats East Bank develop-
ment project included construction of the
23-story Ernst & Young LLP office tower
and 150-room Aloft Hotel.
$500 million superproject
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
Rendering courtesy of: Forum Architectural Services LLC
Rendering courtesy of: Dimit Architects
2 0 1 2 O V E R V I E W : S T R E N G T H E N I N G O U R E C O N O M I C R E S I L I E N C E
14 15
CENTRAL THEMES: SUMMIT, MEDINA AND PORTAGE COUNTIESAll eyes were on Kent in 2012, as the city made substantial
progress on the redevelopment of the downtown district, earn-
ing the Ohio Economic Development Association’s 2012 Best
Project Award. Completion of the $13.3 million headquarters
of the Austen BioInnovation Institute in Akron (ABIA) energized
the biomedical community (see more on ABIA on page 7) and
Bridgestone’s new $100 million technology center (see page 8)
gave Akron’s technology community a boost. Additionally, the
strength of flexible electronics assets positioned this part of the
region as the only flexible electronics cluster recognized and
funded by the federal government (see page 11).
Sizable public and private investments reflected renewed
confidence driven by the shale boom and related manufacturing
resurgence. Drawn by the increasing strength of the polymer
community, both domestic and international manufacturing
companies – automotive, biomedical and more – chose to
expand their operations in the Greater Akron area.
RÖCHLING AUTOMOTIVE COMMITS TO AKRON
When Germany-based Röchling Group selected Akron as its
second Northeast Ohio manufacturing site in 2011, the city
looked forward to the addition of more than 100 area jobs. The
company, which makes parts for the Chevy Cruze and other
vehicles, cut the ribbon on its $20 million, 75,000-square-foot
injection-molded-parts factory in January 2012. Shortly after
production began, Röchling launched Phase 2: construction of a
IN THE SOUTH AND EAST: STARK, ASHLAND, RICHLAND, TUSCARAWAS, WAYNE, COLUMBIANA, MAHONING, TRUMBULL AND ASHTABULA COUNTIES The big story in Northeast Ohio’s southern and eastern counties
was oil and gas, as the industry rushed to leverage the Utica
Shale play. The oil and gas explosion spurred manufacturing
and infrastructure growth, the downtown revitalizations of
Youngstown and Warren, and education initiatives to enhance
workforce training. Oil and gas leaders including Chesapeake
Energy Corporation, the nation’s second-largest producer of
natural gas, and Exterran, a global provider of natural gas and
petroleum solutions, made sizable investments throughout the
region (see page 6). In a strategic move to position the area as
a rich source of opportunity, the city of Canton branded itself
“The Utica Capital.”
BP BEGINS UTICA SHALE DRILLINGBP leased the mineral rights for 84,000 acres in Trumbull County
– 20 percent of the county’s land – as part of a $331 million
agreement with the Associated Landowners of the Ohio Valley.
The lease will allow BP to drill 10 appraisal wells to measure
levels of liquid and dry gas. BP committed to working with local
contractors and hiring Ohioans for this appraisal program. The
company will run its shale development activities throughout
eastern Ohio from its Utica Operations Center, established in
North Jackson (Mahoning County) in December.
SCHLUMBERGER INVESTMENT DRAWS BUSINESSES TO STRASBURG
One of the world’s largest oilfield service providers, Schlum-
berger Limited invested $2.89 million in the purchase of 140
acres in Strasburg in Tuscarawas County, where it is constructing
facilities that will ultimately house 200 to 250 new employees.
At least three additional companies have committed to opening
operations in or near Strasburg, as suppliers look to support the
global giant.
STARK STATE TRAINS OIL AND GAS WORKFORCE
Thanks to a $10 million Workforce Development Grant from the
state of Ohio, Stark State College is building a Downtown Cam-
pus and Energy Center in Canton to serve the education and
training needs of the emerging oil and gas industry’s workforce.
The college already has several industry-related programs in
place, including welding, hydraulics and pneumatics, blueprint
reading, surveying, water and wastewater treatment, pipefitting
and mechanical maintenance.
Stark State is known for its leadership in the energy field, having
for many years been proactive in programming, training and
research partnerships. The university is currently partnering
with Timken on the $11.8 million Wind Energy Research and
Development Center at Stark State’s Emerging Technologies
Airport Campus.
opportunity Counties throughout the region are leveraging
our unique natural and human resources.
second building – also 75,000 square feet and representing an
additional $24 million investment. Ultimately, Röchling expects
these two plants to employ 150 or more workers.
MOVE SIGNALS SUCCESSFinnish manufacturer 7signal Solutions was recruited
by the city of Akron in 2011 as part of the BioFinland Technol-
ogy Bridge Program, a collaborative effort that also includes the
Akron Global Business Accelerator and the Helsinki Business and
Science Park, Finland’s premier business incubator focused on
life sciences. The business found great success at Akron General
Medical Center and Akron Children’s Hospital, and announced
plans in 2012 to move its headquarters to a new location in
downtown Akron.
ALLSTATE INVESTS $20 MILLION IN DATA CENTER UPGRADES
After reviewing options for relocating its Hudson operations
facility to Illinois, Wisconsin or Idaho, Allstate Insurance invested
$20 million to upgrade its data center here and committed to a
minimal 13-year stay in Northeast Ohio. Key factors in Allstate’s
decision included the tremendous support it received from the
city of Hudson and the city’s central location in Northeast Ohio,
which gives Allstate access to a large, high-quality workforce. A
financial package in cluding a 10-year Job Retention Tax Credit
helped put Northeast Ohio over the top.
Automotive resurgenceRöchling Group’s two new Akron plants
represent a $44 million investment in
Northeast Ohio’s automotive industry.
The German manufacturer expects to hire
150 workers for these facilities.
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
2 0 1 2 O V E R V I E W : S T R E N G T H E N I N G O U R E C O N O M I C R E S I L I E N C E
16 17
Initiatives Powering the ProgressNortheast Ohio’s economic acceleration throughout 2012 resulted from a number
of related initiatives: business attraction; business growth and development;
entrepreneurship; technology, innovation and commercialization; and
regional marketing. Development partners throughout the region identified new
opportunities for collaboration and proactively reached out to help businesses
become established, growing, profitable organizations.
business attraction Business attraction has been vital to Northeast Ohio’s ongoing
economic recovery, creating jobs and providing new opportuni-
ties for companies throughout the supply chain. Team NEO takes
a leading role in attracting businesses from around the globe
to the region and marketing Northeast Ohio’s assets through a
broad range of channels. In partnership with the state (JobsOhio)
The majority of businesses moving
into Northeast Ohio represented the
advanced manufacturing, biohealth,
automotive and energy sectors.
Advanced manufacturing attraction
trended upward due to the growing
strength of Northeast Ohio’s polymer
community, the emerging needs of oil
and gas companies pursuing Utica Shale
opportunities, and business growth
driving expansions. Advanced energy
and biomedical companies chose the
region for its strong cluster support,
while automotive companies moved
here to support the Big 3 rebound as
well as foreign-owned companies’
renewed interest in US operations.
AdvancedManufacturing
Biohealth
Automotive
Energy
Information Servicesand Software
Polymers and Chemicals
Food Sciencesand Agriculture
Consumer Products
0 5 10 15 20 25
0 5 10 15 20 25
Consultant
Business AttractionOutreach
Company Inquiry
Referral
Trade Show
Business Expansion/Retention Contact
and local economic development organizations – notably, the
Greater Akron Chamber, Greater Cleveland Partnership, Stark
Development Board, Team Lorain County and the Youngstown/
Warren Regional Chamber – Team NEO set a record in 2012 by
recruiting 15 new company operations to Northeast Ohio. These
new companies brought more than 1,000 jobs and more than
$46 million in annual payroll to the region.
BUSINESS ATTRACTION PIPELINE
PIPELINE: TOP ACTIVE PROJECT CLUSTERS
AdvancedManufacturing
Biohealth
Automotive
Energy
Information Servicesand Software
Polymers and Chemicals
Food Sciencesand Agriculture
Consumer Products
0 5 10 15 20 25
0 5 10 15 20 25
Consultant
Business AttractionOutreach
Company Inquiry
Referral
Trade Show
Business Expansion/Retention Contact
Based on location of parent company
96 A
CTIV
E BUSINESS ATTRACTION PROJECTS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS*
2,18
8 N
EW JO
BS
Domestic43
International53
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
PIPELINE: ACTIVE DOMESTIC/INTERNATIONAL PROJECTS
PIPELINE: ACTIVE PROJECTS LEAD SOURCE
BUSINESS ATTRACTION IMPACT
96 A
CTIV
E BUSINESS ATTRACTION PROJECTS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS*
2,18
8 N
EW JO
BS
Domestic43
International53
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
96 A
CTIV
E BUSINESS ATTRACTION PROJECTS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS*
2,18
8 N
EW JO
BS
Domestic43
International53
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
Sources: The Fund for Our Economic Future analysis of data
reported by grantees for the calendar year 2012. Additional
data submitted by JobsOhio, Team NEO and economic devel-
opment organizations in 18 counties across Northeast Ohio.
In certain cases in which multiple organizations worked on
the same project, data may be included in more than one
section of this report.
*Jobs that were stabilized when another operation of an exist-
ing business chose Northeast Ohio over a competing location.
JOBS 2,407
PAYROLL $94 MILLION
CAPITAL INVESTMENT $501 MILLION
TOTAL BUSINESS ATTRACTION IMPACT
96 A
CTIV
E BUSINESS ATTRACTION PROJECTS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS*
2,18
8 N
EW JO
BS
Domestic43
International53
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
2 0 1 2 O V E R V I E W : S T R E N G T H E N I N G O U R E C O N O M I C R E S I L I E N C E
18 19
no city?
o Atlanta, GAo Austin, TXo Boston, MAo Chicago, ILo Columbus, OHo Cologneo Denver, COo Dusseldorf, Germanyo Hannover, Germanyo Houston, TXo Indianapolis, INo Israelo Irvine, CAo Los Angeles, CAo Minneapolis, MNo Orlando, FLo Palm Coast, FLo Philadelphia, PAo Phoenix, AZo Pittsburgh, PAo San Francisco, CAo Scottsdale, AZo South Carolinao Torontoo Washington DC
Team NEO and the region’s 18 county economic devel-
opment partners hosted more than 119 companies and
international delegations who visited Northeast Ohio to learn
about the region and/or conduct site selection reviews. The
partners also made outreach missions to trade shows and mar-
kets in 29 national and international markets, indicated below,
to encourage business development in our region.
BUSINESS ATTRACTION DEVELOPMENT ACTIVITIES
o Anaheim, CA
o Atlanta, GA
o Austin, TX
o Boston, MA
o Chicago, IL
o Columbus, OH
o Denver, CO
o Detroit, MI
o Houston, TX
o Indianapolis, IN
o Irvine, CA
o Las Vegas, NV
o Los Angeles, CA
o Minneapolis, MN
o Orlando, FL
o Palm Coast, FL
o Philadelphia, PA
o Phoenix, AZ
o Pittsburgh, PA
o San Francisco, CA
o Scottsdale, AZ
o South Carolina
o Washington DC
NATIONAL: INTERNATIONAL:
o Cologne, Germany
o Dusseldorf, Germany
o Hannover, Germany
o Israel
o Netherlands
o Toronto, Ontario, Canada
PARTICIPATING ECONOMIC DEVELOPMENT ORGANIZATIONS
Data included in the Business Attraction and Business Growth and Development sections of this report were submitted by JobsOhio, Team NEO, MAGNET and the following economic development organizations:
Ashland Area Council for Economic Development
Columbiana County Port Authority
Erie County Economic Development Corporation
Geauga Growth Partnership, Inc.
Greater Akron Chamber
Greater Cleveland Partnership
Growth Partnership for Ashtabula
Huron County Development Council
Lake County Port Authority
Medina County Economic Development Corporation
Portage Development Board
Richland County Community Development Group
Stark Development Board, Inc.
Team Lorain County
Tuscarawas Community Improvement Corporation
Youngstown/Warren Regional Chamber
Wayne Economic Development Council
WISECO BRINGS 100 NEW JOBS TO MENTOR
Wiseco Piston Company, a manufacturer of performance auto-
motive products headquartered in Mentor, wanted to relocate
its JE Pistons division from California to lower shipping costs
and expand capabilities. Mentor and Mexico were the top two
location contenders.
A team including Team NEO, JobsOhio and the city of Mentor
addressed the company’s concerns regarding local labor
NORTHEAST OHIO WORK ETHIC CLINCHES ALEXANDER MANN SOLUTIONS
When Alexander Mann Solutions (AMS) – an international
recruitment, staffing and HR management company providing
services to 60 countries – sought to establish a Global Client
Service Center in the Americas, the company first focused on
Raleigh, North Carolina. A Cleveland executive with ties to the
company contacted Team NEO about hosting a visit.
With only 10 days’ notice, Team NEO led a collaboration includ-
ing JobsOhio, the Greater Cleveland Partnership and the city of
Cleveland to orchestrate a site visit and networking event that
introduced AMS to some of Cleveland’s top business leaders,
young professionals, HR directors, universities and economic
development organizations. Citing our region’s collaborative busi-
ness environment and unparalleled work ethic, AMS committed
to establishing its North American headquarters in downtown
Cleveland, creating 300 jobs with a $12.9 million payroll.
Additional business attraction stories appear on pages 5-17.resources, providing a workforce guarantee grant, creating a
compelling financial package with state- and city-level incentives,
and helping Wiseco relocate select members of its California
team. Bilingual workforce development agency El Barrio also
assisted by providing culturally relevant employment and reloca-
tion services to the company’s large Hispanic population. Wiseco
committed to relocating JE Pistons to Northeast Ohio, creating
100 jobs for the region and stabilizing 200 jobs at its Mentor
corporate headquarters.
com
pa
nies and delegations
HO
STED SITE VISIT
S
119 INBOUND
outre
ach locations
NA
TIO
N
AL & INTERNATIO
NA
L29 OUTBOUND
teamwork Collaboration is the foundation
of our region’s strength.
2 0 1 2 O V E R V I E W : S T R E N G T H E N I N G O U R E C O N O M I C R E S I L I E N C E
20 21
business growtH and developMent For businesses located in Northeast Ohio, 2012 was a time to
look forward with renewed optimism. Many companies sought
growth opportunities, from facility and workforce expansion
to product development and diversification. Chambers and
economic development organizations across the region worked
together more closely than ever before to make sure those
opportunities were accessible to every Northeast Ohio business.
With a common agenda and an understanding of each partner’s
strengths, these organizations integrated their efforts to build a
solid support network that ensured businesses’ access to local
and regional resources. Critical state assets were pulled into
the mix by Team NEO, the region’s link to the state’s JobsOhio
program, putting these initiatives on the fast track to success.
Much like business attraction,
business growth reflected
surging activity in the advanced
manufacturing, biohealth, energy
and automotive sectors. Polymer
and chemical, food sciences and
agriculture, and consumer products
companies made significant
investments in growth as well, as the
region’s supply chain and workforce
continued to support their growth.
PIPELINE: TOP PROJECT CLUSTERS
PIPELINE: PROJECTS LEAD SOURCE
BUSINESS GROWTH AND DEVELOPMENT IMPACT
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
27,
237
RETA
INED
JOBS
6,340 NEW JOBS New Jobs
in Payroll:$227.2M
Retained Jobs in Payroll:$1.3B
Domestic142
International18 16
0 A
CTI
VE
BUSIN
ESS GROWTH AND DEVELOPMEN
T PROJEC
TS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
27,
237
RETA
INED
JOBS
6,340 NEW JOBS New Jobs
in Payroll:$227.2M
Retained Jobs in Payroll:$1.3B
Domestic142
International18 16
0 A
CTI
VE
BUSIN
ESS GROWTH AND DEVELOPMEN
T PROJEC
TS
Sources: The Fund for Our Economic Future analysis of data
reported by grantees for the calendar year 2012. Additional
data submitted by JobsOhio, Team NEO and economic
development organizations in 18 counties across Northeast
Ohio. Data for MAGNET not yet available for 4th quarter.
In certain cases in which multiple organizations worked
on the same project, data may be included in more than
one section of this report.
Company Inquiry
Business Expansion/Retention Contact
Referral
Consultant
Business AttractionOutreach
Trade Show
AdvancedManufacturing
Polymersand Chemicals
Food Sciencesand Agriculture
Biohealth
Energy
Consumer Products
Automotive
Information Servicesand Software
0 10 20 30 40 50 60
0 10 20 30 40 50 60 70
Company Inquiry
Business Expansion/Retention Contact
Referral
Consultant
Business AttractionOutreach
Trade Show
AdvancedManufacturing
Polymersand Chemicals
Food Sciencesand Agriculture
Biohealth
Energy
Consumer Products
Automotive
Information Servicesand Software
0 10 20 30 40 50 60
0 10 20 30 40 50 60 70
BUSINESS GROWTH AND DEVELOPMENT PIPELINE
JOBS 33,577
PAYROLL $1.5 BILLION
CAPITAL INVESTMENT $943 MILLION
TOTAL BUSINESS GROWTH AND DEVELOPMENT IMPACT
PIPELINE: ACTIVE DOMESTIC/ INTERNATIONAL PROJECTS
Based on location of parent company
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
27,
237
RETA
INED
JOBS
6,340 NEW JOBS New Jobs
in Payroll:$227.2M
Retained Jobs in Payroll:$1.3B
Domestic142
International18 16
0 A
CTI
VE
BUSIN
ESS GROWTH AND DEVELOPMEN
T PROJEC
TS
Retained Jobs in Payroll:
$10.3M
New Jobs in Payroll:$84.1M
219 RETAINED JOBS
2,18
8 N
EW JO
BS
27,
237
RETA
INED
JOBS
6,340 NEW JOBS New Jobs
in Payroll:$227.2M
Retained Jobs in Payroll:$1.3B
Domestic142
International18 16
0 A
CTI
VE
BUSIN
ESS GROWTH AND DEVELOPMEN
T PROJEC
TS
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLLC
APITAL INVESTM
ENT
S
alternate ideawireless light fixture
The Step2 Company, maker of molded toys, furniture, and home and garden
products, plans to create 200 jobs in Northeast Ohio – 125 at its global head-
quarters in Streetsboro and 75 at its Perrysville facility. Spurred by recent sales
growth of successful new products, the additions are backed by funding from
Ohio’s Tax Credit Authority. The Streetsboro expansion adds $3.3 million to the
location’s existing $19.5 million annual payroll. The Perrysville expansion adds
$2 million to its current $7.7 million payroll.
Top US Toy Manufacturer Grows, Adds 200 Jobs
22 23
SYNAPSE RELIES ON REGION’S MEDICAL EXPERTISE
Oberlin-based Synapse Biomedical Inc. was founded in 2002
to commercialize the NeuRx Diaphragm Pacing System (DPS)®,
which helps individuals with spinal cord injuries and Lou Gehrig’s
disease. BioEnterprise and JumpStart supported Synapse
throughout its funding and commer cialization strategy.
Although Synapse received several offers from private investors
outside of Ohio to move the company, the founders recognized
Northeast Ohio’s leadership in neurostimulation and the support
provided by local advanced medical institutions. BioEnterprise,
Team NEO and Team Lorain County designed a plan to help
Synapse maintain and grow its operations in Oberlin. Synapse
committed to a $2 million investment in its Oberlin headquar-
ters, which will create an additional 60 jobs..
MAINES COMMITS TO $14 MILLION EXPANSION PROJECT
A national leader among independent food service distributors,
Maines Paper & Food Service was exploring the possibility of
expanding in either Cleveland or Maryland. A Northeast Ohio
team including the Greater Cleveland Partnership, Cuyahoga
County, the village of Oakwood, Ohio Rail Development
Commission, Team NEO and JobsOhio organized assistance
to help Maines identify state and local financing and funding
programs that helped convince the firm to make its investment
in Cleveland. Maines committed to a $14 million expansion of
its Oakwood Village facility, which is expected to retain 99 jobs,
create 100 jobs and add 50,000 square feet of real estate and
$8.6 million of fixed assets.
YOUNGSTOWN BECOMES HOME TO MANUFACTURING INNOVATION INSTITUTE
The Youngstown/Warren Regional Chamber, MAGNET, NorTech
and JumpStart are among the key partners and conveners of
the TechBelt Initiative, which was instrumental in convincing the
federal government to select Youngstown as the launching pad
for the National Additive Manufacturing Innovation Institute
(NAMII), a consortium of manufacturing firms, universities,
community colleges and nonprofit organizations located in the
Cleveland-Pittsburgh TechBelt region. NAMII opened its $69 mil-
lion research laboratory adjacent to the Youngstown Business
Incubator in September. The lab offers companies in the additive
manufacturing industry firsthand access to next generation
manufacturing technologies.
Additional business growth and development stories appear
on pages 4-17.
The client and portfolio companies JumpStart has worked with
from its 2004 inception through 2012 made the following
contributions in 2012:
· Generated $114 million in revenue
· Created/Retained 2,931 jobs (1,536 direct jobs)
ABSMATERIALS BRINGS CLEANTECH INTO THE SPOTLIGHT
Founded in 2008 by Dr. Paul L. Edmiston and Stephen Spoona-
more, and backed by a 2008 Innovation Fund Award and a
2009 investment from JumpStart, Wooster-based ABSMaterials
(ABS) has the nation talking cleantech. The firm’s patented
Osorb®, absorbent glass that pulls toxins from water, has been
hailed as a game-changer in treating the world’s polluted water.
Media coverage has been far too extensive to mention an inclu-
sive list, but here’s a sample: Forbes, Fast Company, The New
York Times, The Huffington Post, Popular Mechanics, Bloomberg
TV and NPR.
ABS is marketing its technology to government agencies as well
as private firms charged with cleaning toxic groundwater sites.
It will soon be selling Osorb in South Korea in addition to the
US, thanks to a partnership established with South Korean
environmental services company DaeBaek Co. in 2012. The
firm’s rapid growth necessitated its move to a larger facility in
Wooster in 2012.
MESOCOAT RAMPS UP FOR DEMANDThe oil and gas industry is about to see just how fast – and inex-
pensive – protecting pipes from corrosion can be. After its 2008
spinoff from Powdermet, a Euclid-based global manufacturer of
nanoengineered metallic composites, MesoCoat got a financial
boost from JumpStart to help it gain momentum. In the past
two years, both the Ohio Third Frontier and the Innovation Ohio
Loan Fund offered assistance, as MesoCoat continued to perfect
its metal cladding processes.
MesoCoat’s CermaClad™ metal coating process, which is
40 times faster and 20 percent cheaper than other cladding
processes, took top honors in The Wall Street Journal’s 2012
Technology Innovation Awards. This recognition coincided with
MesoCoat’s plans to set up a large plant in Euclid, which will
enable the company to test its technology on larger pipes and
start selling them.
entrepreneursHip They’re risk-takers. Innovators. Leaders. Believers. Entrepreneurs
personify the spirit of enterprise, and the businesses they are
building in Northeast Ohio are setting the bar for ingenuity and
innovation, creating jobs and encouraging investment across
the region.
Fortunately for these ambitious individuals, Northeast Ohio
offers a robust support system of resources, tools and contacts
to accelerate their success. One example is the JumpStart Entre-
preneurial Network (the Network). Its members include pre-seed
and seed funds, incubators, business accelerators, experienced
advisors and specialized support organizations. They work
together to help guide Northeast Ohio tech-based companies
through the growth process. In addition to JumpStart, the list of
organizations is extensive, including entities such as:
· The Innovation Fund, a regional fund founded by Lorain
County Community College to back technology-based
entrepreneurial endeavors and emerging technology-based
businesses.
· The Canton Entrepreneur Launch, which provides grants to
entrepreneurs who plan to locate new, high-growth business
ventures in the city of Canton.
· The longest-running business incubator program in Ohio,
Akron Global Business Accelerator, whose state-of-the-art
center provides the foundation and infrastructure high-
growth companies need to realize their true profit potential.
· Great Lakes Innovation and Development Enterprise (GLIDE),
a comprehensive regional innovation center, resource hub and
business incubator that supports all facets of the growth of
enterprises.
· The Incubator at MAGNET, which provides a comprehensive
package of business assistance services to support the growth
of tech-oriented companies.
· Youngstown Business Incubator, which helps accelerate emerg-
ing businesses by providing an array of resources – facilities,
equipment, entrepreneurial counseling, networking opportuni-
ties and more – critical to successful business development.
The Network achieved these results in 2012:
· 605 companies expressed interest in receiving business
support or resources from the Network
· Network clients generated $228.5 million in revenue
· Network clients created or retained 5,471 jobs
(2,867 direct jobs)
In February, JumpStart launched the tech entrepreneur-focused
JumpStart Mentoring Program, modeled after the well-regarded
MIT Venture Mentoring Service. Mentors serve as role models
for younger entrepreneurs. Since March 2012, 33 of the most
accomplished business minds in the region have shared their
experience, expertise and connections by donating 836 hours to
help 23 startups. The companies went on to collectively generate
$336,000 in revenue and raise $1.24 million in capital.
Sharing insight
Sources: The Fund for Our Economic Future analysis of data reporte
d by grantees for the calendar year 2012. Additional data submit-
ted by JobsOhio, Team NEO and economic development organiza-
tions in 18 counties across Northeast Ohio. In certain cases in which
multiple organizations worked on the same project, data may be
included in more than one section of this report.
JOBS 293
PAYROLL $17.6 MILLION
CAPITAL ATTRACTED $112 MILLION
ENTREPRENEURSHIP IMPACT*BUSINESS GROWTH AND DEVELOPMENT continued
*JumpStart numbers
2 0 1 2 O V E R V I E W : S T R E N G T H E N I N G O U R E C O N O M I C R E S I L I E N C E
24 25
tecHnology, innovation and coMMercializationTechnological advances put new products into consumers’
hands. They help businesses boost their efficiency, productivity
and profitability. They connect people faster. They help patients
heal more quickly. They keep us moving forward at an unprec-
edented pace. For all of these reasons plus the employment and
investment opportunities they bring, Northeast Ohio embraces
technology companies and other businesses committed to
innovation.
Northeast Ohio demonstrates support by providing a variety of
resources and organizations that dedicate themselves to sup-
porting and accelerating high-tech businesses, innovations and
the commercialization that brings them to market. BioEnterprise,
for example, supports healthcare and biomedical firms. NorTech
fuels the success of companies in advanced energy, flexible
electronics and water technologies. And in 2012, MAGNET
orchestrated a new program, Partnership for Regional Innova-
tion Services to Manufacturers (PRISM), to support innovation in
HealtHcare/Biomedical HigHligHts· BioEnterprise reviewed 160 companies/technologies and added
22 client companies to its portfolio. In total, BioEnterprise’s
portfolio companies raised $235 million from venture capital,
private equity and grant funding sources. This funding is used
to hire employees, commercialize products and otherwise
grow businesses.
· Northeast Ohio biomedical companies attracted $226.5
million in equity capital in 2012, the largest amount raised by
Northeast Ohio biomedical companies in the past five years.
This funding was raised by 43 companies, the largest number
of companies attracting capital since 2003. In addition, 16
regional startups were awarded $11 million in SBIR/STTR
(Small Business Innovation Research/Small Business Technology
Transfer) grants, and local tech transfer offices raised over
$14 million in licensing and other deals.
INVESTOR BACKS SMARTHEART WITH $30 MILLION
Cleveland Heart, a Cleveland Clinic Innovations spin-out and
developer of the SmartHeart artificial heart, raised $30 million
from Power Heart Consortium, a Korean private equity firm.
The investment – the largest a Cleveland Clinic spin-off has ever
received from a lone investor – enables Cleveland Heart to
continue its international clinical trials, expand its laboratory
research and refine the design of the artificial heart.
ALLTECH INTERNATIONAL ENTERS US MRI MARKET
In 2009, Solon-based AllTech International Group received regula-
tory approval to sell MRI scanners in China. By 2011, AllTech was
a true contender, selling more MRI scanners in China that year
than any other manufacturer save Siemens and GE.
In 2012, AllTech set its sights on the US. The US launch required
space for manufacturing and testing operations. With ongoing
support from BioEnterprise and a Job Creation Tax Credit from
the state, AllTech moved from its 13,000-square-foot headquar-
ters into a new 50,000-square-foot building in June and is
adding 70 employees to its domestic team, which previously
numbered 40.
ACQUISITION ENABLES GLOBAL BRAND GROWTH
Medina-based OrthoHelix Surgical Designs Inc. was acquired
by Tornier NV, a Dutch medical device company, for $135 million.
OrthoHelix maintains its name, its brand names, its 80 employ-
ees and its central operations center in Medina. Tornier plans
to leverage its international distribution channel to accelerate
OrthoHelix’s geographic expansion beyond its current US
sales base.
ingenuity Talent and technology bring
new ideas to emerging industries.
The $30 million infusion into the SmartHeart artificial heart
by Power Heart Consortium represents the largest invest-
ment a Cleveland Clinic spin-off has ever received from a
single investor.
Record investment
small- to mid-size manufacturers. The successes of the busi-
nesses supported by these organizations and others within the
economic development ecosystem led to the creation of 717
jobs representing $46,681,462 in payroll in 2012. Capital invest-
ments into these innovative firms reached $277,522,177.
Sources: The Fund for Our Economic Future analysis of data
reported by grantees for the calendar year 2012. Additional data submitted by
JobsOhio, Team NEO and economic development organizations in 18 counties
across Northeast Ohio. In certain cases in which multiple organizations worked on
the same project, data may be included in more than one section of this report.
JOBS 717
PAYROLL $46.7 MILLION
CAPITAL INVESTMENT $277.5 MILLION
TECHNOLOGY, INNOVATION AND COMMERCIALIZATION IMPACT
26 27
eMerging clusters HigHligHts · The 116 companies supported by NorTech (advanced
energy and flexible electronics industry clusters) attracted
$19.7 million in capital, created 307 jobs and generated
$20.9 million in payroll.
· The US Small Business Administration (SBA) awarded NorTech
one of seven Regional Innovation Cluster contracts to support
FlexMatters®, an initiative designed to accelerate the growth
of the flexible electronics cluster in Northeast Ohio.
· NorTech applied its nationally recognized InSeven® roadmap-
ping process to assess growth opportunities in Northeast
Ohio’s water technologies, flexible electronics and energy
efficiency industries. It projects that, by 2020, the three
industries will create a combined 9,230 jobs.
STMA PUTS ENERGY AND TECH COMPANIES ON THE FAST TRACK
NorTech, JumpStart, Lorain County Community College and
MAGNET launched the federally funded Speed to Market
Accelerator (STMA) to support the commercialization efforts
of advanced energy and flexible electronics cluster members.
The program is designed to accelerate the market entry process
for high-potential products by drawing on the region’s existing
support, training and research resources.
In addition to accelerating commercialization, the STMA
program’s step-by-step process increases the global competitive-
ness of cluster companies; attracts additional private capital to
the region; and connects students, incumbent workers and the
unemployed to educational and training programs. JumpStart,
MAGNET and NorTech provide one-on-one assistance to help
cluster members assess markets, engage with commercialization
partners and customers, increase export revenue and access
capital. Lorain County Community College is involved as well,
leading an extensive network of Northeast Ohio universities in
assessing cluster workforce needs to develop and implement
education/training programs.
Advanced energy company Quasar is taking new ideas to market faster thanks to ongoing support from NorTech and MAGNET.
momentum Emerging clusters drive us
toward sustainable solutions.
Manufacturing HigHligHts· Partnership for Regional Innovation Services to Manufacturers
(PRISM) established agreements with Case Western Reserve
University, the University of Akron, Cleveland State University
(CSU) and Lorain County Community College (LCCC) for the
institutions to provide intellectual and hard physical assets to
small and mid-size manufacturers.
· Recognized nationally as a cutting-edge program (featured
in June at the annual Clinton Global Initiative conference in
Chicago and named a State and Local Innovation to Watch
in 2012 by the Brookings Institution), PRISM created more
than 50 engagement opportunities among manufacturers and
advanced technology resources to spur innovation and growth.
By year-end, the PRISM portfolio included 12 firms targeting
development of 12 to 14 new products, $275 million in new
revenue and the creation of 450 new jobs by the end of 2014,
and 3,500 new jobs by 2017.
· MAGNET partnered with CSU and LCCC on a program to
grow internships for smaller manufacturers to assure a stronger
workforce pipeline.
Innovator Tom Lix put a new spin on
aging bourbon, bringing his new brand,
Cleveland Whiskey, to market in a hurry.
MAGNET’s incubator and product design
and development team helped Lix realize
his vision.
Celebrating success
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
28 29
CLEVELAND WHISKEY TAPS INTO A $20 BILLION MARKET
Micro-distilleries are all the rage these days, but entrepreneur
Tom Lix isn’t thinking micro at all. He has his sights set on huge,
hoping he’ll hit the 7,000-barrel mark on his new bourbon,
Cleveland Whiskey, this year, and take that number to 20,000
next year.
Lix came to MAGNET in 2009 looking for the financing, space
and expertise he needed to bring his idea to market. He found
all of that and more. With help from the engineers at MAGNET,
his brand hit shelves in early 2013. Why does that math sound
wrong? Because Lix developed an aging process that cuts the
usual eight to 12 years bourbon requires to only six months. The
color is deep, the flavor is smooth, and Tom Lix is eager for the
next round.
BACKING INGENUITY FOR SUSTAINABLE RESULTS
Quasar Energy Group, a company that turns organic waste –
food waste, crop residuals, manure, fats and oils, for example –
into clean, affordable energy to power homes and fuel vehicles,
grew to 60 employees (from 10 in 2010) in 2012 and generates
more than 1-megawatt per day at all eight of its Ohio facilities.
The six-year-old company, which uses an anaerobic digestion
process to generate electricity, heat and compressed natural gas
(CNG), has benefited from the support of NorTech throughout
its early years. NorTech directed funds through its STMA pro-
gram to MAGNET to facilitate design of Quasar’s CNG dispens-
ers, and connected the firm with fellow energy enterprise cluster
member South Shore Controls, which manufactures the dispens-
ers in Northeast Ohio. NorTech also helped Quasar secure the
Renewable Identification Number required by the EPA to register
an acceptable biofuel under its Renewable Fuel Standard.
LORKTECH TAGGED FOR SUCCESSMark Lorkowski was a 20-year-old engineering student
at Case Western Reserve University when he came up with his
idea for an electronic shelf label system to replace traditional
paper pricing tags at grocery stores and mass merchandisers in
2010. This year, Lorkowski Technologies (LorkTech) began shar-
ing solar-powered liquid crystal display prototypes with potential
anchor customers.
LorkTech’s progress was accelerated by relationships Lorkowski
built with companies in NorTech’s FlexMatters® cluster through
the organization’s STMA program. Kent Displays, a leader in the
manufacture of self-powered liquid crystal displays, for example,
assisted LorkTech in developing the prototype, getting it ready in
a remarkably short timeframe and at no charge.
THE FOUR COMPONENTS OF REGIONAL MARKETING Since 2006, the Regional Marketing Alliance (RMA) has raised
more than $11 million to support Northeast Ohio’s first and only
regional marketing campaign. In addition to providing direct
financial support to Team NEO’s business attraction marketing,
which is described on this page, the RMA uses these funds
for three other components of the campaign – national media
relations (see page 11), talent attraction and in-region
communications.
The third component is Northeast Ohio’s only regional,
comprehensive talent attraction website, located at
LivingInThePlus.com. To date, more than 700 organizations
link to this online portal, making it the go-to resource for our
region’s executive recruiters, human resource professionals and
others working to bring top talent here.
The fourth component of the campaign is focused on creating
thousands of spokespeople to help tell the story of the great
things happening in Northeast Ohio. RMA’s in-region com-
munications program was designed to inform and enlighten
Northeast Ohio residents so
they can become ambassadors
for our “brand” and play an
important, ongoing role in our
economic health. Through a
variety of in-region communi-
cation channels, the message
of our region’s revitalization is
being read and shared every
day: ThePlus.us website;
Facebook.com/ThePlus.
NortheastOhio; Twitter.com/
BeThePlus; and the Pass the
Plus e-Newsletter.
Research conducted among resident community influencers
from 2010 to 2012 found a 36 percent jump (from 33 to 69
percent) in optimism about our region’s economic development
future. The campaign’s social media following increased by 158
percent from 2011 to 2012, and continued to grow in 2013.
And the folks who Tweet shared 72 percent of the original
messages they received from @BeThePlus in 2012.
SHOWCASING NORTHEAST OHIO’S UNIQUE ASSETS
Team NEO led a variety of projects and initiatives designed to
encourage attraction, retention, expansion and investment in
the region. Among these efforts:
· QERs - Designed to attract new businesses and jobs, the
Quarterly Economic Reviews provide economic activity
updates, including industry sector growth, for the 18-county
region. Data was picked up by more than 30 key regional
media vehicles.
· FAM Tours - Team NEO conducted familiarization tours (FAMs)
with top oil and gas executives and members of the
economic development community. These efforts netted
additional business attraction leads as well: 19 contacts and
seven companies.
· Business Attraction Microsite and Fact Sheets - Leveraging the
momentum of our business attraction campaign (We Make
Things Here: Ideas+Products+Profits), Team NEO developed a
targeted content site – clevelandplusmakesthings.com – and
nine fact sheets to promote the region to businesses and
site selectors.
Regional Marketing: Building Our BrandMarketing efforts played a strong role in Northeast Ohio’s
development picture in 2012 as the region’s partners kept the
good news about our economic progress in the public eye.
STEPPING UP REGIONAL MARKETING EFFORTS FOR 2013Recognizing the recent success and long-term value of market-
ing to business attraction and development efforts, members
of the economic development ecosystem closed the year by
agreeing to establish a regional marketing Alliance Govern-
ing Council. Housed under the Team NEO board of directors,
the Council will oversee and govern the regional marketing
campaign going forward, as it builds on its 2012 momentum.
The campaign will continue to position Northeast Ohio as an
exceptional place to build and grow businesses.
promotion Great news travels fast.
Regional Marketing Allianceof Northeast Ohio
R E G I O N A L M A R K E T I N G : B U I L D I N G O U R B R A N D
30 31
This core group conducted extensive research and analysis, and
engaged teams of business, philanthropic and civic leaders to
develop a series of principles and priorities that set the course
for collective action to improve Northeast Ohio’s economic
competitiveness.
This task force is creating a regional economic competitiveness
strategy to address the economic priorities that will accelerate
the region’s economic growth, increase residents’ prosperity and
create more equitable access to economic opportunities across
Northeast Ohio’s diverse populations.
The following four principles are guiding the development and
implementation of the strategy:
1. The strategy will create and sustain actions that will measur-
ably strengthen the region’s long-term global economic
competitiveness.
2. Success will require a sustained commitment from the
private, civic, public and philanthropic sectors to address a
set of clearly defined regional priorities.
3. Economic competitiveness priorities will be addressed at
several levels, from the neighborhood up to the regional.
The role of the regional strategy is to align, strengthen and
connect; it does not supplant or replace local efforts.
4. The strategy, and all of its components, will be economically
inclusive of the region’s diverse populations.
Moving Forward: Imperatives for Northeast Ohio Even as Northeast Ohio celebrated a year of outstanding achievements,
business and philanthropic leaders from across the region recognized the
need to plan continuously and purposefully for the future. They came
together as a regional task force to determine how to leverage Northeast
Ohio’s assets and resources to build a more robust, inclusive, high-
performing economy.
M O V I N G F O R W A R D : I M P E R AT I V E S F O R N O R T H E A S T O H I O
The task force has identified 10 priorities as essential to
achieving results that will outperform the national economy:
· Grow and strengthen the region’s driver industries and
companies.
· Accelerate growth of target emerging industries.
· Foster and grow the region’s entrepreneurial environment.
· Prepare and attract workers to fill short- and mid-term
employment demand for driver and emerging industries, and
other high-demand occupations.
· Increase the educational attainment, readiness and resilience
of the region’s residents.
· Improve Quality of Place to appeal to growing companies and
talented people.
· Maintain and strengthen transportation and communication
assets to connect people, products and information to US and
global markets.
· Strengthen the region’s innovation, research and commercial-
ization capacity and effectiveness.
· Foster efficient and effective public policies, infrastructure
investments, and governmental services and structures.
· Develop the coalition(s) of business, philanthropic, education
and government leaders to monitor, refine and deliver on the
strategy.
For more detail about the information presented in this report,
please contact any of the organization representatives listed on
the back cover.
AshtabulaLake
Geauga
Portage
Stark
Wayne
SummitMedina
Cuyahoga
Lorain
Ashland
ONOAKROO
CANTONNN
YOUNGGGSTOWNG
Richland
Huron
Erie
Tuscarawas
Trumbull
Mahoning
Columbiana
LANDLCLEVELLLORRRAINRA
LDLMAAANSFIELANSFIEL
global influence Our products, people and intellectual capital make the world a better place.
Source: The Fund for Our Economic Future analysis of data
reported by grantee intermediaries for the calendar year
2012, representing a sample 384 companies. Additional data
submitted by JobsOhio, Team NEO and economic development
organizations in 18 counties across Northeast Ohio.
*Data for MAGNET not yet available for 4th quarter.
**Data are a reflection of unique company performance.
The Fund and Team NEO have made every effort to
eliminate duplication which may result from two or
more economic development organizations reporting on
the same company.
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
$36,383
$1,6
51,895,358 $1,7
56,631,441
JOBS PAYROLL
CA
PITAL INVESTM
ENT
S
alternate ideawireless light fixture
32 33
BioEnterprise
Aram Nerpouni
216-658-3975
bioenterprise.com
Greater Akron Chamber
Daniel C. Colantone
330-237-1212
greaterakronchamber.org
Greater Cleveland Partnership
Joseph D. Roman
216-592-2341
gcpartnership.com
JumpStart
Ray Leach
216-363-3400
jumpstartinc.org
MAGNET
Daniel E. Berry
216-432-5301
manufacturingsuccess.org
NorTech
Rebecca O. Bagley
216-363-6877
nortech.org
Stark Development Board
Stephen L. Paquette
330-453-5900
starkcoohio.com
Team Lorain County
Chris Kish
440-328-2562
Pam Fechter
440-328-2561
teamloraincounty.com
Team NEO
Thomas A. Waltermire
216-363-5425
clevelandplusbusiness.com
Youngstown/Warren Regional Chamber
Thomas M. Humphries
330-744-2131
regionalchamber.com
Special thanks to the Fund for Our Economic
Future (the Fund) for supplying data for this
report. The Fund is a philanthropic collabora-
tion committed to advancing and sustaining a
long-term economic competitiveness strategy
for the people of Northeast Ohio. As part
of its work, the Fund coordinates, collects
and compiles data pertaining to jobs added,
payroll added and capital attracted by many
of the economic development organizations
in this report. Questions and comments should
be directed to Emily Garr, 216-456-9803 or
For more information about the organizations featured in this report,
please contact the representatives listed below.
YEAR-END REGIONAL ECONOMIC DEVELOPMENT REPORT
N O R T H E A S T O H I O 2 0 1 2