2012 northeast ohio year-end regional economic development report

DRIVINGG R O W T H

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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

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Geauga

Portage

Stark

Wayne

SummitMedina

Cuyahoga

Lorain

Ashland

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Richland

Huron

Erie

Tuscarawas

Trumbull

Mahoning

Columbiana

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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


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

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56,631,441

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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











the same company.

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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.

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

12

2012 TOTAL REGIONAL ECONOMIC IMPACT








*Capital invested and attracted

36,383

$1

.7 BILLION











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


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











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


Rendering courtesy of: Forum Architectural Services LLC

Rendering courtesy of: Dimit Architects


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.











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



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


Biohealth

Automotive

Energy


Polymers and Chemicals


Consumer Products

0 5 10 15 20 25

0 5 10 15 20 25

Consultant


Company Inquiry

Referral

Trade Show


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


$10.3M


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



$10.3M


219 RETAINED JOBS*

2,18

8 N

EW JO

BS

Domestic43

International53


$10.3M


219 RETAINED JOBS

2,18

8 N

EW JO

BS

96 A

CTIV



$10.3M


219 RETAINED JOBS*

2,18

8 N

EW JO

BS

Domestic43

International53


$10.3M


219 RETAINED JOBS

2,18

8 N

EW JO

BS

Sources: The Fund for Our Economic Future analysis of data




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



$10.3M


219 RETAINED JOBS*

2,18

8 N

EW JO

BS

Domestic43

International53


$10.3M


219 RETAINED JOBS

2,18

8 N

EW JO

BS


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.


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


$10.3M


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


$10.3M


219 RETAINED JOBS

2,18

8 N

EW JO

BS

27,

237

RETA

INED

JOBS


in Payroll:$227.2M


Domestic142

International18 16

0 A

CTI

VE

BUSIN


T PROJEC

TS



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.




Company Inquiry


Referral

Consultant


Trade Show


Polymersand Chemicals


Biohealth

Energy

Consumer Products

Automotive


0 10 20 30 40 50 60

0 10 20 30 40 50 60 70

Company Inquiry


Referral

Consultant


Trade Show


Polymersand Chemicals


Biohealth

Energy

Consumer Products

Automotive


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


$10.3M


219 RETAINED JOBS

2,18

8 N

EW JO

BS

27,

237

RETA

INED

JOBS


in Payroll:$227.2M


Domestic142

International18 16

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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


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.


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











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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.











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32 33

BioEnterprise

Aram Nerpouni

216-658-3975

[email protected]

bioenterprise.com

Greater Akron Chamber

Daniel C. Colantone

330-237-1212

[email protected]

greaterakronchamber.org

Greater Cleveland Partnership

Joseph D. Roman

216-592-2341

[email protected]

gcpartnership.com

JumpStart

Ray Leach

216-363-3400

[email protected]

jumpstartinc.org

MAGNET

Daniel E. Berry

216-432-5301

[email protected]

manufacturingsuccess.org

NorTech

Rebecca O. Bagley

216-363-6877

[email protected]

nortech.org

Stark Development Board

Stephen L. Paquette

330-453-5900

[email protected]

starkcoohio.com

Team Lorain County

Chris Kish

440-328-2562

[email protected]

Pam Fechter

440-328-2561

[email protected]

teamloraincounty.com

Team NEO

Thomas A. Waltermire

216-363-5425

[email protected]

clevelandplusbusiness.com

Youngstown/Warren Regional Chamber

Thomas M. Humphries

330-744-2131

[email protected]

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

[email protected].

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

2012 northeast ohio year-end regional economic development report

Documents

northeast ohio economy

diverse organizations

development activities

economic health

countless organizations

regional economy

manufacturing output

national media