Karin Connelly Rice

latest report shows that cle is gaining, not losing, jobs
Despite the disheartening news from the Bureau of Labor Statistics (BLS) monthly jobs reports, the latest news is that Cleveland actually is gaining jobs and moving forward.

The BLS’ monthly jobs report shows that Cleveland lost 2,100 jobs since May 2012, more than any other metropolitan area in the country. However, the latest BLS report, the Quarterly Census of Employment and Wages (QCEW), released last week, shows that Cleveland in fact gained 7,669 jobs in the third quarter of 2013. While this report takes a little longer to come out than the monthly report, it is much more accurate. Cleveland had an average of 992,570 employed between May and September of 2013.
 
The difference, says Team NEO CEO Tom Waltermire, is that the monthly Current Employment Statistics (CES) report is based on data from only six percent of the country’s business community, while the QCEW is based on data from 98 percent of businesses.
 
“The CES data is very premature and should never have been released,” says Waltermire. “The numbers are so preliminary they’re inaccurate. What it means for Cleveland is we have been subjected to nine months of regular and increasingly inflammatory headlines that report we’re the worst big city region from a jobs perspective. That is not the case.”
 
The latest QCEW report marks the 13th consecutive quarter of year-over-year job growth in Northeast Ohio.
 
Team NEO is now working to reverse the impressions created by the monthly reports. The organization has teamed up with Cleveland State’s Levin College of Urban Affairs and the Cleveland Federal Reserve to better analyze the data. Team NEO also is working with the Greater Cleveland Partnership in lobbying Ohio’s congressional representatives about the way employment data is released.
 
“People should think of the economy in Cleveland as gradually growing,” says Waltermire. “Every month has shown a higher number of jobs than the year before. We’re on a winning streak here.”

 
Source: Tom Waltermire
Writer: Karin Connelly
2nd annual maker faire showcases what crafty clevelanders are up to
The second annual Mini Maker Faire will be held on Saturday, March 29 from 10 a.m. to 6 p.m. at the downtown Cleveland Public Library. This free event not only showcases some of the innovative ideas local makers have explored, it is also a hands-on event where attendees can learn to knit, or even create an LED light. It’s all about the growing maker movement, which includes everyone from tech enthusiasts and crafters to scientists and garage tinkerers.
 
“It’s an interesting movement,” says Mini Make Faire organizer James Krouse. “The maker movement runs the spectrum of people working in robotics and 3D printing to the more traditional people who do knitting. But it’s a thought process of how something is made.”
 
Approximately 100 exhibitors will be at this year’s Faire, including MakerGear, a Beachwood-based manufacturer of 3D printers and Robogaia Industries, which will have its web-controlled robot on hand. Threadwitch Light and Fabric, which specializes in electronic textiles, will teach guests how to light up a simple LED, while the Red Heart Method will teach metal hand-stamping for jewelry and kids’ crafts.
 
Many of the exhibitors will be selling their creations, but sales are not the primary goal of the event.
 
"It’s the world’s greatest show and tell,” says Krouse. “It’s where people say, ‘I’m going to show off what I’m doing.’”
 

Source: James Krouse
Writer: Karin Connelly
northeast ohio entrepreneur expo focuses on making connections
JumpStart’s 2014 Northeast Ohio Entrepreneur Expo is slated to be the largest one yet with 1,000 attendees and 100 exhibitors expected for its seventh year. The event on Monday, April 7 at the Cleveland Museum of Art is slated to be chock-full of resources and events for business owners and aspiring entrepreneurs.

This year’s theme is “Connections Matter,” with a focus on helping entrepreneurs make the connections that will help their business succeed and move forward.
 
New this year is a speed advising session, during which entrepreneurs will be paired with investors, support organizations, service providers and the media to get quick tips on improving their pitches and selling their businesses. “All of last year’s attendees liked the energy and the people who were there, but they wanted more interaction,” says JumpStart’s Samantha Fryberger of the decision to add the speed advising. “This way we have more interaction.”
 
The session is followed by an investor panel discussion, “Attracting Capital Between the Coasts,” which will focus on raising money in Ohio. “Obviously, raising capital in Boston or the Silicon Valley is very different than in the Midwest,” notes Fryberger.
 
Returning this year is the Charter One Foundation Student Business Idea Competition. Six teams will be chosen by a judging panel and public vote, based on their business plans and a video. Three teams will be chosen to receive $400, $600 and $1,500 prizes.
 
The day will be capped off with a networking happy hour. The event runs from noon to 5:30 p.m. and is free to the general public. The cost is $85 for entrepreneurs, who have until Monday to register.
 
 
Source: Samantha Fryberger
Writer: Karin Connelly
cleveland state university to host popular ted event this fall
Cleveland State University announced that it will host the popular TED series in October. TED, which stands to Technology, Entertainment and Design, shares original ideas through talks and programs held around the world.

Sponsored by CSU’s Monte Ahuja College of Business to highlight the imagination, innovation and entrepreneurship of the Cleveland and CSU communities, TEDxClevelandStateUniversity will be held on October 3.
 
“We’re really excited we’re able to host a TEDx event,” says Colette Hart, senior director of outreach and engagement centers at the college of business. “The TED community works hard to identify potential TED hosts that are consistent with the goals and objectives to inspire and innovate.”
 
TEDxClevelandStateUniversity should put Cleveland in the national spotlight, at least among TED followers. “Most people who have heard a TED talk have been moved because it’s very personal,” Hart says. “It has a global following and our job is to make sure Cleveland State and Cleveland are part of that global community.”
 
Ahuja College dean Joseph Mazzola sees the TEDx conference as a growth opportunity. “For people who watch TEDx presentations, the whole idea is to be around innovative thinkers and innovative ideas,” he says. “They want to connect the dots and see the world in a way that hasn’t been seen before.”
 
While the speakers have yet to be chosen, interest has been high. “We’ve had people contact us globally who are interested in participating,” says Hart. “It allows us to showcase the talent of our local community on a global basis.”
 
Hart says they will be sure to include students and the community in the programming. A portion of the event will be dedicated to past TED talks.
 
Now that CSU has earned a TEDx license, the university plans to host regular events. October’s program will be an annual happening.

 
Source: Colette Hart, Joseph Mazzola
Writer: Karin Connelly
 
yates apothecary breaks into gluten-free sweets market
Since 2011, Melissa Hale has been creating fragrance oil blends that are pleasing to the nose. This past holiday season introduced solid perfume lockets to the mix. Now, Yates Apothecary is pleasing the palate with its gluten-free macaroons.
 
“I began playing with gluten-free coconut macaroons for my own needs,” explains Hale, whose asthma is triggered by gluten. “These past few months I’ve be trying to buy things gluten-free to satisfy my sweet tooth.”
 
During her search Hale discovered that gluten-free sweets often are expensive, and that she's hardly alone in her gluten allergy. “Lots of people are gluten-free -- as a diet trend, for celiac disease, or they no longer have fibromyalgia or joint pain by staying away from gluten,” Hale says. “It’s really heartwarming to hear everyone’s stories.”
 
So, with her two sons watching her every move in the kitchen (and serving as taste testers), Hale perfected her gluten-free coconut macaroons. She’s been selling them -- $2 for a “hefty” macaroon or three for $5 -- at festivals and farmers markets around town for the past few months. She sells out every time.
 
Yates Apothecary is about to expand its line again. Hale is now experimenting with gluten-free coconut eggs, which are made of coconut, maple syrup, orange extract and chocolate. Later this spring Hale plans to introduce aroma oils, pure essential oils with intended purposes like relaxation, calming or energy.
 
Hale is in talks with a few coffee and tea shops around town about carrying her macaroons. In the meantime, customers can contact Hale directly if they would like to place an order.

 
Source: Melissa Hale
Writer: Karin Connelly
 
after a record 2013, toa technologies continues its rapid growth
As more field service employees rely on their mobile devices for scheduling and to check in with the office, TOA Technologies is keeping up with increased demand. The provider of field service management software experienced record growth in 2013 thanks to the launch of its ETA direct software, landing global telecom company Telefonica as a new customer, and securing a partnership and $66 million investment from Technology Crossover Ventures.

“It’s just a reflection of an ongoing need for people to have scheduling solutions and support,” says John Opdycke, TOA’s vice president of worldwide marketing. “Our goals were not just about revenue growth. We entered new vertical markets and new geographies. We’ve increased our breadth and expansion of our presence throughout the world.”
 
TOA entered five new countries last year: Finland, Argentina, Chile, Sweden and the Philippines. It experienced 50 percent growth over 2012 in new deals. And had 30 percent staff growth, which translates to 68 employees in the Cleveland headquarters and 514 worldwide. Over the past three years TOA has grown its global team by 71 percent and its Cleveland team by 127 percent.
 
“You always go into any year budgeting for a year of growth and, yes, we went into last year knowing we were on track to increase business,” says Opdycke. “And we met all of our goals. But if someone had asked me, ‘Will you increase business by 50 percent?’ I would have said, ‘No, that’s a dramatic increase.’”
 
The Telefonica deal was the largest service deal in the history of the mobile workforce management software industry. TOA is in the process of expanding its Cleveland offices, with plans to more than double its size to accommodate its growth. Every TOA employee around the world comes to Cleveland for training.
 
Opdycke says he expects 2014 to be an equally successful year. “We continue to push forward and we really feel we’re on the right path,” he says. “

 
Source: John Opdycke
Writer: Karin Connelly
sprav takes top honors at the ohio clean energy challenge for its smart showerhead
Craig Lewis, Andrew Schad and CJ Valle, CWRU and Cleveland Institute of Art students and founders of Sprav Water, won the 2014 Ohio Clean Energy Challenge at Cleveland State last week for their wireless water meter. Sprav won $10,000 and will advance to the regional competition in Chicago in April, where they will compete for the $100,000 grand prize and a place in the Department of Energy’s National Clean Energy Business Plan Competition in Washington, D.C. this summer.
 
Although Lewis says the competition was “fairly stressful,” it was a good opportunity to showcase Sprav. “I think it means a lot because we’re entering a beta phase where we’re going to start testing it,” he says. “And the cash prize helps.”
 
The Sprav meter helps users conserve water in the shower by measuring water temperature and usage and relaying that data to a smartphone or tablet.
 
NorTech director of Cluster Acceleration Rick Earles served as Sprav’s mentor during the competition. “He was really helpful and added a lot of value,” says Lewis. “He gave us access to contacts at manufacturers in Northeast Ohio, which will be very valuable moving forward.”
 
In fact, Sprav is now a part of NorTech’s Speed to Market Accelerator. “It’s a lot of fun working with promising startups like Sprav Water,” Earles says. “These guys are so passionate about what they do. They have created a beautifully designed product and really understand what it takes to get it to market.”
 
Sprav just signed contracts with CWRU and Baldwin Wallace to test the meters in 60 of the universities’ showers. “We want to see how people’s behavior changes when they have real-time feedback with our device,” says Lewis.
 
Eight other teams from around the state competed in the Clean Energy Challenge, five from CWRU, and one each from University of Cincinnati, Wright State University and Ohio University.

 
Sources: Craig Lewis, Rick Earles
Writer: Karin Connelly
new leandog robot provides facetime with clients, office while on the road
With the loss of the United Airlines hub in Cleveland, LeanDog Software owner Jon Stahl say's he's discovered a way perhaps to cut down on the size of his team while traveling to visit clients. It's a robot named Gilligan -- made by Double Robotics – that roams about the LeanDog boat, checking in with team members on a project.
 
The investment might be one solution to reduce air travel for businesses that go to customers or bring customers to their offices.
 
Stahl got Gilligan in January to cut down on the number of team members he needs when traveling to call on customers. “Instead of taking a large team to customer sites, we can send less people and then drive the robot around the boat and talk to anyone we need to,” Stahl explains. “I don’t need to have as many people travel with me just in case I need them in a meeting.”
 
Gilligan also helps Stahl stay in touch with his staff when he’s on the road for long stretches of time. “I can also use the robot to look at our visual management walls, attend our daily standup meetings, and just make an appearance,” he says. “We have been on the road for three weeks straight, and it’s nice to pop in when we can.”
 
Stahl finds the robot to be a more flexible alternative to video conferencing, which requires scheduling a time for the meeting. “With Gilligan, we can wake him up and drive him around the boat and talk to someone at any time,” he explains. “Soon, we can even drive it to the recharging docking bay. We tried to use Skype phones in the past and gave them to our customers – we bought 20 of them, but you need someone to answer the phone, so that solution didn’t work so well."
 
The only disadvantage to Gilligan is that he can’t climb stairs; he has wheels for legs.
 
LeanDog has a client in San Francisco who also is trying out the robot. Together, the two companies are experimenting with their robots to see if they might replace, or reduce, travel and improve communication.
 

Source: Jon Stahl
Writer: Karin Connelly
bialosky and partners promotes five young staffers to senior positions
Bialosky and Partners Architects, a design firm in Shaker Square known for its design, historic rehab and new construction projects, recently promoted five of its younger employees to senior level positions.

“This particularly young set, all under 40, join the senior leadership at Bialosky and Partners with a high energy, high motivation approach to how we design and how we do business,” says Jack Bialosky, Jr. “We take pride in growing our own. By empowering hard-working and self-confident individuals early in their careers, they end up gaining experience beyond their years.”
 
David W. Craun was promoted to principal and continues to be one of the firm’s key design leads. Brandon Garrett was named associate principal. Both Craun and Garrett were key players in the development of Crocker Park. Paul Taylor was named associate principal. Craun and Taylor started their careers at the firm as interns.
 
Taylor has played instrumental roles in projects such as the award-winning designs for Tri-C’s Hospitality Management Center. Ryan Parsons was named senior associate. Parsons currently leads the team in the adaptive reuse restoration of the Schofield Building at E. 9th Street and Euclid Avenue. John Guzik was named senior associate in addition to his role as the firm’s director of sustainability.
 
“These young and empowered leaders are continuing the virtuous cycle of attracting new talent to the firm,” says Bialosky. “By knowing the skill set and mindset it takes to succeed early in their careers, these newly promoted leaders can effectively seek out compatible hard-working individuals who will stay will one day become principals themselves.”
 
Bialosky and Partners won numerous design awards and national recognition last year for its projects and designs.

 
Source: Jack Bialosky, Jr.
Writer: Karin Connelly
stack the deck: tips from the pros on what makes a great sales pitch
Thanks to a bevy of new accelerators and incubators -- all grooming startups to be the Next Big Thing -- the art of the pitch is more important now than ever. Whether it’s a casual elevator pitch or an intense 20-minute address to potential investors, there are some definite dos and don’ts to giving an effective pitch.
hands-on painting classes lead to jobs for cmha residents
Thanks to a partnership between the Cleveland Metropolitan Housing Authority (CMHA), Sherwin-Williams, the Cleveland Foundation and Towards Employment, CMHA residents are getting hands-on training in commercial painting skills.

Sherwin-Williams instructors come in and teach participants about brush technique, taping and masking baseboards, cutting in and mixing paint. Students get one week of classroom instruction, followed by a week of hands-on training.
 
“We, as a housing authority, identify residents to participate and identify locations for painting,” explains CMHA manager of youth and adult services Robin Holmes. “We have plenty of housing and we always have plenty of areas for painting. It really benefits our residents in looking for opportunities to get training and get employment.”
 
About 60 percent of the program graduates have gone on to get jobs or start their own painting companies.
 
The program also provides classes in demolition and asbestos abatement. Participants can enroll in job readiness training and job placement assistance.
 
John Fitcheard is one such resident who took the class and went on to get a job thanks to it. While he has some interior painting experience, he figured he’d brush up on his skills. “I enrolled in the program because I was sitting at home and not doing anything else,” he says.
 
Fitcheard went on get a job with Precision Environmental doing asbestos abatement and continues to do painting jobs on the side.

 
Sources: Robin Holmes, John Fitcheard
Writer: Karin Connelly
'radically different' cleveland whiskey marks one-year anniversary with an irish-themed bash
Whiskey aficionados sat up and took notice when Cleveland Whiskey hit the market last March. Founder Tom Lix’s “radically different” approach to making whiskey -- pressure aging the whiskey for a superior quality in a short period of time -- has been met with enthusiasm and praise.

“I think, if anything, we just had an incredible reception,” says Lix. “The support has been phenomenal, especially when we are doing things untraditionally.”
 
Cleveland Whiskey sold 50,000 bottles in 2012 and now employs 12 people. Today, Lix is producing 4,000 bottles a week. The company started selling in Illinois and Tennessee last year, has begun selling in Virginia, and is about to start distribution in Michigan.
 
“We want to make sure we can keep up with demand at our Cleveland home base,” says Lix. “We want slow growth, but our mission is to sell nationally and eventually overseas.”
 
During the holidays, Cleveland Whiskey released its Christmas Bourbon and is about to launch a new whiskey – 87 – a slightly lower proof version of the original. “It still has the same bold flavors but it's a little less strong,” explains Lix.
 
The Cleveland Whiskey group will contribute to a float in Cleveland’s St. Patrick’s Day parade that will feature Celtic band CRAIC. The team will host an after-parade party at McCarthy’s Downtown with another concert by CRAIC and, of course, some whiskey.

 
Source: Tom Lix
Writer: Karin Connelly
 
widdle app curates all social media networks in one streamlined place
Matt Strayer and his business partner, Aj Mihalic, had a vision: To be able to streamline all of their social network accounts into one place. The two were running a website and graphic design firm while in college, but they were burnt out and looking for something different.

During a bike ride through the Metroparks in 2012, that vision started to come into focus. “I said, ‘Why do I have to have to go to all these different sites to see my posts,’” he recalls. “Why can’t I just go to one site? And Aj said, ‘Let’s do it.’”
 
Thanks to that bike ride, the first concept of Widdle took shape. The first version, called Nest, was simply an app that amassed all social networking sites in one place. Two years later, and after going through the LaunchHouse accelerator program, Strayer and Mihalic are preparing to launch Widdle in March.
 
The current version not only groups sites like Facebook and Twitter into one place, the app also pares down user content to the most relevant posts. “You can 'widdle' down the posts that don’t matter without removing or unfriending your contacts,” explains Strayer. “It’s like the Pandora Radio of social networking.”
 
Strayer says most of the past year and a half has been spent assembling the right management team. In addition to himself and Mihalic, Widdle employs Stephen Hatch and Cory Breed in development and wordsmith Meghan Norcross.
 
“It’s been a long time in the making but we’re finally comfortable with it,” says Strayer. “It had to be able to adapt as you change.”
 
Widdle users can set the app to download all their social media feeds, turn off certain sites, or select what content to show. “If you feel posts you want are being widdled, or the app is making bad decisions, you can go back and re-train the algorithm,” explains Strayer. “We put that feature in there because five years ago, I wasn’t interested in business at all. Now, it’s 90 percent of what I do.”

Strayer and his team currently are taking reservations for the app on the Widdle site.

 
Source: Matt Strayer
Writer: Karin Connelly
cleveland tech companies attracted pre-recession levels of equity funding in 2013
Cleveland tech companies attracted venture and angel investments in 2013 amounting to pre-recession levels, according to JumpStart and a report released by the Venture Capital Advisory Task Force. One hundred and eighteen companies spanning IT, healthcare, clean tech, and business and consumer products received $259 million in equity investments last year, a 15-percent increase over the previous year.

“$259 million puts us up where we were pre-recession,” says JumpStart’s principal of communications Samantha Fryberger. “So that’s really good.”
 
IT companies led the way in investments. Sixty-six IT firms attracted $116 million, followed by 32 healthcare companies bringing in $98 million, and 15 clean technology businesses getting $44 million. Consumer products raised $1 million.
 
Furthermore, 27 of the investors were first-timers to the Northeast Ohio business community. “Year after year, there are investors finding we have great companies here,” says Fryberger. “More than 50 percent of the companies had angels involved in their deals, which means there are wealthy investors here who see good deals and want to put their dollars into these promising businesses.”
 
Seed companies fared well, securing 70 percent of the $259 million, according to the report, while companies in the early stages of growth followed the national trend and did not fare as well in Series A funding. Fryberger attributes the number of accelerators in the area fostering early business as one of the reasons seed funding was up. “We have more seed companies than ever before,” says Fryberger.
 
The news overall is good for growing companies in the area. “There’s certainly a great deal of entrepreneurial activity in Northeast Ohio,” notes Fryberger. “While a national shortage of Series A dollars could make fundraising more of a challenge for early stage businesses in the year ahead, it’s exciting to see new startups getting off the ground and some of the more mature companies attracting the capital they need to expand their market share.”


Source: Samantha Fryberger
Writer: Karin Connelly
new investor financing will allow onshift to add another 20, 30 staffers
OnShift, which provides online staff scheduling and labor solutions in healthcare, recently closed $7 million in Series C investment financing. The investors include HLM Venture Partners and five previous investors in OnShift.
 
OnShift CEO Mark Woodka said the money will be used to expand the company’s sales and marketing, product development and customer service departments. “We doubled our customer base last year, and we’re getting out of the gate this year pretty strong as well,” he says.
 
In response to its rapid growth, OnShift last year added 23 employees, 15 of which were new positions. Woodka predicts he will add another 20 to 30 new staffers in 2014. In fact, the company currently has 18 open positions.
 
OnShift’s staff scheduling software caters primarily to long-term care and senior living facilities, helping prevent overtime and scheduling gaps and increase efficiency. With the enactment of the Affordable Care Act, Woodka has seen a surge in business. He predicts that trend will continue as companies try to manage their costs and part-time employees.
 
OnShift is serving a virtually untapped market, with almost 85 percent of the senior living and long-term care industry lacking scheduling software. “They are mostly doing it on a piece of paper,” says Woodka. “The really advanced ones are doing it in Excel.”
 
Woodka continues to embrace Cleveland as the ideal home for OnShift. “Cleveland’s a great place,” he says. “We have access to great talent, with younger talent coming from Case and CSU, and the cost of doing business is one-third of what they are on the coasts. And we have the best view of downtown Cleveland.”

 
Source: Mark Woodka
Writer: Karin Connelly