Regional Economy

pittsburgh post-gazette writer 'gets market buzz in cleveland'
In a feature titled, "Getting a Market Buzz in Cleveland," Pittsburgh Post-Gazette writer Diana Nelson Jones compares the West Side Market to her city's eclectic Strip District, as that city plots a course for a grand future marketplace of its own.
 
"Except for the selection of dried beans at Urban Herbs, the West Side Market in Cleveland doesn’t sell anything you can’t find in Pittsburgh’s Strip District. What they have that we don’t have is a grand work of marketplace architecture," she writes.
 
She adds that "the trip prompted many thoughts about what we have and don’t have and led to a rumination on the potential of the Pittsburgh Public Market and the Terminal Building on Smallman Street to be long-term additions to the scene."
 
"As I toured the West Side Market, I caught myself oohing and aahing, wondering why at first and then realizing why -- the intensity of consolidation. It is Wholey’s, Penn Mac, Stamolis, Parma Sausage, Sam Bok, Stan’s, Labad’s, La Prima and every farmers’ market all together in one big teeming, gleaming -- and at times overwhelming -- place."
 
"But the certainty I came away with from Cleveland was that a great city needs a great indoor market scene and any city that still has its old-world market house is blessed, lucky, farsighted or all three."
 
Read the rest of the story here.
 
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
downtown cleveland restaurant week continues thru weekend
This Friday, the seventh annual Downtown Restaurant Week begins. Hosted by Downtown Cleveland Alliance, the promotion runs from February 21 through March 2 and will feature approximately 50 participating restaurants.

Most participating restaurants will offer three-course prix fixe menus for $30, plus $15 lunch option at some restaurants.

“Downtown Cleveland offers a unique experience because of the tremendous density of walkable dining and entertainment options,” says Joe Marinucci, president and CEO of Downtown Cleveland Alliance. “The prix fixe menus offered during Restaurant Week give visitors the ability to pair a first-class meal with unique entertainment options without breaking the budget.”

The list of participating restaurants and menus is updated daily on the Restaurant Week website.

During Downtown Cleveland Restaurant Week, ABM Parking is offering $3 off parking at select locations for Downtown diners. Print out the voucher here by clicking on the icon and present it to the parking lot attendant prior to paying.

Participating parking locations include:
  • Warehouse District – 1371 W. 6th Street (W. 6th & St. Clair)
  • Gateway District -  740 Euclid Avenue (entrance on both Euclid and Prospect Avenues)
  • PlayhouseSquare – 1520 and 1600 Euclid Avenue
RTA’s free trolleys are also a great way to explore town for free. Schedules and additional information are available here.
cleveland goes from butt of hollywood jokes to a hub of innovation
In a lengthy feature titled "Hiding Out in Ohio: Bioscience," Tom Thriveni, writing for the digital mag Ozymandias, covers the burgeoning bioscience industry in Cleveland.

"Just as robotics companies in Pittsburgh and high-speed fiber-optic networks in Chattanooga have helped transform the economies of those cities, bioscience entrepreneurship has reshaped Cleveland’s sagging economy," he writes.

"The [Cleveland Heartlab and Cleveland Clinic] partnership was initiated by the clinic as part of its mission to turn its inventions into commercially viable medical products, generating profits for both parties. To date, besides Heartlab, 66 neighboring companies have spun out from Cleveland Clinic ideas since 2000. All told, the clinic has 525 patents and 450 licensing agreements."

Read the rest of the good news here.

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.
forbes profiles local 'edisons' nottingham and spirk
In an article titled "The Invention Machine: Cleveland Duo Churns Out Ideas Worth Billions," written by Michael Nemeth and published in the March issue of Forbes, the founding partners of Nottingham Spirk are profiled.
 
"The closest thing in America to Thomas Edison’s New Jersey laboratory is a decommissioned Christian Science church in Cleveland. It’s here that John Nottingham, John Spirk and their team of 70 inventors, tinkerers and support staff have cooked up the Swiffer SweeperVac, Crest Spinbrush, Dirt Devil vacuum and nearly 1,000 other patented products. No, nothing as momentous as the light bulb or the phonograph, but in their nearly anonymous way -- even in Ohio, almost no one has heard of them -- Nottingham and Spirk have proven themselves as good at making money as the Wizard of Menlo Park himself."
 
“We’re probably responsible for more patents than any other company our size,” says Nottingham.
 
Read the rest right here.

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
though poorly timed, united runs massive business feature in latest in-flight mag
In the latest issue of Hemispheres, United Airlines' in-flight magazine, there was a massive Dossier on Cleveland and the region. These special supplements give readers an in-depth overview of the economic development activities in a region, including the unique initiatives that shape its industry and commerce and the influence it has on the global economy.
 
Read the comprehensive report here.

brownflynn set to relocate from suburbs to historic van sweringen offices in terminal tower
The historic Terminal Tower offices of the Van Sweringen brothers, the duo that built the iconic skyscraper and the streetcar suburb of Shaker Heights, will soon be occupied by a women-owned consulting firm that helps businesses and organizations embrace a more sustainable future.

BrownFlynn is relocating from Highland Heights to the tower's 36th floor. The firm, which provides sustainability consulting, communications and training, needs more space. The 7,000-square-foot office, boasting panoramic views of the city and located a few flights below the Observation Deck, will be completely renovated by the end of April.

"Clearly, we're committed to the city and want to be part of its vibrancy," says principal Margie Flynn. "We're committed to sustainability and want to make sure we're walking the talk in what we're doing. And the essence of sustainability is really historic preservation."

Flynn says her employees, many of whom live in the city, are very excited about being downtown. The office gives BrownFlynn room to grow, and the firm can welcome out-of-town guests via RTA's Red Line, which stops in Tower City.

"The space has a tremendous amount of natural light," Flynn comments. "We're going to adapt the space as a very open, collaborative work environment."

Vocon is helping to design the space, while Forest City, which owns the Terminal Tower and has been a major player in corporate sustainability nationwide, will facilitate renovations. Instead of reusing the massive corner offices as private suites, as the Vans once did, the principals plan to convert these spaces into open offices to encourage collaboration and stimulate creative thinking.

"The most important thing is to have a very open inviting environment for our team," says Flynn, adding that BrownFlynn could grow from 14 to 21 employees in the coming years to keep up with growing demand for its services.

BrownFlynn secured a job creation grant from the City of Cleveland to help facilitate the move.


Source: Margie Flynn
Writer: Lee Chilcote
cleveland ranks high in list of healthcare venture investments in latest report
Cleveland continues to gain momentum in leading the country and the Midwest in biomedical investments, according to BioEnterprise’s 2013 Midwest Healthcare Venture Investment Report. The report, released last month, shows that while overall investing is down nationwide, biomedical investments in health IT and medical devices in Northeast Ohio continue to be on the rise.

Ohio ranked number-one in healthcare venture investments. Cleveland earned the number-two regional ranking with $201.2 million invested in 50 companies, second only to Minneapolis. “It’s a very strong report, particularly for medical devices in the Midwest,” says Aram Nerpouni, president and CEO of BioEnterprise. “There is a strong pipeline of companies coming out of the Cleveland area.”
 
This is the second year the Cleveland area has seen $200 million in venture capital coming into the medical field, according to Nerpouni. But the ranking has taken years of effort. “As a region, it’s something we’ve been working toward for a decade now,” he says, crediting the area’s healthcare systems, universities and savvy entrepreneurs with the investment increase.
 
Ten years ago Cleveland’s leaders recognized the region’s assets in the biomedical field and have worked to create a reputation. But Nerpouni cautions we are only just beginning. “Look at it as a very good start,” he says. “We have to strike a balance of celebrating the progress but not getting too confident that it’s automatic.”
 
Nerpouni cites institutions like Cleveland Clinic Innovations, the Global Cardiovascular Innovation Center, and University Hospitals’ Harrington Discovery Institute, and now the Global Center for Health Innovation as just some of the contributors to the region’s growth in the biomedical field.
 
“Look at how much growth has happened, we’re just seeing this steady progress,” he says. “You begin to find there’s this flywheel gaining momentum.”

 
Source: Aram Nerpouni
Writer: Karin Connelly
cleveland metroparks zoo passes million-visitor mark for 21st year in a row
During the calendar year of 2013, 1,123,660 people enjoyed the Cleveland Metroparks Zoo, making it the 21st year in a row that the attraction passed the million-guest mark.
 
Heavy rains brought the total down from the previous year, which welcomed 1,170,443 guests.
 
2014 is shaping up to be another banner year thanks to the new Circle of Wildlife carousel ride and accompanying Nature Discovery Zone in the area known as Savanna Ridge. Both are slated for a late spring debut. The carousel will feature 64 hand-carved wildlife figures and two chariots in a three-season pavilion.
 
Read the rest of the good news here.

team neo attracted a record number of businesses to the region in 2013
Team NEO, the entity charged with marketing Northeast Ohio to the rest of the country and the world, brought a record 16 new businesses to the region in 2013, seven of which are in Cuyahoga County. The new companies add to the region almost 1,400 new jobs and more than $85 million in new annual payroll. The average salary in these companies is $62,000, which also is a record high. The majority of the companies are in manufacturing, healthcare and biomedical.  
 
“Obviously, we’re really happy about this,” says Tom Waltermire, Team NEO CEO. “The reasons the companies are here vary significantly, but they’re here because we have a whole bunch of resources available.” Three criteria attracted companies to Northeast Ohio, says Waltermire: close proximity to customers; low cost of doing business; and the ability to find and train the talent they need.
 
Team NEO has been promoting the 18-county Northeast Ohio region since 2007. In seven years, the organization has attracted 83 companies and 6,200 jobs to the area. The organization averaged nine to 12 new companies in each of its first five years. Last year, Team NEO brought 15 new companies to the area.
 
Waltermire attributes the rising interest in Northeast Ohio to increased awareness. “All of us as a community and a region are just getting better at this,” he says, adding that as consultants become more familiar with the region, they're more apt to promote it. “As we’ve been marketing the region for seven years, we’re becoming progressively better known.”
 
He also says both newcomers and lifelong residents have helped improve the region’s reputation. “Whether it’s a cocktail party or in a coffee shop, when you get that buzz going and get that informed ambassador effect going, then you’re really rolling.”
 
Of course, Team NEO alone does not take the credit for attracting the 16 companies. JobsOhio, the state and local communities all were involved in wooing new business to the region.

 
Source: Tom Waltermire
Writer: Karin Connelly
stories from the stove: cle's oldest restaurants have seen, been part of neighborhood change
We often don't give our old neighborhood restaurants a second thought, but they stand both as witnesses of and agents to change. As the world evolves all around them, they stand firm but flexible, preserving a delicious taste of the past while serving the ever-shifting needs of today's clientele.
growing under glass: from seed to harvest at green city growers
From a 3.25-acre hydroponic greenhouse in the Central neighborhood, Green City Growers Cooperative grows and sells a staggering three million heads of lettuce and another 300,000 pounds of herbs per year. All of those products are sold locally to grocery stores and food service companies within a 50-mile radius.
all aboard: urban transit stations redeveloped as neighborhood amenities
Even as the economy recovers, Americans are driving less and taking public transit more. With all that demand comes congestion and backups at major rail hubs. But smart cities are anticipating and adapting so that the transit station of tomorrow is a true neighborhood amenity.
tonight's techpint event could net one clever entrepreneur $5k
Tonight, January 23, FlashStarts will be hosting Global Pitcher Night at the January TechPint event at Mahall’s 20 Lanes in Lakewood. Don't come expecting free pitchers of beer; the night is about providing budding entrepreneurs with the opportunity to get up and pitch their business ideas for a chance to take home $5,000.

“We call it a karaoke-for-entrepreneurs concept,” says FlashStarts co-founder Charles Stack. “It’s an irreverent approach to a business competition. Pitchers will get a few minutes at the microphone, then the crowd will hoot and holler.”
 
Six pitchers will be selected to present a three-minute pitch, followed by two minutes of Q&A from the audience. A team of judges from FlashStarts and sponsor Arsenal Venture Partners will decide how the $5,000 will be awarded, either winner-take-all or by dividing it up among multiple winners. The audience also will get to provide input.
 
“It really is as informal a process as you will see, but we’re taking it seriously,” says Stack. “We’re trying to brew up new ideas.”
 
Interested pitchers should email 100-word pitches to techpint@flashstarts.com up until 4 p.m. today. Stack says they’ve already received more than a dozen applications. Doors open at 4:30 p.m., and the pitches begin at 5 p.m. Those who show up before 5:30 p.m. get an extra drink ticket.
 
Stack and Doug Hardman, founder of SparkBase, will speak after the pitch presentation, followed by an after party. Tickets are $15 and include a free pint of beer and some food.

 
Source: Charles Stack
Writer: Karin Connelly
cleveland gets noticed as green meetings and events locale
GreenBiz, a publication devoted to helping companies integrate environmental responsibility into their operations, included Cleveland in a recent listing of "Top 10 U.S. Cities for Green Meetings in 2014."
 
Thanks to the massive environmental footprint of air travel, audiovisual equipment, food waste and more, the meetings and event industry is one of the most wasteful sectors in the US.
 
But the news is not all bad, states the article. "A handful of destinations recently debuted new or renovated meetings facilities with an environmental focus, making the new year a particularly exciting one for green meetings."
 
"These 10 cities in particular stand out as top choices for sustainable events in 2014:"
 
10. Cleveland
 
"Last year, Cleveland welcomed two neighboring meeting venues along its revitalized waterfront: the Cleveland Convention Center and Global Center for Health Innovation, which hosts medical events. Both were designed with an eye on sustainability; features include 138 bike racks, water-efficient landscaping, motion sensors and low-flow washroom fixtures. The convention center has a green roof with extensive plant life and soil materials, while the Global Center includes a white reflective roof. Half of the nearly nine-acre site used for the buildings has been preserved as open space, and 97 percent of debris was recycled during construction. The venues are currently seeking LEED Silver certification."
 
"Sustainability is not just addressed in the design of these venues -- sustainability is the design of these venues," says Sarah Blanchard, spokesperson for LMN architects, which designed the facilities. "Displaying the future of health and health care and welcoming visitors from across the globe to a state-of-the-art convention center are civic hallmarks that demand a design centered on efficiency and technology."
 
Read the rest of the green news here.

dxy solutions expands mobile business, opens new offices, adds key employees
Dan Young, owner of DXY Solutions, has been a busy man. The mobile app developer has hired additional staff, opened West Coast and international offices and is expanding his company's breadth of capabilities. “We started off as a mobile company,” explains Young. “Mobile apps are very popular, but we’re looking to put mobile technology in the palm of the user’s hand. We’re looking at design and connectivity to the user’s environment.”

One area where DXY has thrived is in the medical field. For instance, the company designed an interactive iPad application for the Cleveland Clinic to better assess concussions. The app works with sensor devices to provide more accurate and comprehensive information than solely relying on human observation.
 
Young also is developing apps that interact with home automation devices and interactive android-based kiosks to help with way finding on large hospital campuses. “Users can walk up to the kiosk and they are directed where they need to go,” Young says. “We’ll be ready to deliver to clients this summer.”
 
To facilitate all these projects, DYX opened offices in Seattle and Berlin and brought on seven new employees, bringing the total to 23, 20 of whom are in DXY’s new Ohio City offices. Kate Hawk, who was brought on as marketing manager last summer, moved to Seattle to oversee business out west.
 
The Berlin office came out of a group of interactive designers Young employs there. “Berlin is the hot technology scene right now in Europe,” notes Young. “Last year was quite a bit of growth. It’s been stressful, but it’s been a fun ride.”
 
The coming year is shaping up to be just as exciting. DXY will launch an interactive web site for the Akron Public Schools in February, is launching this spring a new version of its virtual historical tour guide Curatescape, and will continue to grow its relationships in the medical community.

 
Source: Dan Young
Writer: Karin Connelly
embrace pet insurance forms new partnerships in banner year
Pet owners are beginning to realize the value of quality pet insurance, resulting in rapid growth for Embrace Pet Insurance. With that growth comes new hires, a change in investors and a partnership with a celebrity veterinarian.

While less than one percent of U.S. pet owners insure their pets -- compared to 25 percent in the UK -- founder Laura Bennett is working to change those numbers by going to vets and educating them about the benefits of insurance and encouraging them to recommend Embrace to their clients.
 
Embrace partnered with some comprehensive insurance companies last year. Most recently, Bennett signed on several large, well-known insurance companies to offer Embrace pet insurance to their clients.
 
To keep up with its growth, Embrace hired 17 employees last year. “I was like, holy moly,” says founder Laura Bennett. “And we have a number of positions open too. We’re now at 47 employees from 30. That’s growth of more than 50 percent.” Most of the hiring was in the claims, customer service and tech departments.
 
Amid all the hiring, Beauvest US, a private equity investor from Canada, bought out Embrace's venture investors. “Our prior investors had been in for over five years and were ready to move on per their investment guidelines,” says Bennett. “It’s good for Embrace in that our new investor is prepared to invest more money for us to grow and become more efficient. This person used to work in the insurance industry in Canada and sold his businesses. He understands our business.”
 
Earlier this month Embrace announced that the company has partnered with celebrity veterinarian, Dr. Marty Becker, known as “America’s Veterinarian,” to help spread the word about the importance of pet insurance. “He basically approached us,” Bennett says. “It builds awareness to our product in general and brings a lot of credibility to the Embrace brand.”
 
Later this year Embrace will move offices to accommodate its growth.

 
Source: Laura Bennett
Writer: Karin Connelly