Introducing The New NEO Jobs Report - Crain's Cleveland

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20140811-NEWS--1-NAT-CCI-CL --8/8/20145:05 PMPage 1 2.00/AUGUST 11 - 17, 2014Introducing the new NEO jobs reportBy SCOTT SUTTELLssuttell@crain.comThe world increasingly is filledwith quick-to-access data about allsorts of topics. Crain’s ispartnering with TheAhola Corp., a payrolland human resourcesREPORT services company inBrecksville, and localeconomist Jack Kleinhenz to provide monthly data — and clarity —about a key factor in business deci-ACEsionmaking: the size of NortheastOhio’s work force.It’s called the Ahola Crain’s Employment Report, or ACE Report.The report is derived from actualpayroll data — not surveys — collected by Ahola, and it uses an economic model “comprised of economic variables that significantlyinfluence regional employment,”said Kleinhenz, CEO of Kleinhenz &Associates, an economic and business consulting firm specializing inregional economics, market re-search, forecasting, policy analysisand economic and business modeling.Kleinhenz, who also serves as thechief economist for the NationalRetail Federation, said the modelused for the ACE Report is similarto the one used by the influentialADP National Employment Report,published monthly by the ADP Research Institute in collaborationwith Moody’s Analytics. The ADPreport, like the ACE Report, is basedon actual transactional payrolldata.“The data is giving us a goodreading on what’s actually happening in the region,” Kleinhenz said ofthe ACE Report.The ACE Report will be postedon CrainsCleveland.com on thethird Friday of each month. Thefirst installment of the report will beavailable this Friday, Aug. 15. It willfeature data on Northeast Ohio private-sector employment brokendown by company size, as well asthree-monthandsix-monthtrends.Data also examines employmentin goods-producing and service industries.Kleinhenz said the ACE Reportmodel builds on one he developedin 2008, along with fellow localeconomists Russ Smith and JordanVickers, to forecast regional employment by incorporating a forecast of job growth for small andmidsize companies.The ACE Report uses employSee ACE REPORT, page 7Local tech scene isgetting quite a joltBy CHUCK SODERcsoder@crain.comTUITION DISCOUNTS ON THE RISESurvey shows steady increase in savings for students at private, nonprofit collegesBy TIMOTHY MAGAWtmagaw@crain.comago or so, Bob HelmerAusualdecadeadmits it would have been unfor a university president toeducation can dwarf what it wouldcost to attend a state school. AtBaldwin Wallace, undergraduatetuition — not counting room andboard — is listed around 28,800 forthe 2014-15 academic year. AtOberlin College, one of the region’smost elite private schools, thatnumber would hover around 48,000. Kent State’s tuition isSee TUITION, page 22See DEALS, page 80NEWSPAPER74470 83781732talk tuition with prospective students or their families.“Ten years ago, I would havespent a lot time talking about theinstitution,” said Helmer, who hasserved as president of Baldwin Wallace University, a private institution, in Berea since 2012.“Today, it’s not unusual for parents meeting me in the hallway toimmediately zero in on the cost ofeducation.”Public university presidentscould say the same, but that dialogue is amplified at private colleges, where the sticker price of anThe local technology communityhas been waiting desperately for aday like July 31.That Thursday morning, OracleCorp. announced it would buy TOATechnologies — a Beachwood software company that easily couldhave fetched 500 million, according to two outsiders familiar withthe industry.And that afternoon, a South Carolina 3D printing company called3D Systems said it would pay 120million for Simbionix, a surgerysimulation company based inCleveland.It was an important day for thosecompanies — and many other people in Northeast Ohio’s tech scene.A huge chunk of the cash fromthe two deals will be distributed to along list of local people.The founders. Employees whohold stock. And investors who areanxious to finance more local startup companies.July 31 was the kind of day thatmakes members of the local techcommunity hold their heads higher,according to Tom Sudow, who usedto manage the now-defunct Beachwood business incubator thathoused TOA when it was a startup.Sudow said he could feel the excitement a few days later, while attending a monthly meeting thatBioEnterprise, a Cleveland-basedeconomic development group,hosts for investors and other peopleinterested in local biomedical tech-nology startups.“We’ve not had a day in Cleveland like we had last week,” according to Sudow, who works to attractbiomedical companies to the regionthrough Team NEO and the Cleveland Clinic’s Global CardiovascularInnovation Center.One of the biggest winners is Early Stage Partners, which invested inboth TOA and Simbionix.And Early Stage, which used to beone of the most active venture capital firms in Northeast Ohio, reallyneeded a win.After 12 years, none of the companies in its portfolio had been soldfor a significant profit. So once theCleveland-based firm finished making investments from its first twofunds, it didn’t raise a new one.But the returns generated by TOAand Simbionix could revitalize Early Stage.The firm plans to start raisingmoney for a third fund later thisyear, according to Jim Petras, managing director.Cash from the deals also will givea boost to other venture capitalfirms that regularly invest in localcompanies, such as Draper TriangleVentures of Pittsburgh and RiverCities Capital of Cincinnati.That makes Paul Cohn happy. Allthree firms received investmentsfrom the Ohio Capital Fund, a taxpayer-backed “fund of funds” thatinvests in venture capital firms thatcommit to financing companies inOhio.“That’s three checks back to usPages 18-20Entire contents 2014by Crain Communications Inc.Vol. 35, No. 32

20140811-NEWS--2-NAT-CCI-CL --28/8/2014CRAIN’S CLEVELAND BUSINESS2:56 PMPage 1WWW.CRAINSCLEVELAND.COMAUGUST 11-17, 2014700 W. St. Clair Ave., Suite 310,Cleveland, OH 44113-1230Phone: (216) 522-1383Fax: (216) 694-4264www.crainscleveland.comLet yourhealth plan goto the birds.D you see a solution to theDogrowing gaps in your benefits?gYour employees may.YIt’s called voluntary insurance, and almostIt60 percent of employees wish their employer6offered it1.oIn this changing insurance landscape, Aflac hasoffered voluntary coverage and nothing else foronearly 60 years. And it shows. With a one-daynaverage turnaround2 for online claims, Aflac is aagreat way to make employees happy, which maygmake you happy as well.mBest of all, Aflac comes at no direct cost toBemployers like you. Just add a payroll deduction,enotify your workforce and let it fly.nCall your local agent and visitCaflac.com/businessaCrain Communications Inc.12013 Aflac WorkForces Report, a study conducted by Research Now on behalf of Aflac, January 7 – 24, 2013. 2Aflac Company Statistics, October 2013, One day processing turnaround based on businessdays after required documents are received. Online claims available for Accident, Sickness, Cancer & Wellness claims. Coverage is underwritten by American Family Life Assurance Companyof Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters 1932 Wynnton Road Columbus, GA 31999Z131176Publisher:John Campanelli (jcampanelli@crain.com)Editor: Elizabeth McIntyre(emcintyre@crain.com)Managing editor: Scott Suttell(ssuttell@crain.com)Sections editor: Amy Ann Stoessel(astoessel@crain.com)Assistant editor: Kevin Kleps(kkleps@crain.com) SportsSenior reporter: Stan Bullard(sbullard@crain.com) Real estate and constructionReporters:Jay Miller (jmiller@crain.com) GovernmentChuck Soder (csoder@crain.com) TechnologyDan Shingler (dshingler@crain.com)Energy, steel and automotiveTim Magaw (tmagaw@crain.com)Health care and educationRachel McCafferty (rmccafferty@crain.com)Manufacturing and energyResearch editor:Deborah W. Hillyer (dhillyer@crain.com)Cartoonist/illustrator: Rich WilliamsArt director: Rebecca R. Markovitz(rmarkovitz@crain.com)Events manager: Jessica Snyder(jdsnyder@crain.com)Special events coordinator: Kim Hill(kehill@crain.com)Marketing strategist : Michelle Sustar(msustar@crain.com)Advertising director: Nicole Mastrangelo(nmastrangelo@crain.com)Account executives:Dawn Donegan (ddonegan@crain.com)Andy Hollander (ahollander@crain.com)Lindsie Bowman (lbowman@crain.com)John Banks (jbanks@crain.com)Michael Jansen (mjansen@crain.com)Office coordinator: Denise Donaldson(ddonaldson@crain.com)Web Editor: Damon Sims(dpsims@crain.com)Digital strategy director: Nancy Hanus(nhanus@crain.com)Audience development director:Eric Cedo (ecedo@crain.com)Web/Print production director:Craig L. Mackey (cmackey@crain.com)Production assistant/video editor:Steven Bennett (sbennett@crain.com)Billing: Michele Ulman, 313-446-0353(mulman@crain.com)Credit: Todd Masura, 313-446-6097(tmasura@crain.com)Customer service/subscriptions877-824-937311/13Keith E. Crain: ChairmanRance Crain: PresidentMerrilee Crain: SecretaryMary Kay Crain: TreasurerWilliam A. Morrow: Executive vicepresident/operationsChris Crain: Executive Vice President,Director of Strategic OperationsKC Crain: Executive Vice President,Director of Corporate OperationsDave Kamis: Vice president/production& manufacturingAnthony DiPonio: Chief InformationOfficerThomas Stevens : Chief financial OfficerMary Kramer: Group publisherG.D. Crain Jr. Founder (1885-1973)Mrs. G.D. Crain Jr. Chairman (1911-1996)

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20140811-NEWS--4-NAT-CCI-CL --48/8/20141:23 PMPage 1CRAIN’S CLEVELAND BUSINESSWWW.CRAINSCLEVELAND.COMAUGUST 11-17, 2014Browns scoring big withticket sales, renovationsSOLD3021 & 3026 SARATOGA AVENUECANTON, OHIOBy KEVIN KLEPSkkleps@crain.comNewmark Grubb Knight Frankis pleased to announce the saleof 3021 & 3026 Saratoga Avenuein Canton.Terry Coyne represented the selleron this two building,180,000square foot transaction.VisitTerryCoyne.comOr Call Terry at216.453.30011350 Euclid Ave, Suite 300Cleveland, Ohio 44115ADVERTISEMENT“Brian Tucker:CLE Matters”is a weekly blog sponsored byBrian’s blog is delivered weekly inCrain’s FREE Afternoon Report e-newsletter.Register to get this blog delivered right to your inbox atCrainsCleveland.com/Email.By the time single-game tickets goon sale for Cleveland Browns gameson Tuesday, Aug. 12, the opportunities to snap up seats to watch Johnny Manziel will be few — and possibly far between.Individual game tickets are beingmade available about two weeks laterthan normal for a simple reason. TheBrowns — helped in part by Manziel,the rookie quarterback who alreadytops the NFL jersey and players’ association merchandise sales lists —continue to sell season tickets.“A few days ago, I think we sold120 season tickets,” Browns president Alec Scheiner said of a randomweekday at the end of July.The Browns sold 3,000 season tickets in a three-day span after Manzielwas drafted in the first round on May8. That pace was impossible to continue, especially for a franchise withan already-formidable season-ticketbase, but the team has continued toride the wave of Johnny Football-inspired momentum.The Browns have set franchiserecords for new season-ticket andnew suite sales in a season, andtraining camp in Berea, which forthe first time required fans to register online, has exceeded attendancemarks.Scheiner, a senior vice presidentand general counsel for the DallasCowboys prior to his December 2012hiring by then-Browns CEO Joe Banner, compared the build-up to theBrowns’ 2014 season to the ’08 Cowboys. That Dallas team was comingoff a 13-3 season and had its trainingcamp chronicled by HBO’s “HardKnocks” series.“Everyone was like ‘Super Bowl,Super Bowl,’ and you just felt it,”Scheiner said of the summer of 2008.“In training camp, you felt the extraenergy and pressure. I feel it this year.It’s definitely heightened beyond lastyear. I was really impressed last yearby how passionate our fans are.”The Browns haven’t reached 13wins since the 1948 team was perfectin 14 regular-season games and defeated Buffalo for the All-AmericaFootball Conference championship.Scheiner isn’t predicting double-digit victories for a franchise that hasn’twon more than five games in a season since 2007, but his optimism exceeds that of the hardened fan.“I think people sense that we’rebuilding something,” Scheiner said.That’s the ticketThe physical part of the Browns’renovations — the first phase of thetwo-year, 120 million redesign ofFirstEnergy Stadium — has reducedthe number of available seats to68,000 from 72,000.Fewer tickets combined with increased demand has meant theBrowns have come close to reachingtheir season-ticket cap.Scheiner said NFL teams typicallyreserve 5% to 10% of their tickets forKEVIN KLEPSThe look of the west end zone at FirstEnergy Stadium has changed quite a bitsince the media was given a tour on June 14.their employees, players (theirs andthe visitors), and single-game andgroup sales.“Let’s say you have about 70,000capacity, you probably say, ‘Hey,when I get to about 64,000, I’m done(selling season tickets),’ ” Scheinersaid.As of last Monday, Aug. 4, theBrowns weren’t there yet, but theywere close.“The difference is we’ve reallyhad to think about that this year,”Scheiner said of the team’s seasonticket maximum. “What is thatnumber for us? When do we stop?That’s what I don’t think they’vehad here in a long time.”Last week, the Browns gave season-ticket holders a five-day windowto buy individual seats for their twopreseason and eight regular-seasonhome games. By the time that salefinished, Scheiner didn’t expectmany seats would remain when therest of the tickets are made availableto purchase on Aug. 12.“This year, we’ve had so muchdemand for season tickets, we’vewaited a little (to sell individualseats) because once we go singlegame, that’s it,” Scheiner said. “Wecan’t sell any more season ticketsbecause they’ll get scooped up immediately.”The party is this wayThe Browns have benefited fromthe hype in other areas, and theysay it’s not just because of the rookie who is both a darling of the teamshop and a favorite of TMZ.The team said it sold more merchandise in the first four days oftraining camp this year than it didin all 13 practices combined in2013. Sales of team merchandise(gear that doesn’t feature Manziel’sNo. 2) have gone up “significantly”in camp, a source said.The Browns have also had yearover-year increases to their digitalproperties of 135% in video views,159% in mobile views and 60% inunique visitors to their website fromdesktop computers.They hope that momentum spillsover to the new fan experience elements brought by the first phase ofthe two-year stadium renovation.The Ford Zone in the northeastcorner and the Bud Light BalconyVolume 35, Number 32 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 WestSt. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright 2014 by Crain CommunicationsInc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: 2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.REPRINT INFORMATION: 800-290-5460 Ext. 136on the southeast end of FirstEnergyStadium will bring an element theteam believes was absent from the15-year-old facility.“I think last year when you wentto our stadium, there were very fewplaces that as an ordinary fan, youcould say, ‘This is pretty cool,’ ”Scheiner said.The team president said the newparty zones behind the massivescoreboards will provide “greatviews and “really cool amenities.”The team soon will announce another feature geared toward improving the fan experience — a yetto-be-named party festival alongAlfred Lerner Way, the street thatlines the southeast portion of thestadium.The area will include food trucks,live music and appearances by various Browns alumni.“That is going to big,” Scheinersaid. “That’s a big investment byus.”One improvement that won’t bemade in the first phase of renovations is to the Wi-Fi and cellular networks at FirstEnergy Stadium.Bloomberg Businessweek reported in January that the NFL had toldthe teams that weren’t yet Wi-Fi-enabled (a number Bloomberg estimated at 12) that they needed to getup to speed before the 2015 season.Scheiner said the Browns willmeet that timeline, since technologyupgrades are part of the secondphase of the stadium renovations.He’s just not sure if it will be Wi-Fi ora different type of digital upgrade.(Verizon and AT&T are among thecompanies that have developedmulticast technology, which establishes set channels for mobile devices that can broadcast video.)“What we have to determine iswhether it’s Wi-Fi or other technology upgrades, and whether they’llbe viable and worthwhile two orthree years from now,” Scheiners

Ahola Corp., a payroll and human resources services company in Brecksville, and local economist Jack Kleinhenz to pro-vide monthly data — and clarity — about a key factor in business deci-sionmaking: the size of Northeast Ohio’s work force. It’s called the Ahola Crain’s Em-ployment