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August 2009 Fund Newsletter


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Read the August 2009 newsletter to Fund members. This month's issue includes the announcement of the EfficientGovNow award recipients, the Fund's first $1 million commitment to Phase 3, Dashboard 2009 results, an update on the Fund's grantees, and more.

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August 2009 Fund Newsletter

  1. 1. F U N D F O R O U R E C O N O M I C F U T U R E August ‘09 Members Newsletter EfficientGovNow Award Recipients Announced Hundreds of local governments and more than 13,000 residents participated in the first ever EfficientGovNow competition hosted by the Fund for Our Economic Future. On Thursday, Aug. 6, Fund Chairman Dave Abbott announced the three government collaborations that will receive grants from the Fund during a live webcast at the studios of WKYC-TV. Northeast Ohio by THE TOP THREE VOTE GETTERS WERE: the Numbers >> Rollin’ on the River: Mahoning River Corridor Redevelopment Project >> Westshore Regional Fire District Project 6 >> Mahoning/Youngstown Regional Information System For complete voting results and to track future progress of these government Six companies received collaboration projects, visit $300,000 in investments from “The response to EfficientGovNow by both local governments and the public Lorain County Community demonstrates the region’s support for greater government collaboration and efficiency,” College’s Innovation Fund Abbott said. “The variety of projects and the public’s enthusiasm shows that opportunities for collaboration and efficiency are everywhere. The people of Northeast Ohio want to see 1 these partnerships take place and recognize they can make a difference by coming together and supporting change. They understand that increasing government collaboration The Fuel Cell Prototyping and efficiency is important to strengthening our region’s economic competitiveness.” Center in Stark County received The three grant recipients celebrated their victories and touted the opportunities for $1 million in funding from the more government collaboration across the region. federal government “We hope this process we’re going through will be a model for others to emulate,” 3.7 said Bay Village Mayor Debbie Sutherland, who is leading the Westshore Regional Fire District Project. The National Institute of Health “It’s like winning an election, it’s very exciting,” Mahoning County Auditor Michael awarded Case Western Reserve Uni- Sciortino told WKBN-TV in Youngstown. versity $3.7M to study abnormalities The EfficientGovNow program was an opportunity for residents throughout the in the autonomic nervous system Mahoning Valley to rally behind regional collaboration. “We are collaborative, we are organized and we are committed to the entire Mahoning Valley – not just to our individual communities,” Tony Paglia, the Youngstown/ Warren Regional Chamber’s vice president of government affairs told The Vindicator. EfficientGovNow “helped to move our area in the right direction. We’re a more united Valley than we’ve ever been before and this collaboration experience will affect the region for a long time to come,” Paglia said. In an editorial, The Vindicator praised voters for uniting behind government collaboration: ffef “By casting their votes for the projects, residents were sending a strong message to the decision-makers in the public sector: The status quo of the many layers of government agencies is no longer acceptable or sustainable.” (Continued on Pg. 2) August ‘09 Members Newsletter
  2. 2. EfficientGovNow Award Recipients Announced (Continued from Pg. 1) Fund President Brad Whitehead emphasized that while only three projects received grant dollars, every one of the groups that submitted an EfficientGovNow proposal is overseeing an important initiative that should be pursued. “We will reach out to the other finalists to find out how we might be able to help move their projects forward. Kent State University’s Center for Public Administration & Public Policy will be following up with all of the applicants and the Fund will report on their progress to the public,” said Whitehead. “We hope that through the response to EfficientGovNow, the momentum is in place to further accelerate government collaboration and efficiency efforts throughout the region,” Northeast Ohio by he said. “The public is excited about these initiatives and with increased awareness comes the Numbers the expectation that collaborations will take place.” 5 EFFICIENTGOVNOW BY THE NUMBERS: The Pew Charitable Trusts’ recent 65 abstracts submitted (goal of 15) Clean Energy Economy report 294 unique governmental entities partnering ranks Ohio in the top 5 states 14 of 16 counties represented in the country for number of jobs in 45 partnerships invited to submit full proposal the Clean Energy Economy 39 proposals met full EfficientGovNow criteria 10 9 finalists selected 13,483 qualified votes accepted Entrepreneur magazine named Youngstown one of the nation’s 10 best cities in which to start a company Fund Receives First $1 Million Phase 3 Commitment 4 In its annual honor roll of The Kent H. Smith Charitable Trust met in July and approved a pledge of $1 million elite medical centers, U.S. News to the third phase of the Fund for Our Economic Future. This is the Fund’s largest pledge & World Report ranked Cleveland to date for Phase 3, which will begin in March 2010. Clinic as the fourth best In a letter to Fund Chairman Dave Abbott, trustees William B. La Place and hospital in the nation Phillip A. Ranney said: The Kent H. Smith Charitable Trust faces the same fiscal strain experienced by other foundations as we all work through our global financial turmoil and the stock market’s fall. Like our foundation partners, the value of the Trust’s assets has declined from its value at the end of 2007. But, despite financial problems, the Trustees believe our founder, Kent H. Smith, would consider the Fund an excellent grantmaking investment. The Trustees believe he would have strongly endorsed the Fund’s past accomplishments in stimulating economic competitiveness. We also believe he would have strongly endorsed the advantages of leveraged, collaborative grantmaking through the pooling of a part of the Trust’s resources with those of the Fund’s other funders. For this reason, the Trustees have temporarily departed from their policy of not making new substantial pledges or grants in 2009 and are making this pledge. Pg. 2 1 4 2 2 E u c l i d A v e n u e , S u i t e 1 5 1 0 , C l e v e l a n d , O h i o 44115 • 2 1 6 . 9 2 5 . 4 9 0 0 • w w w . f u t u r e f u n d n e o . o r g
  3. 3. Bagley Joins NorTech’s Leadership Team Fund grantee NorTech recently announced the appointment of Rebecca O. Bagley, a nationally recognized technology-based economic development executive, as president- elect. Later this year, Bagley will succeed Dorothy C. Baunach as president and chief executive officer, at which time Baunach will become president emeritus. She will continue to serve as a special adviser to the organization until December 2010. The moves are consistent with the organization’s long-term succession plan, which was part of NorTech’s 2008 strategy review process. “After focusing on our portfolio of initiatives and clarifying NorTech’s mission, role and project priorities, we further sought to ensure that our organization will continue to have strong leadership into the future,” said Les C. Vinney, chairman of NorTech’s board of directors. Rebecca O. Bagley “We are extremely confident that Rebecca Bagley brings the necessary skills to play a vital President-elect role in carrying forward our mission of supporting and nurturing Northeast Ohio’s most promising NorTech technology projects and initiatives to help create new technology industries and make the region’s economy more globally competitive. All of Northeast Ohio stands to benefit from her outstanding combination of experience in economic development, investment and government, as well as extensive knowledge of technology, research commercialization and industry building.” Bagley most recently served as deputy secretary for the Technology Investment Office of the Pennsylvania Department of Community and Economic Development. In that capacity, she oversaw the operations of an office that serves as a catalyst for growth and competitiveness for Pennsylvania companies and universities. She also was responsible for the administration of several major state and technology-based economic development programs that support research and commercialization activities. Baunach, in addition to serving in an advisory capacity, plans to take on strategic and complementary project responsibilities for NorTech and the Greater Cleveland Partnership. Fund President Brad Whitehead told The Plain Dealer he is pleased that Baunach will continue to play a significant role with the region’s economic development organizations. “Dorothy has been a foundational leader of Northeast Ohio and she’s been involved in almost every initiative of significance on the economic development scene for a long time,” he said. Stark Community Foundation Names New Leader Stark Community Foundation has named Mark J. Samolczyk as its next president. Samolczyk will take on full-time duties in October as president designate, and in January succeed President James A. Bower, who is resigning at the end of the year. A retired Timken Co. executive, Samolczyk is a past chairman of Junior Achievement Mark J. Samolczyk President designate of East Central Ohio, a board member of the United Way of Greater Stark County, a board Stark Community Foundation member of the William McKinley Presidential Library and Museum, a member of the Manufacturers’ Alliance for Productivity and Innovation, serves on the Walsh University Advisory Council, and is past chairman of the American Bearing Manufacturers Association. ffef Bower has represented the foundation on the Fund since 2004, and his active participation and leadership will be missed. Pg. 3 August ‘09 Members Newsletter
  4. 4. Strong Tool Growing with MBA 2.5+ Assistance The Fund regularly features Strong Tool Company LLC Cleveland, OH Northeast Ohio companies being helped by our grantees. These Company overview: Strong Tool Company LLC, one of the nation’s premier companies, including the one distributors of metalworking products and industrial supplies, is an ISO 9001: 2000 featured here, are part of the certified company with a broad range of initiatives in e-commerce, customer service and region’s portfolio of growing inventory management. Celebrating its 50th year in business, Strong Tool Company services businesses that are building our approximately 1,700 accounts, including biomedical, aerospace, automotive, service and region’s economic future. government. By diversifying its customer base, Strong Tool Company recently landed a three-year, multimillion-dollar contract with GE Healthcare. Strong Tool President Cedric Beckett recently shared with the Fund the story of how the distributor has evolved since he bought the company in 2002. What makes Strong Tool special? The Strong Tool Company offers an extremely broad range of industrial supplies, meaning it can effectively compete with other broad-line suppliers in obtaining contracts from purchasers who are in the process of consolidating their supply base. How has the MBA 2.5+ helped Strong Tool? As a predominately automotive-based company facing difficult economic times, Strong Tool needed assistance in quickening the relationship building process required to diversify its customer base. The MBA 2.5+ helped Strong Tool expedite the process of identifying, validating and matching its capabilities to large corporations, such as General Electric. Why is Northeast Ohio a good location for Strong Tool? Northeast Ohio is a central strategic location for regional distribution, allowing the company to service Midwest customers within a day and serve the rest of the nation within two days. From an entrepreneurial position, Northeast Ohio has the largest small business support system for services, benefits and training. Also, Strong Tool benefits from the number and diversity of large businesses it serves within Northeast Ohio. Pg. 4 1 4 2 2 E u c l i d A v e n u e , S u i t e 1 5 1 0 , C l e v e l a n d , O h i o 44115 • 2 1 6 . 9 2 5 . 4 9 0 0 • w w w . f u t u r e f u n d n e o . o r g
  5. 5. Grantees Making Progress on More Vibrant Economic Future The following is a summary of the regional economic development organizations supported by the Fund for Our Economic Future and a brief update on the outcomes of their work. MISSION: Form, recruit, accelerate and grow health care and bioscience companies. METRIC: Venture capital attracted by portfolio companies. UPDATE: Reported that 17 Northeast Ohio health care companies raised $30.5 million in the first half of 2009. Assisted in attracting five start-up bioscience companies Northeast Ohio by to the region. the Numbers 6 Federal spending bills contain nearly $6 million for Trumbull MISSION: Accelerate growth of early-stage businesses and ideas into venture-ready and Mahoning county projects, including money to continue companies. development of a business METRIC: Follow-on capital attracted by portfolio companies. UPDATE: Portfolio companies have received $23 million in outside investments this year, 23 incubator in downtown Warren surpassing their fiscal 2009 goal. JumpStart’s portfolio companies have raised more than $23 million in follow-on funding in 2009, surpassing their annual goal 133.5 MISSION: Support, educate and champion manufacturing in Northern Ohio. Ohio’s Third Frontier Program METRIC: Top-line growth, products developed and brought to market, jobs created/ announced $133.5 million retained and investment of manufacturers. will be available in funding during UPDATE: Received the Managing Automation 2009 Progressive Manufacturing 100 the 2010 fiscal year Award and the High Achiever award in Innovation Mastery for its work developing the anti-leak toilet flapper, Siphon Flush. Received royalty check as orders begin to come in for a photobiotherapy device MAGNET helped support along with Ohio’s Third Frontier Program. ffef August ‘09 Members Newsletter Pg. 5
  6. 6. Grantees Making Progress on More Vibrant Economic Future (Continued from Pg. 5) MISSION: Increase the capacity of existing minority-owned enterprises so that they can significantly boost sales and employment. METRIC: Sales and employment growth of client companies. UPDATE: Helped three minority-owned companies land deals totaling more than Northeast Ohio by $15 million. The companies are in the industrial supply, trucking and construction industries.The Accelerator has assisted 14 minority-owned companies in the Numbers securing new business deals worth an estimated $54.8 million since 2007. Helped Cleveland-based distributor Strong Tool land a multi-year, multimillion 20 dollar contract with GE Healthcare. Stark Education Partnership celebrates its 20th anniversary 250 MISSION: Lead, link and leverage the region’s technology and innovation assets to build a globally competitive regional economy. The opening of regional METRIC: Attraction of research, development and commercialization dollars to region. headquarters of Enterprise rental UPDATE: Named Rebecca Bagley president-elect. Held an Advanced Energy Grant cars in Strongsville will Writing Workshop on July 17. Hosted representatives of Ohio Department of create 250 jobs Development’s Technology and Innovation Division to discuss Ohio Third Frontier funding opportunities for 2010. 200 The City of Youngstown will contribute $200,000 to the Youngstown Regional Development Corp. to help stabilize residential neighborhoods MISSION: Increase high quality lead flow for companies interested in locating or expanding in Northeast Ohio by marketing the region and providing site selection services. METRIC: Business location leads generated and deals closed. UPDATE: Worked with Xchanging to help the global company expand its operations in Northeast Ohio by more than 700 jobs. Xchanging hasn’t yet finalized its lease agreement, but state incentives have been approved. Released a quarterly economic review focusing on Northeast Ohio’s professional, scientific, and technical services sector. Hosted nation’s leading site selectors and provided them with in-depth tour of the region in conjunction with the Pro Football Hall of Fame Induction celebration. Northeast Ohio is on the short list for 15 business expansion projects being worked on by Team NEO. On Aug. 12 the Fund for Our Economic Future issued the fourth edition of the Dashboard of Economic Indicators. The Dashboard is one of the Fund’s key research projects that it sponsors as part of its work to strengthen the economic competitiveness of Northeast Ohio. Pg. 6 1 4 2 2 E u c l i d A v e n u e , S u i t e 1 5 1 0 , C l e v e l a n d , O h i o 44115 • 2 1 6 . 9 2 5 . 4 9 0 0 • w w w . f u t u r e f u n d n e o . o r g
  7. 7. Dashboard Results Released On Aug. 12 the Fund for Our Economic Future issued the fourth edition of the Dashboard of Economic Indicators. The Dashboard is one of the Fund’s key research projects that it sponsors as part of its work to strengthen the economic competitiveness of Northeast Ohio. 2009 SUMMARY WHAT IS THE DASHBOARD? The Dashboard of Economic Indicators provides an extremely detailed analysis of the key factors tied to economic growth in 136 metropolitan areas in the United States, including Northeast Ohio’s four metropolitan statistical areas (MSAs). HOW DOES THE FUND USE THE DASHBOARD? The Dashboard helps guide the Fund’s economic competitiveness work, and it helps measure the region’s economic progress. WHAT TIME PERIOD DOES THE LATEST DASHBOARD COVER? It is important to remember that because of the time lag involved in collecting and reporting economic data, the 2009 Dashboard report is based on data that is primarily from 2007, and in some cases from 2006. WHAT DOES THE DASHBOARD SAY ABOUT THE REGION’S ECONOMIC PERFORMANCE? The 2009 Dashboard provides encouraging signs that the region is making progress in key factors tied to economic growth. However, the region’s overall economic performance continues to lag the rest of the nation. Signs of Progress: The following rankings highlight the improvement the region is making in three key factors tied to growth in per capita income. The rankings is out of 136 MSAs. SKILLED WORKFORCE AND R&D MSA 2006 2007 Akron 68 58 Canton 118 114 GROWTH FACTORS Cleveland 64 61 2 0 07 Youngstown 127 124 SKILLED WORKFORCE AND R&D TECHNOLOGY COMMERCIALIZATION MSA 2006 2007 Akron 58 83 Canton 83 76 Cleveland 98 68 GROWTH FACTORS 2 0 07 Youngstown 133 135 TECHNOLOGY COMMERCIALIZATION RACIAL INCLUSION AND INCOME EQUALITY MSA 2006 2007 Akron 79 74 Canton 41 41 Cleveland 121 121 GROWTH FACTORS 2 0 07 Youngstown 84 80 SKILLED WORKFORCE AND R&D ffef Review the complete Dashboard report at Pg. 7 August ‘09 Members Newsletter