An Economic Development Strategy for the City of Cleveland's. Department of Economic Development. Prepared for:

An Economic Development Strategy for the City of Cleveland's Department of Economic Development Prepared for: The Cleveland Citywide Development Corp...
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An Economic Development Strategy for the City of Cleveland's Department of Economic Development

Prepared for: The Cleveland Citywide Development Corporation

Prepared by: Mohr Partners/Cleveland: Dennis Burnside Jim Robey, Ph.D. Anthony Bango

Introduction Mohr Partners was engaged by the Cleveland Citywide Development Corporation to create an economic development strategy for the City of Cleveland Economic Development Department. The purpose of the strategy is to improve the effectiveness of the city's practices and to validate pre-identified clusters and sites as part of an outreach program to potential site selectors and companies. The Economic Development Department is both strong in its approach to economic development and creative in finding solutions to expanding existing companies, attracting new companies, and working with small businesses to be successful in growing in Cleveland. While the director and staff are perceived to provide excellent service and products, an operations review of specific economic development practices was not within the scope of this work. This study focuses on rather how the presence of cluster industries could be combined with available sites in a strategy of branding and outreach. In the first section of the report, assets like education, transportation and other amenities in the city outside of the industrial base are identified and considered. The next section looks at three specific areas of outreach: creating a brand identity for the Economic Development Department for the city, how that brand should be presented in both the short and long run, and finally how the department should manage relationships when outreach is successful. The third section assesses specific properties and sites available for development. Some of the sites are held by the city and some by private-sector interests, such as developers. The next section looks at and assesses the viability of cluster industries, including looking at their presence in Cleveland and the region, the strength of the region's and city's workforce, and the presence of training assets to support the cluster. The final section is a data appendix that contains all the relevant data in support of the prior sections, as well as recommendations. Why Cleveland? While the following sections focus on the assets of the City of Cleveland, including sites, workforce and training, and cluster industries, the city has a number of assets that make Cleveland a prime place for businesses to locate and expand. First and foremost, the city has a stable and predictable political system. Mayor Frank Jackson and City Council work well together. This is evidenced by the recent signing of HB 525, The Cleveland Plan, in which the mayor was able to bring together diverse constituencies to achieve legislative and policy goals around public education. This is further evidenced by the ability of all parties, including state legislators from both parties as sponsors to the bill and the current Ohio governor, a Republican, to support such sweeping changes to the system within the Cleveland Metropolitan School District. Many large urban communities such as Chicago are trying to

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accomplish similar goals for their local education systems. However, they have been unable to accomplish what Cleveland has succeeded in doing. These efforts build on Cleveland's STEM1 efforts and other specialty schools to increase graduation rates and match skill training with employer demand. When economics are considered, the Cleveland region has lower costs of living and lower costs of doing business than that of the average costs of living and business for the United States.2 These costs of living and doing business are indexed to the United States, with the average costs across the country equal to 100. For costs of living, the index for the Cleveland region3 is 88.6 or about 11% less expensive than that of the United States. The Cleveland region ranks 299th out of 384 regions across the country in the cost of living index. Indexes for some of Cleveland's perceived competitors include (index value in parenthesis): Chicago (102.3), Milwaukee (98.4), Columbus (92.8), Pittsburgh (92.7), Cincinnati (91.2), and Indianapolis (90.7). On the cost side of the business equation, Cleveland again does well overall, with an index of 94, or about 6% less than that of the average costs of business for the United States. This ranks the Cleveland region as 109th among all regions in the United States. The index is comprised of four measures (total index value in parenthesis) including labor costs, energy costs, state and local taxes , and office rents. Similar to costs of living, Cleveland compares well to most competitors on costs of business including Chicago (108), Milwaukee (94), Columbus (91), Pittsburgh (103), Cincinnati (96) and Indianapolis (89). With regard to energy costs, it may be argued that if the forecast for production from the Marcellus and Utica shale plays is correct, energy costs for both natural gas and for electricity are likely to continue to decline and be competitive with other regions. With almost 50% of the U.S. population and 60% of all U.S. Fortune 500 headquarters located within 500 miles/805 km of Cleveland Plus,4 Cleveland's location provides positives in attracting firms to the city. This suggests that Cleveland has a significant competitive advantage in providing access to customers, both personal and corporate. These statistics do not reflect the access to a significant share of the Canadian population and business base that falls within that 500-mile (805km) range. From this logistics perspective, Cleveland also has access to a United Airlines hub airport, extensive rail service by multiple class 1 providers, an extensive interstate highway system to the east, south, and west, and a deepwater port that processes 13 million tons of cargo annually. Cleveland Hopkins Airport offers 230 daily flights to 73 nonstop destinations.5 The deepwater port offers access to many European ports with shorter distances than many east coast ports. Northeast Ohio is also an area that has a low risk of natural hazards. According to Sperling's Best Places6 the Cleveland MSA ranks 158th out of 379 MSA's in terms of its Natural Hazard Index. This index is "based on the risks of tornados, earthquakes, hurricanes, floods, droughts, hail, and other weather events such as extreme rain, snow, heat and cold7." Among these variables, Cleveland is less at risk for earthquakes, tornadoes, extreme weather and draughts. However, Cleveland does have a significant natural hazard risk for hail, flooding and high winds. 2

Finally, the City of Cleveland sits within a region that contains 4 million people and nearly 2 million workers, offering a great supply of skilled workers within reasonable commuting distances. Forbes ranks Cleveland as the 10th best city for commuters within the nation. Cleveland is ranked 4th in the nation for travel delays and 14th for travel time by Forbes as well. A tremendous system of higher education exists within the region and aids in maintaining worker skills. This system includes two- and four-year public institutions, internationally known private institutions, and a growing presence of specialty schools directly targeting workforce needs and those of the employer base. According to the 2010 Census, within a 90 minute drive of downtown Cleveland, 56.5% of people in the region (1,632,057 people) have a high school diploma, 7.6% have Associates degrees (220,210 people), 15.6% of the population (451,539 people) has obtained a Bachelor's degree, and 8.9% of Northeast Ohio residents (258,472 people) have a Graduate or Professional degree. Branding, Outreach, and Concierge The city of Cleveland competes, at least in the economic development arena, with states, regions, counties and other cities in the United States as well as globally to gain the attention of companies and site selectors in marketing the city for attracting and retaining business investment. Many of these competitors are very sophisticated in creating their brand, marketing their brand, and delivering their brand (services) to both existing and new firms. The City of Cleveland Department of Economic Development needs to upgrade its brand identity and marketing efforts to better reach the target market of corporate location decision makers. The first step in conducting global outreach is that it is essential that the City of Cleveland Department of Economic Development create a unique and consistent brand identity across all of its products and platforms. A brand identity has a consistent look and feel, and allows regular users and consumers to immediately recognize the content as tied to the City of Cleveland. Also, within the brand identity should be consistent formatting and content with documents and materials and an online presence. Department of Economic Development Website The primary goal of any site selector is to eliminate states, regions, cities, and sites from their target list of locations. Site selectors are third-party consultants that specialize in helping firms make location decisions, including both expansion and attraction activities. Their first entry into a region and the first pass at gathering information about a geography (from a region to a city) is the website that represents or defines the location. A poorly constructed website, one that fails to communicate the necessary information, or one that has dated, out of date, or incorrect information will help a site selector to dismiss and eliminate that location from consideration.

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In reviewing the Department of Economic Development's website, the first thing that became clear is that it is no different from that of the rest of city's website. While this does conform to the important and prior point on the importance of branding, the city's website is presumably defined and created for use by constituents, essentially the residents and businesses that are already within the city. The website that is the economic development portal for the city needs to reflect a different set of standards and expectations. The expectation is that it must be tuned to the customer, in this case external (to the region) companies looking at Cleveland as a possible point for expansion and investment. Additionally, it must be tuned to better service the "site selection" community. In tuning a website to site selection, it must be efficient in identifying answers to questions and responsive to getting answers within a limited number of "clicks." A review of the Cleveland Department of Economic Development website8 suggests that it is need of a significant overhaul to be more responsive to its target market. In repeated pings to the website, it was at best slow to respond. This may be due to server issues or other Internet traffic, but response time to a website is important, as it communicates information about the quality of information technology infrastructure. On the home page mentioned above, there is very little "economic development" information. The content of the home page appeared to be more about community development than economic development. This page needs to be a "traffic cop" that allows site selectors and other users to get, within a click or two, to decision-related information including (but not limited to): Site information on existing properties that are ready to be occupied Site information on "shovel ready" sites for "build to suit" projects City and regional business and demographic information Program offerings around how to help firms operate and be more efficient and effective if they locate in the City of Cleveland. Such programs could include incentives around workforce and training, and property/site, infrastructure, and other development related aid that the city can provide Access points to city and other staff that can make the site selector's job easier in the decision process, as well as during the project management and completion phase. There are a number of "model" websites that are consistently identified by the site selection community as being among the best. These may be used as examples for the City of Cleveland Department of Economic Development's web portal. These include (but are not limited to): Oklahoma city (OK): http://www.greateroklahomacity.com/ Nashville (TN): http://www.nashville.gov/ecdev/ Kansas City (MO): http://www.nashville.gov/ecdev/

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While each offers a slightly different approach, each is easily found by searching the name of the city and economic development within Google. It is critical that the website/portal be optimized so that a search for "Cleveland Economic Development" leads to the City of Ceveland's Department of Economic Development. Note that none of these portals are perfect and flaws can be found in each of them, but they do illustrate how some of the best are providing data and information to the target community. Recommendations 1. Engage a professional and external (to the city) firm to study best practices for a worldclass website that is specifically targeted to economic development for the City of Cleveland. Exclude most community development information, except where it will be useful in helping firms and site selectors to locate in the City of Cleveland. 2. Engage a professional and external (to the city) firm to develop, implement, and maintain a world-class website for the City of Cleveland Department of Economic Development. This website would be targeted to attracting and expanding businesses to the city. Part of this engagement should be a regular (at least annual) review of best practices of other economic development websites/portals to be sure that Cleveland is competitive with other cities and regions globally. Within the review of global sites, it would also be helpful to focus on structure, content and other features offered on "competitor" city websites. The comparability with these websites will make the data collection process easier for the client. A note of caution here, while the website needs to be deep enough in content to prevent elimination during the first rounds of the selection process, it should also be compelling enough that as the process continues that direct contact by the client will occur as they needed to obtain more detailed information. This suggests that the selection of the firm is essential, one that has experience marketing economic development via websites, while also offering a customized rather than cookie cutter approach to website development.

Brand Identity There is a common misconception as to the definition and practice of "economic development." In most cases, it could be argued that departments of public sector entities that offer economic development services are doing so in a passive role in response to incoming requests. Unlike most other services and goods offered by cities, economic development is essentially a sales function. The economic development department in a city should be externally focused on attracting companies (and jobs-and so additional taxes and wealth) to the city while working with existing companies to stay and expand in the city. It is likely that many of the better and more successful companies within Cleveland are regularly targeted and contacted by other regions as attraction possibilities. In the end, economic development is first about sales and 5

winning the project and second, the process associated with delivering on offerings and getting the company on their site and people working after the sale has closed. As mentioned earlier, it is essential that all materials across the entire portfolio of products share a common look and feel. Whether the materials are on a website or they are in direct outreach like an email campaign, the look and feel of all content needs to immediately allow the target user to recognize that these materials are from the City of Cleveland. As the Department of Economic Development engages in the sales function of retaining and attracting companies in and to the city, it should have high quality materials with a consistent brand identity. As part of the due diligence process, Mohr Partners included three Cleveland-based marketing firms to help identify possible branding approaches that could be applied to the Department of Economic Development. Each one offered a different approach, and time was spent with department staff in discussion of these visions. Note that inclusion of each firm as part of the process should not be construed as either an endorsement or recommendation from Mohr Partners. Included firms: Vividfront (www.vividfront.com) Lesic and Camper (www.lesicamper.com) Landau PR, an operating division of the Adcom Group of Companies (www.landaupr.com)

Recommendations 1. Be certain that economic development is not only a process of locating and retaining firms in the City of Cleveland, but also that it is a sales process that is prepared for both active and passive roles within that process. This mindset differs from most other departments within the usual city structure. 2. Engage a professional (and external to the city) marketing organization to create a common and consistent brand identity for both passive and proactive marketing materials. 3. Particularly with targeted site offerings, the department needs to be the single point of contact noted on the marketing materials. Particularly for those properties that may be offered but privately held, the data, information, site plans and other information contained in the offering needs to be provided in a manner in which the Cleveland brand can be used and applied.

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Outreach While much of the Department of Economic Development's activities surround either responding to existing businesses in the city as well as inbound leads (coming directly from companies and site selectors as well as attraction-based partners in the region), it is necessary for the department to continue to be proactive in conducting outreach to constantly generate new leads. This may best be accomplished through three parallel and concurrent sets of activities: a familiarization tour with and outreach to the site selection community, direct marketing to companies, and outreach to regional partners. Site Selectors The first activity, outreach to site selectors, is a two-part approach. First would be to host a familiarization tour or "fam" tour to targeted site selectors. Such an event is usually a two to two-and-half-day event that would showcase the assets of the City of Cleveland. As part of a fam event, a targeted group of site selectors would be invited to visit the city at the City of Cleveland's expense (which could include funds raised through partnerships), including travel and accommodations. This event is usually tied to some type of a "hook," such as a sporting or cultural event, that would bring the site selectors to the city and allow some "face time" with city business and political leaders in a more relaxed and conversational environment. The rest of the tour is based around site visits to parcels, both buildings and buildable sites, that are ready for development; meetings and presentations by business, educational, and political leadership from the city; and visiting and showcasing other assets such as the Cleveland Clinic, the Unified Technology Center at Tri-C, and the NASA Glenn Research Center. As a follow-up to the site visit, for both those able to attend as well those unable to visit Cleveland during the most current familiarization tour, regular outreach is needed to site selectors via either postal or email on specific sites and opportunities. This phase is where brand identify becomes important: When a site selector receives materials from the Department of Economic Development, they should already know the source by the look and feel of the materials. Such an outreach could include new and recent project wins, specific sites that are available for development, and current workforce availability and targeted training programs, as examples. Depending upon the frequency of outreach, it could include aspects of a number of features and assets available in the city. Mohr Partners recommends that this outreach be conducted on a quarterly basis, but more frequently as time and funds permit. There are more than 4,000 entities in the United States, if states, regions, counties, cities, and other economic development organizations are taken into account, that compete for economic development activities. Having a unique product, such as physical or training assets while keeping the name of the city at the top of the site selector's mind, is paramount. It is important to note that while not every participant in the fam tour will bring a project to the city, it can be important in either altering or

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supporting the current view of the participants and understanding what Cleveland offers to their clients. Finally, many states, regions, and cities have found success, either individually or within partnerships, in visiting site selectors at their home locations. Economic developers conducting information meetings about their regions regularly visit the Cleveland and Dallas offices of Mohr Partners. In most cases, a city with a critical mass of site selectors, such as Chicago, Dallas, New York, and Atlanta are likely and viable targets for a two- or three-day visit by economic development representatives. In this case, an hour with a site selector puts name to a face and to a city; it will in help to personalize a potential relationship. Direct to Companies A recent trend by regions and other local economic development entities is to engage in outreach directly to companies with the potential for expansion and relocation opportunities. In this form of outreach, economic developers are working with a consultant who specializes in identifying firms that may be in play for an expansion, relocation, or possibly a consolidation activity. After these types of firms have been identified, the consultant may hand the list off to the economic developers for follow up, may do the initial call to the company, or may do a "warm lead" and set an appointment for the developers to visit the companies in their offices. Mohr Partners, as well as firms such as 310 and ROI, offer such services, as likely do others. Much like the site selector community, an avenue of success is to identify a region that has industries or clusters that may fit well in the city. Then, based on the firms in the target region, identify those firms that may have some need to expand, contract, consolidate, or relocate and work to set appointments with them to explain the benefits of the City of Cleveland. Regional Partners As the major city in the region, Cleveland is able to accommodate most types of projects. It is important to be in communication with regional partners such as Cuyahoga County, Team NEO, and the Greater Cleveland Partnership around the real estate asset base as well as new or unique products and services that the City offers. While the working relationship between the City of Cleveland's Department of Economic Development and these partners is collaborative and quite strong, Mohr Partners would be remiss in not mentioning this intraregional communication channel.

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Recommendations 1. Conduct a familiarization or "fam" tour. Working with Mohr Partners and regional partners, identify a pool of site selectors to bring to Cleveland to better inform them about the city and its assets. The fam tour should provide insights and information that site selectors view as valuable. a. Identify opportunities, such as sporting or cultural events as base b. It is essential that Mayor Jackson and other leadership (both appointed and elected) are available to meet with the site selectors. A major concern among businesses as they locate in a new setting is how they will be received and how they will fit into the political and business culture and environment. A strong showing by leadership from the City is essential. c. Identify C-suite9 (business, education, and political) leadership to do a "meet and greet" and host events at their offices and at dinners/receptions. d. Identify assets to include in tour: mix of cultural, business, development 2. Using a developed brand identity, conduct outreach for at least 24 months to the site selection community. While this should occur at least quarterly, more frequent contract is desirable, but regular contact is essential. This contact could include direct mail, email, and webinar outreach, as well as video conferencing. Communicate new programs, properties, and other assets and changes on a regular basis: monthly, bimonthly, or quarterly. 3. Target regions with a significant population and do a reverse fam tour: Visit site selectors at their locations. In some cases, such visits could occur where and when Cleveland sports teams may be competing and the site consultants are invited to the event. 4. Engage a consulting firm to identify "warm" leads of companies with the potential to make a location decision in the next 12 to 24 months. Conduct direct outreach to these firms to include Cleveland in the mix of potential sites. 5. Continue to engage regional partners in awareness campaigns about programs, properties, and other assets that give Cleveland a competitive advantage.

Concierge Services The City of Cleveland Department of Economic Development has been both innovative and responsive in serving the needs of clients and customers. As part of this strategy for economic development, Mohr Partners advocates that the department continue to engage in providing a "full service" approach to economic development. Within the last 15 or so years, the timing of economic development projects has come full circle. In the 1990s, it could be argued that economic development projects were generally on a fast track, with a short turnaround between project start and finish. In the intervening period, projects tended to take on a longer time horizon, often taking up to 24 months to close, if they did close at all. More recently, the trend has returned to a short time horizon from the inception of the project to the decision on 9

location and then to closing on the project. While some companies in the early stages of the process hit the local radar screen, a significant number of projects have already gone through much of the due diligence, having landed on a select number of regions and locations and so are generally on the fast track. Given the current trend of "fast track" projects, the City of Cleveland Department of Economic Development must maintain its ability to offer "concierge" services to firms who may be locating and expanding in the city. This approach utilizes a single point of contact, and assumes that all economic development is ultimately local. While leads and introductions are often regionally developed in northeast Ohio, the actual site for expansion or locating is in control of a specific political jurisdiction, and in this case the City of Cleveland. As the project becomes local and under the control of the Department of Economic Development, it is essential that the details of the project are overseen by the single point of contact and all the needs of the company are met, at least those relative to the project. The single point of contact assures that all documents, such as incentive offerings as well as site information, are exchanged efficiently with the client. The point of contact assures that all needs around occupancy, such as permits and registrations, are easily obtained and navigation through the city offices needed to close the project is well managed. Additionally, this service provides a single person to assure that all transaction documents, including offerings by the city, are properly executed by the client and by the city. Finally, any other services the site selector, company, or client may need can be addressed by this role. Recommendation 1. To provide a concierge service to economic development clients, whether expanding or locating in the city. This recommendation suggests that one member of the Department of Economic Development team be assigned to a project to work with other City departments, intermediaries and the company and its representatives to assure that all details of the project are dealt with and the project is able to come to closure.

Clusters and Their Validation In 1990, Harvard Professor Michael Porter published his seminal work "The Competitive Advantage of Nations."10 It was Porter's work that defined the term and concept of a "clusters" approach to regional growth and development. Porter and his work have helped defined economic development strategy since that time. "A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, lined by commonalities and complementarities."11 Possibly more easily said and understandable, Hill and Brennan12 "define a competitive industrial cluster as a geographic concentration of competitive firms or establishments in the same industry that either have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that provides firms with a competitive advantage over the same industry in other places." Clusters 10

are, therefore, groups of firms in the same industry in a region that are there because the location has assets that affect the bottom line for the firm or establishment, potentially including customers, suppliers, workforce, academic/research institutions, transportation/infrastructure, and other factors that may positively affect a company's ability to compete in a global market. Northeast Ohio has a long history of looking at regional industry clusters. In 1996, then Senior Director of Research at the Greater Cleveland Growth Association, Jack Kleinhenz, Ph.D., worked with regional partners to engage the Levin College of Urban Affairs at Cleveland State University (CSU/Levin) to conduct a detailed statistical analysis of the region to identify the region's clusters.13 The next step was a series of key informant interviews and focus groups that validated the CSU/Levin findings. The next phase was to engage industry participants to form working groups around creating cluster strategies on workforce, business investment, and the role of regulation at the state and local level. Clusters identified in the first phases included metalworking, plastic products, chemicals, motor vehicles and parts, and insurance. In 2011 and prior to engaging Mohr Partners for this study, the Department of Economic Development had done some research and analysis in identifying potential clusters that could be appropriate for the city to use as targets for a series of available and developable sites. The targeted industry clusters include health care/medical, paints and coatings, lighting and electric, information technology, food processing, automotive, and banking and finance. The following analysis looks at both validating the self-identified clusters through data analysis, as well as looking at all other exportable goods and services industries to see if they could be potential targets for inclusion in the city's attraction efforts. As part of the cluster validation, both quantitative and qualitative approaches were used to assess the industry potential as a candidate for Cleveland. Due to limits in the scope of this work, the level of detail used in this assessment was not quite as deep as offered in 1998 in the CSU/Levin study. Mohr Partners looked at the clusters for both Cleveland (Cuyahoga County) and the northeast Ohio region14 using two common statistical techniques, location quotients and shift-share analysis. Another measure was to look at the top backward linkages or suppliers to the industry within the northeast Ohio region. A fourth measure was to look at the workforce and confirm that there were sufficient workers in the region to support attraction efforts. The fifth measure was to look at the number of educational degrees issued in support of workforce training. Finally, Mohr Partners looked at various industry sources, such as Standard and Poor's, to assess the long-run viability of the industry at the national level.

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Recommendations In marketing, outreach, and site selector events, Mohr recommends that the Department of Economic Development use a clusters-based approach in attracting new establishments to the City of Cleveland. The following industries are likely fruitful targets for attraction. A more fully developed analysis of each cluster follows in the next section. 1. Paints and Coatings: These industries have a long history in northeast Ohio. The northeast Ohio factors, with a high level of concentration in employment, a level of competitive advantage (as estimated using Shift Share analysis), a strong supply base, and a significant amount of post-secondary training, suggest that firms in this industry should do well in the City of Cleveland. The growth in the shale oil plays could create opportunities for inputs to these products if the chemical industry invests in processing the liquids from the Utica and Marcellus shale. Companies in this industry, within the region, include RPM International, the Ferro Corporation, Sherwin-Williams, OMNOVA Solutions Inc. and Tremco Incorporated. 2. Automotive Manufacturing: Also an industry with a long history in northeast Ohio. Both final assembly and parts have a strong location quotient (LQ), and automotive parts appear to have a strong competitive advantage in the next 5 years. Key occupations have high levels of support from post-secondary training and demand for autos is expected to grow. It is unlikely that Ohio will see new auto plants, but growth in the industry and demand for cars and light trucks make automotive parts suppliers an industry with potential for attraction. Companies in this industry, within the region, include Stoneridge, Inc., Hyster-Yale Materials Handling, General Motors, Transdigm and the Park-Ohio Holdings Corporation. 3. Banking and Finance: Although suffering from some competitive advantage issues (see small negative Shift Shares), strong LQs and strong educational assets for this group of industries suggest that opportunities continue to exist for this group. Notably insurance carriers have a strong LQ likely due to the presence of Progressive Insurance. A strong base of experienced workers that can support new entrants to the market could be valuable. Companies within this industry, within the region, include the United Financial Casualty Company, Progressive Insurance, the Resilience Capital Partners LLC, Medical Mutual of Ohio and the Reserve Group. 4. Management of Companies and Enterprises: Later in the analysis, this sector is combined with Banking and Finance, but for targeting purposes, it is extracted here and supported separately. With an LQ of 1.7, it is relatively highly concentrated, but appears to have a competitive disadvantage. Because of the United Airlines hub and direct air service to 73 destinations,15 Cleveland should remain attractive to regional headquarter locations and may be able to attract additional national headquarter locations. Without direct international air service to Europe or Asia, attracting an U.S. headquarters for an international company will prove challenging. Companies within this industry, located

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within the region, include the Wilson Mills Land Company, the Key Corporation, Diebold, Charter One and the Strang Corporation. Food Processing: While not highly concentrated in the region, some of the competitive shares for industries in this group suggest that Cleveland can capture some new employment. With a significant supplier base and a good workforce development system aiding in growth in the sector, Cleveland has potentially important production assets, including water, sewer, electricity, and natural gas in abundance, which could create an opportunity to bring business in to Cleveland. Companies included in this industry, within the region, are the J.M. Smucker Company, Nestle, Alfred Nickles Bakery, Shearer's and Buitoni North America. Information Technology: This cluster best works as enabling or crosscutting technology. The significant amount of fiber running through northeast Ohio, plus significant postsecondary training (certificates to Ph.D.), makes Cleveland a potentially robust place for IT. Based on prior work, only 1 out of 3 IT occupations are employed in the IT industry. Health Technology: While mostly a population-serving industry, or what Porter refers to as a local cluster (at least in the Services sector), the research and teaching aspects of the Cleveland medical cluster make this a prime place for medically related firms to locate. Tech transfer and commercialization create significant opportunities here. But, many of NEO and Cleveland's assets are masked by their NAICS codes, being in polymers1, instruments, controls, sensors2 and chemistry3 rather than NACIS 3391: Medical Equipment and Supplies Manufacturing. Companies in this industry, within the region, include the Invacare Corporation, STERIS Corp. Independence Medical, GOJO Industries Inc., and Coltene / Whaledent Inc. Electric and Lighting: Ohio produces more electrical appliances than any other state, and the major industries have strong location quotients. A fundamental shift in the nature and composition of lighting products, however, will require Cleveland to attract a new type of firm in a different industry to the region. As regular light bulbs are phased out by federal legislation, there will be a brief period of high demand for CFLs, but in the long run, current thinking suggests that most lighting in the future will be based in LEDs. As part of an attraction strategy for lighting, the companies producing LED-based lighting, whether foreign or domestic should be actively recruited to locate in Cleveland. Within the region, companies like the Eaton Corporation, TTI Floor Care, Lincoln Electric, GrafTech International and Preformed Line Products are all considered to be part of this industry. Oil and Gas: The Utica and Marcellus shale production represents two different opportunities for attracting and expanding firms in Cleveland. The first is to key on the supply chain for the industry and to focus on what strengths already exist, including

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The Rubber Manufacturing industry is a strong industry within the region with a LQ value of 2.64 (in 2011) and a Shift Share value that is projected to be 167 in 2016. 2 The Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry is currently not a strong industry within the region with an LQ value of .78 in 2011 and a Shift Share value of -207. 3 The Basic Chemical Manufacturing industry is currently a strong industry within the region as it has a LQ value of 2.12 and a Shift Share value of 193 in 2011.

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wholesale trade, pipe and pipe fittings, value and valve fittings, and transportation, as well as consulting services such as legal, accounting, engineering, and environmental. While the supply chain for drilling offers a shorter run opportunity as drilling will decline over time, the use of output from the wells, or "downstream" uses, create a longer run opportunity for Cleveland. Existing downstream industries already in Cleveland include basic chemicals, paints, coatings, and adhesives, and polymers industries, all of which could benefit from locally produced inputs. Some of these industries have already been mentioned as being potential targets for attraction, but the additional supply of input products to their supply chains (should regional production16 occur) would help solidify Cleveland as a location of production. Companies, within the region, that are part of this industry include the Buckeye Oil Producing Corporation, Everclear Transportation, Kenoil, Everflow Eastern Partners and Bocor Holdings LLC. Measures As noted earlier, Mohr Partners used six different measures to estimate the validity of each cluster as a potential target for attraction to the City of Cleveland. These measures include: 1. Location quotients. This method, commonly called LQs, measures the relative concentration of an industry within a region. This measure is a ratio of the share of local employment in an industry relative to the share of industry employment for a base geography, in this case the United States. When an LQ is less than 1, it is expected that the region will import some of its needs for the industry. When the LQ is close to 1, it is assumed that the region produces enough output to meet local needs. When the LQ is greater than 1, it is assumed that some output is exported. Higher levels of concentration would suggest that there are some competitive advantages in the region, but the LQ does not identify what those advantages may be. This is a commonly used measure in looking at identifying clusters, but looks only at a single point and time. For this and the shift-share analysis, Mohr Partners used four-digit NAICS17 data from economy.com and for the periods 2006, 2011, and 2016. 2. Shift-share analysis. This technique looks at changes in employment between two periods (either history or forecast), and disaggregates the change in period into three factors based on growth (or decline) of the national economy, growth (or decline) of the industry at the national level, and a residual value. This residual value is called the competitive share and estimates employment change for the period based on local competitive advantages (or disadvantages). Unfortunately, this technique does not identify the advantages or disadvantages, but does suggest they exist. For this study periods of 2006 to 2011 and 2011 to 2016 were used to estimate competitive advantage using the economy.com data.

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3. Supply chain. Using an economic impact model from Implan,18 top supplier industries to each industry sector were identified based on value of sales. Using OneSource,19 a business database, suppliers in northeast Ohio with 50 or more employees were identified. Using geographic information software (GIS), these establishments were mapped (see Appendix for each cluster). 4. Staffing. Using a staffing matrix from the Bureau of Labor Statistics (BLS), key occupations were identified including technical (such as technicians and engineers) and production related occupations. Using the economy.com data for employment values in 2011, estimates of numbers of workers were estimated by critical occupations. Using the 2010 Starting Wage and Benefit Survey funded by the Cleveland/Cuyahoga Workforce Investment Board, starting wages and median wages in 2010 are reported for each occupation (where the data are available). 5. Occupation Demand Estimates. To estimate the regions ability to meet the demand of each occupation, data from The Conference Board Help Wanted Online20 was gathered that detailed the number of job openings in each occupation and how many resumes were submitted to those various openings. These data were gathered for the time period of Oct. 14, 2012 to Nov. 13, 2012. A surplus of labor for an occupation was determined by a ratio of job seekers to job openings greater than or equal to 1.5. A shortage of labor for an occupation was determined by a job seeker to job opening ratio of .75. 6. Training. Using data from the Integrated Postsecondary Education Data System21 (IPEDS), the number of degrees issued between July 2009 and June 2010, from certificates to Ph.Ds., are reported for each occupation. 7. National forecast. Using data from a number of sources, outlook and forecast for each industry is reported.

Cluster Analysis Paints and Coatings The Paints and Coatings industry in northeast Ohio is comprised primarily of NAICS 3255: Paint, Coating and Adhesive Manufacturing and NAICS 3251: Basic Chemical Manufacturing. The Paints industry, while expected to grow at about 2.1% annually according to Standard and Poor's, is forecast to see some consolidations within the industry due to declining profit margins. Paint costs are rising with the increase in raw materials, primarily from demand for crude oil. But, demand for paint for existing homes and for new homes is expected to rise, and it is unlikely that this market will be increasingly supplied by the import market, due to the high costs of transportation. 15

The Adhesive industry is forecast to grow similarly at about 2.4% annually. With demand from the automotive and the aircraft sectors increasing, profit margins are expected to increase. According to IBIS World, demand for aircraft for the domestic aircraft industry in China and India will drive adhesive demand for the aviation industry. Also, adhesives are an important part of reducing the weight in vehicles in the auto and light truck sector. Demand in that sector is forecast to increase into 2013. The weak dollar makes export of adhesives attractive. The interesting factor for this industry could lie in the next stages of development within the Utica and Marcellus shale production. If drilling in these fields continues at forecast rates, there will be significant natural gas, but more importantly "liquids" coming into the market. There is an argument within the industry that the liquids coming out of these fields in Ohio may be more valuable in the market than natural gas. The unresolved question at this time is whether chemical firms will invest in the infrastructure to process the liquids within Ohio, Pennsylvania, or West Virginia, or whether means will be found to efficiently ship the products to existing sites for processing. In March 2012, Shell Chemicals announced22 that it had signed options to land in western Pennsylvania as the part of a first step in building a "cracker" to process the liquids from the shale output. Construction is expected to start after the next year and the project may last up to 4 years. If commodity chemicals are more readily or more cheaply available in the region, the potential for additional development of user industries, such as Paints and Coating, becomes more probable. While real Gross Regional Product (GRP) or value-added is forecast to grow through 2021 and with it wages, employment will remain flat through 2016 and then begin to slowly decline through 2021. Economy.com estimates that this industry employs 7,720 workers in NEO and of that, 3,230 are in Cuyahoga County. This indicates that the productivity per employee for this industry is expected to rise over the next decade. This industry employs a portfolio of workers that includes engineers, maintenance and repair workers, and production occupations. Median wages for production workers in this industry range from $23,730 to $55,610. Cluster summary measures for the northeast Ohio region:4 Location Quotient in 2011 o Paint, Coating and Adhesives o Basic Chemical Shift-share 2011-2016 o Paint, Coating and Adhesives o Basic Chemical

4

Detailed information can be found on Figure 1 in the Appendix.

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4.73 2.12 183 (5.14%) 193 (4.65%)

Suppliers: share from top 105 o Paint, Coating and Adhesives 58% o Basic Chemical 59% More than 20 establishments in the industry with 50 or more employees Significant supplier base in northeast Ohio6 Most key occupations have sufficient supply7 o Shortages Industrial Engineers o Surpluses Chemists Chemical Technicians Maintenance and Repair Workers Degrees awarded July 2009 to June 20108 o Certificates and less than a Bachelor 169 o Associate 50 o Bachelor (BA/BS) o 318 89 Masters (MA/MS) 66 o Doctorate Automotive Manufacturing This group of industries has a long history of activity in the NEO region and is comprised of three individual NAICS codes: 3361 Motor Vehicle Manufacturing, 3362 Motor Vehicle Body and Trailer Manufacturing, and 3363 Motor Vehicle Parts Manufacturing. In its analysis, Standard and Poor's suggest that due to currency fluctuations, most notably with the Yen, that more production will shift to onshore from Japan. Similarly, issues with rising costs in China and other Pacific rim countries coupled with long delivery times and quality issues has made production in North America (Mexico, Canada, and the United States) more attractive. Depending on the company and its response, Mohr has found that some Original Equipment Manufacturers (OEMs) and Tier One suppliers are limiting onshoring to the United States and Canada due to cross-border issues and violence in the northern regions of Mexico. It is important to note that some suppliers and OEMs still view Mexico as a viable and lower-cost option than Asia and the rest of North America. Finally, the earthquake and resulting tsunami in Japan have also led OEMs and suppliers to rethink their supply strategies and locations of production due to parts shortages caused by these events, and the subsequent shortages and limited availability of some models in 2012.

5

These values represent the percent of an industry's overall spending that go to its top 10 suppliers. Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. 7 Detailed information can be found on Figure 3 in the Appendix. 8 Detailed information can be found on Figure 2 in the Appendix. 6

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The Research Seminar in Quantitative Economics (RSQE23) suggests that demand for cars and light trucks will continue to grow in 2013. Actual purchases for 2010 were 11.6 million and for 2011, 12.7 million. RSQE is forecasting total car and light truck sales in 2012 at 14.4 million and at 15 million in 2013. This still offers room for growth going forward; some years prior to the recession saw vehicle sales of nearly 17 million. This growth in sales is dependent upon continued growth in a fragile domestic economy, as well as developing some positive trends in the world economy. While domestic producers are expected to see profits rise, Standards and Poor's is also expecting its share of the total market to erode, suggesting that targeting both domestic and transplant OEM and parts manufacturers should be part of the city's strategy. Given that Ohio is not a "right to work" state, while southern states and competitors Indiana and Michigan are, the ability to attract an OEM into Ohio and into Cleveland will be challenging at best. The economy.com forecast for NEO for Motor Vehicle Manufacturing (NAICS 3361) suggests that while real GRP/value added will continue to grow through 2021, total wages and employment will decline for the period. This is likely due to increased productivity in the industry that is driven by global competition and lean manufacturing. Motor Vehicle Body and Trailer manufacturing (NAICS 3362) is forecast to see significant growth in GRP, as well as some growth in employment and total wages. Similar to final assembly, Motor Vehicle Parts (NAICS 3363) is forecast to have rising real GRP, but after 2016, declining total employment and wages. A note of caution here, the declining employment in final assembly and parts don't make this a less attractive candidate for attraction. Higher levels of productivity demand more output per worker and is necessary to remain competitive in a global market place. Trained and competitive workers make for competitive establishments and their firms. Cluster summary measures for the northeast Ohio region:9 Location Quotient in 2011 o Motor Vehicle Manufacturing o Motor Vehicle Body & Trailer o Motor Vehicle Parts Shift-share 2011-2016 o Motor Vehicle Manufacturing o Motor Vehicle Body & Trailer o Motor Vehicle Parts Suppliers: share from top 1010 o Motor Vehicle Manufacturing o Motor Vehicle Body & Trailer o Motor Vehicle Parts Significant supplier base in northeast Ohio11 9

2.08 1.41 2.10 23 (0.51%) 115 (5.06%) 1105 (8.83%) 62% 57% 54%

Detailed information can be found on Figure 4 in the Appendix. These values represent the percent of an industry's overall spending that go to its top 10 suppliers. 11 Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. 10

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Most key occupations have sufficient supply12 o Shortages: Industrial Engineers Welders, Cutters, Solderers and Brazers o Surpluses: Electricians Maintenance and Repair Workers Electrical and Electronic Equipment Assemblers Tool and Die Makers Degrees awarded July 2009 to June 201013 o Certificates and less than a Bachelor 1,354 o Associate 362 o Bachelor (BA/BS) 230 o Masters (MA/MS) 98o Doctorate 7 Banking and Finance Cluster This cluster combines a number of credit and finance-related industries with Insurance, as well as the "industry" Management of Companies (NAICS 5511). The last industry was included with this sector, as a number of finance and banking (such as Key and PNC), as well as insurance interests (such as Westfield and Progressive), have their national or regional headquarters in NEO. While some of these firms may be producing products in other industries, their headquarter locations are classified separately and share common characteristics with other service-related firms in areas such as staffing and procurement. Industries included in this analysis by their NAICS codes are: 5211 5221 5222 5223 5231 5232 5239 5241 5242 5251 5259 5511 12 13

Monetary Authorities-Central Bank Depository Credit Intermediation Non-depository Credit Intermediation Activities Related to Credit Intermediation Securities and Commodity Contracts Intermediation and Brokerage Securities and Commodity Exchanges Other Financial Investment Activities Insurance Carriers Agencies, Brokerages, and Other Insurance Related Activities Insurance and Employee Benefit Funds Other Investment Pools and Funds Management of Companies and Enterprises

Detailed information can be found on Figure 6 in the Appendix. Detailed information can be found on Figure 5 in the Appendix.

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5614 Business Support Services (Including Call Centers) The current outlook for the Banking and Finance industry is relatively neutral according to Standard and Poor's. Up to and through the federal election cycle in 2012, there will continue to be uncertainty in markets. Such uncertainty has limited access to capital and, therefore has resulted in slow growth in loans and access to credit. As noted earlier, Cleveland and the NEO region have a significant presence in headquarter locations. Most headquarter locations are transportation (people moving) dependent as more generally are service organizations, such as those in the banking, finance, and insurance industries. Cleveland has an advantage over some competing regions, such as Pittsburgh, Indianapolis, Cincinnati, and Columbus in currently having a United Airlines hub. Although a smaller hub than other United Airline hubs, the ability to connect directly on both outbound and inbound sales and training missions is a significant advantage when attracting some firms. It is important for the region to retain hub status in trying to attract business in which interregional air access is essential to their business model. In looking at Economy.com's forecast of job growth across all of the industries in this cluster, most have total expected growth of 10% to 20% by 2021. Two exceptions on the positive side are NAICS 5259: Other Financial Investment Activities24 and NAICS 5239: Other Financial Investment Activities,25 with total growth in employment of nearly 30% and more than 40% respectively between 2011 and 2021. Companies in these industries, within the region, include the Resilience Capital Partners, The Reserve Group, Victory Capital Management, the DDR Corporation and McDonald Securities. On the negative side, between 2011 and 2021 three industries, NAICS 5222: Non-depository Credit Intermediation, NAICS 5231: Securities and Commodity Contracts Intermediation and Brokerage, and NAICS 5232: Securities and Commodity Exchanges are forecast to lose employment14, with the first two losing only a few percentage points, while the third is forecast to lose less than 10%. Finally, NAICS 5511: Management of Companies and Enterprises is forecast to maintain level employment across the period. The NEO region does not have a specialization in most of the industries with the exception of Insurance Carriers (LQ= 2.17) and Management of Companies (LQ=1.7). Also, most of the shiftshares are neutral to negative for the region, suggesting that generally the region is forecast to be less competitive in the future relative to the rest of the United States. The following data deviate from the reporting pattern in the rest of the study and report the LQ and shift-share statistics only for Cuyahoga County. The supplier base and the education degrees awarded in the NEO region continue to be an asset for this cluster of industries. This is primarily based on both the supply of goods and services and the supply of labor in most cases coming from

14

Many of these industries were included for the sake of being comprehensive in our approach to addressing the Banking and Finance industries in the NEO region.

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beyond the boundaries for Cuyahoga County, and so the regional supply chain for these industries is important in attracting business in to Cleveland. Cluster summary measures for the Cuyahoga County:15 Location Quotient in 2011 o Monetary Authorities-Central Bank 1.52 o Depository Credit Intermediation 1.22 o Non-depository Credit Intermediation 1.17 1.12 o Activities Related to Credit Intermediation o Securities &Commodity Contracts Intermediation &Brokerage 1.03 o Securities and Commodity Exchanges 0.25 o Other Financial Investment Activities 0.77 o Insurance Carriers 2.17 o Agencies, Brokerages, and Other Insurance Related Activities 1.19 o Insurance and Employee Benefit Funds 1.28 o Other Investment Pools and Funds 1.54 o Management of Companies and Enterprises 1.70 o Business Support Services 1.29 Shift-share 2011-2016 o Monetary Authorities-Central Bank -17(-5.0%) o Depository Credit Intermediation -310(-1.4%) o Non-depository Credit Intermediation -34(-0.6%) o Activities Related to Credit Intermediation 7( 0.2%) o Securities & Commodity Intermediation & Brokerage -55(-1.1%) o Securities and Commodity Exchanges o 0( 0.0%) Other Financial Investment Activities -14(-0.6%) -34(-0.1%) o Insurance Carriers o Agencies, Brokerages, and Other Insurance Related Activities -40(-0.7%) o Insurance and Employee Benefit Funds 2(0.6%) o Other Investment Pools and Funds -16(-4.8%) o Management of Companies and Enterprises -1052 (-6.3%) o Business Support Services -427(-7.8%) Suppliers: share from top 10 16 o Credit and Insurance Carriers 60 to 75% o Management of Companies 58% 17 Significant supplier base in northeast Ohio

15 16 17

Detailed information can be found on Figure 7 in the Appendix. These values represent the percent of an industry's overall spending that go to its top 10 suppliers. Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms.

21

Most key occupations have sufficient supply18 o Shortages: Computer Systems Analysts Computer Specialists Industrial Engineers o Surpluses: Training and Development Specialists Management Analysts Financial Analysts Computer Software Engineers (Systems Software) Network and Computer Systems Administrators Degrees awarded July 2009 to June 201019 o Certificates and less than a Bachelors 701 o Associate 2,484 o Bachelor (BA/BS) o 3,797 Masters (MA/MS) 2,019 o Certificate greater than a Bachelors 90 o Doctorate 154

Food Processing Cluster Agriculture is often touted as the biggest industry in Ohio. This assumes that the industry provides a full range of value-added services including the growing, harvesting, processing, and transportation of animal and plant products. Recent events and conditions have made food processing in Ohio a more attractive proposition. Current drought conditions across much of the south and southwest United States has made access to water, an important asset in the production process, less predictable. The NEO region and Cleveland in particular has an abundant supply of fresh and quality water to use in the production process. Additionally, Cleveland has the capacity to process the wastewater from food processing and the unique characteristics that come from processing products such as potatoes place a high starch content in the wastewater. Recent developments in the natural gas sector in the fracking of Marcellus and Utica shale have driven down the price of natural gas to historically low levels. Low gas prices have also driven electricity prices down—both of which are important to some aspects of food production. Finally, according to the ClevelandPlusBusiness,26 Cleveland is close to this sector's consumer and business markets; 50% of the United States population is within 500 miles. This is important because proximity to market is an important factor in a Food Processing firms cost structure.

18 19

Detailed information can be found on Figure 9 in the Appendix. Detailed information can be found on Figure 8 in the Appendix.

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This cluster includes the following industries: 3111 3112 3113 3114 3115 3116 3118 3119

Animal Food Manufacturing Grain and Oilseed Milling Sugar and Confectionery Product Manufacturing Fruit and Vegetable Preserving and Specialty Food Manufacturing Dairy Product Manufacturing Animal Slaughtering and Processing Bakeries and Tortilla Manufacturing Other Food Manufacturing

Access to food remains a worldwide problem. Droughts and disasters, as well as population pressures and increasing standards of living, have put pressure on food prices, thus they remain volatile. United States exports of food rose 27% from fiscal 2010 to fiscal 2011. Almost all of the industries in the cluster are expected to maintain 2011 levels of employment through 2021. The exceptions to this are NAICS 3113: Sugar and Confectionery Product Manufacturing, which is forecast to lose about 10% of employment by 2021, and NAICS 3111: Animal Food Manufacturing, which is projected to gain employment by 10%. For most industries in the cluster, real GRP is forecast to be relatively static while wages are expected to grow. The shift-share statistics below suggest that the NEO region has some competitive advantage through 2016, but the same statistics for Cuyahoga County suggest a relatively neutral position for the county. Interestingly, companies like Nestle can fall into multiple catagories within this industry. For instance, the plant in Solon is classified as NAICS 3115 Dairy Product Manufacturing while the Nestle Plant located on Bainbridge in Cleveland is classified as NAICS 3119 Other Food Manufacturing because it produces food flavoring. This signifies that the same company can be classified under multiple NAICS codes due to the nature of each location's business. Cluster summary measures for the northeast Ohio region:20 Location Quotient in 2011 o Animal Food Manufacturing .79 o Grain and Oilseed Milling .77 o Sugar and Confectionery Product Manufacturing .74 o Fruit & Vegetable Preserving & Specialty Food Manufacturing 1.75 o Dairy Product Manufacturing 1.20 o Animal Slaughtering and Processing .46 o Bakeries and Tortilla Manufacturing .96 o Other Food Manufacturing 1.17 20

Detailed information can be found on Figure 10 in the Appendix.

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Shift-share 2011-2016 o Animal Food Manufacturing 25(4.6%) o Grain and Oilseed Milling 30(5.0%) o Sugar and Confectionery Product Manufacturing 24(3.3%) o Fruit & Vegetable Preserving & Specialty Food Mfg. 167(4.1%) o Dairy Product Manufacturing 88(4.2%) o Animal Slaughtering and Processing 133(4.3%) o Bakeries and Tortilla Manufacturing 160(4.4%) o Other Food Manufacturing 78(2.9%)  Suppliers: share from top 10 21 o Animal Food Manufacturing 56% o Grain and Oilseed Milling 63% 53% o Sugar and Confectionery Product Manufacturing o Fruit & Vegetable Preserving & Specialty Food Manufacturing 54% o Dairy Product Manufacturing 55% o Animal Slaughtering and Processing 61% o Bakeries and Tortilla Manufacturing 58% o Other Food Manufacturing 51% Significant supplier base in northeast Ohio 22 Most key occupations have sufficient supply23 o Shortages: Computer Systems Analysts Inspectors, Testers, Sorters, Samplers and Weighers o Surpluses: Agricultural and Food Science Technicians Industrial Machinery Mechanics Maintenance Workers, Machinery Maintenance and Repair Workers, General  Degrees awarded July 2009 to June 201024 o Certificates and less than a Bachelor 485 397 o Associate 157 o Bachelor (BA/BS) o 28 Masters (MA/MS) 6 o Doctorate

21 These values represent the percent of an industry's overall spending that go to its top 10 suppliers. 22 Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. 23 Detailed information can be found on Figure 12 in the Appendix. 24 Detailed information can be found on Figure 11 in the Appendix.

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Information Technology cluster The Information Technology (IT) cluster has been extensively studied, at least from the workforce perspective in NEO for a number of years. The Greater Cleveland Growth Association (now the Greater Cleveland Partnership) and partners at NEOSA and NorTech have examined the IT workforce in the region. Analysis of the topic began in 1999 and was conducted regularly, often with fairly similar results, with two key findings; first that IT is both an industry (see NAICS codes below) and a crosscutting enabling technology essential to the production of goods and services in NEO, and second, that 2 out of 3 IT workers (from an occupational view) were not employed in an IT-sector industry. We estimate that there are 37,910 individuals employed in information technology related occupations across the region. This cluster includes the following industries: 5171 5172 5174 5179 5182

Wired Telecommunications Carriers, Wireless Telecommunications Carriers (except Satellite), Satellite Telecommunications, Other Telecommunications, Data Processing, Hosting, and Related Services

Northeast Ohio has a significant number of assets and qualities that create potential success for IT companies. While Cleveland occasionally suffers from a snow storm with a day's down time, environmental factors affecting performance and reliability, such as hurricanes, wildfires, and tsunamis are not likely to be a factor. Other environmental occurrences, such as earthquakes and tornados are extremely rare. According to the National Oceanic and Atmospheric Association, Cuyahoga County has had no storm-related deaths from 2006 to 2012. Additionally, U.S. News ranked Cleveland as the third safest city in terms of natural disasters. Forbes ranked Cleveland as the 10th safest city in terms of crime and natural disasters Finally New York Times reported that the Northeast Ohio Region has a low to moderate risk of a natural disasters. Second, there are large supplies of reasonably priced natural gas that can serve two purposes: first to supply fuel to backup generators and second to suppress the price of electricity, a major factor for IT related activities, particularly for data centers. Third, Cleveland is a nexus for railroads, with significant fiber running through their rights-of-way, creating not only significant bandwidth, but also creating the opportunity to connect to redundant fiber. The largest Wired Telecommunications Carriers in the area include Davel Communications, Cleveland Corporate Services, Cox Communications, Windstream Communications and Cablesuite 541. Similarly, Cleveland is supported by two electric suppliers, FirstEnergy (a traded company) and Cleveland Public Power (city-owned utility) that can work to supply highly reliable and redundant power. Finally, real estate for the IT industry from office to data and call centers in Cleveland is often less expensive when compared with other markets when existing space is considered, and is price competitive when new space is being developed.

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The IT industry continues to be cyclical in nature. On the communications side, more customers are dropping land lines in favor of wireless and voice-over-IP (VoIP) options. In 2011, there was nearly a 9% increase in Internet Protocol revenues. Within the wireless space, consolidation continues to occur with three major players and a few minor players evolving. Within the NEO region, three of the industries - Wired Telecommunications, Satellite Telecommunications, and Other Telecommunications27 -- are forecast to have significant employment declines through 2021, based on data from economy.com. Conversely, for the outlook for Wireless Telecommunications and Data Processing, Hosting and Related Services industries is more positive, with forecast employment growth by 2021 of nearly 10% and nearly 20% respectively. Cluster summary measures for the northeast Ohio region:25 Location Quotient in 2011 o Wired Telecommunications Carriers .77 .41 o Wireless Telecommunications Carriers (except Satellite) o Satellite Telecommunications 4.45 .37 o Other Telecommunications o Data Processing, Hosting, and Related Services .56 Shift-share 2011-2016 o Wired Telecommunications Carriers 389(6.6%) o Wireless Telecommunications Carriers (except Satellite) 32(3.4%) o Satellite Telecommunications 9(1.3%) o Other Telecommunications -20(-3.4%) o Data Processing, Hosting, and Related Services -10(-.5%) 26 Suppliers: share from top 10 o Telecommunications 64% o Data Processing, Hosting, and Related Services 63% 27 Significant supplier base in northeast Ohio Most key occupations have sufficient supply28 o Shortages: Market Research Analysts and Marketing Specialists Computer Systems Analysts Electrical Engineers o Surpluses: Management Analysts Computer Software Engineers Computer Support Specialists Network Systems and Data Communications analysts Electrical and Electronic Engineering Technicians

25 26 27 28

Detailed information can be found on Figure 13 in the Appendix. These values represent the percent of an industry's overall spending that go to its top 10 suppliers. Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. Detailed information can be found on Figure 15in the Appendix.

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Telecommunications equipment installers and repairers Electrical and electronics repairers for commercial and industrial equipment Telecommunications line installers and repairers Electronic home entertainment equipment installers and repairers. Degrees awarded July 2009 to June 201029 o Certificates and less than a Bachelor 581 o Associate 1180 o Bachelor (BA/BS) 489 o Masters (MA/MS) 201 o Doctorate 24 Health Technology cluster This cluster in Cleveland and NEO in general combines both services and manufacturing into a single cluster. Cleveland's hospital/direct service cluster is driven by three nationally ranked systems, the Cleveland Clinic (ranked #1 in Cardiology nationally), University Hospitals (ranked #14 in Gastreonology nationally) and Metro Health Hospitals (ranked #41 in Pulmonology nationally). While providing direct service to residents and non-residents of the city and of the region, both are also world-class teaching and research hospitals. On the supplier side of the equation, they jointly create (along with other major regional systems such as Summa) significant demand for products associated with hospital operations and patient care. On the research side, they generate significant potential to provide opportunities for technology transfer and commercialization into product development and production. In some ways, the manufacturing part of the Health Technology cluster suffers from the same identity issues as the IT cluster in that many companies innovating and producing medicalrelated products have NAICS codes outside of NAICS 3391, Medical Equipment and Supplies. If a company is producing a stent made from polymers, although the end use if a medical product, the firm would likely be assigned a polymers NAICS code. Similarly, an electronic device monitoring heart functions would likely be assigned a NAICS in Instruments and Controls industry and a pharma product would be in a chemistry-related NAICS code. This cluster includes the following industries: 3391 Medical Equipment and Supplies Manufacturing 6221 General Medical and Surgical Hospitals

29

Detailed information can be found on Figure 14in the Appendix.

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The aging of America will likely increase demand for both direct health-related services as well as medical-related products. Current economic conditions hamper growth in technology companies as the availability of credit continues to remain tight and venture capital is less easy to obtain than prior to the 2007 recession. Hospitals will continue to engage in cost containment, but a recent decision by the United State Supreme Court on maintaining a program of national health care could have interesting ramifications. Depending on how this new system works out, this could lead to spending for medical services and support in a number of potentially opposing directions, depending on where companies, individuals and politics take the national program. It is likely that the outcomes of these decisions and implications will not be fully understood until after the fall term elections and well into 2013. Employment, wages and GRP are all forecasted to grow through 2021 for the Health Technology sector. Cluster summary measures for the northeast Ohio region:30 Location Quotient in 2011 o Medical Equipment and Supplies Manufacturing 1.21 o General Medical and Surgical Hospitals 1.59 Shift-share 2011-2016 o Medical Equipment and Supplies Manufacturing -14(-0.3%) o General Medical and Surgical Hospitals -2904(-2.9%) 31 Suppliers: share from top 10 o Medical Equipment and Supplies Manufacturing 56% o General Medical and Surgical Hospitals 60% Significant supplier base in northeast Ohio 32 Most key occupations have sufficient supply33 o Shortages: Industrial Engineers Welders, Cutters, Solderers and Brazers Inspectors, Testers, Sorters, Samplers, and Weighers o Surpluses Industrial Machinery Mechanics Maintenance and Repair Workers, General Electrical and Electronic Equipment Assemblers Dental Laboratory Technicians Medical Appliance Technicians Ophthalmic Laboratory Technicians

30 31 32 32 33

Detailed information can be found on Figure 11 in the Appendix. These values represent the percent of an industry's overall spending that go to its top 10 suppliers. Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. Detailed information can be found on Figure 16 in the Appendix. Detailed information can be found on Figure 18 in the Appendix.

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Degrees awarded July 2009 to June 201034 o Certificates and less than a Bachelor o Associate o Bachelor (BA/BS) o Masters (MA/MS) o Doctorate

847 698 388 75 26

Electric and Lighting cluster Cleveland and the region have a long history of innovation and production of lighting-related products. On a national basis, lighting and bulb manufacturing sales are expected to increase due to something of a recovery in the construction sector, as well as increased housing starts and existing home sales. The long run forecast for incandescent and CFL lighting is bleak. According to IBISWorld, sales of LED-based light sources are forecast to grow 60% per year through 2016. As they note, LED lighting is not included in the Lighting and Bulb Manufacturing Industry, it is likely is housed in NAICS 3344, Semiconductor and Other Electronic Component Manufacturing. Currently, and due to lower costs in China and Mexico, a significant share of LED lighting is imported. As standards of living are raised across the globe and costs of production increase correspondingly, the potential for attracting producers that are off shore into Cleveland becomes more likely. As part of a strategy to retain the lighting cluster in Cleveland, a strategy to do direct outreach to these firms will be essential. On the Lighting Fixtures side of the equation, while there are pressures from imports to hold costs down, the devaluation of the dollar has made United States exports more attractive when based on price. IBISWorld is forecasting some consolidation in the industry as smaller producers attempt to compete. As part of this effort to compete, there is the potential to attract these new and larger companies to Cleveland. While the national forecast from IBISworld suggests that renewable energy efforts will help this process, there may be some question to the validity of this as lower natural gas prices drive lower electric rates, making renewables such as wind and solar less price competitive. One aspect that will support adaptation of alternative energy in the state is the Ohio Renewable Energy Portfolio Standard. This standard sets rates for shares of electric produced by renewable sources. This Standard also sets the share of renewables that must be produced within Ohio. But demand for both smart grid equipment and for more efficient electrical equipment makes the producers of these goods as possible attraction targets for Cleveland. Finally, demand for both power and communications cable is increasing. Affected by some level of domestic recovery along with high levels of foreign demand coupled with a weak dollar make United States goods in NAICS 3359 attractive for export.

34

Detailed information can be found on Figure 17 in the Appendix.

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This cluster includes the following industries: 3351 3352 3353 3359 2211 3272 3344

Electric Lighting Equipment Manufacturing Household Appliance Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment and Component Manufacturing Electric Power Generation, Transmission and Distribution Glass and Glass Product Manufacturing Semiconductor and Other Electronic Component Manufacturing

Demand for electricity is growing and the cost and difficulty of permitting new base load power plants is increasing. Additionally, the United States Environmental Protection Agency regulations are forcing older coal-fired plants to be closed due to the costs of compliance. The limits to supply and increasing demand create opportunities on Cleveland to work in the areas of conservation, with residential and commercial lighting, better management of the national electric grid through "smart grid products" and more viable utilization of renewable sources by creating scalable storage from wind, solar and other sources. All of the industries are forecast to lose employment through 2021 in Northeast Ohio, while total wages remain stable and real GRP is forecast to experience some growth. This indicates that productivity, per worker, is expected to rise within the region. Cluster summary measures for the northeast Ohio region:35 Location Quotient in 2011 o Electric Lighting Equipment Manufacturing 1.73 1.60 o Household Appliance Manufacturing o 2.05 Electrical Equipment Manufacturing 1.70 o Other Electrical Equipment & Component Manufacturing o .81 Electric Power Generation, Transmission and Distribution .53 o Glass and Glass Product Manufacturing .46 o Semiconductor& Other Electronic Component Manufacturing Shift-share 2011-2016 -41(-3.5%) o Electric Lighting Equipment Manufacturing -6(-0.5%) o Household Appliance Manufacturing o Electrical Equipment Manufacturing - 178(-5.5%) o Other Electrical Equipment & Component Manufacturing -73(-2.5%) o Electric Power Generation, Transmission and Distribution -388(-8.7%) o Glass and Glass Product Manufacturing 13( 1.6%) o Semiconductor& Other Electronic Component Mfg. -109 (-4.4%)

35

Detailed information can be found on Figure 19 in the Appendix.

30

Suppliers: share from top 1036 o Electric Lighting Equipment Manufacturing o Household Appliance Manufacturing o Electrical Equipment Manufacturing o Electric Power Generation, Transmission and Distribution Significant supplier base in northeast Ohio37 Most key occupations have sufficient supply38 o Shortages: Electrical Engineers Industrial Engineers Welders, Cutters, Solderers, and Brazers Inspectors, Testers, Sorters, Samplers, and Weighers o Surpluses: Electrical and electronic engineering technicians Industrial machinery mechanics Maintenance and repair workers, general Tool and Die Makers Degrees awarded July 2009 to June 201039 o Certificates and less than a Bachelor 955 o Associate 641 o Bachelor (BA/BS) o 366 Masters (MA/MS) 161 o Doctorate 12

54% 57% 53% 67%

Oil and Gas cluster40 The City of Cleveland is in the Utica Shale play for natural gas and,28 there are growing opportunities on the extraction side of the business. But it is unlikely that in a "built out" environment like the City of Cleveland and Cuyahoga County, that this would be an interesting or potentially lucrative option. The need to run collection lines and gain easement rights for these lines may be cost prohibitive relative to the return on investment. During the production phase, there will be a significant need for workers as well as increased demand for goods and services. As drilling ramps up across Ohio, both services and goods producers are looking at Ohio as one location to supply products to the industry in Pennsylvania, West Virginia and Ohio. Cleveland is a bit out of the epicenter formed by these states. Some of the service suppliers may not be targets for attraction as they need to be closer to the field to be able to supply services efficiently. But all suppliers should not be ruled out, some of the 36

These values represent the percent of an industry's overall spending that go to its top 10 suppliers. Within the NEO region there are clusters of this industries top 10 suppliers that can engage with developing firms. Detailed information can be found on Figure 21 in the Appendix. 39 Detailed information can be found on Figure 20 in the Appendix. 40 Detailed information can be found on Figure 22, 23 and 24 in the Appendix. 37

38

31

services that are less "place based" and could be supplied from Cleveland. Some examples of this could include supplying legal, environmental and technical services as well as back office and real estate activities to the industry from Cleveland. A report on the industry in Ohio released in 2012 by a team from Cleveland State University, The Ohio State University and Marietta College29 suggests that Utica shale wells with a cost of $5 to $6 million per well could create an increase in output or sales in Ohio of nearly $10 billion by 2014. According to the study, there will be additional demand for manufactured goods such as valves and fittings, machinery and equipment leasing, and fabricated pipe.30 Eastern Ohio has seen an influx of investment around these shale plays which include companies such as V&M Star, Timken, and US Steel. It is likely that some Cleveland companies are well positioned to transition into supply chain for the drilling industry in Ohio as well as regionally. While the report by CSU, et al, was primarily focused on the current and short term economic impact of the shale plays, they did briefly mention the longer run implications for the output from the fields and the industry. As mentioned earlier, the output from the Ohio plays contain not only natural gas but also "liquids" which are used in a number of industries. As more wells are drilled, the price of natural gas has been declining due to significant production created by the Utica and Marcellus plays, as well as a number of other shale plays across the United States and Canada. The liquid content from the Ohio plays have been identified by some industry experts as the more valuable asset coming from the plays. The potential use of these "downstream" applications within Ohio must be tempered by the notion that "energy consumers outside the state might value Ohio's resources more highly than anyone else does, including Ohio manufacturers, in which case they would bid away those resources.31 That condition noted, the CSU, et al study does note that some potential downstream uses of these liquids include oil refining, nitrogen fertilizer production, and the chemical and polymer sector.32 As Cleveland pursues an attraction strategy targeting specific sites for development, it would be useful to include the downstream potential for the industry to support production in other cluster industries such as basic chemicals, paints and coatings, and adhesives as well as the polymers industry. While the downstream uses are not necessarily on the radar screen for attracting firms in the next 12 to 24 months, as decisions are made around processing investment (such as Shell considering a cracking plant in western Pennsylvania) these downstream industries and output uses should be part of a 3 to 5 year strategy for attracting firms to Cleveland. As noted earlier, Cleveland has the infrastructure, including transportation, suppliers and developable sites, as well as workforce and training infrastructure to support these downstream industries and uses.

32

Property Evaluations: The City of Cleveland has abundant and economically compelling real estate solutions for companies who are considering Cleveland as a location. Whether the uses are high end Class A office space, technology and flex space, distribution centers, manufacturing/heavy industrial facilities, call centers, or research and development locations, the City of Cleveland has an advantage in the site selection process when comparing the cost and availability of desired real estate.Existing facilities, redevelopment opportunities, shovel ready sites, and large land parcels all exist within the City or are located in close in suburbs controlled by the City of Cleveland Additionally, Cleveland compares favorably with other cities across the country when considering occupancy costs. As an example, the square foot rental rates for office and industrial space are: US Average

Cleveland Average

Class A office space

$27.09

$21.77 ($21.90 CBD)

Class B office space

$19.39

$16.51 ($17.43 CBD)

All classes:

$21.38

$16.61 ($17.78 CBD)

When comparing the cost of flex, distribution center (DC) and warehouse space Cleveland (region) again fares well from a rental rate comparison of costs per square foot:

DC/Warehouse space Flex/R&D space All industrial

$4.55

$3.76

$10.02

$7.88

$5.12

$3.50

Specific examples of the various types and sizes of land uses follow. Any one of these developments or shovel ready sites will have a broad appeal and interest to both corporations and the professional site selection community.

1-Chagrin Highlands. Chagrin Highlands is a 630 acre multi use real estate development located in the eastern suburbs of Cleveland on Interstate 271. Chagrin Highlands is a preeminent Class A office and retail development due to its location, access to highways, and large buildable land sites. Its appeal is enhanced by the large number of services and amenities within the development or available near by.

33

Chagrin Highland is one of the most attractive and desirable location for projects in the region. Chagrin Highlands would receive high marks as one of the best real estate choices for corporate headquarters, regional location or other Class A office needs. 2-Emerald Corporate Park. Emerald Corporate Park is a 55 acre office park located adjacent to the Cleveland Hopkins International Airport. The Park has direct access to Interstate 480, and so provides additional access to Interstates 80, 71, 77 and 90. The site is an attractive location for companies that desire a location close to the Airport and with access to the Interstates. It would be ideal for those companies that desire a close proximity to clients in the northeast Ohio region but also to clients who are within a short drive time to southeast Michigan and northwest Ohio. The park also provides direct, timely, and easy access to the central business district. The Park currently has an existing office building that can offer immediate occupancy. Also, Emerald Office Park can provide build to suit options for various size needs. Parcels as small as 2 acres or as large as 45 acres are currently available at the Park. The Park is suitable as corporate or regional headquarters locations data center or R&D facility options. 3-Cleveland Business Park. Cleveland Business Park is a 267 acre master planned commercial development designed to attract R & D , light indudtrial distribution and retail users. The Park is located adjacent to Hopkins International Airport and the NASA Glenn Research Center. The park enjoys over one mile of site frontage along Interstates 480 and 71. Currently, Phase I of the project includes 5 buildings ranging in size from 42,000 to 125,000 square feet. 4- Midtown Land Sites- (Hattenbach) - These are highly visible and well located parcels of 4.13, 3.25, 2.53, and .77 acres in the Midtown Corridor and adjacent to the central business district. The sites are regularly shaped and sit between 55th Street and 63rd Street and are bounded by Euclid Avenue to the south and Chester Avenue to the north. Located in the heart of the Midtown Health Tech Corridor, these sites are strategically positioned and close to University Circle, The Cleveland Clinic, University Hospitals, Cleveland State University and the CBD. Additionally, the district is served by the RTA's Health Line connecting all major centers of influence between the Downtown market and University Circle. The Midtown Health Tech Corridor will appeal to a varied and diverse group of industry segments including bio- science and wet lab users, data centers, health care-related firms, firms engaged in medical device R&D activities as well as high-tech companies. 5- Cuyahoga Valley Industrial Center (CVIC). CVIC is a 64 Acre site located in Cleveland's urban center and one of the largest development opportunities in Cleveland since the mid 1900's. This shovel ready site is directly adjacent to I-77 and provides 3/4 of a mile of interstate frontage. The site is 3 miles from the CBD and only 15 miles from Cleveland Hopkins Airport. The site is zoned General Industry (UI-A3). The site features direct rail service , utilities to the site and access to water transpiration via the Cuyahoga River. 34

6- Water Tower Park. This is a 20+ acre site located in the northeast area of the City at Coit Road and East 140th Street. This site is interesting on a number of different levels. It is urban in nature, is adjacent to the US Jobs Corps Training Campus, is adjacent to a biomass energy digester, as well as a Cleveland Public Power sub-station. Because of its unique location and adjacent attributes the property will have appeal to those firms interested in workforce training, inexpensive energy alternatives and large water consumers. Targeted industries for the project would include food processing; those industries that generate organic waste etc. 7 - Shoreway Commerce Park. This site is a former manufacturing and corporate headquarters for White Motors Corporation. In addition to a 450,000 square foot multi- tenant redeveloped manufacturing facility, the project has 16.8 acres "shovel ready" site. The site is served by rail, has access to I-90 and is zoned General Industrial. This is land can be an attractive alternative to the more expensive suburban product, and already has credibility due to the tenant base currently located in the existing facility. 8- Midland Steel Site, 10615 Madison Avenue. This 22 acre site is included in the Cleveland Industrial Land Bank. The location provides good proximity to the CBD, Cleveland Hopkins International Airport and quality public transportation. The site is also well integrated into a residential neighborhood. Utilities are already available at the site. The site is "shovel ready". Summary and Conclusions The City of Cleveland has tremendous innate assets that translate into competitive advantages when attracting companies to the city. Cleveland is within 500 miles of 50% of the country's population and 60% of the country's Fortune 500 companies, with high levels of connectivity via rail, highway, and water, and a United Airlines hub airport. That connectivity is paralleled by high levels of fiber, reliable electric, and significant access to both fresh water and wastewater treatment, coupled with low levels of environmental threats from hurricanes, tsunamis, wildfires, earthquakes, and tornados. The region has a long history of manufacturing across a number of durable and nondurable industries, as well as a significant presence in the services industry sector including health care, financial services and insurance, information technology, and professional and technical services such as legal and engineering services. These are all buttressed by a deep and varied workforce that is supported by a strong system of both public and private providers of higher education. Mohr Partners recommends a multipronged strategy for the city that capitalizes on the assets of the city and in some cases the assets of the region. The first, and likely most important recommendation for the Department of Economic Development is to create a brand identity for the department that is different from the rest of the city and enables any content or materials to be immediately recognizable as being from the department and the City of Cleveland. This should be professionally developed by an outside consultant with the knowledge that this brand 35

is part of a sales activity, rather than serving a constituent base within the city. This is likely a paradigm shift when thinking about how the city presents itself on its website and through other media. The next recommendation is utilizing both passive and proactive approaches to develop a program of attraction efforts. First, to identify best practices of economic development websites on a global basis and then develop, based on the brand, a sales-based and oriented website or portal that is designed specifically for the department and specifically for attracting and expanding companies. The second recommendation is to conduct, on an annual basis, a familiarization or "fam" tour in which site selectors are invited to Cleveland to learn about opportunities to locate their clients in the city. A third recommendation is to conduct regular outreach to the site selector community using the branded materials to keep Cleveland at the "top of mind" within the site selector community, as well as communicating available new or unique sites and other useful information like new policies and incentives that will help keep Cleveland on the list of potential locations. A fourth recommendation is to identify cities, such as Dallas, Atlanta, New York, and Chicago, that have a critical mass of site selectors and do a reverse "fam" tour, with department members calling on site selectors in their offices to sell Cleveland. The final recommendation is to undertake a direct program of outreach to companies in the targeted industries that may be likely to be expanding or consolidating to new locations. As these programs are developed, it is essential that a single point of contact be designated, either generally or by project, to be the concierge providing services and information to site selectors and companies looking to locate in Cleveland. These services should continue throughout the project so that issues of information and occupancy are raised through a single call and resolution managed by a single person. Mohr Partners assessed industries within Cuyahoga County and across the northeast Ohio region for their potential as cluster targets based on levels of concentration, the potential for competitive advantage, available workforce and associated training, and the long-run forecast for the industry. A number of the industries that are targets are not surprising and include Paints and Coatings, Auto Parts Manufacturing, Food Processing, and Health Technologies. This group of industries already fit well into the region and are already successfully producing here. A few of the industry targets may need a bit of qualification and comments in their ability to be targets for attraction into the City of Cleveland. Information Technology, while having a presence here as an industry, is also a crosscutting set of occupations that enable a number of industries, including manufacturing, financial services, professional services, and headquarters operations to be successful here. Management of Companies (essentially headquarter locations) has a strong presence here, but without direct international air service to Europe or Asia, most attraction targets in this sector will likely be either U.S. national or regional headquarter locations. Within the Lighting industry there is a long run shift from incandescent lamps to compact fluorescent (CFL) and then to light-emitting-diode-based (LED) lighting for both residential and commercial applications. Targeting in this industry would require a conceptual 36

shift from the former to the latter, and would require attracting a new set of industries, but likely candidates would come from both new and old companies. The final industry that was added to the list for potential targeting is the oil and gas industry. This is based on the Utica and Marcellus shale activity that is occurring near Cleveland in Ohio, West Virginia, and Pennsylvania. While Mohr Partners is not suggesting that Cleveland actively engage in drilling in the city or the county, there is the potential to attract investment in goods and services that are currently in demand in the oil fields. Although removed geographically from the hub of most of the drilling activities, the manufacturing base in Cleveland, as well as the base in financial services and professional and technical services could support the needs of the industry within the three-state region. This industry also provides a second and longer-run opportunity for Cleveland: the downstream use of the output from the shale activity in the target industries. While driving down natural gas and potentially electric costs, the shale activity in Ohio also generates significant by-products and liquids that could be used to support other target industries such as basic chemicals, paints and coatings, and polymers, should investment in the infrastructure to separate and refine the products occur in the region. When targeting industries and doing outreach to their companies and site selectors, a long run, steady, and consistent approach needs to be developed and maintained. Once the brand is created, it must be fully implemented on the website, in all materials, and within all documents and communications. Once the website is created, it must be regularly reviewed and refreshed, and content be kept current and up-to-date. Outreach, particularly to site selectors, needs to be done on a regular and consistent basis using branded materials. Finally, target industries may change as demand changes for products, and as some products are retired, some morph into new products as new products are created. It is necessary to review the target industries on a regular basis, possibly on a two- or three-year cycle.

37

Notes: 1

Science, Technology, Engineering and Math www.economy.com 3 The region includes the following counties: Cuyahoga, Lorain, Lake, Medina, and Geauga 4 http://www.clevelandplusbusiness.com/Plus-Advantage.aspx 5 Crains Cleveland Business. (2012). United execs laud efforts to back local hub. 33(25) p24. 6 http://bestplaces.net/ 7 http://www.bestplaces.net/docs/studies/safest_places_from_natural_disasters.aspx 8 http://www.city.cleveland.oh.us/CityofCleveland/Home/Government/CityAgencies/EconomicDevelopment 9The firms most senior and influential executives 10 Porter, M.E. (1990). The competitive advantage of nations. New York: Free Press. 11 Porter, M.E. (2000). Location, competition, and economic development: local clusters in a global economy. Economic Development Quarterly, 14(1), 15-34. 12 Hill, E.W. & Brennan, J.F. (2000). A methodology for identifying the drives of industrial clusters: the foundation of regional competitive advantage. Economic Development Quarterly, 14(1), 65-96. 13 Kleinhenz, J. (2000). An introduction to the northeast Ohio clusters project. Economic Development Quarterly, 14(1), 63-64. 14 The northeast Ohio region for this study includes the following counties: Ashland, Ashtabula, Cuyahoga, Columbiana, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull, Tuscarawas and Wayne. These are the counties that currently comprise the Jobs Ohio definition of "Northeast Ohio." 15 Crains Cleveland Business, (2012) 33(25) 1 and 24. 16 There has been discussion of plants referred to as "crackers," which split the products into various sub-products with differing uses have been targeted to western Pennsylvania, southern Ohio and norther West Virginia 17 North American Industrial Classification System. See more at http://www.census.gov/eos/www/naics/ 18 http://implan.com/V4/Index.php 19 http://www.onesource.com/ 20 Data are supplied by the Cleveland/Cuyahoga Workforce Investment Board and Ohio Jobs and Family Services 21 https://surveys.nces.ed.gov/ipeds/ 22 http://beavercountian.com/content/daily/its-beaver-county-shell-chemical-signs-land-option-for-cracker-plant 23 http://rsqe.econ.lsa.umich.edu/?page=forecasts&name=US 2

24

From www.census.gov: NAICS 5259 This industry group comprises legal entities (i.e., investment pools and/or funds) organized to pool securities or other assets (except insurance and employee-benefit funds) on behalf of shareholders, unit holders, or beneficiaries. 25

From www.census.gov: NAICS 5239 This industry group comprises establishments primarily engaged in one of the following: (1) acting as principals in buying or selling financial contracts (except investment bankers, securities dealers, and commodity contracts dealers); (2) acting as agents (i.e., brokers) (except securities brokerages and commodity contracts brokerages) in buying or selling financial contracts; or (3) providing other investment services (except securities and commodity exchanges), such as portfolio management; investment advice; and trust, fiduciary, and custody services. 26 http://www.clevelandplusbusiness.com/ 27 This industry includes telecommunications resellers as well as (from the Census website) establishments primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation. This industry also includes establishments primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems. Establishments providing Internet services or voice over Internet protocol (VoIP) services via client-supplied telecommunications connections are also included in this industry. 28 http://www.dnr.state.oh.us/geosurvey/tabid/23014/Default.aspx 29 Thomas, A.R. et al. (2012). An analysis of the economic potential for shale formations in Ohio. tp://urban.csuohio.edu/publications/center/center_for_economic_development/Ec_Impact_Ohio_Utica_Shale_2012 .pdf 30 Page 49. 31 Thomas, A.R., et al. page 66. 32 Thomas, A.R., et al. page 65-70.

38

Appendix:

Figure 1: Paint and Coatings Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 Northeast Ohio Region NAICS

Description:

Employment 2011

LQ 2011

LQ 2016

Cuyahoga County SS 06-11

SS 11-16

Employment 2011

LQ 2011

LQ 2016

SS 06-11

SS 11-16

3255

Paint, Coating & Adhesive Mfg

3,570

4.73

5.08

-177.35

183.66

2,110

7.36

7.68

-174.57

10.37

3251

Basic Chemical Manufacturing,

4,150

2.12

2.26

-69.89

193.10

1,120

1.50

1.49

79.48

-52.97

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data is used for 2011 and an estimate is used for 2016.

Figure 2: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Paints and Coatings Manufacturing Industry Classification

Certificates < B.S.

Associate

B.A./B.S.

M.A./M.S.

Ph.D.

Chemical Technicians

1

0

0

0

0

Chemical Engineering

0

0

84

13

18

Chemistry

0

0

204

21

48

Industrial Engineering

25

0

22

15

0

Industrial Production Technologies/Technicians

17

49

8

0

0

Mechanic and Repair Technologies/Technicians- Other

29

0

0

0

0

Quality Control and Safety Technologies/Technicians

97

1

0

0

0

Engineering-Related Fields

0

0

0

40

0

Total Degrees

169

50

318

89

66

Source: Institute of Education Science

40

Figure 3: Education Intensive Occupations in the Paints and Coatings Industries: Job Openings Vs. Job Seekers Job Postings 85 1227 159 68 45 260 1200 276

Individuals Seeking Jobs 93 647 235 150 241 400 3117 206

SOC code Occupation Title 17-2041 Chemical engineers 17-2112 Industrial engineers 17-3026 Industrial engineering technicians 19-2031 Chemists 19-4031 Chemical technicians 49-9041 Industrial machinery mechanics 49-9042 Maintenance and repair workers, general 51-9061 Inspectors, testers, sorters, samplers, and weighers Source: The Conference Board Help Wanted Online *Data generated for this Table were gathered between October 14th, 2012 and November 13th, 2012

41

Ratio of Job Seekers to Job Openings 1.09 0.53 1.48 2.21 5.36 1.54 2.60 0.75

Figure 4: Auto Manufacturing Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016

NAICS

Description:

Northeast Ohio Region Cuyahoga County Employment LQ LQ Employment LQ LQ 2011 2011 2016 SS 06-11 SS 11-16 2011 2011 2016 SS 06-11 SS 11-16

3361

Motor Vehicle Manufacturing,

4,440

2.08

2.13

428.08

23.71

670

0.82

0.83

-5.21

-17.75

3362

Motor Vehicle Body and Trailer Mfg

2,270

1.41

1.50

685.44 114.85

50

0.08

0.08

10.87

-3.64

3363

Motor Vehicle Parts Manufacturing,

12,520

2.10

2.34 -2060.54 1105.38

3,730

1.65

1.69 -1506.58

-32.62

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

42

Figure 5: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Automotive Manufacturing Industry Classification

Certificates < B.S.

Associate

B.A./B.S.

M.A./M.S.

Ph.D.

Drafting/Design Engineering Technologies/Technicians

30

95

0

0

0

Engineering-Related Fields

0

0

0

40

0

Heavy/Industrial Equipment Maintenance Technologies

16

2

0

0

0

Industrial Engineering

25

0

22

15

0

Industrial Production Technologies/Technicians

17

49

8

0

0

Machine Shop Technology/Assistant

23

0

0

0

0

Mechanic and Repair Technologies/Technicians- Other

29

0

0

0

0

Mechanical Engineering

0

15

162

43

7

Mechanical Engineering Related Technologies/Technicians

17

103

38

0

0

Mechanics and Repairers- General

144

0

0

0

0

Precision Metal Working

267

0

0

0

0

Quality Control and Safety Technologies/Technicians

97

1

0

0

0

Vehicle Maintenance and Repair Technologies

445

97

0

0

0

Welding Engineering Technology/Technician

0

0

0

0

0

Welding Technology/Welder

244

0

0

0

0

Total Degrees

1354

362

230

98

7

Source: Institute of Education Science

43

Figure 6: Education Intensive Occupations in the Automotive Manufacturing Industries: Job Openings Vs. Job Seekers Individuals Ratio of Job Seekers SOC code Occupation Title Job Postings Seeking Jobs to Job Openings 17-2112 Industrial engineers 1227 647 0.53 17-2141 Mechanical engineers 616 606 0.98 17-2199 Engineers, all other 75 84 1.12 47-2111 Electricians 363 1068 2.94 49-9041 Industrial machinery mechanics 260 400 1.54 49-9042 Maintenance and repair workers, general 1200 3117 2.60 51-2022 Electrical and electronic equipment assemblers 174 698 4.01 51-4041 Machinists 698 920 1.32 51-4111 Tool and die makers 90 339 3.77 51-4121 Welders, cutters, solderers, and brazers 474 176 0.37 51-4122 Welding, soldering, and brazing machine setters, operators, and tenders 47 87 1.85 51-9061 Inspectors, testers, sorters, samplers, and weighers 276 206 0.75 Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012

44

Figure 7: Banking & Finance Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 NAICS 5211 5221 5222 5223 5231 5232 5241 5242 5251 5259 5511 5614

Description: Monetary Authorities-Central Bank, Depository Credit Intermediation, Nondepository Credit Intermediation, Activities Related to Credit Intermediation, Securities and Commodity Contracts Intermediation and Brokerage, Securities and Commodity Exchanges, Other Financial Investment Activities, Insurance Carriers, Agencies, Brokerages, and Other Insurance Related Activities, Insurance and Employee Benefit Funds, Other Investment Pools and Funds, Management of Companies and Enterprises, Business Support Service (Including Call Centers)

Northeast Ohio Region Employment LQ LQ SS 2011 2011 2016 06-11 -74.26

SS 11-16

Employment 2011

Cuyahoga County LQ LQ SS 2011 2016 06-11

SS 11-16

340

1.15

1.16

-4.17

170

1.52

1.43

-62.39

-17.09

22,890

0.95

0.95 -3789.09 -293.40

11,240

1.22

1.24 -3403.34

-310.79

5,150

0.68

0.69

-751.42

-44.03

3,350

1.17

1.20

-490.50

-34.17

2,750

0.83

0.84

-183.80

12.73

1,420

1.12

1.17

-182.79

6.50

2,490

-54.59

4,680

0.74

0.76

117.84

1.03

1.05

-383.15

10 0.10

0.10

1.50

0.34

10

48.97

0.25

0.27

1.50

0.34 5239

2,360

0.50

0.51

-244.41

18.27

1,380

0.77

0.80

-226.97

-14.32

21,540

1.17

1.19

-877.65

-20.03

15,240

2.17

2.25

-997.39

-33.76

11,670

0.97

0.98

-619.33

-63.88

5,420

1.19

1.23

66.62

-40.64

460

0.72

0.77

-70.92

23.11

310

1.28

1.34

-66.47

1.88

-189.55

-168.07

-16.02

400

0.71

0.71

-10.02

330

1.54

1.54

40,590

1.56

1.54 -2257.41 -1450.94

16,820

1.70

1.67 -2417.19 -1052.56

15,940

1.44

1.41 2102.14 -781.26

5,450

1.29

1.26

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

45

87.20

-427.29

Figure 8: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Banking and Finance Industry Classification Computer and Information Sciences- General

Software and Media Applications

Telecommunications Management

Business Administration- Management and Operations Business- Management- Marketing- and Related Support Services- Other

Management and Services

Quantitative Methods

Registered Nursing, Administration, Nursing Research and Clinical Nursing Total Degrees Source: Institute of Education Science

Certificates < B.S. Associate B.A./B.S. M.A./M.S. Certificate > B.S. Ph.D. 20 46 58 28 0 0Computer and Information Sciences and Support Services- Other 8 33 6 0 0 0Computer 24 96 10 1 0 0Computer Systems Analysis 71 26 56 13 0 6Computer Systems Networking and 46 192 33 0 0 0Computer/Information Technology Administration and 19 90 4 0 0 0Accounting and Related Services 74 256 631 159 0 0 115 522 1258 1363 30 39 0 0 12 0 0 0Finance and Financial Management Services 0 4 329 60 0 0Human Resources 13 91 118 75 0 8Management Information Systems and Services 0 3 57 10 3 0Management Sciences and 0 0 1 25 0 0Marketing Research 0 0 0 0 2 0Mechanics and Repairers- General 144 0 0 0 0 0 167 1125 1224 285 55 101 701 2484 3797 2019 90 154

46

Figure 9: Education Intensive Occupations in the Management of Companies and Enterprises Industry: Job Openings Vs. Job Seekers SOC code Occupation Title 13-1022 Wholesale and retail buyers, except farm products Purchasing agents, except wholesale, retail, and farm products Training and development specialists Human resources, training, and labor relations specialists Management analysts 13-1161 Market Research Analysts and Marketing Specialists* Business operations specialists, all other Accountants and auditors Financial analysts Loan officers Financial specialists, all other Computer programmers Computer software engineers, applications Computer software engineers, systems software Computer support specialists 15-1051 Computer systems analysts Network and computer systems administrators Network systems and data communications analysts Computer specialists, all other Industrial engineers Maintenance and repair workers, general Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012 47

Job Postings N/A N/A 383 N/A 524 249 91 0 1,279 176 N/A N/A N/A 554 125 978 1,608 647 152 1,920 1,227 1,200

Ratio of Job Individuals Seekers to Job Seeking Jobs Openings N/A N/A 13-1023 N/A N/A 13-1073 821 2.14 13-1079 N/A N/A 13-1111 1991 3.80 0013-1199 013-2011 0013-2051 636 3.61 13-2072 N/A N/A 13-2099 N/A N/A 15-1021 N/A N/A 15-1031 440 0.79 15-1032 345 2.76 15-1041 1822 1.86 907 0.56 15-1071 653 1.01 15-1081 381 2.51 15-1099 45 0.02 17-2112 647 0.53 49-9042 3117 2.60

Figure 10: Food Processing Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 NAICS

Description:

Northeast Ohio Region Employment LQ LQ SS SS 2011 2011 2016 06-11 11-16

Cuyahoga County Employment LQ LQ SS SS 2011 2011 2016 06-11 11-16

3111

Animal Food Manufacturing,

540

0.79

0.84 56.89 25.13

80

0.31

0.30 19.61

-3.68

3112

Grain and Oilseed Milling,

600

0.77

0.83 108.26 30.53

200

0.68

0.71 42.27

0.18

3113

Sugar and Confectionery Product Manufacturing,

720

0.74

0.78 121.39 24.42

260

0.71

0.74 72.94

2.43

3114

Fruit and Vegetable Preserving and Specialty Food Mfg.

4,040

1.75

1.85 544.57 167.13

1,110

1.26

1.30 81.37

-6.28 -

3115

Dairy Product Manufacturing,

2,080

1.20

1.27 245.13 88.44

390

0.59

0.61 119.15

-1.54

3116

Animal Slaughtering and Processing,

3,120

0.46

0.49 212.54 133.66

80

0.03

0.03 -36.30

-3.24

3118

Bakeries and Tortilla Manufacturing,

3,680

0.96

1.02 178.83 160.83

1,380

0.94

0.99 17.33 10.31

3119

Other Food Manufacturing,

2,700

1.17

1.22 642.13 78.49

560

0.64

0.65 213.52 -14.61

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

48

Figure 11: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Food Processing Industry Classification

Certificates < B.S.

Associate

B.A./B.S.

M.A./M.S.

Ph.D.

Agricultural and Food Products Processing

0

2

0

0

0

Heavy/Industrial Equipment Maintenance Technologies

16

2

0

0

0

Industrial Engineering

25

0

22

15

0

Industrial Production Technologies/Technicians

17

49

8

0

0

Mechanic and Repair Technologies/Technicians- Other

29

0

0

0

0

Mechanical Engineering Related Technologies/Technicians

17

103

38

0

0

Mechanics and Repairers- General

144

0

0

0

0

Quality Control and Safety Technologies/Technicians

97

1

0

0

0

Animal Sciences

0

22

0

0

0

Computer Systems Analysis

71

26

56

13

6

Computer Systems Networking and Telecommunications

46

192

33

0

0

Machine Shop Technology/Assistant

23

0

0

0

0

Total Degrees

485

397

157

28

6

Source: Institute of Education Science

49

Figure 12: Education Intensive Occupations in the Food Processing Industries: Job Openings Vs. Job Seekers SOCcode 15-1051 19-1012

Individuals Seeking Jobs

1608

907 0.56

22

21 0.95

5

15 3.00

260

400 1.54

1200

3117 2.60

Food scientists and technologists

19-4011

Agricultural and food science technicians

49-9041

Industrial machinery mechanics

49-9042

Maintenance and repair workers, general

49-9043

Maintenance workers, machinery

51-9061

Job Postings

Occupation Title Computer systems analysts

Ratio of Job Seekers to Job Openings

15

529 35.27

276

206 0.75

Inspectors, testers, sorters, samplers, and weighers

Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012

50

Figure 13: Information Technology Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 NAICS:

Description:

5171

Wired Telecommunications Carriers,

5172

Northeast Ohio Region Employment LQ LQ SS 2011 2011 2016 06-11

Cuyahoga County SS Employment LQ LQ SS 11-16 2011 2011 2016 06-11

5,920

0.77

0.84 -446.14 389.65

Wireless Telecommunications Carriers

950

0.41

0.43 -312.98

5174

Satellite Telecommunications,

700

4.45

4.60 -244.59

5179

Other Telecommunications,

590

0.37

5182

Data Processing, Hosting, & Services

1,860

0.56

3,200

1.09

1.18 -634.72

110.62

31.84

520

0.59

0.61 48.49

-4.68

9.82

140

2.34

2.35

-4.21

-4.04

0.36

371.79 -20.40

300

0.50

0.50 271.84

-9.53

0.57

165.34 -10.31

980

0.78

0.80 87.12

-15.00

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

51

SS 11-16

Figure 14: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Information Technology Industry Classification Computer and Information Sciences- General Computer and Information Sciences and Support Services- Other Computer Engineering Computer Engineering Technologies/Technicians Computer Installation and Repair Technology/Technician Computer Programming Computer Science Computer Software and Media Applications Computer Systems Analysis Computer Systems Networking and Telecommunications Computer/Information Technology Administration and Management Data Entry/Microcomputer Applications Electrical- Electronics and Communications Engineering Electrical Engineering Technologies/Technicians Electrical/Electronics Maintenance and Repair Technology Electromechanical Instrumentation and Maintenance Technologies/Technicians Engineering-Related Fields Machine Shop Technology/Assistant Mechanical Engineering Related Technologies/Technicians Mechanics and Repairers- General Quality Control and Safety Technologies/Technicians Total Degrees Source: Institute of Education Science

52

Certificates < B.S. 20 8 0 13 4 50 0 24 71 46 19 0 4 28 12 1 0 23 17 144 97 581

Associate 46 33 2 104 0 102 0 96 26 192 90 9 33 331 0 12 0 0 103 0 1 1180

B.A./B.S. 58 6 37 0 0 16 95 10 56 33 4 0 107 29 0 0 0 0 38 0 0 489

M.A./M.S. 28 0 14 0 0 13 29 1 13 0 0 0 63 0 0 0 40 0 0 0 0 201

Certificate > B.S. 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3

Ph.D. 0 0 4 0 0 0 9 0 6 0 0 0 5 0 0 0 0 0 0 0 0 24

Figure 15: Education Intensive Occupations in the Information Technology Industries: Job Openings Vs. Job Seekers SOCcode 13-1111 13-1161 15-1021 15-1031 15-1032 15-1041 15-1051 15-1071 15-1081 17-2071 17-2072 17-3023

Job Individuals Seeking Postings Jobs 524 1991 249 0 N/A N/A 554 440 125 345 978 1822 1608 907 647 653 152 381 356 195 78 126 153 362

Occupation Title Management analysts Market Research Analysts and Marketing Specialists* Computer programmers Computer software engineers, applications Computer software engineers, systems software Computer support specialists Computer systems analysts Network and computer systems administrators Network systems and data communications analysts Electrical engineers Electronics engineers, except computer Electrical and electronic engineering technicians

49-2022 Telecommunications equipment installers and repairers, except line installers 49-2094 Electrical and electronics repairers, commercial and industrial equipment 49-2097 Electronic home entertainment equipment installers and repairers 49-9052 Telecommunications line installers and repairers Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012

53

181 29 15 23

529 345 75 247

Ratio of Job Seekers to Job Openings 3.80 0.00 N/A 0.79 2.76 1.86 0.56 1.01 2.51 0.55 1.62 2.37 2.92 11.90 5.00 10.74

Figure 16: Health Technology Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 Northeast Ohio Region

NAICS: 3391

Description: Medical Equipment and Supplies Manufacturing,

6221

General Medical and Surgical Hospitals,

Employment 2011

LQ 2011

LQ 2016

SS 06-11

Cuyahoga County SS 11-16

5,090

1.21

1.23 -306.39 -13.93

97,180

1.59

1.57 1291.79 2904.45

Employment 2011

LQ 2011

LQ 2016

SS 06-11

SS 11-16

1,650

1.03

1.01 -128.70 -104.46

48,880

2.10

2.11 2558.69 1782.92

-

-

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

54

Figure 17: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Health Technology Industry Classification Biology Technician/Biotechnology Laboratory Technician Biomedical/Medical Engineering Clinical Laboratory Science/Medical Technology/Technologist Clinical/Medical Laboratory Assistant Clinical/Medical Laboratory Science and Allied Professions- Other Dental Support Services and Allied Professions Electrical Engineering Technologies/Technicians Electrical/Electronics Maintenance and Repair Technology Electromechanical Instrumentation and Maintenance Technologies/Technicians Heavy/Industrial Equipment Maintenance Technologies Industrial Engineering Industrial Production Technologies/Technicians Machine Shop Technology/Assistant Mechanic and Repair Technologies/Technicians- Other Mechanical Engineering Mechanical Engineering Related Technologies/Technicians Ophthalmic and Optometric Support Services and Allied Professions Quality Control and Safety Technologies/Technicians Welding Technology/Welder Total Degrees Source: Institute of Education Science

55

Certificates < B.S. 9 0 0 37 0 292 28 12 1 16 25 17 23 29 0 17 0 97 244 847

Associate 2 0 0 12 2 152 331 0 12 2 0 49 0 0 15 103 17 1 0 698

B.A./B.S. 10 113 6 0 0 0 29 0 0 0 22 8 0 0 162 38 0 0 0 388

M.A./M.S. 0 20 0 0 0 0 0 0 0 0 15 0 0 0 43 0 0 0 0 78

Ph.D. 0 19 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 26

Figure 18: Education Intensive Occupations in the Health Technology Industries: Job Openings Vs. Job Seekers SOC code 17-2112 17-2141 17-3026

Occupation Title Industrial engineers

Individuals Seeking Jobs

Ratio of Job Seekers to Job Openings

1227

647.00

0.53

616

606.00

0.98

159

235.00

1.48

260

400.00

1.54

1200

3117.00

2.60

174

698.00

4.01

58

83.00

1.43

698

920.00

1.32

474

176.00

0.37

276

206.00

0.75

9

24.00

2.67

3

10.00

3.33

2

5.00

2.50

Mechanical engineers Industrial engineering technicians

49-9041

Industrial machinery mechanics

49-9042

Maintenance and repair workers, general

51-2022

Electrical and electronic equipment assemblers

51-2023

Electromechanical equipment assemblers

51-4041

Machinists

51-4121

Job Postings

Welders, cutters, solderers, and brazers

51-9061

Inspectors, testers, sorters, samplers, and weighers

51-9081

Dental laboratory technicians

51-9082

Medical appliance technicians

51-9083

Ophthalmic laboratory technicians

Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012 56

Figure 19: Lighting and Electric Cluster: Location Quotients and Shift Share Analysis for 2011 and 2016 NAICS 2211

Description: Electric Power Generation, Transmission and Distribution,

3272

Glass and Glass Product Manufacturing,

3344

17 County Region Employment LQ LQ SS SS 2011 2011 2016 06-11 11-16 4,440

0.81

0.76-560.13 -388.94

600

0.53

0.56 -98.97

Semiconductor & Other Electronic Component Mfg.

2,460

3351

Electric Lighting Equipment Manufacturing,

3352

Employment 2011

Cuyahoga County LQ LQ SS 2011 2016 06-11

SS 11-16

1,190

0.57

0.52 -90.03 -164.56

13.31

260

0.61

0.61 -81.54

0.46

0.45 65.40 -109.76

510

0.25

0.22 106.70 -74.10

1,140

1.73

1.70-424.20 -41.31

470

1.88

1.79 -259.96 -38.17

Household Appliance Manufacturing,

1,320

1.60

1.62 -67.81

-6.36

660

2.10

2.08 101.86 -28.18

3353

Electrical Equipment Manufacturing,

3,950

2.05

2.00 33.06 -178.01

2,710

3.70

3.63 323.82 -155.27

3359

Other Electrical Equipment and Component Mfg.

2,880

1.70

1.69 121.76 -73.85

890

1.38

1.31 209.28 -79.73

*Source: Economy.com *Notes: Data used for these calculations is current until 2010, forecast data are used for 2011 and an estimate was used for 2016.

57

-9.90

Figure 20: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Electric and Lighting Industries Classification Drafting/Design Engineering Technologies/Technicians Electrical- Electronics and Communications Engineering Electrical Engineering Technologies/Technicians Electrical/Electronics Maintenance and Repair Technology Electromechanical Instrumentation and Maintenance Technologies/Technicians Engineering-Related Fields Heavy/Industrial Equipment Maintenance Technologies Industrial Engineering Industrial Production Technologies/Technicians Machine Shop Technology/Assistant Mechanic and Repair Technologies/Technicians- Other Mechanical Engineering Mechanical Engineering Related Technologies/Technicians Mechanics and Repairers- General Physical Science Technologies/Technicians Precision Metal Working Quality Control and Safety Technologies/Technicians Welding Technology/Welder Total Degrees Source: Institute of Education Science

58

Certificates < B.S. 30 4 28 12 1 0 16 25 17 23 29 0 17 144 1 267 97 244 955

Associate 95 33 331 0 12 0 2 0 49 0 0 15 103 0 0 0 1 0 641

B.A./B.S. 0 107 29 0 0 0 0 22 8 0 0 162 38 0 0 0 0 0 366

M.A./M.S. 0 63 0 0 0 40 0 15 0 0 0 43 0 0 0 0 0 0 161

Ph.D. 0 5 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 12

Figure 21: Education Intensive Occupations in the Electric and Lighting Industries: Job Openings Vs. Job Seekers Job Individuals SOC code Occupation Title Postings Seeking Jobs 17-2071 Electrical engineers 356 195 17-2112 Industrial engineers 647 1227 17-2141 Mechanical engineers 606 616 Electrical and electronic engineering technicians 17-3023 362 153 Industrial machinery mechanics 49-9041 400 260 Maintenance and repair workers, general 49-9042 529 15 Electrical and electronic equipment assemblers 51-2022 698 174 Electromechanical equipment assemblers 51-2023 83 58 Machinists 51-4041 920 698 Tool and die makers 51-4111 339 90 Welders, cutters, solderers, and brazers 51-4121 176 474 Inspectors, testers, sorters, samplers, and weighers 51-9061 206 276 Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012

59

Ratio of Job Seekers to Job Openings 0.55 0.53 0.98 2.37 1.54 35.27 4.01 1.43 1.32 3.77 0.37 0.75

Figure 22: Oil and Gas Extraction: Location Quotients and Shift Share Analysis for 2011 and 2016

NAICS: 2111

Description: Oil and Gas Extraction,

Northeast Ohio Region Employment LQ LQ SS 2011 2011 2016 06-11 540

0.23

0.22

-50.86

SS 11-16 -14.84

Cuyahoga County LQ LQ SS 2011 2016 06-11

Employment 2011 40

0.04

0.04

*Source: Economy.com *Notes: Data used for these calculations are current until 2010, forecast data are used for 2011 and an estimate is used for 2016.

60

-24.22

SS 11-16 -1.10

Figure 23: Degrees Issued from July 1st, 2009 to June 30th, 2010 in the 17 County Region Relative to the Oil and Gas Extraction Industry Classification Computer and Information Sciences- General Computer and Information Sciences and Support Services- Other Engineering-Related Fields Industrial Engineering Industrial Production Technologies/Technicians Machine Shop Technology/Assistant Mechanic and Repair Technologies/Technicians- Other Mechanical Engineering Mechanical Engineering Related Technologies/Technicians Mechanics and Repairers- General Physical Science Technologies/Technicians Quality Control and Safety Technologies/Technicians Vehicle Maintenance and Repair Technologies Geological and Earth Sciences/Geosciences Accounting and Related Services Finance and Financial Management Services Heavy/Industrial Equipment Maintenance Technologies Total Degrees Source: Institute of Education Science

Certificates < B.S. 20 8 0 25 17 23 29 0 17 144 1 97 445 0 74 0 16 916

61

Associate 46 33 0 0 49 0 0 15 103 0 0 1 97 0 256 4 2 606

B.A./B.S. 58 6 0 22 8 0 0 162 38 0 0 0 0 51 631 329 0 1305

M.A./M.S. 28 0 40 15 0 0 0 43 0 0 0 0 0 5 159 60 0 350

Certificate > B.S. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Ph.D. 0 0 0 0 0 0 0 7 0 0 0 0 0 0 0 0 0 7

Figure 24: Education Intensive Occupations in the Gas and Oil Extraction Industry: Job Openings Vs. Job Seekers SOC Job Individuals code Occupation Title Postings Seeking Jobs 13-2011 Accountants and auditors 1279 0 13-2051 Financial analysts 176 636 15-1041 Computer support specialists 15978 1822 1099 Computer specialists, all other 1920 45 1227 17-2112 Industrial engineers 647 4 17-2151 Mining and geological engineers, including mining safety engineers 16 12 17-2171 Petroleum engineers 8 17-2199 Engineers, all other 75 84 17-3029 Engineering technicians, except drafters, all other 15 21 5 19-2042 Geoscientists, except hydrologists and geographers 9 1 19-4041 Geological and petroleum technicians 20 1068 47-2111 Electricians 363 40 49-9012 Control and valve installers and repairers, except mechanical door 6 260 400 49-9041 Industrial machinery mechanics 3117 1200 49-9042 Maintenance and repair workers, general Source: The Conference Board Help Wanted Online *Data generated for this Table was gathered between October 14th, 2012 and November 13th, 2012

62

Ratio of Job Seekers to Job Openings 0.00 3.61 1.86 0.02 0.53 4.00 0.67 1.12 1.40 1.80 0.05 2.94 6.67 1.54 2.60

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