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Cleveland: General Business & Economic News

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3 hours ago, cle_guy90 said:

This article talks about the multiplying affect the 1500 jobs in Avon Lake will have on the economy. 

 

https://www.cleveland.com/business/2019/11/fords-1-billion-investment-in-avon-lake-and-brook-park-plants-could-boost-greater-cleveland-economy.html

 

Could someone tell me what is trying to be said in these two paragraphs?  Is the first paragraph talking about additional jobs that would be created directly related to auto manufacturing and the second group of jobs is related to retail, government jobs, and so forth by people spending their paycheck and paying their taxes? 

 

 

For every 100 jobs created in light-truck and utility vehicle manufacturing, 925 additional jobs could be created, Duritsky said. The economic activity generated from the investment and creation of these jobs could bring in an additional $7.8 million annually in state and local taxes.

 

For every 100 jobs created in auto manufacturing, an additional 73 jobs could be created, generating an additional $506,000 in state and local taxes, he said.

 

No, something is wrong with those numbers. Manufacturing DOES have a high multiplier effect compared to many other industries. For example for durable manufacturing for every 100 jobs created in that field, 289.1 supplier jobs are created and 454.9 induced jobs (dry cleaners, restaurants, etc.) for a total of 744.1 total indirect jobs. Retail trade brings in 122 jobs per 100. That 744 is an average for durable manufacturing. Its not logical that SUV production brings in 925 jobs per 100, but autos bring in only 73--lower than retail jobs. The SUV number may be accurate, but the auto number certainly isn't.

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Buffalonians putting a huge jolt into the Cleveland economy tonight. Downtown is absolutely full of them!

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And they reckon that the last thing she saw in her life was
Sting, singing on the roof of the Barbican

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11 minutes ago, roman totale XVII said:

Buffalonians putting a huge jolt into the Cleveland economy tonight. Downtown is absolutely full of them!

i think this happens with any football game or 2 or more series with the Indians. 

 

I commented in the browns thread that during the Jets game, I felt like Cleveland has overtaken, Manhattan.

 

I wish we still had an NHL hockey franchise, an WNBA and a MLS franchise to capitalize on tourist.

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It depends on the team.  Nearby teams like Buffalo, Pittsburgh, or Detroit always bring big weekends when they are visiting the Browns or Indians, or to a lesser extent the Cavs.  Otherwise it depends- Boston, NY, Chicago, Toronto- those city's sports fans always travel well.  I remember Raider's fans, surprisingly, being the same, but most west coast teams won't bring many fans with them all the way to Cleveland.  Some- not many.

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On 11/9/2019 at 10:38 PM, X said:

It depends on the team.  Nearby teams like Buffalo, Pittsburgh, or Detroit always bring big weekends when they are visiting the Browns or Indians, or to a lesser extent the Cavs.  Otherwise it depends- Boston, NY, Chicago, Toronto- those city's sports fans always travel well.  I remember Raider's fans, surprisingly, being the same, but most west coast teams won't bring many fans with them all the way to Cleveland.  Some- not many.

 

If you talk to Yankees fans, many travel to Cleveland to see their team because even with a flight and hotel, it's still cheaper than attending a game in the Bronx!   😃

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5 minutes ago, Cleburger said:

 

If you talk to Yankees fans, many travel to Cleveland to see their team because even with a flight and hotel, it's still cheaper than attending a game in the Bronx!   😃

 

There's a group of 54 of us (you heard that right lol) going to the game in Arizona... I booked airfare, ticket, a tailgate w/ food and booze, and hotel for a grand total of $480 for the weekend. 

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3 minutes ago, YABO713 said:

 

There's a group of 54 of us (you heard that right lol) going to the game in Arizona... I booked airfare, ticket, a tailgate w/ food and booze, and hotel for a grand total of $480 for the weekend. 

That is amazing.

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On 11/9/2019 at 8:44 PM, roman totale XVII said:

Buffalonians putting a huge jolt into the Cleveland economy tonight. Downtown is absolutely full of them!

I wish Buffalo was in the AFC North instead of Baltimore.  They would be a better geographical rival for the Browns, and probably for the Steelers as well.

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3 hours ago, skiwest said:

I wish Buffalo was in the AFC North instead of Baltimore.  They would be a better geographical rival for the Browns, and probably for the Steelers as well.

 

Yeah but we would lose the historical rivalry since that is our team... 

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3 hours ago, skiwest said:

I wish Buffalo was in the AFC North instead of Baltimore.  They would be a better geographical rival for the Browns, and probably for the Steelers as well.

 

The Steelers-Ravens rivalry is huge. I don't think Buffalo would be a more attractive match-up for them

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Another company, Chinese injection press manufacturer Tederic Machinery Co. Ltd., is placing its US headquarters in Cleveland.

 

Tederic Machinery establishing US headquarters near Cleveland

 

"...This fall, the company hired machinery veteran Tony Firth as vice president of sales and marketing for Tederic North America Inc. One of his first tasks: Find a suitable building in the 20,000- to 30,000-square-foot range in a good central location in the Midwest, the main U.S. region for injection press sales...."

 

https://www.plasticsnews.com/news/tederic-machinery-establishing-us-headquarters-near-cleveland

Edited by Pugu
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19 minutes ago, musky said:

I wonder where "near Cleveland" is

article says they are looking at Twinsburg and Cleveland.  I assume they want NE Ohio but narrowing their sites. This is good news for the region.

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The article says "near Twinsburg and Cleveland." So the bigger question is, what does near-Twinsburg mean? 🙂

 

BTW, that square footage could mean up to 200 office employees. And it would also fill a couple of floors in a downtown office tower. 😎

 

Although, by its description, it sounds more like a warehouse/showroom with some offices.

Edited by KJP
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"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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Another article, this time from across the pond:

 

London Stock Exchange opens North-American headquarters in Cleveland, Ohio

By Dilara Kucuk - 05/11/2019

 

London Stock Exchange Group announced that it will open its North American headquarters for the Elite initiative in Cleveland, Ohio.

 

London Stock Exchange Group will start operating its Cleveland headquarters by the start of next year. 

 

Cleveland is one of the investment hubs of the United States. It is home to important cultural, educational and financial institutions.  

 

Elite initiative will hire an additional 40 employees with an annual payroll of $5 million.


https://ukinvestormagazine.co.uk/london-stock-exchange-opens-north-american-headquarters-in-cleveland-ohio/

 

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^This was a good sentence:  "Elite initiative will build a global connection between Cleveland and the rest of the world by facilitating Cleveland’s access to capital."

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Columbus Dispatch says Cleveland has the lowest unemployment rate among Ohio cities for October.  But, without reporting the actual numbers, they credit it to a drop in the employment pool.  This seems like a number waiting for revision.

 

https://www.dispatch.com/business/20191119/cleveland-has-lowest-unemployment-rate-among-states-metros-in-october

 

After further digging, I guess the numbers are from the BLS monthly. The drop of 35,000 in the workforce seems high compared to prior years.

 

Date/WorkForce/Employed/Unemployed/Rate

2019Jul 1069025 1014318 54707 5.1

2019Aug 1048726 1005740 42986 4.1

2019Sep 1042674 1000481 42193 4.0

2019Oct 1034543(P) 1001023(P) 33520(P) 3.2(P)

 

(P) for preliminary.

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12 minutes ago, Dougal said:

Columbus Dispatch says Cleveland has the lowest unemployment rate among Ohio cities for October.  But, without reporting the actual numbers, they credit it to a drop in the employment pool.  This seems like a number waiting for revision.

 

https://www.dispatch.com/business/20191119/cleveland-has-lowest-unemployment-rate-among-states-metros-in-october

 

Just looked at the bls numbers. 3.2% unemployment is pretty incredible. The labor force did drop by 700 people. But employment was up 13k YoY which is only a little bit higher to what it’s been doing recently (around 10-11k YOY). So to say the shrinking labor force is the main reason is misleading. Hopefully the labor force will start growing but at least employment is thriving.

Edited by cle_guy90

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Yes, but why is the labor force dropping, even if its only down 700 YOY? Is there a net loss of people entering/leaving the metro area? Is there a net loss of people in the workforce (ie: retiring boomers)?

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"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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^ I think it's the workforce number that will be revised.

 

@cle_guy90 Sorry for tripping you up by my edit (not noted by the software) while you were posting. 

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A quick take looking at the numbers as they show the overall economy grew by only 0.9% for the month of October...

 

1) Our Manufacturing sector looks to be in recession, showing six months of negative growth.  This will impact our employment numbers at one point or another unless other sectors take up the slack.  Speaking of which...

 

2) Our Education and Health sector is employing close to 100,000 more people than our manufacturing sector.  I know we love to push the "Blue-Collar-Work-Ethic"... but when does the word get out about this officially being an Eds and Meds town?

 

3) The Information sector has been in decline since 2002 and shows no signs of slowing.  The sector now only employs roughly 13,000, down from 20,000 in 2002.  This is another drag on the local economy which is being overlooked.

 

4) Our Professional and Business Services sector now employs close to 50,000 more than our Manufacturing sector, and has grown by 30,000 jobs since the 2002 recession.

 

5) There are roughly 4,000 less people employed in our Trade, Transportation, and Utilities sector than at this point just last year, though the numbers look to be a bit more volatile than other sectors.  

 

Pluses and minuses, but overall growth (to be taken with a grain of salt with the BLS...  I'll never get over the revision they did when we were showing 2% growth overall for the year which was revised to 0.9%).

Edited by Oldmanladyluck
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I think that part of the problem is that people on the coasts who might relocate to take some of these jobs see how much less these jobs are paying. Of course, that's the point of why the jobs are here. It is to save labor costs. Those able to relocate may not be willing to relocate when they see how much less the jobs are may not be aware that the cost of living is here is roughly half of what it is on the coasts. If they  were aware, how many would relocate to Cleveland or other non-coastal cities? BTW, Kevin Barry is one of the few broadcast journalists that I like in Cleveland. Usually picks interesting subjects he does a good job with conveying information and context...

 

'We haven't been at the table': Cleveland companies struggle to find talent that reflects the communities

https://www.news5cleveland.com/a-better-land/we-havent-been-at-the-table-cleveland-companies-struggle-to-find-talent-that-reflect-the-communities

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"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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Interesting. I saw way upthread on the first page i think that CC had bought a coal supplier called Alpha Natural Resources for $9 billion in 2008 out of Virginia.  That couldn’t have been a very good deal unless they were a mining technology company or had high grade mines.

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11 minutes ago, audidave said:

Interesting. I saw way upthread on the first page i think that CC had bought a coal supplier called Alpha Natural Resources for $9 billion in 2008 out of Virginia.  That couldn’t have been a very good deal unless they were a mining technology company or had high grade mines.

 

I believe that acquisition fell through - thank God.

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^ A  couple of interesting comments in the above cited Cincy report:

 

AK is expected to retain a "significant presence" in West Chester, their current headquarters.  I take that to mean it will be the operational HQ for steel production. Things like legal, finance, and other common management elements will probably move to Cleveland, producing a little bump up at Cliff's downtown Cleveland offices.

 

A sad comment: "The announcement follows an ongoing trend of local public companies disappearing."  Sounds like the Cincy biz journal is getting as pessimistic as some Cleveland folks.

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Cleveland Cliffs, in terms of revenue, is a third the size of AK Steel. This is a small fish with giant profits taking over a big fish with small profit margin. This will catapult Cleveland Cliffs well into Fortune 500 list. 

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2 hours ago, Dougal said:

^ A  couple of interesting comments in the above cited Cincy report:

 

AK is expected to retain a "significant presence" in West Chester, their current headquarters.  I take that to mean it will be the operational HQ for steel production. Things like legal, finance, and other common management elements will probably move to Cleveland, producing a little bump up at Cliff's downtown Cleveland offices.

 

A sad comment: "The announcement follows an ongoing trend of local public companies disappearing."  Sounds like the Cincy biz journal is getting as pessimistic as some Cleveland folks.

 

Often times, "significant presence" is far less than the "existing presence." I expect more than a little bump at Cliff's Cleveland offices. AK has about 2,400 employees in Butler County (https://www.bizjournals.com/cincinnati/subscriber-only/2018/02/09/largest-butler-county-employers.html). The company reports that it has about 1,730 hourly workers at its Middletown plant (https://ir.aksteel.com/news-releases/news-release-details/iam-members-ratify-labor-agreement-ak-steel-middletown-works).

 

Does that mean it has 700 employees at its West Chester HQ?

 

Perhaps not. I've seen mentions that AK has 9,500 employees companywide. But the second link above says AK has 9,200 manufacturing employees. So perhaps it has only 300 HQ workers?

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"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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^ ^^ Yep. In corporate-speak “retain a significant presence” usually means “We’re gonna downsize, but not all at once.” 

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And they reckon that the last thing she saw in her life was
Sting, singing on the roof of the Barbican

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3 hours ago, Dougal said:

Cleveland Cliffs to acquire AK Steel for $3 billion. 

 

https://www.bizjournals.com/cincinnati/news/2019/12/03/ak-steel-to-be-acquired.html?ana=yahoo&yptr=yahoo

 

Congrats to Cleveland financial reporting for missing another big one.

 

Correction:  Other sources say $1.1 billion in CLF stock is the price.

 

It really is pathetic that a Fortune 500 company has been bought by a Cleveland company and there still is nothing from either Cleveland.com or Crains. 

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26 minutes ago, cle_guy90 said:

 

It really is pathetic that a Fortune 500 company has been bought by a Cleveland company and there still is nothing from either Cleveland.com or Crains. 

 

Even our good friends from Pittsburgh are on it:

 

https://www.post-gazette.com/business/powersource/2019/12/03/AK-Steel-owner-of-Butler-Works-will-be-acquired-by-iron-maker-Cleveland-Cliffs/stories/201912030104

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1 hour ago, KJP said:

 

Often times, "significant presence" is far less than the "existing presence." I expect more than a little bump at Cliff's Cleveland offices.

 

The joint presser cites $120 million in annual savings from elimination of common staff functions. That says to me that the growth in Cleveland will be meaningful but not huge.

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These raw material companies don't have massive HQ staff so even if they combine the two, it wouldn't be a massive change. Hopefully the HQ stays in Cleveland of course.

Edited by Mendo

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17 minutes ago, Dougal said:

 

The joint presser cites $120 million in annual savings from elimination of common staff functions. That says to me that the growth in Cleveland will be meaningful but not huge.

 

That's only a small part of the source of the savings, as noted in the presser.

 

2 minutes ago, Mendo said:

Hopefully the HQ stays in Cleveland.

 

Yes, it is.

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"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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Just now, smith said:

My CLF stock certainly ain't growing today......

 

No but AK Steel's certainly is. And it may be a good time to buy some CLF.


"Those who can make you believe absurdities, can make you commit atrocities."-Voltaire

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