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KJP:  "another Fortune 500 company will establish its corporate headquarters in downtown Cleveland."

 

I thought Cliffs is acquiring AK Steel. So Cleveland Cliffs may get more people, revenue, office space needs, etc. through the acquisition, but no new company is moving its HQ to Cleveland in this deal as AK will cease to exist, no?  Am I missing something here?

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33 minutes ago, Pugu said:

KJP:  "another Fortune 500 company will establish its corporate headquarters in downtown Cleveland."

 

I thought Cliffs is acquiring AK Steel. So Cleveland Cliffs may get more people, revenue, office space needs, etc. through the acquisition, but no new company is moving its HQ to Cleveland in this deal as AK will cease to exist, no?  Am I missing something here?

 

That's correct. 

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Just now, Pugu said:

^So what's the new Fortune 500 company moving its corporate HQ to Cleveland?

Cleveland Cliffs will become a fortune 500 company after the merger. 

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9 minutes ago, Pugu said:

^So what's the new Fortune 500 company moving its corporate HQ to Cleveland?

 

Why do you keep saying "moving?" No one said a Fortune 500 company HQ is moving to Cleveland.

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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^Okay....but you said, ""another Fortune 500 company will establish its corporate headquarters in downtown Cleveland."

 

Are you referring to Cliffs?  If so, I get it now--they were a Fortune 1000, but now will be a Fortune 500. But its confusing as Cliffs has already "establish[ed] its corporate headquarters in downtown Cleveland"  -  the real change is they are joining the 500 list.

 

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So an already fortune 500 company (Cleveland Cliffs) is acquiring AK Steel, which will grow them in size with the merger, but they (Cleveland Cliffs) will still remain and existing fortune 500?

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Cliffs isn't a Fortune 500 company. It was, and it will be again after it absorbs AK. And it will add jobs here in Cleveland. Clear?

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28 minutes ago, KJP said:

Cliffs isn't a Fortune 500 company. It was, and it will be again after it absorbs AK. And it will add jobs here in Cleveland. Clear?

Gotcha, thanks for clarifying, I read it wrong.  My bad, all the "combined" lingo at the start of the article threw me off for a second. 😉  Didn't mean to poke the UO Cleveland Bear 🙌

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1 minute ago, Gnoraa said:

Gotcha, thanks for clarifying, I read it wrong.  My bad, all the "combined" lingo at the start of the article threw me off for a second. 😉  Didn't mean to poke the UO Cleveland Bear 🙌

 

I'm no bear. I'm just a mutt.

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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2 hours ago, KJP said:

 

Why do you keep saying "moving?" No one said a Fortune 500 company HQ is moving to Cleveland.

 

Fortune 500 company HQ is coming to downtown Cleveland

 

"Coming to" suggests movement. Cliffs is already here. I still think your headline is misleading. Your work on top notch on-target and so I would hate to see any credibility taken away from you for a 'Grab your attention' - type title. The only thing coming/moving is Cliffs' place on the Fortune 500 list.

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21 hours ago, Pugu said:

 

Fortune 500 company HQ is coming to downtown Cleveland

 

"Coming to" suggests movement. Cliffs is already here. I still think your headline is misleading. Your work on top notch on-target and so I would hate to see any credibility taken away from you for a 'Grab your attention' - type title. The only thing coming/moving is Cliffs' place on the Fortune 500 list.

 

As I would say to my six-year-old son "OK, Mister Literal..."

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Speaking of new F500 companies, Cleveland's Transdigm, which will probably rank somewhere just north of 500 when the 2019 list comes out, has been quiet lately. Meanwhile mostly-aerospace manufacturer Moog (sales about $3 billion a year, based near Buffalo) is having margin contraction problems and is selling at a P/E ratio in the mid-teens.

 

Moog's Class A stock has jumped about $4 yesterday and this morning (almost 5%). I wonder if another merger is in the offing. (Fair disclosure: I'm long MOG shares and short puts.)

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Speaking of Cleveland companies---I just met someone last week from a giant, impressive firm I never heard of:  Sotera Health---apparently its the parent of three other companies and is based in Cleveland (in Broadview Hts.) This is ONE of the three sub-companies:  Nelson Labs: "We are over 850 scientists, technicians and service specialists diligently performing more than 700 rigorous microbiological and analytical tests in 13 global laboratory locations."    Would love to see Soltera in a proper Downtown office space. A global company like that needs a more prestigious address than Broadview Hts!

 

https://soterahealth.com/

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On 12/5/2019 at 12:01 PM, Pugu said:

Speaking of Cleveland companies---I just met someone last week from a giant, impressive firm I never heard of:  Sotera Health---apparently its the parent of three other companies and is based in Cleveland (in Broadview Hts.) This is ONE of the three sub-companies:  Nelson Labs: "We are over 850 scientists, technicians and service specialists diligently performing more than 700 rigorous microbiological and analytical tests in 13 global laboratory locations."    Would love to see Soltera in a proper Downtown office space. A global company like that needs a more prestigious address than Broadview Hts!

 

https://soterahealth.com/

 

Interesting, but playing Devils Advocate, why do you feel they need a "Downtown" address?  Why not UC or Fairfax vs. Downtown?  What would be the advantage of a new location?  What would it cost to the company (real estate, culture, employee compensation.  Will they attracted enough white color and not skilled workers going forward?  Is this a company that wants to be part of an urbane community and partner with the businesses in the community to improve it?  What is the bottom line cost for a move and what research supports it?  This is all hypothetical, but many of the question I asked are realistic.

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^I was talking from a prestige address. But beyond that--in terms of something more tangible---they may be able to attract more talent if they were downtown vs. broadview hts. If I were in that field and were offered two jobs---one downtown and one in the southern burbs, if all other things were relatively equal (pay, benefits, good boss, good co-workers, interesting work, etc.), I'd take the one downtown in a second. Of course, land is far cheaper out there and they probably own their own bldg with parking in front, etc. I get it. I was referring to their image and "importance" factor.  And being medical, University circle would work too. Fairfax, less so. Also, if they were in UC and surrounded by like companies, there may be some synergies as well. They probably don't get much interaction with others out in Broadview Hts.

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This article describes how Amazon is still going to expand in NYC despite deciding to pull their HQ2 from Queens. Basically describes how the city is getting the jobs without the $3 Billion in incentives the local and state governments were offering. Something to think about even though some cities have the luxury of being able to say no to massive subsidies and still get development while others that are more desperate for economic development cannot.

 

https://www.google.com/amp/s/www.commondreams.org/news/2019/12/07/we-were-proven-right-says-aoc-after-amazon-expands-new-york-without-taking-billions%3famp

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Cleveland city officials said they were offering to SHW only their standard package of business incentives -- nothing out of the ordinary.

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That doesn't include additional incentives from the county and state. 

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21 hours ago, KJP said:

Cleveland city officials said they were offering to SHW only their standard package of business incentives -- nothing out of the ordinary.

Although, their usual incentives are rather generous to begin with. Typically, non school 30 year TIF along with some other grants and possibly partial income tax rebates for new jobs.

 

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On 12/8/2019 at 9:26 AM, Mov2Ohio said:

This article describes how Amazon is still going to expand in NYC despite deciding to pull their HQ2 from Queens. Basically describes how the city is getting the jobs without the $3 Billion in incentives the local and state governments were offering. Something to think about even though some cities have the luxury of being able to say no to massive subsidies and still get development while others that are more desperate for economic development cannot.

 

https://www.google.com/amp/s/www.commondreams.org/news/2019/12/07/we-were-proven-right-says-aoc-after-amazon-expands-new-york-without-taking-billions%3famp

 

They are leasing space in Hudson Yards which received $1.3 billion from the state by having it "gerrymandered" into the same "economically troubled area" as Harlem. So no this wasn't a direct subsidy/tax break to Amazon, but they're locating in a very high income development that was build using money that was intended for Harlem and are getting a fraction of the jobs. 

 

https://twitter.com/kristoncapps/status/1116694196436574209?s=19

 

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1 hour ago, PittsburgoDelendaEst said:

 

They are leasing space in Hudson Yards which received $1.3 billion from the state by having it "gerrymandered" into the same "economically troubled area" as Harlem. So no this wasn't a direct subsidy/tax break to Amazon, but they're locating in a very high income development that was build using money that was intended for Harlem and are getting a fraction of the jobs. 

 

https://twitter.com/kristoncapps/status/1116694196436574209?s=19

 

Well a fraction of the projected 25,000 jobs, but who knows if those would've ever materialized. With the HQ2 their first year employment projections were 700 employees. I believe they're getting 1,500 with the development mentioned in the article.

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Crain's reports Nov auto sales down slightly year over year But ... For the two best sellers, Ford sales were down 15.9% and Chevy sales down 18.5%, while Audi, BMW, Cadillac, Jaguar, Lexus, Lincoln, Mercedes-Benz and Porsche sales were all up. Interesting dichotomy, perhaps reflecting the area's demographic churn.

 

https://www.crainscleveland.com/retail/november-new-vehicle-sales-northern-ohio-skidded-more-10

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1 hour ago, Dougal said:

Crain's reports Nov auto sales down slightly year over year But ... For the two best sellers, Ford sales were down 15.9% and Chevy sales down 18.5%, while Audi, BMW, Cadillac, Jaguar, Lexus, Lincoln, Mercedes-Benz and Porsche sales were all up. Interesting dichotomy, perhaps reflecting the area's demographic churn.

 

https://www.crainscleveland.com/retail/november-new-vehicle-sales-northern-ohio-skidded-more-10

 

Tesla doesn't break down their sales into months but instead by quarter. Would be interesting to know what effect electric vehicle adoption plays on these sales numbers in the next 2-3 years. Ohio EV sales are increasing 100%+ per year but from a low base.

 

Ohio  2,091 (2017) 4,456 (2018) 113.10% YOY%+ 0.37% (2017 % Total auto sales) 0.74% (2018 % Total auto sales)

See: https://evadoption.com/ev-market-share/ev-market-share-state/

 

Side note: The doctor's parking garage (Cornell #34) for UH in University Circle is now probably 5-8% Tesla for 1000 parking spaces. I made the switch to Tesla Model 3 in June and will never go back to fossil fuel transportation. With GM/LG Lordstown battery factory, Avon Lake Ford plans, and potential Rivian involvement in Brookpark/Walton Hills, will be interesting to see if our region develops a "build here " loyalty to the new models. Tesla Model 3 is about as "Made in America" for total chain of production as you can get in 2019.

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12 minutes ago, trej34 said:

 

I made the switch to Tesla Model 3 in June and will never go back to fossil fuel transportation. 

 

Assuming you live in Ohio, I have bad news about the energy source for your Tesla.

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53 minutes ago, StapHanger said:

 

Assuming you live in Ohio, I have bad news about the energy source for your Tesla.

 

what's the bad news?

 

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1 hour ago, trej34 said:

 

Tesla doesn't break down their sales into months but instead by quarter. Would be interesting to know what effect electric vehicle adoption plays on these sales numbers in the next 2-3 years. Ohio EV sales are increasing 100%+ per year but from a low base.

 

Does Tesla sell through dealerships like the other car makers? If so the reporting wouldn't matter as its coming from dealerships not the manufacturers themselves (unless tesla doesn't allow its dealers to divulge sales data).

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47 minutes ago, Pugu said:

 

what's the bad news?

 

A large percentage (majority?) of electricity in Ohio comes from coal still. Although you can certainly have your own solar at home, or sign up for one of the renewable only electric programs through Nopec to make your electric car more green. Though that would still require you to charge at home only. 

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8 hours ago, Cleburger said:

Right. Over 80% from fossil fuels.  And because of all the coal, unless you have home solar, I doubt there’s any real environmental benefit to driving an electric car in Ohio. Ohio’s environmental and energy policies are jokes. 

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1 hour ago, Dougal said:

Ford puts $1.5 billion and 3,000 jobs into two Detroit area plants for pickup trucks.  Is this what the Walton Hills and Brookpark Engine No. Two rumors turned into?

 

https://www.freep.com/story/money/cars/ford/2019/12/17/ford-michigan-assembly-dearborn-truck-plant/2675193001/

 

No. One plant is still going through the Ohio EPA's voluntary action program and the other has yet to start.


"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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