Valley shakes off Rust Belt
By AMANDA SMITH-TEUTSCH and CHRISTOPHER KROMER Tribune ChronicleArticle Photos
An organized effort is under way to harness the collective strength of the Northeastern Ohio region and dispel the Rust-Belt images that persist in the national and international perception.
''The emerging industries we're seeing include clusters of medical imaging companies, advanced energy technologies, work in polymers and advanced materials,'' said Carin L. Rockind, Team NEO vice president of marketing and attraction. She points to recent studies that showed a dramatic decrease in vacant industrial land as proof of growth.
Team NEO, a cooperative arrangement between economic development agencies in 16 counties stretching from Cleveland to the Ohio River, has launched "Cleveland+," a marketing campaign to lure companies into the region.
The counties participating combine for 2 million workers and 6,000 square miles of land, she said.
"It's called Cleveland-Plus because the 'Plus' invites the question, 'Plus what? Tell me more,' '' Rockind said.
Working as the creation of chambers of commerce throughout Northeast Ohio, Team NEO takes a regional approach to solving economic problems in the area.
''Even if a business locates to some other (Northeast Ohio) area, we all benefit," said Walt Good of the Youngstown Warren Regional Chamber of Commerce.
Information on the area is assembled and disseminated to site selection agents, who work with companies seeking to relocate or expand their businesses. It's available online at the organization's Web site, www.clevelandplusbusiness.com, and also through printed materials. When site selections express interest, the lead is shared with everyone in the program, who can then prepare proposals on incentives, tax breaks, facilities and other features to try to convince the company to relocate within the region.
Already, said Good, the Mahoning Valley has received at least 20 leads from the efforts, and hopes to announce a successful effort soon, he said. Regionally, 10 deals were closed in 2007, resulting in 1,500 new jobs and an economic impact of $150 million, said Rockind.
These deals include Clovervale Farms, which added 200 jobs to a facility in Amherst to produce Pierre's Ice Cream Sandwiches in Ohio instead of in South Carolina or Oklahoma.
Other companies include: The Health and Safety Institute, which relocated to Warrensville Heights, relocating from Tampa, Fla., and adding 25 high-paying jobs; TeleTech, a global business process outsourcing company that located in Amherst, adding 800 jobs; GCA Services, which relocated its headquarters from Philadelphia to Cleveland; among others.
Rockind identified two primary strengths offered by the area. First, the area's geographic location offers access to many markets. Second, the region offers a low cost of living, which works in tandem with a lower than average cost of labor, she said.
Team NEO Chief Executive Officer Thomas A. Waltermire gave the Youngstown-Warren area high marks for programs like Steel to Scholars and for consistently high ratings for local school systems. More specifically, the Youngstown Business Incubator could serve as a role model for the success of innovative businesses, said Waltermire.
Alternatively, the Mahoning Valley may have become a victim of its own success. As the Youngstown-Warren region thrived a century ago, area residents focused on doing more of the same rather than innovating and seeking entrepreneurial solutions to new developments, Waltermire added.
That means the area must now play catch-up for new technologies and industries, Rockind said. Using information compiled by Moody's Economy.com, the organization projects large increases, in both employment numbers and average salaries, for people in math- and computer-related fields, health care, sciences and education and training. Over the next decade, the information industry is expected to grow by 34 percent in the region; the finance and insurance industry is expected to increase by 17 percent.
"These are all fields where math and sciences are key," she said. The Northeastern Ohio region must adapt to the future educational needs for this new workforce, she said.
A great key to innovation in the Mahoning Valley, Rockind said, is the Youngstown Business Incubator.
''There has been great success coming out of the Incubator,'' she said. ''We use the Youngstown facility as a model for how to operate all the other Incubators in the region.''
