Don't believe I saw this posted anywhere from last week:

 

December 08, 2019 04:00 AM

ELITE could be quality addition to Northeast Ohio's international investment efforts

KIM PALMER 

 

The announcement that United Kingdom-based ELITE, a business development firm that combines education, mentoring and access to funding to help midmarket companies generate growth, will put its new Americas headquarters in downtown Cleveland positions the city to serve as an access point for international investment.

 

"Cleveland gives us a fantastic footprint to other cities," said Thomas Tyler, ELITE's director and global head of business development, and soon-to-be head of its Cleveland office.

 

There has been no final decision yet on the exact location for the Cleveland headquarters. ELITE has announced that an estimated 40 employees will work out of the office, generating $5 million in payroll annually. The company also said its annual international conference, called Global ELITE Day, will take place in Cleveland in 2020, the first time the event will be held outside Europe.

 

https://www.crainscleveland.com/government/elite-could-be-quality-addition-northeast-ohios-international-investment-efforts

Edited December 19, 20195 yr by MuRrAy HiLL

Another nice development for a Cleveland area company:  https://www.crainscleveland.com/manufacturing/polyone-corp-agrees-buy-clariants-color-and-additive-masterbatch-business-145-billion

 

PolyOne is currently 681 in the Fortune listings, so I wonder if this could be enough to push it into the top 500.

2 hours ago, gg707 said:

Another nice development for a Cleveland area company:  https://www.crainscleveland.com/manufacturing/polyone-corp-agrees-buy-clariants-color-and-additive-masterbatch-business-145-billion

 

PolyOne is currently 681 in the Fortune listings, so I wonder if this could be enough to push it into the top 500.

 

Doubtful. They sold in October another division with sales of about $700 million; so their net gain in sales from the sale and purchase will be about $450 million. Might get them up to the high 600s in the Fortune listing.  The higher a company gets, the slower the climb.

Fund that Flip will add 120 people to the 30-person Cleveland office in downtown. Speaking as a customer,  I have found their growth has been such that it's hard to make a new investment; their offerings are taken up fully before most folks even have a chance to subscribe.  Nice problem to have.

 

https://www.crainscleveland.com/government/fund-flip-adds-cleveland-office

Edited December 20, 20195 yr by Dougal

Heard today that the attorneys Gallagher Sharp, who have been in the Bulkley Building in Playhouse Square since it was built in 1921 are moving to one of the office buildings at the E12-Superior intersection. 

I don’t know why, or what this is indicative of. If anything. 

Latest (preliminary) jobs data is in for Greater Cleveland: a continued slow uptick (+1.3%) overall with some robust increases continuing in business/professional services (+5.7%) and in education/health services (+2.6%), leisure/hospital (+2.3% -- the first strong growth in that sector this year), and "other" services (+2.3%), while manufacturing actually ticked up a bit (+1.4%) for a change this year. On the downside, construction/etc went down 1.7% after a scorching year. Perhaps it is because it was compared to a hot 2018. Even so, November 2019's construction employment was still better than any month in any year preceding 2018.

 

Here's a compelling stat: Consider that November 2019's preliminary non-farm employment of 1,089,800 is higher than at any time of the year in any year before 2019, including their peak jobs months (June/July/Aug). In fact, November 2019 was nearly 10,000 jobs higher than 2018's peak employment month (June) which had 1,080,400 jobs. Hopefully this preliminary data holds up!

 

https://www.bls.gov/eag/eag.oh_cleveland_msa.htm

On 12/17/2019 at 12:09 PM, Dougal said:

Travel Centers of America, hqs in Westlake, stock up 50% in the last two days. That's a much bigger bounce than is usual just for naming a new CEO.

 

Explanation: New CEO is nice, but the govt retroactively generated a $72 million biodiesel-related credit for TCA, with more credits in future years. The stock has gone from 9 to 18.40 in the past week. Pop the champagne in Westlake.

Edited December 23, 20195 yr by Dougal
Edited to show even higher price today

Time for those year-end, decade-end stories. Here's mine......

 

 

MONDAY, DECEMBER 23, 2019

Cleveland ended the decade with a boom, and it's showing

 

When John Knopfler and his spouse moved into their Tremont house where a large family had just moved out, each did what many are doing in Cleveland these days. They're participating in the city's Fifth Migration, bringing with it socio-economic changes unlike any experienced from the previous four migrations in the past 223 years.

As empty-nesters who grew up in rural Northeast Ohio, they brought decent incomes from their professions in insurance and law. The couple bought a single-family home previously occupied by a six-person family who were lower income. They reduced the population of that home but increased its income.

 

MORE

https://neo-trans.blogspot.com/2019/12/cleveland-got-lot-wealthier-in-just-3.html

Edited December 23, 20195 yr by KJP

Wealth creates jobs. It takes more jobs to support a middle-class resident than it does a lower-income resident.

 

Wealth creates stability for immigrants who create more jobs than established residents. 

 

And the article specifically noted that there are 25,000 more jobs in Greater Cleveland vs. three years ago.

 

Thanks for the feedback. 

13 hours ago, Terdolph said:

It's an interesting and informative article.  But, it seems to avoid focusing on the one thing that makes all of this possible: jobs, jobs and jobs.

 

Unless all the population gain is retirees and pensioners?

 

There are also people like me, and my neighbor, who work for out of town companies and clients from home or while traveling.   I imagine this type of data isn't reported?  

6 hours ago, Cleburger said:

 

There are also people like me, and my neighbor, who work for out of town companies and clients from home or while traveling.   I imagine this type of data isn't reported?  

 

In what city do you pay your income taxes?

Would an article about the expansion of office leases suffice? That's one of my upcoming articles. I have some jobs data to go with a few of leasing tidbits, but the leases themselves are highly indicative of added jobs.

19 minutes ago, Terdolph said:

Anything about jobs is welcome, and yes expansion of office jobs is indicative of more jobs.

 

So is the addition of more wealth to Cleveland, as indicated by the jump in individual income tax receipts, including after the tax was raised. 

4 hours ago, KJP said:

 

In what city do you pay your income taxes?

Cleveland OH USA.

 

But I'm not sure all self-employed people with no W2 income would choose to do so.  

 

Also--the data gathered in jobs reports-- is it generated from CCA information?  

4 minutes ago, Cleburger said:

Also--the data gathered in jobs reports-- is it generated from CCA information?  

 

I doubt it, but I'm not sure. 

Without question.  Can’t leave off the Med Capital ?
 

https://www.worth.com/the-11-most-important-tech-cities-in-the-u-s/?fbclid=IwAR033gEQBEJI30wrKpzjzCdwoa-AXchjlWh441Zg_1S2nZV1ddoEOS5dhok

^Ha--a list of 11---not 10---cities and Cleveland is #11.  Looks like Cleveland was an afterthought---hope the rest of the country doesn't read it that way.

We're so awesome that they passed up the nice round number 10 so we could be on the list!

I just returned from a five day trip in Nashville, and boy do I have some crane envy now... hoping to see more over Cleveland in the next couple years! 

E 61 between Euclid and Chester. Good for Hough/Midtown!

 

from Crain's:

 

Food manufacturer plans move to a Cleveland headquarters

 

"Consumer foods product maker Eagle Family Foods Group LLC is preparing to land in the Phoenix Building, a 1918-vintage building at 1975 E. 61st St. in Cleveland that Hemingway Development has updated inside to serve as a contemporary corporate headquarters..... It's currently in The ArcelorMittal USA Building, 4020 Kinross Lakes Parkway in Richfield Village.

 

....The company produces and sells well-known brands ranging from Eagle Brand Sweetened Condensed Milk, used in everything from cheesecakes to frosting, and PET milk, the original evaporated milk, to Skinny Sticks, a vegetable-based snack, and G.H. Cretors Popcorn....."

 

https://www.crainscleveland.com/real-estate/food-manufacturer-plans-move-cleveland-headquarters

 

 

Big time acquisition for a growing Cleveland company!
 

https://www.businesswire.com/news/home/20200106005302/en/Dealer-Tire-Announces-Acquisition-Dent-Wizard

Glad to see Cleveland companies doing the acquisitions. So there's Dealer Tire-Dent Wizard, and Cliffs acquires AK Steel. I seem to remember that other firms were acquired in the last year or two by Cleveland firms (in addition to TransDigm's weekly acquisitions!)?

From the press release: "Dent Wizard will continue to operate independently under the leadership of its existing management team headed by CEO Mike Black."

 

M&A announcements always say this kind of thing--regulatory approval and public opinion is harder to get if you say you're pulling 1,000 jobs out a given city. But in reality, do you think any jobs--or the full Dent HQ--will move to Cleveland in future years?

^I don’t see much cost savings. If anything it gets Dent Wizard into more dealerships.  They are both post-sales process, dealership focused companies. However one is a supplier of tires and wheels and the other is very service-based.  It might help with reducing health insurance by adding so many new employees. I can’t fathom moving much(perhaps some training?), if any, operations or functions to Cleveland. 

 

This seems purely like investment firms organizing their portfolios. 

 

If they get the glass doctor too. Then maybe we’re talking...

Edited January 6, 20205 yr by audidave

^The cost savings comes in back office operations that both companies have regardless of the type of business, such as payroll, HR, IT, etc.

^i get that. The problem is it is totally different IT systems. One is focused on Inventory supply and wholesale purchasing the other is focused on handling not just dealer but consumer-focused service calls.  As such, the payroll systems will likely be totally different as more salary positions with DealerTire and likely hourly positions with dent wizard.  Maybe they can save some money on payroll processing with moving it to Cleveland. 

 The savings come in combining like systems.   I don’t see how they could mesh the 2 very different systems or why they would try.  I’m sure they will analyze and look for cost savings and they will probably find some small savings with purchasing and payroll. 

1 hour ago, audidave said:

^i get that. The problem is it is totally different IT systems. One is focused on Inventory supply and wholesale purchasing the other is focused on handling not just dealer but consumer-focused service calls.  As such, the payroll systems will likely be totally different as more salary positions with DealerTire and likely hourly positions with dent wizard.  Maybe they can save some money on payroll processing with moving it to Cleveland. 

 The savings come in combining like systems.   I don’t see how they could mesh the 2 very different systems or why they would try.  I’m sure they will analyze and look for cost savings and they will probably find some small savings with purchasing and payroll. 

Diversification is nothing new in business.  There was a time when Amazon was an online book store.

1 hour ago, audidave said:

^i get that. The problem is it is totally different IT systems. One is focused on Inventory supply and wholesale purchasing the other is focused on handling not just dealer but consumer-focused service calls.  As such, the payroll systems will likely be totally different as more salary positions with DealerTire and likely hourly positions with dent wizard.  Maybe they can save some money on payroll processing with moving it to Cleveland. 

 The savings come in combining like systems.   I don’t see how they could mesh the 2 very different systems or why they would try.  I’m sure they will analyze and look for cost savings and they will probably find some small savings with purchasing and payroll. 

 

There's not a lot here that makes much sense to me. You don't think payroll systems are sophisticated enough to be able handle processing paychecks to both salary and hourly jobs??

https://www.cleveland.com/news/2020/01/cuyahoga-countys-gdp-highest-among-ohio-counties-data-shows.html
 

Perception isn’t always reality when we’re told this region lacks among peer regions.

On 1/9/2020 at 7:54 PM, Sapper Daddy said:

https://www.cleveland.com/news/2020/01/cuyahoga-countys-gdp-highest-among-ohio-counties-data-shows.html
 

Perception isn’t always reality when we’re told this region lacks among peer regions.

 

Missed this -- great stuff.  Especially the comparison against Pittsburgh and Indianapolis. 

^That data came out almost a MONTH ago. Nice that the PD finally picked it up. I posted some data about it the DAY it came out---though I put it in the Ohio thread as I compared CLE to the other 2Cs as well as to some other places. 

 

I made several posts looking at different things--MSAs, counties, etc., starting with this one on December 12th:

 

 

 

 

14 hours ago, Pugu said:

^That data came out almost a MONTH ago. Nice that the PD finally picked it up. I posted some data about it the DAY it came out---though I put it in the Ohio thread as I compared CLE to the other 2Cs as well as to some other places. 

 

I made several posts looking at different things--MSAs, counties, etc., starting with this one on December 12th:

 

The reason I like GDP data is the politicians don't focus on it, meaning nobody has any incentive to distort it. While the numbers aren't directly vital, they are quite accurately measureable (ignoring the gray economy). Plus, the GDP does correlate highly with jobs creation and VERY highly with the Social Progress Index, a direct measure of 54 components of basic social welfare.  That's why I think Cleveland's big GDP improvement over the past two years is so visible around town - the poor are much less poor.

 

 

Posted a link to the office market report in the Cleveland office market thread. But here's a piece on the office and industrial markets......

 

 

Redirected from SW thread. No it’s not. Per KJP’s article, 87% of income tax revenue comes from outside the city. The increase is coming from jobs created in the city. 

53 minutes ago, bumsquare said:

Redirected from SW thread. No it’s not. Per KJP’s article, 87% of income tax revenue comes from outside the city. The increase is coming from jobs created in the city. 

 

Most of it is coming from wealthier residents moving into the city.

A blast from the past when I was only 21....

 

 

Edited January 18, 20205 yr by KJP

Eaton Corp. agrees to sell its Hydraulics business for $3.3 billion

 

Power management company Eaton Corp. (NYSE:ETN) announced late Tuesday, Jan. 21, that it has agreed to sell its Hydraulics business to a Danish company, Danfoss A/S, for $3.3 billion in cash.

 

Eaton, which is based in Dublin, Ireland, but has its North American headquarters in Beachwood, said in a news release that the sale price of the Hydraulics business "represents a 13.2 multiple of 2019 EBITDA," which is earnings before interest, tax, depreciation and amortization. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close by the end of the year.

 

Eaton said the Hydraulics business had sales of $2.2 billion in 2019 and employs about 11,000 people. The business makes hydraulics components, systems and services for industrial and mobile equipment and "accounted for 86% of Eaton's Hydraulics segment revenue in 2019," according to the release. Eaton said it is retaining its Filtration and Golf Grip businesses, which currently are reported in the company's Hydraulics segment.

 

MORE

https://www.crainscleveland.com/manufacturing/eaton-corp-agrees-sell-its-hydraulics-business-33-billion 

^ Eaton's probably planning to BUY something else. I doubt they're under any pressure to raise cash otherwise.

^Maybe, but the manufacturing sector has been in recession for a year now so I wouldn't rule out cash flow issues.  With that said they were still making acquisitions in late 2019 so I guess we'll just have to wait and see.

Slow and steady employment growth in Greater Cleveland again in December 2019.....

https://www.bls.gov/eag/eag.oh_cleveland_msa.htm

 

We have now officially recovered from the Great Recession, but not from the recession of the early 2000s. At current growth rates (assuming no interruptions), it would take about another five years to recover from that recession....

 

Edited January 24, 20205 yr by KJP

Following on to what KJP posted, the Local Area Unemployment Statistics report for December shows Cleveland's adjusted numbers for workforce and employment HIGHER than the raw data for the first time in years.

 

Work Force   Employed  Unemployed - Cleveland MSA

1,031,269   995,141    36,128  3.5%    -    Preliminary raw data Dec, 2019

1,042,568   1,000,762  41,806  4.0%   -   Preliminary adjusted data Dec, 2019

 

The adjustment has almost invariably been downward since early in the last recession. I'm not sure what conclusion can be drawn unless it's an admission that their raw data has become less reliable.  I do know from talking to Census Bureau folks that personal (in person or by phone) data collection, especially in large urban areas, has become MUCH more difficult in the last 10 years.

 

https://data.bls.gov/cgi-bin/surveymost?la

Edited January 24, 20205 yr by Dougal

1 hour ago, Dougal said:

Following on to what KJP posted, the Local Area Unemployment Statistics report for December shows Cleveland's adjusted numbers for workforce and employment HIGHER than the raw data for the first time in years.

 

Work Force   Employed  Unemployed - Cleveland MSA

1,031,269   995,141    36,128  3.5%    -    Preliminary raw data Dec, 2019

1,042,568   1,000,762  41,806  4.0%   -   Preliminary adjusted data Dec, 2019

 

The adjustment has almost invariably been downward since early in the last recession. I'm not sure what conclusion can be drawn unless it's an admission that their raw data has become less reliable.  I do know from talking to Census Bureau folks that personal (in person or by phone) data collection, especially in large urban areas, has become MUCH more difficult in the last 10 years.

 

https://data.bls.gov/cgi-bin/surveymost?la

Where are you seeing the adjusted data because when I go to the site all I see is the preliminary numbers. 

8 hours ago, cle_guy90 said:

Where are you seeing the adjusted data because when I go to the site all I see is the preliminary numbers. 

 

I just looked again to make sure; both the raw and the adjusted data are showing (P) for preliminary next to the numbers at the present time.

18 hours ago, Dougal said:

Following on to what KJP posted, the Local Area Unemployment Statistics report for December shows Cleveland's adjusted numbers for workforce and employment HIGHER than the raw data for the first time in years.

 

Work Force   Employed  Unemployed - Cleveland MSA

1,031,269   995,141    36,128  3.5%    -    Preliminary raw data Dec, 2019

1,042,568   1,000,762  41,806  4.0%   -   Preliminary adjusted data Dec, 2019

 

The adjustment has almost invariably been downward since early in the last recession. I'm not sure what conclusion can be drawn unless it's an admission that their raw data has become less reliable.  I do know from talking to Census Bureau folks that personal (in person or by phone) data collection, especially in large urban areas, has become MUCH more difficult in the last 10 years.

 

https://data.bls.gov/cgi-bin/surveymost?la

I think we are talking about two different things. The adjusted data is seasonally adjusted data and the December data adjusted would always be higher than the non adjusted. But both are preliminary. When they actually come out with the revised data hasn’t happened yet.

On 1/25/2020 at 9:02 AM, cle_guy90 said:

I think we are talking about two different things. The adjusted data is seasonally adjusted data and the December data adjusted would always be higher than the non adjusted. But both are preliminary. When they actually come out with the revised data hasn’t happened yet.

 

Ok, I get what you're saying. Still, why is December an upward adjustment while the other months of 2019 and 2018 are downward? That says to me something is wrong with the CB's methodology of collection or adjustment.

On 1/22/2020 at 12:01 AM, Dougal said:

^ Eaton's probably planning to BUY something else. I doubt they're under any pressure to raise cash otherwise.

 

Looking at Eaton's numbers, their long-term debt is about $7 billion, so the sale of hydraulics could pay off almost half of it, but their interest expense is no great burden. Hydraulics is, however, their least profitable business segment with a margin of just under 12%, while the other segments (not counting the tiny Emobility segment) are in the 18-25% range. In addition hydralics has a negative future growth projection.  Thus, it's a prudent business decision to sell it. The sale will have a significant positive effect on ROI/ROE.

 

While they may have a plan to buy something else, their history says the sale isn't necessarily motived by an immediate purchase need.

 

I wonder if Parker-Hannifin shares Eaton's view on the future of hydraulics.

More good news. This is getting to be so-o-o boring.  ?

 

The airport updated their website data for 2019. We know about the pax numbers passing 10 million; the other great news is cargo. The Dec total was up just 5.0%, but that hides the fact emplaned cargo was up 10.56%, while deplaned cargo was up only 0.16% - which points to the continued growing strength of the Cleveland economy. Area 'exports' are growing much faster than 'imports'.

 

https://www.clevelandairport.com/about-us/facts-figures

Edited January 30, 20205 yr by Dougal

^ I can’t go into details and it’s neither good nor bad news, but that export cargo bump is quite likely to be a one-off coming from a singular shipper.  

Parker-Hannifin: Fiscal 2Q Earnings Snapshot

 

January 30, 2020 at 7:53 AM EST - Updated January 30 at 7:53 AM

 

"CLEVELAND (AP) _ Parker-Hannifin Corp. (PH) on Thursday reported fiscal second-quarter net income of $204.5 million.

On a per-share basis, the Cleveland-based company said it had profit of $1.57. Earnings, adjusted for one-time gains and costs, came to $2.54 per share. The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $2.29 per share."

 

https://www.fox19.com/2020/01/30/parker-hannifin-fiscal-q-earnings-snapshot/

1 hour ago, roman totale XVII said:

^ I can’t go into details and it’s neither good nor bad news, but that export cargo bump is quite likely to be a one-off coming from a singular shipper.  

 

That's ok.  The trend has been true all year, but the bump up in December was much bigger. Even at the lower rates of prior months, the trend is still positive.