Great Lakes Region Increases Hiring

Great blog post from the Wall Street Journal highlighting recent job growth in the Great Lakes region. 

Great Lakes, Good Job Market 

College hiring is rebounding in the Great Lakes and Mid-Atlantic regions, but remains muted in the Northeast, Southeast and Southwest, Dow Jones’s Melissa Korn writes this week.

Companies based in the Great Lakes area expect to hire 13% more new graduates with bachelor’s degrees regionally for the 2010-2011 academic year compared with the year earlier, according to a recent survey by the Collegiate Employment Research Institute at Michigan State University. The region includes Ohio, Michigan, Indiana, Illinois and Wisconsin.

The uptick stems in part from pent-up employer demand after years of hiring “sporadically, at best,” says study author Philip Gardner. He expects manufacturing, professional and science-related jobs to bounce back, especially at smaller companies.

The survey was conducted in September and October.

Sustainable Leadership in Urban Schools

Earlier this week, Cleveland Schools CEO Eugene Sanders announced his intentions to resign. Sanders retirement came as a surprise to many throughout the city. Just six months ago he announced a wide scale school transformation plan, calling it the most important work of his career. While the district has asserted its intentions to continue moving forward with the plan, its success is without a doubt in question.

Cleveland, like many other cities with failing schools, is struggling to keep students and attract high-quality teachers. Bold reform is needed. But can it be achieved without sustainable leadership?

The D.C. public schools face a similar challenge. This past November, school Chancellor Michelle Rhee and Mayor Adrian Fenty suffered an electoral defeat that has put the city’s education transformation plan in jeopardy.  While Mayor-Elect Vincent Gray has promised to continue those reforms, there is still a sense of uncertainty about the future.  The challenges facing Americas education system are too daunting for inconsistent leadership. School chiefs need time to implement their plans.  And elected officials need to think creatively about how they hire superintendents. Even more importantly, superintendents must implement succession planning into their human capital strategies. All of these factors are critical to ensure school effectiveness.

It is my hope that Cleveland community leaders will do their due diligence to ensure our next schools chief has the commitment and the vision to turn around Cleveland’s schools. With a 54% graduation rate, one of the lowest in the nation, we need more than a plan…we need a movement. 

Connecting Lake Erie to the Global Economy

Yesterday, the Cleveland Plain Dealer released a thoughtful op-ed discussing the merits of Cleveland connecting its port with Montreal. The Cleveland-Cuyahoga County Port Authority has struggled for years to develop a comprehensive vision. Developing a strategic partnership with Montreal is a step in the right direction for opening up our ports to the global economy.


Montreal link with Cleveland port is worth a look: editorial
By: Plain Dealer Editorial Board


They're back. But this time the Cleveland- Cuyahoga County Port Authority is developing a strategy for container traffic within the Great Lakes that could actually hold water -- and make Cleveland a leading innovator for a new form of lakes shipping.

Former ports CEO Adam Wasserman first flagged the idea of expanding the Cleveland port to handle containers that also ship by truck and rail. But Wasserman never moved beyond pie-in-the-sky schemes.

Since taking over after Wasserman's ouster, current port President Will Friedman has been busily establishing the contacts and key planning elements needed to create the first international container service on the Great Lakes. Among them:

• The definition of a route between Montreal and Cleveland. Great Lakes Feeder Lines, a joint American-Canadian company, would provide a vessel to shuttle containers back and forth.

• A demonstration that Cleveland's current docks could handle container cargo without added taxpayer investments. Last month, one of Great Lakes Feeder Lines' vessels was in town to demonstrate how containers could be loaded and unloaded here. Cleveland has the necessary longshoremen, a terminal operator with the needed equipment and the road and rail connections to move goods throughout Northeast Ohio.

• A realistic sense of scale. Cleveland is not going to compete with the Port of New York and New Jersey, which handles more than 5 million containers a year. Friedman figures the feeder line would handle 16,000 containers a year, linking with ocean-going vessels plying trans-Atlantic routes. "We're trying to provide a niche service for Northeast Ohio," he said.

Initial response from Fortune 100 and Fortune 500 companies in the region has been good, according to David Gutheil, who was hired last month as vice president of maritime and logistics for the Cleveland-Cuyahoga County Port Authority.

For taxpayers, the good news is that, unlike Wasserman's approach to international shipping, Friedman's envisions no public subsidy. But it's not all likely to be smooth sailing. 

Transit time and cost must be competitive enough to give ocean shippers a reason to change to a new mode of transportation.  And let's not forget Mother Nature. The St. Laurence Seaway and the Great Lakes freeze between mid-December and mid-February 

Still, the idea of a contained container service between Montreal and Cleveland merits further study. As cargo tonnage on the Great Lakes drops, it is crucial that the port embrace innovative ways of selling its services. And container traffic could help buoy it up.

The End of Our Real Estate Market Woes?

Without question the latest economic recession has had a devastating impact on the economy of Northeast Ohio. Exacerbated by the foreclosure crisis, Cleveland's real estate market has been in decline as early as 2007. However, recent market trends show some signs that Cleveland's real estate market may be on the upswing.

While the housing market in cities like Detroit and Las Vegas has yet to fully recover, the Cleveland market has begun to stabilize and bottom out. According to the most recent numbers, home sales in the greater Northeast Ohio area from January through September are better than they were in 2009. Throughout the region, housing consumers are beginning to buy and their appetite for investment has been increased due to historically low interest rates and federal tax credits. Home prices have also gone up over the past six months, which bodes well for residents who have seen their housing values plummet due to the sub-prime mortgage crisis that almost paralyzed the region. While these trends are promising, Cleveland's economy still has a long way to go to fully recover.  Over the past 10 years, Cleveland lost a a fifth of its jobs as the manufacturing base eroded. Leaders in the region are now working vigorously to retrain workers in healthcare, one of the regions greatest economic assets.

Moving forward, Cleveland and its leaders must continue to work towards creating regional economic development strategies that will attract new investment. Cleveland's unique location by Lake Erie and its emerging strengths as a biotechnology and healthcare capital are all great foundations to build upon.

In Cleveland Loyalty Matters

Check out this latest commercial a group of Clevelander's put together in response to LeBron's latest Nike Commerical.  Gotta love that Cleveland Pride!!!

A New Path for Revitilization

Yesterday voters elected Ed Fitzgerald, Mayor of Lakewood, as the new County Executive for Cuyahoga County. Under the backdrop of the worst corruption scandal in county history, Fitzgerald was able to overcome his Republican challenger, Matt Dolan, who spent millions of dollars linking Fitzgerald to the current scandal facing the local Democratic party. As the first County Executive, Fitzgerald will be faced with a laundry list of challenges. While restoring faith and credibility in county government should be his main priority. Fitzgerald has a unique opportunity to re-imagine Cleveland's role as the economic nucleus of Northeast Ohio.

Earlier last month, urban development experts from across the country gathered in Cleveland to discuss how to use vacant properties as an economic asset. Many cities across the country have had no choice but to make this issue a priority, as towering mortgage debt and urban disinvestment continues to plague many inner-city communities. In 2009, Cleveland alone witnessed more than 20,000 foreclosures, according to cases filed in the Cuyahoga County Common Pleas Court. This coupled with rising population loss and increasing levels of poverty, has undermined real GDP growth in the region. Yet while these structural challenges seem impossible to address, there is hope as some communities in the city are beginning to turn the page. Urban wine gardens are being created in the Hough Neighborhood, and University Circle is only at the cusp of witnessing how the new transit line will help link its assets to Downtown Cleveland. "Instead of figuring out what to do with (all) the vacant land, we need to figure out for each neighborhood, 'What are your most pressing problems, and in what way can vacant land be part of an answer?" says, Terry Schwarz, director of Kent State University's Cleveland Urban Design Collaborative. And it may take this neighborhood approach to really help make Cleveland, and thus Cuyahoga County, more economically competitive. 

Nonetheless, as Fitzgerald begins his transition as the region's newly elected leader, he must do all the he can to listen to leaders in Cleveland to develop a sophisticated economic agenda that places the city at the center. In this age of austerity, rethinking how we utilize our must underused properties will be integral to that economic agenda. Cleveland can't afford to wait for another historic election to solve its problems. If Fitzgerald does his due diligence, he can help lead the both the county and the city to a new age of prosperity. 

Cleveburg Rising

Check out this great post via  Burgh Diaspora by Jim Russell

The next Silicon Valley won't look like Silicon Valley. The era of greenfield economic development is over, at least in most OECD countries. Here in the United States, we've done a good job of picking that low-hanging fruit. The next innovation heartland will be in the Rust Belt, brownfield economic development.

Richard Florida, and others, are very good at mapping where the current clusters are located. We also understand why regions such as Silicon Valley are now economic powerhouses. Unfortunately, that hindsight doesn't project well into the future. What we read and hear is that the current winners will only get stronger. In many cases, that's likely true. But there will be new winners. How might we divine them?

Worthy of reiteration, Detroit hopes to be the next Pittsburgh:

Primary metals and all of manufacturing continued to decline as a share of metro Pittsburgh’s employment earnings. But it didn’t consign the region to permanent low- prosperity status. By the 1990s Pittsburgh was at or above the national average in per capita income even though primary metals accounted for only 4 to 5 percent of employment earnings and 17 to 19 percent for all of manufacturing. In 2008 Pittsburgh returned to its previous peak compared to the nation—104 percent of the national average. Of the 55 metropolitan areas with populations of a million or more, it ranked 16th and was more prosperous than Dallas, Raleigh/Durham, Austin, Portland and Atlanta.

In terms of prosperity, Pittsburgh hits way above its weight. If Cleveland could gets its act together, look out world:

Cleveland historically had the more diversified economy [than Pittsburgh] and traditionally was the most successful and largest city in the region. The city primarily built component parts, providing the essential industrial pieces to other mostly producer products. Companies such as Parker Hannifin, Standard Products, Cleveland-Cliffs, the Eaton Corporation, Yale & Towne, TRW, White Motor, and Sherwin-Williams exemplify the entrepreneurial efforts that build Cleveland.

This proud historical legacy is a blessing and a curse. It is a curse because the industrial decline of Cleveland has been more gradual, punctuated by many efforts to restructure alongside a common belief that corners were being turned—only to face another setback amid the steady decline of employment in industrial manufacturing across the Midwest. But it is a blessing because many parts and components are still manufactured in the city, along with the important service components that accompany their distribution. These industries remain highly competitive in the global economy, sustaining the region for export markets and defining a source of expertise and strength.

Pittsburgh shed its manufacturing base much more quickly than Cleveland did. Hence, Detroit looks at Pittsburgh as opposed to Cleveland as a model for a way forward. Ironically, Cleveburgh is a tried and true economic geography that lends itself to cluster-based economic development:

The fortunes of regions, of course, are tied to the fortunes of their firms and industries. The success and specialization of 19th-century achievements are still visible and still define many of the expectations, capabilities, and obstacles in this region. Writing in 1936, economic geographer Richard Hartshorne noted that the Pittsburgh-Cleveland region—geographically situated in western Pennsylvania and northeastern Ohio—was one of the most important regional economies in the United States.

The name "Richard Hartshorne" should be familiar to anyone who majored in geography at university. 

(I didn't realize he was born in Kittanning) Cleveburgh was obvious in 1936. Cleveburgh should be obvious now. It isn't. I think we are looking at the first regional innovation cluster to cross state boundaries. At least, where better to test the policy idea?

Cleveburgh, not the Great Lakes Economic Initiative or the Global Midwest, is the policy geography of the future. The TechBelt is further along than anything John Austin or Richard Longworth has proposed. The reason why is buried in obscure texts about historical geography. If only more analysts and pundits read them.