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Mechanical Optimizers Aiming to Help Area Nonprofits Assess, Update Facilities

Local contracting companies, from air conditioners to electricians, have teamed up to form a group called Mechanical Optimizers to help local nonprofits with the upkeep of their operations.

The newly formed group creates, for the first time, a single point of contact for an audit of a nonprofit’s building’s situation and help with the budgeting and finding grants and funds for the project. All of this, remarkably, is done free of charge for the area’s churches, mosques and many other private institutions.

Jeff Wilmink, an executive at Century Mechanical Solutions since 2012, said that he noticed an acute need for long-term strategies for local nonprofits to maintain their buildings. He told UrbanCincy that he saw institutions were not spending money on proper upkeep and were repairing things that long needed to be replaced. With no master plan for how/what to fix, these nonprofits were putting band-aids on visible problems while invisible problems were compounding, thus creating crisis situations that cost much more money to fix.

With this in mind, he created Mechanical Optimizers to help local nonprofits be proactive and find funds to proactively tackle such projects. When I asked Jeff whether there was a light-bulb moment for this idea to come about, he told me of a call he received from the pastor at St. Louis Church downtown.

The pastor, he said, called because of a noise coming from the basement. After traversing an old, narrow stairway with limited access and even more limited use, Wilmink’s team found an ancient boiler that was leaking, and a basement covered in asbestos. The emergency fix needed for St. Louis Church ended up being much more costly than it would have otherwise been if fixed sooner.

There is not much blame to lay, either. Leaders of nonprofit organizations often do not know or understand the mechanical problems going on in their buildings and, therefore, do not know to fix it. In addition, technicians will often solve superficial problems that create short-term fixes, but neither party tends to think about what will need to be done in a year, five years or ten years.

Add this to the tight budgets of local nonprofits, and many cruise from emergency to emergency without ever fixing the underlying problems in their aging buildings.

“It’s irritating that we’ve allowed these buildings to get in the condition they’re in,” said Wilmink. He continued by saying that many institutions will spend thousands of dollars on cosmetic fixes while the mechanics of their building are literally rotting; or spend $25,000 every other year to fix a unit in order to save $75,000 upfront.

Mechanical Optimizers comes into the equation by offering to provide a free assessment of a nonprofit’s building. Then, after telling “the blunt truth” about what it will take to fix it right, Wilmink and his team will help locate grants and create a budget for fixing the problem and updating aged equipment.

The goal is to be smarter about maintaining a building’s mechanical systems so that high-priced emergency projects do not emerge later. Furthermore, Wilmink says that the very nature of these buildings – churches, mosques, markets, etc. – means finding funds can often be easier once the problem is identified, because someone is typically willing to step up and donate money to help out.

There is, as you might suspect, more to it for Mechanical Optimizers than the charitable work. Once they complete their free assessment, Wilmink says that they will often times submit a bid to perform the work like they would for any other project. Essentially, Mechanical Optimizers has found a way to combine charitable work with their daily business operations. At the same time, this “no agenda” charity is helping many local nonprofits save thousands of dollars.

One of the biggest savings that nonprofits typically receive comes from technology and equipment that can replace outdated systems with ultra-efficient units.

When asked about how government policies help or hinder his efforts, Wilmink pointed to a recent program in New Jersey where the state will pay 80% of the costs for upgrading systems and improving efficiency. The money for the program, he explained, comes from funds utility companies there are mandated to set aside for the state to use for such purposes.

In addition to St. Louis Catholic Church, Wilmink says that Mechanical Optimizers has worked on Old St. Mary’s Catholic Church, Findlay Market, the Islamic Center of Greater Cincinnati, and a slew of other buildings throughout the region.

Pointing to the work’s importance, the contractors involved with the group say that they will do whatever it takes to offer up their help and get the project done.

“If you want our help, we’ll find a way to make it happen.”

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Local Companies to Showcase Custom-Made Products at Cincy Startup Store in Over-the-Rhine

Cincy Simple SpaceLocal startups will host a one-day product exhibition this Saturday from 10am to 10pm at 16 E. Thirteenth Street in Over-the-Rhine.

The event, called Cincy Startup Store, will take place inside a newly opened pop-up hub called Simple Space, which was funded through an Indiegogo campaign and is envisioned as a destination for short-term popups.

Kapture, an original backer of the Simple Space Indiegogo campaign, will join six other local startups for the event. Organizers hope it will be able to bring startups with tangible products together to sell their items inside the unique brick-and-mortar space not typical for many startups that focus on Internet sales.

Cincy Startup Store will also provide last-minute holiday shoppers with an opportunity to complete their shopping, while also supporting the local economy and small business startups.

In addition to Kapture and their audio-recording wristbands, PlusBlue will be selling custom-engraved mobile battery packs; Frameri will offer glasses with interchangeable frames and lenses, Artfully Disheveled will have their ties, bowties and pocket squares; Petbrosia with their custom-designed pet food; Beluga Shave Co. will be selling their single-blade razors; and GoSun Stove will be showcasing their portable solar cookers.

Organizers say that they are excited to have the small storefront space turned into a showcase of these products born in Cincinnati by Cincinnati companies. Backers of the event include Cintrifuse, CincyTech, The Brandery and HCDC.

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While Limited in Size, Individuals With Limited English Capabilities Perform Well in Regional Economy

In the United States, more than 45 million working-age adults – over 20% – speak a language other than English in their homes.

According to a report released by the Brookings Institute, approximately 19.2 million (almost 10%) of this sub-population are considered “limited English proficient” (LEP). More than 70% of these LEPs participate in the work force, and the Brookings Institute found that they make considerably less (anywhere from 17-135%) than their English-proficient counterparts. These individuals, researchers found, are also more likely to suffer from unemployment and poverty.

While most LEP individuals live in the nation’s large metropolitan areas, like Cincinnati, their numbers are rapidly growing in smaller urbanized regions, like Dayton and Lexington.

In the Cincinnati metropolitan region, the number of LEP adults exceeds 35,000 and has grown 55.1% since 2000. This places the region in the top 25 of the 89 largest metropolitan areas in the nation; however, LEP individuals only make up 2.5% of the metropolitan region’s total workforce. This places Cincinnati 88th out of the 89 largest regions in America.

There has been a growing interest in this topic recently, with some organizations going as far to organize workshops to help non-native English speakers with business start-up and management training.

Perhaps unsurprisingly, the report found that the most commonly spoken language by LEP individuals is Spanish. Across the nation, that percentage is 66.3%, but represents just 41.9% of the LEP population locally.

The Cincinnati region does, however, have a relatively high percentage of Asian and Pacific Island language LEP workers (35.2%), with Chinese, Vietnamese, and Japanese following Spanish as the top languages spoken. French speakers come in next at 3.9%.

It should be emphasized that while Germans represent the region’s predominant historical migrant community, the German language did not rank amongst the top five languages spoken within Cincinnati’s LEP community. This, however, may be the result of Germans immigrating to the region several generations ago. It also speaks to the complexity of the issue of immigration and the need for a comprehensive study of the matter.

Following national trends, the Brookings Institute found that LEP workers in Cincinnati are most likely to work in industries like manufacturing, accommodation and food service. Cincinnati’s LEP workers, however, were found to be slightly more educated than the national average, with a smaller percentage of individuals with less than a high school education and a larger percentage of individuals with an education level of at least some college or a bachelor’s degree or higher.

Those positive numbers seem to translate into better economic performance for the region, with more than 76% of Cincinnati’s LEP workers active in the regional workforce – a rate that is slightly better than the national average.

With demographers predicting that almost all growth in the U.S. labor force will come from immigrants and their children over the next half-century, these statistics have a large impact on the overall well-being of the American economy.

EDITORIAL NOTE: Listen to our podcast with Alfonso Cornejo, President of the Cincinnati Hispanic Chamber, and Kristin Hoffman, an Immigration/Administration Lawyer with Hammond Law Group, to learn more about the region’s efforts and needs to become more welcoming to immigrants and foreign language speakers.

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Economists: Cincinnati’s Regional Economy Outperforming Both Pittsburgh and Cleveland

Analysis of data recently released by the Cincinnati Branch of the Federal Reserve Bank of Cleveland shows the area’s economy in a relatively healthy position compared to nearby metro areas, and to the nation as a whole.

LaVaughn Henry, Vice President and Senior Regional Officer at the Cincinnati Branch, says that he believes the region’s economy is poised for continued economic growth, and he points to several factors that contribute to his optimism – a highly educated workforce, an economy healthily spread amongst different sectors, and numerous Fortune 500 companies headquartered in the city.

When diving into the numbers, Henry points to 30% of the regional workforce holding a bachelor’s degree as an item that makes the city an attractive place to do business.

He also touts the city’s relatively low unemployment rate which stands at 5.2% – about even with Pittsburgh and a full percentage point better than the rates nationally and for the state of Ohio. Making the area’s economy even stronger is the fact that its top industry sectors – professional and business services, health and education, and skilled manufacturing – all continue to experience healthy growth.

The Federal Reserve also pointed to continued capital spending as a bright spot that is boosting employment and earnings. Specifically, two hospital expansions and the opening of General Electric’s Global Operations Center at The Banks are expected to support thousands of jobs through 2016.

While the data found that Cincinnati is out-performing many of its peers, it also found that it has room for improvement in terms of wage and GDP growth.

Wages, the Federal Reserve says, have yet to reach pre-recession levels locally, and, while growing, are growing modestly at best. Researchers say that Cincinnati is suffering from a national problem of too many workers in the labor market, and high growth in low-paying service sector jobs that depress wage data. And while the region’s gross domestic product is growing faster than the national average, economists note that, like wages, it has yet to reach pre-recession levels.

When compared to Pittsburgh and Cleveland, the only other two metropolitan regions with more than 2 million people in the Federal Reserve Bank of Cleveland district, Cincinnati is, by far, the healthiest performer.

In Cleveland economists note that its economy is recovering from the Great Recession much better than the recession of 2001, yet it continues to trail national averages. While unemployment is falling throughout the region, it remains stubbornly high at 6.8% – above both the national and state averages. A bright spot, however, is Cleveland’s 28.5% bachelor’s degree rate within the workforce is at least on-par with the national average.

Pittsburgh, meanwhile, recovered the quickest of the three from the Great Recession, but has since seen its economic indicators stall. While unemployment has consistently stayed below the national average, growth in almost all industries in the city was lower than the national average. And while GDP grew from 2009 to 2012, economists at the Federal Reserve expect the data to be somewhat more somber once data is released for 2013 and 2014.

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Federal Reserve Data Reveals Cincinnati Economy is Out-Performing Regionally, Lagging Nationally

New data from the Federal Reserve Bank of Cleveland, which covers Ohio, western Pennsylvania, the West Virginia panhandle, and the eastern half of Kentucky, provides a glimpse into the recovery and transition of the region’s economy.

According to the newly released data, spanning from 2001 to 2012, this Federal Reserve region has weathered an incredibly tumultuous 11 years.

“Historically, much of the region has specialized in manufacturing, a sector that has been particularly hard hit over the past few decades,” noted Federal Reserve Bank of Cleveland research analyst Matthew Klesta in his data brief. “Since the end of the Great Recession in 2009, however, the decline in manufacturing employment has slowed. In some places, employment has even grown.”

Since the first year of recorded information in this data set, all 17 Metropolitan Statistical Areas (MSA) in the region, with the exception of Wheeling, WV, saw losses in manufacturing employment – the region’s historical economic stalwart. MSAs like Dayton and Steubenville posted losses of almost 50%. Cincinnati, meanwhile, saw its manufacturing sector decline by nearly 25% – a mark that is low by regional standards.

International trends in trade in the early 2000s, like China’s entry into the WTO and the increase of offshoring from developed to developing nations, combined with the Great Recession, dealt a critical blow to the area’s manufacturing sector. Excluding education and health services, every other industry in the region saw significant jumps in the annual percentage of jobs being lost during the Great Recession.

For example, between 2001 and 2007 the average loss per annum for the manufacturing sector was a little less than 3%; but from 2008-2009 it jumped to nearly 7%. Since the Great Recession, however, many MSAs in the area have posted modest gains in manufacturing employment, while still falling well below baseline levels in 2001.

While the manufacturing sector has declined throughout this Federal Reserve region, health and education sectors have grown. Despite a nationwide average of 1.2 health and education service jobs gained per 1 manufacturing job lost, only four MSAs in the region (Cincinnati, Columbus, Huntington, Pittsburgh) can boast an overall replacement of lost manufacturing jobs with health and education employment.

The replacement of manufacturing jobs with health and education employment does not bode well for the region’s workers. According to the data, the health and education sectors pay, on average ($44,000 in 2012), significantly less than manufacturing ($55,000 in 2012).

But while this changing economic landscape has meant a smaller presence for manufacturing in the region, this Federal Reserve Bank region continues to be highly specialized in that economic sector. Perhaps as a result, population loss continues to plague many MSAs within the region.

From 2001-2011, while the national population grew by 10% the regional population posted an average gain of only 1.6%. In fact, only five (Cincinnati, Huntington, Akron, Columbus, Lexington) of the 17 MSAs in the region saw their population rise over that time period. Of those five metropolitan areas, only two (Lexington and Columbus) posted gains in both population and private-sector employment.

Pittsburgh and Wheeling, meanwhile, managed to post positive gains in private-sector employment while still shedding population. The remaining 10 MSAs all posted losses in private-sector employment and population.