As published in Toledo Business Journal - December 1, 2010
Attendees at the EXPO
Area industrial biz growth aided
NORED and OMA event addressed financing and business development
In mid-November, the 2010 Northwest Ohio Manufacturing Forum & EXPO was held on the campus of Bowling Green State University (BGSU). The annual event was again co-hosted by the Ohio Manufacturers’ Association (OMA) and the Northwest Ohio Regional Economic Development Association (NORED).
The session included a Forum, or speaker’s series, and an EXPO, or industrial trade show. The Forum had two topics that were addressed by a series of speakers. One group of speakers addressed the issue of financing for area manufacturers and the second group represented a range of new business opportunities for attendee manufacturers.
This was the second year for this business development event aimed at manufacturing and industrial companies from around the region. Close to 500 professionals registered to attend the event this year. Attendees included owners and senior management from manufacturing and industrial companies throughout northwest Ohio and southeast Michigan. In addition, economic development professionals around the region attended the event. With the Forum’s financing focus, there were also attendees from a broad range of financial service companies. Company CFOs and controllers from manufacturing firms in the region attended the Forum this year with its financing focus.
The event was developed and staffed by the Supplier Recruitment Program (SRP) committee. Members are private sector volunteers who are working to assist economic development efforts in the region. SRP is now a committee of the NORED organization. Toledo Business Journal has disclosed to readers that it is involved with the SRP initiative.
A number of Sponsors came together to make this program happen. Platinum sponsors included Rocket Ventures, Toledo-Lucas County Port Authority, CSX, and Ohio Skills Bank. Gold sponsors included BGSU and The University of Toledo (UT). Bronze sponsors included Wood County Economic Development Commission (WCEDC), IPS, and MAGNET.
In 2009, the event was held on the UT campus and included only the Forum or speaker’s series. An industrial trade show EXPO was added this year that had over 60 exhibitors.
The event was organized to not only provide attendees with a program session on financing and new business opportunities, but to also enable networking. Both the Forum and EXPO were designed to facilitate networking by manufacturers and economic development professionals.
Dr. Kenneth Borland, senior vice president for academic affairs and provost at BGSU, opened the session and welcomed attendees. OMA’s John Laughman, vice president, traveled from Columbus to welcome attendees to this session. Kay E. Reiter, NORED’s current president, also spoke to attendees at the start of the Forum.
A range of topics was addressed in the segment on financing for area manufacturers. This segment included speakers on working capital and fixed asset financing. Information on the Small Business Administration’s (SBA) 504 and 7(a) programs was provided along with the State of Ohio’s 166 Loan Program. Lisa Wagner from the Toledo-Lucas County Port Authority and Jeremy Gutierrez from Huntington Bank were the speakers on these subjects. John Skeldon with Cooperative Business Services (CBS) addressed the topic of commercial loans from area credit unions.
Other topics included lease financing and export financing conducted by Dale Williams from KeyBank and Patrick Hayes of the SBA export services area. Another speaker, Greg Smith of Investment Property Exchange Services, Inc., addressed the use of 1031 exchanges to reduce taxes that could then be put back into funding operations.
Two speakers addressed the use of private placements to fund both debt and equity issues that were long-term in nature. Prudential Capital’s Dianna Carr traveled from Chicago and MelCap Partners, LLC’s Sean Demlow came from the Cleveland area to address the audience on these topics.
Rocket Ventures’ Greg Knudson talked to the audience about using venture capital funds to finance new product / venture activities at established area manufacturing firms that involve proprietary technology. While the organization – whose parent is the Regional Growth Partnership (RGP) – has focused on new high-tech start up firms, it is interested in working with existing companies that have new product / venture technology and need investment capital to commercialize these opportunities.
Also presenting at the Forum were several new high technology venture firms that are close to commercialization. Each is looking to develop relationships with area manufacturers in order to support specific resource needs. Some are in need of a contract manufacturer, others need parts and components made in close proximity to their operations, some need access to established channels of distribution, and each needs additional investment capital to assist growth.
Speakers from these new advanced technology firms included Jim Olzak from Nextronex Energy Systems, David Macpherson from H2 Engine Systems, and David Miller representing Third Millennium Metals.
The needs of each of these new high technology firms represent new business opportunities for area manufacturers. An opportunity for business diversification may be provided to selected manufacturers in the region from these new high technology firms.
The large number of manufacturing and industrial companies that took the time to participate was an indication of the importance of this business development initiative for the region.