LITTLE ENGINES

Small businesses generate more jobs than large ones. Its almost an article of faith, but recent data from the Labor Department reinforce it once again. From 1992-2005, payrolls of businesses with fewer than 100 employees generated 47% of new jobs created.

Payrolls of companies with more than 1,000 jobs accounted for just 28% of new jobs (see Business Week, SmallBiz, Spring 2006, p. 42).

WIRE-Net is targeting just these firms…manufacturers in Cleveland with sales of $25 million annually or less, but with 25 or more employees. There are about 530 of those in Cleveland, generating wealth by exporting their products outside our region to customers all over the globe. Combined, they employ nearly 33,000 people and generate annual sales of over $3.8 billion. WIRE-Net estimates total annual payroll at around $1.2 billion. Only about 65 of these companies have more than 100 employees. These are our "Little Engines".

CAUSE FOR OPTIMISM:

Our major challenge is engaging the leaders of these firms in programs to help them improve their operations, thereby strengthening local communities. But our track record gives cause for optimism…in each of the last 4 years we’ve worked with roughly 300 unique manufacturing firms.

BIG IMPACT

This includes “critical interventions” with seven firms, interventions where WIRE-Net’s “hands-on” role determined the outcome of a company’s decision to retain and/or attract new jobs to the city. Combined, the seven interventions helped retain and attract 564 jobs, a $22 million annual payroll, and an indirect employment impact on an additional 361 jobs in “downstream” business sectors.

In projects where WIRE-Net had an important impact, even if jobs were not at risk, WIRE-Net’s work with four other manufacturing firms helped companies significantly improve their competitive position and revenue base supporting 480 jobs and $19 million annual payroll. “Downstream”, the four projects impacted 307 jobs.

Bottom line: WIRE-Net’s work with these eleven manufacturing companies has had a direct regional economic impact on 1044 jobs with a combined annual payroll of over $41 million.

WIRE-Net is putting leather on the street to make a difference in Cleveland.