As published in the September 1, 2005 Toledo Business Journal
John S. Szuch
Fifth Third Bank, Northwestern Ohio,
chairman of the board
Toledo Business Journal recently met with John S. Szuch, chairman of the board, Fifth Third Bank, Northwestern Ohio. He shared the following thoughts.
TBJ: What do you see as the most important need in the business community?
JS: One of the most significant needs is the lack of leadership from the business community. Toledo used to have a network of the major corporations and banks headquartered in Toledo, which provided an ability to coordinate a group of powerful and influential leaders who exerted quite a bit of influence over economic development. There was a common voice speaking on behalf of business. The sale of many local corporations to companies not headquartered in Toledo created a leadership vacuum and the local focus was gone. No coordinated group of leaders emerged to speak on behalf of the business community.
I think this leadership void has been the single largest flaw that we’ve had. However, at this point, I think the privatization of the Regional Growth Partnership (RGP) should give business a concerted and focused voice. If the business community speaks out as a group through the RGP, it will have much more influence over events affecting our economic development. Revitalization of the RGP might be the single most significant event in development of the economy of northwest Ohio in the last decade or more.
We also need to decide what we are. We’re a hub at the intersection of 80/90 and I-75, we have good rail, an underutilized airport, a dynamic port authority – we really need to focus on distribution and our location to move forward. There are huge opportunities here.
Also, there are technology companies being formed through research efforts at the Medical University of Ohio and The University of Toledo, and we need to focus on increasing research funding and technology start-up companies. I think it would be highly favorable if MUO and UT were merged into one mega university. The additional research dollars that would flow would be large, and that would help spawn additional business formation in Toledo.
Another issue is that prior to 9/11, Toledo attracted a fairly significant number of foreign engineering and medical students who were highly educated and came here to get advanced degrees, as well as foreign professional workers. That flow of talent has largely wound down. Attracting foreign talent to local universities and businesses has historically been a huge part of our talent pool, and we need to rekindle it by promoting our universities and companies abroad. President Dan Johnson of UT has recently made a recruiting trip to China. We need more of this type of effort.
TBJ: What advice would you provide for advancing the economy in our region?
JS: To really move forward, we need to promote ourselves as a region, not a group of several localities. That’s why the new privatized RGP, which will hopefully take economic development in northwest Ohio out of the parochial interests of the individual governmental units, should have a huge impact. If a company creates jobs in any northwest Ohio community, people from all of the communities in the area are going to get the jobs. We’re too narrowly defined by the governmental jurisdictions, which is a major impediment to economic growth. Regionalization would really help.
Other problems we have include relatively high labor and utility costs, which makes attracting new business more difficult. We are also falling behind other areas of the country in education, which isn’t enough of a priority in Ohio. It’s a world market for talent and we need to be competitive on a worldwide basis.
Regionalization would accomplish some other things. Right now we have suburban governments that have city councils and administrations where a businessman attempting to get something approved is generally appearing before professionals and business- oriented people in governments who are empathetic to helping business. The same is not always the case with the City of Toledo.
TBJ: Can you share your thoughts on the RGP's transition to a private agency and discuss any factors behind your organization’s decision to support this effort?
JS: As a leading bank in town, it was clear to us that there wasn’t a voice speaking for business in a strong way, other than the Chamber of Commerce. The Chamber does an effective job representing business interests, but we needed something more – the Chamber does a wonderful job but it is not a tool for growth and economic development.
Bruce Lee [former President and CEO, Fifth Third Bank, Northwestern Ohio] and I talked about putting together a roundtable group of 15 or 20 business leaders to reach a consensus on economic issues and development and then go public on different issues affecting business. We felt there was a need for this type of unified voice. When the RGP came along to hopefully fulfill this role, we were very enthusiastic about it.
TBJ: What is the number one thing that you personally would like to accomplish?
JS: Increasing the level of regionalization and job creation in northwest Ohio. I’ve been here my whole life and I’m not going anywhere – I want to see this town prosper. Any good paying job coming to this area is something we all need to encourage.
TBJ: Please identify a community organization that needs more support.
JS: All of the civic and charitable organizations need more support in many ways. Supporting groups like the United Way, Toledo Museum of Art, Toledo Symphony, and all of the social programs throughout the community is very important.
My wife Yolanda and I are putting together money to endow scholarships at two local high schools and The University of Toledo because education is key to winning the battle. Right now Ohio and Toledo are going the wrong way in the number of individuals with degrees. Only 16 percent of northwest Ohio students complete a two or four year degree. Too many Toledo high school students are not even graduating. We are not going to be competitive unless this changes. I’d like to see significant improvement in the education of our youth. This is probably priority number one.