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July 01, 2016 02:00 AM

Tire technology: Akron remains a hub for tire innovation

Dan Shingler
Crain's Akron Business
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    Akron. In Latin, it means “pinnacle of polymer science.”

    OK, that's a lie.

    But for much of the last century and continuing today, the city's name has been synonymous with rubber, plastics and the science behind the polymers that make such materials effective, cheap and abundant. It's a field of science and endeavor that the city continued to nurture, decades after the tire-making jobs that put Akron on the map were gone.

    The old rubber industry left Akron with some substantial assets in terms of world-leading companies that call the city and region their home, and two major universities that draw students from around the globe to their expertise in polymer science—the University of Akron and Case Western Reserve University in Cleveland.

    Some say the region is the Silicon Valley of polymer science. “That's exactly the reference I make all the time—Silicon Valley,” said Chris Murphy, vice president and chief innovation officer for specialty polymer materials company PolyOne, located about an hour from Akron, just west of Cleveland.

    Murphy and others say that the region achieved its prominence in the polymer science field similar to the way that Silicon Valley developed its reputation in computer science—by having a core group of companies that worked closely with universities to develop not just the science itself, but also a critical mass of knowledge, business endeavors and technical people who provide the work force that drives it all forward.

    Luis Proenza knew of the region's strength in the field when he took over as the University of Akron's president in 1999—a school long known around the world for its expertise in polymer science. But when he first got to the school, local and state policymakers needed an education, he said, and the university gave it to them. One of the first things the school did under Proenza was to take stock of the region and state's polymer science assets.

    “We calculated the annual shipment of polymer products at about $50 billion, and Ohio was, I believe, the largest employer in terms of polymer-related jobs in the country, Proenza said.

    While everyone knew about how Akron had lost most of the jobs once provided by four big rubber companies, it had gone largely unnoticed that the city and surrounding area had become home to about 1,800 other companies, many of them small, working in rubber, plastics and related fields.

    “Nobody realized that, prior to that,” Proenza said.

    A Goodyear Engineer performs his work.

    Pushing polymers

    The school's research helped convince those in Ohio's state government to fund more efforts aimed at developing the polymer science field, he said. It spurred the formation of entities such as the industry group PolymerOhio, and it also got existing state economic development efforts more focused on the sector, Proenza said.

    But is Akron and the “polymer valley” region around it holding on to its position as a world leader in polymer science? There have been setbacks, most notably at the University of Akron. The school regularly competes with the University of Massachusetts for top honors in polymer science.

    Akron U. has seen troubles in recent years and is bracing for a 9 percent drop in overall student enrollment and a 23 percent drop in freshmen enrollment this year. But like many schools with a technical specialty, Akron has a bit of a split personality. It has been largely a commuter school for most of its general, non-technical programs, but it draws students internationally for its vaunted polymer science degrees.

    Students from around the world, who are often less price sensitive than local students, continue to flock to the school's polymer science program, said Eric Amis, dean of Akron's College of Polymer Science and Polymer Engineering. That's especially true of the college's post-graduate programs, he said.

    “Whenever I'm in (South) Korea, they know about the University of Akron—and it's the same when I go to China,” Amis said. “So we have a large graduate program—about 350 students. About 125 of them are master's students and the rest are Ph.D. students,” he said.

    And the companies that work with the university say they have so far seen no reduction in output from the school, in its number of graduates, the quality of their education or the research that the university conducts.

    “I don't know what the future holds, but at this point in time it has not impacted our ability to get qualified folks. We're fortunate to have an early indicator with the interns and co-ops ... and so far I have not seen (a negative impact). Our co-op program is still strong and we feel good about that,” said Joe Zekoski, Goodyear's senior vice president and chief technical officer.

    “I haven't seen any decline in polymer science there, I think that's holding pretty steady,” agreed David Zanzig, the company's director of global materials science.

    Other companies, including PolyOne and Akron-based A. Schulman, echoed those sentiments. But Goodyear might know better than most how the school is doing—it sponsored and works closely with the University's Goodyear Polymer Center, which opened in 1991.

    A hotbed for jobs

    Students don't just come to the school for the education, either. Some come, in part, because they also know that Northeast Ohio is a hotbed for technical jobs in polymer science and related fields.

    Amis said his students have little to no problems finding jobs, especially in Northeast Ohio.

    “Certainly, this spring, we're not having any trouble with students getting offers. They're getting four or five offers—which they like, because it gives them a lot of choices,” he said. “I always say that we have "essentially' a 100 percent placement rate—because I know if I just say 100 percent, someone will find somebody ... but our students continue to do very well.”

    That mix of students and available jobs is the symbiotic, chicken-and-egg relationship that most say makes the region's polymer science work and continue to succeed. It's always a struggle for a region to foster a new industry before there is a critical mass of both industry and educational institutions working together—but Akron already has such a structure in place.

    “There are research institutes, government agencies, associations, there really is a great network here, and it makes a lot of sense to be here if you're in the polymer industry,” said Bernard Rzepka, A. Schulman president and CEO.

    That's why when Schulman built a new headquarters in 2013, or when it consolidated many of its corporate services this year, it didn't even consider another location.

    “We've made a very conscious decision to stay in this area and to reinvest in this area, primarily because of Akron U. But not just because of Akron U ... there are so many benefits to being here, I could talk for probably an hour about that,” Rzep-ka said.

    Like his counterparts at Goodyear, PolyOne and other companies, he said the region is the best place for his company because of the available technical work force, the opportunity to conduct research at both the University of Akron and Case Western Reserve, and because there are so many other companies located in the region that can be potential partners on technical and business initiatives.

    Even financial subsidies would be unlikely to cause A. Schulman to move, Rzepka said.

    “If someone were to say "come here, you'll be tax free,' we would struggle with it. It's good on the P&L tomorrow, but you don't have the equated people ... and you don't have all the other companies around you. You lose part of your future if you don't have those things,” he added.

    Center for technology

    Such attitudes don't surprise Goodyear's Zekoski.

    “We see that a lot of competitors starting R&D organizations in this area—even those that aren't headquartered here—we assume for these same reasons,” he said.

    In the past 10 years, Kenda Tire, Triangle Tire, Nexen Tire Corp. and Giti Tire Group have opened technical facilities in Akron or within close proximity, joining the half-dozen or more that already had local presences. In 2012, Bridgestone made one of the biggest all-time investments, when it opened its new $100 million Americas Technical Center in Akron.

    All of them are here for the region's technical talent, Zekoski said.

    But what about the future? The U.S. tire and rubber business is not known as a high-growth industry, and much of the U.S. plastics industry has clustered around the Gulf Coast region, where many of its raw materials are produced.

    At the same time, the industry's technical needs have increased—medical devices, aerospace applications and vehicle makers seeking to make cars and trucks lighter and more efficient are constantly demanding more from the plastics industry. PolymerOhio Executive Director Bruce Fawcett said while Houston might lead the nation in plastics production, Akron is still the major center for research and development.

    Fawcett's group is headquartered just outside of Columbus, Ohio, but he said Akron remains a prime spot for his industry.

    Akron's polymer industry might be getting another boost as well, thanks to a shale-gas drilling boom that's erupted in Eastern Ohio.

    Royal Dutch Shell announced in June that it will build a $4 billion ethane cracker about an hour's drive to the east—something many said will spur more related companies to locate operations near the newfound cheap supply of raw materials.

    “Ethane, a natural gas liquid, is the U.S. chemical industry's main feedstock,” the American Chemistry Council said, applauding Shell's big announcement on June 7.

    Goodyear's tire plant, which opened in 1916, was transformed into a technical center in 1978. The facilities were upgraded between 2013 and 2015.

    If the cracker is built and attracts other industry as promised, it could be Akron's second boom in the field of related manufacturing and material science. Amis, for one, is hopeful—and has long wanted to see a facility like Shell's open in the region.

    Right now, he said Houston is the biggest manufacturing center for the U.S. plastics industry—but a cracker, combined with expertise from the Akron area and the city's university, could change that.

    “To have your raw materials closer to your production and processing, that would be fantastic,” Amis said of the potential new cracker.

    “If the raw materials were closer, we might be able to even overcome that one,” he said of Houston's current dominance.

    PolyOne's Murphy is also optimistic that the cracker will give his industry another boost in the region.

    “We use a lot of polyethylene,” Murphy said. “It (the cracker) continues to solidify that this is a center for the industry.

    “The more infrastructure you put in the region, the stronger the industry gets. And it will help to continue to attract new talent as well.”

    Even without the cracker, those working in polymers in and around Akron said the city is well positioned to retain its important role in the industry.

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