Sherwin-Williams Signs Project Labor Agreement for HQ Project
The Cleveland Building and Construction Trades Council secured a Project Labor Agreement with Sherwin-Williams to build its new downtown headquarters and suburban research and development facility.
Dave Wondolowski, Executive Secretary for the Cleveland Building and Construction Trades Council, said each project is expected to create about 1,800 jobs for affiliated members of the Cleveland Building Trades.
The PLA took longer to complete than most, he confirmed. While construction has already started on both facilities, Wondolowski kept working to ensure that only union construction workers would be onsite.
“This was a complicated and complex negotiation,” Wondolowski said.
Now with the PLA signed, Sherwin-Williams and its general contractor know there will be no strikes or lockouts; there will be standardized work schedules and payment arrangements, a clear dispute resolution procedure in place; and ready access to licensed, highly skilled construction workers. The agreement also goes a long way to ensure the project is done on time and meets other construction goals.
A Cleveland-based company since its founding in 1866, Sherwin-Williams announced in September 2019 that it would conduct a nationwide search to choose the location for its new corporate headquarters, as they did not want to make a significant investment to expand and update their current 90-year- old facility.
City and state leaders worked with Sherwin-Williams and proposed an incentive package that no other city was willing to match. Then Cleveland Mayor Frank Jackson admitted the package offered by the city was the largest financial incentive presented during his tenure as mayor.
By late February 2020, the paint and coatings giant announced it would remain in northeast Ohio, and unveiled The Building Our Future project, which represents a minimum investment of $600 million in a new global headquarters located in downtown Cleveland and a Research and Development Center located in Brecksville.
“The city would have had a noticeable loss of revenue if Sherwin-Williams had chosen to leave Ohio,” said Wondolowski. “This project preserves that revenue and also creates good paying construction jobs at both sites.”
Preliminary site plans were released in February 2021, and on Oct. 22, 2021, ground was broken for the $250 million Research and Development center, located at the 119-acre site of the former Brecksville Veteran Affairs hospital.
The Global Research and Development Center will serve as the corporate anchor for a new mixed-use development project. About 900 employees will work out of this complex. The facility will be located just 18 miles south of the new downtown headquarters.
The Research and Development Center will be responsible for product development, coatings research, color technology and process engineering.
A virtual groundbreaking ceremony was held for the headquarters project in late January.
Located just west of Public Square between St. Clair Avenue and Superior Avenue, the new global headquarters will be approximately 1 million square feet. It will consist of three parts: Office tower, pavilion and parking garage.
Once complete, the $300 million, 36-story headquarters tower will be one of the tallest buildings in downtown Cleveland. The parking garage includes approximately 920 spaces with five levels above grade and one basement level. The pavilion will be the point of visitor entry and feature Sherwin-Williams’ Center of Excellence and a place for learning and development.
An estimated 3,100 employees will work out of the downtown location.
Sherwin-Williams stated it will add a minimum of 400 jobs at these new facilities over time, an increase of 11 percent to the company’s current local workforce. Many of these jobs will include professional staff, engineers and chemists.
Pickard Chilton Architects, Inc. designed the plans for the global headquarters, while HGA Architects and Engineers, LLC designed the Research and Development Center.
Welty Gilbane, a joint venture, is the construction manager.
According to the Sherwin-Williams website, work on both facilities is expected to wrap up by the end of 2024.