Inflation Reduction Act & CHIPS Act: Ohio as the Optimal Hub as U.S. Increases Global Competitiveness

In an effort to bolster U.S. competitiveness amid global supply chain shortages and shifting geopolitical tensions, the U.S. Congress passed two sweeping new laws in 2022: the Creating Helpful Incentives to Produce Semiconductors Act (CHIPS Act), which provided $52.7 billion to expand domestic semiconductor manufacturing, R&D, and workforce development, and the Inflation Reduction Act (IRA), which offered tax incentives for investment in clean energy, electric vehicles, and batteries. Companies eager to maximize the benefits have been finding fertile soil in Ohio, thanks to several key advantages:

•  A robust ecosystem in proximity. From aerospace and automotive to biohealth and advanced manufacturing, Ohio boasts a wide array of industry clusters, each of which is a self-sustained ecosystem comprising manufacturers, suppliers, service providers, and relevant educational institutions. This comprehensive approach ensures that businesses can find partners and collaborators across the entire value chain. The availability of a ready-made network of suppliers, distributors, and logistics providers allow companies to reduce disruptions, optimize inventory levels, and ensure just-in-time deliveries, all of which contribute to operational efficiency and cost savings.
  
  With the help of JobsOhio, the state’s private nonprofit economic development corporation, Ohio has become home to a vast network of global manufacturers including Honda, Boeing, GE Aviation, AMD Plastics, Vertiv and Parker Hannifin. Intel’s decision to build a $20 billion, 1,000-acre chip manufacturing facility served to underscore the benefits of the region; the chip-maker’s investment, the largest in Ohio’s history, will create 7,000 new construction jobs and, once the plants are built, 3,000 full-time positions.

•  Deep well of diverse talent. Ohio boasts the country’s seventh-largest population and its third-largest manufacturing workforce, offering companies an abundant and industrious talent pool, from tech-savvy coders to computer numerically controlled (CNC) operators, from engineers and scientists to those in professional services and healthcare. Indeed, workforce scalability was named as a major factor in Honda’s decision, along with LG Energy Solution, to establish a joint venture company in Fayette County to produce lithium-ion batteries to power Honda and Acura EV models.
  
  Further, Ohio’s educational ecosystem includes some of the nation's top universities and research institutions, which have cultivated a diverse talent base spanning sectors from manufacturing and technology to finance and healthcare. The state's commitment to education and workforce development ensures that businesses have access to a skilled, adaptable, and innovative workforce ready to meet the demands of a rapidly changing global economy.

•  Easy access to world-class R&D. In Ohio, R&D is facilitated within an array of connected incubators, universities, and private corporations—robust networks that channel investment, streamline invention, prepare workforces, and accelerate commercialization. The state is home to renowned institutions like the Ohio State University, Case Western Reserve University, University of Akron, and the University of Cincinnati, which are also among the top 100 in the world for patents issued in the U.S. to protect new inventions.
  
  Recognizing the evolving demands of the modern workplace, many of Ohio's educational institutions have forged partnerships with local industries, collaborating to ensure relevant curriculum that integrates the latest technological advancements and industry best practices; students are, therefore, not only academically prepared but also industry-ready upon graduation. When French battery systems maker Foresee Power chose Ohio for the company’s U.S. headquarters, CEO Christophe Gurtner pointed to the state’s “ecosystem of potential supply chain partners, academic partners and the right fit for workforce” as key advantages.

Add to the above a resilient, diverse economy, business-friendly taxes and a low cost of living and it’s easy to see why Ohio is not just the heart of America in terms of geography, but increasingly so in economic dynamism and opportunity. Its strategic blend of location, infrastructure, economic incentives, and skilled labor makes it an attractive proposition for global companies of all sizes. And as the business landscape continues to evolve, Ohio stands ready to welcome and nurture global corporations, cementing its position as a premier business destination.

As you can see, economic development and the issues surrounding it can get extremely complicated. JobsOhio's primary role is to serve as a guide through these murky waters for long-term success and prosperity for our partner companies and all Ohioans. To learn more about how JobsOhio can help your business, contact Alina Harastasanu, Director of European Business Development, at harastasanu@jobsohio.com or +1 (614) 301-3536.