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Black Tech Week Coming to Ohio

This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.

Tue Jul 12 2022
Economic Insights graphic

Key Economic Insights

  • U.S.: Unemployment rate (3.6%) and labor force participation rate (62.2%) remained steady in June. Consumer sentiment fell to the lowest reading on record.
  • Ohio: JobsOhio 2021 results break 11-year records with more than 29,104 new jobs created and over $6.9B in capital investment in Ohio. Black Tech Week to take place in Cincinnati July 18-22.

U.S. Insights

Total nonfarm payroll employment rose by 372,000 in June, and the unemployment rate remained at 3.6%. Private-sector employment has recovered the net job losses from the pandemic and is 140,000 higher than in February 2020. The labor force participation rate, at 62.2%, was little changed over the month and remains below February 2020 levels.  U.S. job openings fell 6.9% to 11.3M in May. Hires were little changed at 6.5M during the month, and quits remained near 4.3M. Weekly jobless claims rose to 235,000 for the week ended July 2. Continuing claims rose to 1.38M, remaining near historic lows.

U.S. GDP for Q1 of 2022 was revised to -1.6% from preliminary estimates of -1.5%. Goldman Sachs revised its Q2 GDP estimate to 0.7%, down from previous estimates of a 1.9% increase.  The manufacturing and services sectors of the U.S. economy marked a 25th consecutive month of expansion in June. ISM Manufacturing PMI registered 53, down 3.1% from May. ISM Services PMI registered 55.3, down 0.6% from May.  Durable goods orders rose 0.7% in May, a stronger than expected reading that marks the seventh monthly gain in the last eight months. Shipments of manufactured durable goods have advanced in 12 of the last 13 months. U.S. factory orders increased more than expected in May, rising 1.6%. Core capital goods orders, a closely watched proxy for business spending, rose 0.5% during the month.

The PCE Price Index, the Federal Reserve’s preferred gauge of inflation, rose at a 4.7% annual rate in May, remaining near multi-decade highs. Headline inflation advanced at a 6.3% annual rate during the month. 

In conjunction with the Federal Open Market Committee (FOMC) meeting held on June 14-15, 2022, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2022 to 2024 and over the longer run. Efforts to fight inflation remain a top priority for the Federal Reserve, and several officials noted the possibility of another 75 bps hike at the next meeting in July.

Disposable personal incomes (DPI) increased 0.5% during the month and personal consumption expenditures (PCE) increased 0.2%.  The Conference Board Consumer Confidence Index decreased to 98.7 in June, down from 103.2 in May. The index now stands at its lowest level since February 2021. The University of Michigan’s Consumer Confidence Index final June reading was 50, falling 14.4% from May to reach the lowest reading on record.

Ohio Employment & Economic Insights

JobsOhio’s 2021 Annual Report highlights the record year for the organization and its network partners. In total, 414 total projects were recorded in 2021, resulting in more than 29,000 new jobs, $1.6B in new payroll and $6.9B of new capital investment.  The Ohio Tax Credit Authority (TCA) approved assistance for two economic development projects in June. The projects are set to create 375 new jobs, resulting in more than $22.9M in new payroll and more than $213M in investment.  Ohio recorded 14,596 new business filings in May. A total of 80,480 new businesses have been created in 2022 so far, averaging 16,096 per month.

Black Tech Week, the Black tech ecosystem building conference being held in Cincinnati, Ohio July 18-22, will include 60+ sessions and presents 50+ tech influencers and minority innovation ecosystem builders.

4 Ohio-based companies (Lithko Contracting, OnPoint Group, Rumpke Waste & Recycling, and Standard Textile) were named among the best managed private companies in the U.S. according to Deloitte’s 2022 U.S. Best Managed Companies list.  Ernst & Young named seven Ohio company leaders as winners of Entrepreneur of the Year 2022: East Central Award. The Ohio winners include 80 Acres Farms (Hamilton); Bold Penguin (Columbus); Brock Air Products (Troy); Cleveland Kitchen (Cleveland); Gathi Analytics (Dublin); Lithko Contracting (West Chester); and T-CETRA (Dublin).

Ohio Company News

  • Pharmavite, manufacturer of the Nature Made vitamin line, will invest $200M and create 225 new jobs at a 250,000 SF manufacturing facility in New Albany.
  • Forsee Power will establish its North American HQ and Gigafactory in Hilliard, resulting in a $13.2M investment and the creation of 150 new jobs.
  • PTTGC America will locate a new plastic recycling complex at the Solid Waste Authority of Central Ohio (SWACO) Green Economy Business Park in Grove City.
  • Kroger announced a 35,000 SF expansion at Tamarack Farms Dairy in Newark to support a state-of-the-art aseptic milk line, bringing over 150 new jobs.
  • Steelite International will move its PA-based HQ to Youngstown, bringing 70 employees to the location.
  • Canton Drop Forge will add 70 workers in Perry Township with a $18.5M investment in new equipment.
  • SHARE Mobility closed a $12M Series A round, with plans to add 35 to 75 employees by year’s end.
  • Reliability Inspections announced an investment of over $145,000, creating 3 jobs in Meigs County.
  • Swagelok acquired a new facility in Valley City, marking its 21st location in the Cleveland region.
  • Avery Dennison completed the first phase of a multimillion-dollar investment at its ADX Lab in Miamisburg. The new facility will be a customer-experience center, and home for design and innovation.
  • Owens Corning will acquire Illinois-based Natural Polymers, a manufacturer of spray foam insulation.
  • Google announced it will invest $400,000 in 4 organizations that help underrepresented workers in Franklin County find jobs in skilled trade industries.
  • Electronic Merchant Systems will acquire North Carolina-based Paysley.
  • Meridian Bioscience will be acquired by South Korea-based SD Biosensor and SJL Partners for $1.53B.
  • Brightspeed will deliver access to high-speed fiber optics internet service to over 170,000 residential and commercial locations by the end of 2021 as part of a buildout in 12 counties in Ohio.
  • Drive Capital has raised an additional $1B in new venture funds. The Columbus-based firm has over $2B in assets under management used to invest in midwestern startups.
  • Immuta, a cybersecurity startup expanding in Columbus, is valued at $1B after a $100M Series E round.
  • Centerline Biomedical closed a $33M Series B equity financing round led by Cleveland Clinic.
  • Nikola Labs received an additional $9M in Series A Preferred funding, raising its total funding to $50M.