Cleveland Set to Shine In Hosting 2022 NBA All-Star Game

Key Economic Insights

• Global: Direct economic harm caused by the Omicron variant of COVID-19 in highly vaccinated countries appears so far to be relatively modest and short-lived.
• U.S.: CPI registered a 7.5% annual gain in January, while PPI rose 9.7% on year-on-year basis. Minutes show Federal Reserve ready to raise rates, shrink balance sheet soon.
• Ohio: Ohio new business creation reached a record 197,010 in 2021. Positive economic impact from Bengals Super Bowl run. NBA All-Star 2022 in Cleveland to reach fans in 215 countries and territories in a record 60 languages.

Global Insights

The U.K. economy grew 7.5% in 2021, the fastest rate of growth since the 1940’s. The Bank of England now expects inflation to peak at 7.2% in April and has imposed back-to-back interest rate hikes for the first time since 2004. The Bank also slashed its GDP growth forecasts last week, cautioning that the impact of inflation means the economy is likely to grow 3.75% in 2022 instead of the 5% it previously projected.  German industrial production slowed in December following supply chain disruptions and a drop in construction spending at the end of 2021. Full-year production in 2021 ended 3.0% higher than in 2020, but remained 5.5% lower than pre-pandemic (2019).  Nearly 62% of the global population has received at least one dose of a COVID-19 vaccine.

U.S. Insights

The U.S. labor market continues to show signs of recovery as unemployment claims fell for a third consecutive week. U.S. small business confidence fell to an 11-month low in January amid persistent worker shortages and higher prices for materials according to the NFIB Small Business Optimism Index. The University of Michigan’s Consumer Sentiment Index fell to a preliminary reading of 61.7 in February, reaching its worst level in a decade and declining 8.2% from last month and 19.7% from February 2021.  Nearly 76% of the U.S. population has received at least one dose of a COVID-19 vaccine, and over 64% is fully vaccinated.

U.S. inflation continued to accelerate in January, with the CPI registering a 7.5% annual gain, the fastest annual rise since 1982. Used-car prices continued to be the main driver of inflation, rising 40.5% in January year-over-year. Core CPI rose by 6.0% in January over last year, also marking the biggest jump since 1982.  Consumers ended 2021 with record levels of debt, leading into a year in which interest rates are expected to rise substantially. Total U.S. consumer debt at the end of 2021 came to $15.6T. The quarterly rise in Q4 was the largest since 2007, and the annual gain in 2021 was the largest on record dating back to 2003.

Ohio Employment & Economic Insights

Ohio set an annual record for new business creation in 2021, breaking 2020’s previous record. The total new business filings in 2021 was 197,010, a 15% increase over 2020’s record of 171,073.  Weekly jobless claims declined for the fourth straight week in Ohio. Ohioans posted 9,719 initial jobless claims for the week ended Feb. 5, down from 10,313 from the prior week.  Over 7.2M Ohioans have started the COVID-19 vaccination process.

A new Ohio Battery Supply Chain Opportunities report highlights Ohio’s unique position to become an industry leader and hub for advanced technologies that can reduce emissions and innovate the automotive industry. Ohio has current initiatives aimed at building an auto supply chain that capitalizes on lithium-ion battery manufacturing, such as the GM/LG Energy (Ultium Cells) Lordstown investment, and other facets of EV development.

Sidney Ohio Industrial Park has been deemed among Ohio’s top sites for economic development after receiving authentication from JobsOhio through its SiteOhio program. The authenticated status ensures a new company the site is free of any detriments that may slow or stop development.

While local businesses report a positive economic impact from Bengals Super Bowl run, Cleveland is looking ahead to NBA All-Star 2022, which will reach fans in 215 countries and territories in a record 60 languages.

Ohio Company News

• Rumpke Waste and Recycling is investing $50M in a new Columbus recycling facility. The site will have 60 employees who will transfer from Rumpke’s other Columbus location. Site work will start this year, with construction starting in 2023 and operations beginning the following year.
• Tosoh America is seeking approval to expand its facility in Grove City, effectively doubling its current facility space. The company wants to expand their existing space by another 81,000 SF, investing $20M into the location and creating 50 additional jobs.
• Forney Industries invested over $250,000 in initial infrastructure to relocate from Tipp City to Vandalia, doubling their local footprint to an 80,000 SF warehouse.
• Marias Technology will open a 4,000 SF satellite office in Sidney to complement its corporate HQ in downtown Covington. The company will initially employ 10 to 15 people at the new office.
• AdopTracell was awarded $150,000 for the development and commercialization of a treatment for reversing autoimmune type 1 diabetes.
• Ceraxis Health was awarded $150,000 for the development and commercialization of a symptom tracking system for people living with Parkinson’s disease.
• DasiSimulations was awarded $150,000 for the development and commercialization of a software as a service, fully automatic, artificial intelligence-driven 3D modeling system to help surgeons in aortic valve replacement surgeries.
• Datirium was awarded $150,000 for the development and commercialization of a Scientific Data Analysis Platform to help researchers perform routine analysis with automated quality control.
• DialGuide was awarded $100,000 for the development and commercialization of an AI-enabled digital VP of Sales, enabling pre-call preparation, real-time coaching, and post-call feedback and training for sales teams.
• HDO Health was awarded $150,000 for the development and commercialization of a junctional tourniquet designed to stop bleeding more quickly and effectively in trauma environments.
• Babcock & Wilcox Enterprises acquired Canadian manufacturer Fossil Power Systems to expand its environmentally sustainable technologies.
• Central Ohio Technical College will offer its first-ever bachelor’s degree program in an effort to help meet growing demand for medical sonographers.
• The Centers for Medicare and Medicaid Services authorized a new quality initiative to provide $34.7M in state and federal funds to the University of Toledo Medical Center to enhance patient care and improve patient outcomes.

Resources

• JobsOhio’s information about Open, Secure Supply Chains in Ohio