Columbus, Cleveland Recognized Among Best Cities for Entrepreneurs
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.
Key Economic Insights
- U.S.: CPI rose at a 7.7% annual rate in October; PPI rose at the slowest pace in 14 months. One-third of small businesses report inflation as the most important problem in operating their business.
- Ohio: Nonagricultural wage and salary employment increased by 15,700 in October; unemployment rate rose to 4.2%. A total of 152,204 new businesses have been created in Ohio so far in 2022.
The Consumer Price Index (CPI) rose at a 7.7% annual rate in October, below estimates for 7.9%. Core CPI rose at a 6.3% annual rate, decelerating from 6.6% in September. The Producer Price Index (PPI) rose at an 8% annual rate during the month, the lowest advance in 14 months. Core PPI rose at a 6.7% annual rate, the lowest advance since November 2020. The NFIB Small Business Optimism Index declined 0.8 points in October to 91.3, the 10th consecutive month below the 49-year average of 98. 33% of owners reported inflation as their most important problem in operating their business. The Conference Board Leading Economic Index (LEI) for the U.S. decreased 0.8% in October, the eighth consecutive month of decline.
Industrial production declined 0.1% in October, and manufacturing output advanced 0.1% during the month. On an annual basis, total industrial production in October was 3.3% higher than in 2021. Capacity utilization decreased to 79.9% in October from 80.1% in September, but remains above its long-run average. Durable goods orders rose 1.0% in October and have now advanced over seven of the last eight months. Core capital goods orders, a closely watched proxy for business spending, rose 0.7% during the month.
U.S. retail sales rose 1.3% in October, above estimates for 1.0%. Total U.S. household debt increased by $351B (2.2%) in Q3 2022, according to the Federal Reserve Bank of New York. Balances now stand $2.36 trillion higher than at the end of 2019, before the pandemic recession. Credit card balances increased by $38B in Q3, or 15% on an annual basis, the largest annual increase in more than 20 years. Weekly jobless claims rose by 17,000 to 240,000 during the week ended November 19th; continuing claims decreased to 1.256M.
Ohio Employment & Economic Insights
Ohio’s unemployment rate was 4.2% in October, up from 4.0% in September. Nonagricultural wage and salary employment increased 15,700 during the month and the labor force participation rate decreased to 61.5%, down from 61.7% in September. Ohio recorded 14,037 new business filings in October 2022. A total of 152,204 new businesses have been created year to date, averaging 15,220 per month.
A report from Clean Jobs Midwest highlighted that Ohio clean energy and clean transportation jobs grew by nearly 7% in 2021, with electric vehicle manufacturing jobs leading the advance. The analysis found that Ohio totaled more than 110,000 clean energy jobs in 2021. Columbus has unveiled its first solar powered microgrid - a solar array and battery backup system designed to power the Tussing Water Booster Station in the event of a power outage, replacing the need for diesel generators.
Ohio Company News
- Platinum Healthcare Partners plans to invest $383,000 to expand its services in Washington County, creating 55 new jobs and retaining 20 existing positions.
- Discover will open a customer care center in Whitehall, investing more than $16M with plans to hire 20 within a five-mile radius, promoting high-quality employment.
- Foxconn will invest up to $170M in Lordstown Motors in exchange for stock, becoming its biggest shareholder.
- Medical Mutual of Ohio will move its HQ from downtown Cleveland to Brooklyn, Ohio, relocating all of its staff and totaling more than 900 at the new HQ.
- Oil Well Shares and OYA Renewables have partnered on a joint venture to develop, own, and operate 3 GW of utility-scale solar, wind, and energy storage infrastructure across 1.5M acres of in OH, PA, and WV. The JV is expected to invest $3B over the next 10 years.
- Ohio Intermodal Services plans to move its HQ and depot services to a new $17M, 11,000 SF facility in Columbus, combining locations from Worthington and Hilliard.
- Sherwin-Williams has purchased Specialized Industrial Coatings, a partnership formed by two German companies, for an undisclosed amount.
- Heartland Ventures in Columbus has closed a $52M second investment fund.
- British Airways will begin nonstop service between Cincinnati/Northern Kentucky International Airport and London beginning in June 2023.
- Sun Country Airlines will add twice weekly seasonal flights from the John Glenn Columbus International Airport to Minneapolis-Saint Paul, May 4 through Labor Day.
- BioOhio has relaunched and reorganized as Ohio Life Sciences (OLS), the state association advancing and advocating for the common interests on Ohio’s life sciences community.
- Eikonoklastes Therapeutics, a Cincinnati-based biotech startup developing a first-in-class treatment for ALS, received FDA orphan drug designation for its ET-101 program.
- Angle Health, a digital-first health insurer that focuses on small and growing tech businesses, is expanding to the Cleveland market.
- The 179th Airlift Wing in Mansfield has been selected by the U.S. Department of the Air Force to become the Air National Guard’s first cyberspace wing.
- Ford has selected Rockwell Automation for assembly tooling design and architecture at three of its electric vehicle assembly sites, including Avon Lake.
- Cincinnati Southern Railway has sold approximately 337 miles of railroad to Norfolk Southern, running form Cincinnati to Chattanooga, Tennessee.
- Rudolph Libbe, the construction manager for North Star BlueScope's 660,000 SF expansion project in Fulton County, was announced as the winner of the 2022 Build Ohio Award in the Industrial/Heavy category by the Ohio Association of General Contractors.