News & Press
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.
A recent analysis from The Zebra ranked Columbus (#3) and Cleveland (#9) among the 10 best cities for entrepreneurs in 2022, focusing on data including VC funding, SBA 7(a) funding, and state/corporate income tax rates. Battelle has achieved its goal of impacting 1 million students annually through STEM education through philanthropy, STEM networks, supporting education at Battelle-managed labs, and growth of the Metro Early College High School in Columbus.
Ohio has leveraged $1.8B in Infrastructure Investment and Jobs Act funding for 1,665 federal highway and bridge improvement projects in FY2022. Five entities in Ohio have received a total of $230M in New Market Tax Credits from the U.S. Department of the Treasury to revitalize low-income and distressed communities. The USDA’s Business and Industry Loan Guarantees program and its Community Facilities Direct Loans and Grants program have awarded three grants and two loans totaling more than $6.1M to three communities in Eastern Ohio to help fund rural development initiatives. Four Ottawa County businesses have received JobsOhio Inclusion Grants (JOIG)s, including Pristine Marine, Lateral Gig, Quikstir, and Legacy Canvas Unlimited.
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.