Corporate Investments Continue to Pour into Ohio

Key Economic Insights

• U.S.: 390,000 jobs were added in May; U.S. unemployment rate remained at 3.6%.
• Ohio: Ford announced plans to invest $1.5B and create 1,800 new jobs in Avon Lake to assemble an all-new electric commercial vehicle for Ford Pro customers (debuting mid-decade), along with an additional 90 jobs and $100M investment between Lima Engine and Sharonville Transmission plants.

U.S. Insights

Total nonfarm payroll employment rose by 390,000 in May and the unemployment rate remained at 3.6%. The labor force participation rate was little changed during the month at 62.3%. Average hourly earnings for all employees on private nonfarm payrolls rose 0.3% to $31.95/hour and have increased by 5.2% over the last 12 months. U.S. job openings decreased by 455,000 to 11.4M in April 2022. Quits remained relatively unchanged at 4.4M during the month, while layoffs and discharges fell to 1.2M.

U.S. GDP contracted at a 1.5% annual rate in Q1 2022, down from initial estimates of a 1.4% contraction.  ISM Manufacturing PMI rose 0.7% to 56.1% in May, marking the 24th consecutive month of growth in the manufacturing sector of the U.S. economy. ISM Services PMI fell 1.2% to 55.9% in May but remained in growth territory. Durable goods orders rose 0.4% in April, continuing momentum from the 0.6% gain in March. Core capital equipment orders rose 0.3% during the month. U.S. factory orders rose 0.3% following an advance of 1.8% in March.

U.S. consumer confidence eased modestly in May, with The Conference Board’s Consumer Confidence Index falling to 106.4, down from 107.3 in April. Consumer spending in Q1 was revised higher to 3.1%, up from initial estimates of a 2.7% increase. Corporate profits fell at a 2.3% rate in Q1, marking the first decline in five quarters. Personal incomes increased 0.4% in April, with disposable personal income (DPI) increasing 0.3% and personal consumption expenditures (PCE) increasing 0.9% during the month. The PCE price index, the Federal Reserve’s preferred gauge on inflation, increased 0.2% in April. Excluding food and energy, the PCE price index increased 0.3%.

Ohio Employment & Economic Insights

Ohio’s unemployment rate fell 0.1% to 4.0% in April 2022, the lowest level since June 2019. Nonagricultural wage and salary employment in the state increased 9,500 over the month, and the labor force participation rate increased to 61.8%. 15,488 new businesses were created in Ohio in April 2022. A total of 65,884 new businesses have been created in 2022 so far, averaging 16,471 per month.

Six economic development projects received approval for assistance from the Ohio Tax Credit Authority during their monthly meeting in May. Collectively, the projects are set to create 1,281 new jobs and retain 747 jobs statewide and are expected to result in more than $91.7M in new payroll and spur more than $185M in investments across Ohio.

25 Ohio-based companies were included in Fortune Magazine’s 2022 Fortune 500. Ohio ranks #5 in the U.S. for the most HQ companies on the list. Multiple Ohio companies ranked among the Fortune 100, including Cardinal Health (#15), Marathon Petroleum (#19), Kroger (#21), Procter & Gamble (#47), Progressive (#79), and Nationwide (#80).  NASA (#4), Sherwin-Williams (#20), Cleveland Clinic (#60), Amgen (#72), Progressive (#77), and Cincinnati Children’s (#89) were recognized in Forbes list of America’s Best Employers for New Grads.

A total of 33 Ohio colleges and universities were designated as Collegiate Purple Star campuses, which recognizes public and independent colleges and universities in Ohio that are supportive and inclusive of military-connected students. Ohio is the first state in the nation to offer these designations.  Nearly $100M in state funding is now available as part of the second round of the Transformational Mixed-Used Development Program. The first round of support awarded as part of the program included 13 projects that are expected to result in more than $2.1B in new Ohio payroll and $1.4B in new investments across the state.

Ohio Company News

• Ford will create 1,800 new jobs at its Ohio Assembly Plant in Avon Lake as part of a $1.5B investment to build an all-new commercial electric vehicle. An additional 90 jobs and $100M investment between Lima Engine and Sharonville Transmission plants were also announced.
• Cleveland Clinic revealed details of a $1.3B capital investment, including the addition of 2,000 new jobs at a new 1.0M SF Neurological Institute, the expansion of the Cole Eye Institute, and significant expansion of research facilities at the Cleveland Innovation District.
• Lordstown Motors closed a deal to sell its 6.2M SF factory in Lordstown to Foxconn for $230M. Following the acquisition, Fisker intends to build its second electric vehicle, the Pear, at the factory.
• Intel selected four Ohio-based companies to manage excavation work for its two semiconductor fabs in Licking County. The project will employ up to 7,000 during construction.
• Google opened a new Google Cloud region in Columbus, the second in the Midwest and 10^th in the U.S., bringing customers better speed and availability of its cloud applications.
• TJX expects to create 820 full-time positions, generating $51.7M in new annual payroll, as a result of the company’s project in Union.
• Charles River Labs will add 500 jobs and retain 1,070 with a $212.5M expansion of its facility in Ashland.
• AmplifyBio expects to create 263 full-time positions, generating $24.1M in new annual payroll and retaining $7.8M in existing payroll, as a result of the company's $134M expansion project in New Albany and West Jefferson.
• Magna will spend $6M to expand its Columbus manufacturing facility, adding 224 jobs and retaining 390.
• Kroger will bring 200 jobs to Central Ohio with the addition of a new 61,000 SF spoke facility.
• Cardinal Health will add 100 jobs with the addition of a 208,000 SF distribution center in Grove City.
• Hillman expects to create 60 full-time positions, generating $6M in new annual payroll and retaining $14M in existing payroll, as a result of the company’s new $3.8M project in Forest Park.
• GA Telesis expects to create 50 full-time positions, generating $3M in new annual payroll, as a result of the company’s new aircraft engine overhaul and repair joint venture with ATSG in Wilmington.
• Boston Retail Products expects to create 45 full-time positions, generating $2.3M in new annual payroll and retaining $1.2M in existing payroll, as a result of the company’s new project in Ravenna.
• Omnova Solutions expects to create 43 full-time positions, generating $4.7M in new annual payroll and retaining $35.4M in existing payroll, as a result of the company’s expansion project in Beachwood.
• Velocys and its development partner will invest $8.5M to expand into a new 52,000 SF facility in Union County. The new plant will add 19 jobs.
• Attero, India’s top e-recycler, plans to spend $1B in expansion over the next five years, including a facility in Mahoning County.