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News & Press

Innovation Continues to Thrive in America’s 7th Largest State

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

Mon May 09 2022
Economic Insights graphic

Key Economic Insights

  • U.S.: While non-farm payrolls increased 428,000 in April and unemployment stayed at 3.6%, GDP contracted by 1.4% in Q1 2022.
  • Ohio: 81 of 88 counties had lower (or same) unemployment rates in March 2022 (compared to February 2020 before the full onset of the pandemic). JobsOhio is the Gold Award winner in the 20th Annual American Business Awards for Nonprofit (Large) Organization of the Year.

U.S. Insights

U.S. economic activity contracted at an annual rate of 1.4% in Q1 2022, according to BEA.  Payroll employment has increased by 428,000 in April, matching an upwardly revised March and beating expectations. The unemployment rate remains unchanged at 3.6%, missing the expected 3.5%. The labor force participation rate fell to 62.2% in April, the lowest in three months. Employment costs jumped 1.4% in Q1, the most on record for the start of the year, and 4.5% above last year. Job openings and quits both set new records in March, with openings rising 0.2M to a seasonally adjusted 11.5M and quits increasing to 4.5M.

The Federal Reserve raised short-term interest rates by 0.5% in its attempts to address rapid inflation, making it the most aggressive one-time rate hike since May 2000.  ISM’s manufacturing index data showed that although manufacturing continues to grow, the pace is slowing, with a 1.7 point drop to 55.4% in April. ISM’s services index declined to 57.1%.  Productivity dropped in Q1 by an annualized 7.5%, the most since 1947, while unit labor costs jumped 11.6% in the same period, resulting in a 7.2% increase over the past four quarters, the highest rate since 1982. Factory orders and core capital goods orders both doubled expectations in March, rising 2.2% and 1.0%, respectively. 

Personal consumption expenditure prices, excluding food and energy, rose 5.2% in March year-over-year, just below February’s 5.3% reading. Including food and energy, the PCE index jumped 6.6% in March, the fastest pace since 1982.  Consumer confidence decreased slightly in April; the Conference Board’s index decreased to 107.3 from a revised 107.6 in March. According to the University of Michigan’s Survey of Consumers, consumer sentiment in April ticked up marginally to 65.2 from March’s 10-year record low of 59.4 – still the second lowest reading for the past decade.  Construction spending rose only 0.1%, below expectations. As mortgage rates increase and prices reduce affordability, new home sales dropped 8.6% to a seasonally adjusted annual rate of 763,000 in March.

Ohio Employment & Economic Insights

Five projects received approval from the Ohio Tax Credit Authority during its monthly meeting in April. Collectively, the projects are set to create 733 new jobs, retain 1,344 jobs, and result in more than $563M in investment across the stateNew Business creation in Ohio continues to show strong signs of growth, despite rising inflation and supply chain disruptions faced by businesses globally. There was a total of 19,337 new business filings in March 2022, a 33.4% increase from February. 50,396 new businesses were created in Q1.

JobsOhio is the Gold Award winner – the highest scoring entry - in the 20th Annual American Business Awards for Nonprofit (Large) Organization of the Year.  JobsOhio has announced the launch of AccelerateOhio, a new collaborative initiative with a dozen partner organizations aimed at bringing together advanced mobility innovators, manufacturers, and research to guide, build, and nurture the emerging Advanced Mobility industry across the state. 

The Ohio Department of Development is allocating over $60M in brownfield redevelopment to help local communities clean up or assess 78 contaminated properties in 35 counties.  Acknowledging the region’s incredible growth as a major startup scene, TechCrunch Live is hosting a City Spotlight in Columbus on June 1. DiversityInc’s 2022 Top 50 Companies for Diversity has recognized KeyBank (18), Proctor & Gamble (48), and Owens Corning (noteworthy) in Ohio.

Ohio Company News

  • SEMCORP Advanced Materials Group announced it will establish a manufacturing facility in Sidney, creating nearly 1,200 jobs with $73M in annual payroll and $916M in capital investment.
  • Loc Performance Products has committed to 250 new jobs at its St. Mary’s manufacturing facility with a $40M investment.
  • Infinity Labs will create 160 new jobs and spend $17.3M establishing a new HQ in Dayton.
  • Apogee Engineering plans to hire 150 additional personnel along with a $1.2M investment to expand it Fairborn office to at least 20,000 SF.
  • Proctor & Gamble will add 135 jobs and retain 749 at its manufacturing plant and warehouse in Lima with $501M in capital investments.
  • Prudential Cleanroom Services has purchased a 68,000 SF warehouse in Heath to service the future Intel fabs in Ohio. The high-tech laundry service will employ up to 80 with salaries as high as $100,000.
  • CertainTeed Architectural will create 38 jobs in a $2.4M expansion in Strongsville.
  • Noble County and Crock Construction have announced plans for a $4.8M industrial park in Caldwell.
  • Access Envelope has relocated to a 20,000 SF building in Middletown with plans to add 12 new jobs and invest $150,000 to expand products and services.
  • The NASA Glenn Research Center in Brook Park has opened a new $44.1M, 60,000 SF, office building.
  • Akron Fusion Ventures is rebranding to Interstate Fusion Ventures and launching a second $40M fund.
  • Girl Scouts of Ohio’s Heartland will build a $16M STEM Leadership Center in Galloway.
  • Hall of Fame Resort & Entertainment Company in Canton has secured $7.2M in financing to build a 100,000 SF Center for Performance.
  • XII Medical has closed $30M in Series A funding with participation from Ohio organizations Cleveland Clinic, JobsOhio Growth Capital Fund, and CincyTech.
  • Kroger announced the second year of its Go Fresh and Local Supplier Accelerator designed to enhance the selection of local items carried in stores.
  • Long Ridge Energy Terminal became the first power plant in the U.S. to burn fuel partially composed of hydrogen. Monroe County facility burns natural gas with a 5% hydrogen blend and plans to burn 100% hydrogen by 2030.
  • The U.S. Air Force has conducted the first remotely piloted eVTOL flight at its Agility Prime test hub in Springfield.
  • The Ohio Small Business Administration has named Michelle Allen, founder of the Columbus confectionary boutique Mmelo, as its Small Businessperson of the Year for 2022.