Ohio Breaks Record Early for Annual Business Creation
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.
Key Economic Insights
- Global: OECD projects global GDP growth at 5.6% in 2021.
- U.S.: Nonfarm payrolls rose by 210,000, and the U.S. unemployment rate dropped to 4.2%.
- Ohio: Ohio set a record for business filings in a year with more than five weeks left in 2021.
The Organization for Economic Cooperation and Development (OECD) projects global GDP growth at 5.6% in 2021. Consumer price inflation is projected to moderate to near 3.5% by the end of 2022, and ease to 3% in 2023. The U.S., China, and other nations tapped into national strategic petroleum reserves in an attempt to bring down rising prices. Eurozone consumer prices rose at a 4.9% annual rate in November, the fastest annual rise since records began in 1997. China’s factory activity fell into contraction in November, with Manufacturing PMI falling to 49.9.
Nonfarm payrolls rose by 210,000 in November, and the unemployment rate dropped to 4.2%. The labor force participation rate rose to 61.8%. Weekly jobless claims rose to 222,000 for the week ended November 27. Claims dropped to a revised 194,000 during the prior week, below pre-pandemic levels and the lowest level of initial claims since 1969. Continuing claims fell to 1.96M, coming in below 2M for the first time since March 2020.
Ohio Employment & Economic Insights
Cincinnati ranked #8, Columbus ranked #14 and Cleveland ranked #35 for the “ease of doing business” for small and mid-sized businesses in the U.S., according to Arizona State’s Annual Doing Business North America rankings. Five Ohio companies were ranked among the top in the U.S. in Deloitte’s “North America Technology Fast 500” – an annual ranking of the fastest-growing companies in the technology, media, telecommunications, life sciences, fintech, and energy tech sectors.
Ohio scored among the top states for income tax reductions from 2013-2020 according to a recent study. The report highlights $4.4B in reductions to personal income tax enacted from 2013-2020, and notes that there was not a year from 2011-2020 in which lawmakers enacted a net increase in personal income tax revenue.
Positive Company-Specific News
- Sherwin-Williams received final approval on its new 1.1M SF headquarters in Cleveland, allowing construction to begin.
- Amazon announced plans to build two more solar farms, one in Southwest Ohio and one in Northwest Ohio, bringing its total number of renewable energy projects in the state to 16.
- Spirit Airlines is prepping for a major expansion at Cleveland Hopkins International Airport, signing an agreement with the airport that more than doubles its gate and office space.
- Breeze Airways announced new flights to Palm Beach from Columbus.
- KeyBank acquired XUP Payments, a digital B2B payment platform.
- Kroger is partnering with a Dutch farm to produce the world’s first carbon-neutral, cage-free eggs.
- Seal-Tite is investing in retooling and software to meet increased demand; will result in the creation of 80 new jobs.
- A&M Cold Storage and Trailer Leasing will expand its New Bremen facility by 10,000 SF, creating 10 new jobs.
- Nidec Press will open a 12,500 SF office in Dayton. The facility will be a service hub for its global facilities and house a portion of Nidec’s engineering, software controls, human resources, procurement and purchasing staff.
- Andelyn Biosciences, a gene therapy spinoff from Nationwide Children’s, announced plans to open a new lab in Dublin with expectations that its workforce will double to triple in the next 2 years.
- Freepoint Eco-Systems plans to build an advanced recycling facility in Ohio that will convert waste plastic into feedstock for use in the production of prime-quality plastic. Commercial operations are expected to commence in 2023.
- Griid Infrastructure has confirmed plans to go public, with the Cincinnati-based bitcoin mining startup valued at $3.3B.IncludeHealth will partner with Cincinnati-area Christ Hospital Health Network as one of the first systems to offer its virtual physical therapy platform MSK-OS.