Ohio Ranks #2 in Job Creation from FDI + Reshoring
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.
Published: Mon Apr 17 2023
Key Economic Insights
- U.S.: The unemployment rate declined to 3.5% in March. ISM Manufacturing PMI fell to the lowest level since May 2020. Job openings fell below 10M for the first time since May 2021.
- Ohio: Four projects are set to create more than 200 jobs and nearly $56M in investment across the state. Ohio’s real GDP grew 1.5% in 2022 to $638.91B.
Total nonfarm payroll employment rose by 236,000 in March, and the unemployment rate declined to 3.5%. The labor force participation rate rose to 62.6% during the month but remains below pre-pandemic levels (Feb 2020). U.S. job openings decreased by 632,000 to 9.9M in February, the first reading below 10M since May 2021. Hires (6.2M) and total separations (5.8M) were relatively unchanged. Quite rose by 146,000 during the month to just over 4M, while layoffs and discharges decreased by 215,000 to 1.5M.
ISM Manufacturing PMI declined to 46.3 in March, down from 47.7 in February and reaching the lowest level since May 2020. March marks the fifth consecutive month of contraction in the manufacturing sector of the economy. ISM Services PMI registered a third consecutive month of expansion in February, rising to 51.2.
Real GDP was revised to 2.6% for Q4 2022, down from prior estimates of 2.7% according to the third estimate released by the BEA. On an annual basis, Real GDP increased 2.1% in 2022. The Personal Consumption Expenditures (PCE) price index rose at a 5.0% annual rate in February, down from 5.3% in January. Core PCE, the Federal Reserve’s preferred gauge of inflation, rose at a 4.6% annual rate during the month, down from 4.7% in January.
The Conference Board Consumer Confidence Index increased to 104.2 in March, up slightly from 103.4 in February. The University of Michigan Consumer Sentiment Index declined to 62.0 in March, down from 67.0 in February and marking the first decline in the last four months. Weekly jobless claims rose by 18,000 to a total of 228,000 during the week ended April 1. Continuing claims rose by 6,000 to a total of 1.823M. The Labor Department revised jobless claims for the prior week higher from initial estimates of 198,000 to a revised 246,000.
Ohio Employment & Economic Insights
The Ohio Tax Credit Authority approved assistance for four economic development projects in March. Collectively, the projects are set to create 209 new jobs earning $13.4M in payroll, retain 356 jobs, and spur $55.6M in investments across the state. Ohio’s real GDP grew 1.5% in 2022 to $638.91B, up from $629.29B in 2021 and ranking as the #7 largest in the U.S. Ohio’s real GDP increased 21.9% from 2010-2022, outpacing all regional states during this period (IL, IN, KY, MI, PA, WV).
Ohio ranked #2 in the U.S. for total job announcements from reshoring + FDI in 2022, totaling 29,561, representing 8% of the U.S. job announcements in 2022. The latest data report from The Reshoring Initiative found that manufacturing job announcements from reshoring and FDI reached a record high in 2022, totaling nearly 365,000. This was a 53% increase from the prior record set in 2021, largely led by a surge in EV batteries and semiconductor chips combined with a continued trend in a broad range of industries.
Forbes named 11 Ohio companies to its list of America’s Most Innovative Companies; Ohio companies among the top 100 include Cleveland Clinic (26), Progressive (31), Proctor & Gamble (44), Cardinal Health (62), and Cincinnati Children’s (76). The Financial Times has named three Ohio companies to its list of The America’s Fastest Growing Companies; they include Intellinetics (#162 - 69% CAGR), GoSun (#208 – 56%), and Jeni’s Splendid Ice Creams (#340 - 31%). A recent analysis from SmartAsset compared the after-tax income in 76 of the largest U.S. cities and adjusted those figures for the cost of living. Columbus, Cleveland, and Cincinnati all ranked in the top 25 cities where $100,000 goes the furthest. Newsweek named 28 Ohio companies to its list of Americas’ Greatest Workplaces for Women 2023; those companies include AAA Miami Valley, ATALIAN Global Services, AWP, Bath & Body Works, Cardinal Health, Cincinnati Children's Hospital, Cintas, Construction Labor Contractors, Dana, Dealer Tire, Discount Drug Mart, Eaton, Fairfield Medical Center, Fifth Third, FRAM, G&J Pepsi-Cola Bottlers, JOANN, Kettering Health, KeyBank, Mercy Health, Nationwide Children’s Hospital, OhioHealth, Premier Health, Progressive, R+L Carriers, Safelite, Scripps, and TriHealth.
Ohio’s Transportation Budget for the next two years was signed and will take effect July 1. The $13.5B budget includes $360M to dedicated highway safety funding, nearly $7.5B for ODOT to use for state highway improvements, and new measures to target increased safety and transparency of Ohio’s freight shipping by rail. The budget also includes several measures aimed at preparing Ohio for future investment and growth including $30M in Roadwork Development Grants through the ODOD and $10M for a transformative statewide transportation study to help the state identify gaps, prioritize needs, and make actionable recommendations for the future of Ohio’s transportation network.
Ohio Company News
- Middle West Spirits intends to hire 80 as part of a $38.7M expansion in Columbus.
- MAC Trailer Enterprises plans to create 80 jobs as part of an expansion in Mahoning County.
- Berkley Aspire plans to invest $1M into a 11K SF expansion in West Chester, hiring 29.
- Cincinnati Test Systems intends to hire 20 as part of a $4.5M, 27k SF expansion in Harrison.
- Greenwave Technology Solutions has opened a metal recycling facility in Cleveland and intends to hire 15-20 employees.
- Hometown Apparel plans to hire 6 with a $305K expansion investment in Chillicothe.
- Ohio Transparent Telecom (Ohio TT) plans to invest $5M to bring broadband access to 15K residents in Coshocton County.
- Foxconn has assembled the first set of fully electric Monarch MK-V tractors in Lordstown.
- Kraton intends to expand polymer production at its Belpre facility, adding 24 kilotons by 2025.
- Locus Fermentation Solutions in Solon has secured $117M in financing. The funds will help Locus FS continue innovation in the production of biological alternatives to chemicals.
- Presta, a digital lending startup in Cleveland, has launched after raising $3.3M in equity. The fundraise will support the growth of Presta’s digital platform and expansion of its team.
- Reladyne has acquired Allied Oil & Supply, a Midwestern leader in lubricants and diesel exhaust fluids. Terms of the deal were not disclosed.
- Frontier Airlines will add nonstop flights from Cleveland to San Diego, San Francisco, Dallas, and Charlotte.
- Breeze Airways has added a new nonstop flight from Columbus to Orange County, California.
- Linder Health is in the final stages of moving its operations hub to Avon.
For more information, contact:
Drew Peters & Matthew Ellerbrock, JobsOhio Research