Ohio Ranks #9 in Attracting and Maintaining Residents, According to Study
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.
Published: Thu Jan 12 2023
Key Economic Insights
- U.S.: The Federal Reserve announced a 50-basis point rate hike in December, bringing the federal funds rate to a 15-year high; forecasted GDP growth of 0.2% in 2022 and 1.2% in 2023.
- Ohio: JobsOhio saw a record $1.8B+ in new payroll and $31B in new capital investment in 2022. Ohio’s unemployment rate remained at 4.2% in November.
Total nonfarm payroll employment increased by 223,000 in December 2022, and the unemployment rate edged down to 3.5%. The labor force participation rate was little changed at 62.3%. U.S. job openings totaled 10.5M in November 2022. Quits (4.2M) and layoffs and discharges (1.4M) were relatively unchanged during the month. The Federal Reserve raised its benchmark interest rate by 50 basis points in December to a range between 4.25% and 4.5%, a 15-year high, and signaled future rate hikes in 2023. The FOMC also released their Summary of Economic Projections with median forecasts for GDP growth of 0.2% in 2022 and 1.2% in 2023. Real GDP was revised higher to an annual rate of 3.2% in Q3 of 2022, according to the third estimate released by the Bureau of Economic Analysis, up from prior estimates of 2.9%.
The Consumer Price Index (CPI) rose at a 7.1% annual rate in November with Core CPI +6.0%, and 6.5% and 5.7% respectively for December. Both prints were lower than the prior month. The Personal Consumption Expenditure (PCE) Index increased at a 5.5% annual rate in November, the slowest annual pace since October 2021. Core PCE rose at a 4.7% annual rate during the month, down from 5% in October. ISM Manufacturing PMI registered 48.4 in December, the lowest level since May 2020. Industrial production declined 0.2% in November, with manufacturing output declining 0.6% during the month, the first monthly decline since June 2022. Capacity utilization declined to 79.7% during the month but remained above its long-run (1972–2021) average. Durable goods orders decreased 2.1% in November, the largest monthly decline of 2022.
Ohio Employment & Economic Insights
2022 was a record year for the state of Ohio and JobsOhio. Ohio attracted the most corporate investment in new buildings and equipment in 2022 of any year since JobsOhio formed in 2011. In 2022 alone, JobsOhio saw a record $1.8B+ in new payroll and $31B in new capital investment. In less than two years, the JobsOhio Growth Capital Fund has invested $94M in 62 companies that have combined to attract $641M in outside investments from Ohio and out-of-state firms. JobsOhio also helped attract five new airlines to the state in 2022; Cleveland, Cincinnati and Columbus collectively added 20 nonstop domestic routes.
Ohio's unemployment rate was 4.2% in November 2022, unchanged from October. Nonagricultural wage and salary employment increased 5,500 over the month and the labor force participation rate declined to 61.3%. Ohio recorded 13,420 new business filings in November 2022. A total of 165,624 new businesses were created in 2022 through November, averaging 15,056 per month. Ohio’s minimum wage was raised to $10.10 per hour in 2023, an 80-cent increase; tipped employees will make at least $5.05.
The Ohio Department of Development will fund over $88M in brownfield redevelopment to help local communities clean up or assess 123 contaminated properties across 35 Ohio counties. This follows grants totaling $242M announced earlier in 2022. A total of $64.1M in tax credits will support 54 rehabilitation projects across Ohio, restoring 57 historic buildings as part of the Ohio Historic Preservation Tax Credit Program. The investment into 21 communities is expected to leverage $1B in additional private investment. The Brent Spence Bridge Corridor Project in Cincinnati was awarded $1.635B in federal grants; groundbreaking of the new companion bridge will start in late 2023, with completion planned for 2029.
The Ohio Department of Higher Education awarded 45 Ohio colleges and universities nearly $28M in Choose Ohio First funds to connect students with in-state STEM programs and keep them employed at local firms after graduation. Thirteen workforce partnerships throughout Ohio were awarded a total of $2.58M in Industry Sector Partnership Grants. 349 Ohio employers were approved for funding during the November round of Ohio’s TechCred program. A total of 2,173 Ohio employers were approved for funding through November 2022, supporting the earning of more than 57,000 tech-focused credentials by employees.
25 Ohio-based companies ranked among the 500 most responsible companies in the U.S. in Newsweek’s fourth annual America’s Most Responsible Companies List. Avient (#22), Owens Corning (#24), Kroger (#78), Huntington Bancshares (#86), and Sherwin-Williams (#92) ranked among the top 100 companies on the list. Ohio HQ companies on this year's Just Capital's 2023 list of America’s most just companies include AEP, Fifth Third Bank, KeyCorp, Huntington. Ohio was among the top preferred destinations of one-way U-Haul truck customers in 2022, ranking as the #9 top growth state in the annual U-Haul Growth Index Ranking. In 2021, Ohio ranked #24.
Ohio Company News
- Medpace plans to invest $150M to expand its operations in Cincinnati, adding 1,500 new jobs with an associated payroll of $90M over the next six years.
- Abbott intends to build a $536M powder formula facility in Bowling Green, resulting in 450 new jobs.
- Emerge Manufacturing plans to invest $10.2M to construct a new 50,000 SF facility in Cincinnati, creating 100 new jobs.
- Brooks Running intends to relocate its central Ohio Distribution Center in Groveport to a new 600,000 SF facility, more than doubling its size with the addition of 100 new jobs.
- Trew announced it will establish a new technology center in Fairfield, creating 75 engineering jobs.
- EVE Energy North America plans to construct a new R&D facility in Lewis Center focused on the testing, design, and storage of advanced lithium-ion batteries, resulting in a total of 12 new jobs.
- Chemtrade will expand in Allen County, investing $50M in a new sulfuric acid facility, a key component in semiconductor manufacturing; Chemtrade is already North America’s largest producer.
- Grange Insurance plans to expand its R&D operations in Columbus.
- GE has spun-off GE HealthCare into an independent company. GE remains on track to launch GE Aerospace, and GE Vernova as independent companies in 2024.
- Goodyear Tire & Rubber Co. unveiled a demonstration tire comprised of 90% sustainable materials and said it plans to produce and sell a tire with up to 70% sustainable-material content this year, making progress toward their goal of producing a tire made 100% from sustainable materials by 2030.
- Union Home Mortgage in Strongsville has acquired Michigan-based Amerifirst Home Mortgage.
- Youngstown Air Reserve Station was selected by the U.S. Air Force to receive 8 upgraded C-130J transport aircraft.
- The University of Cincinnati was awarded an Innovation & Economic Prosperity (IEP) award by the Association of Public and Land-grant Universities (APLU).
- Ohio University was selected as an education partner for Amazon’s Career Choice program, providing Amazon’s hourly employees with access to associate and bachelor degree programs.
- GE Aerospace donated two advanced jet engines, valued in the multimillions, to Cincinnati State Technical and Community College to provide hands-on training for its aviation maintenance students.