Ohio Recognized for Focus on Innovation by Business Facilities Magazine
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.
Published: Wed Mar 01 2023
Key Economic Insights
- U.S.: Core PCE accelerated in January to a 4.7% annual rate; Core CPI advanced at a 5.6% annual rate during the month. Real GDP for Q4 2022 was revised down to 2.7% from 2.9% previously.
- Ohio: New business filings in January totaled 17,006, the largest January filings in Ohio history. Business Facilities recognized Ohio as a regional runner-up for the 2022 State of the Year Award.
Real GDP increased at 2.7% annual rate in Q4 2022, down from initial estimates of 2.9%, according to the second estimate from the Bureau of Economic Analysis. Annual estimates for Real GDP growth in 2022 remained at 2.1%. Industrial production was unchanged in January. Manufacturing output rose 1.0% during the month following two months with substantial decreases. Capacity utilization declined to 78.3% during the month, remaining below its long-run (1972–2022) average. Consumer spending rose 1.8% in January, above expectations for an increase of 1.3%. Data for December was revised higher to -0.1%, up from -0.2% reported previously. Retail sales rose 3.0% in January, the largest monthly increase in the last 22 months.
The Personal Consumption Expenditures (PCE) price index rose 0.6% in January to a 5.4% annual rate, up from 5.3% in December. Core PCE, the Federal Reserve’s preferred measure of inflation, advanced 0.6% during the month to a 4.7% annual rate, up from 4.6% in December. More than four out of five economists believe the Federal Reserve’s preferred inflation gauge — the core personal consumption expenditures price index excluding food and energy — will persist beyond the central bank’s 2% target until 2024 or later.
The Consumer Price Index (CPI) advanced 0.5% in January to a 6.4% annual rate, down from 6.5% in December 2022. Core CPI rose 0.4% during the month to a 5.6% annual rate, down from 5.7% in December 2022. The Producer Price Index (PPI) advanced 0.7% in January to a 6% annual rate. Core PPI increased 0.5% during the month to a 5.4% annual rate, down from 5.8% in December 2022.
The NFIB Small Business Optimism Index rose 0.5 points in January to 90.3, remaining below the 49-year average of 98. 26% of owners reported inflation as their single most important problem in operating their business, down from 32% in December 2022. The Conference Board Leading Economic Index (LEI) for the U.S. fell 0.3% in January. The LEI is now down 3.6% over the six-month period between July 2022 and January 2023, a steeper rate of decline than its 2.4% contraction over the previous six-month period (January–July 2022). Initial jobless claims for the week ended February 18 declined by 3,000 from the previous week to a total of 192,000. Continuing claims declined by 37,000 to a total of 1.654M during the week ended February 11.
Ohio Employment & Economic Insights
Business Facilities recognized Ohio as its 2022 State of the Year for the Midwest region, highlighting the state’s focus on innovation, building entrepreneurial ecosystems, and supporting high-growth sectors. Ohio recorded a strong start for new business growth in 2023 with 17,006 new business filings in January, the highest January number of business filings in Ohio history. Ohio saw a record number of jobs resulting from Foreign Direct Investment (FDI) in 2022, according to internal analysis of data from fDi Markets. An estimated total of 8,375 jobs resulted from FDI activity in Ohio in 2022, ranking #8 in the U.S. and #1 in the Midwest on this metric.
A report from the NAIOP Research Foundation found that Ohio ranked #3 in the U.S. for contributions from the Commercial Real Estate industry to their state’s economy in 2022, totaling $64.4B. The study used key data sets from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, the Bureau of Economic Analysis, Dodge Construction Network and the National Council of Real Estate Fiduciaries (NCREIF). In 2022, The Ohio State University made a significant advancement in the national ranking of research universities thanks to its nearly $1.4B spend of public and private research dollars. Ohio State ranked #12 among all universities in overall research expenditures in FY22. The University of Cincinnati and its affiliates spent a record $615M on research in FY2022, ranking #33 among public universities nationwide.
Seven Ohio-based companies were ranked among the top 100 large employers in the U.S. by Forbes in their 2023 America’s Best Large Employers list. Ohio companies in the top 100 include Cincinnati Children’s (#10), Nationwide Children’s Hospital (#22), Sherwin-Williams (#39), The Ohio State University (#43), Progressive (#59), University Hospitals (#81), and Cleveland Clinic (#98). Forbes also ranked four Ohio-based companies among the top 100 midsized employers including Cleveland State University (#10), Union Home Mortgage (#34), Hyland Software (#43), and Northwest Bank (#60).
Homebuyer.com ranked six Ohio cities among the Most Affordable Cities to Buy a House in 2023 in a recent study using data from the U.S. Census Bureau and Altos Research. Toledo (#3), Cleveland (#8), and Columbus (#10) ranked among the top 10 most affordable large cities according to the study. Canton (#2), Lorain (#4), and Youngstown (#7) ranked among the top 10 most affordable small cities.
Ohio Company News
- The Air Force Life Cycle Management Center plans to hire approximately 1,250 new employees at Wright-Patt across all career fields in 2023.
- Alleguard announced a $900,000 expansion at its Lancaster location with plans to add 85 new jobs.
- EdgeEnergy announced plans to invest $150M and add at least 30 new jobs in Cincinnati.
- Industrial Reliability and Repair plans to invest $250,000 to expand their operations in Chillicothe.
- Breeze Airways announced new destinations from Cincinnati/Northern Kentucky International Airport, adding a nonstop flight to Richmond, VA, that will proceed to Jacksonville, FL.
- British Petroleum will purchase Westlake-based TravelCenters for $1.3B.
- Pilot Chemical opened a microbiology lab at its Sharonville Technology Center that will help the company accelerate the R&D of new products and bring biocidal products to the market.
- Buckeye State Bancshares plans to acquire Rockhold Bancshares in Ross County.
- Flexjet has acquired Constant Aviation’s aircraft maintenance, repair, and overhaul business, including Constant Aviation's facilities at Cleveland Hopkins International Airport.
- Conn's Potato Chip Company has obtained a brand licensing agreement with Mikesell’s after its announced closure and will produce Mikesell's snack foods at its facilities in Zanesville.
- The Ohio State University’s interdisciplinary research facility, located in the Carmenton Innovation District, will be called the Pelotonia Research Center, named after the cycling event that has raised $258M for the James Cancer Hospital since 2008.
- Miami University celebrated the opening of the Lee and Rosemary Fisher Innovation College at Elm, a new innovation and workforce development center for incubating and accelerating entrepreneurs, startups, and small businesses.
- Business Training Systems, based out of Stockholm, intends to open a global innovation center at the University of Cincinnati’s 1819 Innovation District.