Ohio’s Military and Federal Sector Contributes $40B to State Economy
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: IATA forecast the airline industry will lose $12B next year but return to profitability in 2023.
- U.S.: The Conference Board’s Measure of CEO Confidence fell to 67 in Q3 after hitting an all-time high of 82 in Q2. Oil rose to over $82/barrel, its highest since late 2014.
- Ohio: A new economic impact analysis shows Ohio’s military and largest federal installations generate directly and indirectly $40B in gross regional product, support 385,000 jobs, account for 6% of Ohio’s economy.
The International Air Transport Association forecasts the global airline industry to lose close to $12B next year. IATA forecasts the industry will return to profitability in 2023, and that total passenger numbers will rise to 3.4B people next year from 2.3B this year. Crude oil prices jumped to a seven-year high this week after OPEC and its allies declined to significantly increase supply. Honda Motor plans to launch a test rocket by 2030 as it looks to enter the small satellite launch business. Nissan will carry out temporary work stoppages at two Mexican plants due to production adjustments needed to manage a shortage of semiconductor chips.
Johnson & Johnson is seeking authorization from the FDA for its booster dose for its Covid-19 vaccine, citing effectiveness in clinical studies. GM will open a battery cell development center in Michigan to cut costs associated with EV production. Jeep unveiled its first Grand Cherokee plug-in hybrid as it attempts to pivot to “green” vehicles. General Dynamics has launched two new Gulfstream aircraft as it looks to tap a rebound in demand for business jets. Kellogg’s U.S. cereal plants have halted production as roughly 1,400 workers went on strike. The U.S. Department of Transportation temporarily furloughed 3,700 employees.
Ohio Employment & Economic Insights
Positive Company-Specific News
- Upstart is doubling its Ohio workforce to more than 1,000 employees. The Columbus office has already topped 500 jobs this year, with another 508 jobs planned.
- Kroger is looking to hire 1,500 health care workers across the country as it expands its Covid services; will begin administering Covid booster shots and flu vaccinations to eligible populations.
- Malt Products is increasing its Dayton employees’ wages by $10/hour as the company moves to attract people looking to enter/re-enter the workforce.
- UES landed a $20M task order on a defense contract for research in advanced ceramic/composite materials and process development for the U.S. Air Force, bringing the total value of the deal to nearly $70M.
- NP Springfield Industrial has a purchase agreement in place to buy over 100 acres of land at a Springfield industrial park. The site, called Prime Ohio II, could eventually result in nearly 1,000 new jobs in Springfield.
- Konecranes was awarded a $14M contract for input interface units to be used by the U.S. Army. Work on the 3-year contract will be performed locally, with an ordering period end date of Oct. 2024.
- Olympic Steel purchased Georgia-based Shaw Stainless & Alloy. The purchase includes Shaw’s stainless-steel distribution/fabrication businesses, and architectural/barrier defense businesses. Shaw will be incorporated into Olympic Steel’s specialty metals segment.