A Business Friendly Approach
Ohio is the birthplace of some of the world’s greatest inventions – the airplane, the lightbulb, the traffic light, and even Superman. Today, as the country rebounds from an unprecedented crisis, Ohio continues to benefit from that innovative spirit in addition to the decisive interventions that helped to mitigate the impact on our state’s businesses and economic growth.
Ohio offers a welcoming business climate that attracts and fosters growth in global investment and in businesses large and small. Ohio’s simplified tax structure, central location, and affordable cost of doing business are catalysts for economic diversification and prosperity.
- With a Gross Domestic Product (GDP) of $615 billion in 2021, Ohio is the 7th largest economy in the U.S., and ranks 3rd in manufacturing gross domestic product
- Ohio’s economy is ranked 21st worldwide
- In 2021, 197,010 new businesses were created in Ohio, compared to just 80,273 in 2010
- JobsOhio’s ten strategic industries have seen a 17% increase in jobs 2010-2021; the 175,399 employment increase represents the 8th highest absolute employment growth in these sectors in the U.S.
- The state’s Common Sense Initiative has created a jobs-friendly regulatory environment
- Accelerated environmental permitting process takes 180 days or less
- Ohio has enjoyed stable ratings from Moody’s and S&P of AA1/AA+ and in 2022 was upgraded by Fitch to AAA for the first time
- Ohio ranks No. 15 in CNBC's 2022 America’s Top States for Business; No. 2 for infrastructure, No. 4 for cost of doing business, and No. 3 for access to capital
Ohio Gross Domestic Product
Although the World Bank projects global GDP growth to slow in 2022 and 2023 due to the Omicron variant, supply-chain disruptions, labor shortages, and reduction of government economic support, Ohio has showed strong economic results.
In 2021, Ohio companies secured a record $2.37B in venture capital funding across 180+ deals, representing a 103% increase from 2020 venture capital funding. Ohio manufacturing’s economic output surpassed its previous highwater mark set in the second quarter of 2021. According to the U.S. Bureau of Economic Analysis, Ohio’s seasonally adjusted annual manufacturing GDP yielded more than $118.3B in Q3 2021 – up from $116.9B in Q2 of last year and $112.4B in Q4 2019, before the start of the pandemic.
Manufacturing, automotive, and food processing industries have historically represented Ohio, while other growth industries have been identified in which Ohio could show its strengths—including technology and healthcare.
From 2007 to 2017, Ohio shifted to expand beyond the manufacturing industry to include more professional and business services, finance, insurance, real estate, education, and healthcare. The state’s increased industry diversity is driven by strategy around the inclusion of these growing industries. In 2007, Ohio was ranked tenth among U.S. states in terms of industrial diversity, and in 2017, it improved to eighth. As innovative companies continue to invest in Ohio, the state will continue to diversify its industries and build economic growth.
Currently, JobsOhio focuses on the following leading industries in Ohio. These diverse industries leverage Ohio’s strengths and propel future investment as well as job growth.
A balanced budget, a pro-business tax climate, low operations costs, a skilled workforce, and JobsOhio’s flexibility to build customized solution to meet business needs all combine to make Ohio a strong, economically viable option for a range of companies and growth industries. Ohio also places importance on economic diversity and jobs of the future.
Site Selection ranked Ohio #6 in their “2022 State Business Climate” rankings. Hundreds of new projects across the state in 2022 will lead to a record $30+ billion in capital investment and a record $1.79+ billion new payroll.
September 2022 featured the largest number of new jobs and capital investment in a single month since JobsOhio’s inception in 2011, with new projects set to spur more than $21.5B in investment across the state. Thanks to JobsOhio and its partners, Ohio’s economic growth continues to thrive.
Trends in Ohio Real GDP
In the third quarter of 2022, real GDP increased at an annual rate of 2.6%, according to advance estimates by the Bureau of Economic Analysis (BEA).
The real GDP in Ohio has also seen improvements over the last few years. In 2021, the real GDP of Ohio was $615.4B, which is a significant increase from the year prior when it was $589.9B.
JobsOhio offers solutions for companies and Ohioans that enable economic prosperity across the state. The programs and services available are designed to attract business, retain jobs, and help make the choice to expand or relocate here an easy one.
Ohio’s composite cost of living index was also significantly lower than the national and regional average in 2020, and it ranks #1 in affordability under the U.S. News Opportunity Rankings. This means that people don’t have to choose between and successful professional life and a fulfilling personal life. You can have it all in Ohio.
Ohio Business Spotlight
Positioned to Lead Into the Future