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Ohio Ranked #1 for Water Availability by Area Development

This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.

Published: Mon Sep 25 2023

Key Economic Insights

Ohio Employment & Economic Insights

Ohio has climbed 3 positions to the #5 spot overall in Area Development Magazine’s 2023 Top States for Doing Business. The state earned top 10 rankings in 12 of 14 factors: #1 for water availability; #3 for available real estate, business incentive programs, and competitive labor market; and #4 for logistics & infrastructure.  JobsOhio has been named the #2 Best in Class State Economic Development Organization in the U.S. in DCI’s 2023 Winning Strategies in Economic Development Marketing; JobsOhio tied with Georgia in DCI’s annual rankings. One Columbus also tied for #4 as the Best in Class Regional or Community Economic Development Organization.

Ohio's unemployment rate was 3.4% in August 2023, up from the all-time low of 3.3% in July 2023; this continues the historic lows that began in April 2023 when the previous record of 3.8% in 2001 was broken. Preliminary nonagricultural wage and salary employment increased by 3,500 to 5,639,700 in August; marking the highest number of filled jobs in state history since records began in 1990. The labor force participation rate in Ohio was 62.1%, unchanged from July 2023 and up from 61.4% in August 2022. Ohio recorded 15,917 new business filings in August, the fourth month in a row where filings have increased YoY.

The Ohio Department of Development will provide $13.8M in Neighborhood Revitalization and Critical Infrastructure grants to 23 communities for projects such as new community centers; upgraded water, road, and bridge, infrastructure; and recreation enhancements. In July, a total of 430 employers were approved for funding through Ohio’s TechCred program, providing 4,961 tech-focused credentials to Ohioans. The Ohio Department of Agriculture’s H2Ohio program will expand to statewide in 2024. The funding program, aimed at improving water quality through encouraging best management practices, restoring wetlands, and replacing septic systems, has operated in the Western Lake Erie Basin since 2019.

The Midwest Microelectronics Consortium (MMEC) was awarded regional hub designation and $24.3M through the Microelectronics Commons program by the Department of Defense. This partnership of 65 hub members places Ohio, as leader of the MMEC, among the eight regional "hubs" nationwide to receive a total of $238M in CHIPS and Science Act funding. The Mid-Ohio Regional Planning Commission (MORPC) has applied for and earned an Economic Development District (EDD) designation for an 11-county area in Central Ohio by the U.S. Department of Commerce’s Economic Development Administration (EDA).

The U.S. EDA has awarded Bowling Green State University nearly $333,000 in STEM Talent Challenge grants. U.S. News & World Report has named The Ohio State University (#43) and Case Western Reserve University (#53) in the top 100 Best National Universities in the U.S. for 2024. Cincinnati has been named the #4 best city for recreation in 2023 by WalletHub, based on entertainment and recreational facilities, costs, quality of parks, and weather. Cincinnati was also named one of 15 of the happiest places to live in the U.S. by Outside, based on outdoor access, affordability, safety, diversity, and freedom of expression.

Ohio Company News

  • Joby Aviation has announced a $477.5M electric air taxi manufacturing facility in Dayton, creating 2,000 jobs with new payroll exceeding $140M per year. Joby plans to build 500 electric vertical take-off and landing (eVTOL) vehicles per year aimed predominantly at commercial passenger operations.
  • Ditsch USA has purchased a shuttered Costco in Springdale for $12M. The company plans to add an additional 59,700 SF to the facility and aims to add eight pretzel manufacturing lines employing 229.
  • Pratt Industries has pledged to add 200 jobs in a new $32M Dayton-area facility.
  • Brighton Tru-Edge has invested $3.2M in new equipment in Sharonville. The manufacturer has North America’s only Tru-Cut 3D machine, requiring 5 new hires, and enabling up to 20 more in coming years.
  • Sofidel plans to invest $185M to expand its operations in Circleville, adding 50% more capacity by 2025.
  • Flexjet has opened a new state-of-the-art $50M global HQ at the Cuyahoga County Airport.
  • Waste Management has opened a $30M, nearly 100,000 SF, state-of-the-art material recycling facility in Oakwood Village. The facility will process up to 320 tons of recyclables per day.
  • Amazon plans to hire 15,000 full-time, seasonal, and part-time roles in Ohio. Fulfillment workers can earn an average of over $20 per hour. Seasonal employees will have the opportunity to transition to full-time.
  • Omni Fiber, already providing gigabit service in 11 markets in Ohio, has construction underway in 13 more, with 12 additional communities starting construction soon.
  • The J.M. Smucker Co. intends to acquire Hostess Brands in a cash and stock deal valued at $5.6B.
  • Greif, HQ’d in Delaware, Ohio, has acquired a 51% stake in Urbana-based ColePak in an all-cash deal.
  • Kroger Health intends to team up with Performance Kitchen to offer registered-dietitian-approved meals to people with chronic conditions like diabetes, heart disease, and cancer.

U.S. Insights

The Federal Reserve kept interest rates unchanged at their September meeting, holding rates at a target range of 5.25 - 5.50%. In the summary of economic projections, the Fed revised their forecast for 2023 Real GDP growth higher to +2.1% from +1.0% in June. The forecast for the peak federal funds remained unchanged at 5.6% from June. Weekly jobless claims declined by 20,000 to a seasonally adjusted 201,000 during the week ending September 16. Continuing claims declined by 21,000 to 1.662M in the week ending September 9. The Conference Board Leading Economic Index (LEI) declined in August by 0.4% to 105.4 marking a year-and-a-half of consecutive declines.

The consumer price index (CPI) rose at a 3.7% annual rate in August, up from 3.2% in July. Core CPI, which excludes food and energy prices, fell to a 4.3% annual rate from 4.7% in July. The producer price index (PPI) rose 0.7% in August to a 1.6% annual rate, which is the largest single-month increase since June 2022. Core PPI advanced at a 2.1% annual rate during the month, which is the lowest annual level since January 2021. Retail sales grew more than expected in August with U.S. retail sales rising 0.6%.  U.S. business inventories were unchanged in July as companies continue to manage stockpiles in anticipation of weak demand due to higher interest rates. Industrial production edged up 0.1% in August, which follows a downward revision of July data. Capacity utilization rose to 79.7% from 79.5 in July, which is in line with its long-run average (1972-2022).

The NFIB Small Business Optimism Index decreased to 91.3 in August, remaining below its historic average for the 20th consecutive month. 23% of owners reported that inflation was their single most important problem in operating their business, up two points from July.  U.S. homebuilder confidence retreated for a second consecutive month in September to 45 from an August reading of 50. Single-family homebuilding plunged 4.3% to more than a three-year low in August as mortgage rates continue weighing on demand, yet a jump of 2% in building permits suggests new construction remains supported due to the low stock of new homes. Existing home sales decreased in August by 0.7%. Home sales have receded by 15.3% versus one year ago.

For more information, contact:

Matthew Ellerbrock & Summer McVicker, JobsOhio Research

ellerbrock@jobsohio.com / mcvicker@jobsohio.com

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