Ohio’s Industrial Diversity Ranking #8 in the U.S.

Key Economic Insights

• U.S.:  The unemployment rate declined to 3.4% in April, tied for the lowest level since May 1969. Job openings declined to 9.6M in March. The Federal Reserve implemented a 25-basis point interest rate hike, bringing the federal funds rate to the highest level since August 2007.
• Ohio: Recently approved projects are expected to create 663 jobs and spur $185M in investment across the state. Ohio ranked #3 in Site Selection’s 2023 Prosperity Cup. 

U.S. Insights

Total nonfarm payroll employment rose by 253,000 in April, and the unemployment rate declined to 3.4%, matching the lowest level since May 1969. The labor force participation rate was unchanged from March at 62.6%. Average hourly earnings for employees on private nonfarm payrolls rose 0.5% during the month and 4.4% over the last year.  U.S. job openings declined by 384,000 to 9.6M in March, the lowest level since April 2021. The number of hires (6.1M) and total separations (5.9M) remained relatively stable. Within separations, the number of quits (3.9M) did not show significant changes, while layoffs and discharges (1.8M) increased to the highest level since December 2020.  Weekly jobless claims rose by 22,000 to a total of 264,000 during the week ended May 6, the highest level since October 2021. Continuing claims rose by 12,000 to a total of 1.813M.

The Federal Reserve voted unanimously to raise the federal funds rate by 25-basis points to a target range of 5.00 – 5.25%, the highest level since August 2007.  The Consumer Price Index (CPI) rose 0.4% in April to a 4.9% annual rate, down from 5.0% in March and the lowest level since April 2021. Core CPI also rose 0.4% during the month to a 5.5% annual rate, down from 5.6% in March. Shelter rose 8.1% over the last year, accounting for over 60% of the increase in Core CPI.  The Producer Price Index (PPI) rose 0.2% in April to a 2.3% annual rate, the lowest since January 2021. Core PPI advanced 0.2% to a 3.4% annual rate.

ISM Manufacturing PMI was 47.1 in April, up from 46.3 in March but in contraction for a sixth consecutive month. ISM Services PMI was 51.9 in April, up from 51.2 in March and remaining in expansion for the fourth consecutive month.  Nonfarm business sector labor productivity decreased 2.7% in the first quarter of 2023. Unit labor costs in the nonfarm business sector increased 6.3% in the first quarter and have increased 5.8% over the last year.  The NFIB Small Business Optimism Index declined 1.1 points in April to 89.0, marking 16 consecutive months below the 49-year average of 98.0. Labor quality was the primary concern among small businesses, with 24% of owners reporting it as their top problem; inflation shifted to the second highest problem at 23%.

Ohio Employment & Economic Insights

The Ohio Tax Credit Authority approved assistance for eight economic development projects in April. Collectively, the projects are expected to create 663 new jobs earning $35M in payroll, retain 499 jobs, and spur more than $185M in investments across the state.  Ohio ranked #3 in Site Selection’s 2023 Prosperity Cup, which recognizes the competitiveness of state-level economic development agencies and their success in landing capital investment projects. Ohio's industrial diversity ranking improved one spot to #8 in the U.S. in 2022, one of only three U.S. states to have increased its industrial diversity YoY every year since 2012, according to recent data released by Moody's Analytics.

Goldman Sachs 10,000 Small Businesses plans to partner with JobsOhio to support small business entrepreneurial growth in Ohio. 10,000 Small Businesses is a free business education program designed to help small business owners gain practical skills across a variety of topics such as financial statements, negotiations, and marketing. The program works with several community and technical colleges across the state to deliver the program locally, including Cuyahoga Community College, Columbus State Community College, Cincinnati State Technical and Community College, and Sinclair Community College.

A total of 32 Ohio-based companies made the Inc.’s Regionals 2023 list of companies with the highest revenue growth in the Midwest Region.  Collectively, these companies totaled $12B in revenue (2019-2021) with a median 2-year revenue growth rate of 145%. These companies also combined to add more than 6,200 jobs.  A recent analysis by Forbes Advisor ranked Ohio as the #5 best state for saving money. The analysis examined data for all 50 states across four categories: income and debt, cost of living, housing costs and taxes. According to the study, Ohio has the #12 lowest cost of living in the country and the #6 lowest debt-to-income ratio among its residents (as of Q3 2022). Additionally, Ohio ranked #8 lowest for the percentage of income spent on housing costs and #13 lowest for the percentage of residents who spent at least half of their income on rent.

The Federal Aviation Administration has awarded grants totaling nearly $5.8M to fourteen airports across Northwest, Southwest and Central Ohio to fund infrastructure improvements. A recent study completed by Lightcast found that the University of Cincinnati had more than $10.6B in economic impact on the surrounding region in FY 2021-2022. This figure is 152% higher than a previous report conducted in 2018 that estimated the University’s economic impact at nearly $4.2B. USA Today named Hocking Hills State Park as one of the 10 best places for a summer vacation in the U.S.

Ohio Company News

• Oats Overnight plans to add 179 new jobs at a new location in West Chester.
• TekniPlex intends to create 100 new jobs at a new $40M facility in Van Wert.
• P.M. Electro Auto expects to hire 100 employees at its new location in Toledo.
• GVS Filtration plans to create 74 new jobs as part of an expansion in Findlay.
• Yaskawa intends to add 70 new jobs as part of a 185,000 SF expansion in Miamisburg.
• Sunstar Engineering Americas plans to create 60 new jobs as part of a $18M expansion in Springboro.
• Warabeya intends to create 60 jobs generating $3.6M in payroll at a new facility in Columbus.
• SFS Group expects to hire 45 employees as a result of an expansion in Sharon Township.
• New Horizons Baking plans to add 45 new positions as part of a $13.5M expansion in Toledo.
• JSW Steel USA plans to invest at least $119M expanding its Jefferson County plant, adding 26 jobs.
• Adelphi Bank, Ohio’s first black-owned bank, celebrated its grand opening in Columbus.
• Google intends to build two additional data centers in central Ohio located in Columbus and Lancaster. The additional data centers will bring Google's investment in Ohio to more than $2B.
• General Dynamics Information Technology, Inc. was awarded a $138M contract from the U.S. Air Force for service required to develop and sustain the system-of-systems Special Warfare Assault Kit.
• Smith Lane Properties plans to invest more than $26M into a new industrial facility in Madison County. The company is the latest grant recipient from JobsOhio’s Ohio Site Inventory Program.
• Lake Shore Cryotronics plans to invest $14M to add 52,000 SF, nearly doubling its footprint in Westerville.
• The Hillsboro Business Complex plans to invest $1M to redevelop three adjacent buildings in the historic section of downtown Hillsboro.
• American Financial has reached a definitive agreement to buy Crop Risk Insurance from New York-based American International Group for $240M in cash.
• First Solar will acquire Evolar, a leading European thin film PV R&D company, for up to $80M.
• Central State University received a $3.5M grant from the U.S. Department of Commerce to establish a Workforce Training and Business Development Center.
• Clean Earth Rovers, a University of Cincinnati Venture Lab-backed startup that develops autonomous rovers to clear debris in coastal waterways, earned an honorable mention in Fast Company’s 2023 World Changing Ideas Awards.

For more information, contact:

Drew Peters & Matthew Ellerbrock, JobsOhio Research

peters@jobsohio.com / ellerbrock@jobsohio.com