Wednesday, July 29 2015
By 2010, Ohio had lost over 350,000 private sector jobs in the Great Recession, and it wasn’t clear if they would be recovered. Fast forward to 2015 when nearly all of those jobs have been regained due to an environment that encourages existing companies to expand and companies outside the state to come to Ohio.
Ohio is different than it was pre-recession. It was a rust belt state, dependent on labor-intensive manufacturing. Today, there is a new Ohio. Manufacturing still plays a role. However, the rust belt has been replaced with skilled jobs in Advanced Manufacturing, Additive Manufacturing, BioHealth, Information Technology & Big Data, and Shale Energy & Petrochemicals. Automotive manufacturing plants and suppliers are now outfitted with the latest technology and productivity enhancements.
How did this occur? Innovation. Innovation supported by Ohio’s manufacturing heritage combined with workers sharing a strong Midwest work ethic. Ohio benefitted from thought leadership a century ago with natives like Thomas Alva Edison, the Wright Brothers, and Charles Kettering. It continues today with the Cleveland Clinic, the University of Akron’s Polymer Center, Honda R&D Americas, GE Aviation’s Additive Manufacturing Center and more.
This spirit of innovation promotes industry changing jobs growth supported by JobsOhio – a new company to drive state economic development. All this is happening in a state with a stable business climate.
The state is home to three National Network for Manufacturing Innovation Institutes. America Makes in Youngstown is helping Ohio become the epicenter for 3D printing/additive manufacturing. The American Lightweight Metals and Advance Composite Manufacturing partnerships started in Ohio are leading developments in materials and manufacturing.
Colleges and universities are collaborating with business to ensure there are graduates for jobs of today and tomorrow. Ohio institutions offer degrees in new fields like Shale Energy, Big Data Analytics, and Unmanned Arial Vehicles.
“Closer cooperation with higher education, workforce training, and businesses means employers can find a workforce to meet their specific needs,” according to Ohio Governor John R. Kasich.
A unique combination of unparalleled assets is also creating an environment for jobs growth. McKinsey & Co. outlined five game changers driving the economy for the next several decades: shale energy, data analytics, advanced manufacturing, infrastructure development, and workforce. Ohio is positioned to capitalize on each.
“Energy and shale, big data analytics, and advanced manufacturing represent the key elements to the next big wave of productivity and will be major factors in driving economic growth in the U.S.,” said JobsOhio Board Chairman James Boland.
Ohio is home to part of the Utica shale formation. More than 1,170 wells are being drilled and 600 are producing. The U.S. Energy Information Administration said Eastern Ohio is one of the fastest growing natural gas production areas in the United States. This will provide Ohio companies access to abundant, low-cost energy for decades.
Ohio is positioned to be a leader in big data. Three of the world’s largest solutions providers are in Ohio: dunnhumbyUSA, Teradata, and IBM’s Global Data Analytics Center. American Electric Power, Battelle, Cardinal Health, Huntington Bank, L Brands, Nationwide, and Ohio Health have partnered to create The Columbus Collaboratory to drive solutions in big data, analytics, and cyber security. This will attract talent from across the country so companies needing this competency can find it in Ohio.
Ohio is the number one supplier state to Boeing and Airbus. Its aerospace and aviation expertise comes from being home to Wright Patterson Air Force Base, NASA Glenn, and GE Aviation. Ohio is located within 60 percent of the U.S. and Canadian populations and manufacturing locations. Advanced manufacturing companies gain a competitive advantage by locating in Ohio.
In addition to diversifying it business landscape, Ohio reinvented economic development by creating of JobsOhio. JobsOhio is a private, non-profit corporation designed to drive job creation and new capital investment through business attraction, retention and expansion efforts. The company is funded by a 25-year lease on the proceeds of state liquor sales. This gives the company a strong financial position, a long-term perspective, and funding flexibility. A Board of Directors drawn from the state’s top corporations and universities governs JobsOhio.
Last year JobsOhio, assisted 276 companies who committed to create 21,377 new jobs and bring $6.1 billion in capital investment to the state. That’s a 20 percent increase in jobs and 70 percent more capital investment than the prior year.
“JobsOhio has distinguished itself as an economic development organization,” said Governor Kasich. “Its commitment to fostering a jobs-friendly climate helps Ohioans make their state the place where new businesses look first and existing businesses grow.”
JobsOhio targets specific industry sectors that include: Advanced Manufacturing, Aerospace and Aviation, Automotive, Biohealth, Finance, Food Processing, Information Technology & Big Data, Shale Energy & Petrochemicals, and Value-Added Logistics and Wholesale Distribution. These industries represent the diversity in the new Ohio economy.
JobsOhio has managing directors with private-sector industry expertise to better understand company strategies and address their needs. These managing directors operate with a speed-of-business approach and develop long-term relationships.
“JobsOhio has both industry focus and experience,” said JobsOhio President and Chief Investment Officer John Minor. “We have industry experts with business acumen which is helping to drive our success.”
JobsOhio works with six regional economic development organizations across the state. This network has local relationships and business knowledge. Together, with regional and local partners, JobsOhio has developed a ‘One Firm, One State’ collaborative approach to selling and promoting Ohio.
Businesses working with JobsOhio will also discover the favorable business climate in Ohio. They can be confident in a stable financial system, low cost of doing business, and common sense regulatory environment.
In just over four years, Governor Kasich and the Ohio General Assembly turned an $8 billion budget deficit into a $1.5 billion surplus without raising taxes.
Small business taxes were slashed by 75 percent on up to the first $250,000 of income. There are no taxes on tangible personal property, corporate profits, machinery, equipment, and R&D investments. Ohio has the lowest tax rate in the Midwest on new capital investments. There is no tax on products sold to customers outside of Ohio. The state’s Commercial Activity Tax is a low 0.26 percent on gross proceeds exceeding $1 million.
“Streamlined regulations mean less time spent unraveling red tape and more time on the job,” said Governor John R. Kasich.
The number of companies taking advantage of the favorable business climate in Ohio continues to grow. Companies like Marathon, zulily, Alliance Data, JPMorgan Chase, and more chose Ohio.
General Electric announced a new global operations center in Cincinnati that is expected to add more than 1,400 highly-skilled workers.
“Ohio has more GE employees than any other state because we have an innovative, forward-thinking work environment,” said Governor Kasich. “This global company could have gone anywhere but chose Ohio because we’ve got the right people and business climate.”
Fuyao Glass America Inc. selected Moraine, Ohio as the place to grow its operations twice. China’s largest automotive glass company will bring a total of 1,550 jobs and invest $360 million.
This June, Amazon announced it will build three data centers and at least one fulfillment center in Ohio, bringing more cloud computing and 1,000 jobs to the state.
Come be a part of the new Ohio. Visit Jobs-Ohio.com to learn more about the benefits of Ohio.
Visit http://www.expansionsolutionsmagazine.com/ohio_ed for local economic development office directory listings.