Ohio Critical to National Manufacturing Recovery
Posted June 24, 2014 & filed under Job Search
Last week, U.S. manufacturing PMI percent was recorded at the highest point since May 2010. Markit, a financial information services agency, found that manufacturing output and payroll numbers have increased for several successive months. It’s safe to say that the US economy is making vital progress in the second quarter and a multitude of sources now indicate that Ohio is playing a big part in our economic resurgence.
Thriving logistics network
Ohio is currently above the national average for manufacturing overall health. The Center for Business and Economic Research gives an annual evaluation of manufacturing in all 50 states and Ohio earned a “B+” cumulative score. There are even several measurements where the Buckeye State earn a solid “A”.
The presence of a strong logistics industry within the state has helped Ohio manufacturing to remain formidable. The resilience of the auto and aviation industries in the region has helped to sustain a thriving supply chain ecosystem. The Columbus regional area, the Miami Valley in Southwest Ohio, and other areas support a large network of parts producers.
Moreover, the Center for Business and Economic Research indicates that the vast access to Lake Erie shipping lanes, various interstate roads and railways, and widespread commercial airports add to the overall potency of Ohio’s logistical apparatus.
A return of global influence
The Center for Business and Economic Research also recognized Ohio’s global reach. A successful manufacturing sector almost always coincides with the presence of strong foreign investment. The resurgence of foreign investments in several parts of the state bodes well. A few prominent examples:
- The Fuyao Glass Industry Group plans to spend $200 million to transform a previously shuttered Moraine, OH General Motors assembly plant into an automotive glass production facility.
- Honda Motors recently announced its intentions to spend upwards of $1 billion on facilities in Anna, Marysville, and Russells Point while adding roughly 450 jobs.
- Continental AG has plans to buy the Akron-based Veyance Technologies for $1.9 billion with the intension of maximizing the production of conveyor belts, hoses, and other heavy industrial rubber products.
More investment from domestic giants
International manufacturers are not the only ones putting money into Ohio manufacturing. Members of the Big Three and federal agencies are deploying windfall investments in the automotive and aerospace sectors. Just a few recent examples:
- Ford has committed over $500 million in their Lima Engine Plant to efficiently mass produce the new 2.7 liter EcoBoost Engine. That’s in addition to the $200 million they recently invested in the Cleveland Engine Plant.
- Last year, Boeing spent 11.5 billion with aircraft component suppliers, which easily surpasses the $7.4 billion spent with California suppliers, and is set to spend more after acquiring a contract from Emirates Airlines for a fleet of Boeing’s forthcoming 777X.
- An equal portion of the $1.3 billion allocated to the Manufacturing Communities Partnership is being given to Southwest Ohio Aerospace region among 11 other hubs of aerospace innovation. It portends to pump new lifeblood into the region.
Ultimately, financing from top-tier manufacturers brings investment from smaller-scale players and logistics companies into Ohio. With increased funding coming from every corner of the industry, the demand for experienced manufacturing professionals is slated to increase.
A healthy hiring forecast
Hiring trends appear to be increasing with investment. In the Columbus area, steady job growth is expected to continue on a positive incline from the spring months. The Bureau of Labor Statistics May report found that over 46,800 non-farm payroll positions have been added to the Ohio economy in the last year. Moreover, unemployment is at a healthy 5.5 percent, down considerably from the 7.4 percent in May 2013.
Additionally, manufacturing is seeing considerable growth with more than half of new manufacturing jobs added in just five states: Ohio, Michigan, Texas, Indiana and Wisconsin. With the healthy state of Ohio manufacturing, there’s great potential for hiring needs to rise even higher.
by James Walsh
