How Northeast Ohio’s Automotive Industry Continues to be a Significant Economic Driver
Representing the largest automotive manufacturer outside of Detroit, Ohio is among the most elite automotive hubs in the nation. In fact, 13 different car models are produced in the Buckeye State, which delivers more than one million cars annually. With its strong manufacturing heritage, central location, proximity to OEMs, and access to talent, Northeast Ohio is an ideal location for automotive businesses to thrive.
Automotive Companies Making Investments in Northeast Ohio
Given the region’s many automotive-related assets, it is no surprise that companies continue to invest significant dollars in our region. General Motors’ recent announcement that it would invest more than $200 million at its Parma plant is a perfect example. In December, GM unveiled its plans to invest $218 million at the Parma Metal Center. The money will be used to install two new progressive presses, dies and sub-assemblies. The Parma Metal Center currently employs more than 1,300 people, making it a significant employer for our region. GM’s continued commitment to the Parma plant speaks to its importance to the company as well as Northeast Ohio’s role as an automotive hub.
Like GM, in April of 2016, Ford announced that it would invest $200 million in its Ohio Assembly Plant located in Avon Lake. Ford’s investment will be used to build its Super Duty chassis cabs that are used on commercial vehicles. The investment will help create or retain 150 jobs at the Avon Lake plant, which already employs more than 1,600 Northeast Ohioans. Investments from major auto makers like GM and Ford reinforce Northeast Ohio’s position as a leader in the automotive space and help build the case for continued investments from companies, both nationally and internationally.
LuK, a German-based automotive supplier, is a prime example of the automotive-related expansions taking place in Northeast Ohio. In April of 2016, the Schaeffler Group, LuK’s parent company, announced that it would expand its footprint in Wooster, with plans to add 250 jobs while retaining more than 1,700. The company’s $60 million capital investment will be used to expand its existing automotive facility, which it uses to design and manufacture transmission system components. LuK’s products are sold throughout the globe, making it a noteworthy player in the automotive industry.
Automotive Industry Growth by the Numbers
Together, the investments outlined above help signify the strength of the region’s automotive sector. To this end, employment in Northeast Ohio’s automotive industry is projected to grow 19% by 2024 while Ohio’s automotive GRP is projected to grow by 79% over the same timeframe. This growth is of significant note as employment nationally in the automotive industry is projected to decline. The investments we continue to see from major car makers, auto suppliers and more are helping fuel this growth, making the automotive industry a key economic driver for our state and region.
Interested in learning more about why Ohio is an ideal location for your auto business to thrive? Check out our Automotive Resource Library to learn more.