Economic development groups collaborate to reveal state of manufacturing in Northeast Ohio
CLEVELAND, February 14, 2019 – MAGNET — The Manufacturing Advocacy and Growth Network — and Team NEO released complementary documents at the 2019 State of Manufacturing event this morning:
- MAGNET’s Survey Results, presented by Purolator International, was a compilation of insights from 500 manufacturing companies that responded to the third annual Ohio Manufacturing Survey (sponsored by Purolator International, Skoda Minotti, Oswald Companies and Bank of America). The results will also be available at a rollout event in Canton February 15, and in Akron February 19; interested participants can sign up at manufacturingsuccess.org.
- Team NEO released its Cleveland Plus Economic Review, featuring manufacturing and showcasing the influence of the Industrial Internet of Things (IIoT), additive manufacturing and other new technologies on the rapidly changing face of manufacturing in Northeast Ohio.
Statistics coming directly from the Ohio Manufacturing Survey include:
- 69 percent of respondents said their company grew revenues in 2018, and 88 percent of respondents expect their revenues to grow in 2019.
- Cybersecurity continues to dominate as a “growing concern” for manufacturers, with 63 percent saying they are concerned and 2 percent reporting they have been attacked online.
- Attracting new skilled workers is the biggest challenge for Ohio manufacturers, with 60 percent saying their growth has been hampered by the lack of skilled workers.
- Automation is not replacing jobs, but rather increasing worker productivity, with 47 percent stating they are augmenting their current workforce with automation and just percent of respondents reporting they use automation to replace current workers.
“We are encouraged by the growth of the Ohio Manufacturing Survey, which continues to give us powerful insights into the state of manufacturing in Ohio,” said Ethan Karp, MAGNET’s President and CEO. “We tremendously appreciate the partnership of our collaborating organizations, the financial contributions of our corporate sponsors, and of course the time and energy of the manufacturing respondents who make this possible.”
Report findings from Team NEO’s Cleveland Plus Economic Review include that the $41 billion manufacturing industry makes up 20 percent of gross regional product (GRP) and that subsectors of manufacturing, such as food and computer-and-electronic product manufacturing, are diversifying. Additionally, more than 21,000 annual job openings are projected each year through 2023. The 500 companies that responded to MAGNET’s survey submitted that they currently have more than 3,000 openings right now.
Other notable economic indicators related to Northeast Ohio’s 18 counties include:
- GRP is projected to reach $238.5 billion for 2018
- Total employment is at 1.947 million
- Employment has increased by almost 9,000 jobs year-over-year
- The unemployment rate has decreased 1 percent year-over-year
- Northeast Ohio’s unemployment rate averaged 5.0 percent in Q2 2018
- All sectors (manufacturing, services, construction) saw year-over-year growth
- The manufacturing sector added 5,500 jobs from Q2 2017 to Q2 2018
William Koehler, CEO of Team NEO commented on his company’s report, “Moving forward, the rapid changes in manufacturing we’re beginning to see now will likely result in higher wages and increased productivity. We expect these improvements to lead to increases in demand for our products, opportunities for a diverse workforce, and the strengthening of our region’s global competitiveness.”
Team NEO publishes the Cleveland Plus Economic Review quarterly to provide a holistic picture of Northeast Ohio’s economy. It is the only regular source of collective economic data for the 18-county region. The nonprofit organization uses this information to attract new businesses and jobs to Northeast Ohio and help those that are here grow.
Team NEO uses Moody’s Economy.com, the U.S. Bureau of Labor Statistics data, and Ohio’s Labor Marketing Information to aggregate regional figures.
About Team NEO
Team NEO is a business development organization focused on creating jobs for Northeast Ohio’s residents. In collaboration with our partners, it leads the region’s business attraction efforts, supports business retention and expansion work as Northeast Ohio’s JobsOhio affiliate, accelerates the impact of innovation in the region, and aligns strategies and resources within the economic development network to maximize its impact. In addition, Team NEO provides tools to assist employers in attracting talent to the region.
Team NEO is part of the Northeast Ohio Economic Development network, providing business decision-makers with access to customized solutions that accelerate growth, foster innovation and mitigate risk through a connected and collaborative ecosystem. For more information, visit teamneo.org.
About MAGNET MAGNET’s mission is to help manufacturers grow and compete in Northeast Ohio, especially the 98 percent of startup to medium-sized manufacturers that drive our economy. MAGNET rolls up its sleeves to provide hands-on support ranging from new product design to operations and brings education and business together to create tomorrow’s manufacturers. Visit www.manufacturingsuccess.org for more information.