April 2015 Quarterly Economic Review: Northeast Ohio’s Manufacturing Remains Vital to Economy
From 1990 to 2015, Northeast Ohio’s gross regional product (GRP) for manufacturing grew 17%. Projections say it will grow another 25% over the next decade, to become a $53.3 billion sector of the economy, reports the April Cleveland Plus Economic Review.
“The fact remains that manufacturing continues to be an important part – and the largest sector – of the region’s economy,” said Jim Clay, chairman and CEO of Westfield Group and Team NEO board chair.
The report indicates that there will be 49,000 job openings in production occupations by 2025.
“Northeast Ohio will offer a variety of stimulating career choices, including positions that require technological expertise – roles in additive manufacturing, or 3D printing, for example,” said Grant Goodrich, interim CEO of Team NEO. “It’s important for our youth – and their parents – to be aware of these opportunities in manufacturing for the future.”
Statistics from the Team NEO report include:
- GRP Grows as Efficiency Soars
- From 1990 to 2015, the GRP grew 17%. It is anticipated to grow another 25% by 2025.
- Productivity, or output per employee, grew 92% from 1990 to 2015. It is estimated to grow another 63% over the next 10 years.
- Growth in Manufacturing Sectors
- Transportation equipment manufacturing is projected to grow 52% over the next decade.
- Computer and electronic product manufacturing is predicted to grow 50% for this same time period.
- Largest Manufacturing Sectors in 2015
- Fabricated metal product manufacturing, transportation equipment manufacturing and chemical manufacturing are forecasted to make up nearly half of all manufacturing volume in 2025.
In addition, all of the economic indicators tracked in the report are trending up year-over-year:
- Total Employment is at 1.9 Million
- Employment is up 15,500 jobs from Q3 2013 to Q3 2014.
- NEO Unemployment Rate Declines 1.6%
- The Northeast Ohio unemployment rate averaged 5.9% in Q3 2014, down from 7.5% for the same time period in 2013.
- Construction, Service Sectors Experience Year-Over-Year Growth
- The construction sector gained 4,000 jobs from Q3 2013 to Q3 2014, while service added nearly 7,000 workers. Manufacturing added more than 2,500 jobs over the same time period.
- Well Production Activity Grows
- There are 845 total producing wells in the state, an increase of 19% from Q4 2014 to Q1 2015.
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. Team NEO uses Moody’s Economy.com and US Bureau of Labor Statistics data and Ohio’s Labor Market Information to aggregate regional figures. The nonprofit organization uses the information to attract new businesses and jobs to Northeast Ohio.