August 2015 Quarterly Economic Review: Northeast Ohio’s Headquarters and Professional Services Sector Continues Upward Trend
The latest Quarterly Economic Review released by Team NEO reflects continued upward momentum in the headquarters and professional services sector in the Cleveland Plus region, a sector that today employs 137,000 workers and represents more than $19 billion of the Northeast Ohio economy.
The report cites the relocation of Goodyear Tire & Rubber Company’s Latin American headquarters to Akron, and of Nestlé’s Pizza Division to Solon, as evidence of corporations’ confidence in, and commitment to, the region.
“Corporations, including many Fortune 1000 companies, recognize that Northeast Ohio offers the resources and business climate they need to thrive,” said Team NEO CEO Bill Koehler. “Our robust workforce, exceptional logistics and communications infrastructure, and outstanding quality of life make this region the ideal location for anchoring and expanding businesses.”
The report goes on to say that Northeast Ohio, which has the fourth-highest concentration of headquarters employment among the largest metros in the United States, is projected to add another 12,000 jobs in this sector by 2025.
Since 2000, the headquarters and professional services sector has performed as follows:
- GRP Grew 40%
- This sector outperformed the overall region (9%) as well as the US (30%) from 2000 to 2015. GRP is projected to grow another 16% in the coming decade.
- Employment Increased 18%
- Nearly 21,000 jobs were created in this sector from 2000 to 2015, a period during which overall employment across Northeast Ohio declined.
The economic indicators representing all sectors of industry in Northeast Ohio reflect positive year-over-year momentum as well:
- Total Employment is 1.92 Million
- Comparing Q4 2014 to Q4 2013, employment is up more than 18,000 jobs, representing nearly double the job growth from Q4 2012 to Q4 2013.
- Unemployment Is Down 1.9%
- The Northeast Ohio unemployment rate averaged 5.2% in Q4 2014, down from 7.1% for the same time period in 2013.
- Construction, Manufacturing and Service Sectors Grow
- Construction employment increased by 4.8% from Q4 2013 to Q4 2014, an increase of 3,300 jobs. The manufacturing sector grew by 3,900 jobs (1.5%), and the service sector by 10,000 jobs (0.8%).
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.
About Team NEO
Team NEO is a regional, private-sector organization that markets Northeast Ohio to the world and collaborates with its partners and others to attract new businesses, help those that are here grow, and accelerate the pace and impact of innovation in the region. As the regional network partner for JobsOhio, we support the retention and expansion work of our 18 county partners by connecting them, and their client companies, with both state and JobsOhio programs and incentives, as well as resources across Northeast Ohio. We use our industry knowledge and connections to enhance innovation among driver industries and to identify and develop emerging technologies and markets where the region has a competitive edge.