January 2015 Quarterly Economic Review: Northeast Ohio’s Economy Diversifies
From 1990 – 2015, Northeast Ohio’s gross regional product (GRP) grew 45% and is predicted to grow another 14% by 2025, reports the January 2015 Cleveland Plus Economic Review. Employment increased slightly – 3% from 1990 – 2015, with projections of 5% growth over the coming decade (2015 – 2025).
“Northeast Ohio’s economy has grown and diversified since 1990,” said Team NEO Board Co-chair David T. Abbott, executive director of The George Gund Foundation. “While the pace of growth has been slower than desired, our expansion into other industries has made us more resilient to contractions in manufacturing and provided us with opportunities for faster, long-term growth.”
The report shows that employment growth in sectors such as healthcare, professional, scientific and technical services, and headquarters grew from 1990 to 2015 and helped to offset significant declines in manufacturing employment. Manufacturing remains the largest sector of Northeast Ohio’s economy – accounting for 19% of GRP. Despite declines in employment, manufacturing GRP has grown 13% since 1990.
“The strength of Northeast Ohio’s healthcare sector provides a solid foundation for growth into related areas such as biomedical – one of the high-potential sectors identified by the Regional Economic Competitiveness Strategy for increased focus and investment,” said Grant Goodrich, Interim CEO of Team NEO.
Statistics from the report include:
- Employment Growth Shifts
- Declines in manufacturing employment, down 40%, from 1990 – 2015, have been offset by growth in healthcare (+64%), professional, scientific and technical services (+21%), and headquarters (+100%) employment
- GRP Growth
- From 2015 – 2025, Northeast Ohio GRP is projected to grow 14% to become a $247 billion economy
- Manufacturing remains the largest sector of Northeast Ohio’s economy – accounting for 19% of GRP. Despite declines in employment, manufacturing GRP has grown 13% since 1990. It is expected to grow 34% over the next decade to become a $56 billion sector, or 23% of the economy.
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 13,000 jobs from Q2 2013 to Q2 2014
- NEO Unemployment Rate Declines
- Northeast Ohio unemployment rate is 6.1% for Q2 2014, down from 7.4% for the same time period in 2013
- All Sectors Experienced Year-Over-Year Growth
- The services sector gained 7,100 jobs from Q2 2013 to Q2 2014, while construction added more than 3,100 workers and manufacturing grew more than 1,000 jobs for the same time period
- Well Activity Continues to Increase
- The number of producing wells grew to 713 currently in production in the state, up 141 wells, or almost 25% from Q3 2014 to Q4 2014. Further, wells in production are up 401, or 128% year-over-year
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.