Northeast Ohio Manufacturing GRP Projected to Outpace US Through 2020
The shift from traditional manufacturing to advanced manufacturing is playing a critical role in the region’s economic transformation, reports the fourth quarterly Cleveland Plus Economic Review released today by Team NEO. Between 2010 and 2020, manufacturing Gross Regional Product (GRP) is projected to grow 39%, to a $43 billion sector of the economy. US output is projected to grow 33%.
“Manufacturing output in Northeast Ohio has lagged the US for more than twenty years,” said Tom Waltermire, CEO of Team NEO. “However, we are producing as much today as we did in 1990. We still manufacture many things here – but what we make has changed. We are more productive and that has led to fewer jobs than in the past. Outpacing US manufacturing growth for the remainder of this decade would be a significant change. It will fuel purchases of goods and services across the region and stabilize employment. In fact, manufacturers will be actively hiring new workers simply to keep up with a large number of retirements.”
The Economic Review also provides updates on current economic activity. Growth in the fourth quarter was slower than earlier in the year. Unemployment remains better than the US average.
Statistics from the report include:
• Manufacturing Gross Product Reverses Trend
o From 1990 to 2010 there was a significant negative gap in the growth of manufacturing gross product between Northeast Ohio and the US. From 2010 to 2020 output is projected to grow faster for Northeast Ohio (39%) than the US (33%)
• Key Manufacturing Sectors To Grow Faster than the US
o Several key sectors – plastics and rubber (104%), chemicals (67%) and food (24%) – are projected to grow faster than the US
• Cleveland Plus Employment Remains Steady
o Employment is at 2.04 million workers in Q4 2012, remaining flat over Q4 2011.
• Unemployment Rate Lower than National Rate
o Northeast Ohio’s unemployment rate at 6.6% represents a 1% year-over-year decline. This compares with the US unemployment rate of 7.5%
• Manufacturing Employment Continues to Grow
o Year-over-year, manufacturing employment increased 3.1%, adding 7,000 jobs
• Well Activity Increasing in Ohio
o In Q4 2012, 73 wells were permitted, 17 newly drilled and six began producing
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 the information to attract new businesses and jobs to the Cleveland Plus region.
Team NEO uses Moody’s Economy.com and US Bureau of Labor Statistics data and Ohio’s Labor Marketing Information to aggregate regional figures.
Team NEO advances Northeast Ohio’s economy by marketing the region’s many assets, attracting new businesses from around the world, building collaboration among the 18-county region’s economic development organizations and linking the region to the state’s JobsOhio program. Since 2007, the organization has attracted 67 new company operations, more than 5,900 new jobs and $243 million in annual payroll to Northeast Ohio, leading to a total annual regional payroll benefit of more than $575 million.
- Economic Data