Northeast Ohio’s Headquarters and Professional Services Sector Continues Upward Trend

August 2015 Quarterly Economic Review: Northeast Ohio’s
Headquarters and Professional Services Sector Continues Upward

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

“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

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

  • 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
  • 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

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 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.