Team NEO provides insights on potential for the Northeast Ohio Region to capitalize on this great opportunity
The electric vehicles (EV) market has made a lot of headlines in recent years, and Northeast Ohio has a very strong opportunity to participate in expected growth by leveraging our embedded automotive and other vehicle supply chains centered on traditional internal combustion engine technology. Innovation in battery, ceramics and polymers, semiconductors and electrification will all play an important role in Northeast Ohio’s success in capitalizing upon the industry transformation in the industry and expected growth through 2029. Team NEO’s Quarterly Economic Review, released today, showcases that the Northeast Ohio Region is well position to support the growth of the U.S. EV industry.
- The U.S. production of electrified vehicles is projected to grow from 2.7 million in 2022 to 8.7 million in 2029.
- Key industries in the Northeast Ohio Region that can serve the supply chain are projected to grow in the next five years, including:
- Semiconductor & other electronic component manufacturing at 34% growth
- Plastic product manufacturing at 16% growth
- Motor vehicle parts manufacturing at 15% growth
- Industries that supply and purchase from the EV market show high location quotients (LQs). A high LQ (1.0 is the national average), signals deep supply chains, robust talent pools, and export activity. In fact, there are 17 of the top 20 EV-related supply chain sectors with a higher-than-average concentration in Northeast Ohio.
- In 2022, there was $43.5 million in sales to EV manufacturers – this represents 24% of the state’s sales.
- In 2022, there was more than $50 million in purchases from the EV supply chain.
“The opportunity is great in Northeast Ohio for this emerging industry,” said Team NEO Chief Executive Officer Bill Koehler. “As vehicle manufacturers build new supply chains that require embedded electric vehicle technologies, Northeast Ohio can increase our share of components and vehicles produced in our region. We have deep R&D, workforce, and manufacturing infrastructure assets that are attractive to companies here as well as those considering their first investment in Northeast Ohio.”
Team NEO publishes the Quarterly Economic Review to provide a holistic picture of the 18 counties of the Northeast Ohio Region’s economy. The nonprofit organization uses this information to attract new businesses and jobs to Northeast Ohio and help those that are here grow. For this QER report, LightCast was used to aggregate regional figures. Data from LMC Automotive, Q1 2022 was utilized for national figures.
About Team NEO
Team NEO is a private, nonprofit economic development organization accelerating business growth and job creation throughout the 18 counties of the Northeast Ohio Region. As the designated JobsOhio Network Partner, we align and amplify local economic development efforts in the region’s 18-counties; we conduct research and data analysis to inform local conversations and influence solutions; we market the Northeast Ohio Region; and we work to increase access to jobs, education and training for the region’s 4.3 million people. We do this to build a more vibrant regional economy; one that is more talented, equitable, competitive, innovative, resilient, and prosperous. For more information, visit chrisr359.sg-host.com.