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
- Report
- QER