Opportunities to invest in Ohio shaped by strong fiscal forecasts
A Midwestern state with a population of about 11.9 million, Ohio has a diverse economy and several major centres of business and industry for those looking to invest in the area.
According to a report by the Bureau of Economic Analysis, by early 2023, Ohio had a GDP of $656.19bn in the third quarter up from $517.1bn from the previous year.
Capital city Columbus has a population of around 900,000, with other major cities and areas to invest in Ohio including Cleveland, Dayton and Toledo.
As with other cities in the state, it has a high-performing and increasingly diverse economy.
Major industry employers in Ohio incorporate a range of sectors, including aerospace and defence, bioscience, healthcare, life sciences, agriculture, banking, fashion logistics, steel, energy, hospitality, retail and technology.
Market conditions attracting people and companies to invest in Ohio
With an increasing demand for more living and business space coupled with rising living costs in major coastal US cities, a rising number of Americans are looking to former so-called Rust Belt cities for work, investments and property.
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According to a report by real estate research company Relocate America, Columbus is one of the primary markets for growth in property sales in the US.
With a range of industries and burgeoning population growth, as well as strong overall market conditions, it certainly features as one of the best places to set up an automotive business.
In 2020, the gross state product of Ohio was $675bn, ranking it as the seventh largest state economy in the US.
When considering whether to invest in Ohio, its position as third in the US for the manufacturing industry gross domestic product (GDP) is an attractive statistic.
More than 170,000 new businesses were created in Ohio in 2020, showcasing the desire to invest in the state across numerous sectors, both traditional (such as manufacturing) and more recently newer industries, such as high-tech start-ups.
Rise in companies investing in Cleveland
Boasting a diverse economy, Cleveland has major employers from sectors including healthcare, banking, finance, education, insurance, manufacturing, sports and tech.
It is also home to cultural institutions, national sports teams and many prosperous industries.
With a GDP of about $135bn in 2019, it is the economic hub of the state. The Cleveland economy is proving to be a friendly environment for start-up businesses with various tax incentives available for new enterprises.
When businesses and start-ups are looking to invest in Cleveland, Ohio Job Creation Tax Credit schemes provide an opportunity for business owners to obtain a refundable tax credit against their commercial activity tax.
Coupled with favourable insurance premium tax, Ohio corporate franchise tax and employee’s individual personal income tax breaks, the fiscal landscape is business-friendly and attractive to investors.
It is this kind of business investment promotion incentive that suggests Cleveland should appear on the list when exploring the best place to set up any kind of business in the US, particularly automotives.
Signalling the growth of emerging industries in Ohio, Forbes magazine has forecast that Cleveland could be the next major US tech hub, with 180 tech companies already trading in the region.
In the automotive sector, General Motors has announced a $918 million investment in its US manufacturing sites. A significant portion of that money has been committed to their existing Ohio facility, largely to support the manufacturing of castings and components needed for EV production lines.
With this new tech economy, the population is growing and the benefits for other businesses are numerous, including a population with more disposable income for items such as cars and real estate.
As the erstwhile centre of the US automotive industry, home to seven major car manufacturers the city has a storied history in this sector.
Investing in Dayton driven by major industry presence
From aviation innovation to the ubiquitous cash register, the hydraulic jump to Second World War code-breaking machines, Dayton has a storied history and a long-established reputation for producing thriving industries industries and nurturing innovation.
With major industry infrastructures and companies including Kroger, Proctor and Gamble, Goodyear and the American Electric Power Company operating across the region, the drive to invest in Dayton, Ohio continues to grow.
As well as these investment strengths, Dayton has a business-friendly environment that has seen businesses from numerous and diverse sectors deciding to locate there.
Investments and business opportunities in the city are driven by several major industry clusters. These include aerospace R&D, biotech and life sciences, high tech/IT and advanced material manufacturing.
Alongside other industries in the region, including steel and banking, these sectors continue to deliver sustained and ongoing growth in terms of both fiscal figures and employee numbers.
Economic momentum helps improve investing in Toledo opportunities
When it comes to expanding businesses and start-ups, Toledo has emerged as a hub for numerous sectors, as its fiscal momentum continues to progress.
As the fourth most populous city in the state, after Columbus, Cleveland, and Cincinnati, it has a diverse economy and highly skilled workforce.
In an official report by the City of Toledo, in 2022 alone there have been $2.2bn-worth of development projects spanning multiple industries.
These are forecast to create approximately 3,500 new jobs and more than 1,000 new residential housing units, showcasing the genuine investment strengths of the city and Ohio overall.
Information, Data, and Statistics from Statistica, Globalisation and World Cities Research Network, Ohio Chamber of Industry and Commerce, US Census Bureau