When looking at investment and the prospects for setting up new manufacturing plants in Ohio, the economic landscape is propitious.
As Ohio manufacturers continue to produce products and goods for domestic use, the US industry also boasts a healthy export output.
Based on 2021 figures, Ohio is responsible for manufacturing about $45bn in exported products, with exports distributed to approximately to 200 countries and territories.
According to a report by the Bureau of Economic Analysis, Ohio had a GDP of $656.2bn in the third quarter of 2017, up from $517.1bn in 2012 and $501.3bn in 2011, with positive post-pandemic forecasts.
By 2021, Ohio had a total output of about $108bn in the sector, with more than 12,000 manufacturing companies based in the state, which translates to 12.6% of the Ohio workforce. Capital city Columbus has a population of about 900,000, with other major cities and areas to invest in Ohio including Cleveland and Dayton.
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As with other cities in the state, it has a high-performing and increasingly diverse economy, with manufacturing a significant contributor to the economic strength of Ohio.
Manufacturing ranks top of major economic sectors in Ohio
Ohio is an economically strong state with numerous major industry employers in a range of diverse sectors.
These sectors include aerospace and defence, bioscience, healthcare, life sciences, agriculture, banking, fashion logistics, steel, energy, hospitality, retail and technology.
When considering new manufacturing plants in Ohio, the economic output and infrastructure strength of the industry is a major factor for many business leaders.
In the financial hierarchy of Ohio’s 20 major economic sectors, manufacturing is the largest in terms of output, the number of employees and overall GDP.
With a per annum payroll of approximately $42bn, the industry is established, thriving and a good advert for setting up manufacturing plants in Ohio.
According to official state figures as of the first quarter of 2022, Ohio’s annual manufacturing GDP was nearly $128bn.
In terms of the US overall, the only states with greater manufacturing output and higher sector employee numbers than Ohio are California and Texas.
Ohio manufacturing sector encouraging further investments
Ohio boasts a strong economy in many sectors and a skilled workforce across many industries, with manufacturing ranking as the top sector. And this industry is still expanding.
As recently as 2020, the gross state product (GSP) of Ohio was recorded at $675bn. Not only is the state the seventh-largest economy in the US, it also ranks highly in terms of manufacturing.
With a regulatory system in Ohio that offers an economically propitious environment for new enterprises, starting a new business in the state can be an attractive proposition.
According to a recent report, Ohio ranks 15th best state in the US for doing business, whether a start-up or an expanding company.
Salaries and career prospects high in manufacturing plants in Ohio
A key area when looking to start manufacturing plants in Ohio is the ability to attract a skilled workforce, often relating to the pay that can be offered.
In terms of employee pay in the sector, Ohio manufacturing jobs average a salary of almost $63,000, with career advancement opportunities and pay rises often common due to the growth in the industry.
When looking for the best place to start a manufacturing business, the kind of tax-incentive environment that Ohio offers is something that companies and potential investors see as positive.
Considering its strong, existing and burgeoning manufacturing sector, the skilled workforce and its position as the third largest for economic output and jobs in the sector, setting up a manufacturing business in the state is clearly a viable option.
Collaboration and state initiatives
With a range of tax incentives and initiatives for new businesses, the opportunity to open new manufacturing plants in Ohio has become fiscally attractive.
The recently created Ohio Job Creation Tax Credit scheme provides new and existing business owners with the benefit of obtaining a refundable tax credit against their commercial activity tax.
When starting a business, this fiscal stimulus can be a deciding factor when choosing where to operate and locate a manufacturing plant.
Alongside the state’s favourable insurance premium tax, Ohio’s corporate franchise tax and an employee’s individual personal income tax breaks, the fiscal landscape is business-friendly and attractive to investors and companies looking to open a new manufacturing plant.
Complementing the fiscal incentives is the state and business collaboration network established across Ohio.
For individuals or companies looking to open new manufacturing plants in Ohio, the benefits of a state-wide network of industry sector partnerships can be key.
Manufacturers across Ohio encouraging workers into the sector
As well as state support, this network of collaborative operations is driven and led by Ohio manufacturers working together to promote local manufacturing careers and address regional workforce challenges within the industry.
Ultimately, there is a concerted effort within the industry to strengthen employment numbers, create well-paying jobs in modern manufacturing and increase educational options to encourage a steady stream of highly skilled workers.
With all this emerging and established strength and investment in the industry, the opportunities to open new manufacturing plants in Ohio look as prosperous as ever.
Information, Data, and Statistics from Statistica, Globalisation and World Cities Research Network, Ohio Chamber of Industry and Commerce, US Census Bureau, Drive Electric Ohio.