Stock-Market-Trends

Manufacturing Pulled Northeast Ohio Out of Recession

Four out of every 10 new jobs added in past three years was from manufacturing.

Between 2010 and 2012, Northeastern Ohio's manufacturing sector grew in employment, exports, average wages and gross regional product, according to a report released today.

The Manufacturing Advocacy & Growth Network (MAGNET) report, “2013 Manufacturing Brief”,  produced by the Center for Economic Development at the Maxine Goodman Levin College of Urban Affairs of Cleveland State University, reported that in  2012 manufacturing accounted for 18.8% of GRP (Gross Regional Product).This is significantly higher than manufacturing’s 16.1% of the remainder of Ohio’s gross state product and the national share of 12%.

Manufacturing contributed $35.5 billion to regional GRP, more than $14.2 billion higher than the second largest contributor, the real estate and rental and leasing industry.  Manufacturing GRP in Northeast Ohio grew by 18.2%, adding $5.5 billion between 2010 and 2012.

Manufacturing growth helped achieve a regional GRP growth rate of 3.5%, which exceeded the national rate of 2.7%. Excluding manufacturing, the regional GRP would have shrunk to just 0.6%, showing how vital manufacturing was from 2010 through 2012 for GRP growth.   

In terms of jobs, manufacturing employment grew by 8.2%, more than doubling the national manufacturing growth rate of 3.7% and outpacing the 5.1% manufacturing growth in the rest of Ohio.

Northeast Ohio manufacturers added 20,059 jobs from 2010 through 2012, that is four out of every ten new jobs (42.1%) created in the region.

 “The report also suggests two areas that could sustain growth in the region’s manufacturing sector: increased exports and the development of Utica Shale,” said Daniel E. Berry,CEO of MAGNET.  V&M Star in Youngstown and US Steel in Lorain have already begun producing tubular steel for shale development. 

In looking to future opportunities, the CSU report noted that manufacturing exports increased 16.6% from 2010 through 2012, from $21.5 billion to $25 billion.  This follows the continued U.S. growth in manufacturing exports which have been growing more than seven times faster than gross domestic product since 2005. 

Additional findings include:

  • the average manufacturing wage in Northeast Ohio in 2012 was $58,168, which is 31.1% greater than the average wage for all sectors of the economy ($44,367)
  •  between 2010 through 2012, manufacturing average wages grew by 9.5%, a rate faster than both the growth in the remainder of Ohio (6.6%) and the national average (8.1%)
  • manufacturing is the second largest sector in Northeast Ohio in terms of employment, with over 263,516 jobs
  •  Except for plastics and rubber products, the four largest industries also grew at the fastest rates and added the most jobs between 2010 and 2012
  • the largest contributing manufacturing sectors to GRP were:

---fabricated metal products at $6.3 billion

---chemicals at $5.9 billion

---transportation equipment at $3.3 billion

---and machinery at $3 billion.

Read more about the region's success.

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