Economy of Ohio

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Ohio's state quarter. It states "Birthplace of Aviation Pioneers," in which Ohio's aerospace and defense industry is still economically strong.
Ohio's state quarter. It states "Birthplace of Aviation Pioneers," in which Ohio's aerospace and defense industry is still economically strong.

The economy of Ohio includes many historically strong industries, such as motor vehicle manufacturing, more traditional industries, such as agriculture, and new and developing sectors such as the information industry and food processing.

Ohio's food processing industry processes an estimated $23.5 billion of shipments annually.[1] Some of the largest food processing plants in the world are also located in Ohio: the world's largest yogurt processing plant is operated by Dannon in Auglaize County, Campbell's operates the world's largest soup processing plant in Napoleon, Heinz operates the world's single largest ketchup processing plant in Fremont, and General Mills operates the world's largest frozen pizza processing plant in Wellston.[1]

Wal-Mart is by far the largest single employer in Ohio,[2] with approximately 52,000 Ohio employees.[2] The largest Ohio employer with headquarters in Ohio is Kroger, with approximately 36,500 employees, and headquarters in Cincinnati, Ohio.[2]

Contents

[edit] General statistics

Wal-Mart is the single-largest private sector employer in Ohio, with approximately 52,000 employees in Ohio. Ohio's private sector is composed of 921,000 employers, which hire around 50.4% of Ohio's workforce, excluding agricultural operations.
Wal-Mart is the single-largest private sector employer in Ohio, with approximately 52,000 employees in Ohio. [3] Ohio's private sector is composed of 921,000 employers, which hire around 50.4% of Ohio's workforce, excluding agricultural operations.

Ohio's gross state product (GSP) was $461 billion as of 2006.[3] If Ohio were to be its own country, it would rank between Turkey and the Netherlands in its nominal gross domestic product.[4] The manufacturing sector contributes 19.3% of Ohio's GSP, followed closely by the financial activities sector with 18.3%.[3] Ohio has a developing technology sector and is home to over 28,000 employers that employ nearly 820,000 people; its rate of technology operations is 14% higher than the US average.[3]

Between 2004 and 2014, Ohio's employment is expected to grow by 425,800 jobs, or approximately 7.3%.[3] Personal income grew an average of 4.4% in 2006.[3] Roughly 14.3% of the state's 5,477,000 employees work in the manufacturing sector.[3] Major manufacturing employers include Timken Company, General Motors, and Honda. Ohio's exports are delivered to 205 countries and constitute 3.9% of total US exports;[3] major exports include motor vehicles and machinery.

[edit] Major employers

The following is a list of the top 10 Ohioan employers with headquarters in Ohio.[2]

Rank Employer Number of Ohio employees Headquarters location
1 Kroger 36,500 Cincinnati, Ohio
2 Cleveland Clinic Health System 29,000 Cleveland, Ohio
3 Ohio State University 24,400 Columbus, Ohio
4 Catholic Healthcare Partners 23,000 Cincinnati, Ohio
5 University Hospitals of Cleveland 21,800 Cleveland, Ohio
6 Wright-Patterson Air Force Base 18,260 Dayton, Ohio
7 Bob Evans Farms 17,500 Columbus, Ohio
8 OhioHealth 14,500 Columbus, Ohio
9 National City Corp. 14,250 Cleveland, Ohio
10 Nationwide Mutual Insurance Company 14,135 Columbus, Ohio

The following is a list of the top Ohioan employers with headquarters anywhere in the world.[2]

Rank Employer Number of Ohio employees Headquarters location
1 Wal-Mart 52,000 Bentonville, Arkansas
2 Kroger 36,500 Cincinnati, Ohio
3 Cleveland Clinic Health System 29,000 Cleveland, Ohio
4 Ohio State University 24,400 Columbus, Ohio
5 Catholic Healthcare Partners 23,000 Cincinnati, Ohio
6 University Hospitals of Cleveland 21,800 Cleveland, Ohio
7 Wright-Patterson Air Force Base 18,260 Dayton, Ohio
8 Bob Evans Farms 17,500 Columbus, Ohio
9 JPMorgan Chase 17,100 New York, New York
10 Meijer 16,300 Grand Rapids, Michigan

[edit] Industries

GE Aviation is a major manufacturer of aircraft engines in Ohio. Aircraft engine manufacturing accounts for nearly 75% of Ohio's aerospace and defense industry workforce.
GE Aviation is a major manufacturer of aircraft engines in Ohio. Aircraft engine manufacturing accounts for nearly 75% of Ohio's aerospace and defense industry workforce.

[edit] Aerospace and defense

The aerospace and defense industry employs 16,000 Ohioans.[5] Employment has been increasing after 2003, despite an overall decrease in employment since the industry's peak at 37,000 employees in 1990.[5] In 2005, Ohio ranked fifth among US states in the production of aerospace products and parts, and eighth in the number of aerospace industry workers.[5] Ohioan workers in the aerospace industry made an annual average salary of $75,765 in 2005, compared to $48,208 in for workers in the manufacturing sector generally.[5] Nearly 75% of the state's aerospace and defense employees work in the aircraft engine manufacturing sub-sector;[5] only Connecticut has larger aircraft engine workforce.[5] Notable aerospace and defense companies in Ohio include GE Aviation, Goodrich Corporation, and Aircraft Braking Systems.[5]

Defense systems play a smaller role in the industry. Ohio corporations were awarded around $5.5 billion of United States Department of Defense procurements.[5] Notable defense contractors include Goodyear Tire and Rubber Company, Lockheed Martin, and Armor Holdings.[5]

[edit] Agriculture

Tomatoes are an example of why Ohio's agriculture industry has deep relations with Ohio's food processing industry. Ohio is the 3rd largest producer of tomatoes out of all 50 states in the United States, and, in turn, the world's largest ketchup processing plant is located in Fremont, Ohio.
Tomatoes are an example of why Ohio's agriculture industry has deep relations with Ohio's food processing industry. Ohio is the 3rd largest producer of tomatoes out of all 50 states in the United States,[1] and, in turn, the world's largest ketchup processing plant is located in Fremont, Ohio.[1]

Ohio's agricultural market exports many different products. Ohio ranks 1st in the production of Swiss cheese out of all 50 states,[1] 2nd in eggs,[1] 3rd in tomatoes,[1] 6th in soybeans,[1] and 6th in corn for grain.[1] The agriculture and food processing and eatery industries are heavily intertwined in Ohio. For example, Ohio being the 3rd largest producer of tomatoes in the United States in turn has the world's largest ketchup processing plant in Fremont, Ohio.[1]

The number of farms in Ohio stood at 75,700, as of 2007,[6] covering 14,200,000 acres (57,000 km²) of land. The average farm size was 188 acres (0.76 km²).[6] However, the number of farms slowly decreased from 2006, where the number of farms in Ohio stood at 76,200.[6] The amount of land used for farms in Ohio also decreased from 2006, where 14,300,000 acres (58,000 km²) of land were used for agriculture.[6] However, the dairy sector of Ohio's agriculture industry is experiencing rapid growth in Ohio.[6] There were an estimated 274,000 dairy cows in Ohio in 2006,[6] whereas there were an estimated 276,000 dairy cows in Ohio in 2007. Annual dairy production increased in Ohio, whereas there was an estimated 4,860,000,000 pounds of dairy produced in 2006,[6] and an estimated 4,980,000,000 pounds of dairy produced in 2007.[6]

[edit] Food processing and eateries

Heinz operates the world's single largest ketchup processing facility in Fremont, Ohio. It processes thousands of bottles of ketchup each day, much like the one above.
Heinz operates the world's single largest ketchup processing facility in Fremont, Ohio. It processes thousands of bottles of ketchup each day, much like the one above.

Ohio's food processing industry produces $23.5 billion dollars in food shipments annually.[1] The frozen food industry is the largest sub-industry,[1] surpassing even the state of California by $700 million in frozen food shipments,[1] in which Ohio ships $2.4 billion dollars of frozen food shipments annually.[1] Ohio also ranks 1st out of every state in the United States in frozen food shipments and Ohio's frozen food industry accounts for 20.7% of the United States' frozen food processing.[1] Several of the world's largest food operating plants are operated in Ohio: the world's largest yogurt processing plant is operated by Dannon in Auglaize County, Campbell's operates the world's largest soup processing plant in Napoleon, Heinz operates the world's single largest ketchup processing plant in Fremont, and General Mills operates the world's largest frozen pizza processing plant in Wellston.[1] Major food processing companies in Ohio include Chiquita Brands International (Cincinnati), Kroger (Cincinnati), T. Marzetti Company (Columbus), The J.M. Smucker Co. (Orrville), and The Iams Company (Cincinnati).[1] Other food processing sub-industries that Ohio lead in include pet food (8.4% of the nation's pet food, ranking in 2nd), ketchup and dressings(7.6% of the nation's ketchup and dressing production, ranking 2nd), cookies and crackers (9.9% of the nation's production, ranking 4th), and soft drinks (6.2% of the nation's production, ranking 4th).[1] The county with the most food processing facilities is Hamilton County, followed by Franklin County and Stark County.[1] Major eateries headquartered in Ohio include Bob Evans Restaurants (Columbus) and Wendy's (Dublin).

[edit] Information

Ohio is in the 1st quintile in the information industry, in terms of establishments for the information industry.[7] In 2002, Ohio had reached 4,143 establishments, which are 3% of the United States' information establishments.[7] Information establishments include printing and publishing establishments, broadcasting establishments, and telecommunications establishments.[7] As of 2002, there were approximately 106,754 workers in Ohio working in the information industry.[7] The total industry ranks 8th out of all 50 states in the number of establishments, and 9th in the number of paid workers, which was 106,754 in 2002.[7] A main sector of the industry is the publishing sector.[7] The sector ranks 9th out of all states in the number of establishments,[7] which is 1,015,[7] and ranks 10th in the number of employees in the sector,[7] and 13th in its contribution to the gross state product.[7] Another prime sector in Ohio's information industry is the broadcasting sector.[7] The broadcasting sector ranks 9th out of all 50 states in the number of establishments,[7] which is 1,954,[7] 11th in number of paid workers,[7] and 11th to its contribution to Ohio's gross state product, which is $6.6 billion.[7]

[edit] Insurance

Ohio insurance employees work in a broad array of sub-industries. Around 44.8% of insurance employees work in fire, marine, and casualty insurance; this helps make Ohio the 4th largest casualty insurance state, in the measure of employees, trailing behind only California, New York, and Illinois.
Ohio insurance employees work in a broad array of sub-industries. Around 44.8% of insurance employees work in fire, marine, and casualty insurance; this helps make Ohio the 4th largest casualty insurance state, in the measure of employees, trailing behind only California, New York, and Illinois.[8]

Ohio is a major center for insurance corporations, ranking 6th out of all 50 states in the insurance industry, based on overall employment,[8] and Ohio ranks 4th in casualty insurance out of all 50 states.[8] As far as gross state product, from the period of 1990-1999 Ohio insurance contribution to Ohio's gross state product grew about 161% from $2.6 billion to $6.8 billion,[8] despite population growth from 1990-2000 of only about 4.67%, from 10,847,115 to 11,353,140.[9] Ohio's insurance employment is expected to grow continuously at a rate of 9.8%.[8] Ohio is home to the 3rd most claim examiners in the United States, out of all 50 states.

Five Fortune 500 companies are Ohio-based insurance companies.[8] These companies are:

[edit] Iron and steel

Ohio produces between 14% and 17% of the United States' raw steel.[10] The sector of objects made from purchased steel in Ohio ranks 2nd out of all 50 states,[10] and 3rd in the sector of iron, steel, and ferroalloys.[10] Seventy percent of the United States' electrometallurgical ferroalloy manufacturing employees are located in Ohio.[10] The entire industry as a whole, although not as concentrated as the electrometallurgical ferroalloy manufacturing sector, employs 34,000 paid workers at 234 individual workplaces.[10] Ohio's 234 workplaces make up 9.5% of the United States industry's workplaces,[10] and the 34,000 paid workers make up 13.6% of the United States industry's workers.[10] Of these workers and workplaces, the sector of iron, steel, and ferroalloys make up the largest sector in Ohio's industry,[10] with 17,000 paid workers in 73 workplaces.[10] However, despite Ohio's large presence in the iron and steel market, employment rates have declined in Ohio,[10] generally attributed to weakening national economy.[10] Between 1998 and 2005, the number of Ohio iron and steel industry workers decreased from 52,700 to 34,000.[10] The Ohio Department of Development predicts the decreases will continue in coming years.[10] The average annual salary for iron and steel industry workers in Ohio was $59,686, compared the national industry average of $53,352.[10]

There are three Fortune 500 iron and steel manufacturers with world headquarters in Ohio:[10] AK Steel (Westchester, Ohio), Timken Company (Canton, Ohio), and Worthington Industries (Columbus, Ohio).

[edit] Rubbers and plastics

The rubber and plastics industry in Ohio is largely dominated by Goodyear Tire & Rubber, in terms of revenue, although there are more non-rubber producing Fortune 500 rubber and plastics companies in Ohio than Ohio Fortune 500 rubber and plastics companies that do produce rubber.
The rubber and plastics industry in Ohio is largely dominated by Goodyear Tire & Rubber, in terms of revenue, although there are more non-rubber producing Fortune 500 rubber and plastics companies in Ohio than Ohio Fortune 500 rubber and plastics companies that do produce rubber.

One of Ohio's historically strong industries is the rubber and plastics industry. Ohio ranks 1st of all 50 states in rubber and plastics production,[11] producing around $17.4 billion of rubber and plastics shipments annually.[11] Eight Fortune 1000 rubber and/or plastics corporations are located in Ohio:[11]

Ohio ranks 1st in the gross state product of the rubbers and plastics industry of any state.[11] For the 5-year period of 2000-2004, inflation-adjusted production increased around 10%.[11] In addition, in this period, the US rubber and plastics industry only grew 6%.[11]

Ohio exported around $1.3 billion worth of rubber and plastics shipments in 2006.[11] Rubber and plastics exports make up for 7.3% of total sales.[11] Canada is the largest importer of Ohio's $1.3 billion worth of exports, accounting for 46% of this amount.[11] The Census Bureau expects that an addition $1.1 billion worth of material is indirectly exported, through the means of other goods that are made from rubbers and plastics, including motor vehicles and machinery.[11]

However, despite increased production, employment has been decreasing in Ohio's rubber and plastic industry.[11] In 2000, Ohio employed around 92,000 rubber and plastics industry workers. By 2006, those rates have declined by about 26% to about 69,000 workers.[11] The Ohio Bureau of Labor Market Information predicts that, from 2004-2014, there will be 11,200 less workers in Ohio's industry.[11] They also predict that plastics employment in Ohio will decrease by 13.7%, and that rubber products employment will decrease by 20.7%.[11] The industry currently employs about 73,000 Ohio workers,[11] and employs about 12.3% of the United States' rubber employees, and 7.8% of the United States' plastics employees.[11]

[edit] Tourism

The Rock and Roll Hall of Fame is a well-visited tourist attraction in Cleveland, Ohio. This is one of many tourist attractions that help make up Ohio's diverse tourism industry.
The Rock and Roll Hall of Fame is a well-visited tourist attraction in Cleveland, Ohio. This is one of many tourist attractions that help make up Ohio's diverse tourism industry.
Ohio tourism expenditures by category. About 34.4% of the expenditures was food, making food the plurality of all Ohio tourism expenditures.
Ohio tourism expenditures by category. About 34.4% of the expenditures was food, making food the plurality of all Ohio tourism expenditures.

Ohio's tourism industry, although historically under-represented, is now growing stronger. For example, in 2006, the Ohio Department of Development reported that 173.8 million trips were taken either to Ohio, or within Ohio.[12] Although an estimated 139.2 million trips (around 80%) were one-day trips, an estimated 33.6 million trips were overnight trips.[12] Another one million trips are unaccounted for. 74% of overnight visitors came from Ohio or nearby states,[13] while another 26% came from both the rest of the United States' states and the rest of the world.[12] The Ohio Department of Development also reported that $33.7 billion were spent by tourists.[12] The analysis is as follows:[12]

The above expenditures give Ohio approximately $1.4 billion in state taxes and $702 million in local taxes.[14] Northeast Ohio received 29% of all tourism expenditures.[12] The tourism industry in Ohio currently gives work to 560,000 people directly, and many others indirectly.[12]

[edit] Vehicles

The Honda Accord was the single model that was most produced in Ohio. Almost all Accords are assembled in Marysville, Ohio. The Accord's Ohio production exceeded 200,000, one of only five models to do so in Ohio.
The Honda Accord was the single model that was most produced in Ohio.[15] Almost all Accords are assembled in Marysville, Ohio.[16] The Accord's Ohio production exceeded 200,000,[15] one of only five models to do so in Ohio.[15]

The current state of the motor vehicle industry in Ohio is mixed and dotted. In 2002, the Ohio motor vehicle industry produced about $16 billion of items.[15] This is about 14% of the automobile production of the United States, and Ohio outputs every state in production of motor vehicles except for Michigan.[15] These $16 billion account for approximately 4.1% of Ohio's gross state product; however, the motor vehicle industry only accounts for 1.1% of the United States' output.[15] In 2003, Ohio was able to produce about 1,885,000 motor vehicles, accounting for 15.6% of the United States' production, and, again, more than any state except for Michigan, in which 928,000 of these were automobiles.[15] The Ohio Department of Development estimates that there are 555 motor vehicle production establishments in Ohio, and that by employing around 138,000 people, Ohio motor vehicle production employees account for 12.7% of the United States' motor vehicle production employees.[15] Despite sharp losses since 1999, the motor vehicle production industry was able to recover in 2001, producing a net gain of 148,000 vehicles.[15] General Motors produced the plurality of motor vehicles in Ohio, with 36.5% of the production of motor vehicles in Ohio, followed closely by Honda with 35.9%. Other major motor vehicle producers in Ohio include DaimlerChrysler (with 17.5% of production) and Ford (with 10.5% of production).[15] However, despite the growth listed above, employment statistics and outlooks are much more grim. In 2004, the number of people employed in the motor vehicle assembly industry in Ohio was reported to be around 31,000, down from about 40,000 throughout the 1990s,[15] while in the motor vehicle parts production industry in Ohio, in December 1997, employment stood at approximately 122,000 employees;[15] however, that number dropped by about 26% to 90,000 employees by 2004.[15] Despite the growth facts above, the loss of employment is more likely to directly affect Ohio's economy. The Ohio Bureau of Labor Market Information estimates that there will be 3,300 less assembly employees and 2,400 less parts manufacturing employees in 2012 than 2002.[15] Some major motor vehicle assembly production plants in Ohio include the Toledo Complex and the Lordstown Assembly.

[edit] Per capita income

The state of Ohio's residents have an overall $33,338 per capita personal income, as of 2006, which ranks 29th in the United States.[17] However, incomes vary by county. The median family income in Cuyahoga County is $54,506,[18] where the Cleveland Clinic is the single largest employer,[19] but Cleveland also has emerging biotechnology and financial concentrations. It is also worthwhile to note that while some cities in Ohio have declining populations,[20][21] the overall growth in per capita income in Ohio increased by 4.6% from 2005-2006.[17]

[edit] Housing

According to the United States Census Bureau, there are an estimated 5,045,356 houses in Ohio, of which 4,499,506, or about 89.2% are estimated to be occupied;[22] this is 0.8% above the national average rate of occupation.[22] Houses with a mortgage are estimated to cost owners about $1,216 per month;[22] this is 0.8% above the national average rate of occupation,[22] which is $186 below the national average;[22] this is 0.8% above the national average rate of occupation.[22] The United States Census Bureau also estimates that 3,150,239 houses are owner-occupied,[22] or about 70%, which is 2.7% above the national average, and that an estimated 1,349,267 houses are renter-occupied[22]this is 0.8% above the national average rate of occupation,[22] or about 30%, which is 2.7% below the national average. The median house value is $135,200;[22] this is 0.8% above the national average rate of occupation,[22] or about 70%, which is 2.7% above the national average, and that an estimated 1,349,267 houses are renter-occupied,[22] which is $186 below the national average;[22] this is 0.8% above the national average rate of occupation,[22] which is a significant $50,000 below the national average. Also, there are an estimated 545,850 unoccupied houses;[22] this is 0.8% above the national average rate of occupation,[22] or about 10.8%, which is about 0.8% below the national average. It is also interesting to note that the plurality of houses in Ohio were built from 1940 to 1959 (1,175,325 houses),[23] and that 3,058,721 houses are in some way dependent on utility gas.[23]

[edit] Taxation

Below are the simple personal income tax rates for Ohio:[24]

Income range Tax rate per dollar earned
$0-$5000 0.743%
$5001-$10000 1.486%
$10001-$15000 2.972%
$15001-$20000 3.175%
$20001-$40000 4.457%
$40001-$80000 5.201%
$80001-$100000 5.943%
$100001-$200000 6.9%
$200001 or more 7.5%

[edit] References

  1. ^ a b c d e f g h i j k l m n o p q r s The Ohio Food Processing Industry. Ohio Department of Development (March, 2005). Retrieved on 2008-02-18.
  2. ^ a b c d e Major Ohio Employers. Ohio Department of Development (January, 2008). Retrieved on 2008-02-18.
  3. ^ a b c d e f g h Ohio Department of Development Economic Overview. Ohio Department of Development (January, 2008). Retrieved on 2008-02-17.
  4. ^ Total GDP 2006. The World Bank (2007-07-01). Retrieved on 2008-02-17.
  5. ^ a b c d e f g h i Ohio's Aerospace & Defense Industries. Ohio Department of Development (April, 2007). Retrieved on 2008-02-18.
  6. ^ a b c d e f g h Agricultural Statistics Database. National Agricultural Statistics Service. Retrieved on 2008-02-18.
  7. ^ a b c d e f g h i j k l m n o The Ohio Information Industry. Ohio Department of Development (2006-11-09). Retrieved on 2008-02-18.
  8. ^ a b c d e f The Insurance Carriers Industry in Ohio. Ohio Department of Development. Retrieved on 2008-02-18.
  9. ^ Ohio Population Finder. United States Census Bureau. Retrieved on 2008-02-18.
  10. ^ a b c d e f g h i j k l m n o Iron and Steel Industry of Ohio. Ohio Department of Development (January, 2008). Retrieved on 2008-02-18.
  11. ^ a b c d e f g h i j k l m n o p The Ohio Plastics and Rubber Products Industry. Ohio Department of Development (May, 2007). Retrieved on 2008-02-18.
  12. ^ a b c d e f g Travel & Tourism. Ohio Department of Development (2006-08-24). Retrieved on 2008-02-18.
  13. ^ This includes New York in surveys, even though it does not technically border Ohio
  14. ^ Ohio Travel & Tourism statistics. Ohio Travel Association (2007-04-18). Retrieved on 2008-02-18.
  15. ^ a b c d e f g h i j k l m n The Ohio Motor Vehicle Industry. Ohio Department of Development (December, 2007). Retrieved on 2008-02-19.
  16. ^ 2007 Honda Accord Expert Review. Newcartestdrive.com. Retrieved on 2008-02-19.
  17. ^ a b Lenze, David G.; K. Albetski (2007-03-27). State Personal Income, 2006. Bureau of Economic Analysis. Retrieved on 2008-02-19.
  18. ^ Cuyahoga County, Ohio, Fact Sheet. United States Census Bureau. Retrieved on 2008-02-19.
  19. ^ "Cleveland Clinic: Committed to Northeast Ohio", The Plain Dealer, 2007-08-17, pp. 1. Retrieved on 2008-08-19. 
  20. ^ Cleveland city, Ohio, Population Finder. United States Census Bureau. Retrieved on 2008-02-19.
  21. ^ Akron, Ohio, Population Finder. United States Census Bureau. Retrieved on 2008-02-19.
  22. ^ a b c d e f g h i j k l m n o p Ohio Fact Sheet. United States Census Bureau. Retrieved on 2008-02-19.
  23. ^ a b Ohio Housing statistics. Infoplease.com. Retrieved on 2008-02-19.
  24. ^ Ohio Income Tax Rates. Salary.com. Retrieved on 2008-02-19.

[edit] External links