The shift from traditional manufacturing to advanced manufacturing plays critical role in region’s economic transformation.
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 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. U.S. output is projected to grow 33%.
“Manufacturing output in Northeast Ohio has lagged the U.S. for more than 20 years,” says 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 U.S. 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 U.S. average.
Statistics from the report include:
- Manufacturing Gross Product Reverses Trend
- From 1990 to 2010 there was a significant negative gap in the growth of manufacturing gross product between Northeast Ohio and the U.S.. 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 U.S.
- Several key sectors – plastics and rubber (104%), chemicals (67%) and food (24%) – are projected to grow faster than the U.S.
- Cleveland Plus Employment Remains Steady
- Employment is at 2.04 million workers in Q4 2012, remaining flat over Q4 2011.
- Unemployment Rate Lower than National Rate
- 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
- Year-over-year, manufacturing employment increased 3.1%, adding 7,000 jobs
- Well Activity Increasing in Ohio
- In Q4 2012, 73 wells were permitted, 17 newly drilled and six began producing