< Previous98 OHIO BUSINESS GROWTH GUIDE center that will open in 2025 in the Columbus Innovation District. The project leverages the $100 million JobsOhio Research and Development Center Grant program, which helps support JobsOhio’s targeted industries. Quick Progress, Max Flexibility Mark Honda Hub Honda has made a habit of partnering ever since it started manufacturing motorcycles in Ohio in 1979. No reason to stop now. The company in February 2023 joined with LG Energy Solution to break ground on a 2.8-million-sq.-ft. EV battery plant in Fayette County where the companies will invest $3.5 billion initially and eventually $4.4 billion in a complex that will create 2,200 jobs. In this archive photo from late 2022, a tech lead and process engineer at Ultium Cells — the JV between General Motors and LG Energy Solution — inspect a cell as it proceeds through the assembly line at the company’s plant in Warren, Ohio. Photo by Roger Mastroianni courtesy of Ultium Cells (continued from page 95)OHIO BUSINESS GROWTH GUIDE 99 In April, Honda said it is making “critical progress” in the establishment of its EV Hub in Ohio as it ramps up to production in late 2025. Retooling includes preparation in-house assembly of the Intelligent Power Unit (IPU), which houses the EV battery and serves as part of the vehicle platform. Honda is targeting 100% zero emissions vehicle sales by 2040. The company said it “expects to hire 300 associates” at its Ohio EV Hub, while 300 associates at the Marysville Auto Plant will upskill for IPU assembly. Honda has committed to investing at least $700 million to transform its Marysville Auto Plant, East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP) to lead the start of EV production in North America using batteries made at the JV with LG. East Liberty is also the location of Transportation Research Center Inc.’s headquarters and Ohio facility (TRC Ohio), located on 4,500 acres 40 miles northwest of Columbus. TRC Ohio operates 24/7 with a variety of facilities including road courses, wooded trails, a 7.5- mile high-speed oval test track and a 50-acre vehicle dynamics area. The momentum is contagious as EV ecosystem projects keep popping up. Mobis US Electrified Powertrain LLC, whose parent company is based in South Korea, in December 2023 announced it will invest $13.8 million and create 185 jobs at a new factory in Toledo, where it’s been operating for 20 years, to assemble battery packs for electric and plug-in hybrid EVs. The Ultium Cells plant in Warren is all systems go. GM is investing $55 million in its facility in Defiance, where $47 million will prepare the facility to build a variety of block castings to support future V-8 engine programs and $8 million will help build a casting development cell for castings to support future EV strategies. Honda says it too will have the flexibility to produce both internal “ We are convinced that the trend towards more electrification will continue. ” — Klaus Rosenfeld, CEO of Schaeffler AG, on the company’s commitment to growth in the Americas and in Wooster and Dover, Ohio, February 2024combustion engine (ICE) and EVs on the same line at MAP, its first auto production facility in America, “giving the company a strategic advantage to quickly respond to shifting market demand while also demonstrating the ingenuity and experience of its associates to design a uniquely flexible assembly line. The EV Hub will serve as “a roadmap for production of electric vehicles in North America,” the company said. That roadmap became clearer in late April when the company said it would invest the equivalent of US $11 billion to “build a comprehensive electric vehicle value chain in Canada” based on the model created in Ohio. It appears Ohio automotive innovation is worth trying to replicate. But nothing beats the original. LG Energy Solution and Honda marked Leap Day on February 29, 2024, by erecting the final structural steel beam at the JV’s new $4.4 billion, 2,200-job EV battery production facility being constructed near Jeffersonville, Ohio, where ground was broken almost exactly one year earlier. Photo courtesy of Hondaow many of Ohio’s 6,200 tech industry graduates each year will launch their careers at Intel’s microchip factories in Licking County near Columbus? A lot, most likely. Many more will fi nd their dream job at one of the many supplier companies that already have announced projects nearby. In January 2022, Intel announced plans to invest more than $20 billion to construct two chip factories on a 1,000-acre site that has room for six more. When those are built, Intel will have invested $100 billion in the complex. In March 2024, Intel and the Department of Commerce signed a preliminary memorandum of terms whereby the chip giant would receive up to $8.5 billion of CHIPS and Science Act funding. Some of that would be earmarked for investments in other sites. H Ohio helps its technology startups grow, too. WHERE BIG TECH COMPANIES MAKE BIG INVESTMENTS TECHNOLOGY by MARK AREND OHIO BUSINESS GROWTH GUIDE 101 A rendering of Intel’s processor factories in Licking County, where production is scheduled to begin between 2026 and 2027. Rendering courtesy of Intel102 OHIO BUSINESS GROWTH GUIDE The initial phase will create 3,000 Intel jobs, but many more thousands will be created as the suppliers and partner operations come online. Four had indicated plans to establish operations in the region at the time Intel announced its Ohio plans — Applied Materials (equipment, services and software), LAM Research (wafer-fabrication equipment), Air Products (industrial gases and equipment) and Ultra Clean Technology (critical subsystems, cleaning and analytical systems). “Intel’s announcement to build its latest manufacturing facility in Ohio is an exciting step forward for the U.S. semiconductor indus- try,” said Tim Archer, president and CEO of Lam Research, in an Intel release. “Ohio offers access to a diverse workforce, robust infra- structure and a great education system, and we are committed to growing our own capabilities in the region to support Intel’s success.” Net tech employment in Ohio is nearly 269,000 workers — that’s s a combination of tech occupation jobs and tech industry jobs — according to the State of the Tech Workforce 2024 report from the Computing Technology Industry Association (CompTIA). That’s 4.7% net employment as a percentage of Ohio’s overall workforce. The state is home to 21,098 technology business establishments, notes CompTIA, and the estimated direct economic impact of the technology sector is $33.7 billion. Billions With a ‘B’ Speaking of billions of dollars, Amazon Web Services (AWS) announced in June 2023 a $7.8 billion investment to expand its data center operations in central Ohio. AWS already has data centers in Franklin and Licking Counties and employs close to 1,000 Ohioans. “Since 2015, AWS has invested more than $6 billion in Ohio while supporting thousands of local jobs,” noted Roger Wehner, director of economic development, in a statement. “This additional investment will bring new, well-paying jobs and will continue to boost the state’s gross domestic product each year.” AWS estimates it has contributed more than $2 billion in economic benefit to Ohio already. “Technology is evolving at breakneck speeds, as we have seen with the rapid growth of AI, and those states with the strongest cloud computing capabilities will have a competitive advantage for the jobs that rely on that computer infrastructure,” said Chris Berry, president of OhioX, a nonprofit membership organization that supports and connects Ohio’s innovation communities. “Since AWS’s arrival in 2016, Ohio has played a global role in powering all things technology — helping grow new startups, support our largest new enterprises, deliver innovation to government agencies, and help our businesses become more agile and innovate faster.” Also in the billions of dollars, Google weighed in with a $1.7 billion capital investment announcement in August 2023. It will expand its data center in New Albany, which opened in 2019, and build new data centers in Lancaster and Columbus. Making Capital Accessible Ohio technology companies seeking a role in the state’s IT ecosystem got a boost in August 2023 with the launch of two funds designed to facilitate growth of homegrown tech companies. The Ohio Early Stage Focus Fund targets startup tech companies owned by women or minorities or are located in areas with limited access to venture capital. Investment managers can apply for $1 million to $5 million of the fund’s $36 million. The Ohio Venture Fund makes capital available to investment funds seeking to work with Ohio technology companies through Series A financing. Investors can apply for $5 million to $10 million of the fund’s $75 million. “Venture capital isn’t just an investment; it’s a catalyst for innovation and a testament to the power of bold ideas here in Ohio,” said Lt. Governor Jon Husted at the launch of the two funds. “Venture capital fuels the dreams that redefine industries, empowering pioneers to shape the future we envision today. This will help pave the way for sustained technological advancement and further reinforce Ohio’s position as the Silicon Heartland.” The Fifth Third Bank headquarters building at Fountain Square in Cincinnati. Photo courtesy of Fifth Third Bank 104 OHIO BUSINESS GROWTH GUIDE FINANCIAL SERVICES wo of the 20 largest banks by assets in the U.S. are headquartered in Ohio — Fifth Third Bank in Cincinnati and Huntington Bancshares in Columbus. Cleveland-based KeyBank makes the top 50. But there is much more to Ohio’s financial services industry than that. Ohio is also a leading location for payment processors, insurance operations and fintech companies, among others. Companies in these sectors could locate in better-known financial centers such as New York, San Francisco or Chicago. But they’re coming to Ohio for the talent — especially IT talent — and real estate they can procure at a fraction of the cost of other locations. Those are advantages for the employers. Their employees benefit from a cost of living they could never enjoy in an East or West Coast financial center. Access to IT talent is a top location criterion for financial companies evaluating sites for their operations. And they’re finding it in Ohio. A recent example is global T HOW OHIO GROWS ITS FINANCE ECOSYSTEM by MARK ARENDOHIO BUSINESS GROWTH GUIDE 105 payment processing provider Worldpay’s decision to reestablish its corporate headquarters in Cincinnati now that it has spun off from Fidelity National Information Services. In December 2023, the company said it plans to create more than 500 jobs in the region. “Worldpay selecting Ohio for its headquarters showcases our position as a supportive environment for fintech innovation,” said Lt. Governor Jon Husted in a release. “Coupled with the Cincinnati Innovation District, this announcement allows Worldpay to tap into a rich talent pool of highly skilled professionals in finance, technology, and data analytics.” Worldpay’s CEO, Charles Drucker, said in the release that “Access to talent, quality of life, great educational institutions and the new direct flight from CVG Airport to London significantly contributed to the decision to make our corporate headquarters in Greater Cincinnati, connecting us to our customers worldwide.” Columbus Checks the Boxes Also in December, Wells Fargo announced the Columbus area as the location for a new financial services technology center, citing its supply of IT workers and labor costs as being among its site criteria. It’s investing $3.25 million in a facility in Easton. “There isn’t a more natural home for this chapter of our business than Columbus,” said Alan Varrasso, Wells Fargo’s chief information officer, in a statement. “Technology is moving rapidly, and we’ve carefully developed this project to meet the demands of the market. We’re looking forward to building out this new chapter of our business and making Ohio its home.” Phoenix-based Western Alliance Bank also picked the Columbus region, Westerville, specifically, for its new technology center. The company explained in a release that “its IT division is establishing a workforce in new geographies, like Westerville, to enable acquisition and retention of world-class data analytics, cybersecurity, software development, finance and IT talent. The banking company currently has nearly 3,400 full-time employees across its offices and is adding 150 positions with this expansion into the Columbus Region.” Why Ohio’s Capital? “The robust talent pipeline, concentration of finance and technology companies and competitive business environment in the Columbus Region is the type of ecosystem we were looking for when scouting locations across the country,” said Tim Boothe, chief operating officer, in the release. “The community amenities, strong corporate presence, Class A office product and talent acquisition practices made Westerville the top contender for this project, which will ultimately be a catalyst for the bank’s growth nationwide.” Meanwhile, Ohio has emerged as a leading state for fintech companies, with many growing rapidly in the state’s major metros. In early May, according to Built In, an online community for startups and technology companies, JPMorgan Chase, Pumpkin, Klarna, First Merchants Corporation, Upstart and Bread Financial all were hiring — and that’s just in Columbus. PNC Financial Services was hiring in Cleveland. And in Cincinnati, expanding fintech companies include First Financial Bank and Resurgent Capital Services. 106 OHIO BUSINESS GROWTH GUIDE AVIATION OHIO’S FLIGHT PLAN FOR THE FUTURE F light is in Ohio’s DNA. Ever since the Wright brothers designed and built the fi rst engine- powered aircraft in Dayton at the beginning of the 20th century, the state has been an aviation powerhouse. Today, it’s taking that heritage and applying it to the future of fl ight. It’s where electric air taxis and other electrical vertical takeoff and landing vehicles, commercial space stations and other advanced air mobility programs are underway. Ohio is home to multiple aviation and aerospace research institutions and facilities. These include the U.S. Air Force Research Laboratory at the Wright-Patterson Air Force Base in Dayton, the National Advanced Air Mobility Center of Excellence in Springfi eld, the NASA Glenn Research Center near Cleveland, NASA’s Neil Armstrong Test Facility in Sandusky, The Ohio State University’s Aerospace Research Center in Columbus, the Ohio Aerospace Institute in Dayton and Cleveland and the Ohio Uncrewed Aircraft Systems (UAS) Center in Springfi eld. The Buckeye State is home to more than 560 aviation and aerospace companies that combined employ 38,000 workers. It has the third largest manufacturing workforce in the U.S. and is a top supplier for leading airplane manufacturers, including Airbus and Boeing. Combined with state and federal employees, this sector employs over 110,000 people in Ohio. Electric vertical takeoff and landing (eVTOL) air taxi manufacturer Joby Aviation is locating its fi rst scaled production facility in Dayton, Ohio. Photo courtesy of Joby Aviation by MARK ARENDNext >