< Previous38 OHIO BUSINESS GROWTH GUIDE In all cases, real per capita income in Ohio and these four metropolitan areas are higher than the U.S. average after accounting for regional cost-of-living differences. This is true because: •In all cases, in all years, the Regional Parity index is less than 100.0 in the state and the regions. •Unadjusted real per capita incomes are higher than the national average in all years in the Cleveland and Cincinnati metropolitan areas and from 2011 to 2017 and 2020 for the Columbus metro. •Because the regional cost of living is lower in Ohio and all its metropolitan areas than the U.S. average, the purchasing power of average incomes in Ohio and its regions is higher than the U.S. average. •The combination of lower-than- U.S. average cost of living and higher-than-U.S. average incomes in the Cincinnati and Cleveland metro areas, and frequently in the Columbus region, results in much higher purchasing power. Regional cost of living adjusted average incomes are 10.1% higher than the U.S. average in the Cleveland region and 12.5% higher in metro Cincinnati. The important aggregate comparative outcome measure from economic development is the real income generated from the outputs of economic development activity, which is the sales of goods and services from the region’s traded sector. These charts demonstrate that Ohio’s residents secure a better quality of life than the average American despite having slightly lower average incomes. The bottom line: Cost of living matters when considering economic development outcomes. Lessons for Site Selectors Ohio is a portfolio state made up of at least seven regional economies based on labor markets: Cincinnati CSA, Cleveland-Akron-Lorain CSA, Columbus MSA, Dayton MSA, Mahoning Valley (Youngstown- Warren), Toledo, and the emerging networked labor market region of North Central Ohio. Each region has broad product and industry portfolios that form its tradeable sectors, and all are connected by productive farmland. Destination living is a traded industry along the Lakeshore and in the parts of Appalachia that abut the three-C corridor. Ohio is a complicated place. Governor DeWine and Lieutenant Governor Husted have championed meaningful regional sector-led workforce training efforts to respond to the workforce shortages. The state’s higher education system increasingly embraces experiential education to produce a work-ready talent pool. The University of Cincinnati pioneered co-op education. The Ohio State University started experiential bachelor’s degree programs in engineering technology on its four regional campuses and at its Agricultural Technical Institute in Wooster. The University of Dayton, Ohio Northern University and Youngstown State University embrace co-op education and engineering technology.OHIO BUSINESS GROWTH GUIDE 39 Dr. Edward (Ned) Hill is a Professor of Economic Development at the John Glenn College of Public Affairs and City and Regional Planning at The Ohio State University and a Senior Research Associate at the Ohio Manufacturing Institute. These data show that Ohio’s economy is evolving, and employers are responding to its cost-of-living advantage and access to North American markets to evolve the state’s regional economies. Demographic realities are prodding the state’s regional labor markets to respond to in-state and regional migration. Development of Ohio’s traded sector will follow five paths. •First, encourage shifts in the composition of its portfolio of traded products, moving to higher-value- added products and services. •Second, the transportation sector is migrating to electrified vehicles. •Third, export services providers are starting their digital journey as artificial intelligence begins to reshape back offices with AI. •Fourth, Ohio is now adding amenity- driven destination living to its traded products and services portfolio. •Fifth, the state has begun to respond to employers’ demands for a workforce that has benefited from experiential educational opportunities. 40 OHIO BUSINESS GROWTH GUIDE SEVEN REGIONS OF SUCCESS by LINDSAY LOPP REGIONAL PROFILES n Ohio’s economic development playbook, teamwork is paramount. JobsOhio has strategically established seven regional economic development regions in key areas of development throughout the state. Each agency in this cooperative network serves as a local touchpoint off ering a comprehensive array of resources and expertise to businesses and communities alike. Whether it’s site development, funding opportunities or workforce training, these regional partners serve as trusted hubs transforming the counties they serve. This “all hands on deck” approach has yielded impressive results. In 2023 alone, Ohio secured an impressive 462 projects, earning the state its No.3 ranking in Site Selection’s 2023 Governor’s Cup. The state also ranked No.5 in Area Development’s top states for doing business ranking. As these achievements demonstrate, with JobsOhio and its regional partners working hand-in-hand, Ohio continues to thrive and attract investment, driving prosperity across its diverse economic landscape. Central – One Columbus Central Ohio, anchored by the bustling Columbus metropolitan area, stands as a beacon of economic vibrancy and innovation. I Columbus Skyline Photo by Randall L. SchieberStretching across 11 counties, this dynamic region is home to a myriad of globally recognized brands, leading research institutions and esteemed academic centers. From the realms of fashion, insurance and fi ntech to the frontiers of life sciences, semiconductors and automotive innovation, Central Ohio is as abundant in industries as it is opportunity. With a workforce of 1.2 million individuals and a network of 52 colleges and universities, including The Ohio State University, the No. 11 university in the nation in research expenditures, Central Ohio boasts a wealth of talent and resources. Each year, these institutions produce 22,000 skilled graduates, ensuring that the region’s companies have access to the expertise needed to thrive and innovate. This asset has drawn many major corporations to the region. Nationwide Insurance, Cardinal Health, Huntington Bank, American Electric Power, Victoria’s Secret and Bath & Body Works are all headquartered in Central Ohio and are among the area’s largest employers. Leveraging these resources, as well as the state’s assortment of incentives, One Columbus and its partners helped the region achieve record-breaking growth in 2022. A total of 47 expansion or new location projects were secured, generating $21.3 billion in capital investment and nearly 8,000 jobs. This success, alongside the region’s accomplishments over the last few years, led Site Selection magazine to rank Columbus No.2 among Top Metros in its 2023 Global Groundwork Index, which evaluated corporate facility investment and job growth and infrastructure investment from January 2019 through July 1, 2023. “We’ve reached a pivotal moment for the Columbus Region. We’re at a new level of economic growth,” said Kenny McDonald, president and CEO of the Columbus Partnership in a statement. “Economic development requires cross- sector engagement, and our work together as a region will never be more important than it is now. The collaboration the Columbus Region is known for is how we’ve achieved our past success, and it is how we will become a more prosperous place in the future.” Northeast – Team NEO Northeast Ohio’s landscape is buzzing with economic activity. Spanning Cleveland, Akron, Canton and beyond, the 14-county expanse COLUMBUS REGIONOHIO BUSINESS GROWTH GUIDE 43 CLEVELAND REGION boasts a diverse array of industry hubs ranging from advanced manufacturing, polymers and metals to health care and fi nancial services. With more than 25 higher education institutions as well as world-renowned resources such as the Cleveland Clinic, over 800 companies have chosen to locate their corporate headquarters in Northeast Ohio, including Sherwin- Williams Co., KeyCorp, Goodyear Tire & Rubber Company and General Tire. In 2023, Team NEO worked to build upon this network’s success, securing 96 business investment projects, generating more than 2,100 jobs and $570 million in capital investment. Collaborations with JobsOhio and the Northeast Ohio Region Economic Development Network were instrumental in bringing companies such as LabConnect and Haydon Corporation to the state, as well as providing companies 44 OHIO BUSINESS GROWTH GUIDEIO BUSINESS GROWTH GUIDENESS GROWTH GUIDEROWTH GUIDEGUIDE already established in Ohio the resources and room to grow. Founded in 1983 in Stark County, Employers Health announced plans in August to build a new corporate headquarters in Canton. Over $17.2 million has been invested in this project, which also includes plans to add 23 additional workers to the company’s current 35-employee workforce in Canton. Employers Health’s evolution mirrors Northeast Ohio’s expanding economic horizons. Originally established to serve local employers, it now extends its reach nationwide, catering to manufacturers, professional service, education and healthcare fi rms, as well as utilities and union organizations in 38 states. Downtown Cleveland Photo courtesy of Ohio, The Heart of It AllOHIO BUSINESS GROWTH GUIDE 45 Southwest – REDI Cincinnati Nestled along the Ohio River sits the heart of the Southwest region, Cincinnati. Known as the Queen City, this bustling metro is brimming with innovation and opportunity. Home to leading life sciences, manufacturing, business and professional services, and technology sectors, many companies have found themselves drawn to Ohio due to these networks. So much so that Site Selection magazine’s 2023 Global Groundwork Index ranked the Cincinnati region No.5 in Top Metros. “The region’s focus on collaboration and partnership is working and is one of the many reasons why Cincinnati is a destination for businesses to locate and expand,” said Kimm Lauterbach, REDI Cincinnati president and CEO, about the achievement. “Companies recognize that Cincinnati has the recipe for success — exceptional business climate, culture, arts, talent and low cost of living.” The next generation of workers is realizing this too. In Forbes’ most recent list of best places for young professionals to live in America, the publication also ranked the Greater Cincinnati area at No.5, citing as determining factors the region’s several career-building industries, network of Fortune 500 companies such as Kroger, Procter & Gamble and Western & Southern Financial Group, restaurants and entertainment CINCINNATI REGION46 OHIO BUSINESS GROWTH GUIDE scene, and aff ordability compared to other markets. Many of the attributes that have made the city such an attractive location extend beyond the city limits, infl uencing business and life throughout Southwest Ohio. REDI Cincinnati, the region’s economic development organization, has diligently worked to ensure that opportunities for growth are available in every corner of the region. REDI Cincinnati’s 2023 Annual Report states that as a collaborative eff ort with its economic development partners, the organization helped 60 companies grow or expand, accounting for $1.1 billion in capital investment. Expansions by Worldpay in Cincinnati, Resilience in West Chester and Ditsch USA in Springdale were among REDI Cincinnati’s biggest wins of 2023. Southeast – Ohio Southeast Economic Development (OhioSE) While ensconced in rolling hills and hardwood forests, the small cities and towns of Southeastern Ohio are far from sleepy. Ohio Southeast Economic Development (OhioSE), the region’s designated development authority, has brought the hustle and bustle of urban areas to the rural stretches of the state, creating the perfect blend of industry and quaint community culture. Since its inception in 2011, the non-profi t has supported over 418 projects, created 12,000 jobs and invested over $46 million in JobsOhio funding in site and redevelopment projects. These eff orts have given way to a fl ourishing manufacturing ecosystem, producing everything from wood products, metals, polymers and petrochemicals to automotive components and vehicles, food products and more. A workforce of more than 400,000 supports this network, with the region’s 20 universities and colleges as well as 11 adult vocational training facilities fueling future talent pools. This pipeline, alongside the area’s ample access to sites and overall aff ordability and low operating costs, has helped OhioSE attract industry big names to the region. General Mills, Herr Foods and Kenworth Truck Company have continued to invest in communities such as Wellston, Jackson and Chillicothe time and time again. Cincinnati Skyline Photo courtesy of Visit Cincy SOUTHEASTERN REGIONNext >