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2019 Annual Report |
2020 Strategic Plan
2019 was an exciting year of change for Ohio. As we watched our state grow and thrive, we turned our attention to three new strategic initiatives: talent, sites and innovation. These initiatives will continue to move Ohio forward in the next decade.
This report will give you a glimpse into the incredible potential for Ohio’s future—and how we’re helping to make that dream a reality.
MESSAGE FROM OUR LEADERSHIP
“Collaboration is at the center of our success. Working with JobsOhio, we continue to build a world-class workforce with the skills necessary to propel the state’s economy forward.”
Mike DeWine
Governor
Jon Husted
Lt. Governor
“We believe that by working together, JobsOhio will achieve its true potential–and we are ready to partner with anyone who strives to live, work, invest, and achieve their American Dream!”
Chairman of the Board, JobsOhio
Robert C. Smith
President & CIO, JobsOhio
J. P. Nauseef
Ohio is an extraordinary and diverse state, located in the center of America’s heartland and just a day’s drive from 60 percent of the North American population. Here in Ohio, businesses large and small, entrepreneurs, and innovators can realize their goals. Every day we are building on our history of innovation, entrepreneurship, and hard work to move Ohio forward.
As the 21st largest economy in the world, and the seventh largest in the United States, our strong business climate and diverse workforce support a variety of industries from manufacturing to agriculture, and from healthcare to aviation and energy.
Ohio’s vibrant city centers, natural parks, and world-class arts, sports and entertainment provide a quality of life that is second to none. Whatever you are looking for, you can find it here in Ohio.
Collaboration is at the center of our success. Working with JobsOhio, we continue to build a world-class workforce with the skills necessary to propel the state’s economy forward.
Led by a board of directors who are stakeholders in business, real estate, higher education, and the military, JobsOhio is the state’s private economic development corporation. Building on our historical strengths, JobsOhio’s industry sector teams collaborate with six regional partners and local economic development organizations to identify how Ohio can empower your business and help it grow.
Together with JobsOhio, we are building a strong economic development strategy for Ohio and a strong foundation for growth. We are committed – as is JobsOhio – to serve all Ohioans, and provide opportunity across Ohio from large cities to our small towns and villages. We are working every day to provide opportunities for economic growth, and investing in infrastructure, broadband internet, and education.
We hope you will reach out to the JobsOhio team to learn how Ohio can be a partner in your success. Opportunity. Innovation. Teamwork. You can find it here in Ohio.
Very respectfully yours,
Mike DeWine
Governor
Jon Husted
Lt. Governor
2019 was a year of transitions, filled with many changes and opportunities. We saw leadership changes in the legislature, statewide-elected officials, and a new administration with Ohio’s voters electing Governor Mike DeWine and Lt. Governor Jon Husted.
With JobsOhio’s own transition, we said farewell to John Minor in March and to Board Chairman Boland in April and we sincerely thank them for their dedicated service to the organization and to Ohio’s economic development. We welcomed new Board members appointed by Governor Mike DeWine, including, Mr. Rick Platt, General Lester L. Lyles (USAF, retired) and Mr. Scott Sullivan, who join Dr. Jerry Sue Thornton, Mr. Thomas L. Williams, Mr. John J. Bishop and Former Ohio Speaker of the House, William G. Batchelder. We also joined JobsOhio in 2019 respectively.
When the legislature and the previous administration privatized portions of Ohio’s economic development creating JobsOhio, they produced an extremely unique and valuable organization to give our state a competitive advantage to create jobs year-after-year.This annual report summarizes major highlights and initiatives from 2019:
- Statewide Listening Tour. Late last spring, our leadership team traveled to each of the six regions to listen, discuss, and learn about JobsOhio and its role and ‘how we were doing’. We heard many shining examples of the high-quality work accomplished by the professionals at JobsOhio on a daily basis and we heard honest feedback (sometimes brutally honest) on ways we could improve our relationships and overall effectiveness moving forward. We listened and we have initiated the long-term process of implementing sustainable change.
- JobsOhio 2.0 Strategy and Board Action. With many changes, transitions and continuous discussions regarding strategy, organization and partner engagement efforts, the next evolution for JobsOhio will be a systematic scale up of some existing programs, while adding some timely new initiatives to invest in the future of our state – for all Ohioans – JobsOhio 2.0.
As part of this effort, we took the Board on the road to Cadiz, Lima and Youngstown – and local communities came out in increasing numbers to engage and provide us with important feedback about their priorities.
- Global Presence, Ohio Touch. 2019 saw Governor DeWine and stakeholders from around the state travel to Japan with JobsOhio to promote Ohio’s decades-long friendship with its number one direct foreign investor, while Lt. Governor Husted traveled with JobsOhio to the United Kingdom to announce the London Stock Exchange’s ELITE investment program Americas headquarters to be located in Cleveland and to develop deeper ties with an important Ohio trading partner.
Reflecting on this year’s major milestones, we can’t help to think of the incredibly talented team at JobsOhio and our statewide network of partners (One Columbus, APEG, DDC, REDI, RGP, and Team NEO) – all working together to drive economic development across the state we love.
While every deal is significant, in particular 2019 ended on a meaningful note with the General Motors / LG Chem joint-venture on an ambitious battery plant to be located near Lordstown in NE Ohio. We couldn’t be prouder of the collaboration with the Administration and our partners in the Mahoning Valley to make this a reality and a brighter future down the road ahead.
Ohio has so much to offer and so much more that it can do. We recognize there is always room for improvement as we are more than willing to listen, learn, and where appropriate – change. We believe that by working together, JobsOhio will achieve its true potential – and we are ready to partner with anyone who strives to live, work, invest, and achieve their American Dream!
Respectfully,
Chairman of the Board, JobsOhio
Robert C. Smith
President & CIO, JobsOhio
J. P. Nauseef
OHIO’S PAST AND PRESENT
In the last decade, Ohio has seen a host of developments that have transformed our state’s economy, including:
$78B
A $78 billion energy industry, which is powered by abundant natural gas and natural gas liquids derived from the Utica and Marcellus shale formations
$1B+
A multibillion-dollar data center industry fueled by global companies including Amazon Web Services, Facebook, and Google
400
A surge in global investment through nearly 400 international projects since 2013
2.02
Ohio has the No. 2 highest advanced manufacturing location quotient in the region – 2.02x the national industry concentration
As the decade drew to a close, Ohio saw positive economic trends grow and persist even further:
4.2%
A 4.2% unemployment rate as of December 2019
5.8M
A labor force that is 5.84 million strong – its highest level since 2010 (with a growth of about 81,000 from December 2018 to December 2019)
4.8M
A record high private employment of 4.83 million, the highest since 2001
$960M
Over $960 million in venture capital investments in 2019 alone – the second highest on record
JOBSOHIO 2019 RESULTS
In 2019, JobsOhio saw its second-best year in terms of project volume and new payroll commitments, and its third-best year in terms of capital investment. After a record year in 2018, JobsOhio worked hard with new leadership to rebuild its pipeline of potential investment and drive results.
Total Project Pipeline*
Data as of December 31, 2019
*Potential results if all projects are realized.
88,054
NEW AND RETAINED JOBS
$24.4B
CAPITAL INVESTMENT
306
TOTAL PROJECTS
22,770
NEW JOBS
$1.2B
NEW JOBS PAYROLL
$7.0B
CAPITAL INVESTMENT
Year-Over-Year Results
| JobsOhio Metrics | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Projects | 272 | 266 | 306 |
| New Jobs | 22,788 | 27,071 | 22,770 |
| New Jobs Payroll | $1.1 Billlion | $1.3 Billion | $1.2 Billion |
| Capital Investment | $9.6 Billlion | $9.6 Billion | $7.0 Billion |
2019 Targeted Industry Results
| Industries | Jobs Created | Capital Investment ($M) |
|---|---|---|
| Logistics and Distribution | 5,145 | $722 |
| Healthcare | 4,285 | $192 |
| Advanced Manufacturing | 3,163 | $657 |
| Information Services and Software | 2,398 | $488 |
| Automotive | 1,886 | $446 |
| Financial Services | 1,387 | $17 |
| Food Sciences and Agriculture | 1,252 | $680 |
| Shale Energy and Petrochemicals | 901 | $2,982 |
| Aerospace and Aviation | 889 | $256 |
| Other | 1,464 | $521 |
| Totals | 22,770 | $6,960 |
“This larger, brand-new facility provides access to enhanced capacity, greater automation and a vibrant talent pool, allowing us to support business growth and increase our speed-to-market capability.”
Andrew Rees
President and CEO, Crocs
“We’re proud of the partnership Ohio has formed with the ELITE program and look forward to the growth opportunities this collaboration opens up for businesses.”
Jon Husted
Lt. Governor of Ohio
“After an accurate analysis, we chose Ohio and particularly the Cincinnati area because of the excellent position, the great industrial presence and the high professionalism of JobsOhio and REDI Cincinnati, who helped us in the whole process.”
Antonio Pagano
CEO, Modula USA
“Ohio has been a great place to do business, serve customers and create jobs; as a result, we are thrilled to develop two state-of-the-art fulfillment centers in Akron and Rossford.”
Alicia Boler Davis
Vice President of Global Customer Fulfillment, Amazon
JOBSOHIO STRATEGY FOR A STRONG OHIO
Ohio’s future is bright. We’ve identified key trends to monitor as our economy continues to evolve, and these will help us become a top state for business.
JobsOhio is a state-wide organization, but we also have a local touch. Our regional partners are connected to the local community. That connectivity drives leads and investment, ensuring that we understand the community as much as they do.
Go Forward: Five-Year Strategy
Building economic resilience
JobsOhio will continue to focus on its nine core industries, selected due to their contribution to Ohio’s economic diversity and their potential to support the state’s ability to thrive in any economic climate. Because of this strength, Ohio has an opportunity to facilitate growth in additional sectors, including federal and defense investments.
How JobsOhio will address this challenge
READ MORE
Leveraging third-party, data driven market analysis and insights from the statewide listening tour regarding opportunities and threats to Ohio becoming the best state for business, JobsOhio developed new strategies for the future.
1
Expanding our investments to include federal and military installations is critical. We plan to build employment bases tied to government investments, which is historically less dependent on economic cycles and thus more resilient. As we leverage these federal and military partnerships, we will also establish a statewide initiative to drive federal workforce retention, expansion and attraction. The desired outcome is for Ohio to be recognized as the best place in America for military missions, military members, military families and veterans!
GOAL
Add up to 10,000 new federal jobs over five years.
2
Increasing air service capacity for business travel is essential for growth. We will work to increase the number of destinations served at the state’s seven commercial airports by partnering with key stakeholders to attract new air service to domestic and international routes.
GOAL
Add up to two new international routes and up to three new domestic routes over five years.
3
We will support Ohio’s Statewide Broadband Strategy, which laid out an aggressive plan to expand and enhance the state’s broadband network, making access to service available to all Ohioans. JobsOhio was pleased to host Federal Communications Commission (FCC) Chairman Ajit Pai in January 2020 to discuss high impact investments.
GOAL
Support Ohio’s digital infrastructure strategy, which includes telehealth pilots, access to financial institutions and digital literacy initiatives by partnering with government assets and the Office of Broadband.
Shaping the future of work
Emerging technologies have dramatically changed the landscape of the American workplace in the last decade. Due to a greater demand by companies for tech and computer science graduates, there is an opportunity to shape Ohio’s workforce for the future to fill existing skill gaps.
How JobsOhio will address this challenge
READ MORE
In order to support the transition to a highly automated future workplace, JobsOhio will build out talent-based initiatives and reskilling efforts.
1
Build Ohio’s workforce of the future and spur accelerated production of tech-talent degrees and
certifications.
GOAL
Increase in-demand degrees up to 50% in five years.
2
We will expand our Talent Acquisition Services Program, which helps to match the right talent to the right position at the right company. The focus of this program is scaling customized and employer co-designed talent acquisition solutions for companies that are already located and agreed to expand or committed to expand in Ohio.
GOAL
Complete up to 60 projects per year.
Focusing on site availability
Site availability and turnkey solutions are essential to be considered for economic development projects. The Ohio Site Inventory Program will ensure that all authenticated sites are ready for immediate development on day one.
How JobsOhio will address this challenge
READ MORE
1
We will work to expand the availability of sites by investing in site plans and clean up through the authentication process. These sites will increasingly be located in regions where the addition of new jobs is much needed.
GOAL
Add 20-35 new authenticated sites that will bring 10-20 significant deals to Ohio over five years.
Implementing an inclusive economic development growth strategy
Economic development needs vary dramatically across the U.S. and Ohio, and tailored solutions are increasingly important to regions. In an effort to bolster economic growth in underserved regions, JobsOhio will focus on initiatives designed to promote more equal growth across the state.
How JobsOhio will address this challenge
READ MORE
1
With our inclusive growth strategy, we will partner with distressed communities across the state, utilizing experienced economic development leadership and resources to help communities leverage core strengths and assets.
GOAL
Add up to 4,000-6,000 new jobs over five years.
Ohio is the most innovative state in the Midwest
Following the State’s lead, JobsOhio is launching an innovation strategy in order to attract companies in the fastest growing sectors and improve vitality in urban and rural settings. This strategy will improve competitiveness across the entire innovation continuum — from increasing the amount of research, to the formation of new businesses, capital attraction and deliberate placemaking.
How JobsOhio will address this challenge
READ MORE
1
Establish up to three nationally competitive Innovation Districts in dense urban settings where large-scale, mixed-use development is adjacent to major academic and research anchor institutions, related firms, entrepreneurs and spin-off companies.
GOAL
3x increase in annual computer science degrees, 20% increase in federally funded medical research, development of 2 million-square-feet of state-of-the-art mixed-use real estate, and minimum 10x anchor co-investment
“When looking for a partner in the U.S. it became obvious to us that Ohio would be the partner for us. The state has an extremely connected and collegiate business community, who is committed to supporting mid-market businesses. There is a depth of talent and dynamic business leadership, at all levels, which is critical for our success. JobsOhio has shown true leadership in building a partnership with us and we are confident that this will be highest success entrance into the U.S. market for our business.”
Thomas Tyler
Global Head of Sales, ELITE
FINANCIAL STATEMENTS
Statements of Net Position (Unaudited)
VIEW FINANCIAL STATEMENT
December 31, 2019 and 2018 (In thousands)
December 31, 2018
December 31, 2019
Cash and cash equivalents – unrestricted – JOBS
Cash and cash equivalents – unrestricted – JobsOhio
Cash and cash equivalents – restricted – JOBS
Investments – JobsOhio
Inventory – JOBS
Loans – current portion – JobsOhio
Accounts receivable – JOBS
Accounts receivable – JobsOhio
Prepaid expenses – JOBS
Prepaid expenses – JobsOhio
46,696
78,635
163,360
764,304
87,066
8,096
1,566
2,257
1,277
1,347
1,154,604
998,145
1,158
799
81,655
1,081,757
2,236,361
223,677
108,679
167,589
472,254
81,825
7,924
3,749
1,583
1,194
1,068
1,069,542
1,053,342
1,158
975
91,960
1,147,435
2,216,977
Assets:
Current Assets:
Total current assets
Long-term assets:
Intangible asset – liquor franchise, net of amortization – JOBS
Capital assets, net of accumulated depreciation – JobsOhio
Capital assets, net of accumulated depreciation – JOBS
Loans, net of loss allowance – JobsOhio
Total long-term assets
Total assets
$
$
$
$
$
$
Accounts payable – JOBS
Accounts payable – JobsOhio
Accrued liabilities – JOBS
Accrued liabilities – JobsOhio
Special obligation bonds payable – current portion – JOBS
Bond interest payable – JOBS
Capital lease payable – current portion – JobsOhio
24,222
2,209
62,721
134,285
46,720
27,947
24
298,128
311,189
1,283,115
76
1,283,191
1,581,319
Liabilities:
Current liabilities:
Total current liabilities
Long-term liabilities:
Special obligation bonds payable – JOBS
Capital lease payable – JobsOhio
Total long-term liabilities
Total liabilities
42,439
2,157
50,559
141,655
45,845
28,524
10
1,332,547
3
1,332,550
1,643,739
$
$
$
$
Net position:Total net position1,1581,15897531,462539,643573,238$$$$
STATEMENTS OF NET POSITION
These statements provide the combined financial information of JobsOhio and JobsOhio Beverage System (JOBS) as of December 31, 2019 and 2018. Current assets include more than $163 million of restricted cash that is to be used solely for the operation of JOBS’ liquor enterprise. JobsOhio has outstanding, non-executed commitments of loans and grants totaling $315 million to companies for the purpose of job creation and retention; these commitments are not reflected in JobsOhio’s statements of net position. Please visit JobsOhio.com for more information on JobsOhio’s and JOBS’s financial statements.
Statements of Revenues, Expenses, and Changes in Net Position (Unaudited)
VIEW FINANCIAL STATEMENT
Twelve months ended December 31, 2019 and 2018 (In thousands)
December 31, 2018
December 31, 2019
Retail net liquor sales
Wholesale net liquor sales
Distribution center revenue
977,689
349,200
7,400
2,698
378
1,337,365
900,036
333,945
6,851
2,399
283
1,243,514
Operating revenues:
JOBS:
JobsOhio:
Interest income – loans
Fees and other
Total operating revenues
$
$
$
Cost of goods sold
Sales commissions
Liquor gallonage taxes
Amortization of intangible asset – liquor franchise
Service fees
Supplemental Payment
Other
784,775
74,930
51,322
55,197
16,856
61,319
11,588
11,239
1,230,963
106,402
Operating expenses:
JOBS:
Marketing
Total operating expenses
Operating income
139,464
13,737
5,819
4,717
JobsOhio:
Economic development programs
Salaries and benefits
Professional services
Administrative and support
10,757
1,131,669
111,845
118,537
15,810
6,290
5,099
727,017
67,358
49,475
55,197
16,738
48,199
11,192
$
$
$
$
Bond interest, net – JOBS
Investment income – JobsOhio
Other, net – JOBS
(53,182)
23,276
5,308
81,804
573,238
655,042
Nonoperating revenues (expenses):
Change in net position
(24,598)
Total nonoperating revenues (expenses)
Net position, beginning of period
Net position, end of period
(54,301)
9,026
4,974
71,544
501,694
573,238
(40,301)
$
$
$
$
JobsOhio
JobsOhio is a 501(c)(4) private nonprofit corporation and the sole member of JobsOhio Beverage System (JOBS), a 501(c)(3) private nonprofit corporation. The primary source of funding for JobsOhio is grants from JOBS. These grants enable JobsOhio to fulfill its economic development purpose by promoting job creation and new capital investment in Ohio through business attraction, retention and expansion activities.
JobsOhio Beverage System
On Feb. 1, 2013, JOBS purchased from the state an exclusive franchise for the sale of spirituous liquor throughout Ohio. In addition to the initial cash payment, JOBS committed to make supplemental payments to the state as further consideration for this acquisition based on the performance of the liquor enterprise. JOBS operates the enterprise in part through a contract with Ohio Department of Commerce and its Division of Liquor Control. JOBS grants the net profits of the liquor enterprise to JobsOhio. Please visit JobsOhio.com for more information on JobsOhio’s and JOBS financial statements.
IN CONCLUSION
As JobsOhio and its partners across the state take on these challenges, we invite you to discover Ohio for yourself. Whether you are looking for great partners to support your business growth or a fantastic place to raise a family, we welcome the opportunity to help you find it in Ohio. These strategic initiatives in talent, sites and innovation will fuel job growth in the state – and we are excited to see how the next decade will transform Ohio.
“We are a service organization. We are here because we love Ohio, we love the mission of JobsOhio and we believe that our job is to introduce the world to the Ohio we know: the best place to live, work, invest in a business or bring your career, to live your version of the American Dream.”
J.P. Nauseef
President & CIO, JobsOhio