Team NEO and DDC Announce Record Results, Underscoring Economic Momentum

Posted on February 7, 2022February 7, 2022

This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders.

Key Economic Insights

Global: The price of oil crossed $90 per barrel for the first time since 2014.
U.S.: Non-farm payrolls increased by 467,000 in December; the unemployment rate rose to 4%.
Ohio: Team NEO released its annual report, highlighting the highest number of closed economic development projects while the Dayton Development Coalition celebrated record job creation at its annual meeting.

Global Insights

China’s Manufacturing PMI fell to 50.1 in January, slightly above contractionary territory. Subindices measuring total new orders and new export orders remained in contractionary territory. China’s Nonmanufacturing PMI also fell in January, with services activity dropping to the lowest level in five months. The Reserve Bank of Australia will cease its weekly purchases of nearly $2.82B in government bonds following new economic forecasts for the unemployment rate to fall below 4.0% later this year. The Bank
of England raised its key interest rate for a second consecutive meeting, the first back-to-back rate hike since 2004, following expectations for annual inflation to accelerate above 7% within months due to low unemployment, rising wages, and surging energy prices. 61.4% of the global population has received at least one dose of a COVID-19 vaccine.

U.S. Insights

Non-farm payrolls increased by 467,000 in December as the unemployment rate rose to 4%. The labor force participation rate was 61.9% in December. Average hourly earnings rose 0.7% from the previous month, and 5.7% on an annual basis. Job openings rose to 10.92M in December, up 1.4% from November. Quits decreased 3.6% to 4.34M, and layoffs and discharges fell 10.7% to 1.17M. Over 75% of the U.S. population has received at least one dose of a COVID-19 vaccine, and nearly 64% is fully vaccinated.

Weekly jobless claims for the week ending January 29 fell to 238,000 from a revised 261,000 the prior week. Continuing claims fell to 1.628M from a revised 1.672M the prior week. Nonfarm business sector labor productivity increased 6.6% in Q4 of 2021, as output increased 9.2% and hours worked increased 2.4%. Unit labor costs in the nonfarm business sector increased 0.3% in Q4 of 2021, reflecting a 6.9% increase in hourly compensation. The ISM Manufacturing PMI registered 57.6 in January, indicating expansion in the overall economy for the 20th month in a row. U.S. Factory orders decreased 0.4% in December, and core capital goods orders increased 1.3%. The ISM Services PMI registered 59.9, down from 62.3 in December.

Ohio Employment & Economic Insights

Nine projects across the state received approval for assistance from the Ohio Tax Credit Authority. In total, the projects are set to create 982 new jobs and retain 1,640 jobs statewide. Collectively, the projects are expected to result in more than $64.9M in new payroll and spur more than $76M in investments across Ohio.

Nearly 7.2M Ohioans have started the COVID-19 vaccination process.

Ohio manufacturers added 2,700 jobs in 2021, according to the most recent data published by the Ohio Department of Job and Family Services. Overall, employment in Ohio’s goods-producing industries increased 18,900 in 2021. According to the latest update from the U.S. Bureau of Labor Statistics, Ohio manufacturing employees earned an average of $29.23/hour in December 2021, up from $28.85/hour in November.

Kent State University and Ohio University were awarded the prestigious R1 Carnegie Classification from the Carnegie Classification of Institutions of Higher Education, the highest recognition for research universities. Kent State and Ohio now join The Ohio State University, the University of Cincinnati, and Case Western Reserve University as the 5 institutions in Ohio to achieve this recognition. Only 146 universities in the nation have R1 status.

Rickenbacker International Airport had its best year in history in 2021, representing growth for Columbus as a cargo and logistics hub. Rickenbacker handled 153,600 metric tons of cargo on 4,473 flights in 2021, according to Columbus Regional Airport Authority. In 2020, Rickenbacker saw 3,822 cargo flights carrying nearly 120,000 metric tons.

Ohio Company News

Sierra Nevada Corporation selected Dayton as the location for two future aircraft maintenance repair and overhaul (MRO) facilities to create approximately 150 new jobs and $10.8M in new annual payroll.
Hyperion Companies plans to bring its HQ to Columbus, creating 680 jobs with an annual payroll of $58M in the next 6 years and investing nearly $300M into what will be the largest new factory in the city in a decade.
Dana Light Axle Manufacturing plans to create 175 full-time positions, generating $7.4M in new annual payroll because of the company’s new project in Napoleon.
Cerkl plans to create 125 full-time positions, generating $9.5M in new annual payroll and retaining $1.3M in existing payroll as a result of the company’s expansion project in Blue Ash.
Simpson Manufacturing plans to create 125 full-time positions, generating $5.5M in new annual payroll and retaining $23.6M in existing payroll because of the company’s expansion project in Columbus.
Charles River Labs will add 105 new jobs as part of a $43M investment at its Allen County Facility. The company plans to add approximately 88,000 SF of laboratory and administrative space, which will include a Center of Excellence facility.
Vertiv Group plans to create 100 full-time positions, generating $8M in new annual payroll and retaining $75M in existing payroll because of the company’s expansion project in Westerville.
Radiance Technologies plans to create 100 full-time positions, generating $10.3M in new annual payroll and retaining $27.9M in existing payroll because of the company’s expansion project in Beavercreek.
Pluto Healthcare Staffing plans to create 65 full-time positions, generating $4.2M in new annual payroll and retaining $1.7M in existing payroll because of the company’s expansion project in Grandview Heights.
Tessenderlo Kerley plans to build a new plant in Defiance, creating 17 new jobs and investing $44M in capital.
Tradefull will expand its North Canton operations, establishing the site as its HQ and consolidating its Ohio warehouse locations, bringing over 200 jobs and $3.1M in capital expenditures.
Benchmark Industrial plans to create 40 full-time positions, generating $2.5M in new annual payroll and retaining $3.4M in existing payroll because of the company’s expansion project in Gahanna.
Daniels Industrial Services is investing more than $2.2M for a new facility and operating equipment in Falls Township in Muskingum County.
The Connor Group is expanding its HQ and investing in its facilities on the grounds of the Dayton-Wright Brothers Airport. In total, the company is investing a more than $20M. The expansion will add room for 56 new employees and will add nearly 23,000 SF of office space.
ECDI was named the largest microlender in the U.S. in 2021. The U.S. Small Business Administration confirmed that out of some 150 microlenders nationwide, ECDI closed the largest number of SBA microloans.
GE Aviation, in Evendale, announced that Qatar Airways has placed an order for its GE9X engines to power 50 Boeing 777-8 Freighters, a deal valued at $6.8B.

Resources

Ohio Department of Health’s COVID-19 Website: www.coronavirus.ohio.gov
JobsOhio’s resource portal and information about Open, Secure Supply Chains in Ohio.

Categories: Economic Insights