News and Analysis
The Huntington National Bank, an OMA Connections Partner, has published its most recent state economics report — an overview of economic conditions in Ohio and neighboring states. As of December 2018, Ohio’s real GDP for all industries was $2.42 trillion — seventh highest in the U.S. — while median household income was $61,633. The state’s home price appreciation was above the national average as of September 2019, “reflecting strong housing markets overall.” 1/28/2020
On Monday, Feb. 3, the 2020 Iowa Democratic caucuses will take place, kicking off the nominating process in the Democratic Party presidential primaries. Interestingly, personal finance website WalletHub.com looked at 31 key measures — including sociodemographic, economic, educational and religious metrics — and found that Iowa is an 89% match with U.S. demographics. The Hawkeye State predicts 70% of Democratic nominees, the study shows. 1/30/2020
Ohio is recognized as a key manufacturing state for everything from transportation equipment, metal products, machinery, food products, plastics, rubber, mineral products, appliances and much more. Now, according to a report by Area Development magazine, Ohio is an emerging leader in biopharmaceutical manufacturing, too.
Last year, the Buckeye State was home to more than 5,500 biopharm jobs — good for 15th nationally. From 2015 through 2019, Ohio experienced the country’s fourth-largest job growth rate (15%) in this sector. 1/29/2020
This week, during his “State of Manufacturing” address, National Association of Manufacturers (NAM) President and CEO Jay Timmons urged U.S. lawmakers to make permanent the 20% deduction for pass-through entities — a key provision in the 2017 federal tax law. Like other changes in the 2017 overhaul, the pass-through deduction is scheduled to expire at the end of 2025.
In other comments, Timmons credited the Trump administration for reaching a “phase one” trade deal with China, passing the U.S.-Mexico-Canada trade agreement, and making “progress on 91.5% of the regulations that NAM members identified as needing to be modernized.” Read Timmons’ full address. 1/22/2020
News this week that production of Boeing’s 737 Max has been halted until as late as mid-September will have consequences for the company’s supply chain, as well as the U.S. economy.
In a recent post, OMA Connections Partner RSM writes: “It cannot be overstated just how important the domestic and global supply chains associated with Boeing are to the small- and medium-sized businesses that populate the real economy.” The post includes an eye-opening infographic on the 737’s supply chain. 1/22/2020
As noted in the OMA’s “Ohio Manufacturing Counts” publication, automobile and auto-parts makers are among the drivers of Ohio’s economy. So it’s good to see the new United States-Mexico-Canada Agreement (USMCA) — approved last week by the U.S. Senate — is estimated to produce at least 76,000 additional jobs in the auto and auto-parts manufacturing sector over the next five years, according the U.S. Trade Representative’s office.
The OMA thanks Ohio’s U.S. Sens. Rob Portman and Sherrod Brown for voting to approve the USMCA, as well as Ohio’s U.S. House members who voted to support the modernization of America’s largest trade agreement. 1/21/2020
A new report by the U.S. Bureau of Labor Statistics shows that from 2018 to 2019, consumer prices for all items rose 2.3%. Among the categories showing a price decline were wholesale electricity and utility (piped) gas service. Among the products or services exceeding the inflation average were medical care, prescription drugs, and hospital services. 1/21/2020
Next week, Ohio lawmakers return to Columbus, kicking off both chambers’ floor activity. This marks the second and final year of the 133rd General Assembly.
So far, the House and Senate together have introduced more than 700 bills. The OMA is tracking more than 100 of these measures due to their potential impact on manufacturers. OMA’s bill tracking service provides concise summaries and a status update on notable legislation. Bills are categorized by interest area. 1/15/2020
The new year offers some headwinds for manufacturers. But there are also multiple prospects for sustainability and growth. Check out this analysis from OMA Connections Partner RSM on the key trends facing manufacturing in 2020. 1/13/2020