News and Analysis
Two weeks behind schedule, the Ohio House of Representatives this week put their stamp on the proposed state budget by unveiling a substitute version of House Bill 166. The “sub-bill” is a rewrite of Gov. Mike DeWine’s budget proposal, which was unveiled in mid-March. (Click here for a list differences between the governor’s budget plan and the House version.)
OMA members should note that budget bills traditionally become vehicles for hundreds of unrelated changes to state law.
Next week, the House will make another round of changes in an omnibus amendment before voting to pass the amended sub-bill. The Senate is already holding informal budget hearings and will have their turn to make revisions by early June. The Ohio Constitution requires lawmakers adopt a balanced budget by July 1.
A complete review of the budget will be discussed at the June 5 meeting of the OMA Government Affairs Committee. 5/2/2019
Lightweight Innovations For Tomorrow (LIFT) — a national manufacturing innovation institute operated by the American Lightweight Materials Manufacturing Innovation Institute (ALMMII) — has announced a new project with the Center for Automotive Research (CAR) to test and evaluate mixed-material joining technologies.
As the automotive industry continues to search for new and innovative ways to save on weight, cost and production time, automakers and suppliers are looking to a wider range of materials, including different types of metals and polymer composites. Joining dissimilar materials is one of the major barriers in implementing the right material for the right application strategy.
The results of this study, scheduled to be completed in October, will be published in the public domain and shared at various industry events. 4/29/2019
As of the deadline for this edition of the Leadership Briefing, Ohio’s hockey team, the Columbus Blue Jackets, leads 2 to 1 in the second round of the Stanley Cup playoffs against the Boston Bruins.
The Blue Jackets’ 2018-19 campaign is the organization’s most successful since its founding in 2000. The team owes its existence to one of Ohio’s most notable manufacturers, John McConnell — founder of Worthington Industries. Prior to the establishment of the Blue Jackets, the last NHL team in Ohio was the Cleveland Barons, which played from 1976 to 1978.
As you read this, we hope the Jackets will have smacked down the Bruins, and are up 3 to 1 in the best-of-seven series. Go Jackets!
This week, the OMA urged Ohio’s federal representatives to support approval of the United States-Mexico-Canada Agreement (USMCA). The USMCA would replace the North American Free Trade Agreement, the 1994 deal that removed most tariffs and other trade barriers between the three countries.
In a letter sent to all 18 members of Ohio’s congressional delegation, OMA President Eric Burkland noted that in 2017, Ohio manufacturers sold $27 billion of manufactured goods to Canada and Mexico, and that more than 3,800 Ohio manufacturers export to Canada and Mexico.
Burkland wrote that passing the agreement will “strengthen and modernize America’s innovation engine by including best-in-class intellectual property rules,” while leveling the playing field between the United States, Mexico and Canada.
The jobs of nearly 103,000 Ohio manufacturing workers depend on exports to Canada and Mexico, and that without the USMCA, Ohio’s manufactured goods exports to Canada and Mexico could face as much as $3.1 billion in extra taxes (compared to zero tariffs today). 4/24/2019
Global Trade magazine has ranked Ohio the No. 1 state for tech-driven manufacturing.
In an April 20 article, the magazine wrote: “If you search any top 10 list for manufacturing (tech-driven or otherwise), there are a few states that come up repeatedly” — and Ohio is among them. According to the periodical, Ohio “has a long history of manufacturing and a skilled workforce to put its money where its mouth is,” with a “heavily pro-manufacturing business climate that has earned Ohio significant investment in the technology-driven manufacturing sector.” 04/24/2019
Did you know that 102,700 manufacturing jobs in Ohio depend on trade with Mexico and Canada? Last year, Ohio manufacturers sold $27 billion of manufactured goods to Canada and Mexico. One in three manufacturers in the Buckeye State sells products to Canada and Mexico.
Clearly, Ohio manufacturers are counting on passage of the new United States-Mexico-Canada (USMCA) agreement. You can click here to contact your member of Congress to urge him/her to pass the USMCA to help protect the future of Ohio manufacturing. 4/16/2019
This week, Lt. Governor Jon Husted announced that Michael Canty of Cuyahoga County — owner, president and CEO of OMA member Alloy Bellows and Precision Welding — is returning as an appointed member of Ohio’s Common Sense Initiative (CSI) Small Business Advisory Council (SBAC). The SBAC advises CSI on drafted or existing rules that have a negative impact on the state’s small businesses. 4/17/2019
Gov. Mike DeWine this week appointed Robert Smith as the new chairman of JobsOhio, the state’s private economic development organization. Smith is the market leader of the Cleveland office of Cerity Partners, a wealth management firm. He has extensive civic engagement experience, including serving as chairman of Team NEO, one of JobsOhio’s affiliates. Smith is the second DeWine appointment to the nine-member JobsOhio board. The first was Rick Platt, president and CEO of the Heath-Newark-Licking County Port Authority. Rick is also an OMA member. 4/17/2019
Members of the House Finance Committee continued hearings this week on state budget bills that must be completed by June 30. Amendments are being submitted by members of the House with the first round of revisions expected May 1. Top political issues include the school funding formula and Medicaid spending.
However, numerous policy changes are also in the mix. See the OMA’s updated state budget issues watch list.
Manufacturers with an interest in particular provisions are invited to coordinate with OMA staff members Ryan Augsburger and Rob Brundrett. OMA public policy staff will also be reviewing budget items at upcoming OMA committee meetings. 4/11/2019
Rep. Bill Reineke (R-Findlay) announced that he will seek the Republican nomination for Ohio’s 26th Senate District in 2020. The seat is currently held by Sen. Dave Burke (R-Marysville), who is term-limited.
Reineke received the endorsement of the OMA-PAC in past races as a pro-manufacturing legislator. 4/10/2019