Leadership

Manufacturing’s Economic Barometer

• For the 12 months ended in May, U.S. wholesale prices have risen 10.8%, near a record annual pace. (This chart shows prices for goods are up 16.6% year over year, driven by a 45% spike in energy costs.)
• The National Association of Manufacturers’ (NAM) Q2 survey of members finds that increased raw material costs now top the list of business challenges, cited by 90.1% of respondents.
  • NAM’s survey found the top sources of inflation were increased raw material prices (97.2%), freight and transportation costs (83.9%), wages and salaries (79.5%), and energy costs (55.9%).
  • NAM CEO Jay Timmons told CNBC that 60% of survey respondents believe inflationary pressures will lead to recession, but that “it doesn’t have to happen” if federal policymakers take immediate action to address energy costs, workforce shortages, and supply disruptions.
• U.S. consumer sentiment, as measured by the University of Michigan, has dropped to its lowest reading on record, according to OMA Connections Partner RSM.
• The average weekly hours of production for Ohio manufacturing employees has declined since December, while the average hourly earnings for all Ohio manufacturing employees now stand at $29.72.

Meanwhile, the head of DHL’s freight-forwarding unit says congestion at the ports won’t begin to ease until 2023 — and even then there won’t be a return to pre-COVID-19 levels. 6/17/2022

OMA President: Manufacturing Needs Bipartisan Solutions, Not Political Pandering

In an editorial at Cleveland.com, OMA President Ryan Augsburger provides his take on manufacturing as a focal point in this year’s political campaigns. Augsburger urges bipartisan solutions, not political pandering, writing: “The best way for candidates to support Ohio manufacturers — their companies, employees, families, and communities — is not to fight over them, but to fight for them.” Read the full editorial. 6/13/2022

DeWine Signs Capital Budget With Intel Incentives

On June 14, Gov. Mike DeWine signed into law a two-year, $3.5 billion spending measure (House Bill 687) that, among other things, will expedite Intel’s efforts to construct a pair of semiconductor manufacturing facilities in Ohio. Among the capital budget bill’s Intel-related provisions is a $600 million Ohio Onshoring Incentive, funding for local water and sewer infrastructure improvements, and road upgrades. For more, see this report by Gongwer News Service. 6/15/2022

Lindsey Short Joins OMA’s Policy Staff

Lindsey Short, a Zanesville native, has joined the OMA staff as director of public policy services. In this role, she fills the void left after Rachael Carl was promoted to managing director of public policy services earlier this year.

A 2017 graduate of Miami University, Lindsey comes to the OMA after a three-year stint with Government Edge, a multi-client lobbying firm based in Columbus. At Government Edge, she served as manager of government relations. Before that, Lindsey worked at the Ohio House as a legislative aide to former Rep. Niraj Antani (R-Miamisburg). She also served as an intern for the 2016 campaign of U.S. Sen. Rob Portman (R-OH).

It has been an eventful month for Lindsey, who married her husband Jon on June 4. They reside in Grove City with their two dogs, Benji and Fitzgerald. Email Lindsey to say hello. 6/15/2022

Report: 40% Surge in Workplace Robotics Sales

Wage inflation is fueling more demand for workplace robots in the U.S., according to reports. New orders for robots surged 40% year-over-year in Q1 of 2022. Roughly 9,000 robots — worth approximately $544 million — were sold compared to around 6,400 the same period a year earlier.

According to the Association for Advancing Automation, the leading industries for robot orders in Q1 were metals (+40%); plastics and rubber (+29%); semiconductor, electronics, and photonic (+23%); and food and consumer goods (+21%). Some are calling this the “summer of robots” as the industry enters a new stage of development. 6/6/2022

Report: Reshoring Adds Record Number of Jobs in 2021

An organization called The Reshoring Initiative has issued a report that says efforts to bring back U.S. manufacturing jobs and expand foreign direct investment (FDI) resulted in a record 261,000 jobs nationwide last year. The total number of reshored and FDI-created jobs since 2010 now sits at more than 1.3 million — and nearly 66,000 of those jobs are in Ohio, the study says.

When measured by the overall U.S. trade deficit of about $859 billion a year, “there are still five million U.S. manufacturing jobs offshore at current levels of U.S. productivity, representing a huge potential for U.S. economic growth,” according to the organization. 6/8/2022

Middle Market Business Conditions Remain Strong

U.S. business conditions remained robust in the second quarter, according to OMA Connections Partner RSM and its U.S. Middle Market Business Index. The index’s Q2 reading was 130.6, up from 126.3 in Q1, despite inflationary pressures.

Meanwhile, nationwide demand for mortgages has hit its lowest level in 22 years, according to a report from the Mortgage Bankers Association. But the Money Anxiety Index — which measures consumer actions, not survey responses — remains relatively low. 6/6/2022

NAM to Congress: Time to Act on China

Swift action is needed to fix America’s relationship with China and ensure U.S. manufacturers can compete on a level playing field, the National Association of Manufacturers (NAM) recently told members of the U.S. House’s China Accountability Task Force.

Among the NAM’s recommendations to the task force were ensuring a national strategic vision for and bold investments in domestic manufacturing; consistent pressure applied directly and with allies to ensure China meets its trade and economic commitments; and expanded efforts to combat Chinese intellectual property theft. 6/8/2022

Court to Hear Key Case on Product Liability Lawsuits

The U.S. Court of Appeals for the Sixth Circuit is set to hear oral arguments in an important personal injury case that has broad ramifications in product liability civil lawsuits. The OMA led an amicus brief in support of defendant DuPont, urging the appellate court to reverse the lower district court ruling that addresses when a statute of limitations is triggered under the “discovery rule.” Watch the court session live beginning at 9 a.m., Friday, June 10. 6/10/2022

Aug. 2 Primary Set for House, Senate Races

A federal court has ended the months-long stalemate between Republicans on the Ohio Redistricting Commission and four members of the Supreme Court of Ohio over state House and Senate redistricting. The federal court selected a set of the commission’s maps that were previously struck down, while settling on Aug. 2 as the date for the legislative primary election.

The new maps — for both the Senate and House — will be in effect for only the 2022 election cycle. They favor Republicans 54-45 in the House and 18-15 in the Senate. Voters can find their new districts using this tool at the secretary of state’s website. 5/31/2022