News and Analysis
OMA Connections Partner Roetzel has organized a panel (via Zoom) on Monday, April 5, 2021 12:30 – 1:30 p.m. to address the state’s path forward from the COVID-19 pandemic, with a focus on workforce and economic development.
The event features Ohio Lt. Governor Jon Husted, OMA President Ryan Augsburger, and Keith Lake VP, Government Affairs, Ohio Chamber of Commerce.
Participants will have the opportunity to ask questions of the panelists. Register here. 3/31/2021
Last week, the legislature wrapped up work on the state transportation budget and this week Governor DeWine made it official. With his signature, House Bill 74 authorizes $8.3 billion to be invested in Ohio’s transportation system over the next two years. The funding greenlights more than $5 billion for roads and highways, $74 million for public transit agencies, and $8 million in Ohio EPA grants for electric vehicle charging stations. 4/1/2021
JobsOhio, the state’s private economic development coordinator has launched an ad campaign titled, Ohio Is for Leaders. The campaign is running print and electronic ads in top business press outlets including WSJ and Forbes. The ads are designed to be punchy and are targeted at business decision-makers, especially those on the coasts that control significant venture capital. The ads promote Ohio’s 0% corporate income tax and value-added manufacturing supply chains. 4/1/2021
The Manufacturing Institute, the workforce development and education partner of the National Association of Manufacturers, just released new research that explores how manufacturers perceive 5G capabilities and their plans to utilize the potential of 5G connectivity.
The study asserts that 5G is a key ingredient in defining the next generation of manufacturing in America. According to the research, nearly all manufacturers (91%) believe 5G connectivity will be important to the overall future of their business, with three-fifths (61%) indicating it will be “extremely important.”
Find the report here. 3/31/2021
According to the last week’s jobs report from the Ohio Department of Job and Family Services, Ohio’s unemployment rate was 5.0% in February 2021, down from 5.3% in January. This compares to 4.7% in February 2020.
Employment losses in manufacturing January to February were (-300).
From February 2020 to February 2021, manufacturing lost 36,600 jobs in durable goods (-34,300) and nondurable goods (-2,300). 3/26/2021
According to the January Ohio Leading Indicators report published by the Ohio Department of Job and Family Services (ODJFS), if the January employment rebound continues throughout 2021 in a similar magnitude, total employment is predicted to increase at an annual rate of 0.23% for the next six months in Ohio.
ODJFS also reports that Ohio’s average weekly manufacturing hours increased to 42.8 in January. 3/29/2021
Chad Moutray, senior economist with the National Association of Manufacturers posted this week: “The Institute for Supply Management reported that manufacturing activity expanded at the fastest pace since Dec. 1983, with the headline index up from 60.8 in February to 64.7 in March. The data were very solid across the board, including strong growth for new orders (up from 64.8 to 68.0—best since Jan. 2004), production (up from 63.2 to 68.1—best since Jan. 2004) and employment (up from 54.4 to 59.6—best since Feb. 2018). Exports (down from 57.2 to 54.5) continued to expand modestly despite softening somewhat in March.
“Supply chain disruptions remain a significant challenge, including labor market and logistics struggles. The index for supplier deliveries (up from 72.0 to 76.6) soared to its highest reading since Apr. 1974, with sharply slower delivery times in March. (In this case, readings above 50 are consistent with slower deliveries.) The backlog of orders (up from 64.0 to 67.5) jumped to the highest on record, dating back to when the question was added in January 1993.
“With that in mind, prices (down from 86.0 to 85.6) decelerated marginally in March from February’s pace, which was the fastest rate since July 2008.” 4/1/2021
Orders for durable manufactured goods fell last month by 1.1% as U.S. factories faced supply-chain challenges due to poor weather and other factors. The drop ended a streak of nine months of gains. Chad Moutray, chief economist for the National Association of Manufacturers, told The Wall Street Journal (subscription) that “this should not take away from the larger story of strength in manufacturing, which has rebounded strongly since last spring.”
Moutray reports the IHS Markit Flash U.S. Manufacturing Purchasing Managers Index strengthened slightly, rising from 58.6 in February to 59.0 in March. 3/24/2021
While supply chain disruptions have plagued manufacturers since the start of the pandemic, microchip shortages and constraints in steel production have affected many OMA members in recent months. The Federal Reserve Bank of Cleveland has published this report on how supply chain challenges have impacted regional businesses, concluding that disruptions will continue “to evolve for the foreseeable future.” 3/23/2021
Ohio lawmakers this week voted to override Gov. Mike DeWine’s veto of Senate Bill 22, which gives the General Assembly the power to rescind an administration’s emergency executive actions by passing a concurrent resolution. The legislation also places restrictions on the ability of the Ohio Department of Health and local health departments to issue quarantine and isolation orders.
The bill won’t take effect for another 90 days. Gov. DeWine has said the legislation could be challenged in court. OMA Connections Partner Roetzel has published this summary of SB 22. 3/25/2021