Leadership

U.S. Manufacturing Construction Booms

U.S. manufacturing construction posted a 74% annual growth rate during the first six months of this year.

In this insight, OMA Connections Partner RSM notes that much of this construction boom has been fueled by the semiconductor industry, but that other manufacturing sectors — including transportation, chemicals, and food and beverage — are holding their own. 7/25/2023

Forum Spotlights Ohio Manufacturing’s Supercycle

On July 19, the Columbus Metropolitan Club hosted a panel discussion titled “Made in Ohio: The Coming Manufacturing Supercycle.” Speakers were Ryan Augsburger, OMA president; economist Bill LaFayette; Damon Richardson, senior vice president of Grove City-based American Nitrile; and Daniela Villaca, HR director for Delaware-based Acoust-A-Fiber. Watch this recording of the discussion.

The forum featured insights on Ohio’s manufacturing growth in jobs and GDP since 2010, as well as a look at the state’s advantages and challenges when it comes to future growth. In his remarks, the OMA’s Augsburger shared these slides, highlighting Ohio’s manufacturing leadership and the state’s “secret sauce.” 7/19/2023

LaRose Enters Ohio’s U.S. Senate Race

Secretary of State Frank LaRose has officially entered the GOP primary for Ohio’s 2024 U.S. Senate race. He joins businessman Bernie Moreno and state Sen. Matt Dolan (R-Chagrin Falls) as the Republicans in the contest.

The winner of the GOP primary will face incumbent U.S. Sen. Sherrod Brown (D), who enjoys a sizeable campaign cash advantage early on, according to reports. A new USA Today poll shows Brown and LaRose tied in a head-to-head matchup. See the latest polls for all U.S. Senate races at RealClearPolitics. 7/17/2023

OMA Publishes State Budget Wrap-Up Report

As reported last week, the Ohio House and Senate recently passed and the governor signed a final version of the two-year state budget (House Bill 33). The new budget includes some significant wins for manufacturers, as well as a concerning tax change.

The OMA Public Policy Services team has produced this in-depth report, providing details on the budget provisions of interest to manufacturers. 7/13/2023

Early Voting Begins on State Issue 1

Early voting is underway for Ohio’s special election on State Issue 1, which would make it more difficult to amend the state constitution, requiring a 60% voter-approval threshold versus a simple majority. Here’s important information for voters regarding the Aug. 8 election.

This document published by the Secretary of State includes the ballot language, as well as arguments for and against the measure (see page 2), as stated by supporters and opponents. If passed, the amendment would take effect immediately. 7/14/2023

Webinar: Cybersecurity and Manufacturers

On July 19, OMA Connections Partner HBK and its manufacturing solutions team will host a no-cost webinar to examine the results of the Verizon Data Breach Investigations Report. Based on data provided by cybersecurity firms, this report informs organizations about cybersecurity threats and how to guard against them. Learn more and register. 7/13/2023

Ohio No. 12 in CNBC Business Competitiveness Study

Ohio has improved its overall standing in CNBC’s “Top States for Business” study, climbing from No. 15 in 2022 to No. 12 this year.

In its analysis of 86 metrics in 10 broad categories, Ohio finished fourth best for cost of doing business, fifth for infrastructure, and sixth for access to capital. Dragging down Ohio’s overall ranking were its marks in workforce (No. 39), business friendliness, and education (No. 40 for both). 7/13/2023

Manufacturers Score Budget Victories

Late last week, the Ohio House and Senate settled their differences and passed a compromise version of the two-year state budget (House Bill 33). During his review of the budget plan, Gov. Mike DeWine protected manufacturing interests by vetoing OMA-opposed “economic development” language that would have made anti-consumer changes to the state’s utility law.

The vetoed provisions (item 12) would have allowed electric and natural gas utility companies to charge customers hundreds of millions of dollars to fund infrastructure for speculative economic development, while removing important consumer protections. In this statement, the OMA commended the governor’s action. (Read Gongwer News Service’s report.)

The budget includes several OMA-supported initiatives to grow the manufacturing workforce and boost economic development. These include:

• Modernizing Career-Tech Equipment: The budget provides Ohio’s career-tech centers $50 million per fiscal year ($100 million total) for the purchase of modern equipment.
• Expanding Career-Tech Facilities: The budget authorizes $200 million total in FY 2024 to support construction or expansion of career-tech facilities.
• Sustaining TechCred: A popular training reimbursement program among Ohio manufacturers, TechCred will receive $25.2 million per fiscal year ($50.4 million total).
• Connecting Students to Credentials: The budget authorizes $16 million per fiscal year ($32 million total) to fund industry recognized credentials for high school students.
• Supporting ISPs: The budget provides qualifying industry sector partnerships with $5 million per fiscal year, an increase of $1.5 million from the previous budget.
• Focusing on Workforce in K-12 Education: The budget contains an OMA-supported plan to ensure additional workforce focus through the renamed Ohio Department of Education and Workforce. The agency will assume many duties of the State Board of Education.
• Attracting New Economic Development: The budget makes a significant investment of $750 million to Gov. DeWine’s All Ohio Future Fund to ensure shovel-ready industrial sites.

Meanwhile, the budget makes imprudent changes to the Commercial Activity Tax (CAT). Instead of reducing CAT rates and minimums by 25% across the board — as originally proposed by the Senate Finance Committee — the budget significantly narrows which businesses will pay the CAT, shifting the burden to larger businesses, which are manufacturers in many cases. The OMA will monitor this development and its impact on the manufacturing community, especially during the next economic downturn.

Members can expect an in-depth budget report from OMA Public Policy Services next week. 7/6/2023

Ohio Manufacturers Post New Record: $134B GDP

Ohio manufacturing’s annual economic output hit a record $134.24 billion in Q4 2022, according to the U.S. Bureau of Economic Analysis. The seasonally adjusted data show the state’s annual manufacturing GDP grew more than $44 billion from a decade earlier. Meanwhile, Ohio reported nearly 692,000 manufacturing jobs as of May. 7/3/2023

10 Tips to Fuel Manufacturing Innovation

MAGNET, Northeast Ohio’s MEP and an OMA Connections Partner, reports that its survey found 75% of local manufacturers have deprioritized innovation in the wake of the pandemic and recent supply chain chaos. The organization says it’s time to get innovating again — and has published this infographic offering 10 tips to fuel innovation. 7/6/2023