News and Analysis
In its analysis of the microchip shortage, the AP reports that “record-high consumer prices for vehicles — new and used — will extend into next year and might not fall until 2023.” CNBC notes the shortage is thought to have been exacerbated by the move to electric vehicles. (A new, smaller vehicle with an internal combustion engine uses around 300 chips; a new electric vehicle can have as many as 3,000 chips.)
This infographic by Visual Capitalist illustrates how dependent the global economy and modern life have become on chip technology, as well as chip manufacturers in Asia. 9/7/2021
This week, Ohio was again named a top 10 state in which to do business — this time by Area Development magazine following its annual survey of leading location consultants. Ohio is No. 9 in the comparison, which examined 13 categories impacting companies’ location and facility plans. Ohio performed especially well in the areas of site-readiness programs and available real estate. 9/9/2021
Ohio manufacturing scored well in the latest comparisons recently published by Business Facilities magazine. According to the publication’s 17th Annual Rankings Report, the Buckeye State is once again a top 10 state in multiple categories, including automotive manufacturing (#2), aerospace/defense (#7), manufacturing employment (#8), and solar power jobs (#9). 9/7/2021
There is currently a vacancy on the Ohio Rail Development Commission. The vacant seat is dedicated specifically for representation of manufacturing interests. OMA members interested in this governor-appointed position should email the commission’s executive director, Matt Dietrich. 9/9/2021
Fall is a special time of year in Ohio — and TourismOhio has published this list of 100 things to do in the Buckeye State. From visiting one of 75 state parks, to trying out local food and beverage shops, to finding the perfect pumpkin patch, this is an impressive list of attractions that you’ll want to share with co-workers and employees. 9/9/2020
Ohio Supreme Court Justice Pat DeWine announced this week he will seek re-election for his current seat rather than run for chief justice, an option he explored over the past year. DeWine told supporters he believes running for re-election is “the best way to ensure a conservative majority.” The GOP currently holds a 4-3 majority on the court.
This week, the OMA Government Affairs Committee conducted a hybrid in-person meeting, addressing multiple policy-related issues impacting manufacturers.
In addition to updates on Statehouse activities and Ohio’s redistricting process, the meeting included a panel discussion on COVID-19 vaccination policies implemented by select Ohio manufacturers. The panel discussion revealed:
- Cleveland-Cliffs’ aggressive incentive program has achieved a total COVID-19 vaccination rate of 75% among its approximately 25,000 employees.
- Manufacturers that have hosted on-site vaccination clinics, such as Whirlpool Corporation, have often experienced higher vaccination rates.
- Employers with mandatory vaccination policies have seen some resistance from certain workers.
- Some manufacturers are already considering hosting on-site clinics for booster shots.
The committee’s next meeting is set for Nov. 18. 8/25/2021
After expanding at a record pace last month, U.S. manufacturing activity slowed in August while maintaining robust growth, according to the IHS Markit Flash U.S. Manufacturing PMI. The index declined from July’s 63.4 to 61.2 this month.
According to Chad Moutray, chief economist for the National Association of Manufacturers, it was the fifth straight month the index exceeded 60 — a threshold that demonstrates solid expansion.
For a longer term perspective, check out this on-demand webinar (along with these handouts) presented this week by OMA Connections Partner RSM to examine how current trends could affect manufacturers. 8/25/2021
Ohio Business magazine has examined Industry 4.0 and how the Buckeye State can lead this next chapter in manufacturing. The article takes an honest look at some of the challenges facing manufacturers that want to make the leap to 4.0.
Several industry insiders are quoted, including OMA board member Elizabeth (Lissa) Barry, CEO of Streetsboro-based Delta Systems. Barry says smaller and mid-sized manufacturers face being left behind if they don’t adapt 4.0 technologies, while early engagement may help those same businesses “make products better, faster and cheaper than anywhere else in the world.” 8/23/2021
The Biden administration wants half of new car sales to be electric vehicles by 2030 — but recent EV recalls are a reminder there are hurdles on the path to achieving this goal. In its analysis, Axios reports that while many gas-powered cars are recalled, EV recalls are unwelcome at a time when automakers and policymakers want to hasten the transition to cars with a plug. 8/23/2021