Leadership

CEOs: U.S. Debt Is Top Geopolitical Risk

A new survey finds that U.S. CEOs and C-Suite executives view the ballooning federal debt as the biggest geopolitical risk. The potential for an increase in cyberattacks was their next highest geopolitical concern, according to The Conference Board’s “C-Suite Outlook 2024.”

Just 37% of American CEOs and 27% of global CEOs said they were prepared to deal with a recession. 1/11/2024

Study: Ohio a Top State for Starting a Business

Ohio is the eighth-best state in which to start a business, according to a report by HubScore and public data it used to produce the ranking. The comparison considered business climate, cost of doing business (including taxes, labor, and energy), and workforce availability, among other things. Ohio was best in the U.S. for business costs, the comparison found. 1/9/2024

OMA Releases Updated Advocacy Results

Hot off the presses, the OMA has released this updated report, highlighting the value of manufacturers’ presence at the Ohio Statehouse and before the executive branch.

The report summarizes recent advocacy results, including key victories in the areas of workforce development, energy, and other areas impacting Ohio’s top industry. 1/3/2024

U.S. Manufacturing’s Continued Contraction

The Institute for Supply Management’s Purchasing Managers’ Index (PMI) increased to 47.4 in December, up from 46.7 the two previous months. A PMI score below 50 indicates contraction.

December marked the 14th consecutive month of contraction for the nation’s manufacturing sector, the longest decline since 2000-2001.1/3/2024

Feeling the Effects of December’s Railroad Closures?

In response to a surge in illegal migration, the U.S. Customs and Border Patrol last month closed rail bridges in Eagle Pass and El Paso, Texas. While the crossings were reopened a week later, Union Pacific Railway estimates $200 million in economic activity was lost each day the crossings were closed.

Some manufacturers continue to suffer supply chain shortages following the rail closures. If your business has been impacted, contact OMA Public Policy Director James Lee so the association can better gauge the impact to members. 1/3/2024

Ohio’s Booming Defense Industry

Ohio’s defense industry is a driver of the state’s manufacturing economy. The Pentagon spent $6.3 billion on private sector contracts in Ohio in 2021, according to reports.

This reinforces why the DeWine-Husted administration has worked with the OMA to enhance defense manufacturing processes under Ohio’s designation as a Defense Manufacturing Community.

In related news, Cincinnati-based GE Aerospace appears to be leading the race to develop a reusable hypersonic engine (capable of achieving speeds in excess of 4,000 mph), according to the Cincinnati Business Courier. 1/4/2024

Record Year for Manufacturing Output

Manufacturers in Ohio and across the U.S. are wrapping up an impressive 2023, having added a record $2.85 trillion to the nation’s economy, according to Chad Moutray, chief economist for the National Association of Manufacturers.

Data from the U.S. Bureau of Economic Analysis show Ohio’s manufacturing output reached a seasonally adjusted annual $129.15 billion as of Q2 2023. That’s $21.6 billion more than the GDP recorded just two years earlier. 12/27/2023

Report: Ohio a Leader in Manufacturing Job Growth

A new study by real estate firm Savills finds that from January 2021 to October 2023, manufacturers in the U.S. added more than 845,000 jobs. Large-scale job creation was concentrated in the South and Midwest, including Ohio.

Two-thirds of newly created manufacturing jobs are tied to EV batteries, semiconductors, clean energy, and biomanufacturing. Ohio is “vying for the most diversified portfolio of new manufacturing jobs,” the firm said. 12/27/2023

Issue 2 on State Lawmakers’ 2024 To-Do List

Between New Year’s Day and summer recess, the Ohio House is planning seven meetings; the Ohio Senate is planning eight. That will leave little time for lawmakers to tackle a lengthy to-do list, which includes modifying the state’s new recreational marijuana law.

Also, when lawmakers return to Columbus in January, the House will begin work on the two-year capital budget, which funds projects tied to state agencies (other than the Ohio Department of Transportation) and education. Funds for local community or regional projects are also typically included. 12/27/2023

Legislative Candidates Set for 2024 Election

Dec. 20 was Ohio’s filing deadline for the March 19, 2024 primary election. Not only is 2024 a presidential election year, Ohio ballots will also feature the U.S. Senate race and contests for three seats on the state supreme court. Feb. 20 is the deadline to register for the primary.

As always, the OMA will closely monitor state legislative races. Half the seats in the Ohio Senate and all the seats in the Ohio House will be on the ballot. (Here are the final legislative district maps.)

Of the 21 House Republicans who supported Rep. Jason Stephens (R-Kitts Hill) for speaker over Rep. Derek Merrin (R-Napoleon), 10 have primary challengers, reports say. Meanwhile, many Statehouse observers are anticipating a contested speaker’s race in early 2025, when Speaker Stephens could draw a challenge from term-limited Senate President Matt Huffman (R-Lima). 12/26/2023