Economy of Ohio: Difference between revisions
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</ref>. Several noteable energy companies are headquarterd in Ohio, including [[American Electric Power]], [[Columbia Gas]] of Ohio and [[IGS Energy]]. |
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===Food processing and eateries=== |
===Food processing and eateries=== |
Revision as of 18:29, 23 August 2009
The economy of Ohio includes many historically strong industries, such as motor vehicle manufacturing, more traditional industries, such as agriculture, and new and developing sectors such as the information industry and food processing.
Ohio's food processing industry processes an estimated $23.5 billion of shipments annually.[1] Some of the largest food processing plants in the world are also located in Ohio: the world's largest yogurt processing plant is operated by Dannon in Auglaize County, Campbell's operates the world's largest soup processing plant in Napoleon, Heinz operates the world's single largest ketchup processing plant in Fremont, and General Mills operates the world's largest frozen pizza processing plant in Wellston.[1]
Wal-Mart is the largest private sector employer in Ohio,[2] with approximately 53,000 employees.[3] The largest Ohio employer with headquarters in Ohio is Kroger, with approximately 36,500 employees, and headquarters in Cincinnati, Ohio.[2] The largest employer at a single location in Ohio is Wright Patterson Air Force Base in Dayton, Ohio.[2]
General statistics
Ohio's private sector is composed of 921,000 employers, which hire around 50.4% of Ohio's non-farm private workforce.
Ohio's gross state product (GSP) was $466 billion as of 2007.[3] If Ohio were to be its own country, it would rank between Turkey and the Netherlands in its nominal gross domestic product.[4] The manufacturing sector contributes 18% of Ohio's GSP, followed by the trade sector with 16%.[3] Ohio has a developing technology sector and is home to over 28,000 employers that employ nearly 820,000 people; its rate of technology operations is 14% higher than the US average.[3]
Between 2006 and 2014, Ohio's employment is expected to grow by 290,700 jobs, or approximately 5.0%.[3] Personal income grew an average of 3.1% in 2008.[3] About 659,900 people are employed in Ohio's manufacturing sector.[3] Major manufacturing employers include AK Steel, Timken, and Honda. Ohio's exports are delivered to 213 countries and constitute 3.5% of total US exports;[3] major exports include motor vehicles and machinery.
Major employers
The following is a list of the top 10 Ohioan employers with headquarters in Ohio.[2]
Rank | Employer | Number of Ohio employees | Headquarters location |
---|---|---|---|
1 | Kroger | 38,000 | Cincinnati, Ohio |
2 | Cleveland Clinic Health System | 37,800 | Cleveland, Ohio |
3 | Catholic Healthcare Partners | 28,200 | Cincinnati, Ohio |
4 | Ohio State University | 26,800 | Columbus, Ohio |
5 | Wright Patterson Air Force Base | 23,800 | Dayton, Ohio |
6 | University Hospitals of Cleveland | 21,800 | Cleveland, Ohio |
7 | OhioHealth | 15,300 | Columbus, Ohio |
8 | ProMedica | 14,500 | Toledo, Ohio |
9 | Premier Health Partners | 14,000 | Dayton, Ohio |
10 | Procter and Gamble | 14,000 | Cincinnati, Ohio |
The following is a list of the top Ohioan employers with headquarters anywhere in the world.[2]
Rank | Employer | Number of Ohio employees | Headquarters location |
---|---|---|---|
1 | Wal-Mart | 54,200 | Bentonville, Arkansas |
2 | Kroger | 38,000 | Cincinnati, Ohio |
3 | Cleveland Clinic Health System | 37,800 | Cleveland, Ohio |
4 | Catholic Healthcare Partners | 28,200 | Cincinnati, Ohio |
5 | Ohio State University | 26,800 | Columbus, Ohio |
6 | Wright-Patterson Air Force Base | 23,800 | Dayton, Ohio |
7 | University Hospitals of Cleveland | 21,800 | Cleveland, Ohio |
8 | JP Morgan Chase | 17,500 | New York, New York |
9 | Giant Eagle | 17,000 | Pittsburgh, Pennsylvania |
10 | Sears Holdings Corp | 16,400 | Hoffman Estates, Illinois |
Industries
Aerospace and defense
The aerospace and defense industry employs 16,000 Ohioans.[5] Employment has been increasing after 2003, despite an overall decrease in employment since the industry's peak at 37,000 employees in 1990.[5] In 2005, Ohio ranked fifth among US states in the production of aerospace products and parts, and eighth in the number of aerospace industry workers.[5] Ohioan workers in the aerospace industry made an annual average salary of $75,765 in 2005, compared to $48,208 in for workers in the manufacturing sector generally.[5] Nearly 75% of the state's aerospace and defense employees work in the aircraft engine manufacturing sub-sector;[5] only Connecticut has larger aircraft engine workforce.[5] Notable aerospace and defense companies in Ohio include GE Aviation, Goodrich Corporation, and Aircraft Braking Systems.[5]
Defense systems play a smaller role in the industry. Ohio corporations were awarded around $5.5 billion of United States Department of Defense procurements.[5] Notable defense contractors include Goodyear Tire and Rubber Company, Lockheed Martin, and Armor Holdings.[5]
Agriculture
Ohio's agricultural market exports many different products. Ohio ranks 1st in the production of Swiss cheese out of all 50 states,[1] 2nd in eggs,[1] 3rd in tomatoes,[1] 6th in soybeans,[1] and 6th in corn for grain.[1] The agriculture and food processing and eatery industries are heavily intertwined in Ohio. For example, Ohio being the 3rd largest producer of tomatoes in the United States in turn has the world's largest ketchup processing plant in Fremont, Ohio.[1]
The number of farms in Ohio stood at 75,700, as of 2007,[6] covering 14,200,000 acres (57,000 km2) of land. The average farm size was 188 acres (0.76 km2).[6] However, the number of farms slowly decreased from 2006, where the number of farms in Ohio stood at 76,200.[6] The amount of land used for farms in Ohio also decreased from 2006, where 14,300,000 acres (58,000 km2) of land were used for agriculture.[6] However, the dairy sector of Ohio's agriculture industry is growing.[6] The estimated number of dairy cows in Ohio increased from 274,000 in 2006[6] to 276,000 in 2007. Estimated dairy production in Ohio increased from 4,860,000,000 pounds (2.20×109 kg) in 2006[6] to 4,980,000,000 pounds (2.26×109 kg) in 2007.[6]
Banking
Ohio is home to three commercial banks that rank among the largest commercial banks in the United States as measured by asset size. Up until 2008, Ohio had four banks among the Top 25 however the acquisition of Cleveland-based National City Bank with Pittsburgh-based PNC Bank eliminated the fourth.
- KeyCorp, the bank holding company for Key Bank N.A. headquartered in the Key Tower in Cleveland, Ohio
- Fifth Third Bancorp, the bank holding company for Fifth Third Bank N.A. headquartered in Cincinnati, Ohio
- Huntington Bancshares, the bank holding company for The Huntington National Bank headquartered in the Huntington Center in Columbus, Ohio
Energy
On October 22, 2008, in a unanimous vote, the Ohio legislature has passed, and Governor Ted Strickland has signed into law, Senate Bill 221 requiring 12.5% of Ohio's energy be generated from renewable sources by 2025.[7]. Several noteable energy companies are headquarterd in Ohio, including American Electric Power, Columbia Gas of Ohio and IGS Energy.
Food processing and eateries
Ohio's food processing industry produces $23.5 billion dollars in food shipments annually.[1] The frozen food industry is the largest sub-industry,[1] surpassing even the state of California by $700 million in frozen food shipments,[1] in which Ohio ships $2.4 billion dollars of frozen food shipments annually.[1] Ohio also ranks 1st out of every state in the United States in frozen food shipments and Ohio's frozen food industry accounts for 20.7% of the United States' frozen food processing.[1] Several of the world's largest food operating plants are operated in Ohio: the world's largest yogurt processing plant is operated by Dannon in Auglaize County, Campbell's operates the world's largest soup processing plant in Napoleon, Heinz operates the world's single largest ketchup processing plant in Fremont, and General Mills operates the world's largest frozen pizza processing plant in Wellston.[1] Major food processing companies in Ohio include Chiquita Brands International (Cincinnati), Kroger (Cincinnati), T. Marzetti Company (Columbus), The J.M. Smucker Co. (Orrville), and The Iams Company (Cincinnati).[1] Other food processing sub-industries that Ohio lead in include pet food (8.4% of the nation's pet food, ranking in 2nd), ketchup and dressings (7.6% of the nation's ketchup and dressing production, ranking 2nd), cookies and crackers (9.9% of the nation's production, ranking 4th), and soft drinks (6.2% of the nation's production, ranking 4th).[1] The county with the most food processing facilities is Hamilton County, followed by Franklin County and Stark County.[1] Major eateries headquartered in Ohio include Bob Evans Restaurants (Columbus) and Wendy's (Dublin).
Information
Ohio is in the 1st quintile in the information industry, in terms of establishments for the information industry.[8] In 2002, Ohio had reached 4,143 establishments, which are 3% of the United States' information establishments.[8] Information establishments include printing and publishing establishments, broadcasting establishments, and telecommunications establishments.[8] As of 2002, there were approximately 106,754 workers in Ohio working in the information industry.[8] The total industry ranks 8th out of all 50 states in the number of establishments, and 9th in the number of paid workers, which was 106,754 in 2002.[8] A main sector of the industry is the publishing sector.[8] The sector ranks 9th out of all states in the number of establishments,[8] which is 1,015,[8] and ranks 10th in the number of employees in the sector,[8] and 13th in its contribution to the gross state product.[8] Another prime sector in Ohio's information industry is the broadcasting sector.[8] The broadcasting sector ranks 9th out of all 50 states in the number of establishments,[8] which is 1,954,[8] 11th in number of paid workers,[8] and 11th to its contribution to Ohio's gross state product, which is $6.6 billion.[8]
Insurance
Ohio is a major center for insurance corporations, ranking 6th out of all 50 states in the insurance industry, based on overall employment,[9] and Ohio ranks 4th in casualty insurance out of all 50 states.[9] As far as gross state product, from the period of 1990-1999 Ohio insurance contribution to Ohio's gross state product grew about 161% from $2.6 billion to $6.8 billion,[9] despite population growth from 1990-2000 of only about 4.67%, from 10,847,115 to 11,353,140.[10] Ohio's insurance employment is expected to grow continuously at a rate of 9.8%.[9] Ohio is home to the 3rd most claim examiners in the United States, out of all 50 states.
Five Fortune 500 companies are Ohio-based insurance companies.[9] These companies are:
- Nationwide Insurance, Columbus, Ohio
- Progressive Corporation, Mayfield, Ohio
- American Financial Group, Cincinnati, Ohio
- Cincinnati Financial, Cincinnati, Ohio
- Ohio Casualty, a subsidiary of Liberty Mutual, Fairfield, Ohio.
Iron and steel
Ohio produces between 14% and 17% of the United States' raw steel.[11] The sector of objects made from purchased steel in Ohio ranks 2nd out of all 50 states,[11] and 3rd in the sector of iron, steel, and ferroalloys.[11] Seventy percent of the United States' electrometallurgical ferroalloy manufacturing employees are located in Ohio.[11] The entire industry as a whole, although not as concentrated as the electrometallurgical ferroalloy manufacturing sector, employs 34,000 paid workers at 234 individual workplaces.[11] Ohio's 234 workplaces make up 9.5% of the United States industry's workplaces,[11] and the 34,000 paid workers make up 13.6% of the United States industry's workers.[11] Of these workers and workplaces, the sector of iron, steel, and ferroalloys make up the largest sector in Ohio's industry,[11] with 17,000 paid workers in 73 workplaces.[11] However, despite Ohio's large presence in the iron and steel market, employment rates have declined in Ohio,[11] generally attributed to weakening national economy.[11] Between 1998 and 2005, the number of Ohio iron and steel industry workers decreased from 52,700 to 34,000.[11] The Ohio Department of Development predicts the decreases will continue in coming years.[11] The average annual salary for iron and steel industry workers in Ohio was $59,686, compared the national industry average of $53,352.[11]
There are three Fortune 500 iron and steel manufacturers with world headquarters in Ohio:[11] AK Steel (Westchester, Ohio), Timken Company (Canton, Ohio), and Worthington Industries (Columbus, Ohio).
Rubber and plastics
One of Ohio's historically strong industries is the rubber and plastics industry. Ohio ranks 1st of all 50 states in rubber and plastics production,[12] producing around $17.4 billion of rubber and plastics shipments annually.[12] Eight Fortune 1000 rubber and/or plastics corporations are located in Ohio:[12]
- Goodyear Tire & Rubber, Akron, Ohio
- Parker Hannifin, Cleveland, Ohio
- Owens-Illinois, Perrysburg, Ohio
- Owens Corning, Toledo, Ohio
- Cooper Tire & Rubber, Findlay, Ohio
- PolyOne, Avon Lake, Ohio
- Ferro Corporation, Cleveland, Ohio
- A. Schulman, Akron, Ohio.
Ohio ranks 1st in the gross state product of the rubber and plastics industry of any state.[12] For the 5-year period of 2000-2004, inflation-adjusted production increased around 10%.[12] In addition, in this period, the US rubber and plastics industry only grew 6%.[12]
Ohio exported around $1.3 billion worth of rubber and plastics shipments in 2006.[12] Rubber and plastics exports make up for 7.3% of total sales.[12] Canada is the largest importer of Ohio's $1.3 billion worth of exports, accounting for 46% of this amount.[12] The Census Bureau expects that an addition $1.1 billion worth of material is indirectly exported, through the means of other goods that are made from rubbers and plastics, including motor vehicles and machinery.[12]
However, despite increased production, employment has been decreasing in Ohio's rubber and plastic industry.[12] In 2000, Ohio employed around 92,000 rubber and plastics industry workers. By 2006, those rates have declined by about 26% to about 69,000 workers.[12] The Ohio Bureau of Labor Market Information predicts that, from 2004-2014, there will be 11,200 less workers in Ohio's industry.[12] They also predict that plastics employment in Ohio will decrease by 13.7%, and that rubber products employment will decrease by 20.7%.[12] The industry currently employs about 73,000 Ohio workers,[12] and employs about 12.3% of the United States' rubber employees, and 7.8% of the United States' plastics employees.[12]
Tourism
Ohio's tourism industry, although historically under-represented, is now growing stronger. For example, in 2006, the Ohio Department of Development reported that 173.8 million trips were taken either to Ohio, or within Ohio.[13] Although an estimated 139.2 million trips (around 80%) were one-day trips, an estimated 33.6 million trips were overnight trips.[13] Another one million trips are unaccounted for. 74% of overnight visitors came from Ohio or nearby states,[14] while another 26% came from both the rest of the United States' states and the rest of the world.[13] The Ohio Department of Development also reported that $33.7 billion were spent by tourists.[13] The analysis is as follows:[13]
- $11.6 billion of food
- $7.7 billion of retail items
- $6.5 billion of transportation
- $4.3 billion of recreation
- $3.6 billion of accommodations.
The above expenditures give Ohio approximately $1.4 billion in state taxes and $702 million in local taxes.[15] Northeast Ohio received 29% of all tourism expenditures.[13] The tourism industry in Ohio currently gives work to 560,000 people directly, and many others indirectly.[13]
Vehicles
The current state of the motor vehicle industry in Ohio is mixed and dotted. In 2002, the Ohio motor vehicle industry produced about $16 billion of items.[16] This is about 14% of the automobile production of the United States, and Ohio outputs every state in production of motor vehicles except for Michigan.[16] These $16 billion account for approximately 4.1% of Ohio's gross state product; however, the motor vehicle industry only accounts for 1.1% of the United States' output.[16] In 2003, Ohio was able to produce about 1,885,000 motor vehicles, accounting for 15.6% of the United States' production, and, again, more than any state except for Michigan, in which 928,000 of these were automobiles.[16] The Ohio Department of Development estimates that there are 555 motor vehicle production establishments in Ohio, and that by employing around 138,000 people, Ohio motor vehicle production employees account for 12.7% of the United States' motor vehicle production employees.[16] Despite sharp losses since 1999, the motor vehicle production industry was able to recover in 2001, producing a net gain of 148,000 vehicles.[16] General Motors produced the plurality of motor vehicles in Ohio, with 36.5% of the production of motor vehicles in Ohio, followed closely by Honda with 35.9%. Other major motor vehicle producers in Ohio include DaimlerChrysler (with 17.5% of production) and Ford (with 10.5% of production).[16] However, despite the growth listed above, employment statistics and outlooks are much more grim. In 2004, the number of people employed in the motor vehicle assembly industry in Ohio was reported to be around 31,000, down from about 40,000 throughout the 1990s,[16] while in the motor vehicle parts production industry in Ohio, in December 1997, employment stood at approximately 122,000 employees;[16] however, that number dropped by about 26% to 90,000 employees by 2004.[16] Despite the growth facts above, the loss of employment is more likely to directly affect Ohio's economy. The Ohio Bureau of Labor Market Information estimates that there will be 3,300 less assembly employees and 2,400 less parts manufacturing employees in 2012 than 2002.[16] Some major motor vehicle assembly production plants in Ohio include the Toledo Complex and the Lordstown Assembly.
Per capita income
The state of Ohio's residents have an overall $33,338 per capita personal income, as of 2006, which ranks 29th in the United States.[18] However, incomes vary by county. The median family income in Cuyahoga County is $54,506,[19] where the Cleveland Clinic is the single largest employer.[20] Cleveland also has emerging biotechnology and financial concentrations. It is also worthwhile to note that while some cities in Ohio have declining populations,[21][22] the overall growth in per capita income in Ohio increased by 4.6% from 2005–2006.[18]
Housing
According to the United States Census Bureau, there are an estimated 5,045,356 houses in Ohio, of which 4,499,506, or about 89.2% are estimated to be occupied;[23] this is 0.8% above the national average rate of occupation.[23] Houses with a mortgage are estimated to cost owners about $1,216 per month;[23] this is 0.8% above the national average rate of occupation,[23] which is $186 below the national average;[23] this is 0.8% above the national average rate of occupation.[23] The United States Census Bureau also estimates that 3,150,239 houses are owner-occupied,[23] or about 70%, which is 2.7% above the national average, and that an estimated 1,349,267 houses are renter-occupied[23] this is 0.8% above the national average rate of occupation,[23] or about 30%, which is 2.7% below the national average. The median house value is $135,200;[23] this is 0.8% above the national average rate of occupation,[23] or about 70%, which is 2.7% above the national average, and that an estimated 1,349,267 houses are renter-occupied,[23] which is $186 below the national average;[23] this is 0.8% above the national average rate of occupation,[23] which is a significant $50,000 below the national average. Also, there are an estimated 545,850 unoccupied houses;[23] this is 0.8% above the national average rate of occupation,[23] or about 10.8%, which is about 0.8% below the national average. It is also interesting to note that the plurality of houses in Ohio were built from 1940 to 1959 (1,175,325 houses),[24] and that 3,058,721 houses are in some way dependent on utility gas.[24]
Taxation
Below are the simple personal income tax rates for Ohio:[25]
Income range | Tax rate per dollar earned |
---|---|
$0-$5000 | 0.618% |
$5001-$10000 | 1.236% + $30.90 |
$10001-$15000 | 2.473% + $92.70 |
$15001-$20000 | 3.091% + $216.35 |
$20001-$40000 | 3.708% + $370.90 |
$40001-$80000 | 4.327% + $1,112.50 |
$80001-$100000 | 4.945% + $2,843.30 |
$100001-$200000 | 5.741% + $3,832.30 |
$200001 or more | 6.24% + $9573.30 |
References
- ^ a b c d e f g h i j k l m n o p q r s "The Ohio Food Processing Industry" (PDF). Ohio Department of Development. March, 2005. Retrieved 2008-02-18.
{{cite web}}
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(help) - ^ a b c d e "Major Ohio Employers" (PDF). Ohio Department of Development. January, 2008. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g h i "Ohio Department of Development Economic Overview" (PDF). Ohio Department of Development. April, 2009. Retrieved 2009-04-24.
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(help) - ^ "Total GDP 2006" (PDF). The World Bank. 2007-07-01. Retrieved 2008-02-17.
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(help) - ^ a b c d e f g h i "Ohio's Aerospace & Defense Industries" (PDF). Ohio Department of Development. April, 2007. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g h "Agricultural Statistics Database". National Agricultural Statistics Service. Retrieved 2008-02-18.
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(help) - ^ "Energy law will shape the future of electricity". Office of the Ohio Consumers' Counsel. Retrieved 2008-10-22.
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(help) - ^ a b c d e f g h i j k l m n o "The Ohio Information Industry" (PDF). Ohio Department of Development. 2006-11-09. Retrieved 2008-02-18.
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(help) - ^ a b c d e f "The Insurance Carriers Industry in Ohio" (PDF). Ohio Department of Development. Retrieved 2008-02-18.
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(help) - ^ "Ohio Population Finder". United States Census Bureau. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g h i j k l m n o "Iron and Steel Industry of Ohio" (PDF). Ohio Department of Development. January, 2008. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g h i j k l m n o p "The Ohio Plastics and Rubber Products Industry" (PDF). Ohio Department of Development. May, 2007. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g "Travel & Tourism" (PDF). Ohio Department of Development. 2006-08-24. Retrieved 2008-02-18.
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(help) - ^ This includes New York in surveys, even though it does not technically border Ohio
- ^ "Ohio Travel & Tourism statistics". Ohio Travel Association. 2007-04-18. Retrieved 2008-02-18.
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(help) - ^ a b c d e f g h i j k l m n "The Ohio Motor Vehicle Industry" (PDF). Ohio Department of Development. December, 2007. Retrieved 2008-02-19.
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(help) - ^ "Marysville Auto Plant". Honda of America Manufacturing, Inc. Retrieved 2008-10-22.
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(help) - ^ a b Lenze, David G. (2007-03-27). "State Personal Income, 2006". Bureau of Economic Analysis. Retrieved 2008-02-19.
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suggested) (help) - ^ "Cuyahoga County, Ohio, Fact Sheet". United States Census Bureau. Retrieved 2008-02-19.
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(help) - ^ "Cleveland Clinic: Committed to Northeast Ohio". The Plain Dealer. 2007-08-17. p. 1. Retrieved 2008-08-19.
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(help) - ^ "Cleveland city, Ohio, Population Finder". United States Census Bureau. Retrieved 2008-02-19.
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(help) - ^ "Akron, Ohio, Population Finder". United States Census Bureau. Retrieved 2008-02-19.
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(help) - ^ a b c d e f g h i j k l m n o p "Ohio Fact Sheet". United States Census Bureau. Retrieved 2008-02-19.
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(help) - ^ a b "Profile of Housing Characteristics: 2000". United States Census Bureau. Retrieved 2008-10-22.
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(help) - ^ "Ohio Revised Code - Income Tax Rates". State of Ohio. Retrieved 2008-10-22.
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