State of manufacturing 1 – importance in US and Ohio

OMA's Powered by Manufacturing Video

OMA's Powered by Manufacturing Video

Thus begins a series on manufacturing, which was prompted by a presentation/group discussion I was asked to lead for Leadership Clark County.  I’m happy to do it.  Manufacturing is a great subject.  More details on the directions given to me in the next post (on national trends in manufacturing).

In US

[From press release from Governor’s office] Manufacturing accounts for $1.6 trillion – nearly 12 percent – of the U.S. Gross Domestic Product (GDP). It accounts for nearly three-fourths of the nation’s industrial research and development (R&D) – with four manufacturing industries alone (computers and electronics, chemicals, aerospace, and autos) accounting for 56 percent of private sector R&D.

Jobs in the manufacturing industry pay 20 percent more on average than service jobs.  Each manufacturing job supports 4-5 other jobs throughout the U.S. economy. While employment in maufacturing has steadily declined, one in six private sector jobs is still directly or indirectly tied to manufacturing.

Even before the current recession, manufacturing has faced immense challenges.  The Alliance for American Manufacturing reports that more than 40,000 factories across the nation closed in the past ten years. Manufacturers, particularly small and mid-sized manufacturers, face difficulty obtaining credit and competing in the global marketplace due to unfair subsidies and currency manipulation. TheManufacturing Alliance/MAPI reports the current recession in manufacturing is the worst since the Great Depression, and forecasts a decline of nearly 12 percent in manufacturing production in 2009.

In Ohio

[From Ohio Business Development Coalition] Ohio’s economy is built upon a historic legacy of manufacturing. From the processing of raw materials to the creation of finely tuned products, Ohioans have served as the world’s experts in the manufacturing sector. While the global marketplace has changed the playing field, distributing manufacturing into second- and third-world economies, Ohio remains at the top of the nation in manufacturing competitiveness, ranked by eMvoy an independent industry research group:

  • Ohio is home to 21,250 manufacturing companies
  • Cincinnati ranks sixth in the United States for manufacturing jobs, Cleveland is 10th and Columbus is 19th.
  • Ohio leads the nation in production of general-purpose machinery and is second in metalworking machinery production.

Iron, rubber, cars and consumer electronics are giving way to advanced machinery manufacturing, so that Ohio’s machinery workers are now literally making the machines that make everything else as product manufacture goes overseas. Legacy industries within Ohio’s manufacturing sector are adjusting so that, for example, the state’s historic rubber companies are engaging in advanced plastics applications, and chemicals firms are on the cutting edge of fuel cell and other alternative energy creation solutions.  As manufacturing evolves to meet the new economic realities, Ohio’s legacy as a strong manufacturing state will drive growth in the redefined global marketplace.

Ohio Powered By Manufacturing – video

The following are great videos done by the Ohio Manufacturers’ Association.  Some great stats that come out of the 10  min. video include the following:

  • $84 billion of the state’s economy is tied to manufacturing, placing it 3rd in US
  • 800,000 of Ohio’s jobs are in manufacturing, the largest job sector
  • 1 in 6 Ohioans is employed in manufacturing
  • Manufacturing wages in Ohio are 25% that of service sector
  • 58% of Ohio’s new and expanded facilities (2004-06…would like to do a more recent analysis) were manufacturing, representing a $12 billion investment.
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