Ohio Receives Above Average Grade for Manufacturing
Curious how Ohio-based manufacturing stacks up against the rest of the nation? A recent report prepared by Ball State University’s Center for Business and Economic Research found Ohio ranks near the top. The 2015 Manufacturing and Logistics Report discovered the state’s manufacturing accounts for almost one-fifth of the total payroll in a 14-county region, according to the Dayton Region Manufacturing Association. Manufacturing in the state fuels $5.6 billion in annual payroll.
Gathering the Criteria
The manufacturing report measured three key variables.
- Share of total income earned by manufacturing employees in the state
- The wage premium paid to manufacturing workers as compared to manufacturing workers in other states
- Share of manufacturing employment per capita (per person)
Passing out the Grades
As a vital element of the Ohio economy, the state received a B for manufacturing. In addition to manufacturing, grades were also awarded for logistics, human capital, worker benefit costs, state tax climate, expected fiscal liability gap, global reach, sector diversification, and productivity and innovation. Grades for the 50 states included: 6 states with an A grade, 10 with a B, 18 received a C, 11 got a D and the remaining five states failed with an F.
Ohio’s Grade Card
(B) Manufacturing – measure of total income, wage premium paid and share of per capita manufacturing employment
(A) Logistics – ability to store and move goods, and manage the distribution and processing of manufactured goods
(C-) Human Capital – availability and quality of the local manufacturing workforce
(C) Worker Benefit Costs – combination of non-wage labor costs including health care insurance, workers’ compensation, retirement pensions and other worker benefits
(C) Tax Climate – outlook of cumulative costs incurred from state and local taxes, business taxes, insurance, property tax, and employment
(C) Expected Fiscal Liability Gap – unfunded liabilities related to bonds and pensions
(A) Global Reach – competitiveness in the sector as measured by imports and exports through the movement and distribution of consumer durable and non-durable goods
(C-) Sector Diversification – possibility of volatility as it relates to employment and incomes over a business cycle
(B) Productivity and Innovation – value of manufactured goods per worker with access to innovations, inventions and local talent at universities and non-profits
Comfort and Openness to Variables
Much like the grades earned by the state, each manufacturer within Ohio works with an evolving set of variables. The ability to remain flexible and think on collective feet is a cornerstone of the designers and manufacturers employed by Cleveland Deburring Machine Company (CDMC). The manufacturers at CDMC strive to connect with each customer in a way that achieves the best possible deburring solution.