Tag Archives: ohio manufacturing

The Resurgence of U.S. Manufacturing Continues to Impact Trade Policy

local manufacturing

The resurgence of the U.S. manufacturing sector continues to impact trade policy around the world. Over the last ten years, prime manufacturing areas such as Ohio have witnessed first-hand how local manufacturers can remain competitive and positively influence the impact of international trade relations on the people working and producing U.S. manufacturing products.

Understanding the Impact

The success of manufacturing at home is directly related to the failures and successes of a growing number of international trade policies and programs. These partnerships include U.S. Trade representatives, entities within the private sector, governments of foreign lands, international organizations and nongovernmental organizations. While often out of the day-to-day mindset, the policies enacted by these various groups correlate to what’s happening with the industry at home. Considering the current 14 free-trade agreements with 20 countries, the influence of the distribution, production and ultimate consumption of manufacturing goods cannot be understated.

In our home state of Ohio, there’s been undeniable growth in manufacturing output, building from the lowest point in 2009 with continuing growth ever since. In 2015, Ohio-based manufacturing accounted for 17.77 percent of the total output in the state, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau.

Top 10 Ohio Manufacturing Sectors

Petroleum and Coal Products

Chemical Products

Motor Vehicles and Parts

Food, Beverage and Tobacco products

Machinery

Plastics and Rubber Products

Primary Metals

Aerospace and Transportation Equipment

Electrical equipment, Appliances and Components

Measuring the Impact

Shifting production and global supply chains continue to improve the efficiencies of U.S. manufacturers. Evidence of such success is visible in the growing number of investments made across the country. Such expenditures make it critical to understand how policy changes can immediately impact the work of U.S. manufacturers in the short- and long-term. In 2017, trade with free-trade partners represented more than 90 percent of U.S. imports by value and close to 70 percent of exports, according to the U.S. Department of Commerce.

Understanding the interdependence of trade policy logistics helps to understand the potential for disruptions in manufacturing at home including where and how manufacturers procure goods. Depending on the complexities, this could increase production and distribution costs. It’s critical for manufacturers to have alternative plans for sources and guardrails in place to minimize disruptions in the production cycle knowing what’s there today will not necessarily be there tomorrow or even next month.

Collective Power

As overseas manufacturing wages continue to increase, the focus on regional manufacturing throughout the U.S. becomes increasingly valid. Such an advantage becomes more pronounced when considering how U.S. manufacturers continue to make efforts toward innovation, increased research and development, bridging the skills gap and emphasizing abbreviated supply chains. With steady efforts, reinvestment in U.S. manufacturing and its regional players will continue to create jobs where they are needed, driving innovation at home and abroad.

 

For information on a deburring machine or a free evaluation, contact CDMC today or call us at (216) 472-0200 to speak directly with  our experts!

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The Manufacturing Industry Has Long Been a Part of Ohio’s DNA

ohio manufacturing

Manufacturing in Ohio has roots that run deep and long as one of the oldest sectors in the state which employs over 688K people and has an output of over $100 billion as of 2015.

This sector was responsible for more than $47 billion in exported goods and a 93.8% share in total goods exported. In 2015, Ohio traded $29.35 billion in exports with Free Trade Agreement Partners with trade exports of $29.15 billion through the Trans Pacific Partnership. In 2013 small business contributed to a 89.4% share of total exporters. The top five markets account for 66.80% of manufactured goods exported. The top five are Canada (41%), Mexico (13.3%), China (5.1%), France (3.9%), and the United Kingdom (3.5%).

Ohio is regarded as a very attractive state for aerospace manufacturing. The aerospace industry employees more than 110,000 people. The aerospace firms based in Ohio generate annual revenue of $44 billion. The top three employers in this sector include GE Aviation (General Electric unit), UTC Aerospace Landing Systems (United Technologies Corp) & Honeywell.

There are also many small independent manufacturers like CDMC that work to support the aerospace industry in one way or the other through their services or products and/or parts manufactured. New investments on the horizon will likely only improve our standing in the aerospace manufacturing industry.

Ohio also has a strong chemical and polymer industry. Many of the world’s fortune 1000 companies have their manufacturing plants here, including Goodyear Tire and Rubber Company, Parker Hannifin, PolyOne Corporation, and Schulman. The chemical and polymer industry employees 46,000 people with an average salary of $64,600 a year, which is 24% higher than some other manufacturing jobs.

The future of manufacturing in Ohio is looking bright with major investments lighting the pathway and as Ohio residents we can definitively say, “Ohio is one of the best states for manufacturing in the U.S.”.

For information on a deburring machine to fit your manufacturing needs or a free evaluation, contact CDMC today via contact form or call us at (216) 472-0200 to speak directly with one of our experts!

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Recent Investments in Ohio Manufacturing Look Promising

ohio manufacturing

Ohio is home to thousands of manufacturers and industrial workers. The Great Recession of 2008-2009 hit hardest here in the great Buckeye state, and we felt it in the homes and families of thousands. 1 in every 8 professional persons in Ohio work’s in manufacturing, and as of now, 111,000 manufacturing workers are without employment. Last year’s elections reflected this need for jobs when Donald Trump won the Ohio electorate by a majority vote in the state. Regardless of the politics, what Ohio needs is an economic boost.

Recently, several manufacturing industry giants have invested in creating new facilities and plants in Ohio (and its northern neighbor Michigan). These investments could pave the way towards creating more jobs for Ohioans by increasing the small growth of manufacturing jobs in that region since 2011.

At the beginning of this year Fiat, along with other auto-industry giants, were looking towards expansion in the Ohio region this year. Fiat made the announcement in January of 2017 giving hope for the manufacturing workforce in Ohio. This move could provide 2,000 jobs in the region by the end of the decade. Fiat decided to move its plans of expansion to Ohio after other companies decided to do so when Present Trump vowed to implement a “border tax” on businesses that outsource their production.

Honda has also followed suit and is looking to build a new hybrid model in Ohio as well, prompting an increase in production rates and a need for new workers. Honda’s investment in Ohio has an already established history with facilities in Columbus and Dayton. These production plants provide jobs to more than 10,000 people and are a testament to Honda’s support in the region.

And as of last year, Whirlpool also made an $80,000,000 investment into their facilities in Findlay and Greenville, Ohio. The expansion will provide more space for the two plants that could provide new jobs, assembly capacity, and material space. The facility will double in size and could provide 1,200 jobs for people of that region.

Ohio has suffered immensely since 2008 with the economic recession and the outsourcing of the manufacturing industry to other neighboring countries. These investments may provide a little bit of hope for the local population of that region and could stimulate the Ohio economy as well.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

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