Developing strategies for marketing OhioWritten by Gov. Ted Strickland | | firstname.lastname@example.org
The task is to draw on the state’s history of innovation to develop creative, cohesive and useful business strategies for promoting and retaining the state’s mature core industries, while attracting and nurturing new industries and investment.
The primary objective has been to identify the industries that are at the heart of Ohio’s current competitive advantage and to determine growth opportunities and emerging technologies that hold potential for significant economic benefit to the state and its regions.
- Ohio is a portfolio economy. No one industry dominates the state.
- Ohio’s economy is made up of several distinct regional economies.
- The statistical model identified 17 driver industries for Ohio. Only one – motor vehicle parts manufacturing – was a driver in all six regions.
- Improving Ohio’s economy requires managing not just one portfolio but three: regions, industries and technologies.
Identified strengths include the state’s central location, its transportation infrastructure and its high concentration of workers with industry-specific skills. State weaknesses revolve around population, which has been stagnant and particularly lacking in advanced-degree holders, and perception, particularly the view that Ohio has high business costs because of unions, utilities and taxes. The state’s progress into a 21st century economy also continues to be constricted by “Rust Belt” connotations from its past.
The study has identified seven driver industries in which focused development efforts have the best present opportunities for protecting and augmenting Ohio’s economic base and facilitating growth in the state.
- Motor vehicle and motor vehicle parts manufacturing
- Chemicals and polymers
- Clinical medicine and related industries
- Logistics, distribution and warehousing
- Corporate and divisional headquarters, back-office and administrative functions
- Food processing and manufacturing and agriculture value-added products.
- Environmental technology
- Northeast: The Northeast region has a diversified portfolio of driver industries in many different sectors. Noted for its tradition of steel and other heavy manufacturing, which still has a strong presence today, the region is also strong in high-growth service industries. Insurance, banking and other professional services top the list of 32 identified drivers.
The next biggest category of industries in the Northeast region is metals and metalworking.
- Northwest: The Northwest region has a highly diversified portfolio of 30 driver industries, with a primary concentration in manufacturing, especially automotive-related manufacturing. A large chemicals sector is driven by plastics and rubber products manufacturing, which supplies the automotive industry. Food manufacturing is also substantial. Notable serve industries in this region include hospitals and a substantial number of corporate and regional headquarters offices.
- West Central: The West Central region is dominated by the presence of two manufacturing industries: automotive and aerospace. Banking is also large for this region. Additional drivers include manufacturing industries, such as machinery, chemicals, building products, metals and food. Energy production and environmental technology are also important economic drivers in the West Central region.
- Central: This is an economy that is divided fairly equally between manufacturing and service activities. Although the region is associated with such service industries as insurance, retail and distribution, there is also a strong presence of manufacturing industries, including automotive, chemicals and food. Among the 23 identified drivers, the automotive industry and professional services are the two largest and are of equal size in this region. The Central region is home to many headquarters, many of them “homegrown” companies, such as Wendy’s and Limited Brands, and a significant distribution and warehousing sector capitalizes on the region’s central location and its access to transportation.
- Southeast: The Southeast region is not dominated by any one driver industry. Rather, it is a portfolio of 14 moderately sized driver industries, many of which are tied to the region’s rich natural resources. It is no surprise that industries, such as coal mining, iron and steel mines, wood products and food manufacturing make the list of economic drivers for this region.
- Southwest: The economic analysis yielded 20 drivers for the Southwest region. The region is dominated by two services industries: corporate and division headquarters and banking, both of which have experienced strong output and employment growth. Hospitals are another notable service industry in the region. There is also a strong presence of manufacturing, especially in the aerospace and automotive sectors, which have been experiencing healthy growth.
Contributed by the Office of Strategic Research, Ohio Department of Development.