Ohio’s economic resilience stems from a diversified industrial base, with manufacturing playing a central role. While sectors like healthcare, retail, finance, education, and agriculture contribute significantly, manufacturing stands out as the largest contributor among the state’s 20 key economic segments. In 2022, it accounted for 17.5% of private-sector GDP and 15.7% of total economic output, according to the Ohio Manufacturers’ Association. With approximately 690,000 employees, Ohio ranks third nationally in manufacturing employment, trailing only California and Texas—both of which have larger populations. n nThe sector’s economic impact extends beyond employment. It generates $48 billion in annual wages—the highest of any industry in the state—and exports $56.8 billion in goods to 212 countries and territories. Workers in manufacturing earn an average of $92,573 annually, significantly above the statewide non-farm average of $66,809, as reported by the National Association of Manufacturers. n nManufacturing not only supports high-paying jobs but also drives innovation and productivity. The industry has a high economic multiplier effect, meaning each job or dollar invested generates additional activity across related sectors. Investments in advanced technologies and smart factories—where real-time data analytics and precision engineering enhance efficiency and safety—are shaping the future of production in the state. n nRecent major projects highlight continued confidence in Ohio’s manufacturing potential. LG Energy Solution and Honda Motor Co. have formed a joint venture to produce lithium-ion batteries in Fayette County for electric vehicles sold in North America. Additionally, Mars has opened the world’s largest dry pet food facility for its Royal Canin brand in Lewisburg. USG Corporation, which has operated in Ohio since 1902, maintains two facilities in the state—one in the Sandusky area producing building materials, and another near Cleveland manufacturing ceiling systems—employing over 450 people. n nSustaining this momentum requires a skilled workforce. The Manufacturing Institute estimates that 3.8 million high-tech, high-wage manufacturing jobs will need to be filled over the next decade. Preparing for this demand involves strengthening educational pathways, from community college technical programs to university degrees and specialized training at institutions like the Cleveland Clinic and Wright-Patterson Air Force Base. n nEqually important is employer responsibility. Companies must create environments where employees can grow, offering continuous training and career advancement opportunities. Strategic investments in people, infrastructure, and innovation are essential for long-term competitiveness. n nBy leveraging its industrial strengths and developing human capital, Ohio is well-positioned to maintain leadership in advanced manufacturing and sustain broad economic vitality. n
— news from Crain’s Cleveland Business
— News Original —
Opinion: Ohio’s economic strength comes from diverse contributions, led by manufacturing
Ohio’s economy is impacted by large-scale trends in areas including business expansion planning, supply chain capabilities, labor supply and global trade, as well as business-to-business and consumer behaviors. n nRegardless, there are several fundamentals upon which our Ohio economy will rely in the coming years. n nBalanced contributions from economic sectors, led by manufacturing n nOhio possesses a diverse economy with important contributions from many areas, including health care, retail services, banking, insurance, government, education, automotive, aerospace and defense, construction and agriculture. n nManufacturing remains a leading contributor to the Ohio economy, as the largest of 20 key economic sectors. Overall, manufacturing accounted for 17.5% of the state’s private sector GDP and 15.7% of total output in 2022, according to a 2024 report from the Ohio Manufacturers’ Association. Ohio ranked third in the nation in total manufacturing employees, at about 690,000, trailing only California and Texas, both of which have considerably larger populations than Ohio. n nIn addition, economic activity from manufacturing in Ohio generates an annual payroll of $48 billion, the highest total annual wages of any Ohio industry sector and $56.8 billion in exported products to 212 countries and territories. Salaries in the manufacturing sector follow suit. According to the National Association of Manufacturers, the average annual earnings for manufacturing employees in Ohio is $92,573 vs. a $66,809 non-farm average. n nClearly, Ohio’s traditional and future role in manufacturing is an essential contributor to advancing our domestic knowledge base, supplying a large range of needed products and materials and maintaining strong state and national economies. In doing so, our manufacturing sector will make significant new investment in advanced technologies and new facilities. This includes the smart factories of tomorrow where real-time data analytics and precision engineering increase both efficiency and safety. Practically speaking, manufacturing has one of the highest multiplier effects of any economic sector in terms of employment and economic output. n nRecent major manufacturing investments in Ohio include the LG Energy Solution and Honda Motor Co. joint venture to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market in Fayette County; and Mars announcing its largest dry pet food factory globally for its Royal Canin brand in Lewisburg, Ohio. We welcome the continued new manufacturing investment in Ohio, where USG has operated since 1902 in the Port Clinton (Sandusky) area, producing Fiberock and joint compounds and surfaces, and in suburban Cleveland (Westlake) since 1986, producing ceiling suspension systems. Across our two Ohio locations we employ over 450 people. n nWorkforce development n nImportantly, economic strength relies on the skills, experience and productivity of our workforce. The Manufacturing Institute this year noted that “manufacturers will seek to fill 3.8 million high-skill, high-tech and high-paying jobs over the next decade.” n nThere are two key aspects in crafting and building this workforce. The first is having a strong educational system, from technical training at community colleges to our colleges, universities and professional schools, to prepare individuals for the knowledge- and skill-based careers of the future. n nOhio is fortunate in having a quality network of major universities, as well as nationally revered smaller schools, the training at major medical centers (the Cleveland Clinic is a prime example) and respected technology centers such as Wright-Patterson AFB. n nThe second aspect is what individual companies do to be companies that people want to work for and where they foster career growth for all of their people. This requires a complex brew of intangible and tangible factors, which includes ongoing training and development and upskilling individuals for the demanding, high-value jobs of tomorrow. n nPutting it all together n nBusinesses prosper when leadership invests wisely in their company’s facilities and other infrastructure. Also critical is when leadership supports the research and product development appropriate to their industry or service sector, and, as just indicated, invests in their people. n nIn the face of ever-present competitive challenges, we must make the best use we can of the skills, experiences, motivations and insights of all people in our society, catalyzed by strong doses of trust, acceptance and empowerment. This will go a long way toward nurturing a favorable business climate for Ohio and helping the state maintain its leadership in advanced manufacturing and overall economic strength. n nChristopher R. Griffin is president and CEO of USG Corp. Greg Bock is plant manager for USG in Gypsum, Ohio.