Advanced Manufacturing is a Key Economic Driver for the Region
Sector contributes $21.8 billion annually to Northeast Ohio GRP
Advanced manufacturing is a significant driver of the Northeast Ohio economy and has been a key factor in the region鈥檚 recovery from the early 2000鈥檚 and 2008 recessions. However, growth in employment in the sector has fallen behind increases in Gross Regional Product, and efforts to address this challenge will require an increase in the area鈥檚 skilled workforce.
A new report published by 老澳门六合彩官方开奖鈥檚 Center for Economic Development found that advanced manufacturing, which consists of 35 industries ranging from automobile manufacturing to natural resource extraction to computer system design, contributes nearly $21.8 billion annually to Northeast Ohio鈥檚 GRP. This is more than half of overall manufacturing GRP for the region, and represents an 8 percent growth rate since 2013, which is five percentage points higher than the national average.
Unfortunately, advanced manufacturing also saw a 3.3 percent decrease in employment during the same time frame, due to the restructuring of numerous industries and the growth in automation and information technology. This is compared to a 2 percent growth rate in advanced manufacturing employment nationally.
鈥淎dvanced manufacturing has played a significant role in Northeast Ohio鈥檚 recovery from economic recession and driven national and international investment in the region,鈥 says Dr. Iryna Demko, a research associate with the Center for Economic Development , which is housed in 老澳门六合彩官方开奖鈥檚 Maxine Goodman Levin College of Urban Affairs. 鈥淗owever, employment did not keep pace with GRP growth and remains a challenge that policymakers and economic development agencies need to target.鈥
Demko argues a focus should be placed on enhancing the skilled workforce through both robust STEM education initiatives and attraction campaigns designed to draw high skilled workers to the region. This will further growth in various industries, while providing stable, high-paying jobs that will help address employment stagnation.
鈥淎dvanced manufacturing in Northeast Ohio is clearly headed in the right direction, but emphasis needs to be placed on ensuring we have the skilled workers and resources needed to sustain this growth moving forward,鈥 Demko adds.
The research was funded in part by the George Gund Foundation and the U.S. Economic Development Administration and is part of a series of reports produced by the Center for Economic Development on current trends in the regional economy.