A Profile of Advanced Manufacturing in Northeast Ohio

Advanced manufacturing industries represent technology-intensive manufacturing of a fundamental importance to the economic strength and national security of the United States. In 2017, advanced manufacturing industries in Northeast Ohio contributed over half of the manufacturing output and employed 42% of the region’s manufacturing workforce. On average, advanced manufacturing industries paid 26% higher wages than other manufacturing industries. Manufacturing companies striving to achieve new levels of output and keep pace with global competition should increasingly turn to one of their most important assets—people—to drive further growth

An Empirical Review of the Paycheck Protection Program - Congressional Testimony

Dr. Iryna Demko, Research Associate at the Center for Economic Development, testified at the hearing of the U.S. House Committee on Small Business on the Paycheck Protection Program. The Paycheck Protection Program (PPP) has been one of the largest economic stimulus programs in U.S. history. In 2020 and 2021, the SBA disbursed over $800 billion in Paycheck Protection Program (PPP) loans to help small businesses keep their employees on payroll during the Covid-19 pandemic

Trends of U.S. Agricultural Cooperatives (1913-2016)

This report identifies and describes national trends in the progression of agricultural cooperatives since 1913 with an emphasis on 2000s. As the number of agricultural cooperatives in the U.S. has declined, their size, represented by business volume and the number of members, increased. Based on 1976-2016 data, cooperatives’ total assets and equity have been increasing and were projected to grow in 2017. On average, 2% of cooperatives in the U.S. merged or were acquired . Average incidence rates of mergers and acquisitions during 2000-2012 (33 incidences) were lower than during 1980-1999 (83 incidences). Over time, the number of grain cooperatives increased; and the number of dairy and fruit and vegetables cooperatives declined

Northeast Ohio Front Runners: Groups of Regional Industry Drivers (GRIDs) Research Brief

Wealth-creating industries are the backbone of the regional economy; they contribute to economic growth, personal wealth, and regional competitive advantage. For an economy to stay vibrant and competitive, it is essential to identify these industries so that strategic policies can foster and support regional growth. Three regional groups of drivers were identified in Northeast Ohio (NEO): Professional Services, Growing Legacy Manufacturing, and Oil and Gas. These groups, known as Groups of Regional Driver Industries (GRIDs) were identified using statistical analyses and data-driven insights for 2013 to 2017. GRIDs had strong regional specialization, growing output, rising productivity, and local competitive advantage. Overall, the three identified GRIDs contributed nearly 40% ($86.5 billion) to NEO’s total output and employed 20% (363,660 people) of NEO\u27s workforce in 2017

From Economic Slowdown to Recession

The most recent recession, known as the “Great Recession,” began in December 2007 and ended in June 2009. The recession affected the entire U.S., but its impacts were not uniform. Unfortunately, Ohio was a primary example of the recession’s iniquities as the recession lasted five months longer here compared to the rest of the nation. Now, with the COVID-19 pandemic, we face further uncertainty and another recession with economic activity contracting “sharply and abruptly” across the entire U.S. This research brief examines the state of the economy in the U.S. and Northeast Ohio pre-pandemic (2019) and provides an analysis of the immediate impacts of social distancing measures and mandated closures in 2020

NEO GRIDs Performance in 2020

The Center for Economic Development identified 33 driver industries in the 2019 report titled “Northeast Ohio Front Runners: Groups of Regional Industry Drivers (GRIDs).” GRIDs are wealth-creating industries that pay high wages, have a robust regional specialization, and contribute to the economy through regional supply chains. However, in this year alone, the U.S. and Ohio economies have seen a trade war with China, retaliatory tariffs on U.S. goods, the collapse of oil prices, and mandatory business closings due to the COVID-19 pandemic. These events contributed to the already ongoing cyclical repression, and impacted the wealth creation of Northeast Ohio’s (NEO)3 GRIDs. This research brief represents an update on the consequences of COVID-19 on GRIDs, specifically the Professional Services, Growing Legacy Manufacturing, and Oil and Gas GRIDs, to investigate what factors allowed for some industries to grow while others experienced a considerable downturn

From Economic Slowdown to Recession

The most recent recession, known as the “Great Recession,” began in December 2007 and ended in June 2009. The recession affected the entire U.S., but its impacts were not uniform. Unfortunately, Ohio was a primary example of the recession’s iniquities as the recession lasted five months longer here compared to the rest of the nation. Now, with the COVID-19 pandemic, we face further uncertainty and another recession with economic activity contracting “sharply and abruptly” across the entire U.S. This research brief examines the state of the economy in the U.S. and Northeast Ohio pre-pandemic (2019) and provides an analysis of the immediate impacts of social distancing measures and mandated closures in 2020

Measuring the Economic Impact of Employee Stock Ownership Plans (ESOPs) on Ohio

This study focuses on Ohio companies with an Employee Stock Ownership Plans (ESOPs) - the most common form of employee ownership in the U.S. Literature on the positive impacts of employee ownership at the individual and company level has grown in recent decades finding that individual employee-owners have longer tenure, more household wealth, higher wages, larger retirement accounts, and opportunities to participate in company decisions. At the company level research finds that employee-owned companies perform better than conventional companies on several performance metrics including overall survival rates, productivity, employment growth, and sales. Findings from both individual and company level studies have led many to assume that employee-owned companies have a positive impact on the surrounding communities in which they operate. However, there has been little research that investigates what the direct, indirect, induced, and total economic impact of employee-owned companies is. Using the IMPLAN regional model, we generated first of their kind estimates of the economic and fiscal impact of Ohio ESOP companies. We find that 307 ESOP companies in Ohio supported over 471,000 full-time and part time jobs, $41 billion in labor income,$103 billion in value added, and $198 billion in output and generated$15.7 billion in aggregate taxes ($2.8 billion in local,$3.2 billion in state, $9.7 billion in federal). These findings, along with qualitative research on the impact of Covid-19 pandemic provides further evidence that employee-owned companies play a beneficial role in Ohio’s economy

Opportunities for Youngstown in the Supply Chains of Northeast Ohio and Pittsburgh Economies

The Center for Economic Development at Cleveland State University conducted this analysis to determine opportunities for the Youngstown economy in the supply chains of Northeast Ohio and Pittsburgh economies. Youngstown can account for a greater share of input purchases from the NEO and Pittsburgh regions by focusing on Nonferrous Metal (Except Aluminum) Production and Processing, Alumina and Aluminum Production and Processing, and Plastic Product Manufacturing. Youngstown can develop its economic ties with Pittsburgh’s economy in its aspirational sector – Financial Services

Navigating Government Statistics of Small Businesses for Pandemic Assistance

This brief examines various sources of government statistics to assist in understanding the scope of small businesses, the legal structure of their operations, and their distribution by industry in the Northeast Ohio (NEO) region. Under the current restrictions for business operations due to the COVID-19 pandemic, many entrepreneurs and small businesses need assistance to maintain cash flow and to retain both their employees and customers. Governments at all levels have developed business assistance programs to help small businesses; more recently, some of these programs have revised their rules. To illustrate who might be affected by the changing rules, several sources of government statistics can be used to define how many companies operate as a small business in the region. Entrepreneurs and small businesses play a crucial role in the regional economy, and for a successful recovery, it is imperative that small businesses and entrepreneurs stay afloat during this pivotal period