OSU Symposium

7/30/2019 OSU Symposium

1/27

Ohio Department of DevelopmentEconomic Development Division

State EconomicDevelopment Policies

Jean Carter RyanDeputy Director

Ohio Department of Development

Economic Development Division


2/27


Knowledge is the only

instrument of productionthat is not subject todiminishing returns.

-JM Clark


3/27


Economic Size andPopulationOhios Gross State Product was

$381 billion in 2002Ohio ranks 24th in the world in economic output

Ohio ranks 3rd among the 50 states in mfg. GSP

Ohios Population of 11,435,798

Seventh largest state

Dispersed between 8 large urban centers and

15 micropolitan centers


4/27


Competitive Industry BaseOhio is ranked#1 in growth of exports over past 3 years

2nd in the production of cars and trucks

1st in the number of automotive suppliers

1st in the production of steel products

1st in the plastic and rubber industry by

employment3rd in the number of manufacturing employees

(850,000)


5/27


Ohio Ranked 2003 Governors Cup Winner

Site Selection

2004 Governors Cup 3rd Place Site Selection

4th in photonics mfg. (1,700)

159,000 high tech workers w/payroll of$8.9 billion (2003)


6/27


Technology RankingsOhio is ranked#1 with the most best hospitals 03-04

US News & World Report

500(+) companies with bioscience focusheadquartered or have a major presence in Ohio

#2 in total research funding for materialsengineering

#5 in specialty chemical research#7 in Small Business Innovation Research grants

2 of top 10 nationally recognized polymerprograms University of Akron, Case WesternReserve


7/27


Outstanding WorkforceThe labor force in Ohio exceeds

5,630,000; larger than the totalpopulations of 31 states

Ohio has 177 institutions of higherlearning; every Ohio resident is within 30

minutes of advanced education, whichgraduate 51,000 students per year


8/27


Strategic LocationOhio is within 600 miles of:

60% of the US population50% of the Canadian population

63% of US manufacturing establishments

63% of US retail operations

70% of North American manufacturing80% of corporate headquarters


9/27


Wealth of TransportationResourcesOhio has the 4th largest interstate highway

system in the U.S.Ohio has 6,500 miles of railroad (more than

any other state)

Ohio has 184 public airports

The same amount of freight traffic goesthrough Ohios ports as goes through thePanama Canal


10/27


Ohios ChallengesThe Economy

Over the last 4 years, Ohio lost over

260,000 jobs. 210,000 lost inmanufacturing alone and yet at thesame time major private investment has

exceeded $25 billion in over 3,200projects.


11/27


Ohios ChallengesThe EconomyAs recently as the 1960s our per capita

income was well above the national average

(more than 10%).Now were 5% below the national average.

Last year every Ohioan is earning $1,500 less

than the average American (loss of $30.7billion in income).


12/27


Ohios ChallengesCompetitive Position

Economy.com analyzes Ohios economic performance onan annual basis. Year after year, high taxes comes outas a weakness in their analysis.

The Small Business Survival guide ranks Ohio 40th interms of our business climate, an index that is largely

based on taxes.

Richard Vetter of OU found in a study that low-taxstates grew nearly one-third faster than high tax states.


13/27


Ohios ResponseMarketing

Tax ReformThird Frontier

Workforce


14/27


MarketingFocus on sectorsplay to Ohios

strengths

Develop sector expertiseProvide qualified leads and tools to

grow business

Sellohio.org


15/27


MarketingCriteria for Ohio brandCompelling story to attract new business

from targeted industriesRelevant and aspirational for current Ohio

businesses

Supports regional ED efforts

Ideally excites and motivates Ohioresidents


16/27


Tax ReformReduce the rate, broaden the base

Simple, fair, transparent

Living with tax code of yesterday; asystem that has failed to keep up withrealities of today and has left us behind

other states in achieving economicprosperity of tomorrow


17/27


Tax ReformFocus on outliers

Personal property taxPersonal income tax

Corporate franchise tax


18/27


Tax ReformCut Ohios personal income tax by 21

percent phased-in over 5 years.

Eliminate the corporate franchise tax overa 5-year phase-out period.

Eliminate the tangible personal propertytax on M&E beginning two years from nowand implemented during a 2-year phase-outperiod. Inventory & FF 5-year phase-out.


19/27


Tax Reform Impose a new tax on businesses known as a

commercial activities tax. This tax would beassessed based on revenues that businesses receive

from the sale of goods and services in Ohio. The first$1 million of a business revenue would be exempted.The tax rate would be approximately .25 percent.This new tax is designed to create a large tax baseand impose a small tax rate on it. It is estimated

that 70 percent of small businesses will not pay thistax.


20/27


Tax ReformExclude banking and insurance

operations from the scope of this

reform.Double thesin taxeson tobacco and

alcohol immediately.

Retain a percent of the sales taxscheduled to end on June 30, 2005.


21/27


It is not the employer who pays

wages he only handles themoney. It is the product that

pays wages.

-Henry Ford


22/27


Third FrontierR&D = More D less R

Wright Centers

Advanced Data Management Fuel Cell

Regenerative Medicine

Genome Institute - $65 million in federal,industrial & nonprofit funding

Save & improve lives


23/27


Third Frontier Industry driven

Focus on commercializing products

3rd Frontier Action grants Diagnostic Hybrids (130 employees/Athens)

On Inc. 500 fastest growing companies list

Innovation Ohio Fund

Cardinal Commerce develops software authenticationsystems for the credit card industry. Financialtransactions over cell phones creating 127 jobs.

Spin-off companies


24/27


WorkforceGoalsDemand-driven workforce system

1-Stops integrationBusiness Plans

Initiatives

Healthcare worker shortageManufacturing Workforce Council


25/27


The winds and waves are

always on the side of theablest navigators.- Edward Gibbon


26/27


For more information

Jean Carter RyanDeputy DirectorOhio Department of DevelopmentEconomic Development Division

77 South High StreetColumbus, OH 43215

[email protected]

(614) 466-2317

1 (800) 848-1300

Fax: (614) 644-1789

www.odod.state.oh.us


27/27


Websites of Interestwww.sellohio.org

www.jobsforohio.com

www.thirdfrontier.comwww.ohioworkforce.org

www.ohiosites.com

www.business.ohio.gov

www.odod.state.oh.us

Documents

OSU Symposium