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
7/30/2019 OSU Symposium
2/27
Ohio Department of DevelopmentEconomic Development Division
Knowledge is the only
instrument of productionthat is not subject todiminishing returns.
-JM Clark
7/30/2019 OSU Symposium
3/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
4/27
Ohio Department of DevelopmentEconomic Development Division
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)
7/30/2019 OSU Symposium
5/27
Ohio Department of DevelopmentEconomic Development Division
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)
7/30/2019 OSU Symposium
6/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
7/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
8/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
9/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
10/27
Ohio Department of DevelopmentEconomic Development Division
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.
7/30/2019 OSU Symposium
11/27
Ohio Department of DevelopmentEconomic Development Division
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).
7/30/2019 OSU Symposium
12/27
Ohio Department of DevelopmentEconomic Development Division
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.
7/30/2019 OSU Symposium
13/27
Ohio Department of DevelopmentEconomic Development Division
Ohios ResponseMarketing
Tax ReformThird Frontier
Workforce
7/30/2019 OSU Symposium
14/27
Ohio Department of DevelopmentEconomic Development Division
MarketingFocus on sectorsplay to Ohios
strengths
Develop sector expertiseProvide qualified leads and tools to
grow business
Sellohio.org
7/30/2019 OSU Symposium
15/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
16/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
17/27
Ohio Department of DevelopmentEconomic Development Division
Tax ReformFocus on outliers
Personal property taxPersonal income tax
Corporate franchise tax
7/30/2019 OSU Symposium
18/27
Ohio Department of DevelopmentEconomic Development Division
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.
7/30/2019 OSU Symposium
19/27
Ohio Department of DevelopmentEconomic Development Division
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.
7/30/2019 OSU Symposium
20/27
Ohio Department of DevelopmentEconomic Development Division
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.
7/30/2019 OSU Symposium
21/27
Ohio Department of DevelopmentEconomic Development Division
It is not the employer who pays
wages he only handles themoney. It is the product that
pays wages.
-Henry Ford
7/30/2019 OSU Symposium
22/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
23/27
Ohio Department of DevelopmentEconomic Development Division
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
7/30/2019 OSU Symposium
24/27
Ohio Department of DevelopmentEconomic Development Division
WorkforceGoalsDemand-driven workforce system
1-Stops integrationBusiness Plans
Initiatives
Healthcare worker shortageManufacturing Workforce Council
7/30/2019 OSU Symposium
25/27
Ohio Department of DevelopmentEconomic Development Division
The winds and waves are
always on the side of theablest navigators.- Edward Gibbon
7/30/2019 OSU Symposium
26/27
Ohio Department of DevelopmentEconomic Development Division
For more information
Jean Carter RyanDeputy DirectorOhio Department of DevelopmentEconomic Development Division
77 South High StreetColumbus, OH 43215
(614) 466-2317
1 (800) 848-1300
Fax: (614) 644-1789
www.odod.state.oh.us
7/30/2019 OSU Symposium
27/27
Ohio Department of DevelopmentEconomic Development Division
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
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