PLUS REVIEW Q Quarterly Economic Indicators 18 Counties of Northeast Ohio

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PLUS REVIEW Q2 Quarterly Economic Indicators 18 Counties of Northeast Ohio Unemployment in the Cleveland Plus region continues to trend lower than the national average.

1 PLUS REVIEW Q2 Quarterly Economic Indicators 18 Counties of Northeast Ohio Unemployment in the Cleveland Plus region continues to trend lower than the national average. Manufacturing, which represents 14% of total employment in Northeast Ohio, plays a critical role in the region s economic recovery. Manufacturing employment has risen 5%, or 1, jobs, since Q2. This report explores one of the manufacturing sectors that is contributing to this employment growth and helping to advance Northeast Ohio s economy: Instruments, Controls and Electronics (ICE).

Development Activity SYNAPSE BIOMEDICAL GROWS IN OBERLIN Synapse Biomedical Inc., maker of the NeuRx Diaphragm Pacing System (DPS), is adding 6 new jobs.

2 Development Activity SYNAPSE BIOMEDICAL GROWS IN OBERLIN Synapse Biomedical Inc., maker of the NeuRx Diaphragm Pacing System (DPS), is adding 6 new jobs. The company gained approval last fall from the Food and Drug Administration to use the device in the treatment of Lou Gehrig s disease and is expanding to boost manufacture of the devices and raise market awareness among hospitals and healthcare providers. NEWELL RUBBERMAID TO INVEST $5 MILLION IN AKRON AREA Newell Rubbermaid plans to invest $25 million to expand manufacturing capacity at its injection molding plant in the village of Mogadore in Summit County. The million-square-foot facility employs more than 7, with an additional 14 jobs expected. Newell Rubbermaid also plans to construct an 8,-square-foot distribution center in the Tallmadge/Brimfield Township Joint Economic Development District in Portage County. This $25 million project will create 79 new jobs, directly support the manufacturing facility in Mogadore and serve as a logistics hub for the company. GM LORDSTOWN RANKS AMONG TOP 1 US AUTO PRODUCERS Automobile Magazine has ranked General Motors Lordstown plant the ninth-highest-producing vehicle plant in the United States. The plant, which solely manufactures the Chevrolet Cruze, built 279,674 cars in. Since opening its doors in 1966, the plant has manufactured 14.5 million vehicles. ROLLS-ROYCE AND LG ANNOUNCE MAJOR INVESTMENT IN NORTH CANTON Korean industrial and electronic conglomerate LG has invested $45 million to acquire a 51% share of North Canton-based Rolls-Royce Fuel Cell Systems (US) Inc., renaming the company LG Fuel Cell Systems. The company will continue the research and development, testing and commercialization of solid oxide fuel cell technology for industrial, commercial and utility power generation applications. It also will continue to participate in the US Department of Energy s SECA (Solid State Energy Conversion Alliance) Program. The North Canton facility, located on the Stark State College campus, is now the global headquarters of LG Fuel Cell Systems. EAST LIVERPOOL COMPANY MAKES STARBUCKS MUGS Starbucks Indivisible campaign, begun last year to focus on the role of US corporations in US job creation, now sells mugs nationwide produced by East Liverpool s American Mug and Stein Company. Every mug purchase triggers a donation to the Create Jobs for USA fund and gives a boost to the once-thriving pottery industry of East Liverpool. CLEVELAND MEDICAL MART & CONVENTION CENTER OPENING EARLY Cuyahoga County s new convention center will be open in time to welcome the 213 National Senior Games, which come to Cleveland July 21 - August 1, 213. The event is expected to attract 35, visitors to Cleveland to participate in or watch competitions, which will include cycling, swimming, tennis, track, badminton, horseshoes, shuffleboard and table tennis. Completion of the $465 million complex is two months ahead of schedule, with an expected opening date of July 1 for the convention center and August 31 for the medical mart.

3 ADVANCED MANUFACTURING FUELS GROWTH IN THE CLEVELAND PLUS REGION Northeast Ohio has a rich history of leadership in traditional manufacturing. Over the years, we ve built on this tradition to become a center of advanced manufacturing as well. The $2.9 billion Instruments, Controls and Electronics (ICE) sector, which has grown more than 1% since 2, is an example of how our region is diversifying and growing its manufacturing base. Change in ICE Industry Gross Regional Product (GRP): 2- A DECADE OF GROWTH From 2 to, ICE grew 1% overall in Northeast Ohio, with significant growth in areas such as computer and peripheral equipment, communications equipment and navigation, measuring and control manufacturing. Audio Video and Optical Computer and Peripheral Electric Lighting Communications Household Appliances Semiconductor and Other Components Other Electrical Electrical Navigation, Measuring, Control $ $2 $4 $6 $8 $1 IN MILLIONS Parker has made its home in Northeastern Ohio for the last century. As a global leader in the motion and control industry, Parker could put its manufacturing operations anywhere. Parker remains loyal to Northeastern Ohio because of the experienced and dedicated workforce, leading educational institutions, collaborative business environment, supportive state and local governments, cultural amenities and quality of life. Parker is proud to be part of Northeastern Ohio s successful past and a catalyst for its bright future. Christopher M. Farage, Ph.D. Vice President, Communications & External Affairs Parker Hannifin Corporation 2 Index of change in Gross Product ICE vs. All MFG. VS. Total GRP (=199 starting point) Projected Increase IN ICE GRP -219 (= starting point) +8% +7% +6% +5% +4% Ice Industries +3% +25% +2% +15% +3% +2% TOTAL NEO GRP +5% -2% ALL MANUFACTURING -5% -3% ICE GRP Total NEO GRP ICE Industries All Mfg GRP Index Total NEO GRP Index ICE OUTPACES MANUFACTURING AND TOTAL GRP Since 199, ICE industries have grown 63%, more than double total GRP (31%) and considerably more than total manufacturing growth (4%). Source: Economy.com ICE PROJECTION: 25% GROWTH BY 219 According to Moody s Economy.com, ICE is projected to grow nearly 25% by 219. This compares with Northeast Ohio s overall growth, projected to grow by 18%.

4 Northeast Ohio Total employment (Not Seasonally Adjusted) Unemployment Rates Through JUNE % % Total employment in millions % 1% 9% 8% 7% OHIO US 1.9 6% NEO % 1.8 4% Q1 7 Q2 7 Q3 7 Q1 Q2 Q3 Q4 NEO OHIO US EMPLOYMENT GROWTH CONTINUES Total NEO employment in Q2 reached 2.5 million workers, up nearly 9, over Q2. This increase represents eight consecutive quarters of year-over-year growth in the region. NEO UNEMPLOYMENT DECLINES Both Northeast Ohio and the state of Ohio unemployment dropped by 1.1% in Q2, averaging 7.2% and outpacing the US rate of 8.%. Year-over-year, NEO unemployment declined by 1.3%, compared with a US decline of.9%. Recession employment Comparison Change in Employment by Sector = Average Government +5% 4% SERVICES Manufacturing -2% 1% -3% -5% -4% CONSTRUCTION Q3 81 Q4 81 Q1 82 Q2 82 Q3 82 Q4 82 Q1 83 Q2 83 Q3 83 Q4 83 Q1 84 Q2 84 Q3 84 Q4 84 Q1 85 Q2 85 Q3 85 Q4 85 Q1 86-5% Q1 7 Q2 7 Q3 7 US 81 NEO 81 US 7 NEO 7 Manufacturing Services Construction Government CLEVELAND PLUS CONTINUES TO TRACK CLOSE TO US Through 19 quarters of the recession, the employment index for Cleveland Plus is trending slightly lower (1%) than the US. The gap was wider through 19 quarters of the 1981 recession, when Northeast Ohio was 4% lower than the US index. MANUFACTURING EMPLOYMENT OUTPACES For the second consecutive quarter, manufacturing increased 5% year-over-year, adding 1, jobs. Construction was up 2.7%, adding about 1, jobs, while the services sector remained unchanged, averaging 1.2 million workers. Government employment decreased by 5%, averaging 227,7, or 12, fewer workers than in Q2. Source: Bureau of Labor Statistics (BLS)

5 Average Monthly Unemployment Claims NEO REAL Gross regional Product (GRP) In Billions $2 Continued Claims In Thousands Initial Claims In Thousands $19 $18 $17 $16 $15 4.% 3.4% 6.2%.4% 2.% (-1.4 %).1% 1.8% 1.1% 1.3% (-2.4%) 1.2% (-2.2%) 2.2% (-6.9%) 2.% 1.6% 3.1% 2 2 $14 $13 Q1 7 Q2 7 Q NEO REAL GRP In Billions Initial Claims Continuing Claims Real GRP Average Annual Growth = 1% INITIAL AND CONTINUED CLAIMS DECLINE In Q2, both initial and continued claims saw year-over-year declines. Initial claims dropped by more than 6 from Q2 to Q2, to an average of 3,9 the lowest number of average initial claims in a second quarter since. Similarly, continued claims declined by more than 8, year-over-year, averaging nearly 34,. NEO GRP CONTINUES UPWARD TREND GRP for in the 18-county Northeast Ohio region is projected to exceed that of, with an estimated increase of 2% (compared with 1.6% in ) and a total GRP of more than $186 billion. Since 1994, the Cleveland Plus economy has grown by more than $28 billion, or more than 18%. Source: Economy.com Northeast Ohio Occupied Industrial Space Northeast Ohio class a, b and C Office SPACE 54 1% % % % % 7% 6% Occupied Space In Millions % 1.5% 1.% 42 5% % 4 4% 13 9.% Q 2 12 Occupied Space Occupied Space INDUSTRIAL SPACE VACANCY LOWEST SINCE The vacancy rate for industrial space declined slightly in Q2, to 8.4% the lowest industrial vacancy rate since Q4. Occupied space increased to 522 million square feet. Source: CoStar OFFICE SPACE AVAILABILITY INCREASES Class A, B and C office vacancy rose slightly in Q2, to 11.5% up just over a half percent since Q1. Occupied space is down from 148 to 147 million square feet. Source: CoStar

6 Our partners include Data SOurces Team Northeast Ohio uses a number of data sources for the Regional Economic Review. One of the primary sources is Moody s Economy.com (economy.com) data for Northeast Ohio. Moody s Economy.com county-level output, employment and payroll historical data are estimated from several publicly available sources and are summarized into the Team NEO regional footprint. It is important to understand data provided by Economy.com are estimates of economic activity. Team NEO also uses data from federal and state sources as part of the report. We rely heavily on data from the U.S. Bureau of Labor Statistics (bls.gov) and Ohio s Labor Market Information (lmi.state.oh.us) for information on wages, unemployment and both general and industry-specific employment. Industrial and office real estate data for this edition were derived from the CoStar Group. Due to market limits within the CoStar database, historic trend data for the Team NEO region are reflective of 14 of the 18 counties forming the regional footprint. These counties include: Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Richland, Stark, Summit and Trumbull. Recession employment data for this edition reflect a 16-county footprint. Employment sector data reflect MSA data (Cleveland- Akron-Canton-Youngstown). ABout TEam NEO and The Cleveland Plus 18-County Region Team NEO advances Northeast Ohio s economy by serving as the 18-county region s private-sector economic development hub. It builds collaboration among the region s economic development organizations, attracts new businesses from around the world and connects the region to the state s JobsOhio program. Since, the organization has attracted 57 new company operations, more than 5,4 new jobs and more than $194 million in annual payroll to Northeast Ohio, leading to a total annual regional payroll benefit of $396+ million. Check out clevelandplusmakesthings.com our new microsite Network Regional Partner 737 Bolivar Road, Suite 2, Cleveland, Ohio NEO

PLUS REVIEW Q Quarterly Economic Indicators 18 Counties of Northeast Ohio

PLUS REVIEW Q Quarterly Economic Indicators 18 Counties of Northeast Ohio For Q2, most of the economic indicators tracked in this report total employment, unemployment rate, change in employment by sector, gross regional product, industrial and office vacancy, and Ohio Utica