Regional Economic Development Report Q2 2013 Collaborative economic development efforts across Northeast Ohio continued to spur growth for the region s economy in the second quarter of 2013. Network Regional Partner This report provides a snapshot of business attraction, expansion and retention activity in Northeast Ohio as reported by JobsOhio, Team NEO and economic development organizations in 18 counties across Northeast Ohio. Ashland Area Council for Economic Development Columbiana County Port Authority Erie County Economic Development Corporation Geauga Growth Partnership, Inc Greater Akron Chamber Greater Cleveland Partnership Growth Partnership for Ashtabula Huron County Development Council Lake County Port Authority Medina County Economic Development Corporation Portage Development Board Richland County Community Development Group Stark Development Board, Inc Team Lorain County Tuscarawas Community Improvement Corporation Youngstown/Warren Regional Chamber Wayne Economic Development Council
Total Regional Economic Impact Q2 2013 April June TOTAL ATTRACTION, EXPANSION AND RETENTION PROJECTS: Q2: 13 YTD: 34 Total Program Impact Q2 Total Jobs: Q2: 1,933 YTD: 5,644 Total Payroll: Q2: $87.3M YTD: $271.3M 1,347 JOBS 586 NEW JOBS New Jobs $25M in Payroll 4,195 JOBS YEAR TO DATE 1,449 JOBS New Jobs $65M in Payroll Total Capital Investment Q2: $245.9M YTD: $447.3M The upward momentum in Northeast Ohio s economy continued through the second quarter of 2013. The region s economic development partners worked in collaboration to attract five new companies and grow eight regional businesses in Q2. Year to date, 34 attraction, expansion and retention projects contributed to economic development across the region, representing 5,644 jobs, $271M in payroll and $447M in capital investment. Retained Jobs * $62M in Payroll *Jobs stabilized by investments in company growth Retained Jobs * $206M in Payroll Business Attraction Wins Q2 COMPANY INDUSTRY COUNTY JOBS CREATED PAYROLL CAPITAL INVESTMENT Daisy Brand LLC Food Sciences & Agriculture Wayne 89 $4,500,000 $116,200,000 GE Oil & Gas, Inc. Energy Stark 35 $2,450,000 $4,500,000 ByteGrid Information Services & Software Cuyahoga 20 $1,000,000 $0 Remedi SeniorCare of Ohio LLC Biohealth Cuyahoga 15 $1,092,000 $5,400,000 Toad Medical Corporation Biohealth Cuyahoga 20 $910,000 $175,000 In the first two quarters of 2013, 11 new businesses were recruited to Northeast Ohio. CASE STUDY Daisy Brand LLC 89 new jobs $4.5 million payroll Food Services and Agriculture Wooster, Ohio Daisy Brand LLC A fourth-generation, family-owned business, Daisy Brand provides dairy products to markets across the nation. When the company began exploring site options for a new production facility to grow its brand in the Midwest and Northeast, Wooster was in the running. The challenge? Helping Daisy see the advantages of the Northeast Ohio location over contenders Michigan and Indiana. The Wayne County Economic Development Council led a team that included the city of Wooster, Team NEO and JobsOhio on a variety of efforts, including orchestrating meetings between Daisy management and local education representatives and workforce providers. Recognizing the analytical nature of Daisy s decision-makers, Team NEO s research team provided detailed market data as well. The economic development team successfully demonstrated Northeast Ohio s superiority in the areas of site quality, market (customer base) and supply chain access as well as workforce quality and availability. An attractive financial incentive and infrastructure funding package rounded out the deal. Daisy has committed to a $125 million investment that will bring 89 new jobs and $4.5 million in payroll to the region.
Project Pipeline and Sources PIPELINE: PROJECTS As of june 30 80 Pipeline: New Projects Q2 Domestic/International Projects As of june 30 70 130 BUSINESS ATTRACTION 45% 156 EXISTING INDUSTRY 55% 60 50 40 30 DOMESTIC 73% INTERNATIONAL 27% 20 10 0 BUSINESS ATTRACTION EXISTING INDUSTRY Based on location of parent company Advanced Manufacturing BioHealth Energy Polymers and Chemicals Food Sciences and Agriculture Automotive Information Services and Software Top Eight Project Clusters Existing Industry Business Attraction The uptick in projects in the second quarter reflects strong activity in the advanced manufacturing and biohealth industries. Businesses outside of Northeast Ohio are attracted to the region by our strong manufacturing capabilities and growing biomedical cluster. The region s major healthcare systems also are attracting companies in the information services (IS) and software industry businesses that can fulfill the growing need for electronic support as healthcare organizations respond to the Affordable Healthcare Act. IS companies are coming for another important reason as well: Northeast Ohio boasts some of the most extensive fiber networks in the nation. Aerospace and Aviation 0 5 10 15 20 25 30 35 40 45 50 Projects Lead Source Company Inquiry Business / Retention Contact Consultant Referral Business Attraction Outreach Other Trade Show 0 10 20 30 40 50 60 70 80 90 100 110
Business Attraction Development Activities YTD Outbound Market Visits In the first two quarters of 2013, Northeast Ohio economic development organizations conducted outreach missions to trade shows and markets in 22 locations in the US and around the world. Notable United States outreach denmark Hannover netherlands belgium china European OUtbound Visits anaheim Minneapolis Inbound Site Visits In the first two quarters of 2013, Northeast Ohio economic development organizations reported hosting more than 44 companies and international delegations that visited the region to learn more about Northeast Ohio and/or conduct site selection reviews. Toronto Chicago Pittsburgh new jersey st. Clairsville Philadelphia lima Columbus Washington DC morgantown louisville new orleans charleston Atlanta Inbound 44 Site Visits new york Q2 OUTBOUND VISIT DETAILS Belgium, the Netherlands and Denmark: Select USA European Roadshow Chicago, IL: Ohio Days Site Selection Consultant Market Visit Chicago, IL: Windpower 2013 Columbus, OH: Oil and Gas Reception for Real Estate Brokers/Developers Hannover Messe, Germany: Industrial trade fair Lima, OH: Canada Ohio event Louisville, KY: Attraction project meeting Minneapolis, MN: Area Development s Consultant Forum Conference Pennsylvania: Attraction project meeting Philadelphia, PA: MD&M East Pittsburgh, PA: Utica Infrastructure Development and Company meetings St. Clairsville, OH: Ohio Valley Oil and Gas Expo Washington DC: Netherlands Chamber of Commerce meeting Inbound Site Visits Marketing and Communications Q2 Team NEO s Quarterly Economic Review: This first quarter 2013 report was released on May 20. The report included a special section on occupations (growth, job openings and projected employment) that included both historical data from the past decade as well as projections through 2022. It was distributed to more than 2,000 site consultants and covered in local media. It also was used with national media outreach. Speaking engagements: Ten presentations were delivered about Team NEO/Cleveland Plus/JobsOhio reaching more than 400 individuals. Year End Regional Economic Development Report: The Northeast Ohio 2012 Year-end Economic Development Report was released in May. The new report illustrates the combined impact of 10 private-sector economic development organizations in 2012 BioEnterprise, Greater Akron Chamber, Greater Cleveland Partnership, JumpStart, MAGNET, NorTech, Stark Development Board, Team Lorain County, Team NEO and Youngstown/Warren Regional Chamber. The report was sent out to more than 1,400 business and community leaders, as well as local, state and government leaders. It also was covered in local media. Belgium event: Taking advantage of the friendly soccer competition between Team U.S.A. and Belgium in May, Team NEO and Thompson Hine hosted a roundtable discussion and reception for local business leaders on the business climate in Belgium featuring the consul general of Belgium (New York office) and two Belgian trade representatives. The following day, Team NEO gave a presentation on Northeast Ohio to the Belgian Trade Representatives who represent both the Flanders and Wallonia regions of Belgium. These trade reps assist Belgian companies with expansion/investment activities in the US (in addition to helping US companies export to Belgium) and are important lead generators for investment projects from Belgium. Business Attraction Campaign: A new fact sheet on the metalworking and production sector was created; existing fact sheets on minority businesses and regional capital investments were updated.
Notable Existing Industry Growth * Q2 COMPANY Project Type INDUSTRY COUNTY JOBS PAYROLL CAPITAL INVESTMENT Realeflow, LLC Information Services and Software Medina 36 $1,727,000 $950,000 Next Generation Films, Inc. Advanced Manufacturing Richland 357 $12,400,000 $15,000,000 Seaforth Mineral & Ore Co., Inc Redevelopment Polymers and Chemicals Columbiana 41 $1,151,280 $1,100,000 Pepperidge Farm, Incorporated Food Sciences and Agriculture Huron 579 $33,651,232 $80,800,000 ECS Tuning, Inc. Advanced Manufacturing Medina 215 $7,034,578 $5,945,000 *Selected from a total of eight companies that are expanding within the region. In the first two quarters of 2013, 23 Northeast Ohio businesses committed to growing in the region. CASE STUDY Pepperidge Farms Company 579 total jobs $33.6 million payroll Food Services and Agriculture Willard, Ohio PEPPERIDGE FARM COMPANY When exploring expansion options to boost its production of Goldfish crackers, Connecticut-based Pepperidge Farm considered its Willard plant, where workers have been making cookies since 1977. Team NEO, the Huron County Development Council and the city of Willard immediately went to work. The team discussed the brand s needs with senior decision-makers at parent Campbell Soup Company and found that securing a tax abatement could be pivotal to the location decision. In addition to working with JobsOhio on financial incentives, Team NEO enlisted the support of the Development Finance Authority of Summit County. The Authority created a financing package featuring tax savings of more than $1 million. The attractive financing put the Willard site over the top for Pepperidge Farm, which was already sold on the logistical benefits of the location, the quality of Northeast Ohio s workforce and the low cost of doing business here. The company has committed to adding 50 jobs and investing $94 million in the build-out.
Significant National Media Coverage Q2 The Regional Marketing Alliance conducts outreach to national media, resulting in high-profile coverage across the region. Here are some recent highlights: Midwest Energy News; 5/9/13; Utica shale gets infrastructure boost with new processing plant Reuters; 5/16/13; Ohio s well data shatters shale oil hopes Inc. Magazine; 6/1/13; Whiskey Rebellion Richmond Times Dispatch; 6/15/2013; Ohio seeks safer shale energy Financial Times; 6/18/13; Steelmakers reap benefits from US shale gas revolution The New York Times; 6/25/13; Akron Shakes Off Some Rust With Goodyear Tire s Help Data sources The data in this report are compiled by Team NEO. It is based on information submitted by JobsOhio, Team NEO and economic development organizations in the 18 counties of Northeast Ohio. About Team NEO and the region Team NEO advances Northeast Ohio s economy by marketing the region s many assets, attracting new businesses from around the world, building collaboration among the 18-county region s economic development organizations and linking the region to the state s JobsOhio program. Since 2007, the organization has attracted 72 new company operations, more than 6,200 new jobs and $266 million in annual payroll to Northeast Ohio, leading to a total annual regional payroll benefit of nearly $671 million. connect with us Check out clevelandplusmakesthings.com Generous support provided by: Fund for our economic future Network Regional Partner 737 Bolivar Road, Suite 2000, Cleveland, Ohio 44115 888.NEO.1411 www.clevelandplusbusiness.com