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Manufacturing declining, but some sectors thrive in N.E. Ohio, where the paycheck is good
By Paula Schleis
Beacon Journal business writer
Published on Thursday, Nov 29, 2007
It should come as no surprise that a new analysis shows manufacturing has declined at a faster pace in Northeast Ohio than in the rest of the country over the past 26 years.
But some in-depth number crunching by Cleveland State University's Center for Economic Development revealed some less obvious silver linings.
The brief — to be released today by the Manufacturing Advocacy and Growth Network (MAGNET) and the U.S. Economic Development Administration — compared long- and short-term trends in the region, state and country.
Among other revelations: From 2004 to 2006, six industries that account for 45 percent of Northeast Ohio's manufacturing work force increased both employment and gross product.
''These figures show that although the manufacturing sector as a whole has faced declining employment and gross product over the years, selected manufacturing industries tell a different story,'' the report said.
Four of the growing industries are the top four manufacturing employers in Northeast Ohio: fabricated metal products (with a work force of 61,000 employees), transportation equipment (41,300), machinery (32,500) and primary metals (29,200). Also on the rise are nonmetallic mineral products (8,300 employees) and wood products (nearly 4,000 workers.)
A geographic breakdown showed that half of Northeast Ohio's 16 counties added manufacturing jobs in the past couple of years.
The winners included Medina Coun
ty, where the manufacturing work force grew by nearly 6 percent.
Manufacturing employees are also, on average, bringing home better paychecks than their nonmanufacturing counterparts, the report concluded.
The average annual wage in the region's manufacturing sector is $50,400, compared with $38,800 for all industries.
Other figures about the overall decline of manufacturing:
While overall employment in Northeast Ohio grew 11 percent from 1980 to 2006, the national rate was four times higher at 46 percent.
Also from 1980 to 2006, manufacturing employment declined in both Northeast Ohio and the United States, but it fell by 42 percent here and only 24 percent across the nation.
During that period, gross regional product in Northeast Ohio declined by an inflation-adjusted 33 percent while the national gross product grew by 18 percent.
More of the good news:
Between 2004 and 2006, six manufacturing industries gained employment in Northeast Ohio, compared with five statewide and six nationally.
Northeast Ohio performed better than the state and the nation in four industries. Primary metals, furniture, wood products, and petroleum and coal products all grew here at a greater rate.
Northeast Ohio manufacturers of furniture and related products grew by 5 percent between 2000 and 2006 — a period when the industry declined 17 percent in Ohio and 18 percent nationally.
Employment in the region's wood-product manufacturing sector increased by 13.1 percent in the past couple of years, compared with a 3 percent increase nationally and a 4.5 percent decline in Ohio.
''Although the manufacturing sector as a whole has been plagued by job losses and declining output, it remains an important sector in Northeast Ohio,'' the report concluded.
Manufacturers still account for 19.5 percent — or nearly $33 billion — of the region's gross annual product.
Paula Schleis can be reached at 330-996-3741 or pschleis@thebeaconjournal.com.
It should come as no surprise that a new analysis shows manufacturing has declined at a faster pace in Northeast Ohio than in the rest of the country over the past 26 years.
Get the full article here.
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