Economy of Ohio - Overview

Overview

The economy of Ohio nominally would be the 20th largest global economy behind Switzerland and ahead of Belgium according to the 2009 World Bank projections, and the 21st largest behind Belgium and ahead of Poland according to 2009 International Monetary Fund projections. The state had a projected nominal GSP of $471.26 billion in 2009, down from the revised figure of $477.25 billion in 2008, according to the Bureau of Economic Analysis report of November 2010. The projected real GSP of the state from the same report was $429.81 billion in 2009, down from $441.78 billion in 2008.

In 2009, Ohio was ranked #4 in the country for best business climate by Site Selection magazine, based on a business-activity database. The state won its fourth consecutive Governor's Cup awards from the magazine in 2010, based on business growth and economic development. The Small Business & Entrepreneurship Council ranked the state #10 for best business-friendly tax systems in their Business Tax Index 2009, including a top corporate tax and capital gains rate that were both ranked #6 at 1.9%. Ohio was ranked #11 by the council for best friendly-policy states according to their Small Business Survival Index 2009. The Directorship's Boardroom Guide ranked the state #13 overall for best business climate, including #7 for best litigation climate. Forbes ranked the state #8 for best regulatory environment in 2009. Ohio has 5 of the top 115 colleges in the nation, according to U.S. News and World Report's 2010 rankings, and was ranked #8 by the same magazine in 2008 for best high schools. Overall, the state's schools were ranked #5 in the country in 2010. The year ending July 2011 saw the state ranked fourth in the nation in job creation behind Texas, California, and New York.

Ohio's private sector is composed of 921,000 employers, which hire around 50.4% of Ohio's non-farm private workforce. Ohio has a developing technology sector and is home to over 28,000 employers that employ nearly 820,000 people; its rate of technology operations is 14% higher than the US average. Between 2006 and 2014, Ohio's employment is expected to grow by 290,700 jobs, or approximately 5.0%. Personal income grew an average of 3.1% in 2008. About 659,900 people are employed in Ohio's manufacturing sector. Major manufacturing employers include AK Steel, Timken, and Honda. In 2007, foreign-based companies employed 229,500 Ohioans, led by Japan, United Kingdom, Germany, France, and Switzerland.

Ohio's exports constituted 3.2% of total U.S. exports in 2009, with top destinations being Canada at $14.2 billion, followed by Mexico, China, United Kingdom, Greece, Brazil, Japan, Germany, France, and Australia. In 2009 the state was the nation's 7th largest exporter with $34.1 billion. 13, 092 companies exported in 2009, with transportation equipment accounting for $9.9 billion, machinery $4.9 billion, chemicals $4.4 billion, and computer and electronics products $2.4 billion.

As of 2010, Ohio was #6 in the country for Fortune 500 companies with 23. They include Cardinal Health at #17, Procter & Gamble at #22, Kroger at #23, Macy's at #103, Nationwide Insurance at #118, Goodyear Tire and Rubber at #141, Progressive Insurance at #161, American Electric Power at #172, Eaton Corporation at #194, and Owens Corning at #432.