Everyone knows that manufacturing is on the decline both nationwide and in states like Ohio, right? Well, not exactly—the story is actually much more complicated.

It is true that Ohio’s manufacturing sector saw a loss of some 93,000 jobs (about 10 percent) from 2002 to 2007, even as other portions of the economy were pulling out of the 2001 recession. Nationally, the manufacturing sector lost more than a million jobs, or 7 percent, over the same period. However, this does not at all mean that manufacturing should be neglected by economic development efforts. Rather, the sector is now undergoing intense restructuring that will require innovative, targeted investments. In particular, Ohio economic development professionals should be aware of four major trends in the state’s manufacturing sector:

1. The sector is actually adding new jobs in many non-urban areas.
2. The sector is becoming smaller, more productive, and higher-paying.
3. An aging workforce and rapid skill changes will tighten the sector’s job market.
4. The weak dollar will benefit manufacturers who can export products.

Read on to examine each of these trends in more detail: Recent Trends in Ohio Manufacturing (PDF)

Originally posted: Tuesday, March 25th, 2008
Last modified: Tuesday, March 25th, 2008