section FOUR Game Changers Strong Where it Counts

Transcription

1 section FOUR Game Changers Strong Where it Counts

2 GAME CHANGERS BUSINESS LANDSCAPE POISED FOR SUCCESS Since JobsOhio started, we have focused on enhancing Ohio s competitiveness and improving the productivity of Ohio s economy. Achieving this requires a growth-oriented business environment and a group of companies that can create jobs and wealth; and Ohio enjoys a broad group of companies through its diversified base of businesses. One of our first priorities when we launched JobsOhio was to identify specific industries that are strong in Ohio or present growth opportunities in the state. In our initial strategic plan two years ago, we outlined nine sectors to target for our Retention & Expansion and Attraction activities. Through our targeted industry approach, we aim to create a competitive advantage in these sectors and generate higher growth rates for jobs and Gross State Product in Ohio than its peer states and the U.S. Looking at prospective sources of future economic growth and greater productivity in the U.S., three industry catalysts are consistently cited as potential game changers Shale Energy, Big Data and Advanced Manufacturing. Ohio is uniquely positioned to capitalize on all three of these areas. These game changers not only align well with our target industries, but are also integrated across multiple industries. For example, big data impacts not only IT companies, but also effects financial institutions, health-related organizations, and consumer retail companies. The importance of shale extends beyond energy companies; it influences chemicals companies, manufacturers, and transportation companies. The cross-cutting nature of these game changers allows us to better leverage Ohio s areas of strength and realize more jobcreating opportunities. This will provide JobsOhio and the state with a competitive edge over others, and is essential to achieving our strategic goal of enhancing productivity and generating longterm value for Ohio. JOBSOHIO SECTORS Aerospace & Aviation Information Technology & Services GAME CHANGERS Food Processing & Agribusiness Financial Services Shale Energy Big Data Automotive Advanced Manufacturing Energy Advanced Manufacturing Polymers & Chemicals Biohealth 38

3 SHALE ENERGY BIG DATA Energy and shale, big data analytics, and advanced manufacturing represent the key elements to the next big wave of productivity and will be major factors in driving economic growth in the U.S. JAMES C. BOLAND JobsOhio Board Chairman ADVANCED MANUFACTURING 39

4 SHALE ENERGY FULL OF ENERGY AT THE CENTER OF IT ALL Shale energy is a key factor in the JobsOhio strategy, as Ohio finds itself at the center of this booming industry. In fact, shale energy is considered to be one of the top economic forces that could lift U.S. growth and create jobs by An example of that growth in Ohio is the Utica/Point Pleasant shale formation. MEASUREABLE GROWTH The pace of overall development also increased in Activity was focused in the wet gas window, where natural gas liquids and condensate account for approximately 50 percent of production. Last year, 400 Utica wells were drilled, more than two times the number of wells drilled cumulatively through By the end of 2013 a total of 250 wells were in production, a five-times increase over With per well costs of $5 to $9 million, this activity represents $2.0 to $3.6 billion of capital investments. DEVELOPMENT IN MIDSTREAM PROCESSING The most significant development in 2013 was the beginning of operations of midstream processing and fractionation plants. These facilities allow for the wet gas to be separated from dry gas (used in our homes and businesses) and further separated into marketable derivatives such as propane (used to heat homes and dry crops) and butane (blended with gasoline in the winter). Over $7 billion of investment and projects committed are identified in midstream development including key pipeline projects. JobsOhio is actively engaged with midstream companies assisting in logistics and project timeline issues. RESULTS IN ACTION As the energy landscape changes, the Utica Shale development will play a key role in securing our nation s energy future. For the state of Ohio, it means a stronger future with additional jobs, economic development and investment opportunities. With two of Marathon Petroleum Corporation s refineries and the supporting logistics located in the heart of this shale region, we are already investing millions of dollars to be able to process this resource. The positive impact of the investments and creation of jobs by numerous companies will be felt throughout the region and across the state. GARY R. HEMINGER President and CEO, Marathon Petroleum Corporation JOBOHIO S THREEFOLD APPROACH TO ECONOMIC DEVELOPMENT IN SHALE: 2014 AND BEYOND ONE Expand oil and gas supply chain TWO THREE Expand and recruit chemical Expand and recruit companies and petrochemical plants that that are large natural gas users use Utica production as (e.g., boiler conversion, fertilizer feedstock production, and gas-fired electric power plants) 40

5 RESULTS IN ACTION LEGACY MEASUREMENT SOLUTIONS As development of Ohio s Utica Shale play continues to increase, companies that support the natural gas industry are also making significant investments in the state. Legacy Measurement Solutions, as part of a manufacturing expansion, sought a new regional location to best serve its customers in the Marcellus and Utica Shale plays. Ohio competed for this project with several surrounding states. Ohio s strategic location played a key role in Legacy s decision to locate here. Legacy Measurement Solutions 73,000-square foot facility in Brookfield Township will employ at least 150 Ohioans with a wide-range of skills, from assembly to advanced engineering. Our team had diligently considered surrounding states looking for the most strategic position and area to locate, and we are excited about the Brookfield (Ohio) location. We are pleased to be sharing this great opportunity with Ohio and its Northeast region. After a detailed discussion between Danny Hendrix, the President and CEO of Legacy Measurement Solutions, and Governor John Kasich we were convinced Ohio was the right venue for our new facility. GARY CRISP VP Operations NE, Legacy Measurement Solutions 41

6 BIG DATA BIG AND GETTING BIGGER A NEW FRONTIER A major development in information technology is big data. Ohio is incredibly well positioned to build a reputation as a global center of excellence in this rapidly growing field. Big data combines the collection and management of large data sets with analytics. Its marriage with cutting-edge technology is resulting in dynamic growth opportunities across all sectors of society. Last year, Gartner, the world s leading information technology research and advisory company, predicted that 1.9 million technology jobs would be created to support big data in the United States by 2015, and three times that many jobs outside of computing. THE HOME OF WORLD LEADERS Today, three of the world s largest big data solution providers are located or headquartered in Ohio: dunnhummbyusa, Teradata, and IBM s Global Data Analytics Center. Ohio is also home to many of the largest consumer product and apparel companies in the world. These companies depend on big data to manage financial and operational risk, track product movement, and identify trends to strategically grow their businesses. Last year, Gartner, the world s leading information technology research and advisory company, predicted that 1.9 million technology jobs would be created to support big data in the United States by 2015, and three times that many jobs outside of computing. THE COLUMBUS COLLABORATORY IS COMPOSED OF COMPANIES FROM MULTIPLE INDUSTRIES IN CENTRAL OHIO: GROWTH YOU CAN SEE Last year, the Direct Marketing Association reported that data-driven marketing now accounts for about 3.3 percent of Ohio s gross domestic product ($5 billion in annual revenue), an industry that employs more than 20,000 Ohioans. 1 Higher education is supporting this growth. Specifically, The Ohio State University and University of Cincinnati are providing undergraduate and graduate programs dedicated to this area. Analyzing big data allows researchers and companies to make faster decisions using information that was previously inaccessible. Big data produces monumental insights, and companies that actively leverage this new approach to capturing and analyzing information will reap large benefits. PUSHING OHIO INTO THE FUTURE Private industry is coming together to address some of the challenges associated with advancements in big data. Through a partnership known as the Columbus Collaboratory, seven of Central Ohio s largest companies are collectively making a significant investment that will develop corporate solutions for data analytics and cyber security. Looking ahead to 2014, JobsOhio s goal is to help more existing Ohio companies get engaged with big data projects that can improve their competitive advantage. We will look for opportunities to host a series of events with clients, vendors, academic partners, and government to illustrate the impact of analytics on all of the core industries within our strategy. 1 Harvard School of Business/Columbia University for the Direct Marketing Institute 42

7 RESULTS IN ACTION AVNET, INC. A Fortune 500 company, Avnet Technology Solutions provides aftermarket services, including repair, refurbishment, re-engineering, IT asset recovery and e-cycling for the technology supply chain in North America, Europe, and Asia. After acquiring 12 companies to develop a third service line for its customers, Avnet planned the consolidation of companies to one location. Ohio competed fiercely against Texas and Georgia to add 300 high-paying jobs at a new location. A strong logistics infrastructure and an existing relationship with the company helped bring this $2.5 million capital investment to Central Ohio. This is a significant move for Avnet as we continue to invest in the Columbus Region and think strategically about the future growth of Avnet Services. It makes sense for our employees to be in one location, and the Region is able to accommodate this move with a facility designed for our business and easy access to a workforce to support our business growth. BILL WENTWORTH Senior VP, Avnet Technology Solutions 43

8 ADVANCED MANUFACTURING IT S IN OUR HERITAGE OHIO WAS BUILT ON MANUFACTURING Manufacturing has been a core industry in Ohio for well over 100 years, leading new innovation that revolutionized the way the world makes products. Not only has Ohio manufacturing continually grown since 2009, it has outpaced U.S. manufacturing growth. With a diverse portfolio of industries, Ohio is poised to grow manufacturing in several segments, including automotive, aerospace, biotechnology, energy, food processing & agribusiness, polymers & chemicals, and advanced manufacturing. An increase in exports from Ohio has played an important role in the state s economic growth. In fact, Ohio exports in 2013 exceeded $50 billion for the first time ever. LED BY THE RESURGING AUTO INDUSTRY The automotive industry is Ohio s greatest recipient of localized manufacturing, led by domestic and international original equipment manufacturers (OEMs). With a geographic advantage reaching OEMs to the north and south, Ohio is a prime location for these new-to-market companies. Ohio-based Honda America achieved an export milestone in 2013, shipping more American-made cars from the U.S. than it imported from Japan. On top of that, 95 percent of the Honda vehicles sold in North America were made in Ohio. 95% of the Honda vehicles sold in North America were made in Ohio AEROSPACE TAKES OFF Aerospace also presents a unique opportunity for growth in Ohio. As the number one supplier state to both Airbus and Boeing, Ohio is in a position to capture a significant share of the aerospace supply chain as these OEMs expand their supplier base. Also, defense spending on research and development continues to be a strong point for Ohio. Research at Wright Patterson Air Force Base in Dayton and the NASA Glenn Research Center in Cleveland has a combined impact of $6.3 billion in the state s economy. Further development of unmanned aerial systems, missiles systems, sensors, and other leading technologies will continue to bolster the aerospace industry in Ohio. In 2013, GE Aviation opened the $51 million GE Aviation Electrical Power Integrated Systems Center, at the University of Dayton. The EPISCenter is believed to be the only one of its kind because of its capability to simulate and test complete electrical power systems in airplanes. % change 35% 30% SELECTED MANUFACTURING SUB-SECTORS EMPLOYMENT CHANGE OHIO REGIONAL STATES 1 USA EMBRACING AN EMERGING TECHNOLOGY Additive manufacturing, also known as 3D printing, is another long-term growth opportunity for Ohio. While still an emerging technology, 3D printing is used throughout Ohio in a variety of applications. Ohio is 25% also home to the National Additive Manufacturing Innovation Institute, established as a partnership 20% 15% between the federal government and 79 member organizations including companies, universities, community colleges, and non-profit organizations. 10% GE Aviation, with a full-scale 3D printing lab in Cincinnati, is incorporating additive manufacturing in 5% 0 MOTOR VEHICLE BODY & TRAILER INDUSTRIAL MACHINERY MFG. MACHINERY MANUFACTURING FOOD MANUFACTURING engines today, with plans to have over 100,000 parts manufactured with the technology by Regional states: IL, IN, KY, MI, PA, WV 44

9 RESULTS IN ACTION THYSSENKRUPP BILSTEIN OF AMERICA To strengthen its competitive edge in the global market, ThyssenKrupp Bilstein of America sought to transfer more of its automotive parts manufacturing to the United States. An existing relationship with Germany-based ThyssenKrupp, bolstered by Governor Kasich s conversations with parent-company executives at the World Economic Forum in Davos, better positioned Ohio to win this expansion project. Ohio was ultimately chosen over locations in Germany and China for this investment, adding 100 jobs at the company s Hamilton facility. In addition to the strong relationship with Ohio, ThyssenKrupp Bilstein officials cited ample access to qualified labor as a driving factor in their decision. Working with JobsOhio and its regional and local partners was a very, very good experience. They are solution- and growth-oriented and are serious about building the kinds of business relationships that help companies to be productive and grow. FABIAN SCHMAL President and CEO of ThyssenKrupp Bilstein 45

10 RESULTS IN ACTION SAFELITE AUTOGLASS Twenty-three years after moving to Ohio, Safelite Group found itself faced with a good problem: a need for more space following five years of strong growth. As the company moved forward with expansion plans, it considered not only Ohio, but also locations in two other states. JobsOhio, Columbus 2020, and the City of Columbus worked closely to ensure that the investment and job creation occurred in Columbus. As a result, the auto glassmaker will add office space and remodel its existing headquarters to accommodate current and future growth. This win reinforces that national brand Safelite will continue to call Central Ohio home today and in the future. Affordable living, good school systems, good infrastructure with easy access to highways that have low traffic these are things we have in Central Ohio and throughout all of Ohio. It s probably one of the best-kept secrets and it s all baked into the Midwestern culture. TOM FEENEY President and CEO of Safelite Group 46