Research at Team NEO:Regional Assets

Jim Robey, PhDVP Research

August 8th, 2009

Current Research: Transportation

• Add additional companies to “next day” deliveries

• Working with CLE on European Directs– International companies with activities in

Cleveland+• 989 companies• 37 countries represented

– Reverse engineer via Nexis: Cleveland companies with ops in Europe

Nine US Congressional Districts in the Footprint

Orthopedic Production-Related Workforce:Cleveland-Akron MSA versus Koscuisko County

SOC TitleTotal - Private: Cleveland - Akron

Total - Private: Koscuisko Co, IN

51-1011 First-Line Supervisors/Managers of Production and Operating 9,005 556

51-2092 Team Assemblers 14,484 1,439

51-2099 Assemblers and Fabricators, All Other 4,273 335

51-4011 Computer-Controlled Machine Tool Operators, Metal and Plasti 2,868 141

51-4012 Numerical Tool and Process Control Programmers 414 13

51-4021 Extruding and Drawing Machine Setters, Operators, and Tender 1,649 105

51-4022 Forging Machine Setters, Operators, and Tenders, Metal and P 1,008 33

51-4031 Cutting, Punching, and Press Machine Setters, Operators, and 5,151 211

51-4032 Drilling and Boring Machine Tool Setters, Operators, and Ten 1,111 38

51-4033 Grinding, Lapping, Polishing, and Buffing Machine Tool Sette 2,372 137

51-4034 Lathe and Turning Machine Tool Setters, Operators, and Tende 1,786 46

51-4035 Milling and Planing Machine Setters, Operators, and Tenders, 646 27

51-4041 Machinists 7,616 246

51-4072 Molding, Coremaking, and Casting Machine Setters, Operators, 2,779 218

51-4081 Multiple Machine Tool Setters, Operators, and Tenders, Metal 1,788 116

51-9082 Medical Appliance Technicians 147 139

51-9199 Production Workers, All Other 4,924 256

NEO Production OccupationsIncluding Wages

SOC Code SOC Title

Total 2007NEO

Employment

Average Annual NEO

Wage

51-4011 Computer-controlled machine tool operators 3,600 $33,116.81

51-4012 Numerical tool and process control programmers 360 $47,028.33

51-4021 Extruding and drawing machine setters, operators, and tenders 3,470 $37,510.17

51-4022 Forging machine setters, operators, and tenders 1,130 $38,676.28

51-4023 Rolling machine setters, operators, and tenders 1,430 $34,095.73

51-4031 Cutting, punching, and press machine setters, operators, and tenders 9,620 $29,631.43

51-4032 Drilling and boring machine tool setters, operators, and tenders 1,290 $34,146.36

51-4033 Grinding, lapping, polishing, and buffing machine tool setters, operators, and tenders 2,970 $29,401.99

51-4034 Lathe and turning machine tool setters, operators, and tenders 2,300 $30,489.43

51-4035 Milling and planing machine setters, operators, and tenders 820 $28,288.54

51-4041 Machinists 13,760 $34,531.35

Vacation Days by Length of Tenure and Type of Employment

Tenure

Type of Employment

Mean N Minimum Maximum

Under 1 yearFull-time 7.68 171 1 23

Part-time 5.84 45 2 18

1-2 yearsFull-time 8.27 357 2 23

Part-time 7.47 78 2.5 20

3-5 yearsFull-time 10.71 355 2 27

Part-time 9.32 77 5 20

6-10 yearsFull-time 14.14 353 3 48

Part-time 11.72 76 2.5 23

11 or more yearsFull-time 17.05 342 4 30

Part-time 13.90 74 2.5 30

Sick Days by Length of Tenure and Type of Employment

Tenure Type of Employment Mean N Minimum Maximum

Under 1 yearFull-time 8.43 120 1 30

Part-time 7.03 38 2 15

1-2 yearsFull-time 7.71 141 1 30

Part-time 7.31 40 2 15

3-5 yearsFull-time 7.79 143 1 30

Part-time 7.33 41 1 15

6-10 yearsFull-time 7.93 143 1 30

Part-time 7.40 41 2 15

11 or more yearsFull-time 7.84 139 1 30

Part-time 7.44 40 2 15

Personal Days by Length of Tenure and Type of Employment

Tenure Type of Employment Mean N Minimum Maximum

Under 1 yearFull-time 3.79 106 1 17

Part-time 2.24 30 1 4.5

1-2 yearsFull-time 3.95 142 1 17

Part-time 2.68 41 1 10

3-5 yearsFull-time 4.24 141 1 19.5

Part-time 2.86 38 1 10

6-10 yearsFull-time 4.47 143 1 26

Part-time 2.99 40 1 10

11 or more yearsFull-time 4.69 136 1 27

Part-time 2.88 38 1 10

Holidays by Length of Tenure and Type of Employment

Holidays by Length of Tenure and Type of Employment

TenureType of Employment Mean N Minimum Maximum

Under 1 yearFull-time 8.28 332 3 17

Part-time 7.80 90 2.5 12

1-2 yearsFull-time 8.29 352 3 17

Part-time 7.89 94 2.5 12

3-5 yearsFull-time 8.31 352 3 17

Part-time 7.96 94 2.5 12

6-10 yearsFull-time 8.32 351 3 17

Part-time 7.95 94 2.5 12

11 or more yearsFull-time 8.34 344 3 17

Part-time 7.95 94 2.5 12

401K Benefits by Type of Employment

Type of Employment Requirements for Benefit Mean N Minimum Maximum

Full-time

Tenure (months)6.04 243 0 30

Percentage Paid by Employee

67.25 119 0 100

Part-time

Tenure (months)6.24 79 0 30

Percentage Paid by Employee

71.47 50 0 100

Health Insurance by Type of Employment

Type of BenefitType of Employment

Requirements for Benefit Mean N Minimum Maximum

Health Insurance

for Employee

Full-time

Tenure (months) 2.36 313 0 36

Percentage Paid by Employee

23.48 293 0 100

Part-time

Tenure (months) 1.99 52 0 30

Percentage Paid by Employee

38.18 55 0 100

Health Insurance

for Families

Full-time

Tenure (months) 2.30 302 0 32

Percentage Paid by Employee

31.77 293 0 100

Part-time

Tenure (months) 1.84 48 0 30

Percentage Paid by Employee

46.96 55 3 100

Current Research: Workforce

• 2010 Next Starting Wage and Benefit Survey

• Integrate Census estimates from Claritas– Occupations by residence– Update to 2009 tract data

• Update workforce data– D&B– Industry/occupation matrix from BLS

• CSU: ES202 quarterly updates for occupations

So What Happens If?250 Fabricated Metals Jobs in Summit County

REMI Impacts from 250 JobsOrtho machining in Summit County

Project Marrow: 2009 Operations ImpactsAkron MSA Cleveland+ Ohio

Employment 455 558 572Gross Regional Product $44,189,187 $52,990,902 $54,194,967Personal Income $24,275,700 $28,601,000 $29,144,000

Local Wage Tax (@2%) $485,514 $572,020 $582,880State Income Tax (2.88% ATR) $699,140 $823,709 $839,347CAT: Self Supply Self Supply $90,382 $137,577 $146,539CAT: Imports Imports $36,845 $46,278 $47,869Sales: B2B B2B $86,643 $130,345 $136,092Sales: Consumer Consumer $332,178 $464,236 $475,697

Total State Revenue Estimates $1,245,187 $1,602,145 $1,645,543

Total Public Revenue Estimates $1,730,701 $2,174,165 $2,228,423

Output $83,846,951 $99,376,394 $101,687,753

Much of Northeast Ohio is Working

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Employment Unemployment

Unemployment Claims Trending Down

0

20000

40000

60000

80000

100000

120000

June Ju

ly

Augus

t

Septe

mbe

r

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Febru

ary

Mar

chApr

ilM

ayJu

ne July

Month

Co

nti

nu

ed C

laim

s

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Init

ial C

laim

s

Continued Claims Initial Claims

Housing Permits Encouraging

100

150

200

250

300

350

400

450

500

550

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Ho

us

ing

Pe

rmit

s I

ss

ue

d

Housing Permits

Inventories Down Statewide

Manufacturing Exports in Ohio: 2005-2009

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Q1

2005

Q2

2005

Q3

2005

Q4

2005

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

(Mil

lio

ns

20

08

$)

Manufacturing Work Increasing

Average Weekly Manufacturing Hours Worked in Ohio

35.0

36.0

37.0

38.0

39.0

40.0

41.0

42.0

43.0

Jan-

08

Feb-0

8

Mar

-08

Apr-0

8

May

-08

Jun-

08

Jul-0

8

Aug-0

8

Sep-0

8

Oct-0

8

Nov-0

8

Dec-0

8

Jan-

09

Feb-0

9

Mar

-09

Apr-0

9

May

-09

Industrial Space Fairly Stable

Northeast Ohio Occupied Industrial Space

384,000,000

386,000,000

388,000,000

390,000,000

392,000,000

394,000,000

396,000,000

398,000,000

400,000,000

402,000,000

404,000,000

2005

1Q

2005

2Q

2005

3Q

2005

4Q

2006

1Q

2006

2Q

2006

3Q

2006

4Q

2007

1Q

2007

2Q

2007

3Q

2007

4Q

2008

1Q

2008

2Q

2008

3Q

2008

4Q

2009

1Q

2009

2Q

Occ

up

ied

Sq

. F

t.

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

Vac

ancy

Rat

e

Occupied Space Vacancy Rate

Strong Office MarketCleveland+ Total Occupied Office Occupied Space and Vacancy:

2004-2009

110,000,000

112,000,000

114,000,000

116,000,000

118,000,000

120,000,000

122,000,000

124,000,000

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

Occupied Space Vacancy Rate

Other Research Updates

• Parcel mapping in GIS• REMI

– Begin using newest model PI+– Create 18 region model for county/subcounty analysis

• Update (quarterly) NLRB data• Regional Economic Review

– Media Tour this week---release April 27th • Update Economy.com county-level data

– Employment– GRP– Wages

Cleveland+ Assets

• Location, Location, Location• Diverse Industry Base: Manufacturing AND Services • Manufacturing

– We Still Make Things:– Cleveland+ 21.3% of GRP– US 13.4% of GDP

• Educational Assets• Ohio Tax Reform: Commercial Activities Tax• $577 Million in Venture Capital

– More than 50% into Bio-Med COMPANIES• More than half of Ohio’s Bio assets are in Cleveland+• Ohio’s Re-newable Portfolio Standard: 25% by 2025

– Creates a market (customers)• Research team @ Team NEO: at your service

– GIS– Economic Impact– Labor & Census Data– Labor & Current Conditions Updates

Research Team

• Rick Seifritz: Research Manager– MUPDD/CSU Levin– rseifritz@teamneo.org/216-363-5433

• Jacob Duritsky: Research Manager– MSUS/CSU Levin, Ph.D. coursework in ED– jduritsky@teamneo.org/216-363-5424

• Meredith Karger-Davis: Research Manager– MUPDD/CSU Levin– mkarger@teamneo.org/216-363-5430