Southern Ohio must try to save its employers
Published 12:00 am Sunday, March 20, 2011
Southern Ohio communities from Cincinnati to Ironton have seen major employers pack up and leave town: Ford motor plant in Clermont County, Mill’s Pride in Pike, Goodyear in Jackson, Detroit Steel in Scioto, and the list goes on.
According to U.S. Department of Labor county figures, the six southern Ohio counties of Adams, Brown, Scioto, Pike, Jackson and Lawrence had a combined reduction of more than 60 business establishments in the past eight years. Clermont County, which feeds on breadlines from Cincinnati, has also been adversely impacted.
The unemployment rate in these seven southern Ohio counties has collectively increased from 7 to 11 percent since 2002, going from about 14,600 unemployed in 2002 to just under 24,800 in 2009 (latest DoL county data). Clermont, the most populated county, almost doubled in unemployed workers, going from 5,325 in 2002 to 10,245 in 2009.
Over the same time period, southern Ohio experienced a decline in buying power of annual wages coming into the counties.
In 2002 total wages coming into the seven counties was $2.8 billion, and by 2009 that figure had risen to $3.3 billion. But when adjusted for inflation, the 2009 figure drops to $2.7 billion, about a 1 percent decline over eight years.
Although the counties of Brown and Lawrence experienced annual wage growth (24 percent and 12 percent, respectively), the other larger counties were significantly lower and in the negative.
The dwindling employment outlook in southern Ohio appears to be driving our young and talented people to look elsewhere for work.
The U.S. Census breaks down county population figures into 18 age segments of five years each, ranging from 0-4 to 85+ years.
For the younger age segments below 45, SO counties collectively experienced a population decline in seven of nine segments.
These are the years when people are most focused on getting an education, starting a family, and building their careers. (Clermont had a population decline in four segments, Scioto six, and the remaining seven or more.)
Conversely, since 2002 all southern Ohio counties posted double-digit percent population growth in 4-of-8 of the older age segments at 45 and above — with dramatic growth in the 50-74 age range. Clermont County had the largest population growth in the 45+ range with double-digit increases in all age segments.
Southern Ohio needs job growth now and we should hang a huge banner across our highways proclaiming, “Open for Business!” To back up this statement we need to provide prospective businesses the following:
1) Industrial parks zoned and equipped for quickly setting up shop, with minimal start-up costs, and tax breaks to help budding enterprises get on their feet.
2) Skilled and trained employees by collaborating with local educational institutions to develop curriculums and training tailored to support local employers.
3) Specific incentives and programs for attracting businesses in U.S. high growth industries, such as professional and technical services. (Service jobs tend to pay higher wages and with today’s telecommunications infrastructure can be performed most anywhere.)
With leadership and vision we can make southern Ohio an attractive location for future generations. The time to act is long past due.
Joe Green is from Piketon, is President & CEO of NPRC, a management consulting firm, and may be reached via e-mail at joe@joegreen.us