Northeast Ohio Aerospace-related Sector Grew 59 Percent Throughout Last 15 Years

10/12/2009

Team NEO Report Shows Sector Transitioning the Cleveland Plus Economy

Team Northeast Ohio (Team NEO) released the latest edition of the quarterly Cleveland Plus® Economic Review today with a focus on the region’s growing aerospace-related sector. Findings include that Northeast Ohio GRP for the sector has grown 59% since 1993, now representing 24% of all manufacturing.  With significant regional growth in the industries that supply to the aerospace sector, the collective $8 billion cluster of these industries is helping to transition the Cleveland Plus regional economy.

Specifically, the report indicates:

  • Sector Comprised of Highly Sophisticated Industries
    • Fabricated Metal is 21% of aerospace GRP
    • Navigational, Measuring & Control Instruments is 20% of aerospace GRP
    • Aerospace Product & Parts is 12% of aerospace GRP
  • Higher Paying Jobs 
    • The skills needed for this sophisticated sector are more advanced and reflected in 36% higher average wages than other industries in the region
    • Strength Throughout Region
    • The more than 2,300 firms whose products and processes are instrumental to the aerospace sector are disbursed throughout the entire Cleveland Plus region
    • Major aerospace suppliers headquartered in Northeast Ohio include: NASA Glenn Research Center, Parker Hannifin, The Timken Company, Goodrich Landing Gear, Alcoa Aerospace Automotive and Commercial Transportation

September 2009 Cleveland Plus Quarter Economic Review
View more documents from Team NEO.

In addition, every issue of Team NEO’s quarterly Cleveland Plus® Economic Review provides updates of basic economic indicators for the 16-county economy including: current estimates of the region’s annual growth rate, as defined by Gross Regional Product (GRP), and up-to-date information regarding Northeast Ohio’s total employment  rate.  This quarterly report also looks at the Industrial real estate landscape.  The following is a summary of the findings:

  • Nation’s soft economy reflected in GRP Revisions and Projections
    • Despite adjusted downward GRP revisions, Northeast Ohio’s economy has shown slight growth, with average annual growth rate of 1.1%
    • GRP for the region in 2009 is estimated to show a decline of 5%
  • Northeast Ohio job total mirrors world economy
    • Typical growth from Q1 to Q2 was realized, while less than normal, Northeast Ohio still saw employment increase by approx. 12,000 jobs
    • Total employment down 6% from Q2 2008
    • NEO unemployment mirrors national rate
  • Demand for industrial space remains strong
    • Vacancy rate stable at 7.5% despite current economic downturn

Team NEO publishes the Cleveland Plus Economic Review quarterly to provide a holistic picture of Northeast Ohio’s economy.  It is the only regular source of collective economic data for the 16-county region.  The non-profit organization uses the information to attract businesses worldwide to the Cleveland Plus region.  

Team NEO advances Northeast Ohio’s economy by attracting businesses worldwide to the 16-county Cleveland Plus region.  The organization is a joint venture of the region's largest metro chambers of commerce.  Since 2007, the organization has attracted 25 new companies, 3,000 new jobs and more than $95M in annual payroll to Northeast Ohio, leading to a total annual regional impact of $175M.

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