December 2009 + Northeast Ohio's Diversifying Industries Positively Impacting Economy

Northeast Ohio is trending closer to the U.S. in this current recession than in the 1981 recession, according to the most recent edition of Team NEO’s quarterly Cleveland Plus® Economic Review released today. Compared to the 1981 major recession in which Northeast Ohio significantly lagged behind the U.S. in employment and GRP, these indicators in the 16-county Cleveland Plus region of Northeast Ohio are trending closer to U.S. averages in this recession. The Review indicates that this change is likely due to Northeast Ohio’s change in industry mix. Nearly 30% of the region’s GRP depended on the manufacturing industry in 1981, compared with 12% today. Today, the Cleveland Plus region’s economy is more diversified with increases in Healthcare, Headquarters, Professional, Scientific and Technical Services, and other industries. Specifically, the report indicates:

Northeast Ohio is performing Similar to the U.S. in this Recession

• In the 1981 recession, Northeast Ohio’s employment and GRP rate dropped much more sharply than the U.S.; today’s recession is trending much closer
• Shift in Industry Mix Positively Affecting GRP and Employment
• During 1981 recession, Manufacturing accounted for 28% of employment; today it represents 12%

Diversified mix and shift to higher growth industries may be positively impacting NEO economic stability in this recession

• NEO Biomedical industry has grown by 37% in the last 5 years, outpacing U.S.
• NEO Professional, Scientific and Technical Services has grown 79% in the past 15 years with Scientific Research and Development growth doubling U.S.
• NEO Aerospace-Related Industry has grown by 59% in the last 15 years

Cleveland Plus Workforce Transitioning

• Since 1981, individuals with some college education have increased about 120%
• Individuals with bachelor’s or an advanced degree have increased by nearly 75%