Manufacturing, Health Care Drive NE Ohio Economy
YOUNGSTOWN, Ohio -- Led by the manufacturing sector, the economy of northeastern Ohio continues to grow and this year’s grow will be stronger than last year’s, the economics department of PNC Financial Services Group says.
In a report released Tuesday (CLICK HERE), PNC economists note that growth “has been persistent and moderate with little variation over the previous several quarters.”
Besides manufacturing, the demand for health-care services, because of an aging population, has been “a consistent growth driver.” All four metropolitan areas -- Cleveland, Akron, Canton and Youngstown -- have senior citizens as higher shares of their populations than the national average, especially Youngstown. Nearly 18% of those who reside in Youngstown are 65 and older.
“This generates a lot of demand for health care,” PNC said, and more than 18% of the workforce on the northeastern quadrant is employed in health care, whether as physicians, nurses, or in nursing homes, pharmacies and providing home health-care services.
Over the past three years, the strength exhibited by the manufacturing sector has allowed the median income of households to recover to 1.5% above its pre-Great Recession peak, consistent with national trends.
In the long term, however, the PNC economists caution, “Income growth in the region will likely lag that of the nation. The median income is about 11% lower than the national average and the share of jobs in high-wage goods production in long-term decline.”
The silver lining in the storm cloud is “plentiful labor and affordable business costs can help attract new industries and employers looking to establish profitability through cost efficiency.”
Northeastern Ohio potential for economic growth is slower than that of the United States, not only because of its aging population, but the exodus of talented younger people who sought greener pastures, especially in the service industries. That trend has slowed, PNC found. “For now, out-migration has likely moderated given the ongoing jobs recovery,” the economists said.
Longer term, the region will continue to see a loss of population and natural gas extraction in the northern tier of the Utica shale will slow but not prevent this loss. Manufacturing will continue to undergird the economy.
SOURCE: PNC Financial Services Group.
Published by The Business Journal, Youngstown, Ohio.
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