Ohio has a fascinating history around innovation: The Airplane, the light bulb, the self starter for the automobile, the modern traffic light, gas-powered engines, the cash register, the hot dog, the golf ball, Teflon and Superman. It is the number four business climate in the US, the number two automotive manufacturing state, the number four advanced manufacturing state, the seventh largest economy in the U.S. Ohio ranks as number one in affordability in the U.S. News Opportunity Rankings. The state has 16 metropolitan areas, 29 micropolitan areas and 75 State parks, eight commercial airports and 150 colleges and universities (5 Carnegie R1 Research Universities). It is also the number one producer of Swiss cheese if you like that.
The idea of re shoring is tougher to put into practice than we think, but it is part of a new map for globalization for the year of 2032 and beyond that we will need to navigate towards.
The Intel win is a the anchor “whale,” that will create tens of thousands of jobs directly and indirectly. However. this is the results of a re tooling of the idea of economic development jobs that hopefully is wide spread in the US but 2032.
Globalization has for all its great virtues exposed certain vulnerabilities for us. Jobs get lost, supply chains can be pinched and more importantly the capacity to respond to these pressures become increasingly difficult in the timelines we now expect. JobsOhio’s recent success in attracting Intel to build the largest microprocessor plant in the world, right in the heartland of America is maybe the first and most programmatic process for bringing jobs back the United States and also protecting industries increasingly reliant on sourcing key technology components in the markets they sell to.
Transforming America’s diverse industrial base to handle future supply chain shocks as well as a stronger presence for innovation and future ready jobs is the dream of any state development body in the USA. Ohio jobs has constructed a very integrated process that could be copied elsewhere and this podcast with J.P. Nauseef the CEO JobsOhio maps out that integrated process.
The podcast covers these key areas:
· The first element was to create a private economic development organization to drive the changes. In 2011 the development group –was privatized. It is the only one in the USA. A bond of $1.4bn was raised through the sale of the liquor license to fund this. Within 16 months the incentives were paid back with payroll taxes to the state – delivering 300% more payroll than the committed money.
· The economic fund is not just used at a state level, but it has been deployed within regions inside Ohio. The idea of local partnerships is critical for success and the development group is composed of experts in specific areas in order to be hyper connected to the landscape within the state. For example, areas are designated, mapped and matched to the fund and experts are bought in for specific aspects.
· Covid has helped re-calibrate the idea of where you and your family want to live economy encourages movement of people outside of the coasts.
· JobsOhio has built three innovation districts where academic institutions innovation and STEM students are directly supported by entrepreneurs and venture capital funds. This feeds and sustains innovation hubs, local jobs and attractive areas for out of state companies and people to move into. There have been 47K+ new STEM graduates in less than five years and these students have to do experiential training with a local companies (robotics, and software skills in the jobs of tomorrow).
· Because Ohio is not dominated by one metro area and there is a mix of big and medium or small sized towns this helps.
Investing in the future of America, STEM jobs, regional wealth that can be sustained and supply chain efficacy will be a challenge. JobsOhio is found a unique formula that could in parts be replicated and adapted across the US. In a world of 2032 and beyond JobsOhio shows the way forward to deep, re generative capabilities that are achievable with a different way of thinking (privatization of development funds) and deeply local planning and execution.
J.P. Nauseef is the president and chief executive officer (CEO) of JobsOhio, a uniquely structured private economic development corporation that gives Ohio a competitive advantage in driving job creation and new capital investment in the state. He leads a team of targeted industry sector veterans and economic development specialists responsible for business attraction, retention, and expansion efforts statewide. Since joining JobsOhio in March of 2019, J.P. has launched 12 major initiatives to foster innovation, prepare project-ready sites, develop and retain Ohio’s world-class workforce, and promote inclusive development.
Under his leadership, JobsOhio more than tripled its annual funding for impact investments and grants to over $500 million and played a pivotal role in attracting Intel to build its next-generation semiconductor factories in Ohio. According to Intel, its initial investment of more than $20 billion for two “chip fabs” could grow to eight fabs and more than $100 billion in 10 years, making it potentially the largest economic development project undertaken by a single American company in U.S. history.