occupations in the next 5 years 8,500 healthcare new …blockchain jobs are in software development...

8,500 Healthcare Net New Job Openings by 2023 20,700

NEW JOBSHealthcare, sales and administrative occupations are among those showing measurable growth.

PLUS REVIEW DECEMBER 2018Quarterly Economic Indicators 18 Counties of Northeast Ohio

Northeast Ohio offers a broad range of employment opportunities in professional services, healthcare, manufacturing, computer science and a variety of other sectors. This Quarterly Economic Review explores new job creation, replacement opportunities, occupation concentration and growth potential through 2023.

OCCUPATIONS IN THE NEXT 5 YEARS

3,666 in healthcare practitioner and technical occupations 4,838 in healthcare support

Northeast Ohio Job Prospects Remain SteadyAcross all segments, Northeast Ohio is projected to add about 20,700 jobs over the next five years, holding steady with a total workforce of 1.948 million. While the workforce will remain relatively flat, opportunities will continue to be available to workers as, in addition to the new positions, replacements will be needed for more than 1 million existing positions due to retirements and employee turnover during this time period.

Source: Emsi

Projected Total Employment Growth in NEO: 2018-2023

1.95

2018 2019 2020 2021 2022 2023

IN M

ILLI

ON

S

1.945

1.94

1.935

1.93

1.925

1.92

1.915

Building on Team NEO’s Aligning Opportunities in Northeast Ohio report,

released in May 2018, this Quarterly

Economic Review provides a snapshot

of employment opportunities and

occupation growth projections for the

next five years.

TECHNOLOGY IS KEY TO FUTURE JOBSFuture jobs will involve specialized skills and proficiency in emerging technology, such as smart manufacturing and blockchain.

• Smart manufacturing companies seek workers proficient in operating technology and recruit experienced personnel with advanced capabilities to help implement and support the industrial internet of things (IIoT) system.

• Blockchain employment has increased nearly 300% since 2017, with more than 15,000 job openings in 2018 to date. Over 60% of blockchain jobs are in software development or software engineering.

• Engineering, operations, business development and management are all in-demand occupations of the future.

• The workforce in these emerging technologies can anticipate wages $10,000 to $60,000 higher than comparable occupations in other industries.

SKILL DEVELOPMENT – including

development of people skills – will

be essential to meeting the high

demands of this digital-age work-

force. According to a prominent,

local smart manufacturer, “Workers

proficient in MES (manufacturing

execution systems) hardware, software,

analytics, application expertise and

customer relations are worth their

weight in gold.”

Healthcare and Other Sectors Continue to GrowHealthcare-related sectors are among the top 10 projected to grow by 2023, with more than 8,500 net new openings. The computer and mathematical sector is projected to grow 6%, or 2,500 jobs, and the management sector is projected to experience a net increase of 2,700 jobs.

Source: Emsi

Top 10 Occupations with Projected Net New Growth: 2018 - 2023

Building and Grounds Cleaning and Maintenance

Business and Financial Operations

Community and Social Service

Construction and Extraction

Computer and Mathematical

Management

Healthcare Practitioners and Technical

Personal Care and Service

Healthcare Support

Food Preparation and Serving Related

01,000

2,0003,000

4,0005,000

6,000

Job Openings Emerge in Office and Administration Plus Other SectorsOverall, more than a million replacement workers will be needed over the next five years – many in office and administrative occupations, where 160,000 replacement opportunities are projected. As in most economies, food preparation and serving-related occupations make up a large portion of the workforce in Northeast Ohio, where another 160,000+ replacement jobs are projected. Production sectors will need more than 100,000 replacement workers, while healthcare-related occupations will require more than 77,700.

Source: Emsi

Projected Replacement Workers Needed in Northeast Ohio: 2018-2023

Protective Services

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

180,000

160,000

Management


Installation, Maintenance and Repair




Healthcare Support


Education, Training and Library

Transportation and Material Moving

Production

Sales and Related

Office and Administrative SupportFood Preparation and

Serving Related

Education Strengthens NEO WorkforceUpward momentum continues on the education front, as 26% of adults 25 and older in Northeast Ohio have attained a bachelor’s or graduate degree. While this percentage lags the nation slightly (30%), public colleges and universities are proactively working toward making postsecondary credentials more attainable. In June, nine institutions pledged to work toward this goal by signing the Northeast Ohio Regional Higher Education Compact. Among their objectives is developing strategies to address workforce needs.

Source: Emsi

Less Than 9th Grade

9th Grade to 12th Grade

High School Diploma

Some College

Associate Degree

Bachelor’s Degree

Graduate Degree and Higher

10% 4%7%

8%

16%

35%

21%

Professional Services, Healthcare and Manufacturing Employ Highest Concentration of Workers An analysis of today’s top 10 occupations based on concentration of employees reveals that the region continues to be driven by professional services, healthcare and manufacturing. With 20 Fortune 1000 companies here, the professional services sector employs almost 300,000 workers to support financial, legal, insurance and other professional service sectors. Northeast Ohio’s rich manufacturing heritage remains an essential part of the economy as well, employing more than 187,000 production workers. Similarly, health-care-related occupations account for more than 208,000 workers.

Source: Emsi

Largest Occupation Groups in Northeast Ohio: 2018

Educational Attainment in Northeast Ohio: 2018

Protective Services




Healthcare Support

Installation, Maintenance and Repair

Management


Education, Training and Library

Transportation and Material Moving


Food Preparation and Serving Related

Production

Sales and Related

Office and Administrative Support

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

IT-Related Employment in Northeast Ohio: 2017

10,0008,0006,0004,0002,0000

Operations Research Analysts

Software Developers, Systems Software

Computer Network Architects

Computer Programmers

Computer Occupations, All Others

Network and Computer Systems Administrators

Computer User Support Specialists

Computer Systems Analysts

Software Developers, Applications

Computer Network Support Specialists

12,000

Average Earnings per Job by Sector in Northeast Ohio: 2017

$100,000$80,000$60,000$40,000$20,000$0

Construction

Manufacturing

Government

Wholesale Trade

Information

Mining, Quarrying, and Oil and Gas Extraction

Finance and Insurance

Headquarters

Utilities

Professional, Scientific and Technical Services

$120,000 $140,000 $160,000

Headquarters and Professional Services Earnings Yield Economic GrowthA correlation exists between educational attainment and economic growth. Occupations in headquarters and professional services are likely to require an advanced degree, translating into higher wages. For example, head-quarters occupations yield more than $121,000 average earnings while professional, scientific and technical services average $82,000. This is much higher than the regional average earning of $69,024.

Source: Emsi

Technology Employment Continues to GrowNortheast Ohio boasts a robust network of technology professionals, from software developers and computer systems analysts to support specialists and database administrators. Demand for technology expertise is growing in headquarters operations across industry segments throughout the region, offering these talented professionals outstanding employment opportunities.

Source: Emsi

DEVELOPMENT ACTIVITYBelow is a sampling of recent development projects in Northeast Ohio, including some that will employ positions in occupations projected to grow in the next five years.

SWAGELOK EXPANDS IN SOLON WITH NEW GLOBAL HEADQUARTERS AND INNOVATION CENTER

Swagelok Company, a global developer and manufacturer of fluid system solutions headquartered in Solon, announced in September that its board of directors approved Solon as the location of its new $30 million - $50 million Global Headquarters and Innovation Center, following a three- month competitive site selection process. The new campus is expected to encompass up to 120,000 square feet of new space and feature a state-of-the-art innovation center, customer welcome center and business operations center, which will house 300 - 350 associates, with room for future job growth.

BWXT ANNOUNCES $130 MILLION INVESTMENT IN NORTHEAST OHIO

Lynchburg, Virginia-based BWXT Technologies Inc. announced in October that its subsidiary BWXT Nuclear Operations Group Inc. plans to invest more than $130 million over four years in its Barberton and Euclid, Ohio, facilities, creating more than 110 new jobs by 2022.

ALDI INCREASES EMPLOYMENT AT NORTHEAST OHIO WAREHOUSE

Grocery retailing industry giant Aldi has announced plans to grow employment at its distribution center in Hinckley. The retailer plans to add more than 60 new full-time equivalent (FTE) positions, and retain 180 FTE positions within the next three years. Northeast Ohio’s proximity to market, which equates to attractive financial advantages for the company, aided in the decision to expand in the region.

FAST-GROWING BIOMEDICAL COMPANY EXPANDS

Firstar Precision Corporation, a precision CNC job shop serving the medical, aerospace, food processing, industrial assembly and hydraulics industries, has announced its relocation to Brunswick. The company is investing almost $1.5 million and plans to add at least 21 new jobs while retaining 33.

UNION METAL CORPORATION ACQUIRED

Union Metal Corporation, one of America’s leading streetscape lighting manufacturers since 1906, was acquired in May by American Industrial Acquisition Corporation (AIAC Group). Now doing business as Union Metal Industries Corporation, the company will remain in Canton and expects to hire 250 full-time employees within two years. AIAC Group cited the area’s highly skilled workforce as a benefit for the acquisition.

US

OHIO

NEO

TOTAL EMPLOYMENT GROWS YEAR-OVER-YEARTotal employment averaged 1.895 million workers in Q1 2018, up almost 12,000 jobs year-over-year.

Source: Quarterly Census of Employment and Wages (QCEW). This is the most current reliable data available for total jobs in Northeast Ohio.

ALL SECTORS SEE YEAR-OVER- YEAR GROWTHIn Q1 2018, the construction sector added more than 2,200 jobs year-over-year, with about 65,800 total workers. At almost 267,000 jobs, the manufacturing sector added more than 4,000 jobs year-over-year, while the services sector added more than 4,500 workers year-over-year.

Source: Quarterly Census of Employment and Wages (QCEW). This is the most current reliable data available for total jobs in Northeast Ohio.

TOTA

L EM

PLO

YM

ENT

IN M

ILLI

ON

S

1.90

1.95

2.00

2.05

1.85

1.80

1.75

1.70

1.65

Q1 Q4

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Q2

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q3

2015

2016

2014

2007

2008

2009

2010

2011

2012

2013

-40%

-30%

-20%

-10%

0

+10%

MANUFACTURING SERVICES CONSTRUCTION

CHANGE IN EMPLOYMENT BY SECTOR THROUGH MARCH 2018

NORTHEAST OHIO UNEMPLOYMENT RATES THROUGH MARCH 2018

2008

2007

2009

2010

2011

2012

2013

2014

2015

2017

2016

0 = 2007 AVERAGE

Q1

07Q

2 07

Q3

07Q

4 07

Q1

08Q

2 08

Q3

08Q

4 08

Q1

09Q

2 09

Q3

09Q

4 09

Q1

10Q

2 10

Q3

10Q

4 10

Q1

11

Q1

12Q

2 12

Q2

11Q

3 11

Q4

11

Q3

12Q

4 12

Q1

13Q

2 13

Q3

13Q

4 13

Q1

14

Q1

15Q

2 15

Q3

15Q

4 15

Q1

16

Q2

14Q

3 14

Q4

14

SERVICES

CONSTRUCTION

MANUFACTURING

Q2

16Q

3 16

Q4

16Q

1 17

Q3

17Q

2 17

Q4

17Q

1 18

Q1

09

NEO OHIO US

12%

11%

10%

9%

8%

6%

4%

3%

Q1

07Q

2 07

Q3

07Q

4 07

Q1

08Q

2 08

Q3

08Q

4 08

Q2

09Q

3 09

Q4

09Q

1 10

Q2

10Q

3 10

Q4

10Q

1 11

Q1

12Q

2 12

Q2

11Q

3 11

Q4

11

Q3

12Q

4 12

Q1

13Q

2 13

Q3

13Q

4 13

Q1

14Q

2 14

Q3

14Q

4 14

7%

5%

Q1

15Q

2 15

Q3

15Q

4 15

Q1

16Q

2 16

Q4

16Q

3 16

Q1

17Q

2 17

Q4

17Q

1 18

Q3

17

NEO YEAR-OVER-YEAR UNEMPLOYMENT RATE SEES SLIGHT DECREASEThe unemployment rate for Northeast Ohio averaged 5.4% in Q1 2018. This represents a 1.3% decrease in the unemployment rate as compared with Q1 2017, when it was 6.7%. The state of Ohio averaged 4.7%, while the U.S. averaged 4.3%, in Q1 2018.

Source: Current Population Survey (CPS), a survey of 60,000 households nationwide.

NORTHEAST OHIO TOTAL EMPLOYMENT (NOT SEASONALLY ADJUSTED)

2017

OHIO UTICA WELL ACTIVITY (NON-CUMULATIVE)

GRP PROJECTED TO REACH $238.5 BILLIONFor the 18 counties of Northeast Ohio, Moody’s Economy.com is projecting growth at 2.3% in 2018, with GRP at $238.5 billion. Data for 2018 is subject to 12 to 18 months of revisions. Source: Moody’s Economy.com

INDUSTRIAL AND OFFICE VACANCY CONTINUE TO TREND DOWNIn Q3 2018, the vacancy rate for industrial space is at 3.6%, while the vacancy rate for office space is at 6.9% – its lowest since Team NEO began tracking in Q1 2008.About 577 million square feet of industrial space and 163 million square feet of office space is currently occupied in Northeast Ohio.

Source: CoStar

OHIO UTICA WELL ACTIVITY (NONCUMULATIVE)This graph shows the status of Utica shale wells originally permitted, drilled and in production for each quarter. Since Q4 2012, when tracking began, 2,725 total permits have been issued, of which 1,850 have been drilled. Of those drilled, 1,030 are currently in production in the state.

Source: Ohio Department of Natural Resources

OFFICE INDUSTRIAL

9%

10%

8%

7%

6%

VAC

AN

CY

RA

TE

5%

4%

3%

Q1

08

Q2

16Q

3 16

Q4

16Q

1 17

Q2

17Q

3 17

Q4

17Q

1 18

Q2

18

Q2

08Q

3 08

Q4

08Q

1 09

Q2

09Q

3 09

Q4

09Q

1 10

Q2

10Q

3 10

Q4

10Q

1 11

Q2

11Q

3 11

Q4

11Q

1 12

Q2

12Q

3 12

Q4

12Q

1 13

Q2

13Q

3 13

Q4

13

Q3

14

Q1

14

Q4

14Q

1 15

Q2

15Q

3 15

Q4

15Q

1 16

Q2

14

NEO

REA

L G

RP

IN B

ILLI

ON

S

AVERAGE ANNUAL GROWTH = 1%REAL GRP

$150

$170

$190

$210

$230

$250

$130

1994

1995

1996

1997

4.4%

4.0% 1.6% 1.3%-2.0% 1.4%

2.1%2.4%

0.6%

-0.8%-0.4%

1998

1999

2000

2002

2003

2004

2010

2011

2001

2006

201

2

2007

2009

201

3

201

4

201

5

201

6

201

7

201

8

2005

-1.5%

3.0%

1.4% 0.7% 0.4%2.8% 0.2% 1.3%

2008

3.3%

2.3%

0

DRILLEDPERMITTED PRODUCING WELLS

250 1200

0

200

150

100

50

PER

MIT

TED

/DR

ILLE

D W

ELLS

(N

ON

-CU

MU

LATI

VE)

PRO

DU

CIN

G W

ELLS

(C

UM

ULA

TIV

E)

800

1000

600

400

200

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q41

7

Q1

18

NORTHEAST OHIO INDUSTRIAL AND OFFICE VACANCY

NEO REAL GROSS REGIONAL PRODUCT (GRP) IN BILLIONS

Q2

18

Q3

18

3.0%

-5.3%

3.3%

Q3

18

Team Northeast Ohio uses a number of data sources for the Regional Economic Review. One of the primary sources is Moody’s Economy.com (economy.com) data for Northeast Ohio.

Moody’s Economy.com county-level output, employment and payroll historical data are estimated from several publicly available sources and are summarized into the Team NEO regional footprint. It is important to understand data provided by Economy.com are estimates of economic activity.

Team NEO also uses data from federal and state sources as part of this report. We rely heavily on data from the U.S. Bureau of Labor Statistics (bls.gov) and Ohio’s Labor Market Information (lmi.state.oh.us) for information on wages, unemployment and both general and industry-specific employment.

Industrial and office real estate data for this edition were derived from the CoStar Group. Due to market limits within the CoStar database, historic trend data for the Team NEO region are reflective of 14 of the 18 counties forming the regional footprint. These counties include: Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Richland, Stark, Summit and Trumbull.

SPECIAL THANKS FROM TEAM NEO TO OUR FUNDERS

DATA SOURCES ECONOMIC DEVELOPMENT PARTNERS ACROSS 18 COUNTIES OF NORTHEAST OHIO

Ashland Area Economic Development

Columbiana County Port Authority

Erie County Economic Development Corporation

Geauga Growth Partnership, Inc.

Greater Akron Chamber

Greater Cleveland Partnership

Growth Partnership for Ashtabula County

Huron County Development Council

Lake County Ohio Port & Economic Development Authority

Medina County Economic Development Corporation

Portage Development Board

Richland Community Development Group

Stark Economic Development Board, Inc.

Tuscarawas County Economic Development Corporation

Youngstown/Warren Regional Chamber

Wayne Economic Development Council

For a complete list of funders, visit clevelandplus.com/teamneo/invest-in-us/funders.

Team NEO is a business development organization focused on creating jobs for Northeast Ohio’s residents. In collaboration with our partners, it leads the region’s business attraction efforts, supports business retention and expansion work as Northeast Ohio’s JobsOhio affiliate, accelerates the impact of innovation in the region, and aligns strategies and resources within the economic development network to maximize its impact. In addition, Team NEO provides tools to assist employers in attracting talent to the region.

Team NEO is part of the Northeast Ohio Economic Development network, providing business decision-makers with access to customized solutions that accelerate growth, foster innovation and mitigate risk through a connected and collaborative ecosystem.

ABOUT TEAM NEO AND THE CLEVELAND PLUS 18-COUNTY REGION CONNECT WITH US

AshtabulaLake

Geauga

Portage

Stark

Wayne

SummitMedina

Cuyahoga

Lorain

Ashland

AKRON

CANTON

YOUNGSTOWN

Richland

Huron

Erie

Tuscarawas

Trumbull

Mahoning

Columbiana

CLEVELANDLORAIN

MANSFIELD

1111 Superior Avenue, Suite 1600, Cleveland, OH 44114 • 888.NEO.1411 • clevelandplus.com

occupations in the next 5 years 8,500 healthcare new …blockchain jobs are in software development...

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