Midwest leading nation in economic recovery

Local economists see positive signs as wages, employment rise in Ohio.

Employee Pat Hogan **NEEDS A CUTLINE FROM THE STORY PLEASE** works on the engine line at the Honda of America Marysville Auto Plant on Wednesday, June 23, 2010. (Columbus Dispatch photo by Jonathan Quilter)

Jonathan Quilter/Staff Photographer Employee Pat Hogan **NEEDS A CUTLINE FROM THE STORY PLEASE** works on the engine line at the Honda of America Marysville Auto Plant on Wednesday, June 23, 2010. (Columbus Dispatch photo by Jonathan Quilter)

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By Steve Bennish, Staff Writer Updated 1:22 PM Tuesday, January 31, 2012

The industrial Midwest is outpacing the nation on economic recovery as companies locate or expand in the region, and business, government and community leaders collaborate better, Huntington Bank CEO Steve Steinour said.

“The Midwest has gone from being one of the hardest hit areas in the recession to being an engine of the nation’s long-awaited recovery,” Steinour told the Detroit Economic Club Monday. The Midwest states served by Columbus-based Huntington Bank (Ohio, Michigan, Indiana, West Virginia, Kentucky and western Pennsylvania) grew faster than the national economy since the recession ended in June 2009, according to the Philadelphia Federal Reserve Board Coincident Activity Index that Steinour cited.

Michigan and Ohio are two of the top 10 states for manufacturing exports, Steinour added.

Local economists also see positive signs for the region. Robert Premus, professor of economics at Wright State University, said the statistics indicate a durable economic recovery in the Midwest. A cheaper dollar has done a great deal to help boost exports by making American products less expensive. Industries are benefiting from restructuring undertaken during the recession, he said.

Richard Stock, director of the University of Dayton’s Business Research Group, said that in the 12 months ending in December, the Cincinnati metro area added 16,100 jobs, 9,400 of those in manufacturing. While the Dayton metro area was essentially stationary in manufacturing the last 12 months — down 600 — it actually gained 2,800 private sector jobs overall, he said.

A “great” example of manufacturing exports is the announcement by Evandale-based GE Aviation of a $12 billion engine order that’s part of an $18 billion agreement between Boeing and Emirates Airline — the largest aircraft order in Boeing’s history, Steinour said.

“The jobs numbers are improving, incomes are up, and so is consumer spending,” Steinour said. “Companies are moving into the Midwest, and while large parts of the rest of the country’s economy are still slumbering, the Midwest economy is demonstrating healthy growth.”

Steinour cited plans for a new Hyundai testing facility in Michigan, a Honda plant near Marysville transforming operations to build a new Acura model, and a steel tube factory in Youngstown that’s being built to supply hardware for new natural gas drilling in eastern Ohio. The resurgent U.S. auto industry is another key driver, with GM reclaiming the title of world’s largest automaker.

Citing U.S. Bureau of Labor Statistics data, Gov. John Kasich’s office said that from January 2011 through December, Ohio ranked No. 9 nationally in jobs growth and ranks as the top job producer in the Midwest.

The governor cited Ohio auto industry wins in 2011 that include $500 million in new investments in Toledo, resulting in 2,800 new and retained jobs; Ford’s Ohio Assembly facility in Avon Lake getting $75 million in investment, retaining 1,400 employees; GM’s Toledo transmission plant getting $198 million investment and retaining 250 jobs; and a powertrain plant in Defiance that will see a $47 million investment to begin making new, fuel-efficient auto engines.

The bank’s analysis said:

• According to the Philadelphia Federal Reserve Board Leading Index, Michigan is one of the top five states in expected economic growth during the six months ending in May 2012 at 10.7 percent. Ohio’s expected economic growth is 2.7 percent. The expected national rate is 1.5 percent.

• Michigan exports grew 37 percent in 2011 and are projected to grow in the 10 percent to 20 percent range in 2012. Huntington Bank’s economic analysis predicts continued but slower growth in Ohio in 2012.

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