COLUMBUS, Ohio, Sept. 28, 2011 /PRNewswire/ -- The auto industry continues to evolve each day to meet challenges brought by globalization and increasing competition. To be competitive, auto leaders must find a location that balances access to resources and markets while also providing low overhead costs for a higher chance of business success. Ohio offers the auto industry world-class automotive supply chain, profitable manufacturing markets and a supportive business environment.
According to Business Facilities Magazine's recently released "Rankings Report 2011," Ohio is No. 2 in the Midwest and among the 10 best states for strength in vehicle manufacturing. The rankings examined the top 10 states for their respective auto-related strengths, including manufacturing facilities and suppliers. The report can be viewed at http://businessfacilities.com/special-report/2011-state-rankings-report/.
Among Ohio's Midwest neighbors, Michigan ranked first in the Midwest (#6 in top 10), followed by Ohio (#7 in top 10) and Indiana (#10 in the top 10).
Ohio leverages its strengths in manufacturing to make the state a global leader that offers motor vehicle manufacturing and supply companies an ideal environment to maximize ROI with industry expertise, a business-friendly climate, a highly skilled workforce and a world-class automotive supply chain to get products to market.
From the processing of raw materials to the creation of finely tuned products, Ohioans serve as the world's experts in manufacturing. "In Ohio, we have brilliance in all kinds of materials that support auto manufacturing from metal stamping and parts production to vehicle assembly," said Eric Burkland, president of the Ohio Manufacturers' Association. "Ohio has all the components that make up an integrated vehicle manufacturing supply chain."
Auto companies must reduce operating costs for a higher chance of business success. Companies located in Ohio benefit from a business-friendly climate, industry expertise and supply chains, while keeping overhead costs down and increasing profits.
In fact, Ohio lawmakers dramatically revamped the state's tax structure over the last five years to create the lowest tax rates in the Midwest and an extremely profit-friendly business climate for companies that locate in the state, despite a national recession that caused several other states to raise taxes. Strategic investments and tax reforms enable Ohio companies to compete – and win – in the 21st century global economy. A recent report by the Quantitative Economics and Statistics Practices (QUEST) of Ernst & Young, in conjunction with the Council On State Taxation (COST), ranks Ohio as third in the nation for friendliest tax environment.
Ohio is at the center of the motor vehicle industry. In 2010, 68 percent of North American light vehicle production took place in Ohio or within 500 miles (805 kilometers) of the state's borders. Second only to Michigan in motor vehicle assembly and parts operation, more than 72,000 people are employed at motor vehicle assembly and parts plants in Ohio.
Leading automakers recognize Ohio's strengths in vehicle manufacturing and have operations in the state. Chrysler is investing $72 million at its Toledo machining plant; General Motors is investing $38 million at its Toledo transmission plant; Honda of America Manufacturing calls Marysville home; and, Ford Motor also has facilities in Ohio.
The state's six high-volume light vehicle plants produced over 1.1 million vehicles in 2010 representing 13 different models totaling one-seventh of U.S. output. These include over 100,000 each of some of the nation's best-sellers: Honda Accord, Honda CR-V, Jeep Wrangler, and Ford Econoline vans.
Ohio's network of tier-1 auto suppliers represents all facets of motor vehicle production, including plastics, metals, instrument control and lighting, ranking second to Michigan among surrounding states. Leading auto suppliers in Ohio include AK Steel Holding, Cooper Tier & Rubber, Dana, Eaton, Goodyear Tire & Rubber, Parker-Hannifin, Thor Industries and Worthington Industries.
According to the Ohio Manufacturers' Association, manufacturing is the largest of the 20 sectors of Ohio's economy with 16.7 percent of total output in 2010. Manufacturing leads Ohio's private sector industry in job creation, with more than 14 percent of all Ohio workers employed in manufacturing.
Ohio's world-class logistics capabilities help vehicle manufacturing companies reduce operating costs by getting components and finished goods quickly to their destination anywhere in the U.S. or around the globe. Ohio's extensive logistics management network supports the state's 21,250 manufacturing companies with multi-modal and inter-modal networks allowing efficient import and export of products.
Auto companies continue to discover the benefits of investing in Ohio, finding a preferred location for capital investment, a competitive business environment and a perfect balance between business pursuits and personal aspirations.
"Ohio's success is not solely dependent on the strength of its business advantages. It's about Ohio's promise of work-life balance," said Ed Burghard, executive director of the Ohio Business Development Coalition, the nonprofit organization that markets the state for capital investment. "Low-cost, low-stress communities and short commutes create the State of Perfect Balance, where you can achieve both professional and personal success without sacrificing one for the other."
About the Ohio Business Development Coalition
The Ohio Business Development Coalition is a nonprofit organization that provides marketing strategy and implementation to support Ohio's economic development efforts. For more information, visit www.ohiomeansbusiness.com.
SOURCE Ohio Business Development Coalition