Q1 2023 ECONOMIC UPDATE
THE COLUMBUS REGION
The Columbus Region is a dynamic 11-county metropolitan area in the midst of unprecedented economic growth. The Region is home to today’s leaders and is at the forefront of the industries of tomorrow, from advanced manufacturing to smart mobility research and development.
Delaware Fairfield Franklin Knox
Licking Logan Madison Marion
Morrow Pickaway Union
BUSINESS ORIENTED OPEN
SMART
INSIGHTS
Population Growth
From 2016 to 2021, Columbus grew at a rate of 4.7%, adding almost 100,000 residents. In contrast, Austin grew at a rate of 14%, adding nearly 300,000 people in five years.
POPULATION GROWTH PAST 5 YEARS TOTAL RESIDENT POPULATION ADDED BY METRO AREA, 2016-2021
Venture Capital Funding
Following national trends, venture capital funding in Columbus has fallen to its lowest point in years, with just $4 million raised by local start-ups in the first quarter of 2023.
TOTAL VENTURE CAPITAL MONEY RAISED BY LOCAL START-UPS ($M)
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Q1 ECONOMIC
300,000 200,000 150,000 100,000 50,000 0 250,000 Austin, TX Nashville, TN Indianapolis, IN Columbus, OH Cincinnati, OH Source: U.S. Census Bureau, Population Estimates 2016-2021 289,618 169,472 89,286 162,933 118,967 97,508 190,804 241,733 66,259 Additional increase needed to be growing at the same rate as Austin Population added 2016-2021
$1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 0 Q1-18 Q2-18Q3-18Q4-18 Q1-19 Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20Q4-20 Q1-21 Q2-21Q3-21Q4-21Q1-22Q2-22Q3-22Q4-22 Q1-23 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 0 Columbus San Francisco
Source: Pitchbook
Q1 ECONOMIC INSIGHTS
Office Construction
In 2022, construction of new office space dropped by more than 50% in the Columbus Metro Area as many companies transitioned to remote or hybrid work models, requiring less permanent space.
OFFICE CONSTRUCTION PER 100SF OF INVENTORY
Industrial Real Estate
The construction pipeline is beginning to slow from record levels to keep up with demand. Warehouse vacancy has also increased in the first quarter to 5.6% in the Region (previously 3.4%) and 6.4% in southeast (Rickenbacker) area (previously 3.5%).
SQUARE FEET OF INDUSTRIAL SPACE UNDER CONSTRUCTION AND COMPLETED IN COLUMBUS MARKET
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4 3.5 3.0 2.5 2.0 1.5 1.0 .5 0
Source: Cushman & Wakefield, U.S. Office MarketBeat Report
Q4-21 Q1-22 Q2-22 Q3-22 Q4-22
Columbus United States
18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 1 2 3 4 2012 1 2 3 4 2014 1 2 3 4 2016 1 2 3 4 2018 1 2 3 4 2020 1 2 3 4 2013 1 2 3 4 2015 1 2 3 4 2017 1 2 3 4 2019 1 2 3 4 2021 1 2 3 4 2022 1 2023
Source: Jones Lang LaSalle
Housing Permits
Housing permit activity increased sharply in March, with more than four times as many permits issued compared to February, ranking Columbus #8 among 35 similarly sized metros. MONTHLY
Labor Force
Rate
Labor force compared to pre-pandemic levels (Feb 2020 to March 2023)
Sources: U.S. Census Bureau, Building Permits Survey
Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics, not seasonally adjusted
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Unemployment
HOUSING PERMITS, COLUMBUS MSA
COLUMBUS REGION
+8,192 MARION 3.84% -1,607 LOGAN 3.57% -453 UNION 2.96% +298 MORROW 4.10% -75 KNOX 3.61% -1,170 DELAWARE 2.96% +2,787 LICKING 3.45% +372 FRANKLIN 3.39% +7,627 PICKAWAY 3.83% -131 FAIRFIELD 3.44% +801 MADISON 3.41% -257 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Jan-21 1,733 1,586 Feb-21Mar-21Apr-21May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23
3.39%
ACTIVE PIPELINE
Advanced Manufacturing
The One Columbus project pipeline remains strong, fueled largely by growth in the semiconductor, life sciences, and EV automotive industries.
58%
of projects are manufacturing
International Opportunities
47%
of pipeline is semiconductor related
27% 9%
of projects are EV related
are international, with 19,260 potential jobs created
Mega-Projects
The average high-impact project would add 1,276 jobs and a total fixed investment of $1.5 billion.
18%
are high-impact projects (over 500 jobs or $500 million in investment)
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Source note: Active pipeline at end of Q1 (March 31, 2023)
Japan 14 projects Belgium 2 projects South Korea 4 projects Netherlands 3 projects Italy 2 projects Germany 7 projects China 7 projects
Australia 2 projects Austria 2 projects UK 3 projects
Q1 PROJECT ANNOUNCEMENTS
6 $131M $67M 1,111
wins
total fixed investment
total jobs created payroll total jobs created
Breakdown by Facility Type
33%
33%
Total manufacturing jobs = 930
Total manufacturing jobs created payroll = $48,915,776
Total R&D jobs = 66
Total R&D jobs created payroll = $8,478,925
Total office jobs = 115
Total office jobs created payroll = $9,150,000
Source: One Columbus, Projects announced January 1, 2023 - March 31, 2023 One Columbus project announcements only; does not encompass all market activity
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Manufacturing: 2
R&D: 2 33% Office: 2
PROJECT WINS
Grange
Grange Insurance is expanding its research and development operations by investing in market research and commercializing new products and services to grow and future-proof the industry. It will grow its R&D capacity with planned assistance from a $1 million Research and Development Center Grant from JobsOhio.
Western Alliance
Western Alliance Bank, the primary subsidiary of Western Alliance Bancorporation, one of the country’s top-performing banks with more than $65 billion in assets, announced an expansion into Westerville, investing $2.2 million and creating 150 jobs for a new technology hub.
Invenergy
Invenergy, a leading privately-held, American-led global developer, owner, and operator of sustainable energy solutions will invest more than $600 million through Illuminate USA to create one of the largest solar panel production facilities in the country. The investment will include a $220 million commitment to acquire and build out a 1.1 million-square-foot building in Pataskala. Once operational, the facility will manufacture high-quality domestic solar panels, creating at least 850 new jobs.
American Nitrile
American Nitrile celebrated the opening of the most advanced U.S. manufacturing facility dedicated to producing nitrile gloves for healthcare, government, and industrial use. The new state-ofthe-art 530,000-square-foot industrial facility located in Grove City, which created 400 new advanced manufacturing jobs, will produce essential medical and non-medical gloves stateside with homegrown Ohio talent while reducing our country’s reliance on and vulnerability to similar supply chain disruptions that we experienced during the pandemic.
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Pathfinder
Pathfinder Product Labs, LLC, a global product management consulting and coaching firm, announced a $5.4 million investment in new payroll, expanding its existing national headquarters in Grandview Heights and creating 40 new jobs by 2025. Pathfinder has nearly quintupled its workforce in the past two years, prompting the expansion.
Alleguard
Alleguard, formerly Fabricated Packaging Materials Inc., announced a $900,000 expansion at its Lancaster location, adding 85 new jobs. With its 2023 rebrand and capability growth, Alleguard positions its Lancaster location as a leader for Midwest sales to meet the volume and diversity of demands with the Region’s rise to becoming a dominant manufacturing and technology hub.
Middle West Spirits
Middle West Spirits, a world-class distillery and award-winning producer of spirits, has announced a multi-year expansion of its distillery, operational facilities and a 14-acre campus, creating 80 new jobs. The expansion makes Middle West Spirits a top 10 grain-to-glass whiskey and spirits producer in the United States overall and the largest distillery in Ohio.
Voyager and Nanoracks
Voyager, Nanoracks, students, researchers, and leaders from The Ohio State University, as well as business and community leaders, recently helped open the temporary home of the George Washington Carver Science Park’s (GWCSP) Starlab terrestrial analog facility. The lab, located in the Agricultural Engineering Building on the Columbus campus, marks the launch of the first-ever science park devoted to space research.
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STRATEGIC INITIATIVES
Across the Columbus Region, public, private, and academic partners are working to inclusively grow our region through important and strategic initiatives.
JPMorgan Chase & the Columbus Urban League
JPMorgan Chase announced a $3 million investment in the Columbus Urban League’s Accelerate Her initiative, a program that will provide education and support, access to capital, and contracting opportunities for 100 women entrepreneurs and business owners to help them scale up and grow.
Coalition for Green Capital (CGC) Announcement
In February, the Coalition for Green Capital announced the formation of strategic partnerships with clean energy community lenders, including the Columbus Region Green Fund, to seek funding from the Environmental Protection Agency’s Greenhouse Gas Reduction Fund to launch a national green bank.
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Zora’s House Groundbreaking
Zora’s House broke ground in February on a new, larger coworking space, the latest effort to ensure that as Columbus grows and attracts new businesses, women of color can share in that prosperity. Zora’s House is Ohio’s only coworking space and leadership incubator for women of color and will occupy a 10,000-square-foot building in Weinland Park.
Whitehall Development Project
A major multi-phase $300 million revitalization project is now underway in Whitehall, creating promises for thousands of jobs and billions of dollars of economic impact. The total development, which also involves a partnership with Central Ohio Community Improvement Corporation (COCIC), spans across 50 acres and will result in the construction of 1,000 residential units for purchase and for rent, including 20% that will be for workforce housing.
Ohio To Work Success
Ohio To Work, a program launched in 2020 by JobsOhio and Governor Mike DeWine to help workers displaced by the pandemic, concluded with strong results and a plan for the future. In Columbus, some 40,000 job seekers were served; 3,000 job seekers received up-training, and 5,000 people were placed in jobs. Workforce development resources will continue through the Columbus Urban League, Goodwill Industries of Columbus, Jewish Family Services, and Columbus-Franklin County OhioMeansJobs.
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columbusregion.com 05-23
