Ohio's Economic Performance and Manufacturing Sector Overview
Ohio ranks 7th in GDP among states, with a 8.7% increase in 2021. However, its growth has lagged behind the U.S. average. Manufacturing plays a significant role in Ohio's economy, exceeding the U.S. average in industry shares. The state's GDP growth has been slower than the national average over the past decade. Insights into Ohio's economic landscape and manufacturing sector are provided based on GDP data and industry shares.
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Ohio Gross Domestic Product (GDP) Legislative Budget Office lsc.ohio.gov lsc.ohio.gov
Ohios economy ranks 7thlargest among states 2021 Gross Domestic Product (GDP) by State Ohio s GDP, the broadest measure of economic production, increased 8.7% in 2021 from 2020. Of Ohio s neighbors, only Pennsylvania ranked higher for total GDP or on a per-capita basis in 2021. In nominal terms (i.e., not adjusted for inflation), Ohio s economy grew mostly at a slower rate (3.4%) than the U.S. as a whole (4.0%) during the ten-year period ending in 2021. Over the last decade, average annual nominal economic growth was faster in Indiana (3.8%) and Michigan (3.5%) than in Ohio; and West Virginia had the slowest economic growth of the region (2.5%). Total Amount ($ billions) Per-Capita Amount State Rank Rank U.S. $22,996.1 -- $69,287 -- Ohio $736.4 7 $62,517 26 Neighboring States Pennsylvania $839.4 6 $64,751 23 Michigan $568.4 14 $56,554 35 Indiana $420.3 17 $61,760 30 Kentucky $234.5 28 $52,002 43 West Virginia $87.4 41 $49,017 48 Top Ranked State $3,356.6 California $93,463 New York Source: U.S. Bureau of Economic Analysis lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
Ohio GDP growth has lagged that of the U.S. 15% U.S. GDP Growth Ohio GDP Growth 10.1% 10% 6.6% 6.7%6.0% 5.7%6.3% 6.5% 5.8% 5.7% 4.3%5.4% 4.8% 8.7% 4.6% 4.2% 4.1% 4.1% 4.0% 3.8% 3.7% 3.2% 5% 2.7% 1.8% 5.3% 4.9%4.5% 3.6%4.7% 3.6%4.4% 4.0% 4.0% -2.2% 3.7% 3.4% 3.1% 3.5% 3.3% -1.8% 2.4%2.9% 2.9% 2.9%2.0% 0% 1.1% 1.0% -2.3% -3.1% -5% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: U.S. Bureau of Economic Analysis Average Annual Nominal GDP Growth Rates (1998-2021) Ohio s annual nominal GDP growth has exceeded U.S. annual GDP growth four times between 1998 and 2021. During that period, Ohio s average annual GDP growth was 3.3%, less than the U.S. average of 4.2%, and exceeding only that of Michigan (2.8%), Connecticut (3.2%), and New Mexico (3.2%). Between 1998 and 2021, North Dakota experienced the highest average annual GDP growth (6.1%). State Percent Rank Ohio 3.3% 47 Indiana 3.8% 31 Kentucky 3.4% 43 Michigan 2.8% 50 Pennsylvania 3.7% 35 West Virginia 3.4% 42 lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
Manufacturings share of the economy in Ohio exceeds that in the U.S. as a whole Industry Shares of Gross Domestic Product in 2021 Output of factories accounted for 16% of Ohio s GDP and 11% of the nation s GDP in 2021. With a value of factory output of $117.9 billion in 2021, Ohio was the 4th leading state for that measure, trailing only output in California, Texas, and Illinois. Production of goods were 22% of Ohio s GDP and 18% of U.S. GDP. Private services were 68% of the value of economic activity in Ohio and 70% of that of the nation. Government services accounted for about 11% of Ohio s GDP, less than the U.S. figure of 12%. 18.0 16.0 16.0 United States Ohio 14.0 12.8 12.4 12.1 12.0 10.9 11.1 12.0 10.9 10.6 10.0 8.5 8.5 7.7 7.3 8.0 5.7 5.2 6.0 4.2 3.7 4.0 2.5 2.0 0.0 Source: U.S. Bureau of Economic Analysis lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
Manufacturing has the largest variance in industry shares between Ohio and the U.S. Largest Variances in Industry Shares of GDP Between Ohio and U.S. As a share of GDP, Ohio s factory output was 16.0%, higher than manufacturing factory output for the U.S. of 11.1%, yielding a positive variance of 4.9%. The finance and insurance and health care/social assistance sectors had the next largest industry share positive variances, 2.4% and 1.2%. The sectors with the largest negative variances were information; professional, scientific, and technical services; and real estate/leasing, -3.2%, 2.6%, and -1.9%, respectively. In total, private goods-producing industries were 21.5% of Ohio s GDP compared to 17.6% for the nation s GDP. 6.0% 4.9% 5.0% 4.0% 3.0% 2.4% 2.0% 1.2% 1.0% 0.0% -1.0% -2.0% -1.9% -3.0% -2.6% -3.2% -4.0% Manufacturing Finance and Insurance Health Care/Social Assistance Information Professional, Scientific, Technical Services Real Estate/Leasing Source: U.S. Bureau of Economic Analysis lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
Ohio ranks 9th nationally in the value of exports In 2021, the value of Ohio s exports to foreign countries was the 9th highest among states, accounting for 2.9% of total U.S. exports. Ohio s export value was 6.8% of the state s GDP, lower than the U.S. average of 7.6%. On a per-capita basis, Ohio s exports value of $4,280 ranked 22nd and was lower than the U.S. average per-capita value of $5,287. Canada s purchases were $18.38 billion (36.4%) of Ohio s exports, followed by Mexico, $6.29 billion (12.5%), and China, $3.75 billion (7.4%). High growth rates in 2021 were related to decreased exports in 2020 due to constraints the COVID-19 pandemic placed on trade. Top States in Exports in 2021 2020 2021 % Change 2020-2021 Rank State (in billions) (in billions) Texas 1 $279.3 $375.3 34.4% California 2 $156.1 $175.1 12.2% New York 3 $61.9 $84.9 37.1% Louisiana 4 $59.6 $76.8 28.8% Illinois 5 $53.5 $65.9 23.2% Michigan 6 $44.0 $55.5 26.2% Florida 7 $45.8 $55.5 21.1% Washington 8 $41.3 $53.6 29.9% Ohio 9 $45.0 $50.4 12.0% Sources: U.S. Census; U.S. Bureau of Economic Analysis lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
Industrial machinery and vehicle sectors lead Ohio exports in 2021 Value of Exports by Sector ($ billions) Total Exports Value: $50.4 billion Sector 2021 value % of all exports Industrial Machinery $8.3 16.5% Vehicles and Parts $7.8 15.5% Sectors < $0.1 billion each 12% Aircraft/Spacecraft and Parts $4.1 8.2% Plastics $3.3 6.5% Sectors $0.1 billion to $1 billion each 16% Electric Machinery $3.0 6.0% Oil Seed/Grain $2.2 4.4% Top six sectors 57% The top six production sectors above accounted for $28.5 billion (57.1%) of the total value of Ohio exports. The next six production sectors, exceeding $1 billion each, accounted for $7.8 billion (15.4%) of exports optical/medical instruments ($1.7 billion), iron/steel ($1.5 billion), perfumery and cosmetics ($1.2 billion), and miscellaneous chemicals, soap/waxes/lubricants, and iron/steel products ($1.1 billion each). Sectors between $1 billion and $2 billion each 15% Source: U.S. Census Bureau lsc.ohio.gov lsc.ohio.gov Legislative Budget Office
