Monthly Economic Update | November 2013

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The Columbus Region Monthly Economic Update reports on the job growth progress of Columbus 2020 and its local and regional partners. The update also features the successes of Germany-based automotive parts manufacturer xperion locating the Heath, IT company HMB expanding in Westerville and the 10X startup accelerator companies pitching to investors.

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Monthly Economic Update | November 2013

  1. 1. MONTHLY ECONOMIC UPDATE 2013 NOV 2013 columbusregion.com 614-225-6063
  2. 2. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 PROJECTS NOVEMBER 2013 AND YEAR-TO-DATE NOVEMBER 2013 PERFORMANCE NUMBER OF PROJECTS STARTED (2012 vs. 2013) FIRST-TIME VISITS (2012 vs. 2013) NOVEMBER 2013 12 projects started 15 50 44 12 - 198 year to date 40 3 first time visits 27 27 24 30 25 25 2120 20 18 - 54 year to date 20 11 30 12 18 17 16 9 23 13 15 12 7 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 6 6 5 6 10 10 9 28 20 11 3 6 4 4 8 7 5 4 2 3 6 6 5 4 7 4 3 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2012 2013 CASE STUDY: XPERION xperion, a Germany-based automotive components manufacturer, recently broke ground on a new, 50,000square-foot facility in the Columbus Region to house its first U.S. manufacturing and sales presence. Jobs: 59 created division, xperion's Columbus Region facility will focus on Investment: $6.3 million the production of composite automotive tanks for the Facilities: Manufacturing A subsidiary of Avanco's Energy & Environment (E&E) compressed natural gas (CNG) sector. The facility is located within the Central Ohio Aerospace and Technology Center in Heath. The Region's strong reputation in the manufacturing sector and proximity to key automotive customers were significant factors in xperion's location decision. 1
  3. 3. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 ACTIVE PROJECTS AS OF NOVEMBER 30, 2013 TOTAL ACTIVE PROJECTS (110 PROJECTS) EXPANSION PROJECTS: PROJECTS BY SOURCE EXPANSION PROJECTS: PROJECTS BY SECTOR 35 30 14% EXPANSION PROJECTS: DOMESTIC/INTERNATIONAL 28 16% 25 16 20 45% 15 22% 55% 64% 10 5 1 5 84% 0 Columbus 2020 New Existing Domestic Local ED partners International JobsOhio ATTRACTION PROJECTS: SUSPECTS AND PROSPECTS ATTRACTION PROJECTS: PROJECTS BY SOURCE ATTRACTION PROJECTS: PROJECTS BY SECTOR ATTRACTION PROJECTS: DOMESTIC/INTERNATIONAL 80 70 60 50 3% 7% 35 30 30 48 25 40 20 30 15 12 20 10 10 90% 0 Suspect 15 45% 55% 3 0 Prospect Suspects = Projects identified and qualified via direct dialogue with the company or consultant representing the company. 5 12 Columbus 2020 Local ED partners Domestic International JobsOhio Prospects = Projects qualified, parameters defined and the company or consultant has visited the Region. 2
  4. 4. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 BUSINESS ATTRACTION | DEVELOPMENT ACTIVITIES NOVEMBER 2013 COMPLETED ACTIVITIES Columbus: The 2020 team attended the BioOhio Annual Conference as well as hosted several companies and site selection consultants evaluating the Columbus Region for investment. Germany/UK: The 2020 team met with growing companies in Germany and the United Kingdom who are considering entry into the North American market. Mexico: The 2020 team traveled to Mexico to learn more about the strategies in place to maintain North American competitiveness in manufacturing. DECEMBER 2013 PLANNED ACTIVITIES Charleston Area Development Forum Houston Reinvesting in America Manufacturing Conference BUSINESS DEVELOPMENT MISSIONS: New York, Washington, D.C. 3
  5. 5. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 BUSINESS RETENTION & EXPANSION | NOVEMBER 2013 BUSINESS DEVELOPMENT VISITS CONDUCTED BY LOCATION NOVEMBER 2013 Performance: VISITS CONDUCTED BY SECTOR 12 12 25 Visits in November (374 YTD) 10 8 8 6 Visits conducted by: 10 10 6 8 6 4 4% Columbus 2020 only 4 3 4 4 4 60% 2 2 0 36% 6 5 0 Local ED partner only Both 2020 and LEDO CASE STUDY: HMB, INC. HMB, Inc., an information technology company, is expanding in Westerville as a result of a continued increase to its production service line. The expansion includes adding 75 employees to its current roster of 135 over the next three years, and investing $550,000 in training, software and equipment. HMB offers full-service, on-site, custom technology Jobs: 75 created Investment: $550,000 Facilities: IT office development services and business consulting services. The new jobs represent $5.6 million in new payroll for various IT positions, including designers, developers and strategists. 4
  6. 6. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 BUSINESS CREATION NEW BUSINESS REGISTRATION* BUSINESS DISSOLUTIONS, SURRENDERS, WITHDRAWALS 300 1500 1250 PATENTS BY REGION INVENTORS & ASSIGNEES 1,140 1,207 1,114 1000 85 83 72 199 200 1,020 84 250 176 170 165 38 150 30 28 100 20 750 50 500 0 Jul Aug Sep Oct Jul Aug Sep Oct Inventor July Source: Ohio Secretary of State *Note: Registrations are only an indicator of business formation and do not represent actual new businesses. For example, a registration may be filed to reserve a business name or for other reasons in advance of a potential business. Dissolutions, surrenders and withdrawals do not include mergers, consolidations, reinstatements and other changes that may lead to a loss of a business. In addition, not all businesses that close make a filing. August Assignee September October Source: U.S. Patent and Trademark Office CASE STUDY: 10X DEMO DAY On November 15, the ten companies completing the fourth round of the 10X business accelerator program presented to potential investors. Columbus-based Founders Factory took over the 10X program last year from Fisher College of Business and narrowed it to four industries of focus: retail/logistics, data analytics, cybersecurity and education technology. Each team receives $20,000 and goes through 10 weeks of guidance and mentoring before making their investor pitches. Teams that graduated from the first three rounds of 10X have since attracted a cumulative $10 million in investments. 5
  7. 7. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 ECONOMIC DEVELOPMENT NEWS COLUMBUS IN THE NEWS TRANSPORTATION & INFRASTRUCTURE POLICY & ADVOCACY Ohio No. 8 in attracting foreign college students ODOT launches statewide transit study Municipal income tax reform bill passes House On November 6, the Ohio Department of On November 13, the Ohio House of Transportation (ODOT) announced its long -term Representatives passed House Bill 5: Municipal partnering with Ohio's public transit systems to Income Tax Reform Legislation. The bill seeks to strategize for the current and future needs of urban create a more competitive tax environment in Ohio. and rural transportation. The study will help to It has now moved to the Ohio Senate. The Institute of International Education ranks Ohio 8th for the number of international college students it draws. Among all U.S. colleges, The Ohio State University ranks 15th in international students. http://bit.ly/1kc7yXz determine the most efficient and cost-effective Columbus claims best financial condition strategies to improve and increase ridership. Civic Federation, a Chicago-based research group, rated The Columbus Chamber strongly supports this bill because it fosters economic growth and helps Columbus as having the best financial condition among the The first survey in a series of surveys was sent out create jobs by reducing the administrative burden country's large cities. the last week of October to current transit-users to on businesses operating in multiple locations http://bit.ly/IOH1EG gather input on their experiences with the systems around the state. If you have any questions about and what could be improved. The study will cover municipal income tax reform, contact Michael Ohio's 28 urban and 33 rural public transit systems. Hartley, the Chamber's VP of Government Columbus a top city for North American trade With more than a third of the metro area's international Relations, at michael_hartley@columbus.org. trade occurring with Mexico and Canada, Columbus was ranked No. 11 among the top North American-trading cities in the U.S. by the Brookings Institution. http://bit.ly/1dQK8tp For all of the latest news, visit: http://columbusregion.com/Media-center/RecentNews.aspx 6
  8. 8. COLUMBUS 2020 MONTHLY UPDATE | NOVEMBER 2013 REGIONAL ECONOMIC DATA NUMBER EMPLOYED AND UNEMPLOYMENT RATE (October 2013) NUMBER OF WEEKLY UNEMPLOYMENT CLAIMS (WEEK ENDING 9/7/13 TO WEEK ENDING 11/30/13) Continuing 7.3% (+1.1) Madison 18,790 (-8) 6.5% (+0.9) Franklin 590,114 (-264) 8.1% (+0.9) Pickaway 22,630 (-10) 1,400 12,000 1,200 11,000 1,000 7.3% (+1.3) Licking 79,801 (-35) 6.7% (+0.7) Fairfield 70,638 (-31) 11/30 11/23 11/16 11/9 0 11/2 200 10/26 400 7,000 10/19 600 8,000 10/12 800 9,000 6,000 7.2% (+1.1) Knox 27,564 (-324) 10/5 10,000 9/28 6.0% (+0.7) Union 25,801 (-12) 5.6% (+0.8) Delaware 91,824 (-39) 1,600 13,000 7.4% (+1.1) Morrow 16,069 (-8) 1,800 14,000 9/21 8.2% (+1.0) Marion 26,719 (-701) 2,000 15,000 6.7% (+0.5) Logan 21,544 (-78) Number employed residents (Oct 2013) New 16,000 9/14 Change from Oct 2012 to Oct 2013 9/7 Unemployment rate (Oct 2013) Source: Ohio Department of Job and Family Services COMMERCIAL REAL ESTATE (AS OF DECEMBER 2) Use Vacancy Rate Direct Asking Rent (per sf) Office 15.3% 7.8% 10.0% $9.75 2,075 2,032 $3.65 Retail $162K $171K 2,934 2,766 2,597 2,634 $15.96 Industrial HOUSING SALES Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics, Seasonally Adjusted New Listings In Contracts Oct 2012 Source: Xceligent Closed Sales Average Sales Price Oct 2013 Source: Columbus Board of Realtors 7

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