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Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-2,200
100
200
300
600
1,000
1,800
2,900
3,000
8,200
-3,500 -1,500 500 2,500 4,500 6,500 8,500
Trade, Transportation & Utilities
Government
Other Services
Information
Professional & Business Services
Manufacturing
Educational & Health Services
Mining, Logging & Construction
Financial Activities
Leisure & Hospitality
Number of Jobs
Total jobs vs. unemployment rate
Cleveland
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
850,000
900,000
950,000
1,000,000
1,050,000
1,100,000
2000 2002 2004 2006 2008 2010 2012 2014
Peak: 1,080,614 jobs
2.2%
unemployment rate
total jobs
Industrial employment update
Metro Cleveland . July 2015
• According to the most recent estimates from the BLS, total nonfarm
employment in Cleveland stood at ~1.1 million payrolls, representing
an annualized increase of 15,900 jobs or 1.5 percent. Meanwhile,
unemployment increased 60 basis points year-over-year to 6.0
percent as nearly 5,000 persons entered the labor force.
• Jobs growth among Cleveland’s industrial employment sectors has
been subdued over the last year, recording an annualized net gain of
1,900 jobs or 49 basis points. The largest job gains occurred in the
mining, logging and construction sector, where total employment
increased by 2,900 jobs year-over-year.
• Total U.S. nonfarm employment increased by 223,000 jobs in June
while downward revisions were made to previous months totaling
60,000 jobs. Given the strength of the recent employment reports, the
Federal Reserve is projected to raise interest rates in September for
the first time since 2006.
• U.S. unemployment fell 20 basis points to 5.3 percent, its lowest level
since April 2008. However, there are concerns about the labor force
participation rate, which measures how many Americans are
employed or looking for work. It hit a 37-year low in June.
5.3%U.S. unemployment
2.1%U.S. 12-month job growth
6.0%Cleveland unemployment
1.5%Cleveland 12-month job growth
5.2%Ohio unemployment
1.4%Ohio 12-month job growth
Industrial employment trends (12-month change)
Cleveland
-12.0
-6.0
0.0
6.0
12.0
2011
2012
2013
2014
2015
Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services
Due in part to the effects of manufacturers’ rebuilding inventories, along with
an upward trend in consumer spending, Cleveland’s industrial leasing market
has seen improvement. The region has recorded positive absorption of
industrial space for three consecutive years. The demand picture for the next
few years has also improved, thanks to a growing local economy which
recently surpassed pre-recession manufacturing exports levels.
Demand for modern warehouse space is forecasted to increase distinctly
over the coming year as employers look to add capacity and efficiencies.
Many developers are still wary of speculative construction, so look for most of
this new stock to come online as build-to-suit projects. The average asking
rent in Cleveland has been steadily rising over the last two years and while
further gains are expected over the coming year, Cleveland will remain one of
the most affordable industrial markets in the United States.
Industrial real estate implications
May 2013 May 2014 May 2015
Total Non-farm
Employment
1,037,200
1.0%
1,045,300
0.8%
1,061,200
1.5%
Unemployment Rate 6.6% 6.0% 6.0%
Cleveland Supersectors May 2013 May 2014 May 2015
Mining, Logging & Construction 34,700 0.9% 36,100 4.0% 39,000 8.0%
Manufacturing 124,100 0.3% 124,200 0.1% 125,200 0.8%
Trade, Transportation, & Utilities 181,900 0.4% 183,200 0.7% 181,000 -1.2%
Information 15,100 -1.3% 14,600 -3.3% 14,900 2.1%
Financial Activities 63,200 1.3% 64,900 2.7% 67,900 4.6%
Professional & Business Services 147,300 2.6% 149,700 1.6% 150,300 0.4%
Educational & Health Services 195,300 0.3% 196,000 0.4% 197,800 0.9%
Leisure & Hospitality 99,300 5.9% 100,200 0.9% 108,400 8.2%
Other Services 39,900 -1.0% 39,900 0.0% 40,100 0.5%
Government 136,400 -1.1% 136,500 0.1% 136,600 0.1%
News on the street
Cleveland businesses expanding, contracting, etc.
Employment statistics
Cleveland
Industry employment stratification
Cleveland
Educational &
Health Services,
197,800; 19%
Trade, Transportation
& Utilities,
181,000; 17%
Professional &
Business Services,
150,300; 14%
Government,
136,600; 13%
Manufacturing,
125,200; 12%
Leisure & Hospitality,
108,400; 10%
Financial Activities,
67,900; 6%
Other Services,
40,100; 4%
Mining, Logging &
Construction,
39,000; 4% Information,
14,900; 1%
Andrew Batson
Senior Research Analyst
Great Lakes region
tel +1 216 937 4374
Andrew.Batson@am.jll.com
127 Public Square,
Suite 2410
Cleveland, OH 44114
www.jll.com/cleveland
Cody Brooks
Research Analyst
Great Lakes region
tel +1 513 297 2509
Cody.Brooks@am.jll.com
312 Walnut St,
Suite 3030
Cincinnati, OH 45202
www.jll.com/cincinnati
© 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
De Nora Tech Ι Manufacturing: Expanding
De Nora Tech recently received approval from the Mentor planning commission to build a 130,000-square-foot facility at 6300 Tin Man Road in the eastern suburb.
The company produces electrodes for the electrochemical industry and has nine manufacturing facilities in seven countries. Its current U.S. plant is in Chardon,
where it has been since 1970. The company's U.S. headquarters are in Concord Township. Den Nora plans to be up and running at the new location in 2017.
GOJO Industries Ι Personal Care Products Manufacturing: Expanding
GOJO Industries, the Akron-based maker of Purell hand sanitizer and other hygiene products, is expanding with a deal to occupy the former Rubbermaid
warehouse in Wooster. The company recently announced it agreed to lease 1.3 million square feet of space at the building, 1147 Akron Road, to expand
manufacturing and distribution operations. GOJO said it expects to add 30 to 50 jobs at the Wooster operation within the next year.
Oatey Ι Plumbing & Hardware Wholesalers: Expanding
The Oatey Company, a Cleveland-based manufacturer and distributor of plumbing and related products, plans to start construction of its own 44,000-square-foot
headquarters soon at Emerald Corporate Park on the city’s West Side. John McMillan, Oatey CEO, said in an interview that the two-story headquarters building will
be designed to foster collaboration among different disciplines at the company and the 120 associates in its corporate staff.
PTT Global Chemical Ι Oil & Gas Production: Expanding
PTT, the Thai company behind the proposed $5.7 billion ethane cracker plant in Belmont County says Ohio offered an “aggressive incentive package” to lure the
project to the state. The company and its partner recently confirmed a site in Belmont County for the investment instead of West Virginia or Pennsylvania. The
project is in the feasibility stage. If built, PTT’s ethane cracker complex would take natural gas components and convert them into ethylene and other plastics.
TimkenSteel Ι Steel Production: Expanding
TimkenSteel this month officially opened a technology center at its corporate campus in Canton that the company says will help it develop new steel grades and
clean special bar quality steel. Metallurgists and materials scientists are able to test steel in the dozen labs at the new 20,000-square-foot, $5 million center. In an
release about the company’s first-quarter results, TimkenSteel noted that the new center was focused on improving performance for customers’ applications.
Tremco Group Ι Chemical Manufacturing: Acquisitions
Tremco Group of Beachwood recently acquired Chemtron Manufacturing, a Calgary-based manufacturer of construction adhesives and sealants with annual sales
of about $5 million. The business will operate as Chemtron International and will work closely with the Tremco Commercial Sealants & Waterproofing Division. In
addition to Chemtron’s headquarters and 52,000-square-foot manufacturing plant in Calgary, Alberta, the company has a distribution facility in Edmonton, Alberta.
JLL Americas Research • Cleveland Industrial Employment Update 2

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JLL Cleveland Industrial Employment Update July 2015

  • 1. Sources: JLL Research, Bureau of Labor Statistics Job growth/loss by sector (12-month change) Cleveland -2,200 100 200 300 600 1,000 1,800 2,900 3,000 8,200 -3,500 -1,500 500 2,500 4,500 6,500 8,500 Trade, Transportation & Utilities Government Other Services Information Professional & Business Services Manufacturing Educational & Health Services Mining, Logging & Construction Financial Activities Leisure & Hospitality Number of Jobs Total jobs vs. unemployment rate Cleveland 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 850,000 900,000 950,000 1,000,000 1,050,000 1,100,000 2000 2002 2004 2006 2008 2010 2012 2014 Peak: 1,080,614 jobs 2.2% unemployment rate total jobs Industrial employment update Metro Cleveland . July 2015 • According to the most recent estimates from the BLS, total nonfarm employment in Cleveland stood at ~1.1 million payrolls, representing an annualized increase of 15,900 jobs or 1.5 percent. Meanwhile, unemployment increased 60 basis points year-over-year to 6.0 percent as nearly 5,000 persons entered the labor force. • Jobs growth among Cleveland’s industrial employment sectors has been subdued over the last year, recording an annualized net gain of 1,900 jobs or 49 basis points. The largest job gains occurred in the mining, logging and construction sector, where total employment increased by 2,900 jobs year-over-year. • Total U.S. nonfarm employment increased by 223,000 jobs in June while downward revisions were made to previous months totaling 60,000 jobs. Given the strength of the recent employment reports, the Federal Reserve is projected to raise interest rates in September for the first time since 2006. • U.S. unemployment fell 20 basis points to 5.3 percent, its lowest level since April 2008. However, there are concerns about the labor force participation rate, which measures how many Americans are employed or looking for work. It hit a 37-year low in June. 5.3%U.S. unemployment 2.1%U.S. 12-month job growth 6.0%Cleveland unemployment 1.5%Cleveland 12-month job growth 5.2%Ohio unemployment 1.4%Ohio 12-month job growth Industrial employment trends (12-month change) Cleveland -12.0 -6.0 0.0 6.0 12.0 2011 2012 2013 2014 2015 Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services Due in part to the effects of manufacturers’ rebuilding inventories, along with an upward trend in consumer spending, Cleveland’s industrial leasing market has seen improvement. The region has recorded positive absorption of industrial space for three consecutive years. The demand picture for the next few years has also improved, thanks to a growing local economy which recently surpassed pre-recession manufacturing exports levels. Demand for modern warehouse space is forecasted to increase distinctly over the coming year as employers look to add capacity and efficiencies. Many developers are still wary of speculative construction, so look for most of this new stock to come online as build-to-suit projects. The average asking rent in Cleveland has been steadily rising over the last two years and while further gains are expected over the coming year, Cleveland will remain one of the most affordable industrial markets in the United States. Industrial real estate implications
  • 2. May 2013 May 2014 May 2015 Total Non-farm Employment 1,037,200 1.0% 1,045,300 0.8% 1,061,200 1.5% Unemployment Rate 6.6% 6.0% 6.0% Cleveland Supersectors May 2013 May 2014 May 2015 Mining, Logging & Construction 34,700 0.9% 36,100 4.0% 39,000 8.0% Manufacturing 124,100 0.3% 124,200 0.1% 125,200 0.8% Trade, Transportation, & Utilities 181,900 0.4% 183,200 0.7% 181,000 -1.2% Information 15,100 -1.3% 14,600 -3.3% 14,900 2.1% Financial Activities 63,200 1.3% 64,900 2.7% 67,900 4.6% Professional & Business Services 147,300 2.6% 149,700 1.6% 150,300 0.4% Educational & Health Services 195,300 0.3% 196,000 0.4% 197,800 0.9% Leisure & Hospitality 99,300 5.9% 100,200 0.9% 108,400 8.2% Other Services 39,900 -1.0% 39,900 0.0% 40,100 0.5% Government 136,400 -1.1% 136,500 0.1% 136,600 0.1% News on the street Cleveland businesses expanding, contracting, etc. Employment statistics Cleveland Industry employment stratification Cleveland Educational & Health Services, 197,800; 19% Trade, Transportation & Utilities, 181,000; 17% Professional & Business Services, 150,300; 14% Government, 136,600; 13% Manufacturing, 125,200; 12% Leisure & Hospitality, 108,400; 10% Financial Activities, 67,900; 6% Other Services, 40,100; 4% Mining, Logging & Construction, 39,000; 4% Information, 14,900; 1% Andrew Batson Senior Research Analyst Great Lakes region tel +1 216 937 4374 Andrew.Batson@am.jll.com 127 Public Square, Suite 2410 Cleveland, OH 44114 www.jll.com/cleveland Cody Brooks Research Analyst Great Lakes region tel +1 513 297 2509 Cody.Brooks@am.jll.com 312 Walnut St, Suite 3030 Cincinnati, OH 45202 www.jll.com/cincinnati © 2015 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. De Nora Tech Ι Manufacturing: Expanding De Nora Tech recently received approval from the Mentor planning commission to build a 130,000-square-foot facility at 6300 Tin Man Road in the eastern suburb. The company produces electrodes for the electrochemical industry and has nine manufacturing facilities in seven countries. Its current U.S. plant is in Chardon, where it has been since 1970. The company's U.S. headquarters are in Concord Township. Den Nora plans to be up and running at the new location in 2017. GOJO Industries Ι Personal Care Products Manufacturing: Expanding GOJO Industries, the Akron-based maker of Purell hand sanitizer and other hygiene products, is expanding with a deal to occupy the former Rubbermaid warehouse in Wooster. The company recently announced it agreed to lease 1.3 million square feet of space at the building, 1147 Akron Road, to expand manufacturing and distribution operations. GOJO said it expects to add 30 to 50 jobs at the Wooster operation within the next year. Oatey Ι Plumbing & Hardware Wholesalers: Expanding The Oatey Company, a Cleveland-based manufacturer and distributor of plumbing and related products, plans to start construction of its own 44,000-square-foot headquarters soon at Emerald Corporate Park on the city’s West Side. John McMillan, Oatey CEO, said in an interview that the two-story headquarters building will be designed to foster collaboration among different disciplines at the company and the 120 associates in its corporate staff. PTT Global Chemical Ι Oil & Gas Production: Expanding PTT, the Thai company behind the proposed $5.7 billion ethane cracker plant in Belmont County says Ohio offered an “aggressive incentive package” to lure the project to the state. The company and its partner recently confirmed a site in Belmont County for the investment instead of West Virginia or Pennsylvania. The project is in the feasibility stage. If built, PTT’s ethane cracker complex would take natural gas components and convert them into ethylene and other plastics. TimkenSteel Ι Steel Production: Expanding TimkenSteel this month officially opened a technology center at its corporate campus in Canton that the company says will help it develop new steel grades and clean special bar quality steel. Metallurgists and materials scientists are able to test steel in the dozen labs at the new 20,000-square-foot, $5 million center. In an release about the company’s first-quarter results, TimkenSteel noted that the new center was focused on improving performance for customers’ applications. Tremco Group Ι Chemical Manufacturing: Acquisitions Tremco Group of Beachwood recently acquired Chemtron Manufacturing, a Calgary-based manufacturer of construction adhesives and sealants with annual sales of about $5 million. The business will operate as Chemtron International and will work closely with the Tremco Commercial Sealants & Waterproofing Division. In addition to Chemtron’s headquarters and 52,000-square-foot manufacturing plant in Calgary, Alberta, the company has a distribution facility in Edmonton, Alberta. JLL Americas Research • Cleveland Industrial Employment Update 2