Jobs growth among industrial employment sectors in Cleveland has been trending up in recent months, recording an annualized net gain of 5,700 jobs across the metro. Employment gains were led by the mining, logging and construction sector, which added 5,900 jobs year-over-year.

1. Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-700
-700
-600
-400
-300
0
800
4,800
4,900
5,900
-2,000 0 2,000 4,000 6,000
Educational & Health Services
Government
Trade, Transportation & Utilities
Other Services
Information
Financial Activities
Manufacturing
Professional & Business Services
Leisure & Hospitality
Mining, Logging & Construction
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 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Peak: 1,083,529 jobs
3.3%
unemployment rate
total jobs
Metro Cleveland . January 2015
5.4%Cleveland unemployment
1.3%Cleveland 12-month job growth
5.6%U.S. unemployment
2.2%U.S. 12-month job growth
• According to the most recent estimates from the BLS, total non-farm
employment in Cleveland stood at ~1.0 million payrolls, representing
an annualized increase of 13,700 jobs or 1.3 percent. Meanwhile,
unemployment decreased 1.8 percentage points year-over-year to
5.4 percent.
• Jobs growth among industrial employment sectors in Cleveland has been
trending up in recent months, recording an annualized net gain of 5,700
jobs across the metro. Employment gains were led by the mining, logging
and construction sector, which added 5,900 jobs year-over-year.
• Total U.S. nonfarm employment increased by 252,000 jobs in December
and upward revisions were made to prior months totaling 50,000 jobs. Over
2.9 million jobs were added over 2014, making it America's best year of job
growth since 1999.
• Meanwhile, U.S. unemployment decreased 20 basis points to 5.6 percent,
its lowest rate in six years. Leading economists are now forecasting
unemployment to shrink to 5.2 percent, approximately “full employment,” by
the end of 2015.
Industrial employment update
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 is also improved, thanks to a growing local economy which recently
surpassed pre-recession manufacturing exports levels.
Demand growth is expected to be modest, though, as manufacturing
companies bounce back from the recession leaner and more efficient,
requiring less space and employees to produce the same output. While
demand growth will stop rents from falling further, only minimal rent growth, if
any, is expected over the next few years. Vacancy currently sits around 7.0
percent, which will induce some construction over the next 24 months. Look
for these developments to be built-to-suit projects, as developers are still
weary of speculative construction
Industrial real estate implications
Industrial employment trends (12-month change)
Cleveland
-30.0
-20.0
-10.0
0.0
10.0
20.0
2010
2011
2012
2013
2014
Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services

2. November 2012 November 2013 November 2014
Total Non-farm
Employment
1,034,400
1.8%
1,035,700
0.1%
1,049,400
1.3%
Unemployment Rate 6.9% 7.2% 5.4%
Cleveland Supersectors November 2012 November 2013 November 2014
Mining, Logging & Construction 35,200 -1.4% 35,900 2.0% 41,800 16.4%
Manufacturing 124,300 1.3% 124,700 0.3% 125,500 0.6%
Trade, Transportation, & Utilities 185,400 1.9% 186,400 0.5% 185,800 -0.3%
Information 15,300 -1.3% 15,100 -1.3% 14,800 -2.0%
Financial Activities 63,000 1.0% 62,400 -1.0% 62,400 0.0%
Professional & Business Services 147,000 2.8% 147,000 0.0% 151,800 3.3%
Educational & Health Services 197,700 3.2% 198,800 0.6% 198,100 -0.4%
Leisure & Hospitality 91,700 5.2% 90,700 -1.1% 95,600 5.4%
Other Services 39,700 -1.5% 40,500 2.0% 40,100 -1.0%
Government 135,100 -0.4% 134,200 -0.7% 133,500 -0.5%
Employment statistics
Cleveland
Industry employment stratification
Cleveland
Educational &
Health Services,
198,100, 19%
Trade, Transportation
& Utilities,
185,800, 18%
Professional &
Business Services,
151,800, 14%
Government,
133,500, 13%
Manufacturing,
125,500 , 12%
Leisure & Hospitality,
95,600, 9%
Financial Activities,
62,400 , 6%
Mining, Logging &
Construction,
41,800, 4%
Other Services,
40,100, 4% Information,
14,800, 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
Robert Kramp
Senior Vice President – Americas
Midwest & Great Lakes Research Director
tel +1 312 228 2470
Robert.Kramp@am.jll.com
200 East Randolph Street,
47th Floor
Chicago, IL 60601
www.us.joneslanglasalle.com/research
© 2014 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.
JLL Americas Research • Cleveland Industrial Employment Update 2
News on the street
Cleveland businesses expanding, contracting, etc.
Cardinal Fasteners Ι Fabricated Metal Product Manufacturing: Ceasing Operations
Once the darling of the U.S. wind energy industry and a success story that made it a presidential photo op, Bedford Heights-based Cardinal Fasteners is now set to
close. Parent company Dokka Fasteners recently announced that it will close Cardinal by the end of the first quarter and move its equipment to Dokka’s operations
in Auburn Hills, Michigan. Dokka Fasteners, part of the German-based Wurth Group, purchased Cardinal in 2011 following a Chapter 11 bankruptcy filing.
Ford Motor Company Ι Automobile Manufacturing: Capital Investment
The Ford Motor Company (NYSE: F) remains on schedule to start manufacturing the 2.0-liter EcoBoost engine in Brook Park by early January. The resurging
automaker is in the midst of more than $200 million in renovations to its Cleveland Engine Plant No. 1 and adding at least 450 workers. EcoBoost engines use
directly injected fuel and turbo-charged air for extra power. They're replacing bigger, less efficient engines in Edges, Fusions.
Heinen's Grocery Stores Ι Grocery Stores & Supermarkets: Expanding
Demolition crews are clearing the future home of Heinen's $9 million expanded bakery, meat-cutting facility and prepared foods kitchens in Warrensville Heights, just
west of the grocer's current warehouses. Scheduled for completion in early 2016, the 70,000-square-foot food production facility will be more efficient than Heinen's
current buildings, enable the company to offer products it doesn't have the space for now, and provide full-time jobs for another 20 to 25 people.
Industrial Realty Group Ι Commercial Real Estate: Development
Demolition recently began on the shuttered Randall Park Mall. The Industrial Realty Group, which purchased the property in 2013, is razing the mall to make way for
an industrial park which could bring 1.2 million square feet of new construction to the 100-acre site near Interstates 480 and 271. Randall Park is the first mall in
Industrial Realty’s sprawling portfolio, which includes former corporate headquarters, manufacturing facilities and smaller industrial properties in Ohio and Michigan.
Plymouth Industrial REIT Ι Commercial Real Estate: Capital Markets
Boston-based Plymouth Industrial REIT recently purchased the 255,000-square-foot warehouse at 1755 Enterprise Parkway for $15 million ($59 per square foot).
The building was sold by TFPR Enterprise LLC, a unit of Dallas-based Thackeray Partners. Thackeray bought the building in 2006 for $12.3 million. The building
was fully leased at the time of sale. Tenants include Royal Chemical Company and Technoform Glass Insulation.
United States Steel Corporation Ι Commercial Real Estate: Development
United States Steel Corporation (NYSE:X) is laying off 614 workers as it idles its Lorain mill for an undetermined period beginning the first week of March. The
company said the temporary idling is a result of the softening in the energy market. With plummeting oil prices, drillers worldwide have been lowering their
exploration forecasts for 2015. That has meant a slowdown in the demand for the tubular steel made at the Lorain mill.