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Industrial employment trends (12-month change)
Columbus
Industrial employment update
Metro Columbus . April 2015
The Columbus industrial market’s recent vacancy oscillations will soon come
to an end, as new supply will slowly begin to raise vacancy levels. While net
absorption has wobbled over the past three years, it has trended up, causing
vacancy levels to slowly decline below 7.0 percent, yet a number of
speculative projects we expect will cause vacancy to tick upwards.
Industrial employment sectors, meanwhile, have remained sluggish so far this
year, signaling only modest demand growth from local tenants over coming
quarters. However, Columbus will continue to see increased demand from
large, nationally-focused tenants based on the market’s sizeable inventory,
low warehouse costs, and available tax incentives as evidenced with the local
industrial expansions tracked by JLL on page two . The region also provides
many logistical advantages and is expected to see continued jobs in the
transportation sector, with demand favoring big box product with logistics-
friendly amenities such as cross dock capability and direct rail access.
Industrial real estate implications
Sources: Jones Lang LaSalle Research, Bureau of Labor Statistics
5.0%Columbus unemployment
2.3%Columbus12-month job growth
5.5%U.S. unemployment
2.3%U.S. 12-month job growth
• The Columbus metro enjoyed strong jobs growth as of late by adding
23,000 payrolls, annually, according to the latest figures from the BLS.
Total non-farm employment now sits at roughly 1 million jobs.
Meanwhile, unemployment currently stands at 5.0 percent, an increase of
1.1 percent from the previous month.
• The industrial employment sector continues to boom in the Columbus
region, posting an annual net gain of 15,400 jobs according to the latest
data available from the BLS – its greatest expansion since the end of the
recession. Jobs growth was largely led by the Trade, Transportation and
Utilities and Mining, Logging and Construction supersectors, which
enjoyed annual net gains of 7,200 and 5,000 jobs, respectively. The
manufacturing supersector trailed the pack, adding 1,100 jobs, annually.
• Total U.S. nonfarm employment increased by 126,000 jobs in March, the
lowest level since March 2013 and well below economist forecasts of
244,000 jobs. Downward revisions were also made to the January and
February figures, totaling 69,000 jobs.
• U.S. unemployment was unchanged at 5.5 percent and wage growth
remained sluggish as average hourly earnings increased only 2.1 percent
year-over-year, far below the Fed’s goal of 3.5 percent or better.
Total jobs vs. Unemployment rate
Columbus
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
780,000
800,000
820,000
840,000
860,000
880,000
900,000
920,000
940,000
960,000
980,000
1,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Peak: 984,122 jobs
2.8%
Total Employment Unemployment
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
2010
2011
2012
2013
2014
2015
Mining, Logging & Construction Trade, Transportation & Utilities Manufacturing Other Services
Job growth/loss by sector (12-month change)
Columbus
-2,000
-1,300
-1,200
1,100
2,100
2,100
4,000
5,000
6,000
7,200
-4000 -2000 0 2000 4000 6000 8000
Government
Financial Activities
Information
Manufacturing
Leisure & Hospitality
Other Services
Professional & Business Services
Mining and Logging
Educational & Health Services
Trade, Transportation & Utilities
Number of Jobs
© 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.
JLL Americas Research • Columbus Industrial Employment Update 2
News on the street
Columbus businesses expanding, contracting, etc.
Ariel Corp. Ι Electrical, Plumbing & Hardware Wholesalers: Expanding
Ariel Corp. plans to hire as many as 150 new employees at the Central Ohio Aerospace and Technology Center in Licking County. Ariel bought Southgate Corp.'s
speculative industrial project at the park for $3.3 million. The company is expected to begin installation of machinery and equipment in the 659 Kaiser Drive property
by late February with occupancy in early spring. Southgate built the facility under a community reinvestment area incentive deal with the city of Heath.
Axium Plastics Inc. Ι Converted Paper Products Manufacturing: Expanding
Axium Plastics Inc. plans to invest $10.5 million in a second expansion in New Albany. The New Albany City Council approved a 15-year, 100 percent tax abatement
for a second 90,000-square-foot expansion of the plant Axium established at the New Albany International Business Park in 2011. The original facility in the park's
Personal Care and Beauty Campus was 110,000 square feet. The company pledged to create at least 20 new jobs above the 200-plus it has there.
Crane Worldwide Logistics Ι Freight Forwarding Services: Expanding
Crane Worldwide Logistics has doubled staff in Central Ohio with plans to add more, thanks to the region's deep supply chain of foreign automakers and their
suppliers. The Houston-based third-party logistics company has managed a 304,560-square-foot distribution center for Japanese auto-parts maker American Showa
Inc. since December at Rickenbacker Global Logistics Park. The full-service air, ocean, trucking and customs brokerage company operates 108 locations globally.
Hirschvogel Inc. Ι Automobile Parts Manufacturing: Expanding
A German auto supplier is planning a $50.3 million expansion on the south side near where Columbus Castings announced a big expansion last fall. The city will
examine tax incentives for Hirschvogel Inc., which wants to add 65,000 square feet to its operation at 2230 S. Third St. and 37 jobs to its current staff of 322. The
145,000-square-foot complex opened in 1988 and makes cold- and warm-forged steel and aluminum parts for auto manufacturers and Tier One auto suppliers.
Siemens Energy Inc. Ι Motor & Generator Manufacturing: Contracting
A Siemens Energy Inc. (NYSE: SI) plant in Mount Vernon is cutting up to 240 jobs as turbulent prices in the oil and gas industry have impacted another Central Ohio
business. The plant, makes lightweight natural gas turbines and compressor equipment used by power generators and oil and gas companies. The facility has about
900 employees and is one of the Knox County city’s major employers.
Worthington Industries Inc. Ι Steel Service Centers & Other Metal Wholesalers: Contracting
Worthington Industries Inc. (NYSE: WOR) is cutting 555 employees from its work force, including more than 100 in Ohio, and closing a facility in South Carolina.
The Columbus steel processor recently announced that 245 employees in its oil and gas division and 310 employees in its Florence, South Carolina, engineered
cabs facility will lose their jobs as part of its closure. Almost a third of Worthington’s oil and gas work force will lose their jobs as the industry continues to struggle.
Cody Brooks
Research Analyst
tel +1 614 460 4444
Cody.Brooks@am.jll.com
65 E State Street,
Suite 550
Columbus, OH 43215
www.jll.com/columbus
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
February 2013 February 2014 February 2015
Total Non-farm
Employment
968,500
2.2%
990,200
2.2%
1,013,200
2.3%
Unemployment Rate 7.0% 5.9% 5.0%
Columbus Supersectors February 2013 February 2014 February 2015
Mining, Logging and Construction 28,600 2.9% 30,200 5.6% 35,200 16.6%
Manufacturing 68,700 2.7% 69,100 0.6% 70,200 1.6%
Trade, Transportation, & Utilities 182,700 0.7% 185,400 1.5% 192,600 3.9%
Information 18,300 8.9% 18,200 -0.5% 17,000 -6.6%
Financial Activities 75,100 3.6% 75,300 0.3% 74,000 -1.7%
Professional & Business Services 159,300 3.2% 168,900 6.0% 172,900 2.4%
Educational & Health Services 139,700 1.7% 144,900 3.7% 150,900 4.1%
Leisure & Hospitality 93,200 6.0% 93,900 0.8% 96,000 2.2%
Other Services 37,600 4.4% 38,400 2.1% 40,500 5.5%
Government 165,300 -0.9% 165,900 0.4% 163,900 -1.2%
Employment statistics
Columbus
Industry employment stratification
Columbus
Trade, transportation
and Utilities,
192,600, 19%
Professional and
Business Services,
172,900, 17%
Government,
163,900, 16%
Educational and Health
Services,
150,900, 15%
Leisure and Hospitality,
96,000, 10%
Financial Activities,
74,000, 7%
Manufacturing,
70,200, 7%
Other Services,
40,500, 4%
Mining, Logging and
construction,
35,200, 3%
Information,
17,000, 2%

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Columbus JLL Industrial Employment Update April 2015

  • 1. Industrial employment trends (12-month change) Columbus Industrial employment update Metro Columbus . April 2015 The Columbus industrial market’s recent vacancy oscillations will soon come to an end, as new supply will slowly begin to raise vacancy levels. While net absorption has wobbled over the past three years, it has trended up, causing vacancy levels to slowly decline below 7.0 percent, yet a number of speculative projects we expect will cause vacancy to tick upwards. Industrial employment sectors, meanwhile, have remained sluggish so far this year, signaling only modest demand growth from local tenants over coming quarters. However, Columbus will continue to see increased demand from large, nationally-focused tenants based on the market’s sizeable inventory, low warehouse costs, and available tax incentives as evidenced with the local industrial expansions tracked by JLL on page two . The region also provides many logistical advantages and is expected to see continued jobs in the transportation sector, with demand favoring big box product with logistics- friendly amenities such as cross dock capability and direct rail access. Industrial real estate implications Sources: Jones Lang LaSalle Research, Bureau of Labor Statistics 5.0%Columbus unemployment 2.3%Columbus12-month job growth 5.5%U.S. unemployment 2.3%U.S. 12-month job growth • The Columbus metro enjoyed strong jobs growth as of late by adding 23,000 payrolls, annually, according to the latest figures from the BLS. Total non-farm employment now sits at roughly 1 million jobs. Meanwhile, unemployment currently stands at 5.0 percent, an increase of 1.1 percent from the previous month. • The industrial employment sector continues to boom in the Columbus region, posting an annual net gain of 15,400 jobs according to the latest data available from the BLS – its greatest expansion since the end of the recession. Jobs growth was largely led by the Trade, Transportation and Utilities and Mining, Logging and Construction supersectors, which enjoyed annual net gains of 7,200 and 5,000 jobs, respectively. The manufacturing supersector trailed the pack, adding 1,100 jobs, annually. • Total U.S. nonfarm employment increased by 126,000 jobs in March, the lowest level since March 2013 and well below economist forecasts of 244,000 jobs. Downward revisions were also made to the January and February figures, totaling 69,000 jobs. • U.S. unemployment was unchanged at 5.5 percent and wage growth remained sluggish as average hourly earnings increased only 2.1 percent year-over-year, far below the Fed’s goal of 3.5 percent or better. Total jobs vs. Unemployment rate Columbus 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 780,000 800,000 820,000 840,000 860,000 880,000 900,000 920,000 940,000 960,000 980,000 1,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Peak: 984,122 jobs 2.8% Total Employment Unemployment (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 2010 2011 2012 2013 2014 2015 Mining, Logging & Construction Trade, Transportation & Utilities Manufacturing Other Services Job growth/loss by sector (12-month change) Columbus -2,000 -1,300 -1,200 1,100 2,100 2,100 4,000 5,000 6,000 7,200 -4000 -2000 0 2000 4000 6000 8000 Government Financial Activities Information Manufacturing Leisure & Hospitality Other Services Professional & Business Services Mining and Logging Educational & Health Services Trade, Transportation & Utilities Number of Jobs
  • 2. © 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. JLL Americas Research • Columbus Industrial Employment Update 2 News on the street Columbus businesses expanding, contracting, etc. Ariel Corp. Ι Electrical, Plumbing & Hardware Wholesalers: Expanding Ariel Corp. plans to hire as many as 150 new employees at the Central Ohio Aerospace and Technology Center in Licking County. Ariel bought Southgate Corp.'s speculative industrial project at the park for $3.3 million. The company is expected to begin installation of machinery and equipment in the 659 Kaiser Drive property by late February with occupancy in early spring. Southgate built the facility under a community reinvestment area incentive deal with the city of Heath. Axium Plastics Inc. Ι Converted Paper Products Manufacturing: Expanding Axium Plastics Inc. plans to invest $10.5 million in a second expansion in New Albany. The New Albany City Council approved a 15-year, 100 percent tax abatement for a second 90,000-square-foot expansion of the plant Axium established at the New Albany International Business Park in 2011. The original facility in the park's Personal Care and Beauty Campus was 110,000 square feet. The company pledged to create at least 20 new jobs above the 200-plus it has there. Crane Worldwide Logistics Ι Freight Forwarding Services: Expanding Crane Worldwide Logistics has doubled staff in Central Ohio with plans to add more, thanks to the region's deep supply chain of foreign automakers and their suppliers. The Houston-based third-party logistics company has managed a 304,560-square-foot distribution center for Japanese auto-parts maker American Showa Inc. since December at Rickenbacker Global Logistics Park. The full-service air, ocean, trucking and customs brokerage company operates 108 locations globally. Hirschvogel Inc. Ι Automobile Parts Manufacturing: Expanding A German auto supplier is planning a $50.3 million expansion on the south side near where Columbus Castings announced a big expansion last fall. The city will examine tax incentives for Hirschvogel Inc., which wants to add 65,000 square feet to its operation at 2230 S. Third St. and 37 jobs to its current staff of 322. The 145,000-square-foot complex opened in 1988 and makes cold- and warm-forged steel and aluminum parts for auto manufacturers and Tier One auto suppliers. Siemens Energy Inc. Ι Motor & Generator Manufacturing: Contracting A Siemens Energy Inc. (NYSE: SI) plant in Mount Vernon is cutting up to 240 jobs as turbulent prices in the oil and gas industry have impacted another Central Ohio business. The plant, makes lightweight natural gas turbines and compressor equipment used by power generators and oil and gas companies. The facility has about 900 employees and is one of the Knox County city’s major employers. Worthington Industries Inc. Ι Steel Service Centers & Other Metal Wholesalers: Contracting Worthington Industries Inc. (NYSE: WOR) is cutting 555 employees from its work force, including more than 100 in Ohio, and closing a facility in South Carolina. The Columbus steel processor recently announced that 245 employees in its oil and gas division and 310 employees in its Florence, South Carolina, engineered cabs facility will lose their jobs as part of its closure. Almost a third of Worthington’s oil and gas work force will lose their jobs as the industry continues to struggle. Cody Brooks Research Analyst tel +1 614 460 4444 Cody.Brooks@am.jll.com 65 E State Street, Suite 550 Columbus, OH 43215 www.jll.com/columbus 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 February 2013 February 2014 February 2015 Total Non-farm Employment 968,500 2.2% 990,200 2.2% 1,013,200 2.3% Unemployment Rate 7.0% 5.9% 5.0% Columbus Supersectors February 2013 February 2014 February 2015 Mining, Logging and Construction 28,600 2.9% 30,200 5.6% 35,200 16.6% Manufacturing 68,700 2.7% 69,100 0.6% 70,200 1.6% Trade, Transportation, & Utilities 182,700 0.7% 185,400 1.5% 192,600 3.9% Information 18,300 8.9% 18,200 -0.5% 17,000 -6.6% Financial Activities 75,100 3.6% 75,300 0.3% 74,000 -1.7% Professional & Business Services 159,300 3.2% 168,900 6.0% 172,900 2.4% Educational & Health Services 139,700 1.7% 144,900 3.7% 150,900 4.1% Leisure & Hospitality 93,200 6.0% 93,900 0.8% 96,000 2.2% Other Services 37,600 4.4% 38,400 2.1% 40,500 5.5% Government 165,300 -0.9% 165,900 0.4% 163,900 -1.2% Employment statistics Columbus Industry employment stratification Columbus Trade, transportation and Utilities, 192,600, 19% Professional and Business Services, 172,900, 17% Government, 163,900, 16% Educational and Health Services, 150,900, 15% Leisure and Hospitality, 96,000, 10% Financial Activities, 74,000, 7% Manufacturing, 70,200, 7% Other Services, 40,500, 4% Mining, Logging and construction, 35,200, 3% Information, 17,000, 2%