The Columbus industrial employment market is experiencing modest growth despite overall sluggishness, with a net gain of 4,400 jobs driven by trade, transportation, and utilities. The region has a low unemployment rate of 3.7% and is attracting large tenants due to its favorable logistics and tax incentives, although vacancy levels are expected to rise as new supply enters the market. Notable expansions include Benchmark Education, Fuyao Group, and Honda, while companies like Exel and Commercial Vehicle Group are planning layoffs.

1. Industrial employment trends (12-month change)
Columbus
Industrial employment update
Metro Columbus . February 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
3.7%Columbus unemployment
0.8%Columbus12-month job growth
5.7%U.S. unemployment
2.3%U.S. 12-month job growth
• The Columbus metro saw modest job growth according to the latest
figures from the BLS, adding 8,300 payrolls, annually. Total non-farm
employment now sits at roughly 1 million jobs. Meanwhile,
unemployment remains virtually unchanged from the previous month at
3.7 percent, one of the lowest in the U.S.
• The industrial employment sector continues its drive of modest, steady
growth, posting an annual net gain of 4,400 jobs according to the latest
data from the BLS. Employment gains were largely spurred by trade,
transportation and utilities, which posted an annual net gain of 2,500
jobs. Meanwhile, the manufacturing supersector trailed the pack, posting
virtually zero annual net job gains or losses.
• Total U.S. nonfarm employment increased by 257,000 jobs in January,
and upward revisions were made to prior months totaling 147,000 jobs.
Gains in January were led by retailers, construction firms and health-care
companies.
• Meanwhile, the U.S. unemployment rate decreased 90 basis points from
the prior year to 5.7 percent, the fifth month in a row below 6.0 percent.
Labor force participation ticked up slightly to 62.9 percent but remains at
its lowest level since 1978.
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
2010
2011
2012
2013
2014
Mining, Logging & Construction Trade, Transportation & Utilities Manufacturing Other Services
Job growth/loss by sector (12-month change)
Columbus
-3,100
-200
0
400
600
900
1,000
1,200
2,500
5,000
-4000 -2000 0 2000 4000 6000
Financial Activities
Information
Manufacturing
Professional & Business Services
Government
Other Services
Mining and Logging
Leisure & Hospitality
Trade, Transportation & Utilities
Educational & Health Services
Number of Jobs
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
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Peak: 951,110 jobs
2.6%
Total Employment Unemployment

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.
Benchmark Education Co. Ι Book Publishers: Expanding
Benchmark Education Co. will set up shop in Groveport following its lease of roughly 346,000 square feet at 6295 Commerce Center Drive. The space became
available in the complex after Avnet Inc. vacated it following a consolidation of its regional operations at CenterPoint Business Park in Obetz last fall. Benchmark, a
New York-based education publisher, plans to hire 49 workers over next three years for a distribution and call center operation it will operate.
Commercial Vehicle Group Ι Automobile Parts Manufacturing: Contracting
Commercial Vehicle Group (NASDAQ: CVGI) is planning to lay off a number of workers at a plant in Oregon that makes interior components for commercial
vehicles. The New Albany-based company recently sent a letter to the Oregon Department of Community Colleges & Workforce Development detailing 117 jobs that
would be affected by the closure — 37 more than initially announced by the company. CVG manufactures cab products and systems for heavy-duty vehicles.
Exel Inc. Ι AWarehousing & Storage: Contracting
Exel Inc. will lay off 278 workers at an Easton-area fulfillment center operated by Thirty-One Gifts LLC. Direct-sales marketer Thirty-One Gifts elected to pull those
operations at 3425 Morse Crossing in-house. Westerville-based Exel hopes to reassign those workers after the change takes effect in mid-April. Exel will continue
providing third-party logistics services to Thirty-One Gifts at facilities in Springfield and on Columbus' west side, where it employs 115 and 65, respectively.
Fuyao Group Ι Glass & Glass Product Manufacturing: Expanding
Fuyao Group has picked the former General Motors plant in Moraine for a North American after-market automotive glass manufacturing facility that will produce 4
million units of glass per year for the North American market, including supplying Columbus-based Safelite Group Inc. This comes in addition to the massive auto
glass facility previously announced for the site. In all, Fuyao will now invest $360 million into the Moraine plant and will have 1,550 jobs.
Honda Motor Co. Ι Automobile Manufacturing: Expanding
Honda Motor Co. (NYSE: HMC) is increasing its focus on advanced powertrain vehicles after revealing yet another investment in its Anna Engine Plant. Honda will
spend $340 million to add a third line dedicated to a new 4-cylinder VTEC turbo engine for use throughout the lineup of vehicles. Production is expected to begin this
year. Anna has been the target of several investments and expansions in the last five years as Honda has brought more production duties to that plant.
Worthington Industries Inc. Ι Steel Service Centers & Other Metal Wholesalers: Expanding
Worthington Industries Inc. (NYSE: WOR) is acquiring New York-based Rome Strip Steel Company Inc. for $55.5 million. The $3.1 billion Columbus manufacturer
recently announced it expects to complete the transaction in January. Rome Strip Steel, with 130 employees, is based in upstate New York and has a warehouse in
Walhalla, South Carolina. It makes cold rolled strip steel for the automotive industry. Worthington Industries has acquired at least 14 companies since 2009.
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
December 2012 December 2013 December 2014
Total Non-farm
Employment
979,400
3.1%
992,600
1.3%
1,000,900
0.8%
Unemployment Rate 5.7% 5.9% 3.7%
Columbus Supersectors December 2012 December 2013 December 2014
Mining, Logging and Construction 29,400 1.7% 32,100 9.2% 33,100 3.1%
Manufacturing 67,300 2.7% 67,300 0.0% 67,300 0.0%
Trade, Transportation, & Utilities 192,300 1.4% 195,400 1.6% 197,900 1.3%
Information 17,700 4.7% 18,300 3.4% 18,100 -1.1%
Financial Activities 74,400 3.9% 75,500 1.5% 72,400 -4.1%
Professional & Business Services 165,300 5.3% 164,200 -0.7% 164,600 0.2%
Educational & Health Services 137,900 2.4% 138,800 0.7% 143,800 3.6%
Leisure & Hospitality 93,400 5.7% 97,500 4.4% 98,700 1.2%
Other Services 37,700 6.8% 37,600 -0.3% 38,500 2.4%
Government 164,000 1.4% 165,900 1.2% 166,500 0.4%
Employment statistics
Columbus
Industry employment stratification
Columbus
Trade, transportation
and Utilities,
197,900, 20%
Government,
166,500, 17%
Professional and
Business Services,
164,600, 16%
Educational and Health
Services,
143,800, 14%
Leisure and Hospitality,
98,700, 10%
Financial Activities,
72,400, 7%
Manufacturing,
67,300, 7%
Other Services,
38,500, 4%
Mining, Logging and
construction,
33,100, 3%
Information,
18,100, 2%