Keep businesses here by making employees happy
By Terry Troy
It’s certainly no secret that Ohio’s economy is dependent on its manufacturing sector. We make things here in Ohio, and as such we’re beginning to take our place as manufacturing’s leading address.
Just how valuable is our manufacturing sector? According to Ryan Augsburger, president of the Ohio Manufacturers’ Association, our state’s seasonally adjusted annual manufacturing GDP yielded a record $124.5 billion, up from $112 billion before the start of the pandemic. At the same time, Ohio manufacturers provide an annual payroll of $42 billion, the highest wages of any Ohio industry sector.
Add those impressive stats to the news this spring of Intel building new microchip facilities in Central Ohio to the tune of at least $20 billion (and maybe much more) and SEMCORP’s announcement last month of a new factory for lithium-ion battery separation film in Sidney—almost $1 billion more while adding another $73 million in annual payroll to manufacturing in our state.
Certainly, we have our current, business-friendly state government to thank for the recent attraction and influx of new manufacturing businesses to our state. Governor Mike DeWine and Lt. Governor Jon Husted have also done a great job of working with local economic development and manufacturing trade organizations to create a team approach to new business attraction.
However, we have to continue to address the issues that concern manufacturers and businesses when they choose a location. Many have chosen Ohio because of its proximity to manufacturing supply chains and other business suppliers as well as our workforce, which boasts one of the strongest work ethics in the nation.
Taxes are an important issue as well. True, many of these businesses have received tax credits for expansion from organizations such as the Ohio Department of Development, which also hands out a variety of bonds, grants and loans. Job creation tax credits provided by The Ohio Tax Credit Authority are a big help as well. Local governments have also done a great job of building incentive packages, too.
But taxes are also an issue on a more personal level. And when it comes to state income and municipal taxes, the issues can be too complex for the average person, as indicated by several Columbus CPAs in this issue. That is especially true when it comes to newer issues like remote working for executives, where the income declared can be split among two or three communities or more.
The bottom line is that we need a more simplified tax structure to keep the new workers and executives heading into our state happy as businesses and manufacturers continue to relocate here. It’s an issue that many people embrace, not just accountants.
Remember, it’s not just about getting people to move here. It’s also about keeping them happy once they are here.