Linked Deposit Program

In an effort to spur Ohio’s economy, the General Assembly authorized the State Treasury to offer a portion of its overall investment portfolio to local small businesses through the Small Business Linked Deposit Program.  By assisting business owners to obtain below-market interest rates on their business loans, the State Treasurer gives small businesses the opportunity to create jobs without going broke. To learn more about this program, call toll-free at 800-228-1102. 

The program allows a reduced loan interest rate of 3 percent for businesses with fewer than 100 employees.

Manufacturing rebound

More companies are restocking their shelves, with new orders for computers, electronic goods, fabricated metals, chemicals and transportation.

Still, factory production will rise only about 2 percent for the year, down from 3.6 percent last year. And employment continues to shrink...20,000 more jobs will be lost between now and the end of the year.

The pickup will keep the U.S. ahead of China in manufacturing. The U.S. lead is substantial and likely to last for more than a decade. The U.S. has a solid advantage in capital goods, from equipment to make agricultural machinery to aircraft. Moreover, demand for such items is soaring in emerging markets, which are growing faster than markets in the industrialized world.

U.S. manufacturers will reap the benefits, with stronger sales likely to South America...especially Brazil, Argentina and Chile...Northeast Asia, India, the Middle East, eastern Europe and even China itself. The best guess: China won’t pass the U.S. in manufacturing until around 2020. Even then, the U.S. will keep an edge in some sectors.

Sector growth by rank:

Sources: Global Insight,
Kiplinger

Economic Forum Presentation of 10/17/07

Michael Bryan, vice president and economist of the Federal Reserve Bank of Cleveland, was depressed with the numbers he presented to the forum audience with little or no upward movement of the region’s economy. Ohio has experienced the slowest employment growth of all states except Michigan since 2001. Manufacturing activity was stable to increasing, but the other sectors were not picking up the slack. The area’s outlook was for "improvement" which is not an endorsement for growth, although he believes a recovery will occur but he can’t say when.

Richard Stuebi, BP fellow for energy and environmental advancement at the Cleveland Foundation, advocated for Ohio to join 25 other states in establishing a Renewables Portfolio Standard that obligates utilities to supply customers a certain amount of renewable energy resources like wind or solar energy. He pointed out that the U.S. represents about 4 percent of the world’s population, but consumes 25 percent of the world’s oil. Now would be timely to invest in other energy alternatives.

Mentor Chamber Presentation
In June, Ken Mayland, before an audience of the Mentor Chamber, predicted an above-average national growth rate of 3.25 percent for 2007 as the housing slump would be corrected by summer’s end. 
Others are not expecting good news in the housing market until 2009. He predicted that farmers would do very well in 2007 with an expected increase in demand for ethanol and thereby increased corn production.

Another Voice
According to Kiplinger, economic growth nationally will average 2 percent in 2008, the same as 2007.

Akron, Cleveland ports team with Team Neo

The Cleveland-Cuyahoga County Port Authority and the Summit County Port Authority have agreed to work with Team NEO to boost development in Northeast Ohio. Under the agreement, the two port organizations, which sponsor foreign trade zones and issue tax-free bonds used to finance private development, will do joint financings and will expand their services to all 13 counties in Team NEO’s coverage area. They also will share information about companies looking to expand.

Crain’s 4/23/06