Northeast Ohio Poised to Become Major Player in Semiconductor Manufacturing Industry

Northeast Ohio is primed to become a significant contender in the semiconductor manufacturing sector, according to a recent report by Team NEO. The economic review highlights the region's significant employment concentration in industries that supply the semiconductor industry, with 16 out of the top 20 industries in the semiconductor supply chain boasting a high location quotient in the region. The region's iron and steel mills and related alloy manufacturing, for instance, have a location quotient of 5.93, indicating a concentration nearly six times the national average. The semiconductor industry also made purchases worth $112.6 million from the iron and steel mill sector. Other industries with high location quotients include precision turned product manufacturing at 5.44 and bolt, nut, screw, rivet, and washer manufacturing at 5.17. These industries provided goods and services worth $64.7 million and $63.1 million, respectively, in 2022. The report predicts growth in key industries that could serve the semiconductor industry over the next five years. The semiconductor and other electronic components sector is expected to grow by 34%, and the plastic product manufacturing sector by 16% in the Northeast Ohio region. Both growth rates are higher than the national average. Bill Koehler, CEO of Team NEO, believes that Northeast Ohio's dedicated workforce, strong STEM background, suitable sites for semiconductor and supply chain manufacturing, reliable water and power supply, and robust supply chain make the region attractive to companies considering investment in the semiconductor industry. Team NEO, a nonprofit economic development agency, serves 18 counties in northeast Ohio, including Trumbull and Mahoning. The agency publishes its quarterly economic review to provide a comprehensive view of the region's economy and attract new businesses and jobs to the area. Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, echoed Koehler's sentiments, pointing out the region's abundant water, available sites, robust transportation, and manufacturing workforce as attractive features for the industry. In addition to these efforts, a workforce development initiative is underway among universities, including Youngstown State University, and other higher education institutions to ensure an adequate workforce for the industry. The Ohio TechNet Northeast Ohio Semiconductor Workforce Consortium, formed through a gift by Intel, is tasked with developing semiconductor-focused education and workforce programs.