Tracy Jemison, Solon Manufacturing Recognized at GGP Annual Meeting
Geauga County has a fluid economy, with a lot of residents commuting out-of-county to work and fewer people commuting in.
Geauga County has a fluid economy, with a lot of residents commuting out-of-county to work and fewer people commuting in. Geographically, it’s pretty well located, with the neighboring Greater Cleveland area improving significantly.
Geauga also offers an opportunity not only for existing businesses to expand operations, but for new companies to come in, providing quality jobs for residents who are forced to commute to other areas.
That is the conclusion keynote speaker William H. Fruth shared with more than 150 local business owners, government officials and community partner who attended Geauga Growth Partnership’s May 19 virtual annual meeting.
Fruth is president of Policom Corporation, a Palm City, Fla.-based independent economics research firm that has assisted and advised communities in 40 states on how to improve their local economies so the people living and working there can become more prosperous.
“Local economies bear very little resemblance to what is happening on a national basis,” he said, noting the overall economic data suggests Geauga County, analyzed as its own municipality, is on the “low end” when compared to similar municipalities.
Over the last decade, recovery in Geauga’s manufacturing sector — the county’s largest employer — has been “pretty good,” Fruth said, while retailing — the second largest employer — growth has been “somewhat flat.” Health care has been growing at a “brisk pace,” mainly because it is the most subsidized industrial sector in the U.S.
“Local government is interesting because there’s actually been a decline in local government which is highly unusual, but might be fiscally responsible,” said Fruth.
Economies grow in both size and quality, Fruth explained. Geauga has grown in size in two ways: employment and total worker earnings. Its employment rate has grown steadily since the financial crisis of 2007-2009 when compared to the 10 strongest and 10 weakest metropolitan economies.
“It’s obviously not as brisk as the 10 strongest areas, but it certainly isn’t what’s going on in the weakest economies,” he said.
It crawled out of the recession, but the growth of worker earnings is not bad, he added. However, the quality of the county’s economic growth, measured in terms of people’s relative wages adjusted for inflation, has not fared well.
“It matches unfortunately . . . the 10 weakest metropolitan areas,” Fruth said.
In addition, comparing annual earnings to that of the U.S., the county has declined in quality relative to the nation and parallels the 10 weakest areas.
Commuting
According to census and other data, 43% of people — 32,030 —who live in Geauga work in the county while 37% — almost 30,000 people — commute daily to Cuyahoga County and 12% to Lake County.
For those who work in Geauga, only 56% of the people — 32,030 — live in the county while 11% and 9%, respectively, come from Trumbull and Lake counties.
“Now this 56% of the people who work in the county, live in the county, is extremely low,” Fruth said, evidencing a “very fluid” economy. “An economy that has considerable inbound and outbound commuting, and it’s somewhat unusual.”
This is measurable when looking at commuter worker earnings, he said. About $2.7 billion has been earned by outbound commuters from 2002 through 2019, while roughly $1 billion has been earned by workers who commute into Geauga.
In theory, people who work outside the county bring their earnings back to Geauga while those who live outside the county export their earnings.
“So there is a considerable net gain, so to speak, of earnings, of roughly $1.7 billion of what is brought in as opposed to what is taken out,” Fruth said, noting, however, there is a considerable spending trail of commuting workers. “A great deal of spending by a commuter is done in the county in the place of work.”
He estimated that commuting workers account for 55% of the money being brought into the area. Manufacturing is the second largest economic contributor, but outside of that there is minimal contribution by other industrial sectors — the “gasoline for the engine of Geauga County’s economy.”
Targeted Industries
Based on his research, Fruth identified a number of industrial sectors that are expected to utilize technology the most and have rapid growth over the next 10-20 years, and also be primary in nature; that is, businesses that sell their good and services outside the area, thus importing wealth to the community, and pay wages high enough to improve the economic quality of life for more people.
Those sectors are: software publishers; electronic shopping and mail-order houses; computer systems design; management and technical consulting; data processing, hosting and related services; management/headquarters of companies; medical and diagnostic laboratories; scientific research and development services; motor vehicle manufacturing; motor vehicle parts manufacturing; electronic equipment and component manufacturing; general purpose machinery manufacturing; industrial machinery manufacturing; fabricated metal product manufacturing; aerospace product and parts manufacturing; agricultural construction and mining machinery manufacturing; pharmaceutical and medicine manufacturing; electrical equipment manufacturing; medical equipment and supplies manufacturing; and electronic instrument manufacturing.
“Great growth, great wages,” Fruth said of the sectors. “All are projected to grow rapidly over the next 10 and 20 years.”
By 2030, those subsectors are projected to create 3.7 million high-wage jobs and require 2,500 new factories and 150 million square feet of high-tech space. There also will be 8,000 economic development projects.
“An economic development project is a client of your local economic development organization — a group or a company — looking to relocate or looking to expand in the community,” Fruth said. “But they will only go to areas where the necessary economic, geographic assets are available.”
Those assets include large tracts of improved, approved industrial real estate; that is, “shovel ready” industrial land.
“Economic development ultimately is a real estate transaction,” he said, explaining companies need to either purchase an existing building or buy land and construct a building.
“Sewer, water, electric, all the utilities and roadways need to be there,” Fruth said of necessary infrastructure improvements. “They (sites) need to be approved, and that means all zoning and land planning and environmental issues have to be settled. The companies cannot and will not wait . . . for a community to prepare their real estate.”
Other assets include a trained workforce with continuing education and an abundant supply of inexpensive energy.
“All of the industrial 20 that we’ve talked about consume electricity like we drink water,” said Fruth. “They have to have it and it’s a major cost.”
In addition there must be multi-modal transportation systems (highways, roadways, airways and waterways), highest speed broadband, low property taxes (abatement) and a community that wants it to happen.
Based on his 20 years of experience, Fruth said the primary characteristic of areas that are growing and improving is a community that wants it to happen. When a community understands the nature of economic development and economic development officials have the support of the political and business communities, and other community leaders, they have a “wonderful opportunity to improve the economic quality of life for the people that live and work in an area,” he said.
“However, I’ve also been to areas where the community does not support economic growth, or any growth of any nature, and that’s a problem,” he added. “And I have found it is simply because they do not understand the importance of quality economic growth and the valuable impact it has.”
Awards
GGP President and CEO Kimm Leininger presented her predecessor Tracy Jemison with the Frank Samuel Distinguished Service Award.
Named in honor of Frank Samuel, a prominent public figure and founder of GGP who died in an automobile accident in 2014, the award was developed to recognize prolonged service and outstanding achievement by a GGP member or company, who through relentless determination, diligence, and dedication, has made significant contributions to enhance the value, quality, effectiveness and stature of the GGP.
Jemison, a former Geauga County auditor and commissioner, Middlefield Village councilman Berkshire Schools Board of Education member, Leadership Geauga County board member, Burton-Middlefield Rotarian and current vice chairman of the University Hospitals Geauga Medical Center board of directors, served as GGP president from Nov. 12, 2013, until his retirement on June 30, 2019.
“You have had so much impact in this community throughout the years, from your involvement in local government to your participation in non-profits, to supporting the growth of businesses in Geauga County,” GGP Chairman John Epprecht said in his virtual tribute to Jemison. “There are countless individuals and organizations who aim to achieve even a fraction of what you’ve accomplished in the name of Geauga County.”
Leininger also presented the inaugural Excellence in Manufacturing Award, in partnership with MAGNET, to Chardon-based Solon Manufacturing for its innovation, resilience, workforce excellence, product design, quality, core competencies and lean manufacturing during particularly challenging times.
