Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Top-Tier Ranking: Ranked #5 in CNBC's "Top States for Business" (2025) and #1 in the Midwest. Infrastructure & Cost: Ranked #1 nationally for infrastructure (4th largest interstate system) and #2 for the cost of doing business (e.g., no corporate income tax, large CAT exemption).

Workforce Skill Gaps: While having a large workforce, continuous need for upskilling to meet the demands of advanced manufacturing and technology sectors (e.g., semiconductor and biomanufacturing).

Innovation Hub Growth: Rapidly growing its technology and innovation ranking (Ranked #6), anchored by major investments like the Intel "Silicon Heartland," drawing new startups and capital.

Rising Recession Risk: Increased economic uncertainty and a heightened risk of recession (median 40% probability for 2025) could dampen business confidence and investment.

Domestic Manufacturing

Advanced Manufacturing Model: Recognized as a national blueprint for rebuilding industrial strength, attracting mega-projects (e.g., Intel's $20B semiconductor facility; Amgen's $1.4B expansion). Talent Pipeline: Large manufacturing workforce (3rd largest in the U.S.) supported by 5 R1 research universities and technical centers for high-level research and training.

Regional GDP Growth: Projected Real Ohio GDP growth (approx. 1.0% for 2025) is forecast to be slower than national projections.

Onshoring Catalyst: Proactive policies and cost advantages are well-positioned to capitalize on the national trend of onshoring/reshoring production for supply chain resilience.

Trade Policy Uncertainty: The manufacturing sector remains vulnerable to new federal trade policies, particularly tariffs, which create uncertainty for long-term planning.

Sustainability Initiatives

Regional Climate Action: Major metropolitan areas (e.g., Columbus) have committed to aggressive climate goals (45% emissions reduction by 2030, carbon neutral by 2050) with detailed action plans. Integrated Planning: Regional planning commissions (MORPC) integrate sustainability with economic development, focusing on public transit, active transportation, and clean energy procurement.

Traditional Energy Legacy: The state still manages a legacy energy infrastructure, making a full and rapid decarbonization a complex and capital-intensive challenge.

EV/Clean Energy Investment: Strategic investments by companies like Honda/LG in EV battery plants provide an immediate economic driver for clean energy manufacturing and jobs.

Land Use Conflict: Efforts to encourage economic development and smart growth may conflict with goals to preserve Ohio farmland, requiring careful policy balance.

Balance of Trade

Export Diversification: Significant exports across various high-value sectors (e.g., automotive, aerospace, machinery, pharmaceuticals, and agriculture). Central Logistics: Excellent infrastructure (#1 in the nation) allows for efficient movement of exports and imports, acting as a crucial central hub for North American trade.

Exposure to US Trade Deficit: As a major manufacturing state, Ohio is implicated in the overall U.S. goods trade deficit, with major trade deficits recorded with key manufacturing partners (e.g., Mexico, China, Taiwan).

Increased Global Engagement: Leveraging its high ranking and FDI success to deepen trade relationships and secure new foreign markets for its manufactured and agricultural goods.

Global Economic Headwinds: Slower global growth and continued high inflation expectations (Core PCE around 2.75%−3.0% in 2025) can reduce demand for Ohio's exports.