Tuesday, November 3, 2009

Avoiding reality.

Recently, some news was made regarding an article from Site Selection magazine stating Ohio enjoyed the #4 business environment in the country.

I know, I know. Stop laughing.

Despite losing 185,451 jobs in the past 12 months, we're supposed to believe Ohio has the 4th best business environment.

Despite 82,000 completely leaving Ohio's labor force in the past 12 months, we're supposed to believe Ohio has the 4th best business environment.

Now, I'm not sure what data Site Selection magazine specifically uses, and neither do they since the data isn't included in the article. But I've heard from some reliable sources that Ohio governors going back to the Voinovich Administration made Site Selection magazine's rankings a priority and specifically worked to provide them data that would fit nicely into their criterion. And this blurb from the Cleveland Plain Dealer seems to infer the same:
Some question the rankings, wondering whether Ohio is simply more aggressive in gathering statistics on new and expanded businesses.

Last fall, Jeff Finkle, president of the International Economic Development Council, said recognition for landing new business can't mask the fact that Ohio is losing more jobs than it is creating.

And Finkle is right. Rankings like these are all well and good. But results are something completely different.

Ohio is in the midst of a job crisis - a crisis clearly worse than what the country as a whole is facing.

Perhaps if the Governor would have taken a moment during his term to refocus his efforts on job creation rather than the minutia of magazines, Ohio wouldn't be in this mess.


  1. Look up the criteria, which I did when this was first reported. They are so vague as to be meaningless as can be surmised by Ohio being ranked at the top.

    Off the top of my head, an example would be if a company relocates within the state from a 100,000 sq.ft. building to an 80,000, that's consider a new expansion of 80,000 sq.ft. instead of a loss of 20K.

  2. Here they are:

    To be included for analysis, new facilities and expansions must meet one of three
    criteria: (1) involve a capital investment of at least $1 million; (2) create at least 50
    new jobs or (3) add at least 20,000 sq. ft. (1,858 sq. m.) of new floor area.

    See what I mean?

  3. Actually Joe, that's for the Governor's Cup - a different award than what this list is about.

    With that said, Ohio also tends to be near the top, or at the top, of that list.

    But as you point out...it isn't exactly meaningful.


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