Conducting business for most U.S. companies came to an abrupt stop in mid-March, as governments ordered closed “non-essential” businesses to help stop the spread of the coronavirus.
While many companies can supply goods and services via the Internet, demand for those goods and services initially fell off the table, as buyers wrapped their heads around what the COVID-19 impact entailed.
“Plastics and Polymers are once again taking center stage due COVID” said Bryce Custer, SIOR, CCIM with Ohio River Corridor, LLC. “The once forsaken “single use” plastics are now seen as critical as we fight the pandemic.” said Custer.
“We are beginning to see a variety of plastics and polymer companies looking at the Ohio and West Virginia area to locate due to the impending start of production by Shell Polymers in Spring of 2021.” according to Custer.
“One of the first questions asked by companies is how and where will they find quality workers?” said Custer. “This area is rich with quality workforce and educational opportunities through our nationally known Universities and Community Colleges.”
The so-called Polymer Corridor stretches more than 25 miles, from the University of Akron and its world-renowned National Polymer Innovation Center, south to I70.
Marketing a stretch of I-77 as the Polymer Corridor is led by the Canton Regional Chamber of Commerce, the Akron Regional Chamber and the Stark County Economic Development Board.
The polymer industry is Ohio’s largest trade, with more than 140,000 employees in more than 2,800 companies, according to the Center for Multifunctional Polymer Nanomaterials and Devices (CMPND), located at The Ohio State University.
There are roughly 40 polymers suppliers in or near Canton, according to thomasnet.com, a platform for product servicing and supplier selection for industrial and manufacturing markets.
While polymers already are a major focus of industry and research in northeast Ohio, a project proposed for southeast Ohio is expected to attract even more related companies.
“The (ethane) cracker plant is an absolutely fantastic opportunity for this region,” according to Ray Hexamer, president of the Stark Economic Development Board. “Add in the University of Akron, with its world-class polymer research and development facilities, plus the fact we are already close to the supply chain and the customer base, and that is why the Corridor will explode with the cracker.”
The cracker, proposed by PTT Global Chemical America and yet to be determined financial partner, is expected to receive a final investment decision in 2021.
Ohio’s polymer industry has annual shipments of roughly $49 billion, according to Team NEO (Northeast Ohio) Polymer Strategic Opportunity Roadmap (PSOR) and an unpublished McKinsey study, the CMPND reported.
The PSOR estimates the polymer industry in Northeast Ohio alone can create and/or retain 8,000 to 13,000 jobs.
More than $6 billion worth of plastic and rubber products were made in Ohio — the largest volume of such goods among all the states as judged by 2019 Gross Domestic Product data from the U.S. Bureau of Economic Analysis, the Ohio Development Services Agency reported last June.
Factories in Ohio ranked first in manufacturing both plastic products and rubber products based on the latest (2018) Annual Survey of Manufacturers value-added figures from the U.S. Bureau of the Census.
Thirty-one companies on Fortune magazine’s U.S. 1,000 or Global 500 lists have polymers industry operations in Ohio; seven of them have their world headquarters in the state: Cooper Tire & Rubber, Goodyear Tire & Rubber, Hexion, Owens Corning, Parker-Hannifin, PolyOne and Transdigm.
The advantages of locating in Ohio include proximity to customers and suppliers (of both raw materials and production machinery), a well-developed, multimodal transportation network, and a knowledgeable workforce.
Ironically, the coronavirus shutdown came just days after Ohio was named by Site Selection magazine the country’s top state for economic development.
In terms of the total number of projects, Ohio finished second to Texas for the eighth straight year. Ohio had 449 total projects vs. 859 for Texas.
Qualifying projects are those meeting one or more of Site Selection’s criteria: a minimum investment of $1 million, creation of 20 or more new jobs or 20,000 square feet or more of new space. Ohio had 14 towns place in the top 100, more than any other state.
For additional information on facilities and site ready land throughout Ohio and West Virginia, contact Bryce Custer, SIOR, CCIM at (330) 418-9287 or [email protected]