Honda drives foreign investment
When it comes to foreign investment, nothing packs a punch like Honda does in Union and Logan counties.
Because of the Japanese automaker, the two counties northwest of Columbus rank No. 1 and 2 in the country in the share of workers employed by foreign-owned companies, according to estimates released last week by the Bureau of Labor Statistics and the Bureau of Economic Analysis.
In Union County, 39.8 percent of employees work for foreign-owned companies. In Logan County, 34.3 percent do.
By comparison, 5.3 percent of Ohio workers and 5 percent of U.S. workers are employed by foreign companies.
This is the first time in 25 years the government has released information on employment in foreignowned businesses, defined in the report as companies with at least one foreigner with at least 10 percent ownership. The report is based on 2012 data.
“That’s a surprise. It’s pretty remarkable. We’re proud of that,” said Eric Phillips, economic development director for Marysville and Union County.
Phillips tracks 21 Japanese employers in Union County. The county also is the home of a research and development operation of Nestle, a Swiss-based food company.
But Honda is the big driver, so to speak, employing nearly 7,000 workers in Union County and nearly 4,000 in neighboring Logan County, according to Columbus 2020, the region’s economic-development arm.
Both counties also are home to other foreign companies that provide parts and supplies to Honda.
Logan County, for example, has Midwest Express Group, a Hondaaffiliated logistics company with about 1,000 workers, and AGC Glass, a Japanese company with about 500 workers.
In Union County, Continental Contitech, a German-based maker of hoses and rubber belts, employs about 400 1 2 3 4 5 6 7 8 9 10
workers.
For Union County, Honda’s presence has resulted in consistently one of the lowest unemployment rates among the state’s 88 counties. In December, the jobless rate was 3.7 percent.
Population growth is now following these jobs and Union County has surpassed Delaware County as the state’s fastest-growing county.
“It took maybe 20 years to really start residential growth,” said Steve Stolte, a Union County commissioner and former county engineer who has tracked Honda’s growth in the region since it began.
Madison County, south of Union and Logan counties, was eighth on the list with 20.2 percent of employment tied to foreign-owned companies. Japanese company Stanley Electric is that county’s biggest employer with about 1,500 employees.
“That’s fantastic. That’s a great fact,” said Kenny Mcdonald, Columbus 2020’s chief economic officer who regularly touts 39.8% 34.3% 29.1% 22.4% 21.5% 20.7% 20.3% 20.2% 19.5% 17.3%
the importance of foreign investment in the region.
The federal report shows nearly 10,000 workers in Union County tied to companies with foreign ownership and about 5,500 in Logan County. Average wages for those jobs totaled $77,483 in Union County, about twice the wages for those who work for U.S. companies.
Cuyahoga and Franklin counties have the most workers in Ohio connected to foreign companies, with about 26,000 workers apiece. In both cases, though, that’s less than 5 percent of total employment.
Honda began making motorcycles in Marysville in 1979. Three years later, it opened an auto plant in Marysville, followed in 1985 by an engine plant in Anna and in 1989 by a second auto plant in East Liberty.
Honda has continued to invest in the region, announcing last fall that it will 175 jobs to its R&D Americas’ Ohio Center in Raymond.
Honda now has about Honda Honda Honda Knauf Insulation Aisin USA Mfg Nucor-yamato Steel Diamler Trucks North America Stanley Electric Husqvarna JBS USA
Sources: Bureau of Labor Statistics and Bureau of Economic Analysis, Dispatch research
15,000 employees in Ohio, making it the 13th largest employer in the state, according to the Ohio Development Services Agency.
“If Honda were not here, we certainly would have grown slower,” Stolte said.
Honda’s influence is felt beyond Ohio.
The No. 3 county on the list of workers employed by foreign-owned firms, Talladega County in Alabama, also has a Honda plant.
“The impact of Honda is not just in the Midwest, but throughout the country,” Stolte said.
Still, economic-development officials note that too much of a good thing can be a bad if that one company goes through a rough patch.
“We have been blessed to have Honda here,” Stolte said. “By the same token, we’d rather have an economy that is diversified further so we’re not so reliant on the automotive industry.”
mawilliams@dispatch.com @Bizmarkwilliams