In a Time of Global Opportunity, Where Does Ohio Stack Up Against the Competition?
BY TOM HACH
Recently, CNBC did a study analyzing the income range to be middle class by state. The income analysis included a lower and an upper limit defining 'middle class', as well as the median income, which is the income where half earn above and half earn below. For Ohio, the middle class income range is $41,421 to $124,276, and the median income is $67,769.
Looking further at median income, the National average median income is almost $77,000 placing Ohio, at 41st, far down the list. Included in the nine states lower on the list are Arkansas (48), Louisiana (49) and West Virginia (50), and, additionally, the median income in Ohio (41) is lower than its Midwestern peers: Illinois (18), Wisconsin (26), Indiana (37) and Michigan (38). Strictly using median income as a measure of economic vitality, it does not appear Ohio is doing very well, but there are other factors which come into play to determine economic strength.
To get a better understanding of where Ohio stacks up, especially in light of the Trump tariffs and the ongoing industrial reshoring, Grok, an AI tool, was used to conduct further analysis. The query asked for an overall ranking of the states based on the favorability rating of starting or relocating a business using the following criteria: businesses climate, regulatory burden, cost of living, workforce, education, taxes, transportation and quality of life. For reference, the criteria are defined at the end of the article.
The analysis showed Ohio (20) performing toward the middle of the pack, while the top states were Texas (1), Florida (2), South Dakota (3), Wyoming (4) and North Carolina (5), and the lowest ranked states were California (46), Hawaii (47), New Mexico (48), New Jersey (49) and New York (50). Looking at peer Midwestern states, Ohio performed comparatively well against Michigan (27), Wisconsin (28), Illinois (41) and worse than Indiana (10). Based on the areas evaluated, Ohio performed best in transportation (6), cost of living (9), workforce (13), and education (15), and worst in regulatory burden (28), quality of life (27), taxes (25) and business climate (25).
All of the areas where Ohio performed worst, especially regarding taxes and regulations, are directly controlled by the Governor and the General Assembly. For Ohio to increase its standard of living during this time of global economic opportunity, the Governor and the legislature need to redouble their efforts to revitalize Ohio's economic potential and competitiveness. Without changes in these key areas, Ohio, and its citizens, risks missing out on the greatest economic moment in generations.
As noted above: State ranking criteria defined:
- Business Climate: Reflects ease of doing business, often tied to tax structure and regulatory environment.
- Regulatory Burden: Measures the complexity and restrictiveness of state regulations.
- Cost of Living: Impacts employee recruitment and operational costs.
- Workforce Capabilities: Considers skill levels and availability of labor.
- Education: Evaluates the quality of educational systems, which supports long-term workforce development.
- Taxes: Focuses on overall tax burden and business tax competitiveness.
- Transportation System: Assesses infrastructure for logistics and employee commuting.
- Quality of Life: Encompasses livability factors like crime rates, healthcare, and personal freedoms, which affect employee retention.
