Ohio and Michigan are home to 230,000 clean energy jobs, and the category is growing rapidly in both states according to a new study from Clean Jobs Midwest, a think tank.
The study also tells us that the clean transportation sector is the fastest growing economy category in the 12-state region, with both Ohio and Michigan outperforming the regional average.
It would be catastrophic for the auto industry in Ohio and Michigan not to see incredible growth in clean energy transportation. The auto giants with huge presence in these two states have announced nearly $100 billion in capital expenditures by 2025, to be devoted to transitioning to electric vehicle production.
Stellantis and General Motors are both investing $35 billion. Ford is putting $22 billion on EVs while Honda just announced a $4.2 billion Ohio investment. Michigan still leads the nation in car creation, with nearly one in five autos manufactured in our neighbor to the north. More than 90,000 Ohioans make cars or car parts, second only to Michigan.
Internal combustion engine auto employment will fade with the shift to battery-powered electric vehicles. Ohio’s 20,762 workers already employed in clean transportation is good news but should be kept in perspective through measurement against the gasoline-engine-driven industry. The context must also be used to measure Michigan’s nearly 30,000 clean transportation jobs.
As the auto industry shifts to battery-powered vehicles, Ohio and Michigan have both earned multi-billion dollar investments from manufacturers that have been rooted here for decades. There will be a role for the Midwest in clean transportation.
In the category of renewable energy, solar energy is powering much of the job growth. Ohio, thanks to Toledo, leads in job creation. No Midwest state has as many people working in the solar energy industry as Ohio. Of course, within Ohio, the massive manufacturing facilities of First Solar in Wood County are behind the state’s sector-leading status. Now, First Solar, Toledo Solar, and the University of Toledo are teaming on a federally funded research project to produce more power for less cost.
Even in the solar industry, job growth should be considered in the context of employment in the glass industry. Knowhow from glass manufacturing explains Toledo’s leadership position in the solar energy field. It is encouraging to see rapid growth and job creation, but in terms of total employment, the new clean energy jobs are replacements.
The major message from the Clean Jobs Midwest report is that as the economy transitions, Ohio and Michigan are not being left behind, so far. Both states are well positioned to lead the next iteration of multiple manufacturing categories.
Many uncertainties exist while the whole country competes for these new manufacturing jobs. Industry and government must continue to plan to make Ohio and Michigan magnets for the entrepreneurs who will decide where new industry grows. The think tank study is promising, worthy of a high-five, for now.
First Published October 22, 2022, 4:00 a.m.
