MANSFIELD — Ned Hill believes there’s a “false dilemma” for manufacturing companies.
Hill, a professor of economic development emeritus at Ohio State University and Cleveland State University, was the featured speaker at the 10th annual economic forecast breakfast Tuesday.
He told a room of about 140 attendees that manufacturers think they either have to “respond to immediate demand or make competitive investments.”
Hill said this isn’t the case — that manufacturers can do both.
“Manufacturing is going through an incredible change right now. This is a new industrial revolution taking place. Existing manufacturers are going to have to manage this transition and get smarter to increase our productivity.”
— Ned Hill, professor of economic development emeritus at Ohio State University and Cleveland State University
The economist also said small companies can be better equipped to integrate traditional tools with new technology in the production process.
“As long as they have access to capital, they should be better positioned to implement these kinds of investments in their operation technologies on the shop floor,” Hill said.
“A small business can manage themselves with a longer horizon in mind than a publicly traded company that has to pay more attention quarter-to-quarter.”
About Dr. Hill
Edward (Ned) Hill holds a Ph.D. in urban and regional planning and economics and a master’s in city planning from the Massachusetts Institute of Technology.
He is also the senior research associate at the Ohio Manufacturing Institute. Hill teaches economic development, state and local public policy and public economics. His current research focuses on digital manufacturing and workforce strategies.
Hill has also served as an economic adviser to Ohio’s Office of Budget and Management and the Ohio Chamber of Commerce. He is a former member of MAGNET — northeast Ohio’s
Partner in the Ohio Manufacturing Extension Partnership.
The Ohio Manufacturers Association’s Board of Directors presented Hill with its Legacy Award in 2005 and again in 2016 for his work on behalf of Ohio’s manufacturers.
Ohio below national average for educational attainment, GDP growth
Also at the economic forecast breakfast Tuesday, North Central State University president Dorey Diab shared new data from the Lumina Foundation on higher education attainment levels and median household incomes.
The percentage of Richland County’s population age 25+ with education post-high school is 29% as of 2023. Richland County ranks 63rd of 88 counties in Ohio in educational attainment.
“Our purpose is to make our community healthier and more prosperous, and the data for that is so very strong,” Diab said. “Delaware County, Ohio is the highest educated in the state and the median household income is $147,000 — more than twice Richland County’s.
“Our population in this area is decreasing, and therefore, employers are screaming for talent.”
Diab also highlighted how chances of unemployment generally decreases and wages earned increase as an individual’s educational attainment increases.
Hill also highlighted some national economic indicators and state statistics.
“In Ohio, we’ve been lagging about half a percent below the national GDP growth rate,” Hill said.
“It’s not because we’re lazier, not because we’re stupider, it’s because our product portfolio is getting old. When that happens, your margins shrink.”
Hill said many manufacturers are able to use capital investment to supplement labor, make better quality products and create products with higher profit margins than the rest of their portfolio.
“One thing I can promise you about manufacturing is that it is going to shrink in the number of jobs, but it’s going to increase drastically in the amount of productivity,” he said. “We have to focus on the right number, which is productivity and wealth created.”
Hill says AI could replace data entry, semi-skilled jobs
The economist warned data entry jobs or even work that doesn’t require specialized training could giveaway to artificial intelligence in the next few years.
“A lot of the IT and data-entry jobs are probably going to disappear,” Hill said. “In manufacturing, the shop floors have been squeezed down as much as they can be, so really the only place where you can optimize AI use is going to be in the back office.
“I think there’s some potential to use AI not to replace workers but to supplement unfilled jobs. Or, using AI for predictive analytics to identify production gaps and machine failures.”
For small manufacturers, Hill recommended keeping an eye on short-term goals and profits but also investigating where technology can help improve productivity and profits.
“They really have to get that long-term focus about saying how am I going to deal with this technology that’s coming down the road, and more importantly, how is it going to affect the long-term prospects for the company?” Hill said.
The economic forecast breakfast is presented annually by the Richland Area Chamber & Economic Development, North Central State College, Destination Mansfield and the Richland County Foundation. Supporting partners included Team NEO, Schmidt Security Pro and The Voegele Historic Lofts.
