Team Northeast Ohio (Team NEO) released the latest edition of the quarterly Cleveland Plus® Economic Review today with a focus on the region’s growing Professional, Scientific and Technical (PS&T) Services sector. GRP for the sector has grown 79% since 1993, outpacing the nation’s average in several industries. Fueling this growth is the region’s strong heritage of invention, a strong base of significant research institutions, and a growing entrepreneurial sector.

1. Our partners include:
Greater Cleveland Partnership
Greater Akron Chamber
Stark Development Board
Team Lorain County
Youngstown-Warren Regional Chamber
Medina County Economic Development Corporation
Cleveland
Plus ®
Economic
Review
June 2009
Volume 3, Issue 2
Growing Professional, Scientific and Technical
Services Sector Generates Opportunity
in Cleveland Plus Region

2. June 2009 | Volume 3, Issue 2
Continued Growth in Professional, Scientific
and Technical Services Sector
In the September 2007 edition of the Northeast Ohio Economic Review, we reviewed the sectors
that accounted for the 30% growth in Gross Regional Product (GRP) from 1992–2007. As evidenced
by the chart below, several sectors had significantly grown in that time, including Professional,
Scientific and Technical (PS&T) Services, which grew 74%.
While it is expected that PS&T
would grow due to global Real GRP Change : 1992-2007
advances in technology, such Billions (2006 Dollars)
significant growth in Northeast
Ohio may be surprising because of Real Estate, 58%
Rental & Leasing
our strong industrial manufacturing All Other Industries 22%
base. This prompted further 60%
Finance & Insurance
exploration into this sector.
Retail Trade 56%
This report investigates this sector Wholesale Trade 51%
to better understand the factors Prof, Sci &
Tech Services
74%
that are driving such remarkable Health Care &
Social Asst
38%
growth in the Cleveland Plus region. Information 64%
Management of 88%
Companies/Entps
Public Aministration 16%
Manufacturing 6%
$0 $5 $10 $15 $20 $25 $30 $35 $40
2007 GRP 1992 GRP
Source : Moody’s Economy.com and
Northeast Ohio Economic Review September 2007
All PS&T Services
Industries are
Growing GRP in Professional, Scientific & Technical Industries
(1993-2008)
Updated for the fifteen years
between 1993 and 2008, the 169%
Scientific R&D
PS&T GRP has grown more than
79%, with growth realized in all Advertising 48%
segments. Several industries, Other Professional, 48%
such as Computer Systems Design, Scientific & Tech
Scientific Research & Develop- Accounting &
Tax Prep
21%
ment, Management, Scientific Scientific & 165%
and Technical Services grew by Tech Consulting
more than 150%. Certainly, these Architectural &
Engineering
38%
service industries are contributing Computer 173%
to diversifying Northeast Ohio’s Systems Design
economy. As the region’s manu- Legal Services 76%
facturing sector is becoming more
advanced with robotics and $0 $500 $1000 $1500 $2000 $2500
automation, and other sectors,
(Millions 2008 $) 1993 2008
such as Biomedical and
Information are growing,
technical services are in Source : Moody’s Economy.com
greater demand.

3. Significant Employment Growth in Many
PS&T Services Sector Industries
Many industries within the PS&T Services Sector have also realized employment growth throughout
the last 15 years. Not only is this sector driving regional growth in GRP, but it also requires a growing, skilled
workforce. Scientific and Technical Consulting employment has grown nearly 100%, while Computer
Systems Design has grown 129%. In total, increases in employment in the PS&T Services Sector account
for more than 21,000, or 21%, of the 99,500 new jobs added to the region between 1993 and 2008.
Employment in Professional, Scientific & Technical Industries
(1993-2008)
81%
Scientific R&D
Advertising
Other Professional,
5%
PS&T Sector
has added
30%
Scientific & Tech
Scientific & 98%
Tech Consulting
Architectural &
Engineering
Computer
-5%
129%
21,000 new
jobs since
Systems Design
Accounting & 12%
Tax Prep
Legal Services 28%
1993.
0 2000 4000 6000 8000 10,000 12,000 14,000 16,000 18,000 20,000
1993 2008
Source : Moody’s Economy.com
Management, Scientific
and Technical Services, and
Computer Systems Design
have both grown by approximately
170% in Northeast Ohio.

4. Why has
Scientific
Research and
Development
Growth in
Northeast Ohio
Significantly
Northeast Ohio PS&T Sector Outpaced U.S.?
Growth Comparable to U.S.
Northeast Ohio has a strong
When compared to the U.S., several industries have heritage of invention, a strong
grown at the same pace, or ahead of, the nation. base of significant research
Management, Scientific and Technical Services and institutions, and a growing
Computer Systems Design have both grown by
entrepreneurial sector.
approximately 170%, similar to U.S. growth in these
With the University of Akron,
industries. Moreover, Northeast Ohio has significantly
outpaced U.S. growth in Legal Services and Scientific Case Western Reserve University
R&D. In addition, Northeast Ohio remains one of the and the Cleveland Clinic’s
nation’s top five legal centers, with leading global firms research investments, Northeast
headquartered here, including Baker Hostetler; Calfee, Ohio is a leader in technology
Halter & Griswold LLP; Jones Day; Squires, Sanders & transfer. According to Dr. Edward
Dempsey LLP; and Thompson Hine. (Ned) Hill, noted economist and
Dean of the Levin College of
Urban affairs at Cleveland State
University, “This sector has grown
GRP Growth in Professional, Scientific & Technical Industries
(NEO vs US,1993-2008)
because of the region’s consis-
tent, patient pattern of investment,
which is continuing to show a
Scientific R&D
return through product innovation.”
Advertising
In fact, Northeast Ohio is home
Other Professional,
Scientific & Tech
to the research centers of
Accounting & many global firms, including
Tax Prep
Sherwin-Williams, Lubrizol,
Scientific &
Tech Consulting Energizer, and Bridgestone,
Architectural &
Engineering
who recently chose Northeast
Computer Ohio for its new $100 million
Systems Design
research center after a
Legal Services
nationwide search in 2008.
0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% Collectively, the investments
and output make Scientific
NEO US
Research and Development
a strong, growing industry in
Source : Moody’s Economy.com the Cleveland Plus Region.

5. NEO Total Employment NEO Total Employment (Not Seasonally Adjusted )
Reflective of World Economy
2.10
2.05
2.00
Because of seasonal patterns, this chart compares total 1.95
(Millions)
employment year over year. 1.90
1.85
There is a typical drop in employment from Q4 to Q1. 1.80
The decline was 4% from Q4 2008 to Q1 2009, only slightly 1.75
2007
2003
2004
2005
2006
2007
2008
2009
2003
2004
2005
2006
2008
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
higher than the decline of 3% that occurred last year.
Overall, total employment in Q1 was down about 4% Q1 Q2 Q3 Q4
from a year ago.
Source : Ohio Labor Market Information (LAUS Data)
NEO Unemployment Rate NEO Quarterly Unemployment Rate
Similar to National Rate
12.0%
11.5%
11.0%
10.5%
10.0%
While the regional unemployment rate has been following 9.5%
the pattern of both the U.S. and Ohio, most recent figures 9.0%
8.5%
indicate that the region is continuing to narrow the gap 8.0%
between Northeast Ohio and the U.S. as a whole. 7.5%
7.0%
The unemployment rate in Northeast Oho increased 6.5%
by 2.85% in Q1 09, bringing the rate to 9.97%. This increase 6.0%
is less than both the state of Ohio (4.03% increase) and 5.5%
5.0%
the U.S. (3.08% increase). 4.5%
4.0%
Q2
Q2
Q2
Q2
Q2
Q2
Q3
Q3
Q3
Q3
Q3
Q3
Q1
Q4
Q1
Q4
Q1
Q4
Q1
Q4
Q1
Q4
Q1
Q4
Q1
2003 2004 2005 2006 2007 2008
NEO 16 counties Ohio U.S.
Source : Ohio Labor Market Information (LAUS Data)
$190
NEO Real GRP Billions (2008 Dollars)
Soft Economy Reflected
$180
$170 2.6%
1.2% 0.3%
(-1.9)% 1.2%
1.8%
2.4% 0.5%
(-1.0%) 0% (-1.1%)
(-5.5%)(-0.7%)
in GRP Projections
4.8%
$160 3.0%
3.8% As expected, GRP for the region in 2009 is estimated to
$150 5.1%
show a moderate decline at 0.7%. In addition, the GRP
$140
$130
was revised downward for 2008 (-5.5% growth), putting
$120
Northeast Ohio in line with the decline in the nation
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
as a whole. As data are updated, these numbers are
Real GRP Average Annual Growth = 0.7%
subject to revision.
Source : Moody’s Economy.com

6. June 2009 | Volume 3, Issue 2
Demand for Industrial NEO Occupied Industrial Space & Vacancy Rate
Space Remains Strong 405 9.5%
Occupied Square Feet (Millions)
400 9.0%
Vacancy Rate
395 8.5%
This graph shows the total amount of industrial
390 8.0%
space occupied by quarter between the first
quarter of 2005 and the first quarter of 2009. 385 7.5%
In the first quarter of 2009, Northeast Ohio had 380 7.0%
a total stock of occupied industrial space greater 375 6.5%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
than 400 million square feet. The Northeast Ohio
2004 2005 2006 2007 2008 09
Industrial vacancy rate was stable at 7.5% in the
first quarter of 2009, remaining steady through Occupied Square Feet Vacancy Rate
the current economic downturn.
Source : CoStar Industrial Data
About Team NEO
Due to market limits within the CoStar database, historic trend data for the
Team NEO advances Northeast Ohio’s economy Team NEO region is defined as 10 of the 16 counties forming the regional
by attracting businesses worldwide to the 16-county footprint. These counties include Ashtabula, Cuyahoga, Geauga, Lake,
Lorain, Medina, Portage, Richland, Stark and Summit.
Cleveland Plus region. The organization is a joint
venture of the region’s largest metro chambers
of commerce. Since 2007, the organization has
attracted 23 new companies, 2,500 new jobs
and more than $75M in annual payroll to
Northeast Ohio, leading to a total regional Cleveland Plus 16-County Region
Lake
Ashtabula
annual impact of $150M. For more information,
visit www.clevelandplusbusiness.com. Cleveland Geauga
Cuyahoga
Lorain Trumbull
Data Sources: Team Northeast Ohio uses a number of data sources for
the Regional Economic Review. One of the primary sources is the Moody’s Summit Portage
Economy.com (www.economy.com) Northeast Ohio modeling system. Medina Akron Youngstown
This firm is the leading independent provider of economic, financial and Mahoning
industry research and data that specializes in national and metropolitan
economic growth forecasts. Moody’s Economy.com county level output, Ashland
Wayne Canton Columbiana
employment and payroll historical data are estimated from several Richland Stark
publicly available sources and are summarized into the Team NEO
regional footprint. It is important to understand data provided by
Carroll
Economy.com are estimates of economic activity.
Team NEO also uses data from federal and state sources as part of the
report. As with Economy.com, the information for the Team NEO footprint
is derived from data reported at either the county or metropolitan level.
We rely heavily on data from the U.S. Bureau of Labor Statistics
(www.bls.gov) and Ohio’s Labor Market Information (www.lmi.state.oh.us)
for information on wages, unemployment and both general and industry-
specific employment. In addition, Team NEO uses data from the Census
(www.census.gov) to track housing-related activity including the
number of single and multifamily permits, as well as their values.
Industrial real estate data for this edition was derived from the CoStar Group.
The CoStar Group is a leading provider of commercial real estate data
throughout the United States, covering more than 58 billion square feet This report made possible through the generous
of property throughout the country. support of Dominion.
737 Bolivar Road, Suite 2000, Cleveland, Ohio 44115
888.NEO.1411 • www.clevelandplusbusiness.com