Automotive Is Driving Economic Success in Cincinnati

From parts manufacturing to tomorrow’s tech needs, this region’s talent is key to the industry
Cincinnati’s roots in automotive manufacturing run deep, from dominating the horse-drawn carriage market at the turn of the 20th century to becoming an early adopter of the automobile. Companies like CinO, Armleder, Buggycar, and Crane & Breed helped lay the foundation for a thriving automotive sector that is still a leader in economic activity in the region today.
That legacy has evolved into a modern-day ecosystem of Tier 1 and Tier 2 automotive suppliers, advanced manufacturers, and technology innovators that support major OEMs across the Midwest and beyond. The Cincinnati region plays a vital role in the automotive supply chain, with companies specializing in components like electronics, seating systems, drivetrains, and precision machined parts. Strong logistics infrastructure, a skilled workforce, and proximity to major auto plants have helped solidify the region’s position as a strategic hub for suppliers navigating the shift to electric and connected vehicles.
From legacy manufacturers to next-generation suppliers, Cincinnati continues to be a key player in powering the automotive industry’s future.
Looking at the numbers, we see that the automotive industry is worth more than $228B in gross domestic products, employing more than 1.3 million workers across the nation. On a state level, Ohio ranks seventh in the U.S. in general automotive manufacturing employment concentration. Per Business Facilities’ 2024, we see the state is the No. 1 producer of engines, No. 2 producer of transmissions, No. 3 for automotive manufacturing, and No. 4 in the U.S. for EV industry investment.
In the Cincinnati region, the industry accounts for $1.9B in gross regional product (GRP), and Cincinnati stands at more than double the national average when it comes to jobs in motor vehicle and parts manufacturing and touts big names for our locally operated auto manufacturers like Mitsubishi Electric Automotive America, Ford, Bosch, American Battery Solutions, Honeywell Intelligrated, Valeo, Mubea, and many more.
Case Study: Pacific Manufacturing Ohio – Growth Fueled by Location, Talent, and Innovation
Pacific Manufacturing Ohio began operations in Fairfield in 1990 with just 50 employees. Leveraging southwest Ohio’s skilled manufacturing workforce, strategic location, and robust supply chain infrastructure, the company has grown into a critical Tier 1 supplier in the automotive industry.
As demand from major automakers increased and new technologies reshaped the manufacturing landscape, Pacific Manufacturing needed to expand both its capacity and capabilities to remain competitive and continue meeting customer needs efficiently.
The company turned to the strengths of the Cincinnati region, including access to top-tier talent, proximity to OEMs and supportive economic development partnerships to scale its operations.
In 2024, Pacific Manufacturing Ohio announced a nearly $60 million expansion, its ninth major investment in the region since its founding. The expansion includes:
- A new 72,000-square-foot addition
- Renovation of an existing 50,000-square-foot facility
- The creation of 96 new jobs, bringing total employment to nearly 1,000 people
Today, the Fairfield campus stands as Pacific Manufacturing’s largest facility outside of Japan, solidifying its role as a vital contributor to Ohio’s automotive supply chain and a symbol of long-term manufacturing success in the region.
The number of local jobs the automotive industry supplies the people of Greater Cincinnati is 12,738. These numbers greatly exceed the national average of 9,045 (for a region of our size) automotive industry jobs, and the average local earnings of close to $98k, which is on par with the national average.
Cincinnati’s automotive industry is thriving because this region is primed for success by the sheer density of skilled manufacturing workers (such as industrial engineers, machine assemblers, and fabricators) who call the Cincinnati region home. With 96% of U.S. and Canadian auto production located within a one-day drive of Cincinnati, the region is strategically positioned near North America’s automotive corridors.
Ohio boasts the second-largest motor vehicle and parts manufacturing workforce in the nation and the Cincinnati region stands out even further, with a job concentration in this sector that is 2.4x the national average. Industry job postings from 2024 reinforce the region’s strength, with the fastest-growing in-demand skills being process improvement (+27.0%), machining (+26.5%), and continuous improvement processes (+23.4%). These are core competencies for motor vehicle parts manufacturing, which continues to lead the region’s industrial output. Additional high-demand areas include project management, supply chain, lean manufacturing, purchasing, and machinery, further evidence of a skilled, adaptable workforce driving Cincinnati’s automotive sector forward.
Ohio ranks as the #3 Best State for Automotive Manufacturing in Business Facilities’ 2024 rankings, highlighting the state’s leadership in advanced manufacturing, supply chain depth, and automotive innovation. Ohio is the nation’s top producer of engines, second in transmissions, third in overall automotive manufacturing, and fourth for EV industry investment.
Gross regional product (GRP) reached $1.9B in 2024, growing by 5% since 2019 with regional demand currently at $1.5B, 31% of which is met locally. There were some 133 automotive industry businesses located in our region as of 2024, which is a 33% increase from just 5 years prior.
The above numbers do reflect some recent decline in employment, despite business growth in general. But the emergence of cyber-physical systems in transportation and mobility, with electric vehicles a ubiquitous reality and self-driving cars already making appearances on our roadways, paints a rosy picture for our region, which is expected to see industry growth in the coming years. From battery manufacturing to cybersecurity for onboard software systems, the automotive needs of tomorrow will be met by Cincinnati’s skilled labor force.
REDI Cincinnati and JobsOhio are dedicated to our region’s success in a variety of sectors, with business growth and automotive industry employment being a focus area for innovative regional endeavors. Contact one of our team members to learn how to build your automotive future on proven ground in the Cincinnati region.