Life Sciences are the talk of the town in Cincinnati
A recent article in the Cincinnati Business Courier took a deep dive into what it called “the region’s fastest growing industry,” suggesting that all the pieces are in place for Cincinnati to become the next big hub for industry activity within the coming years. The article’s author was referring to life sciences, an industry REDI Cincinnati has long worked on developing here in the Queen City, so though we were delighted by the investigative coverage, we weren’t surprised.
It’s just a fact that our region does, in fact, have what it takes to claim a sizable stake in life sciences. Our vibrant entrepreneurial ecosystem, partnerships with well-regarded medical institutions, and well-supported talent pipeline for STEM-educated grads from esteemed higher education institutions all work together to forge tomorrow’s innovations today, right here in Cincinnati.
Life sciences is a broad term for research and product development aimed at improving human quality of life. This work spans an extensive range of fields, including everything from health diagnostics to environmental issues. Locally, our region is seeing explosive growth in pharmaceutical manufacturing, biomedical research and technology, medical device manufacturing, diagnostics, and eye care due to the MSA’s extensive research infrastructure and robust public/private research community supporting major companies, research universities and medical institutions.
Regional success in this industry is great news for Cincinnati, as life science jobs are high-growth and high-paying – a major boon to our region’s economic health.
The numbers speak for themselves when it comes to Cincinnati’s strength in life sciences. Our region is home to 1,328 life sciences businesses, representing 47% growth over the last five years, supported by 17,253 jobs — a 15% increase during the same period.
Top Job Growth Areas:
- Irradiation apparatus manufacturing: +489%
- Electromedical & electrotherapeutic apparatus manufacturing: +329%
- Research & development in nanotechnology: +139%
Highest Job Concentration:
- Research & development in physical, engineering, and life sciences
Economic Impact:
- Gross regional product (GRP) in life sciences: $7.4B (85% growth since 2019)
- Regional demand: $4.4B, with 46% produced locally
The life sciences industry in Cincinnati is highly varied, with a wide array of sector activity in the region. Irradiation apparatus manufacturing has seen the most growth (245.93%), followed by electromedical and electrotherapeutic apparatus manufacturing (212.79%), and research and development in nanotechnology (50.26%). There’s substantial growth in diagnostics, too, with in-vitro diagnostic substance manufacturing seeing 47.74% growth and medical laboratory work growing at a rate of 26.10%.
In terms of specialization, work in pharmaceutical preparation manufacturing and medical laboratories rank near the top at an employment concentration of 1.48 and 1.46, respectively. But the sector with the highest employee concentration, 2.17, is ophthalmic goods merchant wholesalers, which has seen a 24.49% increase over the past five years.
Ophthalmic goods merchant wholesalers is an exciting area of opportunity for the Cincinnati region, which possesses a few key advantages when it comes to supporting and growing the eye care industry. For starters, as in so many other industries, the MSA’s geographic location presents an ideal logistics scenario, especially considering ophthalmic manufacturing trends toward large, concentrated facilities in various parts of the country – locally based wholesalers can easily receive products from anywhere.
Cincinnati’s substantial health care sector also presents an ideal scenario for local demand for ophthalmic products and services, as our region has a high density of optometrists, ophthalmologists, optical retailers and other eye care professionals who rely on products from wholesalers. Regionally situated wholesalers can provide fitting services, inventory management, and rapid delivery for a dense customer base due to proximity, and the local concentration of economic activity only strengthens our region’s economy. And this fast, reliable access to products makes our MSA attractive to optometrists and ophthalmologists seeking a profitable area to practice.
There are some key indicators suggesting that our area is, in fact, a burgeoning ophthalmic distribution hub. This is great news, because wholesale distribution jobs are typically well-paying roles that include sales representatives, logistics coordinators, inventory managers, and customer service specialists. Our region is already winning this talent at higher-than-average numbers, attracting well-compensated workers to our region to participate in and grow the local economy.
Expanding to consider Cincinnati’s activity in the eye care sector, we see a robust industry thriving in a strong local economy. In all, there are 3,763 eye care jobs in our region, up 9% from five years ago. This employment is spread across 359 businesses, a 26% increase from 2019. Gross regional product is currently $591M, a number that represents an impressive 47% growth over the past five years, and demand measures at $1.1B, 29% of which is met within the region.
Eye care jobs in the Cincinnati region have seen a significant amount of growth: opticians, dispensing (331 total, up 22% from 2019), ophthalmic medical technicians (264, up 44%), retail salespersons (232, up 9%), and optometrists (230, up 29%). That’s a lot of growth in eye care jobs, and every indication suggests this robust sector is set to see even more growth locally in the coming years.
Cincinnati is the proud home of leading organizations operating in the life sciences industry, including Enable Injections, ThermoFischer Scientific, Diagnostics Your Way, Smithfield Bioscience, and the # 1-ranked Cincinnati Children’s Hospital. And in the eye care space, organizations like EyeMed, Cincinnati Eye Institute, and Hilco Vision are showing strong performance in our supportive economic ecosystem.
Ready to join the region’s fastest growing industry by locating your life sciences organization in Cincinnati? Connect with REDI today for a customized business case!