Japan is Ohio’s largest foreign investor in terms of jobs created. According to a 2023 report by JobsOhio, the state’s private economic development corporation, around 73,000 Ohio residents are employed by 860 Japanese companies.
The same report shows that since 2013, Ohio has won more than 100 successful projects from Japanese-owned companies. But what makes the Buckeye State such a popular choice among Japanese investors? JobsOhio lists three reasons.
Thriving economy and business climate
With a Gross State Product (GSP) of $676 billion and budget reserves of over $2.7 billion, Ohio offers Japanese investors long-term economic stability to help grow their businesses. The state’s reputation as a major domestic and international business hub is attributed to Ohio’s dynamic economy,
Aside from the over 800 Japanese companies headquartered in Ohio, the state is also home to 24 Fortune 500 headquarters and 54 Fortune 1000 headquarters.
Favorable tax regime
Ohio offers competitive tax incentives and deductions. These incentives make the state a magnet for both local entrepreneurs and foreign investors. Aside from having the lowest tax rate on new manufacturing in the region, Ohio offers the following pro-business state tax incentives:
- No tangible personal property tax
- No corporate profits or income tax
- No inventory tax
- No tax on products sold outside of Ohio
- No tax on machinery and equipment investments
- No tax on R&D investments
These incentives not only provide immediate financial benefits through deductions but also contribute to long-term wealth-building and investment portfolio diversification.
Abundant & skilled workforce
The state has a labor force of over 5.5 million, one of the largest in the country. Ohio also sees more than 171,700 students graduate from its more than 200 higher education institutions annually. These local educational institutions and universities contribute to the state’s thriving mix of scientific, technological, and entrepreneurial innovation.
Through the years, Japanese businesses have consistently thrived in Ohio due to the state’s strong business climate, diverse set of industries, attractive tax incentives, and skilled and massive workforce.
To learn more about international investment opportunities in the state of Ohio, visit https://www.jobsohio.com