Why Are Companies Relocating to Dayton?

Pro-business policies and other key factors are spurring investments in Southwest Ohio.

By Val Hunt Beerbower on June 21, 2023

Anamedia

Southwest Ohio’s healthy and growing business climate is characterized by its strong pro-business policies, top talent, reliable infrastructure, low utility rates – the list could go on.

When looking for a new location for their U.S. headquarters, Modula leaders say that it was the region’s ease of access to major highways that enticed them to relocate to Dayton. For other manufacturers, like Honda, tax incentives and city support facilitated their project in Fayette County, creating more than 2,000 jobs.

Investing in Dayton and Southwest Ohio

In early 2023, Honda and LG Energy Solution broke ground on a new 2 million-square-foot electric vehicle (EV) battery plant near Jeffersonville.

The facility is scheduled to be completed by the end of 2024, with plans to create 2,200 jobs. The company will deliver lithium-ion batteries with cutting-edge technology to support Honda’s plan to build new quantities of EVs in North America.

“We have talked a lot about the partnership between Honda and LG Energy Solution, but the communities of Southern Ohio are a part of this venture, too, and we see it not so much as a joint venture, but a tri-venture between our companies and the community,” says Honda Joint Venture COO Rick Riggle. “We share similar values and perspectives regarding the relationship we want to have with our new workforce, and this spirit of teamwork will be key to our success.”

JobsOhio, the state’s private nonprofit economic development corporation, nurtured the existing relationship Honda had with Ohio, agreeing to $237 million in assistance payable over the next 10 years for Honda and LG Energy Solution. The agreement awarded three grants: JobsOhio Grant for the battery plant ($140 million), a JobsOhio Workforce Grant ($10 million) and a grant to retool existing facilities ($87 million).

“We know what a project like this means for the community,” says Lt. Gov. Jon Husted. “Doing projects like this is never easy; it takes a lot of collaboration. Those who collaborate best are the ones who win. It will be a rising tide that lifts all boats because we build tomorrow.”

Honda plans to invest $700 million to retool several of its existing auto and powertrain plants in Ohio to produce electric vehicles that will use the batteries made at the new JV facility in Fayette County.

Production and sales of Honda EVs in North America are slated to begin in 2026, based on Honda’s new  e:Architecture. As part of its goal to achieve carbon neutrality for all products and corporate activities by 2050, the company has committed to make battery-electric and fuel cell electric vehicles represent 100% of Honda’s vehicle sales by 2040.

Carichino Paolo

Relocating to Dayton Region

Italy-based Modula, an international group that manufactures automated storage systems, purchased the former Dayton Daily News printing facility in Franklin in 2019. Modula decided to invest in Warren County for its second U.S. presence to expand its manufacturing capacity and increase its access to customers across the country.

After considering other locations, Modula found that the facility at 5000 Commerce Center Drive met all of its needs for both manufacturing and logistics, which led to the company locating both operations in the building.

According to the Dayton Development Coalition, more than 730 businesses in the Dayton region focus on logistics, and many others cite the region’s logistical advantage as a primary reason they remain here. The Dayton region’s central location means companies like Modula can reach 60% of consumers in one day.

“Modula is facing an impressive growth worldwide with a pace of almost 25% year-over-year in the last five years, and particularly in the North American market we faced a further acceleration in the last two years,” says Antonio Pagano, CEO of Modula.

“After an accurate analysis, we chose Ohio because of the excellent position along I-75, the great industrial presence and the high professionality of JobsOhio, which helped us in the whole process.”