Southwest Ohio Jobs Come Home
I hope everyone had a great Labor Day weekend! For Realtors and House Hunters I'd like to share some more good news about jobs coming home to the U.S. and also to West Chester.
I was asked over the weekend by two clients looking in the counties of Butler, Greene and Warren and if it's a good time to buy, but also my opinion where to buy.
Neither client is bound by school district having no children, and both are looking to buy a home, live in it for several years and then "move on up". A lot of folks are in this position, going into first time home buying with this intent. Both of these clients are employed in the manufacturing industry, and I gave them my personal picks for communities to consider which I'll share with you momentarily.
Jobs and real estate are forever tied together, obviously, so, I'm thrilled whenever I hear good news about local economies. So far, everything seems to be pointed in the right direction. On another blog of mine, I detailed out the collaborative efforts of Dayton and Cincinnati to win a highly coveted manufacturing designation vying for one twelfth of a $1.3 billion dollar slice of economic pie that would be a huge boost to these combined metro areas. I'm still watching to see what the outcome is, as authorities stated we would know towards the end of 2014.
Southwest Ohio Real Estate; More Jobs = Greater Stability
I recently posted about jobs returning to Dayton from overseas in another industry currently enjoying and expected large future growth, and now I'm happy to report that yet more jobs are coming home to the U.S., this time in West Chester, and in the manufacturing arena.
West Chester - a Local Case Study
I found a case study on the Dayton Daily News (just one small example) Long-Stanton Manufacturing Co., a fabricator and assembler of custom-designed components for other manufacturers, had followed its customers to China in pursuit of lower costs.
Long-Stanton established a foreign subsidiary in Changzhou back in 2005, not wanting to hemorrhage business to Chinese competitors. The metal fabricator also formed a joint venture with Lee World Industries named Legend Metal and Rubber LLC of Wuhan, China, to manufacture rubber and rubber-bonded to metal components.
Marvin Cunningham, President of Long-Stanton, shared his past reasoning, "The fear was that if Long-Stanton didn't expand operations abroad, it would lose business to Chinese companies or other American companies that made the move and could produce the same parts." Happily no operations in West Chester Twp. were cut as a result. "We heard that some of our larger customers are building factories over there so how long can we continue to make parts for stuff that's assembled over there?" Cunningham said.
New production lines were added in China that Long-Stanton never made in the U.S. before, and most parts were exported back to North America because labor and transportation prices were cheaper. But over the last 10 years or so, the same factors that drew the industrial manufacturer overseas caused it to bring production back beginning in 2012. That year the Chinese factory was mothballed. However, Long-Stanton still owns a 50 percent stake in the Chinese joint venture.
More Southwest Ohio Jobs Return Home from overseas
In addition to this example in West Chester, consider Knox Machinery of Franklin, Ohio, a distributor of manufacturing equipment supplying local companies in Butler and other adjacent counties. "Reshoring; I've been hearing the word for about 10 years," said Greg Knox, chief executive officer. "But I have to say in the last, especially five years, since the downturn... I've absolutely seen the real impact of reshoring on manufacturing in this area."
When taking into consideration total operational costs — wages, freight, shipping and travel times for delivery and replaced parts — it's now less expensive to produce goods here in this area, than to produce them in China, Knox said.
We find another example of local jobs returning to the U.S. with Whirpool Co. who has made some noticeable and welcome moves. Earlier this year in March, Whirlpool Co. had announced a substantial $40 million investment in its Greenville, Ohio, production facility that will nearly double its size and create about 400 new jobs by 2018, already employing 1,000 to produce KitchenAid small appliances. Source - Dayton Daily News.
Home Buying in SW Ohio
Having taken a strong look at local economies this year with national and global employment trends, things are looking much better than in years past. To answer my clients about where to buy, I gave them some suggestions for strong considerations given their employment locations.
Keep in mind, the communities I'm citing have some astounding luxury real estate, but we're looking into affordable homes expected to appreciate in value. Though there are some distressed areas and neighborhoods, little by little, the overall picture continues to improve and buyers with a plan in mind like mine want to buy in those neighborhoods on the uptick, and avoid those in decline.
You can buy a home for a lot less than the ranges I'm suggesting below, but the suggested ranges will find homes in stabilizing and growing areas, but one should always do their homework with each property on a case by case basis.
Search Tip: You can find homes in the below communities easily with this Ohio Property Search.
Butler County: Fairfield and Monroe.
Remember, these recommendations are based on my clients desire to buy and occupy for some years, then hopefully sell at an appreciated value and "move on up" later. I cite Fairfield, given its access to Cincinnati, and while close to where many companies and large employer groups are headquartered, it's also a reasonable distance to many local businesses based in manufacturing, retail trade, transportation and warehousing. Of interest for my clients, I pointed out there are some excellent deals in the $175,000 to $225,000 range.
Monroe is a whole other matter, I love Monroe, which is definitely growing in size and attraction, strategically located on, even straddling Interstate 75, it's a perfect place to begin with tempting deals also in the $175,000 -$225,000 range, and you'll even find newer and custom built homes in this range.
Warren County: Lebanon and Waynesville.
All three of these cities have some excellent choices in the $175,000 - $225,000 range, and locations place buyers near many career markets including manufacturing employers. I except these communities to enjoy continuing rising house values as Dayton continues it's strong efforts towards economic stability and multiple programs and comprehensive projects for regional improvement.
Greene County: Fairborn and Xenia
Fairborn and Xenia both offer up some great options between $175,000 and $225,000, and both in easy reach of Dayton, Wright Patterson Air Force Base, and as Dayton continues to grow and expand, suburbs like these two should enjoy increasing value. I prefer Xenia to Fairborn, mostly for the beauty of the area and the immediate accessibility of area attractions.
In closing, I'm watching SW Ohio's economic pulse with great enthusiasm. I don't expect any huge leaps forward, and progress may seem slow and plodding, but careful, well-planned progress seems to be the new flavor of this decade, and though nothing is certain, many indicators point to a healthier, sustainable growth.