A study released last week by Cleveland State’s Center for Economic Development shows that closing the General Motors Lordstown plant will negatively impact virtually every sector of the Youngstown area’s economy.
The study puts the cumulative job loss at 7,711 or 4.4 percent of all the jobs in Mahoning and Trumbull counties combined.
This includes all jobs lost since the third shift was cut at Lordstown in January of 2017.
For every four jobs lost at GM, two were lost in supply chain companies and one was lost in the consumer services sector.
It’ll cost the economy $1.6 billion or 9.4 percent of the gross regional product.
The shutdown will cost real estate $29.4 million, trucking $17.4 million, food services $10.9 million and hospitals $8.7 million.
The study said our region would also lose $12 million in state and local tax revenue.
“Lordstown was a significant economic driver in the region in terms of direct and indirect employment, support to the local tax base and as a customer for numerous local businesses,” said Dr. Iryna Lendel, director of the Center for Economic Development. “However, the area does have numerous resources that can be engaged to attract additional investment and offset the job and output losses that have occurred.”
Lendel said two groups of regional industry drivers are the oil and gas and growing legacy manufacturing industries. Combined, they produce $2.7 billion in output annually and employ over 5,300 workers.