Q4 Ohio Matters 2024

At the BRICS 2024 Summit in Kazan, the idea of a “BRICS trade currency” seemed ever more prominent. While the world grapples with immediate concerns like tariffs, inflation, labor costs, and deregulation, the potential impact on Ohio’s businesses and economy deserves specific attention. The Buckeye State, a major player in US manufacturing, agriculture, and technol- ogy, relies heavily on international trade. In 2023 alone, Ohio exported $55.8 billion worth of goods, and in 2021, Ohio exports supported an estimated 194,000 jobs 1 . A shift away from the US dollar could significantly reshape the landscape for Ohio businesses, presenting both challenges and opportunities. Ohio’s Exposure: Ohio’s diverse economy is deeply intertwined with global markets: • Manufacturing: This sector, responsible for $52.3 billion in exports in 2023, forms the backbone of Ohio’s economy. Key exports include transportation equipment ($16.1 billion), chemicals ($8.8 billion), and machinery ($6.6 billion). Changes in currency valuations and trade flows could affect the competitiveness of these Ohio-made goods in international markets .2 • Agriculture: Ohio, the 10th largest agricultural exporting state in the US, shipped $6.1 billion in agricultural products in 2022. Soybeans ($2.3 billion) and corn ($771 million) are major contributors. Currency shifts and potential trade realignments with key agricultural export partners like Brazil could impact pricing and demand for these products. 3 • Technology: Ohio’s growing technology sector, with its focus on advanced manufacturing, software, and IT services, could experience impacts on investment flows, supply chains, and global market access. Ohio’s Trade Partners: While Canada remains Ohio’s largest trading partner ($21.4 billion in 2023), significant trade relationships exist with key BRICS nations: • China : Ohio exported $2.8 billion worth of goods to China in 2023 .4 • Brazil: Brazil represents a $2 billion export market for Ohio. 5 • Asia as a whole: Accounts for $12.2 billion of Ohio’s exports. 6 This reliance on trade with BRICS nations underscores the potential impact of a new BRICS currency on Ohio’s economy. Challenges for Ohio Businesses: • Currency Volatility: A new BRICS currency could introduce volatility in exchange rates, making it challenging for Ohio businesses to price goods, manage costs, and forecast earnings, particularly for SMEs which make up 88% of Ohio’s exporting companies. 7 OHIO IN THE CROSSHAIRS: HOW A BRICS CURRENCY COULD RESHAPE THE BUCKEYE STATE’S ECONOMY – AND WHY BUSINESS LEADERS MUST ACT NOW

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