Mar. 10--In a welcome respite from bad economic news, Ohio has been named first in the nation for major business expansions for 2008 by Site Selection magazine.

In its March issue, the publication tallied the number of projects, both new developments and expansions of existing operations, that each state recorded in the previous year.

Ohio's 503 projects bested Texas' 497 and Michigan's 296. This is the third year in a row the state has taken the top spot.

The projects had to involve at least $1 million in investment and the addition of at least 50 jobs and 20,000 square feet of work space. The state chose Cardinal Health's headquarters for the announcement because that company is expanding and bringing 700 jobs to Dublin.

Gov. Ted Strickland called the ranking "an important reminder" of the value of "phasing in comprehensive tax reforms, while investing in sustainable sectors of the economy" to position Ohio for recovery and long-term growth.

When it comes to overall jobs, however, the Site Selection rankings don't necessarily translate into gains. Ohio, for example, lost 89,000 jobs last year, or 1.6 percent of its work force. That placed the state 26th in the nation in job creation, federal data show.

The ranking also won't provide a quick turnaround for a state battling high unemployment and budget woes, said Jim Newton, chief economic adviser for Commerce National Bank.

"Obviously, it's wonderful. Ohio should be pleased," Newton said of the ranking. "But all it really serves is to make the current situation look less horrible. Otherwise, things would be worse."

Texas' project and job numbers tracked well. The state was second in job creation behind Wyoming in 2008, adding 153,700 jobs last year, for a 1.5 percent gain. Texas was one of only eight states that had a net increase in jobs last year.

Michigan, meanwhile, was 47th in job creation after losing 173,000 jobs last year, a 4.1 percent decline.

Steve Shoney, director of the strategic business investment division of the Ohio Department of Development, said the designation is still meaningful and important for Ohio, even as nearly all states continue to struggle against job losses.

"This measures one piece of the entire economic puzzle," Shoney said. "While you have some companies growing, you may have a company right next door that's laying off."

Shoney pointed to the thousands of layoffs by express shipper DHL in Wilmington as an example of how one major business closing can skew the job numbers and mask expansion elsewhere. He also pointed out the state's work at retaining jobs at NetJets in Columbus and Cooper Tire & Rubber in Findlay.

But gains aren't coming fast enough to offset declines in industries that have bolstered the state in the past, Newton said.

"These rankings show Ohio is still a good place to do business," he said. "We are centrally located. We have so many things going for us. But as a state, we are having some severe problems."

Among cities, Dayton, Akron and Toledo swept the top three spots ahead of all other midsize metropolitan areas with a population between 200,000 and 1 million. Youngstown tied for No. 7. Cincinnati, Columbus and Cleveland ranked Nos. 4, 8 and 9, respectively, among metropolitan areas with populations of more than 1 million.

Dispatch reporter Mark Niquette and business editor Ron Carter contributed to this story.

mrose@dispatch.com

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