NILES, Ohio – Despite a couple “hiccups” over the past week, Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, said he remains “bullish” on the economy in the Mahoning Valley.
Speaking at the Regional Chamber’s Economic Forecast breakfast at the Eastwood Event Centre on Wednesday, Coviello said the decision by Lordstown Village Council to ban future data centers may not kill the $3.6 billion artificial intelligence project in the Valley.
“I think we need to do a better job of educating the community on the efficacy of data centers, and I think that there are plenty of communities in the Valley that would roll out the red carpet for a project of this magnitude,” Coviello said. “We have our work to do, and that’s part of what we’re here for – to research this stuff and make sure that people have the right information when they make important decisions.”
Coviello suggested the data center proposed by Bristolville 25 Developer LLC would mean 120 jobs, with an average salary of $175,000.
“We’re talking about very highly degreed individuals – people that we probably don’t have here, for the most part – and so we would be importing a level of brain gain that this community hasn’t seen probably in many decades,” Coviello said.
The other “hiccup” was the announcement of potential layoffs at Ultium Cells. Coviello assured those in attendance at Wednesday’s event that despite the Worker Adjustment and Retraining Notification, or WARN, letter, Ultium is still employing about double the number of people it promised when it came to the Mahoning Valley. He said the company is investing in the plant, and it will be ready when the downturn in the market ends.
“When they come out of the other end, they are going to be more resilient,” Coviello projected. “They’re going to be here for a long time, and they’re going to be bigger than they ever promised that they will be.”
Coviello followed the economic forecast delivered by Chad Oviatt, chief investment officer and senior vice president for First National Bank’s Wealth Management division.
Backing up his enthusiasm for the economy with trend charts, Oviatt showed that despite many consumers’ concerns, the economy is still growing. He cautioned that the top 10% of wage earners represent 50% of spending, which can lead to a disconnect.
“But there’s consumption happening,” Oviatt said. “There’s spending happening, and that’s money in motion for the U.S. economy.”
Three of the key components of the U.S. economy are monetary policy by the Federal Reserve Bank, fiscal policy of government leaders and tax policy. Oviatt said all three have been positive and appear to be going in the right direction.
“Trade policy is the one wild card that could be a headwind. That certainly has downstream impact to consumers,” Oviatt said. “But all things being equal, we are constructive on the U.S. economy.”
While tariff rates had been projected around 20%, Oviatt said, in reality, the average tariff rate is 12%.
“The way we’ve snapped back, it’s not as bad as we thought,” Oviatt said of tariff concerns.
He also talked about growth and decline in a variety of industries. Manufacturing continues to show growth at the state level and in the Mahoning Valley. With the growth of automation and high technology in manufacturing, Oviatt pointed out the Valley has the resources required, such as education and health care.
Even if certain segments of manufacturing don’t locate in the area, Oviatt said cottage industries will continue to spring up around these manufacturing centers. Higher tariffs also create a need for more items to be supplied locally.
“There’s going to be a need for suppliers to move more locally to those big hubs of manufacturing and distribution, so we see good things on the horizon for manufacturing as well,” Oviatt said.
Overall, Oviatt said earnings in the stock market are at 9.2%, with projections of 14% next year.
Projected 2025 spending of $344 billion by four U.S. companies – Amazon, Microsoft, Google and Meta – is higher than the $204 billion injected by the government in Troubled Asset Relief Program rescue funds during the pandemic – and larger than the economies of 142 countries, Oviatt said.
Based on many of these indicators, Oviatt said he sees the U.S. economy reaccelerating in 2026.
Brett Ponton, CEO of Servpro Industries LLC, was the event’s keynote speaker. He talked about the company’s structure and assets in today’s economy. Servpro is 100% franchised owned, but the overall corporation uses AI, an in-house meteorologist and other resources to help franchisees succeed.
Also during Wednesday’s event, the Regional Chamber presented its Excellence in Manufacturing Award to Redex Industries of Salem, the maker of Udderly Smooth products. Dr. Christine Alexander-Rager, president and CEO of MetroHealth System, received the Valley Champion Award.
Pictured at top: Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber.