SALEM, Ohio – A new report issued by the city sets forth a path for the community’s development over the next five years, identifying key priority areas that present the best opportunities for growth.

The Salem Five-Year Economic Development Plan, released Wednesday, builds on the success of the previous plan that was introduced in 2021, according to Julie Needs, executive director of the Sustainable Opportunity Development Center, which helped draft the new report.

“Over the past five years, Salem has made real and measurable progress,” Needs said in a letter introducing the plan. “Downtown vacancies have dropped dramatically, new businesses have opened, buildings have been reinvested in, and long‐standing bottlenecks have been reduced.” 

The report summarizes some of the major highlights over the past five years. Salem, for example, climbed from 84th to 12th place among the top U.S. micropolitan areas, while the city remains one of the most affordable areas in the country, with housing costs 17.2% below the national average and health care costs 20.1% below the national average.

Downtown vacancies over the past five years were reduced by 77%, the report shows. Moreover, timelines for new building permits were reduced from six months to an average of six days, and the city between 2021 and 2026 was awarded $2.3 million in competitive grants for downtown rehabilitation.

Still, Needs said there is much more work ahead. 

“As we reflect on what has been accomplished, it is equally important to acknowledge what remains unfinished,” she said. “We now better understand where capacity gaps exist, where investment is most urgently needed, and how interconnected economic development truly is – housing, workforce, transportation, quality of life, and opportunity all moving together or not at all. These realities shaped the development of the 2026-2031 Economic Development Plan.”

The plan identifies several priority areas that are vital to Salem’s progress. These include:

  • Manufacturing and Site Readiness: Salem’s industrial base remains its strongest economic engine, employing a greater share of residents than any other sector. Approximately 65 acres within the Salem Industrial Park have completed environmental testing. Attracting and expanding the manufacturing and industrial sectors of Salem’s economy remains a priority.
  • Downtown Revitalization and Walkable Spaces: Downtown Salem has experienced genuine and visible transformation over the past five years, with new businesses, upper-floor renovations and the expansion of a Designated Outdoor Refreshment Area. However, downtown revitalization remained the second highest community priority in the 2025 Salem Growth Survey, selected by 15% of respondents among a list of 10 options. Sustaining the momentum of previous years requires continued attention to building standards and code enforcement, filling remaining vacancies, expanding residential density downtown and managing the State Street traffic conditions that undercut the walkable environment the city is working to build.
  • Commercial and Retail Recruitment: In 2024, the SOD Center invited Retail Strategies to conduct an opportunity-gap analysis, which identified more than $305 million in annual unmet consumer demand across key categories including food service, building materials, furniture and home goods (Retail Strategies, 2024). In the community survey, retail ranked as the top priority for the next five years, with 16% of respondents selecting it. When asked specifically, 60% of respondents said shopping options “need improvement,” and 38% said restaurant options “need improvement.”
  • Housing Supply and Diversity: Salem faces a projected shortfall of approximately 316 housing units by 2030, and the gap is not just in quantity but in housing type. Middle housing for young families, professionals and seniors looking to downsize is underdeveloped in Salem. Housing availability was one of the most consistent themes raised by stakeholders and survey respondents, not just as a concern in and of itself but as a barrier to workforce recruitment and retention, as well as a priority to support the aging population.
  • Transportation, Road Safety, Parking and Multi-Modal Mobility: Salem’s road network has seen meaningful investment, with 69.8% of city streets paved since 2015 and the levy renewed by voters in May 2025 to continue that work. But transportation in Salem is also a daily challenge for the roughly 1 in 4 households that either own just one car or own no car at all. Addressing transit gaps, improving pedestrian infrastructure and managing truck traffic on State Street are priorities that connect directly to workforce access, downtown vitality and quality of life for Salem’s vulnerable and elderly residents.
  • Tourism, Marketing and Local Events: The city’s lodging tax revenue reached $95,347 in 2024, driven by a growing event calendar that includes Freed Fest, the Salem Super Cruise and an expanding roster of community-driven programming. What is missing is the coordination infrastructure: a unified brand identity, dedicated marketing capacity, reliable visitor data systems and wayfinding tools that help visitors navigate what Salem has to offer once they arrive.

The plan is more comprehensive than the first report in that it surveyed nearly 600 residents, stakeholders and visitors – representing a 142% increase in participation than the previous five-year plan. Among these were 40 participants representing 12 sectors of the local and regional economy, including developers, small-business owners, city administrators and leaders within the Salem community.

“The path forward will require continued partnership,” Needs said. “It will require patience and persistence. But if the last five years have shown us anything, it is that Salem knows how to do hard work and how to do it together.”