Middletown: It’s the Economy

This is the second part of a seven-part series about Middletown’s evolution, growth, and challenges. This article will focus on the economic state of the city with slightly more than 50,000 residents in Butler and Warren counties.

With large manufacturing entities such as Cleveland Cliffs (formerly ARMCO and AK Steel), Akers Packaging, Cohen Recycling and others serving as the primary drivers, Middletown is fundamentally a blue-collar town. Therefore, the challenges it has endured are fundamental and undeniable. According to data from the St. Louis branch of the U.S. Federal Reserve, the number of Ohio manufacturing jobs has declined from 1.075 million in June 1990 to a tally of 684,200 in August 2024. That number represents a bounce back from the April 2020 nadir of 581,000 following the bottoming out caused by COVID-19, but still conveys a decline of more than 36%.

However, there’s good news for cities like Middletown and its residents. City leaders remain committed to supporting its anchor companies with amenities, and they are reciprocating by providing steadily increasing employment opportunities. And a potentially transformational development along the I-75 corridor on the city’s east side could provide thousands of jobs and millions of dollars of enhancement to economic development. Three leaders shared their insights about how the city and key stakeholders are shaping its economic plans to meet the fluctuating needs of its population.

Having served in her post in the city’s economic development office for two years, Middletown Economic and Community Development Dept. Director Lisha Morlan’s previous professional experience makes her well suited to supporting entrepreneurial growth. She’s been a business advisor for multiple franchise networks and consulting firms, held corporate positions for Fortune 500 and 1000 companies, and been a serial entrepreneur.

“There’s been a learning curve becoming familiar with how the public sector works compared to the private sector, and leveraging this knowledge with my business experience has been valuable in helping me support our business owners,” she said.
The 23-employee Economic Development office is entirely funded by the city. Morlan said that Middletown is uniquely positioned to attract new businesses: “We’re right in the middle of two pretty saturated markets [Dayton and Cincinnati], with convenient interstate access and several new developments that will attract businesses of various types and sizes, and therefore create greater entrepreneurial and employment opportunities. Our office emphasizes engaging prospective businesses that complement our existing business community, not creating added competition.”
An ongoing challenge Morlan said Middletown continues to face is a lack of housing in the price of middle-class families, particularly regarding housing stock in the $175,000-$250,000 range.

Economic and Community Development Dept. Director Lisha Morlan has been in her role for two years and has ample private-sector mentoring experience.“It’s difficult for families with breadwinners earning in the $18-$27-an-hour range to find housing that allows them to live and work in this community,” she said. “It’s important for our city to make efforts to collaborate with developers or infill lots and blighted properties with quality, affordable housing.”

Morlan noted that one of Middletown’s strengths is the robust growth of restaurants, shops, and other small businesses “emphasize that the entrepreneurial spirit is alive and well here,” and provides a solid support structure for its sizable employers and other large corporations.

The Economic Development Dept. offers Middletown business owners the services of a Small Business Development Center (SBDC), which helps business owners plan and financially prepare for the business’s inception and growth. Although the U.S. Small Business Administration defines a small business as one with 500 or fewer employees, Morlan’s department targets those with fewer than 50 workers. The SBDC also helps business owners obtain financial resources to help companies subsidize growth and transition.

“Every business owner has different needs, so it’s important to be flexible in the support and services we provide,” Morlan said. “A lot of the federal and state mechanisms to support small businesses help very small enterprises and those with hundreds of employees but misses those in the 25 to 50 range. Helping these businesses find funding sources, skill-development opportunities and growth support is a big part of our mission.”

To complement its existing manufacturing base, she said the city is attempting to attract growing biotech companies to establish operations on the city’s east side, where zoning parameters differ from areas intended for heavy industry. She also referenced a remediated “brownfield” site where paperboard was formerly manufactured that the city is attempting to revitalize and rezone for a rebirth as a light industrial park that can house multiple tenants’ production operations.

She noted that Middletown doesn’t maintain many work-from-home businesses, but food trucks represent a major example of entrepreneurial growth. Eateries on wheels exploded during COVID-19, when restaurants were shuttered or attracting few diners, and have remained a popular amenity for events and public spaces. “We don’t want to detract from brick-and-mortar businesses, but there are plenty of opportunities for both types of foodservices to be profitable and improve our quality of life,” Morlan said.

Gary KesslerMWO is pursuing private charter traffic, such as flights transporting sports teams and performance groups.

Another sector that Morlan noted provides substantial growth opportunity is through the Middletown Regional Airport/Hook Field (MWO). She said, “With the heavy commercial traffic at Cincinnati and Dayton airports, Middletown’s regional airport is uniquely positioned to efficiently support commercial inventory and logistics needs.”

MWO is a general-aviation (GA) airport, one of 150 in Ohio. General-aviation airports are classified as facilitate that accommodate personal or corporate aircraft, and fewer than 2,500 commercial-flight passengers annually (MWO serves no commercial-air traffic). MWO, which currently oversees approximately 110 daily flights, offers a 6,000-ft.-long runway, the longest at an Ohio GA airport, as well as a 3,000-ft.-long grass runway that’s often used by recreational fliers.

One focal point for MWO’s growth is furthering advanced air mobility (AAM) usage. AAM includes unmanned aircraft such as drones. People may perceive drones as a child’s toy, but unmanned aircraft systems can provide payloads of up to 2,500 lbs., which provides ample opportunity for rapid transport.

“We met with our regions three healthcare entities, and they were very excited about the possibility of being able to ship emergency medical supplies quickly,” Morlan said. “AAM also enables manufacturers and distributors to rapidly ship needed parts and inventory in hours instead of weeks or months.

Nik Brumback, the city’s airport manager, who assumed his role a month ago, noted that the airport is scheduled to introduce deicing equipment, which will allow travel to continue in subfreezing conditions. Another MWO initiative is pursuing private charter traffic, such as flights transporting sports teams and performance groups. He also said that MWO’s ramp expansion, targeted for completion by the end of 2025, will further enhance its logistical capabilities. 

Architectural rendering of Middletown Renaissance Center / Plans subject to change
A pivotal project with phase-one completion anticipated in 2026 is Renaissance Pointe, a $200 million-plus development that will include an event center seating approximately 3,500 plus retail, restaurant, medical, and residential amenities that will bring approximately 700 permanent jobs to the area (plus, of course, the construction jobs filled to build it). Todd Duplain, one of site developer Woodard Resources’ three principals, said that such large projects require alignment and consistent communication from the beginning to yield a successful project.

“Development projects require a firm alignment amongst all stakeholders, a strong consensus on a project’s intended outcome, and strong relationships to navigate challenges,” he said. “Without the right leadership, these types of projects can easily fail.”

The 50-acre project was originally intended to be executed on the site of the Middletown Mall, but, when what it would entail became financially prohibitive, the consortium of stakeholders – Woodard, the city of Middletown, the Warren County Port Authority, and CCP of Ohio – opted to move the project across I-75 and undertake new construction on previously vacant land. Capitalizing on Middletown’s location was a driving force behind the Renaissance Pointe development.

“It’s a valuable opportunity for one site to access two markets, given the proximity to both Cincinnati and Dayton,” he said. “The event center will serve as an anchor tenant, and a variety of shopping, dining, medical, and residential amenities will attract people to Middletown. There are a lot of good things happening in Middletown, such as the continued investment by the hospital systems, the Cleveland Cliffs expansion, and improvements in its housing inventory.”

The project was first undertaken in early 2021; the event center and some retail and restaurant properties are anticipated to open in summer 2026, and the remainder expected to be unveiled in the following 3-5 years. Duplain noted the many pitfalls can befall such large-scale projects: “When you’re working on a project for five, seven, even 10 years, there are so many factors that can impact a project. For example, a project’s cost structure can change, the market can change and may not respond the way you anticipated and if there are leadership transitions in the team, project stability can be challenging. We’re fortunate that most of the stakeholders from day one are still here.”

And, as with every aspect of our lives, COVID-19 made an impact on Renaissance Pointe and probably all future developments. Duplain said Renaissance Pointe is likely to offer little office space, except for medical services. And restaurants’ business models have adapted post-pandemic.

“Food and beverage concepts are more reliant on carryout and drive-thru business,” Duplain said. “Restaurants require more real estate because of the greater reliance on drive-thru and carryout business.”

Since 1963, Akers Packaging has produced corrugated boxes and containers for food and beverage, medical, and aerospace producers, among other industries. The company currently employs approximately 600 workers throughout five states, including approximately 240 at two Middletown facilities, where its headquarters exist.

Andrew Akers, the company’s managing director and the third generation of his family to work for the company. He’d previously worked for WestRock, PepsiCo, and SCA Tissue, and was able to help translate some principles from corporate behemoths to the family business.

Akers Packaging Managing Director Andrew Akers“Working with a large company, learning a culture of consistently pursuing best practices and clearly defined strategy and analysts helped improve our company’s processes,” he said.

He describes his manufacturing sector as a mature market where annual growth typical hovers in the 1-2% range. Pent-up demand following the COVID-19 economic slump caused a bounce back three-year compounded annual growth rate of 9%, but Akers said recently the number has returned closer to historic norms.

Akers said that the company’s growth has remained consistent and have navigated lingering challenges finding qualified production workers: “We used to consistently be about eight employees short of full staffing and lost a lot of institutional knowledge when longtime employees retired. But, recruiting and training efforts have allowed us to be close to fully staffed.”

He said that Middletown’s city government has been business-friendly supporting in helping companies flourish. Akers also lauded Debbie Houser’s leadership of Middletown City Schools, in particular its Passport for Tomorrow program that helps create internships and co-ops, as well as the Adopt-A-Class program, which invites companies like Akers into classrooms to introduce them to potential careers. He also praised the Jobs Ohio program in providing training for qualified maintenance workers, a vital cog in any production facility.
 
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Steve is a freelance writer and editor, father, and husband who enjoys cooking, exercise, travel, and reading. A native of Fort Thomas who spent his collegiate and early-adulthood years in Georgia, marriage brought him across the river, where he now resides in Oakley.