How Japan Helped Turn Ohio Into a Business Powerhouse

Ohio is a state in the middle of the United States, and for a long time many people thought of it as a place where old factories stood empty and rusty. But today, Ohio is one of the top states in the country for business. A big reason for this change is investment from Japan — and Ohio leaders are now trying to bring in even more companies from across Asia.

One company that made Ohio its home is Pacific Manufacturing Ohio, which makes parts for cars. The company is owned by Japan-based Pacific Industrial. Its general manager, Takashi Nakagawa, said the location was a huge draw because the factory is just two hours from major Honda and Toyota plants. The fact that many other Japanese businesses and workers were already in Ohio also made the move easier.

Pacific Manufacturing has been in Fairfield, Ohio, for almost 40 years. Over that time, it grew from just 50 workers to nearly 1,000. Its Ohio site is now the company's largest factory outside of Japan, covering more than one million square feet across five buildings. The factory even keeps its machines running during worker lunch breaks to keep costs low for customers.

Honda played a huge role in starting Ohio's business comeback. In 1982, Honda became the first Japanese company to build cars in the United States, and it chose Ohio. Honda's Marysville plant covers the same area as 47 soccer fields and can make 440,000 cars every year. When Honda arrived, hundreds of Japanese parts suppliers followed and set up their own factories nearby.

Ohio is home to more than 1,000 Japanese businesses, making Japan the top foreign investor in the state. A big push for even more investment is coming because of trade tariffs — taxes placed on goods brought in from other countries. In July 2025, Japan's government promised up to $550 billion to support projects in the United States, and the U.S. agreed to lower tariffs on Japanese goods in return. One of those projects is a $33 billion natural gas facility in Ohio that could produce 9.2 gigawatts of power.

Even with Japan's strong presence, it has been harder to attract investors from other parts of Asia. Japan made up 23 percent of all international businesses in Ohio, while Singapore businesses made up less than 1 percent, according to a 2024 report. Leo Chan, head of the Asia Chamber of America, said many foreign investors simply don't think about Ohio because they are more familiar with cities like New York or Los Angeles. He said Ohio needs more "education and storytelling" to help investors understand what it offers.

Ohio's job growth agency, JobsOhio, is working hard to change that. Benedict Park, a senior manager there, said visitors are often surprised by how modern Ohio is. "Friends, family members and potential investors visiting from other US states and Asia are amazed by how different Ohio is from their perception," he said. He added that Ohio is no longer the struggling 'rust belt' it once was, but a state rebuilding its industrial strength.

JobsOhio has been reaching out to Asian countries, including Singapore, building relationships with its top business agencies. The group even attended the Singapore Airshow for the first time in February 2026, meeting companies in fields like aerospace and life sciences. Park said one of Ohio's biggest selling points is its location — from Ohio, you can drive to 60 percent of the U.S. and Canadian population in just one day. The news network CNBC recently ranked Ohio as the number-one state in the U.S. for business, based on things like infrastructure and low costs.

Ohio also offers business-friendly tax rules and special trade zones. Lawmakers removed a minimum tax on business activity in 2024, replacing it with a flat rate. Near Cincinnati, there are special zones where companies can store and process imported goods without paying import taxes, saving businesses money. These features make Ohio attractive to companies looking for affordable places to grow.

Japanese professionals who have moved to Ohio tend to enjoy living there, said Anne Golden of the Japan America Society of Greater Cincinnati. Ohio cities have good schools, including some with Saturday classes to help Japanese children keep up their language skills. Nakagawa expects the Japanese business community to keep growing as more companies want to manufacture locally and avoid trade problems. Ohio's leaders hope other Asian countries will soon follow Japan's lead and discover what this once-overlooked state has to offer.