Aviation company’s job record raises concerns in Ohio: 'Not what was promised'

Op-ed views and opinions expressed are solely those of the author.

*This post has been updated on 8/28 with a statement from Joby Aviation.

Joby Aviation, an aviation company based in Santa Cruz, California, has received substantial support in exchange for commitments to create jobs–but sources and public records raise questions as to whether those promises have been fulfilled, and whether a state economic development agency over promised job benefits in exchange for tax credits

Joby has been featured in the press for purchasing another aviation company and announcing partnerships with major companies like L3 Harris.

In 2023, Ohio’s economic development agency JobsOhio announced that Joby would be “creating 2,000 new jobs” and investing nearly $500 million in a state-of-the-art facility in Dayton, Ohio. JobsOhio’s model is to attract jobs and economic development to the state of Ohio in exchange for incentives like tax deferments or credits, and JobsOhio announced benefits to Joby of potentially $200 million in exchange for these job commitments. Of note, JobsOhio is unique among state economic development agencies with a public-private model where the agency relies on revenue from liquor sales in Ohio.

However, a source alerted BizPacReview to documents raising questions about whether Joby has fulfilled these promises. Joby has leased an old USPS facility andCEO JoeBen Bevirt avoided questions about his progress with their new facility on their Q2 earnings call. While the JobsOhio announcement promised 2,000 new jobs, Joby’s website shows 3 job openings listed in Dayton as of mid-August.

A former JobsOhio official told BizPac, “It’s not uncommon for companies to over promise while making splashy job announcements that come with taxpayer benefits. But when it comes to Joby’s project, it appears that the gap is substantial and more than normal. Companies risk losing their tax credits and public backlash for future deals if what they deliver is not what is promised. And JobsOhio’s reputation gets sullied when companies don’t perform.

Alleged Pattern:

BizPac was alerted to a prior deal with Joby in November 2023, when the company won a $9.8 million “California Competes Grant” by pledging to create 690 new full-time jobs and invest $41.2 million in expanding its electric aircraft manufacturing in Marina, California. The grant application drew broad local support at the time and was widely embraced as a workforce boon for the Monterey Bay region.

Joby worked with the United Auto Workers (UAW) union and at a 2023 grant hearing, a UAW representative endorsed Joby’s application with conditions. UAW lauded Joby’s willingness to negotiate a community benefits agreement (CBA) that would ensure “high quality jobs,” including provisions for union neutrality and workforce development programs.

However, now the UAW opposes Joby’s new application for additional benefits, arguing that Joby had failed to follow through on its California Competes Grant promises to work with labor and invest in local training despite repeated attempts at engagement by the UAW.

Sam Appel, Western States Policy Director for UAW, said, “Joby has already received millions in public funds, including about $10 million in Calcompetes grants in November 2023. That grant was awarded in part based on Joby’s public pledge to engage in a community benefits agreement…Since at least 2022, UAW and Labor Federation, and the local labor council have repeatedly tried in good faith to initiate that engagement…Despite these efforts and despite Joby’s promises at the Calcompetes board meeting, they have not followed through. There has been no meaningful engagement, no negotiation, and no transparency…We respectfully urge you to ensure Joby fulfills its commitments…before granting further public support.”

If Joby does fail to live up to its job promises, it certainly won’t be the first company that received substantial taxpayer benefits followed by delivering fewer jobs than expected. Ohio’s other project with Intel has received a lot more attention. But it will be a reminder of why conservatives are skeptical of the state picking winners and losers.

Statement from a Joby Aviation Spokesperson:

At Joby, we take pride in being transparent with the communities and partners we serve. Since announcing our plan in 2023 to invest $500 million in a scaled manufacturing facility in Dayton, we’ve been delivering as promised: acquiring the facility, beginning equipment installation, and expanding operations as outlined in our phased plan.

Our commitment to Ohio is long-term and backed by accountability. The 2,000 jobs we’ve pledged by 2030 are tied to annual reporting with JobsOhio and include strong safeguards like audit and clawback provisions. Early hiring and training are already underway, with roles increasing as construction advances and certification milestones are met. We’re also deeply engaged with local schools, training programs, and workforce initiatives in Marina, CA to ensure this investment creates lasting opportunities for the community.

Importantly, our progress in Dayton is guided by the FAA’s rigorous certification process, a matter of federal oversight and public record. As we move toward our goal of producing up to 500 aircraft annually, we’ve been clear that near-term operations would focus on parts and subassemblies, with full aircraft production following certification.

We are confident in the path forward and remain committed to our partners, our workforce, and the community.

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