Rama Sobhani | IDS | Date: 1/11/2008

Despite fears of recession on a national level, Indiana’s economy continues to add new jobs including 22,600 this year, according to an Indiana Economic Development Corporation press release. The number represents commitments from over 150 companies, including some located out-of-state and a number of international companies that have divisions in Indiana, to invest in creating new jobs in the state by 2012.

The report showed that state employment goals have been met and surpassed for a third year running. Since the Indiana Economic Development Corporation’s creation by Gov. Mitch Daniels in 2005, nearly 500 companies have invested more than $14.57 billion in their Indiana operations, according to the press release. Indiana workers are also averaging higher salaries. The average wage will increase to $20.56/hour, compared to the current average of $18/hour.Indiana Economic Development Corporation spokesman Mitch Frazier said that Indiana’s current economic environment continues to play a large role in attracting businesses to invest in the state.“The great story here is we’re talking about incentives,” he said. “For most jobs committed last year, the total incentive dollar total went down 20 percent. What that’s telling us is we have a great environment here in Indiana and we don’t have to offer as many incentives.”

Those incentives range from cash reimbursements for training new employees to tax credits, as well as various industry-specific grants including the 21st Century Research and Technology Fund.

Information technology is the fastest growing sector of Indiana’s economy, and investing in those companies helps keep local graduates in those fields working within the state, Frazier said.

“When companies that have ideas have sought all the money they can from people they know and … there’s a gap, what we do is bridge that gap with funding,” he said. “It keeps the talents of our universities employed here in Indiana.”

Nathan J. Feltman, Indiana Secretary of Commerce and CEO of the board of directors for the Indiana Economic Development Corporation, said despite the intensely competitive environment between states for attracting business, Indiana continues to do well.

“We’re always battling another state, (but) we provide infrastructure assistance, we pay for some of the cost of training the employees,” Feltman said. “What set us apart and why we’re doing better is if you look at surrounding states in the Midwest, we have the lowest unemployment and the lowest taxes. We’re outpacing all states in the Midwest when it comes to new companies.”

Some companies are opening branches in Indiana for other reasons as well. Medco, the nation’s largest mail-order pharmacy, has promised to create 1,306 jobs and will open its third distribution center in Whitestown, Ind., because of Indiana’s central location in the nation.

“We did an exhaustive search across the country [because] we needed a central part to relocate to. We narrowed it to Louisville and Indiana and we needed excellent transportation access, a location near an airport, near a post office as well as access to UPS, FedEx, as well as quality of life considerations for our employees,” said Ann Smith, director of public affairs for Medco.

“It was crucial to be near a very strong workforce to tap into, especially pharmacists, and there in Indianapolis we had Indiana University-Purdue University and Butler, so those were key components,” she said.

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