The marriage of two industry giants -- DuPont and Dow Chemical -- to form DuPont Dow Elastomers is something Delaware points to proudly as evidence of its successful campaign to encourage manufacturing growth.

The joint venture takes advantage of DuPont's and Dow Chemical's complimentary marketing, manufacturing and technology assets. A global supplier of synthetic rubber materials and finished products, the new company expects annual sales of approximately $1 billion. The headquarters facility near Wilmington employs 100 DuPont and 30 Dow employees.

"Locating the company's headquarters near Wilmington was important because many of the joint venture's employees already live and work in the area," says DuPont Dow Elastomers President Donald K. Duncan. "The state's pro-business climate was also a major factor in the decision."

Manufacturing is a critical element of Delaware's diverse economy, accounting for 19.6 percent of all private, nonfarm sector jobs, and provides 32 percent of income and 23.5 percent of the gross state product. In addition, manufacturing accounts for 54 percent of the state's total domestic and international distribution.

To encourage manufacturing, Delaware is committed to a "grow our own" recruitment and retention philosophy, and provides ample funding sources to help businesses get off the ground, including industrial revenue bond financing, an economic development loan program and venture capital funds.

In addition, CFO magazine recently cited Delaware as the best state, based on tax policy, to locate or expand a business.

Recent tax initiatives include credits for manufacturing. The tax credit for each new job created, and for each $100,000 of quality investment, was raised from $250 to $400.

For firms that locate in targeted areas such as "brownfields" -- former industrial sites that have been slated for redevelopment -- the credit has been raised from $500 to $650.

Delaware's pro-business, pro-manufacturing climate has earned the confidence and commitment of many manufacturers throughout the state. In fact, a recent survey of Delaware manufacturers found that 92 percent would recommend Delaware to out-of-state companies interested in expanding or relocating.

-- Jill Metzler