Its exhaustive search process included hi-tech logistical software, the work of a real estate firm and discussions on local incentives.

Bloomington, Ind., came out the winner, and will be home to the company's 302,000 square foot plant, which will eventually employ 365. PYA/Monarch, a subsidiary of the Sara Lee Corporation, will invest $23.7 million in the facility through the year 2000.

"What we did first was use some sophisticated, logistical software that looked at all of the restaurants we served and the number of miles we were traveling," said John R. Miller, president of PYA/Monarch Distribution. "We did some 'what if' scenarios that asked, 'where's the best location for us to have a midwest distribution center?'"

The software came back with the response that Kankakee, Ill., would be the ideal location. After drawing a circle around that area, which included Urbana-Champaign and parts of Indiana, PYA/Monarch worked with a commercial real estate company to find some existing facilities.

"We gave them some specs that we would look at in that geography, and we saw a facility in Bloomington, Indiana, that was a lot larger than what we were looking for initially," said Miller. "But it had enough potential that we could make the numbers work."

PYA/Monarch narrowed its choices down to the Bloomington site and a facility in Urbana-Champaign after examining the incentives available in both states.

Bloomington was the winner, "given the mileage savings and the aggressive incentive package that the state, city and county offered, and the culture we found in Bloomington," Miller said.

"We found it to have an educated work force, a healthy business climate, and we saw that there was a big need for us," he said. "After their loss of about a couple thousand employees when the Thompson Electronics business left for Mexico, they had a huge focus on us, and they worked hard to make sure that they did everything they could do to make the numbers work for our business.

"And it wasn't just numbers. They said, 'and here's how we'll help you get up and running. We're going to help you in the recruiting of people, your work force, and all of that.' Their welcome to us has exceeded our expectations."

The state has offered an assistance package that includes a $175,000 Training 2000 grant, a $165,000 infrastructure grant and EDGE (Economic Development for a Growing Economy) tax credits of up to $1,442,672.

Incentives for big and small alike
In addition to PYA/Monarch, Indiana's progressive incentives have helped numerous other companies expand or relocate to the Hoosier state.

Training 2000, EDGE, Industrial Development Grants, and incentives through the Industrial Energy Efficiency Fund are programs designed to help companies of all sizes. There are no minimum job creation or investment requirements in order to be eligible to receive benefits.

Even small companies like Charlestown-based D.A. Inc. are taking part. D.A. Inc. is expanding and receiving a $10,000 Training 2000 grant to assist in training 43 new and current employees.

The Indiana company will add nine jobs and more than $530,000 worth of new equipment over the next two years. D.A. Inc. manufactures thermoplastic components such as clamps, clips and protectors for electrical wiring systems in automobiles.

"As a small company, we are very pleased to receive this grant from the state of Indiana because it will help us get some of our training programs off the ground," said Nancy Waski, administration manager for D.A. Inc. "Right now, we do mostly hands-on training, which is very expensive. We want to purchase interactive software that will teach our employees how the processes work. That would save us a lot of time and money."

EDGE provides tax credits based on payroll. Indiana individual income tax withholdings from company employees can be credited against the company's Indiana corporate income tax liability. The credits can be awarded for a period of up to 10 years. In exchange, companies must agree to operate in the state for at least twice as long as the duration of the credits.

Fort Wayne-based OmniSource was offered an assistance package that included EDGE tax credits of up to $750,000 when it chose to locate its Superior Aluminum Alloys plant in nearby New Haven. Superior will hire 191 workers for the smelting facility.

Southwestern Indiana's economic engine
After the recent announcements of a new $1.2 billion A.K. Steel plant in Rockport and the $700 million Toyota plant in Princeton, Southwestern Indiana shows no signs of slowing down.

A new industrial corridor is growing from Bowling Green, Ky. through Louisville and along I-64, which runs east-west through southern Indiana.

Within a 60 mile radius of Rockport, there has been more than $3 billion worth of new, ongoing industrial construction, including the Toyota and A.K. Steel projects, a new Waupaca foundry, three new industrial parks, four new manufacturing plants in Owensboro, Ky., a $250 million Grain Processing Corp. plant in Washington, and numerous industrial supply and service companies related to those expansions.

A variety of manufacturing industries can be found in the region, including agribusiness, heavy metal fabrication (especially for the transportation industry) and wood-related and wood product-related industries in the forest areas. Plastics are heavily concentrated in Evansville, which is home to G.E. Plastics, Berry Plastics, Rexham Plastics, and many other companies.