In fact, the state has led the nation in business expansion and relocation for the past five years, according to its Department of Economic Development.

The state's tax reform, infrastructure improvements and work force training, along with pro-growth incentives, have combined to charge its economy.

One example is last year's $1.2 billion expansion of Chrysler's Toledo Jeep plant -- a major exporter. Chrysler received a total package of $212 million from state and local governments. The $125 million in state funds included a tax credit worth $96.6 million on the company's investment in the plant and equipment, a $6 million grant to train workers, $2 million for road improvements and $750,000 for rail improvements.

Ohio is heavily focused on manufacturing, transportation and distribution, and few other states can offer such a strategic location for these industries.

Ohio is also the country's second-largest manufacturing state with 2,575 companies producing goods. Foreign firms have invested in some 515 facilities and employ around 111,000 residents.

Incentives help put companies on solid turf
Ohio has a variety of programs to reward work force expansions, help companies increase their export sales, help small businesses and stimulate growth in rural areas.

The Ohio Job Creation Tax Credit allows a business to receive a refundable tax credit against its corporate franchise/income tax based on the state income tax withheld on new, full-time employees. The amount of the tax credit can be up to 75 percent for up to 10 years. In order to be eligible, the company must create at least 25 new jobs within three years of operation, with average wages of at least 150 percent of the current federal minimum wage.

Companies that increase their export sales, while at the same time either expanding their Ohio payroll or capital spending, can claim a franchise tax credit of 10 percent through the state's Export Tax Credit. Ohio had exports of around $23 billion in 1995, up 40.8 percent since 1991. The state's businesses ship to 195 countries.

Small businesses account for more than 85 percent of the 250,000 companies in the state, employing more than half of Ohio's workers. Some 52 percent of the businesses employ from one to four people and less than 2 percent of Ohio businesses have more than 100 employees.

Expansion for these companies is made easier through the Small Business Administration (SBA) 504 Loan Program, which provides up to $750,000 in low-interest loans for machinery, equipment or real estate to small industrial, commercial or retail businesses.

Small city success
Ohio's "micropolitans," cities with a population of at least 15,000 in a county of at least 40,000, are ideal for companies that want to locate in smaller towns with stable, committed and highly skilled work forces, yet close to major modes of transportation, larger cities xand universities.

One such city that has seen unprecedented growth in its industrial community over the past couple of years is Piqua, with a population of just over 20,000 in the east-central part of the state. Over the past year, Jackson Tube added 100,000 square feet to its plant and is adding another 100,000 square feet, bringing its total operation size to 400,000 square feet.

Lima lures industry, rebounds from defense cutbacks
An enormous success story can be found in Lima (population 48,000), about 50 miles north of Piqua.

A severe economic blow was dealt to the city after defense cutbacks and the closings of the Sundstrand and Airfoil Textron plants, as well as the downsizing of General Dynamics, which manufactures the MI-A2 battle tank in Lima.

Last March, British Petroleum announced it would close its refining operations at a cost of 470 jobs. But Lima fought back. The business community came together to erect two speculative buildings and an aggressive recruiting program was launched, along with a retention/expansion effort to ensure that remaining Lima-based companies' needs were fully addressed.

The results of the effort have been outstanding.

A.P. Products, a cosmetic company based in New York, took the first spec building and has brought 125 jobs to the community. Siemens located an automotive oil/fuel module plant in the second building, creating 160 jobs. And Johnstown Wire has taken over one of the existing buildings once owned by a now-defunct defense contracting company and made an initial $14 million investment, creating 125 jobs.

Even British Petroleum has altered its original plan by deciding not to close the refining plant, but to turn it into a BDO (chemicals used in the production of spandex and automotive bumpers) manufacturing facility. The operation will retain all 470 jobs.