In some industrial communities in the northeast portion of the state, unemployment reached over 20 percent. Skilled and unskilled workers were leaving the state; some communities even had relocation programs for their unemployed citizens, paying them to move to communities where there were employment opportunities. The "rust belt" moniker was given to the Midwest industrial states, and Ohio seemed to be the rust belt capital.

A generation later, Ohio is leading the country in other ways. For the past four out of five years, Ohio has led the country in corporate relocations and expansions. The state also leads in the number of international relocations and expansions.

Population growth in Ohio has followed the state's economic growth.

"With growth six times faster than predicted, we are poised to make even bigger strides in our economy," said John Damschroder, special projects director for Ohio's Department of Development.

The linchpin of Ohio's economic development effort is the Ohio job creation tax credit, approved by the state legislature in 1993. The credit provides a corporation franchise/income tax credit to businesses creating at least 25 new jobs in Ohio.

According to Damschroder, the idea behind the job creation tax credit is simple. "It is sharing the benefits with the people who create the wealth," he said.

Ohio is continuing its aggressive policy to assist business in relocation and expansion. In 1996, the state legislature passed another jobs bill that the administration believes will further Ohio's competitiveness. It includes, among other incentives, a 10 percent machinery and equipment tax credit, a 10 percent credit of pre-tax profit from the increase in export sales, and financial incentives to rural communities in Ohio to develop spec buildings and industrial parks.

Ried Dulberger, senior vice president for economic development of the Youngstown-Warren Area Chamber of Commerce sees steady growth for the area. Once the symbol of manufacturing decline in the Midwest, the Youngstown-Warren area is now seeing approximately 80 percent of its growth in the expansion of existing industries, said Dulberger.

The community also is taking advantage of its proximity to major markets and an excellent highway system by recruiting major distribution facilities.

In 1996, the area saw the relocation of Kaufmann's National Distribution Center from the Pittsburgh, Penn., area. At 58,000 square feet, the center represents a $26 million investment and creates over 400 new jobs. Things Remembered, a national retail chain, also chose the Youngstown area for its a 280,000 square foot distribution facility, creating 170 new jobs and reflecting an $11.6 million investment.

Over the past three years, 18 businesses have relocated to the area, and more than 1.7 million square feet of space has been built, creating 1,700 new jobs and $56 million in new investment. Fifty-four expansions over the last three years account for 2.6 million square feet under roof, along with 1,700 new jobs and $106.4 million of new investment.

The southeastern part of Ohio has traditionally been the poorest part of the state, with the least investment and highest unemployment rate. However, Ohio's current growth mode has included this mostly rural area.

Recently Time magazine named Chillicothe one of the "hot spots" in the nation for economic growth. Al Hill, director of the Cambridge-Gurnsey County Community Improvement Corp., reported that there has been significant job growth over the past 18 months. Expansions include the $7.5 million Lauren-Meteor International facility, which will produce rubber products for the automobile industry, and Centia-Metalworks, which produces a metal shingle roofing system.

Ohio's large cities also have seen significant economic growth over the past year.