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Indiana Is Breaking the Mold

Indiana's non-traditional approach to economic development is just one more reason businesses are attracted to the Hoosier State.

  [ 7/8/1997 ]  By: Ann K. Morris   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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Pep Boys, a leader in after-market retail automotive parts and professional automotive repair services, recently chose Plainfield, Ind., for its new automotive parts distribution center, where it will employ 250 people.

"As we searched for a location, we were looking for reasonably priced real estate, an abundant pool of experienced workers and a well-developed interstate system," said Stuart Rosenfeld, the company's assistant vice president of distribution. "Well, we found that and more. We are very pleased to participate in Indiana's effort to pioneer non-traditional economic development that will provide jobs to those receiving public assistance. We hope our participation with this kind of innovation will become an example of what business and government can do to improve everyone's quality of life."

The "non-traditional economic development" to which Rosenfeld referred is a welfare-to-work program, through which Pep Boys and the state of Indiana are collaborating to provide job opportunities for qualified candidates who currently are on welfare. Pep Boys is the first to try such a project in Indiana.

Through the program, the state will offer Pep Boys a $60,000 Training 2000 grant and up to $1.4 million in EDGE tax credits. Also, funds will be provided for day care and transportation.

The Indiana Department of Commerce's Training 2000 program offers grants that reimburse qualifying companies up to 50 percent for the cost of training and retraining workers. EDGE, which stands for Economic Development for a Growing Economy, is a state program designed to provide tax credits to companies that make a significant capital and jobs investment in Indiana.

EDGE tax credits also were offered to Software Artistry, a company that develops, markets and supports software. The company, formed in 1988, will build a new corporate headquarters in Indianapolis, where it will create 735 jobs by the year 2000. The state will provide the company with $100,000 for employee training and up to $9.2 million in EDGE tax credits.

"We are extremely grateful to both the state of Indiana and the city of Indianapolis for the loyalty they have demonstrated to Software Artistry," said Scott Weber, the company's president and CEO. "As we anticipate the needs generated by our continued growth, their commitment to the future of the software industry in Indiana sealed our decision to expand locally."

America's Heartland
Evansville, in the southwest portion of the state, is a good example of Indiana's communities. The labor force of 170,000 is highly-trained and representative of the area's diverse economy. Evansville businesses can draw employees from a 50-mile radius thanks to convenient transportation services. Also, the town sits on the Ohio River, which carries more freight tonnage than any inland body of water in the world.

The Evansville region is served by five barge lines and two barge terminals. Evansville's transportation network was enhanced in 1989 when the Evansville Regional Airport terminal opened and began providing more than 40 daily flights to eight national hub-airport locations. Because of its location, transportation network and skilled work force, Evansville is particularly attractive to manufacturing, distribution and warehousing operations.

Indianapolis and the state of Indiana have a lot to offer any company, especially manufacturers. The manufacturing sector creates more than 31 percent of total earnings in the state; more than 25 percent of the state's 2.85 million workers are employed in manufacturing jobs; and distribution is convenient by air, road, rail and water. With its northwest corner touching on the Great Lakes, Indiana alao has access to the Atlantic Ocean. To ensure convenience, the state built a state-of-the-art, deep-water harbor on its Lake Michigan shore.

Indiana tops the nation in the number of interstate highways. The state calls itself the Crossroads of America, and for good reason. Interstate 69 connects the northeastern manufacturing sectors with Detroit and the Great Lakes, and it and Interstates 65, 70, 74, 80 and 90 all merge in Indianapolis.

Midwest benefits
Frito-Lay, a subsidiary of Pepsico Inc., has undergone a number of expansions in Indiana. One reason the company decided to expand in the state is Indiana's incentives package, including its Training 2000 program.

"I am a big advocate of the business climate in Indiana," said John Riley, manufacturing manager at Frito-Lay's Frankfort plant. "I grew up in Indiana and was very excited when Frito-Lay decided to locate in Frankfort because I knew these facilities would be successful. The state has opened up an aggressive incentive package -- of which the training program is a major part -- that is attracting large corporations.

Indiana businesses enjoy extremely competitive energy costs. The rates for all industrial users in the state are 17 percent lower than the national average, and residential energy users pay an average of 18 percent less than national averages.

"I like the warm, family atmosphere of the Midwest, seen especially here in Indiana," said Riley. "This makes for a better work environment and helps pump up the spirit of your workers."

 

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