That's encouraged in the Green Mountain state, where state officials initiated a major package of incentives this year to help industries grow.

It's only a few hours by highway from the New York and Boston metropolitan areas, and within easy reach of the major eastern ports of entry in Montreal and Boston.

Northeast Cooperatives, a 14-year-old distributor of natural and organic food and natural products, is taking advantage of that access.

The company, the second largest distributor of organic produce on the East Coast, is expanding its facility in phases from 60,000 square feet to 470,000. Employment is projected to reach 550.

Its distribution network extends from its Brattleboro base to 1,400 customers in New England, New York state, eastern Pennsylvania and northern New Jersey.

"Vermont is an interesting combination of careful development to minimize urban sprawl and maximize organizational growth that is in step with the ecology and the environment, socially and politically as well as biologically," said George Southworth, CEO and general manager of Northeast Cooperatives.

"Yet, the state works hard to nurture and support business growth. The state struggled with this delicate balance, but it is successful."

Nexus Custom Electronics, Inc., which is expanding from 111 employees to 140, considered other states before deciding to remain in Vermont.

Paul Horn, chief financial officer, says the manufacturer of printed circuit boards considered expanding out of state, but decided to stay in Brandon because its building and land costs were lower than in surrounding states. He also said the labor rate was competitive, and turnover is low.

New incentives
Vermont's incentives are another example of its support for businesses. Earlier this year, the state initiated a comprehensive package of programs to stimulate quality job growth. Small businesses are the principal beneficiaries of the package, which includes:

• State income tax credits for increased payroll expenses, research and development costs, training costs, out of state sales and capital expenditures.

• Property tax stabilization agreements.

• Sales and use tax exemptions.

• Exemptions from statewide education property taxes.

• A series of tax credits, loans and grants for development or rehabilitation of buildings within designated downtown development districts.

Stellar work force
Business leaders cite the quality of Vermont's work force as a major factor in the growth of business.

Concentrated Knowledge, a publishing company, had eight employees when it relocated to Vermont.

It now has 21 full-time workers and, in addition, outsources much of its professional and support services.

Joel Melnick, CEO of Nathaniel Electronics, moved to Vermont from Washington State in 1982. Melnick started his business in a garage. It now has 28 employees, and he anticipates growing to 75.

"There is a good pool of people at a reasonable salary range," Melnick says. "They work hard, they are respectful, and they want to do a good job."

Quality of life
Quality of life was a strong consideration for Husky Injection Molding Systems, a Bolton, Ontario-based supplier to the global plastics industry.

The company looked at many East Coast locations before it purchased 700 acres in Milton. It has an $80 million investment in the project, which will employ 240.