It's not uncommon in the auto industry for suppliers to cluster around a manufacturer. It is, however, a bit unusual for five suppliers of that manufacturer to locate in the same county.

Such is the case in northwest Ohio, where GM Powertrain spent $127 million for a new assembly line to build aluminum blocks for automobiles at its facility in Defiance County. GM Powertrain builds engine blocks for cars and trucks.

Following news of the expansion, five GM Powertrain suppliers located plants in the county. They include:

One Source Diversified - will invest $3.2 million to construct a new building, which it will lease to several other suppliers

CBS Boring & Machine Co. - the company is spending $30 million and hiring 35 people for its Defiance facility.

Advantage Power Coating - will expand into building owned by OneSource Diversified.

DQE Energy Services - invested $35 million and created seven jobs. DQE provides energy conditioning services for the new engine assembly line.

Ohio explores "Third Frontier"

To make sure Ohio's economy and companies continue to grow for years to come, Ohio Gov. Bob Taft is pushing the Third Frontier Project, which would transform the state over a 10-year period. In February, Taft announced his proposal and has been touring the state to drum up support.

The goal of the Third Frontier Project is to expand Ohio's high-tech research capabilities and to help start-up companies grown. If the plan is approved, the state would spend $1.6 billion in the following areas:

*$500 million into the existing Technology Action fund, and the Biomedical Research and Technology Transfer Fund

*A new, 10-year, $500 million program to improve research facilities. The money would go for buildings and equipment in centers of innovation, which will be named after the Wright brothers

*A $500 million bond program to recruit researchers and to bring products to market

*Starting a $100 million Innovation Ohio fund for targeted industries with high growth and high-wage potential.

In addition to the state money, the governor will also push for federal and private funding to bring the total investment to more than $6 billion.

Distribution centers thrive

Ohio's location makes it ideal for companies looking to distribute goods to customers in a hurry. Companies in the state have access via interstate highway, top-flight international airports at several locations and water access through Lake Erie.

In Walton Hills, near Cleveland, Tran-star Industries Inc. expanded its distribution facility by 50,000 square feet last year. The company, which distributes auto transmission repair products, invested $2.8 million and will create new 28 jobs over the next three years at the now 130,000 square foot building.

"In the last five years, the company has gone from 10 to 20 distribution centers," Stephen Duke, vice president of finance for Tran-star, told Crain's Cleveland Business.

Tran-star has 150 employees at the Walton Hills location. The company will receive an income tax credit from the state of Ohio that will save the company $90,000 over the next five years, according to Crain's.

Cuyahoga County also kicked in a $200,000 loan at a 4 percent interest rate for the project.

NEOTEC offers unique approach

In northeast Ohio, six counties have banded together to run a foreign trade zone. The organization, called NEOTEC, is in charge of FTZ 181, which includes nine sites and one subzone throughout the six-county area.

Companies in an FTZ get deferral or elimination of duties, excise tax reductions, exemption from inventory tax, and a host of other benefits on goods moving through the zone. One of the sites in the FTZ, called Aero Park, is at the Youngstown-Warren Regional Airport. The park features 500 acres and a new highway interchange.

Another FTZ site, this one in Mahoning County, is home to an expansion. CO-Steel, based in Canada, constructed a $26 million steel fabricating facility, which covers 300,000 square feet.

The FTZ also features sites along the Ohio River and at the Mansfield-Lahm Airport, among others. In Hudson, Ohio, Kobelco Stewart Boiling Inc., a maker of equipment and systems for the plastics industry, recently opened a facility in the FTZ.

DEMOGRAPHY AND ECONOMY

Population: 11.4 million

Capital: Columbus

Three Largest Cities: Columbus, 671,247; Cleveland, 501,662; Cincinnati, 330,914

GSP: $341 billion

Per Capita Income: $27,152

Percentage of Private Manufacturing Labor Force Organized: 28.1%

Right to Work State: no

Unemployment Rate: 4.8% (Dec. 2001)

Average Hourly Manufacturing Wage: $16.74

Population Age 25 and Over With Bachelor's Degree or More: Columbus, 24.6%; Cleveland, 28.1%; Cincinnati, 22.2%

Corporate Income Tax Rate: 5.1-8.5%

Percentage Employment by Sector: construction, 4.3%; manufacturing, 19.1%; mining, 0.2%; service industries, 28.3%; transportation/public utilities, 4.4%; wholesale/retail, 24.0%

BUSINESS ASSISTANCE

Major Financial Incentives: enterprise zones, revolving loan funds, technology investment tax credit, minority direct loan, Ohio Job Creation Tax Credit, etc.

Worker Training Programs: Ohio Industrial Training Program; Ohio Training Tax Credit Program; Ohio Dept. of Education programs; Ohio Board of Regents programs, etc.

Technology Transfer Programs: 7 Edison Technology Centers, 9 Edison Incubators, 2 Federal Technology Transfer Initiatives

Enterprise Zones: 300

Foreign Trade Zones: 8; Toledo, Cleveland, Cincinnati, Dayton, Clinton County, Franklin County, Findlay, Akron-Canton

International Trade Offices and Locations: Tokyo, Japan; Toronto, Canada; Tel-Aviv, Israel; Brussels, Belgium; Hong Kong, China; Mexico City, Mexico; Johannesburg, South Africa; Columbus, Ohio (Brazil)

QUALITY OF LIFE

Price for a New 2,400-sq.-ft. Home: Cleveland, $209,633; Cincinnati, $183,500; Toledo, $196,275

Cost of Living Index: Cleveland, 109.8; Cincinnati, 98.3; Toledo, 101.5

FOR MORE INFORMATION CONTACT

Bruce Johnson, Director, Ohio Department of Development, 77 S. High Street, Columbus, OH 43215, (800) 848-1300, fax (614) 752-4858, Web: www.connectohio.com