Companies, no matter in what industry or how large or small, appreciate a state that is serious about seeing businesses succeed. One of the most sure-fire ways for states to convince chief executives that they mean business is to lower business costs, specifically taxes.

In recent years, Ohio legislators and elected officials have made a concerted effort to lower the cost of doing business in the state, with tax reductions across the board leading the way.

In fact, when Total Quality Logistics (TQL) announced in May that it was creating nearly 600 jobs in Union Township, company officials cited tax reform as a factor in the decision.

“We have been impressed with the efforts of state, county and local officials in making the Union Township site an attractive option for us,” said Kerry Byrne, executive vice president of Total Quality Logistics. “TQL [has] found a long-term solution that will accommodate our need for space as we continue to grow.”

Cincinnati-based TQL provides logistics and trucking services to companies throughout the world. The company will spend nearly $15 million to build a sales and customer service center in Union Township. TQL considered sites in several nearby states before deciding on Union Township.

Ohio’s tax reform is one of the most comprehensive in its history. It eliminates tax on tangible personal property and the corporate franchise tax, and slashes personal income tax by 21 percent. In addition, sales made to locations outside of Ohio are exempt from the state’s commercial activities tax.

Another company executive, David L. Swift, president of Whirlpool, specifically mentioned tax reform as a reason why the appliance manufacturer decided to expand its facilities in Sandusky and Marion counties.

Whirlpool began looking to consolidate some of its operations following its merger with Maytag. In the end, the company decided to move nearly 1,100 jobs to its facilities in Ohio from Maytag operations in other states.

“The improved business climate, including tax reform, has made Ohio a more attractive place to do business,” Swift said.

Whirlpool already employs more than 6,100 workers at its plants in Marion and Sandusky counties. In all, Whirlpool plans to spend $53 million in new machinery and equipment at the sites, in addition to the job creation.

To help sway Whirlpool’s decision, the state of Ohio offered a combination of loans, grants and tax assistance for the project.

Something For All

In addition to the business tax improvements in Ohio, the state offers other advantages to businesses looking to expand or relocate. Draw a 600-mile circle around Ohio and a business reaches 60 percent of the U.S. population and 50 percent of the Canadian market.

And businesses have their choice of transportation methods to transport goods to that market. With nine ports on Lake Erie and 16 terminals on the Ohio River, companies can quickly move goods via water. If air transportation is preferred, the state offers three air cargo hubs and 180 public airports. Via ground transport, Ohio has the fourth-largest interstate highway system in the country in terms of miles.

To top it off, the state boasts a work force of more than 5 million adults, and an extensive college system produces nearly 50,000 graduates from universities and colleges every year.

Amylin Pharmaceuticals liked all those factors when making its site location decision earlier this year. The San Diego-based drug manufacturer announced in December that it had purchased a 150,000 square foot building and 26 surrounding acres in West Chester, near Cincinnati. The company began to renovate the facility in February, with completion scheduled for later this year.

When complete, the West Chester facility will produce a long-acting release form of exenatide, a development drug for the treatment of Type 2 diabetes. The company is spending $150 million at the site and expects to create more than 50 jobs within three years.

“This is truly a monumental day in the life of our company and, we hope, something that will change the lives of millions of people with diabetes around the world,” said Ginger Graham, president and CEO of Amylin. “We are also pleased with the cooperation and resources available to us in Ohio and Butler County and look forward to building relationships within the community.”

According to Graham, the recent tax reform also played a major role in the company’s decision to expand in Ohio.

Another pharmaceutical company announced in January that it intended to expand its facility in Clinton County. Alkermes, based in Cambridge, Mass., develops medications to treat schizophrenia and alcohol dependence.

“Alkermes is pleased to be expanding its manufacturing facility in Ohio,” said Jim Frates, chief financial officer for the company. “The decision was driven by the recent tax reform and the excellent reception from Ohio, Clinton County and Wilmington. We have a long-term commitment in Ohio and look forward to bringing additional jobs into the region.”

During the past five years, employment at Alkermes’ Ohio facility has jumped from 57 workers to 275 workers. That number could go to as many as 500 in subsequent years. Alkermes plans to add 44,000 square feet to the existing 100,000 square foot existing facility.

Nearly a dozen pharmaceutical manufacturing companies are located in Ohio, with almost 600 bioscience companies in the state. In conjunction with the announcement by Alkermes, the state of Ohio said it would modify a 10-year Job Creation Tax Credit originally issued in 2001. The state will increase the tax credit from 60 percent to 70 percent for the remaining five years, covering the creation of about 275 jobs.

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