Economic Development Expertise

In partnership with fellow Central Indiana Corporate Partnership organization Conexus Indiana, I penned the following column -- now appearing on the Inside Indiana Business website -- highlighting some of the monumental clean-tech energy and Indiana advanced manufacturing success stories coming out of the first 45 days of 2010.

 

About Conexus: Conexus Indiana is the state’s advanced manufacturing and logistics initiative, dedicated to making Indiana a global leader in these high‐growth, high‐tech industries. Conexus is focused on strategic priorities like workforce development, creating new industry partnerships and marketing our competitive advantages.

Here is the column as it appears on insideindianabusiness.com:



2010 Off to a Fast Start in Green Manufacturing Success Stories

What do you get when you combine cutting edge technologies, a legacy of engineering expertise, and a rich manufacturing heritage? A flurry of good news that puts central Indiana in the driver's seat of activity to put more electric vehicles on our highways and make renewable energy a practical reality. And if the rest of the year looks anything like the first few weeks, 2010 will be known as the Year of Clean-Tech here at the Crossroads of America.

Let's run down a few of the highlights:

In Anderson, Ind., Remy International announced a new business unit dedicated solely to the development and manufacturing of electric and hybrid motors. Remy is already the largest U.S. producer of hybrid motors, and last year earned a $60 million grant from the U.S. Department of Energy as part of an initiative to fuel development of electric vehicle batteries and components.

The move could spur significant investment and create hundreds of new jobs over the next few years, and appears to already be paying dividends – Remy just announced a major contract to supply Mercedes with hybrid motors.

When it comes to electric vehicles, the "green-tech" juggernaut known as EnerDel continues to produce new jobs and investment in the Indianapolis Region, along with cutting-edge batteries. As the only U.S. manufacturer of the lithium ion batteries that power hybrid and plug-in electric vehicles, EnerDel has tapped the rich reservoir of engineering talent that created General Motors' EV1 and other groundbreaking projects here in the region. EnerDel just announced a major new manufacturing facility in Greenfield, Ind., that will ultimately employ 1,100+ -- thus expanding a footprint in greater Indianapolis that includes its northeast Indy headquarters and a battery pack assembly facility in Noblesville, just north of the city.

Throughout the state, tremendous wins are being registered in attracting clean tech manufacturing. Think North America, an electric car manufacturer, has chosen Elkhart as the site of its first U.S. manufacturing plant, joining Electric Motors Corp and NaviStar as the hub of a growing green vehicle cluster along Indiana's northern border.

Brevini Wind (in Muncie, Ind.) has earned $12.8 million in federal tax credits to manufacture gear boxes and other technologies for its massive wind turbines. Just a few weeks ago, U.S. Secretary of Energy Chu visited Columbus, Ind., to announce $54 million in federal stimulus grants to Cummins to increase engine fuel efficiency.

Like any high-tech, innovation-driven industry, the clean tech sector demands a skilled workforce. Here too, Indiana is making great strides, as the state's Department of Workforce Development recently secured a $6 million grant from the U.S. Department of Labor to help workers from other manufacturing sectors take advantage of new jobs in the clean tech space.

The Indy Partnership has aggressively pursued companies in the energy innovation and green manufacturing arenas, both here and abroad – including multiple visits to Europe and China. We plan to continue these recruiting efforts in the years to come, and the level of activity so far in January tells us that our hard work is paying off.

Download our Indiana Clean-Tech Energy Industry Report.

Central Indiana has a long-term strategy designed to strengthen our world-class clean tech sector and re-energize our manufacturing base. Our sister initiative, Energy Systems Network, is playing a leading role in making Indiana a center for energy innovation. The success stories that have marked the start of 2010 are early dividends, but we're confident the best is yet to come.

As the economic development arm for the Central Indiana Corporate Partnership (CICP) and the 10-county Indianapolis Region, Indy Partnership will be doing its part to tell this story and maximize our potential in this booming area of cutting-edge clean technology industries. In Indiana, green tech means green jobs; in other states, they're just green with envy at our success.

• Largest Life Sciences Companies (Statewide) - Available as point data on "Map Overlays"
• Manufacturing Employment (Region) - Available as county-level thematic layer
• Logistics Employment (Region) - Available as county-level thematic layer
• 2007-2008 Population Change (Region) - Available as county-level thematic layer

INDIANAPOLIS (Sept. 24, 2009) - Indiana's growing national reputation as a great state to do business has received another boost. The state moved up two places in the Tax Foundation's 2010 Business Tax Climate Index for business tax climate. Indiana is 12th overall, up from 14th in 2009, and remains the top state in the Midwest for business tax competitiveness.

The Tax Foundation is a nonpartisan tax research group based in Washington, D.C. 
 
Rankings for other nearby states include Michigan 17th; Kentucky 20th; Illinois 30th; Wisconsin 42nd; Minnesota 43rd; Iowa 46th; and Ohio 47th. In its seventh year of publication, the report measures five indexes of states' business tax competitiveness including property tax rates, sales tax, individual tax, corporate tax and unemployment insurance taxes.  The Tax Foundation presents the Index annually as a tool for lawmakers, businesses and individuals to gauge how their states' tax systems compare.

"While other states are imposing tax increases to cover budget shortfalls, Indiana's solid fiscal house and competitive tax environment have earned us national attention as a frontrunner for new jobs and investment," said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.  "While there is still much work to be done, Governor Daniels' focus on job creation and economic development continues to pay off, even during a time of national recession."
 
The Tax Foundation study is the latest in a series of national accolades the state has scored in economic development.  In March, Chief Executive magazine found the Hoosier state to be the best place to do business in the Midwest and among the top 11 states nationwide for business, according to feedback from more than 500 businesspersons and published in its annual "Best & Worst States" survey.
 
The Tax Foundation's full report is available at www.taxfoundation.org .
 

For anyone who travels frequently, you know there is a fair amount of strategizing when it comes to packing a suitcase. You don't want to pack too much, but you don't want to be left without your essentials. I think we all have our little traveling essentials, right? For me, especially when I travel to Europe, it is my comfy little black flats that go with any suit or outfit. I'm always running to my next appointment or trying to catch a train or a plane. Believe me, it is absolutely essential to have a great pair of shoes. I also have this great suit jacket that goes with anything - dress slacks, jeans - it's very versatile.

As you can probably tell by now, I take packing very seriously. Packing smart and thinking ahead means you're prepared (even for the unexpected). In fact, when I think about it, I have really been packing for this trip since mid-June (or really since last fall). Okay, so now you're really thinking I'm high maintenance! No, what I'm referring to is all of the planning and strategizing that has taken place up until now - all of the activities that go on BEFORE I pack my suitcase.

So I thought my first blog about this trip would be dedicated to the essentials. It is also a tiny peek into the process that we go through in preparing (or packing for) a business development mission.

1.)  Let your strengths be your guide.

Our primary strengths include our location, cost of doing business and workforce (among other strengths). Workforce is probably the most important. I always tell people that in Indiana, we make things and we make them well. Whether it's pharmaceuticals, vehicle engines or batteries, we have the manufacturing talent here that enables companies to be extremely competitive in the marketplace. So, we started with our strengths. Southern Germany is known around the world for its manufacturing base. The two German States of Baden-Wurttemberg and Bavaria (which basically make up all of southern Germany) are where Germany's major manufacturers are located -- including Daimler Benz, BSH Bosch, Siemens, BMW and EADS. High-tech companies account for nearly 60 percent of manufacturing employment in Bavaria alone. Though there are many large, global companies in this region, there are also a lot of small to mediums sized manufacturers that have not yet made investments in the U.S., or they may have a small sales presence only. These are the companies we want to engage.

2.)  Do your homework.

After evaluating our strengths and applying that value chain to a specific region, I then turn to our research staff. Our research department at Indy Partnership has several databases they subscribe to that track and compile data on companies around the globe. Their sources for a company's revenue growth, employment, recent investments and other important details coupled with their data analysis help me to develop a quality prospect list.

3.)  Leverage all resources and partners assets.

Partners are critical. Our targets and search criteria are less effective if we don't seek input and cooperation from other partners engaged in the similar activities with the similar goals. When working in Germany (or anywhere else outside of the U.S.), it is important to engage our state of Indiana partners with the Indiana Economic Development Corporation. Through their international office in Berlin, Germany, IEDC officials help us with outreach and securing meetings abroad. They also give us important, on-the-ground feedback about our targets. In addition to our resources at IEDC, we reach out to the private sector (our investors, stakeholders, existing industry base) and our world renowned universities who are also engaged with global players and global initiatives.

4.)  Bring something valuable to the table.

At the Indy Partnership, we like to pride ourselves on providing not just good information, but information customized to our customers and their needs.  This requires us to know a lot about our customers before we even walk into meetings. It requires us to find the messages and information that are specific and will be most important and compelling to our target clients. It also requires us to be good listeners and follow up in a timely fashion.

Any business development trip, whether it be domestic or abroad takes a lot of preparation and a lot of hard work. It is a continual process that you have to keep building upon.

European Trade Mission Essentials:
 

• Comfy black flats - $40;
• Stylish, Versatile Suit Jacket - $120;
• Flying to Germany with the peace of mind that you're prepared and ready to meet your customers - Priceless

Chances are that you've probably never heard of SMC Corporation, or if you have, you probably don't know much  about the company. So you might wonder why four of us spent half a day calling on SMC's executive leadership in Tokyo.

Let me tell you something: it was time well spent. 

First, a bit of background on the company: SMC is a $6 billion enterprise; founded 50 years ago in Japan, it now has 320 subsidiaries and affiliates in 50 countries around the world. The company is the world leader in pneumatic control technology -- high tech devices increasingly found in the automotive sector, medical diagnostic equipment, food processors, machine tools and thousands of other places.

While SMC has been in the Indianapolis area since the 1970's, the company broke ground three years ago in Noblesville to establish its North American headquarters, also known as the U.S. Technical Center.  The facility employs 130 engineers and numerous support personnel in an 800,000 square foot facility just off Exit 10 in Noblesville.

So that's why four of us -- Noblesville Mayor John Ditslear, city Economic Development director Kevin Kelly, Theresa Kulczak of the Japan America Society of Indiana, and me -- paid a courtesy call on SMC Chairman Yoshiyuki Takada, President Katsunori Maruyama, and Executive Managing Director Ikuji Usui at SMC's corporate headquarters in Chiyoda-ku, Tokyo.

Mr. Takada founded the company 50 years ago; a distinguished and soft-spoken man, he's exactly who you'd expect central casting to cast as the senior executive of a leading Japanese company. His trip to the Noblesville facility groundbreaking three years ago was his last visit to the continental U.S., although we did learn he loves to take golf vacations on Oahu.  

The meeting went great, just about as you'd expect. Mayor Ditslear did an excellent job expressing the community's appreciation for the company's presence, and offered to be of additional assistance in helping the company grow and succeed. Through an interpreter, Mr. Takada expressed the company's thanks to the community for its support. Lots of small talk, pictures, hand shakes, etc.

And then the fun part began.

Our group piled into a company van and followed the execs to Zakura, a restaurant a couple miles away. Relieved of our shoes, we were ushered into a private tatami mat room to sit around the low table (fortunately, a leg well below the table meant we didn't have to sit cross-legged for two hours).

"Would you like Western-style food or traditional Japanese fare?" Takada-san asked.

Traditional Japanese style, we quickly replied. "How about a beer?" they asked.  Ah, yes: beer, the universal language. Didn't want to be rude and make our guests drink alone, so of course we said yes. 

And then the first dish appeared. The barbeque sauce nicely highlighted the rings of the octopus tentacles as they sat on the plates before us. For just a moment, I wondered if we might not have overstated our zeal for an authentic Japanese dining experience. But what the heck; there was no going back now. With a silent shout of "banzai!" I dove into the octopus with gusto.   Quite tasty, it turns out; tastes nothing at all like chicken, but was nonetheless very delectable.

Next up: a course of blowfish. Yes: the fish that can kill you if prepared improperly.  Hmm.  I made a quick risk assessment: Takada-san was going to eat the same thing as the rest of us. It would be very bad for business if the restaurant injured the chairman of a major Japanese corporation during lunch. So I figured they'd be careful. Turns out I was right. And guess what: the blowfish did kind of taste like chicken.

Two hours later we'd gone through sashimi (tuna and snapper); soba noodles with raw quail egg; spiced beef and vegetables; green tea ice cream and sherbet. More importantly, we'd spent two hours getting to know the top management of a growing company that has its eyes on additional opportunities around the world, any of which might bring more benefit to our region. Sitting on a half billion dollars in cash reserves and with an eye toward bargain shopping in this economy, SMC Corporation might well become much better known in our community in the coming years.

We concluded a wonderful meal with new friends, and made our way back to the company van.  Our parting image was of the distinguished Takada-san and his executive leadership team, lined up on the sidewalk, bowing as our minivan pulled away from the curb.  When was the last time you saw an American CEO do that after a business lunch with strangers?

So at 8:00 o'clock this morning, the delegation boarded the bus and began the three-hour drive from Shanghai to Hangzhou. Governor Daniels called shotgun; yes, sometimes it's good to be governor. I sat next to Mayor Wayne Seybold of Marion; yes, sometimes it's good to be mayor. Anyway, I had a great conversation with the Mayor about the innovative things they're doing in his community to spur economic growth. This is his third trip to China in the past 9 months, and each time, he's following up with companies and contacts to make the case for investing in Marion. It sounds like his community has some great opportunities as a result of his hard work, and we all can benefit from Mayor Seybold's example here: be strategic, committed, and focused on the long-term. (In case you're wondering, this is an unpaid, unsolicited commercial for Mayor Seybold; I just think it's important to give credit to creative public leaders).

After sitting in Shanghai rush hour traffic for about an hour (trust me, after sitting in this stuff for two days, the traffic on I-69/I-465 each morning should be embarrassed to call itself congestion), we hit clear sailing for our next destination: Hangzhou, the capital city of Zhejiang province.

Our tour guide, a native Shanghainese, cracked us up when she referred to Hangzhou, with no sense of irony, as a small bedroom suburb of Shanghai. Small, as in only 6 million+ people living there (compared to Shanghai's 20+ million residents). 

For all of its modern ways -- nice charter bus, new highways -- China can still surprise you with a throwback to days gone by. We stopped at a rest stop after a couple of hours for a coffee and restroom break, and just as we were about to hop off the bus to grab a snack, the tour guide reminded the women to take their own toilet paper with them. Yeah, that's right, it's BYOTP in most public toilets in China. (And now you know why pocket size Kleenexes were on the suggested packing list for the trip).

So on one hand, you have to pack your own paper for a public restroom that looked like it was channeling the 1950's. But a mere 100 meters away, running parallel to the interstate, work crews were building huge concrete pilings and supports for a high-speed rail track that will connect Shanghai and Hangzhou. So here's the question that interests me: do you think they'll have toilet paper in the bathrooms of the 265-mph bullet trains that will run on those new tracks? Who knows; maybe it's just easier to hold it when you're going that fast.

I simply can't describe all the construction activity we saw on the drive into Hangzhou. At one place, at least 20 sky cranes were lined up in a row, lifting midrise office or apartment buildings of 10-20 stories each out of the ground.

We arrived at the Hangzhou Shangri-La with just enough time to grab a bite for lunch before heading over to a special event on the hotel's grounds: the public launch of Hangzhou hybrid transit buses powered by Cummins engines.

The Hangzhou Transit Company has nearly 1,400 buses -- a third of its fleet -- that are powered by Cummins diesel engines. Today the company launched 50 new buses that employ hybrid technologies along side the diesel engine, that will permit fuel savings of 20% or more. Check out the Governor's website for more coverage of this event, if you're interested.

What's the Indiana connection, other than a great Indiana company doing good things on the other side of the globe? Cummins is a key partner in the "Hoosier Heavy Hybrid" initiative, working with Delphi, Duke Energy and Allison Transmission, among others, to create heavy and medium weight hybrids. You can check out a nifty little video on the program on the Central Indiana Corporate Partnership's website. Part of my focus on this trip has been talking about that initiative and many others, including a meeting tomorrow with a Chinese auto manufacturer to talk about electric and plug-in hybrid vehicles.

One last note: today was a very lucky day in China. The number 9 is considered to be a lucky number, so the date of 9/9/09 (or 09/9/9, as the Chinese might write it -- year, date, month) will only be surpassed in 90 years as the luckiest date on the calendar. That made it a good day to get married in China. As far as I know, none of our delegation participated in that local custom today. 

• quality of life
• sense of place
• quality of people
• low taxes
• terrific business environment
• arts and culture
• sports (especially motorsports)
• life sciences and quality health care
• ever growing diversity
• proximity to great universities
• location in the country
• availability of real estate
• low cost of housing
• and just a wonderful place to raise a family

In a news story released today by our friends at the Indiana Economic Development Corporation, a Portland, Ind. company called Sertech Heating and Air Conditioning Inc. was recently awarded a $77,000 grant from the United States Department of Agriculture to further develop its proprietary solar technology.

From the story: "Under development by Sertech Owner Wayne Blevins for nearly five years, the company's Solar Thermal Energy Storage Vessel is similar in size to a residential water heater and contains a proprietary mix of environmentally friendly chemicals that can more efficiently store the sun's heat. Sertech is using the grant to fund a feasibility study with Ball State University."

While Portland, Ind. is located just outside of the 10-county Indianapolis Region, this story is yet another example of Indiana innovation and leadership in the clean-technology, renewable energy space. There are currently more than 100 Central Indiana companies working with or developing new products and technologies that reduce our dependence on fossil fuels.

Both Bright Automotive with its 100 miles-per-gallon fleet vehicle, and EnerDel with its comprehensive hybrid-electric battery production have been making national headlines for a while now. But lesser known clean-tech energy projects are underway here, too.

Projects such as the collaboration between Cummins, Allison Transmission and Delphi called Hoosier Heavy Hybrid, which seeks to bring more cost effective light, medium and heavy duty hybrid trucks to market. And Project Plug-IN, a collaboration among auto, technology and utility companies, including Duke Energy and Indianapolis Power & Light Company (IPL). The project will build the infrastructure to support plug-in vehicles, such as "smart grid" technology that would allow Indianapolis metro commuters to plug-in and recharge their vehicles at home and in downtown parking garages.

And there are many, many more projects underway.

In fact, there is so much activity in Indiana in the clean-tech energy space and so much potential for more activity, that Indy Partnership President and CEO Ron Gifford recently made a bold statement in an address to Indy Partnership investors.

"No other region in the U.S. is better positioned to become the manufacturing epicenter for clean-tech energy compared to the Indianapolis Region," Gifford said. "In addition to our high renewable energy rankings, we offer the most productive manufacturing workforce and the best business climate in the Midwest. When coupled with our central location, our logistics infrastructure, and experienced workforce, it's hard to imagine anyone else competing on this level."

RECENT RANKINGS:

• #1 Advanced Manufacturing Technology
  The Ewing Marion Kauffman Foundation ranks Indiana as the top state in the U.S. in advance manufacturing technology.
   
• #1 Manufacturing Productivity
  The Census of Manufacturers determined that Indiana has the most productive manufacturing workforce in the Midwest.
   
• #1 Wind Energy Growth State
  The American Wind Energy Association ranked Indiana the fastest-growing wind energy state in the country in 2008 and continuing today.
   
• #2 Renewable Components Manufacturing
  The Renewable Energy Policy Project (REPP) recently identified Indiana as the 2nd best state for jobs and investment in renewable energy when normalized for population. 
   
• Twice the National Average
  Manufacturing employment makes up 13% of the Indianapolis Region's workforce, which is more than twice the national average.
   
• High Manufacturing Facility Concentration
  The Indianapolis Region has more than 375 manufacturing facilities with greater than 50 employees.

--A new, 1.2 million-square-foot, 40-gate terminal building featuring outstanding architecture, the ability to accept international arrivals, enhanced retail and dining opportunities and the capacity to handle growth from the airport’s current 8.2 million annual passengers.

--A new, five-story parking garage that can accommodate 5,900 cars and 1,200 rental cars.

--More than 17,000 parking spaces, including the garage and surface lots.

--Direct access from Interstate 70 just west of Interstate 465.

--The FedEx expansion will increase package processing capacity more than 30 percent, from 75,000 packages per hour to 99,000 packages per hour, at the second-largest domestic FedEx Express hub behind Memphis.

--The additional capacity is needed to meet forecast long-term package-volume growth, particularly for international shipments. FedEx operates international flights from Indianapolis to Europe, Asia and Canada.

--The expansion includes a 400,000 square foot expansion to the hub's existing sort facility and construction of a 175,000 square foot secondary sort building.

--Two maintenance buildings — including a 40,000 square-foot facility for aircraft maintenance and an 8,000 square-foot facility for ground support equipment — will push total hub growth by more than 600,000 square feet.

From an economic development perspective, the new Indianapolis International Airport is obviously of great benefit to the Indianapolis Region and its business clusters such as advanced manufacturing and transportation logistics. But its also beneficial to the other business clusters, such as life sciences, technology and motorsports because of the expansion of the FedEx hub (which is already the second largest in the world) and the improved ease of both commercial transport and consumer travel.

A few photos of the new Indianapolis International Airport provided by Rob Banayote of Banayote Photography (www.banayote.com):


















































Visit http://www.indianapolisairport.com/ to learn more.

Inaugural Real Estate Trends in Indiana Report to be released at "Emerging Trends in Real Estate" event on Nov. 18

The ups and downs and areas of opportunity within the real estate industry have great impact on economic development here in the 10-county Indianapolis Region and across the nation. As critical as superb transportation, distribution and logistics infrastructure as well as world-class workforces are, real estate issues can make or break a business relocation or expansion project.

"It is the combination of our assets that gives the Indianapolis Region its competitive advantage over the coasts and neighboring states,” said Ron Gifford, president and CEO of the Indy Partnership. “Having better access to rail service and interstates wouldn’t do us much good if our real estate rental rates were three or four times higher like they are in California and Florida, for example.

“That’s why we are supporting the Urban Land Institute Indiana as a sponsor of its upcoming ‘Emerging Trends in Real Estate’ event and why we are particularly eager to see its Real Estate Trends in Indiana Report become a successful annual resource.”

According to Area Development magazine’s 2007 Annual Corporate Survey, real estate issues were said to be “important” and “very important” by between 79 percent and 89 percent of all respondents when ranking their expansion and relocation priorities. These issues range from availability of buildings and land, construction costs, “fast-track” permitting, energy considerations and residential housing availability and costs. In fact, real estate issues account for three of the top five site selection factors tracked by the survey.

According to Matt Waldo, director of research for the Indy Partnership, the Indianapolis metropolitan area ranks as the “second most affordable” among 46 major metro areas for industrial warehouse rental rates (based on 2008 Mid-Year Market Report data from Cushman&Wakefield) and is highly competitive in Class A and Class B office space.

“The Indy Partnership was directly involved in the decision making process for seven of the 10 largest real estate lease transactions in Indianapolis from the middle of 2007 through the middle of 2008, and I can tell you with the highest degree of certainty that understanding the real estate trends in the Indianapolis Region as they relate to the nation was critical to making the argument to create jobs and invest here. The Urban Land Institute Indiana’s report will enhance our ability to continue this track record of success for our region,” Waldo said.

Learn more about the "Emerging Trends in Real Estate" event .

Cities of Indianapolis and Bloomington lead employment growth with 0.8% and 1.1% respectively in new jobs from September 2007 through September 2008.

While the 10-county Indianapolis Region is not exempt from some of the negative effects of economic woes that our nation is facing, there are positive indicators that show Central Indiana faring better than our neighbors and better than the nation as a whole.

According to data released by the Bureau of Labor Statistics and reported by the Ball State Center for Business and Economic Research, two of the largest cities in the Indianapolis Region--Indianapolis and Bloomington--experienced 0.8% and 1.1% growth respectively in new jobs from September 2007 through September 2008. Both cities are also doing significantly better than the national average in unemployment.

"The positive news is that these two cities had a net jobs gain while many cities across the nation experienced significant losses," said Matt Waldo, director of research for the Indy Partnership. "It is one of several indicators that supports and validates the efforts of the Indy Partnership, its local economic development organization partners, the Indiana Economic Development Corporation and other contributors."

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http://www.bsu.edu/mcobwin/ibb/state/indiana/msa_l.htm

The Indiana Business Bulletin is produced and distributed by the Center for Business and Economic Research in the Miller College of Business at Ball State University, Muncie, Indiana. It may be reproduced in whole or in part provided proper source attribution is given.

For more information on subscribing, canceling, or customizing the Indiana Business Bulletin to suit your needs, please contact CBER by phone at 765-285-5926.

The Indianapolis Region, a 10-county economic development area in Central Indiana which includes Bloomington, Ind., provides incredible value to its residents. A study released last week by the Council for Community and Economic Research (C2ER) shows that the quarterly composite cost of living index scores for the Indianapolis MSA and the City of Bloomington are just 90.7% and 91.5% of the national average, respectively.  The composite index score incorporates metrics for housing, groceries, utilities, transportation, healthcare and miscellaneous services. 

"These data are continued positive news for companies considering relocating or expanding in the Indianapolis Region," said Matt Waldo, director of research for the Indy Partnership. "The Indianapolis economic development region offers numerous advantages for advanced manufacturing and logistics, life sciences, technology and motorsports industries among others, and the ability to extend a low cost of living to employees is critical."

The scores for each of the cost categories for Indianapolis and Bloomington, may be found on The Indy Partnership web site at

http://www.iredp.com/reportInterface/iw_p1.aspx?fsheet=qol&county=indianapolis%20region

InsideINdianaBusiness.com Report

Indiana Secretary of Commerce Nate Feltman talks about some of the state's big wins in 2007 and what helped make them happen.

For the second consecutive year, Indiana leads the nation in attracting new jobs through international investment, according to a report from IBM Global Business Services. The report puts Indiana number one per capita for international job attraction and number two overall for attracting foreign production jobs in 2007.

INDIANAPOLIS (Oct. 22, 2008) – Indiana leads the nation in attracting new jobs through foreign investment for the second consecutive year, according to the latest annual Global Location Trends report released today by IBM Global Business Services.

Released during an annual meeting of the International Economic Development Council in Atlanta, the report lists the Hoosier state as number one per capita for job attraction from international investment and number two overall for the attraction of production jobs from international companies.

"Governor Daniels's early decision to revamp our state's economic development efforts continues to pay dividends for Hoosiers," said Nathan Feltman, secretary of commerce and chief executive of the Indiana Economic Development Corporation. "The Governor's efforts to in-source jobs from around the world to Indiana compliment our efforts to retain and grow home-grown Indiana companies around our state."

The report, which registered more than 10,000 foreign investment project announcements made in 2007 across the world, includes top international investments in Indiana made in 2007 such as FoxConn, TS Tech, SMC Corporation, ArcelorMittal and others. Since 2005, international companies have invested more than $8 billion into their Indiana operations, creating more than 15,800 new jobs.

“Overall, global investment trends in 2007 show that companies are increasingly widening their investments to include more markets around the world in their efforts to access new markets, talent pools, or improved efficiency," said Roel Spee, global leader for IBM-Plant Location International. "But our study shows that the U.S. continues to be a top performer for creating jobs through new inward investments by multinational companies, and Indiana confirms its ranking among the leading states in several categories."

The latest IBM study is the latest in a series of national accolades the state has scored in economic development. Ernst&Young found the Hoosier state to be number one in winning new competitive job-creating investments from all sources when measured on a per capita basis in both 2006 and 2007.

The news of Indiana’s award-winning efforts to attract investment comes as the Indiana Economic Development Corporation is poised for a fourth consecutive year of record-breaking commitments for new jobs and investment. Since January, 130 businesses have committed to create 16,120 new jobs and invest more than $3.9 billion in their Indiana operations.

Following the governor’s creation of the agency in 2005, the state has logged three years of record-level attraction of new job-creating investment. Cumulatively since its inception, the Indiana Economic Development Corporation has worked with more than 600 companies that have committed to create more than 75,000 new jobs and invest more than $18 billion in their Indiana operations. Nearly two-thirds of all projects completed involve expansions of existing Indiana businesses.

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Indiana Secretary of Commerce Nathan Feltman serves as the chief executive officer of the IEDC. Since Daniels created the IEDC, the state has posted three consecutive years of record-breaking commitments for new jobs. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corporation

By: Nathan Feltman - Secretary of Commerce and President, Indiana Economic Development Corporation

as seen on Inside Indiana Business



Intellectual capital, public support, academic partnerships, workforce excellence, and business and industry collaborations are the driving Indiana's life sciences industry. As a center of innovation in the life sciences, pharmaceutical and medical device industries for more than a century, the Hoosier state is home to the second-highest concentration of biopharmaceutical jobs in the nation and the fifth largest pharmaceutical industry in the country.

Indiana's life sciences growth continues to accelerate. Witness the recent doubling of work force in nearby clinical laboratories, like AIT Labs and DCL Laboratories, along with the doubling in size of contract biotech manufacturer Cook Pharmica in Bloomington. Consider the thousands of new life sciences jobs that are coming to Indiana after Gov. Mitch Daniels' direction to the Indiana Economic Development Corporation to aggressively seek new job-creating investment in the life sciences to further strengthen and diversify the Hoosier economy. Those efforts have resulted in thousands of new job commitments from companies such as Medco (1,300 new jobs), Arcadia (300 new jobs), Precision Rx (1,200 new jobs) and Beckman Coulter (275 new jobs).

And while the large global companies capture the headlines, the state and BioCrossroads are ensuring the big life sciences companies of tomorrow are incubated and grown in Indiana with the help of seed capital from the state's 21st Century Research and Technology Fund along with BioCrossroads' Seed Fund. Together, these funds have provided seed capital for promising companies like Schwartz BioMedical, Kylin Therapeutics, QuadraSpec and ImmuneWorks, keeping these companies, their technologies and the promise of new high-wage jobs here.

By any measure, when it comes to life sciences and the growth of this highly desirable sector of high-skill, high-value, high-promise jobs and great companies, Indiana is winning. This is competition at its most intense, and we're playing to win.

To deliver that success we must continue to focus on strengthening the ties between innovations developed at our colleges and universities and businesses who can transform those innovations into life-changing and life-saving products and services. We must also ensure that we continue to offer the low-cost, pro-business environment – including low utility costs, workers' compensation and unemployment insurance rates – that has become a hallmark of the Hoosier state.

As our economy faces new challenges with increasing gas prices and tightening credit markets, we must continue steadfast in our effort to strengthen and diversify Indiana's economy in part by building upon our great successes in the life sciences. The high-skilled, high-wage jobs of this industry hold great promise for our state, and together I know we can realize the opportunity that has yet to fully unfold for Hoosiers in this exciting industry.

Nathan Feltman is Indiana Secretary of Commerce&President of the Indiana Economic Development Corporation.

EnerDel Batteries will Power Hybrid, Electric Cars:

INDIANAPOLIS (Aug. 21, 2008) - Governor Mitch Daniels joined executives from lithium-ion battery developer EnerDel today to announce plans to locate the company's new global manufacturing and development operations here, a move that is expected to create more than 850 new jobs across the state through 2012.

The developer of lithium-ion batteries for hybrid, plug-in electric and electric vehicles will expand its Indianapolis research and cell production center, build and equip a battery pack assembly center in nearby Noblesville, and locate a full-scale manufacturing operation at a still to be selected location in the Hoosier state.

"Eight hundred fifty jobs of any kind is great news. When those jobs are in a technology of tomorrow, like electric cars, it offers the prospect of even bigger news to follow. Indiana has what it takes to lead this automotive revolution and today is step one," said Daniels.

Part of Ener1, Inc., (AMEX: HEV), EnerDel currently operates a 92-person production facility on the northeast side of Indianapolis and plans to begin hiring additional engineers, production associates and administrative staff later this year.

EnerDel, founded in 2004, develops lithium-ion batteries for automotive manufacturers that are lighter, occupy less space, provide more power and have a longer life than the nickel metal hydride batteries found in today's hybrid vehicles.

"Indiana is the heart of America's manufacturing might, and a linchpin in the automotive industry. There is no better place to invest in the clean, green, energy efficient technology we need to power today's global economy," said Ulrik Grape, president and chief executive officer of EnerDel. "Indiana's educated, experienced workforce is second to none, and the enthusiastic commitment we have received from Governor Daniels and other leaders is absolutely unparalleled. We couldn't be happier to call this our home."

The Indiana Economic Development Corporation offered EnerDel up to $7.125 million in performance-based tax credits and up to $58,000 in training grants based on the company's job creation plans. The cities of Indianapolis and Noblesville will consider property tax abatement at the request of the Indy Partnership. The company will also seek local incentive offers from Indiana communities for the third manufacturing location.

"There is no doubt that EnerDel is a leader in advanced manufacturing, and we are fortunate that their new global manufacturing and development operations will be located here in Marion County," said Indianapolis Mayor Greg Ballard. "They are not only bringing great jobs and investment to our county, but they are serving as a sign that Marion County is a great home for the future of manufacturing."

"We are honored and excited that a growing and innovative company like EnerDel has chosen to expand its operations to the city of Noblesville," said Noblesville Mayor John Ditslear. "What a fine testament to the talented, hard-working people of this city and the business-friendly environment our economic development team has worked so hard to create. We look forward to working with EnerDel and to potential future development with them," said Noblesville Mayor John Ditslear.

"The lithium-ion battery will revolutionize the hybrid and electric car industry and will make it a reality for the mass market in the very near term," Grape said. "EnerDel has a unique lithium-ion chemistry and advanced battery system that provides the safest and most economical energy solution for automotive applications."

EnerDel is presently the only manufacturer producing lithium-ion batteries in the U.S. for the automotive market. The company recently received the prestigious R&D 100 award for excellence in its technology and uniquely innovative design. The award is shared by EnerDel and its partners at the Argonne National Laboratory.

EnerDel is a participant in U.S. Advanced Battery Consortium, a collaborative research effort between the U.S. Department of Energy, Chrysler, Ford and General Motors, aimed at developing hybrid and plug-in hybrid electric vehicle batteries that will enable mass production for electric drive vehicles.

By: Ron Gifford - President & CEO, The Indy Partnership

In winning the right to host the 2012 Super Bowl, Indianapolis beat out some tough competition: Houston and Phoenix had both hosted the game before, and both offered the promise of sunny weather and plenty of financial incentives for the NFL.

As seen on Inside Indiana Business with Gerry Dick



Despite these advantages, the Indianapolis region scored a victory with a shrewd and aggressive strategy, selling three decades of experience and investment that has made our region uniquely suited to host major championship events.

Now take this three-city contest and expand it to include every metropolitan area in America – and in some cases, around the world. That’s economic development today, a dog-eat-dog competition for new jobs. In this battle, Indianapolis has built a similarly focused approach – combining our geographic advantages and competitive business climate with strengths in industries like the life sciences, advanced manufacturing, logistics, technology and motorsports.

As a football fan, I was happy to hear that Indianapolis landed the big game. But I’m even more excited about this event in my day job as the head of our regional economic development effort. I’m confident that winning the Super Bowl will help us score more victories in the broader competition for business opportunities.

First, there’s the marketing value. The Super Bowl will bring many of the nation’s most influential corporate executives to Indianapolis – a first-time visit for several of them. Why does this matter? Well, we see this phenomenon time and time again: We’ll host someone who’s never been here, and typically they don’t have much of an impression of the region. And then they get to experience first-hand all that our city has to offer, and they are uniformly blown away. “I had no idea what a great city this is,” is a common refrain. Almost nobody moves their company on the spot, but this exposure certainly builds relationships and lays the groundwork for future business relocations or expansions.

Showing our region at its best to the audience of millions who tune in for the game also provides an invaluable brand-building opportunity. My organization, the Indy Partnership, is a consortium of local economic development organizations from ten counties tasked with marketing the region. Funded by private investment, we engage in a program of advertising, public relations, tradeshow participation and personal outreach to site selection consultants and business leaders.

Our efforts have borne success; 2007, for example, saw relocation, expansion and retention projects committed to create nearly 13,500 new jobs and bring new capital investment of $1.36 billion to the region. We’ve won these competitions despite the fact that our leading competitors spend millions on mass advertising to shape public awareness. The Super Bowl erases much of this advantage, bringing a wave of publicity so significant it would be impossible to buy…and if the city manages the event with its typical aplomb and hospitality, the boost to Indianapolis’ image will give us a solid new foundation to build upon.

There’s also the race for human capital. Dynamic economies are fueled by concentrations of talented people – the regions with the most educated workforces also tend to rank high in per capita income and job growth. Today, the Indianapolis metropolitan area ranks above the national average in college graduates as a percentage of the adult population. But this position is threatened by a ‘brain drain’ that sees too many of our young people leave the state after earning their degrees.

To thrive in the knowledge-based economy, we have to attract and retain more educated workers – Richard Florida’s ‘creative class.’ We can’t offer mountains, beaches, or year-round golf weather to entice tomorrow’s workforce. But a steady diet of world-class sports and cultural amenities, with the excitement that comes with hosting high-visibility events like the Super Bowl, helps put Indianapolis on the map as a great place to live, start a career and raise a family.

The Super Bowl will certainly provide a short-term bonanza for our region’s economy, with more than $120 million in direct spending of the course of game week. But the long-term ramifications are even more powerful: If we take full advantage of this opportunity, we’ll be more than just a destination for football fans in four years – we’ll be further down the road towards being a prime destination for capital, new job opportunities and top talent.