IEDC Issues Mid-Year ReportPosted: Updated:
The state is touting mid-year economic development numbers. The Indiana Economic Development Corp. says it has worked with nearly 150 companies so far this year that have decided to expand or establish new business operations. The IEDC adds those employers are projecting a total more than 11,700 jobs, paying an average of $21.73 an hour. August 8, 2013
INDIANAPOLIS (Aug. 8, 2013) - At the midway point in the year, the Indiana Economic Development Corporation announced that it has worked with 148 companies that have made decisions to expand or establish new business operations in Indiana for a total of more than 11,700 projected new jobs. This compares to 142 decisions by companies to locate a projected 13,299 new jobs in the state at this time last year.
The new positions, which companies anticipate hiring over the next five years, pay an expected average hourly wage of $21.73, above the state's current hourly wage of $19.82. The 148 companies anticipate investing $1.37 billion in their Indiana operations in the coming years. Meanwhile, the average amount of state conditional tax incentives offered to companies on a per job basis is $9,274, down from around $37,000 in 2004. Under the IEDC, state incentives are activated only when Hoosiers are hired.
"These strong results reinforce many things we already know: Indiana is a low-cost, business-friendly place for companies to conduct business and create jobs," said Victor Smith, Secretary of Commerce. "More good news is on the horizon for companies. Following this year's legislative session, the largest state tax cut in Indiana history was enacted, further distinguishing Indiana as a state that works for business."
As the state with the largest percentage of manufacturing jobs in the country, Indiana continues to be a place where manufacturing companies find the talent and resources they need for success. Driven by companies like Chrysler Group and Subaru of Indiana Automotive, the Hoosier State has welcomed commitments of nearly 6,000 new jobs and more than $996 million in capital investment from manufacturing companies thus far in 2013.
"With Indiana's sound stat sheet, it's easy to see why more and more corporate leaders are recognizing the many advantages of doing business here," said Smith. "Under the leadership of Governor Mike Pence, our business-friendly policies and fiscal stability position Indiana to continue to receive positive reviews from CEOs and bring more opportunities and investment to all corners of the Hoosier State."
Indiana has been recognized as a top location for business by industry leaders and site selection consultants in two recent surveys. In May, Chief Executive magazine ranked Indiana the best place to do business in the Midwest and fifth best nationwide in its eighth annual Best & Worst States survey. Site Selection magazine also recently named Indiana first in the Midwest and second in the nation in its Top 10 Competitive States report.
In addition, the U.S. Bureau of Economic Analysis released figures in June showing that Indiana's Gross Domestic Product grew 3.3 percent in 2012, compared to the national rate of 2.5 percent. That is the eighth highest growth rate in the country and is head and shoulders above Indiana's neighboring states.
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.Source: Indiana Economic Development Corp.