Job Creators Investing, Paying More
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndiana's secretary of commerce says businesses locating or expanding in Indiana are investing more and paying higher wages. Victor Smith says the Indiana Economic Development Corp. has participated in deals involving more than $3.2 billion in capital investment so far this year, which tops the total for all of 2013. He says the 17,040 projected new jobs in the first six months of the year have an average expected hourly wage of over $21, which is more than a dollar higher than the current state average.
August 5, 2014
News Release
Indianapolis, Ind. — At the midway point in the year, the Indiana Economic Development Corporation (IEDC) announced it has worked with 173 companies that have made decisions to expand or establish new business operations in Indiana for a total of more than 17,040 projected new jobs. This compares to 150 decisions by companies to locate a projected 11,715 new jobs in the state at this time last year and more than any other year on record at the midpoint.
The new positions, which companies anticipate hiring over the next five years, pay an expected average hourly wage of $21.27, above the state’s current average hourly wage of $20.03. The 173 companies anticipate investing $3.23 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 $8,759, down from around $37,000 prior to 2005. Under the IEDC, state incentives are activated only when new jobs occur.
“We are living in an increasingly competitive global economy,” said Victor Smith, Indiana Secretary of Commerce. “While meeting with business leaders around the world, they tell me that they need a place where they can maximize their return on investment, with a workforce that is skilled and taxes that don’t discourage success. With the record setting number of deals we have already secured so far this year in all corners of the state, it is clear that businesses are finding what they need and more in Indiana, creating jobs and placing our Hoosier economy on a notable uptick.”
Already this year, Governor Mike Pence has traveled abroad twice to tell Indiana’s story as a state that works for business on the international stage. In April, he led a targeted job-hunting trip to Germany, which included visiting five cities and meeting with dozens of German companies looking to grow in Indiana, three of which announced Indiana as the location for new jobs and investment opportunities during the trip. Also, last month a 22-person delegation accompanied the governor to the United Kingdom to kick off Indiana’s presence at the Farnborough International Airshow. In addition to back-to-back meetings at the airshow with leading aerospace companies like GE Aviation, Raytheon, Alcoa and Rolls-Royce, the governor also met with the chairman and chief executive officer of ArcelorMittal and the chief executive officer of BP.
As the state with the largest percentage of manufacturing jobs in the country, Indiana continues to be a place where manufacturing companies, including industries from aerospace to automotive, find the talent and resources they need for success. Driven by companies like GE Aviation, Alcoa and Jasper Engines & Transmissions, the Hoosier State has welcomed commitments of more than 8,500 new jobs and more than $2.28 billion in capital investment from manufacturing companies thus far this year.
“Today Indiana's economy is defined by its optimism,” said Eric Doden, president of the Indiana Economic Development Corporation. “From the homegrown-Hoosier tech firm to the global manufacturer, companies are growing and they are planning to keep it up. This record-setting milestone reflects what Hoosiers and businesses everywhere already know—with unlimited possibilities, Indiana is truly a state that works.”
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 sixth best nationwide in its tenth annual Best & Worst States survey. Also, Indiana was ranked best in the Midwest and seventh in the nation in the Pollina Corporate Top 10 Pro-Business States for 2014 study, co-published with the American Economic Development Institute.
About IEDC
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.