Advanced Manufacturing/Logistics Initiative
• Awareness: Generate awareness of initiative and
– Educate businesses and stakeholders regarding
incentives and resources for Advanced Manufacturers.
– Support workforce education and career development
• Implementation: Deals, Jobs, Investment
New Job Commitments
20,000 • Since its
creation, the IEDC
has worked with
10,000 more than 590
5,000 businesses who have
committed to create
2003 2004 2005 2006 2007 2008
more than 78,000
new jobs and invest
more than $18.7 B.
New Capital Investment (Billions)
•The average wage
7 for new jobs
6 committed in 2008 is
$22.47/hour – well
3 above the State
2 average of $18/hour.
2005 2006 2007 2008
Indiana Economic Facts More Jobs for Hoosiers
3-Years of Record-Breaking Success
* 622 business have committed to create 77,650 jobs and invest
Seasonally Adjusted Unemployment Rate (Oct. 2008): 6.4% $18.7 Billion in their Indiana operations since Jan. 2005
* Lowest unemployment rate of neighboring states, below national avg.
* Illinois (7.3%), Kentucky (6.8%), Michigan (9.3%), and Ohio (7.3%) 2008
* National unemployment rate (Oct. 2008): 6.5% 17,956 new jobs committed and $4.17B capital investment
Indiana in the International Economy 2007
* Exports from Indiana to foreign countries reached a record $25.9 billion 22,627 new jobs committed and $3.38B capital investment
in 2007, up more than 14% percent over the previous year 2006
Commercializing Innovations 21,995 new jobs committed and $8.44B capital investment
* Through the 21st Century Research and Technology fund, Indiana has 2005
committed to invest more than $77 million in 59 high-tech companies to 15,467 new jobs committed and $2.75B capital investment
help each bring their innovations to market, keeping the innovations and
associated high wage jobs in Indiana. Increasing Hoosier Income
* The average wage for new job commitments from competitive projects
in 2008 is $22.47/hour – well above the state average wage of $18/hour.
Recent Rankings Building the ‘Best Sandbox’
Major initiatives since 2005 aimed at improving Indiana’s competitiveness:
Best Business Environment
* Indiana ranks fifth in the nation and best in the Midwest for its business * Major Moves –Ten-year fully funded $12 billion highway plan that includes
climate (Site Selection Magazine – Nov. 2008) more than 200 new construction and 200 major preservation projects
* Indiana ranked first in the Midwest and eighth in the nation in Chief
* Telecommunications Reform - Indiana’s Telecommunications Deregulation
Executive magazine’s fourth annual "Best & Worst States" survey.
Act has brought increased competition, leading to new investments and jobs
Indiana was the highest ranked state outside of the sunbelt in the survey.
* HQ Relocation Tax Credit – Reinforces the state’s commitment to attracting
Cost of Doing Business new headquarters opportunities to Indiana
* Indiana has the lowest business cost index in the Midwest and sixth
* Single Factor Sales Apportionment - Eliminates the tax penalty associated
lowest in the country. (Forbes – July 2008)
with companies adding jobs and investing in new capital equipment in Indiana
* Indiana ranks first in the Midwest in the Milken Institute’s most recent
Cost of Doing Business Index - based on: wage cost, tax burden, * R&D Tax Credit – Provides a tax credit equal to 15% of a company’s first
electricity cost, industrial rent cost, and office rent cost. $1 million of qualifying R&D expenditures, giving Indiana one of the highest
R&D tax credit percentages in the country
Top Tax Climate
* Patent Income Exemption - Exempts certain income derived from qualified
* Indiana ranks 1st in the Midwest and 12th nationally in the Tax
patents from the calculation of a company’s tax liability
Foundation’s 2008 Business Tax Climate Index
* Buy Indiana – Pumps up to $1.2 billion back into the Indiana economy by
In-Sourcing Jobs directing state agencies to purchase goods from Indiana businesses
* Since 2005, international companies have committed more than
* Health Care Plan – Provides insurance for up to 130,000 low-income
$8 billion into their Indiana operations and more than 15,800 new jobs
Hoosiers annually and encourages Hoosiers to stop smoking
* Indiana ranked number one per capita in North America in the creation of
production jobs through foreign investment in 2007. (IBM 2008 study) Last Updated: Nov. 21, 2008
Indy Airport Expansion
• Patent Tax Exemption
– 50% State Income Tax Exemption.
• Research Expense Credits
– 15% of the first $1 million of R&D expense.
• R & D Sales Tax Exemption
– No sales tax on R&D equipment.
• Training Grants
– Skills Enhancement Fund
– TECH Grant
– DWD TAG Grant
• Tax Credits
– Capital Investment
• Public Infrastructure Grants
Regional Economic Development
• Encourage communities to think and act
• Two or more counties.
• Up to $150,000, matching grant.
• Wide range of economic development
• Must be consistent with IEDC strategic plan.
Indiana Logistics Rankings
• 1st in # Interstates • 5th in truck tonnage
• Shortest distance to the • 6th in trucking
median center of US employment
population. • 7th in NAFTA exports
• 2nd largest Fed-Ex hub. • 8th in US waterborne
• 3rd in local freight shipping.
railroads. • 9th in rail tons carried
• 4th in Class 1 railroads • 10th in freight rail
Source: Indiana Logistics Directory, Ports of
Indiana, 2008. employment.
• Projects located
in 76 counties
• Nearly 80% within 10 miles of interstate
• More than half from existing Indiana
• Approx. half in cities/towns of < 25K
Major Moves – Initiative
• Fully funded 10 yr., $12 Billion transportation
• FY ‘08 Plan is on track – +50 active projects
• FY ‘09 – Hoosier Heartland, I-69, US 31 (K, SB)
• Projects start sooner, end earlier, save millions.
Executives Rank Indiana Best in Midwest
1st in the Midwest and 8th nationally
• Best Places for Business Survey
• 605 top CEOs Source: Chief Executive Magazine, Jan. 2008