Advanced Manufacturing/Logistics Initiative
• Awareness: Generate awareness of initiative and
goals.
• Support:
– Educate businesses and stakeholders regarding
incentives and resources for Advanced Manufacturers.
– Support workforce education and career development
initiatives
• Implementation: Deals, Jobs, Investment
New Job Commitments
25,000
20,000
15,000
10,000
5,000
0
2003
2004
2005
2006
2007
2008
New Capital Investment (Billions)
•The average wage
for new jobs
committed in 2008 is
$22.47/hour – well
above the State
average of $18/hour.
9
8
7
6
5
4
3
2
1
0
2005
2006
2007
• Since its creation,
the IEDC has worked
with more than 590
businesses who have
committed to create
more than 78,000
new jobs and invest
more than $18.7 B.
2008
Indiana Economic Facts
Seasonally Adjusted Unemployment Rate (Oct. 2008): 6.4%
* Lowest unemployment rate of neighboring states, below national avg.
* Illinois (7.3%), Kentucky (6.8%), Michigan (9.3%), and Ohio (7.3%)
* National unemployment rate (Oct. 2008): 6.5%
Indiana in the International Economy
* Exports from Indiana to foreign countries reached a record $25.9 billion
in 2007, up more than 14% percent over the previous year
Commercializing Innovations
* Through the 21st Century Research and Technology fund, Indiana has
committed to invest more than $77 million in 59 high-tech companies to
help each bring their innovations to market, keeping the innovations and
associated high wage jobs in Indiana.
Recent Rankings
Best Business Environment
* Indiana ranks fifth in the nation and best in the Midwest for its business
climate (Site Selection Magazine – Nov. 2008)
* Indiana ranked first in the Midwest and eighth in the nation in Chief
Executive magazine’s fourth annual "Best & Worst States" survey.
Indiana was the highest ranked state outside of the sunbelt in the survey.
Cost of Doing Business
* Indiana has the lowest business cost index in the Midwest and sixth
lowest in the country. (Forbes – July 2008)
* Indiana ranks first in the Midwest in the Milken Institute’s most recent
Cost of Doing Business Index - based on: wage cost, tax burden,
electricity cost, industrial rent cost, and office rent cost.
Top Tax Climate
* Indiana ranks 1st in the Midwest and 12th nationally in the Tax
Foundation’s 2008 Business Tax Climate Index
In-Sourcing Jobs
* Since 2005, international companies have committed more than
$8 billion into their Indiana operations and more than 15,800 new jobs
* Indiana ranked number one per capita in North America in the creation of
production jobs through foreign investment in 2007. (IBM 2008 study)
More Jobs for Hoosiers
3-Years of Record-Breaking Success
* 622 business have committed to create 77,650 jobs and invest
$18.7 Billion in their Indiana operations since Jan. 2005
2008
17,956 new jobs committed and $4.17B capital investment
2007
22,627 new jobs committed and $3.38B capital investment
2006
21,995 new jobs committed and $8.44B capital investment
2005
15,467 new jobs committed and $2.75B capital investment
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.
Building the ‘Best Sandbox’
Major initiatives since 2005 aimed at improving Indiana’s competitiveness:
* Major Moves –Ten-year fully funded $12 billion highway plan that includes
more than 200 new construction and 200 major preservation projects
* Telecommunications Reform - Indiana’s Telecommunications Deregulation
Act has brought increased competition, leading to new investments and jobs
* HQ Relocation Tax Credit – Reinforces the state’s commitment to attracting
new headquarters opportunities to Indiana
* Single Factor Sales Apportionment - Eliminates the tax penalty associated
with companies adding jobs and investing in new capital equipment in Indiana
* R&D Tax Credit – Provides a tax credit equal to 15% of a company’s first
$1 million of qualifying R&D expenditures, giving Indiana one of the highest
R&D tax credit percentages in the country
* Patent Income Exemption - Exempts certain income derived from qualified
patents from the calculation of a company’s tax liability
* Buy Indiana – Pumps up to $1.2 billion back into the Indiana economy by
directing state agencies to purchase goods from Indiana businesses
* Health Care Plan – Provides insurance for up to 130,000 low-income
Hoosiers annually and encourages Hoosiers to stop smoking
Last Updated: Nov. 21, 2008
Indy Airport Expansion
R&D Benefits
• 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.
IEDC Incentives
• Training Grants
– Skills Enhancement Fund
– TECH Grant
– DWD TAG Grant
• Tax Credits
– Hiring
– Capital Investment
• Public Infrastructure Grants
Regional Economic Development
Partnership Program
• Encourage communities to think and act
regionally.
• Two or more counties.
• Up to $150,000, matching grant.
• Wide range of economic development
activities.
• Must be consistent with IEDC strategic plan.
Indiana Logistics Rankings
• 1st in # Interstates
• Shortest distance to the
median center of US
population.
• 2nd largest Fed-Ex hub.
• 3rd in local freight
railroads.
• 4th in Class 1 railroads
Source: Indiana Logistics Directory, Ports of Indiana,
2008.
• 5th in truck tonnage
• 6th in trucking
employment
• 7th in NAFTA exports
• 8th in US waterborne
shipping.
• 9th in rail tons carried
• 10th in freight rail
employment.
Record Success,
World-Class Infrastructure
• Projects located
in 76 counties
• Nearly 80% within 10 miles of interstate
• More than half from existing Indiana
companies
• Approx. half in cities/towns of < 25K
Major Moves – Initiative
• Fully funded 10 yr., $12 Billion transportation
plan.
• 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
Contact
Don Foley
IEDC
(317) 233-3040
dofoley@iedc.in.gov
www.iedc.in.gov