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INDIANA SPOTLIGHT
Making the Lists
Fewer corporate hoops to jump through helps the Hoosier State score big points
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sk some of Indiana's signature multinational companies to list the practical considerations that have made the Hoosier State an ideal component of a global real estate strategy, and the answers begin and end with quality -- in both lifestyle and talent.
"The availability of the technical talent in the state is a very important consideration," says Char Niemczura, director of CBS corporate services for Cummins Inc., headquartered in Columbus, Indiana, since the early 1900s. "We have a lot of technology development here in southern Indiana."
Cummins, ranked No. 311 on the 2002 Fortune 500 list of the largest industrial and service companies, services its engine, power generation, filtration and other divisions through several facilities in Columbus and one in Seymour. But they are not the only ones who keep coming back for more.
"It's interesting, when you look at different incentives and tax structures on the quantitative side of site selection, and you look at it over a 20-year period on a net present value basis, you'll rarely find more than a two- or three-percent difference between the best and the worst option that you have," says Jack Leicht, manager of strategic facility planning for pharmaceutical giant Eli Lilly and Co. "So then you come back and say, 'Well, what are the qualitative factors?' because the quantitative factors are really stakes to get into the game. What's the work force supply like? What's the educational environment like? What's the quality of life in the community you're going to be in? And in all of those areas, we feel very strongly about Indiana."
So strongly that in May, Lilly announced another hometown expansion project on the same day that its choice of Prince William County in Maryland for a $450-million insulin plant went public. The company has begun construction on a $225-million, 600-employee research/office facility in Indianapolis, part of the 10-year, $1.1 billion, 7,500-employee expansion plan in Indianapolis that Lilly announced in 1999. When completed, the project will signal that Lilly has reached the investment goal, but the company must still meet its goal of 7,500 new jobs to qualify for the $214-million state and local incentive package. The company has added 3,500 new jobs in Indianapolis since 1999, and anticipates adding another 800 to 1,000 positions during 2002. Leicht says the new phase has two components.
"One is a basic research building, and one is a manufacturing building," he says. "Obviously we're pretty bullish about building on our base here. Over the next six or seven years, we will have added 8,000 jobs or so to the economy. We're well on our way toward that."
"As we move through some short-term challenges, we know that we must continue to invest in our future," said Sidney Taurel, chairman, president and CEO, in May. "Our future is our new product pipeline, which we believe is the best in the industry and positions us to be the pharmaceutical growth company of the decade."
With a refurbished tax structure, a newly regionalized economic development agency and an upsurge in international trade, Indiana hopes to do a little expanding of its own.
"The availability of the technical talent in the state is a very important consideration," says Char Niemczura, director of CBS corporate services for Cummins Inc., headquartered in Columbus, Indiana, since the early 1900s. "We have a lot of technology development here in southern Indiana."
Cummins, ranked No. 311 on the 2002 Fortune 500 list of the largest industrial and service companies, services its engine, power generation, filtration and other divisions through several facilities in Columbus and one in Seymour. But they are not the only ones who keep coming back for more.
"It's interesting, when you look at different incentives and tax structures on the quantitative side of site selection, and you look at it over a 20-year period on a net present value basis, you'll rarely find more than a two- or three-percent difference between the best and the worst option that you have," says Jack Leicht, manager of strategic facility planning for pharmaceutical giant Eli Lilly and Co. "So then you come back and say, 'Well, what are the qualitative factors?' because the quantitative factors are really stakes to get into the game. What's the work force supply like? What's the educational environment like? What's the quality of life in the community you're going to be in? And in all of those areas, we feel very strongly about Indiana."
So strongly that in May, Lilly announced another hometown expansion project on the same day that its choice of Prince William County in Maryland for a $450-million insulin plant went public. The company has begun construction on a $225-million, 600-employee research/office facility in Indianapolis, part of the 10-year, $1.1 billion, 7,500-employee expansion plan in Indianapolis that Lilly announced in 1999. When completed, the project will signal that Lilly has reached the investment goal, but the company must still meet its goal of 7,500 new jobs to qualify for the $214-million state and local incentive package. The company has added 3,500 new jobs in Indianapolis since 1999, and anticipates adding another 800 to 1,000 positions during 2002. Leicht says the new phase has two components.
"One is a basic research building, and one is a manufacturing building," he says. "Obviously we're pretty bullish about building on our base here. Over the next six or seven years, we will have added 8,000 jobs or so to the economy. We're well on our way toward that."
"As we move through some short-term challenges, we know that we must continue to invest in our future," said Sidney Taurel, chairman, president and CEO, in May. "Our future is our new product pipeline, which we believe is the best in the industry and positions us to be the pharmaceutical growth company of the decade."
With a refurbished tax structure, a newly regionalized economic development agency and an upsurge in international trade, Indiana hopes to do a little expanding of its own.