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Tax Cuts, Deregulation Too Tempting to Resist

And like a moth to the flame, Ohio hopes to entice further growth in all industries -- high-tech or not -- by lowering the operating costs for new and expanding businesses. In 1999, the state signed into law electricity deregulation, allowing consumers to choose the lower-cost supplier for their power needs.

Gov. Taft dangled another business-enticing carrot by signing into law several tax cuts and credits. Included among those moves was a law to phase out the punitive business inventory tax. A new R&D tax credit was established, and new tax credits will be available for businesses that hire welfare recipients. Also the machinery and equipment tax credit was renewed, and the state's Enterprise Zone program has been extended for another five years.

"Ohio has a very pro-business environment," says Schjeldahl. "It's a much different place than it was 15 years ago. Then Ohio was in the same pool as a lot of the northeast, the Rust Belt, if you will. There was an unhealthy labor management relationship; taxes were high and services poor; and industry was in decline. But that's all changed. It's a very positive environment for labor and for community services."

And with that kind of reputation, Ohio expects to continue its current winning streak in a variety of industries. "Ohio is truly an engine for growth; it's a growth machine," Jackson says. "It's a state that knows how to work, it's a state that knows how to make things; it's a state that thinks at a high level; and it's a state that puts pencil to paper to get the job done." With that, here's a look at what the state has done in the last year.

Celina Dodges the Bullet The small town of Celina, Ohio, has in the past year dodged the proverbial bullet that can wreck so many communities. In April 1999, the city's largest employer, Huffy Bicycle, closed the doors of its local plant, and last December, the area's next largest employer, Agco Corp., followed suit due to consolidations within the farming implements industries. But has either of these blows slowed the Celina economy? No, in fact, the northeastern Ohio city continues to bounce back by diversifying its economy. "When Huffy Bicycle shut their doors last year, our unemployment rate went up to 12.5 percent," says Larry Stelzer, economic director for Mercer County. "We had it back under 6 percent when the announcement came from Agco." Celina has been able to survive by attracting international companies, automotive suppliers and high-tech manufacturers. For instance, Capt, a Honda supplier, is adding 60,000 sq. ft. (5,574 sq. m.) to its facility and hiring another 100 workers. Above right: Agco has closed its operations in Mercer County, but local officials see this as an opportunity to bring in new business to the 1.4 million-sq.-ft. (130,064-sq.-m.) facility. "And Coldwater Machine has just finished a state-of-the-art building in Coldwater," says Stelzer. "They're a very high-tech machine shop that's going to hire another 50 employees." As for the recent closing of the Agco operation, Stelzer sees it more as an opportunity than an obstacle. "We now have a very highly skilled and highly regarded work force available at a time when 4.5 percent unemployment is the national average," he explains. "And we have a very nice 1.4 million-sq.-ft. (130,064-sq.-m.) building for sale."