JANUARY 2004
INDIANA SPOTLIGHT
Indiana Targets
Tech Sectors
Tech Sectors
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he egress of manufacturing jobs overseas in recent years has been particularly painful for Indiana, a state built on basic industries such as steel. Manufacturing jobs vanished at a steady clip in the state over the last three years – 98,500 from July 2000 to July 2003, according to the Bureau of Labor Statistics.
State officials, academia and technologists all seem to agree the way back is to build on industrial segments with the most potential for growth. Efforts to reverse, or at least slow, the trend involve targeting four sectors: advanced manufacturing, life sciences, high-tech distribution (branded as "21st Century Logistics") and information technology.
The General Assembly gave Indiana's business recruiters a large box of tools during its past two sessions. A major tax restructuring in 2002 eliminated the business inventory and the gross receipts taxes. Last summer, legislators followed up by boosting funds for K-12 and higher education. Gov. Joe Kernan, who as lieutenant governor ran the state's Department of Commerce, says the moves show the state "gets it" when it comes to economic development.
Kernan succeeded Gov. Frank O'Bannon, who died unexpectedly in September 2003. Kernan says the tax restructuring demonstrates the state is willing to make tough decisions. Results were quick. Caterpillar soon announced a major retooling of its Lafayette plant to produce a new engine platform.
"Indiana is somewhat unique in that we have international trade offices in 14 countries," Kernan says. "Pennsylvania is the only other state with as many, and we're partners with them in a couple. We're looking for opportunities for reverse investment from overseas as well as helping Indiana companies export their products. Indiana has jumped to 10th in the country in export activity and we are on track to sell more than $16 billion this year, a record."
Kernan says new Lt. Gov. Kathy Davis brings plenty of private and public sector credentials to the table and will do well as head of the Commerce Department. She was most recently controller for the city of Indianapolis.
"Over the last two years, the state has made more progress than it had in the previous eight or 10 years in terms of making the state more business-friendly," says Jim Wheeler, executive director of Techpoint, an association of Indiana's high-tech companies. "The past legislative session was a huge success story and funds were put into technology parks and $75 million into the 21st Century Research & Technology Fund. The legislature has created a positive R&D environment for companies."
Wheeler believes the state should promote the subsectors of manufacturing areas that are growing, such as its medical device industry. He cites Warsaw, home of Zimmer, Inc., the world's largest manufacturer of artificial joints. The city is the world's largest producer of orthopedic devices, he says.
Growth in this sector continued in Warsaw with the opening in September 2003 of DePuy Orthopaedics' 54,000-sq.-ft. (5,017-sq.-m.) research and manufacturing facility.
State officials, academia and technologists all seem to agree the way back is to build on industrial segments with the most potential for growth. Efforts to reverse, or at least slow, the trend involve targeting four sectors: advanced manufacturing, life sciences, high-tech distribution (branded as "21st Century Logistics") and information technology.
The General Assembly gave Indiana's business recruiters a large box of tools during its past two sessions. A major tax restructuring in 2002 eliminated the business inventory and the gross receipts taxes. Last summer, legislators followed up by boosting funds for K-12 and higher education. Gov. Joe Kernan, who as lieutenant governor ran the state's Department of Commerce, says the moves show the state "gets it" when it comes to economic development.
Kernan succeeded Gov. Frank O'Bannon, who died unexpectedly in September 2003. Kernan says the tax restructuring demonstrates the state is willing to make tough decisions. Results were quick. Caterpillar soon announced a major retooling of its Lafayette plant to produce a new engine platform.
"Indiana is somewhat unique in that we have international trade offices in 14 countries," Kernan says. "Pennsylvania is the only other state with as many, and we're partners with them in a couple. We're looking for opportunities for reverse investment from overseas as well as helping Indiana companies export their products. Indiana has jumped to 10th in the country in export activity and we are on track to sell more than $16 billion this year, a record."
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Kernan says new Lt. Gov. Kathy Davis brings plenty of private and public sector credentials to the table and will do well as head of the Commerce Department. She was most recently controller for the city of Indianapolis.
"Over the last two years, the state has made more progress than it had in the previous eight or 10 years in terms of making the state more business-friendly," says Jim Wheeler, executive director of Techpoint, an association of Indiana's high-tech companies. "The past legislative session was a huge success story and funds were put into technology parks and $75 million into the 21st Century Research & Technology Fund. The legislature has created a positive R&D environment for companies."
Wheeler believes the state should promote the subsectors of manufacturing areas that are growing, such as its medical device industry. He cites Warsaw, home of Zimmer, Inc., the world's largest manufacturer of artificial joints. The city is the world's largest producer of orthopedic devices, he says.
Growth in this sector continued in Warsaw with the opening in September 2003 of DePuy Orthopaedics' 54,000-sq.-ft. (5,017-sq.-m.) research and manufacturing facility.