SRI draws three main conclusions in its report:
   (1) "Ohio compares reasonably well in areas that support its traditional economic activities – principally manufacturing, a sector facing continued structural decline within the United States. Unfortunately, Ohio does not display strengths in many of the areas that are important for expanding industries."
   (2) "While Ohio is strong in certain economic foundations and weak in others – not unlike any other state – Ohio stacks up as 'average' or in the middle of the pack in a large number of indicators important to investors and to economic growth…. In view of the intensity of global competition, investors are much less likely than in the past to place 'average' locations among their top candidates for new operations." To this point, SRI stresses the importance Ohio should place on distinguishing itself from other locations with "unique competitive advantages."
   (3) "A key characteristic that shapes Ohio's competitiveness performance is the state's relatively large number of major cities, coupled with one of the strongest 'home rule' traditions in the nation. This structural attribute leads to the diffusion rather than concentration of resources for education and research, overlapping jurisdictions and regulatory systems, and high taxation, all of which reduce competitiveness."
   Ohio's new tax system is designed in part to address the need for unique competitive advantages. The reforms, signed into law by Gov. Taft on June 30th, cut personal income tax rates by 21 percent over five years, eliminate taxes on profits and tangible personal property and exempt sales to destinations outside Ohio from taxation.
   The state's new corporate tax is the Commercial Activity Tax (CAT) which is based on gross receipts of goods destined for Ohio, rather than on profits. The CAT, at .26 percent, applies only to receipts over $1 million and will be phased in over five years. However, new machinery and equipment purchased after July 1, 2005, is already exempt from personal property tax. Ohio law firms Plante & Moran (www.plantemoran.com) and Bricker & Eckler LLP (www.bricker.com) offer thorough analyses of the full tax reform legislation online; see also the Ohio Spotlight article in the May 2005 issue of Site Selection.