Rolls- Royce already employs 4,000 in Indianapolis in the making of jet engines, and just added 600 new jobs in June 2006. But bigger things may be in the offing by the end of January.

   At an early November economic outlook presentation, Philip Powell, clinical associate professor of business economics and public policy at Indiana University's Kelley School of Business, noted that area employment growth was "anemic," but also noted that Indianapolis posted an impressive turnaround last year, with economic growth of 6.4 percent outpacing a national growth rate of 3.7 percent. /
   "The Indianapolis economy is generating money but not jobs," he said. /
   Some in Indianapolis are doing what they can to boost that job count. A $145- million, 600- job investment by Rolls- Royce Corp. in an engine production expansion may be a precursor to even bigger things: In early December, the British engine manufacturer announced that Indiana was one of eight states under consideration for expansion of production for its aerospace, marine and energy units. /
   Proposals from the states of Georgia, North Carolina, South Carolina, Mississippi, Virginia, Ohio, Texas and Indiana are due to the company by the end of January. /
   Such a project may tie in well in a region that is host to major shipping hubs for FedEx (Indianapolis), DHL (southwest Ohio) and UPS (Louisville). Rolls- Royce earlier in 2006 announced a new long- term agreement for servicing the UPS fleet of 40 Boeing 757s. Rolls- Royce's annual sales total $12 billion, of which 54 percent are services revenues. Services revenues have grown by 11 percent per annum compound over the past ten years. /
   "Today's RFQ is part of an ongoing evaluation process, which is intended to provide the company with options as it positions itself for the future," said James M. Guyette, president and CEO, Rolls- Royce North America, at the Dec. 1 announcement. /
   The groundwork for an Indiana expansion may be well- laid already, beginning with the words of the company's corporate COO Steven Dwyer back in June 2006, when the firm received a $17- million forgivable loan from the Indiana Economic Development Corp. (IEDC) and a 10- year, $11- million tax abatement from the City of Indianapolis in return for that earlier 600- job announcement:
   "As a result of this package, Rolls- Royce plans to invest in the upgrade of site facilities as well as the procurement of new machine technologies to improve productivity," said Dwyer. "These will be crucial factors in our continued efforts to improve the position of our facility in what is an increasingly competitive industry." /
   Up to 150 of those estimated 600 new jobs will be created through the establishment of a center of excellence dedicated to the advancement of aerospace industry technology. The additional 450 new jobs will be created in increments over the next eight years. /
   Even if the state misses out on the bigger Rolls- Royce sweepstakes, the company's supplier spinoff is palpable: In late October 2006, Northstar Aerospace Inc., a maker of flight- critical gears and transmissions, announced the opening of the company's new manufacturing facility in Anderson, and the creation of 40 new jobs. /
   The manufacturing facility in Anderson will function as a specialized feeder plant for the Rolls- Royce operations in Indianapolis, as Northstar lives up to a seven- year contract with the British firm to provide machining for gearboxes and related parts used in commercial and military aircraft.