The Indiana Economic Development Corporation (IEDC) announced today that in 2012 it secured job commitments from 256 companies from across the country and around the world that project to create more than 27,600 new jobs, an increase from 19,080 in 2011 and more than any other year on record.
"A better state economy starts with a positive business climate, and Indiana's is now near the top of every list," said Governor Mitch Daniels. "But great credit goes to the job-hunters of the IEDC, and to our pro-growth partners in the General Assembly who helped us build that environment and build America's best economic development agency."
Driven by companies like Amazon, Toyota, Magnetation, Angie's List, Sugar Creek Packing, Supreme Industries and Sweetwater Sound, Indiana welcomed commitments for 27,620 new jobs and $6.41 billion in capital investment in 2012. The new positions, which companies anticipate to hire over the next five years, pay an expected average hourly wage of $21.77, above the state's current hourly wage of $19.74. The average amount of state conditional tax incentives offered to companies on a per job basis was $8,689, down from around $37,000 in previous administrations. Under the IEDC, state incentives are activated only when new jobs actually occur.
Automotive-related manufacturing represented the largest sector for new job commitments in 2012 with 7,180 new jobs projected. With 5,606 job commitments, the business services industry represented the second largest sector of new growth followed by the non-automotive manufacturing sector with 5,602 projected new jobs. Job commitments for other sectors include: logistics (2,388), food production (2,022), life sciences (1,606) and information technology (1,589).
"From its falling corporate tax rate and recently enacted right-to-work legislation to its overall fiscal stability, these results are proof that companies find Indiana one of the most attractive places to create jobs," said Dan Hasler, Secretary of Commerce and chief executive officer of the IEDC.
Since Daniels established the IEDC in early 2005, the agency has worked with 1,474 companies to locate or expand their operations in the state. The agency secured job commitments totaling 19,080 in 2011, 23,152 in 2010, 19,955 in 2009,18,627 in 2008, 22,627 in 2007, 21,995 in 2006 and 15,523 in 2005. Collectively, these companies have committed to create more than 168,500 projected new jobs and invest more than $34.23 billion in their Indiana operations.
The IEDC continues to conduct and publish an annual performance review of all companies, in cooperation with international auditing firm, Crowe Horwath, LLC. These companies indicated that, by the end of 2011, they had planned to add 63,063 new jobs. During the review, the companies collectively reported adding 48,120 new jobs through 2011, which equates to 76 percent of their scheduled projections. The IEDC will formally present these results again at its next public quarterly board meeting. For historical performance data, continue to visit the IEDC's website.
Indiana continues to garner national accolades for its competitive business climate. In 2012, both Chief Executive magazine and Pollina Corporate rated the Hoosier State best in the Midwest for business and fifth best in the country. Indiana ranks fifth best nationally for business friendliness and seventh for cost of living by CNBC. Area Development magazine also ranked the state eighth in the nation for its business climate and Indiana is one of only nine states to have triple-A credit ratings from all three reporting agencies: Standard & Poor's, Fitch and Moody's.