2009 - A Reflection in Economic Development

With two recent announcements in as many weeks of significant economic development projects in New Albany (Kemper Foods International and WindStream Technologies, Inc.), it signals the approaching conclusion of a surprising and certainly encouraging year in business growth in Clark and Floyd Counties. We often take for granted Southern Indiana’s strength through its diversified economic base, innovative nature, educational opportunities, and entrepreneurial spirit. During tough economic times, these characteristics have served us exceptionally well – even while other regional economies have suffered extensive economic hardships. Not that we have been impervious to the effects of an economic meltdown but we are emerging from the “worst economic times since the Hoover Depression” relatively intact.

In fact, 2009 saw our newspaper headlines peppered with a lot of positive news about economic growth right here at home. This year One Southern Indiana announced growth plans from 14 different and diverse companies for new jobs, new capital investment, and new payroll dollars. These 14 projects represent growth by both our existing businesses and companies we are welcoming to the community for the first time.

And while victories in new business attraction often garner the most media attention, business retention and expansion projects make up the majority of our successful project location announcements. As every business knows, being able to retain and grow an existing customer is the backbone of its economic success. There is a long ever-present line of competitors waiting to take your customers from you. In the business of economic development, that list includes nearly every community with a formalized economic development program. So every time an existing company expands here at home, it is a victory in retention.

In 2009, One Southern Indiana announced the expansion of nine existing Southern Indiana businesses. These nine projects’ plans include the creation of 590 new Hoosier jobs that will add over $16 million new payroll dollars to our regional economy. Stop and consider that for a moment. When you think about every dollar we each spend on food, entertainment, housing, education, transportation, healthcare, and recreation, you begin to appreciate the effect an additional $16 million in new payroll dollars annually will have on our economy. Furthermore, these companies will invest over $33 million in new facilities, real estate, building improvements, machinery, equipment, and other tangible (and taxable) capital. In other words, the assessed value of our community has increased by $33 million. Increasing our tax base helps ease the burden on government.

2009 was also an eventful year announcing new companies coming to Southern Indiana and investing here for the first time. Five new companies joined our corporate community, bringing with them global recognition (Caterpillar, Inc.), advancements in alternative energy (WindStream Technologies, Inc.), environmental remediation (Specialty Earth Sciences, LLC), frozen food innovation (Kemper Foods International, LLC), and high-tech manufacturing (Cook Compression). Together, these companies will create over 700 new jobs in our community! These jobs will add over $26 million in new payroll annually and these projects represent over $22 million in new capital being invested in Clark and Floyd Counties.

In these challenging economic times, one can imagine the level of competition for each of these projects. There were many states and even more communities vying for these jobs, these payroll dollars, and the capital monies these companies are investing. That these five companies chose our community to locate speaks well toward our goal of becoming the point of destination for successful commerce.

Make no mistake about it…every new job commitment made, every single payroll dollar spent, every capital dollar invested, and every tax dollar collected has real world value and a positive impact right here in our community. In a global economy, these 14 existing and new companies could have invested their dollars and created these jobs virtually anywhere in the world and they would have been welcomed with creative and substantial incentive packages and overwhelming community support. They chose to grow their businesses here in Southern Indiana – 14 testimonials to Southern Indiana’s logistical and cost-of-doing business advantages that make it an ideal place to locate and grow your business.

- Matt