INDIANA - IN. · PDF file• Entrepreneurism, ... Indiana ranks 1st among states in per...
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1 INDIANA
Transcript of INDIANA - IN. · PDF file• Entrepreneurism, ... Indiana ranks 1st among states in per...
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INDIANA
ECONOMIC DEVELOMENT IN INDIANA Sandbox Improvements
• 5 Years of Record Activity
– AAA Bond Rating/Fiscal Stability
– Right to Work (31)
– Reduced Tax Burden
– Input Costs (Logistics, Utilities, Rent and Labor)
– Business Friendly
Third Party References
– CEO Top Five States
– Tax Foundation Best in Midwest
– Pollina Top 5 Pro Business
– Site Selection Top 10
Results
– INCREASED DEAL ACTIVITY 4 YEARS RUNNING
– TOP 3 JOBS GROWTH (Newsweek & The Daily Beast 2011)
– TOP INTERNATIONAL TRADE (WISER Trade 2011, IBRC 2012)
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…FUTURE OPPORTUNITIES
• Workforce Skills/Health
• Entrepreneurism, Start Ups, Angel/Venture Capital
• Brand Awareness/Voice
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TOTAL COMPETITIVE PROJECTS
124 YTD
174 YTD
142 YTD 142 YTD 146 YTD
183 YTD
209 YTD 220 YTD
142
186
158 151 160
200
219
250
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 2010 2011 2012
Goal YTD as of 11.27.12
4
2012 RUN RATE BY WEEK
220
250
50
70
90
110
130
150
170
190
210
230
250
4/1
to
4/7
4/8
to
4/1
4
4/1
5 t
o 4
/21
4/2
2 t
o 4
/28
4/2
9 t
o 5
/5
5/6
to
5/1
2
5/1
3 t
o 5
/19
5/2
0 t
o 5
/26
5/2
7 t
o 6
/2
6/3
to
6/9
6/1
0 t
o 6
/16
6/1
7 t
o 6
/23
6/2
4 t
o 6
/30
7/1
to
7/7
7/8
to
7/1
4
7/1
5 t
o 7
/21
7/2
2 t
o 7
/28
7/2
9 t
o 8
/4
8/5
to
8/1
1
8/1
2 t
o 8
/18
8/1
9 t
o 8
/25
8/2
6 t
o 9
/1
9/2
to
9/8
9/9
to
9/1
5
9/1
6 t
o 9
/22
9/2
3 t
o 9
/29
9/3
0 t
o 1
0/6
10/7
to
…
10/1
4 t
o …
10/2
1 t
o …
10/2
8 t
o …
11/4
to
…
11/5
to
…
11/1
8 t
o …
11/2
5 t
o …
12/2
to
12/8
12/9
to
…
12/1
6 t
o …
12/2
3 t
o …
Actual New Projects
Projected New Projects
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PRIVATE SECTOR JOB PROJECTIONS
13,6698 YTD
19,219 YTD 20,076 YTD
17,965 YTD 18,380 YTD
20,817 YTD
18,302 YTD
20,886 YTD
15,523
21,995 22,627
18,627
19,955
23,017
19,080
25,000
0
5,000
10,000
15,000
20,000
25,000
30,000
2005 2006 2007 2008 2009 2010 2011 2012
Goal YTD as of 11.27.12
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$18.83
$20.21
$20.56
$22.62
$20.95
$23.02
$21.22
$22.35
$17.03
$17.57
$18.04
$18.46
$18.40
$18.87
$19.35 $19.66
$16.00
$17.00
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
2005 2006 2007 2008 2009 2010 2011 2012
IEDC Project Wage
State Avg. Wage
HOOSIER AVERAGE WAGE
As of 11.27.12
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PRIVATE SECTOR INVESTMENT PROJECTIONS
$2.5 B YTD
$7.8 B YTD
$3.1 B YTD
$4.1 B YTD
$1.8 B YTD
$4.1 B YTD
$2.6 B YTD
$3.6 B YTD
$2.75 B
$8.44 B
$3.38 B
$4.21 B
$1.96 B
$4.38 B
$2.68 B
$4.2 B
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
2005 2006 2007 2008 2009 2010 2011 2012
Goal YTD as of 11.27.12
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$37,652
$11,699 $11,805
$8,469 $7,277
$8,700 $9,981
$8,297 $8,916 YTD
$9,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2004 2005 2006 2007 2008 2009 2010 2011 2012
Goal
CONDITIONAL INCENTIVES PER JOB
As of 11.27.12
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Every deal has a very positive cost benefit to the
state assuming full payment of the incentives
Only 46% of awarded incentives are claimed
INCENTIVE MIX… ALL PERFORMANCE BASED Refundability has been highly desirable
Workforce training assistance always appreciated
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142
186
158 151
160
200
219 230
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010 2011 2012
(annualized)
INCENTIVE MIX IEDC Deals
EDGE
HBI
SEF
Goal
1.84
2.27
1.95 1.80
2.08
2.94
3.71
3.17
4
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2005 2006 2007 2008 2009 2010 2011 End of Year
Projection
PR
OJEC
TS
NEW PROJECTS PER IEDC EMPLOYEE
IEDC PRODUCTIVITY
As of 11.13.12
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PRIOR IEDC INTERNATIONAL OFFICES
►Pre-2005: Export focus; IEDC-era formed
partnership with U.S. Dept. of Commerce to
support Indiana exports.
►2005-Present: Focus on attracting foreign
direct investment (FDI).
►2012: Rebalanced IEDC’s financial and
structural resources to match market
opportunities in China, Europe, and Japan.
2012 IEDC INTERNATIONAL OFFICES
►Australia
– No renewal of contract
►China
– Shift from contractor to dedicated China office
►Europe
– New representative in Germany with increased resources
►Japan
– Increased resources
►Taiwan
– Smaller presence in Taipei
INDIANA’S INTERNATIONAL STRATEGY 74 INTERNATIONAL PROJECTS ON THE PIPELINE (50% INCREASE SINCE 2010) OF WHICH 30 HAVE ALREADY BEEN ACCEPTED THIS YEAR
As of 9.18.12
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$5.1 Billion
INTERNATIONAL
INVESTMENTS 2009-2011
IN INTERNATIONAL INVESTMENT
& 11,800
NEW JOBS FROM
INTERNATIONAL INVESTORS
Source: IBRC (5/2012)
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COMPLIANCE (IN MILLIONS)
Competitive Incentives Total Claw Backs Pursued $27.0
Collected (recovered incentives) $19.0
In collection proceedings $4.8
Write-offs $3.2
Receivables $0.0
Grants Collected (recovered 21Fund grants) $4.5
(projects originating 1994 to present)
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EVALUATION OF IEDC- IMPROVING ON ALREADY HIGH RATINGS
Strategic Marketing & Research, Inc.
Excellent Very Good Good Neutral Poor Bad
47%
36%
8%
6%
0%
3%
29%
31%
28%
10%
2% 0%
EVALUATION OF IEDC BY BUSINESS LEADERS
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INDIANA PERCEIVED PROGRESS IN ECONOMIC DEVELOPMENT
Excellent Very Good Good Fair Poor Bad
25%
32% 34%
8%
1%
14%
29%
38%
14%
4%
1%
INDIANA PROGRESS IN ECONOMIC DEVELOPMENT Perceived Progress from 2009 to 2012 by Business Leaders
2012 2009
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Strategic Marketing & Research, Inc.
…STAYING IN THE LEAD REQUIRES IMPROVEMENT
• Workforce Skills/Health
• Entrepreneurism, Start Ups, Angel/Venture Capital
• Brand Awareness/Voice
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2012 MANUFACTURING AND LOGISTICS REPORT CARD Indiana ranks 1st among states in per capita manufacturing
employment and 9th in logistics employment.
U.S
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INN
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ILLINOIS C A C F B B
INDIANA A A C- A A B+
KENTUCKY B B D- C B+ D
MICHIGAN A C+ D C- B+ A
OHIO A A C C A C
WISCONSIN B+ B- B+ D+ C C
2012 Manufacturing and Logistics Annual Report **Human Capital Definition– A measure of education
and skill level, and (in some settings) health of residents
and workers within a region
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IMPORTANCE OF EDUCATED WORKFORCE
Very
important
52%
Somewhat
important
42%
Somewhat
unimportant
3%
Not at all
important
3%
Importance of a Well-Educated Workforce
WHY?
Provides a solid stable workforce
Supports high tech
Workforce is easier to train
Access to highly skilled labor force is business
critical; life sciences/Biotech require higher
education
Education is a precursor to corporate success
Supports growth and diversity
Good workforce is a must in a competitive
market
Necessary to keep pace with rapidly changing
economy
Automation and technology requires a more
educated workforce
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Strategic Marketing & Research, Inc.
INDIANA IS LAGGING ON LEADING ATTRIBUTES OF
ENTREPRENEURISM, INNOVATION, AND EDUCATION
Sophisticated
Vibrant
Diverse
Educated
Innovative
Forward-looking
Progressive
Entrepreneurial
Competitive
Proactive
Economical
Safe
Accessible
3.56
3.63
3.62
3.84
3.83
3.85
3.82
3.92
3.96
4.03
3.63
3.76
3.83
3.84
3.84
3.88
3.88
3.89
3.91
3.91
3.97
4.00
4.05
Words Describing Indiana on a 5-point Scale
(1 being Strongly Disagree and 5 being Strongly Agree)
Strategic Marketing & Research, Inc.
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Top Drivers of Brand Strength
21st CENTURY FUND The Objective
… Not to be the Venture Capital Market
… But to Stimulate the Indiana Venture Capital Market
• Nearer Term Employment
• Reasonable Returns
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Source: the Kauffman Foundation Research Series: Firm Formation and Economic
Growth, “High-Growth Firms and the Future of the American Economy”
SUSTAINABLE AND HIGH-PAYING JOBS RESIDE
IN SUCCESSFUL HIGH-GROWTH COMPANIES.
21 Fund
2005-2009
$35 million/yr
21 Fund
1999-2005
$35 million/yr
21 Fund
2009-2011
$15 million/yr
21 Fund
2011-2015
$15 million/yr
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21 FUND
THREE EVOLUTIONS ALONG THE COMPANY DEVELOPMENT TRAJECTORY, CLOSER TO
JOB CREATION
Research
Core
Technologies
Maturity Rapid Growth Product
Development Early Growth
Idea
Development
1999-2005
Grants to support
academic research and
university technology
transfer ($35 million/yr)
2005-2009
Technology
and product
development
($35 million/yr)
2009 – 2013
Acceleration
of Revenue
($15 million/yr)
Notable Successes:
2013 – 2015
Target
Rapid Company and
Job Growth
Life Sciences Research
Institute
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21ST CENTURY FUND CAN FUNCTION AT
CURRENT LEVELS W/ NO FURTHER FUNDING
WHY?
• $34 Million Federal Grant
• Smaller Awards
• Focus on Matching 1-4 (in state, out)
• Convertible Note Structure Yields Returns
• Clawbacks
• Regional Matching Programs
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WHERE THE ACTION IS-LIFE SCIENCES BUSINESS
BOOM IN INDIANAPOLIS
Indianapolis ranked as the
hottest spot in the country
for starting a new life
sciences business.
August 2011
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21 FUND 2013-2015 ASK
Core Strategy New Sector-Specific
Strategy
Existing 21 Fund Focus
oStay strong on IT, Advanced
Manufacturing, & Software
oMove to Self Sufficiency
Life Sciences Fund of Funds
oHelp provide more life sciences
funding
oFuel to our current tentative
position
oBig enough to draw matching
funds from coasts
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AND FINALLY… BRAG & SWAG
Rust Belt
Corn Belt
Bible Belt
Flyover State
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…MAINTAINING COMPETITIVE ADVANTAGE
• Workforce Skills/Health
– SEF Training $
• Entrepreneurism, Start ups, Angel/Venture Capital
– 21 Fund Life Sciences Fund Creation
• Brand Awareness/Voice
– $ to Tell the Story
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