Purdue University Advanced Manufacturing Summit

Indiana Government PresentationWednesday, March 25, 2009

E. Mitchell Roob, Jr.Secretary of Commerce

Commitments for New Jobs, InvestmentCommitments for New Jobs, Investment

New Capital Investment

* As of 03/20/09

• Since its creation, the IEDC has worked with over 650 businesses who have committed to create more than 80K new jobs and invest over $19B

• The average wage for new jobs committed in 2009 is $20.39/hour –

well above state average of $18/hour.

New Job Commitments

2003 2004 2005 2006 2007 2008

2005 2006 2007 2008

Bil

lio

ns

2009*

2009*

Increasing Hoosier IncomeIncreasing Hoosier Income

* As of 03/20/09

* As of 03/10/09

* As of 03/20/09

• Direct state incentives include tax credits, training grants and infrastructure assistance

• Tax credits are performance-based linked to IEDC certification of new jobs• Average time of return on investment: approximately 2 years

Low cost of incentives yields quicker Low cost of incentives yields quicker returnreturn

2005 2006 2007 20082004 2009*

• Indiana continues to seek a high return on its investment in the form of dollars in Hoosiers’ pockets.

$3.22

$5.64$5.88

$4.61

$3.41

First Quarter Results Comparison First Quarter Results Comparison (1/1 – 3/24)(1/1 – 3/24)

33

$414.4M

2,41328

3,433

3,504

3,4333,504

• More than 15,800 new jobs & $8 Billion investment from FDI since 2005

• First in North America for attraction of production jobs through FDI

• Focus on Asia, Europe creating new jobs for Hoosiers

In-Sourcing In-Sourcing

8

$509 M

$800 M

$640 M

$218 M

$500 M

$65 M

$604 M

$58 M

$56 M

$211 M

$426 M

$137 M

$342 M

$341 M

$594 M

$9.0 B

$2.3 B

$2.5 B$1.1 B

$1.6 B

$14.8 B

$5.0 B

$459 M

$838 M

$691 M

$2.4 B

$751 M

$250 M

$2.1 B

$1.7 B

$372 M

$871 M

$1.138 B

$1.2 B

$1.0 B

Source: Center for Budget and Policy Priorities and various news clipsFigures reflect best available information on FY09 budget shortfalls. States shaded red without shortfall figures are projecting FY10 budget shortfalls.

Surplus

Deficit

$606 M

$88 M

$1.7 B

$295 M

$917 M

$1.65 B

$310 M

$1.65 B

04/18/23

Projected 2009 & 2010 State Budget ShortfallsProjected 2009 & 2010 State Budget Shortfalls

1st in the Midwest and 11th nationally• Best Places for Business Survey• 543 top CEOs Source: Chief Executive Magazine, Jan./Feb. 2009

Executives Rank Indiana Best in MidwestExecutives Rank Indiana Best in Midwest

• Skills Enhancement Fund (SEF)

• 21st Century Research and Technology Fund

IEDC Programs IEDC Programs

Skills Enhancement FundSkills Enhancement Fund

• Provides reimbursement of eligible training expenses to businesses committed to training their workforce.

• Could be applied toward implementation of corporate sustainability programs including:

o Waste prevention

o Clean processing

o Lean manufacturing

o Specific Quality Initiatives

2121stst Century Research and Technology Century Research and Technology FundFund• Provides seed capital to promising entrepreneurial

ventures developing innovative technology

• Leverages Indiana’s network of business and academic partners

• Creates high-wage, high-skill jobs in Indiana through commercialization of new technology-based products

• Awards range from $100,000 to $2,000,000

• Proposals accepted year-round

Stimulus UpdateStimulus Update

• GOAL: To leverage the federal dollars to create assets of lasting economic value

• State’s role is to maximize participation and ensure funds are used effectively

• 2 Streams of Funding:o Formula-based o Competitive Grants

• INvest.IN.gov