Chambers talks record investment in Indiana

January 3, 2023

Tuesday, January 3, 2023 06:30 AM EDTUpdated: Tuesday, January 3, 2023 06:57 AM EDT
By Alex Brown, Assistant Managing Editor
INDIANAPOLIS - Indiana Secretary of Commerce Brad Chambers says the record economic development numbers in 2022 show there is focus and confidence in the state’s economy, workforce and universities. Last month, Gov. Eric Holcomb announced a record $22.2 billion in investment from businesses to locate or grow their operations in Indiana. “Indiana’s got a great product, and I think we have been able to position that product in the right way to build an economy of the future, and it’s working,” Chambers said. In an extended interview with Inside INdiana Business Host Gerry Dick, Chambers said the Indiana General Assembly has been a key partner. “They allowed us to refresh our toolkit and make sure our toolkit is modernized to compete with states all across the country that are aggressively pursuing high-wage and future-focused industries,” he said. “We are right in there. We have a great product, but we also now have the tools that the legislature was insightful enough to provide to us.” In the 2022 legislative session, lawmakers passed Senate Enrolled Act 361, which allowed the Indiana Economic Development Corp. to expand its ability to attract new businesses to the state. The law provided a $300 million cap on the amount of tax credits the IEDC can provide per year and also establishes Innovation Development Districts in which the state can capture property, income and sales tax for economic development needs. The first of such districts is the planned LEAP Lebanon Innovation and Research District in Boone County. Eli Lilly and Co. has already committed $2.1 billion to build two manufacturing facilities and create 500 jobs in the district. Last month, the Lebanon City Council voted to annex more than 5,200 acres of land for the district. Chambers said having such districts available is key for economic development. “The new incentive in economic development is speed, and so we need to lean in and have large, sustainably-developed locations for industries of the future to identify and to quickly make a decision on locating, relocating, expanding their facilities. The LEAP strategy should be statewide, and that is our hope that there are LEAP districts north, south, east and west to really receive the potential economic development opportunities and investment that’s floating around the United States.” Additionally, Chambers said the $500 million Regional Economic Acceleration and Development Initiative, or READI, created a major boost for quality of life projects throughout the state. “I don’t know any state that’s investing and leaning into quality of life, quality of place, population growth and workforce growth like the READI program at that scale, and so I think that sends an incredible statement to employers, business owners, CEOs, entrepreneurs globally,” he said. “That really does help sell and tell the story of Indiana.” In early December, IEDC Chief Operating Officer David Rosenberg said throughout the state, 230 READI projects have been accepted with a total funding request of $350 million up to that point. Gov. Holcomb told Inside INdiana Business last month that he wants to see a “READI 2.0,” a plan that will be reflected in the budget proposal he will announced on Wednesday. Chambers said it’s important to continue these types of investments. “I don’t think you can ever stop or should stop investing in communities. Communities change. They evolve, and if you want to be super competitive, you’ve got to continue to invest in our communities, our cities, our towns, north to south, east to west.” The state said 218 companies made capital investment commitments in 2022 with plans to add a total of just over 24,000 Hoosier jobs. Those job commitments came with a record average wage of $34.71, which is 27% higher than the state’s average wage. Chambers said the record wage level was the biggest takeaway from the record numbers. “The wage levels drive our GDP growth. The wage levels put more money in Hoosier pockets. Our workforce is talented; our population is talented, and we’re really trying to provide careers, not just jobs for folks. I firmly believe that economic security is fundamental to quality of life. When you’re economically secure, your health is better, your education is better, your mental health is better.” Chambers said more than half the $22 billion in commitments in 2022 were in rural or mixed-rural areas. He said looking forward, he wants to continue that momentum. “As we look into ’23, [we’re] cautiously optimistic given the macroeconomic conditions of higher interest rates and inflation,” he said. “But the momentum is there. The tailwinds for our economy are there. The right high-wage industries are seriously considering Indiana, and fingers crossed, but I think we’re going to have another record-breaking year.”