State lands 22,627 jobs in record year

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Manufacturing still defines employment in Indiana, but the work force continues to shift.

A third of the 22,627 jobs landed by the Indiana Economic Development Corp. this year were in information technology, Gov. Mitch Daniels said Friday at a news conference designed to showcase his record on jobs.

Offering tax breaks and other incentives, state officials secured commitments from 158 companies to locate or expand in Indiana in 2007, he said. Their average hourly wage is $20.56, compared with the current state average of $18.

Many of those jobs have yet to materialize, with some planned to arrive as late as 2010, so it is difficult to measure the impact of state recruitment efforts on the immediate economy.

Indiana Democratic Party Chairman Dan Parker pointed out that Indiana gained only 18,900 jobs from January to November 2007, according to the U.S. Bureau of Labor Statistics.

"He seems to think that by talking about jobs that may or may not show up down the road, he can convince people that things are going swimmingly right now," said Parker. "We've been hard hit by home foreclosures and the credit crunch, and it seems like we read about more layoffs and factory closures every day."

Daniels did not elaborate on job growth but cited statistics that show Indiana has had the lowest unemployment rate in the Midwest for six consecutive months. The rate is just over 4.5 percent.

Daniels focused on his administration's record of cutting deals with companies looking to expand. He said this year's performance is a record over the 21,995 jobs announced in 2006, including about 3,000 jobs yet to be publicly announced.

"Indiana has broken, yet again, the all-time record for most new jobs captured in a competitive setting," Daniels said. "It's significant as we try to have a more diverse economy and a wider array" of employment options.

The economic wins in the past year included persuading Medco Health Solutions to build an automated pharmacy (with 1,306 jobs) in Boone County and landing New York-based Really Cool Foods, which will bring a production and distribution center to Cambridge City, resulting in 1,000 jobs.

The latest win also was announced Friday. Columbus-based software developer LHP said it intends to grow its operations and add more than 320 high-tech jobs by 2011, with salaries averaging about $75,000. The company is investing more than $1 million to expand its southeast Indiana headquarters.

The minority-owned business, which employs 130, was founded in 2001 and expects to hire Hoosiers as well as recruit qualified employees from outside the state.

"It's a milestone for our company," said David Glass of LHP.

Secretary of Commerce Nathan Feltman said the key to staying competitive is to offer a welcoming climate for businesses that includes performance-based incentives.

Indiana Chamber of Commerce President Kevin Brinegar praised the IEDC leaders for their aggressive recruitment.

"Moving Indiana high on the list of desirable destinations is a critical mission shared by many," he said.

The Indiana Business Research Center at Indiana University's Kelley School of Business has reported that the outlook for Indiana's economy in the year ahead is "a mixed picture with more ups than downs."

Indiana remains the nation's most manufacturing-intensive state. The sector accounts for 18.9 percent of all payroll jobs, the school says.

Call Star reporter Tom Spalding at (317) 444-6202.