Kernan:
growth of 'insourced' jobs shows Indiana can compete
globally
Governor says foreign investment
is result of state's focus on
Hoosier workers, steps to create stronger business
climate
Gov. Joe Kernan today pointed to a
just-released study by the Washington, D.C.-based
Organization for International Investment as proof
that Indiana is competing successfully in the global
economy.
According to the study, 137,400 Hoosiers
are employed by U.S. subsidiaries of foreign companies,
placing Indiana 14th in the nation when it comes
to "insourced" jobs. The number represents
a growth of 24,400 jobs during the five-year period
of 1998 to 2002.
"This ranking is a real testament
to the strength of Indiana's workforce and our ability
to compete in the global market for business investment,"
Kernan said. "We've put unprecedented resources
behind our training programs to help our workers
strengthen their skills. We've also cut taxes on
businesses and taken other significant steps that
have made companies, including those outside the
U.S., take note of what Indiana has to offer.
"As we continue to diversify
our state's economy and bring good jobs to Indiana,
the fact that we are able to successfully compete
for this type of business investment is vital,"
Kernan added.
The study, completed by Professor
Matthew Slaughter of Dartmouth College's Tuck School
of Business, ranked the 50 states on U.S. jobs supported
by foreign companies. The study points out the benefits
of "insourcing," which OFII says has been
lost in the outsourcing debate.
Slaughter's study is based on 2002
data released this August by the U.S. Department
of Commerce's Bureau of Economic Analysis. For the
first time, the data release in August looks at
only majority-owned U.S. subsidiaries of foreign
companies.
Indiana's 137,400 insourced jobs accounted
for about 5 percent of the state's private sector
workforce. As well, Indiana ranked 6th in the nation
in terms of the number of insourced manufacturing
jobs - 91,200.
The study, titled "Insourcing
Jobs: Making the Global Economy Work for America,"
points out that:
" subsidiaries of foreign companies
employed over 5.4 million U.S. workers, about 5
percent of the total private sector workforce in
the nation;
" the average annual compensation for insourced
jobs was $56,667 - more than 31 percent higher than
the average annual compensation in the rest of the
U.S. private sector; and,
" insourcing companies purchased $1.26 trillion
from U.S. suppliers.
Kernan said that the data on foreign
investment in Indiana's workforce is even more significant
when coupled with the state's recent record exports.
In 2003, Indiana yearly export sales reached an
all-time high of $16.4 billion. In the first six
months of 2004, Indiana export sales were approximately
$1.07 billion higher (13.9 percent) than the same
time period in 2003.
"Globally, we are in a very competitive
economic environment and our ability to bring jobs
and investment from foreign companies to Indiana,
as well as continue to increase the sales of Hoosier
products outside the U.S., shows that we are on
the right track," Kernan said. "This is
the result of the strong partnerships we've built
here in Indiana to strategically position ourselves
to compete."
Insourcing companies in Indiana include:
Bayer Corp.; DaimlerChrysler; GKN; ICI; Ispat Inland
Steel Co.; Michelin North America, Inc.; Roche Diagnostics
Corp.; Rolls Royce Allison; Saint-Gobain; Sodexho,
Inc.; Subaru of Indiana Automotive, Inc.; Thomson
Consumer Electronics; Tomkins Industries; Toyota
Motor North America; Unilever United States; and
Zurich North America.
States ranking higher than Indiana
in the number of insourced jobs - ranked in order
- were: California, New York, Texas, Illinois, Florida,
Pennsylvania, New Jersey, Ohio, North Carolina,
Michigan, Massachusetts, Georgia and Virginia.
A full copy of the study is available
at www.ofii.org.
Reporters' contacts: Jonathan Swain
or Lisa Sirkin, Governor's Office, 317-232-4578
Angie Dye, Indiana Department of Commerce, 317-232-2464
