The Republic Staff Reports

Members of Columbus Economic Development Board say that the city’s efforts are as successful as ever, but statistics show the county is slipping compared to its neighbors.

Historically, CEDB’s job was to nationally and internationally recruit companies to Columbus and retain the ones already here.

Mayor Fred Armstrong said he thinks retention is slightly more important than recruitment.

“If you don’t keep your current customers happy, they’ll convey that to prospective companies,” he said.

Tom Fowler said he thinks Columbus is doing “everything right” with retention.

Fowler, a board member and vice president of human resources and information technology at NTN Driveshaft Inc., said the community supports business efforts to a phenomenal degree, considering the modest number of economic development staff.

Of the board’s 32 full members, only two are paid to promote economic development.

“If anything, I’ve had to complain because it was hard to get employees because they were doing so good,” he said.

“I can’t imagine anyone doing a better job anywhere in the country.”

Armstrong said that while Columbus has enjoyed a successful track record, it’s time for the board to reconsider its retention strategy.

“We’ve lived on our reputation long enough,” he said.

Makuta’s decision to leave was a reality check that Columbus’ plan may have flaws, he said.

Armstrong said he thinks Columbus used all of its existing tools to retain the company, but the city simply was unable to match Shelbyville’s offered incentives.

“It was a failure,” Armstrong said.

Time for a change

While acknowledging the need for change, Armstrong said he all ready has seen significant transformation in economic-development efforts during his lifetime in Columbus.

Whereas the recruitment focus once was on attracting manufacturing jobs, the board’s efforts now are more directed toward attracting information technology, life sciences and agri-business jobs.

The strategy has roots in a 1997 Hudson Institute study that recommended the city recruit high-tech, high-wage companies from industries such as bio- and information technologies, pharmaceuticals, electronics and advanced manufacturing.

Though CEDB has worked toward this overarching goal for the last eight years, few new businesses in this realm have actually moved to Columbus.

Ritz said the city has experienced some success in this area, pointing to expansions of LHP Software, ArvinMeritor Inc. and TLS Internet providers.

“We’re at a starting point, and the key from here will be recruiting the right people and focusing on education,” Ritz said.

Former board chairman Marv Johnson said he thinks Columbus has done as well as many Indiana communities in attracting high-technology jobs.

“The fact that we’re not moving ahead leaps and bounds doesn’t mean we’re struggling,” he said.

“It just means there’s a lot of competition.”

What the numbers say

Recent statistics indicate that Columbus is struggling.

Bartholomew County has fared worse in recent years than most nearby counties in job creation and income growth.

“It’s not a sign of economic progress,” said James C. Smith, a senior lecturer in finance at Indiana University’s Kelley School of Business.

The labor force also experienced a decline between 2000 and 2004.

Smith said that means people are moving away.

While the county once was comfortably leading and improving, Smith said the fact that we’re getting passed means either that there’s a lull in progress or that we’re just as good as always, but others are growing faster.

Board chairman F.A. “Buck” Ritz said he thinks the declining labor force is a result of more jobs but fewer trained employees to fill them.

Ritz said he thinks the challenge is matching available jobs to available employees.

“And it’s working well,” he said. “You can look at the numbers any way, but I think we are very much above average.”

Dan Arnholt, board member and Bartholomew County REMC CEO, compared the board’s current position to its footing in the early 1980s.

“We’re knocking on doors and singing the songs just like we did when we began trying to bring manufacturing jobs,” he said.

“We’re in growing pains right now, but eventually someone will locate here, which will springboard us to the next.”

Arnholt said he thinks young leaders will be the key to success.

“If I walk into an IT company, I can’t even speak their language,” he said.

“I think it’s time for my generation to step back and let the 30-something generation to lead the pack.”
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