Daniels believes Kokomo could be epicenter of green jobs

ken.delabastide@kokomotribune.com

INDIANAPOLIS - Kokomo could become the epicenter for production of electric vehicles and alternative energy for the state, according to Gov. Mitch Daniels.

During an interview Thursday, Daniels said he is in the middle of discussions to bring investments to Indiana, and with it, the creation of new jobs.

"It's an everyday job," he said. "I went to China and Japan to attract investors."

The state started talking about electric vehicle manufacturing and alternative energy four years ago as something that could be a big area for Indiana.

"That was largely based on the history of Kokomo," Daniels said. "It's like life services - we wanted to make sure it was an opportunity and not a fantasy. We wanted to make sure we have a real business opportunity and we're ahead of any state that I know of."

Daniels noted that EnerDel will manufacture batteries for electric vehicles and its major customer is Think, located in Elkhart.

"Our goal is to bring their suppliers to Indiana. It makes good business sense to bring them all together," he said. "We'd like to be the capital of all of that. It could be centered right around Kokomo."

Daniels said companies look at Indiana because of the business environment, workforce, permitting process, lower taxes, location and network of roads.

"We don't want the units from EnerDel spending a lot of time in transit," he said. "We're spending a billion dollars on U.S. 31 and it will take an hour off the round trip. That's real dollars."

Daniels said, from Indiana, suppliers can reach auto plants all over the eastern two-thirds of the U.S.

People working for EnerDel in Indianapolis previously worked in Anderson and Kokomo, Daniels noted. Kokomo is the epicenter for the engineers.

Daniels said the state is working with existing companies in an attempt to lure their most important suppliers.

"It's not about subsidies and incentives," he said of luring investments. "Its fair for companies to ask for them, but subsidies are gone in a few years. We win over and over when another state offers more goodies. We win because when someone makes a long-term business decision, they look at taxes, transportation costs, if they're hassled by regulators of the state."

Daniels said there is a lot of talk about diversifying the Indiana economy, but the state has focused on being a manufacturing state.

"Conditions that can make us the top manufacturing state in electric vehicles and alternative energy all apply to other areas," he said. "We have to walk and chew gum in terms of economic development."

Daniels said it shouldn't be hard to get companies to consider locating in Kokomo, Anderson and Connersville.

"It's already reaching Anderson," he said of development. "The Flagship [business incubator] has become a great competitor to Indianapolis. Mayor [Greg] Ballard better watch out. It's a lot easier to commute out than in."

Daniels said when the U.S. 31 freeway is completed around Kokomo, there will be a direct connection to all the spokes of the interstate wheel.

Costs are competitive for unfortunate reasons, he said of cities in central Indiana, which have fallen on tough economic times in recent years.

"I'm not worried about Elkhart, they became the focus because they fell so suddenly," Daniels said. "Sitting out here and not blowing in like the president, you think about Kokomo, Anderson and Connersville, places that have been down for some time.

"When the RV industry and auto sales recover, Elkhart will come back," he said. "We had 10 deals in Elkhart in the past year and unemployment has fallen by 5 percent. We spend our time thinking about who we can take to Kokomo and Connersville, where there are still good economic opportunities."

Kokomo may not be the first place a company considers for a location, but it is for the state, Daniels added.

He said it is getting easier to get companies to look at central Indiana.

"We have been very close with landing a company at Grissom," Daniels said. "It has the longest airstrip and a good location. We've been talking with companies that paint and repair planes and cargo companies. Once U.S. 31 is completed, there will be an interstate quality road running right by it.

"We need to find people for whom that will be a perfect fit," he said. "There is a big score out there. Companies aren't looking right now to make a big investment, but when companies start looking to make a big investment, they will come back."