How Other States Created New Jobs

The Arizona Republic




October 18, 2009

No region has been immune from the Great Recession. Jobs have been lost across the country. Some areas are doing better, in part, because states, cities and industry groups have been pursuing jobs and research programs for years.

New Mexico, getting more competitive

Action: Gov. Bill Richardson in 2003 created the New Mexico Partnership, a public-private group that aims to be a one-stop resource for any firm considering a move there. State incentives include tax credits for companies paying high salaries.

Results: At least 38 companies and 12,000 jobs have gone to New Mexico, including a $100 million Schott North America Inc. solar-manufacturing plant that Arizona wanted. Schott's North American headquarters are now in Albuquerque.

Utah, recognized for being business friendly

Action: More than a decade ago, the state began giving lump sums of money to companies after they expanded or relocated. Now, incentives are stretched out to make sure firms stay.

Results: Forbes magazine has named Utah one of the best states for doing business for three consecutive years, based on labor supply, growth prospects and other criteria. This year, it ranked third. The nonpartisan research group Tax Foundation said in September that Utah's tax climate is 10th-most favorable for businesses in the U.S.

Ohio, a state with its own stimulus plan

Action: The Third Frontier Commission was created in 2002 as a 10-year, $1.6 billion plan to create high-paying, high-tech jobs. The state also enacted $1.57 billion job-stimulus plan last year.

Results: Ohio had 503 new projects last year and won Site Selection magazine's top Governor's Cup. The commission concluded in September that every $1 invested by the state brought in about $10, or about $6.6 billion since it was created.

Pittsburgh, from rusty steel town to economic showcase

Action: It took about 30 years, but this old city has diversified its economy into health, education and high tech, cleaned its rivers and redeveloped old industrial buildings.

Results: The city was selected to host the recent G-20 conference of world leaders to show the world a post-industrial city that has bounced back. The region has about 1.1 million jobs, slightly more than it had in the steel heyday.

Houston, working to diversify its oil economy

Action: Thirty-six regional economic development groups in 10 counties last year created Opportunity Houston, a $40 million effort to aggressively market the region and bring 600,000 net new jobs. Greater Houston Partnership's Web site lets companies do instant demographics

Results: Site Selection magazine ranked the city No. 1 in the country for corporate activity in 2008. Greater Houston Partnership, an economic-development group, reported $6.2 billion in capital investments and almost 10,000 new jobs last year.



Sources: Site Selection magazine, Forbes, Salt Lake Tribune, Wall Street Journal, Tax Foundation, U.S. Department of Labor


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