State’s business climate ranks high on top 10 lists despite local criticism

Indiana’s business climate was given a top 10 spot in recently released rankings from the magazine Site Selection.

The magazine reports on corporate real estate strategy and area economic development in the United States. It ranks states every year based on a survey of national real estate executives and a review of local economic development.

This year Indiana came in sixth place, two spots higher than in 2010. It is the fourth time the state has made it into the magazine’s top 10.

“Companies are finding Indiana at record pace this year as our state continues to be a standout choice for companies to locate and thrive,” said Dan Hasler, secretary of commerce and chief executive officer of the Indiana Economic Development Corporation, in a press release.

“The Hoosier State earns its renowned reputation every day by offering a skilled workforce, tremendous transportation infrastructure and friendly space for entrepreneurs to make their visions a reality.” 

Site Selection’s annual business climate rankings are also influenced by how the state performs in  Conway Data’s New Plant Database.

The database keeps track of business activity, both new and expanding.

The survey taken by real estate executives asked companies to identify the top 10 state business climates based on information such as government cooperation, financial assistance and a lack of red tape.

The rankings’ praise of those first two factors comes at the same time Indiana’s government, particularly Gov. Mitch Daniels, is coming under fire from state Democrats after an Indianapolis Star editorial criticized a Daniels-backed incentive program.

An Indianapolis Star investigation found that businessman Bob Yanagihara, who stands to receive $10 million in state tax incentives and $1 million in local tax abatements to build a new $20 million factory in Indianapolis, has hundreds of thousands of dollars in tax liens against him.

The paper also found a California man who said Yanagihara still owes him $100,000 from an investment the man made nearly 10 years ago. 

Despite the criticism, Site Selection is not the only economic development magazine in recent months to recognize achievements in Indiana’s economy.

In September, another magazine honored Indiana’s business climate in a ranking of its own.

Area Development magazine rated the state as best in the Midwest and fifth in the country, according to a survey conducted with consultants. Indiana also ranked first in the nation for rail and highway accessibility.

— Jake New