City Tops Ind. In Job Growth

Diversity, flexibility lead to 10 percent increase since ’02 

By Kirk Johannesen johannesen@therepublic.com 

Columbus is the only place Ryan Hou wants LHP Inc. to be located. Hou, chief executive officer of LHP, said the city is supportive of business and receptive to new opportunities. 

That’s why LHP has grown from five employees when it started in 2001 as a software company, to about 150 now and possibly 200 by the end of the year. 

LHP’s growth reflects Columbus’ success in new job growth in the state. According to data from Indiana Department of Workforce Development, Columbus experienced a 10 percent increase in jobs from 2002 to 2007. 

Among 14 metro areas in the state, Columbus had the highest percentage of growth. 

“Columbus is the best place to live and work in the Midwest,” Hou said. “The town is getting more diversified, there are more ideas, and local government is supportive.” 

Seven of the metro areas experienced job gains, and the other seven suffered losses. 

Only Columbus achieved at least 10 percent growth in jobs, as the number of nonfarm jobs increased from 41,200 to 45,300. 

The Elkhart/Goshen area had the second-best growth at 8.4 percent, and Indianapolis and its suburbs ranked third at 6.9 percent. 

Conversely, Anderson suffered a 10 percent loss in jobs during the five-year period, while jobs fell 9.4 percent in Kokomo. 

Brooke Tuttle, president of Columbus Economic Development Board from 1985 to 2006, said about 70 expansions by existing companies, and 14 new companies locating in Columbus, spurred the growth and overcame job losses if companies closed or relocated. 

The manufacturing sector, driven by NTN Driveshaft and Cummins Inc., largely caused the job growth, he added. 

NTN announced expansions and investments in 2002, 2003 and 2007 totaling 459 jobs and $194 million. 

Reasons to stay
NTN has reinvested in Columbus and expanded, because it is strategically located near interstates and customers, the area has a pool of skilled labor and local government has been supportive with tax abatements, said Dave Miller, NTN’s administration controller. 

NTN can ship to all automotive plants in the continental U.S. within one or two days, Miller said. 

Flexible approach 
Columbus also is receptive to international investment, Hou said. Companies from Japan, Switzerland, India and Germany have located here. In May, LHP announced a partnership with a company whose majority ownership is Chinese. 

“The entrepreneurial spirit in Columbus has been good, and technology has been good,” said Tuttle, now president of LHP Technologies. 

Another reason for job growth in Columbus, is companies have become successful through diversification. 

Columbus used to rely on making diesel engines and auto parts, said Jack Hess, president of Columbus Area Chamber of Commerce. 

Now companies make emissions controls, embedded systems and onboard diagnostics. 

Also different sizes and tiers of suppliers makes for a good mix, Hess said. 

“Diversification is key,” Miller said. 

NTN supplies to almost all automotive companies in North America, including Honda, Toyota and Nissan. 

Cities such as Anderson and Kokomo have been tied to Ford, General Motors and Chrysler, which are struggling, Miller said. 

Cummins diversified its operations to rely less on heavy-duty diesel engines and now is recording record profi ts. 

Cummins is LHP’s largest customer, so Cummins’ success has aided LHP in its growth, Hou said. 

Tuttle said growth of jobs from 2002 to 2007 in Columbus is an extension of growth the city experienced in the 1990s, when new companies grew rapidly. 

That has resulted in a cycle of success that continues. 

Cycle of success 
Columbus and Bartholomew County have set a welcoming climate for businesses, investing in industrial and technology parks, Tuttle said. 

The city has invested in education and aligned it with industry to create a larger, skilled work force. 

“We’re a region that gets the importance of education,” Hess said. “Our niche is to have highly skilled workers.” 

Companies see advantages to locating or reinvesting in Columbus, including quality of life. That helps attract new workers. 

Growing, successful companies aid in good average wages per job, and a solid per capita personal income, Tuttle said. 

“That’s a result of the health of the community,” Tuttle said.