[Congressional Record Volume 142, Number 58 (Wednesday, May 1, 1996)]
[Extensions of Remarks]
[Pages E686-E687]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        HOOSIER BUSINESS GROWTH

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                         Wednesday, May 1, 1996

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, April 24, 1996, into the Congressional Record:

                        Hoosier Business Growth

       When politicians and the media talk about the economy, they 
     tend to focus on the big, negative stories. Everyone has 
     heard about how major corporations like IBM and AT&T are 
     laying off workers in an attempt to downsize and become more 
     competitive. Hoosiers have not been immune to such news. 
     Recently Colgate in Clarksville and Randall Textron in 
     Switzerland County, among others, have announced layoff 
     plans. News like that causes all workers to feel anxious 
     about their job security and the future. Hoosiers, however, 
     should take some comfort that the Indiana economy has 
     improved and is generating thousands of new jobs.


                      CURRENT ECONOMIC CONDITIONS

       In recent years the unemployment rate in Indiana has been 
     consistently lower than the national average, and the 
     earnings of Hoosier workers have grown faster than in the 
     rest of the country. At the end of 1995, the unemployment 
     rate in the state was 4.6%, compared to 5.6% nationally. 
     Economists tell us that the Indiana economy is operating at 
     near full capacity, inflation is in check, and interest rates 
     are low. In 1995, more than 50,000 net jobs were created in 
     Indiana, and Hoosiers' real earnings grew by 3.4%, well ahead 
     of the national average of 2.1%. Leading the way in job and 
     earnings growth was the manufacturing sector, with a 7% 
     increase in employment and a 6.6% increase in earnings.
       The performance of the economy in the 96th District mirrors 
     that of the state as a whole. The manufacturing sector is the 
     single largest employer in our part of the state, and other 
     important sectors are retail trade, services, construction, 
     and agriculture. The I-65 corridor from Columbus to the Ohio 
     River is one of the fastest growing areas in the state. Small 
     businesses, in particular, are playing a major role in the 
     expansion and diversification of southern Indiana's economy. 
     Indeed, small businesses are the backbone of the U.S. economy 
     as a whole, responsible for generating the majority of all 
     new jobs. There are almost 6 million small businesses in the 
     U.S. today, employing more than 92 million workers. In 
     Indiana alone, 129,000 small businesses employ more than 2.1 
     million Hoosiers.


                          expanding businesses

       Helping the economy of the 9th District has been one of my 
     priorities, and I want to share with you a few of the stories 
     I have heard recently about companies that are doing well, 
     expanding, and creating jobs in the region.

[[Page E687]]

       Companies involved in the auto industry have been 
     particularly successful in creating jobs. In Perry County a 
     company that makes castings for auto and machine parts, as 
     well as engine supports, recently invested $60 million in a 
     200,000 sq. ft. facility, creating 220 new jobs. In 
     Switzerland County a company is expanding its manufacturing 
     facility to make a brake system component for General Motors, 
     creating up to 100 new jobs. In Jefferson County a company 
     that makes die castings for the auto industry recently 
     invested $14 million to expand its operation, creating 100 
     new jobs. In Clark County a Houston-based company announced 
     plans to build a $12.5 million plant at the Clark Maritime 
     Centre that will produce thermal plastic resins for the auto 
     and appliance manufacturing industries, creating 72 new jobs. 
     At the Northern Industrial Park in Scottsburg a new company 
     will produce plastic-injection components for the auto, 
     appliance, and electronics industries and will create 60 new 
     jobs over 3 years.
       Manufacturing companies other than those involved in the 
     auto industry are also doing well. In Jeffersonville the 
     country's largest inland shipbuilder recently received its 
     biggest order since World War II. The ships are to be built 
     between now and 1999, and at least 250 new jobs will be 
     created to fill the order. In Perry County a furniture 
     manufacturer recently increased its plant capacity, creating 
     60 new jobs. In Ripley County another furniture maker 
     specializing in entertainment centers plans to expand 
     production and create 45 new jobs by June.
       It is not just manufacturing companies that are succeeding 
     in the 9th District. In Jeffersonville a trucking company is 
     investing $17.5 million to enlarge its truck fleet and real 
     estate holding and to update its terminal. It will purchase 
     285 new trucks and add 200-300 new jobs. In Jennings County a 
     Texas-based company is constructing a $35 million indoor 
     shrimp-breeding facility, creating 40 new jobs once it is 
     fully operational. In Floyd County an operator of consumer 
     merchandise rent-to-own stores reported record results in 
     1995, with revenues up 35% over 1994.
       Some large corporations are also playing a positive role in 
     the region. For example, Toyota recently announced its plans 
     to build a new $700 million truck assembly plant in Gibson 
     County, which will create hundreds of well-paying jobs 
     throughout southern Indiana. Hyatt is building a 118,000 sq. 
     ft. entertainment pavilion and 200 room hotel along the river 
     in Ohio County. That project should create about 3,000 new 
     jobs. Similar entertainment projects are underway in other 
     counties.


                        helping business growth

       Local business and community leaders certainly take the 
     lead in boosting job growth, but there are several ways the 
     federal government can help.
       Because small businesses are the engine of growth, we have 
     to find ways to help make them be more competitive. One step 
     is to make sure that affordable financing is available to 
     them, through the private sector and the Small Business 
     Administration. In addition, we must continue to reduce the 
     federal budget deficit. We have cut the deficit in half in 
     the last four years, and bringing it down further will help 
     keep interest rates low and make it less expensive for 
     businesses to borrow. We also have to continue reducing 
     unnecessary, burdensome regulations that impose unreasonable 
     costs on small businesses, and we should reform the tax code 
     so it encourages greater investment and savings.
       At the same time, we need to increase the quality of the 
     workforce by investing in the education and skills training 
     necessary to make Hoosiers competitive in today's economy. 
     Finally, we should invest in affordable housing and in 
     improving the local infrastructure, particularly roads, 
     bridges, local airports, and water systems. A strong 
     infrastructure helps to attract and maintain jobs in Hoosier 
     communities.


                               conclusion

       There is no higher priority for me than helping to expand 
     job growth and opportunity in southern Indiana. I am 
     immensely pleased with the progress recently made. Working 
     together, there is a lot we can do to ensure that the local 
     economy remains healthy for years to come.

                          ____________________