State sells itself across state lines

Indiana’s friendly economic development rivalry against Michigan and Illinois is heating up. Confident that its business costs are lower, Indiana has begun a six-month advertising campaign designed to attract companies across the state line.

“You don’t have to go very far,” Indiana Secretary of Commerce Nathan Feltman said. “You can go right across the border and find a more competitive environment.”

The campaign, which debuted last month, features a series of billboards placed at key locations, such as the Chicago Skyway and the Indiana Toll Road. Each bears the slogan “Come on IN,” and touts Indiana’s lower taxes, business and housing costs. Feltman said Gov. Mitch Daniels, a Republican, conceived the slogan himself.

Indiana’s advertising also includes a series of morning and afternoon drive-time radio spots in Chicago and Lansing, Mich. The Indiana Economic Development Corp. is following up with a flurry of direct mail and targeted inquiries to corporate executives and site-selection consultants. IEDC’s foundation is underwriting the campaign, which has an initial cost of $75,000. If successful, it could be expanded to include other states.

“We think we’re going to get a lot of bang for our buck,” Feltman said.

Indiana’s pitch is based on its business costs, which IEDC claims are consistently lower than those in neighboring states. For a company with 100 employees, IEDC calculates that annual business taxes are nearly $100,000 lower in Indiana than in Michigan or Illinois. By IEDC’s estimation, Indiana’s expenses for Worker’s Compensation, unemployment insurance, utilities and cost of living are all significantly lower, too.

Ball State University economist Michael Hicks said he’s been fielding questions from economists in Michigan and Illinois about the new IEDC campaign. Because each state has a relatively similar geography, population and economy, he said, government policy is one of their key differentiators. And because Indiana’s total cost of business is clearly the lowest, he said Hoosiers would be crazy not to press their advantage.

“I think it’s a nifty idea,” said Hicks, director of the university’s Bureau of Business Research.

“I have to tell you, I’ve gotten many, many calls chuckling about this from my colleagues in Illinois and Michigan.” More here.