Report: Hoosier Firms Hold Off on Expansion
The managing director of an economic development firm believes many Indiana companies are holding back on expansion plans until a clear direction comes out of Washington.
According to a report by Inside INdiana Business, Ginovus Managing Director Larry Gigerich says many of his company’s clients plan to “tred water” for the next 15 months, unless the federal government gets a handle on spending and concerns about the tax code. He says there was plenty of economic activity roughly one year ago in the state, but the brakes hit this past spring.
Gigerich says several factors have gone into the slowing of economic development deals including the debt ceiling debate and global factors including softening of some European economies the earthquake and tsunami in Japan.
Even though Indiana continues to hold its own in several national rankings, he says there is clearly a slowdown in the state and the rest of the country.
Gigerich says the Hoosier state has benefited from this year’s hike in corporate and personal income taxes in Illinois. Some companies have moved across the state line and those of those that stayed did so because Illinois ended up writing “huge checks.”