Indiana Recent News – Page 2 – Swanson Reed

Continental To Invest $4M in Indiana R&D Operations

German vehicle technology company, Continental, will be expanding its R&D operations in Indiana. The company will invest over $4 million in its ContiTech Vibration Control business unit.

ContiTech develops products to optimize in-car vibration and noise levels. It also designs sealing systems for applications in chassis, brakes and steering.

Continental says the 100,000 square foot facility in DeKalb County will support technologies that reduce noise vibrations for the automotive and commercial industries. They hope to produce over 45 new jobs by the end of 2023 and be completely set up in the building by the end of 2024.

The Indiana Economic Development Corporation (IEDC) have offered Continental up to $650,000 in conditional tax credits dependant on job creation.

Jim Schellinger, Indiana Secretary of Commerce, said that “Continental’s decision to expand in DeKalb County continues a long-standing trend of German companies picking Indiana for growth.” Around 120 German-based companies have facilities in Indiana, employing over 15,100 workers.

Metal Powder Products Beefs Up Its Indiana Operations

According to a report released by Indiana Economic Development Corporation (IDEC), Metal Powder Products (MPP), a global provider of custom-engineered powder metallurgy product solutions, has decided to relocate its operation from Solon, Ohio, to a new facility in Hamilton, Indiana by 2020, creating around 80 jobs in the process.

The Noblesville-based metal parts manufacturer currently employs more than 350 associates in its Washington and Noblesville County Operations, and more than 1,100 overall in China and the United States.

According to the release, MPP has already employed 51 individuals as part of this transition and is planning on adding 29 more over the next two years. They (MPP) are currently hiring for expert labor positions. In fact, they expect the new Indiana division to be fully operational this Spring.

“We are very excited with regard to the move to Noblesville, and the state of Indiana and city of Noblesville have been exceptionally helpful during this process,” said Dennis McKeen, Chief Executive Officer of MPP. “MPP sees a very bright future for our MIM operations with very rapid growth.”

MPP will invest $1.5 million to re-purpose a 60,000 square foot facility at 14670 Cumberland Road and acquire new equipment.

When the site is ready, MPP plans on using it as its Metal Injection Molding (MIM) manufacturing division. 40,000 square foot of the facility will be utilized for manufacturing whereas the remaining 20,000 square foot will become space for offices and Research & Development (R&D) activities.

“Indiana has a strong reputation for making products that power our world, and we’re also developing new solutions and advancing innovative technologies that are driving industries forward,” said Elaine Bedel, president of the Indiana Economic Development Corporation (IEDC). “With a fiscally-sound, pro-growth business climate and talented workforce, global businesses like MPP have the confidence to expand their capabilities here and create new, skilled jobs for Hoosiers.”

In 2018, the IEDC offered MPP up to $600,000 in training grants and conditional tax credits based on the firm’s job creation strategies. Duke Energy and the city of Noblesville have offered MPP incentives as well.

Chicago and Indiana Among the Fastest Growing Life Sciences Clusters

In an industrial sector defined mostly by innovation, life sciences research remains a high expense, high-risk scheme – and having a great location strategy is a vital success factor.

According to Deloitte’s 2019 Global Life Sciences Outlook, rising research and development (R&D) costs, operating costs, competitive wages for top talents, and skyrocketing lab rent payment in top tier clusters are driving life science firms to newfangled and creative real estate strategies so they can remain near resources and top talent.

Competitive and expensive real estate markets are forcing life sciences firms to think twice when assessing their real estate preferences. For the most highly in-demand locations, fierce competition for talent and space is resulting in both creative renovations and new development of first generation space.

But not every need for life sciences laboratory space can be met in larger and more established clusters such as San Diego, Boston-Cambridge, or Raleigh Durham. As these cities face a scarcity of laboratory space and other life sciences real estate, companies looking for alternative options are discovering second-rank markets such as Chicago, Indiana, Seattle, and Denver. Even though established United States clusters are located on either coast, emerging clusters are showing that life science companies are growing and taking root in the middle of the nation.

Midwest cities such as Indiana are showing sufficient growth to rank as emerging clusters. Indiana’s pharmaceutical and medical device industries have shown steady growth since 2014 and was ranked in the top 10 states for bio-science patent distributions in 2016. According to TEConomy 2018 research on Investment, Innovation, and Job Creation in the Bioscience Industry, Indiana boasted the highest location quotient for drugs and pharmaceuticals compared to all other US states. This implies there is a high employment concentration in the industry in this city relative to the rest of the nation.

Illinois, chiefly the Chicago region, is now home to several top research institutions and universities, and also boasts the headquarters of big firms such as Hospira, Baxter International and Abbot Laboratories.

The Windy City also received favorable attention in February 2018 when CBRE (the commercial real estate giant) pointed out the city’s emergence as a noteworthy life sciences cluster. And even though the region ranks tenth in NIH funding with awards totaling around $688.2 million, it placed ninth in lab space (8.8 million square feet), patents (1246), and VC funding ($332.21 million from nine deals).

Over the next few years, we can expect these city’s commercial real estate sector to be the main beneficiaries of the booming life sciences sector.

R&D Expenditure By Research Universities Helps Drive the Economy

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R&D by universities can help solve global challenges through a collaborative, world-class research environment. R&D is of key importance for Indiana’s economy, with the state’s three largest research universities contributing directly and indirectly to all 92 counties. Indiana University, Purdue University and the University of Notre Dame are all ranked in the top 150 universities according to the Times World University Rankings. Together, they produce annual research expenditures of approximately $1.3 billion. This spending drives the economy forward and is necessary for developing advanced technology-based economies, which results in high-paying jobs. Jobs created from R&D activity include those for both university and contracted employees as well as jobs being sustained indirectly. Many US states are beginning to create economic strategies that are partially focused around their universities R&D capabilities.

Of course, Indiana’s private company R&D is also an enormous contributor to the state, with expenditure making up around $6.2 billion p.a. According to the National Science Foundation, the state ranks 17th in the US for overall R&D expenditure, 16th for research funding at public universities, 17th for research funding at private universities and 15th for industry R&D spend.

Indiana research and development facility creates over 100 jobs

Faurecia Clean Mobility, one of the world’s largest automotive equipment suppliers, announced plans to open a new research and development production facility in Fort Wayne, Indiana.

The opening of this new facility will create over 100 jobs and provide local job seekers, within the automotive productions industry, with some fantastic opportunities.

An initial investment of $4 million will be made in order to begin operations at the 137,500 square foot facility. Fort Wayne’s Mayor, Tom Henry, said this investment is an outcome of the city’s strategy to remain and attract quality employees in Indiana.

As leading companies in innovation, such as Faurecia, continue to become established and develop their R&D focus in Indiana, the state is able to leverage significant competitive advantage. This highlights the importance of companies approaching business practices from an innovative and unique angle, such as engaging in R&D initiatives.

Innovation and research forms the backbone of Faurecia’s activities from the birth of an idea to the final validation of the concept. The role of Faurecia’s R&D organization is to anticipate the needs of the global automotive market and drive progress. Faurecia currently relies on the network of 30 R&D centers, which employ 6,000 engineers and technicians in 11 countries. This pinpoints the overall impact that engaging in R&D can have on an organization, as it not only affects company developments, however, also facilitates significant employment opportunities.

Faurecia is reliant on its R&D facilities worldwide, in order to be more in touch with the needs of various automotive markets, particularly in growth regions. R&D has allowed Faurecia to advance expertise, form effective collaborations and partnerships, extend the company’s network, and allow it to produce and release groundbreaking and state of the art products.

To determine whether your company is eligible for the R&D Tax Credit and could potentially achieve similar successes from incorporating R&D in its business practices, contact one of Swanson Reed’s R&D tax specialists today.

Battery powered motorcyle set to make new record

Hatfield will be collaborating with the Battery Innovation Center in Indiana, who will provide the cutting-edge technology required to turn achieve the long distance ride. The goal is going to be a tough one, when taking into consideration the longest electric vehicle range among commercially available motorcycles and cars is only 315 miles, a record that currently belongs to Tesla. Hatfield, however, thinks it is achievable, despite no gasoline bike currently being able to travel more than 320 miles on a single tank.

“We see ourselves as following in the footsteps of Tesla, and accomplishing the San Francisco-to-Los Angeles run would show that range anxiety is becoming a thing of the past,” he said.

Hatfield turned to the Battery Innovation Center in Indiana after liaising with its president, David Roberts. The center is a nonprofit that works with industry leaders, universities and government agencies to rapidly develop, test and commercialize batteries and storage systems that are safe, reliable and lightweight. The center, established in 2013, works out of a 36,000 square-foot purpose-built facility in the town of Newberry. Its partners and nonprofit members are varied and include the State of Indiana, the Japanese technology giant NEC and Duke Energy, one of the largest energy providers in the United States.

“We work with companies like Lightning to pair them with cutting edge energy storage makers to make things like the 500-mile ride possible,” Roberts said. “We think that with the technology as it stands, right now, the ride is entirely achievable.”

R&D Investments in Indiana Prove to be Rewarding

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There is some good news for the Crossroads of America. Ball State University’s Center for Business and Economic Research (CBER) says that federal and state technology based research and development efforts have been beneficial to Indiana’s economy.

Studies That Show Results

The first study performed by the CBER analyzed activity from 2010 through 2014. During the span of these four years, $27 million was granted to 74 Indianan organizations through a variety of well-known programs. The results indicate that investments contributed to the creation of 323 jobs, an $18 million growth in GDP, and $16 million rise in personal income.

The second study examined firms that were either awarded or rejected assistance by the 21st Century Fund. Results indicate that average annual wages, sales, and productivity all increased for those who received support. As a result, it was recommended to continue the program through 2020.

Overall Positive Impact

Hoosier tech companies have seen a “significant positive impact” according to CBER Research Assistant Professor, Srikant Devaraj. He goes onto add, “More importantly, these organizations are leveraging the funds they receive from Indiana to acquire loans and investments from banks and other venture capitalists. Receiving a grant from one of the funds is seen as a stamp of approval by outside groups. This certainly helps these companies expand.”

Indiana’s Marion and Hamilton Counties received approximately 75% of the total funding from various sources such as Indiana’s 21st Century Research and Technology Fund, the Indiana Angel Network and Indianan High-Growth Fund, and the Small Business Innovation Research and Small Business Technology Transfer programs. Furthermore, they received aid from the U.S. Department of Energy’s Office of Science.

Overall, a rise in job totals, GDP, and personal income levels prove that Indiana has benefited from the boost in technology-related R&D.

To discuss all the facets of the research and development tax claim process, contact one of Swanson Reed’s R&D tax specialists today.