Go-Go in Ohio

As recently as 1962, Ohio qualified as one of the less industrious of the nation's industrial states. Beset by an $83 million budget deficit, a dearth of new business, and a 25% drop in employment during the previous six years, Ohio set out to do something about its sluggish economy. Since then, no other state has wooed industry with quite as much ardor--or success. Last year Ohio lured an estimated $2.1 billion in new industrial investment, the best such performance ever by any state.

The turnabout reflects Ohio's unique natural assets for taking full advantage of the expansion fever that has gripped U.S. business. Strategically situated within a 500-mile reach of 67% of the nation's population, 72% of its purchasing power, and 78% of its manufacturing, Ohio is blessed with excellent transportation facilities, generally amicable labor relations, and some of the lowest utility rates of any state. Just as important, Republican Governor James A. Rhodes's administration has painstakingly projected the image of a state where "profit is not a dirty word."

Blitz Trips. Rhodes, 57, who won office in 1962 by pledging to put the budget in shape, levy no new taxes, and expand employment, is a man obsessed with what jobs mean. As he sees it, unemployment is the root of most social ills and thus is the paramount political issue. Last fall, running for a second four-year term, the Governor plastered the state with two-word stickers: "Rhodes--Jobs." This week, when he is sworn in after a smashing re-election win, he can point to a remarkable record. During his tenure Ohio has added 330,000 jobs, and its unemployment rate has fallen from 5.7% to about 3%.

To create a climate conducive to business investment, Rhodes took the political risk of sharply paring state expenditures, has kept Ohio one of only ten states with neither a statewide corporate nor a personal income tax. Constantly on the phone to out-of-state executives, the Governor has also worked to get existing Ohio companies to expand, attended 800 "industry appreciation" dinners in all parts of the state. Unlike most governors, Rhodes did not complain when the Federal Government closed local installations, instead welcomed the challenge of getting private industry to take over abandoned sites.

Sharing Rhodes's enthusiasm is the four-year-old Ohio Development Department, which serves as a clearinghouse for the state's available plant sites, providing what Director F. P. Neuenschwander calls "one-stop service." Making industry-hunting "blitz trips" to other states with hardsell efficiency, the department shuns the routine of banquets and press conferences on the theory that businessmen are best approached in their own offices. In fact, "Rhodes's raiders" like to show up without appointments. Explains Deputy Director Patterson: "It doesn't give them an opportunity to tell you not to come."

Inkling of Interest. Ohio's go-getters have seen their efforts pay off. In 1962, only 542 Ohio plants expanded their facilities, and 91 new companies moved into the state. In 1964, those figures jumped to 2,017 and 452; last year, to 2,550 and 560. Rhodes has had a hand in much of the new activity. After General Mills decided to open a plant in Lancaster, Ohio, the Governor characteristically called up the company, says Vice President William Haun, "and assured us the state would do anything it could to help us handle any problems." By lining up local financing, he got Akron-based Goodyear Tire & Rubber to put a new plant in Logan, Ohio, instead of in Michigan. Similarly, when Radio Corporation of America decided to close down its Cambridge, Ohio plant, Rhodes and his development team got an inkling of interest from Dayton-based National Cash Register. "Within hours," recalls the company's vice-president for manufacturing Daniel Hughes, "they had a man here with a state plane to fly us to Cambridge." National Cash Register took over the plant.

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