Ohio Polymer Brochure


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Consisting of over 2,800 facilities and an output of $49 billion, Ohio’s polymer industry is the nation’s largest.

For companies joining Ohio’s business community, this cluster of potential partners, customers, and suppliers serves as an indicator of the state’s polymer industry assets. With such abundant resources already in place, you’re never alone as a polymer company in Ohio. The direct result is a positive impact on a company's bottom line.

The size of Ohio’s polymer industry and supply chain is supplemented by a skilled polymer workforce of 140,000, one of the most strategic locations in North America, a world-class transportation infrastructure and the lowest state business taxes in the Midwest.

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Ohio Polymer Brochure

  1. 1. Leverage the assets of America’s #1 polymer state. Ted Strickland, Governor Lee Fisher, Lt. Governor
  2. 2. Ohio delivers balance between a thriving business climate and personal fulfillment. Find success in America’s #1 polymer state. A world leader in the field of polymers, Ohio’s polymer industry is the state’s most expansive and important economic sector. From its early roots in tire production and support for the auto industry to supplying today’s growth industries, Ohio has always been the heart of America’s polymer industry. The state’s $49 billion polymer industry ranks number-one nationally with 2,800 facilities and 140,000 workers. Ohio companies are fueling the rapidly growing bioscience and advanced energy industries by producing advanced materials such as medical devices and thin film for solar panels. Between 2006 and 2008, Ohio’s abundant assets lead to the state winning three straight Governor’s Cups as the nation’s top location for capital investment from Site Selection magazine. Within that time period, Ohio gained more than 200 new polymer plants and expansions.
  3. 3. Investment decisions come down to a company’s bottom line and a location’s ability to provide the key components to minimize cost and increase speed to market. Your company will find all of the key elements necessary for success in Ohio. • Become Profitable, Faster Companies joining Ohio’s polymer community will find that all essential assets are already in place, as a result of the state’s high concentration of polymer operations. Thirty-three companies on Fortune magazine’s U.S.-1,000 or Global-500 lists have polymer operations in Ohio, seven of which are global headquarters. • Reduce Operating Costs Ohio has the lowest tax rates in the Midwest and one of the lowest overall nationally, with comprehensive tax reforms passed in 2005. Ohio does not assess taxes on corporate income, personal property, the acquisition of manufacturing machinery and equipment, or out-of-state sales. The result is your company will have more money to invest in what matters: Profitability. • Increase Productivity and Efficiency Ohio’s highly skilled polymer workforce of more than 140,000 is the nation’s largest. This workforce supply minimizes time associated with training, significantly increasing productivity and reducing operating costs. • Low-Cost Access To High-Profit Markets Ohio is within 600 miles of more than 63 percent of all U.S. and Canadian manufacturing facilities. The state’s world-class transportation infrastructure of highways, class 1 rail, airports, and maritime ports get your products to market quickly and efficiently, reducing shipping costs and simplifying just-in- time delivery. • Minimize Research and Development Risk The State and Ohio polymer companies are investing more than $100 million to commercialize new technology. Ohio Third Frontier has awarded more than $40 million in grants to the Ohio polymer industry, while 60 collaborating partners have pledged an additional $70 million. Research can be conducted in partnership with the seven Ohio universities that have polymer research programs, which places best-in-class research at a company’s fingertips. Costs are shared. Risks are minimized. Enjoy a rich, fulfilling personal life. Think of all the things you love most: being with family, sports, culture, recreation and nightlife. Now imagine actually having the time to enjoy these things in a relaxed, unhurried environment. Ohio features uncongested cities, filled with the metropolitan amenities you want and need. Comfortable, affordable housing of all types – urban, suburban, or country – is within a short, low-stress commute. And Ohioans are good neighbors: diverse, friendly, and educated. In Ohio, you can live the way you want without sacrificing anything, personally or professionally. It’s an ideal balance that helps attract the best and brightest people.
  4. 4. Locating to Ohio is more attractive than ever. Ohio’s new tax structure is designed to enable Ohio-based companies to be even more competitive in the global economy. The tax structure has been described as “profit friendly” and for good reason. For most industries, the new tax structure translates into a significant reduction in business tax liability. Working dollars that were previously expensed as taxes can now be redeployed to support capital investment and other company needs. Effective Tax Rates on New Capital Investments • New tax laws reduce operating costs • No tax on inventory or corporate income 6.5% 6.2% 6.2% 5.7% • No tax on investments in machinery and equipment 5.1% • No tax on products sold to customers 4.3% outside of Ohio 3.6% • 21 percent reduction in personal income tax • First $1 million in gross receipts are tax free Five State Illinois Indiana Michigan Minnesota Wisconsin Average Ernst & Young analysis.* Polymers & Chemicals Major State and Local Taxes: * The effective state and local tax rates (taxes divided by before-tax income) on new capital investments are calculated for four selected manufacturing industries (food Ohio & Selected Locations processing, pharmaceuticals, electronic components, and motor vehicles) and three service industries (information services, computer services, and research and Before application of incentives and abatements development). The representative firms are multi-state companies selling primarily in Focus on business tax liability regional, national, and international markets. The included state and local taxes are those imposed directly on a company’s new capital investments (machinery, plant, Dollars in thousands and equipment): corporate income and net worth taxes, property taxes, the sales tax imposed on the purchases of capital equipment and structures, and the Commercial $1,400.0 Activity Tax. The tax parameters for each state are based on the tax features scheduled to be in effect by 2010, the year that Ohio’s tax changes are fully effective. $1,200.0 $1,000.0 Financial incentives improve $800.0 your bottom line and return $600.0 on investment. $400.0 DOWN 70 % • Refundable Job Creation Tax Credit $200.0 • Real property tax abatements $0.0 BEFORE AFTER IL IN WI MN MI • Below-prime financing for fixed Tax Reform Tax Reform asset investments The example provided reflects 2007 tax law for the comparison states. When city data was required, the following city data was referenced: Monroe, Ohio; Springfield, Illinois; • Infrastructure grants Indianapolis, Indiana; Eau Claire, Wisconsin; Rochester, Minnesota; and Ann Arbor, Michigan. The specific impact of Ohio’s new tax reform varies by industry. To receive a customized analysis for a specific investment project, contact the Office of Business Development at the • Sales tax exemptions Ohio Department of Development at 1-877-466-4551. Source: http://www.ohiomeansbusiness.com/year2tax_report/ • Research and development investment tax credits • Research and commercialization grants • Certified, shovel-ready sites Please visit www.OhioInSite.com for more information on Ohio companies, workforce, and real estate. Matt McQuade (614) 857-0900 Extension 231 Ted Strickland, Governor www.OhioMeansBusiness.com Lee Fisher, Lt. Governor