(Bloomberg) -- Indiana Governor Eric Holcomb is banking on overseas partners in his push to grab more of the US boom in manufacturing investment.
Foreign companies already accounted for more than 70% of Indiana’s record $29 billion in capital commitments last year, and they’re poised to play an even bigger role this year. One of the latest examples is the Australian company Rux Energy, which is working on hydrogen storage and holding talks to invest in the state, Holcomb said.
“We’re very excited about why we came here,” the governor said in an interview during a trip to Singapore and Australia. “In terms of semiconductors, chip manufacturing, the future of energy sources, all those reasons and discussions that were underway and that led us here have really expanded since we’ve been on Australian or Singaporean soil.”
Holcomb, a Republican, is trying to build on Indiana’s success in tapping a surge in US investment spurred by federal legislation that President Joe Biden says will promote a resurgence in domestic manufacturing. Capital commitments in the Hoosier State have more than tripled compared with typical pre-pandemic levels, and Indiana has been outpacing nearby states like Illinois and Wisconsin.
Indiana has been looking to entice advanced manufacturing businesses, biotechnology, aviation and renewable energy. Investment is up from just $8.8 billion three years ago, and $5.6 billion at the height of the global pandemic in 2020, according to data from the Indiana Economic Development Corporation.
Capital commitments reached $27.1 billion just in the first six months of 2024. Swiss pharma giant Novartis AG officially opened a new radioligand therapy manufacturing facility in Indianapolis in April. That same month, South Korean chips maker SK hynix Inc. announced an investment of almost $3.9 billion to build a new facility in the state.
Indiana, which last year won $1 billion in federal funds to create a Midwest Hydrogen Hub, now wants to bring Rux on board. The company, which uses nanomaterial technology to try to find ways to store hydrogen, has received funding from the governments of Australia, New South Wales and the UK.
“We met them on American soil now we’ve met them on their soil,” Holcomb said. “Those conversations are continuing, and we’re excited about potential work that we can do together.”
Holcomb is positioning Indiana as a hub for new technologies including life sciences, electric vehicles and renewable energy. The second-term governor and his state have been a major beneficiary of federal funds from the Bipartisan Infrastructure Law, the Inflation Reduction Act and the CHIPS and Science Act — all enacted under Biden since late 2021.
But the US presidential election could change the outlook for Indiana. Former President Donald Trump, the Republican nominee, has pledged to give the traditional oil industry a boost with his “drill, baby drill” slogan and repeal the Inflation Reduction Act, which promotes investments in clean energy. When questioned about the risks for the state, Holcomb, who will leave office in January, said it was something for his successor to deal with.
“The federal government may have programs and frameworks, alliances that are put into place that channel what states can and can’t do,” he said. “We may agree or disagree with those, but at the end of the day, for a state like Indiana, if there’s a program in place I’m going to go after it.”
If Indiana doesn’t chase those dollars, “that would only mean that my competition — neighboring states, as an example — would get my fair share,” he said.
This was Holcomb’s 24th economic development trip overseas trip as governor. In June, he also embarked on economic development trip to Belgium, France and the Netherlands. He also visited countries including Brazil, Mexico and Canada in 2024.
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