June 28, 2006

Honda set to award plant to Indiana

The Indianapolis Star is reporting that Japanese automaker Honda today will announce it has chosen a Greensburg site for a car assembly plant that would employ 1,500 workers and could launch an economic boom in the state's hard-pressed southeastern corner. Honda will reveal the plant's location this morning at a news conference in Greensburg, according to a source familiar with the deal who asked not be identified. The source wasn't authorized to discuss the matter.

What does this mean for Rising Sun and Ohio County? Greensburg is about a one hour drive from Rising Sun. This is within range for potential manufacturing plants for suppliers to the new facility. Honda, which pays workers about $24 an hour at its massive 11,000-employee car complex in west-central Ohio, is thought to be reluctant to expand in Ohio and draw workers already employed by its vast network of suppliers.
By bringing high wages to a "faded" farming and industrial region in Indiana, Honda could assure itself of being able to hand-pick workers.

A Honda plant could very well lead to a regional hiring boom, crank up orders for the company's more than three dozen suppliers in the region and begin to bid up wages. The typical employee in the Greensburg area earns about $15 an hour, compared to the statewide average of $19 an hour. Rising Sun and Ohio County need to be prepared for this huge impact on the regional economy. We need to be able to provide potential new businesses with shovel ready sites and improve our workforce status. The Chamber will keep you up to date on these new developments.

Congratulation Greensburg and here we go.

Thanks to Government Relations Co-Chair Dill Dorrell for the news tip.

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