Anderson.

• Author: COLE, STACY
• Position: Economic development in Anderson, Indiana - Brief Article

Anderson has been in the midst of a transition from the perception of a General Motors town to re-identification as a leader in electrical engineering and manufacturing.

"We have had positive growth with regard to business and commercial development within our community. We are not going to be complacent in our attitude--and we are happy with what we have--but we need to work a little harder," says Mayor J. Mark Lawler.

At the peak of General Motors' presence in the community, more than 22,000 people were employed by the company, says Steve Fultz, executive director for economic development for the city of Anderson. Currently, there are three people left working directly for GM. Many companies, including the city's major employers today, were once a part of General Motors. Delphi Automotive Systems and Guide Corp.--former GM subsidiaries and the city's two largest employers at 3,500 and 2,675 respectively--now operate independently within Anderson.

Delphi specializes in the production of batteries and ignition generators and Guide makes automotive lighting equipment, mirrors and light controls. Guide recently built a new headquarters in Anderson.

Delco Remy America Inc., also a GM subsidiary until 1994 and now a separate public company, has shown strong growth and community involvement, due in part to the fact that its world headquarters sits in Anderson. Delco Remy, employing just over 1,000, produces electrical, powertrain/drivetrain components in vehicles, and still does business with GM. Magnequench International, another major local manufacturer that once was part of GM, employs 310 and produces magnets for automobile starters.

Since GM began its gradual downsizing in the 1970s, the city has seen a loss in wages of more than $10 billion. Industrial output has dropped more than $43 billion and the lost tax revenue in that time totals more than $156 million. In the 1970s there were more than 70,000 people in the community, while the 2000 census showed 59,734 residents. Many have wondered how Anderson could withstand such a loss, says Fultz.

Leaders in the community have been working with GM to design various aspects of its exit package. One part of this package is the plan for a business-development center, which will be located immediately off Interstate 69. GM will pay half of the project's $6 million cost.

The plan for the center is threefold. First is primarily post-secondary education in cooperation with Anderson University, Purdue...