Southwestern Indiana update.

• Author: Derk, James S.
• Position: Economic development - Industry Overview

Almost all of the talk about economic development in Southwestern Indiana this year has focused on DFAS.

D-what?

Unless you live around Evansville or Indianapolis, you probably don't know. But the hopes and dreams of a lot of people in this part of the state are hitched to the Defense Finance and Accounting Service--a part of the U.S. Department of Defense--and the chance one could be located in Evansville.

It would mean 4,000 jobs--good ones paying more than $30,000--but the road there has not been easy. Both Evansville and Indianapolis bested hundreds of other cities to become among 20 finalists to get one of five centers. Indianapolis has such an operation now, but is in danger of losing it unless it is one of the sites chosen for a new center.

Evansville leaders surprised everyone with the incentive package they offered--to build, maintain and supply a huge new building for DFAS for 30 years at a cost of $1. Value of the package? $256 million.

But Defense Secretary Les Aspin put a halt to the whole DFAS plan early this year--questioning whether communities should be bidding against one another with taxpayer money to land a government building. Southwestern Indiana counties had banded together to support Evansville's plan and the disappointment was evident. But area leaders still were holding out hope that the process would be allowed to continue later this year.

Meanwhile, Evansville leaders were rejoicing about a decision by Whirlpool Corp. to add more than 1,000 jobs at its local refrigerator plant, boosting employment to more than 5,000. Company spokeswoman Deborah Castrale says the hiring was due to increased sales for the company's products and has resulted in new third-shift assembly line.

Vision 2000, the area's economic-development agency, has turned some of its attention away from DFAS to the prospect of landing a Mercedes-Benz plant. The German automaker is shopping the U.S. for a site, and Southwestern Indiana has made a pitch.

Other prospects that executive director Ken Robinson has been wooing include an auto-parts manufacturing company, a retail outlet mall and a pharmaceutical distribution company.

On the flip side, Bristol-Myers Squibb, which has its nutritional division headquartered in Evansville, had to lay off employees for the first time in its history. About 150 workers were affected from the local work force of 2,500.

In Warrick County, all eyes are on the sprawling Alcoa plant in Yankeetown. The company offered...