Wednesday, December 15, 2004

Columbus, IN—Why a Japanese Manufacturing Hotbed?

Yesterday I wrote about the large concentration of foreign manufacturers in Indiana. Japan with 188 companies in Indiana leads the pack, with almost 10% of those in the town of Columbus. How did this top 100 agurb® achieve this percentage when they have less than 1% of the population in the state?

Larry Ingraham, who runs an economic development company focused upon Japan told me, “One of the reasons there are 15 Japanese companies located today in Columbus is that the former mayor, Bob Stewart, made 17 trips to Japan during his 12 years in office. During the 8 years Governor Evan Bayh was in office in Indiana he never went overseas and he did his best to avoid being seen with Japanese or other foreign investment. However, during this period of the Governor's "absence", Bob Stewart of Columbus was the most well known Indiana politician in Japan, and it was his personal leadership and direct appeals to Japanese executives that contributed to all of those Japanese firms selecting Columbus as their U.S. location.”

He also related to me the story of how DIAMET, a Japanese Company that manufacturers automotive parts from powdered metal, had an announcement ceremony in Columbus in the late 80s. One of those present was the president of Mitsubishi Materials USA. He developed an eye problem during the ceremonies and was diagnosed with a detached retina. J. Irwin Miller, who I wrote of in my book, arranged for his jet to take him to the best eye doctor at the Mayo Clinic that afternoon.

Ingraham told me, “The Japanese President (and his company!) was extremely grateful to Mr. Miller and to Columbus for this special arrangement that had been made for him in his time of need. This story was then told by the Mitsubishi Materials officials to other Japanese companies and helped to paint a most favorable image of the Columbus community which resulted in more Japanese companies visiting there to see for themselves what was so special about the city. I was there that day at the Mitsubishi Materials announcement for Diamet and I will always remember what Mr. Miller did for that man.”

Little acts of kindness and respect can have huge long term benefits for the agurbs® that have figured out what it takes to succeed.

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