Tech firm bringing 400 jobs to Kokomo

KOKOMO, Ind. (WISH) - New jobs are coming to Kokomo.

Wednesday morning, Governor Mitch Daniels joined with executives from an information technology firm and announced plans to create 400 jobs in the city over the next three years.

The company is called Zuna Infotech. Company executives say Zuna will offer comprehensive services in product engineering, IT Services, and custom research in focus areas such as security, healthcare, and technical support. These services are often outsourced to companies that set up in foreign countries.

Chief Operating Officer Jim Harter said the company chose Kokomo as its headquarters after looking at several different cities in several different states.

Harter cited a number of reasons for choosing Kokomo. They included local and state incentives, the presence of a highly trained workforce, and higher education opportunities for future employees through Ivy Tech and the State’s university system.

“We’re making our investment of time, money, effort and commitment to the community. We want to make sure we return your investment and your confidence in Zuna to be able to do that,” said Harter.

City and state economic development leaders worked hard to get Zuna Infotech to set up in Kokomo.

According to the Indiana Economic Development Corporation, Zuna is accepting the IEDC’s offer of up to $1.16 million in performance-based tax credits and up to $145,000 in training grants based on Zuna’s job creation plans.

Zuna is also accepting the Greater Kokomo Economic Development Alliance’s coordinated support from the city of Kokomo and Howard County, which will provide local incentives totaling more than $500,000, including local training grants for new employees, tax incentives and relocation support based on new employment.

Mayor Greg Goodnight explained the incentives are the price of attracting new business.

“It’s very competitive out there. We have to make sure we can compete. I don’t think we have to go above and beyond what we have to do is make our city attractive for employees and employers,” said Goodnight.

During the jobs announcement, Governor Mitch Daniels told the audience he was particularly pleased to see a new industry locate to Kokomo.

“We all know that we cannot be so dependent anymore on any one sector so it’s really important to note the nature of these jobs. High tech, service oriented,” said Gov. Daniels.

Zuna Infotech’s business plan calls for hiring up to 50 people by the end of 2010 and 400 people by the end of 2013.

The company said the average wage will be in the range of $23-$24 an hour.

After the announcement, Governor Daniels headed to Huntington, Indiana for a second jobs announcement.

He said BBQ Grill maker, Onward Manufacturing Company out of Ontario Canada, plans to create 300 new jobs by 2011.

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Last month, Kokomo's jobless rate fell to 11.6%. That's higher than the state's 9.2%.

A study from the IU Kelley School of Business illustrates those statistics are a nearly decade long trend.

Kokomo's unemployment rates were below Indiana's in the late 90's, before pulling even in 2000 and then arcing higher than the state's rate.

Indiana's unemployment rate followed roughly the same path, but not at the levels Kokomo has seen.

Job opportunities have been declining in Kokomo over the past decade.

Kokomo and Howard County are still very dependent on auto manufacturing.

Delphi and Chrysler make up more than 20% of Kokomo's total employment.