J.R. Childress is up before the sun, bustling about in the French colonial brick house he built.FORT WAYNE – An election half a world away could spark job creation in northeast Indiana, area officials say.
Japanese voters this week ousted the country’s incumbent administration, which ruled Japan for about 50 years. The Democratic Party of Japan won the election by invoking President Obama’s call for change from almost a year ago.
“We expect for something to change for the better,” said Toyoharu Tamura, vice president of the Fort Wayne-Allen County Economic Development Alliance.
By improving Japan’s economy and lowering unemployment there, the new leaders will likely fuel demand for U.S. imports, he said. Even if the U.S. hasn’t climbed out of its recession, northeast Indiana employers could end up adding jobs to meet growing Japanese demand.
Indiana has forged significant economic ties to Japan. More than 200 Japanese companies employ more than 42,000 Hoosiers.
Tamura is one of 50 state and regional officials leaving this week on a 12-day trade mission to Japan and China.
He will travel to Japan with Mayor Tom Henry to celebrate sister city Takaoka’s 400th anniversary. Tamura then will meet up with Gov. Mitch Daniels’ delegation in Tokyo, accompanying him on the second half of the trip.
Ola DeGabriele, Fort Wayne’s international trade manager, agrees with Tamura’s reasoning.
Two specific proposals should put more money in Japanese consumers’ pockets, she said. One is a plan to reduce government spending and bureaucracy. The other is a social program that would help the poor.
As the Japanese economy rebounds, more U.S. companies could gain export opportunities there, DeGabriele said. She expects Japan will continue policies that protect farmers by keeping out lower-price agricultural imports, especially rice.
But DeGabriele thinks protectionism could ease as it applies to industrial and other goods.
“Overall, it looks very good,” she said.
John Sampson, president and CEO of the Northeast Indiana Regional Partnership, will be traveling to Japan with Daniels.
Although Sampson wants short-term results, he keeps a long-term focus. His goal is to foster long-term relationships that survive regardless of which political party – or chief executive – is in power.
“These things unfold over time,” he said of potential policy changes.
Gary Nielander, executive director of the Steuben County Economic Development Corp., is a pro at trade missions. He has traveled to Japan 14 times.
It’s early to say which of the country’s policies and regulations might change because “a lot is unknown about the group that’s coming in,” he said.
Some people are worried the new administration won’t be as business-friendly as the previous one, Nielander said.
But, he said, the push for change could result in innovative investment programs that help northeast Indiana communities.
Nielander, who has more than 30 years’ experience in economic development, knows a U.S. recovery is bound to come, whether or not it is sparked by a Japanese recovery.
“Eventually, people will start buying again,” he said. “I’m seeing some glimmers on the horizon.”
