For years, this region of Indiana has been defined by its place along the Ohio River in the heart of America’s farm land. The legacy industries of agriculture and traditional manufacturing have been the driving force of the region’s economy, providing many generations of Hoosiers with a stable and comfortable living.

For over a hundred years, the strength of this region and the entire U.S. economy was built on our work-ethic, or what could easily be defined as Midwestern values: strong dependability, a can-do attitude, and the application of American ingenuity and know-how to make a good product better.

But as the last century came to a close, the world began to flatten and we found ourselves a little closer to our neighbors overseas. As the world continued to be transformed by innovation, we knew early on that this century would look far different from the last. Innovation gave way to better communications, a better ability to conduct business abroad, and as a result, a world-wide competition for jobs.

We, of course, welcome these competitors into the global economy. Through a broad commitment to free trade among nations, we have opened opportunity to billions of people and spurred tremendous growth in the world economy. We have also had the opportunity to showcase the quality of our workforce to the rest of the world. It has not gone unnoticed.

Foreign companies now see the benefit of locating their operations in the United States. The textbook example, of course, is Toyota. I had the tremendous opportunity yesterday to visit the assembly plant right here in Southwest Indiana. It is one of a network of Toyota operations here in the U.S., ranging from its engine production facility in Alabama, to the Tundra assembly plant in San Antonio, to the just recently announced new facility they will be building in Mississippi.

While we certainly welcome the investment by foreign companies and are proud of the commitment made by Toyota to American manufacturing, we also have a duty to establish the conditions that encourage American business to flourish and create the high skill, high wage jobs that will define America’s role in the global economy.

Before we begin to create the conditions necessary to produce these jobs though, we must first recognize the existence of three truths guiding us in today’s global economy. These truths have challenged the traditional models and approaches that both public and private sector organizations have used to support and sustain economic growth.

The first truth is regionalism. Cities, counties, and municipalities that were traditionally able to determine their own economic fate now find their destiny is linked to those that share their regional economy. Though Evansville is the largest city, Southwest Indiana is characterized by its region-wide commuting patterns and distributed asset base, making this entire 9 county area a natural regional economy where collaboration and consensus are critical in achieving and maintaining economic success. Again, Toyota offers a strong example where a plant in Gibson County benefits the entire region.

The second truth, which stems from regionalism, is the need for a broad-based regional partnership. Entities within a region can be best utilized when working together in support of a unified economic strategy. By collaborating, local governments, workforce investment boards, educational institutions at all levels, and regional economic development organizations can more efficiently leverage their resources to attract and retain new businesses

But partnerships aren’t limited to public entities. In addition to the billions invested annually from federal, state, and municipal governments, regions should seek the support of private enterprise to further the region’s economic strategy. Major national and regional foundations are investing large sums in regional economic development, and private equity in the form of venture and seed capital are critical to the success of individuals and businesses.

I am excited about the broad-based partnership that I see here today. It shows a true commitment from the leadership of this region to its economic success. Your continued participation is going to be critical to the overall success of the region because many of you are responsible for the third truth coming from globalization. And that is that an individual’s success in this economy is defined by the skills that he or she possesses. And those skills can only be obtained through a quality education.

Not that long ago, a high school education virtually guaranteed a job good enough to finance a home, raise a family, and save for retirement. This is no longer the case. In today’s economy, 90 percent of the fastest growing jobs and 63 percent of all new jobs will require a post secondary education.

A closer look at the numbers reveals that three-quarters of those fastest growing jobs require not just post-secondary education, but a college degree. And two-thirds of the high-wage, high-growth jobs will require a full Bachelor’s Degree. These statistics are a sea change compared to the requirements nearly a generation ago, when post-secondary education was a luxury. Today, it is a necessity.

Through globalization, the substance of what we are required to learn has changed, too. Countries whose students perform well in math and science see the fruits of that labor in terms of stronger economic growth, which is why so much emphasis is now placed on the STEM skills – skills in Science, Technology, Engineering, and Mathematics. Much of President Bush’s Competitiveness Agenda focuses on the development of skills in math and science in our K-12 school systems. Without this foundation, students cannot advance into the engineering and technology fields that are defining our innovation economy.

While this clearly impacts the younger generation as they look to build their future, it also affects the current workforce. Many workers across this region were trained for jobs or industries that have transformed. The skills they learned are no longer in demand in today’s economy.