State of Indiana Economic Profile

Background

Indiana, located in the Midwest region of the United States, boasts a diverse and robust economy. The state's economic landscape is characterized by a strong manufacturing base, a thriving agricultural sector, and a growing presence in healthcare and technology industries. Indiana's strategic location, skilled workforce, and business-friendly environment have positioned it as a key player in the national economy.

Key Industries

Manufacturing

Manufacturing is the cornerstone of Indiana's economy, contributing significantly to the state's Gross Domestic Product (GDP). In 2023, the manufacturing sector generated approximately $110.7 billion, accounting for a substantial portion of the state's total economic output. Indiana ranks sixth in the nation for manufacturing output and leads in per capita manufacturing GDP. The state is home to major manufacturing companies, including:

• Eli Lilly and Company: A global pharmaceutical leader headquartered in Indianapolis.

• Toyota Motor Manufacturing, Indiana, Inc.: An automotive manufacturing plant located in Princeton.

• Subaru of Indiana Automotive, Inc.: An automotive manufacturing facility in Lafayette.

• Cummins Inc.: A global leader in diesel engine manufacturing based in Columbus.

• Steel Dynamics, Inc.: One of the largest steel producers in the U.S., headquartered in Fort Wayne.

These companies, among others, contribute significantly to employment and economic growth in the state.

Agriculture

Agriculture plays a vital role in Indiana's economy, with the state being a leading producer of soybeans, corn, and pork. In 2022, Indiana's agricultural exports totaled $7.4 billion, ranking it as the seventh-largest agricultural exporting state in the nation. The state's fertile soil and favorable climate conditions support a diverse range of agricultural activities, including crop production, livestock farming, and food processing.

Healthcare and Life Sciences

Indiana has a strong healthcare and life sciences industry, with companies like Roche Diagnostics, Cook Medical, and Indiana University Health leading the way. The state is also known for its research institutions and medical device manufacturing, which drive economic growth and innovation in the sector.

Technology

The technology sector in Indiana is experiencing significant growth, contributing to innovation and economic diversification. The state has seen a rise in tech startups and established companies expanding their operations, particularly in Indianapolis. Initiatives like the inaugural Women IN Tech Week in 2024 aim to address the underrepresentation of women in the tech industry and foster a more inclusive environment.

Economic Performance

Indiana's economy has demonstrated resilience and growth in recent years. In 2023, the state's real GDP reached $404.3 billion, marking a 1.3% increase from the previous year. The per capita GDP was $58,762, positioning Indiana 30th among U.S. states. The manufacturing sector remains the largest contributor to the state's GDP, followed by real estate, rental, and leasing, and professional and business services.

Trade and Exports

International trade is a significant component of Indiana's economy. In 2024, the state exported a record $59.9 billion in goods, with top export destinations including Canada, Mexico, Italy, China, and Germany. The manufacturing sector, particularly chemicals and transportation equipment, dominates the state's export profile. Additionally, foreign direct investment plays a crucial role, with 37 foreign-owned businesses committing to invest more than $20.6 billion in Indiana in 2023.

Workforce and Employment

Indiana's labor market is characterized by a strong manufacturing workforce, with over 528,000 Hoosiers employed in the sector. The state has also seen growth in healthcare, technology, and logistics employment. However, challenges remain, including a skills gap in certain industries and a need for workforce development initiatives to meet the demands of a changing economy.

Economic Development Initiatives

The Indiana Economic Development Corporation (IEDC) has been instrumental in driving the state's economic growth. In 2023, the IEDC secured commitments from 208 companies to invest more than $28.7 billion in Indiana, creating over 21,000 new jobs with an average wage of $36.07 per hour. The state has also prioritized site development efforts, ensuring competitive sites are available for new investments.

Challenges and Future Outlook

While Indiana's economy is strong, it faces challenges such as a projected slowdown in revenue growth and the need to balance increasing Medicaid costs with other budget priorities. Additionally, the state must address workforce development to meet the demands of emerging industries and ensure sustainable economic growth. Despite these challenges, Indiana's strategic initiatives and diverse economic base position it well for future prosperity.

Contact Information

For more information on Indiana's economic development initiatives and opportunities, please visit the Indiana Economic Development Corporation's website.