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Manufacturing and Logistics Important for Crafting Indiana’s Future Economy

Posted 8:37 PM by

In the first of what will be 14 different studies on the economic environment of Indiana, the Center for Business and Economic Research (CBER) this summer analyzed active Indiana industries’ historical growth and future potential with the goal of determining a strategy for long-term economic growth in Indiana.

The study, “Key Economic Sectors in Indiana: State Overview,” emphasizes that Indiana needs to focus on identifying a core set of businesses and emerging industries to craft its legislative policies and business environment rather than attempt a broader approach of appealing to all potential industries.

The authors analyzed “footloose employment,” jobs that can move from place to place freely due to few ties to a specific consumer base. The study explains that footloose employment has been in significant decline in the United States and that Indiana has more footloose jobs than the national average. The authors state that the decline can be viewed as a threat or an opportunity for Indiana.

The threat is that footloose employers aren’t as attached to a particular region and can move their business easily. Indiana is more susceptible to changes in regional cost factors or worldwide demand for footloose goods or services.

These changes go both ways, however.

Those same cost factors and demand which can harm Indiana can, of course, benefit Indiana more than other states when demand for businesses that are footloose increases or costs decrease. Additionally, Indiana’s current business environment appeals to footloose employers and more footloose jobs migrate here. However, as there are fewer footloose jobs overall it seems focusing on attracting them wouldn’t be beneficial long term.

The study reveals that there are four key sectors of industry that offer growth potential in Indiana:

  • Technologically advanced manufacturing
  • Biosciences
  • Emerging media and information technology
  • Logistics

According to this study, advanced manufacturing and logistics have some of the most promising opportunity based on growth, imports/exports, current locations, salary information and other variables. It is the CBER’s hope that this data will help legislators and local officials better assist and promote these businesses. And in turn, Indiana’s economy will thrive.

About the Author
Ben Crim is a member of Katz, Sapper & Miller’s Audit and Assurance Services Department. Ben audits and reviews financial statements, and he advises clients on accounting, reporting, compliance and internal control matters.

Comments (1)
Charu wrote
Its a very useful article. Manufacturing majors are focusing on cost-cutting to improve their bottom-lines. The high cost of technology has also resulted in collaborative innovation, where manufacturers are tying up with other vendors in bringing about much-needed changes in their processes. Logistics are playing an important role in growing economy of the country. Thanks for sharing this article. For more information you can visit Holisol Supply chain .
Posted May 3 2017 12:21 PM
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