Mid-year economic development progress: 17,000+ planned jobs, record wages & capital investment
INDIANAPOLIS (July 28, 2017) – At the midway point in the year, the Indiana Economic Development Corporation (IEDC) has secured 164 commitments from companies across the nation and around the world to locate or grow in Indiana. Together, these businesses plan to create up to 17,823 new, high-wage Hoosier jobs in the coming years and invest more than $5.4 billion in their Indiana operations.
“Indiana continues to create a business climate recognized nationally and around the world,” Governor Eric J. Holcomb said. “With an unwavering focus on taking Indiana to the next level, we will continue to grow our economy by developing our workforce, investing in infrastructure and delivering great government service to ensure that Indiana is a hub for innovation and a magnet for jobs.”
These 17,823 new positions are expected to pay an average hourly rate of $28.60, or more than $59,000 annually, which is nearly 33 percent higher than the state’s average wage of $21.52/hour. This average is also higher than previous annual average wages of jobs committed to the IEDC, including 2016’s record high of $25.43/hour.
Additionally, capital investment is nearing record highs. So far this year, companies have committed to investing more than $5.4 billion in their Indiana operations, which is a 45 percent increase from IEDC’s 2016 end-of-year total of $3.7 billion in planned capital investment. These locations and expansions make 2017 already the third-largest year for committed investment since the IEDC was established in 2005.
So far this year, IEDC’s top announcements, based on the number of new jobs committed, are Infosys, UPS, Beijing West Industries (BWI), Toyota Motor Manufacturing of Indiana, Forest River, Knowledge Services and Spot Freight. In addition to these top projects, 2017 economic development commitments to the IEDC show the following trends:
- Manufacturing: With one-fifth of all Hoosiers working at more than 8,500 manufacturing facilities throughout the state, the industry continues to strengthen Indiana’s economy. At the midway point in the year, manufacturing companies account for 46 percent of expansion and job creation commitments made to the IEDC. So far, 76 manufacturers like BWI, Toyota Motor Manufacturing of Indiana, Midwest Fertilizer and Steel Dynamics have committed to growing in Indiana, together planning more than $4 billion in planned investment and creating up to 4,967 new jobs.
- Technology: So far in 2017, the IEDC has secured 39 commitments from tech and tech-enabled firms, including Infosys, Knowledge Services, myCOI and Levementum. Together, these firms plan to create 5,266 Hoosier jobs in the coming years, accounting for more than 29 percent of new jobs committed to the IEDC in 2017.
- Logistics: In 2017, logistics companies like UPS, Spot Freight and TPS Industrial Services have planned significant growth in Indiana, together committing to invest more than $56.7 million and create up to 1,930 jobs. As part of Governor Holcomb’s Next Level Roads plan, more than $4.7 billion will be invested to improve Indiana’s roads over the next five years, creating an infrastructure system that supports Hoosier job creators in transporting goods.
- International Investment: So far this year, 20 foreign-based companies have committed to locate or grow in Indiana, planning to invest $624 million in the Hoosier state and create up to 3,632 new Hoosier jobs. The state has secured commitments from global companies like BWI, NTK Precision Axle Corporation and Fukai Toyotetsu Indiana Corporation, which will strengthen Indiana’s global economy that is home to more than 800 foreign-owned business establishments.
- Small Business: In addition to these 17,823 committed jobs, the IEDC also works to support entrepreneurs and small businesses through the Indiana Small Business Development Center (ISBDC) and the Indiana Procurement Technical Assistance Center (PTAC). So far this year, the ISBDC has assisted in 137 new business starts, resulting in the creation of 476 new jobs. In addition, PTAC counseled 746 existing small businesses, helping 69 clients secure nearly $23 million in federal contracts
Indiana’s business climate ranks first in the Midwest and fifth in the nation, offering companies the tools they need to grow their businesses. Companies of all sizes continue to choose to expand and add new jobs across the state. Indiana’s unemployment rate has fallen to 3 percent, which is below the national average and below all of Indiana’s neighboring states. With more Hoosiers going to work, Indiana’s labor-force participation rate continues to fall and remains above the national rate of 62.8 percent.
Note: Companies are classified into industries based on the North American Industry Classification System (NAICS). The NAICS is the standard used by federal statistical agencies to classify businesses into a category for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy.
The Indiana Economic Development Corporation (IEDC) leads the state of Indiana’s economic development efforts, helping businesses launch, grow and locate in the state. Governed by a 15-member board chaired by Governor Eric Holcomb, the IEDC manages many initiatives, including performance-based tax credits, workforce training grants, innovation and entrepreneurship resources, public infrastructure assistance, and talent attraction and retention efforts. For more information about the IEDC, visit www.iedc.in.gov.