INDIANAPOLIS (Dec. 30, 2016) – In 2016, the Indiana Economic Development Corporation (IEDC) secured 227 commitments from companies across the country and around the world to locate or grow in Indiana. Together, these businesses plan to invest nearly $3.7 billion in their Indiana operations and create 20,320 new Hoosier jobs in the coming years.
“Since day one of my administration, job creation has been job one and today more Hoosiers are working now than ever before,” said Governor Mike Pence. “Through sound policies and fiscal management, we have remained focused on creating a low-tax, low-cost, limited regulation business environment that has helped create record employment and investment in Indiana. Today, we celebrate the fact that Indiana ranks first in the Midwest and fifth in the nation for business, offering a world-class workforce and the tools needed for business growth. I am confident that Indiana will continue its economic success under the leadership of Governor-elect Holcomb, who will work tirelessly to ensure ample job opportunities exist for Hoosiers across the state.”
These 20,320 new positions are expected to pay an average hourly rate of $25.43, or more than $52,800 annually, which is the highest annual average achieved since the IEDC was established in 2005. This average wage is 20 percent higher than the state’s 2015 average wage of $21.21/hour and is a 17 percent increase from the IEDC’s average committed wage in 2014.
“As Indiana’s unemployment rate fell to a 15-year low this year, our state’s strong economy has allowed the IEDC to be laser focused on helping companies create high-wage Hoosier jobs by strategically focusing on advanced, skilled industries that offer future growth opportunities in every corner of the state,” said Jim Schellinger, president of the IEDC. “Today more Hoosiers are working than ever before, and with the IEDC’s strategic focus, Hoosiers are working for steadily rising wages. This year, the average wage of jobs committed to the IEDC increased by 56 cents per hour, or more than $22 per week, which will allow Hoosiers to put more money in their pockets and create more opportunities for their families. As Indiana enters its third century, we will continue these efforts and, in sync with the Indiana Regional Cities Initiative and the Innovation and Entrepreneurship Initiative, together we will take Indiana to the next level and ensure that quality employment opportunities are available for all Hoosiers.”
IEDC incentives offered for these 227 commitments are conditional, meaning a company must create Hoosier jobs in order to be eligible to receive incentives, and are based on new payroll for Hoosiers. The IEDC offered an average incentive of $0.17/payroll dollar in 2016, which is a decrease of 19 percent from 2015, saving taxpayer money while simultaneously attracting high-wage jobs and new investment to the Hoosier state.
Top Trends: Indiana’s manufacturing, agribusiness and logistics sectors continue to grow as new industries like aviation and defense, cybersecurity, life sciences and technology are experiencing unprecedented growth. Top trends from 2016 include:
- Technology: Indianapolis added 5,423 tech jobs between 2013 and 2015, growing at a rate of 28 percent and ranking fifth in the nation for tech growth. In 2016, the IEDC secured 43 commitments in the tech industry, which includes growth from companies like Salesforce, Determine, Safe Hiring Solutions, MOBI, Knowledge Services and Torchlite. These expansions account for 5,236 planned Hoosier jobs and more than $158 million in planned capital investment in Indiana. The tech positions are expected to pay an average hourly wage of $33.36, which is 57 percent higher than the state’s average wage.
- Manufacturing: Indiana is a national leader in manufacturing job growth, with one-fifth of all Hoosiers working at more than 8,500 manufacturing facilities throughout the state, making Indiana home to the highest concentration of manufacturing jobs in the nation. In 2016, IEDC secured 119 commitments from manufacturers like Aisin USA Manufacturing, Ryobi Die Casting, Honda and General Motors. Together, the state’s manufacturing expansions account for more than $2.75 billion in planned investment, creating up to 9,850 new jobs.
- Agribusiness: Indiana’s growing agriculture industry supports more than 107,000 Hoosier jobs and contributes an estimated $31 billion to the state’s economy each year. This year, IEDC secured commitments from agribusinesses such as Ken’s Foods, DowDupont, Krone North America, Blue Buffalo and Walmart.
- International Investment: This year, 26 foreign-based companies committed to locate in or grow in Indiana, planning to invest $591.2 million in the Hoosier state and create 1,915 new Hoosier jobs.
Twelve of these commitments were from Japan-based business leaders, together making plans to create more than 900 new Hoosier jobs. Companies like Nippon Steel & Sumitomo Metal Corporation, Tsuchiya Group North America, Toyota Material Handling US and two Subaru suppliers – ELSA Corporation and Moriden America – all announced plans to expand in Indiana. Among all U.S. states, Indiana has the largest amount of Japanese investment per capita.
Top Announcements: The top five job announcements, as ranked by the number of new jobs committed from 2016, include:
- Salesforce, which is one of the world’s fastest growing software companies, announced plans in May to expand its Indiana operations, committing to invest more than $40 million over the next 10 years and to create up to 800 new jobs by 2021. To accommodate its growth, the company will establish a new regional headquarters in downtown Indianapolis, which will be branded as Salesforce Tower Indianapolis, contributing to the city’s skyline.
- Allied Solutions, a large distributor of insurance, lending and marketing products to financial institutions across the country, announced plans in January to expand its Indiana headquarters, committing to invest $32.9 million in facility updates and to create 600 new jobs by 2025.
- MOBI, a global software provider of Managed Mobility Services (MMS), announced plans in September to expand its operations, committing to invest more than $11.5 million in office space and hardware and to create up to 521 new jobs by 2020.
- Republic Services Inc. (NYSE: RSG), an industry leader in U.S. recycling and non-hazardous solid waste, announced plans in February to establish a customer resource center in Fishers, committing to invest $13.6 million and to create up to 469 new jobs 2025.
- Knight Transportation, a truckload transportation and logistics service company, announced plans to open the company’s new Regional Operations Center in Indiana, committing to invest $4.6 million and to create up to 426 new jobs by 2021.
Other top announcements by number of new jobs and investment include: Knowledge Services, Kohl’s Department Stores, Safe Hiring Solutions, Schlage Lock Company, Sallie Mae, GEP Fuel & Energy Indiana, Walmart, Blue Buffalo, Aisin USA Manufacturing, Ryobi Die Casting, Ken’s Foods, ELSA Corporation and General Motors.
Today’s news comes at a time when more Hoosiers are working than ever before in the state’s 200-year history. Indiana’s unemployment rate stands at 4.2 percent, which marks the state’s lowest unemployment rate since 2001, standing below the national average of 4.6 percent as well as all of Indiana’s neighboring states. Since January 2013, Indiana has secured 1,096 commitments from businesses, creating 168,000 Hoosier jobs. Meanwhile, the Hoosier state continues to receive accolades from national publications as a top destination for business growth, including recognition for having the best business climate in the Midwest and fifth best in the nation from Chief Executive magazine.
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 12-member board chaired by Governor Mike Pence, 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.