INDIANAPOLIS – Indiana’s manufacturing industry is experiencing the longest expansion of employment in state history, according to the 2018 Manufacturing and Logistics Report Card released June 7 by the Ball State Center for Business and Economic Research and Conexus Indiana.
“U.S. manufacturing and logistics are in a remarkable period of expansion,” said CBER Director Michael Hicks, George and Frances Ball distinguished professor of economics and business research. “Here in Indiana, both manufacturing and logistics continue to expand. The logistics industry is tied for the second longest expansion in the past 50 years.”
Indiana earned “A” ratings for manufacturing and industry health, tax climate and global reach, and has maintained those “A” grades since 2009, the first year of the report card. Indiana also earned an “A” in logistics industry health.
Indiana’s grades slipped from a B to B- in worker benefits and from a B to a C in productivity and innovation, both caused by an expanding economy and a tight labor force, according to researchers. Indiana’s productivity growth has slowed at a greater rate than other states mostly because of its concentration of high-tech industries, where swings in productivity are most pronounced. Productivity is impacted by strong growth in manufacturing employment and the influx of new, less productive workers.
As healthcare premiums in Indiana rose, the measure of worker benefits also increased, which negatively impacted that grade in the report card. Tight labor markets brought fewer healthy workers into health plans and increased costs for health and medical care, according to researchers.
The national report is available on the Conexus Indiana website.
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