Today, Governor Eric J. Holcomb announced the end of a record-breaking year for economic development with the Indiana Economic Development Corporation (IEDC) securing 293 commitments from companies across the country and around the world to locate or grow in Indiana. Together, these businesses plan to invest more than $7.04 billion in their Indiana operations and create up to 30,158 new Hoosier jobs in the coming years – the highest annual commitment in IEDC history.
“Our efforts to diversify Indiana’s economy and share the Hoosier story with a global audience paid off with a record-setting year for job commitments in 2017,” Governor Holcomb said. “From home-grown small businesses to international Fortune 500 companies, organizations of all sizes are choosing to invest in Indiana because of our best-in-the Midwest job climate and a Hoosier workforce that’s second to none. Of course, records were made to be broken, and we will continue our work to take Indiana to the next level in 2018, ensuring the Hoosier state is the very best place to start a business, grow a business, and get a job.”
These 30,158 new positions are expected to offer average wages of $27.20/hour, or more than $56,500 annually, which is the highest annual average wage achieved since the IEDC was established in 2005. This average wage is 26.5 percent higher than the state’s average wage of $21.51/hour (BLS, 2016) and is a 7 percent increase from the IEDC’s average committed wage of $25.43/hour in 2016.
Largest Announcements: Businesses announcing the largest expansion commitments, based on the number of new jobs planned, in 2017 were:
- Infosys (2,000 committed jobs in Marion County),
- Dia & Co. (872 committed jobs in Johnson County),
- Toyota Motor Manufacturing of Indiana (600 committed jobs in Gibson County),
- UPS (578 jobs in Hendricks County),
- Ingram Micro (550 committed jobs in Clark County),
- Axiscades (500 committed jobs in Bartholomew County and others statewide),
- HMD Trucking (500 committed jobs in Lake County),
- Beijing West Industries (BWI) North America (441 committed jobs in Hancock County),
- Grand Design RV (416 committed jobs in Elkhart County),
- Liberty Mutual (400 jobs in Hamilton County),
- KAR Auction Services (400 jobs in Hamilton County), and
- Knowledge Services (400 jobs in Hamilton County).
Industry Trends: Indiana’s manufacturing, agribusiness and logistics sectors continue to thrive as new industries like cybersecurity and defense, life sciences and technology are reaching new levels of growth. Top trends from 2017 include:
- Agribusiness: In 2017, the IEDC secured commitments from 19 agriculture and agribusiness companies to locate or expand in Indiana. Together, these businesses, including Midwest Fertilizer, Select Genetics and Micronutrients, plan to invest more than $3.2 billion in their Indiana operations and create up to 2,114 new, high-wage jobs with average salaries of more than $75,000 annually.
- Manufacturing: This year, manufacturing companies accounted for 47 percent of the 293 commitments made to the IEDC with 138 manufacturers like BWI, Grand Design RV, Fort Wayne Metals and Android Industries choosing to grow in Indiana. Together, these businesses have planned to invest more than $5.5 billion and create up to 10,885 new jobs.
- Technology: In 2017, 64 tech and tech-enabled firms, including Infosys, Knowledge Services, Vibenomics, WorkHere and Levementum, committed to growing in Indiana. Together, these firms plan to create 7,636 high-wage Hoosier jobs in the coming years, accounting for one quarter of new jobs committed to the IEDC in 2017, with average salaries of these positions topping $76,000 annually. Tech commitments are up from 2016, when 43 firms committed to creating 5,236 new jobs.
- Logistics: Logistics companies like HMD Trucking, UPS, Spot Freight and TPS Industrial Services have planned significant growth in Indiana this year, together committing to invest more than $377 million and create up to 2,945 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: This year, 39 foreign-based companies committed to locating or growing in Indiana, planning to invest more than $1.3 billion in the Hoosier state and create up to 5,555 new, high-wage Hoosier jobs. The IEDC has secured commitments from global companies like AXISCADES, BWI, NTK Precision Axle Corporation, Subaru of Indiana Automotive, Fukai Toyotetsu Indiana Corporation and Ludo Fact USA, which will strengthen Indiana’s global economy that is home to more than 800 foreign-owned business establishments.
- Small Business: In addition to these 30,158 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 274 new business starts and in the creation of 762 new jobs. In addition, PTAC counseled 800 existing small businesses, helping 86 clients secure nearly $31 million in federal contracts.
IEDC incentives offered for these 293 commitments are conditional, meaning a company must create new jobs or provide workplace training in order to be eligible to receive incentives, and are based on new payroll for Hoosiers in order to protect taxpayer money while simultaneously attracting high-wage jobs and new investment to the state. The IEDC offered an average incentive of $0.19/new payroll dollar in 2017.
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. Governor Holcomb’s 2018 Next Level Agenda, which was announced last month, places a greater emphasis on building Indiana’s workforce to fill high-wage, high-demand jobs, ensuring that companies expanding in Indiana will have the talent needed to grow and succeed here in the state.
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.