Manufacturing 2.0: A More Prosperous California

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Indiana


Indiana's manufacturing real GDP totaled $58.5 billion, or 28.2 percent of the state’s real GDP in 2007. Indiana’s manufacturing real GDP rose 1.1 percent from 2000 to 2007, most of it from non-high-tech manufacturing industries.

Indiana was the nation’s eighth-largest manufacturing state, with 550,000 manufacturing jobs, or 4 percent of the nation’s total in 2007. Its manufacturing sector shed 114,500 jobs since 2000. Most of the job losses were in the transportation equipment and primary metal manufacturing industries. Though employment declined, the rates of decline in both high-tech and non-high-tech manufacturing were not as severe as the national average during the seven-year period. In fact, only high-tech manufacturing jobs rebounded after employment in the state’s entire manufacturing sector bottomed out in 2003. The growth of the high-tech industries increased Indiana’s share of the nation’s high-tech manufacturing to 2.76 percent in 2007 compared with the U.S. average of 2 percent.

The average wage in Indiana’s manufacturing sector was $51,300, less than in some of the peer states and the U.S. average but still a 25 percent increase since 2000. The value added per production worker in the state was $224,781 in 2007, also less than the U.S. average.

Manufacturing employment index (2000-2007)
State 2000 2001 2002 2003 2004 2005 2006 2007
California 100.00 96.01 88.08 83.25 82.11 81.10 80.31 78.98
Indiana 100.00 92.63 88.55 86.18 86.03 85.94 85.10 82.77
United States 100.00 95.22 88.37 84.03 82.91 82.40 82.00 80.41

Sources: U.S. Bureau of Labor Statistics, Moody's Economy.com, Milken Institute.

Top five indicators
Indicator United States
Value
IN
Value
%
Change
Peer State
Rank
Real gross state product (US$ billions) $11,523.9 $207.6 6.8% 8
Per capita personal income (US$) $38,615 $33,215 22.4% 8
Total exports of goods (US$ billions) $1,162.5 $25.9 68.7% 4
Manufacturing's share of real GDP (%) 13.6% 28.2% -5.4% 6
Real manufacturing output per worker (US$ thousands) $113.6 $106.5 22.0% 7

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Economic climate indicators
Indicator United States
Value
IN
Value
%
Change
Peer State
Rank
Real gross domestic product (US$ billions) $11,523.9 $207.6 6.8% 8
Total nonfarm employment (thousands, SA) $13,7604.3 $2,985.9 -0.5% 8
Total exports of goods (US$ billions) $1,162.5 $25.9 68.7% 4
Per capita personal income (US$) $38,615 $33,215 22.4% 8
Median household income (US$) $50,740 $47,422 14.1% 8

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Business climate indicators
Indicator United States
Value
IN
Value
%
Change
Peer State
Rank
Corporate income tax rate 15.0% -35.0% 8.5% 150.0% 7
Individual income tax rate 10.0% -35.0% 3.4% 0.0% 2
Property tax rate 13.8% 2.12% -- 7
Sales tax rate 0% 6.0% 20.0% 4
Employer unemployment insurance tax rate 0.66% 0.61% 64.9% 5
Total state-local tax burden rate 9.9% 9.5% 6.7% 4
Per capita total state-local taxes paid (US$) $4,223 $3,459 35.4% 3
Government debt as % of GDP 65.5% 7.8% 90.2% 8
Per capita government spending (US$) $14,327 $4,540 36.1% 2
Nonfarm establishments (latest 2006) 7,601,160 $151,283 3.4% 7

Sources: Bureau of Economic Analysis, The Tax Foundation, U.S. Census Bureau, U.S. Office of Management and Budget, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Manufacturing indicators
Indicator United States
Value
IN
Value
%
Change
Peer State
Rank
Manufacturing share of real GDP 13.6% 28.2% -5.4% 6
High-tech manufacturing share of real GDP 4.8% 7.3% 29.7% 4
Manufacturing employment (thousands) 13,882.6 549.97 -17.2% 7
High-tech manufacturing employment (thousands) 2,468.7 68.1 -5.4% 1
Share of U.S. high-tech manufacturing employment 2.0% (U.S. avg.) 2.76% 17.4% 1
Manufacturing wage per employee (US$) $53,804 $51,340 25.2% 5
Manufacturers' capital expenditures (US$ billions) $135.8 $5.3 -13.3% 4
Industrial R&D expenditures (US$ billions, 2005) $226.2 $4.6 72.8% 3
Real manufacturing output (US$ billions) $1,571.7 $58.5 1.1% 8
Real manufacturing output per worker (US$ thousands) 113.6 106.5 22.0% 7
Value added per production worker (US$) $249,139 $224,781 39.8% 5
Exports of manufactured goods (US$ billions) $1,022.1 $25.3 68.6% 4

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, The National Science Foundation, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.
Leading business and economic indices
Indicator Peer State
Rank
National
Rank
State Business Tax Climate Index (Tax Foundation) 4 12
Best & Worst States [to do business] Survey (Chief Executive Magazine) 3 11
Competitiveness Index (Beacon Hill Institute) 8 44
Economic Competitiveness Index (American Legislative Exchange Council) 8 47
2007 State and Local Tax Burden (Public Policy Institute of New York) 4 23
Economic Freedom Index (Pacific Research Institute) 3 14
Small Business Survival Index (Small Business & Entrepreneurship Council) 4 20
2007 Cost-of-Doing-Business Index (Milken Institute) 2 14
State New Economy Index (Kauffman Foundation) 8 36
State Technology & Science Index (Milken Institute) 8 33

Note: Indices cited were published in 2008, unless otherwise stated. Some index rankings results were reversed from published rank in order to make them consistent across the different indices as presented here. The rankings are among the eight peer states, 1 = best and 8 = worst.
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