Getting the Story Straight on Indiana Manufacturing

Here's a good one that every economic developer should read on manufacturing. The following text is from an editorial by Indiana economist Morton Marcus:

"It would seem easy to blame Indiana's poor job performance on the manufacturing sector. The truth, however, is that manufacturing in Indiana did very well from 2001 to 2006. Our decline in manufacturing jobs was 8 percent, while the national loss rate was 15 percent. Our share of the nation's manufacturing jobs grew more than that of any other state. In a declining sector, we excelled.

Where we did poorly was in the nonmanufacturing portion of the private sector. The nation grew at a 5.3 percent rate in these sectors, while Indiana advanced 3.3 percent (39th of the 50 states). Thus, manufacturing job losses were a drag on the state's economy largely because the balance of the Indiana economy was not keeping pace with a growing nation.

Before economic developers do something foolish or politicians devise some silly plan to encourage the nonmanufacturing sectors, remember this: Despite the fact that it is a manufacturing firm, Honda will do more for Decatur County and Indiana than would a flood of tourists to see the tree in the courthouse at Greensburg.

Yet of greater value would have been getting United Airlines to move their corporate headquarters to one of our cities rather than settling in downtown Chicago."

Read the whole article here.