INDIANA — The state’s business climate and a trio of innovation/workforce rankings are all welcome signs in the Indiana Chamber of Commerce’s initial Indiana Prosperity 2035 Report Card, which is based on the goals in the statewide plan of the same name released in August. But while Indiana is showing progress in these and other areas, the rate of improvement isn’t happening fast enough, notes the organization. And some improvement is lacking altogether.
The report card includes 49 metrics comparing Indiana to other states related to 31 goals identified in the larger Indiana Prosperity 2035 vision plan. The goals are grouped by six policy areas: workforce; K-12 education; economic growth, innovation, and entrepreneurship; superior infrastructure and energy; quality of place strategies; and healthy, prosperous communities and citizens.
Indiana’s highest state ranking in this report card is third, which the state earned for having 11% of its labor force working in a “knowledge- and technology-intensive industry” such as manufacturing, pharmaceuticals, or software development.
Three other bright spots for Indiana are its generally attractive business climate (eighth best nationally), minority entrepreneurship (fourth best), and the uptick in the number of design patents issued to Hoosier applicants. Regarding the latter: Between 2018 and 2020, there was a 29% increase in design patents issued compared to 2016-2018, which was the ninth best among all states.
Another positive result is the housing cost burden. Indiana has less than 25% of households paying more than 30% of their income on housing-related costs. That puts Indiana as the fourth-best state nationally.
“Two things are clear. We see several positive trends and developments that are causes to celebrate, but at the same time, there is more work to be done,” says Indiana Chamber President and CEO Kevin Brinegar. “Right at the top – where we need to redouble our focus – centers around health care costs. Indiana ranks among the bottom states for health care affordability in metrics for premiums and actual expenditures.”
Indeed, the state finished 49th and 47th in those metrics, respectively.
Brinegar also offers that venture capital disbursement (40th) and the rate of overall new entrepreneurs (44th) remain challenges.
A trend that unfortunately endures is Indiana’s poor national rankings on matters about health and well-being. Indiana remains near the bottom of states for smoking (tied for 41st), obesity (38th), and drug-related deaths (38th).
Overall, Indiana ranks in the top 10 in seven of the 49 nationwide metrics, while it has 13 rankings of 40th or worse.
When compared to previous years, Indiana’s national ranking declined in 28 metrics compared to 20 metrics in which it improved and one in which it stayed the same. Relative to the national average, Indiana’s current scores are worse in 30 metrics, better in 17 metrics, and the same in one metric. However, Indiana’s raw scores – including those that are specific to Indiana – improved in 36 metrics compared to 17 in which they declined and one that stayed the same.
“When you look at all the rankings and Indiana’s raw scores, a key takeaway is that Indiana is seeing progress in many areas but it’s at a slower pace than other states,” remarks Indiana Chamber President and CEO-elect Vanessa Green Sinders. “Through this report card, which provides objective information about Indiana’s strengths, weaknesses, opportunities, and challenges, we hope to spur productive, collaborative conversations about where we need to go and how to get there.”
This initial report card serves as a baseline for the goals outlined in the Indiana Prosperity 2035 playbook; future report cards will measure the progress toward achieving those goals.
Sinders adds, “This effort is another way the Indiana Chamber continues to be a proactive, nimble, and creative thought leader when it comes to the policy issues impacting business and the workforce. We look forward to working with partners across the state to help Indiana rise even higher on the list of best states to do business and be viewed as a location where more people want to live, work, and come visit.“
Full results of the report card are available at www.indianachamber.com/2035.
The Indiana Prosperity 2035 Report Card is sponsored by lead investors AES Indiana, Duke Energy, the Garatoni-Smith Family Foundation, Indiana American Water, Indiana Michigan Power, and NIPSCO.
About Indiana Prosperity 2035
Indiana Prosperity 2035: A Vision for Economic Acceleration is the Indiana Chamber’s latest economic development playbook for the state for the next decade-plus. The effort seeks to mobilize public consensus on key public policy issues facing Indiana. The plan is organized around six pillars (noted above) with a total of 31 goals integrated among them. Like the plan, these goals were developed through 18 months of work by a volunteer task force comprised of researchers, issue experts, business leaders, and coalition partners.
