Source: Bureau of Labor Statistics http://www.ibrc.indiana.edu/ibr/2009/outlook/evansville.html
Tuesday, September 28 2010
The State of Indiana is positioned among the best in the country to do business. Once we are out of the recession, Indiana can see major increases of new business opportunities. Here is a list that sheds light on this situation:
· Indiana created 56,000 private sector jobs this year. Almost 10% of all private sector jobs created nationwide. (5 times National Average)
· 42 States have raised taxes--Indiana has cut taxes (only State)
· Indiana is ranked 2nd Nationally in Fiscal responsibility.
· Because of our Fiscal soundness, Indiana is the friendliest state to grow a business.
· Our State Pension debt is funded—Unlike other States
· We are in a better place than we have ever been—Any Company thinking about expansion is looking at Indiana.
· Indiana took advantage of the Stimulus Package better than any other State, because we had the money to start projects, prior to receiving Stimulus money.
Thursday, July 22 2010
A Canadian auto supplier is expanding in Gibson County. Windsor Machine Group plans to hire 50 employees at its Princeton plant to help fill orders for Ford Motor Co. (NYSE: F). The company currently employs 32 at the Gibson County operation, which produces headrests for Toyota Motor Manufacturing Indiana Inc.
Windsor Machine Croup, makers of automotive headrests, seating components, exhaust suspension systems, modular assemblies, rubber and plastic products and structural brackets and braces; headquartered in Windsor, Ontario is expanding it's Princeton, Indiana plant in Gibson County and will hire 50 new employees.
"With the help of the Gibson County Economic Development Corporation, Economic Development Coalition of Southwest Indiana, Indiana Office of Community and Rural Affairs, and the Gibson County Commissioners we were able to secure a $500,000 Disaster Recovery Grant through a Community Development Block Grant program to purchase a Konal Polyurethane Foaming Assembly Line Machine which will allow us to fill orders for Ford Motor Company in both Kansas City, Missouri and Louisville, Kentucky said Windsor CFO Dave Zultek.
B. Todd Mosby, President and CEO of the Gibson County Economic Development Corporation stated the news will be welcomed by residents in the tri-state. He said, "The Gibson County Commissioners will be the actual owners of the property for the first 5-years as Windsor works to complete criteria set forth in the grant. Once the criteria is met, Windsor will take 100% possession of the machine."
Windsor Machine Group currently employs 32 people in their Princeton plant where they produce headrests products for Toyota Motor Manufacturing, Indiana.
The Gibson County Economic Development Corporation is a 501 c(3) not-for-profit corporation located at 202 E. Broadway Street in Princeton. The Gibson County Economic Development Corporation was formed in 2006 with a mission to coordinate, assist, and advise Gibson County in economic development activities.
Source: Gibson County Economic Development Corporation & Inside INdiana Business
Thursday, December 31 2009
During every recession over the past five decades, the Evansville metro economy has exhibited resiliency and a capacity to withstand the adverse impacts associated with national recessions. The recession that began at the end of 2007 is no exception. While the declines in output, employment, real income, and real retail sales intensified in 2009, the depth of these impacts are less pronounced in Evansville than in many other metro areas of similar size and structure. The dynamics of the Evansville area labor market underscore this with a drop in the non-seasonally adjusted unemployment rate from 8.6 percent in January 2009 to 7.6 percent in September 2009, compared with a rise in the national unemployment rate from 7.6 percent to 9.8 percent over the same time period.
Economic performance in 2009 was driven by job losses in key sectors such as manufacturing, construction, and financial services. Traditional recession-resistant sectors such as health care and education were also adversely affected. Employment increases were evident only in the hospitality and government sectors. In 2009, nominal personal income is estimated to decrease by 3.1 percent and real gross metro product is estimated to decrease by 3.8 percent. The manufacturing sector continues to be an important base to metro area household incomes and consumer spending activity even as the economy adjusts to an ongoing diversification away from manufacturing-industry dependence.
As the Evansville economy tracked the U.S. economy in 2009, there were indications of a slowly improving housing market, some deterioration of credit quality, and higher delinquency rates. Homeowners experienced some home price depreciation, but the median home price has not dipped by as much as it has nationally. Existing home prices declined from an average of $94,000 in 2008 to $89,000 in 2009, and mortgage originations are estimated to increase from $715 million in 2008 to $761 million in 2009. Between 2008 and 2009, single-family housing permits are estimated to have dropped by 57 percent and personal bankruptcies per 1,000 persons are estimated to have increased from 5.1 to 8.9.
The national downturn and weaknesses in credit markets negatively impacted a number of the metro area’s largest employers. These include workforce reductions announced by a plastics firm, automotive parts manufacturers, and a financial services firm. Recent announcements from Whirlpool Corporation about the closure of its Evansville manufacturing facility in 2010 and the decision to keep its product development unit in Evansville underscore both the challenges and opportunities for the Evansville economy in the future.
In-migration, which has boosted local population growth in recent years, was not evident in 2009 as the widespread nature of the national recession has limited residents’ mobility. In 2010, the Evansville metro economy will benefit from an announced $26 million investment by Mead Johnson Nutritionals to build its new Research and Development Technology Center as well as the stimulative impacts associated with the nearly $21 million expansion by Berry Plastics.
Given the proportion of output that is sold outside the metro area, the rebound will not begin until the broader economy strengthens and demand for locally produced goods returns to the level of the preceding five years. Consequently, personal income and output growth in the next year will be below levels of the past five years.
Given Evansville’s dependence on manufacturing, the metro has been noticeably impacted since the inception of the current recession. Since September 2000, Evansville’s manufacturing workforce has fallen 25.2 percent or about 9,400 workers. As a result, manufacturing as a share of total nonfarm employment has continued to decline (see Figure 1). However, manufacturing earnings as a share of total earnings has remained stable at about 27 percent between 2001 and 2009.
Figure 1: Manufacturing Employment as a Percent of Total Nonfarm Employment in the Evansville Metro, 1990 to 2009
In 2010, output is forecasted to increase by 0.1 percent, the number of jobs is projected to decrease by 1,900, and the forecast for nominal personal income growth is zero percent. Figures 2 and 3 provide a comparison of forecasts for the Indiana segment of the Evansville economy and the state of Indiana for the 2008–2012 period.
Since the pace of structural change in the Evansville economy has quickened during the past year, there are likely to be added transitional challenges as the regional economy adjusts from its manufacturing-industry dependence, particularly in nondurable manufacturing (see Table 1). In addition, when the elderly age cohort and the youth age cohort make up large shares of the population, it places greater pressures on in-migration as a source of the human capital needs of the region.
Table 1: Manufacturing Percent of Total Employment, September 2009
Monday, October 12 2009
Indianapolis-based accounting firm Katz, Sapper & Miller is out with its fourth annual Indiana manufacturing survey. The report shows more than half of respondents believe the economic downturn had a significant, negative impact on sales volume, however Hoosier manufacturers expect steady or improved results in 2010. Other key findings reveal suppliers are often not deeply involved in the manufacturing process in such a way to maximize the efficiency of the supply chain, the demand for workers has declined and Hoosier manufacturers with a greater focus on globalization tend to be more successful than those focused solely on U.S. markets.
INDIANAPOLIS (October 9, 2009) – The certified public accounting firm of Katz, Sapper & Miller, LLP today released the results of its fourth annual Indiana manufacturing survey, The Gear and Fulcrum: Performance and Practice of Indiana’s Manufacturers. The study is commissioned by Katz, Sapper & Miller and developed in partnership with the Dauch Center for the Management of Manufacturing Enterprises (DCMME) and the Global Supply Chain Management Initiative (GSCMI) in the Krannert School of Management at Purdue University.
More than half of the respondents to the survey reported that the recent economic downturn had a significant, negative impact on sales volume. The study did, however, indicate that Hoosier manufacturers expect steady or improved results in 2010. Other key findings reveal:
·Internal Supply Chain – Suppliers are often not deeply involved in the manufacturing process in such a way to maximize the efficiency of the supply chain. This suggests that improvements – technological, communication, etc. – could increase the overall supply chain profitability.
·Staffing – The demand for workers has declined. Most workforce changes occurred on the shop floor and in administration, with minimal changes in purchasing, human resources and sales. The location of job cuts indicates companies may be anticipating the need to ramp-up operations quickly after the recession.
·Global Opportunities – Hoosier manufacturers with a greater focus on globalization tend to be more successful than those companies focused solely on U.S. markets.
·New Products – Survey respondents indicated that they are looking outside of their current markets for growth opportunities. Alternative energy was the area reported as being favored by most respondents.
The survey goes on to reveal that while many Hoosier manufacturers believe that their own internal company changes are necessary, additional considerations for their long-term success must include a renewal in consumer confidence, greater access to traditional financing, and the recovery of the automotive industry.
“We found that companies have actively focused on improving their supply chain competitiveness by examining every aspect of their business and choosing to do what they are best at or finding other companies to assist. The best performers through this difficult economic transition also took advantage of global opportunities to find new markets and raw material sources,” said Dr. Ananth Iyer, Director of the Dauch Center for the Management of Manufacturing Enterprises and the Susan Bulkeley Butler Chair in Operations Management. “Companies are making critical and difficult moves that will position them for growth as the economy turns more favorable; they are exploring new opportunities in the wind, medical devices and defense sectors. In short, Indiana manufacturing companies in the survey showed that they are ‘pulling themselves up by their bootstraps’ and doing what it takes to become competitive.”
The Dauch Center for the Management of Manufacturing Enterprises (DCMME) at Purdue’s Krannert School of Management completed the 2009 Gear and Fulcrum study between April and August of 2009. The online survey was designed to provide insights into management choices made in 2009 by manufacturing and distribution companies across Indiana. Participants spanned the supply chain from raw material suppliers to final assembly OEMs.
To view the complete results of The Gear and Fulcrum: Performance and Practice of Indiana’s Manufacturers visit: http://www.ksmcpa.com/pdfdocs/2009_Gear_and_Fulcrum_Survey_Report.pdf.
Katz, Sapper & Miller is the largest Indianapolis-based accounting firm. In business since 1942, the firm has earned a reputation as a leader in the areas of accounting, audit, tax, and consulting services. The firm has been named one of the “Best of the Best” accounting firms in the nation by INSIDE Public Accounting magazine and was ranked ninth among the “Best Places to Work in Indiana” by the Indiana Chamber of Commerce. The firm is an independent member of Nexia International, a leading global organization of independent accounting and consulting firms. For more information visit us at www.ksmcpa.com.
Source: Katz, Sapper & Miller LLP & Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=38121