Manufacturing still rules state, study shows

Despite challenges to the sector, durable goods manufacturing remained the largest portion of the state’s gross state product in 2006, according to analysis published recently in Indiana Business Review.

Not only that, but the combination of durable goods – cars and other products designed to last at least three years – along with pharmaceuticals and other nondurable goods amounted to 30.5 percent of the state’s production. That was higher than any other state.

Little has changed since 1997 despite the movement of manufacturing to Mexico, China and other low-wage countries. Durable-goods manufacturing accounted for 18.1 percent of all state production in 2006, and 20.5 percent in 1997.

Despite the strength of the sector in Indiana, the state is generating a smaller share of all goods and services produced in the country.

Indiana turned out 1.9 percent of the gross domestic product in 2006 compared to 2.1 percent in 1997.

Indiana Business Review is published by Indiana University’s business school.