Indiana tops in manufacturing impact on state's economy

Study by Website finds Midwest economies depend on plant output

08/12/2013


A new report details the top 10 states for manufacturing by percentage of the state’s overall GDP. The list is fairly evenly split between the Southeast and the traditional Rust Belt states.

According to the Website 24/7 Wall St., Indiana was ranked first based on its ranking in terms of motor vehicles and chemicals. The Hoosier State’s $84.15 billion in manufacturing output is 6th in the nation, based on figures it obtained from the Bureau of Economic Analysis, but that is 28.2% of the state’s overall GDP. The article’s authors cited plant expansion throughout the state, and noted, “Developments like these are critical for the economy of the state, which depends on manufacturing more than anywhere else in the nation.”

Oregon ranked second in the nation at 27.8% of GDP. The 24/7 Wall St. study found that almost 69% of Oregon’s manufacturing output came from the computer and electronics industry. Louisiana was third, based largely on its strength in petroleum and coal.

Article authors Alexander E.M. Hess, Michael B. Sauter and Thomas C. Frohlich wrote, “During the recession, and in many cases before the recession even started, many states with high manufacturing employment faced steep job losses. Between January 2007 and mid-2009, Indiana lost more than 100,000 manufacturing jobs. In Michigan, nearly 125,000 manufacturing jobs were lost between January 2008 and January 2009 alone. Now, many of these states have seen employment rebound.”

Michigan is one of six Midwestern states on the list, joining Indiana, Wisconsin, Kentucky, Ohio and Iowa. Oregon was the only state west of the Rockies to make the list.

The top 10 states and the percentage of GDP derived from manufacturing are:



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