Indiana

:This article is about the U.S. state. See also Indiana, Pennsylvania (U.S.) and Indiana, São Paulo (Brazil.)

Economy

The total gross state product in 2003 was $214 billion. Indiana's per capita income, as of 2003, was $28,783.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Indiana is located well within the Corn Belt, and the state's agricultural methods and principal farm outputs reflect this: a feedlot-style system raising corn, to fatten hogs and cattle. Soybeans are also a major cash crop. The state's nearness to large urban centers, such as Chicago, Illinois, also assures that much dairying, egg production, and specialty horticulture occur. Specialty crops include melons (southern Wabash Valley), tomatoes (concentrated in central Indiana), grapes, and mint (Source: USDA crop profiles). In addition, Indiana is a significant producer of tobacco. It should be remembered that while the state is in the Corn Belt, the original land was not prairie and had to be cleared of deciduous trees. Many isolated parcels of woodland remain, and much of the southern, hilly portion is heavily forested (a condition which supports a local furniture-making sector in that part of the state).

Related Topics:
Corn Belt - Soybeans - Chicago, Illinois - Tobacco

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

A high percentage of Indiana's GDP comes from manufacturing, and much of this activity is heavy manufacturing. In the state, industry tends to be concentrated in the northern half. The Calumet region of northwest Indiana is the largest steel producing area in the USA, and this activity also requires that very large amounts of electric power be generated. Indiana's other manufactures include electrical equipment, transportation equipment, chemical products, rubber, petroleum and coal products, and factory machinery. In addition, Indiana has the international headquarters of the Eli Lilly and the U.S. headquarters of the Roche pharmaceutical companies. Surprisingly, in view of the large agricultural sector, comparatively little food processing occurs in the state.

Related Topics:
Steel - Petroleum - Coal - Eli Lilly - Roche

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Like most interior states, Indiana is poorly located with respect to emerging coastal markets and new overseas sources of raw materials for manufacturing. However, Indiana has been much less hit by declines in traditional Rust Belt manufactures than many of its neighbors. The explanation appears to be certain factors in the labor market. First, much of the heavy manufacturing, such as industrial machinery and steel, requires highly skilled labor, and firms are often willing to locate where hard-to-train skills already exist. Second, Indiana's labor force is located primarily in medium-sized and smaller cities rather than in very large and expensive metropolises. This makes it possible for firms to offer, and labor accept, somewhat lower wages for these skills than would normally be paid. In other words, firms often see in Indiana a chance to obtain higher than average skills at lower than average wages for those skills, which often makes location in the state desirable. (Source for basic manufacturing facts in the above two paragraphs is generally McCoy and McNamara, "Manufacturers in Indiana," Purdue University Center for Rural Development, Research Paper 19, July 1998.)

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In mining Indiana is probably best known for its decorative limestone from the southern, hilly portion of the state. One of the many public buildings faced with this stone is The Pentagon, and after the attack of September 11, 2001, a special effort was made by the mining industry of Indiana to replace those damaged walls with as nearly identical type and cut of material as the original facing. There are also large coal mines in the southern portion of the state. Like most Great Lakes states Indiana has small to medium operating petroleum fields; the principal location of these today is in extreme southwest Indiana in an area somewhat confusingly called the "Illinois Field."

Related Topics:
Limestone - The Pentagon - September 11 - 2001 - Coal - Petroleum

~ ~ ~ ~ ~ ~ ~ ~ ~ ~