Return to Table of ContentsIndiana's official motto may be the "Crossroads of America," but a new Indiana University School of Business report indicates that the Hoosier state -- from an economic standpoint -- veers away from the national norm.
However, Morton Marcus, director of the Indiana Business Research Center and author of the report in the January issue of Indiana Update, says that "being different isn't the same as being unsuccessful."
For example, earnings in Indiana grew faster than those of the rest of the nation between 1985 and 1995, and faster than those of any of Indiana's neighbors -- Illinois, Kentucky, Ohio or Michigan -- during the same time period.
"Between 1985 and 1995, Indiana's divergence from the national pattern accelerated," noted Marcus. "While 37 states became more like the nation in the past decade, Indiana ranked second in the change in its divergence from the nation's pattern of earnings."
Given the "Amber Waves of Grain" motto on Indiana's license plates, it would probably surprise many Hoosiers to learn that the state ranked 48th in reliance on earnings from farming and 44th in agricultural services, fisheries and forestry, Marcus said. Just 0.1 percent of 1995 state earnings came from farming and 0.4 percent from other agricultural activity.
Not a surprise is the fact that durable goods manufacturing accounted for nearly 24 percent of the earnings of Indiana workers and business proprietors. The state ranked second nationally in terms of dependence on these products, such as home appliances and automobiles. The national figure was 11 percent, with Michigan, the "Wolverine State," leading the pack at 27 percent and Hawaii, the "Aloha State," placing 50th with 1.0 percent.
Following closely behind durable goods in Indiana was a dependence on services. While services accounted for 21.3 percent of the state's earnings, Indiana ranked 45th nationally in this sector.
Earnings from the government sector accounted for 12.4 percent of Indiana's total, but the state ranked 47th nationally in this category. With the exception of durable goods manufacturing, construction and non-durable goods manufacturing, Indiana ranked no better than 26th nationally (mining) in other major categories.
Percent figures for Indiana's other top economic sectors, as a share of total 1995 earnings, were: transportation and public utilities, 6.3 percent; wholesale activity, 5.7 percent; retail, 9.3 percent; and finance, insurance and real estate, 5.2 percent.