Automotive Industries Investing in Indiana Manufacturing
Indiana has always been a proud manufacturing state, and they are also one of the states that are leading the manufacturing rebound in the United States. With almost $2 billion coming into the state through investments by manufacturing companies, it is clear to see that Indiana is on the forefront of states that have an economy that is heavy on the manufacturing industry.
With almost 17% of the state’s workforce being employed by the manufacturing sector and 30% of the state’s gross product coming from manufacturing, Indiana is leading every other state in these categories. And that trend is looking like it will continue as more and more companies invest in doing business within the state. Three automotive companies, Rolls-Royce, Subaru, and General Motors have invested $600 million, $140 million, and $1.2 billion respectively in Indiana manufacturing.
Rolls-Royce’s investment is the company’s largest United States investment in ten years and is being used to overhaul their facilities that are currently in place in Indianapolis. Rolls Royce currently employs around 4,000 people at the facility and more than half are in production and engineering.
Subaru’s investment is for the expansion of their plant in Lafayette that will create 1,200 new jobs with an average pay of $17 per hour in order to meet production goals. With Subaru sales continuing to increase in North America and the Lafayette plant being the only production facility outside of Japan, this growth is projected to increase.
General Motors investment of $1.2 Billion is used for upgrading their full-size pickup truck plant in order to improve the overall competiveness of the plant in assembling light and heavy duty models. This investment is just part of the $5.4 Billion the company has said it would invest in their United States facilities. The plant in Fort Wayne currently employs around 4,000 employees and this investment ensures that GM will stick around for years to come in the Hoosier state.
Honda just recently started producing the 2016 Civic out of an Indiana production plant; the company spent over $900 million in investments in the plant over the last seven years and has already seen returns of $97 million with the latest design. The facility in Greensburg, Indiana opened in 2008 and currently employs over 2,000 people and makes around 250,000 vehicles in a year.
It’s not just automotive companies that are looking to do business in the state, Indiana has also attracted out of country manufactures to relocate their businesses to Indiana. One Japanese company will locate their United States headquarters in Columbus, Indiana. This $3 million investment will bring an increase in jobs to the area and many other jobs as the location needs additional construction and renovation.
The manufacturing sector in Indiana has contributed 5.8 to the 9.8% growth of Indiana’s gross domestic product, which is a rate that is almost double the rest of the country. With over 30% of Indiana’s GDP coming from the manufacturing sector it is clear to see why things are looking so positive for the industry in the Hoosier State.