Indiana economic index inches up in October

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The Indiana Business Research Center (IBRC) has published the final edition of its Leading Index for Indiana (LII), a monthly evaluation of the state's economy. The IBRC, a research unit of the Kelley School of Business, developed the LII based on a number of national indices. The Center has decided to stop publishing it because it has found that interest rates, one of the five components of the Index, are no longer an adequate indicator of the overall economic situation given changing Federal Reserve System policies.

For October, the LII was set at 102.2 points, up just 0.1 from September. While interest rates remained virtually unchanged, the other four components all rose slightly, at a slower rate than in previous months. As this blog reported late last month, the Institute for Supply Management (ISM) showed significant growth for the Midwest's manufacturing industry, another of the LII's components, in September, but still less than in August, and similar situations were reported in the other three drivers: auto components, home builder confidence and transportation and logistics.

As IBRC research director Timothy Slaper noted, August was a month of unexpectedly high growth in many economic sectors. For Slaper, the one area of concern is small business confidence, but organizations including the ISM and PricewaterhouseCoopers have shown that industry insiders are optimistic about the manufacturing sector's future, both in Indiana and nationwide.

Small business inventory management software can help small manufacturers overcome a still difficult situation by tracking job costs and assisting with every step of the manufacturing process, from inventory planning to sales and distribution.

Agricultural manufacturers expanding in Northern Indiana

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Two manufacturers of agricultural systems have announced plans for major facilities in Northern Indiana this week. CTB, Inc., which makes systems for the egg and grain production, hog and poultry industries, will expand its Milford headquarters, while Haldrup, an agricultural machinery manufacturer, will build a new center in Ossian.

CTB is a wholly owned subsidiary of Berkshire Hathaway. It already owns a 127-acre campus in Milford along with other manufacturing and warehouse facilities in Frankfort and Vincennes, as well as in other U.S. states and abroad. The company will invest $7.11 million in the construction of a new 45,000-square-foot facility on the Milford campus and in the upgrade of some of its existing operations. The new building will be operational by mid-2015, and CTB will continue hiring until 2017, by which time it expects to add 80 jobs.

Haldrup is a German company which is looking to match its American production with its European output. Haldrup has already begun to operate out of a leased location in Ossian, and will break ground next month on a $13 million, 24,000-square-foot facility in Ossian Industrial Park. The company will have 20,000 square feet of manufacturing space and 4,000 square feet of office and storage room. Haldrup will hire 65 employees in a variety of manufacturing, engineering and clerical positions.

The Indiana Economic Development Corporation has offered both companies a combined $1.245 million in conditional tax incentives.

"Here in the Hoosier State, home to the highest concentration of manufacturing jobs in the nation, we make things and we grow things," said Governor Mike Pence.

These and other manufacturing companies can benefit from the use of manufacturing ERP software, which is available from locally-based providers.

Central Indiana working to boost manufacturing

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A series of initiatives are being set up in an effort to bring manufacturing back to Central Indiana, a region which has lost about 40,000 jobs over the past 20 years. Last week, the cities of Anderson, Muncie and New Castle announced a partnership to create a "Manufacturing Triangle," a combined effort to earn federal grants and recover some of the lost workforce. Companies that had manufacturing plants in the area in the past include BorgWarner, Chevrolet and Delco Electronics.

Local authorities hope that by working together their cities will be able to showcase the region's potential and attract both private companies and public funding. Last year, an application for $20 million in federal aid failed, so they are relying on a show of unity to achieve better results in the future.

Also in the region, a group of Hancock County manufacturers will come together for a follow-up event to the recent Manufacturing Day. Also participating in the October 14 event will be the Rose-Hulman Institute of Technology and the regional chamber of commerce and economic development council.

"Manufacturing, especially here in Fortville and Hancock County, offers a growing number of well-compensated opportunities in engineering, production and professional services," said Tom Ryder, the CEO of Genesis Plastics Welding, one of the companies involved. "Manufacturing Day gives us a great platform on which to come together with fellow businesses to address our collective hiring and growth challenges."

Manufacturing software systems providers also contribute to the continued recovery of Indiana's manufacturing industry by providing the state's companies with the necessary tools to accurately track every step of the production process, from inventory planning to distribution. 

Indiana fishing manufacturer to expand operations

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Lurecraft, a manufacturer of soft plastics and other materials used to make fishing lures, has announced plans for a major expansion of its facilities and workforce. Lurecraft will invest $408,000 to purchase, renovate and equip a 22,000-square-foot facility in Orland, Indiana, and add 91 new jobs by 2017.

The company's current facility in nearby LaGrange is less than 7,000 square feet, and the new location, which will be operational before the end of the year, will allow Lurecraft to expand its manufacturing operations and warehouse and take its distribution services worldwide.

Lurecraft has been in business since 1966, but recently tripled its revenue thanks to some large contracts, including with reality television series Wicked Tuna and sporting goods stores Bass Pro Shops, Cabela's and Dick's Sporting Goods.

The Indiana Economic Development Corporation (IEDC) offered Lurecraft up to $350,000 in tax credits and $100,000 in training grants, conditional upon the company meeting the goals of its hiring process, which has already begun for manufacturing positions. They will also be hiring assembly and packing workers and managerial associates.

"Lurecraft noticed a need in the market and met it, helping fishermen build their own lures," said IEDC president Eric Doden in a press release. "After establishing itself, it sought growth opportunities and found them. These are hallmarks of Hoosier innovation and ingenuity. We are happy that after its initial Indiana success, they are adding new jobs and keeping their growth here at home."

Success stories like this one are what make Indiana one of America's manufacturing leaders. The state's manufacturers also benefit from the local presence of business management software providers, who can help them streamline their operations and keep track of their finances.

California manufacturer to open Indiana facility

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Plastic Package, a manufacturer of packaging containers and trays based in Sacramento, California, has announced that it will invest $1.37 million to lease and equip a 20,000-square-foot facility in La Porte, Indiana, to act as its Midwest headquarters. The company has 85 employees in California and will begin hiring for its Indiana facility this month, with an initial goal of 19 new jobs by 2016.

Plastic Package designs and manufactures packages for cosmetics, electronics and food, and was recently named one of its region's fastest-growing companies by the Sacramento Business Journal. The Indiana Economic Development Corporation has offered Plastic Package up to $100,000 in conditional tax credits which will only kick in when the company meets its hiring goals. The city of La Porte has also approved financial incentives.

"Companies like Plastic Package recognize that Indiana is a state that works," said state Secretary of Commerce Victor Smith. "What makes Indiana unique is the abundance of advantages companies find here. From our low taxes and pro-growth policies to our expanding infrastructure and talented workforce, Indiana offers an environment that lets businesses reach the next level in their strategic plans."

Indiana continues to be a national leader in the manufacturing sector. In its latest rankings, Area Development placed Indiana seventh on its list of the best states to do business, specifically on the strength of manufacturing and its geographic location, which makes it a hub for both highway and rail transportation. The state's companies in turn can benefit from locally based manufacturing ERP software providers, who can furnish them with tools to plan and track every step of the production process, from inventory to distribution.

President Obama to visit Indiana on Manufacturing Day

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President Barack Obama will be in southern Indiana on Friday to help celebrate Manufacturing Day, a nationwide event that will include about 1,500 events across the United States, according to organizers. This will be the third edition of an event designed to showcase manufacturing and attract both capital and workers to the industry.

According to a White House spokesman, President Obama will be at Northwestern University in Chicago on Thursday to talk about the recovering economy and focus on the role of America's middle class in that recovery. The following day, he will visit Millennium Steel in Princeton, the largest black-owned business in the country, and meet local authorities.

"Anytime a dignitary of this stature comes to your community, it puts a spotlight on you," said Gibson County Economic Development Corporation president Todd Mosby to the Evansville Courier & Press. "We obviously then have an opportunity to spotlight our assets, which are many. That's what I hope he takes from our community."

As this blog reported previously, Manufacturing Day was set to be a big day for Indiana even before the announcement of the President's visit. The website lists 43 events planned across the state, organized by private companies of all sizes, public institutions including county development offices and chambers of commerce, and high schools and colleges. All but a few of the events are open to the public, and they will be ongoing throughout the day.

Indiana's manufacturers have many software resources available from local companies to aid in the smooth running of their operations. Manufacturing ERP software comes with features to plan and track every step of the production process, from inventory to distribution.

Manufacturing continues to grow in Midwest

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The Institute for Supply Management placed its latest Chicago Business Barometer at 60.5 points for the month of September. The Barometer measures the Midwest's manufacturing activity based on a survey of the region's companies and sets a score out of 100. Any result over 50 indicates growth in the sector. The Barometer is down from 64.3 in August, indicating slower growth but, as this blog reported at the time, that score surprised experts because it represented an increase of more than 11 points over July.

September's numbers were buoyed by inventory growth, which is at its fastest clip in more than 41 years. Many respondents reported that they are stocking up for an expected spike in sales, which could again boost the Barometer for October. Overall, the average score for 2014's third quarter was 59.1, down from Q2's 63.7 but above Q1 and well above the 10-year average of 55.8.

"Activity levels remained buoyant in September and point to continued firm economic growth," said Philip Uglow, chief economist of Market News International Indicators, which contributed to the report. "Moreover, the record pace of stock building suggests firms are increasingly confident that things will keep improving."

Supplier deliveries are at their highest growth rate since April 2011 and prices paid reached their highest level since November 2012. Employment, production and new orders all grew significantly as well.

Manufacturing ERP software can help Midwestern companies contribute to the industry's continued good health. This software automates and streamlines a manufacturer's business processes, from planning and inventory to sales and distribution, leading to simplified operations and improved results.

Manufacturing drives dip in Indiana unemployment rate

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Indiana's jobless rate fell slightly to 5.8 percent in August, down from 5.9 percent in July, according to the latest official data from the state's Department of Workforce Development. The private sector lost 2,600 jobs during the month, but the manufacturing industry, which is the largest in the state, added 900. In total, Indiana's manufacturing has gained 20,000 jobs over the past year and 84,000 since 2009, when it reached its lowest point during the Great Recession.

"Indiana is one of the most manufacturing intensive states in the country, and when these jobs come back, they come to Indiana," said Department spokesman Joe Frank to the Indiana Daily Student.

Department commissioner Scott Sanders pointed out that Indiana's unemployment rate, and especially the addition of 56,000 total jobs to the labor force over the last 12 months, are significantly better statistics than those of most other Midwestern states. The federal jobless rate is currently at 7.2 percent.

As the manufacturing industry recovers, unemployment numbers should improve at a faster rate. Financial website 24/7 Wall Street recently reported that the sector accounts for 30.1 percent of Indiana's gross domestic product (GDP) but only 19 percent of its jobs, and the state has been taking measures to ensure that the number of qualified workers meets manufacturers' requirements in the coming years, since there is a fear that demand for skilled workers could exceed supply.

Indiana relies on its manufacturing companies, and it is important that they continue to thrive. Manufacturing ERP software helps industry businesses streamline their operations by making it easier for them to track inventory, production and sales numbers, leading to more efficient processes and better financial results.

Southern Indiana set for Manufacturing Day events

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October 3 is National Manufacturing Day this year, and Southern Indiana groups are coming together to organize events, mostly centered around job opportunities for students. One of the stated goals of Manufacturing Day is to attract skilled labor to the industry and the Southern Indiana campus of Ivy Tech Community College will host a series of conferences and exhibits to raise awareness of the state's manufacturing sector.

The day's events will take place around the Perkins Technology Center in Jeffersonville, near the Sellersburg campus. Following a 9 a.m. press conference, there will be tours of the Center and its STEM training laboratory. Local manufacturers will also be holding open houses and tours for students and other members of the public.

As this blog mentioned earlier this month, 30.1 percent of Indiana's gross domestic product (GDP) comes from the manufacturing sector, the highest rate of any state, but only 19 percent of jobs are in manufacturing. According to the Manufacturing Day website, a shortage of skilled labor is a nationwide issue for the industry, and one of the main topics the event aims to address. Among the organizers are the National Association of Manufacturers and television network Science.

Indiana's manufacturers have many software resources available from local companies to aid in the smooth running of their operations. Manufacturing ERP software comes with features to plan and track every step of the production process, from inventory to distribution. Sales data can be processed in order to develop an ideal marketing strategy. Job costing and business management software solutions are a vital tool for any manufacturing enterprise.

AP: Manufacturing sector growing steadily in Ohio

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Ohio's manufacturing industry has been growing slowly but steadily every year since 2011, according to the Associated Press. The sector has not yet reached pre-recession levels, but the recovery is very real. Even the years prior to the financial crisis were tough for manufacturing, as nearly 40 percent of Ohio's factory jobs disappeared in the 21st century's first decade, half of those between 2007 and 2009. In 2009, manufacturing lost its spot as the state's top employer to health care and social assistance, but Ohio still has the third most factory jobs in the nation, behind only California and Texas.

Now, the Ohio Department of Job and Family Services reports that the state has added 50,000 jobs over the past four years, nearly one third of those that were lost. Salaries have also grown about 11 percent on average. Among the largest companies that have moved part of their operations to Ohio are the Ford Motor Company and home appliances maker Whirlpool Corporation.

With the gubernatorial election approaching, both candidates, incumbent Republican John Kasich and Democratic challenger Ed FitzGerald, have spoken at length about their plans to continue growing Ohio's manufacturing industry over the next four years, with both stressing the importance of technical training programs.

Those programs are already in place at community colleges, and the state is reaping the benefits. In the latest edition of its "America's Top States for Business" list, CNBC ranked Ohio 18th, saying, "The Buckeye State has shaken off its Rust Belt past, offering a strong infrastructure and lower than average costs."

As the industry recovers, Ohio's companies can invest in manufacturing ERP software to help them manage every step of the process, from inventory planning to distribution.