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The Indianapolis Economy: E-Shopping, Manufacturing, and More

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In our recent study of e-shopping’s explosion over the past 10 years or so, Indiana caught our attention as the third-highest state in the nation for job growth. E-shopping has bloomed from a mere 670 job to nearly 6,000 since 2002 — an impressive 780% upswing.

This is due largely to the industry’s heavy presence in Indianapolis-Carmel specifically, which ranks 16th of all metropolitan statistical areas nationwide for concentration (nearly four times the national average in 2013) and where e-shopping promises to keep climbing. Amazon, for example, is boosting staff in 17 U.S. warehouses with more than 5,000 full-time jobs — and Indianapolis is part of that strategy.

Overall, the Indianapolis metro area’s job growth since 2009 has been impressive. Since 2009, jobs have increased 6.5%, which ranks 11th among the 50 largest metro areas. So other than e-shopping, which industries are growing? And how do these industries’ average earnings in Indy compare to national average earnings?

Industries on the Rise

To find the top growing industries in Indianapolis, we focused on the industries with a minimum of 1,000 jobs in the metro area in 2013.

Below are the industries that ranked highest for percent growth. E-shopping is the fastest-growing industry in Indianapolis (569%), but notice that manufacturing (NAICS 33) and administrative & support services (NAICS 56) also show up a number of times in this list of detailed industries.

NAICS Code Description 2009 Jobs 2013 Jobs Change % Change 2009 National LQ 2013 National LQ 2013 Avg. Earnings Per Job
Source: QCEW Employees, Non-QCEW Employees & Self-Employed – EMSI 2013.3 Class of Worker
454111 Electronic Shopping 698 4,667 3,969 569% 1.03 4.52 $39,349
561312 Executive Search Services 317 1,140 823 260% 1.39 3.54 $36,585
621420 Outpatient Mental Health and Substance Abuse Centers 467 1,217 750 161% 0.41 0.9 $46,914
561440 Collection Agencies 520 1,104 584 112% 0.53 1.18 $46,826
561311 Employment Placement Agencies 913 1,785 872 96% 0.68 1 $37,921
517210 Wireless Telecommunications Carriers (except Satellite) 531 1,030 499 94% 0.44 1.01 $83,117
236210 Industrial Building Construction 1,978 3,798 1,820 92% 1.81 3.4 $116,943
511140 Directory and Mailing List Publishers 652 1,231 579 89% 2.48 6.23 $82,510
336312 Gasoline Engine and Engine Parts Manufacturing 754 1,394 640 85% 3.17 4.49 $59,574
561320 Temporary Help Services 17,411 32,021 14,610 84% 1.51 1.86 $27,350
713990 All Other Amusement and Recreation Industries 635 1,147 512 81% 0.69 1.08 $18,486
331521 Aluminum Die-Casting Foundries 647 1,132 485 75% 7.12 10.24 $67,234
336360 Motor Vehicle Seating and Interior Trim Manufacturing 615 1,008 393 64% 2.41 2.66 $65,750

What about the industries that have added the greatest number of total jobs? Not surprisingly, the biggest boom is in temporary help services (14.6K new jobs), but also check out the growth in the computer world (NAICS 54, close to 4.5K new jobs). And we can’t ignore the food-service sector: limited-service restaurants (5.2K new jobs), full-service restaurants (3.6K new jobs), and food service contractors (1.2K new jobs). It appears that in Indianapolis, people may indeed be eating their way out of the recession.

NAICS Code Description 2009 Jobs 2013 Jobs Change % Change 2009 National LQ 2013 National LQ 2013 Avg. Earnings Per Job
Source: QCEW Employees, Non-QCEW Employees & Self-Employed – EMSI 2013.3 Class of Worker
561320 Temporary Help Services 17,411 32,021 14,610 84% 1.51 1.86 $27,350
722211 Limited-Service Restaurants 26,279 31,499 5,220 20% 1.21 1.28 $14,627
621111 Offices of Physicians (except Mental Health Specialists) 15,002 19,241 4,239 28% 1.04 1.22 $110,103
454111 Electronic Shopping 698 4,667 3,969 569% 1.03 4.52 $39,349
622110 General Medical and Surgical Hospitals (Private) 32,868 36,722 3,854 12% 1.2 1.27 $62,767
722110 Full-Service Restaurants 29,638 33,218 3,580 12% 1.05 1.05 $18,820
541512 Computer Systems Design Services 4,741 7,151 2,410 51% 1.06 1.27 $93,137
541511 Custom Computer Programming Services 3,594 5,509 1,915 53% 0.83 1.05 $91,600
236210 Industrial Building Construction 1,978 3,798 1,820 92% 1.81 3.4 $116,943
484121 General Freight Trucking, Long-Distance, Truckload 8,968 10,564 1,596 18% 2.4 2.69 $53,272
722310 Food Service Contractors 2,789 4,003 1,214 44% 1.02 1.25 $21,861
524210 Insurance Agencies and Brokerages 6,036 7,213 1,177 19% 1.13 1.19 $67,255
551114 Corporate, Subsidiary, and Regional Managing Offices 10,588 11,675 1,087 10% 0.95 0.92 $98,426

Overall, it’s an interesting mix of low- and high-paying jobs. The average earnings per job (far right column) can be a little misleading since it’s just an average; some workers in the industry (think high-level managers) could make triple these amounts while others (janitors) might earn just a third. Nevertheless, temp and food services are low-paying sectors, while computers, hospitals, and corporate managing offices are on the high side. In Indianapolis, it seems, not all job growth is created equal.

The chart below shows the contrast between the average earnings of these fast-growing in industries in Indianapolis and those of the nation. Local industry wages are lower in all but two industries (long-distance general freight trucking and offices of physicians), which could have something to do with the fact that Indy’s cost of living is 10.2% lower than the U.S. average.

Source: QCEW Employees, Non-QCEW Employees & Self-Employed – EMSI 2013.3 Class of Worker

As for the most concentrated industries, we’ve dropped the filter for 1,000-plus jobs in 2013 and looked instead at the jobs that have not only the highest concentration in Indianapolis but also real growing concentration. Thus, our results have picked up some smaller industries (automatic vending machine manufacturing, for example) with crazy jumps in concentration (zero to 4.77 LQ). (An industry’s concentration is simply its specialization or uniqueness to a region, and is measured by location quotient. The national average is 1.00. You can read more here.)

Manufacturing is the biggest story when it comes to compelling industries for Indianapolis. The most concentrated industries are pesticide & other agricultural chemical manufacturing (22.74), hardware manufacturing (10.82), and aluminum die-casting foundries (10.24). In fact, 14 out of the 22 most unique and compelling jobs in Indianapolis have to do with manufacturing (NAICS 33). E-shopping isn’t as high, though it did more than quadruple in concentration since 2009 (from 1.03 to 4.52).

NAICS Code Description 2009 Jobs 2013 Jobs Change % Change 2009 National LQ 2013 National LQ 2013 Avg. Earnings Per Job
Source: QCEW Employees, Non-QCEW Employees & Self-Employed – EMSI 2013.3 Class of Worker
325320 Pesticide and Other Agricultural Chemical Manufacturing 1,748 2,113 365 21% 19.36 22.74 $147,675
332510 Hardware Manufacturing 1,556 1,569 13 1% 9.94 10.82 $82,148
331521 Aluminum Die-Casting Foundries 647 1,132 485 75% 7.12 10.24 $67,234
336412 Aircraft Engine and Engine Parts Manufacturing 4,925 5,032 107 2% 9.48 9.83 $128,225
315292 Fur and Leather Apparel Manufacturing 50 85 35 70% 6.71 9.39 $38,506
221121 Electric Bulk Power Transmission and Control 1,390 1,395 5 0% 8.34 8.66 $150,650
327993 Mineral Wool Manufacturing 634 804 170 27% 6.14 7.77 $79,534
333210 Sawmill and Woodworking Machinery Manufacturing 163 169 6 4% 5.56 6.27 $72,762
511140 Directory and Mailing List Publishers 652 1,231 579 89% 2.48 6.23 $82,510
611410 Business and Secretarial Schools (Private) 419 458 39 9% 4.28 5.32 $69,987
336991 Motorcycle, Bicycle, and Parts Manufacturing 148 396 248 168% 1.64 5.31 $45,705
333995 Fluid Power Cylinder and Actuator Manufacturing 450 589 139 31% 4.67 5.15 $66,267
339942 Lead Pencil and Art Good Manufacturing 126 132 6 5% 3.79 5.06 $60,962
323113 Commercial Screen Printing 1,865 2,185 320 17% 4.64 4.78 $38,265
333311 Automatic Vending Machine Manufacturing 0 93 93 0 4.77 $60,339
454111 Electronic Shopping 698 4,667 3,969 569% 1.03 4.52 $39,349
336312 Gasoline Engine and Engine Parts Manufacturing 754 1,394 640 85% 3.17 4.49 $59,574
493120 Refrigerated Warehousing and Storage 1,140 1,490 350 31% 3.73 4.48 $53,930
332991 Ball and Roller Bearing Manufacturing 714 838 124 17% 4.12 4.35 $91,567
336391 Motor Vehicle Air-Conditioning Manufacturing 111 184 73 66% 2.95 4.19 $59,956
333613 Mechanical Power Transmission Equipment Manufacturing 294 320 26 9% 3.36 3.58 $69,619
562112 Hazardous Waste Collection 58 229 171 295% 0.93 3.57 $68,822

Conclusion

Overall, e-shopping isn’t the only industry doing good things in Indianapolis. Manufacturing, especially, may not have as dramatic a story as some of the other industries when it comes to skyrocketing new jobs, but it remains a compelling player for the region with its hearty concentration.

Data shown in this post comes from Analyst, EMSI’s web-based labor market data and analysis tool. To look at data for your region or for more information on EMSI, contact Rob Sentz ([email protected]). Follow EMSI @DesktopEcon


Source: http://www.economicmodeling.com/2013/08/08/the-indianapolis-economy-e-shopping-manufacturing-and-more/


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