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