A snapshot of where Indiana ranks nationally in 60 key economic measurements was released today (May 23rd) by the Indiana Chamber of Commerce. The report includes revealing outcomes both for areas in which Indiana is doing well – regulatory freedom and small business survival, for example – and where improvement needs to take place – such as post-secondary education attainment and the state’s poverty rate.
This report is the next step in Indiana Vision 2025, a comprehensive, multi-year initiative to provide leadership and a long-range economic development action plan for Indiana. It marks the start of the Indiana Chamber examining key metrics at two-year intervals through 2025, covering progress in four critical areas: Outstanding Talent, Attractive Business Climate, Superior Infrastructure and a Dynamic and Creative Culture.
The overriding message, says Indiana Chamber President and CEO Kevin Brinegar, is that the state cannot afford to rest on recent laurels like the education reforms of 2011 and instituting a right-to-work law in 2012. "We can’t be fatigued by the effort or take a break on improving Indiana. Other states and countries are moving at a fast pace and we need to remain competitive in order to have a prosperous environment for our citizens."
And in areas where Indiana is currently lagging, change will not happen overnight, Brinegar cautions. "It will take a robust effort by like-minded groups to affect both policy and societal changes that impact these metrics. Significant advances by Indiana also can be undone through inattention, poor policy choices or the dramatic actions of other states and nations."
While passing good public policies, where appropriate, are one element of this larger picture, Brinegar asserts the key is implementation. “There has been no better example of that than education reforms. Too much time, money and effort has been spent the last two years on efforts to reverse 2011 achievements (school choice voucher program, charter school expansion) rather than ensuring these are implemented at the highest level to assist Hoosier students and families.
"Our No. 1 priority has to be investing in the education, knowledge and skills of Hoosiers. Our goal is to achieve prosperity and cultivate a world-class environment full of opportunities," he concludes.
When it comes to the report card’s specific ratings, the most progress has been made in building an Attractive Business Climate. Indiana is at the very top for the regulatory freedom index and in the top five of the small business survival index. (Separately, Indiana’s business climate was recently ranked fifth best nationally and best in the Midwest by Chief Executive magazine).
Indiana has also enjoyed advances regarding its Dynamic and Creative Culture – most notably jumping into the top 10 for business research and development.
Further work, however, is needed in producing Outstanding Talent. More Hoosiers attaining associate’s degrees and higher plus focusing on early education are among the keys. A disturbing placement is Indiana’s poverty rating. Indiana has gone from having the 12th lowest poverty rate in the nation in 2000, to 32nd in 2005 and now 35th in 2011.
"This illustrates the sad reality for some of our citizens and emphasizes why workforce training, sending children to pre-school, completing high school and beyond are so vital. Only when we put greater focus on these activities will we have a significant impact on moving people out of poverty," Brinegar surmises.
Meanwhile, Indiana’s Superior Infrastructure driver has been an advantage for the state, but the dynamic surrounding road funding and energy costs is changing. Case in point: Indiana is trending in the wrong direction for affordable electricity, dropping to 19th in 2011 (was 11th in 2000 and 12th in 2005).
A summary of Indiana’s top and bottom rankings, the biggest gains and drops, plus the goals established for each is available at www.indianachamber.com/2025. The report card, the Indiana Vision 2025 plan and additional information are also available at that site.
About the report and metrics:
The Indiana Vision 2025 report card is a baseline measure. There are no grades assigned yet – it is a starting point for the state to measure itself. "Keeping score is vital both in knowing where the state really is on key measurements and how we compare with other states and, in some cases, internationally," notes Brinegar.
Some metrics are very straightforward (percent of population with various degrees, smoking and obesity rates). Others are less direct, but still are indicative of challenges or current strong performances (such as in energy production and use, as well as legal and regulatory environments). It can take a while for results to be reflected, whether its education reforms, more venture capital sources, etc. These statistics are the latest available, but they sometimes lag several years.
About Indiana Vision 2025:
Indiana Vision 2025 is the follow-up to Economic Vision 2010, also coordinated by the Indiana Chamber. Indiana Vision 2025 was developed in 2010-2011 by a 24-person statewide task force. Its 33 goals in four driver areas are all intended to accomplish the mission that: “Indiana will be a global leader in innovation and economic opportunity where enterprises and citizens prosper.” The plan was released in early 2012.
Six forums in the summer of 2012 brought the original plan to the local level, allowing regional participants to provide input on the priorities and opportunities within their areas. A statewide summit in December 2012 focused on the goals that were highlighted in those forums. An eight-page summary of these activities and progress made to date was released in February 2013.
Source: Indiana Chamber of Commerce