By Marketing Alliance
Realizing 5E strategic vision yields record results in new investment, entrepreneurship, innovation, strengthened global partnerships and more.
In 2021, Indiana Secretary of Commerce Brad Chambers laid out his 5E strategic vision for growth. The plan centered on environment and quality of place, entrepreneurship, the economy of the future, energy transition and external engagement to promote Indiana’s advantages and achievements.
“It is an aspirational strategy,” Sec. Chambers said. “But we believe Indiana can and should shoot higher.”
Chambers’ confidence was validated. By the end of 2022 it was clear that Indiana was well on its way to meeting articulated objectives, breaking economic development records and transforming the Hoosier state’s economic landscape with more than a dozen major milestones.
A Record Breaking Year in Business Growth
One key 2022 milestone − 218 companies committed to locating or expanding in the state, investing more than $22.2 billion and creating up to 24,059 jobs paying an average wage of $34.71 an hour, marking the highest capital investment and annual record for average wages since the Indiana Economic Development Corporation (IEDC) was established in 2005.
A record number of startups also participated in IEDC-supported accelerators, while the Indiana Small Business Development Corporation provided no-cost support to more than 5,400 small businesses and entrepreneurs, helping them secure $110 million in capital and aiding in the launch of a record 407 new businesses. Forbes named Indiana “Best State to Start a Business,” and the state was identified as a “Global Top 40 Emerging Ecosystem” by Startup Genome.
“We’re prioritizing the continued growth of our entrepreneurial ecosystem, knocking down hurdles for innovators,” Sec. Chambers says.
Altogether, the IEDC in partnership with local communities secured 71 commitments from businesses to establish new operations, whether startup or newly located, with a planned investment of approximately $15.5 billion and the projected creation of more than 11,900 jobs.
For another state, those results might be considered the capstone of a successful year, but for the Hoosier state in 2022, they were only the start in building Indiana’s economy of the future.
Laying the Groundwork for Increased Innovation
In 2022, Indiana strengthened its leadership in microelectronics research and manufacturing with the establishment of the new Accelerating Microelectronics Production and Development (AMPD) Task Force, and with two major announcements − MediaTek’s partnership with Purdue University to create a new semiconductor design center, and SkyWater Technology’s plans to establish a $1.8 billion semiconductor R&D and production facility in West Lafayette.
After Governor Eric Holcomb signed Senate Enrolled Act 361, the state was also able to modernize its economic development tool kit, creating Innovation Development Districts, which allow the state to capture property, income and sales tax for identified economic development needs, providing the speed and flexibility needed to attract large-scale projects in future-focused industries.
With those same goals in mind, Indiana announced its new LEAP Innovation and Research District in Boone County in May 2022. An SSI-certified 9,000-acre site in Boone County, LEAP-Lebanon offers diverse settings including megasites, advanced manufacturing, mixed-use and corporate campus. Already, the district has attracted a major anchor investor, Eli Lilly and Company, which announced a $2.1 billion investment to establish two new manufacturing sites at the LEAP location to support the company’s global pharmaceutical production.
The Regional Economic Acceleration and Development Initiative (READI) designated $500 million to accelerate transformative quality of life and quality of place projects. Another milestone was the full phase-in of Indiana’s Regional Economic Acceleration and Development Initiative (READI). This nationally recognized program designated $500 million to 17 regions across the state to accelerate transformative shovel-ready projects. Expected to attract talent and improve quality of life, READI projects are on track to yield a total investment of nearly $8 billion from public, private and nonprofit dollars even as they enhance the quality of Indiana’s regions now and in the future.
Also in 2022, Indiana, which Canary Media ranked 4th in the production of clean energy, secured more than $3 billion in investments in electric vehicle and EV battery production. The investments included Stellantis and Samsung SDI’s joint venture in a next-generation battery manufacturing facility in Kokomo and General Motors’ $491 million investment to upgrade its metal plant in support of the company’s EV production. And Elanco Animal Health, one of the world’s leading independent animal health companies, broke ground on a new global headquarters near downtown Indianapolis.
Leading the Global Energy Transition
Indiana’s commitment to clean energy went beyond EV production in 2022, with 5,104 megawatts of projects under development, including collaborative initiatives like Mammoth Solar. Led by Israel-based Doral Renewables, the project is expected to eventually bring 1.3 gigawatts of clean energy to the northwest Indiana region and beyond.
In addition to the state’s regional Midwest partnership to create a hydrogen hub, Indiana also assumed a global leadership role in energy transition. Gov. Holcomb and Sec. Chambers participated in the United Nations Climate Change Conference of the Parties (COP27), where Gov. Holcomb delivered two keynote addresses that highlighted Indiana’s emerging clean energy infrastructure and the state’s growing EV industry.
Engaging with the World. Enhancing Indiana’s Global Reputation
Sharing Indiana’s story created other significant global achievements, most prominently the inaugural Indiana Global Economic Summit held in Indianapolis in May 2022. The summit brought together 900 registrants, 30 international delegations and 76 featured speakers in an event that advanced key discussions and international cooperation for building the economy of the future.
Gov. Holcomb and Sec. Chambers fostered relationships abroad with global trips to countries including Taiwan, the Republic of Korea, Egypt, Germany, Israel, Sweden, Switzerland and the United Kingdom.
Foreign direct investment continued to play a growing role in Indiana’s success, with 32 foreign-owned businesses committing to locating or expanding in Indiana for a total investment of $7.25 billion (an increase of 104 percent from 2021), creating more than 6,400 jobs, accounting for 26 percent of the total new jobs committed in 2022.
Partnerships were also key to enhancing Indiana’s global profile. The IEDC collaborated with the Indy Autonomous Challenge to showcase the state at the annual Consumer Electronics Show (CES) in Las Vegas, spotlighting the world’s most advanced autonomous racecar and Indiana’s commitment to shaping the future of mobility. The IEDC also sponsored the 8th annual Fast Company Innovation Festival in New York City, leveraging the event to promote the state’s future-focused economy and a new partnership with Avalanche Andretti Formula E to increase global awareness of Indiana’s clean energy technology leadership.
Moving into the Future with 5E Momentum
After a year of record-breaking achievement, Indiana heads into 2023 with added momentum and the framework of 5E guiding and fueling growth. Sec. Chambers says, “Indiana is for winners, and this is just our first lap.” The results of 2022 suggest that Indiana is already winning the future.