When it comes to reliance on manufacturing to bolster the economy, Indiana tops all 50 states. However, a new index from Bloomberg shows Indiana ranks second to last for overall economic diversity.
The index says 28 percent of the state’s economy depends on factories and plants. “Indiana maintains the highest employment share in manufacturing in the U.S.,” said Ryan Brewer, associate professor of finance at Indiana University.
The index, according to Bloomberg, can be an indicator of which states, workers, and government tax coffers are protected from or exposed to sudden swings in a single industry.
Does that heavy reliance on manufacturing put the Hoosier state in a difficult position during a down economy? Brewer told the publication that a state economy heavy in manufacturing is an advantage when the U.S. economy is strong. But the current conflicts in U.S. trade policy creates uncertainty. The IU economist also says the opioid crisis has tightened the state’s labor market.
The Bloomberg publication shows Indiana had the smallest portion of GDP from government at nine percent.
You can connect to the index by clicking here.