Economic Impact Workshop Overview of Porter & La Porte County Economies October 6, 2011 Dr. Derek...

Economic Impact Workshop

Overview of Porter & La Porte County Economies

October 6, 2011

Dr. Derek Bjonback, Associate ProfessorCollege of Business


DEMOGRAPHIC PROFILE

United La Porte Porter

States Indiana County County

Population (2010) 309,050,816 6,445,295 111,085 164,304

Population Growth, 1990-2010 24.2% 16.3% 3.8% 27.4%

Per Capita Personal Income (2009 dollars) 39,635 34,022 30,199 41,110

Poverty Rate (2009) 14.3% 14.4% 14.5% 7.6%

Percent Population with a Bachelor's Degree 27.5% 21.9% 16.6% 24.1%

African American alone (percent of population) 12.9% 9.2% 10.6% 3.3%

White alone (percent of population) 79.6% 87.8% 87.0% 94.1%

Hispanic (percent of population) 15.1% 5.1% 4.4% 6.7%


ECONOMIC PROFILE

United La Porte Porter

States Indiana County County

Manufacturing (share of all jobs) 9.0% 16.5% 17.9% 16.3%

Average Manufacturing wage (2009 dollars) 57,580 54,412 46,117 59,078

Finance and Insurance (share of all jobs) 4.3% 3.4% 2.0% 2.0%

Average Wage, Finance and insurance (2009 dollars) 84,461 54,267 42,557 43,353

Share of Workers living in county, and working elsewhere n/a 5.0% 26.0% 43.8%

Labor Force/Population 0.498 0.486 0.459 0.496


0

0.2

0.4

0.6

0.8

1

1.2Ja

n-01

Jun-

01

Nov

-01

Apr

-02

Sep-

02

Feb-

03

Jul-0

3

Dec

-03

May

-04

Oct

-04

Mar

-05

Aug

-05

Jan-

06

Jun-

06

Nov

-06

Apr

-07

Sep-

07

Feb-

08

Jul-0

8

Dec

-08

May

-09

Oct

-09

Mar

-10

Aug

-10

Jan-

11

Jun-

11

US

Indiana

La Porte

Porter

EMPLOYMENT: JANUARY 2001 = 1.0

Source : US Department of Labor, Bureau of Labor Statistics


0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0Ja

n-08

Mar

-08

May

-08

Jul-0

8

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Porter

La Porte

Indiana

US

Source: US Department of LaborBureau of Labor Statistics

UNEMPLOYMENT RATES


0

50

100

150

200

250

300

350

400

450

500

Porter

La Porte

Indiana

US

AVERAGE WEEKLY WAGES IN DOLLARS CORRECTED FOR COST OF LIVING

Sources: US Department of L abor, Bureau of Labor Statistics,"Quarterly Census of Employment and Wages", and Federal ReserveBank of St. Louis, "National Economic Trends", consumer price indexby quarter


0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Porter

La Porte

Indiana

AVERAGE WEEKLY WAGE: PERCENT OF THE U.S. AVERAGE

Source: US Department of Labor, Bureau of Labor Statistics."Quarterly Census of Employment and Wages"


GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY

Annual Annual

Change Change Average Average Growth

2001-2011 2001-2007 2001-2011 2001-2007 2010-2011

-908 123 Construction -4.44% 1.01% -14.45%

-2701 -1176 Manufacturing -2.78% -1.89% 5.85%

-953 -541 Trade, Transportation & Utilities -1.09% -1.00% -1.12%

-338 -272 Financial Activities -2.12% -2.63% -0.26%

-433 -127 Information -8.15% -3.12% -30.71%

-576 -314 Professional & Business Services -2.10% -1.81% -7.55%

-878 292 Private Education & Health Services -1.45% 0.86% -11.98%

205 427 Leisure & hospitality 0.46% 1.46% -2.73%

-101 -58 Other Services -0.70% -0.64% 1.23%

-57 -22 Federal Government -2.53% -1.62% -20.55%

-443 -262 State Government -1.73% -1.62% -2.01%

-11 -29 Local Government -0.01% -0.10% 1.99%

649 -87

-6545 -2046 Total -1.48% -0.74% -0.87%


GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY

Annual Annual

Average Average Growth

2001-2011 2001-2007 2010-2011

Construction -4.44% 1.01% -14.45%

Manufacturing -2.78% -1.89% 5.85%

Trade, Transportation & Utilities -1.09% -1.00% -1.12%

Financial Activities -2.12% -2.63% -0.26%

Information -8.15% -3.12% -30.71%

Professional & Business Services -2.10% -1.81% -7.55%

Private Education & Health Services -1.45% 0.86% -11.98%

Leisure & hospitality 0.46% 1.46% -2.73%

Other Services -0.70% -0.64% 1.23%

Federal Government -2.53% -1.62% -20.55%

State Government -1.73% -1.62% -2.01%

Local Government -0.01% -0.10% 1.99%

Total -1.48% -0.74% -0.87%

Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"


EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY

Change Change

2001 2007 2011 2001-2007 2001-2011

Construction 3,863 4,775 3,455 912 -408

Manufacturing 10,821 9,164 8,968 -1,657 -1,853

Trade, Transportation & Utilities 10,726 11,773 10,746 1,047 20

Financial Activities 1,818 1,864 1,608 46 -210

Information 668 469 449 -199 -219

Professional & Business Services 3,613 4,620 3,799 1,007 186

Private Education & Health Services 5,750 8,385 10,106 2,635 4,356

Leisure & hospitality 5,323 6,066 5,757 743 434

Other Services 2,069 2,306 2,504 237 435

Federal Government 449 407 421 -42 -28

State Government 363 283 201 -80 -162

Local Government 7,748 6,937 6,535 -811 -1,213

Total 53,508 57,283 54,620 3,775 1,112



GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY

Annual Annual

Average Average Growth

2001-2011 2001-2007 2010-2011

Construction -0.26% 3.79% -6.24%

Manufacturing -1.77% -2.67% 1.10%

Trade, Transportation & Utilities 0.10% 1.59% 0.02%

Financial Activities -1.17% 0.44% 0.19%

Information -3.61% -5.29% 0.67%

Professional & Business Services 0.78% 4.41% -9.18%

Private Education & Health Services 5.92% 6.67% 4.56%

Leisure & hospitality 0.81% 2.20% -3.24%

Other Services 2.02% 1.95% 5.65%

Federal Government -0.62% -1.61% 0.72%

State Government -5.39% -3.62% -9.46%

Local Government -1.49% -1.60% 4.95%

Total 0.24% 1.16% 0.30%



HOUSEHOLD EARNINGS (IN THOUSANDS OF DOLLARS)

La Porte County Average Average Annual

Change Annual Change Percent Change

2009 2001-2009 2001-2009 2001-2009

Farm earnings 33,661 14,728 1,841 22.45%

Nonfarm earnings 2,115,395 259,821 32,478 1.68%

TOTAL EARNINGS 2,149,056 274,549 34,319 1.76%

Average Average Annual

Porter County Change Annual Change Percent Change

2009 2001-2009 2001-2009 2001-2009

Farm earnings 17,238 7,430 929 42.69%

Nonfarm earnings 2,980,040 555,908 69,489 2.78%

TOTAL EARNINGS 2,997,278 563,338 70,417 2.81%

Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income


0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

La Porte

Porter

NON FARM HOUSEHOLD EARNINGS FROM WORK(IN THOUSANDS OF DOLLARS)

Source: US Department of Commerce, Bureau of Economic AnalysisLocal Area Personal Income


0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2001 2002 2003 2004 2005 2006 2007 2008 2009

La Porte

Porter

REAL NON-FARM HOUSEHOLD EARNINGS FROM WORK(CORRECTED FOR INFLATION, thousands of 1982-1984 DOLLARS)

Sources: US Department of Commerce, Bureau of Economic AnalysisLocal Area Personal Income; and US Department of Labor, Bureau ofLabor Statistics, Consumer Price Index.


0

5000

10000

15000

20000

25000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

La Porte

Porter

REAL FARM EARNINGS (CORRECTED FOR INFLATION, thousands of 1982-1984 DOLLARS)

Sources: US Department of Commerce, Bureau of Economic Analysis,Local Area Personal Income; US Department of Labor, Bureau ofLabor Statistics, Consumer Price Index


LA PORTE COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, 2001-2009

(THOUSANDS OF DOLLARS)

Change Avg Annual Change

Top Five 2001-2009 2001-2009

Local government 53,221 6,653

Social assistance 53,010 6,631

Heavy and civil engineering construction 21,642 2,705

Nursing and residential care facilities 21,422 2,678

Food manufacturing 20,340 2,543

Bottom Five

Motor vehicles, bodies and trailers, and parts manufacturing -22,858 -3,810

Fabricated metal product manufacturing -11,800 -1,475

Warehousing and storage -9,845 -1,231

Motor vehicle and parts dealers -8,825 -1,103

Publishing industries, except Internet -7,834 -979



PORTER COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, 2001-2009

(THOUSANDS OF DOLLARS)

Change Avg Annual Change

Top Five 2001-2009 2001-2009

Ambulatory health care services 129,384 16,173

Professional, scientific, and technical services 59,104 7,388

Other services, except public admin 45,336 5,667

Educational services 37,792 4,724

Administrative and support services 33,072 4,134

Food services & drinking places 25,088 3,136

Bottom Five

Motor vehicles and parts dealers -9,376 -1,172

Accommodation -6,768 -846

Printing and support activities -6,344 -793

Real estate -5,411 -773

Gasoline stations -3,672 -459


Economic Impact WorkshopLA PORTE COUNTY: TOP TWENTY EXPORTING INDUSTRIES

(Ranked by Expenditure)

Export Base

Rank Top Twenty Expenditure

(millions of $s)

1 Air and gas compressor manufacturing 353.32 Other petroleum & coal prod. Manufacturing 347.13 Ferrous metal foundries 344.34 Amusement parks, arcades, & gambling indust. 226.85 * Employment & payroll only (state & local govt, education) 186.7

6 * Employment and payroll only (state & local govt, non-education) 181.57 Cookie, cracker, and pasta manufacturing 147.78 Motor vehicle parts manufacturing 137.29 Private hospitals 115.4

10 Transport by truck 112.111 Heating equipment (except warm air furnaces) manufacturing 98.812 Industrial gas manufacturing 95.713 All other basic inorganic chemical manufacturing 94.914 Other general purpose machinery manufacturing 86.615 Soft drink and ice manufacturing 79.416 Air purification and ventilation equipment manufacturing 78.317 Wholesale trade businesses 78.218 Transport by rail 70.019 Food services and drinking places 69.820 Electric power generation, transmission, and distribution 68.7

Source: IMPLAN Model for La Porte County 2008.

Economic Impact WorkshopPORTER COUNTY: TOP TWENTY EXPORTING INDUSTRIES

(Ranked by Expenditure)

Export Base

Rank Top Twenty Expenditure

(millions of $s)

1 Iron and steel mills and ferroalloy manufacturing 5,602.82 State and local government, education 231.63 All other crop farming 132.94 Ball and roller bearing manufacturing 108.25 Pharmaceutical preparation manufacturing 100.9

6 Nonferr. metal (ex.copper &aluminum) rolling, drawing, extruding & alloying 99.57 Construction of other new nonresidential structures 98.08 Steel product manufacturing from purchased steel 93.19 Coating, engraving, heat treating and allied activities 92.0

10 Motor vehicle parts manufacturing 91.611 State and local government - except education 91.012 Construction of new nonresidential commercial and health care structures 80.813 Ground or treated mineral and earth manufacturing 74.814 Synthetic dye and pigment manufacturing 71.215 Transport by truck 68.616 Private colleges, universities, and professional schools 67.217 Plastics packaging mat. & unlaminated film & sheet manuf. 62.818 Other industrial machinery manufacturing 60.619 Valve and fittings other than plumbing manufacturing 59.320 Wholesale trade businesses 56.7

Source: IMPLAN Model for Porter County 2008.


Summary Remarks

The region and state did not share completely in the national economic expansion of 2001 to 2008.

The national downturn of 2008 and 2009 hit the region and state so hard, that employment has declined to below 2001 levels, but recovery is on the way.

The Porter County economy appears to have a platform of service industries, including health care to compliment manufacturing in the economic recovery.

La Porte County has sustained losses broadly throughout the economy, including manufacturing and service based industries. Sources of strength include components of manufacturing (machinery) and non residential construction.

Both Porte and La Porte counties have realized very large, annual double digit growth rates in farm earnings from 2001 to 2009. Will this growth trend continue?

Economic Impact Workshop Overview of Porter & La Porte County Economies October 6, 2011 Dr. Derek...

Documents

Transcript of Economic Impact Workshop Overview of Porter & La Porte County Economies October 6, 2011 Dr. Derek...