Report: Lack of skilled workers a challenge to building Indiana's industries

By Scott Olson, The IBJ

solson@ibj.com

Shortcomings in education stand as the biggest obstacles in building the state's manufacturing and logistics industries, according to Conexus Indiana.

Conexus, an Indianapolis-based not-for-profit that promotes manufacturing and logistics, unveiled its annual Indiana Manufacturing & Logistics Report Card this morning at a downtown breakfast. The event was co-sponsored by Indianapolis Business Journal.

The report said that a viable workforce remains Indiana's biggest long-term hurdle to future manufacturing and logistics growth, particularly because the state ranks 29th in the percentage of workers who have completed high school and 42nd in the percentage who hold a college degree.

Maintaining a reliable pipeline of skilled labor to replace workers or satisfy new business opportunities will present challenges, said Michael Hicks, director of the Ball State Center for Business and Economic Research.

The report card, compiled from research conducted by Ball State University economists, gives Indiana's manufacturing and logistics sectors high marks. The state's strong manufacturing base and its central location continue to provide competitive advantages, Hicks said.

Despite huge jobs losses in the manufacturing industry, the state continues to boast the strongest labor-intensive economy in the nation, according to the report.

"Even thought the recession has taken its toll on employment today, Indiana's business climate and ability to attract foreign investment leaves us well-positioned for future growth," the report said.

Indiana ranked in the middle of the pack in areas such as employee-benefits costs, worker productivity and innovation.

Managed by the Central Indiana Corporate Partnership along with sister initiatives BioCrossroads and TechPoint, Conexus is trying to increase enrollment in manufacturing training programs by 55 percent over the next four years.