$22B in 2022: Unprecedented Investment Powers Indiana's Economy of the Future

Dec 15, 2022

$22B in 2022: Unprecedented Investment Powers Indiana's Economy of the Future

Indiana Governor Eric J. Holcomb and Secretary of Commerce Brad Chambers today announced the end of a sixth consecutive record-breaking year for economic development in Indiana. In 2022, 218 companies committed to locate or expand in Indiana, investing more than $22.2 billion (+250% from 2021) in their operations and creating 24,059 new jobs with an average wage of $34.71/hour (+21.8% from 2021 and +27.6% the state’s average wage). This marks the highest capital investment and annual record for average wages since the Indiana Economic Development Corporation (IEDC) was established in 2005.

“Indiana’s economy is firing on all cylinders,” said Gov. Holcomb. “These investment and job commitments will transform our high-tech industries and ensure that Hoosiers are at the forefront of the 21st century economy. Our strategic focus on advancing entrepreneurship, innovation and quality of place is igniting our neighborhoods and communities statewide, providing more opportunities for Hoosiers and their families to thrive”

“Indiana continues to lead in building the economy of the future,” said Sec. Chambers. “Our strategic initiatives and focus is attracting first-of-their-kind investments from innovative businesses around the world while enabling growth and innovation in future-looking industries like semiconductor fabrication and design, electric vehicles and batteries, life sciences, agbiosciences and industry 4.0. These efforts will pay dividends for generations to come, creating high-value, high-quality jobs in our communities.”

These economic development figures are one component of Sec. Chambers’ comprehensive, economic roadmap designed to ensure that Indiana is at the center of the future, global economy. The 5E strategic vision is a focus on built environment and quality of place, building an economy of the future with next-gen industry, leaning into entrepreneurship, creating a plan to navigate and lead in the energy transition, and promoting Indiana’s advantages and accomplishments through external engagement.

In 2022, the 5E strategic initiatives delivered a number of successes for the state, including attracting and enabling growth and innovation in future-focused industries, modernizing economic development toolkits, catalyzing investments in quality of place and quality of life, and bolstering Indiana’s international partnerships and global reputation.

5E successes for 2022 include:

Environment:

INVESTING IN INDIANA’S BUILT ENVIRONMENT WITH READI: The nationally recognized Indiana Regional Economic Acceleration and Development Initiative (READI) fully kicked off, with quality of place projects and programs now moving forward across the state. The initiative has designated $500 million to 17 regions across the state representing all of Indiana’s 92 counties to accelerate shovel-ready projects and programs that are expected to transform Indiana communities, attract talent and improve the quality of life in the short and long term. Across all regions, READI is on track to yield a total project investment of over $9 billion from public, private and nonprofit dollars invested in enhancing Indiana’s regions for current and future generations of Hoosiers.
MODERNIZING INDIANA’S ECONOMIC DEVELOPMENT TOOLKIT: Gov. Holcomb signed Senate Enrolled Act 361 into law, ushering in critical modernizations to Indiana’s economic development toolkit that will strengthen the state’s competitiveness. The bill created Innovation Development Districts (IDD), which allow the state to capture property, income and sales tax for unique economic development needs, and improve the state’s speed and ability to attract large, dynamic economic development projects in future-focused industries, including EV battery plants, microchip fabricators and energy transition innovators like solar and wind farms. The bill also creates added flexibility for traditional investment tools, enabling the IEDC to better attract high-growth companies, and it adds state tax credit incentives and a locally funded grant program for remote workers to better meet the needs of the changing workforce.
ESTABLISHING FIRST STATE-LED RESEARCH & INNOVATION MEGA-SITE: The IEDC established its first research and innovation district – LEAP (Limitless Exploration / Advanced Pace) – in Lebanon. The 7,000-acre site in Boone County, which was identified as a strategic location for future industry growth, will better position Indiana to compete globally for high-tech jobs and help the state deliver strategic, investment-ready sites to industry leaders. In May, Eli Lilly announced plans to anchor the LEAP district, investing $2.1 billion two establish two new manufacturing sites to bolster its global pharmaceutical production.

Economy of the Future:

ADVANCING THE US CHIP INDUSTRY: Indiana created and launched a new Accelerating Microelectronics Production and Development (AMPD) taskforce to help companies in the semiconductor supply chain locate, innovate and produce in Indiana. Soon after, Taiwan-based MediaTek announced plans to establish a new semiconductor design center in partnership with Purdue University, and in July, U.S.-based SkyWater Technology announced plans to establish operations in Indiana, building a $1.8 billion semiconductor R&D and production facility in West Lafayette.

The state is also investing in WestGate One, a new microelectronics hub in Daviess County near the Naval Surface Warfare Center, Crane Division (NSWC Crane), to advance American-made microelectronics. The new campus has already attracted four semiconductor companies – NHanced Semiconductors, which will anchor the development; Everspin Technologies; Trusted Semiconductor Solutions; and Reliable MicroSystems – that together plan to invest more than $300 million in Indiana and create up to 549 new jobs in the coming years.
POWERING THE FUTURE OF MOBILITY: Indiana’s automotive manufacturing industry is uniquely positioned to develop and produce the next generation of vehicles. In 2022, Indiana secured more than $3 billion in investments from companies to build EVs and EV batteries here. In Kokomo, Stellantis and Samsung SDI are launching a new joint venture to build a new, next-generation EV battery manufacturing facility, creating 1,400 new jobs, and in Marion, General Motors Co. is investing $491 million in its metal plant to upgrade its operations to support the company’s EV production.
CREATING THE FUTURE OF FOOD & ANIMAL HEALTH: Indiana’s rich tradition in agriculture and agbiosciences continues to advance new technologies and sustainable innovations while attracting growth from across the U.S. and around the world. In the spring, Elanco Animal Health, one of the leading independent animal health companies in the world, broke ground on its new global headquarters in Indianapolis, expanding the city’s downtown and laying the groundwork for the region to be an epicenter of animal health.

Additionally, U.S. and international agbiosiences companies chose Indiana for growth: Atarrya, a Mexico-based agtech startup is investing $4.8 million to establish its first U.S. large-scale sustainable shrimp farm in Indianapolis; Do Good Foods, a New Jersey-based company is investing $100 million in an animal feed production facility in Fort Wayne that will divert food waste from supermarkets and repurpose about 60,000 tons of food waste each year; Intelinair, a formerly-Illinois-based company celebrated the grand opening of its new Indianapolis headquarters; and Living Green Farms, a Minnesota-based company is investing $70 million to establish a 200,000-square-foot indoor farming, processing and packaging facility in Muncie.

Entrepreneurship

GROWING A NATIONALLY RECOGNIZED ECOSYSTEM: Indiana’s leadership in innovation and entrepreneurship continues to grow. This year, Indiana was named a Global Top 40 Emerging Ecosystem by Startup Genome and six of the state’s cities were named among the 2022 Best Startup Cities in the Midwest with Indianapolis ranking No. 3. Additionally, Indiana’s venture market surpassed $1 billion for the first time in 2021, with companies attracting $1.4 billion (+186% from 2020) to power their growth.
INVESTING IN ENTREPRENEURS & SMALL BUSINESSES: The IEDC works to support entrepreneurs and small businesses through the Indiana Small Business Development Center (SBDC) and the Indiana Procurement Technical Assistance Center (PTAC). So far this year, the Indiana SBDC has provided no-cost support to more than 5,000 entrepreneurs and small businesses, helping secure $99.8 million in funding and helping launch 362 new businesses. Additionally, PTAC has served 404 new clients, with roughly 75% qualifying as women-, minority-, or veteran-owned business enterprises, helping businesses secure $295 million in federal government contracts.

The IEDC celebrated the many contributions of Indiana entrepreneurs and innovators during Global Entrepreneurship Week, announcing new entrepreneurial ecosystem assets: Entrepreneurship Indiana, an annual publication honoring the entrepreneurial journey, and a new website, which is in the final stages of testing, that will provide a comprehensive, statewide listing of resources, programs and services for entrepreneurs, helping them start and grow their business.
ENCOURAGING EQUITY: The IEDC secured up to $99.1 million in federal funding through the State Small Business Credit Initiative (SSBCI) to expand access to and increase capital for Hoosier entrepreneurs, startups and small businesses. The funds, invested alongside private dollars, are expected to result in at least $990 million invested in Indiana’s innovation and entrepreneurship ecosystem and at least 37% of SSBCI funds will be allocated to traditionally underserved small businesses and entrepreneurs, encouraging greater equity in access to capital for Hoosiers.
FUELING VENTURE DEVELOPMENT: As the #1 most active venture capital in the Great Lakes Region, supports the efforts of the IEDC by providing assistance to high-growth, high-potential startups and innovators, making capital more accessible and attracting additional private co-investment. So far this year, Elevate Ventures has committed to investing more than $21 million in 113 Indiana companies through investment and grant programs utilizing the state’s 21st Century Research and Technology Fund. Since inception, and across all programs, Elevate Ventures has invested $146.8 million in Hoosier businesses, attracting $2.03 billion in capital from other sources (13.84-to-1 investment leverage ratio).

Energy Transition:

LEADING CLEAN ENERGY DEVELOPMENT: Indiana achieved a ranking of No. 4 in the U.S. for new clean energy projects, with 5,104 megawatts of projects under development, thanks to collaborative initiatives like Mammoth Solar, which is set to become the largest solar installation in the U.S. The project, led by Doral Renewables, is now in the second phase of development to transform 13,000 acres in Starke and Pulaski counties, bringing 1.3 gigawatts of clean energy to the region.

Additionally, Indiana joined seven other states in creating a Midwest coalition to pursue a regional hydrogen hub, supporting technology, production, supply chain and workforce development to fuel existing and future industrial processes, enhance energy security and ensure continued affordability for energy customers.
PARTNERING GLOBALLY: For the first time, Gov. Holcomb and Sec. Chambers participated in the United Nations Climate Change Conference of the Parties (COP27), joining global leaders in government, industry and academia to elevate Indiana’s global, future-focused economy and to advance investment and partnership opportunities that will further clean energy generation and technology. The Governor delivered two keynote addresses, highlighting Indiana’s efforts to usher in clean energy infrastructure and energy sources and shining a spotlight on the state’s growing electric vehicle industry.

External Engagement:

ENHANCING INDIANA’S GLOBAL REPUTATION: Gov. Holcomb and Sec. Chambers continued a commitment to global engagement and international partnerships, hosting the inaugural Indiana Global Economic Summit in May and convening more than 900 registrants and 30 international delegations to advance key conversations, spark discovery and discuss opportunities for deeper economic and international cooperation for building the economy of the future. The first-ever event featured 76 speakers across 18 thought-leader sessions, highlighting global topics like the future energy and green manufacturing, mobility, talent, life sciences, sports and entrepreneurship.

Additionally, the Governor and Secretary fostered international relationships abroad, leading six economic development trips to the Arab Republic of Egypt, Germany, Israel, the Republic of Korea, Monaco, Slovakia, Sweden, Switzerland, Taiwan and the United Kingdom.
ATTRACTING NEW US & INTERNATIONAL BUSINESS: This year, the IEDC, in partnership with local communities, secured 71 commitments from businesses to establish new operations – either as a startup company or as an established business investing in Indiana for the first time. Together, they plan to invest approximately $15.5 billion and create more than 11,900 new jobs, accounting for 70% of the year’s overall investment and nearly 50% of the year’s total new jobs committed.

The state also had another robust year for foreign direct investment, with 32 foreign-owned businesses committing to locating or growing in Indiana. Together, these firms plan to invest $7.25 billion (+104% from 2021) in Indiana, creating more than 6,400 jobs with an average wage of $29.30 per hour and accounting for more than 26% of the total new jobs committed in 2022.
TELLING INDIANA’S STORY OF INNOVATION: In 2022, Indiana expanded and created new partnerships to better share its story nationally and globally as a state focused on innovating and building the economy of the future. In January, the IEDC partnered with the Indy Autonomous Challenge to showcase Indiana at the Consumer Electronics Show, highlighting the world’s most advanced autonomous racecar – named a top three tech trend to see by Inc. Magazine – and the state’s commitment to shaping the future of mobility. The IEDC also sponsored the 8th annual Fast Company Innovation Festival in New York City, highlighting the state’s forward-looking economy, and announced a new partnership with Avalanche Andretti Formula E to increase global awareness about Indiana’s leadership in the future of clean energy technology.

In order to continue this momentum and advance economic development opportunities for years to come, the IEDC is committed to utilizing the 5E approach focused on advancing innovation and entrepreneurship, ensuring a diverse economic environment, creating the jobs of tomorrow, and retaining and attracting top talent by investing in quality of place.