Economic Impact Workshop Overview of Porter & La Porte County Economies October 6, 2011 Dr. Derek Bjonback, Associate Professor College of Business

Economic Impact Workshop DEMOGRAPHIC PROFILE UnitedLa PortePorter StatesIndianaCounty Population (2010)309,050,8166,445,295111,085164,304 Population Growth, %16.3%3.8%27.4% Per Capita Personal Income (2009 dollars)39,63534,02230,19941,110 Poverty Rate (2009)14.3%14.4%14.5%7.6% Percent Population with a Bachelor's Degree27.5%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 Impact Workshop ECONOMIC PROFILE UnitedLa PortePorter StatesIndianaCounty Manufacturing (share of all jobs)9.0%16.5%17.9%16.3% Average Manufacturing wage (2009 dollars)57,58054,41246,11759,078 Finance and Insurance (share of all jobs)4.3%3.4%2.0% Average Wage, Finance and insurance (2009 dollars)84,46154,26742,55743,353 Share of Workers living in county, and working elsewheren/a5.0%26.0%43.8% Labor Force/Population

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UNEMPLOYMENT RATES

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GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY Annual Change Average Growth 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 & hospitality0.46%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%

Economic Impact Workshop GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY Annual Average Growth 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 & hospitality0.46%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"

Economic Impact Workshop EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY Change Construction3,8634,7753, Manufacturing10,8219,1648,968-1,657-1,853 Trade, Transportation & Utilities10,72611,77310,7461,04720 Financial Activities1,8181,8641, Information Professional & Business Services3,6134,6203,7991, Private Education & Health Services5,7508,38510,1062,6354,356 Leisure & hospitality5,3236,0665, Other Services2,0692,3062, Federal Government State Government Local Government7,7486,9376, ,213 Total53,50857,28354,6203,7751,112 Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"

Economic Impact Workshop GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY Annual Average Growth Construction-0.26%3.79%-6.24% Manufacturing-1.77%-2.67%1.10% Trade, Transportation & Utilities0.10%1.59%0.02% Financial Activities-1.17%0.44%0.19% Information-3.61%-5.29%0.67% Professional & Business Services0.78%4.41%-9.18% Private Education & Health Services5.92%6.67%4.56% Leisure & hospitality0.81%2.20%-3.24% Other Services2.02%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% Total0.24%1.16%0.30% Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"

Economic Impact Workshop HOUSEHOLD EARNINGS (IN THOUSANDS OF DOLLARS) La Porte CountyAverageAverage Annual ChangeAnnual ChangePercent Change Farm earnings33,66114,7281, % Nonfarm earnings2,115,395259,82132, % TOTAL EARNINGS2,149,056274,54934, % AverageAverage Annual Porter CountyChangeAnnual ChangePercent Change Farm earnings17,2387, % Nonfarm earnings2,980,040555,90869, % TOTAL EARNINGS2,997,278563,33870, % Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

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REAL FARM EARNINGS (CORRECTED FOR INFLATION, thousands of DOLLARS) Sources: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income; US Department of Labor, Bureau of Labor Statistics, Consumer Price Index

Economic Impact Workshop LA PORTE COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, (THOUSANDS OF DOLLARS) ChangeAvg Annual Change Top Five Local government53,2216,653 Social assistance53,0106,631 Heavy and civil engineering construction21,6422,705 Nursing and residential care facilities21,4222,678 Food manufacturing20,3402,543 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, Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

Economic Impact Workshop PORTER COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, (THOUSANDS OF DOLLARS) ChangeAvg Annual Change Top Five Ambulatory health care services129,38416,173 Professional, scientific, and technical services59,1047,388 Other services, except public admin45,3365,667 Educational services37,7924,724 Administrative and support services33,0724,134 Food services & drinking places25,0883,136 Bottom Five Motor vehicles and parts dealers-9,376-1,172 Accommodation-6, Printing and support activities-6, Real estate-5, Gasoline stations-3, Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

Economic Impact Workshop LA PORTE COUNTY: TOP TWENTY EXPORTING INDUSTRIES (Ranked by Expenditure) Export Base RankTop Twenty Expenditure (millions of $s) 1 Air and gas compressor manufacturing Other petroleum & coal prod. Manufacturing Ferrous metal foundries Amusement parks, arcades, & gambling indust * Employment & payroll only (state & local govt, education) * Employment and payroll only (state & local govt, non-education) Cookie, cracker, and pasta manufacturing Motor vehicle parts manufacturing Private hospitals Transport by truck Heating equipment (except warm air furnaces) manufacturing Industrial gas manufacturing All other basic inorganic chemical manufacturing Other general purpose machinery manufacturing Soft drink and ice manufacturing Air purification and ventilation equipment manufacturing Wholesale trade businesses Transport by rail Food services and drinking places Electric power generation, transmission, and distribution68.7 Source: IMPLAN Model for La Porte County 2008.

Economic Impact Workshop PORTER COUNTY: TOP TWENTY EXPORTING INDUSTRIES (Ranked by Expenditure) Export Base RankTop Twenty Expenditure (millions of $s) 1 Iron and steel mills and ferroalloy manufacturing5, State and local government, education All other crop farming Ball and roller bearing manufacturing Pharmaceutical preparation manufacturing Nonferr. metal (ex.copper &aluminum) rolling, drawing, extruding & alloying Construction of other new nonresidential structures Steel product manufacturing from purchased steel Coating, engraving, heat treating and allied activities Motor vehicle parts manufacturing State and local government - except education Construction of new nonresidential commercial and health care structures Ground or treated mineral and earth manufacturing Synthetic dye and pigment manufacturing Transport by truck Private colleges, universities, and professional schools Plastics packaging mat. & unlaminated film & sheet manuf Other industrial machinery manufacturing Valve and fittings other than plumbing manufacturing Wholesale trade businesses56.7 Source: IMPLAN Model for Porter County 2008.

Economic Impact Workshop Summary Remarks The region and state did not share completely in the national economic expansion of 2001 to 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 Will this growth trend continue?