5 Reasons Indy is a Global Economy
May 24th is World Trade Day – time for the Indy Chamber to highlight our place in the global economy!
For many local employers, every day is a world trade day. Indianapolis companies do business in hundreds of countries, boasting nearly $15 billion in exports last year alone. Hundreds of foreign-owned firms have also made Indy a second home, creating good jobs for thousands of Hoosiers.
Indianapolis is the Crossroads of America and now, we’re also a crossroads for global business.
With World Trade Day just around the corner, here are 5 Reasons Indy is a Global Economy:
1. Global trade puts Indy to work – and boosts our paychecks!
More than 100,000 local jobs are supported by exports and foreign-owned employers. And these jobs pay an average of 20 percent higher wages than similar occupations in domestic companies. At a time when our local economy is working to tackle the challenges of rising poverty and falling incomes, globalization is growing our earning power.
2. Global business is smarter business.
One reason global companies pay employees more is that they invest heavily in research and development and new technologies and demand a more educated, productive workforce.
Foreign companies and exporters in the U.S. are four times more concentrated in what our partners at the Brookings Institution call advanced industries – cutting-edge sectors that rely on innovation like aerospace, pharmaceuticals, precision manufacturing, technology and energy.
Indy’s international businesses are also strongest in advanced industries – we’re making our mark on the world with lifesaving medicines, high-performance auto parts, the latest jet engines, breakthroughs in agriculture and more. Going global helps move us towards a higher-skill, higher-value economy.
3. Talent is our most important import.
Competing globally takes brainpower. Attracting new talent and growing our skilled workforce is a top economic development priority for the region but when it comes to international migration, Indy’s on a winning streak!
The Indy metro has added roughly 15,000 new foreign-born residents over the last three years, or just under a third of our total population growth. And since 2000, Indy has grown our international population more than 120 percent – among the fastest-growing large metro regions in the country.
People are an important part of the business climate, and global talent goes hand-in-hand with global trade and investment.
4. We’re beating the competition.
If you’re keeping score: Indianapolis ranks 23rd out of the top 100 regions in total exports (and 18th in exports as a share of our total economy).
When it comes to jobs, Indy is 24th in total export-supported jobs and 22nd in employment in foreign-owned companies.
And since Indianapolis is the 33rd-largest metro overall, all these stats mean we’re punching above our weight in the global economy.
5. With a world of opportunity, we have room to grow!
Even though international markets have been good to Indianapolis, there’s plenty of potential to do even better. Regional exports are driven by a handful of major global corporations; among mid-market business, we’ve barely scratched the surface. In fact, we’ve identified more than 1,200 mid-sized, homegrown companies in export-oriented industries that aren’t yet selling overseas.
It’s also time to diversify foreign investment. Just five large employers contribute 25 percent of Indy’s jobs in foreign-owned companies, and we’re more dependent on two investor countries (the UK and Japan) than other large cities.
We’re thinking bigger and planning ahead.
The Indy Chamber is creating a global trade and investment strategy, with help from the Global Cities Exchange, a joint project of the Brookings Institution and JPMorgan Chase, and a steering committee of regional business leaders, university experts and economic development professionals.
Get a preview of what we’re learning at World Trade Day.
Join us on May 24th – 5 days before the 500, find out how Indy is accelerating our global growth.
