metro indianapolis

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This report was developed by the Indy Chamber, Butler University and Indiana University-Purdue University Indianapolis through the collaboration of political, business, and civic leaders of metro Indianapolis. The conclusions and recommendations of this report are solely those of its authors and do not reflect the views of the Brookings Institution or JPMorgan Chase. The Brookings Institution is a private non-profit organization. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. Brookings recognizes that the value it provides is in its absolute commitment to quality, independence and impact, and makes all final determinations of its own scholarly activities in the Global Cities Initiative, including the research agenda and products. ABOUT GCI The Global Cities Initiative is a joint project of the Brookings Institution and JPMorgan Chase to help business and civic leaders grow their metropolitan economies by strengthening international connections and competitiveness. GCI activities include producing data and research to guide decisions, fostering practice and policy innovations, and facilitating a peer learning network. For more information, see http:// www.brookings.edu/projects/global-cities.aspx or www. jpmorganchase.com/globalcities.

FOR MORE INFORMATION, VISIT INDYCHAMBER.COM/EXPORT

METRO INDIANAPOLIS E X P O R T

P L A N

M E T R O E X P O R T I N I T I AT I V E OVERVIEW

Eighty percent of the world’s purchasing power is outside the United States, yet just four percent of U.S. companies export. Indiana and the Indianapolis metro have a real opportunity to boost export activity through the implementation of the Metro Indianapolis Export Plan. This export plan, as part of the Global Cities Initiative, a joint project of The Brookings Institution and JPMorgan Chase, was released in 2015.

KEY FINDINGS: INDY EXPORTS REFLECT STRONG INDUSTRY CLUSTERS. Exports align with the metro’s largest employers. Metro Indy Export Intensity, Compared to Midwest

Major Export Industries

(Note: Baton Rouge included as top U.S. exporting metro as a benchmark indicator)

HISTORIC TRADE RELATIONSHIPS AND EMERGING MARKETS PROVIDE GROWTH. Indianapolis Metro’s Established and Emerging Markets by dollar value of exports and growth rate 18x growth

35.0%

MOTOR VEHICLE PARTS $1 BILLION AIRCRAFT PRODUCTS & PARTS $740 MILLION

ENGINE & POWER EQUIPMENT

ROYALTIES

$760 MILLION

PHARMA $3.4 BILLION

$2.44 billion

30.0% 25.0%

$760 MILLION

Chicago, IL

20.0%

7x growth

$1.39 billion

Columbus, OH Indianapolis, IN

$945 million

St. Louis, MO

4x growth

United States

5.0% 0.0%

7x growth

Louisville, KY

10.0%

$720 MILLION

$850 million

Baton Rouge, LA

15.0%

MEDICAL EQUIPMENT & SUPPLIES

$908 million

6x growth

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: The Brookings Institution Source: Export Nation, 2013

Source: The Brookings Institution

OPPORTUNITY EXISTS FOR SMALL BUSINESSES TO EXPORT. Differences in law and culture, lack of familiarity, and need for logistics prevent SMEs from exporting, although the benefits might be a game changer. Despite the barriers nearly a quarter of non-exporting companies surveyed said they would consider exporting.

Metro Indianapolis Wage Decline $60,000

$45,000

INDY COMPANIES NEED EXPORT MARKET INFORMATION, TRAINING, COACHING, AND CONNECTIONS. $33,911

$30,000

$34,086

METRO INDIANAPOLIS NEEDS GLOBALLY-MINDED TALENT AND A GLOBAL IDENTITY. Surveys and interviews reveal a need from businesses and community leaders for a stronger metro emphasis on developing and attracting talent with global experience and perspective.

$42,542

$46,177

INDIANAPOLIS IS IN A GEOGRAPHIC SWEET SPOT FOR TIME-SENSITIVE SHIPMENTS, YET COMPANIES CITE TRANSPORTATION COSTS AS A MAJOR BARRIER TO EXPORTING. Indiana and metro Indy have a great economic asset in location and robust infrastructure. Indy has four interstates, rail, access to Indiana ports, and overnight air to both costs.

METRO INDY HAS A STRONG YET SLOWING EXPORT ECONOMY. Personal Income continues to lag. Metro Indy made a good recovery from the recession. But personal income lags behind peer metro areas.

$15,000

$0 2003

2013 U.S. METROS INDIANAPOLIS METRO

POLICY PLAN

PLAN STRATEGIES 1. HELP TOP EXPORTERS WITH GOOD POLICY AND INFRASTRUCTURE SERVE AS MENTORS TO SMALLER COMPANIES.

4. DEVELOP THE LOGISTICS INFRASTRUCTURE TO SUPPORT SHARED SUPPLY CHAINS AND LOWER LOGISTICS COSTS.

2. CONNECT A FULL SYSTEM OF EXPORT SERVICES.

5. THE COMMUNITY AND ITS INSTITUTIONS OF HIGHER EDUCATION ADVANCE GLOBAL AWARENESS, LEARNING, AND IDENTITY OF THE INDY METRO.

3. SUPPORT EXPANSION TO BRICS AND EMERGING MARKETS.

1. SUPPORT FREE TRADE AGREEMENTS. 2. SUPPORT REAUTHORIZATION OF THE EXPORT-IMPORT BANK. 3. RENEW SUPPORT FOR MARKET FOCUSED TRADE MISSIONS.

4. SUPPORT INCREASING THE WORK VISA CAP. 5. ANALYZE REPEAL OF THE THROWBACK RULE ON EXPORTS.