Energy In Indiana
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The economy of the state of Indiana is reflected in its gross state product in 2017 of US$359 billion and per capita income of $44,165. A high percentage of Indiana's income is from manufacturing. Indiana has been the largest steel producing state in the U.S. since 1975, with the
Calumet Region The Calumet Region is the geographic area drained by the Grand Calumet River and the Little Calumet River of northeastern Illinois and northwestern Indiana in the United States. It is part of the Great Lakes Basin, which eventually reaches th ...
of
northwest Indiana Northwest Indiana, nicknamed "The Region" after the Calumet Region, is an unofficial region of Northern Indiana, northern Indiana, United States that is located at the northwestern corner of the state. Though there is no official definition of th ...
being the largest single
steel Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high Young's modulus, elastic modulus, Yield (engineering), yield strength, Fracture, fracture strength a ...
producing area in the U.S., accounting for 27% of all U.S. steel production. Indiana is also the 2nd largest auto manufacturing state. Indiana's other manufactures include pharmaceuticals and medical devices, automobiles, electrical equipment, transportation equipment, chemical products, rubber,
petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
and
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
products, and factory machinery.


History

Indiana's earliest economy revolved around trade with the Native American tribes in the northern and central parts of the state, which were connected by rivers to the
Great Lakes The Great Lakes, also called the Great Lakes of North America, are a series of large interconnected freshwater lakes spanning the Canada–United States border. The five lakes are Lake Superior, Superior, Lake Michigan, Michigan, Lake Huron, H ...
, and ultimately the Atlantic Ocean. The state government established a trading monopoly with the tribes who became the primary purchasers of Indiana settler's goods. Although the basis was established in the
Northwest Ordinance The Northwest Ordinance (formally An Ordinance for the Government of the Territory of the United States, North-West of the River Ohio and also known as the Ordinance of 1787), enacted July 13, 1787, was an organic act of the Congress of the Co ...
and well known, economic growth was slow to begin in the state, primarily due to the inability to ship goods to market affordably. After the
Mississippi River The Mississippi River is the main stem, primary river of the largest drainage basin in the United States. It is the second-longest river in the United States, behind only the Missouri River, Missouri. From its traditional source of Lake Ita ...
was opened to American traffic following the
Louisiana Purchase The Louisiana Purchase () was the acquisition of the Louisiana (New France), territory of Louisiana by the United States from the French First Republic in 1803. This consisted of most of the land in the Mississippi River#Watershed, Mississipp ...
, agricultural grew rapidly in the state, but was still hampered by the lack of internal transportation in the state. The
Indiana General Assembly The Indiana General Assembly is the state legislature, or legislative branch, of the U.S. state of Indiana. It is a bicameral legislature that consists of a lower house, the Indiana House of Representatives, and an upper house, the Indiana Sena ...
attempted to remedy the transportation system in the late 1810s, but was thwarted by the
Panic of 1819 The Panic of 1819 was the first widespread and durable financial crisis in the United States that slowed westward expansion in the Cotton Belt and was followed by a general collapse of the American economy that persisted through 1821. The Panic ...
which caused the state's only two banks to collapse. A second attempt was launched in the early 1830s leading to the passage of the Mammoth Internal Improvement Act. This state-funded development of canals, railroads and roads statewide resulted in a large rise in land and produce values, but it too was thwarted by the
Panic of 1837 The Panic of 1837 was a financial crisis in the United States that began a major depression (economics), depression which lasted until the mid-1840s. Profits, prices, and wages dropped, westward expansion was stalled, unemployment rose, and pes ...
; although this spending bankrupted the state, the foundation it provided allowed Indiana to grow into one of the leading farming states by the 1850s. The 1860s Indiana in the American Civil War rapidly completed the state's railroad system and accelerated the growth of industry. Building railroad cars and glass manufacturing became the state early leading industries, established primarily in the central parts of the state. Southern Indiana, however was adversely affected by the war and never regained its economic dominance in the state. Prior to the war, the largest cities were along the
Ohio River The Ohio River () is a river in the United States. It is located at the boundary of the Midwestern and Southern United States, flowing in a southwesterly direction from Pittsburgh, Pennsylvania, to its river mouth, mouth on the Mississippi Riv ...
and had a thriving trade with the south and large ship building centers that languished in the war. In most of the state, the war led to a rise in the value of farm produce and significantly raised the state's standards of living. The
Indiana Gas Boom The Indiana gas boom was a period of active drilling and production of natural gas in the Trenton Gas Field, in the US state of Indiana and the adjacent northwest part of Ohio. The boom began in the early 1880s and lasted into the early 20th cent ...
began in the 1880s and lasted through 1910, when large-scale drilling and production of natural gas took place in the
Trenton Gas Field The Trenton Gas Field is located in east central Indiana and the most western portion of west central Ohio. The field was discovered in 1876, but the size and magnitude of the field was not known until the 1880s. The field was the largest natural g ...
of east-central Indiana. The
Ball Corporation Ball Corporation is an American aluminum manufacturing company headquartered in Westminster, Colorado. It is best known for its early production of glass jars, lids, and related products used for home canning. Since its founding in Buffalo, N ...
moved its headquarters from New York to
Muncie, Indiana Muncie ( ) is a city in Delaware County, Indiana, United States, and its county seat. It is located in East Central Indiana about northeast of Indianapolis. At the 2020 census, the city's population was 65,195, down from 70,085 in the 2010 c ...
and built a glass factory to take advantage of the cheap natural gas, and became an icon of Muncie. Indiana rapidly became a manufacturing powerhouse in the first 20 years of the 20th Century, as steel, oil refining, automobiles, railroad rolling stock, and consumer and industrial appliance companies established themselves, taking advantage of Indiana's central location, cheap and plentiful land, and the lower costs associated with smaller industrial cities. Enormous integrated steel mills were built in cities like East Chicago and Gary along the shore of Lake Michigan, with smaller mills built in cities like Muncie and Indianapolis. Railroads crisscrossed the state, the most iconinc being the Monon Line. Indiana, being a manufacturing and agricultural state, was utterly devastated by the
Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
in the 1930s. Unemployment exceeded 25% at the depths of the Depression in early 1933, with many coal-mining southern counties seeing unemployment rates exceed 50%. The Indiana Republican Party, which previously dominated the state and gave precedent to business interests, was destroyed in the elections of 1932, and the Indiana Democrats, led by newly elected governor
Paul V. McNutt Paul Vories McNutt (July 19, 1891 – March 24, 1955) was an American diplomat and politician who served as the 34th governor of Indiana, high commissioner to the Philippines, administrator of the Federal Security Agency, chairman of the ...
, swept to power and radically transformed the state, implementing public works projects and completely overhauling the state government. Trade unions gained new strength during the 1935 - 1945 period, and peaked at 41% in 1964. Unions would be a potent political force in Indiana through the 1990s, with a unionization rate of 20% as recently as 1990. However, Indiana's factories went into overdrive during World War II (1939–1945) to support the Allied and American war efforts. Full employment and prosperity returned. Indiana manufactured 4.5 percent of total United States military armaments produced during World War II, ranking eighth among the 48 states. During the post-World War II boom from 1945 to 1973, Indiana's economy prospered and Indiana was ranked 20th out of 50 states plus Washington, D.C., in the late-1960s for personal income. However, Indiana's economy began to struggle after the
recession of 1969-1970 In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be tr ...
as the manufacturing sector began to decline. Foreign competition, corporate mergers, automation, and new management strategies lead to downsizing, mass layoffs, diversification, and chronic unemployment. Cities such as Muncie, Anderson, Indianapolis, Kokomo, Gary, East Chicago, Hammond, Michigan City, Fort Wayne, South Bend, Elkhart, and Evansville all witnessed population declines and rising unemployment and poverty during the 1970s and 1980s.
Northwest Indiana Northwest Indiana, nicknamed "The Region" after the Calumet Region, is an unofficial region of Northern Indiana, northern Indiana, United States that is located at the northwestern corner of the state. Though there is no official definition of th ...
was hit especially by the
steel crisis Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high elastic modulus, yield strength, fracture strength and low raw material cost, steel is one of ...
of 1974 - 1983. Since the early-1990s, Indiana has diversified its economy away from heavy industry and towards service (such as banking, insurance, healthcare, education, financial services, information technology) and high-tech manufacturing. In 2016, 516,000 workers were employed in manufacturing, down from 696,000 in 2000 and nearly 750,000 in 1969, but up from 424,000 in 2009 at the depths of the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
. Heavy industries such as oil, autos, and steel still comprise a significant portion of the states' GDP, but other industries such as electrical goods, medical equipment, and pharmaceuticals have grown recently as well. However, Indiana's wage growth has lagged behind other states, and Indiana has fallen from 20th in personal income during the 1960s to 39th in 2017.


Fiscal policy


Sectors


Agriculture

Indiana is the eighth largest agricultural exporter in the nation, exporting just over $4.6 billion in 2017. Indiana is the tenth largest farming state in the nation. Top 5 commodities (by value of sales) Corn: $3.28 billion Soybeans: $3.08 billion Meat animals: $1.62 billion Poultry and eggs: $1.18 billion Dairy: $750 million


Automotive

In 2013, Indiana's automobile industry rose to 2nd place in the country, behind Michigan, in terms of automotive gross domestic product.


E-commerce

*
eDealinfo USA eDealinfo USA Inc. is in e-Commerce business of online deals and coupons for various consumer products and services. The company is headquartered in Indiana, U.S.. eDealinfo USA Inc. operates its business through various domain names. History I ...
(2000)


Energy


Oil, natural gas, and coal


Renewable


=Hydro

= Indiana has six hydroelectric dams. The Norway and Oakdale Dams near Monticello provide electrical power, recreation, and other benefits to local citizens. The Norway Dam created Lake Shafer and the Oakdale Dam created Lake Freeman. The Markland Dam, on the Ohio River, near Vevay, Indiana also produces electricity. The city of Wabash was the first electrically lighted city in the country.


=Biofuels

= Indiana is becoming a leading state in the production of
biofuels Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricultural, domestic ...
, such as
ethanol Ethanol (also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound with the chemical formula . It is an Alcohol (chemistry), alcohol, with its formula also written as , or EtOH, where Et is the ps ...
and
biodiesel Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats. The roots of bi ...
. Indiana now has 12 ethanol and 4 biodiesel plants located in the state. Reynolds, located north of Lafayette is now known as BioTown, USA. The town is experimenting with using biofuels and organic fuels, such as those made with manure, to power the town.


=Solar

= A 17.5MW plant built at the Indianapolis airport in 2013 was the largest airport solar farm in the U.S.


=Wind

= Commercial wind power in Indiana began in 2008 when the Benton County Wind Farm came online. New estimates of wind resources in 2006 raised the potential wind power capacity for Indiana from 30 MW at 50 m turbine hub height to 40,000 MW at 70 m, which could double at 100 m, the height of newer turbines. At the end of June, 2008, Indiana had installed 130 MW of wind turbines and had under construction another 400 MW. , Indiana had a total of 1035.95 MW of wind power
nameplate capacity Nameplate capacity, also known as the rated capacity, nominal capacity, installed capacity, maximum effect or gross capacity, with more under construction or in planning.


=Geothermal

= Indiana has no geothermal electrical power generation facility. The Indiana Geological Survey was conducting a study to catalogue all potentially exploitable sources of geothermal heat in the state. In 2010, the Indiana Heating and Air-Conditioning Incentive Program (IHIP) provides rebates of up to $1000 for the purchase and installation of Energy Star-rated
geothermal heat pump A ground source heat pump (also geothermal heat pump) is a heating/cooling system for buildings that use a type of heat pump to transfer heat to or from the ground, taking advantage of the relative constancy of temperatures of the earth through ...
s. One of the largest geothermal heat pump systems in the United States is a GeoExchange pond coupled loop system by Geothermal Design Associates at the St. Joseph Medical Center in
Fort Wayne Fort Wayne is a city in Allen County, Indiana, United States, and its county seat. Located in northeastern Indiana, the city is west of the Ohio border and south of the Michigan border. The city's population was 263,886 at the 2020 United S ...
.


Mining

In mining, Indiana is probably best known for its decorative
limestone Limestone is a type of carbonate rock, carbonate sedimentary rock which is the main source of the material Lime (material), lime. It is composed mostly of the minerals calcite and aragonite, which are different Polymorphism (materials science) ...
from the southern, hilly portion of the state, especially from Lawrence County. One of the many public buildings faced with this stone is
The Pentagon The Pentagon is the headquarters building of the United States Department of Defense, in Arlington County, Virginia, across the Potomac River from Washington, D.C. The building was constructed on an accelerated schedule during World War II. As ...
, and after the
September 11, 2001, attacks The September 11 attacks, also known as 9/11, were four coordinated Islamist terrorist suicide attacks by al-Qaeda against the United States in 2001. Hijackers in the September 11 attacks#Hijackers, Nineteen terrorists hijacked four com ...
, a special effort was made by the mining industry of Indiana to replace those damaged walls with as nearly identical type and cut of material as the original facing. There are also large coal mines in the southern portion of the state. Like most Great Lakes states, Indiana has small to medium operating
petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
fields; the principal location of these today is in
Southwestern Indiana Southwestern Indiana is an 11-county region of southern Indiana, United States located at the southernmost and westernmost part of the state. As of the 2010 census, the region's combined population is 474,251. Evansville, Indiana's third-larges ...
, though operational oil derricks can be seen on the outskirts of Terre Haute.


Pharmaceuticals & medical devices

Indiana is home to the international headquarters of pharmaceutical manufacturer
Eli Lilly Eli Lilly (July 8, 1838 – June 6, 1898) was a Union Army officer, pharmacist, chemist, and businessman who founded Eli Lilly and Company. Lilly enlisted in the Union Army during the American Civil War and recruited a company of men to ...
in Indianapolis, the state's largest corporation. Evansville is home to Mead Johnson Nutritionals, a subsidiary of
Bristol-Myers Squibb The Bristol-Myers Squibb Company, doing business as Bristol Myers Squibb (BMS), is an American multinational pharmaceutical company. Headquartered in Princeton, New Jersey, BMS is one of the world's largest pharmaceutical companies and consist ...
, another large producer. Elkhart has also had a strong economic base of pharmaceuticals, though it has decreased over with the closure of Whitehall Laboratories in the 1990s and of the large
Bayer Bayer AG (English: , commonly pronounced ; ) is a German multinational pharmaceutical and biotechnology company and is one of the largest pharmaceutical companies and biomedical companies in the world. Headquartered in Leverkusen, Bayer' ...
complex, announced in late 2005. Overall, Indiana ranks fifth among all U.S. states in total sales and shipments of pharmaceutical products and second highest in the number of biopharmaceutical related jobs. Warsaw is dubbed the "Orthopedic Capital of the World"; the Warsaw region is home to nearly one-third of the $38 billion global orthopaedic industry including Zimmer,
Biomet Biomet, Inc., was a medical device manufacturer located in the Warsaw, Indiana, business cluster. The company specialized in reconstructive products for orthopedic surgery, neurosurgery, craniomaxillofacial surgery and operating room supplies. In ...
and DePuy. Other medical device companies include
Roche F. Hoffmann-La Roche AG, commonly known as Roche (), is a Switzerland, Swiss multinational corporation, multinational holding healthcare company that operates worldwide under two divisions: Pharmaceuticals and Diagnostics. Its holding company, ...
Diagnostics in Indianapolis, and
Cook Cook or The Cook may refer to: Food preparation * Cooking, the preparation of food * Cook (domestic worker), a household staff member who prepares food * Cook (profession), an individual who prepares food for consumption in the food industry * C ...
in Bloomington.


See also

*
List of U.S. states by GDP (nominal) This is a list of U.S. states and territories by gross domestic product (GDP). This article presents the 50 U.S. states and the District of Columbia and their nominal GDP at current prices. The data source for the list is the Bureau of Ec ...
* Great Lakes Megalopolis


Notes


References

*


External links


Indiana Chamber of Commerce
{{DEFAULTSORT:Economy Of Indiana