Category

Strengths (Internal Positive)

Weaknesses (Internal Negative)

Opportunities (External Positive)

Threats (External Negative)

Ease of Doing Business

Pro-Business Climate: Historically low unemployment (often below national rate), competitive operating costs compared to coastal tech centers, and state policies that are generally favorable to business investment.

Growing Income Gap: While employment growth is steady, personal income growth often lags slightly behind the national average, especially in certain high-value occupations.

Reshoring/Onshoring Momentum: National political and economic push to bring pharmaceutical and semiconductor manufacturing back to the US creates massive capital investment opportunities for Indiana's established industrial base.

Talent Shortages/Skills Gap: A persistent challenge, particularly in the advanced manufacturing and tech-enabled roles required by new Life Sciences and Microelectronics investments, with nearly half of potential new jobs by 2033 at risk of going unfilled.

Domestic Manufacturing

Manufacturing Powerhouse: Ranks #1 in the US for the concentration of goods production jobs (21% of all jobs) and is a top 10 state exporter. Known for its strong industrial base (Auto, Steel, RVs).

Decline in Traditional Manufacturing: Traditional manufacturing, while still a cornerstone, is experiencing a decline in certain areas, necessitating a costly and challenging shift to advanced manufacturing (Industry 4.0).

Focus on High-Value Manufacturing: Over $13 Billion in new cumulative investments (e.g., in Life Sciences/Pharmaceuticals by Eli Lilly) and major EV and Microelectronics sector growth are transforming the sector into one of higher productivity and GDP contribution.

Global Trade/Tariff Volatility: Changes in federal trade policy and global tariffs on raw materials and components could increase operating costs and disrupt complex, international supply chains for Indiana's top exports (e.g., vehicles, machinery).

Sustainability Initiatives

Targeted Investment: State funding and federal American Rescue Plan (ARP) funds are directed toward water, sewer, and conservation projects, including $85 Million for Conservation and Trails, showing a commitment to environmental infrastructure.

High Carbon Reliance: Fossil fuels remain the predominant source of electricity (over 75% of the total supply), with coal still a major component (~42%), necessitating urgent and large-scale transformation toward cleaner energy.

Growth of Renewable Energy: Low-carbon electricity generation (wind and solar) is on an upward trajectory, providing a positive path for Indiana to diversify its energy portfolio and attract investment in Agrivoltaics and other green technologies.

Lack of Unified Climate Policy: Despite legislative efforts (e.g., bills for a Climate Change Task Force, PFAS regulation), a comprehensive, mandatory state-wide climate action plan may be lacking, creating policy uncertainty for long-term corporate sustainability planning.

Balance of Trade

Export Growth: In 2024, Indiana exported a record $59.9 Billion in goods, ranking 8th largest state exporter. Exports are diversified, led by Pharmaceuticals, Motor Vehicles/Parts, and Organic Chemicals.

Trade Deficit: The state typically runs a negative trade balance (imports > exports), which reflects a high volume of imported raw materials and components needed to fuel its massive manufacturing sector. In July 2025, the trade balance was negative $34 Billion.

Strong International Ties: Long-standing, robust trade relationships with top partners like Canada and Mexico, and growing trade with the EU and Italy (a top-5 partner), ensure stable demand for Indiana's manufactured and agricultural goods.

Interdependence Risk: High reliance on two countries, Canada and Mexico, for a large share of its exports makes the state's trade highly vulnerable to any major political or trade disruptions involving the US-Mexico-Canada Agreement (USMCA).