Study: Indiana exports record high $26 billion

Indiana’s exports increased by more than 5 percent in 2006 and are on track to increase by another 10 percent this year, according to a report released by the Kelley School of Business’ Indiana Business Research Center two weeks ago.\nLast year Indiana exported a record $22.6 billion worth of goods and products to countries around the world, and could increase that figure by another $3 billion this year, according to the report, which was created for the Indiana Economic Development Corporation. Author of the report Timothy Slaper said exports boost the economy, but the report also showed the Indiana economy’s vulnerabilities.\nAn increase in exports has a direct effect on Indiana’s Gross Domestic Product and economic growth, Slaper said. He compared exported products to tourism because they provide money from outside the state that gets into the Indiana economy.\n“An increase in exports boosts states’ econom(ies) and is a great thing,” he said. “That seems somewhat self-evident to me.”\nThese numbers point to the power of globalization on Indiana’s economy, \nSlaper said.\n“You get a sense that a lot of labor (unions are) anti-globalization,” he said, pointing to the fear that globalization may take jobs away from some industries. \nHowever, Slaper said those jobs shift to different industries such \nas exportation. \n“That’s just the nature of the economy,” \nhe added.\nAccording to the report, one in every six manufacturing jobs in Indiana is devoted to exports. About 45 percent of Indiana’s exports are vehicles, parts and machinery.\nWhen a state gets too concentrated in one sector it should decrease its dependency on it, just in case that industry declines, Slaper said.\n“The degree to which we as Hoosiers are dependent on certain parts of the economy gives us a sense of our vulnerabilities,” he said.