1. Economic Impact Workshop Overview of Porter & La Porte County Economies October 6, 2011 Dr. Derek Bjonback, Associate Professor College of Business

2. Economic Impact Workshop DEMOGRAPHIC PROFILE UnitedLa PortePorter StatesIndianaCounty Population (2010)309,050,8166,445,295111,085164,304 Population Growth, 1990-201024.2%16.3%3.8%27.4% Per Capita Personal Income (2009 dollars)39,63534,02230,19941,110 Poverty Rate (2009)14.3%14.4%14.5%7.6% Percent Population with a Bachelor's Degree27.5%21.9%16.6%24.1% African American alone (percent of population)12.9%9.2%10.6%3.3% White alone (percent of population)79.6%87.8%87.0%94.1% Hispanic (percent of population)15.1%5.1%4.4%6.7%

3. Economic Impact Workshop ECONOMIC PROFILE UnitedLa PortePorter StatesIndianaCounty Manufacturing (share of all jobs)9.0%16.5%17.9%16.3% Average Manufacturing wage (2009 dollars)57,58054,41246,11759,078 Finance and Insurance (share of all jobs)4.3%3.4%2.0% Average Wage, Finance and insurance (2009 dollars)84,46154,26742,55743,353 Share of Workers living in county, and working elsewheren/a5.0%26.0%43.8% Labor Force/Population0.4980.4860.4590.496

4. Economic Impact Workshop

5. UNEMPLOYMENT RATES

6. Economic Impact Workshop

8. GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY Annual Change Average Growth 2001-20112001-20072001-20112001-20072010-2011 -908123Construction-4.44%1.01%-14.45% -2701-1176Manufacturing-2.78%-1.89%5.85% -953-541Trade, Transportation & Utilities-1.09%-1.00%-1.12% -338-272Financial Activities-2.12%-2.63%-0.26% -433-127Information-8.15%-3.12%-30.71% -576-314Professional & Business Services-2.10%-1.81%-7.55% -878292Private Education & Health Services-1.45%0.86%-11.98% 205427Leisure & hospitality0.46%1.46%-2.73% -101-58Other Services-0.70%-0.64%1.23% -57-22Federal Government-2.53%-1.62%-20.55% -443-262State Government-1.73%-1.62%-2.01% -11-29Local Government-0.01%-0.10%1.99% 649-87 -6545-2046Total-1.48%-0.74%-0.87%

9. Economic Impact Workshop GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: LA PORTE COUNTY Annual Average Growth 2001-20112001-20072010-2011 Construction-4.44%1.01%-14.45% Manufacturing-2.78%-1.89%5.85% Trade, Transportation & Utilities-1.09%-1.00%-1.12% Financial Activities-2.12%-2.63%-0.26% Information-8.15%-3.12%-30.71% Professional & Business Services-2.10%-1.81%-7.55% Private Education & Health Services-1.45%0.86%-11.98% Leisure & hospitality0.46%1.46%-2.73% Other Services-0.70%-0.64%1.23% Federal Government-2.53%-1.62%-20.55% State Government-1.73%-1.62%-2.01% Local Government-0.01%-0.10%1.99% Total-1.48%-0.74%-0.87% Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"

10. Economic Impact Workshop EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY Change 2001200720112001-20072001-2011 Construction3,8634,7753,455912-408 Manufacturing10,8219,1648,968-1,657-1,853 Trade, Transportation & Utilities10,72611,77310,7461,04720 Financial Activities1,8181,8641,60846-210 Information668469449-199-219 Professional & Business Services3,6134,6203,7991,007186 Private Education & Health Services5,7508,38510,1062,6354,356 Leisure & hospitality5,3236,0665,757743434 Other Services2,0692,3062,504237435 Federal Government449407421-42-28 State Government363283201-80-162 Local Government7,7486,9376,535-811-1,213 Total53,50857,28354,6203,7751,112 Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"

11. Economic Impact Workshop GROWTH RATES FOR EMPLOYMENT CHANGE BY INDUSTRY: PORTER COUNTY Annual Average Growth 2001-20112001-20072010-2011 Construction-0.26%3.79%-6.24% Manufacturing-1.77%-2.67%1.10% Trade, Transportation & Utilities0.10%1.59%0.02% Financial Activities-1.17%0.44%0.19% Information-3.61%-5.29%0.67% Professional & Business Services0.78%4.41%-9.18% Private Education & Health Services5.92%6.67%4.56% Leisure & hospitality0.81%2.20%-3.24% Other Services2.02%1.95%5.65% Federal Government-0.62%-1.61%0.72% State Government-5.39%-3.62%-9.46% Local Government-1.49%-1.60%4.95% Total0.24%1.16%0.30% Source: US Department of Labor, Bureau of Labor Statistics, "Quarterly Census of Employment and Wages"

12. Economic Impact Workshop HOUSEHOLD EARNINGS (IN THOUSANDS OF DOLLARS) La Porte CountyAverageAverage Annual ChangeAnnual ChangePercent Change 20092001-2009 Farm earnings33,66114,7281,84122.45% Nonfarm earnings2,115,395259,82132,4781.68% TOTAL EARNINGS2,149,056274,54934,3191.76% AverageAverage Annual Porter CountyChangeAnnual ChangePercent Change 20092001-2009 Farm earnings17,2387,43092942.69% Nonfarm earnings2,980,040555,90869,4892.78% TOTAL EARNINGS2,997,278563,33870,4172.81% Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

13. Economic Impact Workshop

15. REAL FARM EARNINGS (CORRECTED FOR INFLATION, thousands of 1982-1984 DOLLARS) Sources: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income; US Department of Labor, Bureau of Labor Statistics, Consumer Price Index

16. Economic Impact Workshop LA PORTE COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, 2001-2009 (THOUSANDS OF DOLLARS) ChangeAvg Annual Change Top Five2001-2009 Local government53,2216,653 Social assistance53,0106,631 Heavy and civil engineering construction21,6422,705 Nursing and residential care facilities21,4222,678 Food manufacturing20,3402,543 Bottom Five Motor vehicles, bodies and trailers, and parts manufacturing-22,858-3,810 Fabricated metal product manufacturing-11,800-1,475 Warehousing and storage-9,845-1,231 Motor vehicle and parts dealers-8,825-1,103 Publishing industries, except Internet-7,834-979 Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

17. Economic Impact Workshop PORTER COUNTY - TOP AND BOTTOM FIVE CONTRIBUTORS TO EARNINGS GROWTH, 2001-2009 (THOUSANDS OF DOLLARS) ChangeAvg Annual Change Top Five2001-2009 Ambulatory health care services129,38416,173 Professional, scientific, and technical services59,1047,388 Other services, except public admin45,3365,667 Educational services37,7924,724 Administrative and support services33,0724,134 Food services & drinking places25,0883,136 Bottom Five Motor vehicles and parts dealers-9,376-1,172 Accommodation-6,768-846 Printing and support activities-6,344-793 Real estate-5,411-773 Gasoline stations-3,672-459 Source: US Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income

18. Economic Impact Workshop LA PORTE COUNTY: TOP TWENTY EXPORTING INDUSTRIES (Ranked by Expenditure) Export Base RankTop Twenty Expenditure (millions of $s) 1 Air and gas compressor manufacturing353.3 2 Other petroleum & coal prod. Manufacturing347.1 3 Ferrous metal foundries344.3 4 Amusement parks, arcades, & gambling indust.226.8 5 * Employment & payroll only (state & local govt, education)186.7 6 * Employment and payroll only (state & local govt, non-education)181.5 7 Cookie, cracker, and pasta manufacturing147.7 8 Motor vehicle parts manufacturing137.2 9 Private hospitals115.4 10 Transport by truck112.1 11 Heating equipment (except warm air furnaces) manufacturing98.8 12 Industrial gas manufacturing95.7 13 All other basic inorganic chemical manufacturing94.9 14 Other general purpose machinery manufacturing86.6 15 Soft drink and ice manufacturing79.4 16 Air purification and ventilation equipment manufacturing78.3 17 Wholesale trade businesses78.2 18 Transport by rail70.0 19 Food services and drinking places69.8 20 Electric power generation, transmission, and distribution68.7 Source: IMPLAN Model for La Porte County 2008.

19. Economic Impact Workshop PORTER COUNTY: TOP TWENTY EXPORTING INDUSTRIES (Ranked by Expenditure) Export Base RankTop Twenty Expenditure (millions of $s) 1 Iron and steel mills and ferroalloy manufacturing5,602.8 2 State and local government, education231.6 3 All other crop farming132.9 4 Ball and roller bearing manufacturing108.2 5 Pharmaceutical preparation manufacturing100.9 6 Nonferr. metal (ex.copper &aluminum) rolling, drawing, extruding & alloying99.5 7 Construction of other new nonresidential structures98.0 8 Steel product manufacturing from purchased steel93.1 9 Coating, engraving, heat treating and allied activities92.0 10 Motor vehicle parts manufacturing91.6 11 State and local government - except education91.0 12 Construction of new nonresidential commercial and health care structures80.8 13 Ground or treated mineral and earth manufacturing74.8 14 Synthetic dye and pigment manufacturing71.2 15 Transport by truck68.6 16 Private colleges, universities, and professional schools67.2 17 Plastics packaging mat. & unlaminated film & sheet manuf.62.8 18 Other industrial machinery manufacturing60.6 19 Valve and fittings other than plumbing manufacturing59.3 20 Wholesale trade businesses56.7 Source: IMPLAN Model for Porter County 2008.

20. Economic Impact Workshop Summary Remarks The region and state did not share completely in the national economic expansion of 2001 to 2008. The national downturn of 2008 and 2009 hit the region and state so hard, that employment has declined to below 2001 levels, but recovery is on the way. The Porter County economy appears to have a platform of service industries, including health care to compliment manufacturing in the economic recovery. La Porte County has sustained losses broadly throughout the economy, including manufacturing and service based industries. Sources of strength include components of manufacturing (machinery) and non residential construction. Both Porte and La Porte counties have realized very large, annual double digit growth rates in farm earnings from 2001 to 2009. Will this growth trend continue?