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When it Comes to Manufacturing, Indiana Says “Start Your Engines”

Indiana Manufacturing

In 2016, Indiana’s current-dollar GDP was $341.9 billion and ranked 16th in the United States top contributors. With a Human Development Indicator (HDI) of 4.56, Indiana ranks as the 39th most developed state. Estimates predict that this year the manufacturing industry is expected to go beyond its previous impression of 16% of that figure.

Indiana’s economy is considered as one of the best in the United States for several reasons. It has a conservative industrial system, the low taxes levied on commercial and industrial establishments, and a set of relatively stable labor laws that have been in place since the 19th century.

Let’s go beyond the stats and take a look at the most important sectors within the state in addition to some of the most significant companies within each sector.

Pharmaceutical Industry

Within this industry Indiana is the top contributing state, followed by California. Indiana’s pharmaceutical industry exports about $6040 million worth of products each year. The production peaked in 2012 following a 24% annual growth rate. This explains why today, pharmaceuticals are so consolidated within the state.

The pharmaceutical company, Eli Lilly & Company, ranks as #76 on “Forbes America’s Top Public Companies” and is the major player in Indiana. It was founded in 1876 in Indianapolis, by a Swedish chemist Colonel Eli Lilly, and his primary motivation was the lack of availability of medicines to Americans suffering in the post-Civil War era. The company is also the 10th largest employer in the state. A huge plus of Eli Lilly & Co. is that its employees are considered the most valuable resource. This is the reason that has led them many times to invest both in their people and in the state.

Automotive and Parts Manufacturing

While Indiana is the #7 exporter of vehicles and its parts, it has one of the lowest annual growth rates from the top exporters. However, this statistic changes when we limit it to only motor vehicle parts and accessories, a classification we can say is the state’s strength. In this category they come in 4th place very close to their 3rd place competitor, Ohio.

Within the automotive industry, we find one of the most emblematic auto producers, Rolls Royce. They operate within the US and in several parts of Canada. However, none of its venues can compare with the one in Indianapolis, which employs over 4000 of the city’s residents. In 2015, the company decided to invest approximately $600 million in modernizing it’s plant and for technology research. The ex-governor and current Vice President of  the United States, Mike Pence commented that the company chose the state of Indiana because they offer “the business-friendly climate needed to succeed”.  The reason behind this Rolls Royce decision were the incentives offered by the state such as tax credits and a skills enhancement grant.

Medical Device Manufacturing

By 2012 medical device manufacturing was the fourth largest sector in Indiana, generating about $2.84 million, with a very promising annual growth rate of around 7%. It supplies approximately 20,000 jobs for the state and creates an even closer relationship with the NAFTA members who are its main buyers.

Also within this industry, we find the 2nd largest company in the state, Cook Group Inc., reaching revenues of 2.2 billion for the past year. Within this group, we find Cook Medical, which is the part of the company that’s responsible for the production of minimally invasive medical devices. It has 41 medical specialties, and around 16,000 products making a difference in the lives of patients all over the world. We can highlight anesthesiology, pediatrics, gynecology, urology, neurology, and obstetrics. By 2016, it employed about 2500 people and rewards its employees with a salary 56% higher than the state average.

The state of Indiana during the last decades has created an environment where manufacturing industries can continue to develop. These favorable policies, on the part of the state government, have allowed the people of Indiana to collect the fruits of their labor and making Indiana the 13th “Best Place for Business”.

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Michigan Has a Rich History in Automotive Manufacturing

michigan manufacturing

Michigan has a rich history in automotive manufacturing with three Fortune 500 automakers calling this state home and accounting for 24% of total vehicle production in the United States.

The automotive manufacturing industry carries the responsibility of driving Michigan’s economy. In 2015, it contributed $36,953 million in revenue. No other industry generates anywhere close to this level of revenue. Furthermore, the automotive industry employs 20% of the state’s population.

Fiat-Chrysler 

Officially called Fiat-Chrysler Automotive, the auto group holds Chrysler, Dodge, Ram and Jeep as their primary product lines. In 2016 Fiat-Chrysler reported worldwide yearly earnings of $132.7 billion and the employment of 234,499 employees.

Fiat Chrysler Group is looking to expand their command of Michigan. They now intend to open a new Jeep production facility. According to reports, Syncreon, an Auburn Hills logistics company, will operate the facility and is expected to hire more than 250 employees, including warehouse, forklift and commercial drivers.

Ford Motor Co.

Founded in 1890 by Henry Ford, they’ve grown to be one of the top 3 automakers in the U.S. In 2016, Ford generated $151.8 billion in revenue. Ford’s global market share accounts for 7.3% of the entire auto industry, and employs 166,000 people worldwide.

Ford announced its plan to invest $700 million in its Flat Rock Assembly plant in Michigan. This would open 700 more employment opportunities and bring Ford’s total investment to $1.9 billion in Michigan this year.

General Motors Corp.

Founded in 1908 under the leadership of William C. Durant, the General Motors Company was initially meant to consolidate several motorcar companies. In 2016, General Motors generated $166.4 billion in revenue and provides job opportunities to 225,000 people worldwide.

General Motors and Honda are currently involved in a joint project in Michigan that would reap gold for the state. The venture aims to produce fuel cells which will be used in vehicles by 2020. The move is expected to create about 100 new jobs.

With such bright projects lined up in Michigan by the 3 Big Automakers, there is no doubt that the state will be continuing it’s rich history in automotive manufacturing and incur a lot of economic growth in the near future.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

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Washington is The Evergreen State for Businesses and Manufacturing

Washington Manufacturing

The Evergreen State of Washington is known for innovation & technology, skilled labor, superior life quality, a reliable logistics network and affordable energy resources–an environment that attracts businesses and manufacturers like a magnet. These factors contribute to Forbes ranking Washington #9 for ‘Best State for Business in America.’

Giving sanctuary to more than 250K organizations and Fortune 500 companies like Microsoft, Boeing, SpaceX, Starbucks, and Amazon add incredibly to Washington’s commercial development. With a GDP growth of 2.9 percent, Washington was ranked as the sixth best economy in the United States in 2016.

The manufacturing industry contributed $74.98 billion to its’ economy by manufactured goods exports. Washington’s 6,655 manufacturers employ 314,987. Moreover, this is the sixth consecutive year when Washington State gained manufacturing jobs. All great reasons to include Washington in our U.S. Manufacturing blog series.

The State is also a hub for advanced military and commercial aircraft, space exploration vehicles and unmanned aerial systems (UAS), as well as maintenance, repair & overhaul (MRO) and air travel and cargo. It provides job opportunities to around 19% of the state’s population. In 2015, the transportation sector contributed a value of $70 million to Washington’s economy.

Washington’s aerospace sector includes visionary firms like Aerojet Rocketdyne, Blue Origin, SpaceX, Spaceflight Industries, and Vulcan Aerospace developing and innovating new techniques every day. The aerospace giant Boeing is perhaps the biggest name with a firm footing in various cities.

With approximately 14K companies under its umbrella, the Information and Communication Technology Industry ranks as the second-best manufacturing industry in Washington. Shockingly, only 6% of the state’s population work for this industry, yet it contributes about $40 billion to their economy. Workers include coders, software engineers, game developers, testers and more.

The fact that around 95% of the state’s people are connected to 100 MBPs internet or better also clearly demonstrates the quality of their Information Technology. With growing companies such as Tableau and established software giants like Microsoft, Washington is an I.T. centric state.

Snatching third place for the biggest manufacturing sector is the food processing industry. This sector employees about 16% of the state’s population.

15 million acres of farmland is extensively used to produce the nation’s best pears, apples, grapes, red raspberries, sweet cherries and much more. Big agriculture means big food processing. Washington specializes in canning and preserving fruits and vegetables. However, they also have a foothold in canned meat and fish.

Their connectivity to Europe and Asia through 3666 miles of railways, 139 airports and 75 public ports (which includes cold storage facilities too) is applauded for the quick and timely export of crops to numerous countries.

Given the data, there is no doubt the future of Washington looks bright. It very well deserves to be called the Evergreen State for Businesses.

This article brought to you by The Cleveland Deburring Machine Company. CDMC can provide a deburring solution for gears, sprockets, aerospace and defense, automotive deburring, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

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