The economy of Indianapolis is centered on the City of Indianapolis and Marion County within the context of the larger Indianapolis metropolitan area. The Indianapolis–Carmel–Anderson, IN MSA, had a gross domestic product (GDP) of $134 billion in 2015. The top five industries were: finance, insurance, real estate, rental, and leasing ($30.7B), manufacturing ($30.1B), professional and business services ($14.3B), educational services, health care, and social assistance ($10.8B), and wholesale trade ($8.1B). Government, if it had been a private industry, would have ranked fifth, generating $10.2 billion.[1]
Compared to Indiana as a whole, the Indianapolis metropolitan area has a lower proportion of manufacturing jobs and a higher concentration of jobs in wholesale trade; administrative, support, and waste management; professional, scientific, and technical services; and transportation and warehousing.[3] The city's major exports include pharmaceuticals, motor vehicle parts, medical equipment and supplies, engine and power equipment, and aircraft products and parts.[4] According to the Bureau of Labor Statistics, the region's unemployment rate was 2.8 percent in May 2019.[5]
In 1991, United Airlines selected Indianapolis International Airport for a $1 billion (equivalent to $2.11 billion in 2023) maintenance operations center after a competitive bidding process involving more than 90 cities.[9] State and local officials agreed to subsidize United's costs by providing nearly $300 million (equivalent to $632.76 million in 2023) in tax credits and other incentives in exchange for thousands of high-wage jobs by 2004.[10] Following United's filing for Chapter 11 bankruptcy protection in 2002, the 1.7 million square foot (160,000 m2) Indianapolis Maintenance Center closed in 2003.[11] According to the Indianapolis Business Journal, "records are hard to come by, but during United's glory days, it is believed to have employed as many as 3,000 people at IMC [Indianapolis Maintenance Center]"—short of the 6,300 jobs United committed to in 1991.[12]
Indianapolis submitted a bid to lure Amazon's HQ2 in 2017.[13] In 2018, the company shortlisted Indianapolis as one of 20 finalists from a pool of 238 bids.[14]
Indianapolis's central location relative to other major North American markets, plus its extensive air, rail, and highway infrastructure, have positioned the region as an important center for the transportation and logistics industry. In 2022, the Indianapolis metropolitan area was home to some 5,280 logistics companies that employed about 126,000.[15] Park 100 in Pike Township on the city's northwest side is the largest industrial park in the region, encompassing an area of 1,800 acres (730 hectares) and gross leasable area exceeding 20,000,000 square feet (1,900,000 m2).[16]
Amazon has a major presence in the Indianapolis area, employing 9,000[17] across eight fulfillment centers: two in Indianapolis (IND4 and IND8); two in Plainfield (IND2 and IND5); two in Whitestown (IND1 and XUSE); and one each in Greenfield (MQJ1) and Greenwood (IND9). FedEx employs 7,000[18] workers across 35 facilities in the city.[19] The city is home to FedEx Express's National Hub which employs 5,800 workers in sorting, distribution, and shipping at Indianapolis International Airport.[19] The airport ranks among the ten busiest U.S. airports in terms of air cargo throughput.[20]
Indianapolis's importance as a national rail center has diminished since the middle of the twentieth century;[24] however, the city remains a regional hub for CSX Transportation, home to its division headquarters and a classification yard in the suburb of Avon.[25]Amtrak's primary heavy maintenance and overhaul facility is housed in the Beech Grove Shops, located in the enclave of Beech Grove.[26] Indianapolis is also home to Amtrak's largest material and supply terminal.[27] Located south of downtown Indianapolis, the Senate Avenue Terminal is an intermodal freight transport facility that is owned by the Indiana Rail Road and operated by CN.[28]
In 2020, Indianapolis's finance sector employed about 70,800 workers,[31] primarily in banking and insurance. Elevance Health, one of three Fortune 500 companies headquartered in the city, employs more than 2,600 at the L. Ben Lytle Center. It is the largest for-profit managed care company in the Blue Cross Blue Shield Association, providing healthcare coverage to more than 42 million policyholders. Elevance is also the largest publicly traded company based in Indiana, with revenue of $122 billion in 2020.[32][33]
OneAmerica Financial employs roughly 2,500 at its downtown Indianapolis headquarters in OneAmerica Tower.[34] OneAmerica, founded in the city as American United Life (AUL) in 1877, is the second-largest privately held company in Indiana, with revenue of $2.7 billion in 2020.[35][36]
Carmel-based CNO Financial Group provides life insurance, annuity, and supplemental health insurance products to more than 4 million U.S. customers. Its headquarters employs 1,200.[32]
According to a 2021 report commissioned by BioCrossroads, Central Indiana's life sciences and healthcare sector generates nearly $84 billion in total economic output and supports more than 331,000 jobs throughout the region.[43]
Agricultural feedstock and chemicals
In 2020, the Indianapolis–Carmel–Anderson metropolitan statistical area (MSA) ranked eighth among large MSAs in the U.S. for employment concentration in the agricultural feedstock and chemicals sector.[41][45] According to the Indy Chamber, agribusiness employs more than 16,000 throughout the region.[46]Corteva, one of three Fortune 500 companies headquartered in Indianapolis, is the region's largest employer in this sector, with about 1,500 jobs at the company's Indianapolis Global Business Center.[47]
Drugs and pharmaceuticals
In 2020, the Indianapolis–Carmel–Anderson metropolitan statistical area (MSA) had the sixth-highest employment concentration in the drugs and pharmaceuticals sector, rising to second among large MSAs (after the Durham–Chapel Hill MSA).[41]
Indianapolis' life sciences sector is dominated by Eli Lilly and Company, founded by Eli Lilly in 1876. In 2019, the multinational pharmaceutical company was among the largest public companies in the world with revenue topping $22 billion and a global workforce of more than 33,000.[48] Eli Lilly is one of three Fortune 500 companies headquartered in Indianapolis and is the city's largest non-governmental employer with a workforce totaling nearly 11,000 in research and development, manufacturing, and executive administration.[49] The company is deeply rooted in the city's civic and philanthropic fabric. Established in 1937 by Josiah K. Lilly Sr. and his two sons, Eli and Joe, the Lilly Endowment has grown into one of the world's wealthiest charitable foundations, with assets totaling more than $15 billion.[50]
Elanco, a pharmaceutical company that produces medicines and vaccines for pets and livestock, announced plans in 2020 to invest $300 million in establishing its global headquarters in downtown Indianapolis.[51] The company spun-off from Eli Lilly in 2019.[52] Other notable companies in the region include Novo Nordisk's Research Center Indianapolis, Inc. (NNRCII), established in 2015,[53] and Century Pharmaceuticals, founded in the city in 1966.[54] In 2020, multinational pharmaceutical company Novartis announced plans to open a manufacturing plant in Indianapolis.[55]
Medical devices and equipment
Beckman Coulter's Life Sciences division is headquartered in Indianapolis and employs more than 500 in the development and production of precision instruments.[56] In 2015, Cook Regentec (a subsidiary of Bloomington, Indiana-based Cook Group) was founded in the city to develop tools and technology for regenerative medicine, immunotherapy, and 3D bioprinting.[57] In 2020, Cook Group's Cook Medical division announced plans to locate a plant in Indianapolis to manufacture medical devices.[58]
Formed in 2013, the Indiana Biosciences Research Institute (IBRI) is a nonprofit research and technology organization based in Indianapolis that serves as a conduit between the state's research universities and life science industries.[63] The IBRI is the first industry-led collaborative life sciences research institute in the U.S., focusing on diabetes, metabolic disease, and poor nutrition.[64][65]
In 2021, nearly 130,000 Central Indiana residents were employed in healthcare.[43] Indianapolis is home to Indiana University Health, the state's largest healthcare system, with a workforce of 36,000 across 16 hospitals.[66] Community Health Network is another nonprofit hospital system based in the city, employing 16,000 between nine hospitals and 15 urgent care clinics throughout the region.[67][68] Eskenazi Health is the city's public healthcare system, employing more than 4,500 at Sidney & Lois Eskenazi Hospital and 30 outpatient service sites, receiving nearly 1 million outpatient visits annually.[69]
St. Louis-based Ascension, among the largest nonprofit private healthcare systems in the U.S., employs about 7,100 in Central Indiana, with nearly 2,000 staffed beds and 4 million outpatient visits.[70]Mishawaka, Indiana-based Franciscan Health, another nonprofit private healthcare system, has a regional workforce of 5,300 and 600 staffed beds.[70]
Retail trade
Two national retailers are based in Indianapolis. Founded in 1976, Finish Line, Inc. operates more than 500 athletic apparel stores throughout the U.S. The company was acquired as a subsidiary of United Kingdom-based JD Sports in 2018.[71] Founded in 1995, Lids specializes in athletic headwear with more than 1,100 stores throughout the U.S. and Canada.[72]
Four major department stores were based in Indianapolis, including H. P. Wasson and Company (1874–1980), L. S. Ayres (1872–2006), L. Strauss & Co. (1853–1993), and William H. Block Co. (1874–1987). Indianapolis serves as headquarters for two of the largest commercial real estate investment trusts in the U.S., Simon Property Group and Kite Realty Group. Simon's portfolio of more than 200 commercial shopping mall properties in North America and Asia comprises a gross leasable area of some 241,000,000 square feet (22,400,000 m2). Duke Realty manages a portfolio of 550 logistics facilities, primarily used for distribution or e-commerce.
Located in downtown Indianapolis, Circle Centre is a regional mall that opened in 1995 with a gross leasable area of about 730,000 square feet (68,000 m2) over four floors.[74] In recent years, Circle Centre has struggled with the departures of its two anchor tenants.[75]
The Fashion Mall at Keystone opened on the city's north side in 1973 and has since become the region's upscale shopping destination, boasting 120 specialty stores and restaurants covering 710,587 sq ft (66,015.7 m2) of gross leasable area.[76]
Glendale Town Center, also on the city's north side, opened in 1958 as the region's first suburban shopping mall. The center was designed by famed shopping mall architect Victor Gruen.[77] After years of diminishing revenue and competition from nearby Castleton and The Fashion Mall, Glendale was largely remodeled into an open-air power center in the mid-2000s,[78][79] covering 393,002 square feet (36,511.1 m2) of gross leasable area.
Located on the northwest side of the city, the 1,200,000 square feet (110,000 m2) Lafayette Square opened in 1968 as a super-regional mall but has experienced decline since the mid-2000s.[80] In 2020, Lafayette Square was 60% occupied after the departure of several national anchor tenants.[81]
Washington Square, located on the city's far east side, is a super-regional mall opened in 1974. Similar to Lafayette Square, Washington Square has experienced the loss of several national anchor tenants and declining performance in recent years.[82][83] The mall covers 965,000 sq ft (89,700 m2) of gross leasable area and a single occupied anchor tenant.
Indianapolis-based ExactTarget, a provider of digital marketing automation and analytics software services, was co-founded in 2000 by local entrepreneurs, Chris Baggot, Scott Dorsey, and Peter McCormick.[108] In 2013, the company was acquired by Salesforce for $2.5 billion.[109] Salesforce has the largest workforce of local tech firms, employing about 2,100 in Indianapolis.[110] In 2016, the company purchased naming rights to Salesforce Tower in downtown Indianapolis, the tallest building in Indiana.[111]
^Klacik, Drew (September 2013). "Why Downtown Indianapolis Matters"(PDF). Indiana University Public Policy Institute. Archived from the original(PDF) on September 3, 2017. Retrieved July 21, 2017.
^O'Malley, Chris (September 14, 2009). "Hub faces challenges". Indianapolis Business Journal. ProQuest220651455. Retrieved November 27, 2020. – via ProQuest(subscription may be required or content may be available in libraries)
^Bogle, Victor M.; Darbee, Jeffrey T. (2021) [1994]. "Railroads". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 30, 2024.
^Bogle, Victor M. (2021) [1994]. "Beech Grove Railroad Shop". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 30, 2024.
^Hetherington, James (2021) [1994]. "One America Financial Partners". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved September 24, 2021.
^Plimpton, Thomas L.; Opsahl, Sam (2021) [1994]. "American Fletcher National Bank". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 30, 2024.
^Young, Noraleen (2021) [1994]. "Indiana National Bank". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 30, 2024.
^Markisohn, Deborah B. (2021) [1994]. "Merchants National Bank". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 30, 2024.
^ abZeigler, Connie; Blair, Lyndsey (2021) [1994]. "Expositions and Conventions". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved January 23, 2022.
^Markisohn, Deborah; Snyder, Morgan; Blair, Lyndsey (2021) [1994]. "Visit Indy". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved January 23, 2022.
^Markisohn, Deborah; Blair, Lyndsey (2021) [1994]. "Indiana Convention Center". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved March 3, 2024.
^Keene, Judy; Blair, Lyndsey D. (2021) [1994]. "Indiana Sports Corporation". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved September 2, 2024.
^Davidson, Donald (2021) [1994]. "Indianapolis 500-Mile Race". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved September 2, 2024.
^Holmes Hawks, Beth (2021) [1994]. "P. R. Mallory and Company". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 31, 2024.
^Arland, David H.; Van Allen, Elizabeth J. (2021) [1994]. "Thomson Consumer Electronics". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 31, 2024.
^Johnson Taggart, Charles; Van Allen, Elizabeth J. (2021) [1994]. "Western Electric". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved August 31, 2024.
^ abFurlong, Patrick; Van Allen, Elizabeth (2021) [1994]. "Automobile Industry". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved January 23, 2022.
^Johnson Taggart, Charles; Van Allen, Elizabeth (2021) [1994]. "Ford Motor Company". Digital Encyclopedia of Indianapolis. Indianapolis Public Library. Retrieved January 23, 2022.
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