February 2005

Purdue summit sets sights on Kentuckiana manufacturing economy

John Vellinger

Indiana has traditionally ranked among the top manufacturing states in the nation, based on the percentage of our workforce and economic output involved in the manufacturing sector. It's estimated that nearly 575,000 Hoosiers work directly for manufacturing companies, which contribute approximately 30 percent of Indiana's gross state product.

Across the Ohio River, manufacturing's impact is nearly as significant: The Louisville area is home to around 20 percent of Kentucky's 4,500+ manufacturing facilities, and 25 percent of the state's manufacturing jobs. According to estimates by the U.S. Census, nearly 40,000 residents of Louisville are employed directly by manufacturers.

The "Kentuckiana" economy relies on a strong manufacturing base. The future of our regional economy is tied inextricably with the future of manufacturing — but there is uncertainty about what the future holds. The last recession hit manufacturing hard, punishing the sector for a glut of capacity and equipment at the end of the 1990s. Indiana, for example, lost nearly 100,000 manufacturing jobs since 2000.

Maintaining and expanding the region's manufacturing base will be a key part of an upcoming advanced manufacturing summit sponsored by the Purdue University College of Technology and the Purdue Center for Advanced Manufacturing.

As Indiana's land-grant university, Purdue has taken a strong role in the state's economic development efforts. Through its Technical Assistance Program, Purdue provides free consulting services to 400+ Indiana companies each year. Spending nearly $350 million annually on research, Purdue also produces significant intellectual capital that supports cutting-edge manufacturing enterprises. Purdue has offered a presence in New Albany since 1964, and the Purdue School of Technology at New Albany has been serving students since 1987.

Purdue's Center for Advanced Manufacturing was established to seek out partnerships with the manufacturing sector. For example, working with the Indiana Hardwoods Association, researchers have been using cryogenics and in-process cooling techniques on cutting blades, which result in truer cuts, longer blade wear, less energy use, quieter factories and significant cost savings for furniture-making companies. Wood processing and hardwood furniture manufacturing companies employ nearly 50,000 Hoosiers, and are a mainstay of southern Indiana's economy.

These sorts of research collaborations can help companies seize a competitive edge and keep manufacturing jobs in the region.

Purdue is also focused on training — and retraining — students for manufacturing-related careers. Recent studies have found that while traditional production employment has declined, there has been growth in related occupations — the technical services, research and design, financial and marketing jobs that support manufacturing enterprises. While these jobs may not always be classified as "manufacturing positions," they should be included in any analysis of total manufacturing employment. With world-class programs in engineering, technology and business, Purdue is supporting these career choices within the broad manufacturing sector.

Since 2002, Purdue has sponsored an advanced manufacturing summit at its West Lafayette, Indiana campus. The New Albany event marks the first in a series of regional summits to better connect Purdue's resources with the specific needs of manufacturers. The summit provides a forum for industry leaders, government and economic development officials and Purdue experts to discuss their mutual goals of job creation and business growth.

The advanced manufacturing summit, which is free and open to the public, will take place from 8 a.m. to 3:30 p.m. Monday (2/28) on the campus of Indiana University Southeast in the University Center's Indiana Room. This event is a must for anyone concerned about the future of manufacturing and our regional economy. Progress starts with dialogue, and this summit starts the discussion.