Market Snapshot: Indiana

Market Snapshot: Indiana

50 states in 50 weeks – This series leverages our market intelligence database to bring you powerful AE industry insights. Each week, we highlight a new state in green while previously featured states fade to a lighter green. Next, let’s look at Indiana.

Indiana Economic Performance and Outlook Grade*: A-

• Economy: B
• Population: B
• Workforce: C+
• Financial/Fiscal Health: A-

* Overall grade is assigned based on a curve (relative to all states’ performances).

Among the strongest Midwest states for AE firms in recent years, Indiana is ranked fourth in business friendliness by CNBC and third in economic stability and outlook on the ALEC-Laffer State Economic Competitiveness Index. A 2019 law exempting data center equipment, construction costs, and energy use from state sales taxes has sparked development of campus-style technology parks featuring research facilities, office spaces, and laboratories. Amazon, Google, Microsoft, and Meta are among the major tech companies making major investments in Indiana. With announced tariffs potentially impacting the Hoosier State’s major goods-producing industries, S&P Global forecasts the 3.8% Gross State Product rise in 2024 to slow to 1.3% in 2025 and 1.4% in 2026. Recent stock market performance, federal policy, and slower job and wage growth are projected to cause the state budget to fall short of recent projections and force program cuts or tax hikes. See below for regional highlights in Indiana:

• Indianapolis: Thanks to a surging economy and population growth outpacing the rest of the state and country, Indiana Business Review projects real GDP growth in the state capital to accelerate from 2.3% in 2024 to 3.1% in 2025. Total construction starts in Indianapolis are forecast to rise 30% between 2024 and 2026, according to Dodge Data & Analytics. Major projects include Eli Lilly’s $13 billion LEAP innovation and research hub in Boone County and Indiana University Health’s $4.3 billion downtown hospital complex. 
• Northwest Indiana: According to Indiana Business Review, northwest Indiana is in its strongest economic position in decades. Driven historically by the steel and other manufacturing industries, the region is transitioning to a more service-oriented economy as it benefits from its proximity to Chicago and affordable housing. Its geographic location is driving large-scale warehousing, distribution, and cold-storage facility projects. Amazon Web Services is developing an $11 billion data center complex in New Carlisle, where General Motors and Samsung SDI are also building a $3.5 billion electric vehicle battery plant. AE industry employment in northwest Indiana spiked 15% from 2019 to 2024.
• Fort Wayne: Allen County’s population is projected to rise 14% over the next 30 years, nearly triple the increase in the state as a whole. Google is investing in a $2 billion data center in the city. 

For sector-specific data and insights for Indiana or questions about our market intelligence and research services, call/text Rafael Barbosa at 972-266-4955 or email [email protected].