INDIANAPOLIS (September 9, 2022) – Conexus Indiana announced today results of a comprehensive study measuring the impact of the statewide Manufacturing Readiness Grants program. The $138.9 million in technology adoption projects spurred by Manufacturing Readiness Grants are adding jobs, growing wages and increasing company revenues, resulting in a 26 percent internal rate of return for the State of Indiana.
The Manufacturing Readiness Grants program was launched in 2020 as part of the Indiana Economic Development Corporation’s Economic Activity Stabilization and Enhancement (EASE) program and was extended through a separate appropriation from the Indiana General Assembly in 2021. Since inception, $17.4 million in matching grants through 212 awards have been made to stimulate private sector investments in technologies such as next-generation machines, cobots, machine vision and additive manufacturing to modernize Indiana’s manufacturing industry.
The “Manufacturing Readiness Grants Program 2022 Impact Report” analyzed data from nearly 170 projects to determine technology adoption trends and identify how and why those technologies are being deployed in manufacturers’ operations. A separate survey of 75 Manufacturing Readiness Grants recipients showed the program’s impact on jobs, wages and company revenue.
Key findings from the survey include:
- Companies that adopted a smart manufacturing technology on average added five new positions; they also anticipated wages to grow on average $196,000 per project.
- The average revenue impact to companies was $2.5 million, with 37 percent of those companies reporting that they anticipated revenue growth of more than 10 percent.
“Our data show that Indiana companies and the State of Indiana are clearly benefiting from the Manufacturing Readiness Grants program,” said Ryan Henderson, Conexus Indiana’s director of Innovation and Digital Transformation. “Automation and advanced technologies continue to help companies grow and add new positions, providing additional opportunities for Hoosiers to succeed in the advanced manufacturing industry.”
In its review of projects supported by Manufacturing Readiness Grants, Conexus Indiana uncovered several trends among Indiana manufacturers:
- As automation and advanced technologies become more pervasive in manufacturing operations, companies are adding jobs and increasing wages.
- Indiana small- to medium-sized companies are accelerating technology adoption (i.e., cobots, advanced robotics and machine vision) to a pace similar to their larger counterparts to support growth and improve productivity.
- Digital adoption is demonstrating value across a wide array of industry segments, including fabricated metal products, plastics and rubber, food and beverage and furniture.
- Strategic business drivers for technology investments include improved product quality, customer service improvements and onshoring and expansion into new markets, highlighting how companies are increasing their competitive edge over national and global peers.
Conexus Indiana partnered with Purdue University’s Dauch Center for the Management of Manufacturing Enterprises to analyze technology trends among the dozens of Manufacturing Readiness Grants awardees. Additionally, Conexus Indiana fielded an Impact Survey during the month of April 2022 at the request of the Indiana Economic Development Corporation to gather data on jobs, wages and company growth.
To read the full “Manufacturing Readiness Grants Program 2022 Impact Report” visit the Conexus Indiana website at [insert web address]
Manufacturing Readiness Grant awards announced as of September 6, 2022:
- Number of grant awards: 212
- Grant funding: $17.4 million
- Total company capital investment: $138.9 million
- Leverage ratio (calculation of projected capital investment made by industry as a result of grant funding): 7:1. For every $1 of grant funding, $7 of industry investment is generated.
- Total number of Indiana counties where grant awards have been made: 60
About Conexus Indiana
For more than a decade, Conexus Indiana, one of the Central Indiana Corporate Partnership (CICP) non-profit initiatives, has been positioning the Hoosier State as the best place for advanced manufacturing and logistics industries to innovate, invest, employ and succeed. By collaborating with industry, academic and public sector partners on a shared vision for an innovative, skilled workforce and stronger business climate, Conexus Indiana has helped to create opportunities for advanced manufacturing and logistics companies, prepare Hoosiers to succeed in the state’s largest industry sectors and maintain Indiana’s competitive advantage. For more information, visit conexusindiana.com.