INDIANAPOLIS (Oct. 2, 2024) – Conexus Indiana announced today the results of its most recent study measuring the impact of Indiana’s Manufacturing Readiness Grants program. The report reaffirms the program’s pivotal role in transforming and modernizing Indiana’s advanced manufacturing sector by incentivizing capital investments in advanced technologies at small- to mid-sized businesses.
The Manufacturing Readiness Grants program was launched in 2020 as part of the Indiana Economic Development Corporation’s (IEDC) Economic Activity Stabilization and Enhancement (EASE) program. The Indiana General Assembly extended funding for the program in 2021 and again in 2023. The program has seen increasing interest, with the number of applications and continuing to exhaust funding each fiscal year.
Since the program’s inception, $57 million in matching grants through 526 awards have been made in 79 Indiana counties. The program boasts a 13:1 leverage ratio, demonstrating that for every dollar granted, manufacturers have invested an additional $13 of private funding into their projects, equating to $813 million in private sector investments in technologies that boost productivity and alleviate labor market constraints.
“The Manufacturing Readiness Grants program has proven year after year to be a tremendous asset for manufacturers in every corner of the state,” said David Watkins, senior vice president of Entrepreneurship and Small Business at the IEDC. “These grants are enabling manufacturers to modernize their operations, bring efficiencies into their systems and keeping Indiana businesses at the forefront of Industry 4.0.”
The 2024 Manufacturing Readiness Grants Impact Report analyzed program data from July 2020 through December 2023 to determine technology adoption trends and identify how and why those technologies are being deployed in manufacturers’ operations. The report also analyzed the program’s reach across target demographics. In summary:
- At the end of 2023, 7.1% of Indiana’s eligible small- to mid-sized manufacturers had been supported through the program. Over 80% of Indiana’s manufacturing economy is made up of small- to mid-sized enterprises with less than 500 employees.
- At the end of 2023, nearly a third of all grant dollars had been provided to manufacturers in rural areas. Rural communities benefit tremendously from thriving small businesses, particularly in manufacturing, which provide higher-than-average wages and pathways for upward social mobility.
- At the end of 2023, 75% of awards had been granted to businesses that have been in operation for more than 10 years and 12% of awards to businesses less than five years old. New technologies can be particularly useful for long-standing businesses and early-stage companies.
“The Manufacturing Readiness Grants program continues to empower Indiana manufacturers to embrace the future of Industry 4.0,” said Mitch Landess, vice president of Innovation and Digital Transformation. “By supporting cutting-edge technology adoption, we’re enabling companies to enhance productivity, reduce labor constraints and drive innovation in ways that were previously out of reach. This year’s report reaffirms that the program is not just an investment in technology but in the long-term competitiveness and growth of Indiana’s entire manufacturing ecosystem.”
The 2024 report reveals a sustained commitment to driving Industry 4.0 adoption, with companies increasingly turning to automation, robotics and digital systems to boost productivity and alleviate workforce challenges. Among the highlights, which are based on 80 survey responses from companies that took advantage of the program, are:
- 35% of companies expect revenue increases exceeding 10%, with an average growth of $1.6 million.
- Each grant has, on average, led to the creation of four new jobs, accompanied by an expected $177,000 in wage growth per company.
- 60% of companies reported upskilling their workforce to meet the demands of new technology, addressing labor shortages through targeted training.
“Indiana’s leadership in Industry 4.0 innovation has inspired talks of similar programs in states such as Michigan, Illinois and Kentucky,” Landess shared. “Indiana’s ability to scale the program while maintaining high standards of excellence continues to set it apart as a national model for manufacturing innovation.”
To read the full 2024 Manufacturing Readiness Grants Program Impact Report, visit the Conexus Indiana website. The IEDC is currently accepting applications for Indiana manufacturers planning to make tech-enabled capital investments in smart manufacturing. Visit the Conexus Indiana website to learn more and apply.
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About Conexus Indiana
Conexus Indiana, a branded initiative of the Central Indiana Corporate Partnership (CICP), is dedicated to advancing the Hoosier State’s position as a global leader in advanced manufacturing and logistics. Working closely with industry, academia, and government partners, Conexus Indiana drives workforce development, economic growth, and innovation across the state. For more information, please visit ConexusIndiana.com