By: Carol Johnson, Southern Indiana Business Report
A heavy concentration of manufacturing firms in the communities nestled in the countryside of Washington County provides a contrast to the beautiful landscape that draws so many people to call the county home. Although Washington County is home to parts of Jackson-Washington State Forest, Clark State Forest, Elk Creek State Fishing Area, the Cave River Valley portion of Spring Mill State Park, the headwaters of the Lost River and the Blue River, it is also home to over 30 manufacturers who produce an astonishing 24.1% of the county’s GDP, much higher than the national average of 10.6%
Manufacturing in the county is principally centered in the county seat of Salem, although Campbellsburg and New Pekin are each also home to firms that produce goods for the automotive, furniture, machinery, and other industrial sectors. Together, the manufacturers in Washington County have established a county manufacturing location quotient of 2.3, meaning the county has 230% the average concentration of manufacturing employment seen around the nation.
Some industrial subsectors are especially predominant in the county. Motor vehicle parts manufacturing carries a location quotient of 14.7, reflecting the proximity of Washington County to auto assembly plants and/or tier one suppliers in the surrounding region. Office furniture manufacturing, general purpose machinery manufacturing, agricultural machinery manufacturing, and other industries also carry location quotients greater than 10, meaning they are 10 times more focused in Washington County than in the nation at large.
Manufacturing employment in Washington County is 1,317, constituting 18.6% of all employment in the county, more than double the national average of 8.1%. Despite the presence of so many manufacturers, Washington County proves to be a net exporter of workforce; more than five times as many commute out of the county as commute into the county. Presumably, the beautiful landscape of the county is an attraction that draws residents to live in the county though they work elsewhere.
The industrial workforce in the county earns average wages of $52,030 annually, below the national average of $76,987 for the sector. Wages are slowly catching up to the national average however, as the rate of growth over the past 10 years has averaged 3.2%, higher than the national average of 2.6% annual growth.
Productivity by the experienced manufacturing workforce created local GDP growth at a much higher rate than the national average during the last decade, until the COVID pandemic dramatically reduced output in 2020. Since that year’s drop in production, local production has resumed growing at a faster rate than the national average.