Five years post-COVID-19 pandemic, regions worldwide are still navigating the challenges that have hampered economic development. Despite the downturns elsewhere, Indiana leaned into its pre-pandemic momentum to remain consistent in growth.
The Indiana Economic Development Corporation (IEDC) reported that by the end of 2023, the state experienced a seventh record-breaking year for economic development, with over 200 companies locating to or expanding in Indiana bringing with them $28.7 billion in investments to the economy and creating nearly 22,000 new jobs.
Now, economic and utility organizations are looking ahead with significant goals to move the needle on Indiana’s economic landscape even further in 2025.
Supporting Existing Initiatives
The Indiana Economic Development Association (IEDA) will continue its focus over the next year by enhancing its toolkit developed to support local businesses and strengthen economic development corporations. This is a major focus, according to Matt Kavgian, executive director of IEDA, because many of those associations are currently lean and underfunded.
“We want to add to the helpful tool of tax increment financing (TIF) that is already in place by advocating for additional stipulations in TIF projects,” he said. “We are placing a sharp focus on entrepreneurship as we nurture start-ups and innovation.”
Northern Indiana Public Service Company (NIPSCO), the largest natural gas distribution company and the second largest electric distribution company in the state, will continue to transition from a majority coal generation portfolio to new technologies that include wind, solar and battery storage. Rick Calinski, director of public affairs and economic development for NIPSCO, said the company will complete its Integrated Resource Plan (IRP) by the end of 2024.
“With a lot of forecasting and stakeholder input, we will let the market help drive the best mix of generation assets that will power our customers into the future,” Calinski said.
Indiana American Water plans to continue its work replacing lead service lines. To date, the company has invested $105 million to have the lines removed throughout the 50 communities the utility company supplies with water and wastewater services. According to Justin Schneider, director of Community Affairs for Indiana American Water, the resource is vital to the state’s economic development. “It underpins key sectors such as manufacturing and processing, energy production and expanding residential community,” he said.
Nathan Brown, senior manager of public relations for IEDC, said the organization will continue its focus on executing projects from the Regional Economic Acceleration and Development Initiative (READI). The program was launched in 2021 by Gov. Eric J. Holcomb and initially allocated $500 million to accelerate economic development throughout the state. READI 1.0 awarded $487 million to 353 projects and programs.
In 2023, READI 2.0 was established with another $500 million to assist with projects and programs to improve quality of life, place and opportunity. The program received additional funding of $250 million from the Lilly Endowment Inc. To date, the $1.25 billion program allocates funding to regions that span all of Indiana counties.
Elevating Infrastructure
Schneider said next year and in the years to follow, Indiana American Water will be investing about $200 million annually to address ongoing efforts to the utility company’s infrastructure goals.
“These include new water treatment facilities, installing new or replacing water mains, pumping stations and storage tanks,” he said. “These upgrades will modernize infrastructure, improve water quality and allow us to provide continued reliable service to meet increasing demands.”
Calinski said NIPSCO will replace and upgrade assets with new technology to provide better service and more reliability. Throughout the company’s service area, NIPSCO will replace poles and circuits, upgrade gas lines, and improve and build new substations to meet new customer growth.
IEDA will create a strategic financial plan that outlines the design, construction and maintenance of vital infrastructure. IEDA officials will work with the public and private sectors to develop the plan to ensure that investments will support the long-term needs of the state’s economy.
Strengthening Workforce Development
In an effort to support investment that leads to a stronger workforce, Calinski said NIPSCO has established a major goal for 2025 to identify and catalog available properties or areas in municipalities where community leaders want to target strategic growth.
“Energy is a critical component to any small or large business, and we will continue to partner with our local leaders to support investment and job creation in the communities we serve,” he said.
Kavgian noted that IEDA’s plan is to invest in affordable healthcare and childcare to support a skilled workforce. The organization will also promote training and education programs, including an emphasis on remote workforce readiness.
“We will also prioritize building out our broadband infrastructure around the state to meet the needs of a remote or hybrid workforce,” he said.
Engaging the Community
Beyond IEDA’s legislative goals, the organization plans to engage small- and medium-sized businesses in conversations that help more with aligning strategies for growth. Through IDEA’s Foundation, the association will continue to strengthen its scholarship program to foster future talent in the field.
The IEDC will host the Global Entrepreneurship Congress (GEC), a four-day event for the Global Entrepreneurship Network, in June. The gathering will promote collaboration among ecosystem builders, founders and government partners.
Brown said IEDC is looking forward to hosting the event and “continuing to support Hoosier businesses and entrepreneurs at all levels and sizes.”
Calinski said NISPCO will have a widened focus on consumer service in 2025, finding new ways to enhance customer experience and communication. The company plans to introduce updated online tools and new meter technology.
“Our leaders understand how critical of a role we play in the day-to-day lives of our customers, and we will continue to look for ways to improve the customer experience,” he said.
Beyond 2025
As economic development agencies and companies implement new initiatives and goals in 2025, they have their sights set on longer-term projects as well. Brown said the IEDC will continue to focus on landing deals the organization has in the pipeline that will make a positive impact in the state for decades to come.
Calinski said NIPSCO will continue to monitor two significant trends in the state – cold storage facilities and Mega-Load projects like data centers.
“NIPSCO is positioned well to serve these large load energy users as we have a robust transmission system that has allowed us to serve some of the largest industrial companies in the United States,” he said. “NIPSCO’s number one goal while discussing these opportunities is to ensure the projects are in the best interest of all customers in terms of safety, reliability and affordability.”
As all agencies involved work together to support economic development in Indiana, Kavgian said he feels positive about the outlook in the state.
“As much as we are all in a season of change – politically, economically, and even with disruptive things creating rapid change like AI, we have a lot of great people focused on how these things affect economic development. I feel a lot of collaboration happening that hasn’t happened before,” he said. “I feel we are well poised to be a successful player in economic development and there are many good things to come.”
