Evansville: Economy
Major Industries and Commercial Activity
Evansville is the industrial, agricultural, retail, and transportation center for the Tri-State region of Indiana, Illinois, and Kentucky. The city is situated in the heart of rich coal fields. Major corporations have established regional operations and corporate headquarters in Evansville, primarily because of the area's rich natural resources, diverse transportation routes, and productive workforce. Industries in the area produce appliances, pharmaceuticals, aluminum, equipment and machinery, food products, furniture, pottery, textiles, plastics, metals, and chemicals.
A fertile farming region, part of the Midwest agricultural belt, surrounds Evansville. Regional farms yield corn, soybeans, wheat, oats, barley, melons, apples, peaches, pears, small fruits, potatoes, and various other vegetables. Meat, fruit, and vegetable packing plants operate in the city.
Evansville retail and wholesale trade areas rank second in size in the state of Indiana. The city's financial community also serves the region with a number of major banks, brokerage firms, credit unions, consumer finance companies, and the loan production offices of national and international banks.
Items and goods produced: appliances, nutritional products, pharmaceuticals, aluminum sheet, automobiles, auto glass, coal, oil, plastics, corn, soybeans, wheat
Incentive Programs—New and Existing Companies
Vision-E, the Evansville Regional Economic Development Corporation, works with the Evansville Chamber of Commerce for the economic well-being of the community and is the regional coordinator for economic development. The nonprofit organization assists companies with location studies, building and site searches, and feasibility studies, working closely with state and local economic development groups. One of these programs, the Strategic Development Fund, teams up two or more state businesses in similar markets, offering grants or loans to spur cooperation and creativity between industrial sectors or regions of the state.
Local programs
Two square miles in Evansville are a designated Urban Enterprise Zone, offering inventory tax credits and other tax credits to eligible businesses. More than 400 companies operate within the zone. The nonprofit Evansville Industrial Foundation develops industrial sites to stimulate economic growth in the area, using a revolving fund to purchase land and develop infrastructure. Through the Tax Incremental Financing program, local municipalities are able to fund infrastructure improvements and new construction in areas needing growth or rehabilitation. The increased tax revenues from the valuator increase are used for repayment of the bond issue.
State programs
The State of Indiana provides many programs to help Evansville area businesses. Grants and loans are available for community infrastructure improvements that would add value to company grounds, including funding for roads, rail spurs, water lines, and sewer lines. EDGE, a state tax credit based on payroll, allows Indiana individual income tax withholdings from company employees to be credited against the company's state corporate income tax liability. Excess withholdings would be refunded to the company.
Job training programs
The Indiana Department of Commerce provides grants to support skills training programs for local businesses. The funds can be used in a variety of ways, including customized training programs in specific skills areas for new employees and skills development training for existing employees. The Indiana Department of Workforce Development also provides labor force recruitment services, including help with the application process, testing, and the assessment and screening of qualified applicants.
Development Projects
Recent development in Evansville has revolved around the creation and improvement of industrial parks and districts, a move that has attracted many new companies to the area. Illinois-based Tenneco Automotive is in the process of building a new 28,000 square foot plant in the Vanderburgh Industrial Park, where the company will manufacture exhaust systems for vehicles. Federal Express is also planning to build a 57,000 square foot ground distribution center in Vanderburgh Industrial Park, employing 72 people. And recently, Evansville received a $280,000 state grant to develop a Downtown Certified Technology Park. Plans include fiber-optic wiring for higher-speed Internet access and the creation of a business incubator to help develop high-tech businesses.
Economic Development Information: Metropolitan Evansville Chamber of Commerce, 100 N.W. 2nd Street, Suite 100, Evansville, IN 47706; telephone (812)425-8147
Commercial Shipping
Three public and several private port facilities receive year-round service from five major barge lines operating on the Ohio River. The river connects Evansville with all river markets in the central United States and on the Great Lakes and with international markets through the port of New Orleans. Evansville has been a U.S. Customs Port of Entry for more than 125 years. Because of this, it is possible to have international cargo shipped to Evansville in bond. The international cargo can then clear Customs in Evansville rather than a coastal port. Linking Evansville's ports to ground and air transportation networks are express and air freight carriers, three major railroads, and more than 40 motor freight companies that maintain terminals in Evansville. There are also six major highway systems providing access to and from the Evansville area.
A location near the geographic center of the nation and access to inland water transportation contribute to Evans-ville's position as the second largest warehousing hub in Indiana. Services include modern public warehouses, rail-barge-truck-storage facilities, and storage-in-transit privileges with rail carriers.
Labor Force and Employment Outlook
Evansville boasts a highly productive labor force with a Midwestern work ethic and low absentee rates. Indiana's workers' compensation insurance rates and unemployment compensation costs are among the lowest in the country. The city has one of the highest percentages of skilled and semiskilled production workers relative to the total workforce, compared to surrounding states. In addition, the employee turnover rate is less than five percent per year. Because of the close proximity to surrounding counties, and ease of access to the Evansville area, companies regularly draw from a labor force that lies within a 30-mile radius of their work site.
The following is a summary of data regarding the Evansville metropolitan area labor force, 2004 annual averages.
Size of non-agricultural labor force: 177,800
Number of workers employed in . . .
construction and mining: 12,500
manufacturing: 35,300
trade, transportation, and utilities: 36,800
information: 2,900
financial activities: 6,400
professional and business services: 16,700
educational and health services: 25,200
leisure and hospitality: 16,500
other services: 7,500
government: 18,000
Average hourly earnings of production workers employed in manufacturing: $18.95
Unemployment rate: 5.5% (March 2005)
| Largest employers | Number of employees |
| Toyota Motor Manufacturing | 5,000 |
| Shoe Carnival, Inc. | 4,250 |
| St. Mary's Medical Center | 3,500 |
| Deaconess Hospital | 3,000 |
| Bristol Myers Squibb | 2,500 |
| Whirlpool Corporation | 2,400 |
| ALCOA Warrick Operations | 2,294 |
| Vectren | 1,769 |
| GE Plastics | 1,700 |
| T.J. Maxx | 1,500 |
Cost of Living
The following is a summary of data regarding several key cost of living factors for the Evansville area.
2004 (3rd Quarter) ACCRA Average House Price: $236,020
2004 (3rd Quarter) ACCRA Cost of Living Index: 101.1 (U.S. average = 100.0)
State income tax rate: 3.4%
State sales tax rate: 6.0%
County optional income tax rate: up to 1.0%
Local sales tax rate: None
Property tax rate: up to 10.4% of assessed value
Economic Information: Metropolitan Evansville Chamber of Commerce, 100 N.W. Second Street, Suite 100, Evansville, IN 47706; telephone (812)425-8147. Vision-E, PO Box 20127, Evansville, IN 47708; telephone (812)423-2020