A number of indications that the local economy is making a slight recovery were pointed out during an economic outlook briefing for La Porte County Tuesday morning at Purdue University North Central.
Hosted by the Greater La Porte and Michigan City Area Chambers of Commerce as well as the Purdue University North Central College of Business, economic professors at PNC discussed how the County compares to state and national averages in a variety of categories and offered thoughts on how to improve the current economic situation.
Derek Bjonback, associate professor of economics at PNC, began by sharing some positive national trends with a crowd of about 50, many of which were Chamber members. Bjonback noted that there will be a projected rebound in gross domestic product (from 2.3 in 2013 to 2.9 in 2014), that industrial production should maintain itself and that unemployment nationally is “on a slow trend downwards.”
Employment in La Porte County different through various sectors. While jobs in manufacturing and government are at a decline, everything else is “not bad,” Bjonback said.
“All other sectors are sustaining and doing quite well,” Bjonback said of the construction, trade, financial, professional and business services, health and hospitality markets.
Bright spots for La Porte County, Bjonback showed, include the growth of the industrial production and auto sales, recovery of export markets, strength in industrial supplies and capital goods exports, increased consumer and business confidence and positive effects for durable goods.
Anthony Sindone, continuing lecturer of economics at PNC, pointed out that the unemployment rate locally jumped from 10.9 percent in February 2012 to 12 percent earlier this year.
“Compared with state numbers, we are not doing well,” he said.
What drives the unemployment rate, Sindone theorized, is the significant discrepancy in County residents having to commute to Lake, Porter or St. Joseph counties for work.
“Quite a few folks are commuting out of La Porte County for jobs,” he said. A graphic showed that while 1,000 Lake County residents and 3,248 Porter County residents work in La Porte County, 1,741 commute from La Porte to Lake County and 3,541 commute from La Porte to Porter County.
The key to “creating jobs (La Porte County) people are qualified to fill,” is education and more specifically career and technical education (CTE).
Another statistic showed that only 9 percent of High School graduates completed their degree with experience in one of the CTE fields.
The skills gap can affect not only students, but individuals already in the workforce, La Porte Mayor Blair Milo pointed out during a question and answer session following the speeches.
Sindone said that local institutions such as PNC and Ivy Tech have the training and education, but the demand “is pretty weak.”
“Folks don’t know about the great programs we have and the great programs Ivy Tech has,” he said.
Mike Arnett, vice president of Business Banking with 1st Source Bank, was puzzled to find that demand for corn and soybeans has risen, but prices are dropping.
He suggests that members of the labor force should be categorized as infrastructure so money from Major Moves funds can be used for training. Currently, Major Moves money is only allowed to be used for infrastructure.
The saving grace for the local economy may just be tourism. Jack Arnett, executive director of the Michigan City La Porte Convention and Visitors Bureau, showed an annual growth of 2.8 percent in travelers to the area from 2010 to 2013.
He credits the Blue Chip Casino and the Lighthouse Outlet Mall and having elected officials “who know the importance of tourism.”