Center for Business and Economic Research - Ball State University


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Manufacturing Scorecard

Categories (All States)

  • Manufacturing Industry Health
  • Logistics Industry Health
  • Human Capital
  • Worker Benefit Costs
  • Tax Climate
  • Expected Liability Gap
  • Global Reach
  • Sector Diversification
  • Productivity and Innovation

View State Report Card

  • About
  • Methodology
  • Data Sources
  • Glossary
  • Credits

Downloads

National Report Cards (PDF)

  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008 Analysis
  • 2008 Scorecard

Indiana Report Cards (PDF)

  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008

Spreadsheets

  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014

Related Studies (PDF)

  • Manufacturing & Logistics: A Generation of Volatility & Growth (2017)
  • Advanced Manufacturing in the United States (2016)
  • The Myth and the Reality of Manufacturing in America (2017)
  • Manufacturing and Labor Market Frictions (2014)
  • Manufacturing Productivity Through the Great Recession (2013)

About Sector Diversification

There are both risks and rewards to economic diversification. States that concentrate their manufacturing activity in a single sector typically suffer higher volatility in employment and incomes over a business cycle and are also more likely to experience greater effects of structural changes to the economy involving a single sector. One potential benefit of low levels of economic diversification is that the resulting agglomeration economies often emerge in these highly specialized regions. As a consequence, policies that seek to diversify the economy are typically pursued in concert with efforts to strengthen the supply chain of existing industries.

We calculate each state’s diversification of manufacturing activity using the Herfindahl-Hirschman Index. We calculate the total share of income for each NAICS manufacturing sector at the 2-digit level, then add the squares of all 22 subsectors. We then rank each state from the most (No. 1) to the least (No. 50) diverse.

Sources: Bureau of Economic Analysis, North American Industrial Classification System (NAICS), and authors’ calculations.

2020 Sector Diversification

Click on a state to view its full report card profile.

Map Table
  • A
  • B
  • C
  • D
  • F
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State Grade
Alabama B
Alaska F
Arizona D-
Arkansas C
California F
Colorado C
Connecticut F
Delaware C-
Florida B-
Georgia B+
Hawaii D
Idaho F
Illinois C+
Indiana C
Iowa C-
Kansas A
Kentucky C-
Louisiana D
Maine C
Maryland D+
Massachusetts C-
Michigan D
Minnesota C
Mississippi A
Missouri B
Montana C
Nebraska D
Nevada C
New Hampshire D
New Jersey F
New Mexico D+
New York B
North Carolina B+
North Dakota C
Ohio B-
Oklahoma C+
Oregon D-
Pennsylvania B
Rhode Island A
South Carolina B
South Dakota C
Tennessee C+
Texas C
Utah B
Vermont C
Virginia A
Washington A
West Virginia C-
Wisconsin C
Wyoming D

© Center for Business and Economic Research, Ball State University

About Ball State CBER Data Center

Ball State CBER Data Center is one-stop shop for economic data including demographics, education, health, and social capital. Our easy-to-use, visual web tools offer data collection and analysis for grant writers, economic developers, policy makers, and the general public.

Ball State CBER Data Center (cberdata.org) is a product of the Center for Business and Economic Research at Ball State University. CBER's mission is to conduct relevant and timely public policy research on a wide range of economic issues affecting the state and nation. Learn more.

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Center for Business and Economic Research

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Muncie, IN 47306-0360
Phone:
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Email:
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