Manufacturing and insurance are among the fastest-growing industries for new business formation in Indiana, according to a new study.
Houston-based Swyft Filings, a firm that helps businesses with filing and compliance, found new business formation grew by 6.1% year over year in Indiana last year. The Hoosier state ranked 16th in growth rate of new business formation nationwide but 21st in the total volume of new businesses formed.
In Indiana, new businesses in manufacturing grew by 175% year over year in 2018, while new businesses in insurance grew by 133% as compared to the previous year, the study found. The formation of social services businesses grew by 75% year over year, while the construction, real estate and transportation accounted for the highest volume of new businesses in the Hoosier state.
Wholesale business formation fell by 66.7% in Indiana last year, as compared to 2017, while food service business formation dropped by 37.9% year over year, the study found. Rental and leasing business formation in Indiana declined by 33.3% last year when compared to the prior year.
Indianapolis, Fort Wayne and Evansville led the state in new business startups.
Nationally, the retail, construction and consulting industries accounted for the largest volume of new businesses formed. The accommodations, social assistance and transportation sectors were the fastest growing, with a 39.5% year-over-year growth in new hotels.
Manufacturing business formation nationwide declined by 5.8% last year, but Indiana traditionally has been one of the most manufacturing intensive states in the country. The Indiana Manufacturers Association estimates the sector accounts for 16.8% of the state's workforce, employing more than 500,000 people between Lake Michigan and the Ohio River, and for 28.8% of Indiana's economic output.