Kokomo.

• Author: Parkison, Kathy
• Position: Economic forecast for Kokomo, Indiana - Brief Article

Kokomo's economy is heavily weighted towards manufacturing. Unfortunately, this is one of the areas of the economy that has been hardest hit since the events of September 11th and by the general economic slowdown affecting the country prior to September 11th. This has meant that many firms in the Kokomo area have seen a general economic malaise and a slowdown in business. This hits especially hard since Kokomo has been one of the economic powerhouses of the area. The Kokomo Metropolitan Statistical Area has long had the distinction of being one of the top MSAs in the country in terms of average salary, despite the fact that the Kokomo MSA is the smallest of the 11 MSAs in Indiana.

There has been one large piece of good news in the manufacturing front: DaimlerChrysler's Indiana Transmission Plant recently produced its 1 millionth transmission. The plant has been open about three years and is now up to full speed. Original goals for the plant called for about 2,900 transmissions produced per day, and they are now up to about 3,400 per day. This translates into about 800,000 per year.

But, there have been some specific problems that have become evident in Kokomo's economy in the past few months. Unemployment has increased from the September 2000 levels of 2.7 percent to September 2001 levels of 5.4 percent. The average workweek has dropped, resulting in fewer hours worked and/or less overtime pay. Thus, average weekly earnings have fallen from $1,014.34 to $996.38, leaving many confused and ill at ease about their economic future.

Visible Changes in the Kokomo Landscape

There have been other changes that are easily visible in the Kokomo region. The Superfund site at Continental Steel has finished with the first level of remediation, and discussions are underway to find an alternative use for the land, most likely as a brownfield type usage. Delphi Delco Electronic Systems is also involved in an environmental cleanup at Plant 1, due to be...