Kokomo.

• Author: Parkison, Kathy

The recovery is officially on, the economy is perking upward, and we expect continued growth in the world, nation, and state. However, the Kokomo economy, while improving, is still lagging a bit behind the national and state economies.

Kokomo's economy remains heavily weighted toward manufacturing. Employment in manufacturing industries peaked statewide in June 2000, and while recent losses have been much less than before (and some months have even posted gains), employment has still not regained anywhere close to its peak. Like the rest of the state, individuals and firms in the area remain apprehensive about the economy and what it holds for them personally. This area remains heavily invested in industrial production and is very subject to economic disruptions as industrial production increases and decreases. The really important news is that many of these job losses will be permanent due to increasing productivity, job losses to overseas, the troubles in the automobile industry, etc. This means that manufacturing production, while increasing somewhat, is unlikely to return to the glory days of the past. In the first quarter of 2005, Howard County had 15,728 manufacturing jobs paying an average of $1,452 per week. In the first quarter of 2006, the number of manufacturing employers had risen from 74 to 77; the job totals had fallen to 14,436 (a net loss of 1,292 jobs or 8.2 percent); and the pay had risen to $1,640 per week (which is a 13 percent increase).

Many other categories show small improvements (for example, transportation and warehousing had forty or so new jobs paying weekly salaries of $737). However, these new jobs in categories other than manufacturing do not pay the same high wages as manufacturing. Thus, while job growth is occurring, it is not in the same high paid industries that drove the Kokomo economy for so long. This has an impact on stores and restaurants, as the buying habits of workers making $800 per...