Muncie.

• Author: Smith, James C.
• Position: Economic outlook for Muncie, Indiana - Brief Article

Sometimes circumstances can turn a weakness into a strength. Muncie's weakness is that despite all the economic virtues the area can claim, Muncie cannot seem to attract new residents. The Muncie MSA, which includes all of Delaware County, was the only metro area in Indiana to post a net loss in population in the 2000 census.

From 1990 to 2000, the population of Muncie and Delaware County declined by 890 people, to 118,769. That is a 0.7 percent drop, and it allowed the Bloomington metro area to pass Muncie in size to become the 10th largest metro area in the state. Muncie is now 11th out of 12 (Kokomo is the smallest).

The population shrinkage has been a feature of the Muncie and Delaware County economy for many years, as new residents continue to move into other parts of the state. Indiana's population grew 9.7 percent over the past decade, while Muncie's contracted.

Viewed in purely regional economic terms, Muncie and Delaware County have several virtues. The economic mix is well diversified. Manufacturing, while a prominent part of the area's economy, accounts for only 15 percent of total employment. And within the manufacturing sector there is a good mix of major corporations' plants and successful locally-owned factories. Employment in the services industries has grown strongly compared to other parts of the state, up 18 percent since 1995. A major university campus lies just a few blocks from downtown Muncie, and on the north side of town is a modern, well-equipped airport.

As recession spreads across the United States, however, the declining head count in Muncie and Delaware County becomes a benefit, in the following sense.

During the boom years of the 1990s, labor shortages were common. In Muncie and Delaware...