South Bend.

• Author: Joray, Paul
• Position: Company mergers likely to affect economy negatively - Statistical Data Included

South Bend/Mishawaka Elkhart/Goshen

In the early 1950s, both the South Bend/Mishawaka and Elkhart/Goshen local economies featured very strong manufacturing sectors. More than half of all employment in both economies was in manufacturing. In the 1960s and 1970s, employment in the South Bend/Mishawaka local economy, like most local economies in the United States, shifted from manufacturing to non-manufacturing. By December 1986, manufacturing employment made up only 22 percent of total employment. Manufacturing employment in the Elkhart/Goshen economy, led by the recreational vehicle and manufactured housing industries, continued to grow as fast as nonmanufacturing employment. In 1999, manufacturing employment made up 51 percent of total employment, the highest percentage of any Metropolitan Area (MSA) in the United States. Table 1 shows average unemployment rates and uses seasonally adjusted index numbers to show average levels of employment for each year since our last recession. Data in Table 1 indicate the trends mentioned above are continuing with manufacturing employment in South Bend growing 6 percent since 1993, and manufacturing employment in Elkhart growing 19 percent during the same period.

[TABULAR DATA 1 NOT REPRODUCIBLE IN ASCII]

The South Bend/Mishawaka economy has performed well since 1993. Total employment grew rapidly in 1994 and 1995, leveled off in 1996, and grew again, at a slower rate, in 1997,1998, and 1999. From 1993 through 1999, employment grew 13.4 percent. Non-manufacturing employment increased consistently during this period, but manufacturing was up and down depending upon the situations facing local firms. Unemployment rates dropped significantly from an average of 6.1 percent in 1993 to 4.4 in 1994, and have remained at very low levels since then. The local labor market has been very tight since 1994.

The Elkhart/Goshen economy has also performed well since 1993. Total employment grew rapidly in every year since 1993 except for a slight decline in 1996 and slow growth in 1997. From 1993 through 1999 employment grew 16.4 percent. Nonmanufacturing employment increased in every year, except for a slight decline in 1996. Manufacturing employment increased in every year except for 1996 and 1997. Unemployment rates dropped significantly from 5.9 percent in 1993 to 3.8 percent in 1994, and have remained at very low levels since then. The unemployment rates for the Elkhart/Goshen economy indicate its labor market has...