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Section 2: Indiana’s Economic Climate
The second section of the questionnaire is a single question which deals with the economic and general business climate of the state. The question (Q7) simply asks about the areas in which Indiana has a relative advantage or relative disadvantage compared to neighboring states (see Figure 5). There are several significant differences between results for 2009 versus the results for 2008.
As in the previous two years, most of the areas of comparison cluster near the middle of the scale. Also, as in previous years, Indiana is perceived to have a major advantage over other states with regard to "cost of living," and a slight disadvantage with regard to the "education system." While this general pattern of response has been consistent over time, there are also several significant changes this year.
First, five of the eight items are significantly higher in 2009 versus 2008. The central cluster of issues previously centered around "4," the scale midpoint. This year, the cluster (except "natural resources" and "infrastructure") has shifted higher, indicating that now Indiana is perceived to be slightly ahead of surrounding states on these issues.
Second, the "education system" has moved significantly higher as well. Now it is near the midpoint of the scale, indicating it is perceived to be nearly on par with education systems in surrounding states. In fact, in 2008, 15.4 percent rated this item above the midpoint, while this year, 24.5 percent rate the "education system" above the midpoint. At the low end of the scale, the proportion of respondents rating this item a "1" (strong disadvantage) is half the number rating it a "1" in 2008 (6.8 percent versus 14.0 percent).
Third, "cost of living" is still perceived to be a solid advantage for Indiana relative to other states. Though "cost of living" is not statistically higher than in previous years, it has been nominally on the rise for all three years the survey has been conducted.
One question remains: are the increasing scale numbers the result of perceived improvement on the part of Indiana, or are they the result of a relative decline on the part of surrounding states? It could be that CEOs think Indiana is making strides faster than our neighbors or that CEOs think the current situation is having a more pronounced negative impact on our neighbors.
