Published by Thomas For Industry. Reviewed by Audrey Altmann on 2/24/2026. Written by Kat de Naoum on 2/24/2026.

Indiana has one of the most manufacturing-intensive economies in the United States, with factories accounting for a larger share of state GDP and employment than in nearly any other state. From its historic strengths in automotive and steel to its modern leadership in aerospace, pharmaceuticals, and advanced materials, manufacturing continues to define the Hoosier State’s economic identity.

History of Indiana Manufacturing

Indiana’s manufacturing roots date back to the 1800s, when many early industrial companies were founded near waterways, rail lines, and natural resource sites, positioning the state as a key producer of steel, glass, furniture, and agricultural machinery. These early manufacturers not only built products but also developed regional marketing networks that helped distribute Indiana-made goods across the Midwest.

By the early 1900s, Indiana was a major automotive center—home to Studebaker in South Bend, Marmon in Indianapolis, and later key facilities for Detroit automakers. At the same time, Gary and northwest Indiana became central to America’s steel industry, hosting some of the nation’s largest integrated mills. By the 1950s and 1960s, the state was firmly established as a national leader in automotive production, heavy machinery, and steelmaking, all supported by a growing skilled workforce and Midwest logistics advantages.

Indiana Manufacturing Today

According to the Indiana Economic Development Corporation (IEDC), Indiana has the highest percentage of manufacturing jobs in the US, employing more than 540,000 workers across automotive, aerospace, primary metals, machinery, chemicals, plastics, and medical devices.

The state also stands out nationally for several industrial strengths. Indiana is the number one steel-producing state in the country, supplying roughly 27% of all US steel—much of it generated by large integrated mills in Lake County. It is also a key automotive base, with Toyota, Subaru, GM, and Stellantis facilities producing hundreds of thousands of vehicles annually. In addition, Indiana is recognized as a global pharmaceutical center, led by Eli Lilly, one of the world’s largest drugmakers.

Its aerospace and defense sector is expanding as well, supported by Rolls-Royce and Raytheon manufacturing operations and university-based research initiatives. Indiana plays a significant role in the civil aerospace market through the production of commercial propulsion systems and aviation components, and the state is accelerating its shift toward high-tech manufacturing capabilities through investments in robotics, additive manufacturing, digital production systems, and workforce development programs. Many Indiana manufacturers also provide engineering, maintenance, testing, and aftermarket services that support global supply chains.

Elkhart is widely known as the “RV Capital of the World,” home to the highest concentration of recreational vehicle manufacturing anywhere in the US. The region anchors a network of leading producers, including Thor Industries, Forest River, and dozens of specialized suppliers that support the state’s dominant position in RV production.

To the northeast, Warsaw is globally recognized as the “Orthopedic Capital of the World,” with companies such as Zimmer Biomet and DePuy Synthes manufacturing joint replacements, surgical systems, and medical implants for international markets. Farther east, Union City contributes to Indiana’s automotive supply chain through its long-standing base of specialty manufacturing and component production. Southern Indiana also contributes through Evansville, a long-established center for plastics, packaging, and appliance-related manufacturing that supports logistics and components for big consumer and industrial brands.

Manufacturing extends into regions like Jasper, where companies such as Kimball International sustain a long tradition of furniture, wood products, and engineered components. In central Indiana, cities including Carmel and Noblesville support the state’s industrial ecosystem through growing clusters of medical technology firms, engineering and product-development services, and light manufacturing operations that complement larger production centers across the state.

Read the whole article by Thomas For Industry here