Building the Workforce of Tomorrow: Advancing Childcare Investment in Northwest Indiana

Background

Represented by the Northwest Indiana Forum, the counties of Jasper, Lake, LaPorte, Newton, Porter, Pulaski, and Starke represent a region defined by its strong work ethic, manufacturing legacy, and growing diversification into healthcare, logistics, and technology sectors. Yet one of its most urgent workforce barriers lies outside the factory floor or office: access to affordable, high-quality childcare.

While Northwest Indiana’s (NWI) population and job base continue to expand, the region faces a growing mismatch between childcare supply, affordability, and workforce needs. Across urban centers like Gary and Hammond to rural communities such as Rensselaer and Winamac, families struggle to find and afford consistent care, leaving thousands of parents unable to fully participate in the workforce.

“Childcare isn’t a family issue, it’s a workforce issue. When parents can’t find or afford care, businesses lose productivity, and communities lose talent.”
Regional Employer Focus Group Participant

The Challenge

The analysis revealed that NWI’s childcare landscape is under significant strain, threatening both family stability and economic growth.

Key Findings Include:

  • Untapped Workforce: Nearly 5,000 “work-willing” parents in NWI are currently sidelined from full-time work due to childcare barriers.
  • Lost Economic Potential: Enabling these parents to re-enter the workforce could generate $746 million to $1.08 billion in annual regional economic impact, including:
    • $200–$269 million in new parental earnings.
    • $494–$757 million in Gross Regional Product (GRP).
  • $43–$46 million in local and state tax revenue.
  • Employer Strain: 81% of NWI employers report that childcare challenges directly impact their workforce—leading to:
    • 50% of employees leaving jobs.
    • 48% reducing work hours.
    • 38% of job candidates declining offers due to childcare issues.

“Our employees want to work more hours, but if they can’t find care, their hands are tied. It’s costing us productivity every day.”
HR Director, Manufacturing Employer

The TPMA Approach

TPMA led this multi-county initiative in partnership with regional employers, economic development organizations, early education providers, and philanthropic partners to develop a strategic, data-driven Childcare Investment Plan for Northwest Indiana.

Our process included:

  • Data Benchmarking: Quantified economic losses tied to childcare gaps using regional labor participation and earnings data.
  • Stakeholder Engagement: Conducted focus groups and interviews with employers, parents, and providers to capture lived experiences and business impacts.
  • Economic Impact Modeling: Calculated the direct and indirect regional impact of restoring full childcare access on earnings, GRP, and tax revenues.
  • Best Practice Analysis: Examined successful models such as Cummins Child Development Center and Goodwill’s Kids Excel to inform local adaptation.
  • Evaluation Toolkit Design: Developed an actionable framework to help NWI partners track progress, measure ROI, and drive accountability.

“We can’t fix what we don’t measure. This toolkit gives Northwest Indiana a roadmap, and the data, to make real change.”
Regional Foundation Partner

Findings

Workforce Crisis: The childcare sector faces a severe labor shortage. Workers earn a median wage of $12.84/hour, and the region is projected to see a 10–29% decline in childcare occupations by 2034.

Affordability & Accessibility:

  • 42% of parents cite cost as their leading challenge.
  • 18% report no available childcare spots in their area.
  • A 7,600-child CCDF voucher waitlist statewide underscores the unmet demand for subsidized care.
  • Only 6% of eligible childcare workers in Lake County access CCDF assistance themselves—evidence of systemic barriers within the workforce.

Unsustainable Provider Models:
Providers operate on razor-thin margins, unable to raise wages or invest in staff development—leading to burnout, turnover, and declining quality of care.

Employer Readiness:
Most employers recognize childcare as a workforce issue but lack internal strategies or shared service models to address it collaboratively.

Recommendations

The Childcare Investment Strategy for Northwest Indiana outlines six pillars of action:

  1. Employer Engagement:
    Encourage internal childcare needs assessments and employer financial support (vouchers, DCFSAs, tuition assistance) while addressing benefits cliffs.
  2. Flexible Work & Backup Care:
    Promote flexible scheduling, remote work, and the creation of reliable backup care networks.
  3. Collaborative Models:
    Pilot employer consortia or Tri-Share programs that pool resources to reduce family costs and expand capacity.
  4. Direct Employer Investment:
    Incentivize large employers to develop on-site or near-site childcare centers to improve recruitment and retention.
  5. Workforce Development:
    Increase wages, provide benefits, and invest in career ladders for early childhood educators to stabilize the workforce pipeline.
  6. Legislative Advocacy:
    Partner with state and local policymakers to remove regulatory barriers, expand funding streams, and strengthen long-term sustainability.

“It’s not about creating more programs—it’s about aligning the right partners to make existing systems work better for families and employers.”
Community Development Leader

The Evaluation Toolkit

To ensure accountability and measurable outcomes, TPMA developed an Evaluation Toolkit for implementation partners.

Key Features:

  • Logic Model: Defines goals, activities, and expected outcomes.
  • Performance Dashboard: Tracks metrics on access, affordability, and workforce participation.
  • Surveys & Focus Groups: Gathers ongoing feedback from parents, providers, and employers to guide continuous improvement.

This toolkit enables NWI stakeholders to monitor impact, adjust strategies, and sustain momentum over time.

What Makes This Report Stand Out

  • Quantified Economic Impact: Demonstrates the true cost of childcare inaction and the value of coordinated investment.
  • Multi-Sector Collaboration: Engages employers, educators, and policymakers around shared accountability.
  • Actionable Tools: Provides a replicable model for regional implementation.
  • Evidence-Based Design: Rooted in data but grounded in lived experience.
  • Scalable Framework: Adaptable for other regions seeking to link childcare to workforce growth.

Impact & Outlook

This initiative reframes childcare as an economic development strategy, not just a family service. By adopting this investment plan, Northwest Indiana can:

  • Re-engage nearly 5,000 sidelined workers.
  • Add up to $1 billion annually in economic output.
  • Strengthen family stability and employer competitiveness.
  • Build a sustainable early education workforce pipeline.

“Childcare is the foundation of the future workforce. By investing now, Northwest Indiana can secure the next generation of talent and prosperity.”
TPMA Report Conclusion

To learn more about the Northwest Indiana Forum and read the full childcare investment strategy report, visit https://www.nwiforum.org/.