Seeing Economic Development Through an Education and Workforce Lens
A First Time IEDA Perspective from an Education and Workforce Professional
By Kelly Friend, Senior Manager, Education & Workforce
This year was my first time attending the Indiana Economic Development Association (IEDA) conference.
I came curious and with a leading question: How are education and workforce showing up in economic development conversations?
The short answer: more than ever, but not yet in a fully aligned way.
Across sessions, panels, and conversations, one theme kept surfacing: Economic development is increasingly being shaped by workforce and education, yet the systems supporting that shift are still catching up.
Productivity, Wages, and Risk: The Economic Backdrop
Several sessions grounded the conference in economic fundamentals. A familiar forces shape Indiana’s growth outlook:
- Demographic and population shifts
- Rapid adoption of automation and AI
- Global supply chain changes
- Income and wage pressures
- Climate and infrastructure considerations
One principle came up repeatedly and clearly: Wage growth follows labor productivity.
Productivity grows through education and technology.
Indiana remains a major producer of both durable and non-durable goods, but how we produce is changing quickly. Automation and AI are accelerating efficiency and reshaping skill requirements, putting new pressure on education and workforce systems to move faster and stay aligned.
Wage Growth and Incentives: A Design Question
Wage growth was front and center, especially when tied to economic development incentives. What struck me was not disagreement about the importance of higher wages, which was widely shared, but the real tension around how wage expectations interact with local labor markets and incentives.
A question I heard repeatedly, in different forms, was this: How do incentive structures balance wage goals with real-world conditions, especially in rural and mixed-economy regions?
Examples shared during the conference showed that wage growth is happening. Cities like South Bend and Kokomo were cited as among the strongest gainers, and Indiana is positioned to remain competitive in wage growth moving forward. At the same time, it was clear that labor availability, cost of living, and wage dynamics vary significantly by county. That variability matters, and it points to the need for flexible, data-informed approaches that support growth without unintentionally excluding communities.
Manufacturing Is Changing
Manufacturing remains central to Indiana’s identity, but the story is no longer about volume alone.
What I heard:
- A modest downturn in traditional goods production
- Increased investment in automation and AI
- Movement away from outdated facilities toward modern sites
This isn’t decline, it’s transition. Indiana manufacturing is moving toward higher-value, more technology-enabled production.
At the same time, several sectors were repeatedly identified as growth leaders:
- Life sciences
- Pharmaceutical and biotech manufacturing
- Defense and national security–related industries
All of these sectors are talent-intensive, reinforcing the need for education and workforce systems that can deliver higher skills at speed.
Apprenticeship and Work-Based Learning as Signals
Apprenticeship and work-based learning models came up often, especially in conversations about competitiveness. What stood out to me was why these models matter. It’s not branding. Its structure:
- Employers co-develop talent
- Education pathways align directly to jobs
- Skills development is predictable and measurable
In a competitive site selection environment, regions that can demonstrate strong work-based learning systems send a clear message: we are ready to support your workforce needs.
Alignment in Practice — and the Role of Intermediaries
Several sessions highlighted regional models where education, workforce, and economic development are already working together more intentionally.
Common elements included:
- Sector-driven strategies based on employer demand
- Partnerships across K–12, postsecondary education, and industry
- Clear pathways from education to careers
Youth apprenticeships, career coaching, STEM initiatives, and regional convening organizations all pointed to the same lesson:
Alignment isn’t about creating more programs. It’s about coordinating the systems we already have around shared outcomes.
Why This Matters
What I took away from my first IEDA conference is this:
Indiana’s economic future is increasingly tied to how sound education, workforce, and economic development work together.
Progress is happening. Wage growth is real. New sectors are expanding. Regional models are showing what’s possible. The next phase will depend on:
- Incentive approaches that reflect regional realities
- Continued investment in education as the driver of the workforce, work-based learning, and apprenticeships
- Strong intermediaries that connect employers, educators, and communities
- Sustainable capacity to support long-term growth
Economic development is no longer just about attracting projects.
It’s about building systems that allow people, businesses, education, and regions to grow together.
Learn more about Kelly’s work at TPMA here.