INDIANAPOLIS – Indiana is a national manufacturing powerhouse, both in employment and output. But the COVID-19 pandemic is putting the brakes on the state’s industrial prowess.
The Fed said most major industries posted decreases, but the largest decline was registered by motor vehicles and parts.
Automakers who shut down their auto assembly plants last month, including those in Indiana, say the return of consumer demand is part of the equation in determining when they will re-open.
The pandemic led many factories to suspend operations in late March after President Trump declared a national emergency. The Federal Reserve says automobile output fell 28% as American automakers closed their plants.
“It trickles to the end. And we have a large number of those components. Thousands upon thousands,” explained Iyer. “My notion is, if underlying demand comes back, all of this will have to catch up and that’s what will put the (economic recovery) on track.”
“Companies like ours are trying to figure out ways to protect the health of our employees and our communities and still find ways to make sure that we’re a sustainable enterprise because the economy in our communities will need us as the health crisis begins to wane,” Cummins Chief Executive Officer Tom Linebarger said during last weekend’s edition of Inside INdiana Business with Gerry Dick.
“The key to success is employees pitching in. If they’re treated well and families feel appreciate it, they’ll likely go that extra mile,” said Iyer. “The action to protect employees and do the right thing will pay large dividends.”