The Crossroads Of America: 11 Reasons Why Your Business Should Move to Indianapolis

Introduction

Indianapolis, the industrial anchor of Indiana, is also recognized as one of the country’s most structurally viable business hubs. The city offers numerous class I railway intersections, interstate corridors, direct accessibility to integral port systems, and multiple cargo airports. These transportation resources make delivering products and information to customers nationwide easy. According to the Governor of Indiana, Eric J. Holcomb, companies need a place of financial affordability, stability, and a reduced regulatory burden. For these reasons, Indianapolis’ industrial economy continues to experience an upward trend of migrating and expanding companies. Over the years, the unyielding advancement of logistical infrastructure has transformed the city into an advantageous location for supply distribution, attracting some of the nation’s top intermodal carriers like XPO Logistics, FedEx, and J.B. Hunt. These businesses have strategically placed their operations to extend their market reach, reduce inventory, and improve their bottom line.

Fig 1: Indianapolis interstates and highways

Interstate Corridors

The interstate system, which includes I-65, I-69, I-70, and I-74, contributes to Indianapolis’ emerging industries, including the commercial real estate market. The unity of these interstates creates a transportation infrastructure unrivaled by surrounding regions. The expansive highway system delivers direct access to Louisville, Chicago, Columbus, Cincinnati, St. Louis, the Ports of Indiana, and beyond. Ground transportation accounts for nearly half the estimated 724 million tons of freight traveling through Indianapolis and its infrastructure annually. The centralized location and diverse intersections grant access to 75% of the nation within a day’s drive. Companies relying on inbound and outbound trucking goods have increasingly benefited from the highly-favorable highway system.

Fig 2: Indianapolis attractions (White River State Park)

Port Proximity

The proximity to three major ports further defines Indianapolis as a logistical leader. Burns Harbor, Jeffersonville, and Mount Vernon comprise one of America’s premier inland port systems. These dynamic water gateways are designated Foreign Trade Zones and grant domestic and global markets access. Burns Harbor, commonly referred to as The Steel Capital of America, is situated on the coast of Lake Michigan, roughly 18 miles from Chicago. The port is directly accessible from Indianapolis by I-69 and the CSX Class I railroad. The port has substantial global reach through the Great Lakes and the St. Lawrence Seaway, making it a critical link between inland manufacturing and international distribution.

In contrast, the Jeffersonville port is located on the southern border of Indiana and directly adjacent to Louisville, Kentucky. It is accessible from Indianapolis by traveling south on I-69. The dock uses the Ohio and Mississippi Rivers to handle numerous cargo annually. This inland waterway is designed for heavy activities and thus offers a robust industrial ecosystem and superior manufacturing infrastructure. 

Further west, on the Indiana and Kentucky border, the Mount Vernon port is one of the country’s largest inland water systems. The port is situated near the confluence of the Ohio and Mississippi rivers and serves as an important economic engine for Indianapolis. Mount Vernon continues to develop rapidly and flourishes with the surrounding agricultural and manufacturing activities. The port substantially impacts logistical mobility and is significant in furthering Indianapolis’s supply chain capacities.

Fig 3: Indianapolis attractions (Benjamin Harrison Presidential Site)

Railway Accessibility

Often referred to as Railroad City, Indianapolis is a central hub for rail freight transport. The city offers direct access to the highly prominent Class I railroad, CSX, and leverages several regional and short-line railroads allowing for efficient transportation of goods across the nation. As one of seven Class I railroads in the country, the CSX railroad is critical in driving Indianapolis’s energy market. The railroad offers direct outlets to the nation’s railway network, grants immediate access to central markets like Cincinnati and Chicago, and intersects with the Class I railroad, Norfolk Southern. Due to this dynamic railway network, Indianapolis’ industrial market has achieved an expansive reach, spanning from coast to coast, Canada and Mexico.

Fig 4: Indianapolis attractions (Back9Golf – golf, and entertainment)

Air Cargo Transportation

Indianapolis’ air cargo capabilities have experienced tremendous growth in the past decade. Nestled in the soil of the American Heartland, the city’s air transportation capacity creates an enticing option for companies looking to ship cargo. Its city’s centralized location offers tangible benefits to the thriving industrial market. The Indianapolis International Airport (IND) is one of the nation’s top ten busiest cargo airports, with extensive daily air service to major cities across the globe. The aviation hub is 7 miles southwest of downtown and easily accessible by interstate highways, I-70 and I-465. The location and diverse network of direct flights provide a strong reason for FedEx’s continued investment in its Indianapolis operations. In doing so, Indianapolis is now the second-largest FedEx operation hub.

Fig 5: Indianapolis attractions (International Airport)

Business-Friendly Environment

Indiana is renowned for being incredibly business-friendly. According to Chief Executive Magazine, it is ranked #1 in the Midwest and the fifth-best state for doing business. The city is home to a robust Chamber of Commerce and several organizations that support and assist in growing businesses. With a GMP (Gross Metropolitan Product) of $164.9 billion in 2021, Indianapolis is the 28^th top Metropolitan area in terms of GMP. Firms looking to reduce their tax burden might benefit significantly from the flat 4.9% corporate income tax rate. There’s also a flat 3.23% individual income tax rate. These advantages together make Indianapolis a desirable location for business establishments.

Fig 6: Indianapolis attractions (Indianapolis Art Center)

Strong Tech Presence

Indiana has 22 Tech Parks, many in and around Indianapolis. The Marketing Cloud Headquarter of Salesforce is located in Indiana, strengthening its status as a MarTech town. The INTECH Park, the most extensive office development in Indianapolis, fosters the creative mind with sophisticated voice and data infrastructure, distinctive and insightful landscaping, and the availability of many on-site amenities. The 16 Tech innovation district, a 50-acre community, is a big plus to the city’s business ecosystem. Furthermore, Jobvite, UKG, Genesys, Tangoe, etc., selected Indianapolis as their central tech hub or headquarters.

Fig 7: Indianapolis attractions (The Children’s Museum)

Resourceful For Start-Ups and Small Businesses

This city boasts a ton of resources that can assist in expanding small enterprises and nurturing start-up businesses. This region has a thriving start-up scene that is backed by nationally recognized organizations like High Alpha’s venture studio, which funds B2B SaaS businesses, accelerators, and incubators like Techstars Sports Accelerator is designed for sports tech companies, non-profit organizations like Tech Point, which boosted the tech environment of Indy by establishing connections between the companies and customers, venture funding, expertise, and other resources.

Fig 8: Indianapolis attractions (Indianapolis Zoo)

Robust Talent Pool & Skilled Workforce

Indiana is home to many top business and engineering schools, including Indiana University-Purdue University, University of Indianapolis, Butler University, Marian University, and many more, which provide companies with a robust stream of young talents to staff the companies. Ascend Indiana is a talent pipeline offering an innovative job-matching platform and consultation service to develop workforce insights by performing labor market research. All these make it easier for companies to find the required talent to boost their growth. Many commercial real estate companies in Indiana, like Allies Commercial, are actively recruiting. Check out more on our join our team page.

Fig 9: Indianapolis attractions (Central Canal)

Strong Healthcare Field

Indiana has a strong healthcare industry as well. A good number of major healthcare organizations and companies, for instance, Eli Lilly and Company, the most significant pharmaceutical company in Indiana; Anthem, a health insurance company; the Indiana University School of Medicine, one of the top-rated medical schools in the country; Roche Diagnostic, a healthcare technology company; Community Health Network, a healthcare system with multiple hospitals and other healthcare facilities, make Indiana a powerhouse for the healthcare sector. For businesses in the healthcare sector, this can be a significant opportunity.

Fig 10: Indianapolis attractions (Indianapolis State Museum)

Lower Living Cost

Indianapolis is an excellent choice in terms of living costs. The living cost here is super affordable compared to other major cities. According to Forbes, the cost of living is 7.6% less expensive than the national average. For businesses seeking to save costs, this can be a crucial consideration. On the other hand, junior employees can also benefit from lower rental rates and additional living costs.

Fig 11: Indianapolis attractions (Indy 500, Indianapolis Motor Speedway)

High Quality of Life

Indy’s downtown has a tourism vibe. The city’s easy drive, walkability, and greenery offer a pleasant atmosphere, while the world-class racing track and other attractions make Indy a town of vibrant arts and culture. People here enjoy a high quality of life, a lower living cost, and a robust business environment. Recreation is crucial for employees; it helps them release stress, think creatively, and improve productivity.  There are numerous parks and outdoor recreation areas in this city. These include Holliday Park, Broad Ripple Park, Indiana Repertory Theatre, Garfield Park Conservatory & Sunken Garden, Indianapolis Museum of Art, Indianapolis Motor Speedway Museum, and Eagle Creek Park. The community here is active and robust. This is a city full of innovators trying to make the world better.

Fig 12: Downtown Indianapolis Skyline

Conclusion

Due to Indy’s lower living costs, high quality of life, strong tech sector, skilled workforce, and vast resources, this city has been considered one of the most desirable places for expanding or establishing businesses. As the transportation infrastructure of Indianapolis continues to be utilized by more companies and large markets, the industry is expected to see significant growth over the next two decades. In contrast to other cities, the Indianapolis region’s abundant land and resources will ensure that it remains a competitive option for businesses looking to expand or relocate. Contact us at info@alliescommercialrealty.com to learn how Allies Commercial Realty can elevate your business operations through property acquisition in Indianapolis at an affordable price. Also, subscribe to our newsletter for up-to-date industry news that matters.