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Indiana manufacturing accounted for $56.3 billion, or 31%, of Indiana’s $182 billion gross state product in 1999 (Bureau of Economic Analysis, 2000). Manufacturing wage and salary payments were $33.2 billion in 2000, 35% of Indiana’s $116 billion earnings by place of work (Table 1). The sector’s $47,559 average annual wage was second to that of mining. Manufacturing’s 697,610 jobs (Figure 1) were 19% of the 3.9 million jobs in Indiana (Bureau of Economic Analysis, 2000).
 
  
The Indiana poultry industry is an important part of the state's agricultural sector.
 
  
The Indiana dairy industry is an important part of the state's agricultural sector. Indiana's milk production in 2004 was estimated at 3 billion pounds (344 million gallons) of milk, equivalent to 1.7% of the total milk produced in the United States. This production represented $491 million in cash receipts to the state at the farm gate level (Indiana Agricultural Statistics). The industry also provided fulltime employment to about 3,750 Indiana residents and paid a total of $107 million in salaries (estimates from IMPLAN model for Indiana).
 
  
Attracting new manufacturing investment has been a key component of local and state economic development efforts in Indiana.
 
  
The location of a new food manufacturing firm in a rural county brings employment opportunities to communities which can increase farm household access to off-farm employment. The location of a food processor also can positively impact farm income if the processor purchases local or regional agriculture products for processing. For instance, corn growers selling to a local wet corn miller might increase their income from price premiums, reduced marketing costs, or lower transportation costs. However, food manufacturers, like other manufacturers, make location decisions to minimize costs. Leaders in communities seeking to attract food manufacturing or other manufacturing investment would benefit from understanding what influences manufacturing location investment decisions. The following discussion describes firm investment decisions and the factors affecting them. These factors are divided into market factors, agglomeration economies, infrastructure, labor, and fiscal policy. The discussion draws on research on food manufacturing and other firm location decisions.