The Economic Benefits Of Outsourcing To The GM Stamping Plant Near Westside Indianapolis

The Economic Benefits Of Outsourcing To The GM Stamping Plant Near Westside Indianapolis

Elanco Animal Medical will set up its global operations from Indianapolis, setting up a new facility in the former GM stamping plant site. The old facility on the northwest corner of downtown Indianapolis was shut down in 2021, and its future still remains unclear. There are indications that Elanco might choose to relocate its stamping operations to either Mexico or another Southwestern state. The company has yet to announce any definite plans regarding the future of its stamping facility in Indianapolis. However, GM's decision to move its stamping operations to Mexico has resulted in a significant loss for Union Products Inc., and the Union Products Inc. board of directors have decided to sell parts of GM's North American car-security division, including its St. Louis car-security division, to Elway Financial Corporation, Inc.

The plant is located on a quiet street in the affluent Indianapolis neighborhood. Its location minimizes noise and other disturbances that might affect the productivity of the employees and customers inside the facility. In addition, the GM facility sits adjacent to the GM Racing Club, which is a popular local sports complex. The automotive industry is one of the most heavily traveled sectors in the world, especially in the Indianapolis area, because of GM's reputation for developing fast and reliable vehicles. GM's decision to build a stamping facility in Mexico City provides another opportunity to increase sales in the Southwestern part of Indiana, home to the third largest city in the Midwest. By opening an operations center in Mexico, Elway can tap into Mexico's large number of auto-stamping distributors, many of which have significant operations throughout Mexico and the surrounding southwestern states.

Mexican stamped products are currently sold all over the world, but this will just be the beginning of the distribution chain. The new GM Mexico stamping plant in Mexico City will join the nearly 100 million employees worldwide that currently use this method of producing their cars and trucks. Not only will Elway attract American car manufacturers who need a place to build their vehicles, but foreign car manufacturers who want to tap into the Mexican market. This new venture by GM is expected to produce millions of jobs in the United States and Mexico.

The GM Stamping Plant is currently being built in the downtown area, but this is the wrong area for a car manufacturing facility. The downtown region lacks any kind of history or culture, and it was badly damaged during the recent earthquake and tsunami. The natural-gas and electricity cables along the I-35 freeway were damaged during the disaster, cutting off commuters for miles. The downtown area also has very poor drainage, which will not be a positive factor when the company's trucks to move their paint supplies down the famous white river.

The white river runs through downtown Indianapolis and the surrounding five counties. It will be hard for a company like GM to move their equipment and manufacturing to the middle of this large metropolitan area without destroying the surrounding neighborhoods and vital infrastructure. The Hispanic community in the surrounding areas is mostly middle class and tends to vote as a majority for Democrats. The Farm Town neighborhood, which is south of the airport and north of Downtown Indianapolis, could be in danger of losing its grocery store tenant base to the much larger pharmacy chain store. The pharmacy giant Walgreens is moving into the area and could potentially be a competitor.

If the city of Indianapolis decides to allow a major corporation to bring a massive multi-national manufacturing facility to their downtown, they will destroy the natural order in the economic development of this growing metropolitan area. If GM's decision is approved, they will be doing more than just getting a location in the heart of the city. They will destroy an already struggling neighborhood. The loss of good-paying jobs, better-than-average schools and a poor quality of life will make it difficult for the residents of the white river valley to pull themselves out of poverty. People that have known their own rural lives will find it hard to adjust to the new lifestyle of a downtown Indianapolis.

Outsourcing work to a large pharmaceutical company is only going to have a long-term positive impact on the Indianapolis economy if it is done correctly. Outsourcing has long been used by other industries as a way to keep costs down and save time on many projects. The pharmaceutical company plans to do a lot of their work in India under extremely difficult working conditions and at terrible time producing high quality pharmaceutical products. Outsourcing to an Indian facility will help alleviate some of these concerns, but will not be able to replace the long-term reliable jobs provided by the GM Stamping Plant.

The citizens of Indianapolis need to understand how important it is for their community to move forward and embrace the new chapter of their history. This means they need to stop looking to just one company to bail them out of their current situation and move forward as a whole. Outsourcing to the GM Stamping Plant in India should be a big part of any plan to revitalize the downtown Indianapolis community. The impact on the long-term finances and health of this neighborhood cannot be overstated and should be a major focal point for any economic development plan in the near westside of Indianapolis.