IBJNews

Life sciences hold up in recession

Back to TopCommentsE-mailPrintBookmark and Share

Indiana’s life sciences companies held up better than their peers around the country—and far better than the rest of Indiana's private sector—during the early phases of the economic downturn.

That trend came through in a report released last week by the Biotechnology Industry Organization at its annual convention in Boston.

The report showed that—from 2007, the peak of the boom times, to 2010—Indiana’s life sciences companies shed about 420 jobs overall, or about 0.7 percent. The job loss rate was twice as high among life sciences firms nationally—and more than 10 times higher among all of Indiana’s private employers.

Meanwhile, during the same three-year period, wages for Indiana’s life sciences jobs rose 3.9 percent, to an annual average of $85,100. Wages at life sciences firms nationally rose just 0.6 percent during that period, to $82,700.

Wages among all of Indiana’s private-sector businesses fell a sharp 7.9 percent from 2007 to 2010, to an annual average of $49,500.

Those data, the most recent available, were produced by Ohio-based research firm Battelle, using job and wage figures for 27 life sciences-related industry subgroups, which were reported by the U.S. Bureau of Labor Statistics.

“This again shows that the investments made over a decade ago are paying off,” said Kristin Jones, CEO of the Indiana Health Industry Forum, which is the Indiana affiliate of the Boston-based Biotechnology Industry Organization.

Interestingly, Indiana struggled most in the pharmaceutical sector during the 2007 to 2010 period. With Indianapolis-based Eli Lilly and Co. cutting more than 1,000 jobs here in 2010, employment in that sector tumbled 12.2 percent, to 17,141 workers.

The jobs that remain, however, tend to pay more than before. While pharmaceutical jobs experienced almost no increase in wages from 2001 to 2007, they surged 20 percent from 2007 to 2010, when they averaged $127,600 per worker.

Battelle’s analysis marked out states that have a specialization in each of five life sciences sectors, which include pharmaceuticals, agricultural chemicals, medical devices, research and biosciences distribution. A state was determined to have a specialization if its jobs per capita in one of those sectors was more than 20 percent higher than the national average.

No state had a specialization in all five sectors. Only Indiana, New Jersey and Puerto Rico had specializations in four out of five of the sectors. The only sector  in which Indiana lagged was research, where it has 20 percent fewer jobs per capita than the national average.

“Our industry here is both diverse and deep, and we’re now fully positioned to do even more,” David Johnson, CEO of the Indianapolis-based life sciences development group BioCrossroads, said in a prepared statement. “In fact, and especially at this time of challenge and change, it is critical that we continue to build from strength and pursue opportunities to encourage growth, innovation and support.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT