Great Lakes Private Sector GDP was 89.5% in 2015
The GDP data is sourced from the Bureau of Economic Analysis (BEA). For the country as a whole private sector Gross Domestic Product only changed from 87.6% of total GDP in 2015 from 87.3% in 1997, and the goods-producing sector’s share has only fallen to 19% from 22.6% over the same period. The Great Lakes private sector GDP is above the national average at 89.5% and at 23.5% it is more reliant on the good-producing section, but there are significant variations across the states, which are revealed below.
The Goods-Producing Sectors
There are four sectors classified as goods-producing by the BEA:
- Mining
- Agriculture
- Construction
- Manufacturing
In the Great Lakes Economic Region, private-goods producing industries contributed 23.5% to the region’s Gross Domestic Product (GDP) in 2015, down from 28.1% in 1997, a 16.3% fall in its share. Nationally the GDP for private goods-producing industries fell from 22.6% to 19% in the same period, a decline of 15.9%.
There are considerable variations in the performances of the sectors in the respective states. Michigan struggled the most, especially in the goods-producing sector, whereas in Indiana the sector has done very well. In Wisconsin the services sector has done best of all in the region over the 18 year period from 1997 to 2015. In that time the Great Lakes goods producing industries GDP has grown by 50% and its services sector has grown by 92%.
Index calculations of growth prepared using 1997 as the base year
 
For ease of reference two tables have been prepared to illustrate the growth by 2015 since 1997 in the private sector GDP attributable to the private services providing sector and the goods producing sector. Using 1997 as index 100 the tables give a quick snapshot of the relevant performance of each sector.
The tables also illustrate any differences within each state, revealing how the structure of its economy may be changing over time. It is interesting to note that Indiana and Wisconsin are the top two in for growth in both the services and the goods sector. Wisconsin’s services sector has grown the fastest of all by 113% while Indiana’s critical goods producing sector  is keeping pace with the growth in its service sector. Michigan, on the otherhand is struggling relative to the others with the goods-producing sector only growing by 31% in 18 years before inflation is taken into consideration.
These tables are used for references in the individual state posts below.
90.1% of Illinois’s Gross Domestic Product was from the private sector in 2015
The value of Illinois’s GDP from goods-producing industries at 17.8% is below the average for the Great Lakes region, and declined from 21.9% in 1997. In the region only Ohio’s ratio has declined at a faster rate in this time. The index of 147 confirms the value of Illinois’s good-production is growing slower than the national average (Index 176) and just below the regional index of 150.
In contrast the Illinois’ services sector index of 196 is just above the regional average of 192.
Illinois’ private sector GDP was $695bn in 2015 in an economy worth $772bn in total.  Illinois had the 5th largest state economy and of the four states that are larger (California, Texas, New York and Florida) only Texas had an economy more dependent on the goods producing sector.
90.8% of Indiana’s Gross Domestic Product was from the private sector in 2015
 
Indiana’s economy is the second most reliant on the goods-producing industries, accounting as it does for 35% of the state’s Gross Domestic Product in 2015, just behind Wyoming at 35.2%. However, Indiana’s sector is based on manufacturing whereas Wyoming’s in based on mining, so Indiana stands out in terms of its dependence on manufacturing, much of it geared towards the auto industry.
As seen above the Indiana goods-producing GDP Growth Index of 193 is best in the region by far. Wisconsin is a distant second on 157, and the average for the Great Lakes BEA Region was 150. This level of growth is in line with the service sector (Growth Index of 199 for Indiana) and that is the reason why the goods-producing sectors share of the economy has only slipped by 0.9% in eighteen years.
Indiana’s private sector GDP was worth $303bn in 2015 in an economy worth $330bn in total. The manufacturing sector was worth $98bn to GDP in 2015 also. Indiana’s economy is the 16th largest, just ahead of Minnesota and behind Maryland. However, its good-producing economy is bigger than Maryland’s and Minnesota’s combined.
89.3% of Michigan’s Gross Domestic Product was from the private sector in 2015
 
The proportion of Michigan’s GDP from goods-producing industries at 24.7% was down from 29.2% in 1997, a decline of 15.5%. The Growth Index was only 131 in 2015, which was well below the national average and the 6th lowest in the country. The Growth Index for the Great Lakes region was 150 and Indiana’s goods sector outperformed was the best in the region with a Growth Index of 193.
Michigan’s economic mix would have changed more dramatically were it not for the fact that its service sector under-performed also. It only grew by 66% since 1997 compared to 92% for the region and 113% in Wisconsin.
Michigan’s private sector GDP was worth $420bn in 2015 in an economy worth $471bn in total. The value of GDP attributable to manufacturing was $92bn in 2015, which is now $8bn smaller than Indiana’s, when eighteen years ago it was $23bn bigger. Clearly Indiana’s manufacturing sector has been much more adaptable.
Michigan’s economy is the 13th largest, similar to Washington, Virginia and Massachusetts. Due to its reliance on the good-producing sector, that side of Michigan’s economy is worth more than the combined value of Virginia’s and Massachusetts’ goods producing economies.
88.8% of Ohio’s Gross Domestic Product was from the private sector in 2015
The value of Ohio’s GDP from goods-producing industries at 22.9% is down from 29.6% in 1997, a decline of 22.6%, which is above average for the region.
The Index of 141 is well below the national average of 176 and the 14th lowest in the country. This performance may be better than Michigan’s but it lags well behind the 93% growth achieved in Indiana by its good-producing sector.
Ohio’s service sector did grow faster, by 97% since 1997, but this was just above the Great Lakes average of 92%.
Ohio’s private sector GDP was worth $539bn in 2015 in an economy worth $607bn in total. It manufacturing sector contributed $105bn to GDP in 2015. Ohio’s economy is the 7th largest in the union, about $40bn bigger than New Jersey’s. However, its goods-producing economy is twice the size of New Jersey’s.
88.6% of Wisconsin’s Gross Domestic Product was from the private sector in 2015
 
The value of Wisconsin’s GDP from goods-producing industries at 25% is similar to Michigan’s, but its share is declining at a slightly faster rate since 1997, when it was at 31%. The decline of 19.1% compares to the 15.4% decline in Michigan.
However the reasons for the decline are different. In Wisconsin’s case, its services sector is thriving relative to the other Great Lakes states, whereas in Michigan’s case both its goods and services sector are lagging behind everyone else in terms of growth.
In 2015 Wisconsin’s service sector Growth Index was 213 compared to 166 for Michigan and its goods producing growth index was 157 compared to 131 for Michigan. Wisconsin topped the region for service sector growth since 1997 and was second to Indiana in goods sector growth.
Private sector GDP was worth $267bn in 2015 in an economy worth $302bn in total. Wisconsin’s economy is the 20th largest, similar in size to Missouri and Colorado.
Gross Domestic Product data is sourced from the Bureau of Economic Analysis (BEA) and is up to date as of June 20th 2017.
