Kokomo economy 'pretty darn good'
Also, Greater Kokomo introduces Accelerate Indiana to support local business
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Kristen Dzkiczek, a policy advisor for The Federal Reserve Bank of Chicago, spoke recently to the Greater Kokomo Economic Alliance at IU Kokomo’s Kresge Auditorium, giving her take on the central Indiana economy. In Dzkiczek’s view, the Kokomo economy is “pretty darn good.”
Dzkiczek noted that the Federal Reserve Bank (The Fed) has a “dual mandate: maximize employment and have prices be stable.” She noted that inflation is still a problem, but prices are falling “faster than they have ever before in the post-war period.”
Referring to the “Zillow Index” of home sales, she noted that prices have come down as well and that goods have been deflationary, “which might explain why people are buying a lot of goods … it’s remarkable.”
Durable goods include cars, which as statistics still show, have a shortage of inventory in certain sectors.
“We are watching the labor market very carefully, and it continues to show strength …for 28 straight months under four percent, which is considered full employment,” said Dzkiczek.
Turning the topic to electric vehicle (EV) sales with domestic manufacturing, Dzkiczek said, “One of the ways the government is trying to spread the adoption of EVs is through legislation … affecting new plants,” such as the passage in 2023 of The American Rescue Plan stimulus bill.
“(The plants) have grown five and a half times larger since the passage of the infrastructure bill,” she said.
Dzkiczek also spoke positively about the EV markets after the United Auto Workers (UAW) negotiated its influence in future newly constructed battery facilities in the Midwest, Texas, and California. Kokomo’s two StarPlus Energy plants, joint ventures with Stellantis and Samsung, have not officially been placed under the master agreement with the UAW, but local union leaders are confident this will be the case. General Motors led the “Big Three” U.S. automakers by placing its Ultium EV battery plants under the agreement.
Dzkiczek’s one concern is that as the American manufacturers are taking some steps back in EV production, China is preparing an assault of low-cost EV models that are already popular in Mexico, Europe, and Africa.
“They (China) have a lot of control over critical minerals for batteries, and they have started to impose export restrictions on these,” Dzkiczek said. “We need to develop non-China sources, and we need to have some sort of price support.”
Greater Kokomo introduces Accelerate Indiana to support local business
The Greater Kokomo Economic Development Alliance has partnered with MatchBOX Studios to introduce Accelerate Indiana, a course designed to create access and support for potential business owners and entrepreneurs in our area. The course will last approximately seven weeks and is slated to begin in early April, according to Manager of Downtown Initiatives Susan Alexander.
MatchBOX Studios is a business incubator located in downtown Lafayette, Ind., that allows access to office space and networking meetups. In the Accelerate Indiana program, entrepreneurs will meet with other established business owners to learn how to “pitch” a product, marketing strategies, and will review prospective sales and business models.
The program also comes with a one-year affiliate membership to MatchBOX Coworking Studio and access during business hours to professionals such as lawyers, accountants, and other subject-matter experts.
The course offers a hybrid model, with in-person and online learning options. Participants engage weekly with other local entrepreneurs in sessions designed to help them get their business started or moving forward.
The cost of the program is $25, and spots are limited.
The Accelerate Indiana Program has graduated more than 100 founders of start-up businesses and have negotiated more than $80,000 in microgrants to graduate entrepreneurs. According to the Accelerate Indiana website more than 75 percent of program graduates are still operating their businesses today.
For those prospective or already established business owners interested in applying, visit www.mbx.studio/greaterkokomo. Those with questions about the program and start dates can email Downtown Initiatives Director Susan Alexander at salexander@greaterkokomo.com.