Indiana’s emergence as a logistics powerhouse is not the result of a single industry advantage, but rather a system that includes geography, infrastructure, manufacturing, automation and advanced digital platforms.
The result? A $93B contribution of economic activity in the state, according to Conexus Indiana, a network dedicated to advancing advanced manufacturing and logistics. Indiana has become a state that not only efficiently moves goods, but also a place that determines how goods are moved.
At the foundation is geography. Indiana is well known as a state that lies within a one-day drive of a large share of the country’s population. The location makes Indiana an ideal distribution anchor for national supply chains. And while location is a major factor in the success of logistics in the state, it doesn’t act alone. What makes logistics a major win in Indiana is integration.
Indiana’s interstate system creates a freight grid that supports continuous movement throughout both regional and national corridors. Surrounded by rail infrastructure and an air cargo presence in Indianapolis, these factors work together to create a rich logistics environment that supports multi-model distribution.
As the logistics industry bloomed over the years, Indiana has attracted industries that were eager to take advantage of both geography and integration, while also capitalizing on a strong manufacturing presence and growing digital footprint. The quest is to develop tightly coordinated supply chains, particularly advanced manufacturing and high-efficiency fulfillment outfits, with the emergence of non-traditional ventures operating in the software space.
One of the most prevalent industries is Eli Lilly, a global pharmaceutical manufacturing and distribution network based in Indianapolis. With production, temperature-controlled storage, and international distribution systems interdependent on one another, logistics have been developed into the production systems themselves. A similar transformation is happening in warehouse storage and fulfillment centers, like Amazon’s, where advanced robotics systems using artificial intelligence and automation reduce fulfillment time and increase throughput.
Air logistics is also a structural advantage. FedEx’s Indianapolis air hub is a major development in Indiana. As the second-largest FedEx Express Hub in the world, it serves as a link in a chain of manufacturing to air cargo, and air cargo to national networks.
Today, the logistics sector continues to advance in the state with operational environments that are spilling beyond warehouses and transport hubs. In hospitals, Indianapolis-based Arrive AI has developed autonomous systems described by the company as “last-inch” delivery. The system manages internal delivery of lab samples, pharmaceuticals, and medical materials. Positioned as a logistical tool to save costs and improve patient care, makers say the development has resulted in 50% lower delivery labor costs and over 20 hours of freed-up time for staff members at Hancock Health. The latest technology from Arrive AI represents a shift in logistics design and function to serve as an orchestration of the movement of critical goods internally.
Another logistical technology making headlines recently is ClusterTruck, a delivery-only kitchen that manages ordering, production and routing all in one system. The business model was developed to eliminate third parties in the food ordering and delivery process. Much like the Arrive AI system, ClusterTruck is structurally different than industrial supply chains and is defined by the software rather than physical infrastructure.
Also notable is Indiana’s participation in the Federal Aviation Administration’s Unmanned Aircraft System, announced in January. The initiative enables real-world testing of drone logistics and autonomous delivery systems under regulated conditions.
Indiana has made a name for itself in the logistics industry by supporting multi-layered, multi-system environments where different forms of logistics are evolving simultaneously.
