No. 3: IMS Has $1.058 Billion Impact on Local Economy
December 29, 2023 | By Curt Cavin, Indianapolis Motor Speedway
Note: The Penske Entertainment editorial staff is looking back at the 10 biggest moments of 2023 at Indianapolis Motor Speedway in this year-end series, with one installment appearing on the site per day in countdown fashion from Dec. 22-31.
Indianapolis Motor Speedway and its Month of May activities, including its iconic Indianapolis 500 presented by Gainbridge, delivered $1.058 billion in annual economic activity, according to a study released in October by the Indiana University Public Policy Institute.
The results showcased the significant scale of IMS, the “500,” and the workforce development impact on the community, with more than half of the total – $566.4 million – attributed to racing in May.
The 2023 study addressed the direct and indirect economic contributions made by IMS between June 1, 2022 and May 31, 2023. Included in the analysis were IMS operations; spending by visitors to IMS for events like the Indianapolis 500 presented by Gainbridge, Brickyard Weekend and other events and activities like the SVRA Invitational and Intercontinental GT Indianapolis 8 Hour, the Brickyard Crossing Golf Course and IMS Museum; and the continued presence and recent growth of INDYCAR race teams and the Dallara facility in the Indianapolis area, which call Indiana home due to the presence of IMS and Penske Entertainment’s headquarters.
Among the notable statistics from the extensive study included $117.2 million in impact from the 2022 Brickyard Weekend, $86 million for visitors in May 2023 traveling within 100 miles of the Speedway and $375.1 million for all other IMS activities.
The study showed that motorsports generated 8,440 direct and indirect full-time equivalent jobs, totaling an estimated $360 million in labor income.
“The Racing Capital of the World is a marquee hub for economic development that directly benefits Central Indiana and the Hoosier State, triggering innovative activity and providing jobs and income for thousands of families,” IMS President J. Douglas Boles said. “The impact and value of IMS and its contributions to Indiana’s economy are invaluable and fuel us to further prioritize our role as a key driver of progress and impact moving forward.”
The impact of IMS supports local businesses through out-of-town visitor spending at area establishments, including lodging and food. In addition, the resulting tax revenue from employee wages benefits Indiana localities and the state.
The last economic impact study was conducted in 2013 and determined that IMS generated more than $510 million annually to the Indiana economy at that time. Over the last decade, the growth has been influenced by additional motorsports events and activities, as well as increased attendance at marquee events. The growth of race teams and motorsports-related businesses in the area also contributes to the increased impact.
Delivering unbiased research and data-driven expert analysis, the IU Public Policy Institute is a collaborative research arm within the O’Neill School of Public and Environmental Affairs at Indiana University.