"One Major Employer" Definition

2 Replies

Hi All

I am located in SC Indiana in a very small rural community. The nearest town of any population is Columbus, Indiana, which is just south of us about 10-15 miles. This is where we would go to do most of our shopping and entertainment, etc. The area has had steady population growth and one side of town in particular is really booming. Current population is 46,850. This is where my wife and I are looking to invest. 

My newbie question has to do with the red flag of one major employer. Columbus is the home of Cummins engines and they employ about 8,000 people around the area. It is a major player in the local economy. While I don't see any clues that they would go anywhere anytime soon, its obviously possible. At almost 20% of the population, their departure would have an impact on the real estate market for sure. 

In your opinion, is this something to be concerned about? I guess while I know 20% is significant, I'm not sure if that's incredibly high compared to other markets around the country. We are only about 35 miles from Indianapolis, so there's always that market to explore as well. We just don't know the area quite as well.


I’m a heavy investor in the Columbus area but from my experiences thus far, many of the people who rent residential housing in the area do not work at Cummins. Very few of my tenants work at Cummins - I think this stems from most Cummins employees leasing apartments from the huge complexes in town.

As for Cummins future in Columbus, Cummins made a commitment to Columbus a few years back that they would be keeping their headquarters here - investing around $50 million into the city (http://indy.st/2uxRaOw)

If you have any other specific questions about Columbus or my experiences over the last three years, let me know and I’d be more than willing to help out! Best of luck!