Building Indiana May-June 2010

MAY/JUNE 2010

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Sparking Jobs Photo Feature

The Midwest Smoke Out 26

Feature

Designed for Excellence 42

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The Northwest Indiana Construction & Safety Awards 46

Today, we’re all facing new challenges that require new solutions. Solutions built on cost savings and energy efficiency.

Our solution isn’t new, but it’s worked for more than 100 years. An insulation upgrade of your boiler room will save energy immediately and pay for itself fast.

Our mission hasn’t changed.

It’s just more vital than ever.

Go to www.local17insulators.com to learn more.

Looking for Leaders The last six months have been an absolute whirlwind for Building Indiana. Our statewide expansion was greeted more warmly than we ever hoped, and the support and contributions we’ve received from people and companies all around the state has been deeply gratifying.

Now, it’s our turn to give something back in our upcoming July/August issue, which will feature “Who’s Who in Indiana.”

Modeled on our successful “Who’s Who in Northern Indiana,” published in 2009 before Building Indiana went statewide, “Who’s Who in Indiana” will shine the spotlight on the key business, academic, government and economic development leaders from all over Indiana. It will give them the recognition they’ve earned – and in the process create a statewide guide to people you need to know to get things done in Indiana.

To help us identify the key economic movers and shakers in Indiana, we have established a page on our Web site, http:// www.buildingindiananews.com/whoswho.php, where you can nominate your local leaders (and even yourself) for inclusion in the next issue. It only takes a few minutes, but goes a long way in helping us make sure that everyone who deserves acknowledgement gets it.

You can also e-mail Who’s Who nominations directly to Building Indiana at editor@buildingindiananews.com. If you do so, be sure to include the person’s name, age, title, company, annual revenue, professional and civic memberships, and a phone or e-mail so we can contact them for a photo. (Note that age and revenue are optional.)

So, that’s what’s on tap. Right now, I invite you to enjoy this issue of Building Indiana!

317.632.1410 • 219.226.0300

Publisher/Editor Andrea M. Pearman andrea@buildingindiananews.com 219.226.0300 ext. 301 Senior Writer David Wellman dave@buildingindiananews.com 219.226.0300 ext. 307 Creative Director Rebekah Hendricks rebekah@buildingindiananews.com 219.226.0300 Assistant Office Coordinator Joan Ranta joan@buildingindiananews.com 219.226.0300 ext. 308 Special Projects Coordinator Maureen McShane maureen@buildingindiananews.com 219.226.0300 ext. 302 Director of Marketing Chrischelle Schmidt chrischelle@buildingindiananews.com 219.226.0300 ext. 304 Director of Events Kristin Jurczak kristin@buildingindiananews.com 219.226.0300 ext. 307 Director of Online Media Sumer Rex sumer@buildingindiananews.com 219.226.0300 Website www.buildingindiananews.com Blog www.buildingindianablog.com

Kind Regards,

Building Indiana News is a business-to-business publication from Diversified Marketing Strategies.

Visit us at 3dms.com

Andrea M. Pearman Publisher

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2006 Communicator Awards’ Award of Distinction 2009 Communicator Awards’ Award of Excellence

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2009 Davey Awards Silver Award

2006 APEX Award for Publication Excellence

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2007 Summit Creative Award 2010 Summit Creative Award

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2006 Marcom Gold Award Winner 2007 Marcom Gold Award Winner 2008 Marcom Gold Award Winner

2008 Hermes Gold Award 2009 Hermes Gold Award

Andrea M. Pearman 2009 Small Business Journalist of the Year

2009 Nichee Magazine Award

2009 Silver Award 2010 Gold Award

Copyright ©2010 Building Indiana News is published six times a year. Address correspondence to: PO Box 730, Crown Point, IN 46308-0730. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at andrea@buildingindiananews.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.

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MAY/JUNE 2010

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04 Publisher’s Desk 08 Contributors 09 Business Buzz

EVERY ISSUE

24 People News 40 Real Estate Corridor Report Restocking the Pond 56 Facts & Stats

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Nonprofit & Charitable Giving Statistics

36 Being Productive Running Up the Score

81 Location Finder Commercial & Industrial

62 Small Business Spotlight Think Fast

Real Estate Professionals 80 Real Estate Marketplace

26 PHOTO FEATURE The Midwest Smoke Out

64 Logistics Thinking Logistically about Indiana’s Future

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68 Worker’s Comp Profiting from Ergonomics

DEPARTMENTS

38 Mass Production World Wide Weld

46 Feature Best of the Best: The 2010 Construction Advancement Foundation Awards 52 FEATURE Safety in the Spotlight: The 2009 NWIBRT Safety Awards 58 FEATURE Flight Plan 79 COMMUNITY SPOTLGIHT Guard Growth

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28 State of the Industry Classification Crackdown

EXPERT ADVICE

FEATURES

42 FEATURE Designed for Excellence

30 Rule of Law Listen to GINA 31 SAFETY ZONE Scared Safe 33 The Bottom Line The Next Wave

70 Your Well-Being The Prevention Profit Center 73 Green & Sustainable Geo U 75 Lifelong Learning Learning Center 76 Welcome Center Summer Drive 77 Marketing Communities in Competition 82 The Last Word Powering Indiana Jobs www.buildingindiananews.com

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Contributors JAY ARTHUR

Jay Arthur is author of “Double Your Profits: Plug the Leaks in Your Cash Flow.” He has spent the last 20 years helping companies maximize revenue through the “Lean Six Sigma System,” a collection of audio, video, books and software. Jay is also the author of “Lean Six Sigma Demystified” and the “QI Macros SPC Software” for Excel. You can reach him at (888) 468-1537.

DAVID BRUCE Sgt. David Bruce is a Public Affairs noncommissioned officer at Camp Atterbury Joint Maneuver Training Center. He graduated from the Defense Information School at Fort Meade, MD, in 2008 as an Army journalist and from the University of Indianapolis with a bachelor degree in visual communication design.

JULIE COOK

Julie Cook is the Medicaid Infrastructure Grant Project Manager, for the Bureau of Rehabilitation Services, focusing on overcoming barriers for employment for people with disabilities. Formerly, Cook was with the Agency Coordination and Integration Unit in the Office of Medicaid Policy and Planning. She is a graduate of Indiana University Purdue University-Indianapolis with a B.A. in Political Science.

JAMES EMMETT James Emmett is a national leader in the development of employment services for individuals with disabilities and in assisting corporations in the creation of outreach efforts to the disability community. Emmett is the Corporate Development Consultant for Indiana Vocational Services. He serves as

Director of APSE HR, is the Chief Operating Officer of Integrated Behavioral Systems and is a Partner in the consulting firm Two Steps Forward.

DANIELLE GINGRICH Danielle Gingerich is the Media and Communications Specialist for the Marketing & Strategy Department of La Porte Regional Health System.

She is responsible for developing and producing both internal and external materials to promote the organization, including writing and editing the quarterly Life & Times magazine, as well as handling all media relations.

DAVID HOLT

David Holt is Vice President of Operations and Business Development for Conexus Indiana. He is responsible for budgeting, business development and engagement activities, development of a statewide strategic plan for Indiana’s logistics industry, promotion of a defense asset study and internal office operations.

STEVEN A. JOHNSON Steven A. Johnson is a partner in Johnson, Rappa & Ivancevich, LLC, in Merrillville. He concentrates his practice in the areas of litigation, labor relations and construction law. Johnson has served as an adjunct professor at Valparaiso School of Law and has taught labor relations at Purdue University Calumet.

DEWEY PEARMAN Dewey Pearman serves as the Executive Director for the Construction Advancement Foundation. He holds a Masters Degree in Economics from Indiana State University. The Foundation promotes the union construction industry of Northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development.

LESLIE R. RUBIN Leslie Rubin has been providing economic development services to private sector companies for more than 15 years.

She has also consulted on environmental and health industry related issues. Leslie is a member of the Advisory Board for Alliance Home Care, is on the Board of Directors of three non-profit organizations, and has served on various community committees.

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www.buildingindiananews.com

BUSINESS BUZZ

“This latest Beacon Communities award is especially important, because it shows national recognition for something we’ve known here all along: that Indiana is the leader in health information technology...”

- David L. Johnson, President and CEO of BioCrossroads

Grants Boost Indiana’s Health Information Technology Sector

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ith the early May announcement of a $16 million federal “Beacon Communities” grant for Central Indiana, the Hoosier state has now landed nearly $50 million in total federal funding for health information technology (HIT) programs under the American Recovery and Reinvestment Act (ARRA).

The most recent grant comes through the Beacon Communities Cooperative Agreement Program, administered by the U.S. Department of Health and Human Services. One of 15 highly competitive grants awarded under the stimulus act, it was given to a consortium led by the Indiana Health Information Exchange (IHIE), Indiana’s largest health information exchange. IHIE links scores of hospitals, thousands of physicians and millions of patients through a secure, privacy-protected network. Such secure communications help reduce unnecessary tests and hospital visits, and improve preventive care.

IHIE was formed in 2004 by Biowww.buildingindiananews.com

Crossroads, a public-private collaboration that provides money and support to life sciences companies, and markets the state’s life sciences businesses. “One of BioCrossroads’ top priorities has always been to seize and then build upon Indiana’s impressive strengths in the communication and analysis of clinical information,” says David L. Johnson, President and CEO of BioCrossroads. “This latest Beacon Communities award is especially important, because it shows national recognition for something we’ve known here all along: that Indiana is the leader in health information technology, and IHIE is putting that HIT leadership to work to drive better health outcomes here in Indiana and across the United States.”

More Funds Won

BioCrossroads has collaborated with and provided support to each organization submitting HIT-related grant applications for federal funding. Last month, the ARRA’s State Health Information Exchange Cooperative Agreement Program (SHIECAP) an-

nounced the award of a $10.3 million grant to the State of Indiana. Under this grant, Indiana and its current network of five health information organizations, including IHIE, will work together to develop statewide health information exchange capabilities through a new state-chartered, non-profit entity, Indiana Health Information Technology, Inc. In February, Indiana received more than $20 million in additional funding for HITrelated programs through the ARRA. Purdue University received a $12 million competitive award to advance the development of a university-based regional extension center program for health information technology; Ivy Tech received a $5 million competitive award to provide accelerated training for an HIT-skilled workforce; and the Indianapolis Public Industry Council received $4.8 million for training of nurses and allied health professionals in HIT. Indiana University also received $1.4 million from the U.S. Department of Health and Human Services for other, universitybased HIT training programs in April.

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BUSINESS BUZZ

70 Jobs for Perry County WGS Global Services LC, a startup provider of machining and light assembly services, has located its newest production facility in Tell City and will add up to 70 new jobs by 2013.

The company, which provides a variety of manufacturing and logistics services to customers in the automotive, defense and commercial manufacturing industries, will invest $279,000 to lease and equip a 22,500-square-foot facility to launch its first independent Indiana production operation.

Flint, MI-based WGS, which currently employs nearly 20 associates in Tell City, plans to continue hiring manufacturing, distribution and inspections associates as new business is acquired.

The Indiana Economic Development Corporation offered WGS Global Services up to $275,000 in performance-based tax credits based on the company’s job creation plans. Tell City offered additional support for the project.

Nonprofit Launches $2 Million Fund Drive Opportunity Enterprises, a Valparaiso-based not-for-profit organization dedicated to helping individuals with challenges and disabilities, has launched a fund drive for the first phase of development on 158 acres on Lake Eliza in Northwest Indiana.

The organization plans to build a 64-unit apartment complex and a day services building for challenged individuals, the first steps in a 20-year plan that includes more housing, walking trails, gardens and more.

Opportunity Enterprises has received a $2 million matching grant from the Dean & Barbara White Foundation, and is hoping to raise the full $2 million in matching donations by early 2011.

Opportunity Enterprises originally acquired the Lakeside property in 2007, and renovated an existing facility that currently serves 100 of its clients. If fully realized, OE Lakeside will eventually host a full-scale community, including classroom space, disability-accessible apartment buildings, nature trails, playgrounds, a picnic shelter and even homes for families and siblings of individuals with disabilities who want to remain close to their loved ones, but can’t provide the care they require.

To support the One Year – One Challenge OE Lakeside Capital Campaign, the organization has launched a Web site, oelakeside.org, where people can learn about the project, donate, and purchase mugs and t-shirts to support the campaign. OE is also holding a variety of fund-raising events in cooperation with local businesses, churches, schools and other community groups.

Wayne County Boosts Two Local Firms The Wayne County Economic Development Corporation has granted EDIT funds to two local firms to help them in expanding their businesses and creating new jobs in the area.

Crate Creations, located in the Rose City Business Park in Richmond, will receive $5,000 in EDIT funding to assist in the purchase, shipment and installation of new machinery and the training of employees which will allow it to branch out into the bio fuel and animal bedding industries. Crate Creations will be investing $150,000 of its own money for the new machinery and 10

www.buildingindiananews.com

Hobart Company Celebrates 100th Anniversary

City’s efforts to develop Ignition Park in the former Studebaker Corridor – a jump of 16 percentage points in one year.

According to the survey, 56.5 percent of residents are aware of Ignition Park, compared with 40.5 percent in 2009. The increased awareness of Ignition Park exceeded increased awareness levels for both its sister campus, Innovation Park at Notre Dame and for MIND, the Midwest Institute for Nanoelectronics Discovery, each of which experienced more modest increases in awareness levels.

In addition, 45 percent of residents say Ignition Park is important or very important to the future of South Bend’s economy.

In other survey results: • Nearly 83 percent of residents said South Bend’s relationship with the University of Notre Dame is beneficial to the area’s economy.

BUSINESS BUZZ

adding one new job.

Hagerstown Plastics, also in Richmond, is expanding into the former Bev’s Threads building located at 621 S. J Street in order to expand operations, creating six new jobs in the process. The company is investing $260,000 in the expansion project. The EDC of Wayne County has provided an EDIT grant of $6,825 from the consolidated EDIT fund to assist in the purchase and renovation of the facility and for the training of employees.

- continued on pg 12

Few people – and even fewer businesses, especially the ones that are family owned and operated – survive 100 years. But Indiana Botanic Gardens Inc. (IBG) in Hobart is an exception.

Founded in 1910 in a small cottage in the rear of Joseph Meyer’s home in Hammond, IBG began as a small independent supplier of hard-to-find herbs.

Today, its Botanic Choice line has become a premium brand of condition-specific nutritional supplements. It now offers more than 500 high-quality natural products and has millions of customers worldwide. Its line of nutritional supplements, vitamins, aromatherapy, homeopathic remedies, teas, spices and beauty care are sold through catalogs, a Web site, and its retail store. Throughout 2010, customers will enjoy special contests and extra discounts to celebrate the milestone.

South Bend Stays Positive Nearly 70 percent of South Bend residents expressed optimism about the city’s economic future, according to a recent random-sample survey conducted on behalf of the city of South Bend’s effort to promote economic development.

According to the survey, 69.5 percent of residents said they were optimistic or hopeful about South Bend’s economic future. In the survey, 26 percent said they were pessimistic or doubtful about the city’s economic future.

The hopeful viewpoint was reinforced in open-ended responses to the question, “What is your opinion about South Bend’s economic future?” Nearly 47 percent responded with clearly positive responses, compared with nearly 31 percent in 2009 at the height of the global economic crisis. Pessimistic responses in 2010 declined to nearly 35 percent, compared with more than 51 percent in 2009.

The survey also showed that a majority of South Bend residents now are aware of the www.buildingindiananews.com

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BUSINESS BUZZ

• Nearly 73 percent of residents have access to the Internet at home.

• There is a significant gender gap in awareness of Ignition Park, Innovation Park and MIND. Men are statistically more likely to be aware of these technology-related initiatives than women.

Lumber Company to Re-open The city of Franklin and Carter Lumber have reached a tentative agreement to re-open operations in Franklin, this time in space available in the former Davidson/Stock facility on US 31.

Carter Lumber will occupy the remaining 25-plus acres of the site, and will specialize in products designed to meet the needs of the residential and commercial builder. The new facility will have a showroom along with truss and custom millwork manufacturing capabilities. Products that will be sold include: lumber, custom millwork, windows, doors, kitchens, trusses, panels

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and engineered floors. The facility will open in June, and the new operation is expected to create 80 to 100 jobs.

Family-owned Carter Lumber was founded in 1932 and has 190 locations in 10 states and employs more than 2,500 people. They are the ninth-largest supplier of building materials to professional builders in North America.

New Restaurant Celebrates Industrial Heritage The Industrial Revolution Eatery & Grill, a new restaurant celebrating Northern Indiana’s industrial heritage, has opened in Valparaiso. The brainchild of Mike Leeson, President of Synergy Steel Structures (SSS), the new restaurant features the work of artist Sergio Furnari. His life-sized sculptures, based on the famous 1930s photograph “Lunch Atop a Skyscraper,” were originally displayed at the former site of the World Trade Center in New York City following the 9/11 attacks, afterwards touring the U.S. They now adorn the restaurant.

“It was the industrial revolution that built our middle class,” Leeson says, “and Indiana played a huge role in building the country. I thought we should celebrate that. It’s a labor of love.”

The restaurant’s décor features a great deal of steelwork, “all done the way they used to do it,” Leeson says, and finished with a propriety SSS process that simulates the look and feel of rust. Walls are adorned with early1900s-era photos and motivational quotes, and a miniature steam locomotive hanging from the ceiling makes the rounds of the restaurant while big-band music plays over the sound system. Flat-screen televisions show continuous loops of The History Channel’s series, Modern Marvels.

Dining choices include steaks, stuffed burgers and brick oven pizzas.

Triathlon Returns to Northwest Indiana South Shore Sports Promotions, the sports sales department for the South Shore Convention and Visitors Authority, is bringing Leon’s Triathlon back to Northwest Indiana in 2010 after a 15-year hiatus. Leon’s was formerly one of the largest triathlons in the Chicago area and attracted professionals from around the nation.

June 6 will bring what is being touted as one of the world’s fastest triathlons to the rewww.buildingindiananews.com

Steel Maker to Invest $138 Million in U.S. Facilities ArcelorMittal is moving forward with approximately $138 million in capital funding for three investments within its U.S. Flat Carbon operations, including its Indiana Harbor and Burns Harbor facilities.

At Indiana Harbor, the funds will allow the facility to upgrade its 84” Hot Strip Mill coiling capability, which will expand its product size range and improve quality.

The upgrade will allow the facility to meet demand in the energy linepipe and heavygauge, water transmission pipe market by offering a complete range of sizes and grades.

The project will also expand product capabilities to include ultra high-strength, hot rolled steels in a greater size range to serve the heavy equipment markets, including construction and agriculture. The coiler upgrade includes the installation of a state-of-the-art sampling station.

At Burns Harbor, a 160” Plate Mill will add a new, high-capacity leveler as part of the company’s overall plate heat-treating strategy, which aims to provide customers with the broadest range of high-quality, heat-treated products at increased productivity and lower costs. The leveler will be sized for highstrength quenched and tempered products in a broad spectrum of gage, width, length and yield strengths which will allow participation www.buildingindiananews.com

in long-term growth markets such as mining and nuclear. ArcelorMittal has developed a holistic approach to this heat treat facility to improve flatness, surface and presentation quality of its products. Customers will also see improved delivery performance from quality and process flow enhancements at the Burns Harbor plate mill.

Port Authority Names Railroad Manager for Hoosier Southern Indiana Southern Railroad (ISRR), a RailAmerica Inc. property, has been contracted by the Perry County Port Authority in Tell City to provide management services for the Hoosier Southern Railroad (HOS). ISRR will be responsible for leading all aspects of the rail operations of HOS – managing safety and training programs; directing sales, marketing and industrial development - continued on pg 14

Think You Don’t Have Risk in Your Office Area???

Advanced Office TRAC The number of people sitting at a workstation for most of the day is increasing at a rapid rate. Technology continues to change the landscape of work environments. Through no coincidence, the rate of ergonomic related injuries is also on the rise. Would you like to know if you have people at risk for developing an injury as a result of their workstation design and/or set up? Advanced Office Trac will identify those at high risk for ergonomic injury, and help you effectively mitigate that risk. Office Trac will also provide real time data and feedback about the effectiveness of the program!

Benefits Drives ergonomic process to ensure resolution Tracks and provides flagging when the process needs attention Stratifies and quantifies risk before and after intervention

To Reduce Your Office Risk and Worker’s Compensation Claims, Contact Advanced Worksite Solutions for an Ergonomic Consultant at 317-390-5590 or email Suzanne Fowler at sfowler@advancedpt.com www.advancedworksitesolutions.com

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BUSINESS BUZZ

gion with an extensive course that includes an 0.9 mile swim, a 24.8 mile bike ride and a 6.2 mile run, each of which will start and finish at Hammond’s Wolf Lake Park. In addition to the waters of Wolf Lake, the event will utilize parts of Sheffield Avenue, Calumet Avenue and a portion of Cline Avenue from Calumet east to Riley Road.

Event organizers expect as many as 1,000 athletes to compete in the event and have taken special care to address the needs of the several thousand spectators that are expected to witness the race. Registration is available online by visiting www.leonstriathlon.com.

Registered triathletes will be entered into a drawing for a chance to win a Trek bike and one of two Versa Climbers.

According to Jason Sands, Director of Sports Development, South Shore Sports Promotions, the collaboration of local businesses is unprecedented, “Partners of the triathlon include Luke Oil, Strack & Van Til, The Post Tribune, Trek Bicycle Store, Fleet Feet Sports, Home City Ice, Safeway, Michelob Ultra, Hasse Construction, RoadSafe, and the Indiana National Guard to name a few,” he said.

BUSINESS BUZZ

efforts; handling purchasing; and managing the bulk storage facility – while reporting to the Port Authority.

According to the Perry County Port Authority, the decision to select an outside partner for railroad management was prompted by the recent retirement of Richard L. Neumann, who had nearly 40 years of experience in the railroad industry. Neumann served as vice president and CEO of the Port Authority for the past 11 years.

The HOS hauls bulk materials such as pig iron, coke, coal and woodchips that are offloaded at the port from river barges. It interchanges rail traffic with Norfolk Southern at Lincoln City.

With the addition of this new management service, Jacksonville, FL-based RailAmerica now manages, operates or owns a total of seven railroads in Indiana.

Healthcare Company Named Best Place to Work TriMedx, a provider of comprehensive healthcare equipment services, was recently recognized in Hospital Review’s “100 Best Places To Work in Healthcare” for demonstrating excellence in providing a work environment that promotes teamwork, professional development and quality patient care.

The Indianapolis-based company offers medical equipment management to improve healthcare delivery in healthcare systems throughout the U.S. Founded in 1998, TriMedx started as a small clinical engineering department and now serves more than 500 customers across the country.

Red Gold Inks Pact with Cedar Fair Entertainment Red Gold, one of the nation’s premier full-line tomato processing companies, will partner with amusement park and waterpark operator Cedar Fair Entertainment Company. The Orestesbased company will supply the “Official Ketchup,” in addition to other quality tomato products, throughout the Cedar Fair network of parks beginning with the 2010 season.

This new partnership includes Cedar Fair’s flagship park in Sandusky, Ohio, Cedar Point, along with Kings Island in Mason, Ohio; Michigan’s Adventure near Muskegon, MI; Cedar Point’s Soak City waterpark in Sandusky, Ohio; and Geauga Lake’s Wildwater Kingdom waterpark in Aurora, Ohio.

The five-year partnership will also allow for the development of various marketing and promotional programs between the two companies. The partnership was developed through The Kempton Group, Cincinnati-based company who represents Cedar Fair in partnership and promotional programs.

555 Eastport Centre Drive • Valparaiso, IN Phone 800-778-1131 www.chester inc.com

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Fishers Company to Add Jobs Video management systems developer Exacq Technologies, Inc., plans to expand its Fishers headquarters, creating up to 49 new jobs by 2013.

Exacq Technologies develops software systems that manage video surveillance for stand alone applications and multi-branch sites including universities, banks, retail stores, corporate fawww.buildingindiananews.com

South Central Indiana Association Receives Award The Society for Human Resource Management (SHRM) in Alexandria, VA, has awarded the Superior Merit Chapter designation to the South Central Indiana Human Resource Association for its scope of work in perpetuating and supporting the mission of the organization in 2009.

SHRM is the world’s largest association devoted to human resource management. The Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 250,000 members in over 140 countries, and more than 575 affiliated chapters.

The South Central Indiana Human Resource Association is one of 64 chapters receiving the distinction in SHRM’s North Central Region, which is comprised of 10 states and 154 affiliated chapters.

Resources is awarding the money through a federal stimulus measure to establish a Multidisciplinary Cancer Research Facility at Purdue. The addition will house investigators from the National Cancer Institute-designated Purdue University Center for Cancer Research to work on innovative animal models of disease, development of new therapeutics and in-vivo animal imaging.

Football Organization Relocates to Indianapolis USA Football, football’s national governing body on youth and amateur levels and the official youth football development partner of the NFL, its 32 teams and the NFL Players Association, will relocate its national office from suburban Washington, D.C., to Indiana’s state capital in August 2010.

Tens of thousands of youth football coaches, players, league commissioners and game officials who reside in all 50 states are USA Football members - continued on pg 16

GMOLF, JO26,UTING 2010 NWIBRT

A N N U A L

ONDAY ULY SAND CREEK COUNTRY CLUB C H EST ER TO N • N O O N S H OTG U N S TAR T

University Gets Nearly $15 Million for Expansion Purdue has received $14.9 million in funding from the National Institutes of Health to expand Discovery Park’s Bindley Bioscience Center in order to grow its cancer and life sciences research.

Planning and project design for the 29,000-square-foot addition on the south side of the existing building is already under way. About 165 jobs will be created during construction, which is expected to begin in August 2011. Completion is tentatively set for April 2013.

Thirty to 40 new permanent positions will be created to direct and carry out federally funded research activities at the facility, which will be designed to achieve silver level Leadership in Energy and Environmental Design (LEED) certification.

The NIH’s National Center for Research www.buildingindiananews.com

$130 MEMBERS • $160 NON-MEMBERS Includes: 18 holes of golf with cart • Lunch, Dinner, Cocktails & Prizes • Access to Sand Creek amenities including a Par 3 course, resort-style pool, fitness center and tennis complex Not a golfer? Don’t miss the networking, join us for dinner & cocktails.

$40 MEMBERS • $60 NON-MEMBERS FOR MORE INFORMATION, CALL (219) 226-0300 w w w. b u i l d i n g i n d i a n a n e w s. c o m 15

BUSINESS BUZZ

cilities, airports and private residences. The technology developer plans to invest $1.1 million to lease additional space at its current 10,000 square-foot Exit Five Parkway facility in Fishers.

The Indiana Economic Development Corporation offered Exacq Technologies, Inc. up to $650,000 in performance-based tax credits and up to $7,500 in training grants based on the company’s job creation plans. The town of Fishers will consider additional property tax abatements.

BUSINESS BUZZ

and comprise America’s youth football community. By the start of the 2010 football season, more than 50,000 youth football coaches will have received training through USA Football’s full-day coaching schools or its online coaching course to better teach the sport.

“Indianapolis is the ideal place for USA Football and we are excited to make it our home,” says Executive Director Scott Hallenbeck. “This community provides unmatched advantages from a business and a quality-of-life standpoint.”

USA Football also builds and manages America’s national teams for international competition. The United States’ delegate to the International Federation of American Football, USA Football is one of the world’s 59 national federations dedicated solely to the sport.

The independent non-profit today employs 20 full-time staff members. USA Football conducts more than 80 football training events annually nationwide, offering education for coaches, skill development for players and resources for youth league commissioners.

RV Maker to Expand Recreational vehicle maker Cruiser RV, LLC will expand its Howe facilities, a move which the company says will increase production efficiency and create an additional fifteen jobs, paying an average of $42,000 a year.

The LaGrange County Council has approved a ten-year tax abatement to facilitate the expansion.

The tax abatement was requested by Howe Group, LLC representing Cruiser RV, LLC and the LaGrange County Economic Development Corporation, and was approved unanimously. The abatement is for a period of ten years and is for a 10,200-square-foot building addition, valued at $220,000.

In addition to the new jobs created, an additional 86 jobs will be retained, bringing their total employment to at least 101 employees.

New Brew for Franklin Craft brewer TailGate Beer will expand its national operations from San Diego to Franklin, creating up to 150 new jobs over the next three years.

The company will occupy the existing 48,000-square-foot Klaisler building located in the Franklin Business Park and invest millions in machinery, equipment and energy efficiency upgrades to ready the facility for beer production, packaging and distribution.

Over time, the company plans to implement a number of environmentally friendly energy practices and seeks to achieve 100 percent self-sufficiency through partnerships with universities and the agriculture community.

The Indiana Economic Development Corporation offered TailGate Beer up to $1.85 million in performance-based tax credits and $100,000 in training grants based on the company’s job creation plans. The city of Franklin will consider additional incentives at the request of the Johnson County Development Corporation.

Cancer Care Excellence Recognized The American College of Surgeons has recognized Saint Anthony Memorial (Michigan City) the La Porte Regional Health System and Clark Memorial (Jeffersonville) as among the best in the nation when it comes to cancer care.

The three Indiana hospitals were recipients of the 2009 Commission on Cancer Outstanding Achievement Award for excellence in cancer care. A division of The American College of Surgeons, the Commission on Cancer was created to enhance the level of care offered to patients by recognizing programs that excel in providing quality, comprehensive care in a community setting.

Winning requires a rigorous on-site evaluation by a physician surveyor. The quality of care is graded based on its level of compliance with six standards that represent the full scope of cancer care within five program areas: cancer committee leadership, cancer data management, research, community outreach and quality improvement.

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Ivy Tech Snags Training Grant Ivy Tech Community College of Indiana has received a $4.7 million grant from the U.S. Department of Energy for smart grid workforce training programs that will help prepare the next generation of workers in the utility and electrical manufacturing industries.

As part of the grant, Ivy Tech will partner with Purdue University to develop the Crossroads Smart Grid Training Program (CSTP).

To ensure the institutions address central issues in the workforce-education gap in Indiana, the CSTP will draw on many long-standing partnerships with the energy sector in both the private and public domain.

These partners include the Energy Systems Network, an initiative of the Central Indiana Corporate Partnership focused on building Indiana’s clean technology industry. ESN will support the universities’ efforts to ensure the programs and curricula that emerge from the CSTP are aligned with existing and emerging industry needs, working with utilities, the developers and manufacturers of smart grid equipment and technologies, regulatory agencies and other stakeholders.

Ivy Tech will serve as the lead institution while both groups will develop and deliver modules, courses and certificates in various areas of Smart Grid technologies, including systems management and security, information technology and power systems engineering; and the training of skilled workers including line workers, technicians and mechanics.

Ivy Tech will offer associate degrees in these new fields, while Purdue will offer bachelor’s degree programs in both engineering and technology. It is estimated the funds will help train 1,500 students for the new smart grid programs.

Ivy Tech received the fourth-largest gift of the 54 grants awarded nationwide.

GEMMS develops software systems that allow for scheduling, clinical documentation, billing, insurance pre-certification and lab readings from a physician’s wireless tablet computer. The company has customers in 38 states and currently manages more than three million active patient charts in the United States.

The company currently employs 40 associates in Hamilton County and intends to begin hiring for additional professional positions immediately.

The Indiana Economic Development Corporation offered GEMMS, Inc. up to $1 million in performance-based tax credits and $52,000 in training grants based on the company’s job creation plans. The city of Carmel will provide additional incentives.

BUSINESS BUZZ

The 2009 Outstanding Achievement Award has been awarded to only 18 percent of the programs evaluated nationwide, or 82 of 432 surveyed.

Carmel Company Expands Health information technology company GEMMS, Inc., will expand its operations in Carmel, creating up to 69 new jobs by 2015.

The developer of electronic medical record systems for cardiology practices plans to invest up to $2.1 million to grow its headquarters and software development operations in Carmel. www.buildingindiananews.com

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BUSINESS BUZZ

Fanning Howey Moves to South Bend Fanning Howey, an architectural and engineering firm with nearly five decades of experience serving Indiana communities, has moved its offices from Michigan City to South Bend. The firm’s new address will be 130 S. Main Street, Suite 300, South Bend, Indiana 46601. More than 20 employees, including architects, engineers, and construction administrators, will be moving into the state-of-the-art facility in downtown South Bend.

Wabash Site Beats Out Pennsylvania, North Carolina for Trailer Manufacturer Expansion Novae Corporation will expand its trailer manufacturing operations in North Manchester, creating up to 85 new jobs by 2013.

Novae Corp., which manufactures both open and enclosed utility trailers,

commercial lawn equipment and agricultural and industrial material handling systems, will invest more than $3.4 million to purchase, renovate and equip an 88,000-square-foot facility to grow its Sure-Trac Enclosed trailer division.

The company, which markets its products throughout the northern United States and Canada, will occupy the North Manchester facility formerly owned by Dexter Axle.

The company chose North Manchester over potential sites in Pennsylvania and North Carolina.

The Indiana Economic Development Corporation offered Novae Corporation up to $570,000 in performance-based tax credits based on the company’s job creation plans.

Novae will receive local assistance from Wabash County, the town of North Manchester and the city of Wabash.

Indiana-China Connections Grow The Columbus Economic Development Board has opened a Trade Office in Shanghai, China, and the Indiana University Research Center for Chinese Politics and Business (RCCPB) says it will establish offices in the Chinese capital of Beijing later this year.

“Establishing this office and presence in China is an aggressive strategic move for Columbus,” stated Columbus EDB Executive Director Corey Carr. “It will definitely assist us in attracting Foreign Direct Investment and in expanding our network of friends and partners in China.”

“We have been traveling to China on trade and marketing trips to attract jobs and investment for eight years.” said Columbus Mayor Fred Armstrong. “This move by Columbus Economic Development solidifies our China strategy and will help communicate to our Chinese friends that Columbus is ‘open for business’ with regard to Chinese investment.”

Columbus is the first community of its size to establish a trade office in China.

Known for its international business culture, Columbus is home to 29 foreign companies from Japan, Germany, France, China, India, Switzerland, and Canada.

IU’s new office will be funded by a three-year, $250,000 grant from The Henry Luce Foundation, as well as additional support totaling about $450,000 from 15 academic and research centers at IU. RCCPB will be one of the first American universitybased research centers operating in China.

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urban and rural transit systems. Miller Trailways has provided reliable charter bus service in Indiana for more than 25 years, and also operates IndyGo Commuter Express (ICE) routes that connect downtown Indianapolis with suburbs of Carmel and Fishers. Greyhound is the largest North American provider of intercity bus transportation, serving 48 states and 10 Canadian provinces.

BUSINESS BUZZ

The Luce Foundation grant primarily will support the center’s Initiative on China and Global Governance, a research project leading to better understanding of the extent of China’s involvement in worldwide issues such as trade, finance, technology, competition policy, energy, the environment and health. It also will be used to increase engagement with governments, international organizations and industries based in China or active there.

IU has a lengthy history of international activities. For example, it currently has more than 15 agreements with Chinese institutions, including Peking University, Sun Yat-sen University, Tsinghua University and Zhejiang University. RCCPB will establish a formal home within one of China’s elite universities.

RCCPB’s facilities in China will be an additional resource for state efforts to bring investment to Indiana as well as new export markets for goods and services produced by Hoosiers. Several research associates in the center are studying Chinese foreign investment abroad and can provide advice about doing business in China.

Northeast Indiana Foundation Launches Business Retention, Expansion Program The Northeast Indiana Foundation (NIF) has introduced Northeast Indiana’s first regional business retention and expansion program, NE Insider.

This program will provide support and enhanced collaboration to the existing individual county programs.

The mission of NE Insider is to connect area businesses with the resourc- continued on pg 20

Bus Service Connects More than 30 Indiana Cities More than 30 Indiana communities now have a new public transportation option for connecting with other parts of the state, as well as across the country: the Hoosier Ride intercity bus service, a public-private partnership between Miller Trailways, the Indiana Department of Transportation and Greyhound Lines Inc. Since January, Hoosier Ride has expanded into five regional fixed routes that are timed to connect with existing Greyhound national service in Evansville; Indianapolis; Kalamazoo, MI; Louisville, KY, and South Bend. Hoosier Ride operates at least one trip daily in each direction using Miller Trailways’ fleet of charter buses. Scheduling information is available at www.hoosierride.com.

Hoosier Ride is partially funded with a $2 million Federal Rural Transit grant administered by the Indiana Department of Transportation (INDOT). Greyhound tickets purchased in conjunction with the Hoosier Ride service help finance the matching funds required under this Federal program.

Each year, the Indiana Department of Transportation (INDOT) administers more than $40 million in state funds and more than $40 million in federal funds that help offset operating expenditures for more than 60 www.buildingindiananews.com

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BUSINESS BUZZ

es and services they need to thrive. Services include workforce training grants, assistance with infrastructure improvements, zoning assistance and other resources. This program will further strengthen the local economic development organizations’ (LEDOs) ongoing efforts to build strong partnerships between businesses located right here in Northeast Indiana.

The information gathered from this program will be aggregated at the regional level to track employment, workforce development needs, growth trends, opportunities for expansion and more. This data will allow Northeast Indiana to be proactive about addressing the needs of companies through partnerships with WorkOne Northeast, the Indiana Economic Development Corporation, the Small Business Development Center, the Region IIIA and Northeast Indiana Regional Coordinating Council, area universities and utilities as well as local government partners.

Counties participating in the program include Adams, Allen, DeKalb, Huntington, LaGrange, Noble, Steuben, Wabash, Wells and Whitley. LEDOs will be proactively calling on companies within their respective counties to participate in the program. Businesses can also contact the LEDO within their respective county to schedule a visit. The visit will focus on the industry’s needs, not only to sustain their business but to help them grow. The end goal is to connect the company to existing services to promote growth and continued investment.

Stroke Care Program Receives Certification Munster’s Community Hospital’s stroke care program has earned the Gold Seal of Approval from The Joint Commission for Primary Stroke Centers.

Community Hospital was awarded this distinction after the Joint Commission conducted an on-site review of its stroke care program, treatment standards and guidelines, and preventive education

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Each year about 700,000 people experience a new or recurrent stroke, which is the nation’s third leading cause of death. Stroke is a leading cause of serious, long-term disability in the United States, with about 4.7 million stroke survivors alive today.

Community Hospital’s Stroke Center of Excellence works to spread awareness of stroke symptoms and prevention, and to diagnose and treat stroke patients as quickly as possible. The center, which involves the services of Nursing, Radiology, Laboratory, Pharmacy, Emergency Medical Services and Rehabilitation, uses a multi-disciplinary approach to stroke management covering everything from stroke prevention and diagnosis to acute care and rehabilitation.

Clarian to Become Indiana University Health In order to more clearly define its mission and statewide focus, Clarian Health will change its name to Indiana University Health early next year, the company announced in May. The new name “will better identify Clarian’s unique brand of nationally recognized health care, reinforce its partnership with Indiana University and the IU School of Medicine, and better reflect the breadth of its mission.”

The change will not impact the existing corporate structure of the organization.

Indiana University Health will remain an independent, non-profit health system with the Methodist Church and Indiana University Board of Trustees serving as corporate board members, and will retain the same board of directors. Dan Evans will continue to serve as the system’s president and chief executive officer.

Related elements, including identity and naming architecture, will be announced and fully unveiled first to staff, and then to the general public in early 2011.

Heartland Expanding in Elkhart Heartland Recreational Vehicles LLC, a manufacturer of RVs and travel trailers, announced today that it will expand its operations in Elkhart, creating up to 265 new jobs by 2013.

The company, which manufactures fifth wheel, lightweight and extended stay RVs will invest more than $2.6 million to purchase 20

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BUSINESS BUZZ

and equip a 125,000-square-foot manufacturing facility. Heartland announced in February that it has purchased the remaining trademarks of the towable brands of Fleetwood Enterprises Inc., which filed for bankruptcy protection in 2009.

Heartland Recreational Vehicles, which employs more than 900 associates across North Central Indiana, plans to begin hiring additional manufacturing and supervisory associates as the new product lines are phased in. The acquisition of the former Fleetwood brands will allow Heartland to expand into markets in the western United States. “Our ability to gain ground in a down market has positioned Heartland to make tremendous market share gains,” says Brian Brady, President and CEO. “This is shaping up to be the best year in our history.”

The Indiana Economic Development Corporation offered Heartland RV up to $885,000 in performance-based tax credits based on the company’s job creation plans. The city of Elkhart will provide additional property tax abatements at the request of the Economic Development Corporation of Elkhart County.

Wire Manufacturer Coming to Scottsburg TOKUSEN U.S.A. has announced plans to establish a wire manufacturing plant in Scottsburg, creating up to 134 new jobs by 2012.

The company, which manufactures a variety of steel wire products, will purchase and equip a 300,000-square-foot facility to manufacture sawing wire. The wire will be used to slice silicon ingots for the solar energy industry.

TOKUSEN U.S.A., Inc., which employs more than 300 associates in Conway, AR, plans to begin hiring manufacturing, supervisory and clerical associates immediately in preparation for the commencement of production activities scheduled for August.

The TOKUSEN group, based in Ono City, Japan, is a global supplier of specialty steel wire. Annual sales of steel cord and saw wire from its plant in Arkansas are in excess of $80 million. The company’s customers include global automobile tire manufacturers Michelin, Continental, Yokohama, Toyo, Bridgestone and Cooper in addition to many sawing wire customers.

The Indiana Economic Development Corporation offered TOKUSEN up to $1.1 million in performance-based tax credits and up to $75,000 in training grants based on the company’s job creation plans. The city of Scottsburg will provide additional property tax abatements.

Auto Maker Plans Expansion General Motors, LLC plans to expand its Bedford manufacturing operations, adding 245 jobs by 2013.

GM Powertrain Bedford, one of the world’s largest aluminum die casting facilities, currently manufactures NorthStar engine blocks, and four- and six-speed transmissions. The automaker plans to invest $111 million to add a semi-permanent mold cylinder head casting line for small block engines.

The company currently employs more than 350 associates in Bedford.

The Indiana Economic Development Corporation offered - continued on pg 22 www.buildingindiananews.com

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BUSINESS BUZZ

General Motors, LLC up to $2.5 million in performance-based tax credits. The city of Bedford, with the support of the Lawrence County Economic Growth Council, approved an additional tax abatement for the new manufacturing equipment required to produce the mold head castings.

In 2006 and 2007, GM invested $114 million in its Bedford facility to produce transmission cases and converter housings for its fuel-efficient, six-speed transmissions used in various models including the Chevrolet Corvette, Cadillac XLR, Chevy Malibu and Buick Enclave. Last year, GM announced it would add capacity to its Fort Wayne and Marion plants.

Indiana Gets $10 Million in Federal Energy Efficiency Funds Indianapolis and Lafayette will share in $10 million in federal stimulus money aimed at “ramping up” energy efficiency building retrofits.

Overall, 25 communities nationwide will receive up to $452 million in Recovery Act funding. Indiana has been selected to receive $10 million under the Department of Energy’s Retrofit Ramp-Up initiative. These projects will bring together communities, governments, private sector companies and nonprofit organizations to implement pioneering and innovative programs for concentrated and broad-based retrofits of neighborhoods and towns – and eventually entire states.

These partnerships will support large-scale retrofits and

make energy efficiency accessible to hundreds of thousands of homeowners and businesses. The models created through this program are expected to save households and businesses about a $100 million annually in utility bills, while leveraging private sector resources to create what funding recipients estimate at about 30,000 jobs across the country during the next three years.

The Indianapolis Retrofit Ramp-up Project aims to create sustainable neighborhood-scale energy efficiency pilot projects in two urban neighborhoods – Indianapolis and Lafayette. The project will transform a 470 square block neighborhood in the heart of Indianapolis to a more energy efficient and economically sustainable community by retrofitting a diverse range of buildings in the region including residential, industrial and commercial units, schools and nonprofits within a large neighborhood in Indianapolis. The project will provide for investments in energy efficiency education and outreach among an existing network of community support organizations.

Southern Indiana Initiative Aimed at New Businesses A new initiative has been launched in Southern Indiana by the Region 9 Workforce Board to help individuals looking to start or grow their own small business. SoINbiz, short for Southern Indiana Business, is a universal front door for entrepreneurs to connect them to organizations, programs, and

At SSS Fabrication We Are Building Our Future With Steel Commercial, Industrial, & Architectural Steelwork 22

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BUSINESS BUZZ

people to help their small businesses succeed.

“There are over 250 organizations and programs assisting small businesses and entrepreneurs in Indiana. But there was no one place to collect and connect all of the dots until now,” says Jack Hess, one of the SoINbiz Project Coordinators. “The sole mission of SoInbiz is to connect the dots for entrepreneurs and small businesses leading them to local small business ‘champs’ and service providers who are experienced in what it takes to start and grow a business.”

Funded by a grant through the Indiana Office of Community and Rural Affairs, this ten-county initiative offers both online (www.soinbiz.com) and personal assistance. SoINbiz offers these services to residents of Bartholomew, Dearborn, Decatur, Franklin, Jackson, Jefferson, Jennings, Ohio, Ripley, and Switzerland counties.

Insurance Group Announces Safety Award Winners Robert Weed Plywood, Aero Metals, Hartson Kennedy Cabinet Company, Landscape Forms, The Ross Group and Weigand Construction were the winners of the 2010 Gibson Safety Award, presented annually by Gibson Insurance Group, a multi-line insurance broker and risk management services firm with offices in Indianapolis, South Bend, and Plymouth.

Award winners were companies who met stringent criteria in the areas of safety records, loss control programs, the prevention of accidents in the workplace, and a commitment to strive toward a safe work environment.

The recipients consistently demonstrate a pro-active attitude in the prevention of workplace injuries and have a formalized and active safety program to protect and promote the safe behavior, health and well being of their employees.

Over 3,400 companies were eligible for the award. Criteria for selection was based on the quality of active safety programs, status with insurance carrier, experience modification factor, OSHA compliance, supervisory accountability programs, return to work programs, and accident investigation protocol.

Door Opens Wider in Walkerton Modern Door Corporation, a subsidiary of Wisconsin-based Plyco Corporation, plans to expand its manufacturing operations in Walkerton, creating 20 jobs by 2013.

The company specializes in steel, aluminum and fiberglass walk doors and ventilation products. Its expansion calls for a $770,000 investment in machinery, equipment and building improvements to prepare for production of a new line of doors for the post frame and light commercial markets.

Modern Door Corporation currently manufactures and distributes its products from a 155,000 square-foot facility in Walkerton where it employs approximately 100 associates.

The Indiana Economic Development Corporation offered Modern Door Corporation up to $45,000 in performance-based tax credits. The town of Walkerton was considering additional economic assistance.

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o Laciak Joins Laciak Brian Laciak has joined the Laciak Accountancy Group (Schererville) CPA team as Accounting Manager. His past work experience include Senior Auditor at Deloitte & Touche LLP and Senior Product Controller at UBS Alternative and Quantitative Investments, both in Chicago.

Falk-PLI Adds Corbett Richard J. Corbett has joined Falk-PLI Engineering and Surveying (Portage) as Director of Engineering. Corbett’s responsibilities include managing and expanding Falk-PLI’s engineering services.

Corbett has served as Superintendent for Bethlehem Steel Corporation at the Burns Harbor Division. Most recently, Corbett served as construction project manager for Boyd Gaming Corporation.

iE

APT Welcomes Hitchcock Physical therapist Bill Hitchcock has joined Advanced Physical Therapy (Indianapolis). He has more than 25 years experience as a physical therapy clinician and entrepreneur. A skilled orthopaedic clinician, he has a special interest in the assessment and treatment of back pain.

IUN Names New Chancellor William Lowe was named Chancellor of Indiana University Northwest (Gary). Previously, Lowe was Provost and Vice President for Academic Affairs at Metropolitan State University in St. Paul, MN. Lowe takes over for retiring IUN Chancellor Bruce Bergland.

Indiana ACHE Elects Regent Michael J. O’Neil, Senior Vice President and Chief Operating Officer, Memorial Health System, was elected Regent for the state of Indiana by the American College of Healthcare Executives (ACHE).

O’Neil will represent all ACHE members in Indiana.

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Law Firm Hires Associate Andrew Harwel has joined Bose McKinney & Evans LLP (Indianapolis) as an Associate. Harwel is a member of the firm’s Business Services Group. He has experience working in the Chicago office of a large international law firm, representing clients in the manufacturing, insurance, banking, gaming and real estate industries.

McConnell Takes Development Post R.J. McConnell has been elected Chairman of the Johnson County Development Corporation. The Johnson County Development Corporation works to retain existing business and industry; maintain and increase the overall quality of life; and foster quality job creation and tax base development in Johnson County. McConnell is a partner at Bose McKinney & Evans.

Trans-United Names Driver of the Year Harold Weiland was voted Trans-United’s 2009 Driver of the Year. Harold has 47 years experience in the trucking industry, and has

been with Burns Harbor-based company for 20 years. To qualify, drivers must attend at least two safety meetings and be with the company for a minimum of one calendar year, with no claims or accidents.

Once they qualify, Trans-United employees vote for their favorite driver.

PEFCU Hires IT Expert Purdue Employees Federal Credit Union (PEFCU) has brought Monte Bates on board as Vice President of Information Technology. Bates will oversee daily operations of the technology team and lead strategic planning and new product development. He has 13 years of experience in the manufacturing, sales, technology and healthcare industries.

Munger to Helm Bright Bright Automotive (Anderson) has named company Chairman Reuben Munger CEO as the company explores strategic partnerships that will allow it to move into production. John E. Waters, who served as CEO and President since founding the company in 2008, will continue in a leadership role, serving as Vice Chairman.

Munger is a seasoned investment professional, and Founder and Managing Partner of Vision Ridge Partners.

Comcast Taps Weber for Indianapolis Comcast has appointed Maria Weber Vice President of Public Relations and Community Affairs for its Indianapolis Region.

Weber has nearly two decades of corporate communications experience both locally and abroad, including 13 years with www.buildingindiananews.com

Rolls-Royce, the global power systems company. Most recently, she worked as Director of Corporate Communications for Rolls-Royce in Indianapolis.

Marketing Pros Join Indy Speedway

Veteran executives Mark Dill and James Newton have joined the Indianapolis Motor Speedway in senior positions in marketing and public relations. Dill was named Vice President of Marketing and Public Relations while Newton was named Director of Marketing. Dill served in a variety of management and executive roles in marketing and communications at Nortel Networks, Blue Cross Blue

Shield, Corvis Corporation and AT&T since 1977. Newton comes to IMS after a career in marketing at Red Bull and after a successful tenure as a small business owner.

Wilhite to Head Up New Division Lee Companies (Gary) has established a full-service preengineered steel structure division and became an authorized dealer for Varco Pruden Buildings. To lead the endeavor, Lee has recruited Douglas W. Wilhite as its Pre-Engineered Building Manager. Wilhite brings 40 years of experience in pre-engineered buildings, with the majority of that experience in the Varco Pruden product line.

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5/20/10 9:31:03 AM

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photo feature The Midwest Smoke Out The Venue at Horseshoe Casino in Hammond was smokin’ hot April 22 for the debut of The Midwest Smoke Out. More than 1,500 were in attendance to sample the best in cigars, fine spirits and dining, and luxury goods. More than a dozen cigar companies were on hand to distribute free sticks, a value that more than equaled the price of attendance. Planning for the Second Annual Midwest Smoke Out is already underway. Visit www.midwestsmokeout.com for updates, deals and information on the 2011 event.

Enjoying The Midwest Smoke Out were (l. to r.) Pat Vassar of Highland, Ed Saxsma of Griffith, and Tom Van Prooyen of St. John.

2010 MIDWEST SMOKE OUT VENDOR LIST • AIA Custom Humidors • Arganese Cigars • B & E Marine • Bar Louie • Boston’s Gourmet Pizza • Budweiser • Calumet Harley Davidson • Camacho Cigars • CAO Cigars • Carlos Torano Cigars • Ciao Bella Ristorante • Cigar Rights Association • Coors • Déjà Vu • Diageo • Diversified Marketing • Doublegun Cigars • Fonseca Cigars • Fox Valley Lamborghini • Gran Habano Cigars • Great Lakes Catering • Heineken • Honduras Caribbean Cigars • Hooters • In Vie Wines • Intergal • James & Sons Jewelers • La Gloria Cigars 26

• Los Blancos Cigars • Maker’s Mark • Miller • Moet Hennessy • Northcoast, New Holland & Uppland Brewing • NWI Entertainer Magazine • Oakbrook Cigars • Patrón • Peguero Hand Rolled Cigars • Perdomo Cigars • Pernod Ricard • Pinker Smokin’ Lounge • Real Men Clothing • Red Bull • Remy Contreau • Ron Kittle Indiana Sports Charities • Room 101 Cigars • Scarface Cigars • Schepel Cadillac • Shoreline Brewery • Siglo Cigars • The Little Guys • The Tilted Kilt • Three Floyds Brew Pub • UpperCut Cigars • VegaFina Cigars • Windy City Pro Wrestling • Xikar Cigars

Local restaurateurs also took advantage of The Midwest Smoke Out to sample their cuisine. Among those from Schererville’s Ciao Bella were Executive Chef Randy Berg (left), Owner Joe Scalzo (center), Ulises Gomez (back), Laurie Farver and Marketing Manager Ryan Hoskins Other eateries participating included the Tilted Kilt, Bar Louie and Hooters.

(l. to r.) Diversified Marketing Strategies’ Director of Marketing Chrischelle Schmidt (cigar) and Media Director Kristin Jurczak take a few moments to enjoy the evening they worked so hard to put together. With them are Joe Buczek (left) and Jimmy Persino (right). www.buildingindiananews.com

The scene at The Venue at Horseshoe Casino during The Midwest Smoke Out. With the first round of the NFL Draft rolling along overhead, attendees mingled, networked, sipped, noshed, gamed – and of course, smoked their way through an evening of pure luxury.

Attendees received more than a dozen fine cigars from some the industry’s top names at The Midwest Smoke Out.

(l. to r.) Don Biesen, CEO of Braman Insurance Services, Joe Delaurentis , and Randy Vale, President of Braman Insurance Services.

Among local executives who could be found at The Midwest Smoke Out were (l. to r.) Working Well’s Tim Ross, his wife Cindy and Jim Arendas of the Construction Advancement Foundation. www.buildingindiananews.com

In addition to cigars, The Midwest Smoke Out featured fine spirits such as Remy Cointreau (pictured), Maker’s Mark, Patron and local favorite microbrewer Three Floyds Pub.

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STATE OF THE INDUSTRY

Classification Crackdown Federal and state authorities are cracking down on companies that misclassify employees as independent contractors.

T

By Dewey Pearman, Executive Director, Construction Advancement Foundation

he need to carefully draw distinction between employees and independent contractors is becoming more crucial. Congress and the Obama administration have budgeted $7 billion for the “Employment Tax Initiative.” The new initiative adds thousands of employment tax audits to the 60,000 audits conducted annually by the Internal Revenue Service. Additionally, the wage and hour divisions of many state labor departments are stepping up audits in an effort to find more tax revenue for cashstrapped state treasuries. What are federal and state agencies targeting in these audits?

Determining if employers are properly classifying workers as employees, and thereby paying all the appropriate state, federal and local tax obligations.

Stepped-up federal and state collection efforts have been triggered by an alarming increase in the misclassification practice.

The Government Accountability Office estimates that misclassification increased 25 percent between 2000 and 2005, and affects 7.4 percent of the workforce nationally, or approximately 10.3 million workers. Recent collection efforts demonstrate the magnitude of this problem.

• In Arkansas and Texas 30 drywall contractors were recently fined $500,000 for misclassifying 750 employees as independent contractors.

• In Illinois, five construction companies were fined $70,000 each and banned from bidding on public projects for four years.

• In New York, the owner of two contracting companies recently entered guilty pleas for paying millions in off-the-book wages and faces five years in jail and $637,000 in restitution to the IRS. • In Tennessee, the Labor Department’s Wage and Hour Division collected over $220 million for 341,000 misclassified workers in 2007.

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While abuses occur in many industries, I have cited cases in the construction industry for a reason – it’s an industry known for widespread classification abuse and so a prime target for collection efforts. In fact, the U.S. Department of Labor Fact Sheet on the issue of misclassification states, at the very top of the section entitled Typical Problems, “One of the most common problems is in the construction industry where contractors have so-called independent contractors, who in reality should be considered employees because they do not meet the tests for independence, as stated above.”

Unfair Advantage

For many business sectors, increased enforcement is unwelcome news. For those in construction, many will find governmental efforts to rein in “misclassification” of employees particularly disturbing. Others, who consistently labor under an unfair disadvantage when their competitors break the law, will welcome tougher enforcement.

When a contractor improperly classifies employees as independent contractors, that contractor gains a significant marketplace advantage over his law-abiding competitors. This competitive advantage amounts to approximately 30 percent of labor cost. This is possible because the contractor who breaks the law and misclassifies workers as independent contractors avoids paying numerous federal, state and local taxes, including social security, employment insurance and worker’s compensation.

Very often the “independent contractor” is paid off-the-books, and often in cash so that no federal, state or local income tax is paid on the wages.

There is little doubt that within the construction industry those who violate the law by misclassifying employees are predominately companies in the non-union sector. Union contractors obtain their skilled craftsman from the union halls, and union

business agents are nothing if not diligent in their efforts to ensure that signatory contractors only have union members on their job sites, and that all benefits are fully paid.

On the other hand, the non-union contractor hires off the street and has the opportunity to bring workers on as independent contractors instead of employees, even though these workers fit the IRS and Department of Labor definitions of employees. This is a common practice in the non-union sector and is the reason for the IRS commentary about the construction industry mentioned above.

It’s not just the law-abiding contractor who suffers when his competitor misclassifies workers. The improperly classified worker suffers by not receiving the benefits that would be due to them if they were properly classified. Government services are diminished when tax obligations are not paid.

Other taxpayers suffer when eventually the result taxing gap is shifted to them. The health care system suffers when a worker is injured and has no worker’s compensation coverage because they were improperly paid as an independent contractor.

In addition to the Employment Tax Initiative there are other steps the federal and state governments can take to correct this problem. First, there are two measures pending before Congress that should be enacted. S. 2882/H.R. 3408, The Taxpayer Responsibility Accountability Act of 2009, would amend the IRS code to require employers to have a genuinely reasonable basis for treating an individual as an independent contractor and would increase penalties for willful misclassification. S. 3254 / H.R. 5107, The Employee Misclassification Protection Act, would amend the Fair Labor Standards Act (FLSA) to make misclassification a violation of the FLSA. Second, the Indiana Department of Labor, Wage and Hour division should step up enforcement and collection efforts. www.buildingindiananews.com

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RULE OF LAW

Listen to

GINA

New legislation bars the use of genetic information in hiring decisions.

R

By Steven A. Johnson, Johnson, Rappa & Ivancevich, LLC

ecently, Lovemuffin and I were having a conversation over dinner. It was typical of most of our conversations: she was telling me about her day and I was thinking about other things. I’ve noticed over the last several decades that these dinnertime conversations have taken on a certain pattern. In an effort to stay connected, Lovemuffin shares with me all of the interesting things that have happened since the previous evening’s meal. She doesn’t ask much of me during our talks, and I’ll frequently chime in with a grunt or perhaps a nod (shakes of the head are rarely used, inasmuch as they invariably result in more explanation than I have the energy to generate).

Occasionally though, she’ll ask a question. Not one of those easy questions, like “How was your day?” where I can escape with a “fine.” Those are no problem.

I’m talking about a curveball question, the kind that requires thought and consideration, the kind that requires me to actually listen! And it’s those very moments that I realize that I have a problem: there is a small hole just inside my left ear that goes directly through the center of my head and, as luck would have it, connects with an identical hole just inside my right ear. The result of this nifty little pathway is that certain sounds can go in one ear and out the other completely unimpeded. And while some folks would consider this a defect, I consider it a model of sound processing. Whoosh! All gone!

As you might imagine, my little attribute is something of a source of consternation for Lovemuffin. And occasionally, Lovemuffin’s consternation turns to aggravation, which leads to more conversation (just louder), which seems to continue to travel straight through, from one ear to the other, as efficiently as ever, all of which causes me to wonder, however briefly, if I have a genetic defect.

Thanks to some fairly recent legislation, I’m 30

thrilled to report that not only do I not have a problem, but I’m federally protected!

So, for those of you who have a Lovemuffin of your own, and for those who may actually suffer from a genetic disorder or employ those who do, the Genetic Information Nondiscrimination Act may be of interest.

The Act, referred to as GINA, makes it illegal for an employer with fifteen or more employees to discriminate against employees or job applicants because of genetic information.

Having taken effect on November 21, 2009, the Act prohibits the use of genetic information in the making of an employment decision, limits those instances wherein employers can acquire genetic information, and prohibits the disclosure of genetic information. The foregoing provisions are enforced by the EEOC. Moreover, the Departments of Labor, Health and Human Services, and the Treasury are required to draft regulations pertaining to the use of genetic information with regard to health insurance. Most important is what is included within the definition of genetic information.

Information regarding any disease, disorder or condition of the applicant/employee or any member of his family is included, as is family medical history (sometimes used as a predictor of future illness). The logic is that genetic information is no indicator of an applicant/ employee’s ability to perform job functions.

Thus the list grows: age, race, sex, national origin, religion, disability and genetic information are prohibited bases for employment decisions. As with the others, genetic information is certain to generate significant litigation.

Because GINA has only recently gone into effect, and because charges of violation must be processed through the EEOC, there are no cases currently available to determine how the courts are dealing with the Act. Reported decisions are still several years away. www.buildingindiananews.com

As OSHA looks to strong-arm companies into creating a safer workplace, IOSHA works to hold the line.

E

By David Wellman

dwin Foulke, Jr., Partner with Atlanta-based Fisher & Phillips LLP and former head of the Occupational Safety and Health Administration (OSHA) under President George W. Bush sets the stage thusly: “If you win the election, you get to put in your people and your policies,” he says. “That’s just the way it is.”

In November 2008, Barack Obama won the election, and has done precisely that. Among the results has been a sea change at OSHA. Funding and personnel have grown, despite the economic crunch, and priorities have shifted away from cooperation with businesses and toward enforcement and heavy fines.

“The administration is putting its money where its mouth is,” Foulke says, referring to promises made on the campaign trail. “They are looking at enforcement and rulemaking, not compliance assistance. In 2011, OSHA is one of few agencies getting a budget increase, and they are also moving 35 compliance assistance specialists www.buildingindiananews.com

SAFETY ZONE

Scared Safe

over to enforcement.” Foulke predicts that within the next three budget cycles, all of OSHA’s compliance assistance specialists will be placed in enforcement roles, and that, on a Federal level, the Voluntary Protection Program (VPP) will cease to exist.

Worse – at least from a safety professional’s point of view – a good safety record may now actually work against you. “Under the new national emphasis program on recordkeeping, OSHA is focusing on low injury numbers in high hazard industries on the theory that they are not reporting injuries,” Foulke explains.

“So if you spent $1 million on a safety program and really drove down your numbers, you are more likely to get looked at if you are in one of the covered high hazard industries.”

And violations are going to be more expensive.

Foulke sees less willingness on OSHA’s part to reduce penalties based on things like good-faith efforts or prior history, as well as increased use of the incident-by-incident, or “egregious” citation approach, in which multiples of the same violation are treated individually. “For example, if you didn’t train 10 people, before those might be bundled into one citation for $70,000,” he explains. “Now, you get 10 citations for a total of $700,000.” This has been a primary driver of the increase in $100,000-plus penalties now being levied by OSHA. “In the Clinton and Bush years, they averaged about 95 to 115 a year,” Foulke says. “This year, they are on track to do potentially three times as many.”

Foulke also expects increased use of OSHA’s Enhanced Enforcement Program (EEP), which can be applied to repeat or “willful” violators. Under this standard, companies that want to resolve claims must take extra steps, such as providing their OSHA 300 logs or hiring safety consultants, and also have even fewer opportunities for reducing fines. Also, if a com-

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pany in the EEP has multiple facilities, then all its other locations will be placed on a priority inspection list.

The philosophy animating OSHA’s new priorities is one of fear.

“The idea is, if they have lots of fines and enforcement, they will scare companies into being safe,” Foulke says, adding that he’s skeptical of the approach. “I believe that people have to want to be safe,” he says.

What can companies do to minimize the impact of OSHA’s new approach? First of all, Foulke says that OSHA is looking for low-hanging fruit, like blocked exits and blocked aisles, that are simple to fix if companies take the time to look around.

Another tip: standard requirements for Personal Protective Equipment (PPEs) include a hazard analysis for PPEs. “Probably half the companies in the U.S. have not done this,” Foulke says. Likewise, employees are supposed to be educated and, if necessary, trained on evacuation and emergency response plans, even something as simple as operating a fire extinguisher.

However, Foulke says the No. 1 thing companies can do is to make sure that their safety records, especially their OSHA 300 logs, are in order. Companies need to have the last five years’ OSHA 300 logs spotless, because recordkeeping is a point of emphasis for the agency. In fact, under a new protocol, OSHA inspectors will actually be going through the first report of injuries or OSHA 301 forms to build their own OSHA 300 logs for a company, which will then be compared to the ones the company maintained.

For now, Indiana companies have an ally in the Indiana Occupational Safety and Health Administration (IOSHA). “We are doing things differently in Indiana,” declares Jeffry Carter, Deputy Commissioner of the Indiana Department of Labor. “The big question is whether state plan will be allowed this continuing autonomy.”

Carter isn’t buying the logic behind OSHA’s new adversarial focus – a fact he admits hasn’t made him many friends in D.C. “We have not seen widespread evidence that companies are not being honest on their records,” he says. “We do see OSHA form errors, but we do not see widespread cheating on records.” IOSHA did agree to conduct about a dozen of the in-depth OSHA 300 log reviews in 2010, which Carter laments will take up time that could be better spent elsewhere.

“We think voluntary compliance best serves employees in Indiana,” he says, pointing to the state’s historic low injury and illness rates in 2009. While he agrees that the VPP program at the federal level is “in trouble,” Carter says IOSHA is committed to continuing and even expanding the program in Indiana. “There are 57 companies in the program now and 30 in the pipeline,” he notes.

This shouldn’t give the impression that IOSHA is going easy on employers. “The number of inspections in Indiana is up 90 percent versus three years ago,” he points out. IOSHA has also put into place an expedited search warrant process, so if a business refuses an inspection, they can have a warrant within two hours in many Indiana counties.

This came into play recently in northern Indiana, he says, where a company denied inspectors entrance, and tried to keep them out even after they returned with a warrant and police. When they finally did get in, inspectors found so many problems “that their pens were running out of ink,” Carter says. “Fortunately, we don’t run into too many companies like that any more.”

IOSHA has also begun cross-referencing with inspections done in other federal jurisdictions. If companies operating in Indiana are racking up violations elsewhere, their Indiana facilities will come under increased scrutiny. On the other hand, and again contrary to opinion on the Federal level, Carter says IOSHA doesn’t see a great need to scrutinize companies with good safety record. “We don’t think all companies are the same,” he says. “There are plenty of others that need our attention. Our overriding interest is employee safety.”

32

www.buildingindiananews.com

THE BOTTOM LINE

The Next

Wave

Indiana’s community banks are ripe for consolidation.

I

By David Wellman

ndiana banks were not immune to the effects of the real estatefueled implosion that blew the U.S. economy to pieces in 2008, but they were able to weather the storm better than institutions in many other parts of the country. Profits, however, have plunged versus just a few years ago, and financial reform legislation currently under consideration in Washington, D.C., threatens to saddle stressed institutions with new costs. Combined with broader trends in the financial industry, all signs point to an increase in bank consolidation in Indiana in the near future.

To date, just a single Indiana bank, the Irwin Union Bank and Trust Company in Columbus, has been shut down by the Federal Deposit Insurance Corporation (FDIC) since 2008. This compares a doz-

en in Michigan and Ohio combined, and nearly 30 in Illinois, from 2008 through this past March. But while Indiana banks hung on, they didn’t escape unscathed: net income at FDIC-insured institutions fell from almost half a billion dollars in 2007 to a loss of $73 million in 2008, before edging back into the black by the end of last year.

All things considers, “we are doing pretty well,” says S. Joe DeHavern, President and CEO of the Indiana Bankers Association (Indianapolis). “Twenty-one percent of banks in Indiana lost money last year. Nationwide, the average was 29 percent.” While that might sound a bit like cold comfort, DeHavern adds that most of the banks that posted losses did so because they were putting money into reserves against future nonperforming loans, effec2009 DEPOSIT MARKET SHARE

REGIONAL ROUNDUP

Southern Indiana Northwest Indiana Northeast Indiana Indianapolis MSA

44 42 35 19

BRANCH BOON

Super Community Banks

COMMUNITY ASSETS (billions) BANKS $24.8 $15.6 $20.6 $6.1

Source: Capital Insight

DEPOSITS (billions) $18.7 $12.2 $15.8 $4.9

Indiana bank branches 2004 vs. 2009

17% Community Banks

14% 18%

tively taking the hit now for loans likely to go bad in the future. “Most were positive about 2010, or at least cautiously optimistic,” he says.

The state’s relatively good fortune can be attributed to the fact that Indiana was not a big participant in the real estate bubble. Eliot Stark, Managing Director of Chicago-based Capital Insight, an investment bank and consultancy specializing in community banks with up to $3 billion of assets, notes that the wave of Windy City bank collapses can be pinned on the bursting of a commercial real estate and condominium bubble. “Indiana, like Michigan, Ohio and Wisconsin, didn’t experience that boom, so there wasn’t as much air in the valuation of properties,” he says.

For example, the median home value in Indiana was a little more than $108,000

50%

Mega Banks

Mega Banks Super Community Banks Community Banks Small Community Banks TOTAL

2004 820 228 281 449 1,778

2009 1,021 445 340 541 2,347

INCREASE 201 217 59 92

Source: Capital Insight, 2009 data as of 9/30/09

Small Community Banks Source: Capital Insight

www.buildingindiananews.com

33

in 2009 which was up, but not outrageously so, from the median $94,300 in 2000.

Still, the economic crisis weakened a number of smaller Indiana banks to the point where Stark believes it will be difficult for them to extricate themselves, especially given projections that through at least 2014, the state’s population is projected to grow at a slower rate than the national average. “So I expect that a number of community banks will take advantage of that situation through consolidation,” he says.

Also factoring into the consolidation equation is federal finan-

INDIANA BANKING SNAPSHOT 2007-2009 No. of FDIC-insured Institutions Total Employees (full-time equivalent) Net Income

2007 2008 158 162 18,416 19,229 $499,000,000 ($73,000,000)

2009 148 17,578 $5,000,000

Source: FDIC

DEPOSIT MARKET OVERVIEW - TOP 25 MARKET SHARE LEADERS - 2009 NAME

5-YEAR CAGR

JP Morgan Chase & Company PNC Financial Services Group Fifth Third Bancorp Old National Bancorp 1st Source Corp First Merchants Corp First Financial Bancorp KeyCorp Regions Financial Corp Huntington Bancshares, Inc Bank of Montreal Marshall & Ilsley Corp MainSource Financial Group, Inc Lakeland Financial Corp First Bancshares, Inc Wells Fargo & Company Star Financial Group, Inc Integra Bank Corp First Financial Corp German American Bancorp MutualFirst Financial, Inc National Bank of Indianapolis Horizon Bancorp Indiana Community Bancorp First Midwest Bancorp, Inc

2.06 1.80 7.66 -0.84 5.60 4.89 -1.86 14.24 6.59 15.02 2.84 N/A 2.57 11.15 9.09 2.24 8.84 18.65 1.41 6.40 2.79 7.60 3.70 5.00 -1.22

DEPOSITS (BILLIONS) $12,013,529 $8,835,536 $6,865,294 $4,344,494 $3,454,551 $3,133,598 $2,981,580 $2,933,611 $2,407,724 $1,924,337 $1,857,138 $1,762,237 $1,757,225 $1,735,961 $1,734,838 $1,696,814 $1,344,321 $1,317,157 $1,315,752 $1,015,751 $1,004,707 $987,799 $810,594 $785,654 $772,455

MARKET SHARE

NUMBER OF BRANCHES

DEPOSITS PER BRANCHES

12.76 9.38 7.29 4.61 3.67 3.33 3.17 3.12 2.56 2.04 1.97 1.87 1.87 1.84 1.84 1.80 1.43 1.40 1.40 1.08 1.07 1.05 0.86 0.83 0.82

183 171 139 146 68 77 46 64 63 51 50 32 68 44 42 35 49 29 37 30 33 11 17 19 20

$65,648 $51,670 $49,391 $29,757 $50,802 $40,696 $64,817 $45,838 $38,218 $37,732 $37,143 $55,070 $25,842 $39,454 $41,306 $48,480 $29,224 $45,419 $35,561 $33,858 $30,446 $89,800 $47,682 $41,350 $38,623

Source: Capital Insight

cial reform legislation, and specifically the proposed Consumer Financial Protection Agency (CPFA), which would serve as a central regulatory agency for financial products. “It will be almost impossible for smaller banks to comply with all the regulations that will come out of a 1,300-page bill,” DeHavern says. “I talk to small bankers all the time, and many tell me that they are one major new regulation away from sticking a ‘for sale’ sign up.”

Stark agrees, saying that increased regulation in recent decades has “pushed the breakeven point. Bankers used to think that if you had $1 billion in assets, you could be efficient. Now they are saying you have to be closer to $2 billion in size to deal with all the regulations and risk management issues.”

Some bank consolidation in Indiana, Stark argues, would be 34

www.buildingindiananews.com

REGIONAL BANK FAILURES Illinois

GIVING BACK

28

Ohio

6

Michigan

6

Kentucky

1

Indiana

1 0

5

10

15

20

25

Community outreach by Indiana banks in 2009

Most of the Indiana banks that posted losses did so because they were putting money into reserves against future nonperforming loans, effectively taking the hit now for loans likely to go bad in the future.

• Community groups assisted • Bank associates helped with bank-sponsored community causes • Man-hours of service donated by bank associates to community causes • Dollars raised (through car washes, staff “dress down” days, etc.) for community causes • Dollars donated by banks to community causes • Dollars donated by banks to scholarship opportunities • Dollars donated by banks through in-kind contributions to community causes

7,503 5,161 227,671 $313,451 $5,003,885 $332,937 $232,595

Source: IBA membership survey January 2010.

Respondents represented approximately 35 percent of total membership.

30

Source: FDIC, 2008 – March, 2010

good for both consumers and businesses, because previous mergers and acquisitions have left a gap in the market. “In the U.S., there are 8,200 banks in 7,600 holding companies, and 5,000 of them have less than $300 million in assets,” he notes.

“Just 21 are over $100 billion in size, and 73 over $10 billion, so less than 100 banks hold the majority of assets.”

As they have ballooned in size, the megabanks have understandably focused their attention on mega-clients; a $10 mil-

lion loan to a small or mid-sized business is viewed as pocket change. At the same time, many small banks either couldn’t loan that much money or would risk the bank’s survival if they did so. “There’s a big hole for three-to-five-million-dollar-asset regional banks,” Stark says. “Consolidation gets you back to a nice handful of home-grown banks who can make a $10 million loan without risking the bank, but are still small enough to make those $1 million to $3 million loans.”

More of these kind of banks could benefit would-be commercial and industrial borrowers. “We hear about a lot of trouble with loans for commercial and industrial firms that need to finance equipment or expansions,” Stark says. Small banks aren’t geared up for the size of loans they want, but those loans aren’t big enough for megabanks to bother with. “That’s why community banks have become more real estateoriented, and that’s why they’ll go after small banks,” he says.

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35

BEING PRODUCTIVE

If you want to win in business, you have to keep score.

But you have to figure out what counts as a point first.

Running Up the Score G

By Jay Arthur

et a group of businessmen together and the discussion invariably turns to sports. It doesn’t matter what season it is – baseball, basketball, football, hockey, soccer – someone can rattle off statistics about every player and every game. During a recent cab ride in Chicago, my driver wore a purple jersey. Asked if those were Denver Broncos colors, he said, “absolutely.” My response was, “thanks for sending Jay Cutler to the Bears.” And then he spent the entire trip to airport sharing stories about players and statistics for the Denver Broncos, Rockies and Nuggets teams.

But while many of these businessmen (and women) can tell you about the runs, hits and errors of their favorite team, few can recite important statistics about their own company.

• Marketing effectiveness (e.g., cost per new customer, lost revenue due to marketing mistakes) • Sales effectiveness (e.g., average sale, repeat sales, etc.)

• Purchasing errors (e.g., incorrect quantities or items) • Order errors (e.g., incorrect quantities or items) • Invoicing errors (e.g., incorrect quantities, items, taxes, etc.)

• Payment errors (e.g., misapplied payments) • Missed commitments (e.g., late deliveries) • Credits and adjustments for errors Delays and defects (i.e., errors) cost a typical business $25 to $40 out of every $100 spent. Find and fix those mistakes and the profit falls straight to the bottom line.

Runs, Hits and Errors

Invisible Measurements

To run a business effectively, you have to keep score. Most companies know who their top salespeople are, but few understand what makes them the best. What are the equivalents of runs, hits and errors? Is the business measuring not just EBITDA, but also: 36

Some businesses are so focused on home runs that they overlook other important metrics. In baseball, the Oakland A’s found that a walk is as good as a hit, since either way, the player gets on base and creates a scoring opportunity. By using existing and overlooked statistics like walks, the A’s were

able to find and field excellent teams for a fraction of the cost of most franchises. They found that the gut feel of old-time scouts wasn’t nearly as useful as a handful of good statistics.

Invariably, the same business owners and managers that have an encyclopedic knowledge of sports statistics often rely on their “gut feel” to make business decisions.

Like old-time scouts, they’re missing out on an important source of information – existing measurements of success and error. Very probably, important stats are going unmeasured.

For example, in football, everyone seems to love the last-minute “Hail Mary” pass that wins the game. In the world of IT and software development, it’s no different.

The programmers who fiddle around most of the time and then work heroic hours at the end to deliver an unfinished and buggy product garner most of the attention. Meanwhile, the programmers who work steadily during normal working hours and deliver quality enhancements on time are often overlooked when it comes time for bonuses.

If a business wants consistent performance, it needs to reward consistent performance. If a business rewards fire-fighting www.buildingindiananews.com

and last-minute heroics, it will get more crises to handle. Businesses get what they reward.

How effective is youre reward system? Is it rewarding and reinforcing the right behaviors, like being on time with quality, or the wrong behaviors (“Hail Mary’s”)?

What about turnover? Are you losing the best and the brightest, or the lowest and the slowest?

What about hiring? Are you hiring the right kind of people? Do they stay long enough to return the investment?

Get the idea?

How to Cut 10 Strokes off Your Golf Score

financial and performance improvements.

The Scorecard

Most businesses measure far too many things and rarely take time to improve any of them. What to do?

1. Stop measuring anything that can’t be used to improve performance (e.g., how many hot dogs are sold at a game). Too many measurements dilute the improvement focus.

2. Start measuring anything that needs to be measured to improve performance.

What are the hidden or overlooked measures that truly predict performance and customer satisfaction?

3. Start using measurements to improve performance. Start with the worst first.

Performance problems aren’t spread over the business like butter on bread; they cluster in a few key areas. Find and fix them. Employees can tell which measurements are getting the attention.

Unused measurements are easily ignored.

4. Continue to adapt and improve the score, and use the results to improve.

If you want to win the great game of business, you’ve got to keep score and focus to improve the score. Otherwise, you’ll always be a duffer, not a pro.

Many executives and employees play golf.

Ask any of them what it would take to cut 10 strokes off their game and they’ll probably snort and say that they’d have to quit working and practice full time. They often spend hours at the driving range and only minutes on the putting, chipping or pitching greens. A long, arching drive that lands in the fairway is a thing of beauty. A missed short putt is a thing of horror.

Prevailing wisdom says that 80 percent of shots lost to par are within 100 yards of the green. To dramatically improve a golf game, golfers have to start keeping track of not just the score, but shots lost to par. Everyone hates keeping track of errors, but if they want to get better, they simply get over it. It’s up to the individual golfer to decide where they lose shots to par: • Drive (left or right) • Irons (left, right, long or short) • Chipping (left, right, long or short) • Putting (left, right, long or short; too many three putts?)

Keeping track of this information for a couple of rounds will reveal where to focus practice for immediate improvement. Do this for a couple of rounds and you’ll quickly discover that distance and accuracy of iron play, chipping or putting is key. Then you can adjust your practice routine to compensate.

The same thing is true in business. If companies want to improve, they not only have to measure all of the good things that happen – the runs, hits, touchdowns, baskets, etc. – they also have to measure the bad things: mistakes, errors, hitches, glitches, missed commitments and so on. Once they have identified the parts of their “game” where things don’t measure up, they can focus their efforts and reap immediate www.buildingindiananews.com

37

MASS PRODUCTION

Calumet Welding Center Contractor List General Contractor Chester, Inc. Excavation Biesen Excavating Inc. Metal Building Systems Chief Buildings Masonry Adams Masonry, Inc. HVAC Bloomfield Mechanical Electric EMCOR Hyre Electric Plumbing Rhodes Plumbing Concrete Walker Construction Carpentry Specialty Construction Inc. Steel Erectors Kerr Con, Inc. Glass Trout Glass & Mirror Painting Stans Painting Welding Equipment Weldstar Crane T&M Equipment Co., Inc. Paving Walsh & Kelly, Inc.

38

World Wide Weld With its new, state-of-the-art training center, Calumet Testing Services is helping to address a nationwide shortage of trained welders.

A

By David Wellman

t a time when the official unemployment rate is hovering near double-digits, about 200,000 welding jobs are going wanting this year for lack of trained personnel, according to the Miami, FL-based American Welding Society (AWS). Why? Put simply, the current pool of welders is aging (the average age for a welder is around 60, according to the AWS) and too few young welders are being trained to replace those who are retiring.

“We get calls all the time,” says Larry Kondrat, President of Calumet Testing Services in Griffith. The 35-year-old company provides welding testing services to about 600 companies, and “a lot are looking for welders,” he says. However, three factors have contributed to a lack of candidates.

First, welding isn’t seen as a “sexy” career choice in our tech-driven times. “Kids come out of high school today all geared up for college, but let’s face it: a lot aren’t college material,” Kondrat says. “Welding is a job they can do, and make good money.” Entry-level welders typically start around $12 an hour or higher, experienced welders twice that, and union welders twice that again.

Second, the economy has taken its toll on construction-oriented training at the high school level. “They’ve cut all their industrial arts courses,” he notes. And finally, while would-be welders can find training courses at

institutions like Ivy Tech, they’re part of a twoyear degree program that, while it may produce a more well-rounded graduate, doesn’t do much to get new welders into the field quickly.

Enter the Calumet Welding Center (CWC), Calumet Testing’s new 14,000-square-foot, AWS-accredited, $2 million training center, which officially opened last November and immediately became the go-to state-of-the-art facility for organizations ranging from BP to local unions, as well as individuals looking for a career in welding.

With 36 welding stations, three classrooms and a $250,000 HVAC system that can completely turn the air over in the building 14 times an hour, the CWC incorporates both the decades of welding experience of Kondrat and his partner, Vice President John Korienek, as well ideas garnered from academic and union welding training facilities around the country. “We asked our customers, we went to universities, union halls and did a lot of research,” Korienek says.

Among the features incorporated were having a suite of welding equipment enabling four different welding processes in each booth; an articulated arm on which the trainee actually welds (as opposed to a bench); a movable overhead exhaust hood; adequate lighting; and an armrest (though welding often requires working in cramped spaces, this nod to comfort makes long training sessions more manageable). The www.buildingindiananews.com

booths themselves are larger than the typical welding training booth, so that student and instructor can fit easily into one. There is also a separate room for plasma cutting, open space for fabrication work, and a 10-ton overhead crane so trainees can learn how to move as well as weld large pieces. Welding coupons are reused as much as possible and eventually recycled (they also provide ample material for the company to train new welding inspectors). Overall, the CWC was in development for about three years, Kondrat says, because it represented a big investment for the company.

Calumet Testing has also hired a full-time welding instructor, Jamie Shaker. The facility “is really out of the ordinary,” he says. “You can see all the time and effort and experience that went into it.”

To help finance the CWC, Calumet Testing turned to the Regional Development Company (Valparaiso), which assisted them in securing a 504 small business loan for the building and equipment through Citizens Bank. The CWC was designed and built by Valparaiso-based Chester, Inc. “Chester was phenomenal,” Kondrat says. “They went above and beyond to take care of us.”

“Chester has completed weld training facilities for the mills and we have a strong reputation in heavy to light industrial projects in the region,” notes Chester Sales Engineer Tony Peuquet. “From first contact, we were focused on electricity and weld fume exhaust, but our first hurdle was building layout and site design.” The company’s in-house site designer developed a cost-effective layout that www.buildingindiananews.com

also allowed CTS to continue operations uninterrupted during construction.

“The electrical and exhaust elements were a major part of weld booth layout and building size,” he says. “We worked with CTS to maximize work space and maximize performance from the business. Our objective was to provide CTS with what they wanted, for the schedule they wanted, at the price they wanted, and we achieved our goals on time and on budget.”

Even before the CWC officially opened to the public in November, it

was in use, with BP training construction workers for jobs at the Whiting refinery modernization project starting in August.

IBEW local 697 has sent 30 apprentices through for a 35-hour welding training course, and is looking at doing a journeyman class; the longshoremen have sent some people through as well. The facility produced its first individual graduate in late March, and a small-scale marketing campaign – basically a billboard on I-80/94 and some placemat ads at a local diner – generated an immediate flood of interest. In addition to training, the facility is also being used by welders who need to gain or renew certifications for specific projects.

Training costs for an enrollee range from $1,500 to $5,500, depending on the nature of the training. A basic training course takes eight weeks, and upon successful completion the trainee receives an AWS certification card. The first individual graduate, Kondrat reports, had already been on multiple interviews even before his training was complete, and he expected little difficulty placing following his final tests. By press time, the number of individual graduates was up to four, and all had found jobs almost immediately.

Kondrat’s goal is for the CWC to certify 1,400 to 1,500 welders a year. “We can get kids off the street and teach them a career,” he says. “A good welder can get a job anytime, anywhere.”

39

CORRIDOR REPORT

Restocking the Pond

Developers and real estate experts say activity in South Bend and Elkhart is increasing – but no one is expecting a boom any time soon.

S

By David Wellman

umming up the state of construc- square feet to RV panel manufacturer Vixen tion activity in the South Bend Composites. “After considering multiple faarea, Tom Panzica of the Pan- cilities in Elkhart County, 2965 LaVanture zica Development Group, a local Place in Elkhart was not only the right builddesign-build firm, says it’s like a pond that’s ing, but we were able to secure a very attracbeen fished out and just restocked. “There’s tive deal,” Skillen says. The firm also leased lots of fish – but they’re all small fry,” he another 100,000 square feet to an air venting explains. “Activity is creeping back up, but systems manufacturer which relocated from Virginia to Elkhart during the first quarter. very slowly.”

“I predict continued improvement in “We have hit the bottom,” agrees Jim Skillen, Vice President at Grubb & Ellis|Cressy 2010,” Skillen says. “There have been lots of & Everett and a 27-year veteran of the in- job announcements that are set to kick in in dustrial real estate business in neighboring the second half of the year.” Still, the road Elkhart, “but when you fall off a cliff, you get to recovery looks long. “We probably have hurt. We will be crawling across the bottom for a while.”

Industrial vacancy rates in the Elkhart/ Goshen region climbed above 13 percent in the first quarter of 2010, according to Grubb & Ellis|Cressy & Everett data, with a high of 15 percent empty in North Elkhart. “It’s worse than I’ve ever seen it,” Skillen says, but the combination Source: Grubb & Ellis|Cressy & Everett of local economic development efforts and the overall economic a five-year supply of buildings before there’s a healthy demand for new construction. Norrecovery are finally beginning to be felt.

Among metro areas with a population un- mally over the past decade we would get one der 200,000, Elkhart was the top destination to 1.5 million square feet of new buildings a for new corporate investment in the United year. That’s down 90 percent.”

Mark Miller, Senior Broker for Grubb States in 2009, according to Conway Data’s New Plant Database. The region racked up & Ellis|Cressy & Everett over in St. Joseph 17 corporate real estate deals in 2009, pri- County says that after a steep across-themarily in industries such as recreational ve- board decline in 2008-09, activity is also hicles, boats and electric vehicles, easily top- picking up. “The major movement has been ping second-place Sioux City, Iowa’s dozen in the nonprofit and medical areas,” he says.

“We had the new hospital [the St. Joseph Re2009 transactions.

That pattern continued in early 2010. gional Medical Center in Mishawaka] and For example, in the first quarter, Grubb & doctors moving around, so the medical office Ellis|Cressy & Everett leased nearly 100,000 market has been rather strong.”

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That segment was further buoyed in April with the announcement that Goshen Health Systems and the South Bend Clinic would join forces to expand and equip a new medical center dedicated to cancer care, Cancer Care Partners, in Mishawaka.

Central to the project is the expansion of an existing building from 37,000 to 62,000 square feet, says Ryan Rans, Founder and Managing Member of both Great Lakes Capital Management, and Rans Development.

“We acquired the building, and the current tenant will be moving to another of our properties across the street,” he says. Construction was set to commence in early May, and to be completed by the end of the year.

“Medical is still the driver right now,” he notes, “from growth and relocation. This was both: move a doctor from one location, and then bring people in from the outside, so net-net it’s growth for the region. Everyone is very excited.”

Goshen Health officials say the Mishawaka center will provide residents of South Bend and St. Joseph’s County the same kind of integrated care the organization has delivered at its Goshen facilities over the past decade. Cancer Care Partners will offer a holistic approach in which all the oncological specialties work together in one place, along with complimentary alternative disciplines ranging from natural medicine to acupuncture. Goshen partnered with the South Bend Clinic on the project due to the Clinic’s existing knowledge of and strength in the region.

The project will create about 30 new jobs. www.buildingindiananews.com

The renovation and expansion will cost tion,” says Panzica. “Big boxes are vacant, so about $7.5 million. Goshen Health and the that has to fill up first.”

Or, alternatively, be torn down. In South Bend Clinic will invest another $14 million fitting out the facility, for a total proj- Elkhart, Skillen notes that newer and “nicer quality” vacancies are seeing more interest, ect cost of about $22 million.

The Cancer Care Partners deal is also while some older properties are just so much typical of the kind of thing being done given the tight credit market. “We are seeing different forms of financing,” says Brad Toothaker, President and CEO of the South Bend office of CB Richard Ellis. “We see more investors coming with users versus user-buyers, and more capital partnering.”

Like elsewhere in Source: Grubb & Ellis|Cressy & Everett Indiana – and much of the rest of country, dead weight on the rates. “We won’t be the for that matter – speculative development is same community when we come back out of simply not happening. “It all revolves around the recession,” he says. “So 20 to 30 percent financing,” Miller says. “Unless you have 60 of the vacancies will have no market appeal.” or 70 percent pre-leased, it’s very difficult They will either be obsolete, he says, or deto get financing approved.” A big part of the signed specifically for businesses “that aren’t problem is simply the amount of inventory coming back.

“We are just starting to talk about that as a already on the market. “The problem we see in South Bend is that there’s a lack of absorb- community,” he says, “and in many cases the

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answer will be taking it down.”

One example is the Elkhart Foundry & Machine Co. plant, which has been vacant since 2004. The city of Elkhart acquired the last of the property in April and plans to tear down the building and clean up the site by the end of the year.

Likewise, the city is also planning to demolish the vacant LaBour Pump Company site on Sterling Avenue. After racking up $300,000 in back taxes, ownership of the site was transferred to the city, but it has drawn no interest in county tax sales.

As for the slow movement of properties that don’t fall into the obsolete category, Skillen says that, as with new development, tight lending standards are inhibiting would-be buyers. “The market is cash-starved,” he says. “Companies are looking to rent, not buy, for cash flow reasons.” The flip side of that, he adds, is that for companies who are in good cash positions, now is a very good time to buy.

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St. Elizabeth East Hospital Contractor List

Designed for

Construction Manager and General Contractor Tonn and Blank Construction Excavation/Site Utilities Milestone Contractors, L.P. Asphalt Paving

Excellence

Rieth-Riley Construction Company, Inc. Rebar Installation Carey’s Steel Masonry Ziolkowski Construction, Inc. Structural Steel Lenex Steel Corporation Casework/Millwork DECO Associates, Inc. Roof Flashings and Metal Roofing Henry C. Smither Roofing Company, Inc. Waterproofing Jarnagin Enterprises, Inc. Storefront, Curtain Wall, Glass, Glazing Blakley’s Corporation Overhead Doors & Coiling Doors Professional Garage Door Systems, Inc. Painting & Wallcovering Landis Painting Co. Tile American Art Mosaic & Tile Co. Elevators Otis Elevator Company Mechanical/Plumbing Midwest Mechanical Contractors, Inc. Fire Protection Ryan Fire Protection Inc. HVAC Bright Sheet Metal Co. Inc./ A-Z Sheet Metal Electrical Long Electric Company, Incorporated

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The new $196 million St. Elizabeth East Hospital in Lafayette fuses modern design with old-fashioned concern for the well-being of patients.

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By David Wellman

n hospital design these days, it’s hip to be square. “Traditionally, hospitals took a ‘bowling alley’ approach,” says Tom Peck, Vice President, Plant Operations, for the new St. Elizabeth East hospital in Lafayette. “You had a long corridor with rooms on either side.

The nurses’ station was in the middle of the corridor, which was great if you were in one of the rooms near the middle of the corridor, but not so much if you were all the way at the end.”

Modern hospital design has largely done away with such layouts in favor of squares, with nurses’ stations, offices and supply rooms in the center, and patients’ rooms around the perimeter. “Now caregivers are much closer to patients and spend less time walking up and down halls,” Peck says. “It’s just a much more efficient design.”

However, he adds, no matter how hard you try, “you can’t turn a bowling alley into a square.” And that was among numerous challenges facing St. Elizabeth Regional Health three years ago, when it took a hard look at its Lafayette facilities and found them wanting.

“We had two hospitals in the community, both of which had been founded in the 19th century,” Peck explains. Though no structures quite that old remained, the build-

ings comprising the two facilities ranged in age from the early part of the 20th century through the 1980s. As was typical for that time, the growth of the facilities happened on an ad hoc basis. “When you start out, you build what you think you need, then over time you find you need something else, so you add another building and another building,” he notes, with the result being a kind of sprawl forcing patients to travel hither and yon for tests and services.

The facilities also grew up during a time in which semi-private rooms were the norm.

“It’s now standard that all rooms are singleoccupancy,” Peck says. “And there was no way to just convert the rooms in the old hospitals.” Operating rooms needed to be bigger to accommodate complex modern surgical procedures, he notes, and various updates needed to be incorporated to enhance patient health and the experience of patients and visitors alike. In sum, “there were several issues that drove the decision to build the new hospital,” he says.

Also factoring into the decision were outside pressures from a new physicianowned hospital and regional growth patterns.

“They built a brand new hospital, and that put us at a competitive disadvantage,” Peck says.

“And at the same time, our old hospitals were more near to the center of town, and all the www.buildingindiananews.com

Features of the new hospital include: • Separate entrances for patients of the Heart Center, Women’s Center, Outpatient Center, to make it more convenient for patients to access services specific to their needs.

• Inpatient and outpatient pediatrics located together near the Emergency Care Center and imaging, allowing pediatrics staff to treat children in a separate area that’s sensitive to their individual needs. (St. Elizabeth East is one of the few hospitals in Indiana to offer this feature.)

• Twenty-six Emergency Care Center rooms, conveniently located near diagnostic and treatment units, clinical laboratories, imaging and surgery.

• Numerous amenities, such as a chapel, room service dining, and in-room wireless computer access and a digital television entertainment system.

• Interior courtyard, soothing color scheme and custom artwork – all designed around the theme of Indiana’s rural landscapes.

new housing is being built to the south and the east. We are confident that where we are now will in 30 or 40 years be at the center of where Lafayette is going to be.”

But there was a problem: building a new, modern hospital on its own would have been next to impossible for St. Elizabeth Regional Health. While part of the larger, Mishawaka-based Sisters of St. Francis Health System, Inc. (SSFHS) network, “it was an enormous project and bigger than we had the manpower to oversee,” Peck says.

Enter Tonn and Blank Construction. www.buildingindiananews.com

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Though the construction arm of SSFHS has branched out into many different kinds of facilities – ranging from heavy industry (Beta Steel in Portage) to recreational (Deep River Water Park in Hobart) to this year’s Construction Advancement Foundation Commercial Project of the Year, the new Family YMCA in Valparaiso (see page 46) – its strongest suit is health care.

“That’s what they brought to the table,” Peck says. “They have a lot of experience in health care, both for Sisters of St. Francis and for others, and they brought on board some very experienced people and did an outstanding job.” Tonn and Blank was involved from day one, he says, and functioned not only as general contractor on the project, but project manager as well.

Whether it was working with the architect, buying new furniture or coordinating the actual move from the old facilities into the new hospital, Tonn and Blank stepped in to provide the manpower Peck needed. “We couldn’t have done what we did as well as we did it without them,” he says.

And what they did was to give the city of Lafayette and surrounding Tippecanoe County a modern, 410,000-square-foot,

150-bed hospital. The total price tag on the project was $196 million, about $160 million of which represents construction costs.

Not only is the hospital new, but it’s better for patients and staff alike. Having all private rooms reduces the risk of one patient transmitting a disease to another – and each room now has a sink right at the door to remind nurses and doctors to wash when going from room to room, further reducing transmission risks. “Further, studies have shown that patients do get better faster if family and friends visit,” Peck says, but in semi-private situations, they either don’t visit or don’t spend as much time. “So it just helps the patient get better faster.”

Centralized Services In addition to building wards on a square design, those central squares also have their own elevator, so supplies don’t have to be trucked up elevators and up and down hallways along with patients and visitors, making for a more pleasant environment. Operating rooms have been expanded from 400 square feet to 600 square feet, and services have been centralized to reduce travel time for patients and staff. “All the

services you need are in one area, so all the women’s services are in one area, all the cardiac services in one area, all the orthopedic services, etc.,” Peck says. “It’s more convenient for the hospital and the doctor.”

St. Elizabeth East opened its doors in February and was dedicated by SSFHS executives and local officials in a ceremony themed “This hospital was built for you.”

This recognized the Lafayette-area community for the part it played in providing input into St. Elizabeth East’s design, color scheme and other amenities through the Community Visioning Task Force.

“The building of St. Elizabeth East is a testament to the strong professional collaboration between St. Elizabeth and its many physician partners,” Daniel Wickert, M.D., Chairman of the Board for the Western Indiana Region of the Sisters of St. Francis Health Services, said during the dedication.

“We appreciated the opportunity to share our opinions and provide input into the hospital’s functional design so that we can do a better job – and that’s what a hospital is all about – allowing physicians, nurses and hospital staff to do a good job, so patients can go home as soon as possible.”

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Best of the Best

The Construction Advancement Foundation of Northwest Indiana taps the region’s best construction projects of 2010.

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By David Wellman

2010 Construction Advancement Foundation Award Winners Commercial Contractor of the Year Berglund Construction Company

Industrial Contractor of the Year The Ross Group, Inc.

Subcontractor of the Year Thatcher Foundations, Inc.

Professional / Engineering Contractor of the Year ACMS Group, Inc.

Highway Contractor of the Year Walsh & Kelly, Inc.

Commercial Project of the Year Tonn and Blank Construction Company Valparaiso Family YMCA

Public Works Project of the Year Hasse Construction Company, Inc. Lost Marsh Clubhouse, Hammond Port Authority

Industrial Project of the Year BMW Constructors, Inc. C8 Coal Conveyor Replacement, NIPSCO

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he Construction Advancem e n t Foundation (CAF) of Northwest Indiana took to the stage in May at the Avalon Manor in Hobart to honor the region’s top construction projects. “It was a very competitive year for our judges,” said CAF Executive Director Dewey Pearman. “We have no shortage of dedicated, demanding and creative contractors in the region, and those qualities shone through all the entries this year.”

Copping the coveted Project of the Year awards were Hasse Construction Company (Public), Tonn and Blank Construction (Commercial) and BMW Constructors (Industrial).

Munster-based Hasse wowed CAF judges with its work on the Lost Marsh Clubhouse for the Hammond Port Authority, while Michigan City’s Tonn and Blank earned praise for the stylish new family YMCA in Valparaiso. BMW (Munster) rounded out the top three thanks to its work for NIPSCO on the C8 Coal Conveyer Replacement.

The top Contractors of the Year were Berglund Construction (Commercial), Walsh & Kelly

(l. to r.) John Wysockey of Thatcher Foundations receives the Subcontractor of the Year Award from presenter Shawn Kelly.

(l. to r.) DLZ’s Shawn Kelly presents the 2010 Highway Contractor of the Year Award to Dan McLure of Walsh & Kelly.

(Highway) and The Ross Group, Inc. (Industrial).

Berglund, based in Chicago, was honored for its work on several projects, including the Munster Med-Inn and the new Purdue University residence Hall. South Bendbased Walsh & Kelly was recognized for a variety of projects around the region, most notably the resurfacing of a big stretch of I-65, while The Ross Group (Portage) scored a win with complex projects for ArcelorMittal and Summit, Inc. Rounding out this year’s winners were The ACMS Group, named Best Professional/Engineering Services Company, and Thatcher Foundations, Inc., named the year’s Best Subcontractor. ACMS (Crown Point) was selected for its project safety work at the ongoing BP refinery modernization project; Thatcher for its work on various projects around the region.

Project Excellence

Jon Gilmore, Tonn and Blank (l.) and Rob Thorgren, Valparaiso Family YMCA (r.), accept the Commercial Project of the Year Awards

The Lost Marsh Clubhouse in Hammond isn’t what people expect from a public golf course.

“Most people think it’s a private golf course,” says Fred Armstrong, Vice President, Estimating

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(l. to r.) Phil Pack of NiSource; presenter Shawn Kelly, DLZ; and Kevin Gawlinski and Neil Magnuson of BMW Constructors accepting the Industrial Project of the Year Awards.

with Hasse Construction, in large part because of the stunning clubhouse. The 450,000-squarefoot, $9 million building sits atop a former brownfield site in far north Hammond. The facility features a grand lobby with a two-story glass waterfall which cascades into an interior reflecting pool. Other features include a pro shop, players lounge, conference rooms, a bar and restaurant, and a 240-seat banquet facility.

“You can see the Chicago skyline from the patio,” Armstrong notes, “and it’s very con-

The Ross Group snagged CAF’s 2010 Industrial Contractor of the Year Award.

Pictured are (front, l.to r.) Kathy Edwards; Ross Pangere; David Kosinski; Kirt Witham; (back, l. to r.) Wally Troelsen; Joe Valentino; and Mike Bixeman.

venient for companies in the area like BP and Cargill, who now have conference rooms and a banquet center just minutes from the office.”

Tonn and Blank demonstrated that it is more than just a medical facility builder with the new Family YMCA in Valparaiso. The 83,000-square-foot YMCA features a state-ofthe-art fitness and wellness center, as well as multiple gymnasiums, pools, a running track circling a cardiac workout area, and the largest child care center in Porter County. The compa-

ny completed the 75,800-man-hour project with no recordable injuries.

(For more about the project, see Building Indiana’s September/October 2009 issue, available at buildingindiananews.com.)

BMW Constructors built a new 550-foot long coal conveyor for NIPSCO’s Michigan City generating station. The conveyor lifts coal from grade to a 150-foot elevation at the power house. The conveyor is sited directly above high-voltage power lines, which were not able

innovation + protection = innovation - NOUN 1. something new or different introduced.

2. the act of innovating; introduction of new things or methods. protection - NOUN 1. the act of protecting or the state of being protected; preservation from injury or harm.

2. a thing, person, or group that protects.

. Commercial Insurance . Risk Management & Safety . Employee Benefits . Health Risk Management . Personal Insurance . Surety

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on I-65. Covering about nine miles of the highway, “it was a difficult job because of the timeframe and the need to have all lanes open for the holiday season,” says Jeff Swan, Vice President of Construction. ”Our project manager, Dave Miserly, did a fantastic job.”

Commercial Contractor of the Year went to Berglund Construction for a diverse selection of projects, ranging Hasse Construction won the Public Project of the Year for the from the Munster Med-Inn Lost Marsh Clubhouse, built for the Hammond Port Authority. to the new Teamsters Local Pictured are (front, l. to r.): John Hasse, Hasse Construction; Lisa 124 Training Center. “That DeRolf, Hasse Construction; Phil Logan, Hasse Construction; Fred Armstrong, Hasse Construction; Tom Kuhn, Hammond Port facility is one of five in the Authority. (back, l. to r.) Chris Murphy; American Structurepoint; whole nation for training, so John Kennedy, American Structurepoint; Paul DeRolf, Hasse it’s a big asset for Northwest Construction; Kathy Hasse, Hasse Construction; William Hasse, Indiana,” notes Bill Gorski, Hasse Construction.

Senior Vice President of Berglund. to be de-energized during construction.

The Munster Med-Inn project combined Walsh & Kelly’s road work around the region garnered the firm honors as Highway flood remediation work, after two floors of Contractor of the Year. Foremost among the the building had been completely flooded in projects the company completed in the past 2009, with a reconfiguration and mechanical year was a $10 million resurfacing project systems upgrade to improve the skilled nurs-

Northwest Indiana Construction Awards Banquet Sponsors Platinum Sponsors ACMS Group DLZ Mersino Pro-Fab Sheet Metal Rubino, Ruman Security Industries Solid Platforms, Inc. The American Group of Constructors Working Well Gold Sponsors Aker Solutions AMS Mechanical Systems ArcelorMittal BP Bekan Insurance Group Berglund Construction Braman Insurance Services Building Indiana Magazine Community Healthcare System/St. Catherine Hospital Correct Construction Inc. EMCOR Hyre Electric First Midwest Bank Griffin Harris Bank Hayes Mechanical KM Plant Services Policy Analytics, LLC Ronson Equipment Company Ryan Fire Protection, Inc. Safety Management Group Sargent Electric Company Schilling Stevens Superior Construction Co., Inc. The Pangere Corporation The Ross Group Tonn & Blank Construction Tranco U.S. Steel Van’s Industrial Videmos, Inc. Silver Sponsors Accelerated Rehabilitation Centers Center of Workforce Innovations Hoeppner Wagner & Evans LLP Manta Industrial N. A. Logan Schepel Buick GMC Senator Sue Landske Stevenson Crane Service, Inc. Walsh & Kelly, Inc.

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Berglund’s Bill Gorski (center with award) surrounded by the team: (front, l. to r.)

Jake Bristol, Rose Rivera; Ele Gedremenc; Amy Stremplewski; Dustin Thalmann; Dennis Murzyn. (back; l. to r.) Rosa Rozek; Fred Berglund; and Gene Ward.

Berglund was honored with the Commercial Contractor of the Year Award

ing and rehabilitation center. “The flood had just been a disaster, and to take it from that to a new, updated design for senior living was really rewarding,” Gorski says.

Safety and quality were the keystones of The Ross Group’s victory in the Industrial Contractor of the Year category. Much of the firm’s award-winning work was done over the past year for ArcelorMittal on the Basic Oxygen Furnace, Scrubber and Lime Plant at Mittal East. “The jobs at Mittal are quite difficult

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ACMS Group was named the 2010 Professional/Engineering Services Contractor of the Year. Accepting the award were (l. to r.): Rich Soohey; Bo DiPaoli; Jim DePaoli; and Jim Hosfeld.

work,” notes President Ross Pangere. “A lot had to be staged with helicopters. In some cases we were working 200 feet off the ground with the wind blowing off the lake.”

The ACMS Group was named Professional/Engineering Services Contractor of the Year for its project WRMP work at the BP Whiting Refinery.

More than 50 ACMS Group personnel are on-site daily to ensure that each work area has all the proper permits and that procedures put in

place by BP are followed. Not only does ACMS Group facilitate the permitting process, they also must get all parties involved to develop a Safety Plan before any work takes place.

The Subcontractor of the year, Thatcher Foundations, was tapped for work done at ArcelorMittal (the H4 Blast Furnace Slag Pit), the Ports of Indiana Burns Harbor (West Access Road improvements) Dominion State Line Energy (the Dozer Trap Conveyor), and Buckeye Partners (the Grout Encasement project).

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NWIBRT 2009 Safety Award Recipients Contractor of the Year Solid Platforms Inc.

Innovation Manta Industrial Inc.

Roger Walters Memorial Award Doug Patton

Excellence Ambitech Engineering Corporation ATC Associates, Inc. Atlantic Plant Services.

Correct Construction Culver Roofing, Inc. Graycor Industrial Constructors Inc. Interstate Environmental Services, Inc. Interstate Insulation Corporation Orbital Engineering, Inc. Solid Platforms, Inc. The American Group of Constructors The Pangere Corporation Total Safety US, Inc.

Achievement Falk-PLI Security Industries, Inc. M&O Environmental Company Middough Consulting, Inc. R.J. Mycka, Inc. STEVENS Engineers & Constructors Stevenson Crane Service, Inc. Superior Construction Co., Inc.

Recognition AMS Mechanical Systems, Inc BMW Constructors, Inc. Central Rent-A-Crane, Inc. CET Incorporated Cornerstone Electrical Consultants, Inc. EMCOR Hyre Electric KM Plant Services, Inc. M&O Insulation Company Manta Industrial Services Meade Electric Company, Inc. Mersino Dewatering Midwest Regional Contractor’s Alliance, LLC Tranco Industrial Services

Progress Urban Elevator Services Van’s Industrial

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Safety in the Spotlight The Northwest Indiana Business Roundtable honors the region’s safety professionals, innovators and safest companies.

By David Wellman

C

ontractors and subcontractors throughout Northwest Indiana continued to step up their commitment to safety on the job in 2009, providing powerful examples of how a safe workplace not only prevents injuries and saves lives, but also translates directly to having a more competitive and profitable company.

“The most important reason to be safe is always going to be people,” says Willis Shepherd, Executive Director of the Northwest Indiana Business Roundtable (NWIBRT). “But where many companies once viewed safety as a cost, they are now coming to see it as a profit center. Reducing and eliminating injuries also reduces and eliminates a whole suite of expenses, and that money drops straight to the bottom line.”

“Safety is definitely a competitive edge for us,” agrees Rick Napier, Vice President of Environmental, Safety & Health for K2 Industrial, the parent company of Manta Industrial, win-

ner of NWIBRT’s 2009 Safety Innovation Award. The Hammond-based company’s propriety safety metrics system has racked up impressive results over the past decade. “In 2000, when we started this system, we were running about 45 Jason Lammertin (l.) accepts the Contractor of the Year cents per man-hour award from NWIBRT Executive Director Willis Shepherd. in worker’s compensation costs,” Napier says. Last year – the company’s best year ever – worker’s comp costs were just 2.9 cents per man-hour.

“More than anything else, a good safety record allows us in the door at companies like Manta Industrial’s Tony Bochniak shows off the company’s BP and Lilly who Safety Innovation award. are very safety-conscious,” adds Danny Jones, President and CEO of Security Industries (Hobart), a 2009 Safety Achievement Award recipient. “That’s not always the case for our competitors. And the word-of-mouth on that is phenomenal; we get calls all the time saying, State Sen. Sue Landske and husband Bill enjoy the ‘We hear you are do2010 CAF/NWIBRT Awards Banquet. ing work for BP, and www.buildingindiananews.com

The 2009 NWIBRT Safety Award-winning team from Security Industries of (front, l. to r.) Derrek Harvey, Jim Allgire, Larry Walleske (back, l. to r.), Danny Jones, Kristin Shuttz, Holly Baca and Holly Cooper

if you can meet their safety criteria, you can meet ours.’” With this year’s honor, Security Industries marks its fifth-straight NWIBRT Safety Award – and that, too, is a valuable tool, Jones says. “When customers hear that we got another safety award from NWIBRT, it takes the issue right off the table,” he relates.

Scott Miller, Refinery Manager for

Also taking home a NWIBRT Safety Award was The American Group of Constructors.

Pictured is TAG’s Safety team of (front, l. to r.) Gary Bickham, Kym Thiel, Tim Price (back, l. to r.), Nick Michailides and Ben Letany.

Safety-Kleen in East Chicago, notes that medical costs associated with accidents are just the tip of the iceberg. “There are far-reaching costs within the company,” he says. “There’s a lot of value in having a business run safely and predictably. If you are always reacting to OSHA and inspections, you are not focusing on your business.” For Safety-Kleen, that hasn’t been a

problem in a long time: this year, NWIBRT honored the company with special award to commemorate its 13 years and nearly 2.5 million man-hours without a lost-time injury.

In their business, Miller says, such a record is “almost unheard-of. Our total recordable injuries have been less than one for the past four years. So we are doing

2010

CADILLAC SRX

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53

Doug Patton, BMW Constructors, recipient of the Roger Walters Memorial Award, with Debbie (l.) and Kristin Walters.

pretty good.”

Teamwork and communication were common safety success factors cited by this year’s NWIBRT Safety Award winners. “We make sure that before, during and after the job, everyone is pulling for each other,” says Jason Lammertin, Vice President of Solid Platforms (Portage),

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Celebrating Graycor’s 2009 Safety Excellence Award were (front, l. to r.) Kathy Vrehas, Tom Muchesko, Karen Muchesko, Chuck Phillips, Virginia Phillips (back, l. to r.), Ted Vrehas, Penny Walden, Jeff Walden, Tina Bronisz and Rich Bronisz.

winner of this year’s top honor, the 2009 NWIBRT Safety Award Contractor of the Year. “Scaffolding is a dangerous profession, so we have to maintain our focus and stay close as a group.” The company’s efforts were rewarded last year with just one OSHA-recordable incident in 1.2 million man-hours of work.

Also key, winners say, is avoiding what Miller calls “success-oriented thinking.” “Every job is a new job, every day is a new day, and every task is a new task,” he says. Just because something has been done a hundred times before doesn’t mean that there can’t be a problem on the 101st attempt.

www.buildingindiananews.com

Safety is “a drum you have to beat every day,” Jones says. “It’s not like changing your business card, where once it’s done, it’s done. There’s no taking your foot off the gas. It has to become part of your culture.”

One example of that is taking steps above and beyond what’s Curtis Ward (l.) of STEVENS Engineers & Constructors accepts his company’s Achievement Award from NWIBRT’s required. “We op- Willis Shepherd. erate under a process safety management program,” Miller explains. “This is mandated for refineries and chemical plants and provides a whole list of things that are required. We do it voluntarily, because we see the benefit of doing it.”

Likewise, the proprietary system devised by Napier and used by Manta relies on tracking not just incidents that, by law, have to be recorded, but also first aid and “near miss” incidents as well. “OSHA statistics are trailing indicators,” Napier notes, while what safety professionals really need is predictive tool. “When you look at all your accident history, that’s when you find patterns of the same thing hap-

(l. to r.) Craig Lauder, Total Safety; Andrea Pearman, Diversified Marketing Strategies; and Terry O’Grady, Pekron Consulting smile for the camera during the awards banquet.

pening over and over.” Once that unsafe behavior and issues are identified, “then you can work that forward into the job hazard and risk analysis.”

The system even has an indicator designed to monitor the status of safety in the company’s culture. “So, if we have a good year, I can tell you whether we were just lucky, or had a good safety culture,” Napier says.

“I can’t overemphasize the strong management support for this,” he adds. “It was hard to convince people at the start, but now they can see the real returns.” www.buildingindiananews.com

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Nonprofit & Charitable Giving Statistics Between 1998 and 2005, the number of nonprofits in the U.S. increased from 1.1 million to 1.4 million, according to The (Washington,

STATE

TOTAL # OF NONPROFIT ORGANIZATIONS

D.C.). As a result, nonprofits have

Illinois

66,477

Indiana

36,108

Kentucky

18,871

Michigan

48,351

Ohio

64,674

Urban

Institute

become an increasingly larger piece of the economic puzzle.

In 2006, nonprofits contributed $666 billion to the economy and accounted for five percent of

Nonprofit Contributions, March-May 2009

Number of Registered Nonprofit Organizations by State, 2008

Don’t Know

1%

Stayed the Same

Increased

18%

29%

52%

Source: National Center for Charitable Statistics at the Urban Institute

Decreased

Source: GuideStar USA

GDP, eight percent of wages, and nearly 10 percent of jobs.

As goes the nation, so goes Indiana. According to the most recent update (2007) from Indiana University’s Center for Philanthropy, about one in 12 Hoosiers were employed in the nonprofit sector as of 2005, earning about $7.5 billion in wages. The larg-

Number of Private Foundations in Indiana, 2009

In 2009, there were

1,569,572

NUMBER

TOTAL REVENUES (millions)

TOTAL ASSETS (millions)

Under $1 million

919

$252.3

$211.5

$1-10 million

616

126.9

854.1

$10-25 million

31

119.0

445.3

$25 million+

34

1,051.4

12,610.5

1,600

$1,549.6

$14,121.4

TOTAL ASSET LEVEL

tax-exempt organizations in the United States.

Total

Source: NCCS Master Business File 10/09

Source: IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute)

est nonprofit segment was health care, which accounted for just over half – 51 percent – of total nonprofit employment in 2005.

Nonprofits are, unfortunately, under stress as the recession ate into charitable giving in 2008

Charitable Giving by Sector, 2009 $106.89

Religion

$40.94

Education

$32.65

and 2009. Surveyed in the mid-

Foundations

dle of 2009, 86 percent of fund-

Health

$21.64

Public-Society Benefit

$23.88

raisers said the economy’s impact was negative or very negative, and more than half didn’t expect that to change before 2010 at the earliest. Still, fewer than 40 percent reported they were actually raising fewer dollars than a year ago.

56

Arts/Culture/Humanities

$12.79

International Affairs

$13.30 $6.58

Environment/Animals 0

20

40

60

Note: dollar figures in billions Source: Giving USA 2009

80

100

120

In February of 2010, the Center on Philanthropy at Indiana University announced the addition of a Bachelor of Arts in Philanthropic Studies degree program designed to equip students for positions in the nonprofit sector.

Source: IU

www.buildingindiananews.com

Top Five Types of Non-501(c)(3) Exempt Organizations in Indiana, 2009 NUMBER

TOTAL REVENUES (millions)

TOTAL ASSETS (millions)

3,261

$1,165.0

$1,760.0

Social and recreational clubs

2,461

$314.1

$517.1

Business leagues, chambers of

1,595

$350.8

$489.6

1,428

$349.9

$425.0

1,446

$176.8

$538.1

TYPE OF ORGANIZATION Civic leagues, social welfare organizations,

Registered Nonprofit Organizations in Indiana

and local associations of employees

commerce, real estate boards, etc.

Labor, agricultural, horticultural

# OF NONPROFIT ORGANIZATIONS

1999

31,116

2004

33,845

2009

37,518

Source: Internal Revenue Service, Exempt Organizations Business Master File (Oct. 2009), The Urban Institute, National Center for Charitable Statistics.

organizations, etc.

Fraternal beneficiary societies and associations

YEAR

Source: IRS Business Master File 04/2009

Charitable Giving in Indiana YEAR

CHARITABLE GIVING

2004

$2,540,000

2005

$2,758,000

2006

$2,723,000

Source: Internal Revenue Service, Charitable Giving by Households that Itemize Deductions (AGI and Itemized Contributions Summary by Zip, 2006), The Urban Institute, National Center for Charitable Statistics

Top Five Types of Public Charities in Indiana, 2009 DESCRIPTION

NUMBER

TOTAL REVENUES (millions)

TOTAL ASSETS (millions)

Religion Related, Spiritual Development

5,269

$181.3

$350.2

Education

3,140

$4,657.7

$20,519.7

Recreation, Sports, Leisure, Athletics

2,768

$786.1

$694.7

Arts, Culture, and Humanities

1,774

$447.3

$2,148.7

Human Services - Multipurpose and Other

1,726

$1,792.1

$2,631.7

Note: Excludes out-of-scope and approximately 900 so-called “mutual benefit” public charities. Source: IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute)

Nonprofit Share of Total Employment,

by Economic Growth Region, 2005

Indiana Nonprofits By Type, 2009

Public Charities

21,546

59%

37%

Other Nonprofit

13,402

4% Private Foundations

Source: IRS Business Master File 04/2009

1,600

Donations to charitable causes in the United States reached an estimated

$307.65 billion in 2008.

Source: Indiana Nonproftis

www.buildingindiananews.com

Source: Giving USA 2009

57

New developments at the Gary/Chicago International Airport headline the Third Annual Build Indiana Summit.

N

Flight Plan

By David Wellman

orthwest Indiana’s efforts Airport should, at least initially, concentrate drum & Brown. “And there is an opportuto dig out of the aftermath on the charter and leisure vacation travel nity to relocate existing Chicago charter of the Great Recession re- sector. “This will not be a limitation,” Mor- and leisure travel here to Gary.” Moving ceived a boost in May with ris explained. “There will still be oppor- those flights across the border would free the release of a comprehensive business tunities for cargo, commercial passenger up much-needed gates at O’Hare and Midplan for the Gary/Chicago Airport. way, while funneling an estimated “This is Northwest Indiana’s 500,000 to 1 million passengers single most important development through Gary. “That creates opporfactor,” declared Leigh Morris, tunities for bringing in other charter Chairman of the Regional Developcarriers,” he said. “This is somement Authority. The lack of a formal thing that can be a strong economic business plan, he explained, was high stimulus for the region.” on the list of things holding airport “Chicago is very supportive of development back, “so this will be a this effort and will provide support very important step in the process.” in moving carriers out,” Muscatello The plan, developed by welladded. Seven charter carriers have regarded airport planning firm Lanbeen identified as initial targets for drum & Brown, sought to answer relocation.

Indiana Secretary of Commerce Mitch Roob briefed Build Indiana four questions about the facility: In order for this goal to be realSummit attendees on the increase in job and investment commitments • What should the core aviation func- by companies in, or moving to, Indiana in 2010. ized, plans to extend the runway at tion be?

Gary have to be carried out. “The • What opportunities are there for the devel- service and general aviation.” However, the runway extension is the single most critical opment of land around the airport? experts at Landrum & Brown believe that element of the business plan,” Muscatello • Are Gary’s partner airports in Chicago building the charter and leisure travel busi- said. Currently, federal funds are available doing enough? ness offers the fastest way to stabilize the for the project, but those monies must be • How can the airport’s branding and mar- airport’s finances. used by 2015 or they will be lost. In adketing be improved?

“Just because you have an airport doesn’t dition, “all of this is going to require imThe answer to the first and most impor- mean you have an operating airport,” noted proved highway access,” Morris said. “We tant question was that the Gary/Chicago Dan Muscatello, Managing Director at Lan- are exploring ways that this can happen.”

58

www.buildingindiananews.com

More than 200 executives and public figures from in and around Northwest Indiana took advantage of networking opportunities at this year’s event.

The business plan recognized logistics services as a follow-up opportunity for the airport, including the development of a regional logistics center and the possibility of a multimodal public transportation center at the airport. However, a full-scale, international-caliber logistics operation – which combined with the region’s highways, rail systems and ports would be the final piece for a true land, sea and air multimodal

Expressway via a public-private partnership. The only big change made by Illinois versus what was approved by Indiana is that Illinois lawmakers want the Illiana extended on their side of the border to I-55 near Joliet.

The next critical step, said John Swanson, Executive Director of the Northwest Indiana regional Planning Commission (NIRPC) is a National Environmental Policy Act, or NEPA, study. Key issues to be addressed include the cost and impact of the I-55 extension and the additional interchange which

will be needed, the impact on lowincome communities, environmental effects such as the impact of the highway on air quality, and recommendations for proceeding. A twostate oversight body for the project will also be needed, he added.

And finally, the states need to identify a private-sector partner for the Illiana. Indiana is “already on the hunt for other people’s money to build the Illiana,” said Indiana State Senator Ed Charbonneau, who authored Indiana’s Illiana legislation. “The economic development potential is just huge.”

Regional Development Authority Chairman Leigh Morris presented a new plan to grow charter air service at the Gary/Chicago International Airport.

logistics hub – is not in the offing any time soon.

That, said Muscatello, would require a 13,000foot runway to accommodate big cargo planes; the current runway lengthening project will only increase the runway to about 9,000 feet.

In addition to the Gary/Chicago Airport business plan, news also broke the day of the Summit that the Illinois legislature had followed Indiana and approved development of the Illiana www.buildingindiananews.com

59

crease the average wage rate for Hoosiers,” Roob said. “Right now, it’s about 92 cents On a state level, job commitments and for every dollar earned by Americans overinvestment in Indiana were both up suball. This year, those 7,000 jobs have an avstantially in early 2010 versus 2009, Indiana erage wage rate of more than $20 an hour.

Secretary of Commerce and CEO We are very excited about that.” of the Indiana Economic DevelopThe greatest challenge to attractment Corporation (IEDC) Mitch ing more jobs and money to Indiana Roob told attendees of this year’s remains simply getting noticed, he Build Indiana Summit. said. “I was in New York a couple “Our success has come not months ago talking to a site selecbecause we bribed companies to tion guy, and he said, ‘Okay, you’re move here, but because we have from one of those ‘I’ states. Is it the built the best sandbox,” he said, first, second or third on the map?’ citing factors such as highway imWhen you are 2.2 percent of Ameriprovements funded under the Maca, you have to work harder.” jor Moves program, telecommuniComplicating matters today is cations deregulation and a variety Attendees listen during one of the presentations at the 2010 Build Indiana Summit. the regional economy. “It does not of tax incentives and credits, such help to have Illinois and Michigan as the personal property tax exflat on their back,” Roob said. “People ask, resulted in 7,175 new job commitments emption on IT equipment. “The thing we do how can you be any different? It is the case, from companies moving into or expanding is to create the best business environment but it doesn’t help from a marketing standin the state.

That represents 54 projects, up possible.” point.” from 39 in April of 2009, and $902 million That work paid off in 2009, when more than 50 companies which were consolidat- in investment year-to-date, versus $555 mil- For the complete Gary/Chicago International Airport business plan, as well as all the preing multi-state operations due to the eco- lion through April of 2009.

These new jobs are bringing with them sentations from the Build Indiana Summit, visit nomic downturn chose Indiana as the state increased pay as well.

“Our goal is to inwww.buildindianaconference.com. in which to consolidate. “We had 51 com-

Roob: Jobs, Investments Rise

petitive consolidations in Indiana in 2009,” Roob said. “That brought 5,000 jobs and preserved 10,000 jobs.”

Through April of this year, the combined efforts of local leaders and the IEDC have

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61

SMALL BUSINESS SPOTLIGHT

Think Fast Indiana companies looking for a competitive edge in their hiring need to “Think Beyond the Label.”

By Julie Cook, Medicaid Infrastructure Grant Project Manager, Indiana Bureau of Rehabilitation Services and James Emmett, Corporate Development Consultant, Indiana Vocational Rehabilitation

I

t is (unfortunately) one of Indiana’s best-kept secrets: that the Hoosier State will foot the bill for a process that can add thousands of dollars to your bottom line, and reduce your exposure to risks under legislation like the Americans with Disabilities Act (ADA) to boot.

In most other states, companies pay consultants upward of $150 an hour to come in, help them develop a strategic outreach to the disability community, and learn about making “reasonable accommodations” for them in the workplace. But in Indiana, the state’s Corporate Job Development program, offered by the Indiana Bureau of Rehabilitation Services, can provide all these services, delivering a competitive advantage to Indiana businesses.

The benefits of developing a disability outreach program and recruiting in the disability community are legion. From a market perspective, the community is a huge opportunity: approximately one out of three Americans is disabled or has close family or friends who are people with disabilities, 62

and as a group they mass nearly $800 billion in purchasing power. A successful outreach program has also been shown to lower turnover, increase productivity and reduce recruiting costs by as much as $2,500 per hire – and there are direct tax credits and training credits that exceed more than $6,000 for hiring a person with a disability.

And finally, there’s the ADA. Recent amendments to the Act have sent shock waves through corporate human resources departments because of the broad definition of “disabled” they contain. But part of creating a successful outreach program is building an awareness of ways to make precisely the kind of “reasonable accommodations” called for under the ACT. And increasingly, it’s the companies that are burying their heads in the sand that are stumbling over the ADA, not the ones adopting a proactive approach.

To help get the word out about this “secret” advantage for Indiana businesses, the state is piggybacking its own outreach efforts on top of the national “Think Beyond the Label” campaign. This energetic $4

million marketing campaign will appear on television, in print, on the Web, and on billboards through 2011. The goal of the humorous, edgy campaign is to change attitudes about hiring people with disabilities, raise awareness of the need for diversity in the workplace and counter stereotypes about people with disabilities.

“Think Beyond the Label” emphasizes that all workplaces accommodate differences – from the “copy-incapable” office worker to the “pattern-deficient” dresser to the man with “volume control syndrome” (i.e., the loud-talking employee). The campaign acknowledges that workforce diversity is an asset to companies of all sizes, not just large companies. “Think Beyond the Label” emphasizes the quirks of our co-workers – making the case that no worker is without them – and demonstrates that these differences don’t impact job performance or slow the company down.

In Indiana, the campaign emphasizes that disabilities are just one more element to workplace diversity and hiring people with disabilities can benefit companies’ bottom www.buildingindiananews.com

line objectives, even in these trying economic conditions. “People with disabilities are the untapped workforce of the 21st century,” says Barbara Otto, Executive Director of Health & Disability Advocates in Chicago. “Companies that are looking for individuals who think outside of the box get a competitive edge when they overcome their biases and hire individuals who are living outside of the box.”

Indiana will supplement the national campaign with additional statewide media that will run throughout 2010 and potentially again in 2011. The Indiana campaign is being funded in part by the Medicaid Infrastructure Grant, a fully funded federal grant whose primary goal is to change policies, practices and systems that create barriers for individuals with disabilities from locating and keeping gainful employment throughout the state.

“We will be utilizing a variety of media including television, digital and print as well as seeking out opportunities for non-fee media.

The local campaign effort is also working to ensure that businesses who contact us through ThinkBeyondtheLabel.com have access to key local resources that can help them start hiring people with disabilities today,” says Theresa Koleszar, Medicaid Infrastructure Grant Project Director.

If your business is ready to take the next step and learn more information: • Visit the www.thinkbeyondthelabel.com and register – registering is free.

Click on the Indiana page for local resources.

• Once registered, make a pledge. By making a pledge, you can add the campaign logo and link to your website. Then spread the word. Access e-cards on the home page that allow you to tell others about the campaign.

• Help to post success stories on the Think Beyond The Label site.

• Contact us about your employer-focused events that are coming up: a brief description with date, time, location, and Web link or contact info for more details; and • Contact Shirley Olwine, with the CJD unit, at 317-650-9828.

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The bottom line goal of the “Think Beyond the Label” campaign in Indiana is to create an awareness and a buzz in the business community about the business sense for hiring people with disabilities. The Think Beyond the Label Digital Hub is the first place that businesses can start understanding this unique opportunity. The site starts with busting the myths of working with employees who have disabilities. A commonly misunderstood myth for employers considering a diversity initiative is that their worker’s compensation rates will skyrocket. The Web site tells visitors that this is a myth and the reality is that, “Insurance rates are based solely on the relative hazards of the operation and the organization’s accident experience, not on whether workers have disabilities.”

Additionally, employers can learn about tax incentives that are available to companies of all sizes and the return on investment companies can receive through diversity hiring initiatives.

Finally, the site offers an Indiana-specific page where employers can get into contact with the Indiana Corporate Job Development (CJD) team that can assist their company in developing a strategic outreach to tap into the labor and customer power of the Indiana disability community. The Indiana CJD is currently working with companies including Vera Bradley, Fort Wayne Metals, Best Buy and Lowe’s. In the past their efforts have inspired successful diversity initiatives at CVS, ACS (Xerox), Walgreens and other Indiana companies. www.buildingindiananews.com

63

LOGISTICS

Thinking

Logistically About Indiana’s Future

Conexus Indiana outlines strategies to strengthen state’s logistics assets.

K

By David W. Holt, Vice President, Operations and Business Development, Conexus Indiana

Indiana has many reasons to be proud of its position as a logistics leader. Projected growth in the logistics industry has the potential to propel Indiana’s economic development into the next century.

64

nown as the “Crossroads of America,” Indiana has unmatched interstate access, a central location, active ports and railways, and a low cost of doing business, all of which make it a nationwide leader in the logistics industry. With U.S. freight expected to double by 2035, Indiana has a unique opportunity to capitalize on these advantages and become a magnet for logistics growth and investment on a global scale. Now is the time to solidify Indiana’s position in the global supply chain and take steps to ensure the state realizes its potential as an international logistics hub.

Last month, Conexus Indiana, an initiative to grow the state’s logistics and advanced manufacturing industries, released a statewide strategic plan aimed at achieving that goal. It outlines several strategies in the areas of infrastructure, public policy, public awareness and workforce development that, if enacted by the public and private sectors, will lead to continued logistics growth and investment and a business

environment that attracts logistics companies and high-paying jobs.

The plan is the culmination of two years of hard work by the Conexus Indiana Logistics Council Executive Committee (LCEC), a group of 36 logistics executives and thought leaders from throughout the state representing all sectors of the logistics user community, including trucking, air, rail, waterborne shipping, warehousing and distribution, infrastructure and service firms. This marks the first time these often disparate industry sectors have come together to agree on a common agenda, and establishes a forum through which logistics leaders can discuss issues affecting the industry.

Conexus Indiana traveled the state, holding roundtable discussions with local leaders about their region’s most pressing logistics opportunities. The result is a plan that addresses opportunities of high impact statewide, from northwestern Indiana to Evansville and everywhere in between.

Everything outlined in the plan, if implemented, would lead to job growth www.buildingindiananews.com

in the logistics industry. The report addresses key infrastructure improvements, opportunities to enhance workforce preparedness and public policy agenda items, including: Intermodal Capacity. Among the chief infrastructure issues addressed in the plan is the need for more intermodal/multimodal capacity in Indiana – meaning the ability to transfer shipments from trucks to trains, trains to airplanes, or some other combination. Right now, too many shipments are required to travel to Chicago for these exchanges. For example, a local business shipping soybeans to Japan must use an intermodal yard in Chicago, adding labor, fuel, and time costs of roughly $1,200 per shipment. This particular business could save $1,000 of these costs if it had access to a similar facility here in Indiana.

Conexus Indiana has made it a priority to evaluate potential sites for two or three facilities that will enable these types of intermodal transfers to be executed in Indiana, saving Hoosier businesses thousands on shipping costs and making it faster and more cost-effective to ship goods through our state and around the world.

Air Freight Opportunities. Indiana also has a significant opportunity to attract air freight business and take advantage of existing capacity at several state and regional airports. A strong network of airports throughout the region include four of the top 125 cargo airports in the country: Indianapolis (No. 6), Fort Wayne (No. 102), Louisville (No. 3) and Cincinnati (No. 93). Indianapolis also boasts the second-largest FedEx hub in the nation.

If Indiana increased the use of these airports in terms of international and domestic cargo shipments, the state may be able to attract additional air freight business. This would relieve overwhelmed airports in Chicago where shipments may sit for several days, creating unnecessary costs. We believe Indiana’s airports can provide a strategic geographic alternative to such costly bottlenecks, and provide an economic boost to the state.

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Waterway Improvements. The strategic plan also calls for the construction and redesign of deteriorating locks on the Great Lakes and the Ohio River, which serve as critical gateways for goods shipped to and from Indiana. The Soo Locks on the St. Mary’s River connecting Lake Superior and Lake Huron and the Olmstead Locks on the Ohio River have been identified as failing and in need of immediate repair. Both locks are critical in moving iron, steel, coal, grain and other raw materials produced in Indiana, or that are essential to industry.

In 2008, nearly 90 million tons of cargo – including a quarter of all coal shipped on U.S. inland waterways – passed through the Olmstead Locks. The Soo Locks are a critical link in the shipment of iron ore to Indiana’s steel mills, where 22 percent of all U.S. raw steel is produced. A failure of either of these locks would have a significant and immediate impact on Indiana’s economy and would create a ripple effect throughout the rest of the country.

Interstate Access. Another frequent issue that was raised during the roundtable discussions was that several key regions and www.buildingindiananews.com

65

cities lack direct interstate access that would facilitate greater trucking volumes and spur economic development. The strategic plan supports the construction of interstate-like access to these areas, including much of southwestern Indiana, based on impact and potential.

Education and Training. Unlike the warehousing or assembly line jobs of a generation ago, today’s logistics careers require an understanding of complex technologies and integrated steps in the supply chain. For Indiana to capitalize on future growth in the logistics industry, it must have a workforce prepared to take on these increasingly high-tech jobs.

Unfortunately, there is a shortage of such workers in Indiana. According to the Indiana Department of Workforce Development, three of the top 10 skill gaps identified by Indiana employers are in logistics occupations. Indiana ranks 35th in the nation in the number of adults holding associate’s degrees, and 47th in

66

those who hold bachelor’s degrees.

To help boost the ranks of Indiana’s logistics qualified workforce, Conexus Indiana brought together 21 human resources and operations executives from throughout Indiana to determine the skills required for middle-level logistics employees and identify where gaps exist in current educational programs and on-the-job requirements. The result is a logistics skills template designed to help postsecondary educators develop curricula for a portable logistics credential that would ensure future workers are prepared for increasingly high-tech logistics careers.

Already, Conexus Indiana has been instrumental in raising awareness of the deteriorating locks and the need for their construction and redesign, been actively engaged in the development of intermodal/multimodal rail facilities, and has worked with industry leaders to draw a skills roadmap to help educators better prepare future logistics workers for

successful careers. We plan to continue studying the state’s logistics issues and will release a second phase of the strategic plan next year, which will recommend ways to pay for items in Phase 1, improve the financing mechanisms for current infrastructure modes, facilitate a discussion on a public policy package for the Indiana General Assembly and Congress, and outline long-term goals and tactics.

Indiana has many reasons to be proud of its position as a logistics leader.

Projected growth in the logistics industry has the potential to propel Indiana’s economic development into the next century. But we must continue to anticipate needs and make necessary investments that will support and attract new logistics ventures and elevate Indiana’s status as the “Crossroads of America” to that of a worldwide hub of logistics activity.

For the complete Conexus Indiana Logistics Report, visit buildingindiananews.com.

www.buildingindiananews.com

for lower taxes, business and housing costs Indiana is the smart move for companies looking for lower business costs, a skilled and dependable workforce, and a supportive business climate.

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• Indiana ranks first in the Midwest and 12th nationally in the Tax Foundation’s 2010 Business Tax Climate Index.

• Indiana ranks first in the Midwest and fourth nationally for Business Friendliness in CNBC’s “America’s Top States for Business.”

• Indiana has the lowest business cost index in the Midwest and fourth lowest in the country, according to Forbes.

• Indiana has a state budget that preserves $1 billion in cash reserves. a AAA credit rating, and is one of only a handful of states not considering a massive general tax increase.

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67

WORKERS COMP

Profiting from Ergonomics Navigating toward healthier employees and healthier bottom lines.

By Danielle Gingrich, Media and Communications Specialist, La Porte Regional Health System

H

ave you ever been lost, or tried to give directions to someone who is totally lost? Rambling over a cell phone or feverishly explaining to a clerk at a gas station, sometimes someone asks, “where are you?” To which the reply often is, “if I knew, I wouldn’t be asking for directions.”

Simply put, if you don’t know from where you are starting, you’ll have a difficult time finding the best route to your destination. The same can be said when navigating the path towards treating or preventing workplace injuries. Just telling your employees to be careful cannot effectively solve the problem. Ergonomic assessments can serve as a compass.

Ergonomic assessments define job function from a physical viewpoint. This approach allows the opportunity to make positive changes based on the understanding of anatomy, physiology and the physics of stress from a job task. The assessment identifies risks, and many times provides cost-saving solutions to reduce or eliminate many physical stresses of a job.

According to the National Academy of Sciences (NAS), ergonomic hazards cause one million workers to lose time from work each year because of musculoskeletal injuries. As a result, the time it takes for these disabling injuries to alleviate or heal costs our economy an estimated $50 billion annually in compensation costs, lost wages and lost productivity. These lower back and upper extremity injuries are primed to increase as the nation’s workforce ages and more women enter the material handling and computer job fields. The good news is that the NAS agrees these injuries 68 68

are, in fact, preventable.

What does an ergonomic program entail? Ron Knickrehm, a Certified Ergonomic Assessment Specialist and Physical Therapist, has specialized in providing ergonomic services to corporate clients for more than 15 years. Certified to perform one- and two-day Functional Capacity Evaluations and pre-work screens, he specializes in lumbar and cervical spine, general orthopaedic rehabilitation and worker’s compensation.

His previous experience in new home construction, integrated with the science of physical therapy results in an efficient return to work process for the injured worker, he says. “I stress the workers’ responsibility to understand and implement safe work practices and the need to take responsibility for improving their own individual health,” Knickrehm says. “I expect all workers to perform to their highest ability and inform them when their physiological responses tell me they are not.”

Knickrehm, who offers ergonomic services through Workforce Health, an affiliate of La Porte Regional Health System, suggests employers should utilize ergonomic services that include: • Risk analysis (data and physical review) − Review OSHA 300 data, injury logs and physical assessment to develop trends and identify areas to best allocate resources for greatest impact in reducing risk.

• Job site analysis − On-site assessment of work areas for potential risk exposure and specifically assessing the requirements of particular work activities.

• Work task analysis − On-site assessment of a particular portion of a job to measure the physical demands and stresswww.buildingindiananews.com www.buildingindiananews.com

es of a particular work activity.

• Ergonomic safety assessment − Onsite review of potential risk areas, which includes observation and intervention specifically for body mechanics and lift techniques, including reporting of findings, recommendations and follow up.

• Injury prevention education − Information and training on body mechanics, lifting, injury prevention and other areas of safety specific to each facility.

• Essential function screening − Functional capacity lift testing to assess new employees and employees returning to work to help determine if they are likely to safely perform the essential functions of their job.

• Temporary modified duty program development − Develop, review and monitor the present policy and provide information on successful updating of your temporary modified duty program for your work culture.

• On-site physical therapy and return to work job coaching − Services provided on-site provide specific tools and products for preparing the employee to safely and effectively return to work.

• Functional job descriptions − Job de-

scriptions that identify essential physical functions and requirements to perform a specific job.

• Functional capacity evaluation − This medical test is performed to estimate an employee’s physical limitations and/or capabilities to perform specific tasks, benefiting the client in identifying where an injured worker is on the continuum of care, what the next steps to the industrial rehab program should be, a worker’s ability to safely return to a specific job and in cases of litigation.

Benefits of Ergonomics

The math is simple: ergonomic program + workplace = an improved, healthier bottom line for the employer. Fewer employees injured while performing daily job functions results in less time lost at work.

Overall team morale also will most likely improve as a company’s commitment to the health and safety of employees is demonstrated.

Just ask The New York Blower Company. Located in La Porte, the manufacturing company hired Knickrehm as their part-time physical therapist and ergonomist consultant in 1999. When he started, work-

er’s comp injuries for the company totaled nearly $1 million. Further, the 180 annual injuries resulted in approximately 1,200 lost workdays.

Working with the company’s employees, Knickrehm dropped IOSHA injuries to 30 with a total of 80 lost workdays. Annual worker’s comp costs totaled $30,000, a savings of $970,000 per year.

Ergonomic services are simply one component of ensuring healthier employees and healthier bottom lines. Employee safety and well-being is affected best when targeted as an overall approach. This leads to happier and healthier employees at home and at work, leading to increased productivity levels.

Workforce Health provides medium to large companies with a convenient and comprehensive plan to save money on healthcare costs and worker’s compensation. This includes occupational health, productivity management and wellness services, as well as newsletters, consulting services, an annual symposium and a discount on services to employers in La Porte County and the surrounding region.

For more information, visit www.myworkforcehealth.com.

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YOUR WELL-BEING

The Prevention

Profit Center Controlling worker’s compensation and health care costs are emerging as key drivers of U.S. competitiveness in the global marketplace.

W

By David Wellman

hen it comes to reducing health care and worker’s compensation costs, the best defense is a good offense. Whether it’s preventing injuries through safety and ergonomics programs, or building a healthier workforce through corporate and executive wellness programs, a proactive approach benefits the bottom line.

Research has documented the savings. “Generally, studies have shown that for every $1 a company spends on wellness programs, they get $3 back,” says Dan O’Flaherty, Vice President of Sales for TRALE, a Daleville-based provider of health risk assessment (HRA) systems.

While the recession put the brakes on many initiatives – globally, 24 percent of companies reduced wellness benefits because of the economic downturn, per San Francisco-based Buck Consultants’ 2009 Working Well survey – companies are again locking onto preventative care programs as a driver of cost-savings as the economy turns around. “We have seen a huge uptick in interest in the last six month,” says Tim Ross, Regional Director for Michigan City-based Working Well.

“A lot of companies are interested from a bottom-line standpoint.”

Among those not surprised by corporate America’s swift return to a focus 70

on preventative care is Ed Foulke, Partner in the Atlanta-based law firm Fisher & Phillips, who points out that wellness programs are one of the few remaining untapped profit centers for American businesses.

“When I first got into business, everybody had quality circles,” recalls Foulke, a former head of the federal Oc-

In the U.S. in 2009, incentives for participation in wellness programs averaged $163 per employee (up from $145 in 2008), with a median value of approximately $50.

Source: Buck Consulting

cupational Safety and Health Administration (OSHA). “And we had quality circles because the Japanese had quality circles.

It was all about improving quality and productivity so we could be profitable and competitive versus Asia.” But after 30 years, U.S. corporations have reached a point of diminishing returns, having both bolstered quality and wrung endless efficiencies out of labor, production and distribution. “Now what’s left to achieve cost savings?” Foulke asks. The answer: work-

er’s compensation and health care. These issues, he predicts, “will be moved up to the C-suite by necessity because companies are going to have to look at them in order to remain profitable. It will also help us keep jobs in the U.S.” The good news is that, according to Buck Consulting, the U.S. is ahead of the curve, with 77 percent of companies offering wellness programs, as compared to 64 percent across the entire globe. However, most companies – about two-thirds – report not having fully implemented their programs as of 2009. Adding to the difficulty of implementation is acceptance, or rather, the lack thereof. According to the 15th Annual National Business Group on Health survey by professional services firm Towers Watson (New York), the No. 1 wellness program challenge reported by employers is employees’ lack of interest or reluctance to participate in the program.

One increasingly popular tool companies are using to meet this challenge is the health risk assessment. HRAs employ a combination of lifestyle factors, family history and biometric testing (for example, cholesterol levels) to build an individualized wellness picture for each employee. It’s also become common to include “readiness to change” factors that measure how willing employees are to make lifestyle improvements. www.buildingindiananews.com

found that executives who underwent physical exams had 20 percent fewer health claims and lost 45 percent fewer workdays than those who did not.

But if U.S. companies have been slow on the uptake, overseas competitors have noticed. Executive screening programs are among the top five wellness program components in Africa, Asia and Canada, according to Buck Consulting. In the U.S., by contrast, companies are still stuck on immunization programs and gym memberships.

However, interest is growing.

“We have seen more interest in ex-

ecutive physicals recently,” Ross says.

Working Well began offering its own executive physicals program throughout Northwest Indiana about two years ago at the request of a president of an area company. “It can be customized to fit any company,” he says. “We have different packages for top and midlevel executives, or it can be based on a company’s size, etc. Executives who have gone through it have really been pleased.”

The examinations themselves are routine, if somewhat more comprehensive than the usual physical, he says.

“If a company wants to implement a smoking cessation program, they can look at the change factors and may find that the people in administration have a high willingness to change, but those in the warehouse have no plans to change,” O’Flaherty says. “If the company wants to get the most bang for its buck, it should direct incentives to the persons most willing to change.” At the same time, he adds, the change factors might also show a greater willingness among warehouse workers to try a healthier diet and exercise program, allowing the company to tailor its wellness program to the desires of its employees.

Getting participation by top executives can be difficult as well. Yes, they are busy, but having the CEO blow off medical appointments is guaranteed to fall into the “not helpful” category when trying to convince people throughout the rest of the organization that they need to take time out for their health needs. One answer can be found in executive physicals, company-paid medical sessions for top leadership.

Once largely associated with top-tier firms, executive physical programs have migrated into the health care mainstream. Still, fewer than one in four Fortune 500 companies (22 percent) offered executive physicals to the CEOs as of 2008, according to Towers Watson, despite longstanding evidence of their effectiveness: in 2002, the University of Michigan Management Research Center www.buildingindiananews.com

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“The hard part is getting everything fit to their busy schedule.” When companies sign up with the program, Working Well assigns one of its team members to the company; that person works with both company executives and supervisors of its clinics to schedule time for exams and tests. At the time of the exam, executives are met by a team member assigned to escort them wherever they need to be. Depending on the time of day, a continental breakfast or lunch may be provided. Business services, such as Internet access so executives can keep up with e-mail during any downtime between tests, are also provided. Once all the results are in, Working Well and the client arrange for a follow-up review and consultation session.

As companies seek to ways to reduce health care costs, more of what was once the purview of such executive programs is being encouraged more broadly across the organization. Among employers surveyed

by Towers Watson, nearly half – 46 percent – had financial incentives in place to encourage employees to complete a health risk assessment, while another 12 percent

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Top Global Wellness Program Elements

Source: Buck Consultants

were considering doing so. A quarter offered incentives to quit smoking, and more than one in four offered employees incentives to complete biometric screening, and for the completion of health coaching or disease management programs for those with chronic conditions. Fourteen percent incented not just executives, but all employees to get a health exam, and another 13 percent have it under consideration.

As insurance carriers lobby for big rate

increases, companies with well-established wellness programs are in better to shape to resist or moderate those hikes. “They can go back to the insurance carrier and say, we have a full-time wellness program, and we aren’t costing you as much as companies who have done nothing,” OFlaherty says.

“It’s a hot topic,” Ross confirms. “Companies have noticed the prevention side of things. And if you can identify and catch issues early on, it is always less costly.”

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GREEN & SUSTAINABLE

Geo

U

The largest closed geothermal energy system in the nation is becoming a reality in central Indiana.

“D

By David Wellman

rill, baby, drill” isn’t a phrase that one would normally associate with Muncie, Indiana, but for the past year, six Midwestern companies have been boring away at a rate of six 400-foot deep shafts a day on the campus of Ball State University. When they finish in June, they will have drilled 1,800 holes as part of the first phase of the university’s (ahem)

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groundbreaking geothermal system – the largest of its kind in the U.S. When complete, the system will boast more than 4,000 such wells, and will heat and cool nearly all of the 50-plus buildings on the 660-acre campus. University officials estimate that it will save $2 million a year as compared to the current, coal-fired system. However, while phase one will be up and running by the fall of 2011, work on the rest of the system is

contingent on funding.

Money for the first phase came from the state of Indiana, and was initially earmarked to replace the university’s aging, coal-fired boilers. Installed in the 1940s, these boilers had by the early 2000s emissions, capacity and condition issues which necessitated their replacement. There was just one small problem: buying new coalfired boilers, building a facility to house them and putting in all the necessary controls and emission control systems priced out at around $65 million, while the state had only agreed to provide, at most, $40 million.

“So we said, what do we do now? We don’t have $65 million,” says Jim Lowe, Director of Engineering and Operations, “But we had looked at all the other options, and we had talked about geothermal, so we asked, okay, how do we do that?”

Good question. Geothermal technology is nothing new, but a system big enough to service the entire Ball State campus would be beyond anything previously attempted. How far beyond? MEP Associates, the Eau Claire, WI-based consulting and engineering firm brought in by Ball State to examine the feasibility of such a system, lists 84 geothermal projects, including Ball State’s, on its Web site. The 9,000-ton Ball State system alone is nearly as large as all the rest of the firm’s geothermal projects combined.

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The system was such an order of magnitude larger than anything before that when MEP first tried to construct a computer model of the project, it blew up the modeling software. “We still can’t model the entire campus,” says Lee Tapper, Senior Mechanical Engineer and Operations Manager, Rochester, for MEP. “The software hasn’t been developed.” Instead, the firm had to go back to the software developer and, together, they devised a way to accurately model the project in sections.

Despite the difficulties, “we were very excited about the project,” Tapper says.

“We had been looking for the right project to take geothermal to the next level. It’s an

emerging technology from an implementation standpoint, and it’s crucial not just for Ball State or for us, but for the industry, that this gets done right.

“Ball State has been a great client,” he adds. “They understand we have to work through the development of the system because no one has done this before.”

One of the biggest challenges was simply drilling the thousands of wells needed.

“There isn’t anyone who can drill 1,800 wells in a reasonable amount of time,” Lowe says. The only answer was to team six contractors – three from Indiana and three from Minnesota and South Dakota – each of whom could drill a well, put in the

necessary piping, and refill the hole with grout at a rate of one well per day. Materials were standardized across all six drillers, and prior to starting operations, BWSU brought in an Indianapolisbased geophysical services company, Mundell & Associates, to conduct two-dimensional electrical resistivity testing, which provided a picture down to 250 feet. “That gave us a three-dimensional model for the drillers that’s been really accurate so far,” Lowe says. It also reduced the risk of unknowns snagging the drilling process, allowing the contractors to be more aggressive with their bids. “$30 million of this project is drilling holes, and if we can keep that down we can buy a lot more pipe,” Lowe says.

Some of that pipe presented a challenge as well. The system uses a combination of high density polyethylene (HDPE) pipe and ductile iron pipe. The latter is used in the hot water loop of the system because the HDPE pipe can’t handle the high temperatures. However, the connections between the pipes weren’t designed with a constant cycle of heating and cooling in mind. “So we had to work through that,” Tapper says.

Invisible System

Once all the wells are drilled and piping installed, everything will be covered back up, so that the underground elements of the system will be invisible beneath parking lots and athletic fields.

If something ever needs to be dug up for repairs, then it will be, Lowe says, “but I can’t imagine ever having to dig up high density poly pipe. I have no problem saying that’s good for 50 or 100 years.” The insulated ductile iron pipe should have an equally long lifespan, he says, pointing to carbon steel pipe the university has in the ground elsewhere that’s held up fine for 30 years so far.

With well work nearing completion, construction began in May on the new north district energy station building that will house the first two of the system’s 2,500-ton heat pump chillers.

The heat pump chillers, which can produce cold water as well as water heated up to 150 degrees, will arrive on campus this fall, with the energy station due to be completed in December. Work is also slated to start this fall on converting and connecting existing building on campus to the geothermal system. If all goes as planned, this piece of the system will go into operation in the fall of next year, allowing the university to shut down two of its four coal-fired boilers for good.

While Ball State’s geothermal system currently holds the crown as the biggest ever built, its success will likely mean that it won’t hold the crown for too long. “We are getting a lot of interest – but the majority are ‘wait-and-see,’” says Tapper. If Ball State’s experience proves positive, others will certainly follow.

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LIFELONG LEARNING

Learning Center The Indiana-Kentucky Regional Council of Carpenters improves its training and continuing education capabilities with a new, $5 million Indianapolis training center.

T

By David Wellman

he Indiana-Kentucky Regional Council of Carpenters (IKRCC) is moving into a new, high-profile training center along Interstate 65 in Indianapolis in June. According to Director of Education Todd Pancake, the new $5 million facility will both enable the IKRCC to better train apprentices and produce more qualified journeymen and act as a marketing tool for the multistate union organization.

Visitors’ first encounter will be with a “storefront” that demonstrates the capabilities of the group’s carpenters, floor coverers and millwrights. “When you walk in, it’s like walking into a construction site,” Pancake says.

“People will walk in and be able to see what we can do.”

Beyond the storefront entry are a number of classrooms and training areas which offer significant improvements over IKRCC’s previous facility. With about 560 apprentices in training and between 3,000 and 4,000 journeymen taking continuing education courses, “we had grown out of the old facility; this one is state-of-the-art,” Pancake says. For example, Indiana’s rapidly-growing wind power industry requires skilled technicians to build and mainwww.buildingindiananews.com

tain the huge wind turbines that now dot the state. The new training center includes an area featuring an overhead crane and a wind turbine to provide trainees with hands-on experience.

“We have tons of space for carpenters, and we have doubled the training area for our floor covering program,” Pancake adds. Everything in the new center is geared toward duplicating real life. “We have enough area now to make training as authentic to the job site as possible,” he says.

Dedicated classroom space and a computer lab have been added in order to make training more efficient. “We added two classrooms and computer lab so we can do all our technical training here instead of having to send people over to the Ivy Tech training center,” Pancake explains.

The new training center will provide fouryear apprenticeship programs for all three crafts. Upon completion of the program, apprentices get their journeyman certificate, as well as an associate degree in applied science.

IKRCC had begun moving equipment into the new facility in the second half of May, and plans to begin offering classes there starting this summer.

Courses to be offered at the new IKRCC training center in Indianapolis include: Carpentry • Advanced Bulkhead Construction • Barrel Ceiling Construction • Blueprint Reading • Concrete Forming Systems • Dome Ceiling Construction • Door Hardware Training Course • Door Hardware Certification Course • Interior Systems Layout • Interior Trim Class: • Rafters • Solid Surface • Stairs • Transit Level • Total Station • Total Station II Millwright • Certified Welding Inspector • GE Gas Turbine familiarization • Machinery Alignment Procedures • Millwright 16-Hour Safety • Precision Optical Alignment • Rigging Qualification Floor Covering • Armstrong Flooring Products • Forbo Certification • Shaw Training Course • Vinyl Heat Welding

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WELCOME CENTER Indiana500Tour.com kickoff activities in May included a showcase of vintage Model T cars in Richmond and a ceremony at the John T. Meyers Pedestrian Bridge in Lafayette.

Summer Drive A new tourism campaign invites Hoosiers and visitors to explore Indiana’s transportation heritage.

F

ive hundred miles of Indiana’s byways featuring transportation heritage, motor sports and nostalgic dining spots are being highlighted by a new tourism marketing campaign launched at www.Indiana500Tour. com in May. A collaboration between the Indianapolis-based Association of Indiana Convention and Visitors Bureaus (AICVB) and an immersive learning class at Ball State University, the “Indiana 500 Tour” will choose a different travel route throughout the state every year, with each route highlighting a special theme.

The 2010 theme, “Transportation,” features a circle of travel opportunities that include Indianapolis, Lafayette, Kokomo, South Bend, Fort Wayne, Muncie and Richmond. Featured regional locations include motor sports events, transportation-themed museums, drive-ins and diners, and historic sites. Overall, the Tour features 120 sites in more than two dozen northern and central Indiana counties. The 2011 Tour will focus on the southern part of the state.

The Indiana 500 Tour is the brainchild of Rep. Wes Culver (R-Goshen), who wanted to create an economic development opportunity for local communities as well as to feature some of the state’s travel treasures. More than a year of planning between the Ball State and the AICVB, with Rep. Culver as honorary 76

chair, has gone into the program’s development. The AICVB also has had the support of the Indiana Office of Tourism Development in the project. “‘Synergism’ is when the total effect is greater than the sum of individual parts,” Culver says. “The convention and visitors bureaus across the state could not accomplish separately what we can accomplish as a team and with the skills of the students and faculty at Ball State. By working together, we will tell visitors what Indiana has to offer, and we all will benefit. And not only will tourism grow, but so will other supporting businesses.”

While the 2010 theme will focus on the parts of Indiana that have most of the Hoosier state’s automotive heritage, northern and central Indiana, the 2011 theme will focus on Indiana’s early history and highlight primarily southern Indiana, Culver says. Each year’s tour suggestion will stay on the Web site and give Hoosiers and out-of-state visitors new trip ideas. Eventually, travelers to Indiana will be able to go to the site and find a number of themes and itineraries.

The tour officially launched May 11 at five locations throughout the state that are on the tour: Elkhart County (Amish Acres, Nappanee); Fort Wayne/Allen County (Cindy’s Diner, Fort Wayne); Kokomo/Howard County (Automotive Heritage Museum, Kokomo); Lafayette-West Lafayette (John T. Myers Pedestrian Bridge, Lafayette); and Richmond/

Wayne County (Old National Road State Welcome Center).

Local officials believe the campaign will appeal to Hoosiers as well as those visiting the state, and that it will have year-round appeal. “Even though we are launching the program during National Tourism Week, the Indiana 500 Tour is designed to go all year long, with many weeks having a special interest group promoted. For example, we may have Motorcycle Week, Recreational Vehicle Week, Bicycle Week, Antique Car Week, Senior Week, etc.,” Culver says. “It’s an opportunity to showcase Indiana to those groups who already are traveling the state and provide them with a new way of coordinating their trips.”

Those who travel parts of the Indiana 500 Tour can tweet about their experiences on a Twitter account, @in500tour, or follow a blog contributed by fellow travelers who travel the tour, in500tour.tumblr.com.

The creative materials, logo, creative, web site, GIS mapping and social media sites were developed by a team of 14 Ball State students from various majors. This immersive learning experience provided the students with a real-world opportunity to help shape a tourism economic development program.

In addition to faculty mentors, various convention and visitors bureaus throughout the state, which formed a steering committee on the project, provided professional guidance. www.buildingindiananews.com

MARKETING

Communities in Competition

Successfully driving economic development in your community requires leadership, follow-through and a ‘can-do” attitude.

O

By Leslie R. Rubin, Founder, Rubin Advisors Inc.

ver the past eighteen months numerous articles have been published discussing the need for job retention strategies, job creation strategies, infrastructure as an economic development driver, and the role of individuals in the economy. Those abundant words of wisdom, coupled with political speculation, have stimulated discussion about the best way to affect a sustained economic turnaround, to increase employment and to ease the burden of insufficient tax revenues in the midst of increased demand for public services.

The distress is amplified as local communities are challenged to compete for fewer jobs in an increasingly competitive environment. “Creative thinking” is typically proffered as a solution to the immediate problem, but in reality, success is less about a creative process and more a question of understanding what you have and how best to use it.

It Starts With Leadership

Local leadership has to recognize and agree upon the need for action and then take steps to implement an action plan that may span years. Local government does this repeatedly throughout any given week, so the process is well-known. However, what if leadership is distracted from moving forward with an action plan because community cri-

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ses demand response? In the public sector, particularly local government, lower tax revenues does not eliminate the need for (or production of) services, so tough decisions have had to be made.

One community mayor recently indicated to us that he had to choose between supporting a police department and a fire department while admitting that both represented critical infrastructure. It was quite reasonable for this mayor to be focused on the moment-to-moment challenges of his community and not be able to articulate the vision for his community going forward. Yet when questioned about whether he had considered some alternative sources of funding and different approaches to meeting the needs of his citizens, it became apparent that he was seeing the challenge from within and could not step outside to get a different perspective.

Getting another set of constructive/ instructive eyes on the issue will often lead to options to the problem. Simply talking to others, which is exactly what the mayor in question achieved, will help. Once a leader’s phone call-induced tachycardia begins to subside, leadership can begin working on tomorrow’s vision in a focused manner.

Sell to Your Community Strengths

Every community has assets that can be leveraged to create a vision of what can

be. When this knowledge is coupled with the right resources and timed well, the vision that unfolds and materializes appears natural.

Technology and research facilities positioned around centers of knowledge, such as colleges and universities, are an easy example to call upon. Logistics parks located at the confluence of highways are also logical.

The challenge is to not get caught up in the latest growth market trend. During the late 1990s and early 2000s, it was interesting to observe how many different communities throughout the country believed they were the next area to be a “technology” or “biotechnology” corridor. Most were caught up in the “me too” syndrome.

Another pitfall to avoid is to be solely aligned to a specific industry. The state of Indiana’s heavy dependence upon the automotive industry for jobs and tax revenues is apparent in the continuation of layoffs in spite of an apparent “recovery” being under way.

Given the paradigm shift to a global economy, the progression from older to newer industries is guaranteed to not be linear.

This is why a review of assets (tangible and intangible) is important. Assets can and often do serve multiple purposes. A rail line can move freight and people. People with an aptitude for production can produce any sort of widget, so long as there is a willingness to continue to learn.

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“Can Do” and Follow Through

Nothing is more irritating to an economic development consultant than hearing “we don’t do that or we can’t do that” when the request is reasonable and legal. Sometimes the response is triggered because of a misguided perception of what is being asked and at other times the response is simply a refusal to change. This experience fortunately is rare and not unique to Indiana.

Consultants are tenacious and will find a way to overcome a negative attitude or seek alternatives. If a community wants to compete, it will need to present an enthusiastic first line of contact. A “can do” attitude will always result in a positive response and puts the economic development deal one step closer to reality.

The next most critical part is following through on expectations created. Communities often request details of a proposed project that includes investment, jobs to be created and wages. They also want some assurance (albeit unspoken) that the information will not vary drastically from one conversation to the next. The underlying rule is that numbers which vary significantly will cause confusion. Confusion begets hesitation. Hesitation causes the economic deal to fall apart.

Companies have a similar expectation. If a community says it can obtain a variance for the site in question or obligate a resource such as tax abatement, they want to know the obligation is real. Putting the obligation in writing helps alleviate concern about a commitment but it is an incomplete indicator of future behavior. Creating a realistic timetable for approvals, discussing the process details, returning phone calls promptly when questions do arise, and providing updates will solidify the relationship as one based on action instead of talk.

What is being described here is good customer service. It is obvious but can be easily overlooked in government. Tough economic times make customer service even more important as a tool of government to distinguish the community from its competitors.

Target a Need

Economic incentives are no longer a secret. Thanks to the marketing efforts of states and local communities, and to the contact that economic development consultants have with companies, most senior management has at least heard of economic incentives. So how can a community differentiate itself from competitors?

Remember that tools do vary somewhat from state to state and more from region to region. The political bias toward economic assistance, layered on top of the state’s existing tax structure, influences how economic assistance is structured within a given state and then used locally.

Economic incentive tools will offset a company’s project cost through different channels when compared from state to state. If a community’s competitors are within a single region that has similar tools, then the “can do” attitude and customer service factors already identified become more important. It is at this point that truly listening to the potential customer is critical. If project timing is the critical issue for the company, relieve the pressure by offering to control the approval process. Add a guarantee if necessary. If finding the right people is important, then offer to provide resources to minimize the intake and screening responsibilities of the prospective company.

Each community’s economic development progress will be unique.

The assets that are leveraged to reinvigorate a given community will vary as will the interpretation of how to leverage those assets. Talking, sharing and comparing will broaden the options but it will ultimately require choices being made. Ultimately, the responsibility rests with leadership to create and sell the vision, to form a plan of action and to carry it through to success.

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COMMUNITY SPOTLIGHT

Guard Growth A major expansion is proposed for the Indiana National Guard’s premiere training and mobilization center, Camp Atterbury.

By Sgt. David Bruce, Camp Atterbury Joint Maneuver Training Center Public Affairs

I

ndiana Governor Mitch Daniels unveiled plans in April for a $105 million expansion of Camp Atterbury Joint Maneuver Training Center in Edinburgh which would create 800 jobs and nearly double the number of soldiers who could be trained at Camp Atterbury at one time.

The Joint Maneuver Training Center, established in 2003, trains soldiers prior to deployment. To date, In support of the Global War on Terror, Camp Atterbury, in partnership with the 205th and 189th Infantry Brigades, have mobilized over 50,000 and demobilized over 30,000 soldiers, sailors, and airmen for duty in the United States and overseas.

The expansion is part of a land exchange deal with the Indiana National Guard, the Indiana Department of Natural Resources (DNR) and the Indiana Department of Corrections.

The proposed deal releases approximately 1,200 acres of DNR land north of Camp Atterbury in exchange for over 2,000 acres of Department of Corrections land near Putnamville. The area transferred to the National Guard was once part of the original cantonment area of Camp Atterbury established in 1942. The land in question was acquired by the DNR in 1969 and utilized as a fish and wildlife area to provide fishing, hunting and other outdoor recreational opportunities to the public.

“Today is the culmination of a remarkable process,” said Daniels during a ceremony held to announce the plans at the Atterbury Fish and Wildlife Area. www.buildingindiananews.com

Indiana National Guard Commander Maj. Gen. Marty Umbarger gives local news reporters information just after Indiana Governor Mitch Daniels’ announcement of plans to expand the Indiana National Guard’s Camp Atterbury Joint Maneuver Training Center (U.S. Army photo by Spc. John Crosby)

“Camp Atterbury, or as we think of it, Atterbury Muscatatuck, will be expanded dramatically in its capacity to train our military units,” Daniels said. “They will be able to train here, triple the number of brigade combat teams that it can presently.”

The Indiana National Guard will use the land to build a logistics center, administration buildings and housing for soldiers training at Camp Atterbury. Additionally, there are plans to expand the railroad capacity of Camp Atterbury to meet its mis-

sion requirements. This would also allow for relocation of facilities bordering the Camp Atterbury airfield. Those structures are presently located in areas designated aircraft safety zones.

This expansion of Camp Atterbury is expected to generate $105 million in funded construction. Initial construction will expand existing railroad capabilities, and create two training complexes, a child development center and two training support brigade headquarters. Furthermore, it 79

is anticipated that 750 military and 50 civilian jobs will be created for these training brigade headquarters. The construction and soldier support services will create muchneeded job opportunities in the local communities.

“We will be serving the national defense in a larger way than before and we will be boosting the Indiana economy in a very direct fashion,” said Daniels.

The remaining DNR facilities, consisting of 5,000 acres, will remain unaffected.

This land includes ten lakes and a public shooting range opened in 2006, Johnson County Park, including Whispering Pines Golf Course, and the Atterbury Job Corps.

“In order to make room for this expansion, it was necessary to swap land here for land somewhere else,” said Daniels. After exploring several opportunities, land that was part of the Indiana Department of Corrections was identified for the exchange.

The DNR will receive more than 2,000 acres around the Putnamville Correctional Facility. The land is a split of woodland and fields and includes Deer Creek and two lakes. White-tailed deer and wild turkey are the primary game species for hunters in the area.

“The acres we are gaining, by any measure, are dramatically better than the

ones being swapped here,” added Daniels.

The exchange itself is more complex than simply transferring a deed.

The U.S. Fish and Wildlife Service and National Parks Service have yet to approve the deal since they were involved with the original transfer of land in 1969.

“The U.S. Fish and Wildlife Service has an important oversight role for this proposed land exchange since the Atterbury Wildlife Management Area was partially purchased with federal funds,” said Tom Melius, Regional Director of the U.S. Fish and Wildlife Service. “The multi-agency process involving the Indiana National Guard, National Parks Service, Indiana Department of Natural Resources and the U.S. Fish and Wildlife Service has been cooperative to date based on mutual respect for each party’s interests.

Next Steps

“The proposed replacement property at Putnamville has many outstanding wildlife and recreational features that will be reviewed as part of the process to ensure that the interests of the sportsmen and women of Indiana are well served by this exchange,” added Melius.

The next step in the process is to conduct scoping meetings to determine the

impact of the proposed land exchange on the environment and to seek input from the affected communities. Work is set to begin this summer on property appraisals, land surveys and title work; complete environmental reviews; a property management plan for the Putnamville site; and deed amendments that are subject to the approval of the National Park Service and the U.S. Fish & Wildlife Service. Timelines will be clearer at the conclusion of the Environmental Assessment process that will include the two public meetings a written comment period. If the proposal is found to be acceptable to the two federal agencies and meet all requirements, a FONSI (Finding of No Significant Impact) will be issued, the deeds amended, a Federal grant would be approved, and the land exchange potentially could be completed this fall.

“It is a marvelous outcome for Hoosiers and, we know and believe, for the national security of America,” said Daniels.

“We’re excited about playing a larger role in our national defense. We’re really excited about growing the Indiana economy and the flow of money that will come here too.

We’re gratified to know that future generations of Hoosiers have yet another beautiful expanse of our natural environment to enjoy.”

Real Estate Marketplace 45TH ST. PROPERTIES LLC 2846 45th St S-b Highland, IN 46322

MUNSTER, IN FOR LEASE

Phone: 219-922-4554 Website: www.thepavilionon45th.com Broker Name: Marty Shreibak Email: mshreiback@icandm.com Square Feet Available: Option#1 21,300 sq. ft., Option#2 Outlot 16,000 sq. ft. Option#3 Outlot 3.5 acres Property Type: PUD Description: On 45th St, 1/2mile from US41, this location is Prime for Retail/Office with stoplight access. Great Signage and exposure. Outlot 1 on corner facing intersection.

400 East State Highway 212 400 East State Highway 212 Michigan City, Indiana 46360

FOR SALE

Phone: 219-879-7985 Website: ICREX Listing ID: 2067124 Broker Name: Commercial Investment Transactions, Inc. Email: citi1@earthlink.net Total Land Size: 9 Acres Square Feet Available: 97,362 Property Type: Industrial/Manufacturing, zoned M-2 Manufacturing Description: 97,362 sq. ft. of which 92,362 sq. ft. manufacturing with office and mezzanine of 4,460 sq. ft.

containing office and storage. The improvements are in two structures built in 87 & 89. Broom clean with attractive finish located within a small industrial park. Ceiling heights 18 to 23 feet. Truck docks, Bldg #1: 3 dock height 1 drive in, Bldg #2: 3 dock height. Airport, 180, 194, Michigan State line within minutes of location.

List Your Property For Sale or Lease

and reach 60,000 readers in every issue of Building Indiana.

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MICHIGAN CITY, IN

Contact us at 219-226-0300 or 317-632-1410 or email Chrischelle@ buildingindiananews.com. www.buildingindiananews.com

Commercial & Industrial Real Estate Professionals Directory BROKERS

Darwin Realty & Development Corporation 970 N. Oak Lawn Avenue, Suite 100 Elmhurst, IL 60126 (630) 782-9520 • Fax (630) 782-9531 www.darwinrealty.com George J. Cibula, SIOR gcibula@darwinrealty.com

Over thirty-five years serving corporate real estate users and investors, specializing in: industrial brokerage services, management services, and construction management services.

We have a proven relationship with professionals in the financing, environmental, legal, and relocation services fields. We currently manage a portfolio in excess of 6,500,000 square feet, consisting of 122 buildings with over 522 tenants in 32 different cities managed by 60 different ventures ranging in size from 1,600 to 500,000 square feet.

Harrison County Economic Development Corporation

ECONOMIC DEVELOPMENT

310 N. Elm Street Corydon, IN 47112 Phone: (812) 738-2137 • Fax: (812) 738-6438 Darrell Voelker dvoelker@hcedcindiana.org www.hcedcindiana.org In the western part of Metro Louisville, Harrison County, IN offers a rural setting with small town charm and all the amenities of one of the nation’s largest cities. Only 30 minutes from the city center and the International Airport and UPS World Port Air Hub, this highly accessible business community is The Ideal Location!

Burke Costanza & Cuppy LLP

LEGAL

9191 Broadway • Merrillville, IN 46410 (219) 769-1313 • Fax (219) 769-6806 156 Washington Street • Valparaiso, IN 46383 (219) 531-0134 • Fax (219) 769-6806 www.bcclegal.com Connie Skozen, Business Manager skozen@bcclegal.com Burke Constanza & Cuppy LLP is a full-service law firm providing legal services in the following areas: civil litigation, corporate matters, real estate, trusts, wills, estates and probate, family and divorce law, mitigation and arbitration, ERISA, and employment law. BCC has been voted Best Law Firm and Best Law Firm for Estate Planning by the readers of Northwest Indiana Business Quarterly.

Coming September/October 2010:

The Contractors, Subcontractors, Architects, Design/Build and Build to Suit Directory Contact: chrischelle@buildingindiananews.com www.buildingindiananews.com

Latitude Commercial Real Estate

BROKERS

2342 Cline Ave. Schererville, IN 46375 Phone: (219) 864-0200 • Fax: (219) 864-4144 www.latitudeco.com Aaron McDermott, CCIM aaron@latitudeco.com Latitude Commercial is a full service Commercial Real Estate brokerage firm specializing in Northwest Indiana and the South Chicago Suburbs. Local Tenants to National Developers have benefited from our expertise by consulting us with their commercial real estate needs. When you select Latitude Commercial as your representative you get our Chicagoland area expertise along with worldwide marketing and networking ability.

Michigan City Economic Development Corporation

ECONOMIC DEVELOPMENT

2 Cadence Park Plaza Michigan City IN 46360 (219) 873-1211 • Fax (219) 873-1595 www.mc-edc.com John Regetz, Executive Director johnr @mc-edc.com The Michigan City Economic Development Corporation makes “taking care of business” our only business. Our services, programs and one-on-one assistance clearly demonstrate our commitment to providing the optimum business environment – a place where commerce can prosper and grow. The MCEDC offers many services, including site selection, speculative building development, tax abatement and incentive assistance, which may be of interest to your clients.

Hoeppner Wagner & Evans LLP

LEGAL

1000 East 80th Place, Twin Towers South- 6th Floor Merrillville, IN 46410 (219) 769-6552 • Fax (219) 738-2349 103 East Lincolnway, Valparaiso, IN 46383 (219) 464-4961 • Fax (219) 465-0603 www.hwelaw.com William F. Satterlee, III, Managing Partner, wsatterlee@hwelaw.com We are a law firm with offices in Merrillville and Valparaiso. Our client base is diverse and out clients range from individuals to national and worldwide businesses. Our areas of practice are Business, Labor & Employment Law, Estate Planning, Probate & Tax, Litigation, Trial and Appellate, Alternative Dispute Resolution, and Real Estate (commercial development, land use, and zoning).

MAINTENANCE

The American Group of Constructors 5020 Columbia Ave. Hammond, IN 46327 (219) 937-1508 • Fax (219) 937-1512 www.tagconstructors.com

EOT Crane Repair Group: Tag offers new Crane Installation and 24/7 Emergency Repair.

Structural Inspections and Maintenance.

Concrete Specialties Group: Epoxy Injection, Waterproofing, Specialized Chemical Grouting, Food Grade and Chemical resistant coatings. Secondary Containment for chemical storage and Concrete work/slabs/walls. For further information please contact Rick Dyer Manager of Sales and Marketing. Mobile 219-313-9123, rdyer@tagconstructors.com 81

the

LastWord

opinion page Powering Indiana Jobs

Facts and dollars show the benefits of Northern Indiana’s energy infrastructure

A

By Guy Ausmus, Senior Vice President, Customer Engagement, Northern Indiana Public Service Co.

t the recent Build Indiana summit in Hobart, speakers returned to a common theme: “How do we make Indiana more attractive for business development?”

The Real Estate Development panel spoke to this challenge succinctly: “Taxes, labor, utilities – it all boils down to facts and dollars.”

Access to reliable and affordable energy is a key consideration for businesses looking to relocate and expand. That’s why NIPSCO has been redoubling its efforts to provide reliable, environmentally responsible and affordable energy to support job growth and economic development across northern Indiana. In 2010, NIPSCO will invest more than $200 million in generation fleet and service infrastructure to provide the reliable service customers need, and extend programs to help customers manage energy use and lower bills. And the company continues to partner with economic development teams across the state to support new and expanding businesses.

Granted, growing jobs in today’s environment is a challenge, but northern Indiana and NIPSCO have a great story to tell. Consider these key “facts and dollars” data points: 3 NIPSCO customers enjoy the lowest natural gas bills in Indiana. (You can check

this out at the Indiana Utility Regulatory Commission website, www.iurc.gov.) One reason costs are low is that NIPSCO has access to all of the nation’s major natural gas supply basins via connections with six major interstate pipelines. That supply access, coupled with low distribution costs, yields a low delivered cost to our customers.

3 When you add electricity to the mix, the northern Indiana market again compares

favorably with Indiana and the United States as a whole. In fact, according to the IURC, energy customers in Northwest Indiana (where NIPSCO provides both gas and electric service) have the second-lowest combined total gas and electric bills among the 10 largest municipalities in Indiana.

3 To put those numbers in perspective, according to the U.S. Department of Energy, Indiana has the 12thlowest average electricity costs in the nation, well below the national average.

We know energy is only one part of the economic development picture.

Building Indiana requires a multifaceted approach that includes skilled labor, favorable business climate, reasonable taxes, good logistics, and low input costs.

It’s truly a team effort, and NIPSCO is proud to be a part of the northern Indiana economic development team. Reliable and affordable energy. Jobs and economic development. Energy efficiency and customer service. These are the “facts and dollars” that matter to us and our customers – and they matter most to us.

The opinions expressed in this article are the views of the authors. We welcome your response.

If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.

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www.buildingindiananews.com

It’s time for

responsibility.

Responsibility. It’s become a scarce commodity in recent years. Careless mistakes, improper planning, and simply not doing things right the first time have somehow become acceptable.

But seemingly overnight, a call to return to responsibility has been sweeping across America. From corporate boardrooms to local public bodies, to elected officials and community leaders, there is a renewed expectation for all of us to step up and act responsibly.

We agree. We’re the Indiana, Illinois and Iowa Foundation For Fair Contracting and being responsible is what we’re all about. Log on to learn more at www.iiiffc.org.

6170 Joliet Road Suite 200 Countryside, IL 60525 815.254.3332 www.buildingindiananews.com

www.iiiffc.org

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