JANUARY/FEBRUARY 2012
Reaching for
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Foreign Investment 40
Construction
Visualizing Success 49
Green & Sustainable Solar Revolution 58
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CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher/Editor Andrea M. Pearman andrea@buildingindiananews.com
One of the keys to success in education and job training is simply having the basic tools to prepare students and job-seekers for the future. Once upon a time, that meant little more than having a pencil and a good attitude, but times have changed. That’s why it was wonderful to see news come across my desk about work our local United Way has done to get today’s tools in front of people who needs them. The Lake Area United Way partnered with Net Literacy and the Indiana Association of United Ways to distribute 156 updated computers to 13 community organizations for use in job training and literacy initiatives. For those of you who haven’t heard of Net Literacy, it was founded in 2003 by a then-8th-grader from Carmel, Daniel Kent. With the help of student volunteers, Net Literacy refurbishes and redistributes old computers. Now based in Indianapolis, Net Literacy has donated nearly 13,000 computers to schools, libraries, and other nonprofits in 17 counties in Indiana, and over 2,000 students have given more than 200,000 hours of voluntary service to their communities. In most cases, the computers were sorely needed. Gloria Gregory, site director of United Neighborhood Organization’s Martin Luther King Center in East Chicago, said the donated computers will allow her to re-open a computer lab which was closed because all their existing computers were either outdated or inoperable. Next time you upgrade the computers at your office, think about who might be able to benefit from those “old” machines. In the long run, one of those beneficiaries may well be you, by helping to create a smarter and better-trained workforce.
Vice President, Business Development Chrischelle Schmidt chrischelle@buildingindiananews.com Director, Business Development Leigh Ann Flora leighann@buildingindiananews.com Director of Advertising Liza Hilliard liza@buildingindiananews.com Senior Writer David Wellman dave@buildingindiananews.com Creative Director Rebekah Hendricks rebekah@buildingindiananews.com Special Projects Coordinator Jen Labriola jen@buildingindiananews.com Director of Events Jo Sutton kristin@buildingindiananews.com Director of Creative Media Sumer Rex sumer@buildingindiananews.com Director of Communications Cindy Hunt cindy@buildingindiananews.com Accounting Lindsey Andershock la@buildingindiananews.com INDIANAPOlIS OFFICE Business Development Manager Lee Ann Richardson leeann@buildingindiananews.com 888.226.0330 WARSAW OFFICE Business Development Manager Julie Monteith julie@buildingindiananews.com 888.226.0330
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Subscriptions: Standard rates: $25.95/year Single copy price: $6.95 Copyright ©2011 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. 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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Better Health is Everything.
Of all the Northwest Indiana institutions, Methodist Hospitals attracts the most complex cases across a wide range of specialties. Methodist Hospitals has been the Northwest Indiana leader in high level, complex acute care since 1923. From our award-winning Women’s Services program and our Neuroscience and Oncology Institutes, to our growing cardiovascular program, top-flight emergency services, Spine Care Center, Bariatric ReStart Center of Excellence, and Breast Imaging Center of Excellence, Methodist consistently sets the standard for specialty care in the Region. For example, Methodist is the first Northwest Indiana hospital with advanced 3D mammography technology. Our dedicated physicians, nurses and staff also deliver unmatched excellence in a wide range of inpatient and outpatient services, from orthopedics and behavioral health, to rehabilitation and home health services. We also offer state-of-the-art diagnostic techniques, and innovative programs in bloodless medicine and wound care. In short, maintaining the highest standards of care is what leading the way to better health is all about.
Let Methodist Hospitals help you f ind the right physician for you and your family. Visit www.MethodistHospitals.org, or call 1-888-909-DOCS (3627). 888-909-DOCS (3627) METHODISTHOSPITALS.ORG
NORTHLAKE CAMPUS
Leading the Way to Better Health MIDLAKE CAMPUS
SOUTHLAKE CAMPUS
Contents JANUARY/FEBRUARY
2012
E V E RY I S S U E
04 08 09 22
Publisher’s Desk Contributors
32
Business Buzz
D E PA RT M E N T S
34 46
People News
BEING PRODUCTIVE Leadership: The Next Generation
CONSTRUCTION Just What the Doctor Ordered
E X P E RT A D V I C E
26 28 30 32
49
STATE OF THE INDUSTRY Training: An Investment in People RULE OF LAW Civic Virtues SAFETY ZONE Safety Never Stops
58
54
THE BOTTOM LINE Indiana in the Black
56
F E AT U R E S
24
36 40 42 44 6
PHOTO FEATURE • Contractor, Hospital Boost Breast Cancer Awareness • Luncheon Recognizes Entrepreneurial Excellence • Nonprofit Receives $4,000 Donation • Credit Union Launches YearLong Anniversary Celebration COVER STORY Hitting the Books MASS PRODUCTION A World of Investment SMALL BUSINESS SPOTLIGHT A Scrappy Success FACTS & STATS Education Statistics
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58
49
62 64 66 70
CONSTRUCTION Visualize the Savings
REAL ESTATE Northern Movement
LOGISTICS A Heartbeat Away
YOUR WELL-BEING Wake Up, Sleepyhead
GREEN & SUSTAINABLE Indiana Sunrise
WELCOME CENTER Room Resurgence
MARKETING Building A Better Event
ECONOMIC DEVELOPMENT Powered By Tech
THE LAST WORD The Advantages of Re-Training Older Workers
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www.buildingindiananews.com
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Contributors KEVIN COMERFORD Kevin Comerford is Director of Education for the Construction Advancement Foundation of Northwest Indiana (Portage). He is responsible for developing educational programs and
seminars, and also works with local high schools and universities to promote career opportunities in the building trades and with contractors. 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. PETE DOHERTY Pete Doherty is owner of Doherty Images, LLC.
He is an accomplished scenic photographer, in addition to providing commercial photography to a variety of northwest Indiana clients, including the Northwest Indiana Forum, Lakeshore Public Television and Purdue University Calumet. Doherty retired from Citizens Financial Bank after 32 years of service. He is a graduate of Calumet College of St. Joseph with a Bachelor of Science in Management and Economics. In 1995, he was awarded Citizen of the Year by the Munster Chamber of Commerce. ANGIE TSIKOURIS Angie Tsikouris is Director of Marketing at Spine Care Specialists (Munster). Spine Care Specialists is a practice dedicated solely to the treatment of the spine. It emphasizes effective and comprehensive spine care. Tsikouris is a Purdue University West Lafayette graduate. She is a CASA volunteer and a member of the Munster Chamber of Commerce. DAVID A. WARD, SR. David Ward is Founder and President of Safety
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Operations at Safety By Design Consultant Services (Mokena, IL). Ward has a Bachelors of Science Degree in Occupational Safety from Columbia Southern University and served more than 33 years with OSHA and the Departments of Labor and Justice prior to founding his own firm. Safety By Design has an extensive field of highly trained and experienced safety and environmental consultants across the United States. For more information, visit www. sbdcs.com JULIE YOWAYS Julie Yoways is Division Manager at ESW Inc (Crown Point). A 22-year veteran of the company, she previously held the position of Information Technology Manager & Instructor. ESW, Inc is an industrial training company which provides customdesigned training programs to accomplish the training objectives specified by our clients. ESW is also a technical resource company that provides its customers with solutions to a variety of training, technical staffing and management problems.
www.buildingindiananews.com
BUSINESS BUZZ
Cigar Event Returns to Indiana for Third Year
T
he Midwest Smoke Out returns to The Venue at Horseshoe Casino in Hammond on April 19 to offer cigar enthusiasts from around the country a night of premium cigars, fine spirits and wines, gourmet foods and more. 2012 marks the third year that The Midwest Smoke Out, the largest cigar show and exhibition in the Midwest, will be held in Northwest Indiana. Created and produced by Diversified Marketing Strategies (DMS), which also publishes Building indiana, this year’s show will feature more than 14 complimentary cigars from top suppliers in the industry. Just 2,000 tickets will be available for the Midwest Smoke Out and Jo Sutton, Diwww.buildingindiananews.com
rector of Events at DMS, expects the event to sell out well in advance. Tickets are $150 each and include a coupon book good for more than 14 free cigars with a total retail value of over $150, so attendees get their money back in cigars alone. There will also be sprits, wine and beer tastings, gourmet foods to sample and luxury cars and gifts on display. And for the second straight year, the ticket price also includes a oneyear membership (or renewal) to Cigar Rights of America (CRA), a $35 value. The Smoke Out has received rave reviews in national publications for the past two years, and last year brought together over 2,000 cigar aficionados including international cigar executive Carlito Fuente, President of Fuente Cigars.
“This event has really become one of the premiere events in the cigar industry,” Sutton says. “It has totally surpassed our expectations, our vendors’ and sponsors’ expectations, and the expectations of all the attendees.” A limited number of luxury suites are also available, as are corporate packages and group discounts, Sutton adds. “The Midwest Smoke Out is a great opportunity for businesses looking for something different to offer as a token of appreciation for clients or employees,” she says. For more information on tickets, suites, or sponsorship and vendor opportunities, visit www.midwestsmokeout.com or call Jo Sutton at 888-226-0330. 9
sion of Potash’s North American operations. Hammond officials say the transfer facility will pave the way for an additional $130 million of investment in the region.
BUSINESS BUZZ
Northwest Fertilizer Giant Investing $64 Million in Hammond The world’s largest fertilizer producer, Potash Corp., will locate a major rail transfer facility at Hammond’s Gibson Yard. The Saskatoon, Canada-based company will invest $64 million to build the 136,000-square-foot transfer facility. Additionally, the Indiana Harbor Belt Railway will spend $9 million to lay track and build facilities to service Potash Corp., and Hammond will spend $5 million for demolition and other work. The project is expected to create about 285 temporary construction jobs and 25 permanent ones. The investment is part of a multi-year, $7.5 billion expan-
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EPA Provides $2 Million for Gary Projects The U.S. Environmental Protection Agency has approved $2 million in funding for a pair of habitat and shoreline improvement projects in Northwest Indiana. The projects were selected from 44 proposals totaling almost $25 million, which were submitted in response to a challenge EPA issued in August to encourage federal agencies to sign up unemployed workers to implement restoration projects in federally-protected areas, on tribal lands and in Areas of Concern in the Great Lakes Basin. To qualify for funding, each project is required to provide jobs for at least 20 unemployed people. The U.S. Geological Service will receive $994,350 for a project to expand fish and bird monitoring at beaches on the Great Lakes, while the City of Gary received $1 million to expand the ecological restoration and job training underway there as part of the $28 million Marquette Park initiative. “This additional investment will enable us to get to our objectives more rapidly and continue to create job opportunities for Northwest Indiana,” said Bill Hanna, Executive Director of the Regional Development Authority, which is providing funding to the Marquette Project. “We appreciate the support and recognition of value in these projects by the U.S. EPA and First District Congressman Pete Visclosky. You really have to see what’s happening to believe it. It is truly transformational.”
Study: Great Lakes Shipping Industry Supports 227,000 Jobs A year-long study of the economic impacts of the entire Great Lakes-St. Lawrence Seaway navigation system found that maritime commerce supported 227,000 jobs; contributed $14.1 billion in annual personal income, $33.5 billion in business revenue, and $6.4 billion in local purchases; and added $4.6 billion to federal, state/provincial, and local tax revenues. Additionally, marine shipping saved companies approximately $3.6 billion per year in transportation costs compared to the next least-costly land-based alternative. One of Indiana’s three ports, the Port of Indiana-Burns Harbor, is located on Lake Michigan. There, year-to-date shipments were www.buildingindiananews.com
up 30 percent through the first three quarters of 2011, and the port was on pace for its largest annual volume in five years.
Softball Tournament Returning to NWI
DLZ Named CM for Airport Project DLZ has been awarded the overall construction management of the railroad relocation and highway bridge construction for the Gary Chicago International Airport Authority (GCIAA). The project is part of the airport’s Runway 12/30 Extension Project which will allow it to maintain existing, and provide expanded, service. As the construction manager, DLZ coordinates the day-today activities of the many contractors involved, communicates
Building Company Selects Crown Point for New Office ClarkDietrich has signed a lease to occupy 4,161 square feet of the 21,448-square-foot One Professional Center in Crown Point. The new office location comes after the formation of a joint venture between ClarkWestern and Dietrich Metal Framing. After plans to close seven Dietrich Metal Framing facilities, including the one in Hammond, were announced, the engineering division of the company needed new office space. The company decided upon Crown Point because of its business friendly atmosphere and location. - continued on pg 12
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BUSINESS BUZZ
Approximately 10,000 players, coaches and family members will travel to Northwest Indiana to participate in the 2012 National Softball Association Girls Fast Pitch “B” World Series hosted by South Shore Sports Promotions. The tournament will take place the week of July 19th - July 26th, with the games being held throughout the region. South Shore Sports Promotions has locked in the Association’s 2014 tournament as well. The event is significant to local economic development. Lake, Porter and La Porte Counties all benefitted from the 2009 tournament events. “The tournament’s opening ceremonies held in Crown Point’s downtown area allowed local restaurants to have more business on a Monday night than every Friday night during the month of July,” said Mayor David Uran.
with Program Manager AECOM and GCIAA on project status and provides an organizational structure that will, in conjunction with the other stakeholders, ensure that quality, schedule and budget expectations are met. The project entails three railroads, and multiple utilities and business owners. In addition to DLZ, key sub-consultants include Jacobs and ILG Consulting, LLC. This phase of the Runway 12/30 Extension Program consists of five construction contracts relocating the Canadian National Railroad corridor at the west end of runway 12/30. Specific improvements include two railroad bridges, grade separation, dynamic compaction of a dump site, vertical drains, track grading, embankment, retaining walls, wetland mitigation and concrete box culvert. Construction has begun and this phase of the construction program is scheduled for completion in Fall of 2013.
Building
Innovation
BUSINESS BUZZ
into Everything We Do.
ClarkDietrich was represented by David Lasser of Commercial In-Sites and Daniel Knudson of Daum Commercial. The Landlord, The Braeside Group, Ltd., was represented by Aaron McDermott, CCIM of Latitude Commercial Real Estate
HVAC Supplier Gains WBE Certification The Indiana Department of Administration, Minority and Women’s Business Enterprise Division has certified Mechanical Concepts, Inc., as a Women Owned Business Enterprise (WBE). Mechanical Concepts will now be eligible for state contracts as well as access to exclusive training and networking opportunities. They were certified in the expertise of plumbing construction services and heating, ventilation and air circulation. Mechanical Concepts specializes in all facets of design, engineering, installation, service and maintenance for the HVAC, plumbing, and piping industries.
Mageria Adds Bus Service Magiera Diesel Injection (MDI) recently became a Satellite Service Center for Thomas Built Buses and Kerlin Bus Sales. MDI is now authorized to do warranty repairs and recall on Thomas products. “We look forward to this partnership with Thomas and expanding the services we offer to our customers,” said Matt Sheafer, Vice President of MDI. Located in Crown Point, Magiera Diesel Injection is Northwest Indiana’s only factory-authorized diesel fuel injection facility and has been since 1982. MDI is partnered with major diesel manufacturers such as Bosch, Cummins, Delphi, Denso, and Stanadyne. They specialize in diesel performance repairs on pickups and midrange trucks, welders, air compressors and heavy equipment. MDI offers remanufactured components for a cost-effective solution compared to buying brand new units.
Box Supplier Set to Grow
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Retail packaging products manufacturer Michigan City Paper Box Co., will spend $725,000 on two new production lines and add four new positions. The new equipment will allow the more than 100-year-old company to make larger-sized boxes that it currently cannot produce in-house. The new positions represent an addition of $90,000 to the company’s $1.6 million payroll and will bring its workforce up to 58. The company is seeking a 10-year tax abatement from Michigan City to support the investment.
Crown Point Brewer Expands Crown Point Brewing Co. has added new fermentation and storage tanks which will enable the Northwest Indiana microbrewery to keep up with demand, grow distribution and expand its selection of seasonal beers. In three and a half years of operation, the company has grown from one to 11 employees and expects to add an additional position as a result of the expansion. The new equipment will allow Crown Point Brewing to expand production from about 600 barrels in 2011 to nearly 1,000 barrels in 2012. The new equipment will also fill all of the brewery’s space at its existing facility, making the addition of a satellite production facility the company’s next step. www.buildingindiananews.com
Contractor Honored by Magazine
For daily news from Northwest Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter at @BuildingIndiana.
Northeast
Brush Maker Expands for Second Time in Two Years Osborn International, a division of Jason Finishing Group, is relocating a product line and its IT Department to its Richmond facility, located in the Midwest Industrial Park. The company will invest $4.6 million and create 23 new jobs in the process, bringing total employment to 182 employees. The EDC of Wayne County is providing an Economic Development Income Tax (EDIT) grant of $83,000 to assist with the installation of equipment and renovations to the existing building. This is the second expansion for the company in two years. Osborn manufactures wire, polishing buffs and maintenance brushes. Jason Finishing Group/Osborn has operations in Europe, Asia and South America in addition to North America.
New Contract Boosts Hiring in Albion Fort Wayne Gets More Beautiful Central States Beauty Supply Co., Inc., is expanding its operations in Fort Wayne. The company will invest $850,000 to add 10,800 square feet to its existing building and add four full-
Busche Enterprise Inc. (Albion) has added nine new workers after securing a contract to manufacture aluminum steeringassist covers from Yoder Industries (Dayton). The covers will be used on GMC’s 1500 series and Chevrolet Silverado trucks along with GMC Yukon and Chevrolet’s Subur- continued on pg 14
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BUSINESS BUZZ
Amex Nooter, LLC, formerly Amex Construction Company, now a subsidiary of Nooter Construction, was recently recognized by Engineering News-Record magazine as a Top Specialty Contractor in the petroleum industry. The Hammond-based company is a full-service mechanical contractor specializing in erection of piping systems, piping fabrication, equipment setting and alignment, instrumentation, turn-key services and on-site shop fabrication services. Amex Nooter also specializes in refining, steel industries, chemical manufacturing, and specialty gas and power industries with other mechanical and piping applications.
time employees to its 21-person staff. The additional space will be used for warehousing. The company, which has a location in Evansville as well as Fort Wayne, is a professional-only beauty supplier and wholesale distributor serving Indiana, Michigan and Ohio.
ban and Tahoe SUVs. The company will produce 828,000 covers a year, beginning in the Spring of this year. After the expansion, Busche will employ about 550 workers.
BUSINESS BUZZ
Furniture Manufacturer Adding 120 Jobs in Elkhart County Wieland Designs, Inc., a manufacturer of furniture and transportation interior components, will expand its operations in Elkhart County, creating up to 120 new jobs by 2015. Headquartered in Goshen, the company plans to invest $1 million to improve existing facilities and purchase specialized machinery to enhance production capabilities in its 210,000-square-foot facility. These improvements are planned in several phases spanning the next three years. The company, which had 146 employees in Indiana before the expansion, planned to begin hiring immediately. The Indiana Economic Development Corporation has offered up to $1,300,000 in performance-based tax credits and up to $100,000 in training grants based on the company’s job creation plans.
South Bend Launches Marketing Campaign The city of South Bend has launched a marketing campaign to tout its competitive advantages to the business world. The campaign centers on a Web site, SouthBendON.com, augmented by local billboard and television advertising, national Internet advertising and national public relations efforts. The “Why South Bend?” campaign touts the city’s businessfriendly climate; competitive costs for land, construction and operations; low utility costs; inexpensive high-speed data connectivity; tech-savvy workforce; higher education institutions; and quality of life.
BANK OF THE YEAR Regional Development Company
Two Companies to Create 330 Jobs
BEST BANK FOR BUSINESS Northwest Indiana Business Quarterly
THIRD-PARTY LENDER OF THE YEAR U.S. Small Business Administration Indiana District As the area’s leading bank in business lending, Centier partners with the Small Business Administration (SBA) to help local communities grow, create new jobs, and develop economically. In 2011, Centier was recognized by the Indiana SBA for contributing to 12 projects totaling more than $16.2 million and accounting for 8% of the state total. As a result of these loans, 160 Hoosier jobs were created or retained. Our commitment to excellence has propelled Centier to achieve a higher standard of service as the Bank of Choice for Indiana Business.
Lippert Components Manufacturing, Inc. and Kinro Manufacturing, Inc., subsidiaries of Drew Industries Incorporated, have chosen Goshen and Middlebury as the sites for expansions by both companies. The expansions will create up to 330 new jobs this year. Lippert Components, a manufacturer of recreational vehicle and manufactured housing components, plans to invest approximately $650,000 in new machinery and equipment as part of the expansion. Kinro, a manufacturer of windows and doors for the recreational vehicle, manufactured housing and other industries, plans to invest approximately $3.5 million for the lease of a facility, and the purchase of machinery and equipment for the expanded production line. Lippert Components and Kinro currently employ more than 2,800 full-time workers at locations throughout northern Indiana. The companies planned to begin filling new manufacturing and administrative positions before the end of 2011. Lippert Components and Kinro currently operate 31 facilities in 12 states.
GM Pouring $275 Million into Fort Wayne Plant The Bank of Choice for Indiana Business 1-888-Centier • Centier.com
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Member FDIC
General Motors will invest approximately $275 million to prepare its plant in Fort Wayne to build the next generation of Chevrolet and GMC full-size pickup trucks. The investment will create or retain about 150 jobs. www.buildingindiananews.com
Industrial Surplus Company Buys Kendallville Facility Global Asset Recovery, LLC, an industrial surplus company, has purchased the former Tower Automotive facility in Kendallville. Tower shuttered the plant in November of 2007 as part of a bankruptcy-induced consolidation. Canoga Park, CA-based Global Asset Recovery plans to use the facility on behalf of some of their equipment clients. The 135,000-square-foot single-story building includes 5,000 square feet of office space, seven dock high doors and one drive-in door, and a 20-ton bridge crane. The property has convenient access to Interstate 69, State Highway 6 and the Kendallville Municipal Airport.
Richmond Dairy Producer Grows Wayne Dairy Products, Inc., will invest $12 million in its Richmond facility and create 11 new jobs. The project includes new equipment for new dairy processing, filling and secondary packaging. The EDC of Wayne County
is providing an Economic Development Income Tax (EDIT) grant of $200,000 to assist with the installation of equipment and renovations to the existing building. Wayne Dairy’s Richmond facility produces and distributes Smith’s brand products in addition to a variety of other co-manufactured dairy items. Products include ice cream, milk, eggnog, juices and drinks as well as Ruggles premium brand ice cream, sherbert and frozen yogurt. Milk for products is provided by local dairy farms over an 80 mile area. The dairy ships products as far as Texas.
RV Maker Adding Division, Jobs Evergreen Recreational Vehicles LLC, has launched a new division in conjunction with a new engineering and management group. The new division will build a full line of luxury fifth wheels for the resort, full-time RV/park model markets based upon the new concepts and deep industry experience of the former Carriage Inc., leadership team. The division will be based at the EverGreen manufacturing facility in Middlebury and will create 15 to 20 new jobs. Joining the EverGreen team thus far to spearhead the new division is Greg Kitson, engineering and product development; Pete Kauffman, manufacturing and production; Elliott Bond, sales management; and Deb Albin, financial management. For daily news from Northeast Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter at @BuildingIndiana.
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For More Information DLZ Industrial, LLC Burns Harbor • Joliet • Phone:1.877.425.5359 • www.dlz.com • www.buildingindiananews.com
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BUSINESS BUZZ
The plant, which currently has 3,400 employees on three shifts, builds the Chevrolet Silverado and GMC Sierra full-size pickups. The investment is part of the $2 billion GM announced in May 2011 that will create or retain about 4,000 jobs in 17 facilities in eight states over the next 18 months.
BUSINESS BUZZ
Central Logansport Company Adding 100 Jobs Federal-Mogul Corporation, a supplier of powertrain and safety technology, is expanding its operations in Logansport and will add approximately 100 new jobs this year. The company, which manufactures fuel systems for the automotive, commercial, aerospace and agricultural industries, will invest $2.7 million to purchase new machinery and equipment for its 170,000-square-foot manufacturing plant and adjacent 15,000-square-foot technical center. Headquartered in Southfield, MI, Federal-Mogul employs 300 in Indiana. The company planned to begin hiring additional assembly and manufacturing associates in early 2012. The Indiana Economic Development Corporation has offered Federal-Mogul up to $450,000 in performance-based tax credits and up to $76,400 in training grants based on the company’s job creation plans. The city of Logansport approved additional property tax abatement.
Hospital Lands Another Large Donation Fifth Third Bank and the Fifth Third Foundation have donated $5 million to the Eskenazi Health Foundation to help
fund the Eskenazi Health project in Indianapolis. The gift is the largest gift ever related to a financial institution in Indiana history. Fifth Third Foundation and Fifth Third Bank will contribute $2 million and $3 million, respectively, to create the gift. The Health and Hospital Corporation of Marion County will honor the gift by naming the faculty office building on the new Eskenazi Health campus the Fifth Third Faculty Office Building. The building will be a modern, campus-integrated facility that will house workspaces for the support functions of the hospital’s mission to advocate, care, teach and serve, as well as space for the Indiana University School of Medicine, Purdue University School of Pharmacy and various other academic support programs.
Company to Invest $2.5 Million in Wabash County Project The Economic Development Group of Wabash County has concluded an agreement that will bring the first occupant to the Wabash Business Complex. Advanced Ag Resources, Inc. will construct an office building of approximately 3,400 square feet as well as a 75,000-square-foot distribution center to open in mid-2012. A second phase, adding another 75,000 square feet of distribution space is already planned with an additional 150,000 square feet possible in Phases III and IV of the project. The initial capital investment in real property improvements is estimated at $2.5 million, enabling the company to maintain current levels of
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employment, and to create two additional jobs immediately. Future phases are expected to create additional employment opportunities.
3PL Provider Expands in Central Indiana Spot Freight, Inc., a third party logistics (3PL) provider, is expanding its headquarters in Indianapolis, creating up to 73 new jobs by 2015. The company, which provides truckload, less than truckload, intermodal and freight management services, will invest more than $500,000 to lease and equip space in downtown Indianapolis. The company will also upgrade its technology infrastructure to streamline processes, ensure accuracy and strengthen customer satisfaction. Since its founding in 2009, the company has more than doubled its revenue growth each year and projects revenues of more than $30 million in 2012. The Indiana Economic Development Corporation has offered Spot Freight up to $650,000 in performance-based tax credits and up to $20,000 in training grants based on the company’s job creation plans.
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Kermit USA, LLC, a manufacturer and distributor of resin composite roofing systems, has announced plans to establish its U.S. headquarters in Muncie, creating up to 70 new jobs by 2016. Based in Turkey, the company will invest $12.5 million to equip 44,000 square feet of space at the newly-created Turkish Business Center in Muncie for its U.S. headquarters and first facility in North America. The facility, which will also serve as a manufacturing and distribution center, will be focused on producing 100 percent recyclable composite slate tiles for the Midwestern home market. Kermit plans to begin hiring administrative, production, insulation experts, warehouse and logistics positions this summer. The Indiana Economic Development Corporation has offered Kermit up to $300,000 in performance-based tax credits and up to $50,000 in training grants based on the company’s job creation plans.
Global Materials Manufacturer Expanding in Tipton Böttcher America Corporation, a manufacturer of printing and industrial materials, will expand its operations in Tipton, creating up to 35 new jobs by 2014. The company, which produces rollers, press room chemicals www.buildingindiananews.com
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Indianapolis Lands Safety Convention The Indianapolis Convention & Visitors Association (ICVA) has booked another first-time citywide convention into the expanded Indiana Convention Center — the National Safety Council’s Annual Congress & Expo. More than 14,000 attendees from across the United States will convene in Indianapolis in September 2019, generating more than $18.6 million in economic impact. The convention will utilize nearly the entire expanded Indiana Convention Center – more than 566,000 square feet of exhibit space – and fill hotel rooms downtown and throughout surrounding suburban areas.
BUSINESS BUZZ
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BUSINESS BUZZ
and printing blankets for the graphic arts, packaging and converting industries, will invest $2.1 million to purchase new equipment and expand its manufacturing capabilities with a 30,000-square-foot addition to its current facility. Böttcher, which currently has 40 full-time employees in Indiana, plans to begin hiring machine operators, warehouse, technical and supervisory associates this year. The Indiana Economic Development Corporation has offered Böttcher up to $180,000 in performance-based tax credits and up to $24,500 in training grants based on the company’s job creation plans. The city of Tipton approved additional property tax abatement and a $100,000 loan from the city’s revolving loan program.
The addition of the Carmel loan production office brings the total number of Centier’s non-retail offices to three, including business banking offices in Fort Wayne and Mishawaka. Last summer, Centier converted its business banking office in Lafayette into a full-service retail branch. Centier currently has 45 banking locations in Lake, Porter, La Porte, Marshall, and Tippecanoe Counties. “We had great success with our Lafayette Business Banking office,” says Centier Bank President and CEO Mike Schrage. “With the success that we’ve seen in that market, we expect to see more business banking-to-retail office conversions in the bank’s future. Our vision is to have a retail branch in Carmel someday soon.”
Centier Officially Opens Central Indiana Office
Indianapolis Airport Adds Electric Vehicle Charging Stations
Centier Bank (Merrillville) has officially opened its latest loan production office in Carmel. The Carmel Loan Production Office is the first office presence Centier Bank has in Hamilton County. Since 2010, Centier Bank has been serving the Carmel and Greater Indianapolis markets with Indianapolis business banker Patrick Raftery, who managed lending services while the bank found a permanent location for its growing team. This spring, Jeff Olds joined Raftery as Vice-President of Business Banking and David Bowers joined the bank last month as Senior Vice President.
Electric vehicle (EV) drivers using the Indianapolis International Airport now have a convenient way to ensure a fully charged ride home with the installation of three new GE Energy EV charging stations in the airport parking garage. The GE WattStation Wall Mount EV charging stations can be used at no cost to travelers who use the airport’s valet parking services. By managing the GE EV charging stations through its valet service, the Indianapolis Airport Authority (IAA) and Parking Solutions for Airports and Global Parking System Inc. can rotate the charging of parked EVs, ensuring the service is available to any number of electric vehicles.
Network with Economic Development leaders throughout the entire state of Indiana.
For more information, or to reserve your spot: Contact Jill Ewing (317)454-7013 jillewing@ieda.org www.ieda.org 18
Beginning March 1st at 2 p.m. through March 2nd JW Marriott 10 S. West St. Indianapolis, IN 46204
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Manufacturer Moving Some Illinois Operations to Frankfort LEP Special Fasteners, Inc., a manufacturer of specialty steel fasteners, is relocating parts of its operations from Illinois to Frankfort, creating up to 160 new jobs by 2015. The company, a subsidiary of Italy-based Fontana Fasteners Group, will relocate some management, sales and distribution functions of Fontana America, Inc. and Fontana USA, Inc. from Elgin, IL, to Frankfort and expand and equip its current facility by 250,000 square feet. This expansion will more than double the existing capacity at the manufacturing plant. The Indiana Economic Development Corporation has offered LEP up to $3,000,000 in performance-based tax credits and up to $200,000 in training grants based on the company’s job creation plans. Clinton County has approved additional tax abatement.
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State Farm, INDOT Ink Sponsorship Pact
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The Indiana Department of Transportation (INDOT) has signed a deal with State Farm Insurance that makes the company the exclusive sponsor of the Hoosier Helper freeway service patrol. The partnership is designed to create a long-term supplemental funding source for the program, which is celebrating its 20th year of operation. Under the sponsorship agreement, State Farm will contribute $1,125,000 to INDOT over the next three years to support the Hoosier Helper program. There is an option to extend the contract for two years, with the INDOT receiving an additional $750,000. Sponsorship fees will be used solely to support and supplement the operation of the Hoosier Helper program. In return, the program will now be known as the INDOT Hoosier Helper Freeway Service Program sponsored by State Farm. State Farm logos will be placed on Hoosier Helper vehicles, operator uniforms and signs delineating the Hoosier Helper service areas. Each weekday, 28 Hoosier Helper vehicles patrol metropolitan area interstates in Indianapolis, Northwest Indiana and Southern Indiana near Louisville. Last year, Hoosier Helpers assisted more than 33,000 motorists. For daily news from Central Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter at @BuildingIndiana. - continued on pg 20 www.buildingindiananews.com
BUSINESS BUZZ
An ongoing collaboration between Purdue University and GE Energy is at the heart of the new airport charging option. Purdue acquired the units with funding from Energy Systems Network through a grant from the Indiana Office of Energy Development. Additional sustainability initiatives at the airport include IAA’s recent completion of relighting projects in its parking garage and at the Indianapolis Maintenance Center that produce combined yearly savings of more than $250,000 and annually reduce CO2 emissions by 5,233 metric tons, equivalent to removing more than 1,000 gasolinepowered cars from the city’s roads each year. IAA also has announced plans to develop one of the largest airport-based solar farms in North America, which will annually produce more than 15 million kilowatt hours of power (see page 58 for more details).
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BUSINESS BUZZ
South Southern Indiana Company Expands Olon Industries, Inc. is expanding to a 100,000-square-foot facility at the River Ridge Commerce Center in Jeffersonville. Based in Georgetown, Ontario, Olon Industries manufactures customdesigned, wrapped profiles and components for the cabinet, office furniture, kitchen and bath, store fixture, and architectural/hospitality industries. The company’s Jeffersonville location is a custom and profile moulding manufacturing facility. This project will maintain 30 jobs and create 11 new jobs by 2014.
Through the coordination of One Southern Indiana, Jeffersonville has offered Olon Industries an opportunity to apply for property tax abatement through the Urban Enterprise Zone.
Indiana Tech Opens Louisville Campus Indiana Tech’s College of Professional Studies has opened a new satellite campus in Louisville, KY. The new campus is Indiana Tech’s 12th satellite campus and its first outside of Indiana. Classes began in January. The Fort Wayne-based school’s College of Professional Studies offers undergraduate and graduate programs in an accelerated format. The program is designed to accommodate nontraditional students who also have to balance work, family and community responsibilities. Classes meet one evening per week for five weeks at the undergraduate level and six weeks at the graduate level.
Airport Lands FAA Funds for Runway Work Evansville Regional Airport has received $18 million from the Federal Aviation Administration (FAA) for a runway relocation project. The project, which will ultimately cost an estimated $60 million, will shift the airport’s main runway away from U.S. 41 by removing about 2,415 feet at the southwest end of the runway and adding the same amount at the northeast end. The move is necessary to bring the runway into compliance with FAA safety regulations. A rail line relocation and road work are also included in the project. The $18 million will be used for property acquisition, roadwork and design work for the rail line relocation.
Pattern Maker Moves to Sellersburg Owings Patterns is relocating from Georgetown, IN, to Sellersburg in order to consolidate operations into a single 30,000-square-foot facility. Owings makes patterns for the foundry industry and prototype and production tooling for thermoforming applications. The project retains 20 jobs and includes the creation of nine new jobs by December 2014. The company will invest $878,000 in building improvements, $1,045,000 in machinery and equipment, and $101,000 in other capital investment. 20
www.buildingindiananews.com
Plastics Company Shifts Production to Indiana
Mount Vernon officials have unveiled plans for a roughly $8 million retail, housing and amphitheater project on the banks of the Ohio River. The project includes a $1 million amphitheater and a $7.9 million three-story building across the street which will have retail space on the first floor and condos and senior housing on the upper stories. The building will be called The Landing. The amphitheater will be funded by a $900,000 matching grant from the Indiana Department of Transportation, and tax credits from the Indiana Housing and Community Development Authority will be sought to pay for The Landing. Construction on the amphitheatre is expected to begin next spring.
Berry Plastics is closing a plant in Madisonville, KY, and shifting production to several other facilities, including one in Evansville. Both plants are part of a specialty and beverage closures business that Berry acquired from Rexam SBC PLC last summer. The company said that the move will eliminate excess capacity, streamline operations and improve its cost structure. The plant will add about 20 jobs as a result of the consolidation, bringing total employment at the facility up to around 300.
City Breaks Ground on Convention Center, Hotel Lawrenceburg has broken ground on a $50 million downtown convention center and hotel complex as part of a bid to counter nearby Cincinnati’s new casino, scheduled to open in Spring 2013. The 325,000-square-foot complex will include a 180-room hotel, 18,000 square feet worth of concert and exhibition space, a 7,500-square-foot ballroom, meeting space, a restaurant and a bar. Construction is slated to be complete by summer 2013. The city is financing the project with a $25 million grant, a $14 million loan, and $10 million in TIF funds. Another $1 million will be provided by the Hollywood Casino Lawrenceburg, which will assume management and ownership of the complex once it is completed.
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Casino to Build New Hotel Rising Sun/Ohio County First, Inc. (RSOCF) and the Rising Sun Regional Foundation, Inc. (RSRF) have teamed up to develop a 100-room hotel on land currently owned by the Rising Star Casino Resort. The development will generate approximately 100 construction jobs and 20 to 30 permanent jobs and help to hedge against job losses to Ohio casinos. RSOCF will own the hotel and has chosen Vision Building Company 2, LLC, from Indianapolis, to construct the hotel. RSRF will loan RSOCF the money to finance the project. The hotel is slated to open in the fourth quarter of 2012. For daily news from Southern Indiana and around the state, visit our blog at www.buildingindianablog.com and and follow us on Twitter at @BuildingIndiana.
21
BUSINESS BUZZ
Mount Vernon Plans Riverfront Amphitheater
People News Shakouri to Helm Center Ali Shakouri has been selected as the new Mary Jo and Robert L. Kirk Director of the Birck Nanotechnology Center at Purdue University’s Discovery Park (West Lafayette). Shakouri is leading researcher advancing efforts in thermoelectric energy conversion and will also serve as professor of electrical and computer engineering. One Southern Indiana Picks New Leader Jody L. Wassmer has been named of CEO One Southern Indiana, the chamber of commerce and economic development entity serving Clark and
Floyd counties. Previously, Wassmer was President of the Greater Owensboro Chamber of Commerce, where he was a two-time winner of the Kentucky Chamber of Commerce’s Executive of the Year honor (in 2010 and 2007). Wassmer’s career also includes positions in business development, communications, public relations and marketing. Cook Moves to La Porte The Greater La Porte Economic Development Corporation (GLEDC) is pleased to announce the hiring of Bert Cook as Executive Director. Cook comes to GLEDC from his role as Executive Director of the Portage Economic Development Corporation. Cook has a Bachelor’s Degree in Business Management from Purdue
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University North Central and has continued his education with economic development certificates from Ball State and Purdue University North Central. Skillman Advances Cherry The Skillman Corporation (Indianapolis) has advanced Scott V. Cherry to Senior Vice President. In his new role, Cherry will serve as a member of the corporate management team and assume responsibility for the Northern Indiana, Michigan and Chicagoland markets. Cherry, a 30-year veteran of the construction industry, has been with Skillman for 15 years. DLZ Promotes from Within Kurt S. Schmiegel, P.E. has been promoted to President of DLZ Industrial, LLC (Burns Harbor). Schmiegel joined DLZ in 1993 and most recently served as the company’s Vice President. Schmiegel, a Purdue University graduate, has 18 years of professional experience. DLZ Industrial, LLC is part of DLZ Corporation, a national top 100 engineering and architecture firm with offices in Indiana, Illinois, Michigan, Kentucky and Ohio. Schalasky Joins Diversified Marketing Strategies Diversified Marketing Strategies, Inc. (Crown Point) is pleased to announce the addition of Betanda Schalasky as Sales Representative. As Sales Representative, Schalasky will be the primary contact for all client needs including print and design. Prior to joining Diversified, Schalasky, a Seymour native, served as an account executive for ARC Chicago specializing in large format printing. Lohmeyer a Throughbred Rick Lohmeyer of Anderson Insurance (Valparaiso), a Keystone Insurers Group partner, has received the top 2011 “Thoroughbred Award” for outstanding new business production. This award is presented to the top three producers in each state in which Keystone has partners. www.buildingindiananews.com
Marriott Adds Dunlavy The JW Marriott Indianapolis Downtown has promoted Anne Dunlavy to Director of Sales and Marketing. Dunlavy has more than 10 years experience with White Lodging and Marriott hotels. She joined White Lodging in 1999 as the cluster diwww.buildingindiananews.com
True to Lead Credit Union Doug True has been named CEO of Forum Credit Union (Indianapolis). True has been with Forum for more than 20 years. He is a lifelong resident of Central Indiana, graduating from IUPUI and obtaining his MBA from Anderson University. He most recently served as the Chief Lending and Technology Officer for the credit union.
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The Indiana corn and soybean organizations have promoted Greg Noble to COO. As COO, Noble is responsible for the day-to-day operations of the state’s three corn and soybean organizations, the Indiana Soybean Alliance, Indiana Corn Marketing Council and Indiana Corn Growers Association. Noble has 30 years of experience in the commodity and biofuels industry and previously served as Vice President of Archer Daniels Midland Grain Company as well as manager of the Portland, IN, POET ethanol plant.
Mega Park Names Marketing Director The Newport Reuse Authority (Clinton) has named Susan Snider Marketing Director of the Vermillion Rise Mega Park. Snider is a 2002graduate of Indiana State University. She earned a bachelor’s degree in Speech Communication with an emphasis in Public Relations and double minors in Marketing and Journalism. Vermillion Rise covers 11 square miles in Vermillion County on the site of a deactivated U.S. Army Depot.
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Learning Center Taps Manis The Challenger Learning Center (Hammond) is pleased to introduce Becky Manis as the organization’s new Executive Director. Manis will be responsible for executing publicity efforts that promote the Challenger Learning Center as a premier educational destination for corporate and school groups. Manis graduated from Indiana University with a B.S. in Elementary Education and a minor in English. She received her M.S. in Elementary Education with emphasis in Special Education from Purdue University Calumet.
S ERVING NORTHWEST I NDIANA FOR O VER 30 YEARS
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McCall Gets Call at Centier Centier Bank (Merrillville) has promoted Tammy McCall to branch manager of the Chesterton Downtown branch. McCall joined Centier in 1995. Since then, she has served as branch manager of the Portage Town & Country and Hobart Strack & Van Til grocery store branches.
rector of sales for the Indianapolis market, and most recently was Regional Director of Sales with responsibilities for 25 White Lodging hotels in the Chicago area.
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Rembusch New Project Manager Relocation Strategies (Indianapolis) has chosen Susan Rembusch as its new Project Manager. Rembusch began her career as a designer and project manager in the furniture industry. She earned her degree in Interior Design from Purdue University and is a Registered Interior Designer (RID) in the state of Indiana.
For more information contact Jim Asbury (574) 850-3368 23
Photo Feature Contractor, Hospital Boost Breast Cancer Awareness Workers from EMCOR Hyre Electric Co. of Indiana, Inc. and Shambaugh & Son, L.P subsidiaries, both based in Indiana, as well as those of Porter Health System and other organizations, donned EMCOR Pink Hard Hats and formed a human pink ribbon at the new Porter Health System Hospital construction site in Valparaiso. Porter Health System Hospital CEO Jonathan Nalli was presented with an official EMCOR Pink Hard Hat as part of this ceremony by Thomas R. Corsiglia, President and CEO, EMCOR Hyre Electric, and William Meyer, Corporate Vice President, Shambaugh & Son. Porter Health’s new Valparaiso facility is set to open in the second half of 2012. It will feature 225 private rooms, 36 outpatient rooms and a 52,200-square-foot medical office building.
Luncheon Recognizes Entrepreneurial Excellence Winners of the annual E-Day Awards for Entrepreneurial Excellence, presented by the Northwest Indiana Small Business Development Center and Purdue University Calumet, were honored at a December luncheon. The event, which marked the 20th anniversary of the awards, also included a leadership symposium and brought past winners together through the creation of an Alumni Club. For a full list of the 2011 class, see BUILDING INDIANA’S November/December 2011 issue.
(l. to r.) Donald McCormick, First Midwest Bank; Rob Gardiner, First Midwest Bank; Steve Dahlkamp, First Midwest Bank; and Kurt Minko, Retro-Tech Systems, Inc.
Current and past winners combined with business leaders from around the region to pack the event, held at the Radisson Star Plaza in Merrillville.
As part of EMCOR’s “Protect Yourself. Get Screened Today.” campaign, more than 190 employees from various organizations formed into the shape of a giant human pink ribbon, the international symbol of breast cancer awareness. 24
Chancellor Thomas L. Keon of Purdue University Calumet addresses attendees at the E-Day Awards luncheon
The 2011 E-Day Award winners pose for a group photo. www.buildingindiananews.com
Credit Union Launches Year-Long Anniversary Celebration Forum Credit Union (Indianapolis) celebrated its 70th Anniversary on Wednesday, December 7, 2011. To commemorate this milestone, each of its 12 branch locations had a $70 prize drawing, refreshments, and snacks. Forum’s Contact Center participated by giving away a $25 gift card to every 70th caller, resulting in nine winners. The credit union’s anniversary will be celebrated throughout 2012 by way of online promotions and a branch special each month. Forum serves more than 100,000 members in the central Indiana area.
Plan your
year. EVENT LAKE COUNTY CIRCLE DEMOCRATS EVENING RECEPTION
Hear a presentation from the County Commissioners and stay for an evening of networking. 3dms.com
VENUE
The Patio Merrillville, IN
IBEW Merrillville, IN
LAKE COUNTY CIRCLE DEMOCRATS EVENING RECEPTION Attend this reception to network and support the campaigns for County elected officials. 3dms.com
Snacks and drinks were served to credit union customers as part of Forum’s rollout of its year-long 70th Anniversary celebration.
United Way Rolls Out Coupon Book
CAF & NWIBRT SAFETY AWARDS BANQUET
Recognizing local firms committed to safety and the improvement of construction and maintenance projects in NWI. buildingindianananews.com
INFLUENTIAL WOMEN OF NWI Celebrate the Leading Women of NWI. nwiwomen.com
The Lake Area United Way (LAUW) in partnership with Diversified Marketing Strategies, Inc. (DMS) has rolled out the first edition of their Community Coupon Book to support the 2011-2012 annual campaign. The books are being distributed to 30,000 employees of area businesses and individual donors as an expression of appreciation to those who support LAUW’s campaign and to introduce United Way to new potential donors. The Community Coupon Book contains special offers from 30 local merchants with a total value of nearly $2,000. Contributions to Lake Area United Way’s 2011-12 campaign will support 44 health and human programs through 31 local member agencies and 4 initiatives that provide critical services to those in need. Tom Keilman, Director of Government and Public Affairs at BP Whiting and 2012 Lake Area United Way Campaign Chair, displays one of the new coupon books.
The Venue at Horseshoe Casino Hammond, IN
Merrillville, IN
April 19, 2012 5-10pm
May 2, 2012 5-6:30pm
Avalon Manor Merrillville, IN
May 10, 2012 5:30-9pm
Radisson Star Plaza Merrillville, IN
May 31, 2012 5-8pm
NWIBRT GOLF OUTING
Network with the business leaders of NWI. The outing includes prizes & giveaways. nwibrt.org
March 21, 2012 4:30-7pm
MIDWEST SMOKE OUT
An upscale evening to treat and entertain clients. Receive cigars, premium spirits, gourmet foods, luxury gifts & more! midwestsmokeout.com
February 29, 2012 5-6:30pm
THE INDIANA PLAN
Recognize and award the individuals, contractors, and unions who utilize and support the Indiana Plan 3dms.com
DATE & TIME
TBD
July 23, 2012 8am
URBAN LEAGUE GALA
The Urban League of NWI promotes services in the areas of Education, Economic Empowerment, Health & Wellness, Civic Leadership and Civil Rights & Social Justice for all. We serve Lake, Porter and LaPorte Counties. 3dms.com
Radisson Star Plaza Merrillville, IN
Aug. 23, 2012
TBD
Sept. 13, 2012
THE BIG SCHMOOZE
SCHMOOZE at this networking-focused event. Building Indiana News will recognize the Power Players in Northern Indiana. Annual Campaign Kick-off for The United Ways of Lake and Porter Counties. thebigschmooze.com
5-8pm
IDEA SHOW: NW INDIANA
Get a head start on tradeshow giveaways, safety incentives, corporate gifts & more! Touch 1,000s of items with free samples! freeideashow.com
Sept. 2012 TBD
10am-2pm
STAND UP FOR ST. JUDE HOUSE
Join us for a comedy show and dinner to benefit St. Jude House!
Radisson Star Plaza Merrillville, IN
Oct 11, 2012
www.standupnwi.com
www.buildingindiananews.com
25
STATE OF THE INDUSTRY
Training:
An Investment in People Education is the key to improving productivity and profits. By Kevin Comerford, Director of Education and Workforce Development, Construction Advancement Foundation
I
n tough economic times, businesses do whatever they can to survive. One of the natural survival mechanisms at such times is to slash costs in order to become leaner and more efficient. One of the areas typically cut during a recession is the training budget. However, we live in a knowledge economy, and it’s the company that views training and continuing education as an investment, not the one that views it as a cost, that will gain a true competitive advantage. Having the most knowledgeable and highly skilled workforce is often what separates leading-edge companies from average firms. The former are constantly training their employees in emerging technologies, business methods, leadership techniques and various other skill sets so they can remain at the forefront of their industry. Perhaps the greatest impact of training is on productivity. In a study of more than 3,100 U.S. workplaces, the National Center on the Educational Quality of the Workforce (EQW) found that a company may be better off improving production through investing in their workforce rather than investing in equipment. The study found that a 10 percent increase in workforce education levels 26
led to an 8.6 percent gain in total productivity. But a 10 percent increase in the value of equipment increased productivity just 3.4 percent. Studies also have shown that money spent on workplace learning is money spent wisely. In fact, an organization’s training investments can have a direct impact on profits. The American Society for Training & Development (ASTD) looked at the training investments of 575 U.S.-based, publicly traded firms during a three-year period and found that companies that invested the most in training posted shareholder returns which were 45 percent higher than the market average. It was also shown that an increase of $680 in a company’s training expenditures per employee generated, on average, a 6 percent improvement in total shareholder return. Training improves employee satisfaction and retention as well. Workers view training as a critical element in their professional development and most will value the opportunity to advance their careers. Educational investments also help increase employee engagement and commitment. In another study by the ASTD, 41 percent of employees at companies with poor
training planned on leaving within a year versus 12 percent who planned departures from companies with excellent training. By retaining employees, companies save money on recruitment and training costs, which can be substantial. Sizing Up Your Options So what methods of training can help enhance your workforce and provide the biggest benefit to your organization? Unfortunately, there is no one-size-fits-all answer. Each company needs to weigh the costs and benefits of each method. One option is an external seminar or conference. Seminars are ideal for organizations that have extensive time commitments. Workers who attend seminars are able to learn a new skill within a few hours or days and then apply those skills immediately. Moreover, training seminars are pretty inexpensive when compared with other types of training. A primary factor in the value of a particular seminar comes from the company or organization producing it. Florida-based Falcon Performance Institute (FPI), for example, produces and conducts construction-related seminars around the country www.buildingindiananews.com
on a wide variety of subjects, including Productivity, Quality Assurance, Stepping Up to Supervisor and Project Management. FPI also offers real time coaching services for their clients. Jim Bain, President of Falcon, is quick to tell his clients that “education is good, but the combination of education and training – the application of that education – is critical. The return on your training investment can be multiplied many times over by adding in-the-field training/coaching.” Supporting employees who wish to earn college credits or a professional certification is another alternative. A tuition reimbursement program is a great way to support employees who wish to better themselves. Training programs can also help workers retain their certifications in certain fields. Archi-
www.buildingindiananews.com
tects, engineers, land surveyors, accountants and countless other professions are required to obtain a certain number of continuing education hours every year in order to maintain their credentials. An added benefit to educating your employees is that they become self-reliant. Employees who successfully manage their workload can free-up valuable time for management to focus on other, more important areas of the business. Ben Franklin once said, “an investment in knowledge pays the best interest.” Companies that invest in training and education are the ones who will not only survive, but thrive. They will be the best-equipped to adapt to changes, revolutionize business processes, develop niches and position themselves as leaders within their industry.
27
RULE OF LAW
form of social capital,” Szarleta says. “The higher the level of social capital you have, the better prepared you are to address adversity and adapt to change.”
Civic
Virtues
A productive workforce and a growing economy can only be built on a foundation of strong civic participation. By David Wellman
D
o higher rates of civic participation lead to lower rates of unemployment? A tantalizing new report hints at a connection – and one that may be stronger than some of the “usual suspects” blamed for recent job losses, such as the housing bubble or educational deficiencies. The report, “Civic Health and Unemployment: Can Engagement Strengthen the Economy” compared state and metro civic engagement measures and unemployment rates over a five-year period from 2006 to 2010. It found a strong correlation between high rates of the former and lower increases in the latter. In other words, 28
better neighbors and better citizens made for a better economy. The role of civic engagement in business and economic success “is an interesting one that people are starting to take a look at,” says Ellen Szarleta, J.D., Ph.D., Associate Professor of Public and Environmental Affairs at IU Northwest and Interim Director of the Center for Urban and Regional Excellence. “The report on civic health and unemployment suggests that those two items are traveling together, but we’re not quite sure of the link.” It isn’t hard to look worldwide and find countries in which civic order has collapsed, and their economies are rarely vibrant. Strong civic health “is a
Indiana Results Mixed In the case of Indiana, another recent study suggests the state’s civic health is mixed. Privately, Hoosiers demonstrate strong civic virtues, but their participation in public and political activities could be better, according to the 2011 Indiana Civic Health Index. The Index incorporated three measures of community involvement: volunteering, group associations and social connectivity, as well as voter registration and turnout. To the good, Hoosiers were more likely than Americans at large to belong to religious, neighborhood, school and sports groups. They also volunteered about as much as the country at large, and placed 17th among states for families that eat dinner together. But despite a high level of involvement with community groups, Indiana ranked 45th in working with neighbors to solve community problems. The state was 43rd in voter registration and 48th in voter turnout in 2010, and just 21.6 percent of Indiana residents say they talk regularly about politics with family or friends, four percentage points below the national average. “Nearly 45 percent of Hoosiers say they don’t discuss politics at all,” notes Andrew Homan, Director of Civic Education for the Indiana Bar Foundation. “That’s an issue.” And it’s an issue he believes is directly related to education. Data from the Indiana Statewide Testing for Educational Progress (ISTEP) program has shown improvement in civic education recently, with the percentage of fifthgraders passing the social studies section of the test rising from 60 percent to 67 percent from 2009 to 2011, and the number of seventhwww.buildingindiananews.com
Civic Participation and Unemployment How measures of civic engagement correlate with lower unemployment. • An increase of one point in the state’s rate of working with neighbors was associated with a decrease of 0.256 percentage points in the unemployment rate when other economic factors were controlled. • An extra percentage point of public meeting attendance corresponded to 0.239 points less unemployment when the economic factors were controlled. • An increase of one point in volunteering was associated with 0.192 percentage points less unemployment, controlling for the eight economic variables. • An increase of one percent in the voter registration rate was associated with a decrease of about onetenth of one point in unemployment. Source: Civic Health and Unemployment: Can Engagement Strengthen the Economy
graders passing increasing from 58 percent to 68 percent. However, those rates still lag the passing rates for math and language arts, and while ISTEP tests math and language arts in third, fifth and seventh grades, social studies are only examined in fifth and seventh grades. Civic education is similarly ignored on a national basis. The No Child Left Behind Act mandates testing in math, reading and science, but not social studies. And the National Assessment of Educational Progress measures math and reading annually, but only assesses civics once a decade. www.buildingindiananews.com
Having a population that lacks a firm grasp of how government works isn’t good for business. “Look at last summer’s gridlock over the debt,” Homan says. “You had business groups coming out and saying, hey, this is hurting us, because certainty is what businesses want. People need to have an understanding of how the process works.” And as the link between civic involvement and unemployment suggests, an educated and active community is better for both residents and businesses. Why? Szarleta suggests a few possible answers. “It may be that those communities with stronger civic health also have stronger forms of government that work better,” she says. “Other studies have linked trust with economic success. Does civic participation build trust? The answer is yes – people who trust each other are more likely to enter into partnerships.” Civic participation also lends itself to exercising skill sets that are valuable to businesses, such as problemsolving, critical thinking and research skills. “Civic participation also creates a social network through which people can find job opportunities and employers can find people who are the best fit for the job,” Szarleta says. Given the challenges the country faces, Szarleta believes that there’s no better time to begin focusing on civic education than now. “Most of the transitions that take place in civic engagement take place in times of crisis,” she notes. “It’s only then that businesses start to realize how important it is to have employees who appreciate being part of the community.”
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SAFETY ZONE
Safety Never
Stops
Building a strong and constantly evolving safety program will reduce injuries, save lives, boost profits and provide a competitive advantage. By David Ward, President of Safety Operations, Safety By Design Consultant Services
W
hen someone asks our consultants, what does our company do, our reply is “we empower companies and communities to save lives and promote financial growth.” Safety can and will positively affect production and your bottom line if it is implemented with commitment. Too often, safety inspections are conducted on a reactionary basis, either due to an incident or an upcoming OSHA inspection. Steps to correct any issues found are established and then implemented, and then safety goes back to being an afterthought – until the next issue arises. That demonstrates a lack of commitment and leadership, which no safety program can be successful without. To stop this cycle before someone gets seriously injured or killed, companies need to take a proactive approach to safety compliance and commit to building long-lasting safety partnerships. Safety without commitment is like a business without profits or benefits, there is simply no value. You may be asking, what is a “safety partnership?” It’s a partnership between your company, employees, management and your safety provider. It’s a long-term partnership, as you cannot effectively create, design, implement and manage a safety 30
program without leadership commitment, employee and management buyin and training. Consider an industry not normally spoken of when discussing jobsite safety: foodservice, whether it’s fast food or an expensive dine-in restaurant. Obviously, food safety is crucial to a successful restaurant, but what about OSHA or National Fire Protection Association (NFPA) standards? Ask yourself, how many
times have you been in a restaurant when the staff announced that they were having a fire drill and asked you to evacuate the restaurant in an orderly fashion for a few moments? I’m going to bet your answer is zero,
right? A restaurant owner might object to the inconvenience to his or her customers, but if they offered to comp their customer’s meals or give them a www.buildingindiananews.com
discount on their next dinner, suddenly an “inconvenience” becomes a normal part of business and the customer walks away with a sense of safety gratitude. Moreover, it shows your customers the importance your restaurant places on them. So the restaurant not only creates a safer environment, but gains a marketing advantage as well. Every shop and restaurant says they care about their customers. How many have ever demonstrated it with something as simple as a fire drill? How about the potential for those slips, trips and falls? Have you seen a restaurant employee slide across a wet floor, or stand on a plastic five-gallon container to fill the ice machine or stack an item on the shelf? How many managers have seen the same thing and have not said a word. What would happen if the bucket should slide from underneath the employee and he or she falls, seriously injuring themselves? Not only would there be a work-related injury, but the cost of medical expenses and overtime costs could be enormous. How about that large mixer with no guard, or the exposed wiring in the fryer area? They are serious safety issues that people walk by each day without any regard. Is the floor uneven? Are tiles missing, or are there cracks that create a potential tripping hazard? What about the clutter in and around all the work areas blocking access to exits? These are another few safety standards reviewed by OSHA. For those of you still not convinced, consider the typical restaurant manager. The age group for that job is about 22 to 35. How much safety training have they had? What would they do if someone had a heart attack in their restaurant? What is the cost of sending them to a CPR course, versus the negative media impact of a news story about someone dying in your restaurant without any response from the staff? It is a sound benefit to any restaurant or retail outlet to have all their staff trained www.buildingindiananews.com
in CPR/First Aid/AED. What says more to any employee than that their employer cares enough to have everyone trained? Just think how many lives those 30 employees you just trained could possibly touch – customers, co-workers, families, friends, church members and more. There is no price tag for saving a life because that is priceless. Your liability may be everything you have. CPR costs maybe $30 to $55 dollars per person. Is the risk of not training your employees worth the closing of your doors? You decide! Managers make maybe $20 an hour plus bonuses. Many of the workers under them make less – and some of them may not even speak English. Can that manager
Organizations need to take a proactive approach to safety compliance and commit to building long-lasting safety partnerships. effectively communicate safety information to Hispanic workers? Odds are against it, because many much-higher-pay-grade businesses are struggling with that issue; according to the latest OSHA data, Hispanic injuries and deaths are on the rise. Most companies just show videos and have workers sign for the training without checking to see if they have gained any real understanding of the material. Today, bi-lingual safety instructors have become a basic requirement of any safety effort. Hispanic workers should not be seen as expendable, they should be trained. Bi-lingual instructors are just as important as funding, formal training or updated equipment. Will safety cost your company money? Sure, safety is not cheap; however it can be in the long run. The cost of one death or severe injury and potential OSHA fines could result in financial ruin for a company, but is even more tragic for family left behind. The cost of safety should not have to wait until someone is injured or dies. There is no excuse, no apology, which could change that fact. What you pay in upgrading your current safety programs is offset by what you could save in future liability and insurance costs.
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THE BOTTOM LINE
Indiana in the
Black
Spending cuts and slowly growing revenues led to a solid fiscal finish for Indiana in FY 2011 and the early returns for FY 2012 are promising. By David Wellman
A
combination spending reductions and higher revenues helped the state of Indiana to a solid fiscal finish in 2011, and the early returns for fiscal 2012 are promising despite the sluggish national economy. For the fiscal 2010-11 biennium, the state received five percent less revenue and spent 5.5 percent less than was anticipated by the budget passed in June 2009. That translates to $1.34 billion in lower revenues and $1.52 billion in spending cuts over the past two fiscal years. “We’re holding our own in Indiana,” says State Auditor Tim Berry. “And we were able to grow our reserves in 2011.” Indiana ended the fiscal year with a reserve balance of nearly $1.2 billion, a level the state wasn’t expected to achieve until 2013. The credit for much of that can be given to thrifty state agencies. “Agency after agency reduced spending,” Berry explains. “In our office, we are back to pre2000 levels, and many agencies have done similarly.” Overall, government agencies returned $1.06 billion to the state’s coffers in fiscal 2011. Revenues also perked up. “Revenues were a bit higher than the revised projections, though still below the expectations from 2009,” Berry says. “A large part of that revenue growth came in the last six months of fiscal 2011.” That trend continued into fiscal 2012, when revenues continued to overachieve. “In the first three months 32
of fiscal 2012, revenue was up about two percent over the forecast from December [2011] and year-over-year revenue was up 10 percent through the first quarter,” Berry says. Indiana was far from the only state to take an ax to spending in 2011. According to the 2011 Fiscal Survey of States from the National Governors Association and the National Association of State Budget Officers, 23 states made cuts to existing budgets during the fiscal year. In terms of actual dollars, Texas, Oregon, Washington, Indiana and Illinois were the five states making the largest cuts. Indiana’s executive branch led the way in finding savings in fiscal 2011, spending 13.5 percent – more than $352.5 million – less than their budgeted amount. “Governor Daniels has made fiscal accountability one of the hallmarks of his time as governor and the results speak for themselves,” Berry says. Almost half of that amount, about $167.4 million, came from two agencies, the Department of Child Services and the Family and Social Services Administration. The legislative branch lopped 12 percent off of its fiscal 2011 budget, with the Indiana Senate outdoing the House with $2.3 million in cuts versus $1.7 million. By comparison, the judiciary lagged far behind, trimming its expenditures by just 2.2 percent, or just $1.4 million. Much of the rest of the cuts came from lower education and Medicaid assistance
spending. Though those cuts totaled more than half a billion dollars, the state still funded those programs to the tune of more than $9 billion in fiscal 2011. These were common areas for states to cut. According to the 2011 Fiscal Survey of States, of the 23 states that made mid-year cuts, 18 reduced education spending and 12 (not including Indiana) trimmed Medicaid spending. Going forward, Berry says that Indiana is on solid ground. “As agencies reduced expenditures, that’s become the new base budget amount,” he notes. Establishing a lower level of overall spending was critical to prepare for the potential costs of the Affordable Care Act. “We certainly hope that many of those mandated costs don’t come to pass, but we have to plan as if they will,” Berry says.
BALANCES AS A PERCENT OF EXPENDITURES
MI
>8% >4%
OH
>0% <0%
IN IL KY
Source: National Association of State Budget Officers
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33
BEING PRODUCTIVE
Leadership: The Next Generation Preparing the next generation of business leaders with some KSA. By Rick and Susan Riddering, NorthStar360 Business Solutions, LLC
S
ome business experts estimate that more than 70 percent of U.S. companies engage in some sort of succession planning and talent management initiatives. Basically, this means that the vast majority of companies now have some sort of formal, planned leadership development processes in place to help select, prepare and transition highpotential employees into new positions. So why is the preparation of the “next generation” of leaders so important to these companies? Most would say that solid leadership is hard to find and that it’s much more advantageous (and less risky) to prepare someone they already know and who already knows a great deal about the company. These companies look at succession planning as an insurance policy that protects them from a breakdown after a leader retires, dies or leaves the company. However, despite all the benefits, preparing future leaders doesn’t come easily. And often the challenge is greater within family-owned companies due to the residual effects on business and personal relationships that could follow a bad decision within the bloodline. Every quality succession plan begins with assessing key positions and identifying key talent within the company. Key positions are those that are critical to keeping the operation running efficiently and strategically. Likewise, key talent should 34
include those employees currently in mission-critical roles within the company. These are the employees who have shown strong commitment to the organization and its mission, and who have the knowledge, skills and attitudes (KSA). Be sure to keep your eyes open for talent that isn’t in high-profile positions. Often, high-potential employees go unnoticed simply because there are never problems with their work and their operations run effectively all the time. Companies that go into succession planning with eyes wide open are typically more proficient at identifying talent at all levels so as not to miss any long-term potential. Once all key talent has been identified, companies should assess each person according to the KSAs they currently have compared to what they will need in their step up to a key position. Of course, this assumes that the company already has a keen understanding of the KSAs needed for the key positions. If that’s the case, use them as benchmarks to see just how close your key talent is to having the level of competence they’ll need. The gap between a person’s competence now and the competence they’ll need is called a KSA development gap. Each
person being considered for promotion should have a development plan that specifically addresses the gaps they have. Be sure to create an engaging plan that stretches each individual outside their comfort zone. Professional development happens best when an individual is thrown out of sync from their typical behavioral patterns. Therefore, plans with varied types of learning and development activities are more likely to be successful. Be sure to have complete buy-in from each of the individuals for whom these plans are written. Without it, there are no guarantees they will engage in any of the activities you design for them. Be timely about starting the process. Leave enough time for people to actually get much of the plan completed. This will also give you a good idea of how committed each candidate truly is to the idea of taking on additional responsibilities. Succession planning is strategic and very beneficial for companies looking for long-term success. Consider outsourcing some or all of the development of your succession plan in order to have dedicated resources addressing it. The time you’ll save utilizing outside expertise will pay dividends in the long run. www.buildingindiananews.com
www.buildingindiananews.com
35
COVER STORY
Hitting the Books Education and training efforts around the state are paying off by creating a better workforce.
By David Wellman
E
ducation and workforce readiness issues continue to drive the development of new and innovative programs around the state aimed at boosting the number of people with college degrees and provid-
ing job-training opportunities for those in search of work. And some of these efforts are branching out across the county, creating Indiana jobs and economic development in their own right. A prime example is Project Lead The
Way (PLTW), a nonprofit group founded in upstate New York in 1997 which now provides science, technology, engineering and mathematics (STEM) education curricular programs to more than 400,000 students in over 4,200 schools across all
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50 states and the District of Columbia. “Indiana is our largest state,” says PLTW President and CEO Vince Bertram. “They had an early commitment to our program and we are now in over 400 schools across the state. Indiana is a model state for us. They are leading the nation in school reform and we are hopeful we can continue to build a partnership.” Partly in recognition of that partnership, PLTW announced plans last fall to relocate its corporate headquarters and 30 jobs to Indianapolis. “Indiana has extraordinary leadership,” Bertram says. “Plus we are now in all 50 states, so logistically it made sense for us to be in Indianapolis versus New York.” There were also “strong economic incentives,’ he adds. In Indianapolis, the Ballard Administration has created an income tax credit program for any nonprofit education reform organization that locates in the city. Under the program, the city will refund the personal local income taxes of the organization’s employees who live in Marion County to the nonprofit group to reinvest in their mission.
PLTW seeks to interest middle and high school students in pursuing a college degree, particularly in a STEM field such as engineering. “Most of our students go on to post-secondary education in STEM areas, and there have been a number of studies that show they do much better and they graduate,” Bertram says. Education Linked to Jobs Graduation remains a challenge in the Hoosier state. According to data assembled by the Northwest Indiana Regional Council of Economic Advisors as part of a project to benchmark regional economic trends and opportunities in Northwest Indiana, more than 55 percent of adults 25 and older in Indiana have taken some college courses, but not earned a degree (the figure is slightly higher, around 60 percent, in Northwest Indiana). The impact of a degree is reflected in unemployment rates, the Council found. In the fall of last year, the unemployment rate in Northwest Indiana was 10.6 percent overall. Among those who lacked a
high school degree, it was 19.5 percent. Among high school grads, it was 12 percent, among those with some college or an associate’s degree it was 10.9 percent, and for those with a bachelor’s or master’s degree, it was 5.6 percent. Researchers at Indiana University have been working to refine the relationship between education, jobs and income in even more detail. According to work done by the Indiana Business Research Center (IBRC) at Indiana University’s Kelley School of Business, adults 25 and up can expect a $1,000 bump in annual wages after attempting 25 to 36 college credit hours, compared to those who attempt 12 or fewer credit hours. Those who attempted 49 to 60 credit hours achieved even higher wage gains – $2,300 more on average – com-
Graduation remains a challenge in the Hoosier state. More than 55 percent of adults 25 and older have taken some college courses, but not earned a degree.
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“Older students may want to advance their education, but encounter a variety of barriers that may prevent them from doing so” - Tim Slaper, Director of Economic Analysis, IBRC
pared to adult students attempting fewer than 12 credit hours. Researchers found that annual wage gains also depended on the area of study. Adult students who were industrial arts and consumer services majors and pursued 25 to 36 credit hours earned, on average, about $5,100 more per year than those who attempted fewer than 12 college credit hours. Other programs of study were not as rewarding. Adult students in most other academic programs earned less than the $1,000 average bump in annual wages resulting from attempting 25 to 36 hours. Researchers also found value in associate degrees. An adult student who earned an associate degree gained, on average, about $4,100 per year more in wages than those who attempted less than 12 college credits. Again, the benefits of earning an associate degree depended on the program of study. Only those completing degrees in health and industrial arts and consumer services received an unequivocally higher boost in wages than those who attempted less than 12 college credits, although completers ma-
joring in computers and math also tended to earn more. Health majors gained, on average, $9,900 more per year in wages, while industrial arts and consumer services majors gained $7,000 more annually than those who attempted less than 12 college credits. Barriers to Learning “Relatively little is known about the unique educational experiences of adult students in Indiana,” explains Timothy Slaper, Director of Economic Analysis at the IBRC. “Compared to students who enroll in college soon after high school, a significantly greater percentage of those who start college after age 24 never complete their degree. These older students may want to advance their education, but encounter a variety of barriers – for example, the need to financially support a family – that may prevent them from doing so.” The IBRC study followed a cohort of students who attended classes from 1999 to 2002. Much more recently, a new resource aimed precisely at adult learners – those with some college but no degree – was established, Western Governors University Indiana. Es-
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tablished in 2010 as Indiana’s eighth state university, WGU Indiana offers more than 50 degree programs through an online, competency-based model designed to knock down those barriers to a degree. “There are 730,000 Hoosiers with some college but no degree,” notes WGU Indiana Chancellor Allison Barber. “If you are an adult with some college but haven’t finished, we are the university for you.” WGU Indiana is an outgrowth of Western Governors University, a 15-year old online institution based in Salt Lake City. The online model frees students from traditional time and place barriers to getting a degree – they can fit courses in around work and family schedules, for example – and features a competency-based alternative to traditional credit-hour-driven degrees. “People can log on and work with a faculty member – and every student has a faculty member they work with every week – to determine what they already know,” Barber explains. “We are not going to teach you what you already know, so you can test out of those classes.” As a result, WGU students typically get their degrees much faster. “The average student gets a bachelor’s degree in about two and a half years, and a master’s in about two years,” Barber says. Over the course of WGU Indiana’s first year, she says things have “gone really well,” with the university graduating more than 100 Hoosiers. Companies Take Initiative Of course, not every job requires a college degree, but even then some companies are struggling to fill positions with trained workers – and taking steps on their own to address the issue. www.buildingindiananews.com
Such is the case with Goldsboro, NC-based AAR, a global aerospace company with operations in Indianapolis. Last year, the company commissioned a study of its options after it found itself unable to fill more than 600 open positions nationwide. The study, “The Mid-Skills Gap
Not every job requires a college degree, but even then some companies are struggling to fill positions with trained workers - and taking steps on their own to address the issue. in Middle America: Building Today’s Workforce,” identified several factors contributing to the company’s inability to find qualified workers, including a lack of STEM education and a disconnect between the needs of businesses and what students were being taught, and examined solutions created by several AAR divisions. In Indianapolis, AAR employs 750 workers at its Indianapolis Maintenance Center (IMC), but had the opportunity to add as many as 150 new people if it could find trained personnel. In order to build up that talent pool, AAR partnered with Vincennes and Purdue Universities to create an aerospace-specific training program. Today, Vincennes is among the few aerospace-specific training institutions in America with a full-sized commercial aircraft — the same plane used by AAR to attain its FAA certification at the IMC. To get even more people in the jobs pipeline faster, AAR began developing and recruiting workers for two specialized on-the-job training and apprenticeship initiatives: structures technician and skilled technician.
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MASS PRODUCTION
A World of Investment The first Indiana-based EB-5 Regional Visa Center aims to leverage foreign investment into thousands of Hoosier manufacturing and technology jobs. By David Wellman
H
undreds of new manufacturing jobs could be headed to east central Indiana if a new regional visa center succeeds in attracting more foreign investment to the state. The center was established last fall with funding from Energize-ECI, an economic development umbrella group that works to market a nine-county area in east central Indiana, and its proponents say that the center was already drawing interest even before its approval by U.S. Citizenship and Immigration Services (USCIS). “We have already had a lot of inquiries,” says E. Roy Budd, Executive Director of Energize-ECI EB-5 Visa Regional Center, LLC. As of last October, the center was consulting with two active prospects that could bring about $500 million of capital investment and more than 2,000 new jobs. If you’ve never heard of an EB-5 visa, don’t worry. Up until a couple of years ago, Budd hadn’t, either. But while on a trip to ENERGIZE-ECI EB-5 VISA REGIONAL CENTER COVERAGE AREA COUNTY Madison Delaware Grant Henry Randolph Fayette Jay Rush Blackford
POPULATION 131,312 115,419 68,847 47,181 25,859 24,273 21,514 17,494 13,189
COUNTY SEAT Anderson Muncie Marion New Castle Winchester Connersville Portland Rushville Hartford City
Source: Energize-ECI EB-5 Visa Regional Center, LLC
40
China, Budd met with Chinese Chamber of Commerce officials who mentioned the program to him. “I knew nothing about it,” he recalls, “so when I got back I started to do some research.” What Budd uncovered was a 20-yearold program designed to provide immigrants with a fast track to citizenship if they invested money in order to create jobs in the U.S. To qualify under the EB-5 visa category, a foreigner must invest a minimum of $1 million in a business that will create or save at least 10 jobs. In rural and selected high unemployment areas, the investment amount falls to $500,000. In return, the investor receives a temporary green card, and can petition for removal of all restrictions on that card after just two years. About 10,000 EB-5 green cards are made available every year, but the actual number given out is much lower. In fact, USCIS added the regional center part of the program in 1993 because they were only is-
As the banking system has tightened lending standards, this program has become an excellent alternative source of capital.
EB-5 REGIONAL CENTER GROWTH 2011 QUARTER Q3 Q2 Q1 Source: USCIS
# OF ACTIVE REGIONAL CENTERS 173 147 125
suing a few hundred EB-5 visas a year. Still, it’s only recently that the numbers have really begun to pick up. “Typically they issue two or three thousand,” Budd notes. “But last year they were up to five thousand.” That reflects a combination of capital-hungry projects and tight lending standards. “As the banking system has tightened lending standards, this program has become an excellent alternative source of capital,” he says. The east central Indiana center is focusing on USCIS-approved economic categories: agriculture, food processing, forestry, fishing and hunting; construction; manufacturing and advanced technologies; information technologies; transportation, warehousing, distribution and logistics; and manufacturing and processing – green technologies and recycling. While the Energize-ECI EB-5 Visa Regional Center will be the first Indianaowned and -operated regional center in the state, it won’t be the only one with a footprint in Indiana. There is a regional center in Chicago that also covers Northwest Indiana, as well as one in Louisville whose reach extends into Southern Indiana. The latter center, The Midwest Center for Foreign Investment (MCFI) was founded in mid-2010 by a pair of local doctors, Dr. Robert Robbins and Dr. Jayesh Sheth, with a goal of signing up 200 investors and creating an investment fund of at least $100 million. In its first year, the center secured www.buildingindiananews.com
$2 million and began funding projects in Louisville and Southern Indiana, says COO Katherine Johnson. “In our territory we have helped to fund RobinBrooke, a retirement/nursing home community in partnership with Arcadia in Elizabethtown (KY), Clarks Landing, the former Colgate Palmolive plant in Clarksville (IN) and Guthrie Lofts, a mixed use development that will be the new headquarters of Volunteers of America in Louisville,” she says. “We have numerous other projects which have applied to us for funding.” Not only did MCFI help find foreign investors to fund the Boston Development Group’s acquisition of the Clark’s Landing property last January, it late last year aided three new tenants in locating there. EB-5 investments helped to bring Carton Craft, a printing, diecutting and converting company, to the
development, as well as a healthcare tech- around the country has exploded in the past nology firm, and an international financial year, Budd believes that there is still plenty firm. These three companies will occupy of opportunity for everyone because of the about 100,000 square feet, or 10 percent, of “underutilized and undermarketed” nature of the EB-5 program. the property. “This is a great new tool to accelerate Like Budd, Johnson says the rapid growth of MCFI is due in part to domestic economic development and momentum in lending constraints. “A developer used to east central Indiana,” he says. “We expect borrow on a project at 80/20 levels,” she to begin generating great interest here in says. “The foreign investor helps to bridge Indiana – and around the world.” the gap since loans are now at 60/40 loan to eqEB-5 VISAS BY COUNTRY OF ORIGIN – 2010 uity ratios.” All Other 16.2% Johnson says that building a strong global sales network will be key to the success of the east central Indiana center. “We now have five offices in India, three in China, one in Korea and one in Mexico,” she says. “We are in the process of expanding into Russia, Europe and Africa.” Though the number of regional centers
Canada 2.4%
Russia 2.2%
South Africa 1.8%
People’s Republic of China 40.9%
Mexico 2.6% Iran 2.9% India 3.3% Taiwan 5.0%
Source: U.S. State Department
Great Britain/ Northern Ireland 7.1%
Republic of South Korea 15.6%
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SMALL BUSINESS SPOTLIGHT
A
Scrappy Success Midwest PGM keeps climbing toward the top of the scrap heap. By David Wellman
L
ike many small businesses, Midwest PGM got its start when someone said, you know, we could do this our-
selves. The Cedar Lake-based scrap recycling company, which was founded in 2008 and just expanded again last fall, was the brainchild of Rich Thiel and Jorge Rangle, who were co-workers at an Illinois Toyota dealership. “We were sitting around work one night and not much was going on,” Thiel recalls, when talk turned to the refurbished catalytic converters the dealership sold. Like many car parts, the converters were bought by scrappers for sale to aftermarket parts manufacturers who rebuilt them for reuse. “We said, we’ve got to cut out the middleman,” Thiel says, and so they started buying and selling catalytic converters on their own. “It got to a point where, because of the amount of money involved, we had to form a corporation,” he says. “We were incorporated April 28, 2008, and started looking at how to fund the business.” The fledgling operation, then being run out of Thiel’s pole barn, needed to move to a new and larger location. Searching for a way to pay for that, Thiel came across the Indiana Depart42
Rich Thiel (center) accepts the Client of the Year Award in the NWI SBDC’s annuan E-Day Awards last December. With him are Bill Gregory of the SBDC (left) and Jim Jorgensen, Hoeppner Wagner & Evans.
ment of Environmental Management’s Recycling Market Development grant program, a 75/25 matching grant program which would enable them to leverage their limited funds. Before applying, the two men worked with the Northwest Indiana Small Business Development Center (SBDC) to hammer out a business plan. “After that, Jorge and I went to Indianapolis, and we ended up getting the grant,” Thiel says. The money allowed them to lease a new site with a 2,400-square-foot building and to purchase some equip-
ment, like a forklift and a scale. But six months after they received the grant in November of 2008, the economy tanked – and Midwest PGM’s business boomed. It’s been that way ever since. “Normally people would just put broken appliances out at the curb for the junk man to take,” Thiel says. “But the price of scrap is up and now you can get $10 or $15 for a washer, dryer or refrigerator.” And in an era of $3 and $4 a gallon gas, he adds, people are looking for every dollar they can find. The result was that by the spring www.buildingindiananews.com
of 2009, the company had already outgrown its grant-funded location and needed to expand yet again. The SBDC suggested that Midwest PGM look into the 504 small business loan program, which was attractive because it only required the company to put 10 percent down. Erica Passauer, President and Executive Director of Valparaiso-based Regional Development Company (RDC) which administers the 504 program in northern Indiana, met with Thiel and Rangle. “It was clear that they knew what they were doing and understood their customer base,” she says. However, the first bank she and they approached declined to offer the company a loan. Though the company was showing strong growth, the bank felt the track record was too short, Passauer explains. However, the second institution they spoke with – Centier Bank – jumped at the opportunity. “Centier came out, took a look at the operation, and gave us the okay the next day,” Thiel recalls.
Midwest PGM would actually end up getting a larger loan than it initially applied for when a series of events beyond their control delayed their ability to expand. “It was just one thing after another,” Thiel says. However, the business kept growing strongly at the same time, and in the period between applying for the loan and the close, they realized they were going to need more money. Third Expansion in Three Years It isn’t unusual for applicants to ask for increases in a loan amount in these situations, Passauer says, but banks tend to be more willing to grant the increase for 504 loans, since their exposure is small. “If they are asking for a $50,000 increase, the bank is only putting up $25,000” she notes. Centier Bank was amenable to the changes, allowing Midwest PGM to upgrade to a 8,500-square-foot facility and add new equipment such as a driveon scale. Last fall, the company expanded for the third time in three years, pur-
chasing two acres of adjacent property. The company, which now employs six, continues to grow. “Last September, we went from 100 to 200 tons of steel,” Thiel says. The new location, 15 miles away from the nearest competitor, as well as the drive-on scale, have contributed to those gains. Midwest PGM has also invested in advertising, including a billboard and ValPak coupons. Their success hasn’t gone unnoticed. In 2010, Midwest PGM was the recipient of the SBDC’s Economic Development through Growth and Entrepreneurship (EDGE) Award in the emerging business category, and last November was named Client of the Year in the Northwest Indiana SBDC’s annual Entrepreneurial Excellence, or EDay, Awards. Thiel believes there is still plenty of room for further growth. “By last spring we had gone from 60 to 70 customers a day to right around 100 and that continues to grow,” he says. “People still come in and ask, ‘how long have you been here, I never knew you were here.’”
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southlakenissan.com 43
Education Statistics AVERAGE PUBLISHED TUITION, PUBLIC TWO-YEAR UNIVERSITY (IN-STATE) STATE Kentucky Ohio Indiana Illinois Michigan
2010-11 $3,900 $3,474 $3,447 $3,010 $2,681
2009-10 $3,759 $3,327 $3,279 $2,729 $2,527
Source: The College Board Source: The College Board
AVERAGE PUBLISHED TUITION, PUBLIC FOUR-YEAR UNIVERSITY (IN-STATE)
2008-09
STATE
2010-11
2009-10
2008-09
$3,684 $3,176 $3,137 $2,597 $2,455
Illinois Michigan Ohio Indiana Kentucky
$10,975 $10,170 $8,617 $8,012 $7,511
$10,410 $9,761 $8,170 $7,643 $7,116
$10,021 $9,130 $8,140 $7,222 $6,809
Indiana has
140
college campuses. Source: The College Board Source: The College Board
Source: Education-Portal.com
$6.1 billion Estimated lost lifetime earnings of the nearly 23,600 students who dropped out of high school in Indiana in 2010.
In Indiana, an estimated 23,000 students dropped out of high school in 2010. Cutting that number in half would have the following estimated benefits to the state economy:
Source: Alliance for Excellent Education
60 percent
• $119 million in increased earnings • $89 million in increased spending • $30 million in increased investment • $11 million in increased tax revenue
of U.S. manufacturers have sought help from a trade association or consulting firm on workforce development issues.
Source: Alliance for Excellent Education
Source: The MPI Group, 2011 Next Generation Manufacturing Study
STATE MERIT AND NEED-BASED GRANTS BY REGION – 2007-08 % STUDENTS RECEIVING
Southeast (AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV) Mid-Atlantic (DE, DE, MD, NJ, NY, PA) Great Lakes (IL, IN, MI, OH, WI) Far West (AK, CA, HI, NV, OR, WA) Southwest (AZ, MN, OK, TX) Plains (IA, KS, MN, MO, NE, ND, SD) New England (CT, ME, MA, NH, RI, VT) Rocky Mountains (CO, ID, MT, UT, WY) Total U.S.
ANY STATE GRANT
NEED-BASED GRANT
MERIT GRANT
AVERAGE AMOUNT RECEIVED
41.20% 32.50% 28.80% 25.50% 25.20% 21.90% 21.50% 15.40% 30.70%
20.90% 28.60% 19.50% 20.60% 22.40% 17.50% 18.50% 8.70% 21.70%
23.80% 3.50% 10.20% 2.00% 3.30% 4.90% 3.40% 7.90% 9.70%
$3,600 $3,400 $3,200 $4,700 $3,400 $2,500 $2,400 $2,300 $3,400
Source: National Center for Education Statistics
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Source: National Center for Education Statistics
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$1.047 billion raised in Indiana University’s fundraising drive from October 2010 to September 2011. Source: Indiana University
AVERAGE ANNUAL WAGE DIFFERENTIAL BY ACADEMIC PURSUIT CREDIT HOURS AVERAGE ANNUAL WAGE INCREASE ATTEMPTED 25-36 37-48 49-60
$1,000 $1,000 $2,300
Source: IBRC,Associate wage increaseDegree: versus those $4,100 who attempted 12 or fewer credit hours Earned Source: IBRC, wage increase versus those who attempted 12 or fewer credit hours
INDIANA PUBLIC AND PRIVATE INSTUTIONS ON ENTREPRENEURSHIP – 2011 OFFER MAJOR OR MINOR IN ENTREPRENEURSHIP
Yes 44%
No 56%
OFFER PROGRAM WITH ENTREPRENEURIAL COMPONENT
No 19% Yes 81%
Source: Indiana Commission for Higher Education
EARNED ASSOCIATE DEGREE $4,100
Source: Indiana Commission for Higher Education
AVERAGE PUBLISHED TUITION, PRIVATE NONPROFIT FOUR-YEAR UNIVERSITY (IN-STATE) STATE
2010-11
2009-10
2008-09
Indiana Illinois Ohio Kentucky Michigan
$28,254 $27,505 $27,156 $20,996 $18,554
$27,076 $26,272 $26,104 $19,974 $17,728
$26,078 $25,048 $25,119 $19,121 $17,619
Source: TheCollege College Board Source: The Board
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CONSTRUCTION - IVY TECH
Contractor list for Ivy Tech Community College Warsaw Campus Construction Manager The Hagerman Group Architect MSKTD & Associates, Inc. General Contractor Fetters Construction Inc. Sitework Phend & Brown, Inc.
Just What the D Doctor Ordered Ivy Tech’s newest campus in Warsaw will provide further support for the city’s strong global biomedical sector. By David Wellman
Concrete CCI Commercial Contractors, Inc. Steel Almet, Inc. Masonry Weigand Construction Roofing lawmasters, Inc. U/G Plumbing Griffen Plumbing & Heating, Inc. Sprinklers Shambaugh & Son Electrical l-A Electric Mechanical Project Design & Piping, Inc. Testing & Balance Mechanical Test & Balance, Inc. Aluminum/Glass Delaware Glass & Mirror Ceramic & Glass Tile United Flooring Incorporated Metal Studs, Drywall, Acoustical, Carpet, VCT Strahm Group, Inc. Painting Gibson-lewis, llC Signage Essential Architectural Signs, Inc. Landscaping Fuerbringer landscaping & Design, Inc.
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W
hen Ivy Tech Community College dedicated its newest campus in Warsaw last October, it again proved the old old adage about clouds and silver linings. The college had long had a presence in leased space in Warsaw, and always wanted to build its own facility in the northeastern Indiana community, but couldn’t justify it until the bottom dropped out of the economy in 2008. In order to get approval for a new building from the state legislature, Ivy Tech had to demonstrate that the campus would serve at least a thousand students. “Before 2008 we weren’t anywhere near that number,” says Tracie Davis, Executive Director of Mar Marketing and Communications for Ivy Tech’s North Central Region. “We had about 800 students in a rented facility.” Many students would start there, then finish their studies at campuses in Elkhart/Goshen or South Bend. That changed in the summer of 2008 when the recession began to bite deep into the automotive and RV industries in NorthNorth east Indiana. Laid-off workers with training grants in hand showed up in droves on the college’s doorstep and that spike in enrollenroll ment finally pushed the project over the top.
To do the job, Ivy Tech turned to Indianapolis-based Hagerman Construction, which has plenty of experience building facilities for the college. “We have done eight or nine campuses for Ivy Tech,” says Contract Manager Kent Forman. “I’ve been on six of those projects myself.” Ground was broken on the 46,800-square-foot, $11 million campus in November 2009, with completion scheduled in time for the fall 2011 semester. “Overall, the project went well and was finished on time and on budget,” Forman says. The twostory building includes lecture rooms, classrooms, offices, admissions, a student lounge, a library, distant education classrooms, computer labs, clinical rooms, a bookstore, two science labs, and testing and study areas. “The project sits back from the north side of highway 30 nestling into a hill, giving the building wonderful views to the south and an entrance on the second level from the parking areas to the north,” says architect Jerry Noble of MSKTD & Associates, the Fort Wayne-based company that designed the campus. “Brick, metal panel, concrete and glass are the primary materials, giving the building a warmth and natural feel that www.buildingindiananews.com
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reflects the environmental qualities that are being documented to achieve LEED certification.” (The campus is applying for LEED Silver status.) The 40-acre site of the new campus leaves ample room for expansion, and while there are no immediate plans, growth may not be far off. “The facility is built for about 1,200 people,” Davis notes. “We hoped to open with 1,000 students. On the first day of classes in August we had 1,184.”
The college will continue to lease its previous space, known as the Ivy Tech Orthopedic and Advanced Manufacturing Training Center (OAMTC). The OAMTC houses $750,000 worth of manufacturing equipment funded by the Indiana Department of Workforce Development. The 20,000-square-foot Center was built to Ivy Tech’s specifications in 2008 by Plymouth-based Van Vactor Construction to support Warsaw’s multibillion-dollar global orthopedics busi-
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48
ness and is located across the street from the new campus. Owner Dave Van Vactor actually built two buildings for Ivy Tech in Warsaw, but the college quickly outgrew the first 5,600-squarefoot facility built in 2006. “Fortunately he was able to rent that after we moved out,” Davis says. “The OAMTC is a beautiful building and we often have events for donors there.” Van Vactor is just one of the college’s local supporters. Another is Dane Miller, founder of Warsaw-based Biomet, whose donation largely covered the cost of land acquisition for the project. “We never had any problem selling the project to the community,” Davis says. “We raised $2.7 million before we even broke ground. And we continue to see major partnerships with the health care industry.” Ivy Tech will be offering a number of twoyear degree programs at the Warsaw campus, including pre-engineering, advanced manufacturing and business administration, as well as a new, orthopedic-specific advanced manufacturing certificate based on a curriculum developed in concert with the area’s biomedical industry.
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Center for Innovation through Visualization and Simulation Sponsors list Technology Fund American Iron and Steel Institute AIST ArcelorMittal ASC Global Inc. Avstar LLC BP
Visualize the Savings
CONSTRUCTION
21st Century Research &
Expansion of the Center for Innovation through Visualization and Simulation at Purdue University Calumet bolsters the region’s – and the state’s – attractiveness to business. By David Wellman
U.S. Department of Energy EQ Engineers Falk-PLI Engineering & Surveying Fund for the Improvement of Postsecondary Education Franciscan Alliance, Inc. GE Power & Water Hadady Corporation Lazar Anode Technologies NASA - JPL NIPSCO NiSource Inc. National Science Foundation NWICG Office of Naval Research Praxair, Inc. Severstal North America St. Margaret Health Care Tri-State Industries, Inc. U.S. Department of Education U.S. Steel Corporation Union Gas Limited
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The new Immersive Theater at Purdue University Calumet’s Center for Innovation through Visualization and Simulation will boost the Center’s ability to help companies become more competitive.
“T
his,” said a smiling Dan Hasler, standing in the middle of the new immersive theatre in the Center for Innovation through Visualization and Simulation (CIVS) at Purdue University Calumet (PUC), “is bait.” The Indiana Secretary of Commerce wasn’t the only person impressed with the $2.7 million renovation and expansion of the Center, which was completed last October. “This Center is a dream come true,” said Daniel Hendricks, Vice Chancellor for Advancement. “It is two or three steps up from where we were before.” That claim sets a high bar, considering that the original in-
carnation of CIVS opened in 2009 is credited with helping companies save more than $30 million. After the upgrade CIVS has grown to a 6,300-square-foot, multi-disciplinary research center with a 70-seat immersive theater for advanced research projects and 3-D virtual classroom instruction, and conference rooms. The facility allows users to immerse themselves in a virtual reality environment that can model virtually any structure or system. Companies in fields as diverse as biomedical, construction, energy, economic development, marketing, manufacturing and more have taken advantage of its capabilities to increase production, improve 49
quality and reduce costs. Since 2009, CIVS has collaborated with more than 41 external organizations. Several were on hand at last fall’s ribbon-cutting ceremonies to detail their experiences. “This place is a game-changer,” said Don Babcock, Director of Economic Development for NIPSCO. The utility turned to CIVS to resolve issues with exhaust ducts at its Bailly generating station. By building a virtual model at CIVS, NIPSCO was able to experiment with new duct designs until they developed one that didn’t inhibit its boilers. As a result, the station’s generating capacity grew by 20 megawatts and customers saved $1.9 million a year. The Center was also used by a consortium of steel industry companies and organizations, including ArcelorMittal, U.S. Steel and the U.S. Department of Energy, to develop a comprehensive blast furnace model in order to further refine what John D’Alessio, Manager, Blast Furnace Engineering and Technology, for U.S. Steel – Canada, called “700 years of development.” “We had a problem with our blast furnace and a belief on how one should 11/8/11 run BR_1_4_page_constrad.pdf
a blast furnace,” he said. As things so often turn out, however, what they believed wasn’t necessarily so, and the results of the simulation “changed the way we operate. We achieved $8.5 million in savings with no capital investment,” D’Alessio said. “Our applications are unlimited,” said Chenn Zhou, Professor of Mechanical Engineering and Director of CIVS. “We have developed this as a win-win partnership with the community and industry. They are facing more and bigger global challenges and our facility can provide the tools to meet those challenges.” Cornerstone of Growth Those challenges made it imperative for CIVS to be designed as a practical, solution-oriented facility. “When Dr. Zhou was conceiving the research center, she wanted to pursue a deliberate application of information, imagination and initiative to achieve greater value from resources and to incorporate all the processes by which new ideas are generated and converted into the useful solutions, products and services, which is,AMas a-matter-of-fact, innovation,” 9:32:26
noted Vice Chancellor Ralph Rogers. CIVS can be a cornerstone of economic development in Northwest Indiana, said PUC Chancellor Thomas Keon. “If there is a region in the United States with a strong economic development program, you will find that’s a region with a strong university. We must be a center for economic development, and we must become a center for commercialization as well,” he said. In the meantime, Secretary of Commerce Hasler has hooks to bait. In his conversations with companies who are considering moving to Indiana, Hasler explained that the questions he most often gets aren’t ones about taxes and incentives and utility rates. “They can read all that online,” he noted. “What they want to know is about Hoosiers and about their values? Who are they? Do they lean into technology?” CIVS, he continued, shows that they don’t just lean into technology, “they chew it up and spit it out. This shows there is a source of talent and innovation here just waiting for them, and it also shows why Northwest Indiana deserves to be an engine of growth for Indiana.”
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Northern
REAL ESTATE
Movement The industrial real estate market in northern Indiana is mostly on the upswing. We may even see some speculative construction in 2012. By David Wellman
T
he industrial real estate picture across northern Indiana is brightening, at least in spots, with both sale and leasing activity up and even the chance that the parched building market might see a drop of speculative construction in 2012. “We did have a very good third quarter,” says George Cutro, Vice President, Research Services, for Colliers International Chicago, whose reach includes Northwest Indiana and Southeast Wisconsin. “Leasing activity was up almost two million square feet. And demand is coming from the large users who usually steer the market.” Contributing to that gain was 400,000 square feet leased by solar inverter manufacturer Fronius USA, which is moving from Michigan to the Ameriplex 52
at the Port business park in Portage. Even more encouraging is that buildings are starting to change hands again. Since 2007, sales have been below normal levels because businesses have been reluctant to invest for fear of another downturn. Instead, they have been stockpiling cash. Now some are tapping those reserves to pick off bargains. “You can buy for $30 a square foot what it would cost $50 a square foot to build,” Cutro says. Vacancy rates are declining fastest in the most modern facilities. Older buildings aren’t in nearly as much demand. “Chicago still has 150 million square feet of product, and a lot is second-and third-generation space that should meet the wrecking ball because it no longer meets users’ needs,” Cutro says. The silver
lining is that the relative lack of new space has finally roused the slumbering speculative building market. “We had two spec buildings, one in Chicago and one in Southeastern Wisconsin break ground and that’s stimulating developers to start thinking about building again,” Cutro says. Could a speculative project in Northwest Indiana follow soon? “Maybe by the middle of 2012,” Cutro says. If it happens, he adds, expect something in the 400,000- to 600,000-square-foot range. A similar dynamic is at play in Northeast Indiana, where 1.1 million square feet of empty space had been absorbed by the end of the third quarter of 2011. “We started getting some deal flow in 2010, but it was offset by new inventory coming on to the market,” says Jim Skillen, Vice President in the Elkhart office of Grubb & Ellis | Cressy & Everett. “But in the second quarter of 2011 the property coming on to the market just came to a halt, so that allowed the transactions to have a greater impact on absorption.” A key player in Elkhart has been Lippert Components. Lippert, which makes RV and manufactured housing components, has purchased multiple facilities totaling more than 500,000 square feet and is putting $35 million into a new aluminum extrusion plant, activities projected to create several hundred jobs. Some new inventory began to trickle out again early in the fourth quarter, but Skillen believes the market will continue to see modest gains in absorption and will end the year around www.buildingindiananews.com
kind of buildings “will sit on the market 30-year-old building in a good location, 1.5 million square feet to the good. That for a little bit of time just because they you can attract someone because locawill still leave the better part of six milare big pieces of space,” says Christian tion is still the number one criteria for lion square feet available, he notes, “but Davey, Senior Associate Broker in Grubb a building.” But while some people were it’s very good considering the conditions & Ellis | Cressy & Everett’s South Bend/ doing those kinds of rehabs before the we’ve been in.” Mishawaka office. recession, he says no one is biting right Like Chicago, a lot of the vacant inUnlike Elkhart, industrial vacancy ventory in the Elkhart area is older space now. rates continued to tick up that was either built specifically in South Bend and Mishafor an industry that has moved NORTHERN INDIANA REAL ESTATE MARKET – YTD Q3 2011 waka in the third quarter as away or isn’t up to modern stanTOTAL VACANCY RATE NET ABSORBTION SQUARE FEET MARKET Q3 2011 YTD Q3 2011 new inventory cancelled out dards. Local officials continue Northwest Indiana 54,230,618 8.40% -734,771 space rented or sold. Davey to grapple with the fate of these South Bend Airport Industrial Area 3,616,361 10.70% 27,200 says that interest is defibuildings. “There are properties Granger 983,173 3.90% -1,250 Mishawaka North nitely up, but many compaout there that have gone through 2,648,457 8.40% -2,400 Mishawaka South 4,827,745 13.00% -164,021 nies are still wary of buying tax sales multiple times and Carlisle Industrial Area 1,863,982 3.30% -or committing to long-term have not sold,” he says. “So the South Bend North 8,988,244 10.90% -534,003 leases. And while there are county is now seriously considSouth Bend South 8,922,337 7.10% 33,797 Elkhart North 16,932,178 11.40% 344,355 “decent buildings on the ering just offering these buildElkhart South 17,143,618 10.30% 538,762 market that are just sitting ings for $1 or $50 or $100 and Goshen 9,448,569 6.50% 273,532 there, in certain segments waiving the back taxes to see if Source: Colliers International Chicago, Grubb & Ellis | Cressy & Everett there really isn’t space,” someone won’t take them and Davey says, “like standeither rehab or demolish them.” alone buildings under 50,000 square There are similar older locations in Skillen has been promoting the feet with dock space and adequate pownorth central Indiana, as well as new idea of doing a LEED-oriented rehab on er. We are hopeful that in 2012 there will buildings such as a 538,000-squaresome of these buildings. “I would like be a little more absorption, but I don’t foot distribution center vacated by A.J. to get people to do LEED-certified resthink we’ll see any spec construction.” Wright that await the right buyer. These torations,” he says. “If you can update a
2012 REGAL GRAND SPORT (GS)
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LOGISTICS
A Heartbeat Away After three decades, the $213 million Hoosier Heartland Highway connecting central Indiana and northwestern Ohio enters its final phases in 2012.
SR 25 – HOOSIER HEARTLAND HIGHWAY By David Wellman
I
t isn’t every day that you get to see a miracle. But a small one, of sorts, is scheduled to happen by the end of next year, when 30 years of effort comes to fruition in north central Indiana with the completion of the final leg of the Hoosier Heartland Highway. By linking Lafayette to Logansport, the last segment will create a four-lane highway running from the hometown of Purdue University to the Lake Erie Port of Toledo in Ohio – and a new lease on life for the rural communities along its length. On those sections of the Heartland Highway that are already completed, there 54
“People Lafaye4e to Logansport are contacting us,” confirms retired Indiana State Senator and Chair-
has been an increased tempo in economic development interest in the communities of Huntington, Wabash, and Peru. “This renewed interest in the region is in part due to the announced upcoming completion of the Heartland Highway,” says Garry Petersen, Senior Economist with consulting firm William-Lynn-James, Inc., which has worked on the project for decades. “Before, you had a group of communities that just got lost in the Fifties and have been clawing and scratching their way back ever since. Without the highway, they knew there’s no way to keep the next generation in town because the jobs won’t be there.”
man of Hoosier Heartland Industrial Corridor, Inc. Tom Weatherwax. “They won’t get excited until they see the road done, but they are very much interested.” That excitement stems from the benefits that completion of the highway will have for the cities and towns of the Wabash Valley. Not only will the Heartland Highway upgrade an unimproved two-lane highway into a four-lane transportation corridor that reduces congestion and meets modern safety standards, it will link Interstates 65 and 69 and Highway 31, providing www.buildingindiananews.com
SR 2
a connection between eight cities and three regional economies. Keeping the project on track “has been very difficult,” Peterson admits. “It’s been built under several governors and plans and cost structures. We’ve gone through four or five regimes of environmental planning. We have faced every obstacle that could be thrown at a highway.” Work on the road stretches back to 1982, when the Indiana Department of Transportation began development of a long-range highway plan. The same year, Hoosier Heartland Industrial Corridor, Inc. was created as a regional coalition to tout the benefits of a central Indiana highway. In 1987, the Indiana General Assembly approved a study which established the baseline for completing the highway. The project began with a pair of bridges over the Wabash, derided by some as “bridges to nowhere” since they were built before there was a road on either bank, in 1991. The Fort Wayne bypass was opened in late 1995, the Logansport to Peru segment was opened in 1999, and the Huntington to Wabash segment opened in 2000. The Fort
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to Port segments in Indiana and Ohio are now under construction and will be open to traffic by late 2012 or early 2013. The Lafayette to Logansport segment of the Corridor is scheduled to be open to traffic by late 2013. Praised by White House The total cost of the highway is estimated at $213 million, about 80 percent of which was federal dollars. “It’s one of the largest infrastructure projects in the Midwest,” Petersen notes. Last fall, it was cited in a White House report on the economic benefits of infrastructure improvements, and has been one of the Federal Highway Administration’s go-to examples of rural highway construction since 1991. Petersen describes the multi-decade effort behind the highway as “an exercise in sausage-making,” but says that in the end all the communities along its length understood it needed to get done. “We do site selection, and everyone in site selection uses the same database, and if you aren’t on a highway you’re not even in the database,” he says.
The benefits are already being demonstrated in decisions being made by corporate America. The Andersons Clymers, LLC ethanol plant in Logansport is one of the largest ethanol plants east of the Mississippi River. In 2010, over 62,000 trucks transported product to and from this plant. “Once the Heartland Highway is completed, these regional truck movements will become more safe and efficient,” Weatherwax says. Weatherwax credits a large group of volunteers over the years as well as successive local and state officials including current Gov. Mitch Daniels, who made Major Moves funds available for the highway. “Without that, this highway would not be built,” he says. Though there will still be a few projects, such as linking in downtown Peru, to finish up, by 2013 all but four miles of the highway will be finished. At that point, Hoosier Heartland Industrial Corridor, Inc. “will probably button up,” Peterson says, bringing one of Indiana’s oldest crosscounty economic development groups to a successful end.
55
YOUR WELL-BEING
Wake Up
Sleepyhead
Tips on how to beat fatigue on the job. By Angie Tsikouris, Director of Marketing, Spine Care Specialists
56
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e’ve all experienced that “2:30 feeling.” Some of us more than others, but I have heard more than one of my own co-workers mutter something about the need for a midafternoon nap. Unfortunately, we are all subject to deadlines, daily expectations and sometimes physical labor – none of which are sympathetic to fatigue. Fatigue at work is not a new concept. Some cultures have met the challenge head-on, altering daily work schedules to allow for an afternoon nap, in the hope it yields an energized and more productive employee. Over the past several years, a growing number of companies have emulated this approach with “nap rooms,” quiet spaces where employees can catch a quick 40 winks. Research done by NASA of sleepy pilots confirmed napping works: a 40-minute nap improved performance by 34 percent and alertness by 100 percent. Companies that have embraced nap rooms run the gamut from Google to Nike to Ben & Jerry’s. For firms in a position to let their workers take a quick snooze, nap rooms represent the easiest and most direct way to address on-the-job fatigue. However, not every job lends itself to a nap (sorry, our cashier will be back in 40 minutes, you can check out then) and a weak economy provides further disincentives for companies to consider paying for “down time,” even if studwww.buildingindiananews.com
ies suggest they’ll get more “up time” as a result. So, if we cannot succumb to fatigue, how do we beat it? Here’s a list of useful tips to help aid in overcoming fatigue at work. Eat a balanced breakfast. Yup, that same tried-and-true advice you heard as a kid is still true now that you’re all grown up. Your body is a machine and all machines need fuel. Incorpo-
Not every job lends itself to a nap and a weak economy provides further disincentives for companies to consider paying for “down time.” rating a balanced breakfast into your morning routine is crucial to maintaining lasting energy throughout the day. Registered Dietitian Joseph Mishlove, of Franciscan Physician’s Hospital and Franciscan St. Anthony Health, tells his patients that a balanced breakfast should consist of a complex carbohydrate, a dairy and a protein. “High energy levels have more staying power when they are derived from a complex carbohydrate,” Mishlove says, “Whole grains and fruits are an excellent source of complex carbohydrates.” Too busy for breakfast? Mishlove suggests planning ahead the evening before. In addition to a good breakfast, he recommends smaller and more frequent meals during the day, which allow the blood sugar to remain stable. Stable blood sugar levels are vital for consistent energy and concentration. Mishlove recommends eating every four hours to www.buildingindiananews.com
avoid fatigue. Get a restful night’s sleep. Even the most balanced breakfast cannot defeat a lack of sleep. “The importance of sleep cannot be overstated,” says Dr. Dwight Tyndall of Spine Care Specialists. “Sleep allows the body not only to recover but also allows the body to prepare for what’s next.” To help get a better night’s rest, stay away from caffeinated beverages in the evenings and replace worn-out mattresses. Another tip: start a simple stretching routine before bedtime. Says spine surgeon Nitin Khanna, of Spine Care Specialists, “We recommend that all our patients both surgical and nonsurgical adopt a morning and evening stretching routine. The routine should involve stretching of the basic core muscle and can be completed within 10 minutes. Stretching prior to bed allows the muscles in the back to relax, resulting in a more comfortable night’s sleep.” Take a deep breath. The brain thrives on oxygenated blood. Deep breathing not only increases the circulation of fresh oxygen and vital nutrients to your brain and body, it reduces energy-absorbing stress. When you start feeling drowsy or have difficulty concentrating, take 10 minutes to close your eyes and breathe deeply, filling your lungs to capacity and then fully exhaling the air. Drink up! Our body is twothirds water, so it’s not surprising that keeping hydrated is crucial in order for the body to fully function. Many people don’t drink enough water to maintain an adequate level of hydration. Low energy levels indicate dehydration, and often times only a slight degree of dehydration significantly affects our ability to perform daily routines.
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GREEN & SUSTAINABLE
Indiana Sunrise
Solar energy is powering innovation and job creation in Indiana.
By David Wellman
T
he high-profile failure of a California solar panel manufacturer set off alarms in parts of Indiana late last year, but all indications are that another companyâ&#x20AC;&#x2122;s plans for a large solar panel manufacturing plant in the state remain on track. At the same time, a major solar project in Indianapolis and a pair of growing northern Indiana companies highlight solar energyâ&#x20AC;&#x2122;s potential as an engine of Indiana innovation and job growth. Fremont, CA-based Solyndra LLC was the third and most prominent solar panel manufacturer to declare bankruptcy last August, the other two being Evergreen Solar
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(Marlboro, MA) and SpectraWatt (Hopewell Junction, NY). Solyndraâ&#x20AC;&#x2122;s collapse drew attention in Indiana because the company was backed by more than $500 million in loan guarantees from the U.S. Department of Energy (DOE). In July 2010, DOE had approved $400 million in loan guarantees for Abound Solar, most of which the Loveland, CO-based company planned to use to establish a solar panel manufacturing facility in Tipton County. Abound officials say their plans for Indiana are unchanged and that work will begin in earnest at the former Getrag facility in Tipton County once it completes the installation of a third manufacturing line at its
Longmont, CO, plant in the first half of this year. The Tipton plant, which could eventually employ more than 850 people, was not scheduled to be fully operational until 2014. Abound blamed the failure of other solar panel makers on steep price declines fueled by imports of government-subsidized Chinese silicon cells, a key component in traditional silicon solar panels. Through the first nine months of 2011, silicon cell prices fell from $1.90 a watt to $1.20 a watt. Abound employs a different technology, thin-film cells, and the company says that as its production continues to ramp up, the price of its panels will fall to $1 a watt or lower by 2013.
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LEFT: South Bend-based Inovateus Solar has partnered with GE Energy Industrial Solutions to market solar carports that can recharge cars and power parking lot lights.
RIGHT: Two Michigan City companies are rolling out portable solar generators targeted to the military and first responder markets.
While those cheap Asian imports represent a stiff challenge to domestic panel makers, they are giving a boost to the solar energy business overall. “I have been in the solar energy industry for four years and over that time the turn-key cost of installation has fallen by 75 percent,” says T.J. Kanczuzewski, President of Inovateus Solar (South Bend). Kanczuzewski predicts that costs will keep falling and that the average price of solar-generated power in the U.S. will reach parity with that of other generation methods within the next three years. “It’s already below grid parity in some parts of the county, like New Jersey and Massachusetts, where
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electric rates are much higher than they are here in Indiana,” he notes. Inovateus Solar, a distributor and integrator of solar electric solutions and one of Indiana’s 2010 Companies to Watch, announced a new partnership with GE Energy Industrial Solutions last fall under which Inovateus designed and is marketing solar carports using GE equipment. The two companies unveiled a prototype solar carport at GE’s Plainfield, CT facility. The carport can generate enough energy to charge up to 13 electric vehicles per day, and power all the overhead lighting in the parking lot. Kanczuzewski calls the market poten-
tial for the carports “huge,” pointing to the increasing number of hybrid and electric vehicles on the road, as well as large corporations which are beginning to stock their fleets with electric vehicles. Initial response has been positive. “Everyone who sees the carport is really taken aback,” Kanczuzewski says. “It has a real George Jetson look to it and everyone wants one in their parking lot.” And not just for looks – like any solar installation, when power isn’t being used to recharge electric vehicles, it flows into the power grid, reducing the company’s electric bills. “As there are more electric cars in the future, local utilities will have to keep up
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with the demand for power and the only way to do that is by building new power plants,” Kanczuzewski adds. “Using solar energy is a way to avoid building those plants.” Inovateus projects that it will build 6,000 solar carports worldwide over the next five years. The company will act as the general contractor on some projects, and if they are not the GC, they will have a project manager on site. “We intend to watch this closely,” Kanczuzewski says. The increased workload will require the services of more engineers, project managers and other personnel, and Kanc-
zuzewski expects the company to at least double its current 25-person workforce over the next several years. Portable Power Even more jobs could be added in Michigan City if SolaRover is successful in convincing first responders and the U.S. military that solar power can provide an alternative to traditional diesel-powered mobile generators. Two varieties of SolaRover, the Alford Cube and the Mojave-3 are being manufactured by Michigan City companies Winn Machine (Alford Cube) and MCTD, Inc. (Mojave-3).
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If the products take off, MCTD President Tim Johnson says the two firms will likely create a third company to produce both generators, a move which could create “hundreds” of jobs. Lone Tree, CO-based SolaRover turned to Winn and MCTD after initial design work for a solar-powered mobile generator by a California company came in way over budget, Johnson explains. “They chose us to redesign and costreduce the project,” he says. To date MCTD has produced two Mojave-3’s, while Winn has built one Alford Cube and has an order for two more. The products gained some momentum after the Solyndra bankruptcy, he adds, “because they do not require government subsidies. They costjustify themselves.” Solar generators have several advantages over traditional diesel generators. They don’t need fuel, give off no exhaust and don’t require as much maintenance. And where diesel generators just sit in storage when not in use, solar generators can be set up and hooked into the grid to lower energy costs for their owners. First responders such as police and fire departments are among SolaRover’s initial target markets, but the largest potential customer is the U.S. military. “10,000 diesel generators are replaced by the military every year,” Johnson says. Incorporating solar generators would not only save the military money on fuel, maintenance and replacement costs, they could also save lives. “A major portion of the loss of life comes from insurgents targeting fuel convoys,” Johnson says. Farming the Sun Products like the SolaRover and Inovateus’ solar carport demonstrate the potential of solar power to drive innovation. But conventional solar initiatives are underway in Indiana as well, such as the construction of a massive solar farm at the Indianapolis International Airport. The 60-acre, 41,000-panel solar farm will generate more than 15 million kilowatt hours of electric energy, enough to power 1,200 average homes for a year. Set to be in operation by the middle of 2012, it will be one of the largest airport-based solar farms in North America. It is being built by ET Energy Solutions, a joint venture established by three Indianapolis companies: architecture and engineering firm Schmidt Associates, technology deployment specialist Telamon Corporation and mechanical contractor Johnson Melloh, Inc. SANYO North America Corporation will provide the panels and assist www.buildingindiananews.com
Artist’s conception of the solar farm at the Indianapolis airport, set to be in operation later this year. with arranging financing for the estimated $35 million to $40 million project. Electricity created by the farm will be fed directly into the grid operated by the Indianapolis Power and Light Company (IPL) through existing surface transmission lines. No public funds or airport costs will be involved in the project. “The solar farm is just the latest innovation in our land-use strategy moving toward implementation,” says John D. Clark III, Executive Director and CEO of the IAA. “It
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supports our commitment to sustainability while helping to grow and diversify our revenue stream.” Beyond temporary construction jobs, the farm will only create a single operations and maintenance position, but just its announcement generated interest for the companies involved. “We have already been contacted by other airports throughout the country,” says Johnson Melloh President Nick Melloh. He sees opportunities for similar facilities at other airports around the
state – if utility and tax policy changes are made. Currently, only two Indiana utilities, IPL and NIPSCO, offer a Feed-In Tariff (FIT). Under a FIT, utilities pay more for renewable energy than they do for conventionally generated electricity. The higher renewable price is guaranteed for a certain length of time to offset the higher costs renewable energy and encourage their development. Melloh says that more Indiana utilities need to offer FITs, and IPL and NIPSCO both need to lengthen the terms of their FITs to 20 years. “Property taxes are a huge problem for solar PV developments,” he adds. Most states allow a property tax exemption for such facilities, but not Indiana. “Every potential equity player we have talked to about funding sees Indiana’s current property tax rates for renewable energy projects as prohibitive for funding developments,” he says. “If a financial incentive like a FIT doesn’t exist, then large-scale projects won’t happen. Property tax issues just make an already challenging environment worse.”
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WELCOME CENTER
Room Resurgence Indiana’s lodging industry rebounded in 2011 and is set to grow this year.
By David Wellman
B
oth occupancy rates and room rates were growing across Indiana through the first half of 2011, a welcome sign to hospitality and tourism executives who have been working to dig the industry out of a recession-induced hole since mid-2009. And with new hotel construction proceeding at a slow pace, the stage is set for a continued recovery into 2012. In terms of occupancy rate growth, the Gary metro area was leading the rebound with an 8.7 percent increase in the first quarter of the year. Meanwhile, the Evansville-Henderson metro area in Southern Indiana was seeing actual dollars come back the fastest, recording a seven percent gain in the Average Daily Rate (ADR). But perhaps the biggest sign of relief could be heard in Indianapolis, where occupancy grew seven percent and ADR by 3.6 percent in the first quarter, despite the arrival of more than 1,000 62
new rooms at the flagship JW Marriott, which opened in February. “It’s fascinating that Indianapolis has been able to absorb that supply,” says Vail Brown, Vice President of Global Sales and Marketing at STR, a Hendersonville, TN-based company that tracks the hotel industry. “The Indianapolis Convention and Visitors Association has done a great job of marketing the city and its new convention center.” Sports Boost South Shore Likewise, the Gary area has benefited from the efforts of the South Shore Convention and Visitors Authority, which shepherded a variety of events, many sports-related, into the Gary area and surrounding communities in the first half of 2011. These have included the 64-team Lutheran Basketball tournament (2,400 hotel rooms, $600,000 in economic impact), the Adidas Hardwood Challenge Basketball tournament
(500 hotel rooms) and recently in June, the PFX Professional Softball Tour, which brought 900 athletes and 2,500 visitors to Hammond. In Evansville, the first half of the year is just the warm-up for the opening of the city’s new, $127.5 million downtown arena. The 16 luxury suites of the 9,000-plus seat facility sold out almost immediately (at an annual cost of $36,000 per) and a local Ford dealer snapped up naming rights, paying $4.2 million to brand the arena Ford Center for the next decade. Plans for a $32 million, 220-room Hyatt Place Hotel nearby have gone less smoothly, with financing problems creating delays and casting doubt on the fate of the project. Having a hotel project fall through isn’t unusual, Brown says. STR’s tracking has found that, on average, 40 to 50 percent of hotel projects never make it out of the initial planning stage, and about 30 percent of those that reach fiwww.buildingindiananews.com
nal planning still never pan out. This is important in Indiana because most of the new hotel projects in the pipeline in Indiana as of March were still in the planning stages; only 10 projects totaling 895 rooms were actually under construction. Building Into a Downturn “Historically, our industry is notorious for building into a downturn,” Brown says. This was true of the most recent recession as well, in which room demand plummeted while new hotels, begun when times were flush, continued to come on line. The natural response of hoteliers to declining occupancy was to cut prices. By the first quarter of 2011, the situation had reversed, with demand for Hoosier hotel rooms up 4.5 percent while room supply was up just 1.6 percent, buoying room prices. Another piece of good news is that durNot only ing the recession, ADR, are Indiana in actual dollar terms, hotels fell twice as far nationgaining, ally as it did in Indiana, they have $10.60 versus $4.81. So less ground not only are Indiana hoto make up. tels gaining, they have less ground to make up. While STR does not provide state-level projections, it predicted that nationally, demand for hotel rooms would continue to grow through the rest of 2011 and in 2012, and would also continue to outpace the addition of new hotel space. Occupancy rates are projected to reach 59.5 percent in 2012, roughly equal to 2008 but still below the 63.2 percent recorded in 2006. “Things are moving in the right direction,” Brown says. “Usually, when the industry goes into a decline, it’s the big markets like New York that decline first and then it trickles down to smaller markets. And it’s the same when it turns around. But this time it looks like the smaller markets began to feel the recovery at the same time larger ones did.” One factor that threatened the rebound was last summer’s high gas prices, but Brown says STR’s research shows that gas prices didn’t affect demand. “Families were still going on vacation,” she says. “Gas prices might affected where they go and where they stay, but they still went.” www.buildingindiananews.com
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MARKETING
Building a Better Event Packing the event takes more than ticket sales. By Cindy Hunt
E
vents can be used to demonstrate a product, get a message out to customers and clients, celebrate achievement and allow industry members to come together and share ideas. But an event takes a great deal of work to put together, and there are several key factors to consider
Once you have established your goals, take a step back and ask whether it makes sense for your organization to manage the event internally or if you should secure the services of a person or agency with expertise in the type of event you would like to do. If managing the event internally is likely to cause signifi-
the event a success without spending unnecessary money. The budget should be updated every time money is spent for the event to provide an accurate snapshot of where the event is financially. The venue for the event should be easily accessible and appropriate to the type of event and attendees. For example,
Step 1: Determine why you are having the event and what your goal is.
Step 2: Choose a coordinator and establish a budget.
Step 3: Choose a target audience and compile invitation list.
to ensure success. The first step in planning and marketing an event is determining why you are having the event and what your goal is. This may seem obvious (and in fact, it is) but if you canâ&#x20AC;&#x2122;t explain this in a couple of clear, concise sentences, then your event is likely to be a waste of time and money.
cant disruption, requiring people to set aside their normal duties in order to plan and execute the event, you will want to look for outside help. If you choose to manage your own event, the next step is to choose a coordinator and establish a budget. The coordinator should be a problem-solver who can think outside of the box in order to make
you donâ&#x20AC;&#x2122;t want to host an event for haute cuisine at the local buffet restaurant. Many venues will have catering options available, but if you have a special menu in mind, you must check to make sure you can bring in outside catering staff or make sure the type of food you want is on the menu. The most important part of the event
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is your attendance. You have to choose a target audience and focus on them. For example, if your construction company is trying to introduce an innovative design technique, then you want to make sure contract builders and designers are on your invite list. Once you have an invitation list, you have to decide how your invitations will
Step 4: Decide how your invitations will be sent. be sent. Traditional paper invitations? E-mail? Ads aimed at the general public? The reason for the event and your goals will likely influence your choice. The invitations must list the organization hosting the event, date, time, place and any registration information. The registration process should make sense for the audience you are targeting. For example, if your target audience generally lacks internet access, provide a phone number and mailing address. It’s usually
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smart to have a couple of different ways to register. Easy, convenient registration leads to more accurate headcount forecasts and more attendees. You can promote your event in a
Step 5: Promote your event. number of ways, from social media to traditional print advertising to e-mail blasts. A combination of methods will ensure you’re reaching your audience as many times as possible. Make sure they know the event is happening and make sure you are showcasing the value in attending. An additional option is press releases to
Step 6: Ensure a smooth registration process the day of the event. the local media. Not only can you get free press, you can stir local media interest in doing a story on the event. On the day of the event, the coordi-
nator needs to make sure the registration process goes smoothly for the attendees and should be watching for any small problems that could arise. You should always be accommodating to the guests. Once the event is over, the hard work doesn’t stop. Send out thank you cards to anyone that was instrumental to the event, such as sponsors, exhibitors, cater-
Step 7: Post-event details: send out thank you cards, create database of attendees and surveys. ers and most importantly attendees. If you are planning on making the event an annual one, maintain relationships with the people and businesses you worked with. Also, you should create a database with all attendee information so that you can easily contact them next year. Surveys are also a great way to determine what worked well and what did not so that you can improve your event the next time you host it.
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ECONOMIC DEVELOPMENT
PoweredbyTech Technology companies and initiatives are driving job growth in Indiana. By David Wellman
T
he high-tech industry bounced back strongly over the first half of 2011, recouping much, if not all, of the job losses the sector suffered in 2010. According to figures compiled by the TechAmerica Foundation (Washington, D.C.), the high-tech sector – consisting of high-tech manufacturing, communications services, software services, and engineering and tech services – added about 115,000 jobs in the first half of last year. That compares to an estimated 115,800 jobs which had been lost in 2010. Though the Foundation did not have
state-level data for 2011 available at press time, its research put Indiana’s share of the jobs lost in 2010 at a mere 300. Despite this small dip, Indiana remained the 23rd-
The high-tech sector added about 115,000 jobs in the first half of last year. largest “cyberstate,” employing 70,300 with a total payroll of $4.3 billion. Most of the Hoosier losses came in the Internet and telecommunications industries, which
TOP INDIANA HIGH-TECH INDUSTRIES – 2010
INDIANA’S TOP TECH EXPORT SECTORS – 2009 SECTOR
EXPORTS
NATIONAL RANK
Consumer electronics Electromedical equipment Computers and peripheral components
$174 million $453 million $477 million
10 14 16
Source: TechAmerica Foundation
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shed about 1,000 jobs, while the computer systems design and related services sector (+700 jobs) and the engineering services sector (+200 jobs) experienced the strongest growth. Indiana has put a premium on luring high-tech companies to the state because they tend to pay well. The average salary for an Indiana worker in the high-tech sector is $61,800, which is 62 percent higher than the average private-sector worker in the state. Admittedly, that is less than the average high-tech wage in surrounding states,
INDUSTRY
JOBS
Consumer electronics manufacturing Photonics manufacturing Communications equipment manufacturing
700 1,100 3,900
NATIONAL RANK 5 7 8
Source: TechAmerica Foundation
www.buildingindiananews.com
but the cost of living advantages Indiana enjoys help to make up for that, says Jeffrey Lacy, CEO and founder of Electronic Commerce, Inc. (ECI), The Elkhart-based software development company is “in a location where we can recruit people from both coasts and they can get a big bang for their buck in housing,” he notes. “The state is economically friendly and the cost of living is definitely an advantage.” Founded in 1996, ECI pro-
The average salary for an Indiana worker in the high-tech sector is $61,800, 62% higher than the average private-sector worker in the state. vides Web-based employee management services, such as payroll and benefits management, to companies in all 50 states. Its clients range in size from 50 to 10,000 employees, though Lacy says the sweet spot are middle-market firms with 200 to 5,000 employees. “Our services are very cost-efficient for that group,” he says, because of ECI’s ability to spread the costs of maintaining a computer system and tracking changes to tax and employment laws across the country over a large client base. The company currently has
120 employees at its Elkhart headquarters, and recently announced plans to increase its office space to 19,000 square feet and hire an additional 25 to 50 people in 2012 in order to meet continued growth, Lacy says. Universities an Attraction The decision to remain and expand in Northeast Indiana is not only due to cost of living considerations, but the proximity of universities like Notre Dame and IU South Bend, as well as other schools around the state such as Purdue and Rose-Hulman. “They bring in, and put out, the kind of workforce we look for,” Lacy says. ECI will have competition for those graduates from another workforce management solutions company, Kronos, which announced plans last October for a fourth technology center in Indianapolis which is expected to ramp up to 250 employees by 2015. The Chelmsford, MA-based company will invest more than $5 million to outfit existing space in the PNC Tower in downtown Indianapolis. The company has other centers in Chelmsford, Montreal and Noida, India. “Kronos is excited to be expanding into Indianapolis and looks forward to contributing to the business landscape and providing high-quality jobs for the talented graduates of top-notch local universities,” says Chris Todd, Senior Vice President of
HIGH-TECH EXPORTS BY STATE – 2009 STATE
EXPORTS
% TOTAL EXPORTS
JOBS SUPPORTED BY TECH EXPORTS
Illinois Indiana Ohio Michigan
$5.9 billion $2.0 billion $5.9 billion $2.0 billion
14% 9% 9% 6%
32,600 7,000 20,800 10,300
Source: TechAmerica Foundation. Numbers in ( ) represent national rank.
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Services. Kronos has a number of customers based in Indianapolis, including Ball State University, IU Health, the Indianapolis Motor Speedway and St. Vincent Heart Center of Indiana. Commercializing Innovation Kronos received a number of incentives from the city and the state including tax credits for job creation and abatements on property taxes, as well as site selection help from local groups, all of which is typical of economic development deals. But other more unique programs
exist around the state to help drive the tech sector. One example was honored late last year by the Federal Laboratory Consortium for Technology Transfer (FLC) Midwest Region: Ball State University’s Military 2 Market (M2M) program with the Naval Surface Warfare Center, Crane. M2M is a partnership between NSWC Crane and Ball State’s Entrepreneurship Center which allows students to evaluate and develop additional commercialization applications for the Navy’s patented inventions.
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INDIANA’S TOP TECH EXPORT DESTINATIONS – 2009 COUNTRY
EXPORTS
Canada Germany China
$536 million $173 million $150 million
Source: TechAmerica Foundation
As a result of the partnership, NSWC Crane receives a thorough assessment of a technology’s commercialization potential while students have access to real-world products as the basis for their business plans. During the first year of M2M, student projects included repurposing a material developed to test nonlethal munitions into a simulated skin on which health care professionals can perfect suturing techniques. Students also developed a black box device combining global positioning system, radio frequency identification and other technologies to enable large fleet operators to better monitor their vehicles. “Crane puts a great emphasis on technology transfer, and this partnership with Ball State is a perfect catalyst for increasing applications and commercialization of federal inventions, ultimately driving an innovation economy,” says John Dement, NSWC Crane Technology Transfer Program Manager. He adds that NSWC Crane continues to see tangible results from the program, including a patent license, a cooperative research and development agreement and four new technology-based startup companies. Loans, Incubators Help Companies Some local governments have set up programs to help high-tech companies get off the ground as well. In Kokomo, Liram, LLC, a property management company established last fall, received $155,000 through the city’s Technology & Industry Revolving Loan Fund (RLF) to open a facility which will serve as the new home of AndyMark, a robotics-component company previously based in Kokomo’s Inventrek Technology Park. AndyMark is projected to employ six full-time and eight part-time positions over the next two years. The low-interest loan is matched against funds from Community First Bank of Indiana. www.buildingindiananews.com
THE HIGH-TECH INDUSTRY BY STATE – 2010 HIGH-TECH HIGH-TECH ESTABLISHMENTS STATE Illinois Indiana Michigan Ohio
19,300 (5) 6,200 (20) 9,700 (15) 11,900 (12)
HIGH-TECH WORKERS
PAYROLL
201,400 (8) 70,300 (23) 155,100 (15) 162,900 (12)
$16.1 billion (10) $4.3 billion (24) $11.5 billion (15) $11.2 billion (16)
Source: TechAmerica Foundation. Numbers in ( ) represent national rank.
“As a longtime member of Inventrek Advisory Board, I am especially pleased to see this project come together,” says Development Director Debra Cook. “AndyMark is a homegrown company with clients around the world, bringing new money into our community. The RLF program was made for initiatives like this.” AndyMark’s expansion marks yet another success story from Inventrek Technology Park, Kokomo’s high-tech
incubator. “AndyMark is another example of the role Inventrek plays in our community, developing their entrepreneurial business and graduating to a permanent home,” says Jeb Conrad, the President and Chief Executive Officer of the Greater Kokomo Economic Development Alliance. “Their success has been a great partnership, and we look forward to the company’s future growth.”
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DRIVE-IN SERVICE
Michigan City, IN FOR LEASE
Phone: 312-446-7059 /219-736-0014 Website: www.commercial-adv.com Broker Name: Commercial Advantage, Inc. Email: Lori Tubbs: ltubbs@commercial-adv.com / Joel Henderson: jhenderson@commercial-adv.com Total Square Feet: 300,000 sf (+/-) contiguous space – divisible from 25,000 sf Property Type: M-1 Heavy Industrial Description: UTILITIES: Fully Improved ELECTRICAL: 3-phase, 480 Volts HEAT: Gas/Forced Air with AC in offices RAIL: CSX rail spur can be made available OVERHEAD DOORS: Varied and numerous drive-in doors DOCKS: 22 docks available CRANES: Total of 30, ranging from 5 to 20 tons AMENITIES: Heavy power/cranes. Industrial Complex with office space sits on 40 acres and is near major highways with available rail access.
INJECTION PUMPS INJECTORS •TURBOS Our technicians use the latest computer diagnostic test equipment to get you back on the road quickly and efficiently. AUTHORIZED CUMMINS DEALER
DIESEL ENGINE DIAGNOSTICS & REPAIR SINCE 1982
(219) 663-7286 • www.mdidiesel.com 1145 E. Summit Street • Crown Point, IN 46307
WANTED: INDUSTRIAL BUILDING Contractors Steel Company 36555 Amrhein Rd. Livonia, MI 48150 Donald R. Simon, President (734) 452-3332 Building Requirements: 150,000 SQ FT building minimum with room to expand. Building Amenities: 10-20 ton cranes, 80’ or wider bays, heavy duty floors. Desired location: East Chicago, Gary, Hammond, IN. We will consider other Northwest Indiana locations. Lot Requirements: 15 acres minimum, heavy industrial zoning. *Rail access and office space is a plus.
WBE CERTIFIED
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The Last Word The Advantages of Re-Training Older Workers Older workers can provide the experience companies need to thrive in a tough economy. By Julie Yoways, Division Manager, ESW Inc.
W
hile many companies routinely spend a lot of time and money training new employees, too few consider the numerous advantages of re-training older employees. In both the manufacturing and service industries, older workers are overlooked as potential candidates for existing jobs, often for misguided reasons. But more than ever, older workers are willing to work past what was once thought of as retirement age, and the advantages of re-training older workers are many: their understanding of employer expectations, their willingness to learn and, most of all, their experience. Older workers are usually defined as those over the age of 50. Some are considerably older and some may even be retired from a previous job or profession. According to preliminary data from the 2010 U.S. Census, there are more than 936,000 Hoosiers aged 45 to 54 and over 770,000 aged 55 to 64. These two groups represent the second- and third-largest chunk of the stateâ&#x20AC;&#x2122;s population aged 16 and up, and more than 80 percent of the former group and nearly 65 percent of the latter are in the labor force. In addition, nearly a quarter of Indianaâ&#x20AC;&#x2122;s population aged 65 to 74 remain in the workforce.
Invaluable Experience The experience that accompanies an older worker to a new profession is invaluable. Managers and business owners
recognize the difficulties that occur when trying to teach the new workers lessons that are not learned first-hand. Older workers have problem-solving skills that are based on their lifetime of previous work experience and may be able to more effectively mentor new recruits. Most are eager to share their past experiences. There are many advantages to using
More than ever, older workers are willing to work past what was once thought of as retirement age, and the advantages of re-training older workers are many: their understanding of employer expectations, their willingness to learn and, most of all, their experience. existing workers rather than hiring new younger workers. Life experience, time management and project management skills are just a few. An older worker may have an innate ability to understand the expectations of the job based on previous
real life work experiences. They can recognize through past experience where weaknesses may occur. Retraining older workers also promotes a company-wide feeling of loyalty for both the employees and the employer. Older, experienced workers come with a lifetime of contacts from work, clubs and organizations that would take an inexperienced worker a lifetime to build. They use these contacts to build new relationships.
Social, Economic Incentives Older workers choose to continue to work for many reasons. Some report that they like to stay productive and keep busy. Some continue to work for social reasons. Due to medical advances, older workers are healthier, feel better and keep working longer than ever before. Some older workers are interested in working well beyond the normal retirement age due to economic realities. The benefits the employer receives from training older workers are numerous. Finding, recruiting, hiring and training new employees represent a huge cost for almost every company. Many of the employed older workers today are computer literate, loyal and most of all, experienced. With the cost-cutting measures taking place at most companies today, workers are now required to wear more hats than ever before. Older, experienced, welltrained workers can be the best answer for tomorrow.
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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Helping our clients streamline operations and maximize profits STAFF SOURCE
HOSPITALITY SERVICES GROUP
• 24/7/365 Staffing Assistance • Temporary or Permanent Staffing • Direct Hire/Permanent Placement
• Certified Server Training • Train the Trainer Program • Providing licensed bartenders, servers cooks & other hospitality staff
Helping people find jobs & advance their careers ....helping companies with workforce solutions.
You have the event, we have the help.
TECHNICAL SERVICES GROUP
CONTRACT SERVICES GROUP
• Computer IT, Network Management, • Disaster Recovery, Web Design and Development services
• Transloading and Cross-Docking • Warehousing and Sequencing • Sub-Assembly • On/Off Site Quality Control/Inspection
Let us help with IT. Let us make IT simple!
Implementing quality improvement techniques while helping reduce costs.
Contact Dan Kesic at dan@mybsg.net or 219.989.9675 for more information.
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