Building Indiana: January/February 2015

Learning from Each Other 34 | SBA 504 Loan Myths 42 | Building Stronger Leaders 62

JANUARY/FEBRUARY 2015 | $6.95

Learning Indiana is

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Publisher’s Desk New Calendar, New Opportunities

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Fresh calendars signal the start of a brand new year, presenting us with a clean slate to

fill with opportunity. Our office at Building Indiana is unified in our one-word description of our feelings about 2015 - possibility.

With the start of each new year, we’re proud to bring you our spotlight on education.

When it comes to business, regardless of the industry, continued education is often the key to growth. Whether it be enhancing the skillsets of a staff, augmenting the leadership of a company, or training for a new business venture, learning is critical for the continued success of any business.

Subsequently, continued learning is also vital for the state of Indiana, presenting us

with new technologies, new methods, and new opportunities every single day.

We’ve compiled some very interesting aspects of Hoosier learning for you this year,

certainly nothing you’d readily expect. For example, did you know there’s a growing disaster management body in Northwest Indiana that consists of law enforcement personnel, corporate entities, first-responders and many other public/private groups? Professionals from these various organizations come together monthly to share information and learn from one another about ways in which the group can successfully overcome natural or man-made disasters.

219.226.0300 • 317.632.1410

Additionally, we’re taking a look at how the state of Indiana educates new parents on

extremely important health related topics in an effort to reduce infant mortality, record

CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher Andrea M. Pearman apearman@buildingindiana.com Sales Ted Lykowski tlykowski@buildingindiana.com Tammie Reynolds treynolds@buildingindiana.com John Moore jmoore@buildingindiana.com Writer/Editor Nick Dmitrovich ndmitrovich@buildingindiana.com Art Directors Jeff Fogg jfogg@buildingindiana.com Jeanette Cherry jcherry@buildingindiana.com Accounting Craig Marshall cmarshall@buildingindiana.com

setting research funding earned by many of Indiana’s top universities, new educational facilities under construction around the state, supervisory training programs, and so much more. There are so many diverse education-related topics going on right now throughout

Indianapolis Office Business Development Manager Lee Ann Richardson 888.226.0330

Indiana it was difficult to squeeze them all into one issue, but we’re very happy to be presenting you topics that you probably haven’t heard of before today.

Warsaw Office Business Development Manager Julie Monteith 888.226.0330

We hope you’re as excited about 2015, and all there is to

learn, as we are. As always, it’s our mission to bring you the very best in Hoosier business news, right from our desk to yours.

Building Indiana is published by Diversified Marketing Strategies WBE / DBE Certified

Kind Regards,

Andrea M. Pearman Publisher

Visit us at thinkdiversified.com

Subscriptions: Standard rates: $25.95/year Single copy price: $6.95 2006 Communicator Awards’ 2009 Davey Awards Silver Award of Distinction Award 2009 Communicator Awards’ Award of Excellence 2011 Communicator Awards’ Award of Distinction

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2007 Summit Creative Award 2010 Summit Creative Award 2012 Summit Creative Award 2013 Summit Creative Award

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2008 Hermes Gold Award 2009 Hermes Gold Award 2010 Hermes Gold Award 2011 Hermes Gold Award

2006 Marcom Gold Award Winner 2007 Marcom Gold Award Winner 2008 Marcom Gold Award Winner 2010 Marcom Gold Award Winner 2013 Marcom Gold Award Winner

Andrea M. Pearman 2009 Small Business Journalist of the Year

2006, 2008, 2012, 2013 APEX Award for Publication Excellence

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2009 Silver Award 2010 Gold Award 2012 Bronze Award

Copyright ©2015 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 apearman@buildingindiana.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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Contents

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JANUARY

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FEBRUARY

EVERY ISSUE

D E PA R T M E N T S

04 Publisher’s Desk 08 Contributors 10 Business Buzz 24 People News

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EXPERT ADVICE

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BEING PRODUCTIVE Optimistic

Outlook 2015

State of the Industry The Facts about Indiana’s Common Construction Wage Law

Safety Zone NWI Contractors are welcoming new partnerships with IOSHA

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LOGISTICS Facing the National Transportation Crisis

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F E AT U R E S

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26 PHOTO FEATURE 34 cover story

Learning from each other

44 46

Facts & Stats

YOUR WELL-BEING Protecting Little Hoosiers

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Small Business Spotlight

SBA 504 Loan Myths

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56

The bottom line

Accelerating Hoosier Education

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Construction Feature

Building a Hub

Construction Feature A Haven from

Final Exams

RULE OF LAW The World Wide Web and the new Labor Laws

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2015

WOrker’s comp Eyes on the Road

LIFELONG LEARNING

Building Stronger Leaders Economic Development

Foreign Investment

Boosts Indiana’s Economy

66 the last word

Bring Back the Gary Plan

We Welcome our readers to provide our editorial

mass Production An Opportunity Arises

staff with suggestions on emerging issues, trends and opinions offering a different perspective.

Contact: editor@buildingindiana.com

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Contributors Larry Gutierrez

Dewey Pearman

Larry Gutierrez is an Associate Professor and

Dewey Pearman serves as Executive Director

Department Chair at Ivy Tech Community College

for the Construction Advancement Foundation.

Northwest for Building Construction Management

He has a Master’s in Economics from Indiana

and Construction Technology. He is a delegate for

State University. The foundation promotes the

the Indiana/Kentucky/Ohio Regional Council of Carpenters, and

union construction industry of northwest Indiana by helping to

a 15 year member of Carpenters local 1005. He is passionately

enhance its efficiency and competitiveness via labor relations

involved with career pathways for numerous high school building

and government management, education, training, safety and

trades programs that may transition into a lifelong career.

workforce development.

Arthur C. Johnson II Arthur Charles Johnson II is a partner at Johnson, Stracci & Ivancevich, LLP. Arthur’s practice focuses on civil litigation, labor, employment, and construction law. He is licensed to practice in the federal and state courts of Indiana, as well as the Northern District of Illinois, as well as being a member of the Lake County, Indiana, and American Bar Associations.

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Main Buzz

Learning, Improving, Networking and Growing The Beyond Safety Expo Arrives in March, Don’t Miss Out on the Midwest Region’s Premier Safety Event

By Nick Dmitrovich

T

he Beyond Safety and Reliability Conference and Expo is returning to Northwest Indiana on March 24 & 25, 2015. Now is the time to purchase your tickets and incorporate your company into one of the most outstanding business events in the Midwest region.

Beyond Safety is held in partnership between the Northwest Indiana Business Roundtable (NWIBRT) and the American Society of Safety Engineers (ASSE). More than 600 safety professionals are brought together to experience the latest in safety education and technology across the two-day event.

Participants are provided an excellent opportunity to network and explore best practices and cutting-edge issues that influence the safety and reliability of construction and maintenance projects.

On the trade show floor, countless examples of new safety technology and innovations are displayed in an atmosphere that fos-

ters collaborative idea sharing among safety professionals and more than 50 exhibitors.

Even more exiting are the classes and presentations delivered on the second floor of the event, where safety professionals and other contractors are given the opportunity to earn continuing education credits and other certifications. With over 25 educational sessions taking place, there is plenty to be gained by everyone involved.

Several premier corporations will be in attendance at the event, including representatives from BP, NIPSCO, the Northwest Indiana Contractors Association (NWICA), and many more.

Participating in Beyond Safety grants your company the distinction of networking and sharing information along with these giants.

Bill Rathjen, President of NWICA and Corporate Vice President of the Pangere Corporation, said, “Safety is part of construction that everyone encounters. It’s an honor to be able to be a part of the Beyond Safety and Reliability Expo.

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

Safety is not a novelty, it’s a necessity.”

Over the past few years, NWICA and other leading entities have coordinated their meetings to take place during the expo.

“If you’re a company involved in construction, maintenance, or safety administration throughout the Midwest region, then the Beyond Safety Expo is the very best place to be to learn about new ideas and development in your industries,” said Andrea Pearman, Executive Director of NWIBRT and coordinator of the event.

“Education is the cornerstone of this event,” Pearman said. “There’s a tremendous amount of valuable information being shared every minute of this two-day expo, and it’s information your company will definitely not want to miss out on.”

For tickets, and other information, please visit www.beyondsafetyexpo.com, or call 219-226-0300.

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Business Buzz

Northwest Lear Corporation Announces $7M Investment in Portage

Lear Corporation, a global supplier of automotive seating and electrical distribution systems, announced plans today to expand its operations in Portage, IN, creating up to 96 new jobs by 2019. The Southfield, Michiganbased company will invest $7.28 million to lease and equip a new 93,000 square-foot facility in Portage. The facility, which is expected to be fully operational by June 2015, will allow the company to increase storage space, optimize production requirements and meet increased industry demand for Ford Explorer seat systems.

Lear, which currently employs 1,200 full-time Indiana associates, plans to begin hiring production assemblers in April, aiming to have all 96 positions hired within the year. The Indiana Economic Development Corporation offered Lear Corporation up to $675,000 in conditional tax credits based on the company’s job creation plans. The city of Portage approved additional incentives at the request of the Portage Economic Development Corporation.

Solid Platforms, Inc Recognized for Safe Work Performance

The employees of Solid Platforms, Inc. have again been recognized for their safe work performance. This year, the company was proud to be honored by the National Maintenance Agreements Policy Committee (NMAPC) with the presentation of five ZERO Injury Safety Awards (ZISA®).

The following Zero Recordable Injury awards were presented to the management of Solid Platforms, Inc. • Bronze Star for 308,946 work hours without a recordable injury at ArcelorMittal, East Chicago Facility • Certificate of Merit for 110,649 work hours without a recordable injury at BP Products North America, Inc. 10

• Certificate of Merit for 101,024 work hours without a recordable injury at ArcelorMittal, East Chicago Facility • Certificate of Merit for 76,371 work hours without a recordable injury at United States Steel - Gary Works • Certificate of Merit for 60,587 work hours without a recordable injury at ArcelorMittal - Burns Harbor Facility

The Dock Wall Refacing Project involved the installation of 1,425 WF of king piles with sheet pile lagging panels and nearly 150 rock anchors.

The project also included the repair of a bulged wall failure, measuring 110 feet in length, and 11 feet out of original alignment at its widest point.

The ZISA Safety Award was the seventh that Thatcher Foundations has received in 2014 for its safety performance during 2013.

Burns Harbor RDC Receives 11 Responses to Lead Town Development

Technology Company Growing in South Bend

The Town of Burns Harbor Redevelopment Commission (RDC) received eleven submissions from firms interested in facilitating development of the town beginning next year. Specifically, the RDC seeks a master developer/revitalization advisor to work towards strengthening existing businesses, furthering community development to potentially expand local employment and improve quality of life for residents and visitors.

The project is one of the first of many RDC initiatives to establish a long-term plan and action items for a sustainable economic environment and town identity for Burns Harbor.

Previously, the RDC named four local staff members to assist during the interim process as well as formalized its mission this fall. In addition, adopted earlier last month, the RDC led a joint-effort to establish an innovative agreement between the Town of Burns Harbor and Duneland School Corporation to share a portion of annual TIF revenue to enhance economic prosperity of the community through quality educational opportunities.

Zero Injury Safety Award Presented to Thatcher Foundations

Thatcher Foundations Inc. was presented a Zero Injury Safety Award (ZISA) Certificate of Merit by the National Maintenance Agreements Policy Committee, Inc. (NMAPC) at its annual awards banquet. Thatcher was recognized with the Certificate of Merit for achieving in excess of 100,000 work hours without a recordable incident on the Dock Wall Refacing Project at BP North America’s refinery in Whiting, Indiana.

The Department of Community Investment held a groundbreaking ceremony for the expansion of F Cubed, LLC into one of two multi-tenant office buildings planned at Ignition Park. F Cubed has commercialized a rapid molecular diagnostic system, developed through technology licensed from the University of Notre Dame, for food safety, medical, and environmental applications.

F Cubed will occupy one of two buildings that Great Lakes Capital is constructing at Ignition Park, providing 86,000 square feet of space. One of the tenants will be the Notre Dame Turbomachinery Facility, a laboratory that will focus on research and testing related to turbine engines used by commercial and military aircrafts. The buildings are part of the second phase of the high-tech campus.

Indiana Dunes Shoreline Restoration Plan Approved Final approval has been given for Indiana Dunes National Lakeshore’s Shoreline Restoration and Management Plan.

A Record of Decision (ROD) for the plan and Environmental Impact Statement was signed by Acting Regional Director Patricia S. Trap. This allows the National Park Service, in partnership with the Army Corps of Engineers, to begin an annual schedule of beach nourishment to remedy erosion and damage to the dunes and beaches of Indiana Dunes National Lakeshore.

The effected beaches within the National Lakeshore extend from Trail Creek in Michigan City to U.S. Steel in Gary. As described in the final plan the shoreline in this area suffers from erosion that

www.buildingindiana.com | JANUARY/FEBRUARY 2015

threatens national park resources, recreation opportunities, homes, and businesses.

The final plan was prepared to provide scientifically-based alternatives for the restoration of natural sediment movement along the southern shore of Lake Michigan.

Beach nourishment is the placing of sand, or sand mixed with small natural stones, onto beaches to replace the sand that would normally occur through natural processes. In places along the shoreline, harbor structures interfere with the natural movement of sand in Lake Michigan.

Purdue and GE Announce Advanced Manufacturing Partnership

Purdue University announced that GE Global Research will invest up to $10 million in a five-year partnership focused on research and development in advanced manufacturing.

The GE/Purdue Partnership in Research and Innovation in Advanced Manufacturing (GE/Purdue PRIAM) will push a new era in

manufacturing, promoting technologies that enable the digitization, decentralization and democratization of manufacturing to lower cost, improve speed and drive innovation. All three trends are being driven by the increasing convergence of software and hardware that is turning today’s factories into brilliant factories that are more capable, connected and productive than ever.

Along with new technology development, GE/Purdue PRIAM will provide educational and engagement opportunities for Purdue students and GE employees to help ensure future manufacturing workforce needs are addressed.

Northwest Indiana Business Roundtable Elects New Executive Board

The Northwest Indiana Business Roundtable (NWIBRT) recently announced the election of new officers to its Executive Committee. Don Bull, of Nipsco, was elected Chairman, while Kevin Baldwin of ArcelorMittal, was nominated Vice Chairman.

Dewey Pearman, of the Construction Advancement Foundation, was chosen as Secretary. Tim Ross, of Franciscan Alliance, was designated Treasurer and William Satterlee III, of Hoeppner, Wagener & Evans, LLP has been named as Legal Counsel. Andrea Pearman, was named Executive Director.

NWIBRT, in partnership with the American Society of Safety Engineers, will be presenting the Fifth Annual Beyond Safety Reliability Conference and Expo, which will take place March 24th and 25th at the Radisson Star Plaza in Merrillville. This event brings over 600 safety professionals together to experience the latest in safety education and technology, this is the largest event of its kind in Northwest Indiana. Please visit BeyondSafetyExpo.com for more information.

Valparaiso Family YMCA receives SPLASH Grant

Drowning is the 2nd leading cause of childhood unintentional injury-related death for

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Business Buzz

children ages 1 to 14. More than one in five fatal drowning victims are children younger than 14. The “Splash!” Program is one that has been instituted at other Y’s across the nation. At the Valparaiso Family YMCA, the Aquatics department implemented its own “Splash!” This program was very successful in 2014 and the YMCA was awarded $1,950 by the Valparaiso Rotary to provide up to 100 children swim lessons with “Splash” again this year. The buildings are part of the second phase of the high-tech campus.

IU South Bend Receives Record Setting Donation

Indiana University South Bend has received the largest single philanthropic donation in its history. A $5.85 million gift from the Vera Z. Dwyer Charitable Trust has been given in support of the College of Health Sciences at IU South Bend. In recognition of the gift, the College of Health Sciences at IU South Bend has been named the Vera Z. Dwyer College of Health Sciences. The purpose of this philanthropic

investment in IU South Bend by the Dwyer Trust is to permanently strengthen the quality of healthcare education in the region and help fill the demand for more qualified healthcare professionals at area hospitals and medical facilities.

The gift includes $2.5 million to be used to increase the endowment of the Vera Z. Dwyer Scholarship in Healthcare; $1.5 million to create and endow the Dwyer Distinguished Chair in Advanced Nursing Practice; $1 million in a guaranteed matching pledge for the Health and Wellness Center at IU South Bend to expand low-cost healthcare services to the community; and $850,000 to be used to begin implementation of these initiatives.

When combined with the earlier gift of $1 million that established the Dwyer Scholarship in Healthcare, the combined gift reaches a total of $6.85 million. If the matching pledge is realized, the total results of the gift would be $7.85 million.

American Savings, FSB Has Become American Community Bank

American Savings, FSB officially became American Community Bank of Indiana. American Community Bank wants to make it clear that this is NOT a merger, acquisition, or sale of any kind. This name change is an expression of the bank’s shift to a full-service community bank. The bank today has converted to a state chartered bank, becoming American Community Bank.

The bank is changing its name as a reflection of its changing identity – as not just a community bank, but as a full-service community bank that offers all of the products and services our community needs. American Community Bank offers a complete suite of modern banking resources that extends far beyond the limits of the savings and loan accounts that many still associate with the bank’s history. American Community Bank operates four full-service offices in Munster, Hammond, Dyer, and Schererville, Indiana.

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www.buildingindiana.com | JANUARY/FEBRUARY 2015

New Publication Serves as Northwest Indiana’s Event Planning Resource Guide

The launch of the newly published Meetings & Events has sparked some talk amongst the event planning professionals in Northwest Indiana. Meetings & Events is an annual publication brought to you from Building Indiana Magazine, and is the first publication in the region designed to inform professional audiences, in-depth on concepts and useful advice on special events. This publication serves to meet the demand of a much needed resource guide for business events.

Meetings & Events hosts a directory, which serves as a resource guide, listing all of the companies throughout Northwest Indiana that can assist with any business event planning need. Issues feature a wide array of event planning topics, guidelines, and ideas from expert event specialists. Businesses that have something to do with business events, in any aspect, such as event venues, caterers, and rentals, can enter its business into the online directory found at BuildingIndiana.com.

Prior to the launch of Meetings & Events, there was no other publication in NWI that presents expert advice and outstanding ideas on how to make your next business event a hit with your audience. In a time where the launch of a new publication is rarely heard of, it is great to hear of a firm churning out a magazine that will make a positive impact in the local business community.

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Secretary: Bob Schaefer, Long Beach Town Council Executive Board (Lake County): Mayor Anthony Copeland, East Chicago Executive Board (Lake County): Michael Griffin, Highland Clerk-Treasurer Executive Board (LaPorte County): Richard Murphy, Michigan City City Council Executive Board (LaPorte County): Dave Decker, LaPorte County Commission Executive Board (Porter County): Don Ensign, Hebron Town Council Executive Board (Porter County): Greg Stinson, Porter Town Council

NIRPC Announces Executive Board

The Northwestern Indiana Regional Planning Commission (NIRPC) Full Commission announced its elected 2015 Executive Board. 2014 Chair Brian Snedecor, Mayor of Hobart, passed the gavel to Mayor Blair Milo of LaPorte, Chair for 2015.

The other officers for 2015 are: • Vice-Chair: Jim Ton, Chesterton Town Council • Treasurer: Roosevelt Allen, Jr., Lake County Commission JANUARY/FEBRUARY 2015 | www.buildingindiana.com

• Executive Board: Representative Ed Soliday, Governor’s Appointee NIRPC is the Metropolitan Planning Organization and regional council of local governments for the three counties of Northwest Indiana.

NIRPC provides the forum for local elected officials, regional, leadership, and citizens to address regional issues relating to transportation, the environment and community and economic development.

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beyondsafetyexpo.com Over 50 Exhibitors More than 20 Educational Sessions C.E.U.’s Awarded by the ASSE

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Business Buzz

KTR Corporation Expanding North American Headquarters

KTR Corporation is adding two new production lines in its Michigan City facility, increasing domestic content value, while retaining and creating new jobs in Michigan City. This project will provide additional capacity to manufacture large shaft-to-shaft couplings required to support continual North American pump industry growth. Furthermore the investment will allow greater flexibility to the manufactured product in Michigan City as opposed to reliance on other KTR manufacturing locations.

KTR Corporation will be investing over $500,000 in addition to 5 new jobs to its current workforce of 60 at its location on 122 Anchor Rd., Michigan City, Indiana. The tax abatement was approved unanimously by the Michigan City Council at a meeting Tuesday night and will save the company about $40,000.

Custom Molding Company Investing in South Bend

South Bend Modern Molding, a manufacturer of custom molded rubber products founded in 1942, plans to make significant investments to expand production capacity and add new product lines at the company’s 100,000 square-foot facility in Mishawaka, nearly doubling employment by creating up to 80 new jobs by 2023. The company, which was named a 2014 Indiana Company to Watch, is currently experiencing exponential growth from its new products using recycled rubber materials, with up to 50 percent of its sales coming from these product lines.

square-foot facility in Plymouth, creating up to 250 new jobs by 2015. The company also plans to invest $4.35 million to equip and renovate its automotive manufacturing lines, creating up to 225 additional new jobs by 2017. Currently operating out of its main facility and satellite sites, the expansion will allow AMI Industries to bring satellite operations in house, providing the opportunity to expand into new customer markets.

Northeast $20M Investments Supported 300 Fort Wayne Jobs

Fort Wayne Mayor Tom Henry

today announced that the 2014 construction season is wrapping up with unprecedented investments made in neighborhoods throughout the City of Fort Wayne.

More than $20 million was invested in neighborhood infrastructure projects.

Highlights included 50 miles of paving, 10 miles of concrete reconstruction, brick street work, 12 miles of chip and seal repairs, sidewalk improvements, and curb and ramp repairs. More than 300 construction jobs were created as a result of this year’s enhancements to the City’s infrastructure system community;

Northeast Indiana Works, formerly Work One, and are expecting to partner with this agency in a series of job fairs in the Wells County area.

Dirig Sheet Metal Investing $1.4M in Fort Wayne

Dirig Sheet Metal will be moving into the former Olde York Potato Chips Factory, located off of Cook Road, in Fort Wayne. The company will be investing $1,435,000 in the new facility, including upgrades to the new location, and machining/equipment. The improvements to the new facility will allow the company to expand operations which have been increasing over the years. Dirig is being offered a 7 year tax phase-in, valued at $142,434 from the City of Fort Wayne.

$1.5M Donation to Expand Trine University’s Best Hall of Science

A New York doctor has given Trine University $1.5 million to construct a wing on Best Hall of Science. The gift from alumnus Dr. James R. Rinker, of Binghamton, N.Y., supports health sciences programs at Trine.

Dr. Rinker, a 1958 business administration graduate of Tri-State College, now Trine, has fond memories of working his way through college and becoming active in the Angola community, he said.

TI Automotive Investing $10M in Ossian

TI Automotive in Ossian, Ind.

Elkhart County EDC Reports Investment Increase

announced they will invest $10 million

AMI Industries Bringing 225 Jobs to Plymouth

into their Wells County manufacturing

from existing and prospective companies has

facility in the form of new process

been announced in 2014 for Elkhart county,

equipment. This expansion, in response

officials stated. More importantly, the new

to additional customer requests, is

focus in raising the standard of living and

Heavy-equipment parts manufacturer AMI Industries, Inc. will invest $4.2 million to equip and expand its agricultural component production at a 100,000

expected to be completed in 2015 and

overall quality of life is being addressed by

will add at least 70 new jobs. The facility

the not-for-profit corporation in realigning

currently employs 150. TI Automotive

its talent and financial resources. In 2013, the

will be accepting applications through

EDC secured $72 million with a weighted

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Over $108 million in new investment

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Same mild-mannered local bank, with a fresh, bold, new identity.

American Savings, FSB has become American Community Bank!

There’s been so sale, or merger. No change of ownership.

We’re still the same neighborhood bank that’s been serving the Region since 1910.

We’ve changed our name to reflect the way we do business. We’ve broadened our capabilities to build complete banking solutions for both businesses and consumers, alike. American Community Bank offers a full suite of modern resources, including some of the most advanced technologies:

➤ feature-rich online banking ➤ online loan application ➤ remote check deposit ➤ mobile banking app ➤ investment solutions ➤ local decision-making ➤ payroll processing solutions ➤ complete commercial banking and lending

www.acbanker.com 219.836.5870 MUNSTER | HAMMOND | DYER | SCHERERVILLE ©2014 MIDS acb50102

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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average salary of $15.47 an hour. However,

Business Buzz

in 2014, the EDC is announcing over $108 million with a weighted average salary of $23.70 an hour.

Recently Founded Company Already Expanding in Fort Wayne

Recently founded Mosaic Building Solutions, a design, manage, build construction company based in Fort Wayne, IN, will oversee a 5,000-square-foot expansion of the Berger Automotive Diebold Road location. The project, at a cost of roughly $423,000, will expand the location’s service department and provide the facility with the capacity to service recreation vehicles.

Construction has already mobilized as of October 20, and is scheduled for a completion date of February 2015.

NCC Expanding in Mentone

North Central Cooperative, Inc. (NCC) announced plans to expand its operations in Mentone, IN, creating up to 15 new jobs by 2016. The homegrown-Hoosier company, which is based in Wabash, Indiana, will invest $8.27 million to renovate and equip two buildings at its approximately 80-acre crop service center in Mentone. Adding more than 18,000 square feet of production and office space, NCC’s growth will enable it to centralize and expand its services, providing better efficiencies for its customers.

Orthopedics Manufacturer Growing in Warsaw

Alpha Manufacturing & Design, LLC, a precision contract manufacturer for the orthopedics industry, announced plans to expand its operations in Warsaw, IN, creating up to 32 new jobs by 2018. The homegrownHoosier company will invest $5.62 million to construct and equip a new 12,000 squarefoot addition to its current 5,000 square-foot 16

facility in Warsaw. The facility, which will be fully operational by April, will allow the company to increase production capacity for its current orthopedic models and enhance the development of nextgeneration prototypes.

Mining Manufacturer Upgrading Fort Wayne Facility

Deister Machine Company, which specializes in the manufacture of vibrating equipment for the mining, quarrying and aggregate industries, plans to invest $2.8 million to equip its 250,000 square-foot facility in Fort Wayne, purchasing two CNC lathes and a 750 ton press brake, which will be largest in the area. With the new equipment expected to be installed by March 2015, the 102-year-old, family-owned company has already begun hiring for machining and fabricating positions, creating up to 110 new jobs by 2018 to grow the company’s workforce beyond its current team of 198 Hoosiers.

Pool Motor Manufacturer Expands Production

With more than 100 years’ experience as a manufacturer of custom-designed AC and DC fractional horsepower motors, this year Bluffton Motor Works is launching more than 30 new motor ratings for the pool and spa industry. This growth is projected to generate an increase of nearly 100,000 additional motors manufactured at the company’s headquarters in Bluffton, creating up to 70 new jobs by 2017. Investing $3.6 million into its 400,000 square-foot Bluffton operations, the company currently employs more than 400 full-time associates, including 325 Hoosiers.

Trailer Manufacturer Increases Output

Founded in 2012, Middlebury-based Grand Design RV is a manufacturer of fifth

wheel trailers and travel trailers, recognized as the fourth largest manufacturer of towable recreational vehicles in the industry with 2014 sales of more than $200 million. To meet the need for more manufacturing capacity, the company will invest $6.9 million to add 48 acres and infrastructure improvements to its current 67-acre campus, creating up to 330 new jobs over the next few years. Grand Design currently employs 548 full-time associates at its Elkhart County campus.

Midwest Automotive Designs Adding 80 Jobs

Named earlier this year one of the 5,000 fastest growing private companies in the United States by Inc. Magazine, Midwest Automotive Designs converts vans and trucks into luxury vehicles, specializing in the Mercedes-Benz Sprinter platform. With plans to create up to 80 new jobs by 2017, the company operates in a 65,000 squarefoot facility in Elkhart and will expand by more than 25,000 square feet within the next 36 months. Midwest Automotive Designs currently employs approximately 100 full-time associates.

NE Indiana Companies Investing Millions

Columbia City-based Ag Plus LP and ChromaSource, Inc. announced plans to expand their respective local operations, which will involve the companies investing a combined $3.327 million and creation of up to 23 new jobs in 2015.

Ag Plus, a farmer-owned cooperative based in South Whitley, is establishing a joint venture with St. Paul, MN based CHS (NASDAQ: CHSCP, CHSCO, SHSCN) to build and operate a liquid fertilizer facility near Columbia City.

Based near Columbia City, ChromaSource is a nationally recognized manufacturer of color systems and color cards. The company is adding nearly $1 million in equipment to expand its production capacity.

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Central Hoosier Heartland Industrial Park Gets First Tennant

The Carroll County Economic Development Corporation announces that it has sold its first lot in the Hoosier Heartland Industrial Park to Carroll White REMC. The Hoosier Heartland Industrial Park is 60 acres of shovel ready ground just south of Delphi, near Indiana Packers Corp. Carroll White REMC plans to build a new operations center in the park that will house 18 employees. The facility is expected to be completed by the fourth quarter of 2015. The sale of lot four to the Carroll White REMC is a giant first step for the EDC.

Carrera Manufacturing Adding 102 Jobs in Portland

Carrera Manufacturing, Inc., a custom injection molding and finishing company, announced plans to expand its operations in Portland, IN, creating up to 102 new jobs by 2018. The homegrown-Hoosier company will invest $1.27 million to construct and equip a Class 100 cleanroom within its current 80,000 square-foot manufacturing facility in Portland.

The cleanroom, which is expected to be fully operational next spring, will enable the company to broaden its current finishing and coating capabilities and answer strong customer demand for anti-fog, anti-glare, thermal and UV-cured coatings processed within a cleanroom environment.

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Primex Plastics Investing $4.7M in Richmond

Primex Plastics Corporation, a subsidiary of ICC Industries, located at 1235 North F Street in Richmond will receive $70,000 in an Economic Development Income Tax (EDIT) Grant from the Economic Development Corporation (EDC) of Wayne County. The funds will be used to assist the company with a three-phase expansion project involving new equipment, a new enterprise resource planning (ERP) software system and the newly developed Human Capital Initiative, a company-wide training program. As a result of the project, Primex Plastics will create 19 new full-time jobs and invest $4.7 million.

Indiana Tech Company Enters Health Market

Tech Electronics of Indiana’s expansion into the healthcare market puts them on track to close out the year at $3.4 million.

The company’s success and entrance into the healthcare market will lead to new hires in the New Year. Tech Electronics of Indiana exceeded its revenue goal in 2013 by half a million, closing out the year at $2.4 million with anticipation of a strong 2014. With its continued success in current markets served and new endeavors in healthcare the office is on track to record it highest earnings to date.

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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Business Buzz

Roto Rooter Investing $6M in Fishers

Roto Rooter, North America’s leading provider of plumbing and drain-cleaning services, intends to build a new facility in Fort Wayne to accommodate its expanding central-Indiana services. The investment includes the purchase of the land and a capital investment of more than $5.9 million.

Roto Rooter will relocate 50 full-time jobs by 2016 and create an additional ten full-time jobs by 2019 with a total projected yearly payroll of more than $2.7 million.

Major Automotive Investment Comes to Kokomo

Christmas came early to Kokomo, as the Chrysler Group LLC announced plans to invest $266 million in new manufacturing equipment in Kokomo. The investment will enable the company to expand production of its 8-speed transmissions at two of its four Kokomo plants.

Consumer demand for Chrysler’s fuel-efficient vehicles with the 8-speed transmission led to the need to increase manufacturing capacity. More than one million Chrysler vehicles equipped with the Kokomo-built, 8-speed automatic transmission have been sold. Since 2009, Chrysler has invested more than $1.5 billion at its Kokomo transmission plants. Kokomo is now the world’s largest producer of transmissions. The company employs 7,600 at its manufacturing facilities in Kokomo.

Eskenazi Mental Health Doubling Center

A grant from the Center for Mental Health Services, Substance Abuse and Mental Health Services Administration (SAMHSA) will allow Eskenazi Health Midtown Community Mental Health to double the size of its

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groundbreaking early psychosis center.

The Eskenazi Health Midtown Prevention and Recovery Center for Early Psychosis (PARC), which serves as Indiana’s first center for clinical, research and educational advancement in the treatment of individuals in the early stages of schizophrenia and other psychotic illnesses, received a $427,000 grant as part of the Block Grant for Community Mental Health Services from SAMHSA that was awarded to the Indiana Family and Social Services Administration (FSSA). The center opened in 2009 and is located at the Sidney & Lois Eskenazi Hospital.

• Support the development and funding of the state’s new K-12 academic standards, while using existing consortia tests with Indiana modifications; no Indiana-specific test is necessary • Support making the superintendent of public instruction an appointed position beginning in 2016 • Support a greater portion of state sales tax be committed to Indiana road upkeep • Support a work sharing program that will allow employers to maintain a skilled stable workforce during temporary downturns • Support a prudent state budget that balances and properly prioritizes the state’s needs

IU East Breaks Ground on Student Center

JDRF Indiana Announces New Board Members

Indiana University and Indiana University East today broke ground on the campus’ fifth building, a Student Activities and Events Center that is expected for completion in 2016. The facility will promote student success through a comprehensive offering of programming in health and wellness, physical education, athletics, student activities and special events. Since 2007, student enrollment at IU East has over doubled to 4,573 in 2014.

In October 2012, IU East began raising funds for the project through its public campaign, “Bold Aspirations: The Campaign for the Student Events Center.” Through community and campus support, the campaign raised the remaining $1.7 million for the project. The university had already reserved $3 million for the project from savings and efficiencies.

JDRF Indiana State Chapter announces new board members for 2014-2015: Emily Boits, Eli Lilly and Company; Derek Dunigan, Holiday Healthcare Corporation; Andy Fagg, Sunking; Stevan Mizimakoski, Walgreens; and Scott Nahmias, Office 360.

Indiana Chamber Describes 2015 Priorities

The Indiana Chamber of Commerce announced its Top 7 priorities for the 2015 session. They are as follows: • Support legislation to eliminate small businesses filing personal property tax returns (aka the “de minimis” exemption) • Support the development of publiclyfunded preschool initiatives statewide

CTL Engineering Adding 23 New Jobs

CTL Engineering of Indiana, Inc., an engineering consulting and laboratory analytics firm, announced plans to expand its operations in Indianapolis, creating up to 23 new jobs by 2020. The Columbus, Ohio-based company will invest $799,000 to purchase and equip a new 15,000 squarefoot facility in Indianapolis. The facility, which will be fully operational by April, will allow the company to increase productivity, capacity and efficiency for its geotechnical engineering, construction observation and testing, soils laboratory, marketing, business development and environmental operations.

The Indiana Economic Development Corporation offered CTL Engineering of Indiana, Inc. up to $185,000 in conditional tax credits and up to $24,000 in training grants based on the company’s job creation plans.

www.buildingindiana.com | JANUARY/FEBRUARY 2015

IU Receives $6.6M Grant

Thousands of U.S. researchers will have easy access to advanced computing tools in a new cloud environment funded by a $6.6 million National Science Foundation grant to Indiana University.

The Pervasive Technology Institute at Indiana University has received this grant to create NSF’s first science and engineering research cloud, Jetstream. IU is expected to receive a total of about $11 million from NSF over the next five years to create, implement and operate Jetstream, making it the largest grant IU has ever received to deliver computational and data storage services to the national research community. Jetstream will be a user-friendly cloud environment designed to give researchers and students access to computing and data analysis resources on demand — from their tablets, laptops or desktop computers.

initiative and $100 million in FY 2016 and $200 million in FY 2017 for the Major Moves 2020 fund.

IEDC Names 2014 a Record-Breaking Year The Indiana Economic Development Corporation (IEDC) is calling 2014 a “recordbreaking year” for economic development in the state of Indiana, and is starting off 2015 right with some major announcements.

According to the IEDC, 2014 saw: • 285 companies expanding or locating in

Indiana • $4.38 billion in investments from those companies • More than 25,000 new jobs created by those companies In 2013 the number of companies expanding or locating was 261, itself a new record at the time. Each year, more and more companies make Indiana the home of their new investments and operations.

But the state isn’t resting on its laurels in the new year by any measure; at the end of 2014,Governor Pence and executives from 16 companies announced new investments

Pence Presents FY 2016-17 Budget

Governor Pence’s recommended budget for Fiscal Years (FY) 2016 and 2017 was recently presented before the State Budget Committee. The Governor’s budget incurs no new debt. It’s two-year average increase in spending, 1.34 percent, is well below inflation, which is 2.06 percent over a ten-year average.

The Governor’s budget increases K-12 funding by 2.0 percent, or $134 million, in FY 2016 and 1.0 percent, or $67 million, in FY 2017. In addition, the budget helps to serve those in need across the state, including $11 million per year to fund the State Adoption Subsidy program at the Department of Child Services, full funding for the Medicaid forecast, and a total of $8 million to enhance awareness and provide critical prenatal care services to at-risk mothers as part of the State’s effort to reduce the infant mortality rate.

The budget also builds on the administration’s focus on jobs and economic development through $84 million over the biennium to support the Regional Cities

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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Business Buzz

coming in 2015. The new announcements are expected to create 2,153 new jobs over the next few years.

Some of the companies announcing their moves and/or expansions are: • AMI Industries Inc., a heavy-equipment manufacturer • Cardinal Health, a healthcare services company • Diester Machine Company, a mining equipment manufacturer • iSALUS, a healthcare software company • Memory Ventures, a portfolio of direct-toconsumer e-commerce brands • Ryno Strategic Solutions, a full-service nationwide internet marketing company

New Hampshire Company Starting Operations in Indy

AeroRepair Corp., an aircraft maintenance service provider, announced plans to locate a satellite facility in Indianapolis, creating up to 27 new jobs by 2018. The Londonderry, New Hampshirebased company, in partnership with its sister company Hemico, Inc., will invest $670,085 to lease, renovate and equip a more than 11,000 square-foot facility at 1810 S. Lynhurst Drive in Indianapolis, within three miles of Indianapolis International Airport.

The facility, which opened in November, will allow the company to begin offering fullservice aircraft brake, wheel and landing gear repairs and overhauls for regional, general and corporate aircraft throughout the Midwest.

The Indiana Economic Development Corporation offered AeroRepair Corp. up to $190,000 in conditional tax credits and up to $50,000 in training grants based on the company’s job creation plans.

WP Glimcher Formed After $4.3B Merger

Washington Prime Group Inc. (“Washington Prime”) (NYSE:WPG) announced it has completed the previously announced acquisition of Glimcher Realty Trust (“Glimcher”). The company will be known as WP GLIMCHER, and continue to trade on the New York Stock Exchange under 20

the ticker WPG.

Mark Ordan, CEO of Washington Prime, will serve as Executive Chairman of the combined company’s Board of Directors and Michael Glimcher, CEO of Glimcher, will serve as the combined company’s CEO and Vice Chairman, reporting to Mr. Ordan.

Michael Glimcher and Niles Overly have also been appointed to the WP GLIMCHER Board of Directors and will join Washington Prime’s highly qualified group of existing directors, all of whom will continue as directors of WP GLIMCHER.

Chase Provides Grant to Conexus for Student Program

Chase has awarded Conexus Indiana a $250,000 grant to support and grow Hire Technology, Conexus Indiana’s centerpiece high school curriculum that prepares students for careers in advanced manufacturing and logistics (AML). Now in its third year, the program is offered to nearly 2,000 students at more than 135 high schools throughout Indiana.

Hire Technology, launched in coordination with the Indiana Department of Education and Ivy Tech Community College, is a first-of-its kind statewide program that enables students to complete industryrecognized certificates and dual credits through Ivy Tech Community College. The certificates and dual credits are necessary for students who want to succeed in AML careers, as these jobs demand increasingly advanced technical skills and generally require a college degree or industry credential.

The 2-year Hire Technology curriculum was created in partnership with industry in response to the growing demand for skilled workers in advanced manufacturing and logistics.

CloudBlue Investing $3.74M in Indy

Chase has awarded Conexus Indiana a $250,000 grant to support and grow Hire Technology, Conexus Indiana’s centerpiece high school curriculum that

prepares students for careers in advanced manufacturing and logistics (AML). Now in its third year, the program is offered to nearly 2,000 students at more than 135 high schools throughout Indiana.

Hire Technology, launched in coordination with the Indiana Department of Education and Ivy Tech Community College, is a first-of-its kind statewide program that enables students to complete industryrecognized certificates and dual credits through Ivy Tech Community College. The certificates and dual credits are necessary for students who want to succeed in AML careers, as these jobs demand increasingly advanced technical skills and generally require a college degree or industry credential.

The 2-year Hire Technology curriculum was created in partnership with industry in response to the growing demand for skilled workers in advanced manufacturing and logistics.

California Company Moves HQ to Indiana

Memory Ventures, a portfolio of directto-consumer e-commerce brands, plans to relocate its headquarters from Los Angeles, California to Fishers, creating up to 134 new jobs by 2018. Memory Ventures will launch Indiana operations next year in a 2,500 square-foot temporary office, with plans to be fully operational by 2016 in a 10,000 squarefoot office for Memory Ventures’ portfolio brands. The company’s new headquarters in Indiana will allow it to increase its service capacity, decrease shipping costs and expand its customer base across the country, which currently includes more than 50,000 consumers a year as well as large clients such as Rubicon Project and Google.

Cardinal Health Announces New Indy Facility

Headquartered in Dublin, Ohio, health care services company Cardinal Health (NYSE: CAH) will construct and equip a 64,000 square-foot facility in Indianapolis, creating up to 85 new jobs by 2017. Dedicated exclusively

www.buildingindiana.com | JANUARY/FEBRUARY 2015

The Porter Regional Hospital Health At Work program provides a full suite of job-related medical services, including access to Service Coordinators 24/7. Our goals are to help prevent and reduce workplace illnesses and injuries, to avoid lost-time accidents, and lower your healthcare-related expenditures. At Porter Regional Hospital, we know a healthy workforce contributes to a healthy bottom line. To learn why more employers are choosing Porter Regional Hospital’s Health At Work program, or to schedule a consult, call 219-263-7200.

• Workers’ injury treatment and management • Pre-employment screenings • DOT exams • Drug and breath alcohol testing • Respiratory clearance exams

• Audiometric and vision testing • On-site screenings • 24/7 access to injury treatment • Preventive health and wellness services

HEALTHIER EMPLOYEES CAN MEAN A HEALTHIER BOTTOM LINE.

Portage Clinic Now Open Portage Hospital 3630 Willowcreek Road, Portage

Valparaiso Clinic

809 LaPorte Avenue, Valparaiso

Occupational Health and Corporate Wellness

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

Porter Regional Hospital is directly or indirectly owned by a partnership that proudly includes physician owners, including certain members of the hospital’s medical staff.

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Business Buzz

to manufacturing Bayer Healthcare’s Xofigo, the new facility is expected to be complete in 2017. The $91-billion health care services company operates two medical products distribution centers and several radiopharmacies in Indiana, which employ more than 240 Hoosiers. Cardinal Health will begin hiring specialized manufacturing roles, chemists, engineers and other professional positions when construction on the facility is complete.

Sewage-to-Diesel Fuel Facility Coming to Terre Haute

Powerdyne Renewable Fuels, a frontrunner in the national renewable fuel industry, announces it will be investing hundreds of millions of dollars to construct a Sewage-to-Diesel Fuel Facility in Terre Haute, IN which will create hundreds of new temporary and permanent jobs. Engineering and design of the fuel plant is under way at a cost to date in excess of $5 million. The facility is expected to be completed and operational in approximately 24 months.

Powerdyne has been engaged by the City to take the residual of the treated material known as dewatered sewage sludge, a semi-solid material that is produced as a by-product during treatment of wastewater, and convert it to diesel fuel. The City will then buy diesel fuel from Powerdyne over a 20 year period, which fuel has already been pre-sold to a large regional trucking firm at a premium. The pre-selling of fuel will yield the City an additional $480,000 per year without any market risk.

IT Firm Investing $4.5M in Zionsville

SmartIT, an information technology firm delivering staffing and technology solutions for some of the largest companies in the country, plans to invest $4.5 million to expand into a new 40,000 square-foot headquarters facility in Zionsville, creating up to 85 new jobs by 2018. Plans call for the company to be in the new offices by its 10th anniversary in June.

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South Strategic Plan Focuses on Southwest Region

After more than a year of research, planning and community engagement, stakeholders in southwest central Indiana announced the completion of a regional economic development strategy aimed at fostering new growth and capitalizing on existing assets in the region, including but not limited to, Indiana University and Naval Support Activity (NSA) Crane.

Since the $650,000 grant was awarded in July 2013, hundreds of meetings, interviews and focus groups have taken place at the direction of the planning initiative’s steering committee, consisting of eight invested stakeholders and leaders from the region.

The committee focused on an 11-county area, which includes Brown, Crawford, Daviess, Dubois, Greene, Lawrence, Martin, Monroe, Orange, Owen and Washington counties.

The plan consists of six interconnected strategies focused on regionalism, workforce development and education, economic development, infrastructure, entrepreneurship, and R&D technology transfer. The assessment of current and emerging sectors within the region helped identify those areas in which high growth could be achieved.

Grain Processing Corporation Expanding in Southern Indiana

Grain Processing Corporation (GPC), a subsidiary of Kent Corporation, announced plans to invest $70 million to expand its operations in Washington, IN, creating up to 16 new jobs by 2019. The Muscatine, Iowabased company, which manufactures and markets corn-based products, will grow its MALTRIN maltodextrins capacity over the

next few years at its 600-acre Washington, Indiana complex, accounting for the largest expansion at the Washington plant since it started operations. GPC is in the process of finalizing the engineering design and requesting the necessary permits to begin the construction phase of the additional finishing capacity.

GPC, which currently has 150 employees in Daviess County and more than 1,500 Kent Corporation employees globally, plans to add new production associates in Washington when the project is operational in the next few years. The Indiana Economic Development Corporation offered Grain Processing Corporation up to $250,000 in conditional tax credits based on the company’s investment plans.

Vincennes Reports Record Enrollment

Vincennes University’s system-wide headcount enrollment totaled 19,203 students this year, an all-time record, according to Kristi Deetz, senior director of External Relations. That compares to 18,383 students enrolled last year on Oct. 15, the official enrollment date.

Cummins Completes New Logistics Center

Cummins Inc. (NYSE:CMI) celebrated the completion of its new Southern Indiana Logistics Center (SILC), a state of the art, regional facility that measures a quarter mile from the front entrance to the back corner of the building.

The 428,000 square foot facility is located next to the Columbus MidRange Engine Plant in Walesboro, Indiana. It will store material for all Cummins Southern Indiana manufacturing facilities and the Cummins Technical Center. The new warehouse eliminates the need to use several Indiana warehouses by consolidating material under one roof, making it easier to manage and track inventory in real time.

The warehouse is fully operational, and will be staffed by employees of the Indianapolisbased Celadon Group, one of Cummins’ logistics partners

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Sigma Packaging Expanding in Evansville

Sigma Packaging, LLC, a dealer of pre-owned packaging and processing machinery, announced plans to expand its operations in Evansville, creating up to 43 new jobs by 2018. The homegrown Hoosier-company will invest $5.51 million to purchase and equip a new 231,000 square-foot facility in Evansville. The facility, which will be fully operational by January, will enable the company to expand its office space and storage facilities, increase inventory and grow its online sales division. The Indiana Economic Development Corporation offered Sigma Packaging, LLC, up to $350,000 in conditional tax credits based on the company’s investment and job creation plans.

Indiana Limestone Investing Over $9M

Indiana Limestone Company, the largest Indiana Limestone quarrier in North America, plans to invest $9.37 million to equip its combined 4,500-acre quarries in Oolitic and Bloomington, creating up to 75 new jobs by 2017. Indiana Limestone Company anticipates expanding its quarry capabilities by more than 40 percent in 2015, allowing it to supply builders with a limestone mix to support growth of Indiana Limestone as a key building material, which today can be seen on structures including the Empire State Building, the Pentagon and more than one third of the U.S. state capital buildings. Indiana Limestone Company, which currently employs more than 130 associates.

EPA Grant to Support IU Airborne Toxicity Study

The U.S. Environmental Protection Agency has awarded Indiana University a $6 million grant to continue a project that measures levels of airborne toxic chemicals being deposited to the Great Lakes.

The Integrated Atmospheric Deposition Network project is collecting air samples at urban stations in Chicago and Cleveland, as well as at regular intervals at master stations on each of the five Great Lakes. The team has discovered that concentrations are dramatically higher in cities, not only for industrial chemicals such as PCBs but also for some pesticides. While DDT was widely used in agriculture before being banned from most uses in the U.S. in the 1970s, it was also sprayed to control mosquitoes in cities. Another pesticide, chlordane, was used to treat homes for termites. Apparently, these chemicals stay in the urban environment for decades, before getting into the air and being transported to the lakes.

The Great Lakes are the largest surface freshwater system on the Earth, containing about 84 percent of North America’s surface fresh water and about 21 percent of the world’s supply. Roughly 10 percent of the U.S. population and more than 30 percent of Canada’s population live in the Great Lakes basin

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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People News Paul Stracci Joins Forces with Johnson Ivancevich, LLP Paul Stracci, NWI criminal trial attorney, has joined forces with attorneys Steven A. Johnson and George S. Ivancevich, who are civil trial attorneys. The law office located at 250 East 90th Drive in Merrillville, Indiana is now known as Johnson, Stracci & Ivancevich LLP. Together, with their combined experience, the new partnership will better serve the community as a law office providing services for civil litigation and criminal defense.

Lisa M. Daugherty named new President & CEO of Lake Area United Way The Board of Directors of Lake Area United Way announced the appointment of Lisa M. Daugherty as its new President & CEO. Daugherty has most recently served as Director of Marketing & Development for TradeWinds Services, Inc. in Merrillville. She also held positions within The Times Media Company focusing in Sales, Human Resources, Marketing and Advertising.

Fifth Third Names New Marketing President Fifth Third Bank Greater Indiana announced the promotion of Kevin Hipskind as Market President for Central and Northeast Indiana. Hipskind joined Fifth Third Bank 12 years ago as a Relationship Manager

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in the Commercial Banking division for Indiana. Hipskind will lead operations in Central Indiana as well the Fort Wayne, Ind., area while continuing to serve as leader of the Commercial Banking division.

IMA Selects Berger to Lead Governmental Affairs The Indiana Manufacturers Association (IMA) announced that Andrew Berger has been selected to lead the association’s governmental affairs and tax policy advocacy.

Berger comes to the IMA after serving, since 2007, as the Director of Governmental Affairs and General Counsel for the Association of Indiana Counties. In addition, he has experience working with the Indiana Senate, Lt. Governor’s office, and the Indiana State Budget Agency.

Purdue Selects Pittman to Lead Tech Transfer Office Chad Pittman, an Indiana economic development leader, will be the Vice President of the Purdue Office of Technology Commercialization. Pittman, who recently served as the executive vice president and chief of staff of the Indiana Economic Development Corporation, was instrumental in bringing hundreds of companies to Indiana in the past five years.

IUN Appoints Montevirgen as Vice Chancellor for Student Affairs Indiana University Northwest announced the appointment of Alexis Montevirgen as Vice Chancellor for Student Affairs and Enrollment Management.

Montevirgen comes from the College of Alameda in Alameda, Calif., where he was Vice President of Student Services. Montevirgen brings with him nearly 15 years of higher education experience in student services and enrollment management.

Krieg DeVault Elects New Managing Partner Long-time Partner and civic leader Deborah J. Daniels has been elected as Krieg DeVault’s new Managing Partner. Daniels, who is beginning her threeyear term, succeeds long-time Managing Partner Michael E. Williams, who has served as the firm’s Managing Partner since 1991.

Hobbs Joins Church Church Hittle & Antrim Ben Hobbs has joined Church Church Hittle & Antrim’s (CCHA) Tipton office as an ‘of counsel’ attorney. Hobbs brings with him significant estate planning, probate and trust administration, and real estate transactional experience serving the Tipton County community. Hobbs formerly owned Hobbs Law Office, which CCHA acquired as part of his move.

Denise Dillard is 2014 Recipient of IHA’s Award of Merit The Indiana Hospital Association has presented one of its two highest awards to Denise Dillard, Methodist Hospitals’ Chief Consultant for Government Relations and External Affairs.

This award is given to an individual, other than a hospital CEO, who has made noteworthy contributions to the health care field and has demonstrated a devotion to the interests and goals of hospitals and the humanitarian services they provide.

American Staffing Association Elects Elwood as Chairman of Board of Directors John Elwood, president of Columbus, IN-based Elwood Staffing, was recently elected as chairman of the American Staffing Association board of directors during Staffing World, the association’s annual convention and expo. ASA is the national trade association representing the $122-billion U.S. staffing, recruiting, and workforce solutions industry.

Indiana School Counselor Association honors Purdue Calumet professor, grad student The Indiana School Counselor Association (ISCA) has honored Purdue University Calumet Clinical Associate Professor of School Counseling and

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Development Bonnie Colon and graduate student Johanna Hess.

Colon, of North Judson, accepted the Exemplary Counselor Educator Award, while Hess, a Lowell resident, received the Womack Scholarship Award at the recent ISCA conference.

IU Professor Wins STEM Award The 2014 Women of Color STEM Conference recently awarded Indiana University School of Education associate professor Dionne Cross Francis for her work in mathematics education. Cross Francis is the recipient of the K-12 Promotion of Education award for educators with a demonstrated commitment to enhancing STEM career opportunities for women and minorities through promotion of STEM education programs and exemplary teaching and outreach activities.

Konyha Appointed Director of OCRA Bill Konyha has been appointed Director of the Office of Community and Rural Affairs (OCRA). He will lead a staff of 15 that provides capacity building programs and technical assistance to rural towns and cities for community and economic development and will be a member of Governor Pence’s Cabinet. Konyha comes to OCRA after 18 years in the private real estate development industry and 24 years in community development.

Huber Wins Purdue’s Outstanding Commercialization Award Jessica E. Huber, a Professor in Purdue University’s Department of Speech, Language and Hearing Sciences, is the 2014 recipient of the Outstanding Commercialization Award for Purdue University Faculty.

The award is given annually to a faculty member in recognition of outstanding contributions to, and success with, commercializing Purdue research discoveries.

Radius Indiana Adds New Communications Specialist Radius Indiana announced the addition of Amy Lore, who will be assuming the communications and marketing responsibilities for Radius. Lore previously served as a staff member for former U.S. Senator Jon Kyl (R-AZ), before joining Skillman’s state house staff in 2005.

Bethel College Appoints New Director of Financial Aid Bethel College announced the hiring of Jody Walker as director of financial aid. Walker most recently served as director of enrollment management and financial aid at the Anabaptist Mennonite Biblical Seminary (AMBS) in Elkhart, Ind. In addition to her seven years at AMBS, she served in roles with the Nappanee Redevelopment Commission, the Family Christian Development Center, and the Elkhart County Special Education Co-Op.

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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Photo Feature BCRC Executive Director Celebrates Retirement Building Construction Resource Center (BCRC) Executive Director Robert Anadell celebrated his retirement just before the holidays. Anadell has served as the Executive Director of the BCRC for the past eight years, and was a board member since 1996. Before that, he was a Business Manager for the IBEW, and was with Hyre Electric for 24 years.

“This is a great bunch of people I’ve had the pleasure of working with over all these years,” Anadell said. He plans on spending his retirement traveling with his wife, upgrading his basement, and enjoying himself.

Pictured: (L to R) Lisa Carpenter, LAUW Sr. Relationship Manager, Shellie Dell, LAUW Donor Relations & Marketing Manager, and Nick Spencer, BP Whiting Refinery Manager. Photo by Beth Sciackitano.

BP Makes Special Gift to Lake Area United Way BP Whiting Refinery recently made a gift of $4,000 to Lake Area United Way’s Community Campaign. The presentation took place during BP’s family picnic at Whiting Lakefront Park. The donation consisted of funds raised as a result of company-wide events and competitions including several ice bucket challenges and a 5K Run. Accepting the donation, Shellie Dell, LAUW’s Donor Relations & Marketing Manager said, “BP represents the

Building Construction Resource Director (BCRC) Executive Director Robert Anadell celebrated his retirement just before the holidays.

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heart and soul of Northwest Indiana. We are honored and thankful to be BP’s charitable partner and appreciate all they do for our community throughout the year.” www.buildingindiana.com | JANUARY/FEBRUARY 2015

Junior Bridgeman met with local youths, signed some autographs and spoke about the importance of education and training at the Gary Chamber’s Lakeshore Classic Luncheon.

Junior Bridgeman (left) & Gary Chamber Executive Director Chuck Hughes.

Junior Bridgeman with 1970 East Chicago Roosevelt player Cavanaugh Gary.

Junior Bridgeman Speaks at Lakeshore Classic Luncheon Fast food entrepreneur and former NBA star Junior Bridgeman delivered a presentation at the Gary Chamber’s Lakeshore Classic Luncheon. The event was held at the Majestic Star Casino. Bridgeman is the CEO of Bridgeman Hospitality Group, owning 244 Wendy’s and 120 Chili’s restaurants and additional Perkins and Fazoli’s restaurants.

Bridgeman spoke about the importance of education as a gateway to opportunity.”

Porter Health Care System Breaks Ground on New Valparaiso Medical Center Expansion Porter Health Care System Pictured left to right: Dr. Keith Gingerich (board member), Janet Brown (board member), Dr. Sudhakar Garlapati (board member), Rex Richards (Valparaiso Chamber of Commerce President), Jon Costas (Mayor of the City of Valparaiso), Porter Health Care System CEO Steve Lunn, Andy Moats (Design Organization), Dr. James Turk (board member), Dr. Michael Woods (Director of Porter’s ER Services), Vladimir Stevanovic (Walsh Construction).

officials gathered to celebrate the groundbreaking of the new Valparaiso Medical Center expansion. The new facility boasts 10,000 square feet of new space, and will feature a 24-7 emergency department, 10 exam rooms, X-ray, CT scanner, MRI, and more. 50 new jobs are projected

This photo shows a rendering of what the new Valparaiso Medical Facility will look like once completed in fall of 2015.

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

to fill the new space, which should be completed in fall of 2015.

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State of the Industry

The Facts About Indiana’s Common Construction Wage Law

By Dewey Pearman, Executive Director, Construction Advancement Foundation

W

ith the start of the 2015 session of the Indiana General Assembly in early January there will no doubt be some discussion about a not well understood issue – Indiana’s common construction wage law. Historically, much of the discussion has been about repeal of the law. For very sound economic reasons the law should not be repeated.

In a nutshell, the law requires any public agency undertaking a construction project costing more than $350,000 to go through a wage setting leaving to insure workers on that project are being paid a wage consistent with what workers in the county in which the project is being built are customarily being paid.

The hearing is conducted by a five member 28

panel. Two members of the panel are appointed by the public agency building the project, one of which must be a taxpayer in the agency’s district and the second is a representative of the agency often an employee of the agency or an architect, engineer or consultant work on the project for the agency. One member of the panel is appointed by the county fiscal body and must be a taxpayer of county. One member is appointed by the AFL-CIO, and the last member is appointed by the Indiana Associated Building Contractors, which represents non-union contractors in the state.

During the hearing the panel is charged by the law to take, review and consider local wage information brought forward by any interested party. Presumably, that information

is well sourced and documented so the panel can be confident that the wages they determine must be paid to workers on the project do indeed reflect what is commonly being paid to workers in the county.

The practice of wage settings for public projects goes back many decades with the passage of federal law, the Davis Bacon Act which required wages to be set on federal projects.

Since that time most States have adopted State statutes that apply the same concept on state and local government projects. All too often in the discussion of the merits of those laws the original rationale for their adoption has been forgotten. This gets back to the sound economic reason to have a wage setting process I referenced earlier. The thinking was, and

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still should be, that, because the vast majority of construction being done in a given local market is being done by the private sector the wages being paid to local workers is determined by private players in that market. That is, those who pay to have projects built in the area are private businesses employing privately owned construction companies who employ private individuals as their workers have, through the workmanship of private market determined what a carpenter or electrician or painter or any other craft person in the area is paid. Wage setting laws are in place to insure that publicly financed spending in the local market does not disrupt the private labor market by paying wages higher or lower than what is already commonly paid in the county. If the private sector has determined that the value of a carpenter in a given county is $25.00 an hour workers on public projects ought not to be paid $35.00 an hour because that would distort the labor market and put an upward pressure on wages. Neither should that carpenter be paid $15.00 an hour which would again distort the private sector labor market by pushing wages down.

to another area. These are dollars that are no longer available to be spent in local businesses – grocery stores, auto dealers, furniture stores, etc.

Those who advocate for the repeal of the common wage law often argue that doing so would save taxpayers money on their projects. Studies show this is clearly not the case. As an example a study written by Professor Peter Phillips of University of Utah titled A Comparison of Public School Construction Cases I Three Midwestern States That Have Changed Their Prevailing Wage Laws in the 1990’s found that the absence of a prevailing wage law found not statistical

“Wage setting laws are in place to insure that publicly financed spending in the local market does not disrupt the private labor market by paying wages higher or lower than what is already commonly paid in the county.”

There is another important economic consideration that makes it additionally important that wages paid on public projects are consistent with those determined by the private sector. In a case where wages on a public project are below what is paid in that market local contractors are placed at a competitive disadvantage to contractors from lower wage areas or states. The local contractors, in order to hold on to their workforce have to continue paying their workers the wage rate determined by the private market, while out of town or out of state contractors from lower wage markets can bid the project using lower wage rates. In this case the spending of public money often results in the project being awarded to an out of town contractor who brings his low wage, and often lower skilled workers to build the project. As a result the community suffers economically because wage dollars and contractor profits are exported JANUARY/FEBRUARY 2015 | www.buildingindiana.com

effect on the per square foot cost of school construction for almost 400 school projects in the those states. Here’s the primary reason, while an out of town contractor paying lower wages has a competitive bidding advantage over local contractors they don’t pass on the full value of that wage difference to the public agency. They don’t need to. They only need to beat the local contractors by a dollar so they bid just slightly under what the local contractors bid. The vast majority of the out of town contractors wage advantage is taken as enhanced profit.

Which, like the wages being paid to out of town workers, is exported out town.

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29

Rule of Law

The World Wide Web... and the New Wild Wild West of Labor and Employment Law - Introduction

By Arthur C. Johnson II, Johnson, Stracci & Ivancevich, LLP

F

or years, employers and employees could take comfort in the fact that labor and employment laws were fairly consistent. Both employers and employees knew what actions they could or could not take under the law, absent a new law being passed or court interpretation in the most novel of circumstances. That certainty has been rocked by the advent of the internet and social media. The prevalence of social media today has created a Wild Wild West of sorts in employment. Regulation of this new frontier in communication, while initially wild and free, is evolving now that the government and courts have begun to act. There are new “sheriffs” in

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this town, and employers and employees better be ready, or else they’ll find themselves on the wrong side of a legal shootout.

The following series of articles will address various issues that have arisen in employment law due to the rise of the internet and social media. The issues include: hiring and recruitment; pre-employment checks; discrimination; harassment; labor relations; employee conduct; and the effect of employees utilizing their own devices for work. Each issue named above has either been impacted by the internet and social media, or is new. Labor and employment laws are currently in flux in each of these areas as the law attempts to catch up to this new frontier.

Just as employers and employees have begun relying more on the internet and social media in choosing whether to work together, the EEOC and NLRB have come to town to act as “sheriff” and lay down old laws in a new way through the judicial system. Most employers were ahead of the government and implemented policies for these new avenues of communication, just as settlers were ahead of “sheriffs” in the Wild Wild West. Cases have recently been be decided addressing these issues, and the policies employers had previously implemented.

The internet and social media now impact what employers review when considering job applicants. A 2014 survey from CareerBuilder in-

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dicates that 43% of employers screened potential hires using social media; 51% of those employers who used social media to screen applicants found information that caused them not to hire a candidate.1 Two of the most prevalent reasons include provocative/inappropriate photographs or information, and information about the candidate drinking or using drugs. However, 33% of employers found information on social media that caused them to hire a particular candidate; reasons included that the candidate conveyed a professional image and that their background information supported the candidate’s purported professional qualifications.2 This new frontier for employers and employees allow each to provide and obtain additional information on the other that was not previously readily available. This information, while valuable, impacts a candidate’s potential claims, as well as an employer’s potential defenses in employment litigation. For instance, an employer that has reviewed an applicant’s online presence may lose the ability to defend against a discrimination action using lack of knowledge as a defense if relevant information is contained in a candidate’s social media profiles.

Social media and the internet also impacts an employer’s relationship with current employees. This is true even for employers who have applicable policies already in place. In the case of Simonetti v. Delta Air Lines, Inc, which was not decided due to Delta’s bankruptcy, the plaintiff began and maintained a blog entitled, “Diary of a Flight Attendant,” in which she discussed her experiences traveling as a flight attendant. In one post, she posted photographs of herself in her flight attendants uniform; however, her shirt was partially unbuttoned and her bra was partly visible. Delta determined that such photographs were inappropriate and violated its company policies, subsequently terminated her employment.

Simonetti filed a suit alleging discrimination, arguing that Delta treated flight attendants differently, who had also posted racy photographs, but who were not terminated. She alleged because she was treated differently, she was subjected to sex discrimination. While the case was not decided on the merits, it does illustrate how online actions impact the employment relationship.

Employer policies, and the application and enforcement of those policies in regard to online activity, have also impacted the interpretation of labor laws.

The NLRB has begun to emphasize the application of labor law to social media.

This is particularly true in the context of what constitutes employees’ concerted activities. In Pier Sixty, LLC and Hernan Perez and Evelyn Gonzalez3, the NLRB found that the employer violated the National Labor Relations Act when it fired an employee who posted on Facebook “Bob is such a NASTY MOTHER F****R don’t know how to talk to people!!!!! F**k his mother and his entire f*****g family!!!! What a LOSER!!!! Vote YES for the UNION.” The NLRB found that the statement was concerted activity, and thus protected, because of the last sentence telling folks to vote for the union.

The internet and social media have provided new platforms for both employees and employers to obtain information, voice opinions (regardless of how crude), and even post racy photographs. The NLRB, EEOC, and individuals have begun using the judiciary to address this new Wild Wild West, and the judiciary has taken on the role of sheriff. Over the coming issues, this new frontier (at least in the legal community, since it moves about as fast as a turtle moves through molasses) will be examined relative to labor and employment laws. Stay tuned.

1 Posts Continues to Rise According to CareerBuilder Survey (June 26, 2014), available at (last visited on September 14, 2014).

2 Id. 3 Case Nos. 2-CA-068612; 2-CA-070797

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31

Safety Zone

Opening Doors to Safety NWI Contractors are Welcoming New Partnerships with IOSHA

By Nick Dmitrovich

S

ome construction contractors dread the thought of their next visit from Indiana OSHA inspectors, but others throughout Northwest Indiana are actively participating with the state in an effort to provide continuous safety education and collaboration across their jobsites. Working with the Indiana Department of Labor’s Voluntary Protection Program (VPP), contractors partner with IOSHA to develop, implement and improve safety procedures long before they become recordable incidents. As a result, the IDOL reported that the average VPP worksite has a lost workday incidence rate more than 69% below the average of its industry.

Contractors working at NIPSCO and BP facilities are leading the charge with VPP, and are bringing about a new generation of safety for the utility giant and numerous other companies.

“The Voluntary Protection Program is very important to our contractors, and it shows their commitment to safety from the perspective that they’re really trying to go above and beyond requirements,” said Jenn Miller, Managing Director

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Beth Ann Gonzalez, VPP Leader with the Indiana Department of Labor, spoke at the NIPSCO Safety Committee meeting about OSHA’s Voluntary Protection Programs (VPP).

of Environmental, Safety & Training for NIPSCO. “Having a regulator present on jobsites can be worrying for some contractors, because it does open the door for IOSHA to notice problem areas,” Miller said. “There’s two ways to look at this though; one could worry about the possibility of a violation being brought to their attention, or you could see it as a glass-half-full scenario. Who wouldn’t want to identify problem

areas before they become major situations?”

Beth Ann Gonzalez, VPP Leader with the Indiana Department of Labor, provided some insight to ease some of the fears contractors had when inviting IOSHA to their sites.

“I haven’t written a citation in a long time,” Gonzalez said. “My job is to get things fixed. We evaluate and determine ways to fix problem areas before they become citations.”

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Miller explained how this concept was first brought to NIPSCO’s attention, and how the interest in VPP spread throughout NIPSCO’s multiple contractors.

“We were approached by one of our conDon Bull, NIPSCO’s tractors, BMWC Constructors, about VPP,” she Director of Outage said. “They brought this concept to us and exManagement plained that this was a particular status they & Systems Optimization, were trying to earn. Initially, BMWC sought speaks before the NIPSCO’s approval because having regulators Safety Committee members at their follow them around our jobsites indirectly September meeting. opens up other contractors or NIPSCO employees for observation.”

“But, as they say, we are our brother’s keeper, and IOSHA wants us to be practicing safety whether they’re present on the jobsite or not. So when BMWC asked us if we were okay with this, we said absolutely,” Miller said.

“This is something totally new for NIPSCO, or any other major utility company that I’m aware of, and it’s going to make safety better for us and better for our contractors,” Miller added. “The snowball effect of this brought a majority of our other contractors on board, and it’s really brought about a new generation of safety education throughout our members.”

Doug Patton, Project Safety Manager with BMWC, said, “VPP is a very strong program for contractors, and so far, it’s been a very pleasant experience for our company. The gap analysis that we conduct as part of the VPP process has been a very good way to take a renewed look at all of our safety procedures. Sometimes things that are going correctly receive little attention, so this has caused us to conduct extensive review and find new ways to improve safety. So far, it’s been very rewarding.”

Very recently, BMWC has achieved the “VPP Mobile Workforce Star Status,” making them the first construction company in Indiana to earn the distinction of partnering with IDOL and committing to continually improve their safety culture through collaboration and information sharing.

Learning is one of the core aspects of the Voluntary Protection Program.

IOSHA regulators are making sure that safety practices on the job site match up with the safety procedures of the state and industry, while at the same time discussing weaknesses and best practices with contractors. In turn, contractors are sharing information with IOSHA about new developments, technologies and procedures that are formed on their jobsites.

“IOSHA, through VPP, is a great source to be able to ask questions and learn from,” Miller said.

Patton said, “Beyond just working with IOSHA, we’re seeing a lot of construction competitors sharing safety information as well, especially within the NIPSCO Contractor Safety Committee. As competitors, when you see another company have an accident, it’s easy to say ‘bad for them.’

But now, with this committee, competitors are finding ways to share information and help each other.”

“If another company has an accident, I should be looking at my own programs and asking what I can do to help,” Patton added. “It’s a really fantastic thing.”

All in all, the VPP program has turned a lot of historical perceptions about construction safety on its head. Contractors are collab-

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

orating with competitors, and opening their doors to new partnerships with the Dept. of Labor – all in an effort to keep workers safe on all NWI jobsites.

Miller defined the shift in trends best when she said, “We’ve made great strides in safety, and this is one step to help affirm that notion even further. We have an extensive safety program at NIPSCO, but VPP is taking things to another level. All components of safety require documentation and implementation of specific procedures under VPP, and it’s going to continue to boost safety across the board. Our goal is for everyone to go home in the same condition they were in when they arrived at work – safe and protected.”

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Cover Story

List of entities involved with NIISSA • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

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Advanced Counseling Services (Mental Health) American Structurepoint ArcelorMittal BP BP North America USPL Calumet Township Chicago PD-Counter Terrorism Chicago Police Dept.-CPIC City of Gary CN Railroad Comcast Community Hospital Cook County LEPC CPIC Crown Point Police CSX Transportation DHS DHS FEMA DHS/TSA District 1 IMT/PCH Dept.

District 1 Task Force and Porter County EMA DRTF1 East Chicago PD ECEMA EMS Coordinator Hammond FD Enbridge FBI FBI Special Agent Chicago and Washington DC FEMA Franciscan Physician Hospital Gaming Commission Gary EMA/IDHS Gary Police Department Geminus Genric Inc. & USS Grainger Hammond PD Hoosier Helpers IDEM IDHS IIFC Illinois Department of Public Health In-American Water Indiana Dept. of Homeland Security Indiana DNR-LED Indiana State Police INDOT-Laporte District ISWG-Public Sector Co-Chair IUN Chief of Police Jasper County EMA Lake Central School Corp.

Lake County (IL) EMA-Emergency Contact Coordinator Lake County Hazmat Lake County Homeland Security Lake County LEPC Lake County Police Department - Aviation Lake County Sheriff’s Department Lansing Municipal Airport La Porte Co. Hazmat Larson Performance LCDHS/EMA LCDHS-CERT Legacy Environmental & South Shore Clean Cities LPCO EMA Methodist EAP Methodist Hospital and District Hospital Rep Michigan City PD Motorola Solutions Munster Police and Fire Departments Newton County EMA and DPC Representative NICTD NIRPC NiSource North Shore Health Centers Northlake Methodist Hospital NW Indiana Law Enforcement Academy NWI – COAD NWICA/2-1-1 (COAD) Port of Indiana Porter County EMA D1 TFC Power Chemical PSLI/PCR, LLC Purdue University Purdue University Calumet Races District 1 Red Cross Regional Mental Health Sage Popovich Security Professional St. Catherine’s St. John PD State Police Swat Tetra Tech Town of Munster TSA/DHS U.S. Senator Donnelly U.S. Steel U.S. Steel Consultant United Way Regional Volunteer Center US Attorney’s Office USCG MSU Chicago USS Valparaiso University Valparaiso University PD Vertex Improved Performance

Photo courtesy of

The Ports of Indiana, Burns Harbor

Learning from

Each Other “Northwest Indiana Information Sharing Security Alliance” Brings Together Public and Private Entities for Strategic Planning and Collaboration

By Nick Dmitrovich

W

hen it comes to disaster preparedness, Northwest Indiana is making moves that’ll take the region several steps beyond the rest of the country. Over the last few years, numerous public and private entities have begun collaborating on a comprehensive plan to augment the recovery process of virtually every disaster scenario imaginable. Dubbed “Northwest Indiana Information Sharing Security Alliance (NIISSA),” this all-hazards body may just serve as a trend setter for the rest of the nation.

David Capp, U.S. Attorney for the Northern District of Indiana, and Stephen Scheckel, Chief of Police for the Town of Munster, are two of the leading coordinators of NIISSA. They provided some details about the alliance’s formation and functionality.

“The precipitating event for NIISSA was 9/11. That was a tragic day for all of us,” U.S. Attorney Capp said. “One of the things that I felt very strongly about was that the security of the region, specifically our infrastructure, is not just a federal, state, or local government affair. It’s not just a law enforcement affair. It’s all of us. And the private sector has to be an equal part of it.”

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“In the early days of this idea,” he continued, “We hosted a conference between the FBI and the U.S. Steel Corporation. Also we co-hosted a cyber-security conference in our building in Hammond, between private industry sector people and public industry sector people, which was also attended by the Attorney General of the United States. This was an innovative fusion of the public and private groups that you really don’t see all that often.”

“Now this concept has evolved into a five-county District One State Homeland Security Center. This all started with concerns arising out of 9/11, but now it has grown to encompass many other concerns such as natural disasters,” Capp said.

Chief Scheckel explained how the alliance evolved from a terrorism-focus into an all-hazard entity.

“Back in 2008, Munster experienced flooding caused by heavy rain from after effects of Hurricane Ike,” Scheckel said. “State resources were depleted pretty quickly, local resources were depleted instantly, and the federal government was also stretched pretty thin by this whole situation.”

“Every community that was effected set up their own emergency operations center,” Scheckel said. “No one was really talking effectively to each other. I believe everyone did a great job, but in retrospect, hundreds of people lost their homes and our private sector partners were losing millions of dollars a day. Shutting down the expressways forced companies to look for alternate routes, and many weren’t sure about how to keep their goods moving. Mr. Capp sat down with U.S. Steel sometime in 2010, and they came to the conclusion that everybody has a chip in this game, we need to work together.”

“Bringing the private sector into these meetings allowed us to share information about where the hazards were, where potential problems were, and they decided to move the alliance into actually identifying and producing results,” Scheckel said.

In 2012, the members of the alliance started forming specific goals and had grown into a new entity: the Northwest Indiana Information Sharing Security Alliance. One of the first things the alliance did was set a requirement to work together and form a shared resource list. Purdue University, through a grant, developed a very robust shared materials list called the Disaster Management Communication System (DMCS).

Munster Police Chief Stephen Scheckel (left) stands with U.S. Attorney David Capp.

Any partner can log on to the database and see available equipment – it’s almost like shopping online. An entity can reserve a piece of equipment, contact information is shared, and the partners can work out the logistics. It functions very much like a requisitions format.

Barbara Nicolai, Associate Professor at Purdue University Calumet, is the lead researcher working on the Disaster Management Communication System (DMCS). The inspiration for this system came to her during the aftermath

This all started with concerns arising out of 9/11, but now it has grown to encompass many other concerns such as natural disasters,”

of Hurricane Katrina.

Describing the DCMS, Nicolai said, “The biggest challenge facing first responders was that getting necessary equipment was a manual process. You’d have to get on the phone, call entities and ask what they have available; trucks, specialized large equipment, etc. This is all based on the FEMA reimbursable system, and there is a whole protocol for the reimbursement of hours, equipment, all of those things.”

“First responders really needed a way to track the equipment, because things can get misplaced temporarily when they’re put different places for use. So, we designed a tracking system, implemented it using some grant funding, and hired some graduate students to help work on it,” she said.

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A new company joining the alliance can list their equipment in two different ways: they can access everything online, or if they have a spreadsheet listing of all of their equipment, they’ll be given a list of all of the FEMA reimbursable codes that can be associated with their items.

“The whole point of the design is to keep things simple,” Nicolai said. “This is an integrated system, and all the software we’ve designed is based around the government requirements and structure. One of the most important aspects of this whole project is accuracy. The ownership of the data has to be in one place, so everyone who needs the data can come to that one place.”

Requesting a piece of equipment is as simple as searching the system by type of disaster or need, and users will be able to see resources within proximity to the affected area.

“Think of it a lot like a Google search,” said graduate student James Miller, who is one of Nicolai’s researchers. “The system will screen every possible resource by need. So if you search ‘water,’ for example, you’ll be able to see any item that could possibly relate to that search.”

Miller explained that the DMCS is actually much more than an equipment requisitions database. The system can provide citizens with tailormade Google mapped evacuation routes than can be sent out to smart phone users via email or text, and can detail obstructions that may inhibit evacuation. Additionally, information can be reported by citizens using GPS tagged photographs – allowing information to be shared by the minute with emergency responders.

“We want to provide the public with as much information as possible in a time of emergency,” Miller said. “Even if a person doesn’t have internet access on their mobile device during a

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Cover Story

time of emergency, we can send them a screenshot of a map that will show them areas to avoid, and locations they should head to.”

Building from the shared resource list, NIISSA came up with an all-hazards plan for the five counties (Lake, Porter, LaPorte, Newton, and Jasper) in a single comprehensive document. Prior to this, each county had its own plan.

Individual municipalities still retain their own emergency operations, but they now have the option of sending a representative to NIISSA to be involved in the decision making process.

“They don’t have to abandon their own plans,” Chief Scheckel said. “This is all just about being plugged into the big picture. It’s a network.”

The Coast Guard has also become part of the alliance’s meetings. They provided examples of ways in which public-private partnerships will work in a disaster and recommended establishing an all-hazards response center so NIISSA partners know where to go in an emergency.

“In order to do that,” Chief Scheckel said, “It requires funds, and that’s where the private sector’s going to come in. We’ve received legal assistance from several corporations when drafting our 501(c)(3) forms. We then established our board of directors, treasurers, and checks and balances that met legal requirements to actually start receiving monies from our private sector partners, utilizing what we can from the public sector, to form our All Hazard Regional Coordination and Training Center (ARCTC).”

The Hospital Emergency Planning Committee, Inc. (HEPC), representing the 13 Hospital and Medical Facilities within the 5 counties of the district, participates within the alliance.

“The hospitals are unique in the sense that some are privately owned and some are government-based,” said Raymond Chambers, Director of the Newton County EMA, and member of NIISSA. “We really wanted to give them a seat at the table as they are very much a critical infrastructure component. This allows them to be part of the planning and resources to work with the alliance. The Chairperson of HEPC has an appointed position on the Board.”

“The Board is comprised of equal number Private Entity and Public Sector representation, plus the Hospital holds a position, so no one group can ever supersede power over the other.

This ensures trust to our stakeholders that the best interest of the group remains dependable and dedicated to our mission. We hope to always

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Members of Purdue Calumet’s Computer IT Department sit next to a display showing the Disaster Management Communication System (DMCS).

From left to right are: Technology Specialist Donna Alt, Asst.

Professor Barbara Nicolai, Graduate Student James Miller (seated), and Undergrad Senior John Vroom.

allow a continued working relationship for years to come,” Chambers said.

Several of Northwest Indiana’s leading corporations cited unique reasons why they chose to participate in this partnership. U.S. Steel is one of the major components of NIISSA, having been involved since its inception. Representatives from

“The members learn about NIPSCO and our operations – including our experience in emergency situations – and we learn more about how the public sector and other major companies are trained to handle emergencies and natural disasters.”

the company mentioned several reasons why U.S. Steel decided to participate.

“Valuable lessons were learned from the flooding that happened in Northwest Indiana several years ago, notably that there was a lack of communication and coordination between the municipal and private sectors. This region has vast resources available during times of emergencies. The key is to coordinate and get the resources to the people in need, when they need it,” U.S. Steel said.

“Any time you have a collaborative effort between industry and municipal sectors, recovery will be greatly expedited for all. At U. S. Steel, we take pride in being a member of the community that we reside in. The 12 miles of lakefront between Burns Harbor and East Chicago is the most heavily industrialized strip in the country.

The resources available to aid in incident mitigation are immense – heavy equipment, pumps, plows, trucks… just to name a few. Along with this, NIISSA’s future ARCTC will be a huge addition to the communities in mitigating future natural disasters and emergencies.”

“Since the onset of the alliance, other regions of the country have taken note and have formed similar organizations. The footprint is already in place, and as other regions grow in the same direction as NIISSA, joining the other entities together as a joint command will only accentuate an already great asset. The possibilities are endless,” the company said.

Other companies have been very supportive of NIISSA as well. Joyce Shroka, Director Business Continuity & Records with NiSource, spoke about the advantages for companies involved with NIISSA. “Each of us brings different experience and resources to the alliance, and it’s this open sharing of information that is most important,” she said. “The members learn about NIPSCO and our operations – including our experience in emergency situations – and we learn more about how the public sector and other major

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JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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Cover Story

“This alliance is critical to the safety of our communities, and we play an important role alongside our emergency responders and elected officials during emergencies.” companies are trained to handle emergencies and natural disasters.”

“This alliance is critical to the safety of our communities, and we play an important role alongside our emergency responders and elected officials during emergencies. Our experience shows that when public and private sectors work together and maintain open lines of communication, the better the outcome is for everyone involved.”

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Shroka also said that the alliance will help expedite the recovery process in the event of a disaster. She said, “There is now a more efficient framework to communicate and share resources and expertise that was never available before. This should help us make better decisions that consider the whole region, including the public and private sector.”

Shelly Iliff, Public Awareness Coordinator for Enbridge, said, “Enbridge chose to be a member of NIISSA to further our partnerships in the public sector as well as liaison with both public and private sector members. In the event of a disaster or any other emergency, we believe that this alliance’s partnership will provide a more efficient means of preparedness as well as response and recovery. The ongoing communication allows us to learn about how each organization would respond in different emergency scenarios thereby making for a more efficient coordinated response when the time comes.”

Considering everything that’s evolved from the work that members of NIISSA have

developed, Northwest Indiana will be poised to take on any challenge. Inevitably, emergency situations will occur in the future, but the collaborative efforts of all of the parties involved will help ensure that business gets back on track as efficiently and quickly as possible. It’s amazing to see what organizations can achieve when they bridge the line between public and private, sharing resources and expertise for the betterment of the entire region.

Any companies interested in joining the Northwest Indiana Information Sharing Security Alliance should visit www.buildingindiana.com for appropriate contact information.

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Bottom Line

Accelerating Hoosier Education 2014 Sets New Records in Hoosier Academic Research Funding

By Nick Dmitrovich

2

014 set several new milestones in multimillion dollar academic research funding for several of Indiana’s premier universities. All across the state, post-secondary institutions acquired gifts from generous donors and organizations that will help support Indiana’s higher-level learners across the board. Here’s a breakdown of some of the key developments that took place last year:

for Research Robert Bernhard said, “Our recent success in growing our research profile is due to the strong vision and incredible hard work of our faculty. Notre Dame faculty have been successful in an increasingly competitive research environment. These grants enable our faculty and students to work on interesting and important questions and we see many other interesting opportunities emerging as well.”

University of Notre Dame Last year, the University of Notre Dame achieved record-setting numbers in research funding, coming in at a total of $113 million in research awards for fiscal year 2014. This was the highest amount ever recorded at the University in a non-stimulus year and a $17 million increase over the previous year.

Roughly 52 percent of the funding was awarded by the federal government for research, facilities and equipment, and educational and service programs. Awards from industrial sponsors represented 14 percent of the total awards, with 34 percent sponsored by foundations and other sponsors.

Speaking about the funding, Vice President

Several significant awards included: • $23 million from the Bill & Melinda Gates Foundation to fight malaria and dengue fever through research into the effective ness of spatial repellency in mosquito control.

• $10 million, over five years, from the National Nuclear Security Administration

to support the Center for Shock Wave-pro- cessing of Advanced Reactive Materials.

• $8+ million from the John Templeton Foundation for a number of research initiatives, such as The Experience Project for the Department of Philosophy and the Center for Civil and Human Rights’

research project.

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•

•

$12 million continuation grant from the U.S. Department of Energy for the Energy Frontier Research Center to continue research on actinide materials at the nanoscale, which will support future nuclear energy systems that may create more energy with less waste.

Notre Dame also won awards from the Andrew W. Mellon Foundation, John Simon Guggenheim Memorial Foundation, Lilly Endowment, National Endowment for the Humanities, National Institutes of Health, USAID and many others.

Purdue University

Last year, Purdue University reported its second-best year for external research funding and its largest annual dollar increase for a single year.

Research awards for fiscal year 2014 totaled $389 million, an increase of nearly $70 million – close to 22 percent - over 2013. The total funding for 2014 climbs to $390 million when including the one-time stimulus awards from the 2009 American Recovery and Reinvestment Act. “It is due to the brilliant and diverse ar39

Bottom Line

ray of researchers at Purdue that we win these awards,” said Purdue President Mitch Daniels.

“Our faculty are making vast impact with their discoveries, and it is our duty to support them with fast and effective pre- and postaward activities.”

Purdue received 337 more awards in 2014 than it did in 2013.

Among the awards were: • $1.5 million grant from the National Science Foundation, to develop a method to mass-produce a new type of nanomaterial for advanced sensors and batteries, with an eye toward manufacturing in the Midwest.

• $2.4 million grant from Lilly Endowment Inc., to the Military Family Research Institute (MFRI) to continue to improve the lives of members of the military, veterans and their families.

• $5 million, five-year grant from United States Agency for International Development to help countries in sub-Saharan Africa reduce hunger and poverty by reducing food waste

40

•

and improve processing and marketing of key crops.

Other awarding agencies include the National Science Foundation, Department of Health and Human Services, and the departments of Defense, Agriculture and Energy; state and local governments; the Purdue Research Foundation; and other federal agencies and foreign governments.

Indiana University – School of Medicine Indiana University School of Medicine researchers brought in more than $109 million in grants from the National Institutes of Health in fiscal year 2014, an increase of nearly $12 million that sharply boosted the school’s NIH award rankings.

The school’s ranking among all 135 schools of medicine rose to 37th, up from 41st in 2013.

Among state government supported schools, IU School of Medicine rose to 16th from 19th the year before.

Recent discoveries by IU scientists, such as a molecule that may be a key to preventing heart failure, a compound that may be the first to slow or halt chronic obstructive pulmonary disease, and

a protein that promotes the growth of pancreatic cancer, were all made possible by NIH grants.

With federal budget cuts, funding for the NIH has fallen by more than 20 percent in the past decade after accounting for inflation, and the total number of research grants has also fallen significantly.

“The fact that we were able to counter this trend is a testament to the quality and dedication of our scientists, our ability to recruit talented new investigators, and our ability to leverage important investments in the IU School of Medicine’s research enterprise,” said Jay L. Hess, M.D., Dean of the IU School of Medicine and Vice President for University Clinical Affairs for IU. With the outstanding investments in Hoosier education made throughout last year, 2015 has the potential to be a year of great innovation and development for the state of Indiana. As new discoveries are made and new technologies are invented, a subsequent positive economic impact could be brought to life all around the state. It’ll be exciting to witness all the continued achievements of our academic institutions as they propel forward with the increased financial support of so many generous individuals.

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Small Business

Setting the Record Straight Debunking the Myths of SBA 504 Loans

By Nick Dmitrovich

C

alming the initial fears of potential borrowers is often the first task that members of the Regional Development Company undertake when meeting with new clients for the first time. There are many misconceptions the general public holds about Small Business Administration loans that are simply inaccurate. For the most part, acquiring a small business loan is a fairly easy process for most companies, many of whom are unaware of the opportunities that SBA loans could provide for their businesses.

“An SBA loan can have a tremendous impact on a business’s growth, and it’s typically much easier to attain than most companies realize,” said Erica Dombey, President and Executive Director of the Regional Development Company.

“Previously held beliefs or concerns often come up during the application process, but it’s our job to answer all questions and guide our clients through to success. Contrary to what many individuals think, acquiring an SBA loan is quick, there isn’t much paperwork, and the outcomes can be incredible.”

Here’s a look at some of the most common myths about SBA 504 loans:

Myth: “SBA loans are only for companies that don’t qualify for bank loans.”

There’s a common misconception that SBA loans are only for companies in high risk industries that don’t qualify for bank loans. This couldn’t be further from the truth. In order to earn an SBA loan, a business must have positive cash flow or strong projections.

“SBA loans are incorrectly perceived as the “loans of last resort,” when in reality they’re a great tool for businesses,” said Dombey.

“We have borrowers that have used SBA loans to mitigate interest rate risk, as the SBA 40% is fixed for 20 years. Bank rates adjust every 3-7 years, so there is a lot of risk with interest and payments going up over a 20 year amortization.

42

It’s also smart for businesses to use the 504 for expansion projects. Most times, they will need additional working capital and inventory for the expansion. Only having to put 10% down allows them to reserve the cash for those costs. Smart, growing, strong businesses use 504s, but the perception is just the opposite,” she said.

Niccole Zell, Vice President of Lending with the RDC, added, “The SBA 504 Program was designed by the US government to foster growth and expansion of existing companies, bring new jobs to the marketplace and increase the tax base of local municipalities. Many small business owners use the SBA 504 Loan Program to secure long-term, fixed rate financing with a low down payment regardless of their credit-worthiness.”

Myth: “I’m afraid that liens will be placed against my assets.”

Liens are another topic that individuals seeking small business loans are often worried about, but conditions with SBA 504 loans are different from commonly held perceptions.

Brian E. Rusin, Vice President and Business Banking Manager for People’s Bank, explained, “Lenders use SBA programs as an enhancement to extend credit to a customer that a bank may not typically extend under the terms of a conventional loan. There are a few different SBA loan programs. The SBA 504 program finances up to 90% of a fixed asset loan transaction, such as real estate or equipment, and using this program typically provides a bank adequate collateral so that additional liens are not generally taken on other business or personal assets of the owners.”

Myth: “The SBA lends money directly to small businesses.”

Unless your business is located in a national disaster zone, the SBA does not loan money to small business directly. The SBA guarantees loans that are funded by lending institutions and organizations like the Regional Development

Company. The RDC is a non-profit organization that has been certified by the SBA to administer the SBA 504 Loan Program.

Myth: “SBA loans take forever to get approved and require a ton of paperwork.”

“The typical SBA 504 loan processed through the Regional Development Company takes about 2-3 weeks,” Zell said. “The RDC provides guidance to both the small business owner and the lending partner to expedite the process. The small business owner and the lending partner do not have to deal with the SBA directly. Organizations like the RDC were created to make the process of obtaining a SBA 504 Loan quick and painless. Additionally, the RDC works closely with both the SBA and the lending partner to process the required paperwork in house, leaving the small business owner responsible for signing just a few forms.”

Myth: “SBA loans are only for very small businesses.”

The SBA defines a small business as a company that has less than $5,000,000 in after tax net profit and less than $15,000,000 in net worth.

According to the SBA, in 2010 there were 27.9 million small businesses across the country.

Myth: “SBA loans are only for very small dollar amounts.”

The maximum loan amount for a SBA 504 loan is $5,000,000. This means the SBA 504 loan can be used in conjunction with conventional and non-conventional financing to fund projects of all sizes.

Myth: “SBA loans come with a l ot of hidden fees.”

The average fee for a SBA 504 loan is around 3% of the loan amount. These fees are rolled into the loan and not paid out-of-pocket. All fees are clearly disclosed in the beginning of the application process.

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ARE ALL

Our operator made a successful pick. But what made it successful was the team that supported him. The oilers who maintained the crane and kept it ready to operate. The drivers who hauled the equipment to the site. The people that worked on the lift plan. And this team is part of a much bigger team, the ALL Family of Companies.

www.allcrane.com Š ALL Erection & Crane Rental Corp., an Equal Opportunity Employer

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43

Education Learn a trade? Or attend college?

• Nationally, the average trade school degree costs $33,000, and the average bachelor’s degree costs approximately $127,000 • Generally, most jobs in the trades are extremely difficult to export to another country • A typical trade school graduate will make about $42,000 per year, compared to $45,000 for college graduates Source: The Simple Dollar

For every 100 students who start college as full-time students in Indiana’s public four-year colleges…

• 34 students complete within 4 years • 63 students complete within 6 years • 69 students complete within 8 years The longer it takes for students to earn a degree, the less likely they are to graduate at all. The costs add up.

An extra year of college costs a Hoosier student nearly $50,000 in extra tuition, lost wages and related costs while also increasing the college’s total expenses for each degree it produces.

Source: Indiana College Completion 2014 Report

Facts about Hoosier College Graduation Figures • • •

•

•

There are 292 public school districts in Indiana.

There are 1967 public schools in Indiana.

There are 62,339 public school teachers in Indiana.

There are 1,040,765 public school students in Indiana.

Indiana spends $9,256 per pupil in public education.

2015 Facts & Stats Indiana has more postsecondary institutions than the national average.

Indiana

U.S. Average

Total Title IV degree-granting institutions

109

90

Public institutions

29

32

Private, not-for-profit institutions

41

31

Private, for-profit institutions

39

25

Four-year institutions

75

56

Two-year institutions

34

33

Source: National Center for Education Statistics, IPEDS, 2010-11

Let’s Compare 2014 SAT Scores State

Number Percent of all Class of of Test 2014 Students Who Takers Took the SAT

Percent Achieving College Readiness Benchmark

Indiana

47,842

70.5%

38.4%

Illinois

6,468

4.6%

80.2%

Michigan

4,027

3.8%

78.1%

Ohio

19,040

15.1%

64.4%

Kentucky

1,944

4.6%

75.2%

Source: CollegeBoard, 2014

Did you know?

Indiana students who graduated from public and private not-for-profit colleges with bachelor’s degrees in 2013 left school with an average debt of $28,000. That per-student figure was the 16th highest among the 50 states.

62 percent of Indiana’s 2013 graduates left college with some debt, giving the state the 21st-highest such percentage in the nation.

Source: The Project on Student Debt report, The Institute for College Access & Success

62%

Purdue University leads the nation in undergraduate engineering enrollment and Indiana University graduates more medical doctors than any other school.

Source: IN.gov

Shhhhhh...

•

• • •

Indiana has approximately 239 central libraries 199 branch libraries 880 ALA-MLS Librarians 1,370 total librarians

Source: National Center for Education Statistics

Source: National Center for Education Statistics

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www.buildingindiana.com | JANUARY/FEBRUARY 2015

Postsecondary Institution Spending • Indiana’s two-year colleges spend an average of $31,369 for each degree produced.

• Indiana’s four-year colleges spend an average of $62,208 for each degree produced.

Source: Indiana College Completion 2014 Report

Facts about Hoosier College Graduation Figures

The Value of Employee Training Just a 2-percent increase in productivity has been shown to net a 100 percent return on investment in employee training.

Source: “The 2001 Global Training and Certification Study,” CompTIA and Prometric.

Employers need to replicate real-life conditions in their learning facilities, due to the fact that more than 70% of learning occurs informally, while on the job.

70%

Source: Forbes

• 1 out of every 10 students finishes a two-year degree on time

• 3 out of every 10 students finishes a four-year degree on time

•

Full-time students at Indiana colleges are nearly twice as likely to earn a two-year degree and six times more likely to graduate with a four-year degree than part-time students.

Source: Indiana College Completion 2014 Report

State Level College Completion Data Two-year colleges

28.2%

= 28.2%

Four-year colleges

= 68.6%

Source: Indiana College Completion 2014 Report

68.6%

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

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Mass Production

An Opportunity Arises

National Manufacturing Competition Presents Exciting Possibilities for Indiana

By Nick Dmitrovich

D

id you know that If U.S. manufacturing were its own country, it would be the ninth largest economy in the world, as big as Russia and bigger than Italy and Spain? Indiana is a key component of this incredible fact, in that it’s only one of five states given an “A” rating in manufacturing industry health from the U.S. Department of the Census and Bureau of Economic Analysis.

And in fact, Indiana’s manufacturing industry outlook is on the rise. “Indeed, Indiana manufacturing is on a path that could see it grow in terms of employment and economic output to levels not seen in more than a decade,” according to the experts at Katz, Sapper and Miller, who very recently compiled the 2014 Indiana Manufacturing Survey.

Last quarter, an interesting opportunity arouse that could potentially open a whole new chapter in Hoosier manufacturing – particularly 46

for the high-tech industries. When President Barack Obama visited Millennium Steel in Princeton, IN, on National Manufacturing Day, he announced a new competition to award more than $200 million in public and private investment to create an Integrated Photonics Manufacturing Institute, led by the Department of Defense.

This is the second of four new institute competitions to be launched this year as part of an effort to build on the progress made and highlight the need for continued investment in American manufacturing. Indiana is involved in two of these other institutes: the American Lightweight Materials Manufacturing Innovation Institute (ALMMII) and the Digital Manufacturing and Design Innovation Institute (DMDII). Both of these institutions are working to develop and apply new technologies that will have a tremendous impact on a wide array of products and industries.

“When our manufacturing base is strong, our entire economy is strong. Today, we continue our work to bolster the industry at the heart of our Nation. With grit and resolve, we can create new jobs and widen the circle of opportunity for more Americans,” President Obama said.

So what exactly is integrated photonics, and why is this competition so important?

The White House explained that photonics is the use of light for applications as diverse as lasers and telecommunications, and it powers the internet as we know it today. Integrated Photonics manufacturing, the next generation of this technology, has the potential to revolutionize the carrying capacity of internet networks and to transport information at far greater densities and much lower costs than can be attained today.

Beyond the Internet and telecommunications, integrated photonics can revolutionize medical technology – from the development of “needle-

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less” technologies for monitoring diabetics’ blood sugar levels to tiny cameras smaller than pills that can travel within arteries.

The Department of Defense stated that, “Integrated Photonics manufacturing advances the promise of unprecedented interconnection between electronics and photonics that will deliver previously unattainable performance in speed, density and power consumption. This performance capability is anticipated to quickly become differentiating for defense applications such as high-speed signal processing, electronic warfare, information transport and computation, sensing, imaging and targeting. Similarly, integrated photonics will provide critical components in many commercial applications, such as data centers, high performance super computers, autonomous driving, and equipment for drug discovery, clinical diagnostics, and many consumer products.”

This Integrated Photonics Institute is expected to bring together industry, universities and community colleges, federal agencies, and the state agencies to accelerate innovation by investing in industrially-relevant manufacturing technologies with broad applications. This will bridge the gap between basic research and product development, provide shared assets to help companies access cutting-edge capabilities and equipment, and create an unparalleled environment to educate and train students and workers in advanced manufacturing skills.

where the businesses and the researchers are working on it at the same time, speeding up the discovery process, and moving us from discovery to application a lot faster.”

A project of this type would have broad implications for the state of Indiana – potentially ushering an entirely new industry category within advanced manufacturing.

The ripple effect of this institute could be tremendous for our state, extending from the medical applications of this technology, to defense, telecommunications and more.

Considering that the Hoosier state already has strong partnerships between its academic institutions, the public sector, and manufacturing organizations, Indiana seems like it would certainly be a natural fit for a new manufacturing hub of this nature. Combine that with our highly rated tax climate and wide range of logistics options, and the fact that we’re considered one of the best states for business (Pollina Corporate Top 10 Pro-Business States study), it becomes clear that Indiana should be listed as one of the top contenders for this new institute.

We’ll have a system where the businesses and the researchers are working on it at the same time, speeding up the discovery process, and moving us from discovery to application a lot faster.”

- President Obama

During his visit to Indiana, President Obama said, “What these hubs allow us to do, instead of having a slower process where a researcher figures something out and then writes a report on it, and then maybe five years later some manufacturer says – ‘I wonder if I can tinker around with that and use that in our manufacturing process’ – We’ll have a system

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

47

Being Productive

Optimistic Outlook Experts Report Positive 2015 Economic Forecast

By Nick Dmitrovich

H

ere we are at the start of a brand new calendar year, and many professionals around the state are curious about the potential that 2015 may bring. In an effort to provide a categorical outlook for the state’s economy this year, we’ve compiled data from all over the state to form a clear picture of what Indiana can expect in 2015.

Indiana CPA Society The Indiana CPA Society, a statewide association representing more than 8,000 CPAs throughout numerous industries, surveyed nearly 100 CPAs who serve in roles of either managing partners in CPA firms or chief financial officers in public or private companies. The results reflected quite a positive outlook for 2015.

Specific economic segments from which the CPAs were surveyed included: • The U.S. economy • Indiana’s economy • Their local economy (city or county) • Their industry • Their firm or company The Indiana CPA Society reported that the majority of the respondents were either “very optimistic” or “moderately optimistic” about economic growth in all five segments – particularly within the category of their own company.

Indiana’s economy also received a high degree of optimism with 60 percent. The CPA’s local economy came in at 52 percent optimistic, while the U.S. economy and the industry

48

that the CPA’s firm or company serves were both at 51 percent.

Level of pessimism among this surveyed was also relatively low in all segments. The CPA’s firm or company was just 15 percent, Indiana’s economy 18 percent, the CPA’s industry 20 percent, the U.S. economy 21 percent, and the CPA’s local economy 22 percent. Neutral responses regarding the five economies ranged from 16 percent to 29 percent, with the CPA’s industry being

to public accounting firms, the list included industries such as automotive, banking, construction, distribution, health care, insurance, landscape services, legal, manufacturing, not for profit, printing, public education, real estate, restaurant, technology and transportation.

IU Kelly School of Business The IU Kelly School of Business also published an positive report near the end of 2014,

Indiana’s Trusted Business Advisors Indiana’s Trusted BusinessGrowth Advisors Forecast Economic Forecast Economic Growth

Moderately or Very Optimistic Moderately or Very Optimistic

Nearly 100 Indiana CPAs (CPA firm managing partners and chief financial officers) were recently surveyed and asked about their prospects for economic growth over the next six to 12 months. The majority of respondents were optimistic about every economic segment polled.

51%

60%

52%

U.S. ECONOMY

INDIANA ECONOMY

LOCAL ECONOMY

51%

69%

GROWTH WITHIN GROWTH WITHIN INDUSTRY FIRM OR COMPANY

MODERATELY OPTIMISTIC

2%

5%

8%

7%

15%

49%

55%

46%

44%

54%

NEUTRAL

28%

22%

24%

29%

16%

MODERATELY PESSIMISTIC

19%

17%

17%

16%

13%

2%

1%

5%

4%

2%

VERY OPTIMISTIC

VERY PESSIMISTIC Source: Indiana CPA Society

the highest neutral response and the CPA’s firm or company the lowest.

Survey respondents represented 22 counties from throughout the state, and covered a cross section of Indiana’s businesses. In addition

in which they stated that economists are more optimistic than they have been in recent years, suggesting that 2015 could be the best year of economic recovery since the Great Recession.

“During the past year, the United States econ-

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omy has given clear signs that it is finally breaking out of the rut it had been stuck in during the first four years of the recovery,” said Bill Witte, Associate Professor Emeritus of Economics at IU. “Looking ahead, we expect the coming year to produce a continuation of these positive trends.”

The school stated that the big news for Indiana in 2015 is that the state is set to return to the same level of peak employment from last decade. IU expects Indiana to add 55,000 workers in 2015, and the state’s unemployment rate should fall to 5.25 percent by the end of the year.

Timothy Slaper, research director of the Indiana Business Research Center, said, “Regaining the lost ground took longer than it should. Initial employment gains weren’t brilliant; but by 2013, Indiana gained some 52,000 jobs in one year. Indiana hit that 52,000 mark by September of this year and is set to exceed our forecast for the year, with employment in the construction of buildings and transportation equipment manufacturing increasing by double digits.”

The Indiana Manufacturing Industry An annual survey sent out to Hoosier manufacturers reflected even further optimism

spreading throughout the state. Hundreds of Indiana manufacturers responded to the survey, representing a broad cross-section of the industry: from automotive and industrial equipment manufacturing, aerospace and high-tech and healthcare products. This survey was conducted by the Indiana University Kelley School of Business, Katz, Sapper & Miller, the Indiana Manufacturers Association and Conexus Indiana.

“... economists are more optimistic than they have been in recent years, suggesting that 2015 could be the best year of economic recovery since the Great Recession.”

Key findings include: • 47 percent of respondents rated their company’s financial performance as “healthy,” the same percentage that answered “challenged” in 2009 (only 17 percent answered “challenged” this year).

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

•

•

•

Overall, 77 percent answered either “stable” or “healthy” to describe their financial performance.

An almost identical number – 78 percent – were similarly upbeat about the overall economy, predicting either moderate or strong growth over the next two years.

This positive outlook translates into expansion plans: 20 percent of those surveyed hope to open a new manufacturing facility in Indiana over the next two years (more than double the response from last year).

This is truly some exciting news for our manufacturing-intensive state, although it doesn’t come without its challenges. Responders reported that tax, regulatory and energy costs could inhibit growth as developments arise.

Nevertheless, taken in total, the combined optimism across this spectrum of experts does present us with a clearly positive image for the new year. And that’s something we can all truly look forward to.

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Construction Feature Construction Companies Working on the New VU Student Center Architects / MEP Engineers Gibraltar Design Inc., Indianapolis, IN Civil Engineer Cash Waggner and Associates, Jasper, IN General Contractor CDI , Inc., Terre Haute, IN Site Contractor Wabash Utilities, Vincennes, IN Mechanical Contractor Peyronnin Construction Company Inc., Evansville, IN Electrical Contractor HEF Services, Terre Haute, IN

V

incennes University has taken some large steps recently to help reduce the stress of college life for its students with the construction of a brand new $4.35 million Student Center.

The new building boasts a wide array of amenities intended to give learners a break from the tension of academics, and to provide a space to socialize and relax.

Andrew Young, Director of Architectural Services and Facilities for Vincennes University, described a little bit about the purpose and need for this new Student Center, and explained the thought process behind its design.

“The new Student Center at Vincennes University is intended to be an active space for stu50

A Haven from Final Exams

New VU Student Center Aims to Enhance Student Life

By Nick Dmitrovich dents to gather, collaborate and socialize,” Young said. “The facility will be located in the heart of campus making it convenient for students and will have spaces of varying styles and types to draw students with different interests. With everything from bowling and gaming to lounges and study areas this will be a place the students can use as their own and for purposes that can change over time. The new student center will be a hub of social interaction for VU students that will encourage active participation and socialization in the VU student community.”

Speaking on the affect this new building will have on student living, Young said, “This facility will have a great impact on campus life.

It will provide a place for students to meet, col-

laborate and socialize in a variety of different ways. The facility is made to be flexible to meet student’s social needs in order to attract students of all interests and encourage them to interact.

It will give commuter students and resident student a common location to meet in order to build a stronger since of the VU community.

The design is one that promotes movement and activity for students, and the buildings direct connection to the Rec Center, Aquatic Center and Physical Education complex is also intended to promote this active climate.”

Vincennes Mayor Joe Yochum said, “I believe the new student center will make Vincennes University a more attractive destination.

It will bring together students from a wide vari-

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JANUARY/FEBRUARY 2015 | www.buildingindiana.com

51

Construction Feature

ety of backgrounds and enable them to get to know each other and enjoy the social aspects of attending college. An additional benefit is that the current Beckes Student Union will be redesigned to better serve VU and the community.”

While the Student Center will add 20,907 square feet, its impact will be much greater due to its location, according to Phil Rath, Vice President for Financial Services and Government Relations. “We are actually going to be pulling in an adjacent multi-purpose room and bowling alley renovation, so it will actually be about a 60,000 square-foot center. When you walk into the facility, it will look seamless.”

“This is an exciting day for VU. Of all of the hundreds of millions of dollars of projects we have done, this project may be one of the most exciting because it is about what we are going to do for our students, their social life, and interaction - providing a place also for commuter students where they can interact with our residential students,” Rath said.

“This new student center will be a place

for people to meet, enjoy each other’s company, and to learn from each other. Students The new two-story work hard and they need a place to relax,” facility will include: said Alain Moulari, President of the Student • A Technology Cafe Government Association.

Mark Michael, Jr., the new student mem• Study Areas ber of the Board of Trustees, said he was • Gaming Lounge proud to cast one of his first trustee votes to • Multi-function Spaces construct the facility.

• Outdoor Seating Areas

“Student life is important to being a good student. From my own personal experience, • Visual Display Boards I was not very engaged in high school. That • Integrated Technology is one of the reasons I appreciate VU. When I • An Indoor Fireplace came here I was able to build who I wanted • Gathering space for movies, to be. Having a college life was part of that,” events and social activities Michael said. A former president of the Stu• A variety of food and drinks dent Government Association, Michael said located in a concession area that student life at VU has “helped a lot in • Ties to the existing Bowling Alley the development of my leadership skills and • Ties to the PE complex, Aquatic self-confidence.”

Construction is expected to be complet Center and Rec Center ed on the new student center in late 2015 or early 2016.

In addition to the new Student Center, and the renovations being conducted on areas attached to the Center such as the bowling alley and multi-purpose area, Vincennes University’s administration has also approved numerous other construction projects around campus.

These include: • $3.8 million for a new Vincennes University Art Center • $4.25 million for renovating Morris Residence Hall • $3.1 million for renovating Vanderburgh Residence Hall • $2 million renovation project for the five-story section of the Technology Center • $1.6 million renovation project for the Welsh Administration Building • $900,000 project to relocate the Jerry Blemker Baseball Field to a site near the intersection of Old Terre Haute Road and Niblack Blvd.

52

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Construction Partners for the new Regenstrief Institute Headquarters Architectural Design Schmidt Associates General Contractor Shiel Sexton Surveying Weihe Engineers Testing Patriot Engineering Masonry Wilhelm Construction Company Structural Steel Steel Service Corporation Carpentry Circle B Construction Systems Architectural Woodwork DECO Associates

Building a Hub

Roofing Horning Roofing & Sheet Metal Co. Plumbing and HVAC Tank and Piping Contractors Electrical and Fire Alarm Huston Electric Ornamental Railings MAB and Associates Metal Wall Panels Shaffner Heaney Associates, Inc. Doors Frames and Hardware Laforce

New Regenstrief Institute Fosters Collaborations Among Medical Researchers

By Nick Dmitrovich

C

onstruction recently began on the Regenstrief Institute’s new headquarters in Indianapolis, ushering in a new chapter of the Hoosier Life Sciences industry as all facets of the institute will Acoustical Ceilings be consolidated under the same roof for the first time in the Performance Contracting Inc organization’s history . Company officials are hopeful that the new building will Elevators provide a whole new spectrum of cooperative medical research and developThyssen Krupp Elevator Inc ments that will impact the entire world’s health concerns.

Fire Protection Brown Sprinkler Corporation

Glass and Glazing Hoosier Glass

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

53

Construction Feature

Regenstrief is a 501(c)(3) medical research organization that is home to internationally recognized centers of excellence in biomedical and public health informatics, aging, health services and health systems research. It is closely associated with the Indiana University School of Medicine, Wishard/Eskenazi Health and the Richard L. Roudebush VA Medical Center, providing what is essentially a nerve center for medical research conducted in the state of Indiana.

The Institute is a leader in electronic health records, health care data integration, clinical decision support, medical informatics standards, health and quality of life improvement for older adults, health care delivery, and health outcomes.

Institute investigators are faculty members of the IU School of Medicine, other schools at IUPUI, or Purdue University. The majority of Regenstrief’s investigators hold appointments as IU School of Medicine faculty physicians practicing and teaching in the aforementioned hospitals. Considerable amounts of higher-level learning will be con-

54

Left to Right: Jack Snyder, Chairman, Regenstrief Foundation William Tierney, President and CEO, Regenstrief Institute Thane Peterson, Executive Operating Officer, Regenstrief Institute Jay Hess, Dean, Indiana University School of Medicine Len Betley, Life Director, Regenstrief Foundation Jack Shaw, President and Treasurer, Regenstrief Foundation

ducted in the new space, providing even further opportunities to advance Indiana’s status in Life Sciences.

The new $20 million headquarters will

be located at 10th Street and Riley Drive in Indianapolis, right in the heart of the city’s life sciences network. Within proximity to the new headquarters are the IU School of Medi-

www.buildingindiana.com | JANUARY/FEBRUARY 2015

cine research and teaching facilities, the Sidney and Lois Eskenazi Hospital, the Roudebush VA Medical Center, Riley Hospital for Children at IU Health and IU Health University Hospital.

The Regenstrief Foundation committed $5 million to the new building, and the IU School of Medicine contributed another $1.5 million.

The four-story, 80,000-square-foot building, was designed by Schmidt Associates of Indianapolis to meet the needs of the growing institute, and will enhance and empower the institute’s local, national and global research.

The new headquarters sits on land leased from IU, and will house more than 50 investigators, about 165 staff members and a growing number of affiliated scientists. Officials have stated that the expected timeframe for construction to complete will occur in December 2015.

“Our biggest need when considering this new facility was the consolidation of our three locations down to one center,” said Thane Peterson, Executive Operating Officer for the Regenstrief Institute. “This will be the first time in decades that we’ll have all of our Regenstrief researchers in one location. With the disciplines of Biomedics, Aging Research, and Health Services together under one roof, we’re planning on bringing about much more collaborative research.”

Features of the new building are designed to providing an inviting atmosphere with easy flow throughout the site for faculty and researchers, which is important, considering the institute is located in the middle of Indiana’s largest life sciences hub. Nearby organizations include Riley Children’s Hospital, Eskenazi Health Centers, IUPUI and IU School of Medicine, among others; constituting a major location for medical research and development in the state of Indiana.

During the groundbreaking ceremony for the new building, Regenstrief Institute President and CEO William M. Tierney, M.D., also the Associate Dean for Clinical Effectiveness Research at the IU School of Medicine, said, “The institute serves to draw faculty investigators of many backgrounds into multidisciplinary teams to solve difficult problems for U.S. health care. These collaborations will be much easier now that we will be together in one building within easy walking distance of our health care partner institutions.”

Though the predicted economic impact of

the new Regenstrief Institute is not yet readily quantifiable, Peterson did offer some insight into the global possibilities of the research being conducted at the site and the potential impact it could generate.

“Our new institute is a place where we will bring together multiple academic disciplines to serve the world’s future medical needs,” Peterson said. “There are global initiatives through our health informatics that are carried well beyond state and national borders, which could have a tremendous ripple effect. The translational outcomes produced by the insti-

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

tute will be a driving change in healthcare.”

With all of the developments expected to take place within the new Regenstrief headquarters, Indiana, and the rest of the world, have a lot to look forward to as new innovations are brought to life. Numerous aspects of the new facility are fortuitous, particularly its location among other prestigious medical institutions. Less than a year from now, groundbreaking research will be conducted just a stone’s throw away from hospitals where it can be implemented.

Thinking creatively and not traditionally is our passion.

Let the dynamic team at Diversified Marketing come up with your next gift or giveaway that will leave that lasting impression on your clients and prospects.

55

Well Being

Protecting Little Hoosiers New Tool Aims to Reduce Infant Mortality in Indiana

By Nick Dmitrovich

I

nfant mortality statistics are often used as a basis of comparison to help form a picture of the overall health of a nation, or state. By examining these numbers, relatively sound estimations can be drawn to reflect the quality of healthcare available in a given region, and the levels of education present among new parents.

Economically, the impact of infant mortalities is difficult to quantify. What is known however, is that the costs of treating pre-term and low birth-weight infants are significantly higher than treating typical births due to the increased levels of care required.

Last year, the Indianapolis Chamber of Commerce hosted a competition called the Hoosier Healthcare Innovation Challenge which aimed to utilize the resources present among Indiana technology startups to solve real-world challenges that companies and government face. At the same time, the Chamber worked to foster developments made by these startups and promote Indy’s technology business community. The end result was a new smartphone app designed to

56

provide education to new parents in an effort to reduce infant mortality throughout the state.

During the initial phases of the challenge, Dr. Bill VanNess, Indiana’s Commissioner of Health at the time, described the need for a smartphone app that the state could offer to pregnant moms and new families. The app he proposed would be designed to educate new parents about infant health, and would allow them to schedule appointments with healthcare providers.

The ultimate goal of this plan is to reduce Indiana’s infant mortality rate – which currently sits at 7.7 per thousand births, ranking the state as Number 47 in the nation. Any infant that passes away before their first birthday is considered an infant death that counts toward this figure.

The Indiana Department of Health has stated its “Healthy People Goal” is to reduce this figure to 6.0 per thousand by 2020.

The Indiana Department of Health partnered with Anthem Blue Cross & Blue Shield and The Raphael Health Center, in Indianapolis, to coordinate efforts among IT developers to for-

mulate and apply the best possible solution.

CreateIT Healthcare Solutions, an Indiana health-focused startup, was chosen as the winner of the Hoosier Healthcare Innovation Challenge.

Their plan was to launch the MyCare Communicator initiative which is now being implemented at The Raphael Health Center. MyCare Communicator gives healthcare providers the ability to deliver educational material and relevant messages to patients via email, text message or voicemail. The messages are tailored to the patient and include information on safe sleep, breast feeding, smoking cessation and much more. The program officially launched in autumn of 2014.

Key attributes of the My Care Communicator program include: • Real-time Translation Service: The application will provide all website, mobile, email, SMS, and automated voice calls in the patient’s native language. By providing information in the patients native language the patient is more likely to take the time to read and understand the message.

• Resource Announcements: Announcements about

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different resources and programs available to patients offered by government agencies, not or profits, or any other source can be provided to patients by any of the communication channels.

• Incentive Announcements: Notification of free or discounted items for the baby can be pushed to the patient via any of the communication channels.

• Baby Status Announcements: Helpful and

informative notices about the status of the baby’s growth can be customized and pushed out via any of the communication channels. Providing education material that the patient finds relative and informative will keep the patient engaged in the application.

• Social Engagement / Community Building: By providing a social network for the patients to engage a community of other mothers will help keep the patient interested in the application. Advice and information from other mothers could help encourage the patient to make difficult life changes and help prevent them from back sliding into bad habits.

• Social Media: Patients and their families may optionally post updates to social media networks (Facebook, Vine, etc.) showing the progress of their pregnancy.

• Gamification: The application can make certain tasks fun for the patient. Giving the patient a goal, encouraging them to achieve the goal by awarding points or badges, and rewarding the patient upon meeting the goal will help encourage them to stay on the program.

Source: CreateIT Healthcare Solutions

“Expecting parents are bombarded with information,” former State Health Commissioner William VanNess, M.D. said. “The MyCare Communicator tool allows pregnant women to ask questions and get answers from a healthcare provider in real time. The more knowledge expecting moms and dads have the better.”

“Infant mortality is a horrible problem that we really need to fix,” VanNess said. With this app, there’s going to be an opportunity, a huge opportunity, to communicate with patients away from the doctor’s office.”

Mary Black, RN, Director of Clinical Services at Raphael Health Center, said, “The MyCare Communicator tool will allow Raphael Health Center to engage our patients early in their care and aid in developing good report with their healthcare provider.”

The Indianapolis Chamber of Commerce reported that, “This software as a service (SaaS) is changing the way clinicians are communicating with their diverse patient population. With features such as appointment reminders, multilingual voice calling, and automated health surveys, health care clinics like Raphael will be better able to educate and support patients.”

One of the most important features of the

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

MyCare Communicator initiative is that parents do not need a smartphone to use the technology. The service can be provided through text messaging, email, or the mobile app. All communication channels receive the same benefits and responses and have been beneficial for clinics that serve patients of all types and income levels.

It’s impressive to witness prominent Hoosier healthcare organizations and economic development groups partnering with local tech talent to contribute to the greater good. The fact that this initiative helps solve real-world problems and helps grow the Hoosier technology companies is fantastic and should be recognized as an impressive achievement.

Location

Infant Deaths per 1,000 Live Births

Indiana

7.4

Ohio

7.7

Kentucky

6.8

Illinois

7.0

Michigan

7.7

District of Columbia

11.5 (highest in nation)

New Hampshire

4.8 (lowest in nation)

Source: Henry J. Kaiser Family Foundation

57

Logistics

The Real Work is Only Beginning Facing the National Transportation Crisis

By Nick Dmitrovich

Ports of Indiana CEO Rich Cooper opens the Indiana Logistics Summit.

Driving simulator at the Indiana Logistics Summit.

A

ccording to the experts at the Indiana Logistics Summit, the United States is on the verge of facing a major transportation and logistics crisis. Two key statistics really drove this point home: 1. There are approximately 50 tons of freight for every person in the U.S. 2. Projections of freight movement are expected to double over the next decade

If those figures seem rather unbelievable, consider where many of the items in your immediate surroundings originated from. You could be enjoying a cup of coffee that represents the culmination of an international effort – coffee beans from South America, a ceramic cup from Japan, sugar from India and cream from Illinois.

And that’s really just the tip of the iceberg. If we considered every item that we use throughout our lives we’d be astounded by the effort it took to bring them all together.

The United States Census Bureau has estimated that the population of the U.S. will increase by roughly 20 percent by the year 2040 – that’s millions of people. If we factor in the rest of the world in the same time frame, we could be look-

58

ing at shipping/transportation needs for more than 9 billion people by 2040, a situation that our current infrastructure just cannot support.

So how does Indiana and the rest of the

Mortimer Downey III, former U.S. Deputy Secretary of Transportation, presents at the Indiana Logistics Summit.

United States begin to work toward a solution?

Mortimer Downey III, Former U.S. Deputy of Transportation and current Senior Advisor with Parsons Brinckerhoff, shared some ideas with the decision-makers present at the Logistics Summit and explained the challenges that are presently facing the nation both on a federal and state level.

“Looking at everything happening in Washington now, we are not making the progress we should, but it’s not too late to be doing better,” Downey said.

“We need to better define what the federal role will be throughout the development of our transportation future; providing leadership and

ways to innovate. There has to be better ways to deliver and finance projects. Public/private partnerships are one way forward, and delivery through design-build contracts is another. A key part of what we have to do is find ways in our federal system to get rid of barriers to innovation.”

“The biggest constraint is clearly fiscal, both short-term and long-term. And also looking at how funds get distributed. Decisions about where to invest are political, it’s a balancing of interest. We need to find out how to do that, and we need to look into our institutions to try to make them work together better. We should also consider the difference between our public transportation investment and the private users who use them, because we need to make that relationship work,” Downey said.

“We’re in a climate of budget reduction and no new taxes,” he added. “Our existing revenues are very uncertain, because people are driving less and their vehicles are far more fuel efficient the downturn in highway trust fund revenues is apparent and real and it’s not going to turn around on its own.”

The National Freight Advisory Commission aims to bring many these concerns to the forefront of the national agenda. Forty-seven individuals from all across the freight transporta-

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JANUARY/FEBRUARY 2015 | www.buildingindiana.com

59

Logistics Hundreds of professionals gathered for the Indiana Logistics Summit.

tion industries are working together to on the commission to make recommendations to the Department of Transportation on what policies should be to make the system work better. The Department of Commerce is also involved, due to the President’s goal of doubling exports, in looking at how the U.S. can get the capacity to move what we’re planning to export. Increased investment by the private sector is also forecasted to be a major part of the future.

Indiana Lieutenant Governor Sue Ellspermann said, “As we enter into public-private partnerships, and consider other methods of innovation, we realize that we have tools here in Indiana that enable us to things better. Governor Pence recognizes that we need to look ahead at our logistics and transportation needs, bringing in as many perspectives as we can.”

Filling the employment rosters throughout

Indiana Lt. Governor Sue Ellspermann

the transportation and logistics industries will be another major hurdle to overcome. Many of today’s college students are gunning for professions that stand out as attractive in public perception, often overlooking the quality careers available in logistics.

“We’ve got to reacquaint the public with the fact that the transportation industry has steady, good-paying jobs,” Downey said. “We’ve got to get people into those jobs because we’ll need them. We can build all the bridges and roads we want, but if there’s no one to move goods then we’ll be in trouble.”

Though the task ahead may seem insurmountable, the collaborative efforts being made to address the problem are a promising first step toward a solution. Only one thing is truly certain: the future of the transportation and logistics industries will definitely bring about tremendous growth, and subsequent economic development will surely follow. The changes brought about by this point in history will lay the groundwork for how this growth will take place, and flourish.

60

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Workers Comp

Eyes on the Road Indiana Department of Labor is Targeting Distracted Driving

By Nick Dmitrovich

O

ver the last 22 years that the Indiana Department of Labor (IDOL) has implemented the Census of Fatal Occupational Injuries (CFOI), Indiana has seen a decline in worker fatalities from a high of 195 in 1994 to a record low of 115 in 2012. Recently, IDOL released its CFOI report for 2013, which detailed the 123 worker deaths that occurred last year. Although an increase over 2012’s statistics, 2013’s figure of 123 fatalities remains the third-lowest number of fatalities on record.

Though these numbers stand as an achievement in Hoosier workplace safety, the IDOL remains committed to further reducing workplace fatalities.

“While the historically low numbers of workplace injuries, illnesses and fatalities in Indiana are indeed an accomplishment, we are reminded that all Hoosier workers deserve a safe and healthy workplace, and the Indiana Department of Labor continues to push to achieve that goal. The record low number of workplace deaths means everyone, employers and employees alike, are doing a better job of protecting the Hoosier workforce. However, it also reminds us that we still have work to do to achieve workplace safety and health excellence,” said IDOL Commissioner Rick J. Ruble.

“The Indiana Department of Labor remains committed to promoting safe workplaces for all Hoosiers through outreach, training, safety consultations, recognition for exemplary businesses and enforcement,” Ruble said. “We strive to help Indiana employers improve their safety and health practices to adopt a culture of safety.”

One of the specific areas the Dept. of Labor is targeting is transportation related accidents, which have historically caused the highest number of worker fatalities across the nation and

in Indiana. 58 fatalities resulted from transportation-related incidents in 2013, accounting for nearly half of all fatalities that year. More than half of these workplace transportation-related deaths (32) were attributed to roadway incidents involving motorized vehicles.

As such, in 2014, Indiana began the “Drive Now, TXT L8R” safety campaign aimed at reducing texting while driving. Statistically, sending text messages or emails while driving is the most dangerous action that can be performed on the road because it encompasses all three of the primary driving distractions as identified by the IDOL: •

A cognitive distraction is taking your mind off the road.

•

A visual distraction is taking your eyes off the road.

•

And a manual distraction is taking your hands off the wheel.

Research on Distracted Driving has shown that: • 500,000 people are seriously injured from distracted driving each year.

• A texting driver is 23 times more likely to get into a crash than a non-texting driver.

• Five seconds is the average time your eyes are off the road when texting. At 55 mph, that’s like driving the length of an entire football field blindfolded.

• Using a phone while driving is like driving with a .08 blood alcohol level (drunk driving).

• You’re four times more likely to get in an accident when you talk on the phone while driving.

• You’re 23 times more likely to get in an accident when you text and drive.

Source: IDOL

Stephen L. Williams, of the Williams Law Firm in Terre Haute, IN, has delivered presentations to all ages of drivers about the dangers

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

of distracted driving. He said, “A recent survey shows that 49 percent of adult drivers text while they drive, compared to 39 percent of teenage drivers. So it is not just a teen problem.”

Reducing the number of distracted driving related accidents and deaths could have broad potential costs savings for Hoosier companies.

Consider this, in 2013, the average injured worker under any particular accident category typically missed at least one day of work. If Hoosier companies could retain those days of lost productivity, the savings could translate into thousands of dollars for the Indiana economy.

Worker fatalities cost companies even more.

IDOL Deputy Commissioner Tim Maley said, “A worker fatality is damaging for all involved. Generally, there’s an OSHA investigation. There could be fines and lawsuits. Worker morale can be negatively affected, and the company’s relationship with the local community can suffer.”

2013 Census of Fatal Occupational Injuries (CFOI) Data By State

State Indiana Illinois Michigan Ohio Kentucky

Number of Fatalities 123 172 133 148 82

Source: Bureau of Labor Statistics

Nevertheless, even though the state’s occupational safety record has certainly improved over the past 22 years, the Indiana Department of Labor’s mission has remained the same: to advance the safety, health and prosperity of Hoosiers in the workplace. As they continue to address the primary threats facing Hoosiers on the job, the trend of decreasing accidents and fatalities will hopefully continue to wind ever downward for future generations of workers.

61

Lifelong Learning

Building Stronger Leaders

NWIBRT’s Supervisory Training Program Works to Augment Construction Front-Runners

By Nick Dmitrovich

T

he Northwest Indiana Business

NWIBRT Executive Committee member and

awarded an AGC Supervisory Training Program

Roundtable (NWIBRT) is currently

Director of Outage Management & Systems

Certificate and are eligible for 10 credit hours in

offering a unique and affordable

Optimization with NIPSCO.

the Purdue Construction Management curricu-

way for construction companies to

Joe Coar, Vice President at Tonn and Blank

lum. The courses are $250 each, or $2,500 for the

boost the skillsets of their leadership personnel

Construction, has instructed several STP class-

entire program per student. The majority of the

with a customized Supervisor Training Program.

es and commented on the value of the pro-

cost is to cover training materials that the stu-

Course materials include ten 16--hour classes de-

gram for contractors.

dents keep when the course is complete.

veloped by the American General Contractors

Association (AGC) that cover many aspects of

experience to each class by instructors such as

able way to implement professional develop-

managing contracted work.

Richard Gardner, T.J. Ferrantella and many more;

ment options for their site managers, supervi-

For instruction, NWIBRT has experienced

it extremely valuable for everyone that attends

sors, or other construction management indi-

construction industry leaders certified to

each class,” Coar said. “For Tonn and Blank, and

viduals, without taking time away from work,

conduct the AGC program. The courses were

many other contractors, the STP classes provide

they need look no further than the Supervisory

originally offered to help contractors develop

a way to share and receive valuable information

Training Program,” said Andrea Pearman, Execu-

professional leadership capabilities and to

that represents the construction process in NWI

tive Director of NWIBRT.

train the people moving from line positions

and other regions. This includes new and exist-

to management positions. Other owners have

ing facilities, all types of maintenance work in

velop a strong leadership for your company is

recognized the value in developing these same

existing facilities, and much more.”

to take a proactive approach to growing your

capabilities in their personnel who manager

“Our supervision is much stronger and more

own experts from within,” Pearman said. “Stud-

contractor relationships.

dedicated as a result of the STP Program. As we

ies have shown that when companies are willing

“This series of courses would be a valu-

move forward this commitment gives us a valu-

to invest in their people, those individuals are in-

able tool to help develop our new Construc-

able tool as we continue to build relationships

creasingly more likely to remain with that com-

tion Managers, or anyone who routinely su-

with current and potential customers,” he added.

pany throughout their careers. The Supervisory

pervises contracted work,” said Donald Bull,

Training Program is an investment in people that

62

“The program brings years of mentoring

Individuals who complete the series are

“For companies who are seeking an afford-

“Sometimes the most effective way to de-

www.buildingindiana.com | JANUARY/FEBRUARY 2015

NWIBRT Supervisory Training Program:

supervisors recognize the roles and responsibilities of all contracted parties, to develop an understanding of how contract documents can be helpful to solve problems and resolve conflicts, and to develop positive relationships between all parties in the construction process.

Unit 1: Leadership and Motivation This course will teach the value of effective supervision of workers and improve the construction supervisor’s ability to lead and motivate others.

Unit 5: Planning and Scheduling This course will help construction supervisors understand the important role that planning and scheduling plays in the successful completion of a construction project.

can produce a tremendous return in the form of highly trained and preferred leaders for any company in the construction industry.”

Here’s a look at the courses offered through the

Unit 2: Oral and Written Communication Unit 2 presents a body of knowledge and skills that today’s construction supervisors need in order to be effective communicators on their job site.

Unit 3: Problem Solving and Decision Making This course will help construction supervisors identify problems and how they occur and learn techniques for solving them in the construction industry. Supervisors will learn how to use the decision making process and the important considerations to take into account.

Unit 4: Contract Documents and Construction Law This course will provide information about contract documents and construction law to help

Unit 6: Understanding and Managing Project Costs Unit 6 covers understanding how project estimates are compiled, how to compare actual project costs with those estimated, and how to control costs to meet the estimate.

roles and responsibilities of project managers and project supervisors.

Unit 9: Productivity Improvement This course details how productivity is measured, how the supervisor plays a major role in increasing jobsite productivity, and how a small increase in productivity can have a significant impact on the time and cost of a project.

Unit 10: General and Specialty Contractor Dynamics This course studies the role construction supervisors play in construction systems.

For further information on the NWIBRT Supervisor Training Program, visit www.nwibrt.org.

Unit 7: Accident Prevention and Loss Control This course covers the roles and responsibilities of a construction supervisor in accident prevention and loss control.

Unit 8: Managing the Project - The Supervisor’s Role This course is intended to assist supervisors in understanding the relationship between the

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

63

Economic Development

Numerous Major Foreign Investments Came to Indiana in 2014 • Valbruna Slater Stainless, Inc., an Italian stainless steel and nickel alloy manufacturer, is investing $30.5 million renovate and equip its Fort Wayne, IN, facilities, creating up to 45 new jobs by 2017. The company currently employs approximately 105 full-time Indiana associates.

• Baril Coatings USA, LLC, a Netherlands-based industrial coatings manufacturer, is investing $1 million to construct and equip a facility in Angola, IN, creating up to 16 new jobs by 2017.

• Skjodt-Barrett Foods, a Canadian specialty food manufacturer, is investing $43.9 million to expand its U.S. headquarters in Lebanon, IN, creating up to 97 new jobs by 2017. The Lebanon facility is Skjodt-Barrett’s only location outside of Canada.

• HALDRUP USA, a Germany-based field research equipment manufacturer, is investing $13 million to build a new 24,000 square-foot facility at the Ossian Industrial Park in Ossian, IN, creating up to 65 new jobs by 2017. Of all the countries in the world, Germany is Indiana’s third largest source of foreign investment and employment.

Currency Exchange Foreign Investment Boosts Indiana’s Economy

By Nick Dmitrovich

F

oreign companies continue to locate or expand their operations in Indiana year after year, leading to thousands of new Hoosier jobs and considerable gains in economic development for the state. Millions of foreign dollars come to Indiana in the form of facilities or infrastructure investments, new corporate partnerships, and new business ventures; all of which contribute significantly to the continued prosperity of the Hoosier economy.

A recent report published by the Indiana Business Research Center (“Capturing the Flag 2014”) by Timothy F. Slaper, Ph.D., Director of Economic Analysis, provides a clear picture of the impact that foreign investment brings to our state.

Using the latest historical data available from the Bureau of Economic Analysis, the report sheds some light on the often unrealized significance of this topic.

64

• Fukai Toyotetsu Indiana Corporation (FTIC), a Japan-based automotive component manufacturer, is investing $73.5 million to construct and equip a facility in Jamestown, IN, creating up to 195 new jobs by 2017.

• Seymour Tubing, Inc., a subsidiary of Japan-based Nippon Steel & Sumikin Pipe Co., Ltd. and manufacturer of automotive carbon and stainless steel tubing components, is investing $2.44 million to equip its facility in Seymour, IN, creating up to 22 new jobs by 2015.

• Two Japan-based automotive suppliers, Aisin Chemical Indiana and Aisin Drivetrain, announced major investments.

Together, the companies plan to invest $45.35 into their Jackson County operations and create more than 70 new jobs for Indiana in the coming years.

• Tate & Lyle (LSE: TATE), a British supplier of ingredients and solutions to the food and beverage industry, is investing more than $90 million in its Lafayette, Indiana operations over the next three years.

• MonoSol, LLC, a manufacturer of water soluble polymer films and subsidiary of Japan-based Kuraray Co., Ltd., is investing $65 million to build a new facility in Portage, IN, creating up to 150 new jobs by 2020.

• INTAT Precision, Inc., a supplier to automotive original equipment manufacturers and subsidiary of Japan-based Aisin Group Companies, is investing $22.7 million in its Rushville, IN, operations, creating up to 40 new jobs by 2016.

www.buildingindiana.com | JANUARY/FEBRUARY 2015

Some of the key findings of the “Capturing the Flag 2014” report noted: • Between 2011 and 2013, Indiana had 129 foreign direct investment announcements valued at more than $5 billion. These investments were projected to create nearly 13,700 jobs, or almost 4,600 new jobs on an annual basis.

• The automobile and components industries captured the largest share of Indiana’s expected FDI jobs with more than 7,000 new positions—about 52 percent of the total anticipated FDI jobs announced between 2011 and 2013. This averaged over 2,300 new jobs in manufacturing per year.

• Manufacturing remained the most popular business activity for foreign investment in Indiana. Over 76 percent of all announced new jobs were manufacturing related in the Hoosier state, whereas new FDI jobs in manufacturing averaged 41 percent nationally.

• Approximately 144,900 workers are employed by majority-owned U.S. affiliates (MOUSA) in Indiana.

• Indiana ranked 14th in the nation in MOUSA employment.

• Roughly six percent of Indiana private employment is in MOUSAs • In Indiana, 63.7 percent of MOUSA employment was in manufacturing. The 92,300 manufacturing jobs accounted for 3.8 percent of the state’s private employment.

• Since 2009, all Midwestern states made gains in MOUSA employment. Indiana added 9.7 percent more MOUSA employees in this three-year period.

• Nationally, nearly 5.6 million U.S. workers are employed by MOUSA companies.

MOUSA Manufacturing Employment as a Percentage of MOUSA Employment, 2011

HOOSIERSTRONG

“When international companies consider where to grow, Indiana is competing and winning time and time again for their jobs and investment,” said Victor Smith, Indiana Secretary of Commerce. “Indiana’s ability to attract and bolster investment reinforces the Hoosier State’s global reputation as a bedrock for business growth.”

Over the past year, Indiana has definitely proven its ability to draw new business and continued investment to the state. The following is just the tip of the iceberg; a recap of some of the major foreign investments made in Indiana over just the last few months, and a reflection of our pro-business state.

JANUARY/FEBRUARY 2015 | www.buildingindiana.com

Be an important part of the Largest Business-to-Business Magazine in Indiana.

Place your ad in Building Indiana Contact Andrea M. Pearman at 219.226.0300 or APearman@BuildingIndiana.com

65

The Last Word

Bring Back the

Gary Plan

By Larry Gutierrez, Associate Professor, Department Chair, Building Construction Management and Construction Technology, Ivy Tech Community College Northwest

W

hile public instruction is

delivering to create clearer understanding. Wil-

ness for the real working world is critical in

struggling across the state,

liam Wirt’s early 19th century development of a

filling the many baby boomers positions that

there seems to be a stigma

work-study-play plan focused on extending prac-

are ready to retire. Development of hands-on

in the air to hurry up and

tices and ideas of the business, arts curriculum

activities that relate to occupations and basic

run to support privately funded charter schools.

and vocational careers into schools. While some

daily life skills seem to be getting away from

Why? So we can fill politician’s pockets at the

of the past curriculum still exists in some of our

us. Our students are often weak in the most

sake of our state’s children? Why can’t our pub-

schools, it is fading fast. With all of the cuts in

critical skill categories, like putting a resume

lic schools be successful? I understand we have

together for the first time, being prepared for

some underperforming schools in the state that

an interview, knowing what questions to ask,

need some direction, but what about the public schools that are performing successfully on a consistent basis? There was a time where we focused education on the important things which helped make our country robust and equipped for the forecasted economy. Let’s bring back the Gary Plan, but focus on areas of growth and development based off of anticipated trends. Let’s focus again on a way we could efficiently and effectively create a better working educational platform for everyone to have a chance to be successful on some of the essential things in our

“We should become more focused on training opportunities where our students can be prepared and ready for the workforce right out of high school, two year college or an apprenticeship program”

world today. Let’s deal with it people. The times

and understanding why attendance and timeliness are so important.

As The Gary Plan seemed to find some

criticism nationally, I believe that some modifications could help reinforce the original plan to be successful today. We need to get more involved earlier in our elementary and middle schools to help promote the opportunities that are available, and focus their curriculum based on their prospected fields of study. Presenting opportunities while students are in high school seems to be too late. Many students struggle and become ineligible for unforeseen opportu-

have changed, so why aren’t we? Many of us get

nities that they may desire after the fact. If we

too comfortable in or own inclinations and for-

public education as well as a constricted lay-

know some of the things that interest many of

get the changing times.

out to follow (Core 40), they seem to be the

our children early enough, why can’t we struc-

As an educator, I have realized that from year

first programs to be eliminated. We should be-

ture curriculum to properly meet the needs of

to year if I don’t find a different way to say things,

come more focused on training opportunities

the students and eliminate the irrelevant topics

or even alter my delivery, it gets boring and dis-

where our students can be prepared and ready

that are covered? If we used a more applied ap-

mal. With technology and the many different

for the workforce right out of high school, two

proach in our attempts, I believe there will be

ways of learning, we need to take advantage of

year college or an apprenticeship program.

better comprehension with the students and an

adapting with the times and helping what we are

Not everyone is college material, and prepared-

overall completion rates for graduation.

For a comprehensive review of The Gary Plan, please visit our website at www.buildingindiana.com and check out the article in our news feed titled “The Gary Plan - A Review.”

66

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67

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KILLING

YOUR TIME? With your choice of over 5,000 airports, no security lines, and total privacy - all on your schedule - flying has never felt so good. Sit back and relax while our world class crew and full-service concierge takes you to your destination in style.

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CHAR TE R

B RO K E R AG E

Global Air Travel www.600charter.com 1-855-216-4359 • All flights are operated by FAA certificated direct air carriers.

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