JULY/AUGUST 2012
$6.95
34 | BOTTOM LINE Gasoline Ups and Downs 42 | COVER STORY Movin’ on 56 | WELL BEING Quit for Indiana
THE AMERICAN GROUP OF CONSTRUCTORS
FOUNDATION STONES Determination in our Commitment to Safety Pride in our Workmanship Trust in our Relationships Care in our Stewardship
“A sure foundation inspires confidence, encourages creative thinking, and enables us all to achieve wonderful things...”
Phone: 877-937-1508 | Fax: 219-937-1512 www.tagconstructors.com
Publisher’s Desk Put Your Phone Down, Slow Down and Chill Out!
219.226.0300 • 317.632.1410 www.buildingindiananews.com www.buildingindianablog.com
CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307
I’ll never admit to how many tickets I’ve received over the years, but it’s a lot. This summer in particular I’ve made a personal promise to slow down and drive better, especially when orange barrels are in sight. This summer our roads will be even more congested as money from the federal highway bill is put to use. So, take a breath—relax—and prepare to spend a little extra time between destinations. Doing so will not only keep your blood pressure at a more manageable level, it will save lives. Each year upwards of 600 construction workers die while working on roadside projects. Don’t add to these statistics by racing to work at the last minute or trying to shave an hour off of a road trip. The same applies to cell phones because, like speeding through a construction zone, texting behind the wheel in Indiana now is illegal. Thus far, few tickets are issued under the texting law because it is difficult to determine if a driver is legally punching in a phone number, using a GPS or texting. If you’re one of the unlucky ones, OMG, the fine can be as high as $500. State police now have plans to monitor drivers from planes to target distracted driving. While a police presence may be a deterrent, the only real route to safer roads is to have self discipline. No matter how pressing an issue might seem, it can wait until the next exit. If your life is so hectic that you need constant contact with family and co-workers, invest in a hands-free device and make the call. It’s a small price to pay to save a life.
Publisher/Editor Andrea M. Pearman andrea@buildingindiananews.com Director of Advertising Liza Hilliard liza@buildingindiananews.com Senior Writer Adam Madison adam@buildingindiananews.com Creative Director Jen Labriola jen@buildingindiananews.com Special Projects Coordinator Amber Price amber@buildingindiananews.com Director of Events Jo Sutton jo@buildingindiananews.com Accounting Lindsey Andershock la@buildingindiananews.com
Indianapolis Office Business Development Manager Lee Ann Richardson leeann@buildingindiananews.com 888.226.0330
Warsaw Office Business Development Manager Julie Monteith julie@buildingindiananews.com 888.226.0330
Kind Regards, Building Indiana News is published by Diversified Marketing Strategies
Andrea M. Pearman Publisher Visit us at 3dms.com Subscriptions: Standard rates: $25.95/year Single copy price: $6.95
2006 Communicator Awards’ Award of Distinction 2009 Communicator Awards’ Award of Excellence 2011 Communicator Awards’ Award of Distinction
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2007 Summit Creative Award 2010 Summit Creative Award
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2009 Davey Awards Silver Award
2006 Marcom Gold Award Winner 2007 Marcom Gold Award Winner 2008 Marcom Gold Award Winner 2010 Marcom Gold Award Winner
2008 Hermes Gold Award 2009 Hermes Gold Award 2010 Hermes Gold Award 2011 Hermes Gold Award
Andrea M. Pearman 2009 Small Business Journalist of the Year
2006, 2008, 2012 APEX Award for Publication Excellence
2011 Communicator Award for Print & Design Distinction
2009 Silver Award 2010 Gold Award 2009 Nichee Magazine Award
Copyright ©2011 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at andrea@buildingindiananews.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.
www.buildingindiananews.com
STATE of the
ART in Spine Care
Offering the full spectrum of Spine Care. Dr. Nitin Khanna and Dr. Dwight Tyndall, Board Certified and Fellowship trained physicians, are leaders in performing Minimally Invasive Surgery. Working as a team, they continue to provide excellent patient outcomes. • Comprehensive Diagnostic Services • Conservative Treatment Approaches • Latest Minimally Invasive Options • Dedicated Workers’ Compensation Coordinator
730 45th St. • Munster, IN 46321 Phone: (219) 924-3300 Fax (219) 934-2658 www.SpineCareSpecialists.com
Contents J u ly / A u g u s t
2012
EVERY I S S U E
04 Publisher’s Desk 08 Contributors 09 Business Buzz 22 People News E X P ERT A D VICE
D E P ARTMENT S
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28 State of the Industry
30
Distribution Coasting Along Construction
Dredging up Capacity LOGISTICS
54 Construction
40
Small Business Spotlight SBA Provision Makes a Strike
Wrapping up Energy Savings
56
58
Well Being Quit for Indiana Lifelong Learning Workforce Logistics
62
Welcome Center
Marquette Park
42
66
cover story Movin’ on
44
Facts & Stats Logistics Statistics
46 6
North Coast
On the Right Track
Marketing Specialties
PHOTO FEATURE
46 Construction
52
Being Productive Tips for Event Planning
24 40
Made in Indiana
36
FEAT U RE S
Mass Production
Indiana Harbor
Safety Management Tranquil Construction
48
Demonstrating Expert Ability
64
Gasoline Ups and Downs
38
28
Bottom Line
Economic development Planning for fun
70
the last word Links to the Mainline
www.buildingindiananews.com
For the finest in heart care,
follow your heart. When you need heart care, how do you find the right provider? Throughout the region, physicians and patients alike turn to the leading expert in cardiac services, Franciscan Alliance. Every day, they trust us for the miracles of modern medicine. From minimally invasive procedures to open heart surgeries, they know Franciscan Alliance brings the best of technology and innovative advances. They put their confidence in our nationally recognized, board-certified surgeons who, last year alone, performed over 2,400 open heart surgeries as well as heart transplants and other life-saving surgeries. But people look to us for more than clinical expertise. We answer in the example of our namesake, serving with care and compassion that are second to none.
The right provider is right here, in your community. Simply follow your heart. We’ll take care of the rest.
Need a physician? Call 800.931.3322 Visit us at FranciscanAlliance.org/heart
inspiring health
Contributors Bill Lucaitis Bill Lucaitis is president and owner of Tranco Industrial Services, a rail construction and maintenance company performing work throughout the Midwest. Bill has 30 years experience in the rail industry with Tranco and his previous company Midwest Construction Services. He is a graduate of Indiana University and is active in many trade organizations. Dewey Pearman Dewey Pearman serves as execu-
Gary Lewis Gary Lewis is senior vice president and chief commercial officer of RailAmerica, which owns and operates short-line and regional freight railroads in North America. Before joining the company in 2009, Lewis was director of sales and marketing at Kinder Morgan Terminals. Lewis also served in various commercial leadership roles during 18 years at CSX Transportation. He has a bachelor’s from the University of Maryland, a Juris Doctor degree from the University of Miami’s School of Law and a master’s in business administration from Loyola College. Deann Patena Deann Patena is director of sales and marketing for the Star Plaza Theater in Merrillville. She is responsible for developing strategic group and leisure sales plans. Patena is a former director of sales at the Blue Chip Casino Hotel & Spa in Michigan City. She earned her bachelor’s in journalism with an emphasis in public relations from Ball State University and is a South Bend native.
tive director for the Construction Advancement Foundation. He has a master’s in economics from Indiana State University. The foundation promotes the union construction industry of northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce
RYAN GRAFT Ryan Graft, CHST, CHSP, joined Safety Management Group in April 1999 as a safety advisor and currently serves as the account manager for the Health Services Group. Ryan received his Bachelor’s in occupational safety and health from Indiana University in 1998, and achieved the Construction Health and Safety Technician Certification in February 2005, and the Healthcare Safety Professional Certificate in 2007. During his 12 years of service, Ryan has assisted his clients with development of a contractor safety management process that incorporates joint commission protocol and OSHA standards into each construction and maintenance project throughout multiple locations in Indiana.
development.
2011 NWIBRT
Recognition Award Recipient
Angie Tsikouris Angie Tsikouris is director of marketing at Spine Care Specialists in Munster. Spine Care Specialists is a practice dedicated solely to the treatment of the spine. It emphasizes effective and comprehensive spine care. Tsikouris is a Purdue University West Lafayette graduate. She is a CASA volunteer and a member of the Munster Chamber of Commerce. Ryan Riverside Ryan Riverside is the director of public relations at Diversified Marketing Strategies. He has worked in all aspects of the marketing industry, working in the sales department of the Northwest Indiana The Times for five years as well as heading up marketing and sales for The Chronicle for another two years. He concentrates his skills on increasing brand awareness and helping bring in residual sales instead of direct sales. He holds a bachelor’s in writing from Purdue University. David Wellman David Wellman is communications manager of the Northwest Indiana Regional Development Authority. A 20-year veteran of business-to-business publishing, Wellman was previously senior writer on Building Indiana magazine, Indiana’s leading b2b publication.
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BUSINESS BUZZ
G
et ready to rub elbows with more than 500 of northern Indiana’s heavy hitters, build new connections, have a few drinks and support a good cause at the same time. On Sept. 13, Diversified Marketing Strategies will honor northern Indiana’s “Power Players” at the third annual Big Schmooze, which will be from 5 to 8 p.m. at the Avalon Manor in Merrillville. This major networking event offers an opportunity for local go-getters to find team support for their careers and businesses. This event, however, is about more than expanding LinkedIn accounts, as it provides the annual kickoff for the Lake and Porter county divisions of the United Way’s goal for 2012. This year their combined goal is to raise $6.55 million. “The funds that are generated from the Big Schmooze are invested back into our respective communities to help children and youth and families in the areas of education, financial, stability and health,” says Lake County United Way spokesman Bob Scott. “The Big Schmooze is a great venue for us to network and reach out to local region movers and shakers, and it really provides an excellent program to let everyone know about the upcoming fall campaign.” These are precisely the people www.buildingindiananews.com
Event:
responsible for making the United The Big Schmooze Power Way a success every Players of Northern Indiana year, Scott says. They are the CEOs September 13, 2012 of banks, hospitals and industries that can afford to donate Avalon Manor, Merrillville, IN on both personal and corporate www.thebigschmooze.com levels. This year’s Power Players will com/powerplayers. be no exception. php. There is no fee to nominate They include business leaders or to be recognized in the magazine. throughout northern Indiana. They “The Big Schmooze provides credit include representatives that lead in where credit is due by honoring our local several categories including architecture, leaders, but it also connects these big engineering and construction services; players with like-minded business men banking; business and accounting services; and women to make northern Indiana business and economic development; even more successful,” says DMS President consumer products and services; and CEO Andrea Pearman. “However, it’s healthcare; insurance; legal services; also an opportunity to step away from the transportation and logistics; tourism; grind to celebrate our success and support utilities; and unions. a good cause at the same time.” Individuals that excel in these areas will Tickets to the event are available at be recognized in the 2012 Power Players www.thebigschmooze.com or by calling magazine, which launches the invites for Jo Sutton at 219.226.0300. Individual the event. tickets are $95; tables of ten are $900. It honors the movers and the shakers For sponsorship details and advertising in the seven northern counties that have information in Building Indiana, contact helped shape Indiana. Nominations can be Liza Hilliard at Liza@3dms.com. made through www.buildingindiananews.
Date:
Location:
For Tickets or More Info:
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Indiana Port Takes More Shipments
Special DMS Calendar Offer Diversified Marketing Strategies (DMS) and Building Indiana News (BIN) are offering an introductory $25 rate to advertise individual events. The deal secures placement in the calendar ad in the print and online issue of BIN, as well DMS’ biweekly ‘event ticker’ e-mail blasts and flyers circulating the business community. Placement is also guaranteed on the event calendar at www. buildingindiananews.com, www.nwibusinessevents.com, and www.3dms.com. Annual rates will increase to $100 on Jan. 1, 2013. Contact Diversified Marketing Strategies at 219.226.0300 or register your event at www.nwibusinessevents.com today.
NWI Crane Companies Merge Konecranes, which manufactures and services overhead cranes and lifting equipment, has acquired Ameratronic Industries of Portage. The northwest Indiana firm has provided crane and hoist services to process duty customers in the area for 17 years. The owners will be retiring. The business operations and five employees will be incorporated into Konecranes’ branch located in Crown Point.
The Port of Indiana-Burns Harbor reported an increase in shipments for the first five months of this year, compared to 2011. Officials say there has been a spike in several steel products, as well as industrial and agricultural cargoes. Shipments of fertilizer, corn and soybeans are 10 times greater than this point last year. The port also handled its first shipment of wind components in May and has seen major increases in several steel products, as well as industrial and agricultural cargoes resulting in a 6 percent increase in 2012 shipments through the first five months. The increases are mostly attributed to steel coils and scrap metal shipments, as well as limestone and magnesite. Port Director Anthony Kuk says there also are additional outbound shipments of slag material for Phoenix Services, which is one of three companies opening new facilities at the port in 2012.
Hammond Cleans Marsh The recent completion of a $52 million project to rid Roxana Marsh of contaminated sediment in Hammond will speed the recovery of Indiana’s Grand Calumet River. More than 575,000 cubic yards of sediment contaminated with PCBs and PAHs (polychlorinated biphenyls and polycyclic aromatic
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BUSINESS BUZZ
Northwest
Associated Pediatricians, LLC Midwest Fertility Center Valentin Tureanu, M.D.
Centers for Pain Control Chetan Puranik, M.D. Daniel Cha, M.D.
Urology Associates of NWI, PC Dynamic Rehabilitation Services
Porter Glendale Laboratory Bionic Prosthetics & Orthotics Group Medical Specialists Centers of Indiana Valparaiso Internal Medicine Surya Nallari, M.D.,
Porter Physician Group James Taylor, M.D., Derek Gasper, D.O.
Psychiatry
Robert Reff, M.D., FAPA
John Stutesman, PsyD Clinical Psychologist
Rick Lawson, LMHC, LCSW Breakthrough Podiatry
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hydrocarbons), heavy metals and pesticides were removed or isolated from the marsh and the river. Fish consumption advisories, loss of habitat and other environmental problems in the Grand Calumet have largely been caused by contaminated sediment.
BUSINESS BUZZ
The federal government contributed 65 percent or $33.8 million to this GLRI Legacy Act project. Indiana used $18.2 million from its Natural Resources Damage Assessment Fund for the required 35 percent match.
Online Education Available for Students The Indiana Cyber Charter School, a new statewide online learning program for K-12 students based in Schererville is now enrolling for the 2012-2013 school year. Indiana Cyber is a public school option open to all Indiana students in kindergarten through 12th grade. Indiana Cyber features the online curriculum, Lincoln Interactive, which is used by thousands of students worldwide. It offers more than 250 courses, allowing students to personalize their education based on their wants and needs. Lincoln Interactive utilizes interactive videos, 3-D graphics, language labs and flash animation as educational tools. Lincoln Interactive offers students several unique course options including the STEM-focused Cutting Edge Science courses, world languages and elective courses, and the online elementary curriculum Little Lincoln. High school students may earn college credit through Trine University’s Middle College program. This dual-enrollment program allows students to take courses that count for both high school and college credit.
•
Kuraray Acquires Monosol Kuraray Co. has agreed to acquire MonoSol in Merrillville, a manufacturer of water-soluble polyvinyl alcohol (PVA) films, as Kuraray expands its vinyl acetate chemical chain business. This acquisition will allow Kuraray to offer a wider range of PVA for industrial applications. Kuraray currently supplies “POVAL” PVA film for optical-uses including a polarizing film, which is an essential component of liquid crystal displays. Terms of the transaction were not disclosed.
Hammond Opens Pedestrian Bridge Runners and bicyclists will be cheering this summer as they zip over Indianapolis Boulevard in Hammond. The George Lake Pedestrian Bridge forms a critical link in the Marquette Plan’s vision for a trail system, running the length of the Lake Michigan shoreline in northwest Indiana and connecting to the waterfront trails in Chicago. The $4 million project was paid for with Regional Development Authority grant money received by the Hammond Port Authority, as part of the Hammond Lakes RDA project.
10769 BROADWAY #333 CROWN POINT, IN 46307
P 219-662-2380 • F 219-662-2354 • w w w. a c m s g r o u p. c o m
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Furniture Manufacturing Headed to Knox
BUSINESS BUZZ
The Starke County Economic Development Foundation has announced that Selected Furniture will provide 25 new jobs when it moves into the former Rockwell Building in Knox. Charles Weaver, executive director of the foundation, says the firm will invest more than $one million when it purchases, renovates and equips the 201,000-square-foot industrial facility that once produced windows and doors. The Federal Group was the most recent manufacturer in the facility. INDUSTRIES SERVED Refinery & Petroleum Alternative Fuel Plant Maintenance Chemical Steel Power Air & Gas
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We have the expertise, experience and resources to perform: • Process and power piping fabrication and erection • Mechanical and process equipment rigging, erection and alignment • Instrumentation • Boiler erection and repair • Civil, Structural & General Construction • Complete plant maintenance services • Construction management and general contracting • Full service fab shop as well as value engineering • Unparalleled safety record
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Safety-Kleen Launching Blending Plant Safety-Kleen, an Indiana-based oil re-refiner, recently launched an East Chicago blending plant. The $15 million facility is expected to save more than $5 million a year by allowing Safety-Kleen to blend its own oil products at the plant. It includes the ability to blend passenger-car, and heavy duty diesel engine oils, says Dave Sprinkle, executive vice president of oil re-refining. The initial capacity of the plant will be 20 million gallons. Scott Miller, director of oil re-refining, helped manage the project and will oversee the new site. Amex Nooter, LLC, was the general contractor overseeing a $5 million portion of the project. It will no longer be necessary to send truckloads of base oil to third-parties, which will reduce the loading dock workload and transportation costs. The decreased handling also minimizes contamination risks and improves quality control. The facility also will be automated and computer controlled. For daily news from Nortwest Indiana and around the state, visit our blg at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.
Northeast Energy Drink Stimulates Wabash Growth Living Essentials, the company responsible for 5-Hour Energy, is expanding in Wabash. The expansion will total one million square feet in two or three phases. Phase I will be 500,000 square feet and subsequent phases will total an additional 500,000 square feet. The total new capital investment for Phase I will be at least $18 million, according to President and CEO of the Economic Development Group of Wabash County Bill Konyha. Additional investment in subsequent phases will be a minimum of $12 million, not including manufacturing equipment. It is estimated that 60 jobs will be created as a result of phase I. Konyha says it will contribute to a new payroll of more than $1.6 million.
amexnooter.com 12
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University Transforms Depot
Local suppliers include Heavenly Breads and Sweets in Angola, IQ Meats in Butler, Michigan Turkey Producers in Wyoming, Mich., Fishers Packing in Portland, Moody Meats in Ladoga and Guggisburg Deutch Kase Haus in Middlebury. The depot is the second building the university has acquired with the goal of restoration. In recent years, the university began renovating the former Angola Christian Church and is transforming it into the T. Furth Center for Performing Arts, which will serve as Trine’s new home for music and theatre and for the benefit of the students and community.
Northeast Indiana Introduces Data Tool The Northeast Indiana Regional Partnership and the Community Research Institute released a new data tool called the Northeast Indiana Regional Dashboard. The purpose of the dashboard, a project of the Vision 2020 initiative, is to provide a common set of metrics for organizations, businesses and government entities to shape strategies and public policy.
The dashboard tracks more than 40 variables that have a strong correlation to the top indicators. In order to maintain consistency and alignment with the ongoing work of Vision 2020, the variables were segmented into “pillar indices” to correspond with the Five Pillars of Vision 2020: 21st Century Talent, Competitive Business Climate, Entrepreneurship, Infrastructure and Quality of Life.
Music Equipment Company Expands Sweetwater Sound, a music technology and instrument retailer, plans to expand its headquarters in Fort Wayne, creating up to 316 jobs by 2016. Born as a recording studio in Chuck Surack’s Fort Wayne home, Sweetwater Sound has since grown to be one of the nation’s largest distributors of sound and musical equipment. The - continued on the next page
WORK WITH A BANK THAT KNOWS BUSINESS We run a business too. So we know what it takes to help you grow, to add new locations and to satisfy our customers. Take Ed and Dawn McIver, for instance; owners of MicroWorks, Inc. and our customers since 2008. With our help, the McIvers were able to expand their business from home to a free-standing microbiological consulting, testing and training facility in Crown Point. Working with our customers to satisfy their unique business needs is what You First Banking at Peoples is all about. It’s business that is built on relationships, not just transactions. And we’re proud of our track record. This year, and for the past six years, Peoples Bank has been named a top 200 performing community bank in America. Hear more about our full range of business banking services by contacting one of our commercial bankers today at 219-853-7500, or visit us at ibankpeoples.com.
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BUSINESS BUZZ
Trine University has transformed the former Lakeshore Depot in Angola into a restaurant. “The Depot Grill” features regional, sustainable fare such as burgers made from all-natural, locally ground beef and hand-scooped ice cream from the Hudsonville Creamery in Holland, Mich.
The dashboard objectively reveals the strengths and weaknesses of northeast Indiana’s economic performance, says John Sampson, president and CEO of the Northeast Indiana Regional Partnership. The dashboard, which was developed by CRI, compares northeast Indiana’s economic performance with 14 other regions on five broad economic growth measures: change in employment, change in per capita income, change in gross metro product, change in productivity, and change in young adult population (ages 25-44).
BUSINESS BUZZ
company plans to invest $23.5 million to expand and equip its current facility by 110,000 square feet to house its warehouse operations and sales and marketing departments. Sweetwater Sound, which reported growth in sales by more than 20 percent last year, expanded its 66-acre Fort Wayne campus to include a 40,000-square-foot distribution center, recording studios and technical training center in 2006. It also operates a 250-seat performance theater at its campus for training and special events that is made available to local non-profits at no charge. Sweetwater Sound’s Fort Wayne campus is home to more than 400 full-time employees, and the company has begun hiring additional associates. The new positions will include sales, marketing, administrative and distribution.
New Manufacturer Locates in Elkhart Scientific Developments Inc., a manufacturer of traffic safety products, has plans to locate a new facility in Elkhart, creating up to 11 new jobs by 2015. The company, which produces equipment from postconsumer recycled tires, will invest $1.55 million to purchase a 50,000 square-foot facility. As part of the project, the company will purchase and install hydraulic presses for its facility slated to begin operation in early 2013.
SDI, which currently has 18 employees in Eugene, plans to hire new maintenance and press operators early next year. The Indiana Economic Development Corp. offered the company up to $45,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is ineligible to claim incentives. The city of Elkhart approved additional property tax abatement.
Auto Group Expands in Columbia City Glenbrook Automotive Group announced plans to renovate its City Chevrolet facility and construct a new City Ford facility, which will retain 20 jobs and create up to 10 new jobs. The company will invest nearly $4 million to expand the Chevrolet dealership and construct an adjacent 25,000-squarefoot building to house the Ford dealership near the intersection of U.S. Highway 30 and Business 30 in Whitley County. The new facilities will be operational in the fall. The Columbia City Board of Works and the Whitley County Redevelopment Commission are working with Glenbrook Automotive Group to support the extension of public infrastructure to support the City Ford and City Chevrolet projects at the recommendation of the Whitley County EDC. In addition to the City Ford and City Chevrolet properties, the project area also includes
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spools and reels, announced plans to expand its headquarters in Garrett, creating up to 15 new jobs by 2014.
Meijer Locates Operations Facility in Allen County
The expansion is a $2.9 million investment to construct and equip a 45,000 square-foot addition to its current facility. Construction of the new addition has already begun with the expanded facility and should be operational at the end of the year. Mossberg, which currently has 50 full-time employees in Indiana, has begun hiring new engineering and production associates.
Meijer Stores, a retail supermarket chain, plans to locate a new facility in Fort Wayne, creating up to 36 new jobs by 2014. The company, which retails grocery, pharmacy and fashion products, now employs more than 7,500 employees in 28 Indiana stores. There also are plans to hire additional warehouse, logistics and information technology associates to coincide with the facility’s opening next year.
BUSINESS BUZZ
approximately 65 acres of commercially zoned property for future development.
The project comes after securing up to $60,000 in conditional tax credits and up to $19,000 in training grants through The Indiana Economic Development Corp. The city of Garrett approved additional property tax abatement at the request of the DeKalb County Economic Development Partnership.
Parts Manufacturer Expands in Northeast Indiana BRC Rubber & Plastics, a manufacturer of molded components for the automotive industry, announced plans to expand its operations in northeast Indiana, creating up to 51 new jobs by 2013. The Churubusco-based company, which specializes in the production of rubber-to-metal bonded parts, recently acquired the equipment and intellectual property assets of Quebec-based Veyance Technologies Canada. As part of the acquisition, the company will consolidate Veyance’s current business to its three northeast Indiana manufacturing facilities in Hartford City, Montpelier and Ligonier. BRC already has begun hiring additional factory, operating and production associates. The company plans to hire 40 associates at its Hartford City facility including an additional 11 associates divided among its facilities in Montpelier and Ligonier. The Indiana Economic Development Corp. offered BRC Rubber & Plastics up to $63,250 in training grants based on the company’s job creation plans. The city of Hartford City approved additional property tax abatement at the request of the Blackford County Economic Development Corp.
Facing the industry’s toughest challenges head-on. You want a contractor who can keep you a step ahead. Graycor Industrial brings over eight decades of experience to the power, metals and process markets. We deliver expertise for your toughest challenges, self-performance capabilities for your most sophisticated jobs, and planning for the long term. Think beyond what you need today. Start building something more, call 1-800-455-0440.
Mossberg Industries Expands in Garrett Mossberg Industries, a subsidiary of Khorporate Holdings that manufactures plastic
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Metals | Power | Process
graycor.com 15
LINC to Expand at Fort Wayne Airport Logistics Insight Corp. is expanding operations at the Fort Wayne International Airport Air Cargo Hub, enabling the company to invest more than $1 million in assets.
BUSINESS BUZZ
LINC currently occupies 105,890 square feet of the cargo sort facility at the airport. Under the new lease agreement, LINC will lease an additional 59,480 square feet, for a total of 165,370 square feet of operations space. LINC’s investment will include improvements to internal warehouse infrastructure, information technology upgrades, and the purchasing of mobile equipment and tractor trailer support. Approximately 50 new jobs will be added to the facility over the next 12 months at a pay rate of $10-$14 an hour, dependent on skill type. The Airport Authority also will invest more than $1 million in building modifications. These renovations include the installation of 10 dock doors, the removal of six embedded roller floors and the construction of a 10-foot demising wall. For daily news from Northeast Indiana and around the state, visit our blg at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.
Central Lily Funds Red Skeleton Museum The development of exhibits for the planned Red Skeleton Museum and Education Center at Vincennes University Received a $1 million grant from Lily Endowment. The museum is scheduled to open in 2013 and us ib schedule to meet its $4.1 million campaign goal and celebrate the 100th anniversary year of Red Skelton’s birth in Vincennes. The museum will be part of the major music and performing arts facility on the VU campus dedicated in memory of Red Skelton. The Red Skelton Performing Arts Center, which opened in 2006, includes an 800-seat proscenium theater that features top national performing artists. The museum is an addition to the Performing Arts Center building and represents a partnership between VU and the Red Skelton Museum Foundation.
Manufacturer Moves Office to Kokomo Reishauer Corp., the City of Kokomo and the Greater Kokomo Economic Development Alliance say the international equipment manufacturer will locate an office in Kokomo. The commitment is a direct result of the company’s contract with Chrysler Group to provide new equipment for transmission manufacturing at their Kokomo facilities. Reishauer plans to create ten new jobs by 2013 and expand operations into a warehousing facility. 16
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Reishauer is providing equipment to Chrysler and has been working with them on the transition of the equipment in the current plants. The company will open a temporary office at Inventrek Technology Park while they search for a permanent location.
The Indiana Department of Education received a $4 million Statewide Longitudinal Data System grant from the Institute of Education Services. The grant will enable the department to advance its comprehensive P-20 data system to focus on driving results for students around college and career readiness. Work began on the P-20 system using funds from a 2007 SLDS grant. The department says a partnership with the Department of Workforce Development and the Indiana Commission for Higher Education will help produce a more comprehensive view of student achievement. Indiana’s new system will allow insight into trends and patterns only observable when data from each part of the education continuum are seamlessly connected. By linking K-12, higher education and workforce data, it will be possible to view educational progress at any point along the continuum. This system will enable decision-making fueled by data and framed by evidence with the ultimate goal of producing greater college and career outcomes for all Hoosier students. By creating a better understanding of changing workforce needs, Indiana can ensure K-12 and higher education institutions have aligned
Indy Benefits Companies Merge Indianapolis-based firm Gregory & Appel Insurance has merged with Hauser & Associates, a voluntary benefits specialist firm also located in Indianapolis.
BUSINESS BUZZ
State Education Receives Grant
expectations to provide students necessary skills to be successful and ultimately grow the state’s economy.
With the new partnership, five new employees and 150 clients will join Gregory & Appel, making it the largest worksite benefits department in Indiana and one of the largest in the Midwest. Voluntary benefits consultant Michael Kuhn will join the firm’s benefits sales division. Three other Hauser & Associates employees will join Gregory & Appel: Paul Finnell, Rhonda Whitaker and Valerie Finnell. Voluntary benefit offerings, such as permanent life, short and long term disability, critical illness and accident plans, are becoming more commonly requested in the marketplace as important supplements to, or in some cases, the only form of benefits available for employees.
Water Company Acquires new System Indiana American Water has acquired a water system from the Town of New Whiteland in central Indiana. The purchase adds - continued on next page
MECHANICAL SERVICES For more than five decades, Correct Construction, Inc. has been delivering excellence to commercial and industrial clients across the Midwest.
(219) 763-1177
correctconstruction.com
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BUSINESS BUZZ
approximately 2,100 customers to the company’s customer base and serves a population of nearly 5,700 residents.
$300 million over the next 10 years at its headquarters on the northeast side of Indianapolis.
The acquisition of the New Whiteland system for approximately $4.2 million was approved by the Indiana Utility Regulatory Commission in March, 2012, and finalized by Indiana American Water and New Whiteland on June 27. The New Whiteland system will be incorporated into the company’s Johnson County District, which serves approximately 44,000 residents.
The capital investments will include the refurbishing of existing buildings, purchasing of manufacturing equipment for new diabetes test strips and upgrading of information technology. Upgrades will begin this fall with the construction of a new commercial education center that will serve up to 1,500 customers. It is estimated to create an additional 100 jobs by 2017.
Haynes International Expands Haynes International, which produces nickel- and cobaltbased alloys, will invest $23.5 million to expand its flat product capacity at its Kokomo manufacturing facility. Haynes, which currently has 780 full-time employees in Indiana, plans to purchase new machinery and equipment this August. The expansion is expected to create 40 jobs. The company received up to $550,000 in conditional tax credits and up to $100,000 in training grants through the Indiana Economic Development Corp. Kokomo is considering additional property tax abatement.
Roche Diagnostics Corp. Invests Big Roche Diagnostics Corp., in-vitro diagnostics, will invest
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The Indiana Economic Development Corp. offered Roche Diagnostics Operations up to $2 million in conditional tax credits and up to $300,000 in training grants based on the company’s job creation plans.
Indy Bike Group Takes Grant Indycog, the bicycle advocacy group serving Indianapolis, was one of eight organizations nationally to be awarded a $10,000 grant from Bikes Belong. Indycog is partnering with the Local Initiatives Support Corp. to help five underserved urban neighborhoods develop bicycle infrastructure plans that improve bike routes and add infrastructure to serve key destinations. This bicycle infrastructure will help improve connectivity in and through the neighborhood. The City of Indianapolis has committed to incorporating the results of these community-led events into their master bicycle planning document and our hope is that, by engaging the community
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early in the process, the planning to implementation timeframe will be considerably shortened.
Indy Schools Awarded $1 Million
80 years of Trusted Solutions and Client Satisfaction. BUSINESS BUZZ
The George and Veronica Phalen Leadership Academies and Christel House International of Indianapolis were the first to receive The Mind Trust’s Charter School Incubator awards. Through the incubator, The Mind Trust grants $1 million to each team of innovators to start or expand networks of public charter schools in Indianapolis. Phalen Leadership Academies will use its $1 million award to launch five K-8 “blended learning” schools combining traditional instruction and online learning. Phalen Leadership students will engage in classroom lectures before rotating into small group instruction, online instruction, project-based group work or individual projects based on their learning styles and ability levels. Christel House International will build a five-school network that includes two types of schools: a K-12 model that replicates its Christel House Academy, which has produced among the best results in the state among low-income students, and another school model focused on preparing former high-school dropouts for college and career success.
Senior-Living Planned for Westfield
219.513.2500 • www.sehinc.com 9200 Calumet Ave., Ste. N501, Munster IN 46321 ENGINEERS | ARCHITECTS | PLANNERS | SCIENTISTS
Mainstreet Property Group will build a senior-living facility in Westfield, adjacent to Grand Park. The $13.5 million facility will be located on 7.5 acres and create up to 150 jobs. The project includes 65,000 square feet with 100 suites. It is estimated to create a total economic impact of $22.6 million in Hamilton County. This includes direct construction costs as well as local supplier purchases and purchases by construction employees. The project supports approximately 209 primary and secondary jobs during the construction period. The total economic impact over the next ten years is estimated at $142.3 million including the economic impact of construction in 2012.
FULL SERVICE RETAIL & COMMERCIAL BANKING
The senior community incorporates hotel-style living and social amenities within a short-term rehab and healthcare-assisted environment. The facility will feature private rooms and multiple social destinations including restaurant-style dining.
Construction Begins on Indy Apartments Construction has begun on new residences at Solana Apartments at the Crossing and leasing is underway for existing apartments on the site with move-in as early as August. Milhaus Development recently closed a construction loan with PNC Bank to begin the $38 million project, which is located near the Fashion Mall in Indianapolis. Solana was the former Renaissance Bay condominium development and is situated on a lake next to the White River. When the first phase is complete, there will be 312 units added to the existing 24 units. In the future, a second phase will add 46 additional apartments.
smart businesses asking smart questions
Equal Housing Lender. Member FDIC.
The development will include studio, one-, two- and three-bedroom units with granite countertops, upgraded appliances, and hard-surface - continued on next page www.buildingindiananews.com
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BUSINESS BUZZ
floors in the kitchens and bathrooms. The apartments will have open-concept floor plans and will be between 536 and 3,058 square feet. The plans also call for a pool, fitness room, jogging trail and outdoor kitchen.
South
Credit Union Opening new Branch Indiana Members Credit Union will open a new branch in Brownsburg. The property will become IMCU’s 24th location in central Indiana. IMCU expects to open the Brownsburg branch in early 2013. The full service branch will include drive-thru service and a surcharge-free Alliance One ATM. Jay Puckett, IMCU regional manager, will oversee the consumer and commercial lending in Hendricks County. For daily news from Central Indiana and around the state, visit our blg at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.
Historic Solsberry Store Reopening CFC Properties will restore the Yoho General Store in Solsberry, with plans to reopen in the fall. Restoring the Yoho store will create jobs both during construction and upon opening for business. The store traditionally is a place that serves the community’s basic needs with groceries and deli. CFC Properties has plans to recreate the ice cream experience, refurbish the interior but keep the wood-burning stove, and renew the energy of the store. CFC Properties also plans to sell unleaded gas and on-road diesel. After visiting the town during the opening of EllieMae’s Boutique in 2008, and the annual Tobacco Barn Event, Bill Cook experienced what the unique and dynamic atmosphere the town has to offer. This visit sparked his interest in bringing back the Yoho Store.
Ivy Tech Buys Batesville Facility Ivy Tech Community College and Forethought Financial Group have agreed to purchase the Batesville Forethought facility. The agreement culminates months of meetings and negotiations by numerous representatives of the involved entities. Ivy Tech President Thomas J. Snyder says the site would house a manufacturing training center. Ivy Tech already has engaged architects to incorporate multimedia classrooms, health, nursing, science and computer labs, a manufacturing job training center, office areas, a library, bookstore, and numerous other special-use areas including a conference center. It will be the only full-campus, post-secondary institution on the I-74 Corridor between Ohio and Indianapolis.
Robotics Programs Receive Funding The southwest Indiana STEM Resource Center at the University of Southern Indiana is expanding its SeaPerch, underwater robotics, 20
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Glass Manufacturer Moves to Vincennes
SeaPerch trains educators to teach grades 5-12 to build underwater vehicles. Students follow a curriculum that teaches basic engineering and science concepts using remotely operated vehicles built from kits provided by the Naval Surface Warfare Center, Crane Division. NSWC-Crane partners with USI on programs to advance science, technology, engineering and mathematics education.
The Madisonville facility comprises two distinct manufacturing processes: assembly of food display doors (glass doors for commercial refrigerators such as those found in grocery and convenience stores) and a metal fabrication operation producing components that supply the residential refrigerator market. The metal fabrication operation will remain in Madisonville, retaining approximately 40 full-time employees.
Through the grant, up to 25 teachers will attend a one-day workshop introducing them to SeaPerch curriculum and competition rules and guidelines. Additionally, 25 kits will be purchased for teams. USI’s SeaPerch program is available to schools across southern Indiana. In 2012, 26 high-school and 42 middle-school teams participated including Marrs Elementary School and North Posey High School in Posey County. The next competition is tentatively scheduled for February 2013 at the Mount Vernon Junior/Senior High School natatorium. This will be the third year USI has hosted the regional competition—part of the larger national SeaPerch competition.
Schott Gemtron will transfer production capabilities for the Food Display business from Madisonville, Ken., to Schott’s facility in Vincennes, Ind. The company announced the transfer will take place over the course of 2012, to be completed by March 2013.
Madison Launches new Taskforce The Madison Area Chamber of Commerce and the Economic Development Partners have merged to create the taskforce Madison Chamber and Economic Development. The taskforce will share an executive director and an office manager, while maintaining separate boards of directors. Rounding out the staff is a business-resources and marketing position supporting the chamber, and a position emphasizing talent development tied in with the EcO15 Initiative in southeast Indiana. For daily news from South Indiana and around the state, visit our blg at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.
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BUSINESS BUZZ
program to more schools in 2013. The expansion is made possible through a $4,500 grant from the Posey County Community Foundation. The grant will provide funds for instructional workshops, robotics kits, and team registration fees for as many as 25 teams in Posey County schools.
People News Walsh & Kelly Elects Swan
Shaw Elected as First COO
The board of directors of Walsh & Kelly elected Jeff Swan as the executive vice president. Walsh & Kelly, which was founded in 1933, provides asphalt manufacturing plants, excavation, grading, concrete and paving solutions. Its offices are located in Griffith and South Bend with asphalt plants in Griffith, Valparaiso, Lowell, South Bend and Goshen.
The Indiana State Fair Commission selected David Shaw of Indianapolis as its first COO. Shaw is a veteran entertainmentindustry manager and will be responsible for all day-to-day operations at the fairgrounds and will oversee the renovation of the Pepsi Coliseum.
Indiana Orthopaedic Society Elects President Dr. Robert E. Clemency Jr., an orthopaedic surgeon working at South Bend Orthopaedics, was elected president of the Indiana Orthopaedic Society. Clemency has been with South Bend Orthopaedics since 1993. He is a graduate of the University of Notre Dame and completed medical school and residency at the Medical College of Wisconsin in Milwaukee. He is a fellow of the American Academy of Orthopaedic Surgeons and an active member of the Mid-America Orthopaedic Society, Indiana State Medical Association, and Notre Dame Orthopaedic Society. He specializes in sports medicine and joint replacement, and has worked with the University of Notre Dame Athletic Department since 1993. He has been the team physician for the Notre Dame hockey team since 1998. 22
Haendiges Promoted at Contractor’s Steel Contractor’s Steel promoted Marty Haendiges to operations manager in East Chicago, heading both sales and operations. Haendiges was most recently responsible for comanaging the Cleveland facilities.
Kuk Joins Ports of Indiana Anthony Kuk joined the Ports of Indiana as port director for the Port of Indiana-Burns Harbor in Portage. Kuk served as general manager for Nexeo Solutions’ Midwest operations based in Chicago. Kuk will replace Peter Laman, who is planning to move back to his hometown in Michigan after a transition period.
Jones Named Executive of the Year Robert G. Jones, executive director of the Indiana Minerals Aggregates Association, Carmel, was named 2011 State Aggregates Association Executive of the Year by the National Stone, Sand and Gravel Association. www.buildingindiananews.com
Indiana Women Lawyers Association Elects Two Attorneys
Traut Becomes Certified as Subrogation Recovery Professional
Hoeppner Wagner & Evans attorneys Sean Kenyon Treasurer and Kim Peil have been elected treasurer and secretary, respectively, of the Indiana Women Lawyers Association. Indiana Women Lawyers Association is a local chapter of a nationwide women lawyers association that provides support, resources, and referrals to women lawyers in the area.
Ted M. Traut, an associate of Weltman Weinberg & Reis Co. practicing in the Subrogation Practice Group, became a Certified Subrogation Recovery Professional through the National Association of Subrogation Professionals. At WWR, Traut focuses his legal practice in Subrogation and Consumer Collections, and is based in the firm’s Brooklyn Heights office. He earned his bachelor’s in advertising from Kent State University in 1995. A member of the Ohio State Bar Association, Traut is licensed in Ohio and Pennsylvania and the 6th circuit court of appeals.
McDougall-Covin Elected as VP Patricia P. McDougall-Covin, director of the Institute for International Business at Indiana University’s Kelley School of Business, was elected to a two-year term as vice president of the leading association of scholars and specialists in the field of international business. McDougall-Covin also will serve on the executive board of the Academy of International Business. In her first year, she will be in charge of the academy’s program for its international conference in Istanbul, Turkey, in summer 2013.
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Rapchak Joins Latitude Commerical Myles Rapchak of Crown Point joined Latitude Commercial. He will be responsible for marketing, sales and general management tasks. Rapchak joins the Latitude team with a business and management background.
Amstrup Earns Top Honor The Indianapolis Prize, considered the top honor for animal conservation, has been won by polar bear researcher Steven Amstrup. In 2007, Amstrup led an international team of researchers to assess the likely future impact of global warming on polar bears. The group’s nine reports, relied on by the secretary of the interior, became the basis for the 2008 listing of polar bears as a threatened species under the Endangered Species Act.
Dobson Graduates Mark Dobson, president and CEO of the Warsaw Kosciusko County Chamber of Commerce, graduated from the U.S. Chamber’s Institute of Organizational Management. He received training in leadership and organization management, as well as targeted curriculum in membership, technology and financial management. The chamber uses the four-week program as a training platform for the professional development of its top talent.
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Photo Feature Top Notch Holds Statewide Construction Awards Program Top Notch of Indiana held its third annual Standards of Excellence Awards program honoring organizations in May at the Indianapolis Motor Speedway in conjunction with pre-Indy 500 race festivities. Nearly 600 guests attended the event including professional tradesmen, contractors, construction users, political officials and civic leaders from around the state. The awards program was hosted by Executive Director Michelle Boyd, and Gerry Dick of Inside Indiana Business provided introductory remarks. Special remarks were made by former Mayor of Indianapolis Bill Hudnut, currently a faculty member at Georgetown University and a senior fellow emeritus at the Urban Land Institute. The awards program recognizes the best of the central Indiana construction industry.Top Notch is the state’s largest labor management association, representing more than $75,000 union tradesmen. Awards were presented in four categories to the following organizations: Training Excellence Award, IBEW Local 481 Indianapolis Electrical Training Institute; Union of the Year Award, Sheet Metal Workers Local 20; Contractor of the Year Award, The Hagerman Group; Labor/Management Foundation Award, Ryan Fire Protection and Sprinkler Fitters Local 669.
Above: (l. to r.) Former Mayor of Indianapolis (and keynote speaker) Bill Hudnut and Top Notch Executive Director Michelle Boyd. Top Left: (l. to r.) Representatives from Indianapolis Electrical Training Institute, winners of Training Excellence Award, IBEW 481 Electrical Training institute’s Paul Meyers and Jim Patterson. Bottom Left: (l. to r.) Trent Todd and Jason Benson from Sheet Metal Workers Local 20, winners of Union of the Year.
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Iron Workers Chicago District Competiton The Chicago District of Iron Workers recently held a regional competition at Local 395 school in Lake Station. The competition included union apprentices from Local 1, Chicago; Local 395, Lake Station; Local 444, Joliet, Ill.; and Local 112, Peoria, Ill. Winners of the competition will advance to the national competition in Indianapolis this September. Jeff Callender, of Iron Workers Local 1 in Chicago, won the competition.
Plan your
year. EVENT
LAKE AND PORTER COUNTY UNITED WAYS DAY OF CARING
You can help make a difference in the community by being a part of the United Way’s Day of Caring. nwivolunteer.org
VENUE
DATE & TIME
Various Community Locations
Aug. 24, 2012
THE BIG SCHMOOZE POWER PLAYERS IN NORTHERN INDIANA
SCHMOOZE at this networking-focused event. Building Indiana News will recognize the Power Players in Northern Indiana. Annual Campaign Kick-off for The United Ways of Lake and Porter Counties. thebigschmooze.com
THE SHRINE OF CHRIST’S PASSION GOLF CLASSIC
This outing supports the Shrine of Christ’s Passion. shrinegolfclassic.com
Avalon Manor Merrillville, IN
White Hawk Country Club Crown Point, IN
IDEA SHOW: NW INDIANA
Get a head start on tradeshow giveaways, safety incentives, corporate gifts & more! Touch 1,000s of items with free samples! freeideashow.com
TRAINING FOR GREAT FUTURES - KICK OFF This HUGE event will bring together the community to support Boys & Girls Clubs. From racecars to off-roading Hummers to NFL stars, this event will be spectacular! www.trainingforgreatfutures.com
A union apprentice cuts steel as part of the Chicago District of Iron Workers regional competition. The event was held at Local 395’s Apprenticeship School in Lake Station, Ind.
BETTER BUSINESS BUREAU TORCH AWARD LUNCHEON As a private, non-profit organization, the purpose of the Better Business Bureau is to promote an ethical marketplace.
Avalon Manor Merrillville, IN
Schepel Cadillac Merrillville, IN
Radisson Star Plaza Merrillville, IN
Sept. 13, 2012 5-8pm
Sept. 17, 2012
Sept. 20, 2012 10am-2pm
Sept. 27, 2012 5pm7:30pm
Oct 9, 2012 11am-2pm
3dms.com
STAND UP FOR ST. JUDE HOUSE
Join us for a comedy show and dinner to benefit St. Jude House! standupnwi.com
TRAINING FOR GREAT FUTURES - SUPER BOWL This event will be the culmination of almost a whole year of build-up! From chefs to Super Bowl ticket raffles to NFL stars, this event will be the must-see event of January! www.trainingforgreatfutures.com
The Chicago District of Iron Workers regional competition brought in several union representatives that assisted in coaching and judging, as well as competitors from surrounding Locals.
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BEYOND SAFETY EXPO Come learn from the industries BEST Safety experts, CEUs available. Discuss topics related to safety and network.
Radisson Star Plaza Merrillville, IN
Oct 11, 2012 6pm-9pm
Jan. 25, 2013 TBD 5pm7:30pm
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Feb 19-20, 2013
beyondsafetyexpo.com
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2012 Influential Women Awards The second annual Influential Women of Northwest Indiana Awards Banquet this May drew more than 550 guests. Awards included 11 UpAnd-Coming Women, 11 Influential Women and a Community Leader. Melissa Strayer of Kvaerner North American Construction was chosen as the Overall Up-And-Coming Woman of the Year and Chareice White of Majestic Star Casino was chosen as the Overall Influential Woman of the Year. The final award was for the Empowering Business of the Year, Fair Oaks Farms, which demonstrated fair hiring practices and business conduct which empowers women. Proceeds from the event including the table centerpiece raffle, will benefit four local nonprofit organizations: Visiting Nurses Association of Porter County, Catholic Charities of the Diocese of Gary, Housing Opportunities and Boys & Girls Clubs of Northwest Indiana.
Top: These exquisite glass sculptures were presented as awards at this year’s Influential Women of Northwest Indiana Awards Banquet. The largest two were awarded to Charice White, Up-andComing Woman of the Year, and Melissa Strayer, Influential Woman of the Year.
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Middle: More than 600 guests were in attendance at the banquet located at the Radisson in Merrillville. Bottom: 2012’s Influential Women of Northwest Indiana will be featured in a special publication later this year.
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Crisis Center Wine Fest & Auction The 17th annual Crisis Center Wine Fest & Auction was held at Chesterton’s Sand Creek Country Club in June. What has become known as “northwest Indiana’s biggest night” included a first-ever electronic bidding for 209 silent auction items. Sponsors, underwriters, ticket buyers and the 60-member committee helped the Crisis Center net $231,000 for its crisis intervention and prevention services for youths, adults and families.
Left: (l. to r.) Shirley Caylor, crisis center executive director; E. Thomas Collins Jr., Wine Fest committee co-chair and Crisis Center board of directors member. Middle: Mike Finissi, NIPSCO director of operations, spoke of the company’s commitment to youth services. NIPSCO was a $20,000 sponsor of the event. Right: Andy Arnold, Wine Fest Committee co-chair and Crisis Center board of directors member with special guests The Chicago Blackhawks Ice Crew Girls.
Monday, September 17th, 2012 White Hawk Country Club • 12:30 start 1001 White Hawk Drive • Crown Point, IN Hosted by Mr. & Mrs. Frank Schilling Invitations coming in June Want more info? Call Paul Anderson: 219-616-2028 or Rick Thomas: 219-730-6064 ShrineGolfClassic.com
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Demonstrating
STATE OF THE INDUSTRY
Expert Ability
Iron worker apprentices head to Indianapolis to prove their skills By Dewey Pearman, Executive Director of Construction Advancement Foundation
T
his September, Indianapolis will have the honor of hosting the Iron Worker’s national apprentice competition, which will illustrate the talent demonstrated by the men and women embarking on a journey with their Iron Workers Unions. This event is held every two years at rotating locations where the best Union apprentices compete for the Outstanding Iron Worker Award. Each participant was selected during their own district council’s competition. “There is no expensive grand prize, but our apprentices still are anxious to show off their skills and demonstrate pride in their Locals,” says Doug Strayer, Local 395 business manager. “There is a lot of prestige associated with winning these competitions, especially on the national level. Everyone wants to bring that trophy home.” The Chicago District Council’s apprentice competition was held for the first time at Local 395’s school in Lake Station. Nine iron workers competed, and four were chosen to advance to the national competition. Those selected were first place, Jeff Callender, Local 1; second place, David Brightwell Jr., Local 395; third place, Sam Howard, Local 395; and fourth place Brett Cook, Local 112. Iron workers began with a 100-question written test on 28
material from apprentice training manuals. Then they quickly went into action, displaying their newly acquired trade skills such as measuring elevations, burning cuts into metal, welding from multiple angles, tying knots, making rod ties, assembling glazed windows and finally climbing columns. Competitors moved at furious paces as they were cheered on by peers, friends and family. Children were awed by the bursts of sparks and fire as metal was cut and welded. Several members of the media attended to interview representatives and photograph the action. And hundreds gathered around the 35-foot column, as harnessed iron workers raced to the top to ring a bell. Second-place winner Brightwell made the best time. He’s a third-generation iron worker that joined the apprenticeship after returning from an Army tour in Afghanistan. He says his friends and family put a lot of pressure on him to succeed, but becoming an iron worker has been a goal since he was four years old. Strayer displayed a lot of faith in his crew, indicating they were well practiced after a prosperous year due to an expansion project at the British Petroleum Whiting Refinery. This particular project has brought in an additional 10,000 workers, as the company expands to accommodate the refining of Canadian tar sands. “People don’t understand what that project has done for www.buildingindiananews.com
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Information Inform that matters BCRC is very passionate about what we do. Our services promote the well-being and safety of employees in the workplace. Empowering our members with information is just one way BCRC does this. It is our purpose to provide a vehicle to help establish and maintain a workplace free of the destructive effects caused by the use of drugs and alcohol. If you require more information or would like to speak with us directly, please feel free to contact BCRC at anytime.
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Indiana,” Strayer says. “People have moved in from all over the country. They have bought houses and cars. And every day that they work, they are boosting the Indiana economy by shopping in local stores and eating in restaurants.” This economic surge follows the recession and a 2009 lull in construction activity that “People don’t caused Local 395 understand what to stop accepting that project has new applicants done for Indiana. People have moved for one year. The in from all over the economy is now country.They have improving. The bought houses and most recent group cars. And every day of apprentices that they work, they for Local 395 are boosting the was chosen from Indiana economy 980 applicants, by shopping in local Strayer says. Of stores and eating in those, about 600 restaurants.” were screened – Doug Strayer, Local 395 and only 74 were business manager on the Iron Worker’s national chosen. At the end apprentice competition of their three-year commitment, each will receive an associate’s degree through Ivy Tech at no individual cost. Strayer says people always are eager to get their foot in the door at a union because it offers the opportunity to develop useable skills as well as fair compensation. Upon graduating from the program a union iron worker can expect to earn up to $34.20 per hour. Of course, there also is opportunity for overtime pay when projects such as the refinery expansion are available. Competitive wages keep the number of applicants high, which helps guarantee that only the very best will be constructing our buildings and bridges. The programs in which they enroll, as well as the brotherhood, further foster to unrivaled work ethics that bolster the Indiana economy by maintaining the high standards that developers expect from organized labor. Also, companies such as British Petroleum can rest assured that their new structures will be assembled correctly and safely.
877-988-5400 info@bcrcnet.com
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SAFETY MANAGEMENT
Tranquil
Construction
Proper ILSM maintains protection without disruption to health facilities By Ryan Graft CHST, CHSP
W
hen scheduling construction or remodeling in health facilities, closing off areas rarely is an option. Instead a new level of safety actions—Interim Life Safety Measures (ILSM)—must be incorporated to address incidental hazards so that work can continue safely. An effective ILSM program maintains necessary protection without disrupting hospital operations. It’s a practical
solution that that addresses the safety of patients, staff and visitors. Pre-Construction Risk Assessment Well before any work begins, a preproject assessment tool will help identify 30
any Life Safety System impairments that may occur during the construction or maintenance activity. Representatives from
the hospital safety staff, the contractor or maintenance teams and the hospital’s project manager walk through the planned www.buildingindiananews.com
work area and complete an assessment tool. This walk-through helps the team identify and plan for safety issues that may impact hospital operations and life safety by asking the following questions. - Will noise or vibration impact departments or units? - Have emergency procedures for accidental events that could impact life safety or patient care been established and posted? - Will any system that requires an ILSM assessment be taken out of service during the project? - Will any of the systems that require utility shutdown notifications be out of service during the project? These systems may include water, medical gas, sewage, heating and ventilation, security cameras, Internet service, etc. - Will the project require abatement of asbestos or other hazardous materials? - Will the contractors use any hazardous chemicals? Fumes and odors must be controlled, or alternate products should be specified. - Will the project activity include sources of ignition such as cutting, welding, soldering or open flame? - Will the project activity present any other safety-related hazards. Armed with the answers to these questions, the team can develop a plan to address life safety code deficiencies. It is critical that all participants involved in the assessment including any affected hospital departments review this plan and sign off before work begins. Once the assessment and plan are complete, load the information into an ILSM database for efficient management. It also should be noted that an ILSM assessment is a living document that is updated continuously during a project. Interim Life Safety Measures Construction may also create life safety code deficiencies. ILSM assessments will identify elements that create life safety code deficiencies. Among the questions that should be asked as part of this process include: - Will any egress pathways or exits be altered or obstructed? - Will any part of the fire suppression or sprinkler system be impaired? - Will any smoke/firewalls, doors, or assemblies be compromised? - Will the fire safety of personnel in adjacent areas be affected? - Will it be necessary to install temporary construction partitions? The answers to these questions can help the team develop plans to address life safety code deficiencies. It is critical that all participants involved in the assessments including any affected hospital departments, review these plans and sign off prior to the beginning of the work. Implementing the ILSM plans As assessments are completed, load data into an ILSM database for efficient management. Share plans with contractor supervisory personnel and hospital managers, and post them in www.buildingindiananews.com
highly visible and accessible areas for contractor staff to reference. It also may be appropriate to make copies available to local first responders. An ILSM assessment is a living document; one that needs continuous updating, and updates should be circulated and posted as necessary. Contractor and staff training Project-specific training for contractors and maintenance personnel is essential. Hospital staff members should receive safety training and understand how temporary conditions impact safety. Review the RACE (Rescue, Activate, Contain, Extinguish) concept for dealing with emergencies, and the PASS (Pull, Aim, Squeeze, Sweep) process for using fire extinguishers correctly. Depending upon the nature of the project and the specific details of the ILSM plans, they may need instruction in other emergency procedures. Even if staff members or contractor personnel have been through similar construction projects that involved learning these procedures, it is critically important to repeat training. Human memories are imperfect, and repeated training is the best way to ensure that the correct actions will be taken instinctively in a crisis. Verifying compliance Once projects begin, the focus shifts to monitoring compliance. An ILSM compliance checklist is a practical, effective tool that simplifies monitoring and documentation of ILSM performance. At minimum, compliance should be observed and documented
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through daily walk-throughs. The ILSM compliance checklist should help ensure: - Construction-area exits are inspected daily, as the contractor maintains an egress log. - Access to emergency services, and entrances and exits are unobstructed, and contractors refrain from propping or wedging open doors. - Exterior access for emergency responders is maintained. - The fire-alarm and –suppression systems are operational and deficiencies are noted. - Housekeeping is monitored to ensure that construction debris is removed promptly and tools are stored away safely. - Hot work operations are complemented with properly trained fire-watch personnel. An important aspect of all ILSM programs is project-specific training for contractors. This allows personnel to track the information from walk-throughs.
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That data should determine ways to focus training efforts. Sharing information with the contractors and maintenance personnel will foster continuous learning and enhance safe practices. Closeout procedures As the project nears the end, it’s time to prepare to turn the newly constructed or renovated space over to the hospital department or other user groups. Before that occurs, you’ll need to verify that all life safety deficiencies have been corrected. A closeout checklist is a particularly helpful tool for documenting that the project is ready to be turned over. Among the most common issues that such a checklist can address are: - Are all exit signs operational, and has the contractor removed all temporary signs; have all obstructions been removed? - Has access to emergency services been restored? - Verify and document that maintenance acceptance testing for smoke/sprinkler
systems has occurred when the project involved modifying or installing new systems. - Verify that all ceiling tiles have been installed. - Ensure that spaces are clean and ready for occupancy. - Remove any other safety related hazards or conditions prior to accepting the area. All parties involved in the pre-project assessment should participate in the walkthrough for the closeout checklist, and all questions must be satisfactorily answered and issues resolved before the space may be occupied. One final thought Be sure that your ISLM program incorporates comprehensive training for everyone on the site. The success of your program depends on how well you communicate its importance to the individuals whose work impacts the life safety of the patients, staff and visitors in the facility.
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FRANCISCAN ALLIANCE SIXTH ANNUAL NORTHERN INDIANA REGION GALA
Saturday, october 13, 2012 HILTON CHICAGO HOTEL
Social Hour 6 Dinner 7 Tickets $225 pm pm
Parking included • Black tie preferred Music by the roy vombrack orchestra
For information, call Colleen Lannon, 219.933.2178, or email colleen.lannon@franciscanalliance.org All proceeds will benefit the Franciscan Alliance Northern Indiana Mission Programs. www.buildingindiananews.com
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BOTTOM LINE
Gasoline
Ups and Downs
Ball State illustrates price fluctuations and impacts on Indiana By Adam Madison
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oward the end of June, Hoosiers were feeling relief at the pump as gas prices dipped below the $3.20 mark, only to be stunned again by $3.69 per gallon right around the Fourth of July. While the fluctuations of fuel prices often are unpredictable, rude awakenings, their impact on the overall economy is a more precise science.
Ball State recently conducted a simulation model of the economy in order to analyze the impact of rising gas prices, exposing truths that explain how the price of gas impacts the costs of other goods and services, as well as job growth. The results illustrated how the Indiana economy responds as prices increased from $3 to $4 per gallon. The simulated economy continued to grow, but at a 1.2 percent slower rate. Even as the current economy continues to improve remarkably, jobs would have grown by an additional 60,000 if gas had remained $3 per gallon, says Michael Hicks, Ph.D., 34
director and associate professor for BSU’s Center for Business and Economic Research. The good news is that experts now indicate that throughout the summer gas prices should remain below $4 per gallon. Hicks says they may even fall “a bit” if Europe slips further into recession, which would ease the demand for petroleum. As a result, fewer companies would purchase fuel on commodity markets in order to hedge the danger of anticipated shortages, shrinking demand further. China’s economy should follow as Europe purchases less products and
currently displays a 4.5 percent growth rate. “That is astonishingly slower than they had been growing,” Hicks says. “No one is going to escape the generalized slowdown that is accompanying the European recession.” Despite the economic downturn that began in 2007, worldwide demand continues to rise—just less ravenously. In the span of one generation, worldwide consumption of petroleum has grown from roughly 66 million to over 85 million barrels per day. While this demand also is equal to the supply of petroleum, this type of demand growth in any commodity is typically associated with price increases. The long-term effects of higher gasoline demand also are attenuated by the very large growth in money supply as a consequence of international efforts to stimulate the economy,” Hicks writes in
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his report Gasoline Prices: An Update. As governments print more money, an upward pressure will be applied to gasoline prices as a consequence of inflation, but only as the economy enters a stronger recovery. “It is what economists call monetary illusion,” Hicks says. From 1976 through 1990, the annual price increase was 1.9 percent. From 1991 to 2011, gasoline rose 12.6 percent, Hicks reports. Numbers were calculated for May through February. Of course, inflation alone cannot explain price hikes. Government regulations also have played a role, particularly the Clean Air Act and its 1990 amendments. The act first phased out leaded gasoline, and in 1990 amendments required states to develop and implement reformulations that varied the oxygen content and vaporization rate by season. The result was higher costs at the refinery level, as companies worked to bring operations up to standards.
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Wars and other forms of political unrest, as well as media speculations, encourage fluctuations to gasoline prices but not as drastically as one might think. Hicks cites enormously stable gas prices ranging $1.75 to $1.98 per gallon throughout 1987 and 1988 during the Iran-Iraq war, a time when the United
In the span of one generation, worldwide consumption of petroleum has grown from roughly 66 million to over 85 million barrels per day.
States attacked Iranian navel vessels and oil platforms. Following the Iraqi invasion of Kuwait in August 1990, a U.S. led coalition deployed forces to Saudi Arabia and the
Persian Gulf to eject the Iraqi military. Gasoline prices rose from $1.88 in July 1990 to $2.35 by October of that year. However, by the time widespread combat began in mid-January, prices had eased to $2.10 per gallon and dropped to $1.82 in March following the ceasefire. “Over the past 30 tumultuous years, the Middle East has seen sustained wars, intensive mining of the Persian Gulf and short conflicts involving forces across the region,” Hicks reports. “In no instance has the effect on petroleum prices been obviously permanent.” As gas prices remain below $4.00 per gallon, Indiana should continue to see slow but steady growth. However, much of Indiana’s success also can be attributed to tax climate, a business friendly environment and proximity to first-rate distribution networks. The downside, Hicks says, is that an increase in gross domestic product potentially could contributes to—yep—higher gas prices.
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BEING PRODUCTIVE
Tips for Event Planning By Deann Patena, Director of Sales and Marketing
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he success of a business often is dependent upon the relationships that is has grown, so it’s no wonder that an entire industry has been built around fostering those relationships. PricewaterhouseCooper estimates that the U.S. meetings and events industry has a greater impact on the economy than the auto industry, generating $907 billion in total U.S. economic activity to contribute to $458 billion to the gross domestic product. For Indiana this translates into substantial tax revenue, as people from around the world convene at various tradeshows, meetings and events. The people creating these events, however, experience increasing difficulty as their own relationships are strained by a down economy. Events planners and venue owners are now trying to build the same meetings with fewer resources. The days of the meeting planner dictating all terms of the agreement may soon come to an end. Experts say hotel rates are catching up, and planners may experience sticker shock from proposals for meetings occurring in 2014 and beyond. Planners now have less bargaining power than before, but there are some simple strategies to maintain a healthy—and profitable—relationship. Be flexible on the pattern and date of the meeting. Hotels have a variety 36
of business types and clients. While some hotels may specialize in business transient clients and therefore have more availability for groups on the weekends, other hotels specialize in weekend groups and can offer better packages during the week. Some hotels may peak in summer months when they host more sports teams and weddings, while others are busier with conventions in October and April. Planners should be familiar with the hotel’s patterns and be prepared to be flexible with dates for the best deals. Remain open to a variety of room sets. Venues offer different styles of meeting spaces, catering and guestrooms that vary in value. Planners should try to be more efficient with space. For example, be open to “about room” sets and using rooms more than once during an event. Often, the venue can transform a theatre-style general session to three breakout rooms in little time. Try theatre-style instead of classroom whenever possible and use crescent rounds for a general session that can easily be turned into rounds for a meal. Also, be open to eliminating some pipe and drape from exhibit space. Provide realistic numbers for both overnight rooms and needed food and beverage. Many people think
they’ll get a better deal if they overshoot guestrooms and catering. This is not always the case. If attrition or food-andbeverage minimums fall into play, then the meeting can end up costing much more. On the other hand, if the numbers are too low, then the hotel may not have the necessary space or guestrooms available to the group when the time comes. Being as accurate and forthcoming about the numbers as possible is important. Build true relationships and don’t be afraid to use them. Some planners have a habit of only returning venue calls when they need something. This does not build solid relationships. When suppliers feel truly connected to planners, they generally will go out of their way to work within the parameters of the planner requirements. Be upfront about the budget. When a venue knows exactly what the budget is, it is much easier to work within the planner’s specifications and determine if the two are a good fit. Planners should not assume that the venue will squeeze them just because they present a budget. Ask about all-inclusive meeting packages. Packages include everything the planner needs for a basic meeting, www.buildingindiananews.com
such as basic audio-visual; breakfast, break and lunch; meeting room rental; etc. Taking advantage of packages is a great option for smaller meetings, as the pricing is usually per person, so meeting room rentals and minimums are proportionate to the number of attendees.
Fall Conference
Ask for specialized menus if standard menu options don’t work. If the planner does not find the menu suitable, the banquet team usually will create a specialized menu. Planners often request this option when they have budgetary or dietary restraints, or when they have frequent meetings at a specific venue with the same menu. Chefs often are delighted at the request and prefer creating specialized menus rather than losing business. Last but not least, have open communication with your venue. Nothing is more important than a steady stream of communication. If all parties involved remember this one tip, then the meetings and events will always be a success! Focusing on these basic best practices encourages a smooth planning process for both the meeting planner and venue but also supports the success of the industry. A seamless process leads to more meetings booked, which leads to more revenue generated. And as statistics have shown, a healthy events industry contributes to the betterment of our economy as a whole.
Network with Economic Development leaders throughout the entire state of Indiana.
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MASS PRODUCTION
Made in Indiana Auto-parts manufacturers preparing for economic rebound By Adam Madison
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ndiana’s auto-parts manufacturing industry is making a substantial rebound, as its customers increasingly bring business back to the United States in attempts to streamline supply chains and take advantage of economic incentive programs. The need for heightened production levels has called for significant investments to increase capacities, contributing to the economy and adding jobs. For Tomken Plastics Technologies, demand fell during the recession of 20082009 but returned to normal in 2010. The following year brought a 15-percent increase in sales, and 2012 is predicted to bring a 20-percent increase. “The dip is over for us,” General Manager Bruce Carmichael says. The company now is increasing production of its small plastic components that are most commonly used in underthe-hood applications, inside ventilation systems or on door handles. Carmichael says they have earned several new contracts for the assembly of 2013 model year cars. TomKen currently serves companies in 38
Indiana, Illinois, Michigan, Ohio and Mexico. Nishikawa Cooper sings a similar tune, as it ramps up to provide dynamic sealing systems for both foreign and domestic
For Tomken Plastics Technologies, demand fell during the recession of 2008-2009 but returned to normal in 2010.The following year brought a 15-percent increase in sales, and 2012 is predicted to bring a 20-percent increase. automotive customers including Honda, Nissan, Chrysler, Toyota, Subaru and Mazda. The company is headquartered in Topeka and also has a manufacturing facility in Bremen. The Topeka site is up for a $5.5
million investment in new manufacturing equipment in response to the uptick in demand. It will include new rubber-extrusion lines and associated equipment. The project is expected to require the addition of 15 employees to its existing workforce of 435. “The new equipment will give us the needed production capacity to fill demand for our dynamic sealing systems,” says Vice-President and General Manager of Nishikawa Cooper Mike Talaga. “This demand is being driven by the both the resurgence of the foreign automotive markets as well as our competitive pricing, and we are glad to make this investment locally.” Tomken has responded with the installation of two new plastic injection molding machines—with clamp tonnage of 310 and 1,100 tons—in a new, 15,000-square-foot building. A robot for moving completed parts comes with each machine. Also new; a 10-ton overhead crane spans the molding machines to load and unload molds. The facility features an automated material-handling system with www.buildingindiananews.com
an outdoor silo. While the expansion may call for an additional six employees, the new technology has decreased the need for manpower, Carmichael says. For instance, there is a boxing system with a conveyor, which folds boxes and conveys in new ones. Carmichael says this runs for hours unattended. State-of-the-art technology, coupled with proximity to its customers, enables parts manufacturers to conform to the supply chain logistics that keep auto producers competitive. Assembly plants require a steady stream of materials to maintain output. At the same time, companies do not want stockpiles of inventory that consume inventory space. Furthermore, if there was a defect, waste would be experienced on both ends as parts were recalibrated. Carmichael says these are the areas where overseas producers routinely fail. Both Tomken and Nishikawa Cooper were able to take advantages economic programs to help fund their investments. Tomken’s machines were financed through the U.S. Small Business Administration 504 loan program provided by First Merchants Bank and the Indiana Statewide Certified Development Corp. SBA provided 40%, and the bank offered 60%. The partnership spread out the risk for the lenders. Although, there is more paperwork to deal with in comparison to a standard loan, Carmichael says. Indiana Statewide CDC works with local lenders to provide SBA 504 loans to owners of expanding companies. Congress created the SBA 504 program, so owners of small businesses could get long-term, fixedrate financing with lower down payments. Nishikawa Cooper took advantage of personal property tax abatements through the Topeka Town Council at the request of the LaGrange County Economic Development Corp. LEDC is is a 501(c) 3 corporation designed to assist with business development needs. The LEDC partners with local, regional, state and federal agencies to attract, retain, and develop new businesses and entrepreneurs. www.buildingindiananews.com
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SMALL BUSINESS SPOTLIGHT
SBA Provision
Makes a Strike
Temporary provision to SBA 504 loans allow for debt reduction and increased working capital By Adam Madison
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mall-business owner Robert Tucker looks across the newly renovated Hobart Lanes with a feeling of accomplishment. The northwest Indiana bowling alley, which was first built in 1963, has successfully been upgraded from the original wood lanes to state-ofthe-art Brunswick lanes. Following the renovation, Tucker immediately secured four additional leagues. Professional bowlers are taking interest because these lanes are the same style used in tournaments. “They have been well received by the bowling community,” he says. Adding to Hobart Lanes’ success was the rare opportunity to take advantage of a temporary provision to the Small Business Administration’s 504 Loan program. Doing so allowed Tucker to refinance his mortgage to reduce interest and fix rates for 20 years. This loan program was originally launched by the federal government with the intention of assisting small-business owners like Tucker. It’s an economic development tool that offers another avenue for business financing, while promoting business growth and job creation. Approved small businesses can secure long-term, fixed-rate financing used to acquire assets for expansion or modernization. 504 loans are made available through Certified De40
velopment Companies, SBA’s communitybased partners for providing 504 Loans. The Regional Development Company in Valparaiso is one such partner that opened the door to this opportunity. Tucker actually had been denied twice for the loan until he finally walked into his local Peoples Bank, which first called RDC. The RDC is an SBA-certified lender that works with banks and borrowers eligible for 504 programs. The RDC provides 90 percent financing; the bank holds a loan for 50 percent of the appraised value and
the SBA holds 40 percent. A 504 typically helps finance the purchase of commercial real estate and large equipment. However, companies with existing loans—like Hobart Lanes—may be temporarily eligible for debt refinancing. This has never before been done, explains Erica Passauer, RDC president and executive director. Now Tucker can bowl at ease without worrying that his rates will skyrocket because the loan allowed him to spread the mortgage across a 20-year fixed rate. “I am
Robert Tucker, owner of Hobart Lanes
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much better off than I was before,” he says. The lanes ran $100,000, but already have shown a return on investment. Wooden lanes require regular sanding, which costs up to $4,000 each year. This never has to be done again, Tucker says. The oil to maintain these lanes also is expensive and now only will be required half as often. “These lanes are a synthetic material that is guaranteed for life,” Tucker says. “They are basically indestructible.” Tucker paid another $30,000 for new overhead scoring systems and a series of flat screen televisions. This is an upgrade from tube monitors installed in the 1980s. Scores are much easier to read, and he expects more sports fans will bowl if they don’t have to miss big games. While Tucker chose to pay off his vendors, he just as easily could have used the provision to secure additional working capital of up to 90 percent. “Let’s say a qualifying mortgage to be refinanced is $500,000, but the appraised value of the real estate is $1 million” Passauer speculates. “Through the program, that would create $400,000 of untapped equity.” This money could be used for business purposes; the purchase of inventory, improvement of the existing real estate, paying off or down existing lines of credit, or the purchase of equipment needed to perform the job. Passauer says all purchases need to be for legitimate business purposes and must be substantiated with a certain degree of evidence, as with any loan. “But the SBA is actually being very generous as far as their definition of ‘business purposes.’” Borrowers still are encouraged to refinance because interest
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rates are historically low, Passauer says. Through SBA, however, they are even lower because the money for the loans is procured through the sale of government-backed securities on the stock market. All loans closed in a given month are grouped together and sold as a bond. The government guarantees the bond and the purchasers determine the rate. “We call it ‘bringing Wall Street to Main Street’ because this is the kind of access to capital that your Fortune 500s can take advantage of but small businesses normally cannot,” Passauer says.
Real Estate Marketplace Great Lakes Industrial Center 201 Mississippi Street Gary, IN
Gary, IN FOR LEASE
Phone: 312-446-7059 /219-736-0014 Website: www.commercial-adv.com Broker Name: Commercial Advantage, Inc. Email: Lori Tubbs: ltubbs@commercial-adv.com / Joel Henderson: jhenderson@commercial-adv. com Total Square Feet: 25,000 sf (+/-) contiguous space – divisible from 291,213 sf Property Type: Industrial Description: CRANES: 10T - 40T Capacities ELECTRICAL: 480V - Phase3 - Abundant Amperage - Separately Metered RAIL: Interior and Exterior by CN, CSX, IHB and NS SECURITY: Perimeter Fence with 24 hour bonded Security Guard HEAT: Gas Heat with humidity control available TRUCK SCALE: 75 ton truck scale AMENITIES: Enterprise Zone, Outside Storage and immediate access to Interstates.
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Movin’ on COVER STORY
Logistics plays a central role in Indiana’s economic health By David Wellman, Northwest Indiana Regional Development Authority
I
ndiana continued to reap the benefits of its central U.S. location, attracting logistics and transportation-related companies, and thousands of industry jobs in 2011. Of the more than 19,000 job commitments secured by the Indiana Economic Development Corp. last year, nearly 2,000 were in the logistics sector – second
only to the number of manufacturing jobs promised.
Fresh logistics investment continued to pour into the state early in 2012. In January, retailer Pet Supplies Plus, which operates 258 specialty pet stores in 22 states, relocated its warehousing operations from Farmington Hills, Mich., to Seymour. The company is leasing and equipping a 763,000-square-foot facility that will more than double its capacity to support existing and planned stores. The warehouse was scheduled to begin shipping this month. In February, two more logistics providers announced expansions. Interstate Warehousing (Fort Wayne) announced a two-phase, $26 million expansion of its refrigerated warehouse in Johnson County. The first phase, completed in July, boosted the facility 42
from 428,000 to 568,000 square feet. At the same time, Indianapolis-based Wheaton Van Lines acquired a Hillsdale, Ill.-based competitor, Bekins Van Lines, and relocated that company’s operations to Indianapolis. And in March, Charming Shoppes Inc., a retail apparel chain operating under brands such as Fashion Bug, Lane Bryant and Cacique specializing in women’s plussize apparel, announced plans to install new material handling equipment and warehouse management systems at its existing 794,000-square-foot Greencastle facility. Once upgrades and renovations are complete, the facility will have the capacity to service up to 2,300 stores. All totaled, these four developments have created or are expected to create
more than 350 new jobs. Indiana’s logistics boom also can be seen at the state’s three ports – Burns Harbor, Mount Vernon and Jeffersonville. Combined, the three Ports of Indiana handled 8.1 million tons of cargo in 2011, the largest annual tonnage since 2006. Mount Vernon in particular did well, handling its largest annual tonnage since 1994 and the third-highest in the port’s 36-year history: 4.7 million tons in 2011, an increase of 12 percent over 2010. Ethanol-related shipments played the biggest role in the increase, with Aventine Renewable Energy operating in its first full year at the port and other ethanol producers taking advantage of the port’s new rail-to-barge transloading facility. Ethanol shipments were five times the previous year’s total and shipments of dried distillers grains (a byproduct of the ethanol process used in animal feed)) were 10 times greater than 2010. “Despite continued economic uncertainties, this was the fourth consecutive year our ports experienced www.buildingindiananews.com
growth,” says Ports of Indiana CEO Rich Cooper. “Our 2011 shipments were nearly a million tons higher than the five-year average. We’ve also seen a significant increase in capital investments by our port companies as they prepare for future growth.” More than 60 companies operate at Indiana’s three ports, and that number ticked up one more notch in March when Ratner Steel Supply Co. chose Burns Harbor as the site for a new facility. The Roseville, Minn., company, which produces steel sheets and plates, is spending more than $14 million on a 102,000-square-foot steel service facility to the port. The facility is expected to employ about 30 people. Regional air cargo demand rose 18 percent in 2011, triggering Luxemburgbased Cargolux Airlines to add a third weekly flight to Europe earlier this year. However, only a tiny fraction of the air cargo Indiana exports actually leaves from an Indiana airport – just two percent of 180 million pounds of air cargo exports in 2010, for example. Most of it – about two-thirds – left out of Chicago’s O’Hare airport. An initiative is underway aimed at changing this. At the urging of Conexus Indiana, the state’s airports have banded together to commission a survey to identify the volume of inbound and outbound shipments by Hoosier firms. The idea is to determine where large enough volume exists to allow companies to combine shipments and use regional airports, saving time and money. To date efforts have documented about a dozen companies that qualify, according to David Holt, vice president of operations and business development, but progress in getting the data has been slow. The project remains ongoing. However, perhaps the most interesting development to watch for the future of transportation and logistics in Indiana – and the entire U.S. – is the ongoing expansion of the Panama Canal. When completed in 2014, the canal will be able to accommodate newer and larger www.buildingindiananews.com
Indiana Logistics Rankings When compared to all other states, Indiana ranks in the top 10 in 43 significant logisticsrelated categories and in the top five for 17 of those. Not bad for a state that is only 38th in geographic area and 15th in population.
Indiana ranks...
cargo ships from Asia that now have to offload at West Coast ports. Currently, the only way for companies in Asia to ship directly to the East Coast is by traveling through the Suez Canal in the Middle East, through the Mediterranean and across the Atlantic. A wider Panama Canal would open Gulf ports and the East Coast to Pacific shipping. The result could be a dramatic change in shipping patterns. One ambitious proposal from Louisiana is the construction of a huge deep water gulf transfer terminal at the mouth of the Mississippi. Giant oceangoing cargo vessels would be unloaded here and the cargo transferred to smaller ships for transit up the Mississippi, turning the Father of Waters into a cargo superhighway. However, to date funding for the project remains an issue. Many East Coast ports would also have to conduct dredging work to accommodate bigger Pacific ships, and for all the talk of congestion at West Coast ports, they have ample room to expand. For these and other reasons, opinion is split as to what, if any, impact the canal widening will have. But they all agree it bears watching.
• 1st in intersecting highways • 1st in rail tons of primary metals originated • 1st in rail tons of primary metals terminated • 1st in shortest distance to median center of U.S. population • 2nd in world’s largest FedEx air hubs (Indianapolis) • 3rd in total freight railroads • 3rd in local freight railroads • 4th in Class I railroads • 4th in number of long-distance trucking companies • 4th in rail tons of food products originated • 4th in rail tons of petroleum products terminated • 4th in rail tons of waste & scrap material terminated • 5th in trailer and semitrailer registrations • 5th in largest cargo airports (Indianapolis) • 5th in local rail mileage • 5th in regional railroads • 5th in switching/terminal railroads • 7th in export value with Canada • 7th in NAFTA export value • 7th in number of airports • 7th in long-distance trucking employment • 7th in trucking employment • 8th in domestic waterborne shipping • 8th in NAFTA trade dollars • 8th in number of specialized trucking employees • 8th in rail tons of coal terminated • 8th in rail tons of farm products originated • 9th in tons received • 9th in Class I rail mileage • 9th in export value to Mexico • 9th in freight rail employment • 9th in number of trucking companies • 9th in number of warehouse employees • 9th in rail mileage • 9th in rail tons carried • 9th in rail tons of coal originated • 9th in rail tons of waste & scrap material originated • 9th in scheduled air freight • 9th in total Canada trade dollars • 10th in truck tons originated • 10th in rail carloads carried • 10th in freight shipped out of state • 10th in rail tons originated • 11th in transportation-warehousing employment Sources: Association of American Railroads, Federal Aviation Administration, Federal Highway Administration, Texas Transportation Institute, U.S. Army Corps of Engineers, U.S. Bureau of Transportation Statistics, U.S. Census Bureau, U.S. Department of Commerce, U.S. Department of Transportation.
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FACTS & STATS
Logistic Statistics
2010 State Michigan Illinois Ohio California Texas New York Pennsylvania Washington Minnesota Indiana
Value $60,683 $43,136 $29,825 $31,509 $25,920 $28,998 $18,850 $18,615 $12,848 $16,025
Rank 1 2 4 3 6 5 7 8 10 9
2011 Value $68,412 $53,845 $33,123 $31,331 $30,608 $30,076 $21,097 $20,250 $18,193 $17,714
Rank 1 2 3 4 5 6 7 8 9 10
% Change 12.7% 24.8% 11.1% -0.6% 18.1% 3.7% 11.9% 8.8% 41.6% 10.5%
Source: U.S. Department of Transportation. Ranked by 2011 Surface Trade Value (millions of dollars).
State
# Of Road Bridges Ohio 28,033 Illinois 26,337 Indiana 18,548 Kentucky 13,849 Michigan 10,928
Rank Structurally Deficient 2 9.78% 3 8.50% 18 10.65% 19 9.47% 25 13.15%
Rank Functionally Obsolete 29 13.76% 35 6.69% 26 10.93% 30 21.66% 13 11.80%
Rank 23 45 32 8 31
Source: U.S. Department of Transportation. Ranked out of 51.
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www.buildingindiananews.com
Ports of Indiana 2011
Success called. We answered. September 13,2012 begins at 5:00pm Avalon Manor • Merrillville, IN. register at: thebigschmooze.com
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CONSTRUCTION
COASTING ALONG
By David Wellman, Northwest Indiana Regional Development Authority
North Coast Distributing’s new distribution center in Valparaiso means better service and selection for customers Contractor List Owner Contracted Firms Precision Distribution Consulting, Inc. – York, PA Advanced Communications – Michigan City, IN (Audio/Visual & Structured Cable) Kramer & Leonard – Chesterton, IN (Office/Training Room Furniture) B&K Equipment – Lansing, IL (Fuel Tank) ICC Mechanical, Inc. – Valparaiso, IN (Cooler) Signature Graphics – Porter, IN (Murals) Northwest Indiana Fence – Valparaiso, IN (Security Gate) Alert Alarm, Inc. – Merrillville, IN (Security & Fire Alarms) Larson-Danielson Contracted Firms Design Organization – Valparaiso, IN (Concept & Office Design) Harris Architects – Palatine, IL (Building Core & Shell) Torrenga Engineering – Munster, IN (Civil Engineering) D&M Excavating – Michigan City, IN (Sitework & Utilities) Rieth-Riley Construction – Gary, IN (Site Concrete & Asphalt) Lakeshore Landscaping – Valparaiso, IN (Landscaping) Concrete Constructors – Westville, IN (Building Concrete) DuKane Precast – Naperville, IL (Precast Concrete) Adams Masonry – Dyer, IN (Masonry) Wilson Iron Works – Crown Point, IN (Structural Steel Supply) Chicago Steel – Merrillville, IN (Steel Erection) Larson-Danielson Construction – La Porte, IN (General Trades) Phil Konrad & Sons – Knox, IN (Architectural Millwork Supply) Korellis Roofing – Hammond, IN (Roofing) Lazzarro – Merrillville, IN (Frames, Doors & Hardware) House of Doors – Brookfield, IL (Overhead Doors) Meyer Glass & Mirror – Michigan City, IN (Aluminum Curtainwall & Glazing) Huggett Betten – Stevensville, MI (Gypsum Board Systems & Ceilings) Interior Finishes – Osceola, IN (Floor Coverings) Prime Coat Corp. – Waukegan, IL (Epoxy Floor Systems) Stan’s Painting & Decorating – Hobart, IN (Painting & Wall Coverings) W.E. Carlson Corp. – Elk Grove, IL (Loading Dock Equipment) Otis Elevator – Lombard, IL (Elevator) Shambaugh & Son – Mishawaka, IN (Fire Protection) Keough Mechanical – Merrillville, IN (Plumbing) Bloomfield Mechanical – Portage, IN (HVAC) Circle R Electric – Portage, IN (Electrical)
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N
orth Coast Distributing’s new 215,000-square-foot headquarters and distribution facility in Valparaiso means more jobs for the region and increased business opportunities for the company. “We saw some opportunities out there, but if we wanted to continue to grow, we needed a bigger facility,” says Vice President George Douglas. Chief among those opportunities was further expansion of the beer distributor’s selection of craft beers. Though craft beers remain a small segment of the overall beer market—5.7 percent by volume and 9.1 percent in dollar terms in 2011 according to the Brewers Association—they are growing at double-digit rates while the total beer market is shrinking. The larger facility gives North Coast more space for craft products, as well as the mass-market brands like Miller and Coors. “This will enable us to go out and aggressively market ourselves,” Douglas says. It also will allow North Coast to make its operations in northern square feet of space in South Bend that was servicing customers in northwest Indiana. Those customers can now be serviced out of the new building, and the leased space in South Bend was reduced to 25,000 square feet to save money. Initially, the company wondered if moving out of Valparaiso made sense. “We worked with a distribution center consultant who looked at things like our market area, who are customers were and the frequency of deliveries,” Douglas says. “From a logistics standpoint, this area, with its access to the toll road (I-90) and Ind.-49, was the ideal spot.” The www.buildingindiananews.com
company chose a 35-acre parcel in Valparaiso about a mile from its existing headquarters. To sweeten the deal, Valparaiso granted a 10-year tax abatement on property and a five-year abatement on equipment, which cost “north of $17 million,” Douglas says. The abatements will save the company about $1.3 million in taxes. Valparaiso also expanded a TIF (tax increment financing) district in order to build a road and extend sewers and utilities to the site of the new building. The city’s redevelopment commission agreed to pay $4 million to purchase North Coast’s old 125,000-squarefoot facility on Silhavy Road, which now is for sale. If no buyer is found, the commission will turn the building over to the city for development as the new campus for the Department of Public Works. For construction of the new distribution center and headquarters, North Coast turned to Valparaiso-based Larson-Danielson Construction. “They are a repeat customer,” says Terry Larson. “Three years
www.buildingindiananews.com
ago we did a 90,000-square-foot distribution center in Columbia City for one of their subsidiaries, Five Star Distributing. So that gave us a lot of exposure to their requirements on everything from temperature control and storage to how they load trucks and the levelers they use on loading docks.” Larson-Danielson paired its technical knowledge with that of Design Organiza-
“The design really captures the essence of their business.” - Terry Larson of Larson-Danielson Construction
tion, a Valparaiso-based design firm that developed the 30,000-square-foot office and headquarters portion of the project. “The design really captures the essence of their business,” Larson says. Design elements include conference rooms named “Barley” and “Hops,” and a training room that includes a full-scale bar. The
lobby features a fully restored 1800s-era beer wagon that was found in a Wisconsin barn. The Valparaiso office is much larger than the 8,000-square-foot office that Larson-Danielson built for the Five Star facility because it serves as North Coast’s corporate headquarters and primary training location. The 13-month project went smoothly. “We had a great team of subs out there as well as a great group of trades personnel,” Larson says. Only one major change was made during construction, the decision to use concrete instead of asphalt on the loading dock. Asphalt would have been cheaper, but concrete is more durable and lasts longer, Larson says. Larson-Danielson built the facility under a lease agreement with North Coast. They would own the facility, and North Coast would lease it from them. However, after completion, the distributor exercised an option to buy the building. North Coast was expected to hire at least 16 new employees as a result of the expansion.
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Contractor List for Confined Disposal Facility and Dredging Site Preparation Environmental Quality Mgmt.
CONSTRUCTION
Ground Water Controls Dyer Construction Company Interim Groundwater Treatment Plant Great Lakes Carbon Treatment South Cutoff Wall Sevenson Environmental Services Subsurface investigation & Cutoff Wall Environmental Quality Mgmt. Dredging, joint venture Kokosing, and O’Brien Final Dike Rausch Construction
Dredging up Capacity Indiana Harbor and Ship Canal will boost capacity with Confined Disposal Facility completion By Adam Madison
I
The canal has not been dredged since
Association. “Our ships lose anywhere
the Clean Water Act of 1972, which made it
from 50 to 270 tons of cargo for each inch
illegal to willfully discharge the sediment
of draft(vessel below the water line).”
ndustry has reason to celebrate now that the Army Corps of
on account of diminished capacity upon
Engineers has finalized a contract to begin dredging the Indiana
vessels. During peak demand when all
Harbor and Ship Canal following the completion of a Confined Disposal Facility.
This represents a substantial hit to
sediment was routinely dredged from the canal and dumped into Lake Michigan. With this no longer an option, industry was faced with the challenge of finding a suitable storage facility. Meanwhile, approximately 1.8 million cubic tons of sludge accumulated, which greatly reduced shipping capacities of industries
“Dredging is very critical, our ships lose anywhere from 50 to 270 tons of cargo for each inch of draft(vessel below the water line).” - Glen Nekvasil, vice president of communication of Lake Carriers Association
very
the industries dependant upon the canal
of
that must absorb higher freight rates
48
of
Lake
Carriers
by supply chains managed on Great Lakes vessels, Nekvasil says. The CDF can be seen from U.S. Highway 41 but might be mistaken for a hill topped with overgrown grass if it were not for the fence lined with blue dust barriers and marked “No Trespassing: U.S. Government Property.” That picturesque hill is actually a dike, wrapping 186 acres of property that can be compared to a giant soup bowl to U.S. Army Corps Project Manager Mike
critical,”
explains Glen Nekvasil, vice president communication
marks a win for all businesses impacted
built to hold dredged material, according
built along the canal. is
be entirely off limits to shipments. The completion of the CDF in East Chicago
into American waters. Prior to the act, the
“Dredging
vessels work at capacity, the canal could
Nguyen. Despite the simplicity of this concept, it was a project that took more than a decade to develop. www.buildingindiananews.com
The first challenge was to find a suitable site and convince a skeptical public that its backyard was the prime location. East Chicago offered canal-side property on an abandoned brownfield that was once home to an oil refinery. The city took ownership of the property following the bankruptcy of the energy company. The court ordered the property leveled and covered with topsoil, and all remaining assets (about $8 million) were diverted to the East Chicago. Moving ahead, the Army Corps was presented with several challenges, Nguyen says. The first was how to proceed without creating an environmental threat to the surrounding areas. Monitoring contamination was virtually impossible because all adjacent property was rich with similar pollutants. Therefore, the Army Corps took additional care to develop plans with zero risk of error when moving forward. The next challenge was to prepare the ground, but it wasn’t as easy as bulldozing a green-field site because underneath
The sediment dredged from the Indiana Harbor and Ship Canal will be stored in a Confined Disposal Facility located in East Chicago. The site was chosen for its proximity to the canal. However, the neighboring industries on equally contaminated land will make monitoring the the site more difficult.
contract to a joint venture by Kokosing
which includes a special fitting to prevent
Construction and O’Brien. Material will be
contaminates from seeping out.
removed from the harbor by a clamshell dredge with an “environmental bucket,”
The clamshell will release its load into a hopper barge that will later be pushed
the surface was a precarious network of pipeline and oil tanks. These had to be removed and hauled off in accordance with federal standards. The goal was to reach a depth of 30 feet, so that bentonite slurry could be injected to form walls around the perimeter of the site. Bentonite dries similar to concrete but does not have pores through which contaminants may seep. The CDF was further reinforced by water-tight steel pile sheets reaching depths of 77 feet. Nguyen says the steel sheets were custom designed with interlocks that allowed for the injection of bentonite. A similar wall was installed at the edge of the canal to completely seal off the water from the CDF. The cutoff walls of the CDF were later covered with additional material to further accommodate the storage and take on a more natural appearance from the outside. The final dike was completed by Rausch Construction. With the CDF complete, the Army Corps is finally ready to commence dredging and has awarded a $1.8 million www.buildingindiananews.com
49
by a tugboat to the CDF. The sediment will then be pumped in hydraulically. As contaminated material collects, gravity will do most of the work because the pollutants are a higher density than water and will settle to the bottom. The water resting on top of the muck will be treated by an off-the-shelf water treatment facility for
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discharge back to the canal. During the project, a long-term air monitoring program will collect air samples from four locations on the perimeter of the CDF. Air quality is of the utmost concern, as the site is located near East Chicago Central High School. Samples will provide quantitative data on the release of cancer-causing pullutants. The database will help determine background levels of the air-borne toxins to
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respond to public inquiries about air quality. The chemicals being stored and monitored will include PolyChlorinated Biphenyls (PCBs), Polycyclic Aromatic Hydrocarbons (PAHs) and Volatile Organic Compounds (VOCs). “Right now the capacity of the CDF is 4.8 million cubic yards. The backlog dredging, basically the amount of material to restore the navigational channel is about 1.8 million cubic yards,” Nguyen says. “We have designed this CDF to receive nonfederal dredging material. Basically any of the industries that need to dredge to maintain their docks could choose to place that dredge material into this CDF if they pay the appropriate fees and all of the dredging costs.”
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NWIBRT 2011 SAFETY AWARD RECIPIENTS CONTRACTOR OF THE YEAR Brandenburg Industrial Service Company ROGER WALTERS MEMORIAL AWARD Frank Deller Graycor Industrial Constructors, Inc. EXCELLENCE AWARD Ambitech Engineering Corporation Atlantic Plant Services, Inc. Brandenburg Industrial Service Company CET Incorporated Comprehensive Safety Cornerstone Electrical Consultants, Inc. Culver Roofing, Inc. Falk-PLI Engineering & Surveying Interstate Environmental Services, Inc. M&O Insulation Co. Meade Industries Middough, Inc. R.J. Mycka, Inc. Superior Construction Co., Inc. Total Safety U.S., Inc.
ACHIEVEMENT AWARD The American Group of Constructors Amex Nooter, LLC G.E. Marshall, Inc. Manta Industrial, Inc. Mersino Dewatering, Inc. Safway Services, LLC Security Industries, Inc. RECOGNITION AWARD ACMS Group, Inc. AMS Mechanical Systems, Inc. BMW Constructors, Inc. DLZ Industrial, LLC EMCOR Hyre Electric Graycor Industrial Constructors, Inc. Hasse Construction Company, Inc. Hayes Mechanical KM Plant Services, Inc. Larson-Danielson Construction Co., Inc. The Pangere Corporation Sargent Electric Company Solid Platforms, Inc. Thatcher Foundations, Inc. Tonn and Blank Construction Tranco Industrial Services, Inc.
NWIBRT Members
Porter County Career & Technical Education
For a List of Subscribers and Membership Info visit us at www.nwibrt.org Northwest Indiana Business Round Table (NWIBRT), 1506 Springville Road, La Porte, IN 46350
LOGISTICS
On the Right Track Continued investments in Indiana’s network of railways keep Indiana booming By Bill Lucaitis, President of Tranco
R
ecently, Indiana officials have been boasting new jobs growth as more manufacturers look at our state as a viable option to grow their companies. One of the most appealing characteristics is a world-class transportation system that positions companies within reach of their customer base and allows a steady flow of incoming and outgoing supplies. Indiana is well situated among a mass of land, air and water transportation hubs; the majority of which
is interconnected through—railways.
Railroads can be used as an economic development tool, linking Indiana to worldwide markets and making Indiana businesses more competitive. This 52
is evident by several new projects in northwest Indiana in which access to a rail system was the key factor. Potash Corp.’s new fertilizer facility in Hammond,
Rattner Steel at the Port of Indiana, and the large investment CN Railroad is making in Kirk Yard in Gary. Today, Indiana’s economy remains www.buildingindiananews.com
highly dependent on the rail system servicing the energy, agriculture, construction and manufacturing industries. Indiana has one of the highest concentrations of rail service routes in the country, with more than 4,000 miles of track and 43 railroads. In 2009, Indiana railroads carried a total 0f 247 million tons of freight. Ninety of Indiana’s 92 counties are served by at least one rail carrier. The economies supported by these systems easily could fall into jeopardy if these rails are inappropriately maintained. Maintenance is increasingly important, as railroads continue to take on heavier loads more frequently. Typical rail maintenance includes the replacement of rails and railroad ties, and the surfacing and aligning of track to proper vertical and horizontal elevations. The standards for inspections and condition of track is set by the Federal Railroad Administration based on train speeds. Servicing these railways is a business in itself, which requires numerous independent suppliers and services. Maintenance work for freight railroad primarily is privately funded by the railroad. Some federal funding is available to the railroads under the recently In 2009, Indiana passed MAP-21 surface transportarailroads carried a State of Indiana tion bill, and the Industrial Rail Ser- total of 247 million vice Fund and tons of freight. Grade Crossing Fund. Progress Rail Services recently opened a locomotive facility in Muncie. Western Cullen Hayes manufactures rail products, and there are several railroad-tie manufacturers in southern Indiana. While much progress has been made, there remains the need for investments on account of accidents and overuse of existing lines. Derailments caused by catastrophic failures of railroad bridges or track impacts both the railroad and the surrounding communities. The railroad impact is a less efficient rail system due to re-routing around the derailment, and the community impact can be evacuations when hazardous chemicals are involved. Both of these factors are detriments to Indiana’s economy. In the near future, Indiana businesses may reap the benefits of decongestion projects of key locations such as the Gateway Project in Porter, where they are decongesting the Norfolk Southern and AMTRAK, and CREATE in Chicago where they are separating all freight traffic from passenger traffic through the city. Commuter trains also will be experiencing fewer delays as our local commuter South Shore Railroad will no longer have to share track with freight. These projects will result in more efficient movement of freight by rail in and out of Northwest Indiana. In addition, the separation of highways and railroad crossings by running the roadway under or over the tracks improves the safety and efficiency of the rail system and the highway system. These continued improvements will only continue to bolster the economy and lure new businesses to the area. However, failure to maintain these systems can just as easily turn these companies away. www.buildingindiananews.com
Building
Innovation
into Everything We Do.
Commercial Project of the Year
WINNER
North Coast Distributing, Valparaiso, IN ■
Design/Build
■
Construction Management
General Contracting ■ Facility Services ■
Tell us your vision.We’ll bring it to life.
www.ldconstruction.com 302 Tyler Street • LaPorte, Indiana 46350 (219) 362-2127 • FAX (219) 362-2848 53
CONSTRUCTION
Wrapping up Energy Savings Insulating pressurized-steam systems can substantially reduce energy costs By Adam Madison
M
ost commercial buildings— hospitals, processing plants, high-rises, refineries—rely on pressurized-steam systems as a primary heat source for both operations and climate control. Depending on a facilities monthly energy bills, an audit of these systems might be in order. Most commonly, natural gas is used to fire a burner within the boiler, which heats water-filled boiler tubes. The steam generated is injected throughout a series of pipes in order to transfer heat. As heat is lost, condensation occurs and water is transferred back to the system where it is reheated with more gas. Therefore, the efficiency of these systems is measured by their ability to retain heat without relying on excessive amounts of natural gas. Heat often is lost through the pipes passing through the building, especially 54
at the valves and fittings, explains Gerry Stolarz, vice president of operations for Atlantic Plant Services. Insulating these components often is a quick fix for companies looking to reduce energy costs and carbon footprints. Also, minimizing condensation reduces the risk of corrosion and helps prevent mold from accumulating. Other times insulation is installed as a safety measure to protect workers from dangerously hot pipes.
“If there isn’t insulation on it (pipes), it costs more money to maintain the steam at specific temperatures. Most of the time they are missing insulation.” Bill Kuhlman, business development for Atlantic Plant Services
Atlantic Plant Services is owned by the Houston-based company Brock, which regularly audits facilities across the country in search of inefficiencies to correct. This audit system has become one of the company’s most effective sales tools, Stolarz says. However, determining the
cost effectiveness of installing insulation is a complicated and often time-consuming process. “If there isn’t insulation on it, it costs more money to maintain the steam at specific temperatures,” says Bill Kuhlman, business development for Atlantic Plant Services. “Most of the time they are missing insulation.” It is Kuhlman’s job to determine if a company would benefit enough to warrant the cost of insulation and, if so, which methods to apply. Depending on the size of the facility, an audit can take several days, as his crews chase the pipe of steam systems with infrared cameras to expose the points of heat loss throughout the system. Kuhlman also sits down with clients to analyze monthly heating bills, and compares the installation costs to the predicted savings. Generally, hotter pipes benefit the most from insulation because it takes more energy to maintain higher temperatures. Many variables contribute to the www.buildingindiananews.com
cost of an installation. Kuhlman first considers access to the pipes to determine an installation’s level of difficulty. Outof-reach and tight spaces may warrant a larger bill, he says. The temperature of the pipes determines the insulation thickness as well as the type of material used. Fiberglass and calcium silicate are the most common materials. PVC is another option, Kuhlman says. Depending on the application and the location, the insulation will need to be further enclosed by a jacketing. He says stainless steel is popular in the food industry, as it helps facilitate cleanup where bacteria and other contaminates are a concern. Aluminum, however, is more standard and provides adequate weather resistance outdoors. While it is difficult to estimate the cost of an insulation project without a thorough inspection, Kuhlman says that the average long-term savings is eight to nine percent. Most companies proceed with a two-year rule on the return on
investment. To further persuade clients, Kuhlman helps coordinate various rebate programs, tax incentives or grants available to commercial facilities. Kuhlman says he often relies on www. dsireusa.org when searching for available programs. For example, NIPSCO offers rebates to commercial customers for the installation of several types of efficient
natural gas appliances, as well as certain equipment upgrades and tune-up services. Kuhlman says he has been successful in finding incentive programs in most states in which he has worked. Usually the end result is lowered operating costs and reduced carbon footprints, which, in the long run, are good for everyone.
Energy Savings Despite the size or age of a commercial building, there always are opportunities to reduce energy consumption. More often than not, the best opportunities are in uninsulated valves. Fact: Properly insulating one valve could potentially save: • 49 million BTUs of heat loss • 7,600 pounds of CO2 emissions • $600 in total energy savings SOURCE--Local 17 - Heat and Frost Insulators
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WELL BEING
Quit for Indiana Kicking the habit makes a direct impact on the state’s bottom line By Angie Tsikouris, Director of Marketing, Spine Care Specialists
T
he Indiana smoking ban is now in effect, apparent by the signs posted on nearly every restaurant and local business in the state. While some restaurant owners may quibble about property rights, this is a heart-healthy concept that all businesses should embrace not because smoking is unhealthy but because it is
56
uneconomical. Indiana, which is said to have the fifth-highest rate of smoking in the nation, has a hugely negative impact on the overall cost on our nation’s healthcare. Indiana alone loses billions in healthcare costs on account of this bad habit. An additional $2.2 billion is lost in productivity each year, according to report released by Ball State University’s Global Health Institute. Obviously, regular trips to the company parking lot for five minutes of indulgence represents time that could have been spent working. Businesses also lose productivity on account of time-off requests due to illnesses directly connected to tobacco use. These statistics are taken very seriously by companies looking to expand facilities in new states. The Indiana Chamber of Commerce is well aware that a healthy workforce is more productive, which contributed to
its advocacy for the bill. Now the chamber is looking ahead and would like to encourage even further measures to curb Hoosiers’ bad habits, according to the Jeffersonville News and Tribune. The Chamber President Richard Brinegar advocates higher taxes on tobacco products, additional regulations and repeal of a so-called “smoker’s bill of rights,” that forbids employers from forcing smokers to pay higher out-ofpocket costs for health insurance. He also hopes to see exemptions for bars and casinos eliminated from the smoking ban in the near future. Very gradually Hoosiers are taking baby steps in the right direction as more people admit to the dangers of smoking. Between 2001 and 2010, the smoking rate in Indiana declined from 27.4 percent to 21.7 percent, according to the Behavioral Risk Factor Surveillance System. However, that’s still well above the national average of 17.3 percent. Only time will tell what impact the recent ban will have. Many hope that it will serve as a jumping-off point for local municipalities to adopt even stricter guidelines. Business-savvy institutions, however, are even further ahead of the game. Indiana University Northwest first went tobacco-free Jan. 1. 2008. The university reports that the state-wide ban is helping take their initiative to the next level by giving campus police the legal authority to make citations. IUN also makes smoking cessation programs www.buildingindiananews.com
encouraging for university administrators affect the entire CDC workforce. HWI’s available to both students and faculty. The most popular is the Quit for Life considering stronger tobacco control activities are guided by an advisory committee made up of representatives program, which is a tobacco treatment policies.” A similar program known as the from many CDC centers, institutes, offices program available to full-time academic Worksite Initiative was and locations. and staff employees, and spouses enrolled Healthier In its Atlanta office, the center even in Indiana University medial plans. It developed by the Centers for Disease provides quitting aids that help determine Control and Prevention. The initiative renovated the facility with better stairs, a the best procedures, which may include was first developed specifically for its own new cafeteria at headquarters and walking free nicotine replacement projects such employees. However, this program is all trails. Now the CDC has tangible evidence as patches or gum. Also, tobacco users are encompassing and addresses physical that these initiatives work and put in contact with certified serves as a benchmark for “quit coaches” that provide The recent Indiana ban on smoking is just one more other companies interested in comfort over the phone. “Although we haven’t example of America’s health movement. In today’s developing healthier working pinpointed which element modern world, it is no longer just a personal decision environments. The recent Indiana ban of the campus-wide smokewhen deciding what is right or wrong for our health. on smoking is just one more free-air policy contributed the example of America’s health most to the positive changes movement. In today’s modern in students’ smoking rates, having such a policy in place does appear activity, nutritious eating, preventive world, it no longer is just a personal to influence students’ smoking-related health screenings, and making healthy decision when deciding what is right or wrong for our health. If we choose to norms and behaviors even without choices. Since its inception, HWI has worked make bad decisions it impacts our families strong enforcement of the policy,” says Dong-Chul Seo, associate professor in on a number of demonstration projects, and coworkers, but also the company’s IU’s School of Health. “These results are policies and environmental changes that bottom line.
www.buildingindiananews.com
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LIFELONG LEARNING
Workforce Logistics
Nonprofit prepares incoming workforce for careers in manufacturing and logistics
By Adam Madison
T
he Crossroads of America offers a unique opportunity to the Indiana economy, offering more careers in logistics and transportation than most other parts of the country. Maintaining this stronghold requires continued investments, especially in regards to workforce training and development to keep the wheels turning. Indiana is home to 14 federal highways, 4,200 miles of Class I railroad, three international ports and the second largest FedEx hub in the United States. It upholds a massive network of trucking and warehouse distribution centers. A workforce of 250,000 helps move 724 million tons of freight through the state each year, the Indiana Economic Development Corp. reports. The vast array of transportation systems, coupled with low operating costs in terms of taxes and regulations, provides an attractive prospect to manufacturers looking to grow their companies, explains Dave Holt, Conexus Indiana vice president
of operations and business development. These companies are just as interested in the quality of the available workforce to fill the positions they create. Conexus Indiana is a nonprofit, public- and state-funded organization tasked with bringing young Hoosiers up to speed. It was born 20 years ago through Indiana corporate partnerships of CEOs from Fortune 500s and leading-university
Indiana is home to 14 federal highways, 4,200 miles of Class I railroad, three international ports and the second largest FedEx hub in the United States. presidents. Their collaboration uncovered manufacturing and logistics as the top two areas for future growth in the state. However, there also was increasing concern of a skills gap among the youth set to fill the shoes of retiring talent. Today’s manufacturing and logistics
jobs demand increasingly advanced technical skills; the majority of workers in this sector have now completed a college degree or industry training credential. With a rapidly aging workforce, employers have struggled to identify and hire younger employees with appropriate education. Now, Conexus Indiana is set to launch the nation’s first high-school level, credential-based advanced manufacturing and logistics curriculum pilot program. Eight schools will offer the program in the fall, but Holt says up to 60 will be added statewide during the next two years. What is unique about the program is that the curriculum is drafted by the business community rather than academia. Students can expect to learn about the history of manufacturing; its processes, finances and logistics, as well as six sigma and lean strategies. “It became clear that we need a new model to train the next generation of manufacturing and logistics workers,” said Conexus President & CEO Steve Dwyer. - continued on the next page
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IN SAFETY, QUALITY & SERVICE SINCE 1938! INDUSTRIAL CONTRACTOR OF THE YEAR 2012 CAF
TAUC AWARDS OUTSTANDING SAFETY PERFORMANCE 2010/2011
EXCELLENCE AWARD 2011 NWIBRT
“Our goal is hand-in-hand collaboration between industry and academia to create the right programs that are teaching the skills that employers really need, a pathway to employment that begins in high school.” Indiana Superintendent of Public Instruction Tony Bennett agrees that more options for teaching an advanced manufacturing and logistics curriculum are a welcome addition. “We’re working every day to make sure students leave high school with the skills they need to be successful,” Bennett says. “When schools and private companies can work together to develop and implement a quality curriculum, they create more pathways to connect students to highpaying careers in their future.” By doing so, Holt hopes to alter the perspective of many students that never believed manufacturing and logistics to be valid career choices. The word manufacturing too often summons visions of dark, dirty and dangerous atmospheres that are more common to foundry.
High Schools Offering AML: •
• •
George Rogers Clark High School & Area Career Center (Hammond) Area 31 Career Center at Ben Davis High School (Indianapolis) The Excel Center (Indianapolis) Terre Haute North High School North High School and Southern Indiana Career/Technical Center (Evansville) Batesville High School Central Noble High School (Albion)
•
North High School (Fort Wayne)
• • • •
“Those types of jobs are gone,” Holt says. “These are high-tech jobs where everything is computerized. If you walked into most of these facilities, you could eat off of half the floors.” And several Indiana companies such as Allison Engine have agreed to open their doors to tours through an “A+ industry partner” program. Once students are hooked, this program will serve as the first stepping stone to a long career. The curriculum also offers
dual-credit opportunities that will position students to successfully pursue relevant certifications, associate degrees or fouryear programs after graduation. Through development of this course, the Conexus Logistics Council developed a precise “skills template” to determine exactly what skills students should have upon graduating from the high school program, as well as a twoyear degree. It also has begun working with Harrison College, Vincennes University and Ivy Tech. Those engaged in these programs should be first in line for interviews with manufacturing or logistics companies, perhaps right out of high school. As they continue their paths, 4-year degree programs already are in place throughout the state. Holt cites Indiana University for its supply chain program and Purdue University for road building and civil engineering. MBAs also are available to drive students into executive management positions and maintain Indiana’s well-oiled manufacturing machine.
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SHAMBAUGH & SON, L.P. CONTRACTORS • ENGINEERS • SERVICE SINCE 1926 For over 86 years, Shambaugh & Son has been nationally recognized for its quality programs, successful repeat business performance, worldclass innovation, fast-track capability, and cost control. From our humble beginnings in 1926, Shambaugh has matured into a customer-driven, single-source, self-perform Engineering and Construction firm. Today, Shambaugh is the largest specialty contractor in Indiana and is ranked the 3rd largest in the United States. We are proud to have worked with Parkview for 54 continuous years! We are Indiana’s only specialty contractor who: • Provides both Engineering and Construction services “in house” for the 10 broad disciplines of Mechanical, Plumbing, Process, Refrigeration, Electrical, Process Controls, Water and Waste Treatment, Fire Protection, Temperature Controls, High Voltage and Low Voltage Systems. • Has a Commitment to Quality which is unmatched with our ISO 9001:2008 Certification.
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WELCOME CENTER
Restoring Beauty
By Adam Madison
City of Gary celebrates the restoration of a historic landmark, Marquette Park
M
ayor Karen Freeman-Wilson has a vision for the city, which involves pristine beaches and summer homes for wealthy Chicagoans. Today she is one step closer to fulfilling that goal with the recent completion of the Marquette Park Lakefront East Project. Beyond the industrial landscape of U.S. Steel for which the city is more renowned, lies the Indiana Dunes Lakeshore that begins in the Miller Beach community on Gary’s east side. Marquette Park provides 241 acres of the sacred refuge, which now includes walking trails to connect to what has been historically called West Beach. It is one of Northwest Indiana’s most admired and historic regional parks. The city worked closely with Hitchcock Design Group and Gariup Construction to enhance access to and throughout the park, preserve and strengthen the park’s natural features, provide new recreational and educational amenities, and restore the park’s signature historic facilities. The rehabilita62
tion and new improvements will help re-establish Marquette Park as one of Northwest Indiana’s premiere lakefront destinations, enhancing the quality of life for citizens of Gary and residents of northwest Indiana. A key feature is the new events area, which recently provided a new perspective for patrons of the Gary South Shore Air Show. It was converted from Lake Street Beach and a playground area. The newly renovated pavilion is expected to draw additional people interested in hosting events at the park, Freeman-Wilson says. The historical aspects of the building have been enhanced, new lighting has been installed and new windows have enhanced the design. It was first constructed in the early 1900s. A new concession area and outdoor lighting also are in the works. “I had my wedding reception at the pavilion. That was 21 years ago,” FreemanWilson says. “It was a beautiful location then, and it is even more beautiful now.” The most recent phase of construction, which was completed in June, consoli-
dated the main parking lot that connected the Aquatorium and the picnic pavilion. Total cost of this phase was $1.5 million. Total cost of the project acceded $30 million, which was paid for by funding through northwest Indiana’s Regional Development Authority.
Recent bid winners for this phase include: • Gariup Construction $3.1 million contract to handle the general trades and site development. • Great Lakes Electrical
Management $1,528,054 for electrical work; Rieth-Riley, extensive asphalt work for the phase. • Hubinger Landscaping
Corp. $800,000 for landscaping.
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Attendees of the pavilion’s ribbon-cutting ceremony mingle beneath the enhanced lighting and skylights of the building’s interior.
QUALITY INTEGRITY RELIABILITY • Industrial & Process Piping • Equipment Rigging & Setting • Special Alloy Welding • Code Welding • Plant Maintenance • Power Generation • Steel Manufacturing
City officials and other community leaders participate in the ceremonial groundbreaking in front of the recently refurbished Marquette Park Pavilion.
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Gary Mayor Karen Freeman-Wilson participates in a ribbon-cutting ceremony to launch the opening of the newly renovated pavilion.
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ILLINOIS LOCATION 140 E. Tower Drive • Burr Ridge, IL 60527 TOLL-FREE: (800) 794-5033 Tel: 630-887-7700 • Fax: 630-887-0770
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MARKETING
Embed Your Brand
Maintain constant awareness in the consumer’s mind with consistent specialties By Ryan Riverside
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pecialties, the art of branding a company through proper utilization of an endless array of useful items, amounts to more than a collection of stolen pens or beer huggies randomly dispensed at summer festivals. It is a multibillion-dollar industry that when implemented correctly can thrust a company’s brand in front of the consumer’s eyes to permanently engrain itself. The trick to a successful specialties campaign is to associate the company name and logo with useful and wanted items rather than excessive junk. Specialties step outside the normal scope of your business. It may include any item, which can successfully display information via ink, paint, embroidery, etching or engraving. They may span the incredibly cheap to the outrageously expensive: refrigerator magnets from the local pizza parlor, bottle openers from a soda manufacturer, canvas jackets from construction companies, or even the notorious pink Cadillac from Mary Kay. Take a moment to think about some of the things in your home that you use in a pinch. When jotting down a phone message, you grab a pack of Post-its that highlight a company’s contact information. The pilot light on the stove goes out, and you grab a local club’s or hotel’s book of matches. You get cold, so you throw on your old college hoodie. You need a wakeup, so you pour a steamy cup of coffee into your rival company’s mug. As the caffeine kicks in, you plan your day on a calendar provided by a local restaurant, which you subconsciously think about 365 days a year. 64
Specialties are everywhere and involved in nearly every part of your life. They are a vital part of branding your company that exposes your company to new people. Providing a useful product maintains permanence in the thoughts of potential clients and customers. If you choose something trendy enough, other people might want that product by itself. At this point companies may make the leap from specialties to licensing, a lucrative business that has been mastered by the likes of Caterpillar, Harley Davidson and collegiate sports. 1. The Gesture Current and potential customers see that your company is willing to spend a little extra to ensure happiness. This small service speaks volumes and might settle the difference between you and your competition. People love free gifts, no matter how small or insignificant they seem. They’ll eventually associate your company with the good nature behind free stuff rather than the sales-focus behind the competitor’s advertising. 2. Your Brand Also, consider the value of consistency. One of the best tools for developing a brand is maintaining a consistent image everywhere your company is mentioned. The best example of this is McDonalds, which has used the same marketing slogan and branding for years: “I’m lovin’ it.” Consistency is vital to expanding your company’s influence and market share. If you keep the same image and style through everything
your company does, from products and letterhead to commercials and specialties, the image of your company’s logo will engrain itself in customers’ minds. 3. Start Small Try starting small by distributing stress balls, but do so in a way which is not pointless or annoying. If you are a small business which is just starting, keep personalized pens with your logo and contact information in the office and reception area. Have your sales team take pens to meetings. If they get the sale, have the client use your pen to sign the dotted line. 4. Go Big For higher-stakes sales, something a little more substantial, such as a logo-etched wine bottle, might make a better item. One of the biggest things to keep in mind with marketing is that there is no tried-and-true formula for success. It’s all about tailoring your actions to what your clients need. An etched wine bottle might be better suited for an executive merger but would be inappropriate for the average person getting their oil changed. The scale of the gesture should match the scale of the sale but avoid being too elaborate. 5. Clarity In every aspect of your marketing campaign, make sure your audience understands who you are and what your purpose is. Too many companies shoot themselves in the foot with mixed messages. Using specialties is an easy way to correct this www.buildingindiananews.com
through consistency. Once logos, creeds and standards are established at every point of contact with the public, maintaining that image will help retain customers. Inconsistency in marketing will, at best, lead to phone calls from confused people. At worst, it will lose current or potential customers. When you establish a consistent image (and back it up with a solid product and great customer service), people will remem- ber you before the competition. They will mentally link your logo and branding to a problem which needs a solution, whether that be hunger or roof repair. If you aren’t already using specialties and promotional items to market your company, you are missing out. Specialties help gain a foothold in current and potential customers’ lives. Business cards grant your company a place in their wallet, but are not useful by themselves. Providing specialties puts your business card on an item the client will use repeatedly, and perhaps even pass on to others. Marketing through specialties is a matter of staying in the customer’s mind, not in selling a direct product. BR_1_4_ corp_ad.pdf
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ECONOMIC DEVELOPMENT
Planning for fun State is ready for new and old challenges as fair approaches By Adam Madison
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his August, Indiana State Fair returns to Indianapolis, bringing with it the potential for an estimated $26.2 million infusion to the local economy as an anticipated 875,000
guests flood the state capital. People are drawn from all corners of the state and hotels fill months in advance, explains State Fair Spokesman Andy Klotz. He credits the state’s rich agriculture history and the prominence of the 4H Club, coupled with the diversity of Indiana’s urban core. Of course, there is no denying the allure of the fair’s musical lineup that has included acts sometimes as renowned as The Beatles. Food, games and rides also span the sea of venders spread across more than 250 acres of fairgrounds. It’s a tradition, 161 years in the making, but it’s not all fun and games. “It’s a common misperception that we put on the fair and leave at the end of August for an 11-month vacation,” Klotz says. Nothing could be further from the truth. Klotz is part of a 60-member team of state employees that oversee all events on the fairgrounds. For them, the fair is a year-long project, and plans already are being developed for 2013. “By the time we hit February or March, we are going full-steam ahead with planning and finalizing of all the details.” Much of the work is unseen by locals that only begin to feel the state fair’s presence about three weeks prior when vender tents start popping up. A week out, there is constant activity, Klotz says. Many contractors must be hired to manage the more complicated work. In addition, the state hires 800 seasonal staff and recruits another 1,200 volunteers. One of the biggest challenges these employees face is managing a steady flow of traffic in and out of the fairgrounds with some years exceeding 900,000 attendees. Onsite parking can accommodate 10,000 vehicles. A nearby school contracts to provide parking in fields along the north side of the property. Shuttle service also is provided for parking lots farther out, Klotz says. Another 20,000 people arrive on what people call “the fair train,” which is owned and operated by the Indiana Transportation Museum that runs every 45 minutes to and from 66
the north suburb Fishers. A steady stream of traffic is maintained, which Klotz attributes to a recent reconstruction of 38th Street. He also admits that the location at the heart of The Crossroads probably helps bring in additional traffic, although he says he has not seen specific research. However, Klotz says his department always works closely with the city to
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alleviate congestion. Without a positive relationship, events such as the Indianapolis 500 would be impossible, Klotz says. Beyond the trains, shuttles, roadways and parking lots, what helped manage traffic most was expanding the length of the fair from 12 to 17 days. There now is a third weekend for people to plan. The result has been thinner crowds but a longer list in its annual guest book. In fact, the first 17-day fair broke the fair’s record with 973,902 guests in 2009. Today, if traffic is a problem it will likely be a Saturday evening as people pile in for big concerts, some of which have pushed attendance beyond 100,000 for a single night. This will be less of an issue for the 2012 lineup, Klotz says, as concerts are moving from the grandstands of the fairgrounds to the Banker’s Life Fieldhouse in Downtown Indianapolis. This will eliminate the most problematic surge of people from the traffic equation. For those that would like to experience both the fair and a concert, free shuttles are being offered. Also, those that buy concert tickets also will receive a free admission to the fair that can be used on any day. However, Klotz predicts that concert goers are primarily interested in music rather than the food, fun and games. Therefore, he does not predict any major losses in fair attendance. While moving concerts downtown should ease traffic, the plan was first devised in direct response to the stage collapse of 2011 when a 59-mile-per-hour wind took down the grandstand moments before a Sugarland performance. It’s a seven-fatality tragedy that looms over the department and has influenced every aspect of this year’s media coverage. A simple Google search for “Indiana State Fair” will turn up page upon page of accounts. “Every kind of new information was a chance to rehash all of the old information every single time,” Klotz says. “There was video of it, and that makes it live on. They can’t stop showing that video, and that resonates with people.” This, of course, poses new challenges to the public relations department. Klotz hopes some of this will fall away, as they begin marketing the fair’s lineup. Klotz says that the past nine months have been filled with erroneous and sensationalized reports, but people are finally ready to move on. www.buildingindiananews.com
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This is not the first tragedy with which Indianapolis has had to deal. In 1963, a faulty propane tank exploded, killing 74 people during a holiday-on-ice performance at the coliseum. A plaque was recently hung near the coliseum entrance in honor of the victims. While this event is a substantial piece of city history, it no longer provokes the same emotional response that Klotz now deals with in regards to the stage collapse. “As the PR and media director, I understand that we need to be a punching bag when other people can close their doors and say ‘no comment,’ Klotz says. “We can’t do that.” Also, the state instated, David Shaw as the new chief operating officer to oversee protocols and procedures. Jessie Olvera was hired as director of safety and security to manage emergency response plans. A contract also has been secured with a 24-hour weather service to provide immediate updates on site. While Klotz is confident that this
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year’s fair will be safe, success cannot always be predicted in terms of attendance or revenue. No matter who is hired to manage the event or what the musical act might be, there is one factor that has greater influence on the fair than any other. “If it is great weather, we will most likely break records,” Klotz says. “If there is extended heat or lots of down-pouring rain, then the attendance won’t be what it was.”
A healthy workforce. The first step to building a healthy community.
Indiana Tourism Facts: 1.
One in ten jobs is related to the hospitality and tourism industry in Indiana, employing more than 257,000.
2.
Of those, more than 181,000 are directly employed by the tourism sectors.
3.
Nearly $6.74 billion in wages was generated either directly or indirectly because of Indiana’s tourism industry in 2006.
4.
More than 62 million visitors annually travel the state to enjoy its parks, museums, resorts, sporting events and local culture.
5.
More than $10.36 billion is spent annually by Indiana visitors, generating more than $1 billion in state and local taxes.
6.
In fact, in 2006 Indiana visitors generated $901.8 million in state tax revenues and $125.9 million in local tax revenues.
7.
Although Indiana has one of the lowest tourism budgets in the country, the state’s investment in advertising and promotions still generates $285 million in overall tourism economic impact, which is more than a 200% rate of return.
8.
Every $1 spent by the state for tourism promotion brings in $20 in new sales tax revenue.
9.
Seven of every 10 consumers who log on to the state’s tourism web site, www. visitindiana.com, convert to visitors that’s a 70% conversion rate.
As an employer, you know that a happy, healthy workforce is a productive workforce. And one of the keys to health and happiness is great health insurance, which is exactly what PHP provides. We have an array of options that we can custom fit so that the coverage you provide is exactly what your employees need and you can afford. Give us a call or visit us on the web and let’s get started on providing you with a more productive workplace.
10. And the most wonderful thing about Indiana tourism is that investment by visitors occurs in the very year in which those promotional dollars are spent giving an immediate return! Sources: Center for Business and Economic Research, Ball State University and Regional Economic Information Systems, Bureau of Economic Analysis DK Shifflet Economic Impact of Travel and Tourism in Indiana, 2006 Strategic Marketing and Research, Inc., 2008 TNS Brand and Communications, 2008
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5/11/2011 2:51:08 PM
The Last Word Links to the Mainline
Short-Line Railroads Connect Users to the Arteries of Commerce By Gary Lewis, Senior Vice President and Chief Commerical Officer for RailAmerica
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he state motto of Indiana as the “Crossroads of America” signifies the importance of its railroads, highways, waterways and other transportation facilities in the state, viewed by many as some of the finest in the nation. Short-line railroads, in particular, are a major component of this infrastructure and are redefining the state’s economicdevelopment efforts and ability to attract companies and businesses requiring rail service. Short-line freight railroads often are the first and last mile of rail linking local businesses to North America’s seven network railroads, also known as Class 1’s. In the Hoosier State, RailAmerica operates six railroads that provide personalized rail service to shippers and receivers. Our local railroads are known as the CFE, CERA, CIND, IORY, ISRR and TPW. Each provides the means for Indiana customers to reach larger markets throughout North America. Short-line railroads have a hometown presence and supply a hands-on transportation approach to their customers. A general manager and sales professional at a short-line railroad knows the local area and understand customers’ shipping or receiving requirements. Short-line railroads also offer transloading facilities. These sites broaden the customer base so that users without direct rail access still can reach the North American rail network. Site consultants and economicdevelopment officials often highlight these connections when trying to attract companies or large-scale industrialdevelopment projects to Indiana. States
must showcase the best that they have to offer, and short-line railroads are a compelling part of Indiana’s economicdevelopment story. Short lines are beneficial because many access multiple Class 1 railroads. As such, short-line railroads enable customers to obtain competitive rates for the transportation of their goods, which reduce
RailAmerica’s Local Railroads CFE: Chicago, Fort Wayne & Eastern Railroad CERA: Central Railroad of Indianapolis CIND: Central Railroad of Indiana IORY: Indiana and Ohio Railway ISRR: Indiana Southern Railroad TPW: Toledo, Peoria and Western Railway
costs and increase efficiencies throughout their supply chains. Additionally, short lines offer the flexibility of switching railcars to help customers meet the market demand for their goods. RailAmerica complements the state’s economic-development efforts by having a multitude of viable industrial-site offerings along its railroads in Indiana. The variety and breadth of industrial sites can fit any customer’s need for rail access and satisfy the demand for industrial-development sites along short-line railroads. RailAmerica’s most ambitious
industrial-development project came to life in Greensburg, Ind., in 2008, when a global automobile manufacturer opened a new $550-million assembly plant on our Central Railroad of Indiana. We closely collaborated with this global company and continue to manage their shipping needs today. From a transportation perspective, one of the benefits available from our CIND is neutral connectivity to the two Class 1 railroads that serve Cincinnati. A close partnership with this customer combined with Indiana’s pro-rail stance to streamline processes and provide a collaborative working environment. All of this helped the state secure this huge economic win. By working together, all parties involved in site-selection considerations can provide a customized approach to identify the best industrial site available for a customer to strongly consider building in Indiana. The relationships and collaboration position Indiana adds appeal to companies or projects needing rail access and development property. RailAmerica values the relationships it has with economic-development officials and site consultants throughout the state and realizes these relationships are essential to the success of its industrialdevelopment team. As most site-development projects only identify a regional geographic focus for their rail-access needs, it is important that business and government work closely to attract and secure these largescale projects. RailAmerica is proud of its role in continuing the state’s legacy as the “Crossroads of America.”
The opinions expressed in this article are the views of the authors. We welcome your response. If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.
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