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Hoosier Healthcare Inside This Issue CAF and NWIBRT Awards | pg. 34 Indiana’s Growing Health Industry | pg. 48 Customized Healthcare | pg. 52
CONSISTENT PERFORMANCE. IT’S WHAT OUR CUSTOMERS EXPECT.
Consistent performance has enabled Matrix North American Construction, formerly Kvaerner North American Construction, to become one of the premier industrial construction and maintenance firms in North America. From our executive team to our experienced field staff and craftworkers, we approach each project as a partnership with our client. This personal attention to detail, combined with the expertise of our people, is reflected in our comprehensive training, high standards and work performance. This enables us not only to complete quality projects safely and efficiently, but consistently.
Iron & Steel - Industrial - Oil, Gas & Chemical - Power Generation
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An Eventful Time of Year
CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307
At Building Indiana, springtime is one of our most eventful times of the year – there’s so much happening. Two of our most celebrated special events take place during the publication of this issue; The Midwest Smoke Out and the Construction Advancement Foundation (CAF) / Northwest Indiana Business Roundtable (NWIBRT) Awards Banquet. The CAF/NWIBRT Awards Banquet brought together more than 600 construction professionals to honor safety excellence and the individuals who keep workers safe on jobsites. Building Indiana takes great pride in being able to honor these incredible safety professionals, because without their efforts the entire business community of Indiana would be a tremendously different place. They deserve all the accolades we can provide for the way they shape Hoosier businesses and communities, and for making sure that workers make it home safely to their families each night. The Midwest Smoke Out allowed us time to relax and celebrate with our colleagues and friends. More than 2,000 cigar lovers, many of them members of the Hoosier business community, joined us at The Venue at The Horseshoe Casino for a night of fun and luxury. It was an outstanding avenue for our staff at Building Indiana to relax and spend some time getting to know our readers and what they hope to see in our upcoming issues. As always, we strive to bring our readers the very best in Hoosier business news. Contained in this issue you’ll find the latest information on Indiana’s healthcare industry, including new medical construction and all of the new developments taking place throughout the state. We hope that you enjoy reading about everything that’s been Kind Regards, happening as much as we
Publisher/Editor Andrea M. Pearman apearman@buildingindiana.com Director of Advertising Diane Towle dtowle@buildingindiana.com Writer Nick Dmitrovich ndmitrovich@buildingindiana.com Art Directors Jeanette Cherry jcherry@buildingindiana.com Jeff Fogg jfogg@buildingindiana.com Accounting Craig Marshall cmarshall@buildingindiana.com
INDIANAPOLIS OFFICE Business Development Manager Lee Ann Richardson 888.226.0330
WARSAW OFFICE Business Development Manager Julie Monteith 888.226.0330
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Copyright ©2014 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at apearman@buildingindiana.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.
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Contents M AY
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2014
EVERY ISSUE
04 Publisher’s Desk 08 Contributors 10 Business Buzz 20 People News E X P E RT A DV I C E
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28 30
D E PA R T M E N T S
46 48
34
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MASS PRODUCTION Manufacturing Medical Marvels
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LOGISTICS Milestone Achievements for Three Indiana Ports WORKER’S COMP Prevention is the Answer
LIFELONG LEARNING Continuous Professional Development
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ECONOMIC DEVELOPMENT New Industrial Park in Rush County
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REAL ESTATE Linking River Ridge Commerce Center to Ports of Indiana MARKETING Who are you Wearing?
FACTS & STATS Financial Statistics
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YOUR WELL-BEING Customized Care
58
THE BOTTOM LINE Why does Family Wealth Fade Away?
SMALL BUSINESS SPOTLIGHT Where are they now?
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CONSTRUCTION COLUMN Elkhart General Hospital Expansion
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CAF and NWIBRT Awards
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RULE OF LAW Understanding ACA Regulatory Issues
23 PHOTO FEATURE 34 COVER STORY
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STATE OF THE INDUSTRY Construction Manager as Constructor
F E AT U R E S
CONSTRUCTION FEATURE New Science and Nursing Building at Indiana Wesleyan
SAFETY ZONE Safety is a Team Effort
BEING PRODUCTIVE Upgrading Efficiency
THE LAST WORD Optimistic about NWI’s Future
www.buildingindiana.com | MAY / JUNE 2014
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...”
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Contributors
Leigh Morris Leigh Morris is the Interim President of the Legacy Foundation, a nonprofit philanthropic community foundation that serves Lake County. Previously he also served as Executive Director of the Indiana Toll Road for the State of Indiana, and was Governor Mitch Daniels’ appointee on the Northwest Indiana Regional Development Authority, where he served as RDA Board Chairman.
Cynthia Roberts Cynthia Roberts, PhD, RODP is a Professor of Organizational Behavior and Leadership, Teddy Jacobi Dean of the College of Business, and Director of the Saturday MBA program at Purdue North Central where she teaches leadership, team development, ethics, organizational behavior, and gender and diversity. Dewey Pearman Dewey Pearman serves as Executive Director for the Construction Advancement Foundation. He has a Master’s in Economics from Indiana State University. The foundation promotes the union construc-
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tion industry of northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development. Robert Wade Robert Wade is a Partner at Krieg DeVault, and Chair of the firm’s Health Care Practice Group. He concentrates his practice in representing health care clients, including large health systems, hospitals, ambulatory surgical centers, physician groups, physicians and other medical providers. Alex Krouse Alex Krouse is an Associate at Krieg DeVault, serving as a member of the firm’s Health Care and Business Practice Groups. This group focuses on health care organizations, including health systems, hospitals, health care providers, and other business entities. Jim Allivato Jim Allivato, ATC, CEIS, is the Director of Midwest Business Development for ATI Worksite Solutions. Formerly he was the
Senior Regional Director for ATI Physical Therapy’s Chicago region overseeing 20 clinics and staff of over 100. Prior to this, he was a principal in Corporate Health Solutions, Inc. Kaitlin Williams Kaitlin Williams is the Marketing Coordinator and resident social media expert at Diversified Marketing Strategies. She holds degrees in English with a concentration in Creative Writing and Spanish from Indiana University Bloomington, class of 2010. Her special skills include copywriting, blogging, social media management, event coordination, and general word-smithery. Dr. Hakam Safadi Dr. Hakam Safadi is the Physician Medical Director of Medical Education at Methodist Hospital with campuses in Gary and Merrillville, Indiana. Dr. Safadi is certified in Health Care Quality and Management (CHCQM) from the American Board of Quality Assurance & Utilization Review Physicians, Inc.
www.buildingindiana.com | MAY / JUNE 2014
MAIN BUZZ
HEAVY METAL Iron Workers 395 Apprentices Retrofit Brinks Trucks into SWAT Vehicles By Nick Dmitrovich
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hree police departments in Northwest Indiana have found a creative way to save hundreds of thousands of dollars on new SWAT vehicles by leasing them from Brinks Security and collaborating with the Local Iron Workers 395 Apprenticeship School in Lake Station, IN to outfit the vehicles. Currently three local police departments have already jumped on the heavily armored bandwagon; Lake Station, Munster and Portage. This process has brought about immense savings for the police departments, who were able to acquire the vehicles for little more than the cost of the steel and other parts. On the open market, armored vehicles like the Brinks trucks can cost as much as $300,000, but in the end, each department only had to spend about $2,500 on parts and paint. “Iron Workers 395 and our apprentices are always proud to do things that help our community. This project was a really interesting one that engaged our apprentices and got them excited, and we were happy to work on something that went to support our local law enforcement agencies,” said Doug Strayer, Business Manager for Iron Workers 395. Master Iron Worker and 395 Instructor Richard Hertaus said, “The nature of our business in iron working is safety. Safety is the number one priority that we’re teaching our apprentices, and in a way, this whole
project with these SWAT vehicles is about safety. We’re working to ensure the safety of these officers, who in turn work to protect our entire community.” “We want these officers, and our students, to have confidence when they go to do their jobs, to be able to perform their jobs, and return home,” Heratus said. “On this project, our students were practicing many of their usual skills, cutting, welding, measuring, and things like that, but this just happens to be placed in a different format. So, our students saw a lot of cool things that they never would have thought of, and we showed them how to apply these techniques. There was a lot of reinforcement to their skills that they got to apply with this project. It was something very unique that we were able to accomplish.” Troy Williams, Chief of Police with the Portage Police Department, spoke about how he first came to learn about the Brinks trucks and the work that the apprentices were conducting. “Brinks has a program in which you can get an out-of-service truck that they will lease/sell to a department for $10; and the only caveat to that is whenever you’re done with it you have to give it back to Brinks. So if we have it for 20 years, that’s great, and we’ll return it to them when we no longer need it.” “The Iron Worker Apprentices did all the work, and we just had to fund the materials. Given today’s world, you see all the active
MAY / JUNE 2014 | www.buildingindiana.com
shooter situations. All departments need equipment to get close to an active shooter, and this gives us another tool to do our job,” Williams said. Detective Mike Smith, Lake Station’s SWAT Team leader, said, “For what we do, and to get our team to a location, these vehicles are phenomenal. It’s great to get us close to a situation, perhaps a house or building we’re going to be making entry into, because it gives our officers a greater sense of security.” He went on to describe a little bit about Lake Station’s truck, saying, “The vehicle is fully armored, and the glass is bulletproof. It also has a bulletproof opening on top where we could put a sniper up there where he’d have some cover behind bulletproof glass. The platforms on the sides and the back have been expanded, and the wheels have been covered to protect the officers riding on the sides. Additionally, the front bumper has a battering ram that slides out of the side in case we need to take a fence down or something like that.” “The vehicle is very intimidating. The Iron Workers thought of everything. For what we needed, and what we wanted, they really hit it out of the park,” Smith said. “The Painters Union in Merrillville donated their labor to paint the vehicle; we just had to pay for the paint. To have a fully armored vehicle for a fraction of the cost – other departments should really be taking a look at this.” 9
BUSINESS BUZZ
Northwest AM Manufacturing Moves to Munster
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AM Manufacturing Company, a dough processing machine builder for the food industry, announced plans today to relocate its headquarters from Dolton, Ill. to Munster, creating up to 40 new jobs by 2016. The company will invest $2.28 million to lease, renovate and equip a 56,800 square-foot facility located at 9200 Calumet Ave. in Munster. The new facility, which will be operational this summer, will allow the company to move previously contracted work in house, as well as build a larger showroom to display machines for customers. AM Manufacturing, which currently employs 30 full-time associates, plans to begin relocating jobs from its Dolton, Ill. facility and recruiting for assembly, electrical and machining positions later this year. The Indiana Economic Development Corporation offered AM Manufacturing Company up to $400,000 in conditional tax credits based on the company’s job creation plans. These incentives are performancebased, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The Northwest Indiana Regional Development Authority supports the project through its Deal Closing Fund. The town of Munster approved additional incentives.
Saint Joseph Regional Medical Center Expanding Saint Joseph Regional Medical Center (SJRMC) has announced it will expand its Plymouth campus with a new, state-of-the-art Emergency Department. SJRMC will break ground for the new 12,000 square-foot Emergency Department this spring. The new Emergency Department will be located adjacent to the Plymouth hospital’s current Emergency Department. The new Emergency Department will increase capacity by more than 60 percent, streamline emergency care and increase patient safety and privacy. The new Emergency Department will feature a larger waiting area with a dedicated children’s play area. Care will not be disrupted during construction. Once the new construction is completed, the original space will be repurposed to support Emergency Department administration, diagnostic imaging and other hospital services. The total project is scheduled to be completed by September 2015 at a cost of $9 million. MPA Architects, of South Bend, has been selected to design the new space. Construction will begin in June.
Sandin Manufacturing Undergoes 28,000 Square Foot Expansion Sandin Manufacturing is expanding its Michigan City facility through the help of area partners, maintaining the family-owned business locally and creating new jobs. The company has been a leading supplier to the wire rope and cable industry for more than 50 years. Construction on the 28,000-square-foot metal addition is beginning immediately on their current 50,000-square-foot facility, located off of Ind. www.buildingindiana.com | MAY / JUNE 2014
Lippert Components Bringing 200 Jobs to South Bend Lippert Components, Inc., a subsidiary of Drew Industries Incorporated (NYSE: DW), has executed a lease for 539,137 square feet at 1902 W. Sample Street in South Bend, Ind., also known as the I-80 Commerce Center. The building is owned by a joint venture partnership of Holladay Properties and Garrison Investment Group. Lippert Components™ is a tier-1 supplier of components for recreational vehicles, manufactured homes and other industries, and plans to use this facility to primarily centralize warehousing and distribution operations. The Company hopes to create up to 200 new jobs by 2019
outlined by the American Heart Association/American Stroke Association for the treatment of stroke patients. Methodist was the first hospital in Northwest Indiana to receive this award. Get With The Guidelines Stroke helps hospital teams provide the most up-to-date, research-based guidelines with the goal of speeding recovery and reducing death and disability for stroke patients. Methodist earned the award by meeting specific quality achievement measures for the rapid diagnosis and treatment of stroke patients at a set level for a designated period. These measures include aggressive use of medica-
Methodist Hospital Receives Two Awards Northwest Indiana Breast Care Center at Methodist Hospitals has been named a recipient of the Women’s Choice Award as one of America’s Best Breast Centers, acknowledging its dedication to providing exceptional patient care and treatment. Breast cancer is the second most common form of cancer among American women according to the American Cancer Society, and one in eight women in the U.S. will develop invasive breast cancer during their lifetime. The Women’s Choice Award seal signifies Northwest Indiana Breast Care Center at Methodist Hospitals’ commitment to a global mission to elevate the patient experience for women and all patients as one of America’s Best Breast Centers. Additionally, Methodist Hospitals has once again received the Get With The Guidelines®-Stroke Gold-Plus Quality Achievement Award for implementing specific quality improvement measures MAY / JUNE 2014 | www.buildingindiana.com
tions and risk-reduction therapies aimed at reducing death and disability and improving the lives of stroke patients.
New Program to Benefit NWI Startups Purdue Research Foundation officials announced a program to provide its awardwinning entrepreneurial programs and facilities at reduced costs for entrepreneurs commercializing patented technologies licensed from any Indiana or Illinois institution of higher education. The program includes a 50 percent
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BUSINESS BUZZ
Hwy. 212 in northeast rural Michigan City. Construction on the expansion is expected to be completed this fall. In addition, Sandin Manufacturing will be adding eight new jobs to its current workforce. Hiring for the eight entry- to mid-level jobs will begin in winter 2014. The addition will allow the company to expand its scope of services and products even further.
BUSINESS BUZZ
discount for up to two years of rental space in its 60,000-square-foot Purdue Technology Center of Northwest Indiana. The 60,000-square-foot Purdue Technology Center of Northwest Indiana has multiple office and lab spaces for startups and is part of the award-winning entrepreneurial programs and facilities provided through the Purdue Research Park network.
add three additional thermoplastic extrusion lines and provide space for further expansion of its rubber and plastic extrusion capabilities. The Indiana Economic Development Corporation offered Jaeger-Unitek Sealing Solutions, Inc. up to $500,000 in conditional tax credits based on the company’s job creation plans.
Northeast
German Manufacturer Expanding in La Porte Governor Mike Pence joined executives from the Jäger Group to announce the company’s plans to expand operations of its subsidiary Jaeger-Unitek Sealing Solutions in La Porte, Ind., creating up to 52 new jobs by 2016. The extrusion manufacturer will invest $4.5 million to lease, renovate and equip a 137,000 square-foot facility at 115 Koomler Drive in La Porte, increasing its operational space with the new facility by 50,000 square feet. The facility, which will be fully operational by August, will allow the company to
ness processes, worldwide procurement, made-to-order manufacturing and distribution of implant instruments. The capital project will involve building renovations and state-of-the art manufacturing equipment including innovative 3D printing and optical scanning technologies. The Company estimates that this project will increase employment in the county by 150 new jobs.
Drew Industries Completes Acquisition
Biomet Expanding in Kosciusko County Warsaw-based Biomet Inc. has announced plans to expand its Kosciusko County operations and add 150 jobs. The company is seeking tax abatement on the proposal that includes building renovations and new equipment. The proposed expansion involves several operations including additional development of the Company’s Global Center of Excellence in the areas of enhanced busi-
Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and manufactured homes, announced that its whollyowned subsidiary, Lippert Components, Inc., has completed the previously announced acquisition of certain assets and the business of Star Design, LLC., an Elkhart, Indiana-based manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries. The purchase price was $12.3 million, which was paid at closing from borrowings
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BUSINESS BUZZ
under the Company’s $75 million line of credit with JPMorgan Chase and Wells Fargo. After funding this acquisition, the Company remains well-positioned to take advantage of investment opportunities to further improve its results. Lippert Components believes the additional product lines and diversified customer base will accelerate Lippert Components’ expansion into specialty markets. Star Design has annual sales of approximately $10 million.
P & C Trucking Grows Business with New Contract P & C Trucking, of Gary, IN, recently landed a new contract that’s allowed the business to expand by roughly a third in size in gross revenue. The new garbage contract, made with an unnamed client from Gary, has allowed P & C to add 14 new trucks to its fleet, and 28 new trailers which will be running from Gary to Monticello. To meet the increase in workload, the company plans to add 16 new jobs to the company in the form of additional drivers and office staff. Great Lakes Bank has been a major supporter of the project and expansion, according to company President PJ Wiltjer, and a few of the new trucks will be showcased on the national stage at the Louisville Truck Show.
OrthoWorx Announces New Partnership with Schools
annually to the Indiana economy.
Lippert Components Expanding in Elkhart Lippert Components, Inc. (LCI) announced today that it has entered into a 12 1/2-year agreement to lease a 539,000-square-foot building at 1902 W. Sample Street, South Bend, where it will consolidate its aftermarket parts sales and Customer Support Services operations. LCI will immediately begin equipping the South Bend building and hiring employees for warehousing, distribution and light manufacturMAY / JUNE 2014 | www.buildingindiana.com
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OrthoWorx announced that it has formed a University / Industry Advisory Board to better connect the technology and talent needs of Indiana’s orthopedic medical device industry with the assets and capabilities represented by Indiana’s higher education institutions. Colleges and universities that are currently committed to joining OrthoWorx as part of the University | Industry Advisory Board include the following: Indiana University; University of Notre Dame; Ivy Tech Community College; Manchester University; and Trine University. Discussions regarding membership are still underway with Ball State University, IPFW and Purdue University. Grace College, a founding member and frequent collaborator of OrthoWorx, also will be a member of this new Advisory Board. The Indiana medical device industry is the largest component of the overall life sciences economy in Indiana. OrthoWorx was formed in 2009 to improve the environment for success for an industry cluster based in Warsaw, Indiana that accounts for approximately 13,000 direct and indirect jobs, and contributes more than $3 billion in value
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BUSINESS BUZZ
ing operations. A portion of the space will be occupied by LCI’s customer service and aftermarket call centers, dealer technician training areas and a large showroom that will display LCI’s broad line of products. The showroom will not only be used to showcase products to customers, but will also accommodate hands-on dealer training.
AccuTemp Products Growing in Fort Wayne AccuTemp Products, Inc., a developer of commercial food service equipment, announced plans today to grow its headquarters and research and development center in Fort Wayne, creating up to 14 new jobs by 2017. The homegrown-Hoosier company will invest $765,660 to equip its two Fort Wayne facilities, which are a combined 40,000 square feet. The new equipment, which includes the installation of special tooling, testing machines, new phones and computers, will be operational this month. The expansion will enable the company to upgrade its production line and provide additional staffing support to serve a growing customer base for the company’s line of griddles. AccuTemp, which currently employs more than 50 full-time Indiana associates, has already begun hiring additional sales associates.
PDQ Tooling Selects Northeast Indiana for new Location PDQ Tooling, an indexable cutting tool manufacturer for the production machining industry, announced plans today to locate operations in Columbia City, creating up to 45 new jobs by 2019. The homegrown-Hoosier company, which shares ownership with Columbia City, Ind.-based PDQ Workholding, will invest $7.2 million to lease, renovate and equip a 17,000 square-foot facility located at 1100 S. Williams Drive in Columbia City. With operations expected to commence this June, PDQ plans to begin hiring assembly, engineering, administrative and machining positions later this year. Founded by Busche, PDQ Tooling designs and manufactures custom indexable 14
cutting tools for the production machining industry. It serves regional and global customers and synergizes with PDQ Workholding.
Novae Corp. Growing in Markle, IN Novae Corporation, North America’s third largest utility trailer manufacturer, announced plans to expand its operations in Markle, IN, creating up to 75 new jobs by 2016. The homegrown-Hoosier company will invest $5.9 million to construct and equip a 73,000 square-foot facility at the Markle Industrial Park, a state-certified shovel ready site, which will be its fourth manufacturing facility in northeast Indiana since 2005. The new operation will be online and fully functional by November. Novae designs and manufactures utility and cargo trailers, as well as lawn, garden and agricultural equipment. Novae has three product lines including Sure-Trac utility trailers, Cardinal farm products and Novae lawn care products. With its new production facility in Markle, the company also plans to add staff at its Columbia City, North Manchester and original Markle facilities to foster its continued growth. The Indiana Economic Development Corporation offered Novae Corporation up to $450,000 in conditional performance-based tax credits and up to $50,000 in training grants based on the company’s job creation plans.
Central Subaru and Chrysler’s Expansions Earn National Recognition Subaru of Indiana Automotive’s (SIA) production expansion in Lafayette and Chrysler Group, LLC’s Kokomo and Tipton expansions received national recognition as winners of Trade & Industry Development magazine’s 9th annual Corporate Investment and Community Impact Awards (CiCi). The projects are among the top 30 economic development projects in 2013
and were selected from hundreds submitted from across the country. SIA’s project was chosen as one of the top 15 in the Corporate Investment category for the Japan-based automotive manufacturer’s $400 million to $450 million investment to build the Impreza at SIA and expand the plant’s production capacity to approximately 100,000 vehicles annually. The expansion will grow the company’s total footprint on its 832-acre Lafayette campus by more than 500,000 square-feet. Chrysler Group’s expansion was also recognized as one of the top 15 in the Corporate Investment category for the automotive manufacturer’s total investment of $374 million to expand its operations in north central Indiana, creating up to 1,250 new jobs over the next few years. The company will invest $212 million to install additional tooling and equipment to produce eight- and nine-speed transmissions in three of its Kokomo plants and will invest an additional $162 million to establish an assembly site for the nine-speed transmission in Tipton, Ind.
Cabela’s Planning Second Indiana Location Plans have been announced for the upcoming construction of a Cabela’s Incorporated retail store in Noblesville. Discussions have been ongoing between the city and Cabela’s for several months and the agreement between the two has just been finalized. This will be their second retail location in Indiana. The two Cabela’s stores located closest to central Indiana are in Hammond, Indiana and Louisville, Kentucky. Cabela’s is a destination retail establishment that features merchandise for hunting, fishing, and other outdoor activities. The Noblesville location will be approximately 80,000 square feet and will be located directly west of the Hamilton 16 IMAX movie theater. The new location is scheduled to open in 2015. The City of Noblesville’s master plan called for Campus Parkway to be extended south to 136th Street. As part of the agreement with Cabela’s, the construction of this extension will be moved up and will now take place this year.
www.buildingindiana.com | MAY / JUNE 2014
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BUSINESS BUZZ
Cummins Moving HQ to Indy
An important step to continually deepen the company’s biologics capabilities is the expansion of its large molecule Officials from Cummins Inc. anbioanalytical space co-located with nounced plans for the company to locate Covance’s central laboratory facility in its global distribution business headIndianapolis, Ind. The expansion, which quarters from Columbus, Indiana and is planned to open during the second half consolidate existing Indy-based employ- of 2014, is doubling the company’s large ees in a new downtown office building. molecule capacity and is expected to add The global distribution business is one approximately 100 new positions over the of Cummins’ four business units. The next five years. This investment will encompany plans to build its new Indianap- able Covance to further leverage its small olis office center on approximately four and large molecule bioanalytical experacres that previously housed Market tise while providing scientific, logistic, Square Arena. and regulatory synergies for our clients. The company’s initial plan for the site includes an office building with ground floor retail, a training center, public greenspace and a parking garage on GE Aviation, the world’s largest jet parcels bordered by Market, Alabama, engine manufacturer, announced the Washington, and New Jersey Streets. company’s plans to locate a new $100 The building will initially house up to million jet engine assembly facility here, 400 employees with future expansion creating up to 200 new jobs by 2020. possible. The company currently has The 225,000 square-foot Lafayette faapproximately 100 employees working in cility, the company’s first final assembly two separate offices downtown. Cummins will purchase the property plant in Indiana, will assemble the new for $4.3 million. Indy will invest $3.3 mil- LEAP engine from CFM International, a lion in infrastructure improvements and 50/50 joint company of GE and Snecma parking on the site and abate 70 percent (Safran) of France. CFM, which will enter of the development’s property taxes for service in 2016, has already logged total orders and commitments with airlines ten years. for more than 6,000 LEAP jet engines. It While design is not yet underway, will power new Airbus A320neo, BoeCummins is committed to contributing ing 737 MAX and COMAC (China) C919 a significant architectural element to aircraft for airlines worldwide. the downtown Indianapolis landscape Launched in 2008, the LEAP is now that will be a great environment for its undergoing development testing. As employees and a welcoming presence for the community. Construction on the the engine transitions to the producnew building is expected to begin within tion phase, GE could begin hiring at the new Lafayette facility as early as 2015. the year and open by late 2016. Within five years, the plant’s workforce is expected to exceed 200 people with the capacity to do final assembly for the engine as well as the engine’s hot section Covance Inc. (NYSE: CVD), one of (compressor, combustor and high presthe world’s largest and most comprehen- sure turbine). The new jobs are expected sive drug development services comto pay an average wage of $36 an hour, panies, announced that it is building on which includes both hourly and salaried its expertise in biologics development positions. The Lafayette facility will be GE’s with new investments to meet growing fifth location in Indiana. The company client demand, including the expansion employs nearly 1,700 Hoosiers across of its global bioanalytical footprint and the state, including Fort Wayne, Bloomthe addition of scientific leaders to its ington, Terre Haute and Connersville. In biologics team.
GE Aviation Announces Lafayette Plans
Covance Planning Indiana Expansion
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addition, GE spends more than $440 million with suppliers in Indiana, helping support 1,500 supplier jobs in the state.
Becks Announces $60 Million Expansion Beck’s Hybrids announced the company’s plans to expand its headquarters, production, research and distribution operations in Atlanta, IN, creating up to 100 new jobs by 2017. The homegrown-Hoosier company will invest $60 million to renovate and equip its current one million square-foot headquarter operation in Atlanta, Ind. The expansion, which begins this summer, will take approximately three to four years to complete and includes research labs, greenhouses, seed processing facilities and equipment, as well as office space designed to better serve farmers. Beck’s Hybrids, which currently employs more than 400 people across the Midwest, including upwards of 290 full-time employees in Indiana, plans to begin hiring for positions this summer.
Casey’s to Build Distribution Center in Vigo County Casey’s General Stores Inc. recently announced plans to build a $30 million distribution center in Indiana that will have as many as 185 employees by 2019. Casey’s said that construction will begin in November on the 250,000-square-foot center in the Vigo County Industrial Park in Terre Haute. The new facility is expected to open by fall 2015. The company has about 29,000 employees, with more than 850 in Indiana. It’s only other distribution facility is in its home city of Ankeny, Iowa.
Beauty Retailer Establishing Distribution Center in Greenwood ULTA, Inc. (NASDAQ:ULTA), the nation’s largest beauty retailer, announced the company’s plans to locate a cosmetic fulfillment and distribution center in Greenwood, IN, creating up to 537 new jobs by 2018. The Bolingbrook, Ill.-based company will invest $51.6 million to lease and equip a 670,000 square-foot facility www.buildingindiana.com | MAY / JUNE 2014
ethanol plant at the Port of Indiana-Mount Vernon through its subsidiary Valero Renewable Fuels Co. Valero Energy is the ninth largest company in the U.S. and an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Valero subsidiaries employ approximately 10,000 people and Valero Renewable Fuels Co. now owns 11 ethanol plants, including two in Indiana. The Mount Vernon plant was purchased from Aventine Renewable Energy with initial plans to reopen the idled facility later this year.
Transformation Network Expands to Jeffersonville Transformation Network expands, and announced the official grand opening of their fourth facility located at 2992 Industrial Parkway in Jeffersonville, IN 47130. One Southern Indiana, Senator, Ron Grooms, City of Jeffersonville Mayor, Mike Moore and Clark County Commissioner President, Jack Coffman were present to kick off the grand opening. Transformation Network is a faithbased, non-profit organization with an
Heartland Food Products Adding Jobs in Indy Heartland Food Products Group, a producer of drink mixes and zero calorie sweeteners, announced plans today to expand its operations in Indianapolis, creating up to 160 new jobs by 2017. The homegrown-Hoosier company will invest $21.2 million to renovate and equip 435,000 square feet of production and distribution facilities on Indianapolis’ north side. The expansions, which are all expected to be operational by the end of the year, include multiple new production lines, high speed filling machines, end-ofline packaging equipment and blending equipment. The company will also add resources at its headquarters in Carmel to meet the rampant growth in demand for its products. The Indiana Economic Development Corporation offered Heartland Food Products Group up to $1.2 million in conditional performance-based tax credits based on the company’s job creation plans.
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Texas Company Buys Plant at Indiana Ports Valero Energy Corp. has announced the purchase of the 110-million gallon MAY / JUNE 2014 | www.buildingindiana.com
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BUSINESS BUZZ
in Greenwood. This will be ULTA’s first Indiana fulfillment center, which is expected to start shipments in summer 2015. ULTA currently operates 675 retail stores nationally, including 13 in Indiana. The company employs more than 19,000 associates across the country with more than 300 in Indiana. In addition to its new Indiana fulfillment center, ULTA has three other distribution centers located in Illinois, Arizona and Pennsylvania that support both its retail and e-commerce business. The Indiana Economic Development Corporation offered ULTA, Inc. up to $3,010,000 in conditional tax credits based on the company’s job creation plans.
BUSINESS BUZZ
COMPREHENSIVE CIVIL AND ARCHITECTURAL SERVICES FOR FIELD-TO-FINISH PERFORMANCE As a nationally recognized engineering, surveying, and architectural firm, Falk PLIʼs civil services go beyond traditional surveying practices. By integrating innovative laser technology into projects, our experienced team delivers the data necessary for as-built verification, reverse engineering, and BIM integrated modeling.
Petoskey Plastics Growing in Hartford City Pioneering recycling, plastic film, bag and resin manufacturer Petoskey Plastics continues to expand its Hartford City operations in response to growth in its recycling services and product lines. The Hartford City Council paved the way for the company’s added capital improvement by this week approving a 10-year, $6.2 million tax abatement. The investment is expected to eventually create up to 26 new jobs at the Hartford City facility. Petoskey’s investment will be used to upgrade and enhance recycling operations and provide capacity to increase manufacturing of products with recycled plastic content. Additionally, Petoskey will refurbish the rail spur that services the facility, allowing for more efficient and sustainable transport of raw materials to the plant.
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Kimball International Participating in Economic Development Project Kimball International, Inc. (NASDAQ: KBALB) announced the Company’s intent to participate in a new “shovel ready” economic development project led by the city of Jasper. Kimball committed to listing approximately 130 acres of selected parcels of property the Company owns on the south side of Jasper, known as the Kimball Industrial Park, into Indiana’s certified “Shovel Ready” program. Indiana currently has approximately 100 “Shovel Ready” sites, and the designation certifies that sites are ready for economic development and provides potential purchasers with assurances the sites have been prepared in advance for construction with necessary items such as road access, environmental studies, utility infrastructure and proper zoning.
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Lt. Governor Sue Ellspermann joined MasterBrand Cabinets, Inc. (MBCI), a manufacturer of home cabinetry products, to announce the company’s plans to expand its operations in Ferdinand, IN, creating up to 262 new jobs by the end of 2016. The Jasper, Ind.-headquartered company will invest approximately $8 million in equipment that will add additional capacity and expand the product offering at its 500,000 square-foot facility located at 624 W. 3rd St. in Ferdinand. MBCI, which currently employs more than 3,500 associates at its six Indiana facilities and more than 1,500 in Ferdinand, plans to begin hiring cabinet assemblers, component pullers, shipping helpers, supervision and quality positions later this year. www.buildingindiana.com | MAY / JUNE 2014
RAISING THE BAR ON PATIENT SAFETY Carpenters from the IKORCC are on the cutting-edge of healthcare construction. With extensive Infection Control Risk Assessment (ICRA) training, IKORCC Carpenters have the necessary skills to contain pathogens, control airflow and, above all else, protect patients and staff.
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Great for FMs, CMs, healthcare FMs and staff! To find out more about using IKORCC ICRA-certified Carpenters on your next project or the 8 Hour Awareness Training, contact Dale Newlin at (219) 942-0518 or dnewlin@IKORCC.com.
MAY / JUNE 2014 | www.buildingindiana.com
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People News Construction Advancement Foundation Welcomes New Board Member The Construction Advancement Foundation (CAF), of Portage, IN, recently welcomed James Dyer as a new board member. Dyer serves as Senior Vice President and General Manager of Berglund Construction’s Indiana office. He is credited with launching and executing the company’s preconstruction, estimating and design build processes. With more than 34 years of experience, 18 of which have been with Berglund Construction, Dyer’s expertise covers cost management, procurement strategy and value management for complex projects in a wide range of industries including healthcare, higher education, K-12, government and commercial facilities. Dyer attended Purdue University Calumet and has a B.S. in Construction Management. In addition to the Construction Advancement Foundation, he is an active member of the Northwest Indiana Contractors Association, Valparaiso Chamber and Duneland Chamber. He is a lifelong resident of Northwest Indiana and currently resides in Valparaiso.
Symons Promoted to Director of Operations at The Ross Group Ross Pangere, president of The Ross Group, located at 5901 Carlson Avenue in Portage, has promoted Kevin Symons of Portage to be the firm’s director of operations and production. In this position, Symons 20
will direct the day to day operations of the firm’s building construction units including design build, sheeting and roofing. Symons will also be responsible for the implementation of the firm’s plans and policies and will be a member of its corporate management team. Symons has been with The Ross Group for 16 months.
Bechman Named Greater Seymour Chamber President The Greater Seymour Chamber of Commerce Board of Directors has announced the selection of a new President effective April 7th, following the retirement of current President, Bill Bailey. Tricia Bechman, Executive Director of the Franklin Chamber of Commerce for the past eleven years, will assume the leadership of the Seymour Chamber. A graduate of Millikin University with a degree in Business Administration, Miss Bechman is also a graduate of the Indiana Chamber Academy and serves on the board of directors of the Indiana Chamber Executives Association. The Greater Seymour Chamber of Commerce was founded in 1931. Ms. Bechman will become only the eighth President/CEO of the Chamber. The Chamber has a membership of 420 business and individual members
Thalmann Elected President of Stark County EDF The Starke County Economic Development Foundation (SCEDF) elected Diane Thalmann as its new Presi-
dent. She has served on the Foundation Board since 2006 as a Representative Member, and served several years as Vice-President. Diane has been a member of the NIPSCO Economic Development team since 1998, and also assists with the Indiana Economic Development Corporation to help facilitate economic growth in NIPSCO’s service territory. She is also currently serving as a member of the Board of Directors of the Indiana Economic Development Association. Diane has spent seventeen years in manufacturing, including positions in marketing, engineering and business development. She holds an MBA from the University of Notre Dame; an EET from Purdue University North Central; and a BSPE from Valparaiso University.
Turner Named Vice Chancellor for Finance and Administration at Purdue Calumet and Purdue North Central Stephen R. Turner will assume responsibilities as the vice chancellor for Finance and Administration for both Purdue University North Central and Purdue University Calumet. As vice chancellor for Finance and Administration, Turner will serve as chief financial and administrative officer of both campuses, overseeing more than 1,500 employees, combined budgets of $177 million and university facilities and infrastructure valued at $547 million. Turner came to Purdue North Central in 1998 and has
been the vice chancellor of Administration there for the past five years. He earned undergraduate degrees from Indiana University Northwest and Purdue Calumet, a master’s degree from Western Michigan and an MBA from the Krannert School of Management at Purdue University, West Lafayette. He is a member of many local service and community organizations, serves on several boards and has been both appointed and elected to public office.
Duneland Chamber Welcomes New President The Duneland Chamber of Commerce welcomed a new President: Maura Durham, current Membership Marketing Coordinator for the community-building organization, will assume the Chamber’s leadership role. Prior to her tenure at the Chamber, Durham enjoyed a career in brand development, strategic planning, marketing and sales with Newcomb Solutions and The Times Media Company. Durham’s goal for the first 18 months of her Presidency is to discover even more avenues for the Chamber’s members to do business with each other, with residents, and with visitors to the area. Durham will continue to represent the Duneland Chamber as a member of the Porter County Economic Development Alliance, the Northwest Indiana Forum Economic Development Committee, Duneland Economic Development Committee, and the Chesterton-Porter Rotary Club.
www.buildingindiana.com | MAY / JUNE 2014
Anderson Named IEDC’s New VP of Business Development Kent Anderson, a military officer and former Swiss company executive, will serve as the vice president of business development at the Indiana Economic Development Corporation (IEDC). Anderson joined the state’s job hunting agency in January 2012 as the director of international business development, spearheading the state’s efforts to attract and retain companies from around the world. Under his leadership, the IEDC secured deals with more than 110 international companies, which are expected to bring more than 8,700 new jobs and more than $3.25 billion in investment to Indiana over the next several years. In addition, Anderson oversaw the restructuring and streamlining of the IEDC’s international footprint.
Falk PLI Adds Ken Reddish to its Engineering Team Falk PLI announced the addition of Ken Reddish, previous owner of Rotec Inc., to its engineering team. Ken assumes the responsibility of General Manager of Remote Offices for the organization. For over 30 years, Ken has specialized in industrial surveying, alignment, and metrology services for the steel, paper, cement, power and aluminum industries.
Excellence in Patient Care Methodist Hospitals has received the Studer Group Excellence in Patient Care award in recognition of its outstanding patient care and satisfaction performance compared to more than 850 nationwide institutions.
More Evidence of Excellence Methodist Hospitals’ commitment to delivering high quality care has attracted attention from some of the most respected names in health care.
Centier Bank Announces Three New VP’s Michael E. Schrage, President and CEO of Centier Bank, announced that Laura A. Demeter has joined Centier Bank as Vice President/Regional Manager and Cash Management Officer; Jesse Dame has been promoted to Vice President; and Bill Winterhaler has joined Centier as Vice President of Business Banking. Demeter is an experienced banker who provides business development, operations, and service leadership supervision to teams in Carmel, Lafayette, Fort Wayne, and Mishawaka. Dame rejoined Centier in 2012, after working for the bank in 2006/2007. During his time away from the bank, he strengthened his banking expertise while working at other banks in multiple cities throughout the nation, including Las Vegas, and Indianapolis. Winterhaler has more than 20 years of experience, most of that time in lending and management positions. MAY / JUNE 2014 | www.buildingindiana.com
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Photo Feature IKORCC Holds Open House in Hobart
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Several visiting students check out some carpentry tools.
One visiting student tries his hand at virtual reality welding.
Congressman Visclosky and IKORCC Director of Education Todd Pancake chat at the IKORCC Open House.
Congressman Visclosky learns how the virtual reality welding game works.
he Indiana-Kentucky-Ohio Regional Council of Carpenters held an open house at their location in Hobart, IN, where the public could visit and see some of the work and training that is conducted at the site. Numerous dignitaries attended the event, including Congressman Visclosky and members of his staff, as well as several state-level legislators and local politicians. Visitors had the change to take a look at some of the new equipment the carpenters are using, including a new table saw that’s programed to shut down whenever it detects contact with organic matter (such as a finger), and also visitors could meet some equipment vendors and observe some competitions taking place between graduating apprentices. There was also an interesting virtual reality welding video game that the instructors use to help teach basic welding skills to beginners.
Engineers Complete Milton-Madison Bridge Slide
Photo showing the Milton-Madison Bridge before the slide took place. Photo courtesy of the Milton-Madison Bridge Project.
Photo showing the bridge after the slide was complete. Photo courtesy of the Milton-Madison Bridge Project.
The recent sliding of the Milton-Madison Bridge on to its permanent support columns marked one of the largest engineering projects in the United States. The bridge carries US 421 across the Ohio River connecting the historic towns of Madison, IN, and Milton, KY. Using a construction method called “truss sliding,” a new 2,427-foot-long truss was moved along steel rails and plates and “slid” into place atop the existing piers, which were be rehabilitated. MAY / JUNE 2014 | www.buildingindiana.com
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STATE OF THE INDUSTRY
NEW “CONSTRUCTION MANAGER AS CONSTRUCTOR” LAW BRINGS ABOUT MANY CHANGES TO PUBLIC PROJECT BIDDING By Dewey Pearman, Executive Director, Construction Advancement Foundation
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hose contractors working in the public works segment of the Indiana construction industry will find that the game will be changing dramatically when bidding for work with many public agencies. The recently completed session of the Indiana General Assembly has created a new contracting method for many public projects and many public agencies are likely to take advantage of the new “Construction Manager as Constructor” (CMc) law. Beginning June 30, 2014 the new law applies only to state educational institutions. Beginning June 30, 2017 the law will apply to all public agencies. However, this new delivery method may not be used for construction, remodeling, rehabilitation, or repair of roads, highways, bridges, or potable water or 24
waste water infrastructure. Prior to the passage of HEA 1196 public agencies could utilize the services of a construction manager (CM) for their project but only on an agency basis. That is, the CM would provide professional services to the agency in planning, scheduling, directing and supervising the work of the numerous contractors working on the project, but would not hold the contracts with those contractors. Rather, the public agency would be directly contracting with the contractors, thus assuming the risk inherent in those contractual relationship. The new Construction Manager as Constructor law allows public agencies to contract with a construction manager in an “at risk” position. That is, the CMc is positioned between the
public agency and the contractors performing the work and directly contracting with contractors working on the project, thus reliving the public agency of some of the risk. Most public works projects in Indiana have historically been done under the conventional design-bid-build process allowed under Indiana law. Under this delivery system the public agency, working with its architect and engineers designs the project, puts it out to bids and then awards the project to the lowest responsive and responsible bidder. The Indiana design-bid-build statute was created to protect the interest of taxpayers by ensuring that the project would be done by a qualified contractor at the lowest possible cost. Taxpayers are further protected by provisions
www.buildingindiana.com | MAY / JUNE 2014
CURRENT DESIGN-BID-BUILD LAW PROCESS • The public agency hires architects and engineers to design the project. • When plans and specifications are complete the public agency publicly advertises for bids. • Bidders prepare their bids on a level playing field with all bidders having equal access to design specification and requirements • Bids are opened in a public meeting and each bidders bid is read aloud and entered into the minutes of the meeting. •
The project is awarded to the lowest responsible and responsive bidder. If the public agency determines the lowest bidder is not responsive or responsible they must declare their reason for awarding the project to the next lowest bidder in a public meeting and enter that reason into the minutes of the meeting.
CMC DELIVERY PROCESS UNDER NEW LAW
• Prior to the project being designed, the public agency solicits proposals from firms to provide CMc services •
The public agency’s appointed evaluation committee selects proposals from firms they wish to interview, with no requirement that the interviews be conducted in public. The summary of the evaluation committee’s evaluation will be made public only after the CMc contract has been awarded.
• The public agency and the selected CMc privately negotiate fees related to services provided by the CMc. • The public agency, the CMc, and the architects and engineers design the project. • At some undefined point in the process the public agency and the CMc privately negotiate a price for the project. •
Bids are solicited from contractors wishing to perform various aspects of the work on the project. The CMc is permitted under the law to self-perform up to 20% of the work on the project.
in the law that requires each step in the bidding process to be open, fair, competitive and transparent. The new law eliminates many of these taxpayer safeguards. Here is a simple comparison of the traditional design-bid-build process and the new CMc methods. While the traditional design-bidbuild method protects taxpayers by ensuring an open, fair, transparent and competitive process the new law appears to afford public agencies the ability to hand pick their favorite contractor to be the CMc and then negotiate contracts and prices behind closed doors. The old law was designed to insure favoritism, cronyism, collusion and political corruption did not influence decisions as to who would build public facilities. The new law could undue much of the safeguards built into the old law. As this new delivery method becomes popular among public agencies the public will need to follow events careful to insure the interest of taxpayers is not undermined. MAY / JUNE 2014 | www.buildingindiana.com
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RULE OF LAW
UNDERSTANDING ACA REGULATORY ISSUES Ripple Effect Continues for Hospitals and other Health Care Organizations
By Robert A. Wade, Partner and Chair, Krieg DeVault’s Health Care Practice Group; and Alex T. Krouse, Associate Member, Krieg DeVault’s Health Care and Business Practice Groups
I
t has been over four years since the Affordable Care Act (“ACA”) was signed into law by President Barack Obama and the ripple effect continues for hospitals and other health care organizations. Many individuals and businesses are aware of health insurance mandates and the backlash regarding the recent health reform website, but the regulatory issues impacting the health care industry in Indiana are still making their way through the system. One of the primary goals behind the ACA is to create a system in which health care organizations are more accountable to patients. Health care has largely 26
been a fee for service industry and still is; however changes are on the horizon. The ACA and the regulations following the ACA include many incentives to keep patients healthy rather than treat their diseases and illnesses. This transition to “value based” care is continuing and we are only seeing smaller portions of it occurring now. For example, Indiana has already seen organizations forming Accountable Care Organizations (“ACOs”) such as the Franciscan Alliance and Indiana University Health. The primary goal of an ACO is to allow organizations to work together to share in the savings for keeping patients
healthy. If an organization saves the Federal government money for that specific population, the ACO will receive a portion of those savings. Other examples of this transition to value based care includes penalties for hospitals with higher readmission rates and an overall transition to payments for the quality of care rather than the number of patients cared for. Generally, this transition to value based care has also led to increased focus on legal and compliance issues. From a legal and compliance perspective, the ACA impacts health care organizations in many ways with the goal of creating a more accountable health care
www.buildingindiana.com | MAY / JUNE 2014
system. One of the larger issues health care organizations face relates to overpayments. For organizations that receive reimbursement under a Federal health care program there are now stringent requirements that must be met if an overpayment is received. For example, overpayments received must be reported and returned within 60 days of the date the organization was able to calculate how much they were overpaid. The penalties for keeping overpayments are severe. Organizations that choose to ignore this overpayment requirement are subject to False Claims Act (“FCA”) liability. With respect to the goal of creating accountability, the government has stepped up its focus on fraud prevention and detection. Since 2009, the Justice Department has recovered $17 billion under the FCA and nearly $4 billion in 2013 alone. It has been said that the United States receives $8 for every $1 spent on fraud prevention and detection. Knowing these statistics, it is no wonder the Federal government is relentlessly pursuing overpayments, fraudulent activities, and organizations which may not be compliant with applicable laws. The ACA implemented changes to the Anti-Kickback Statute, the Stark Law disclosure process, and many other laws related to deterring fraud. Although many of these laws have the best intentions, they can create major compliance concerns and additional oversight expense for any organization that is active in the health care arena. Another major change relates to transparency. Under the Sunshine Act, manufacturers of drugs, devices, and medical supplies must now report all payments or transfers of value made to a physician or a teaching hospital. Given the economy in Indiana, with many drug and device companies, this provision has added a lot of compliance issues and additional oversight expense including the possibility of penalties for not reporting payments or transfers of value. These reports, once filed, are available publicly. Finally, the ACA has fueled the need for increased partnerships between different types of health care entities. For example, hospitals are now working directly with skilled nursing facilities to reduce readmission rates. Physician organizations are partnering with or being acquired by hospital systems with the goal of creating better continuity of care. These types of models are changing and transitioning to newer types of models. All of which is still unknown. However, the one impact that is known is that organizations in health care need to be mindful of the compliance risks in every move they make. Given this increased focus on transparency, accountability, and fraud detection, health care organizations have had to transform their own processes to remain compliant. This includes increased technology to ensure documentation requirements are met and increased use of compliance experts to ensure their own internal processes are effective. For now, organizations that regularly do business with health care entities and health care entities themselves must address these concerns and be aware of changes in the future. The impact the ACA has had on health care stretches far beyond the individual and employer mandate. If you or your organization has any questions about the laws and regulations that may apply to your organization due to the ACA, please feel free to contact Robert A. Wade at (574) 485-2002 or Alex T. Krouse at (574) 485-2003. MAY / JUNE 2014 | www.buildingindiana.com
Summer Conference Network with Economic Development leaders throughout the entire state of Indiana.
For more information, or to reserve your spot: Contact Jill Ewing (317)454-7013 jillewing@ieda.org www.ieda.org
Thursday, June 12, through Friday, June 13 Courtyard by Marriott Fort Wayne Downtown 1150 South Harrison St.
The Construction Advancement Foundation
Providing World Class Training and Professional Development to Advance The Construction Industry. 6050 Southport Road, Suite A • Portage, IN 46368 P: 219-764-2883 • F: 219-764-2885 www.cafnwin.org
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SAFETY ZONE
Y T E F M A A S TE T A R IS FFO E By Cynthia Roberts, Professor of Organizational Behavior and Leadership, Teddy Jacobi Dean, College of Business, Purdue University North Central
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orkplace safety is not a one-person job. It takes teamwork to provide a safe, productive environment for employees, clients and patients. Numerous studies have shown the effects of teamwork on helping to ensure a climate of safety. Why teamwork? The benefits of great teamwork include increased productivity, more equitable distribution of the workload, better problem solving and decision making, more positive interpersonal relationships, less chance for injury, and ultimately better patient outcomes. Employees who are part of a wellfunctioning team are also less likely to leave or miss work. They care about each other as well as the quality of work they do. But what are the elements of an effec28
tive team? And what can you do to develop a great team? Firstly a team is considered an interdependent group of individuals who share specific outcomes for their organization. Members are relatively stable over time and rely on each other to achieve the goals of their work unit. Think about the best team experience you have had in the past. If you reflect upon what made it so positive, you will find that it most likely had many of the elements listed below: • Clear relevant goals and performance expectations. The goals set for the group should be achievable and every member understands what it will take on his or her part to accomplish it. Safety is everyone’s goal. Make sure it
is part of the conversation, has a prominent place on meeting agenda, and is part of the performance review process. • Clear understanding of roles and accountability. Each member of the team understands what he must do to keep himself as well as others safe. In addition, members, regardless of their status or professional preparation hold each other accountable for upholding adherence to protocols and proper procedures. • Supportive co-workers and leader. When members of the group are willing to help each other out, the workload is more evenly distributed. Everyone does their part. In fact, in great teams, members re-
www.buildingindiana.com | MAY / JUNE 2014
• Open, effective communication and information sharing. Sharing information is key to building trust in the group and helping the group bond. Every member should play a role in not only sharing information, but actively listening to each other and considering everyone’s viewpoint. Data related to performance and safety (the good, bad, and ugly) should be shared routinely with all members of the team so that everyone is aware of the current status. Great results should be celebrated and less positive results should be considered as opportunities for improvement rather than assigning blame. • Ability to disagree, explore differences in a positive way, and resolve conflict effectively. Teams that have built a positive, trusting environment are more likely to be willing to share negative information, be open to hearing conflicting viewpoints and resolve conflict productively. • Good problem solving and decision making relevant to the situation. Because great teams have an established pattern of effective communication and mutual respect, creativity is enhanced. Members are willing to grapple with tough issues, work through differences and arrive at an effective resolution. Great teams, however, do not happen by chance. It takes a conscious effort to facilitate productive relationships among the members. At every meeting, members should not only pay attention to getting the task at hand accomplished, but also be mindful of the quality of their interactive process. Reflecting upon the following questions after each meeting can help establish positive expectations and pave the way towards better dynamics: Was everyone able to contribute to the conver-
next meeting more positive and/or productive? In addition, there are many ways that you can promote teamwork on the job. Create social opportunities for your people to get to know each other on a personal level. Establish a system of job rotation or cross-training so that members can experience (and appreciate) other positions in the organization. Offer skills training for teamwork, effective communication, and conflict resolution. Increase opportunities for collaboration through participation in task forces, community service projects, continuing education programs, quality initiatives, or special events. The best strategy is for you to be a positive role model. Be open to hearing from all members of the team and ensure that communication lines stay open. Transparency and two-way communication foster trust. Encourage and recognize performance outcomes, positive work relationships and supportive behavior in others. And most importantly, add some humor and fun!
A FOUNDATION of Success
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spect each other, are concerned about each other’s well-being, and actually like working together. Over time good relationships develop a sense of camaraderie between members. They would never let each other work in unsafe conditions.
“Knowledge is information that changes something or somebody -- either by becoming grounds for actions, or by making an individual (or an institution) capable of different or more effective action.” - Peter F. Drucker in The New Realities
range of services to its participants in the unionized construction industry; which includes contractors, labor union organizations and construction industry and related workers. It is our purpose to provide a vehicle to help establish caused by the use of drugs and alcohol. We recognize our responsibility to communicate and of drugs and alcohol in our society and workplace.
sation? Did members listen respectfully to each other? Did the conversation stay on topic? Was conflict resolved effectively? Was the conversation productive? Did the task get accomplished? Is everyone clear on the next steps? What about
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our process do we need to improve to make our MAY / JUNE 2014 | www.buildingindiana.com
29
BOTTOM LINE
WHY DOES FAMILY WEALTH FADE AWAY? Advice for Preserving Your Family’s Wealth for Future Generations
By Steven M. Gronceski, CFP™, Vice President, Wealth Management, Strategic Financial Group, LLC.
Many are the stories of family wealth lost. In the late 19th century, industrial tycoon Cornelius Vanderbilt amassed the equivalent of $100 billion in today’s dollars – but when 120 of his descendants met at a family gathering in 1973, there were no millionaires among them. Barbara Woolworth Hutton – daughter of the founder of E.F. Hutton & Company, heiress to the Woolworth’s five-and-dime empire – inherited $900 million in inflationadjusted dollars but passed away nearly penniless (her reputed net worth at death was $3,500). Why do stories like these happen? Why, as the Wall Street Journal notes, does an average of 70% of family wealth erode in the hands of the next generation, and an average of 90% of it in the hands of the generation thereafter? And why, as the 30
Family Business Institute notes, do only 3% of family businesses survive past the third generation? Lost family wealth can be linked to economic, medical and psychological factors, even changes in an industry or simple fate. Yet inherited wealth may slip away due to a far less dramatic reason. What’s more valuable, money or knowledge? Having money is one thing; knowing how to make and keep it is another. Business owners naturally value control, but at times they make the mistake of valuing it too much – being in control becomes more of a priority than sharing practical knowledge, ideas or a financial stake with the next generation. Or, maybe there simply isn’t enough time in a business owner’s 60-hour workweek to convey
the know-how or determine an outcome that makes sense for two generations. A good succession planner can help a family business deal with these concerns. As a long-term direction is set for the family business, one should also be set for family money. Much has been written about baby boomers being on the receiving end of the greatest generational wealth transfer in history – a total of roughly $7.6 trillion, according to the Wall Street Journal – but so far, young boomers are only saving about $0.50 of each $1 they inherit. If adult children grow up with a lot of money, they may also easily slip into a habit if spending beyond their means, or acting on entrepreneurial whims without the knowledge or bootson-the-ground business acumen of mom and dad. According to online legal ser-
www.buildingindiana.com | MAY / JUNE 2014
vice Rocket Lawyer, 41% of baby boomers (Americans now aged 50-68) have no will. Wills are a necessity, and trusts are useful as well, especially when wealth stands a chance of going to minors. Vision matters. When family members agree about the value and purpose of family wealth – what wealth means to them, what it should accomplish, how it should be maintained and grown for the
Editor’s Note: After determining the distribution and beneficiaries of one’s estate, it’s important to strategically plan the management and caretaking of the estate across future generations. Most individuals determine the outcomes of the majority of financial decisions regarding their wealth, and it can be difficult at times to determine a successor to take on the responsibility. However, this
future – that shared vision can be expressed in a coherent legacy plan, which can serve as a kind of compass. There are several key goals that should be focused on when developing a legacy plan, such as the formulation of continued caretaking and management to protect the estate for years to come. After all, estate planning encompasses much more than strategies for wealth transfer, tax deferral and legal tax avoid-
ance. It is also about conveying knowledge – and values. In the long run, nothing may help family wealth more.
step is essential to the continued success of the estate, and the successors must be informed of the values and outlook of the founder in order to ensure that the assets are managed properly.
do not realize that these responsibilities can be shared across multiple people – there need not be a lone successor. It’s absolutely paramount that a plan is set in place for future generations to follow – one cannot navigate very well without a map. This also applies to estates without businesses, because stewardship of the assets need not fall exclusively on the beneficiaries – the management should fall on the most responsible party, the one likely to manage it well over the long term.
When it comes to businesses, for example, the owner must establish who will take over the company, who will be a beneficiary for its income, and how the company should be managed into the future. Often when planning a legacy, individuals
(For the complete article, please visit our website at www.buildingindiana.com)
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MAY / JUNE 2014 | www.buildingindiana.com
31
FINANCE Facts & STats Hoosier Mortality Statistics
Life Expectancy at Birth (in years) by State
For calendar year 2011, Published in 2013 The five leading causes of death in 2011 were diseases of the heart, malignant neoplasms (cancer), chronic lower respiratory diseases, cerebrovascular diseases (stroke), and accidents (unintentional injuries). Together, these five causes accounted for
62.7%
Diseases of the heart accounted for
Cancer accounted for
23% 22.6%
Indiana - 77.6 years Illinois - 79.0 years Ohio - 77.8 years Michigan - 78.2 years Kentucky - 76.0 years Source: The Henry J. Kaiser Family Foundation
of all deaths
In 2011, the leading causes of death for residents ages 5-34 were accidents (unintentional injuries) with 666 deaths, intentional self-harm (suicide) with 260 deaths, and assault (homicide) with 161 deaths.
In Indiana, the life expectancy (in years)
Males
Source: Indiana Department of Health
75.1
Female
80.0
Source: The Henry J. Kaiser Family Foundation
Leading Causes of Death
Indiana’s Age-Adjusted Invasive Cancer Incidence Rate per 100,000 Population by Gender: 6,966
Heart Disease
6,428 7,007
Cancer
6,135
Chronic Lower Respiratory Diseases
1,280
Stroke
Accidents
Alzheimer’s Disease
Total Population, by Sex: Indiana Residents, 2011
1,867
Female
411.5
Source: The Henry J. Kaiser Family Foundation
26.0%
1,013 556 1,498
This figure ran on July 1, 2013
Across all states, the prevalence of cigarette smoking among adults ranges from 9.3% to 26.5%. Indiana ranks 50th among the states. Source: The Centers for Disease Control and Prevention
Overall State Health Rankings from the United Health Foundation
1,676
Number of Deaths
32
497.2
In Indiana, of the adult population are current cigarette smokers.
1,905 2,202
Males
Male
Female
Indiana - 41 (1 = the healthiest state, 50 = unhealthiest) Hawaii - 1 Vermont - 2 Source: America’s Health Arkansas - 49 Rankings, published by the United Health Foundation Mississippi - 50 www.buildingindiana.com | MAY / JUNE 2014
Figures on Employer Based Health Insurance in Indiana Source: The Henry J. Kaiser Family Foundation, 2012 timeframe
Average Single Premium per Enrolled Employee For Employer-Based Health Insurance Employee Contribution Employer Contribution Total $1,157 $4,347 $5,504
In Indiana, Indiana the average Inpatient Expenses hospital adjusted expenses per inpatient day
Average Family Premium per Enrolled Employee For Employer-Based Health Insurance Employee Contribution Employer Contribution Total $3,547 $11,914 $15,461 Average Employee-Plus-One Premium per Enrolled Employee For Employer-Based Health Insurance Employee Contribution Employer Contribution Total $2,735 $8,175 $10,910
= $2,025
Source: The Henry J. Kaiser Family Foundation
State Obesity Rates Indiana - 31.4% Illinois - 31.4% Ohio - 30.1% Michigan - 31.1% Kentucky - 31.3% Source: United Health Foundation
State Physical Inactivity Comparisons Indiana - 25.9% Illinois - 21.8% Ohio - 25.2% Michigan - 23.3% Kentucky - 29.6%
Physical Inactivity is the percentage of adults who report doing no physical activity or exercise (such as running, calisthenics, golf, gardening, or walking) other than their regular job in the last 30 days. The 2013 ranks are based on self-report data from CDC’s 2012 Behavioral Risk Factor Surveillance System (BRFSS).
Prescription Drugs in Indiana Total number of retail prescription drugs filled at pharmacies in Indiana (2011)
Circle “R” Electric, Inc. (219) 762.5588
Current Electric, Inc. (219) 872.7736
DJL, Inc. d/b/a K.B. Electric (219) 872.4639
Ellis Electric, Inc. (219) 926.7400
K V Electric (219) 987.2646
Residential Electric (219) 362.8886
New Age Telecom, Inc. (219) 369.4355
Stephani Electric (219) 362.2219
= 72,975,200
Source: The Henry J. Kaiser Family Foundation
MAY / JUNE 2014 | www.buildingindiana.com
33
COVER STORY
HONORING NWI’S CONTRACTORS Construction Advancement Foundation (CAF) Celebrates Industry Achievements By Nick Dmitrovich
C
onstruction Advancement Foundation of Northwest Indiana (CAF) recently held its annual awards ceremony to celebrate industry achievements. Hosted in conjunction with the Northwest Indiana Business Roundtable (NWIBRT) Safety Awards, the evening honors the best projects undertaken by NWI’s industrial, commercial and public works projects and the companies behind them. Nominees are selected based on how well they meet or exceed the following criteria: safety; excellence in partnering and teamwork; quality in project management; innovation and uniqueness in construction techniques; sympathy for the environment and its surroundings; character and value that was added to the community; and craftsmanship.
The Ross Group, Inc. won the Excellence in Professional Development Award. Pictured are (l to r): Zane Baker, CAF Board Member Brad Niebert, Kirt Witham and Kevin Symons.
34
“The construction companies that make up the CAF’s membership represent some of the absolute best companies found anywhere in the construction industry,” said Dewey Pearman, Executive Director of the CAF. “Their commitment to safety, innovation, creativity and quality workmanship helps augment the entire field of construction, and their willingness to learn and continue to evolve helps sustain the levels of success that they have worked so hard to develop. We couldn’t be prouder of these companies, and tonight is all about honoring their achievements.” “This year’s award winners have provided economic development opportunities throughout the entire Northwest Indiana region and are major drivers of job creation – something every business
in our region can appreciate. It is the CAF’s mission to continue advocating for the industry; to constantly find new pathways towards future development, and to inspire our members to learn about new growth opportunities,” Pearman said. The Pangere Corporation was the Commercial Project of the Year winner for the CAF’s new Construction Safety Institute Building in Portage. The Construction Safety Institute is a unique building in that it was designed using only U.S.A. made materials and will be used to train other construction industry professionals. “The project had some unique turns in that it was being built next to an existing underground pipeline, requiring multiple coordination meetings between Pangere, BP and the CAF Design Team to address
Superior Construction Co., Inc. earned the Public Works Project of the BMWC Constructors won the Industrial Contractor of the Year award. Year award for the Whiting Lake Front Revitalization Project. Pictured Pictured are, back row (l to r): Jimmy Shue, Nick Randles, Troy Soltis, are (l to r): Whiting, Indiana Mayor Joseph Sathura, CAF Board Greg Kroh, Jeff Punak, Andy Thomas. Front row: Doug Patton, Chris Member Brad Niebert and Steve Fernandez. Buckman, CAF Board Member Brad Niebert, Rick Stovall, Bill Sanchez, Eric Schmidt, Tom Wiatrowski, and Kristyn Loudermilk.
www.buildingindiana.com | MAY / JUNE 2014
the concerns of the pipeline company and the needs of the owner,” said Bill Rathjen, Executive Vice President of The Pangere Corporation. “It also required close communications with suppliers and subcontractors to coordinate the “Buy USA” requirements on the project, addressing the unusual issues that the site and type of building use created through the construction process.” “We are extremely proud of the way our project management and field supervision teams conducted themselves and completed the project successfully. We are also delighted to see they are being recognized for their efforts with this award,” Rathjen said. Graycor Industrial Constructors Inc. was awarded the title of Industrial-Capital Project of the Year winner for the work they performed on the installation of two wet flue gas desulfurization (WFGD) units at NIPSCO’s R.M. Schahfer Generating Station in Wheatfield, Indiana. When asked about some of the unique aspects of the project that earned Graycor the award for Industrial-Capital Project of the year, Kevin Grooms, Construction Manager for the project, said, “We believe performing 340,000 man-hours without an injury and our continuous effort to reduce the safety
Thatcher Foundations Inc. earned the Maintenance/Service Contract Work project of the year award. Pictured are, front (l to r): Anna Skelton, Van Sutphen, CAF Executive Director Dewey Pearman, Michael Wysockey, Ben Milbrath. Back (l to r): Dave Cooper, Glenn Rodd, Greg Osborn, John Wysockey, Rick Owens, John Popplewell.
risks on the project helped earn Graycor this award. One of the unique features of this project was that Graycor’s team was able to utilize the company’s new state-ofthe-art fabrication shop located in close proximity to the job to modularize a significant number of components.” “Graycor is extremely honored to achieve this prestigious award,” said Grooms. “We greatly appreciate the opportunity to work for clients – through the cooperation of the Northwest Indiana Building & Construction Trades – who promote safe and productive projects.” Sam Potter, President of Graycor, said, “Graycor continues to work hard to improve areas we know are crucial in our business. For the past several years, we’ve steadily reduced our recordable incident rate by at least 20 percent to our current rate of 0.64, and we recently successfully renewed our quality certifications for ISO, AISC, ASME and national boards.” “Because Graycor has provided construction services in the Northwest Indiana Region since the 1920s, we value our long-established relationships with clients such as ArcelorMittal, BP, NIPSCO and U.S. Steel. We’re proud and honored to continue to do business with these clients today,” Potter added.
Superior Construction was the lead contractor on the Whiting Lakefront Revitalization project, which involves the beautification of the Whiting shoreline into a new regional destination complete with a new two-tiered boardwalk that connects to trails leading to Chicago and Hammond, new nature upgrades and a new event center. Superior’s efforts earned them the Public Works Project of the Year award. Steve Fernandez, Project Supervisor with Superior, said, “It is an honor to win this award. This is a great accomplishment for our Superior, our employees and also a great success for the city of Whiting.” Fernandez went on to cite some unique features of the project, saying, “Safety was always at the forefront of every employees mind on this project. The unique pile driving template was designed specifically for this project to help better align the piles, and the steel template also functioned as a safety work platform for the pile drivers. The focus Superior had for the environment while working in Whiting as well as on Lake Michigan was immense. The overall result of improving the human connection to the lakefront and preserving the history of Whiting’s lakefront was very successful.”
Falk-PLI Engineering & Surveying earned the Professional Engineering Walsh & Kelly, Inc. took home the Highway Contractor of the Year Contractor of the Year award. Pictured are (l to r): Scott Falk, Dorothy award. Pictured are (l to r): Doug Robinson, Jerry Hancock, CAF Board Falk, Mike Young, CAF Board Member Brad Niebert, Mike Falk, Member Brad Niebert, Jeff Swan, Dan McClure and John Wall. Shanon Otto, Ralph Pollaro, Nancy Hake. .
MAY / JUNE 2014 | www.buildingindiana.com
35
COVER STORY
Tricia Hanrath, Safety Director with Superior, said her office was most proud of, “Safe work productivity, and achieving this award as well as the NWIBRT Safety Excellence award.” Thatcher Foundations took home two awards at this year’s CAF awards ceremony: Specialty Contractor of the Year and Maintenance/Service Contract Work Project of the Year for the company’s efforts in rehabilitating and repairing the docks at ArcelorMittal. John Wysockey, Vice President of Thatcher Foundations, said, “We’re very excited and very humbled to be recognized for these accomplishments, and we’re very appreciative.” Michael Wysockey, President/CEO of Thatcher Foundations, said, “We are very excited about winning these prestigious awards. This is our first time winning the Maintenance award, and we are honored to have won the Specialty Contractor of the Year award for five of the past six years. This past year has been our first calendar year without a single recordable injury in our company, and we were founded in 1946.” This year’s Excellence in Professional Development award went to The Ross Group, Inc. “Winning the Excellence in Professional Development Award means a
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CAF 2014 Award Winners Excellence in Professional Development The Ross Group, Inc. Maintenance/Service Contract Work Thatcher Foundations Inc. ArcelorMittal Dock Repair Industrial-Capital Project of the Year Graycor Industrial Constructors Inc. NIPSCO WFGD Project Commercial Project The Pangere Corporation Construction Advancement Safety Institute Public Works Project of the Year Superior Construction Co., Inc. Whiting Lake Front Revitalization Project Commercial Contractor of the Year Hasse Construction Co., Inc.
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Industrial Contractor of the Year BMWC Constructors Professional Engineering Falk-PLI Engineering & Surveying Specialty Contractor Thatcher Foundations Inc. Highway Contractor Walsh & Kelly, Inc.
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www.buildingindiana.com | MAY / JUNE 2014
lot to The Ross Group,” said Kirt Witham, Director of Business Development with The Ross Group. “We’re constantly striving to find innovative ways to expand the skill-sets of our employees through continuing education opportunities and training, especially when it comes to new technology and safety. Learning is the key to growth, and we’re very proud of the efforts our team has made to constantly move forward and improve their already outstanding abilities.” Hasse Construction Co., Inc. was awarded the distinguished Commercial Contractor of the Year award at this year’s ceremony. When asked what achievements he was most proud of this year, John Hasse, Secretary and Construction Manager with Hasse Construction, said, “We’re very proud of the quality construction efforts of all of our tradesmen and women. We’re also proud of the reputation we’ve earned with our clients, many of which are repeat clients, because it makes us feel very good about all of the hard work we’ve been doing.” He mentioned some of the company’s biggest projects this year saying, “This year we worked on a lot of interesting projects; Roehl Trucking in Gary, which was a rehab project, and lots of work at Community Hospital in Munster, and oth-
The Pangere Corporation earned the Commercial Project of the Year award. Pictured are (l to r): Felix Duron, Don Ellingsen, Bill Rathjen, Jim Vermillion, CAF Chairman Shawn Kelly, Jeff Scheub, and Mike MacDonald.
ers.” He said some of the company’s plans for the future include “continuing to strive for excellence, and remaining the premier contractor in Northwest Indiana.” BMWC Constructors was honored with the Industrial Contractor of the Year award. John Manta, BMWC’s Vice President of Marketing and Sales, said that the company was particularly proud of its achievements at the BP Whiting Refinery this year. “On behalf of all the men and women of BMWC that help build our projects safely across North America, BMWC humbly accepts this award in their honor as Industrial Contractor of the Year. While every project that BMWC completes safely, on time and on budget, is a testament to our workforce, this year we are particularly proud of the BP Whiting Refinery #12 Pipestill Transitional Outage Project. With the support of Mr. Mike Berna, the BP Management team and all of our subcontractors, this innovative, collaborative and complex project was completed in half the time as originally scheduled, which brought significant revenue savings to the BP Whiting refinery and made a lasting impression on all that were involved,” Manta said. Falk-PLI Engineering & Surveying earned the Professional Engineering Contractor of the Year award, and com-
pany President and CEO Mike Falk said he was most proud of the return on investment for his clients across numerous Falk-PLI projects. “We continue to be grateful for the opportunity to help our clients manage schedule, budget, and risks associated with projects. Often we focus on the larger capital projects to drive process improvements, however as evidenced by our nominated projects, improved maintenance practices can also significantly impact ROI,” he said. The CAF presented Walsh & Kelly with the Highway Contractor of the Year award during this year’s ceremony. “Of course our company, Walsh & Kelly, is honored to win the Highway Contractor of the Year Award for our efforts this year – but more importantly than that, we’re honored to have a company that consists of some of the finest construction professionals in the industry. The men and women that are involved in our company are some of the most professional, dedicated, informed and expert people we could ever hope to have on our team. Winning this award wouldn’t be possible without their hard work and commitment to safety and excellence,” said Daniel McClure, Project Manager/Estimator with Walsh & Kelly.
The Industrial-Capital Project of the Year award went to Graycor Hasse Construction Co., Inc. earned the Commercial Contractor of the Industrial Constructors Inc. Pictured are (l to r): Jill Neibert, Jay Beere, Year award. Pictured are Bill Hasse, CAF Board Member Brad Niebert, Bryan Knudsen, Cheryl Hansen, Kevin Grooms (Accepting on behalf and Fred Armstrong of Graycor), Steve Sandberg, Tom Gore, Mickie Gore, Shawn Kelly (presenting), Ted Vrehas, Jim Armour, Brad Neibert, Randy Hynek, Sam Potter, Preet Singh, Aman Singh, Kim Sandberg.
MAY / JUNE 2014 | www.buildingindiana.com
37
COVER STORY
IF YOU PUT SAFETY FIRST,
SUCCESS FOLLOWS
Tim Maley, Deputy Commissioner of the Indiana Department of Labor, was a guest presenter at the awards banquet.
NWIBRT Awards Night Celebrates Stellar Performances in Construction Safety By Nick Dmitrovich
E
very spring, the Northwest Indiana Business Roundtable (NWIBRT) hosts its annual Safety Awards Banquet to honor Northwest Indiana companies that have exhibited outstanding achievements in safety practices throughout their facilities and jobsites. The event is held in tandem with the Construction Advancement Foundation’s (CAF) Construction Awards ceremony and represents a combined effort between the two organizations to celebrate the continued success of the region’s construction industry professionals and their companies. “The annual CAF/NWIBRT Awards Ceremony is a very important event for the contractor companies and the safety professionals that support them. This event gives company owners and managers an opportunity to see how their performance compares to that of their competitors. It also re-enforces how much emphasis the owner companies place on safety and the expectation for contractors to continuously improve. The NWIBRT Safety Committee annually awards contractors for innovative and superior safety accomplishments, and the Northwest Indiana contractor community as a whole ranks nationally at the top in safety statistics,” said Jeff Scheub, Field Safety Manager of the Pangere Corporation and NWIBRT Award Committee Chair. “I believe that the owner companies of NWIBRT share in the proud tradition of safety in the work place and should be recognized for the value and culture they share with contractor members on a day to day basis. At this year’s award event
More than 600 people attended the CAF-NWIBRT Awards Banquet to celebrate outstanding achievement in construction and safety excellence.
Sheck Mechanical Corporation earned an Excellence Award. Pictured are (l to r): Eric Estes, NWIBRT Executive Committee Chairman Joe Coar, Steve Fawbush, and George Cooper.
Solid Platforms, Inc. earned an Excellence Award. Pictured are (l to r): Mike Brewster, Jason Lammertin, Chris Clare, NWIBRT Executive Committee Member Don Bull, Sam Marasco, Tom Dunajeski, Richard Goetz.
38
www.buildingindiana.com | MAY / JUNE 2014
AMS Mechanical Systems, Inc. earned a Recognition Award. Pictured are (l to r): Chris Amity, NWIBRT Executive Committee Chairman Joe Coar, Mark Rook, and Bret Bol.
Brandenburg Industrial Service Company earned the Contractor of the Year Award. Pictured are, back row (l to r): Neville Hayes, Marvin Wogronic, Jorge Rojas, Drew Deichmann, Tim Garvey, Andy Youpel. NWIBRT Executive Committee Chairman Joe Coar is presenting the award to JoLynn Graca.
the contractor members and the owner companies of NWIBRT will unite to share our goals, our accomplishments and our excellence in safety,” Scheub said. Andrea Pearman, NWIBRT’s Executive Director, said, “There are two key reasons why we’re holding this award ceremony tonight; one is to honor outstanding achievement in safety in a professional/business sense, and the other is to celebrate the humanitarian side of safety. Our award winners tonight are the companies who keep their workers safe on the job so they can return home to their families each night, and that is truly something worth celebrating. NWIBRT is very proud to be presenting these awards to tonight’s winners.” Rick Foor, Chair of the NWIBRT Safety Committee and Health, Safety, Security & Environmental Assurance Auditor at BP, said, “CAF and NWIBRT collaborate on this event because both organizations know how important it is to recognize the ongoing success of safety in the construction industry. Tonight’s winning companies have done an outstanding job of ensuring the safety and security of all of their workers.” Tim Maley, Deputy Commissioner of the Indiana Department of Labor, and NWIBRT Executive Director Pearman presented the Owner Excellence in Leadership Awards to this year’s winning companies: BP and NIPSCO. Award Committee Chair Scheub said, “The NWIBRT Safety Committee awards contractors for innovative and superior safety accomplishments, and the MAY / JUNE 2014 | www.buildingindiana.com
The Ross Group, Inc. earned an Achievement Award. Pictured are (l to r): Zane Baker, NWIBRT Executive Committee Vice Chairman Bill Satterlee, Kirt Witham, and Kevin Symons.
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CONGRATULATIONS! COVER STORY
2014 Achievement in Safety Award Recipient
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Northwest Indiana contractor community as a whole ranks nationally at the top in safety statistics. These two companies, BP and NIPSCO, are a shining example of these achievements.” It’s incredibly important to remember that the face of Northwest Indiana’s construction industry would be drastically different from what it is today if it weren’t for the efforts of this event’s honorees. For one, costs of construction projects would be much higher due to the time lost from what would certainly be a higher rate of injuries, which would have a direct impact on the entire region’s economy. Secondly, there would be many more situations involving lives needlessly lost on the job; which is truly a tragedy that’s prevented every day by the commitment that these winners make to safety across their companies and projects. NWIBRT is just as proud to present these awards to the winners as they are to receive them, because this evening’s honorees collectively form a big picture of true safety excellence throughout Northwest Indiana’s construction industry. “These men and women have done outstanding work this year,” said NWIBRT Executive Committee Chairman Joe Coar. “We’re happy to honor them, because they protect the lives of our workers, family members and friends.” For a complete listing of the criteria involved with each type of award, please visit www.nwibrt.org/awards.
www.mechanicalconceptsinc.com
Mechanical Concepts, Inc. earned an Achievement Award. Ralph Neff (left) is shown accepting the award from NWIBRT Executive Committee Member Don Bull (right).
BMWC Constructors earned an Achievement Award. Pictured are, back (l to r): Jimmy Shue, Nick Randles, Troy Soltis, Greg Kroh, Jeff Punak, Andy Thomas. Front: Doug Patton, Chris Buckman, NWIBRT Committee Member Don Bull, Rick Stovall, Bill Sanchez, Eric Schmidt, Tom Wiatrowski, Kristyn Loudermilk.
Stevenson Crane Service, Inc. earned an Excellence Award. Pictured are (l to r): Ryan Carley, Pat Delis, and NWIBRT Executive Committee Chairman Joe Coar.
ACMS Group, Inc. earned an Achievement Award. Pictured are (l to r): Karen Robinson, Nate Robinson, Bo DePaoli, Loydd Hayes, NWIBRT Executive Committee Member Don Bull, Jim Harvey, Jim DePaoli, and Nancy DePaoli.
BP earned an Owner Excellence in Leadership Award. Pictured are (l to r): Jawed Ziadi, Jim Wimberley, Pat Freeney, Mike Schwerha, NWIBRT Executive Committee Member Don Bull, Rick Foor, Steve Rahn.
The American Group of Constructors earned a Recognition Award. Pictured are (l to r): Stacy Keilman, Stan Wyatt, Danny Jones, Justin Rich, NWIBRT Executive Committee Vice Chairman Bill Satterlee, Matt Gall, Holli Mullenix, and Scott Tilford.
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www.buildingindiana.com | MAY / JUNE 2014
T H I S
Y E A R ’ S
A W A R D
OWNER EXCELLENCE IN LEADERSHIP AWARDS • BP • NIPSCO CONTRACTOR OF THE YEAR • Brandenburg Industrial Service Company EXCELLENCE AWARD • Brandenburg Industrial Service Company • Superior Construction Co., Inc. • Solid Platforms, Inc. • Interstate Environmental Services, Inc. • Manta Industrial, Inc., a K2 Industrial Services Company • Meade • Mid-American Group • Scheck Mechanical Corporation • Stevenson Crane Service, Inc. • MC Industrial, Inc. • Imperial Crane Services Inc. • Cornerstone Electrical Consultants, Inc. • Middough Inc. • R.J. Mycka, Inc. • Cardno ATC • Airgas On-Site Safety Services • CATSI, Inc. • Ambitech Engineering Corporation • Nooter Construction Company
W I N N E R S
• Thatcher Foundations Inc. • Hayes Mechanical • BMWC Constructors • Gariup Construction Co., Inc. • ACMS Group, Inc. • M & O Environmental Company • BRAND Energy & Infrastructure Services, Inc. • Correct Construction, Inc. • DLZ Industrial, LLC RECOGNITION AWARDS • Graycor Industrial Constructors Inc. • Atlantic Plant Services, LLC • AMS Mechanical Systems, Inc. • Code Red Safety • Tranco Industrial Services, Inc. • Tonn and Blank Construction, LLC • M & O Insulation Company • Safway Services, LLC • The American Group of Constructors • EMCOR Hyre Electric Company of Indiana, Inc. • KM Plant Services, Inc., a K2 Industrial Services Company • Hasse Construction Company, Inc. • Sargent Electric Company • Matrix North American Construction Inc. • Korellis Roofing, Inc. • Amex Nooter, LLC INNOVATION AWARD • Hayes Mechanical • NIPSCO
ACHIEVEMENT AWARD • Walsh & Kelly, Inc. • Mechanical Concepts, Inc. • The Ross Group, Inc. • G. E. Marshall, Inc.
ROGER WALTERS AWARD • Matt Ireland, Hayes Mechanical
Airgas On-Site Safety Services earned an Excellence Award. NWIBRT Executive Committee Vice Chairman Bill Satterlee (left) is presenting the award to Rich Greene.
EMCOR Hyre Electric Company of Indiana, Inc. earned a Recognition Award. Pictured are (l to r): Tom Gozdecki, Randy Parker, Tom Coulter, Larry Hepp, NWIBRT Executive Committee Chairman Joe Coar, Dane Bormann, Tom VanDermeer.
Matt Ireland, of Hayes Mechanical, won the Roger Walters Award. NWIBRT Executive Committee member Don Bull is presenting him the award.
Tranco Industrial Services, Inc. earned a Recognition Award. Pictured are (l to r): Tim Beck, NWIBRT Executive Committee Member Don Bull, and Bill Lucaitis.
NIPSCO took home one of this year’s Innovation Awards. Back row, left to right: Randy Hynek (of Graycor Industrial Constructors), Matt Ireland (of Hayes Mechanical), Russ Adams, Bryan Burns. Front row: Terry O’Grady (of Pekron Consulting), Ashley Tolton, Jenn Miller, Doug Patton (of BMWC Constructors), NWIBRT Executive Committee Chairman Joe Coar, and Don Bull.
BRAND Energy & Infrastructure Services, Inc. earned an Achievement Award. Pictured are (l to r): John Kasang, Robert Schiller, NWIBRT Executive Committee member Don Bull, Jon Rogers.
MAY / JUNE 2014 | www.buildingindiana.com
41
SMALL BUSINESS
Where Are They Now? ST. ANDREW’S PRODUCTS By Nick Dmitrovich
To commemorate twenty years in business, the Regional Development Company (RDC) looks back at a few of the most successful borrowers and how the 504 Loan has helped their business evolve.
T
here are many businesses out there that would love to expand their operations, but are constrained by their financial resources. The Regional Development Company, of Valparaiso, IN, works specifically to solve this problem by helping companies procure SBA 504 Loans – which in turn has spawned growth and job creation across numerous industries. One company that has benefited tremendously from this initiative is St. Andrew’s Products, of Michigan City, IN. St. Andrews Products is an independently owned promotional and apparel supplier, manufacturer and sales company. As a leading wholesaler to the golf industry, and numerous other premier organizations, St. Andrews Prod42
ucts carries the licenses for the PGA of America, the NFL, the University of Notre Dame, and many others. A huge array customized promotional items, including everything from golf gear, to t-shirts and holiday goods can be found across their websites. Back in 1998, the company took out a 504 small business loan with the help of the RDC. No one at St. Andrews Products was fully aware of what an enormous impact this loan would make on their business. The loan was used to purchase new screening and manufacturing equipment for the embellishment of their many products—but what it really bought the company was independence. Before the loan, St. Andrews Products had relied heavily on outside
sources to help them screen print, embroider, and embellish their clients’ materials. This outsourcing made the company subject to the schedules, and the added costs, of their vendors. But, thanks to Regional Development Company, St. Andrews Products was able to purchase their own manufacturing equipment and gain internal control of all phases of manufacturing and production for their clients. Almost 15 years after purchasing their equipment, St. Andrews Products has grown exponentially. The business employed 24 workers at the time of their 1998 loan. Today, they have doubled their workforce to 48. The purchase of their manufacturing equipment has also helped their revenue stream increase
www.buildingindiana.com | MAY / JUNE 2014
from $5 million to an amazing $12 million dollars a year. With such a successful business model, it’s no wonder that St. Andrews Products has landed lucrative accounts with businesses such as ESPN and the University of North Carolina. James “Skip” Strzelecki, President of St. Andrews Products, detailed his experiences with Regional Development Company, saying, “I couldn’t be happier with the professionals at RDC. They’re truly some of my favorite people. They’re great for small and medium sized businesses, and they helped us grow. They’re easy to work with and understanding.” “Banks tend to be more concerned with the numbers, whereas Regional Development Company is more aware and in tune with small businesses and their needs,” Strzelecki said. “They want to help the Northwest Indiana region grow by helping small businesses grow, and they’re willing to give businesses a chance. They’re like the guardian angels to small businesses
like St. Andrews Products.” “Our 504 loan enabled us to be a full blown manufacturer as opposed to relying on other companies to do the manufacturing,” he added. Erica Dombey, President and Executive Director of the RDC, said, “Our partnership with St. Andrews Products for their 504 loan is a snapshot of everything we’re trying to accomplish at the Regional Development Company. They have been able to double their workforce, providing more jobs to the region, and have more than doubled their revenue stream, bringing further economic development to Indiana. Their entire case is very indicative as to what a company can accomplish with the right kind of support behind them, and we feel very fortunate to have been a part of their growth. We couldn’t be more proud of St. Andrews Products, and we wish them continued success throughout the coming years.” St. Andrews Products’ goal is to be the top supplier of promotional products, branded apparel and golf accesso-
MAY / JUNE 2014 | www.buildingindiana.com
ries and gifts to the corporate and golf markets. Companies like St. Andrews Products, and other Regional Development Company 504 loan borrowers, achieve their goals every day thanks to their constant pursuit of quality, competitive prices, tireless work ethic, and careful attention to all new opportunities. The Regional Development Company is a Certified Development Company licensed to make loans under the SBA 504 with a focus on assisting small businesses prosper to their full potential. For more information on what RDC can do for your business, visit www.rdc504.org or call 219-476-0504.
43
MASS PRODUCTION
Manufacturing Medical Marvels Shining a Spotlight on Indiana’s Medical Device Manufacturing Industry
Indiana’s 25 largest Medical device Companies (Employment) Advantis Medical American Renolit AO Safety Beckman Coulter Biomet Boston Scientific C&A Tool Engineering Cook Group DePuy EHOB Fort Wayne Metals Helmer Heraeus Kulzer Hologic King Systems Medtronic Micropulse Paragon Medical Point Medical Quadrant Roche Diagnostics Smiths Medical Symmetry Medical TP Orthodontics Zimmer Source: BioCrossroads
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By Nick Dmitrovich
T
he Indiana life sciences industry generates a whopping $9.7 billion each year in exports; making it number two in the United States for life science exports. One key component of the overall picture of Hoosier life sciences is medical device manufacturing, which consists of virtually any kind of medical equipment ranging from orthopedic implants, surgical instruments, sterilization equipment, and much more. According to BioCrossroads, Indiana’s designated life science industry catalyst, “Indiana’s medical device industry is one of the state’s most valuable economic assets and has made Indiana a nationally recognized leader in the health care sector. The sector employs over 20,000 people, accounting for more than 40 percent of the jobs in the state’s life sciences industry, and has propelled Indiana to the fifth largest state in percentage of medical technology industry employment.” “The industry generates more than $10 billion of annual economic output, and its reach extends far beyond direct employees because of its extensive supply chain and heavy concentration of manufacturing operations.” Peggy Welch, Executive Director of the Indiana Medical Device Manufacturer’s Council (IMDMC) and former Indiana State Representative, spoke about the current state of the medical device industry in Indiana and its current focus.
“We have a very vibrant and robust medical device manufacturing industry in Indiana. We’re very fortunate to be a vital part of a very strong general life sciences industry. Large multi-billion dollar companies like Zimmer, Biomet, and Cook are headquartered in Indiana, and they and many other large medical device companies serve as anchors to the many smaller companies who provide contract manufacturing . Based on the research we have, there are about 325 medical device manufacturing companies in Indiana, and they are located all across the state. Also the state has been very supportive with tax laws to encourage growth,” Welch said. “One of the reasons Indiana is so strong in medical manufacturing is the concentration of very smart men and women who are doing the research and innovation for new products that save lives and enhance the quality of life for patients. And typically manufacturing is close to the place of development,” Welch said. IMDMC and Indiana’s medical device companies pay close attention to tax laws, such as the federal medical device excise tax (MDET) and the proposed changes to Indiana’s research and development tax credit during the 2014 Indiana legislative session. Companies were concerned that changes to the Indiana R&D tax credits would inhibit new developments in the www.buildingindiana.com | MAY / JUNE 2014
FACTS ABOUT HOOSIER MEDICAL DEVICE MANUFACTURING • For years, Indiana has been considered to be one of the top five states for medical device manufacturing. • Warsaw, IN is the orthopedic capital of the world. Approximately one-third of the medical implants used worldwide are made in Warsaw. • The medical device manufacturing Industry generates about $10 billion in annual economic output. • Over 20,000 Hoosiers are employed in the medical device manufacturing industry. Sources: IMDMC, BioCrossroads
advanced manufacturing jobs. Even the line jobs involve complex computer programing for the operation of robots. These positions require post-secondary education and training. How do we get people trained for these high-paying, stable jobs? Two ways are to provide state incentives for more internships and advanced on-the-job training and the continued investment in programs like the ones at Vincennes, Ivy Tech, and Grace College (which has specific classes for medical device companies). We need to make sure that what people are being taught is relevant to what
they will be doing for their own success and the success of their organizations.” Across the state, the Hoosier medical device industry is continuing to grow despite the challenges. As the population ages, and Indiana makes further decisions intended to boost manufacturing as a whole, the future certainly looks bright for medical device manufacturing in Indiana. “We are strong, but there are challenges we must address to make sure we stay strong,” Welch said. “We’re always looking to see what we can do to take care of patients and keep growing as an industry.”
state and send a message that Indiana’s long-standing commitment to R&D was diminishing. Fortunately, those state proposed measures did not become law. However, the federal MDET has not yet been repealed. Tom Ryder, President of Genesis Plastics Welding in Fortville, IN, a company that specializes in contracted plastics manufacturing and often works with medical manufacturers, said, “The Affordable Care Act mandates that original equipment manufacturers and importers pay a 2.3 percent medical device excise tax on sales of certain products. The device tax applies to clinical medical devices manufactured abroad and in the U.S. such as stents, catheters and defibrillators that are sold to U.S. health care providers. Some OEMs say the federal tax creates a financial challenge that will negatively affect their ability to invest in research and development and produce more innovative products.” Welch added, “The MDET definitely has had a huge impact on the industry regarding jobs, innovations, and the growth of companies. When one thinks of an excise tax, you think of it as taxing things not necessary for life; like cigarettes, gaming, or alcohol… not products that enhance the quality of life or save lives. We’re very fortunate that Indiana’s federal legislators have demonstrated their support for the repeal of this tax, across partisan lines. But for a variety of reasons, a repeal hasn’t happened yet, but we continue to be hopeful as we work with our federal legislators.” The medical device manufacturing industry is also paying close attention to new career pathways being implemented across the state in an effort to close the skills gap that affects many different aspects of Hoosier manufacturing. Welch said, “These are MAY / JUNE 2014 | www.buildingindiana.com
45
BEING PRODUCTIVE
UPGRADING EFFICIENCY Indiana’s New Management and Performance Hub Looks to Streamline Numerous Issues By Nick Dmitrovich
T
he office of Indiana Governor Mike
Endowment Inc., a private philanthropic
creates a workable framework for data
Pence recently announced that the
organization, has awarded a $500,000
collaboration and analytics among all
state is planning to implement a
grant to IOT for cutting-edge technology
state agencies,” Brooks said.
new data analytics tool, dubbed the Man-
She went on to say that the OMB and
enhancements to the MPH program.
agement and Performance Hub, for use
“Currently, Indiana does not have a
the IOT will be working with each agency
across several state agencies. The goal of
streamlined process for data sharing or
to compile appropriate data by building
the new software is to help increase the
cross-agency data initiatives. Through
connections between existing systems in
efficiency and effectiveness of the State,
the leadership of the Office of Manage-
order to standardize data, automate per-
particularly focusing on issues that in-
ment and Budget (OMB) and the Indiana
formance metrics, and streamline data
volve multiple agencies such as infant
sharing processes and procedures. Addi-
mortality and child fatality, public safety,
tionally, the MPH will be used to improve
and economic development. Governor Pence stated that, “The launch of the Management and Performance Hub (MPH) will transform and streamline the way Indiana tackles the challenges facing the state and will help
The launch of the
the state transparency portal, standard-
Management and
ize and automate Key Performance Indicator (KPI) reporting, develop an Executive
Performance Hub (MPH)
Dashboard, and enhance the data analyt-
will transform and streamline
ics capabilities for use in agency initia-
the way Indiana tackles the
tives (otherwise known as Case Studies).
us deliver smarter, lower-cost services
challenges facing the state
to taxpayers. Systems like this are com-
and will help us deliver
government up to the speed of business.
monplace in the private sector and will
smarter, lower-cost
It is a data analytics tool that will be avail-
help government move at the speed
services to taxpayers.”
able to all agencies that will assist with
– Governor Mike Pence
vide greater transparency to the public,
of business.” Executive order documentation for
“The MPH program is about bringing
performance-based
management,
pro-
and provide data analysis tools for use
the new program states that Hoosiers will
on state issues. Hoosiers across the state
benefit from a comprehensive and coordinated effort by state agencies to share
Office of Technology (IOT), the MPH will
will benefit from a more efficient state gov-
data and maximize the utilization of avail-
create standardized procedures and pro-
ernment,” said Graig Lubsen, Communica-
able resources; in that centralized data
cesses for data sharing and data collabo-
tions & Marketing Director for the IOT.
sharing, correlation, and analysis will en-
ration across agencies. This standardiza-
“OMB and IOT will work with agencies
able the state to achieve efficiencies in
tion will give agencies more time to focus
to compile agency data by building con-
the administration of state programs and
on performance and policy develop-
nections between existing systems in or-
services and to more effectively address
ment,” said Kara Brooks, Press Secretary
der to standardize data, automate perfor-
public health, public safety, and quality
for Governor Pence.
mance metrics, and streamline data shar-
of life issues.
“The purpose of MPH is to enhance
ing processes and procedures,” he said.
The majority of the funding for MPH
the effectiveness of policy development
Lubsen explained that several ele-
will come from current Indiana Office of
and public management through data col-
ments of new technology will be incorpo-
Technology’s (IOT) resources for tech-
laboration and analytics. Executive Order
rated into this project. “The cutting-edge
nology improvement. Additionally, Lilly
14-06 (which was signed in March of 2014)
products include but are not limited to
46
www.buildingindiana.com | MAY / JUNE 2014
SAP HANA, Hadoop and TokuMX. We are also using new problemsolving techniques like fuzzy logic, advanced machine learning approaches, advanced visualization techniques (geospatially grounded analysis, cluster analysis, graph theory) and NoSQL databases and distributed computing concepts,” he said. The state’s existing transparency portal also will be revamped to be more user friendly, allowing the public to customize the data they want to view. As part of this project, health statistics, BMV transaction times, disaster relief response, and recidivism statistics will be added to the transparency portal. Lubsen said, “In the coming months, we will be launching the Management and Performance Website as part of the ITP. The website will feature key economic, fiscal, and performance data. An open-data portal has been purchased to display data in a user friendly way. A user will be able to explore raw data through the cloud portal by creating personalized views of the data in a way that makes sense to the user.” All in all, the Management and Performance Hub is expected to foster greater collaboration and data sharing between quite a few state agencies, potentially leading to a more efficient, and costeffective, future for the state. Bringing state-level government to the speed of business has been a key platform Governor Pence has supported throughout his term, and the new MPH appears like it will be an excellent step towards meeting this goal.
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CONSTRUCTION FEATURE
Indiana Wesleyan University, Science and Nursing Building, Construction Partners Architect SmithGroup JJR General Contractor Weigand Construction Co., Inc. Structural Steel, Decking and Stair Fabrication Almet Inc. Structural Steel, Decking and Stair Erection Don R Fruchey Inc. Plumbing and Mechanical A. Hattersley & Son Inc. Electrical Work Rex Collins Electric Polished Concrete Smock Fansler Corporation Masonry Key Millwork Inc. PVC Roofing and Accessories CL Schust Company Inc. Doors, Frames and Hardware Material Central Indiana Hardware Flooring Strahm Group Inc. Painting and Drywall Finishing Hanna Brothers Electric Traction Elevators ThyssenKrupp Elevators Co. Metal Studs, Gypsum Board and Acoustical Ceilings Strahm Group Inc. Exterior Metal Wall Panels CL Schust Company Inc. Glass, Glazing and Storefront Entrances Precision Wall System Inc.
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EVIDENCE OF INDIANA’S GROWING HEALTH INDUSTRY New Science and Nursing Building at Indiana Wesleyan will Produce Continued Generations of Healthcare Graduates By Nick Dmitrovich
C
onstruction is nearing completion on a brand new $45 million Science and Nursing Building at Indiana Wesleyan University. Designed by Smith Group JJR Architects and built by Weigand Construction, the new facility more than doubles the space available to nursing and new graduate health sciences programs for the University, ushering in a new era of Hoosier healthcare professionals. The largest feature of the project is the addition of a new five-story, 111,250 square foot building established on the site of the former College Wesleyan Church, that will connect to the existing Burns Hall of Science and Nursing with a three-story atrium linking the two. This entire project marks the largest build, in terms of both size and
cost, throughout Indiana Wesleyan’s history. Construction began in 2012, and is wrapping up this year. The combination of the existing space in Burns Hall with the newly established facility will form a science and nursing complex for Indiana Wesleyan, bringing together the Division of Natural Sciences, the Division of Mathematics and Computer Information Sciences, and the School of Nursing all in a consolidated place. Under the current plan, the School of Nursing will occupy the first floors of both buildings, the second floors will house Biology, and the third floors will provide space for Chemistry and Physics. Math and Computer Information Science courses will be placed where available space allows, and the the building will
www.buildingindiana.com | MAY / JUNE 2014
ed to dream up a larger facility to better meet the projected needs of the campus throughout the coming years. Karen Roorbach, Assistant Provost for Academic Support Services, said, “This new space allows us to meet many needs across campus and will allow our university to take its science and nursing programs another level.” Indiana Wesleyan has named the new Science and Nursing Building after alumni Gary and Connie Ott, who are residents of Grant County. The board of trustees voted unanimously to dub the building the Ott Hall of Sciences and Nursing after the couple gave a significant multi-million dollar donation to support the University’s Health Sciences and Nursing initiatives. Gary Ott serves as President and CEO of TLC Management, Inc., which is a private contain a gross anatomy lab, as well as a larger vivarium for storing plant and animal research subjects. “The new Ott Hall of Sciences and Nursing now provides Indiana Wesleyan University with state-of-the-art classrooms, specialized labs and collaborative areas that emphasize hands-on, engaged learning opportunities for Indiana Wesleyan University students. The building has been designed to carefully integrate with the campus architecture, including the adjacent Burns Hall to which it is connected. The three story connecting atrium is symbolic of the vision for the facility as an uplifting, inspirational place to learn,” said Christopher Purdy, Vice President/Learning Studio Leader and Principal-in-Charge with SmithGroup JJR. In April of 2011, the University’s Board of Trustees approved a new health sciences initiative, and this new building will stand as the focal point of that plan. The overall spectrum of the new health sciences initiative is expected to take roughly a decade to completely implement and includes several new graduate degree programs such as the new Doctor of Nursing Practice, Doctor of Physical Therapy, Occupational Therapy Doctorate, Master of Public Health/Global and Rural Health and Masters in Biomedical Sciences courses of study. Indiana Wesleyan administrators have
stated that the need for additional space signifies not only a growth in health sciences, but a growth in science and nursing programs in general across the state. Dr. Dennis Brinkman, Chemistry Professor and Associate Dean of the School of the Physical and Applied Sciences, said, “There is nothing that Indiana Wesleyan University could do that would increase its visibility and increase the perceived quality that would match this Health Sciences Initiative. This will put IWU at a totally different level.” During the early phases of planning when this project was conceived, the original plan was to provide additional classroom, research and office space for individuals working and teaching science at the undergraduate level. But, due to the addition of the new Health Sciences Initiative, the Board of Trustees opt-
MAY / JUNE 2014 | www.buildingindiana.com
provider of health and rehabilitation centers, assisted living and retirement centers, and hospice services, in addition to his role as a member of the University’s Board of Trustees. Connie Ott works with corporate and community support programs.
49
CONSTRUCTION COLUMN
BUILDING FOR THE FUTURE Multimillion Dollar Expansion Taking Place at Elkhart General Hospital By Nick Dmitrovich
50
cal suites will be approximately 700 sq. ft. in size and equipped with ceiling suspended technology offering the surgeons maximum flexibility for future growth and new technoAMBULANCE ENTRANCE EMERGENCY PATIENT DROP-OFF
EAST
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ELKHART GENERAL MAIN HOSPITAL AREA
LAWN AVE.
RIVER POINTE SURGERY CENTER MAIN ENTRANCE
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VISITORS PARKING
WEST WING ENTRANCE
S SOUTH BLVD.
SURGERY CENTER WEST WING EXPANSION
RIVER POINTE PARKING
CONSTRUCTION ZONE HIGHLAND AVE.
EMPLOYEE PARKING
COVERED WALKWAY FENCE EXISTING STRUCTURES
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CLINTON AVE.
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onstruction is underway on a $74 million expansion project at Elkhart General Hospital, ushering in a new state-of-the-art Surgery Center and room to accommodate new technological advances for surgical procedures. Set to open in the fall of 2015, the Center will include new surgical and endoscopy suites, hybrid surgery capabilities and 43 private patient rooms for post-surgery care. Elkhart General officials stated that the expansion was needed to replace the existing surgical suites, which were built over 40 years ago. Essentially, the hospital’s staff had outgrown the existing space; the structural limitations of the space made the option of renovation unrealistic to physically accommodate newer technology and added rooms for patients. Designs for the expansion include the addition of three floors to the hospital’s west wing, which will add about 160,000 square feet designated for 10 new state-of-the-art operating rooms and three endoscopy suites to accommodate both inpatient and outpatient surgeries. Each of the new surgi-
logical advancements. Also a logistical link will be established to connect the west wing of the hospital to Elkhart General’s Critical
Care Unit and emergency rooms to better facilitate patient transit as they begin the process of recovery. Design work for the project was conducted by Anderson Mikos Architects, and the general contractor for the expansion is Power Construction. “Keeping future technological changes in mind are critical when designing surgery suites because medical breakthroughs occur so rapidly”, said Greg Losasso, President of Elkhart General Hospital. “Guiding this project with their clinical expertise is a team of 25 outstanding physicians who have been critical to this initiative.” “We’re moving up, instead of moving out. We’re adding on three stories; the first will be the mechanical space and administrative office space. The next floor will be the surgical area where we’ll have nine operating rooms including one that will be a hybrid-OR, and that takes technology that has imaging capability incorporated into it so it’ll have surgical capability along with imaging technology for some of the new techniques coming out. And then the last floor will be a 43 private room suite. And then the last component
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to this will be a helipad that will allow us to move patients here, or from here, more expeditiously than we could handle right now. There will also be a connecting link that will link this surgical wing of the hospital with the critical care wing so we can move patients quickly into the surgical settings. It’s a fairly large project that will be done in the fall of 2015,” Losasso said. Leonard Kibiloski, MD, FACS, Orthopedic Surgeon, said, “As we carefully planned the design, the team had been considering all aspects of growth and technology, while paying close attention to the comfort and privacy needs of our patients and their families.” Pam Goddard, Director of Surgical and Cardiovascular Services, said that the newly built suites will have a dramatic impact on the workflow of a typical day at Elkhart General. She said that staff is regularly moving equipment into and out of the operating rooms because of spatial concerns. “I’m sure when the surgical wing was built, it was state-of-the-art back then. But in the last 20 years, we have had a
technology explosion in arthroscopy and endoscopy equipment that amounts to quite a few cameras, monitors, printers and light sources - equipment that’s needed to be able to use special instruments during surgery. The way we do surgery today is so much different than all those decades ago,” Goddard said. “As you can imagine, this can really affect our efficiency every day, so in the new O.R., we will actually have the equipment that is used pretty much all day long suspended from the ceiling. What that does for the workflow, it frees up floor space, and it also makes it safer for the staff.” She also stated that waiting rooms for family members of individuals undergoing surgery will be moved closer to the pre-op and post-op surgical areas on the new hospital floors, to make it easier for surgeons to be able to communicate with the family members before moving on to their next patient. Economic development officials from Elkhart County have stated that the construction at Elkhart General is expected
to have positive effects on the area. Dorinda Heiden-Guss, President and CEO of the Economic Development Corporation of Elkhart County, said, “Elkhart General Hospital is a key asset to Elkhart’s quality of life. The talent, education and quality services provide support for a strong ecosystem of enhanced medical care for Elkhart County, Indiana. As an economic engine within Elkhart and region, Elkhart General boasts expertise in heart healthy services adding expertise and significant financial investment for long-term health and sustainability. Trade skills and new building construction is an added benefit for short-term employment.” As continued developments take place across Indiana’s Life Sciences industries, one can expect more medical facilities to follow suit along with Elkhart General and begin modernizing their facilities to be better equipped for new technologies. This is yet another example of Indiana’s commitment to planning for the future and strategic growth in innovation.
Open for Business!! Lanesville, Indiana
» Areva Pharmaceutical Global Distribution Center to open in 2014 » 20 minutes from UPS World Hub in Louisville, KY » More than 200 acres available for Development » Mixed use development opportunities
MAY / JUNE 2014 | www.buildingindiana.com
Contact: Harrison County Economic Development Corp 812.738.0120 dvoelker@hcedcindiana.org 51
WELL BEING
CUSTOMIZED CARE How Onsite/Near-Site Dedicated Clinics Can Serve Your Business By Nick Dmitrovich
H
ealthcare costs come to companies from a variety of sources; various doctors, and medical facilities that individual employees seek out based on their own particular situation. But what if companies had a consolidated resource that was established to handle a business’s general medical needs? Several businesses across Indiana are beginning to take advantage of newly developed onsite or near-site wellness centers that provide customized care for entire companies and serve as a go-to resource for a business’s medical needs. Two organizations that have begun to establish dedicated wellness centers for companies in Indiana are Franciscan Alliance and IU Health’s Business Solutions program. By utilizing the resources of these health systems, businesses now have an avenue to work with service providers that tailor their treatment op-
52
tions to best serve the wellness of the entire partnering organization. Collaborating with health networks has presented employers with the option to create customized, integrated, holistic solutions that are innovative, results-driven and cost-effective. “Each employer has different demographics in regard to their employees and dependents,” said David Delaney, Director Business Development at Franciscan Alliance, and one of the managers of the on-site wellness center program. “Since various populations of employees and dependents can be so different, customizing the program and its approaches is a focused goal of our initiative. Customized care relates to the deployment of wellness service, health coaching and disease management. Onsite/near-site clinics enable that staff to perform greater in-depth assessments of each patient and
to beyond the “what is wrong with you” to more so a “how is your health and how are you doing overall.” Also, we are working with the employers to establish a progressive health culture. The options include a wellness/health coach, extension of certain lab services and defined health monitoring programs.” “Soon there will be also the opportunity to include medical devices that enable home monitoring that integrates with the clinics to provide a daily review of adherence to certain clinic guidelines and measures,” he added. The Town of Chesterton partnered with Franciscan to establish dedicated wellness centers for their employees. Leigh Westergren, an Employee Benefit Specialist with Anton Insurance Agency, the Servicing Agent for the Town of Chesterton, said, “The clinics have benefitted the town in that they have provided the
www.buildingindiana.com | MAY / JUNE 2014
participants with access to quality primary care services that would have been otherwise unavailable, thus enabling our town employees and their dependents to have preventative and acute care at their convenience. Have you ever had the experience of trying to get in to see your doctor when you are feeling terrible and being told they have an opening three days later? It’s terrible.” “Dedicated wellness centers work in collaboration with other aspects of the employee benefit program, such as EAP (employee Assistance Programs), primary and urgent/acute care and the existing wellness programs,” Westergren added. “We are then able to coordinate aggregate data collected from primary care and wellness/preventative screening events and programs to tailor our benefits program to meet the specific needs of the workforce and their dependents.” The dedicated clinic approach allows a lower cost immediate access model that lessens the delay in having medical services provided. Additionally, this provides time for each doctor visit to be more thor-
ADVANTAGES FOR BUSINESSES, INCLUDING: • • • • • •
Opportunities for co-op/multiemployer clinics and clinics that require no capital investment Immediate savings of up to 10% to 30% in health care costs Primary Care Limited Services Program Decrease in absenteeism and time off due to health-related conditions Reduction in the number of costly insurance claims made by employees Comprehensive care for employees and eligible dependents
IU HEALTH CITES SEVERAL KEY BENEFITS FOR EMPLOYEES: • • • • •
Gain convenient access to highquality, nationally recognized care Experience better care coordination Save out-of-pocket healthcare costs Improve sense of well-being and self-image Enhance ability to cope with stress or other factors affecting health
ough than a typical visit. All of the patient’s medical needs are reviewed, instead of just addressing the immediate need of the individual. Lastly, the clinic approach allows for a focused review on the overall medical issues or needs of the employer population that creates highest value programs to be available for employers and dependents. Companies should be considering dedicated wellness centers for their employees, not just for the cost-saving options that they present, but for the customized level of care that can be administered to the entire staff as a whole. In a sense, it’s kind of like providing treatment to an entire business rather than just treating the individuals, which could potentially do wonders for the productivity of any organization. Business owners are beginning to realize that, when it comes to employee wellness, the overall health of a company is directly related to the levels of consideration applied to the big picture of the entire staff’s healthcare, which can be coordinated by business owners that implement a dedicated wellness center.
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COMMERCE INCREASING THROUGH THE PORTS LOGISTICS
All Three Ports of Indiana Locations Earn Milestone Achievements
By Nick Dmitrovich
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hings are really moving at Indiana’s Ports. Each one of them, Burns Harbor, Mount Vernon and Jeffersonville, set new records last year in terms of shipping volume and the number of trucks, ships and other vehicles moving through the sites. This truly represents a positive economic turn for the entire state as industry and manufacturing experience significant growth. The Port of Indiana – Burns Harbor; last year saw the highest new records in shipping volume over the last few years. Officials have stated that steel, limestone, coal and road salt each contributed to largest totals seen since 2006, ushering in tons of economic activity for the state of Indiana. Maritime operations at the Port of Indiana-Burns Harbor generate $4.3 billion per year in revenue and support 33,000 total jobs. “Steel, limestone, road salt and coal were all significant contributors to the successful year we experienced at the port,” said Rick Heimann, Port Director for the Port of Indiana-Burns Harbor. “It 54
is difficult to predict what lies ahead in 2014, but if we see continued growth in the manufacturing sector that will certainly have a positive impact on port shipments of steel and other raw materials. Right now most area companies seem to be forecasting that 2014 will be similar to 2013 and slightly better in some cases.” “Companies located at our ports contribute significantly to Indiana’s economy and the general welfare of those living in and around port communities,” said Heimann. “Having access to both the Atlantic Ocean and Gulf of Mexico through our nation’s two largest inland waterways is very important to our port companies and the regional economy. We truly appreciate all the efforts of each and every company that contributed to the port’s growth this year.” Last year the port handled a large volume of barge shipments, about 415 in total, which moved through the Inland Waterway System, the Chicago locks and the southern tip of Lake Michigan. These waterways provide a year-round link to
industries throughout the Gulf of Mexico and 38 different states – forming a crucial connection for many Indiana companies in addition to ships and ocean vessels that arrive through the Great Lakes. new road
The Big Picture Last year was a highly productive year for all three of Indiana’s Ports: Burns Harbor, Jeffersonville and Mount Vernon. In total, the three locations handled 8.3 million tons of cargo, which was an increase of about 20% over the previous year. This was the third highest total in the organization’s 52-year history and the highest since 2006. Across the state, shipments of coal, steel and agricultural-related products helped perpetuate the increases seen in 2013. “Our ports finished the year on a record pace, which does create some optimism for 2014,” said Ports of Indiana CEO Rich Cooper. “In 2013, our ports handled more steel, fertilizer and minerals than any year in recent history. Steel, agriculture products and coal make up over 80
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percent of the shipments at our three ports, so when those cargoes are up it bodes well for shipping in Indiana. It was good to see ag cargoes rebound in 2013 after the previous year’s drought, and the positive trend in manufacturing creates a brighter outlook for future steel shipments.” “Maritime shipments are heavily influenced by manufacturing trends and agricultural markets, so it’s gratifying to see steady growth in shipments over multiple years,” 2013 SHIPPING FIGURES FOR THE Cooper said. “This PORT OF INDIANA – BURNS HARBOR For the year, the port speaks to the success handled approximately: of the world-class com• 90 ships panies located at our • 415 barges ports and their efforts to • 310,000 trucks leverage the ports’ mul• 12,000 railcars timodal connections to There were significant increases in port shipments of the following cargoes in create sustainable com2013 versus the previous year: petitive advantages that • Coal (+16%) allow them to grow their • Fertilizer (+11%) businesses. Indiana’s • Limestone (+28%) • Road salt (+58%) ports are built on a truly • Steel (+15%) unique public-private partnership that has produced tremendous results for over 50 years.” Over the last six years, the Ports of Indiana has experienced significant growth in shipments. The Ports handled nearly 3 million tons of cargo in the fourth quarter of 2013 alone, which is the highest total for any quarter since the ports opened.
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The Totals • On Lake Michigan, the Port of Indiana-Burns Harbor recorded its highest annual tonnage since 2006 and second highest since 1998 by handling 2.5 million tons of cargo. The 2013 shipments were 17 percent above the 2012 total and 23 percent over the previous five-year average. There were increases in shipments of steel, fertilizer, road salt, coal and limestone.
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• On the Ohio River, the Port of Indiana-Jeffersonville recorded its highest annual tonnage since 2006 at 1.6 million tons, up 19 percent from 2012, with increased shipments of grain, steel, oils and minerals. As a result of a robust 2013 harvest, the port finished with its highest fourth quarter tonnage - nearly 80 percent more than the quarterly average for the previous five years. • The Port of Indiana-Mount Vernon also finished strong in 2013 with its highest quarterly shipments ever and handled 4.2 million tons for the year - up 21 percent from 2012. Key drivers for the Ohio River port were increases in coal, grain, fertilizer, coke and minerals. The fourth quarter was the first time port shipments exceeded half a million tons in three consecutive months and was more than 50 percent higher than the average quarter in the last five years. For the year, the port handled approximately 2,200 barges, 85,000 trucks and 26,000 railcars. MAY / JUNE 2014 | www.buildingindiana.com
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WORKERS COMP
GETTING IN FRONT OF WORKERS’ COMPENSATION Prevention Really is the Answer By Jim Allivato, Director, Midwest Business Development, ATI Worksite Solutions
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oing in to 2014, we have seen many so called “positive” changes to the worker’s compensation policy arena that were supposed to save companies millions and provide employees with better health care. Policy changes including medical fee schedules, employer directed care, narrow PPO style networks, and utilization review were all touted to bring in big savings and provide better care for employees - but has it? In California, seven years after major reform bill SB899 was passed, treatment guidelines, employer-controlled medical networks and utilization review were supposed to deliver timely and appropriate medical care. Instead much of these panaceas have built up the workload on treatment decisions at the Workers’ Compensation Appeals Board and more medical decisions are being referred to judges through the litigation process. In 2011, Illinois passed WC reform legislation that consisted primarily of a reduction in the medical fee schedule and the creation of a networks style Preferred Provider Program (PPP). Despite this action the cost of WC claims has dropped only 4.6 percent in Illinois last year even though the General Assembly reduced the maximum fees for workers’ compensationrelated office visits, surgery and other treatments by 30 percent in 2011. Medical fees actually fell 24 percent in 2013, according to a study from the Workers Compensation Research Institute, as some providers already were charging less than the maximum amount allowed by law. But those savings largely were offset by greater use of medical services and increased spending on litigation over medical claims, second opinions by company doctors and other measures to control medical costs. As a result, total payments per claim were down just 1 percent hardly a cause for celebration. Additionally the state still struggles with a slow rollout and lack of participation in its newly created Preferred Provider Program (PPP). No matter what your opinion is of the scenarios listed above, injured workers continue to get hurt, while in many industries at a much lesser rate, but an aging workforce threatens to stem this tide and potentially create an increase in incident rates as the age wave moves forward.
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www.buildingindiana.com | MAY / JUNE 2014
Therefore the only way to combat healthcare costs whether they are work or non-work related is to implement prevention programs while integrating health and well-being education for employees. It’s interesting to note that a large majority of employers have moved to try and control costs with on-site occupational health programs typically consisting of a nurse and in larger organizations an occupation health clinic that often includes a physician. The question that needs to be asked is;
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Why are these programs not producing the cost savings they hope to provide? The short answer is the lack of prevention and health promotion which is often absent in the traditional medical model. It is also why our nation continues to struggle with healthcare costs overall. The traditional medical model is one where the treatment of the injured worker is almost always reactionary in nature. The factory worker who sees the nurse or physician for work related shoulder pain will be evaluated for their shoulder pain and given a course of treatment which may consist of rest, prescription medications, physical therapy and in some cases surgery. In many cases root cause and job coaching are absent in the course of treatment. A second factor is employees only seek a healthcare professional when the symptoms being to disrupt the ability to perform their work tasks. So the failure is twofold, the traditional medical model of reactionary treatment and the culture of the employees and employers not taking advantage of the practice of early reporting of work related pain which most companies have in place as part of their health and safety program. A NEW MODEL OF CARE: THE EARLY INTERVENTION SYSTEM Early intervention programs address the issues above by placing a healthcare provider in the facility to interact with employees in the work area, providing job specific preventative stretching programs, job coaching and ergonomics assessments, and most importantly providing first aid treatment and instruction on self-care when employees first notice pain/discomfort. Early reporting is the golden window of opportunity which will allow the health care provider to mitigate the employee’s complaints of minor pain, discomfort and minor sprains and strains through conservative means while addressing the reasons why they are experiencing the symptoms. The healthcare provider can then teach the employee better postural positioning, alternate tool use and proper lifting mechanics to decrease the likelihood this condition will progress to a point where outside medical care is necessary as well as significantly decrease the chance these symptoms will return. The same healthcare provider can also counsel employees on personal health and well-being, as the literature states those with chronic diseases like hypertension and diabetes as well as obesity are 50% more likely to experience a work related injury. Prevention programs will help employees take control of their own health, provide immediate and high quality healthcare, and reduce the financial burden on business. An ounce of prevention is worth a pound of cure. MAY / JUNE 2014 | www.buildingindiana.com
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LIFELONG LEARNING
CONTINUOUS PROFESSIONAL DEVELOPMENT A MUST FOR HEALTHCARE PROFESSIONALS By: Dr. Hakam Safadi, Physician Medical Director of Medical Education, Methodist Hospital
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he face of medicine continues to change at a rapid pace, making continuous professional development a top priority for healthcare professionals who want to keep their medical knowledge and skills up to date. Healthcare providers must be committed to a plan of life-long learning in order to best serve and care for their patients. Fundamentally, all professions of medicine utilize formal, informal, and self-directed learning opportunities in order to foster continuous professional development, improvement and competence for today’s healthcare practitioners. Whether you work in the areas of clinical care, research, health care administration, or other areas of medicine, Continuing Medical Education (CME) is used to educate every medical specialist to meet their patient’s needs. The purpose of CME programs is to provide healthcare professionals with the most up-to-date, clinically sound, and evidencedbased medical information and training to support all aspects of medical care. A host of Indiana medical institutions, schools, colleges, and universities offer a vast array of accredited Continuing Medical Education programs designed to offer genuine solutions to real-world practice issues. There are several diseases which affect the quality of life of Indiana residents. Included among these are obesity, smok58
ing, sexually transmitted diseases, heart example, new forms of certified CMEs are disease and stroke. CME professionals now offered that address provider needs at must focus on educating our current and the point of care, and many healthcare exfuture healthcare providers about these perts apply computerized, evidence-based diseases in an effort to prevent higher resources such as the Up-To-Date clinical resource tools to assist with patient care and mortality rates in the future. In my role as Medical Director of Medi- patient education. I work closely with the Indiana State cal Education at Methodist Hospitals, my mission is to assist healthcare professionals Medical Association to offer relevant, pracin their commitment to lifelong learning to tice-based CMEs to more than 2,000 health improve their competence and performance professional participants annually. There and have a positive impact on patient out- are approximately 2,100 accredited Concomes. The Indiana CME community offers tinuing Medical Education Providers, and a broad range of formats and structures, each year accredited providers offer more including traditional grand round lectures, than 125,000 activities across the country. physician-to-physician shadowing, on-line This shows that both the Continuing Medisimulations, symposia, performance-im- cal Education Providers and healthcare provement and patient safety initiatives, and providers will always be engaged in an environment of life-long learning and that all numerous other approaches. Healthcare providers with Diplomat sta- are committed to the promotion of quality tus must utilize CMEs to recertify every 10 patient-centered care. years in their area of specialty. Additionally, hospitals monitor Institutions/organizations accredited as the competency of physicians Indiana State Medical Association (ISMA) by requesting the verification Continuing Medical Education (CME) providers (partial list) of CME activities through credentialing to ensure that each individual practitioner possesses the necessary qualifications to provide medical services to patients. The field of Continuing Medical Education has been evolving and innovating. For
1. Community Hospitals, Indianapolis 2. Elkhart General Hospital, Elkhart 3. Ft. Wayne Medical Education Program, Ft. Wayne 4. Lafayette Medical Education Foundation, Lafayette 5. Methodist Hospital, Gary 6. St. Mary’s Medical Center, Hobart 7. LaPorte Hospital, LaPorte 8. St. Anthony Medical Center, Crown Point 9. St. Joseph Regional Medical Center, South Bend 10. Terre Haute Regional Hospital, Terre Haute Source: Indiana State Medical Association
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A CRITICAL LINK
REAL ESTATE
New Infrastructure to Link River Ridge Commerce Center to Ports of Indiana - Jeffersonville By Nick Dmitrovich
HERE’S A LOOK AT SOME OF THE COMPANIES CONTRIBUTING TO RIVER RIDGE’S ECONOMIC IMPACT: • Standard Register, a communications and analytics solutions provider, invested nearly $10 million to lease and renovate a 335,000 square-foot facility in the River Ridge Commerce Center, which will create up to 360 new jobs by 2016. • Amazon.com has established a million square foot warehouse and distribution center that will employ 2,600 people. Amazon (NASDAQ: AMZN) invested $150 million to build the facility at River Ridge, which held the title of the largest Amazon facility in the country. • American Fuji Seal constructed a new 82,000 square foot facility at the Commerce Center that will employ 90 workers beginning this year. • Catamaran, a pharmacy benefit
management (PBM) technology and services provider, constructed a 75,000 square foot facility. Catamaran plans to employ about 200 workers at the site.
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There’s a lot happening in Southern Indiana these days - the River Ridge Development Authority has recently approved issuing $20 million in bonds to fund new infrastructure projects that will link the River Ridge Commerce Center to the Ports of Indiana – Jeffersonville. The project is expected to cost $22.5 million and will provide road and rail access between the two sites in addition to water and demolition projects that are needed for construction to take place. River Ridge officials have stated that the heavy-haul road will open up 2,500 acres of land for immediate development potential. Design work is already taking place on some aspects of the connecting infrastructure, and officials expect construction to be complete around October of 2016 – which will correspond with the East End Bridge phase of the Ohio River Bridges Project. River Ridge Development Authority Marketing and Finance Director Paul Wheatley said, “This allows our site to have multimodal access. It gives a direct road and rail connection to the port, and through the port we’ll have access to the Ohio River. The road will have direct ac-
cess to the new I-65 interchange that’s in conjunction with the Ohio River Bridges Project. That interchange will directly serve our site as well. As far as the other projects go, those projects are all focused on the quickest ROI in terms of developing new sites and attracting new tenants to River Ridge. So these projects are kind of the next phase in terms of developments at the River Ridge Commerce Center.” Policy Analytics LLC, an Indianapolisbased company specializing in economic research, public finance, and policy analysis, published a study recently that suggested the River Ridge Commerce Center has a billion-dollar impact on its region’s economy, and supported more than 9,100 jobs last year. As of today, River Ridge has only sold about 500 acres of property, which amounts to roughly 9 percent of the total available space. Growth at the site only expected to continue with the new infrastructure in place. “Typically our strength due to our workforce down here, drawn from the Louisville metropolitan area, is aimed at manufacturing. But most importantly here, we feel like our position in the Unit-
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ed States, from a logistical standpoint, is another strength. We’ve got the UPS
RIVER RIDGE COMMERCE CENTER LONG TERM PLAN
Worldport here, we’ve got the intersec-
Retail
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Office
187
Industrial
2,602
important from a logistical standpoint.
Light Industrial/Warehouse
1,189
With just-in-time inventories and logistics
Mixed Industrial/Office
1,286
are playing a role in the operational costs
Sewage Treatment Plant
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City of Charlestown Municipal Site
123
Green Space
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Drainage Easement
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tion of three major interstates, obviously the Port of Indiana – Jeffersonville being located here close to the Ohio River is
for a particular company, we feel like that plays right into our strengths here,” Wheatley said. In another study published for the Ohio River Bridges Project by the Eco-
Development Type
Acres
Source: River Ridge Commerce Center Long Term Plan
nomic Development Research Group, a Boston-based firm dedicated to advancing the state-of-the-art in measuring economic development performance, it was reported that “Representatives from the River Ridge Development Authority estimate that the bridge could spur up to 2 million square feet of development per year because of the improved access to I-265 and I-65, as well as to the Louisville International Airport and the UPS facil-
BUILDING? MAINTAINING? EXPANDING? YourBusinessBuiltBetter
ity in Louisville. Industries that are likely to find the site attractive, as a result of the new access, include: transportation, warehousing and distribution, food processors, machinery manufacturing, fabricated metals, computers and electronic equipment, and instruments manufacturing. These may include suppliers to the large auto and appliance manufacturers already in the region.”
Without a doubt, the River Ridge Commerce Center is shaping up to be one of the most attractive sites for companies looking to expand or move to Indiana. The establishment of the new bridges over the Ohio River, the availability of land for development, and the proximity to a major US city all contribute to
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the overall picture of an outstanding site for companies across numerous industries. River Ridge will certainly have to be a place to keep an eye on as it grows over the coming years. MAY / JUNE 2014 | www.buildingindiana.com
Interested in listing your business on the directory? Go to www.NwiConstructionDirectory.com or call 219-226-0300 for more information.
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MARKETING
Who Are You Wearing? Making Wearables Work for Your Business By Kaitlin Williams, Marketing Coordinator, Diversified Marketing Strategies “Who are you wearing?” is the mostasked question at red carpet events, but it’s also a question you should be asking yourself during business hours. Who are you wearing? Shouldn’t it be your brand? Wearable promotional products are a time-tested and proven marketing tactic, and right now is the perfect time to order promotional apparel for both summer and fall. With a low cost per impression and incredible track record of performance, promotional apparel should definitely be next on your marketing to-do list. What Can Wearables Do for Your Business? The best thing that wearables can do for your business and brand is make them more tangible. When you or one of your employees wears your company logo and goes out into the world to interact with clients, this is called active branding. As opposed to passive branding, which involves a one-sided action like watching TV, active branding allows potential clients to interact with and learn about your brand. By providing promotional apparel to your employees and clients, you are expanding your brand in an active way that helps current and potential clients associate it with real people. In addition to building brand recognition with your promotional apparel, your wearables can give your business credibility and create a unified look for your brand. You can transform your sales team into true brand ambassadors with logo-ed polo shirts or button-downs. The right promotional apparel can turn a regular group of people into a team of experts. How do you want the world to see you? Promotional apparel makes a great “thank you gift” for your best clients, and 62
is the perfect item to give out to show employee appreciation. With summer coming up soon, you may want to take the opportunity to order promotional tshirts for your company picnic or moisture-wicking running gear for the charity 5k your business is throwing. Why Wearables Work Half a cent. $0.001. This is the cost per impression for wearable merchandise, which differs drastically from the cost per impression of a TV commercial ($0.018), a magazine ad ($0.045), or a radio spot ($0.058). Wearable merchandise gives you an incredible bang for your buck, and unlike other forms of advertising, promotional apparel is both reusable and recyclable. Studies show that promotional t-shirts get an average of 344 impressions per month, and are usually kept for 6 months. That’s six months of dirt cheap advertising for your brand—especially if your t-shirt gets worn regularly. In fact, many companies make it their goal to give out fashionable, comfortable apparel in an effort to give their clients “their new favorite shirt”, thus lengthening their window of advertising. Wearable merchandise also leaves the strongest impression on potential clients. An incredible 94% of people can recall brands that have given them promotional apparel. And even if a client doesn’t want to keep that promotional hat you paid for, they’re unlikely to throw it out. In fact, 62% of people would rather give promotional apparel to someone else than throw it away. Wearable merchandise works because it’s cheap, effective, and it does double the duty of regular advertising. The same people will see your promotional apparel on a daily basis, giving the message time to sink
in, while new people will also be coming into contact with your merchandise. This is the best way to build brand recognition and awareness. What Wearables to Buy Now? With summer on the horizon, what wearables are most in season? Check out our favorites. Hats – Shield your clients’ eyes from the hot summer sun with a great promo hat. Hats get an average of 433 impressions per month, making them an incredibly cost effective choice. Polos – It’s golf season! Get your brand out on the green with logo-ed polo shirts. Distributors offer an array of brand name options, such as Nike, Adidas, and PING, as well as comparable alternatives. T-shirts–A timeless classic, T-shirts never go out of style. Win bonus points from employees and clientele by choosing multiple colors and offering both women’s and men’s shirts, rather than a one-style-fits-all approach. Fleece Jackets–It’s never too soon to plan ahead, and fall will be here in the blink of an eye. Get ahead of the game and order comfortable fleece jackets to keep your clients toasty. Get your logo laser-etched into the fabric, and you’ll really turn some heads! So as you’re considering the next marketing projects for your business, be sure to include company apparel on that list. Allowing you and your employees to embody your brand is a sure way to impact your current clients and potential clientele and build valuable brand recognition. After all, who are you wearing?
www.buildingindiana.com | MAY / JUNE 2014
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ECONOMIC DEVELOPMENT
RUSH COUNTY IS OPEN FOR BUSINESS New Industrial Park Expected to Foster Economic Development in Rush County By Nick Dmitrovich
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round has been broken on a brand new $3 million, 80-acre industrial park in Rushville, IN, that is expected to bring continued growth to the area over the next few years. Dubbed the North Industrial Park, the Rush County Economic and Community Development Corporation has stated that this development will open the door for new economic development opportunity for Rushville and Rush County. “This is an economic developer’s dream to be able to have a parcel that is ideal for someone to come in and set up a business,” said Cathy Wenning, Chair of the Rush County ECDC. “What an ideal location, less than 15 miles to Interstate 70 and 15 miles to Interstate 74. This will be a prime piece of property that will get a lot of looks and hopefully soon will have some buildings going up.” Presently, the city is conducting infrastructure installations throughout the site, getting it “backhoe-ready” for interested businesses. Work includes the widening of nearby State Road 3, and installing curbs and gutters for internal roads, storm water piping, sanitary sewer, a lift station, water
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Rush County has stated that t’s striving for a diverse business base, with major emphasis on four target industry clusters: • Manufacturing + Advanced Materials The county has resources available to help fund training for manufacturing employers. • Transportation and Logistics Expanding opportunities for specialized trucking, warehousing and storing for refrigerated and farm products. • Agribusiness, Food Processing & Technology Includes seed, crop, animal and dairy production, as well as food preparation and packaging. • Business and Financial Services Including companies involved in Portfolio Management, Insurance, Public accounting, Engineering services, and Computer-related services.
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mains, storm and water facilities, soil erosion control measures, a fiber-optic network, lighting, and other related amenities. The improvements will facilitate access to the property and enhance its marketability to potential business tenants. Improvements are expected to be completed in late 2014, and the site has the potential to expand in the future. Carolyn Bunzendahl, Client Services Manager with the Rush County ECDC, said that companies have begun to show interest in the site. “We’ve had several companies express interest in the North Industrial Park, and a few have come out to take a look at it. It’s a really great place for manufacturing companies, and other industries. This is a really exciting time for us.” City officials purchased the 80 acres of land north of Rushville during the early 1990’s utilizing TIF and CREDIT funds. Over the years since then, the development of the industrial park has come to fruition through the labor of five mayors, six economic development directors, dozens of city councilmen, and countless community leaders. The U.S. Economic Development
Administration (EDA), a division of the U.S. Department of Commerce, awarded $1.66 million to the City of Rushville for the development of the Industrial Park. The City will match these funds with $1.66 million of local dollars. Rushville Mayor Michael Pavey said, “I thank the community for the unity they have shown; teamwork and faith they have shown in the project, just genuine persistence. I also thank former Mayor Bob Bridges whose administration had the forethought to make the purchase of this property. It was a very progressive process. We were usually a pretty reactive community, so having the insight to purchase this property allows us to be here. The City has determined to make a significant financial investment in the economic development of this community.” Merv Bostic, former Mayor of Rushville, said, “This is obviously a tremendous opportunity for our community. It’s something we’ve been working hard on for the past couple of years. There have been a lot of people involved in this, and it was a bipartisan effort. This is going to be something really
great for our community for future growth.” Greater Chicago Area Economic Development Administration Area Director Donald Kathan was present for the ground-breaking ceremony, which took place in March. He said, “There is strength, commitment, and diversity of the public and private partners that are involved with a particular project. At the EDA, while our grant funds are a small but necessary part, we’re under no illusion to believe or think that that is sufficient to bring a project to fruition and cause success through job creation. We recognize that by leveraging of private sector investment and being able to raise the community, there will be that rising tide to float a lot of boats through that quality of life type of improvement.” This new industrial park will certainly be one to watch in the coming months as companies ready their plans to move in. As more and more out-of-state businesses look to relocate to Indiana, the North Industrial Park should definitely be on their list of places to consider. With the expedited approval processes that Rush County is offering, this is just another example of why Indiana is the best state for business.
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The Last Word Optimistic About NWI’s Future By Leigh Morris, Interim President, Legacy Foundation
I’ve been knocking around Northwest Indiana in one capacity or another for over 40 years, and I’ve never been more optimistic about its future than I am today. Oh, for certain there are negative factors, too. There are many things I’d change if I had the power to do so, but overall, I think there’s a significantly positive regional trend line. There are a number of contributing factors, and with apologies to some that are inadvertently omitted, I suggest these ten are among them: 1. Our transportation capabilities have never been better (Cline Avenue excepted). The South Shore commuter train is a huge asset and it promises to become even more important. 2. Our environment has improved to the point that arguably our air is cleaner and healthier than in the Indianapolis area! 3. Our great colleges and universities are not only doing a fantastic job of educating students on their campuses, but they are reaching out in responsible ways to lend expertise and insights to deal with community and regional issues. 4. The Northwest Indiana Regional Planning Commission (NIRPC) is emerging as a more potent force for effective regional planning and is growing into its role as a Council of Governments. 5. Lakeshore Public Radio and Television has provided the region with
a badly needed “adult” voice and provides an effective forum for exploring regional issues. 6. The South Shore Leadership Center has demonstrated its effectiveness with its traditional Leadership Northwest Indiana role that has prepared hundreds of adult leaders, but its newest initiative, SLYCE (South Shore Leadership Youth for Community Engagement) Program, is a cutting edge approach to preparing and engaging teenagers in community and public service. 7. The Northwest Indiana Regional Development Authority (RDA) Is unique to Northwest Indiana, and it provides funding, expertise and leverage to facilitate breakthrough development and redevelopment. No other region has such an entity! 8. One Region, formed in 2012 by The NWI Quality of Life Council and the NWI Times-sponsored One Region, One Vision group, is addressing ten factors that have the greatest impact on the quality of life for residents of NWI. The One Region Quality of Indicators Report is a powerful tool for “moving the needle” positively in ways that will make our area a more desirable, healthy and desirable place to live, work and do business. 9. The Legacy Foundation, with more than $50 Million in assets, has partnered with the John S. and William H. Knight Foundation, to create a break-
through initiative, Neighborhood Spotlight, which has the potential to restore declining urban neighborhoods into wholesome and welcoming areas for 21st century family living. 10. The Marquette Plan is a regional strategy to redevelop the Lake Michigan shoreline, improve transportation infrastructure and transform the economy of Northwest Indiana. Since 2005, the RDA, shoreline communities, and for-profit and non-profit partners have invested or committed approximately $210 million toward these goals. This investment has directly leveraged more than $540 million in additional local, federal and private funds. There are many more positive factors I could enumerate, but I hope these ten are enough evidence to counter the traditional negative image that naysayers attribute to our region. To be sure, there are problem areas and black marks that cry out for attention and stronger leadership, but I believe that the positive momentum I sense in our region suggests we can overcome each and every one of them. In the words of that old World War II song, we simply need to “Accentuate the Positive, Eliminate the Negative, and Don’t Mess with Mr. In-Between!”
The opinions expressed in this article are the views of the authors. We welcome your response. If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.
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www.buildingindiana.com | MAY / JUNE 2014
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