Building Indiana: September/October 2013

SePTeMBeR/oCToBeR 2013

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CONSTRUCTION INDUSTRY SPARKS DEVElOPMENT Construction Feature | pg 34 CAF’s New Training Facility Cover Story | pg 44 Training a New Labor Force Green & Sustainable | pg 60 Granite Recycling

THE AMERICAN GROUP OF CONSTRUCTORS

FOUNDATION STONES Determination in our Commitment to Safety Pride in our Workmanship Trust in our Relationships Care in our Stewardship

“A sure foundation inspires confidence, encourages creative thinking, and enables us all to achieve wonderful things...”

Phone: 877-937-1508 | Fax: 219-937-1512 www.tagconstructors.com

Northwest Indiana’s ONLY Ranked Hospital by #13 in Indiana #30 in Metro Chicago

Evidence of Excellence Methodist Hospitals’ commitment to delivering high quality care has attracted attention from some of the most respected names in health care.

National Multiple Sclerosis Society

Leading the Way to Better Health

Publisher’s Desk Small Business Investments Make A Big Impact

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utumn has officially begun, and many small and medium sized businesses across the state are shoring up their plans for maintenance and expansion projects. This is great news for Hoosiers, as new investment in infrastructure brings about economic development opportunities for the construction companies managing the projects and the communities surrounding the expanding businesses.

This resurgence in investment can be directly attributed to the strengthening of the economy and growing confidence in the state of Indiana, which has proven itself to be an ideal location for businesses across numerous industries. Now that companies are finding themselves in a better financial situation, they can turn their attention to the construction plans they’ve been keeping on the back burner.

It’s exciting to watch Indiana businesses grow, and to follow the new projects that Hoosier constructors are undertaking. Investment and expansion in the small to medium business sectors has an effect on the entire Hoosier marketplace, considering that more than 84% of Indiana’s businesses are classified as small, encompassing roughly a quarter of all Hoosier employees.

Quite possibly the most important aspect of this new situation is the snowball effect that it produces; as more companies grow, so does the state, and in turn other companies can begin to look at their own expansion interests. It’s a thrilling time for Indiana’s construction industry, as Hoosier contractors are literally laying the foundation for a brighter future for small businesses.

At Building Indiana, we are proud to showcase all of the hard work and commitment that Hoosier contractors make toward the continued success of our home state and its business community. Our September / October issue focuses on many key construction topics that have developed over the last few weeks, including some of the state’s largest projects, new community infrastructure, construction training institutes and much more. We hope that you enjoy reading about their efforts as much as we enjoy sharing the news about them.

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CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher/Editor Andrea M. Pearman apearman@buildingindiana.com Director of Advertising Diane Towle dtowle@buildingindiana.com Writer Nick Dmitrovich ndmitrovich@buildingindiana.com Creative Director Jen Labriola jlabriola@buildingindiana.com Graphic Designer Carlo Labriola clabriola@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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Andrea M. Pearman Publisher

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Copyright ©2013 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.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Contents S e p te m b e r/O c to b e r

2013

D E PA R T M E N T S

EVERY ISSUE

04 Publisher’s Desk 08 Contributors 09 Business Buzz 21 People News E X P E RT A DV I C E

24

26 29

34

CAF’s New Training Facility

38

24

State of the Industry Upside Down Business Model

41

Construction feature IUPUI’s $25M New Science &

Engineering Lab

50

Construction feature

Community Health Networks

New Career Center

52

Safety Zone Winning the Culture War

Being Productive Hearing Ways to Cut Red Tape

RULE OF LAW Consequential Damages

32

CONSTRUCTION feature

LOGISTICS

55

The bottom line Big Changes Affect EMR Calculation

Indiana’s Heavy Haul Worker’s comp

Hoosier Workplaces are

Becoming Safer

58 F E AT U R E S

22 40

PHOTO FEATURE Mass Production Manufacturing Revenue

38

42

A Growth Device

Purdue Research Park

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Green & Sustainable

Granite Recycling

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Welcome Center Westfields Grand Park Sports Complex

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60 6

44 cover story

LifeLong Learning

Facts & Stats Logistics Statistics

Economic Development

2013 “Indiana’s Companies

to Watch”

66 the last word

More Than Just a Paycheck

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

My spine-tingling cancer story.

I never thought it would happen to me. But when it did, I just wanted it out. But my cancer wasn’t just lying there waiting to be taken out—it was right next to my spine.

As my doctor started discussing treatment options, I immediately started to assume the worst. After all, it was my spine. But then he said, “I know exactly what to do.”

World-class cancer treatment— right here at home.

inspiring health FranciscanAlliance.org

When facing cancer, you want the best possible care. The hospitals of Franciscan Alliance are committed to providing state-of-the-art treatment using the most advanced cancer-fighting technology available—all right here in your community. In fact, Franciscan Alliance hospitals are nationally recognized for providing outstanding cancer care. You would go anywhere for world-class cancer treatment. It’s nice to know you don’t have to go far.

Contributors Linda Duran

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We have the expertise, experience and resources to perform: • Process and power piping fabrication and erection • Mechanical and process equipment rigging, erection and alignment • Instrumentation • Boiler erection and repair • Complete plant maintenance services • Construction management and general contracting • Full service fab shop as well as value engineering SAFETY Safety is a key player on the Amex team. We are very proud of our Safety record. Amex employs 6 full time Safety professionals, our Corporate Safety Director and 5 Field Safety Supervisors. Amex is very conscious of safety and loss control and believes Safety awareness is job one! This attitude not only benefits Amex, but our clients as well.

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Linda Duran serves as the Marketing Coordinator for CertifiedSafety bringing over 15 years of experience in the petrochemical industry. Combining strong writing skills and an enthusiasm for marketing communications, Linda supports the company’s proposal development process. She also manages the marketing campaigns for CertifiedSafety and all trade shows and convention planning. Prior to joining CertifiedSafety, Linda worked as a Contract Specialists in the Petrochemical industry and as a Junior Project Manager for an Engineering Firm in Southern California. Linda currently volunteers twice a week at a local non-profit organization that specializes in helping children and adults develop a sense of self-discipline while improving their athletic ability in the sport of BMX. 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 construction industry of northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development.

Mitchell Surovik Mitchell Surovik was born and raised in Central Texas. He served in the U.S. Army Airborne Infantry before moving into the Military Intelligence field. Mitchell has worked in a variety of construction and general industry fields from petro-chemical to power and primary metals. He has a degree in Occupational Health and Safety. He was granted to the title of Certified Safety Professional from the Board of Certified Safety Professionals. Mitchell is one of the owners of 633 Safety Services where he serves as the Consulting Manager.

Jeff Biesen Jeff Biesen CPCU is the owner of JBI Insurance Group. In the business for 25 years he has specialized in working with Contractors throughout NWI and Chicago. He works to find ways to reduce the cost of risk and insurance for contractors.

Steve Martin Steve Martin is a writer and publicist at the Purdue Research Foundation in West Lafayette. The mission of the Purdue Research Foundation is to advance Purdue University’s quest for preeminence in discovery, learning and engagement through effective stewardship of assets.

PATRICK A. DREWRY Patrick A. Drewry is a partner in the Indiana law firm of Drewry Simmons Vornehm, LLP with offices in Merrillville and Indianapolis. Mr. Drewry practices in construction law and litigation, public contract law, surety law, and commercial and business litigation. Patrick represents all participants in the construction process, including both private and public owners, general and prime contractors, subcontractors, suppliers and construction sureties. He handles matters ranging from bidding and contract negotiations through field performance problems and dispute resolution.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Harvesting the Sun

MAIN BUZZ

Indiana’s Building The Largest Airport Solar Farm In U.S.

“Photo Courtesy of John Bragg and Brandrenew”

By Nick Dmitrovich

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ecently, the announcement was made that the largest airport solar farm in the United States is well

ahead of its construction schedule. The news came from partnering companies working together on the 75-acre, $35 to $40 million solar farm located near the Indianapolis International Airport off of I-70; which include: the City of Indianapolis, General Energy Solutions Inc., Telamon Corporation, Johnson Melloh Solutions, Indianapolis Power & Light Company, Sharp Business Systems, the Indianapolis Airport Authority, and Cenergy Power.

“All entities involved are committed to finding a creative solution to increasing sustainability in Indianapolis while helping diversify renewable sources of electric power for Indianapolis business and residential customers,” the partners stated.

Airport interest in solar energy is growing rapidly as a way to reduce airport operating costs and to demonstrate a commitment to sustainable development. Solar is a renewable energy source that con-

tributes to national goals of sustainability, energy independence, and air quality improvement. It is particularly well-suited to airports because of available space and unobstructed terrains. The new farm will generate more than 15 million kilowatt hours of electric energy annually, enough to power more than 1,200 average American homes for a year. Using solar power will prevent approximately 10,700 tons of carbon dioxide from being released into the environment each year—the equivalent of removing approximately 2,000 cars from the roads of central Indiana.

“As the economy of Indiana is continuing to expand and make a solid effort toward strong solar policy, we are pleased to be able to play a role in expanding the growth of the solar industry in the state of Indiana”, said David Su, CEO of General Energy Solutions Inc., owner of this airport solar project. The general contractor and construction management company selected for the IND Solar Farm installation will be Cenergy Power. Cenergy Power is a solar EPC company comprised of seasoned power system professionals and financial experts focused on utility, com-

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

mercial, and agricultural end-users interested in solar photovoltaic solutions; solar panels that generates electrical power by converting solar radiation into electricity.

Currently 6,111 racking posts have been installed throughout the property.

Each post has been driven 9 feet into the ground, according to Cenergy Power construction manager Chris Sears. The posts support 1,960 racks or arrays with each array holding 28 panels. At construction completion, there will be more than 41,000 panels, each measuring approximately three – by – six feet. Construction is expected to be completed in August of 2013.

During the groundbreaking ceremony held a few weeks ago in the spring, Indianapolis Mayor Greg Ballard said, “This marks the latest step by the City of Indianapolis to encourage the development and use of renewable energy sources.

Through our Office of Sustainability and my initiative to transition the city’s entire vehicle fleet to post-oil fuel by 2025, Indianapolis is quickly becoming a leader in the Midwest in embracing new energy

technologies.”

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BUSINESS BUZZ

Central Whitsett Group Announces Numerous Construction Plans Developer The Whitsett Group has announced plans for a $28 million project called Lockerbie North, set to be built on a vacant lot at the northwest corner of North College Avenue and East Michigan Street. The project will include 215 market-rate apartments and 9,000 square feet of retail, in addition to a 240-space underground parking garage. The retail component will begin at the corner of College and Michigan and run west along Michigan, principal Joe Whitsett said.

The Whitsett Group bought the property in March 2011.

Construction should begin by October, according to Whitsett officials.

Anson Keller of the DkGr architectural

firm is the architect on the project. The Whitsett Group also has plans to start by the end of the year on a building to be constructed on The Indianapolis Star’s campus at the corner of Delaware and New York streets. Whitsett’s plans call for up to 500 apartments in three buildings and retail space that could attract a bank branch or restaurant.

The developer also is partnering with Ambrose Property Group on a $16 million rehab of the former Litho Press building at 800 N. Capitol Ave. that calls for 111 apartments, in addition to redeveloping the American Building at 333 N. Pennsylvania St. into 72 units and the 15-story Consolidated Building at 115 N. Pennsylvania St. into 98 apartments.

Hoosier State Resumes Production of Twinkies Production has resumed at the Hostess Brands LLC bakery in Indianapolis. It is one of four operations throughout the country again producing

items for the snack company, which emerged from bankruptcy this year with new ownership. The company says it is planning to open a fifth bakery next year, but has not selected a location.

Approximately 100 million snack cakes, including Twinkies, CupCakes and bags of Donettes, will hit store shelves over the first two weeks of the comeback – as will Zingers®, HoHos®, DingDongs®, fruit pies and mini muffins. SnoBalls and SuzyQs will return in the next few months. Because of the overwhelming demand, Hostess will have five times more Twinkies on the market during the first two weeks of the comeback than during the same two-week period last year.

The historic milestone comes four months after investment firms Metropoulos & Co. and Apollo Global Management, LLC rescued the brand, buying select assets out of bankruptcy and setting in place bold plans to bring back iconic Hostess snack cakes.

Retail customers representing more

Annual 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

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Thursday, December 5, through Friday, December 6, 2013 JW Marriott Hotel

10 South West Street Indianapolis, IN 46204

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Flaherty & Collins Properties to Build $81 Million Skyscraper Flaherty & Collins Properties announced plans recently to build an $81 million, 28-story skyscraper on part of the former home of Market Square Arena, in Indianapolis, in what would be the tallest new downtown development since the 34-story JW Marriott hotel opened in 2011.

The city has agreed to contribute $17.8 million by investing property taxes generated from the project back into the development, which would break ground next spring and be completed by late 2015. The investment would require approval by the City-County Council. Flaherty & Collins had been chosen from a field of six developers for the project.

The plan calls for 300 luxury apartments, 500 parking spaces and 43,600 square feet of ground-floor retail space. It would feature a rooftop pool, a green sky window on the tower roof, and apartments with floor-toceiling windows and panoramic views of the city renting for between $1,300 and $2,400 per month. The architect is Dallas-based RTKL. Mayor Greg Ballard and company officials made the announcement early Tuesday at the roughly 2-acre site, which has served as surface parking since the arena’s implosion in 2001. City officials decided to offer only the northern half of the arena site this time around, in hopes a first phase would help drive demand for a second one.

Central Indiana Sees Increase in Building Permits The Builder’s Association of Indianapolis recently reported that the Greater Indianapolis Nine-County, Single-Family Building Permits for June 2013 increased 13 percent compared to June 2012. There were 474 permits issued in June 2013 compared to 419 permits issued in June 2012.

The June permits mark the 12th-straight same-month increase from the previous year. Permits were at -3 percent in June 2012 and have increased an average of 27.25 percent for the 12 months following.

Annual totals for the Greater Indianapolis Nine-County region, which includes Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan, and Shelby counties, through June 2013 show permits are up 26 percent from last year with 2,603 permits issued. Comparatively, there were

BUSINESS BUZZ

than 100,000 stores placed significant orders in advance of the comeback – with orders skyrocketing as news of the official comeback date broke. Overall demand is several times greater than levels experienced in prior years.

The bakeries have been running at capacity, but because of the extraordinary number of orders, it is possible that not all stores will have all products on shelves immediately.

The “Sweetest Comeback in the History of Ever” tag line created for the multi-million dollar integrated marketing, advertising and public relations campaign - developed in connection with the launch by BernsteinRein and LAK Public Relations - signals a new attitude for the brand and a push to broaden its appeal.

S S IBITOR AL SESSION eers H X E 0 in N 7 g O n I R E T E A ty OV 5 EDUCSociety for Safe OVER 2 y arded CEU Aw

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2,074 permits issued through June 2012.

For the month of June 2013, the 474 permits issued created a total economic impact of $94,914,415 in local income, $21,547,145 in local taxes, and 1,607 local jobs (see chart below). In the Greater Indianapolis Nine-County region, the 2,603 permits issued through June 2013 have created a total economic impact of $466,155,140 in local income, $105,824,943 in local taxes, and 7,892 local jobs.

First Internet Bank of Indiana Cuts Ribbon on Fishers Location First Internet Bank of Indiana, a provider of online retail and business banking services nationwide, hosted a ribbon cutting ceremony recently to celebrate the expansion of its operations to a new location at 11201 USA Parkway in Fishers, Indiana.

The 49,700 sq. ft. facility was formerly classified as medical use-tax exempt. The First Internet expansion will bring the facility back into a taxable use, creating jobs and opening up additional space for potential new tenants. By creating 48 new jobs, First Internet Bank plans to invest $3.3 million in new payroll. Approximately 65 banking and mortgage professionals will conduct banking services at the new location, which is 9 miles from the company’s headquarters in Indianapolis, Indiana.

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David Becker, President and CEO of First Internet Bank, members of the Fishers Chamber of Commerce, members of the Fishers Town Council and other local business leaders were present for the ceremony.

Ranked as one of the Best Places to Live in the United States by Money magazine, the Fishers community is a suburb of Indianapolis, IN and fosters a strong, rapidly growing business community.

For daily news from Central Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.

Northwest Baseball to Bring Dollars to Porter County A baseball tournament set for July 18-21 at Chesterton High School is expected to fill as many as 700 hotel room nights and pump tens of thousands of dollars into communities throughout Porter County. The Babe Ruth Ohio Valley Regional Tournament features 12 teams from Illinois, Indiana, Kentucky,

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Riverfront Condos Coming to South Bend Wharf Partners, LLC recently announced the development of riverfront mid-rise luxury condominiums coming to South Falk_StructureAnalysis_ad_Jan2010:FALKSPCSHHEET

Bend. Known as The Cascade Condominiums, the location is at the former Wharf Restaurant property on Colfax Avenue at the river. Two 8-story residential towers will provide residents with panoramic views both up-and-down river, across the entire downtown skyline and along the East Race. Some sightlines extend all the way to Notre Dame.

Planned for occupancy in 2014, The Cascade is owned and being developed by Wharf Partners LLC, which acquired the parcel in late 2011.

Perched above an on-grade enclosed parking level that elevates the condominiums for privacy and views, each floor contains only two units which vary in size from approximately 2,500 to 3,000 sq. ft., and which may be combined into a single 5,500 sq. ft. condominium. In addition to the enclosed parking, all condominiums will have card-access entry and elevator service, floor to ceiling window walls with panoramic views, and private balconies facing the river.

According to architect Philip Panzica, the buildings will be constructed of durable and attractive precast concrete, making the structure far stronger, safer, and more durable than wood framing common to low-rise multi-housing. The buildings will also be fully fire-sprinkled and alarmed.

The Phase I south tower adjacent to Seitz Park will include up to twelve condominiums, and a Phase II companion tower along Colfax will follow pending the pace of presales.

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Structure Analysis

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aser Scanning: one of the most innovative surveying technologies available, measuring millions of individual points at high rates of speed with an accuracy of +/- 1/8". The collected data is then used to generate 3D modeling and drawings of complex structures.

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In the settlement monitoring for this shoring wall excavation, Falk-PLIʼs technology was able to provide the results in a few hours without interfering with construction, whereas conventional methods would have taken all day.

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Through the use of the laser scanner, Falk-PLI was able to complete the settlement reports sooner, which became vital to ensuring the safety of the excavation. Knowing the settlement data was current, the client was confident the data could be relied upon to assess project safety.

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BUSINESS BUZZ

Michigan, Ohio, West Virginia and Wisconsin.

Indiana Dunes Tourism secured nearly 100 hotel rooms in Chesterton, Porter, Portage and Valparaiso for four nights to accommodate the players and coaches. And families of the participants are expected to fill another 70 hotel rooms each night. Indiana Dunes Tourism is partnering with the Duneland Chamber of Commerce to provide to each visitor a welcome bag, which will include guides to Porter County and coupons.

Officials will also set up an information booth to answer visitors’ questions and guide them attractions like the Indiana Dunes, Seven Peaks Waterpark Duneland in Porter, Portage 16 IMAX, and Valparaiso attractions like Zao Island, 49er Drive-In Theatre, Hoosier Bat Company and Inman’s Recreation Center.

Studies show the average overnight visitor to Indiana Dunes Country spends $93 per day, so the economic impact of the tournament -- brought to the area by Nick Doud of Porter County Storm and Michelle Miloshoff of Duneland Diamond -should be tens of thousands of dollars. The tournament is open to spectators for a small fee.

BUSINESS BUZZ

Purdue Innovations Receive Funding Push Purdue researchers received more than $200,000 through the Trask Innovation Fund to help commercialize their innovations in the fields of chemistry, engineering, and speech, language and hearing sciences. The Purdue Research Foundation-managed Trask Innovation Fund is a development program to assist faculty and staff whose discoveries are being commercialized through the Purdue Office of Technology Commercialization. The following lists the amounts granted to the different projects: • Corey Neu, assistant professor in Purdue University’s College of Engineering, received $50,000 to support “Critical Advancement to a New AFM/NMR Instrument.”

His innovation allows researchers to better understand cell movement and physical and chemical properties at a single-cell level.

• “Metamaterial Sound Insulation Panels,” Thomas Siegmund, professor in the College of Engineering, $33,626. The technology can be used to fabricate materials that control, direct and manipulate sound in various applications including aerospace, automotive and civil.

• “Wireless Positioning and Tracking Technology for Indoor Location Based Services,” Byunghoo Jung, associate professor in the College of Engineering, $49,548. This

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technology shows promise for an automated positioning and tracking system for indoor and outdoor applications with substantially higher resolution than GPS-style positioning systems.

“Development of SPEAK more! A Language Training App for Individuals with Severe Autism,” Oliver Wendt, assistant professor in the College of Health and Human Sciences, $50,000. The technology shows promise in helping individuals affected by severe, non-verbal autism to foster more robust communication with their families and others.

“Fast Spectroscopy Imaging by Parallel-detection of Stimulated Raman Scattering,” Ji-Xin Cheng, associate professor in the College of Science, $50,000. The technology will allow researchers, clinicians or pathologists to look at live biological samples, without labeling, in real-time.

ArcelorMittal Recovers Quickly After Burns Harbor Mill Fire After only two short weeks, ArcelorMittal’s steel mill in Burns Harbor has rapidly recovered from a recent twoalarm fire. All of the necessary repairs have been made and operations have returned to normal. The fire began in a coal bunker serving ArcelorMittal Burns Habor’s coke battery

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www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

PNC Adds New Bachelor’s Degree in Health Studies The Indiana Commission for Higher Education (ICHE) has granted approval to Purdue University North Central to offer a Bachelor’s degree in Health Studies. Students will have the opportunity to enroll in the Health Studies program this fall semester. Purdue North Central now offers its students 24 baccalaureate programs.

The Health Studies degree is appropriate for those students who wish to work in a health-related career, but do not want to pursue Nursing. The types of jobs available include care coordinator and medical and health services manager, Graduates will be well prepared to pursue master’s degrees in health and human services programs. There is a two-year degree completion track for those with an associate degree in Nursing or allied health who wish to move into management positions.

The Bureau of Labor Statistics projects employment in health services to increase 25 percent through 2018, adding about 2.8 million new jobs. In Indiana, there is a 28.7 percent projected growth rate.

Health care is the fastest growing industry in Northwest Indiana, states an Inside Indiana Business report. Of the five largest industries in this region, two are in health: ambulatory health care services and hospitals. Locally, the Indiana Workforce Development Agency projects the health care profession growth rates to range from 10.8 to 28.9 percent.

For daily news from Northwest Indiana and around the state, visit our blog at www.buildingindianablog. com and follow us on Twitter @BuildingIndiana.

Northeast Fort Wayne Unveils Details about New $2 Million Community Center Fort Wayne Mayor Tom Henry, City Councilman Glynn Hines and Parks & Recreation Director Al Moll were joined by MSKTD and Associates today to unveil the renderings of the McMillen Park Community Center, a Legacy Fort Wayne project. www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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operations, General Manager Bill Steers said. As part of the steelmaking process, coal is purified into coke and then entered into a blast furnace to melt iron. The facility is capable of producing up to 4.7 million tons of raw steel annually. The mill is one of ArcelorMittal’s largest fully integrated steelmaking facilities in the United States, with more than 3,700 workers employed at the site.

During the fire, firefighters from five different Porter County fire departments aided the mill’s in-house department in fighting the blaze. Company officials said the damage was minor, and did not affect production. Workers returned to the mill the next day.

BUSINESS BUZZ

The community center will feature programs for all ages that will include sports and recreation as well as educational, social, and health and fitness programs. MSKTD and Associates are responsible for all design necessary for bidding the construction work and will handle project management through completion. This will be Phase 1 of the project.

Additional phases will be needed to complete the renovation.

To ensure the future McMillen facility would meet the community’s ongoing needs, the Parks & Recreation Department held public meetings a few years ago to gather ideas. A conceptual drawing derived from the public’s feedback was presented to the community later that same year.

This Legacy Fort Wayne project is expected to be complete in 2014 at an approximate cost of $2 million. Legacy Fort Wayne was created by proceeds from the sale of the City Light Utility to Indiana Michigan Power and its funds are being used to create transformational change in the community.

Vera Bradley Announces $26 Million Expansion Vera Bradley, Inc. (NASDAQ: VRA), a designer of handbags, gifts, travel bags and accessories, announced plans to

expand its operations in Fort Wayne, creating up to 128 new jobs by 2017. The homegrown-Indiana company will invest approximately $26.6 million to expand and equip its current 40,000 square-foot design center by 149,000 square feet and expand its distribution center by 10,000 square feet. Both facilities are located on Stonebridge Road off the Lafayette Center Road exit on Interstate 69 and are expected to be operational next year.

This is Vera Bradley’s second major expansion in northeast Indiana in less than two years. In 2011, the company announced plans to invest $22.5 million to expand its Roanoke distribution center to 420,000 square feet, adding 124 new jobs.

Headquartered in Fort Wayne, the company was founded 31 years ago by Barbara Bradley Baekgaard and Patricia R. Miller who were inspired to start the company when they noticed a lack of feminine-looking luggage while waiting at an airport terminal.

Today, Vera Bradley is available at 79 Vera Bradley retail stores and 14 outlet stores across the country.

The Indiana Economic Development Corporation offered Vera Bradley, Inc. up to $1,750,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Allen County will

Book your 2013 classes now

2013/2014

CAF & NWIBRT Professional Development Series -

The Survival of the Industry is in your Hands

October 25, 2013 Alpha Dog Leadership - Strategies Every Leader Must Know – Since the beginning of time, it is leaders who have determined the direction and outcome of every form of human organization and every bit of human history. Alphas have always made the greatest impact and difference. Through leadership, all that is possible occurs. We’ll use Mark Breslin’s book, Alpha Dog as the basis for this course specifically tailored to develop your leadership skills for the construction industry.

– 4 hours Cost: $99 November 22, 2013 Never Cut What You Can Untie - Winning Strategies for Negotiating Anything! – Success in construction is about winning. You can get anything you want, but you have to ask! Using issues and examples from the construction industry, this course includes topics such as: Stages of Every Negotiation, Critical Elements of Negotiations, Negotiating Strategies, Negotiating Styles, and Standards for Success. Closing with a collective bargaining role-play, the course has received excellent reviews over and over again.

– 6 hours Cost: $149

December 19, 2013 Breeding Alpha Dogs – How to Develop Leaders of the Pack and Why it Matters – Who will run your construction company when you’re gone? Future leaders, like Alpha dogs, don’t just happen, they are developed, nurtured, and grown.

In addition to sharpening your leadership skills, This seminar teaches you how to recognize the leaders within your team, develop their skills to generate positive results and necessary change.

- 4 hours Cost: $99 December 19, 2013 - NOON START The Devil is in the Details - What You Must Know About Construction Contracts – Designed for Project Managers, Superintendents, Construction firm owners, Project Owners, Architects and Engineers, this course will begin with the details of construction contracts. In order to avoid costly claims and litigation, your staff MUST know their contracts. Issues such as performance obligations, risk assumption and allocation, professional liability concerns and developing contract terms and conditions will be presented for various project delivery systems.

- 4 hours Cost: $149

Registration & Discount info RESERVE YOUR SPACE NOW: Contact Kevin at kevin@cafnwin.org, visit www.cafnwin.org or call 219-764-2883.

Continental breakfast at 7:45am, classes at 8am at the CAF building, 6050 Southport Rd, Suite A, Portage, IN

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• Individuals who sign up for three or more classes receive 10% off total price.

• Companies who send two or more attendees receive a $10 discount for each additional employee • All participants will receive Professional Development Certificates upon completion of each seminar.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

consider additional property tax abatement at the request of Fort Wayne-Allen County Economic Development Alliance.

Developer Whitley RC Investments, LLC announced the construction of a 75,000 SF expandable shell building at “shovel ready” certified Rail Connect Business Park in Whitley County.

Whitley RC Investments, LLC involves a partnership between Whitley County business owner Simon Dragan and Harbor Investments, LLC. The shell building will include 70,000 SF of manufacturing space and 5,000 SF of office space on a 14.77 acre lot in Rail Connect Business Park. The building will be expandable to 190,000 SF and will feature 30’ eaves. RE Crosby Inc. has been selected as the general contractor for the project.

CBRE Sturges will represent the facility. Site work for the project is now underway and the shell building will be available for lease or sale during the fourth quarter of 2013.

Rail Connect Business Park is a 120 acre publicly owned, master planned industrial park with rail and highway access near the intersection of US Highway 30 and County Road 600 East that has received “shovel ready” designations from the Indiana Economic Development Corporation (IEDC) and the Northeast Indiana Regional Partnership. Rail Connect Business Park is located in one of two Tax Increment Finance areas administered by the Whitley County Redevelopment Commission in the US 30 Industrial Corridor.

Whitley County Council today approved 10-year tax abatement on the shell building at the request of the Whitley County EDC. The Whitley County Redevelopment Commission is also participating in site development and holding costs associated with the project. The Whitley County EDC will work with economic development partners to identify resources to support job creation and investment projects considering the shell building. Companies locating in Whitley County are also eligible for Foreign Trade Zone status.

Companies already located in Rail

BUSINESS BUZZ

Construction Moving Forward at Rail Connect Business Park

Connect Business Park consist of Triad Metals International and Indiana Materials Processing. In summer 2011, Triad opened its newest and first Midwest facility to distribute structural steel products such as wide flange beams, mini mill hot rolled shapes, hot rolled tubing and pipe for construction, OEM’s and energy related projects. Indiana Materials Processing recently opened the company’s first production facility, which incorporates first-of-itskind operational technology to produce both custom chemistry and physical property feedstock for steel mills and foundry customers.

For daily news from Northeast Indiana and around the state, visit our blog at www.buildingindianablog. com and follow us on Twitter @BuildingIndiana.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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BUSINESS BUZZ

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South Old National Bancorp Acquires 24 Bank Branches

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Old National Bancorp (NYSE: ONB) announced that its banking subsidiary, Old National Bank, completed its previously announced acquisition of 24 retail bank branches of Bank of America. As a result of this transaction, Old National acquired approximately $575 million in deposits and $5 million in loans based on July 9, 2013 balances.

The branches are located in the Northern Indiana cities of South Bend and Elkhart, and the Southwestern Michigan communities of Adrian, Battle Creek, Benton Harbor, Blissfield, Brooklyn, Constantine, Jackson, Kalamazoo, Niles, Paw Paw, Portage and St. Joseph.

Old National Bancorp (NYSE: ONB) is the largest financial services holding company headquartered in Indiana and, with $9.7 billion in assets, ranks among the top 100 banking companies in the U.S. In addition to providing services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at oldnational.com.

Evansville’s PD&S Buys Franklin Business

PD&S (Pickup, Delivery & Shipping), a minority-owned Indiana based company and source for international shipping solutions, executed an agreement to purchase a local flat bed carrier company based in Franklin, IN, USA. A year ago PD&S publicly expressed its intent to create jobs and open a new location in the Indianapolis, IN area. The PD & S headquarters and main shipping terminal is located in Evansville, IN. The company provides on-demand courier services and expedited trucking throughout the continental United States and Canada. PD&S started their business in Evansville, IN in 1983.

PD&S is currently considering a new location for their Northern Indiana offices as well. They will add up to 20 more jobs during their expansion phase, making them one of the largest minority owned logistics companies in the state of Indiana.

Two Indiana Banks Announce Merger

Jasper-based German American Bancorp, Inc. (Nasdaq:GABC) and Bloomington-based United Commerce Bancorp (OTCBB:UCBN) announced that they have entered into a definitive agreement to merge United Commerce into German American. Upon completion of the transaction, United Commerce’s subsidiary bank, United Commerce Bank, will be merged into German American’s similarlynamed subsidiary bank, German American Bancorp.

Under the terms of the definitive agreement, United Commerce common shareholders will receive shares of German American common stock at an exchange ratio of .5456 to .6667 GABC shares for each UCBN share (with the exact number to be fixed at closing based on German American’s pre-closing market price) in a tax free exchange, plus a cash payment of $1.75 per United Commerce share. www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

BUSINESS BUZZ

This cash payment is subject to reduction to the extent that United Commerce’s consolidated common shareholder’s equity is not at least equal to a certain level at the time of closing.

The total indicated transaction value is estimated to be approximately $15.3 million. This amount includes an estimated $716,000 of cancellation payments to the holders of United Commerce’s outstanding stock options on the basis of German American’s July 23, 2013 closing price and the number of options outstanding on that date.

The transaction is expected to be completed during the fourth quarter of this year. Completion of the transaction is subject to approval by regulatory authorities and United Commerce’s shareholders as well as certain other closing conditions, including maintenance by United Commerce of a certain level of consolidated shareholders’ equity. German American was advised by the law firms of Ice Miller LLP and Mark Barnes Law PC. United Commerce was advised by the financial advisory firm of Renninger & Associates, LLC and the law firm of Barnes and Thornburg LLP.

Envolve Engineering Plans Growth in Evansville

For daily news from Southern Indiana and around the state, visit our blog at www.buildingindianablog. com and follow us on Twitter @BuildingIndiana.

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Employment at Envolve Engineering is expected to reach 8-10 professionals in the first six months of business. Growth is expected through 2014 as Envolve’s capabilities compliment other regional employers well. Services provided by Envolve include: • 3D component modeling & print detailing • Plastic part design (injection mold, extrusion, thermoforming & specialty molding) • Metal part design (sheet metal, die casting, powdered metal & other) • Electromechanical and electronic assemblies (solenoids, motors, controllers & wiring) • Software and control algorithm development Envolve Engineering is located on the 5th floor of Innovation Pointe; Evansville’s premier business incubator in Downtown Evansville.

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19

People News Browning Comes Back to INDOT Governor Mike Pence today named Karl Browning Commissioner of the Indiana Department of Transportation (INDOT).

Browning, of Zionsville, has served as Executive Director of the Hoosier Lottery since December of 2011. He previously held the role of Commissioner of INDOT from 2006 to 2009, where he oversaw the contracting of the I-69 extension project. He also served as Chief Information Officer of the Indiana Office of Technology. Browning also worked in the private sector as President of The Schneider Corporation and as Senior Vice President and Chief Information Officer of Golden Rule Insurance Company. He has spent the majority of his career managing service delivery organizations to help customers improve processes and profitability, traits that have translated well during his roles as agency head in state government.

Dean Ranalli Promoted to Executive Director of Allison Transmission Allison Transmission Holdings Inc. (NYSE: ALSN) announced that Dean E. Ranalli has been promoted to Executive Director and Chief Information Officer. Ranalli joined Allison Transmission in May 20

2011 as Director of Global IT Infrastructure and Operations. He had served as Acting CIO since July 2012. Prior to joining Allison, Ranalli was a Global Services Manager with Alcatel-Lucent in Pittsburgh, where he was responsible for IT operations for the University of Pittsburgh Medical Center’s voice, data and wireless networks. Ranalli also previously worked for Advanticom in Pittsburgh, where he held positions of increasing responsibility including Project Manager, Operations Manager, and Director of Professional Services. He holds a bachelor’s degree from Indiana University of Pennsylvania.

Allison Transmission is the world’s largest manufacturer of fully-automatic transmissions for medium and heavyduty commercial vehicles, medium and heavy-tactical U.S. military vehicles and hybrid-propulsion systems for transit buses.

Anthony Promoted to Executive Vice President of Duke Realty Duke Realty Corporation (NYSE: DRE), announced that Nick Anthony has been promoted to Executive Vice President and Chief Investment Officer. Mr. Anthony also will be a member of Duke Realty’s Executive, Operating and Investment Committees. In his new position, Mr. Anthony will oversee all acquisition and disposition

transactions, working closely with Duke Realty’s senior operating managers. He also will be responsible for administering joint venture partnerships the company has with other investors. Mr. Anthony began his career with Duke Realty in 1989 in its Cincinnati office. He has held positions in Financial Analysis, as a Regional Controller for the company’s Ohio properties and Vice President of Portfolio Management. In 2005, he was promoted to Senior Vice President, Capital Transactions and Joint Ventures. Mr. Anthony received his bachelor’s degree in accounting and management from Anderson University and is a certified public accountant.

Old National Hires New Region President Phil Harbert has joined Old National Bank (NYSE: ONB) as president of the company’s new Michigan region. Old National, headquartered in Indiana, recently entered the Michigan market with the acquisition of 20 former Bank of America branches in Southwestern Michigan, plus four additional banking centers in Northern Indiana.

Prior to joining Old National, Harbert was with 1st Source Bank for 28 years where he most recently served as president for the Kalamazoo region.

A graduate of the University of Notre Dame, Harbert lives in Kalamazoo with his wife Debo-

rah and son Will, who attends Michigan State University. Harbert is active in the Kalamazoo community and served as the area’s 2012 United Way campaign chairman.

Greater Fort Wayne Inc. Names Mark Becker as Chief Executive Officer Greater Fort Wayne Inc. announced that it has named Mark Becker as its chief executive officer.

Becker comes to Greater Fort Wayne Inc. from the City of Fort Wayne, where he has served as deputy mayor since early 2012, as well as in an earlier administration. In Fort Wayne, Becker has held executive and senior management positions in economic and business development for private and public organizations including the Northern Indiana Public Service Company (NIPSCO), the Northeast Indiana Fund, the City’s Division of Community Development and the Greater Fort Wayne Chamber of Commerce.

Elsewhere, he held similar positions for the Greater Greenville Chamber of Commerce in South Carolina, the Logansport Economic Development Foundation, and the Logansport/Cass County Planning Department. Becker holds a Bachelor’s degree in Urban Planning from the University of Cincinnati and has served on the board of directors for numerous community organizations.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Chris Carriere Hired as Keystone’s Director of Finance Indianapolis based real estate company, Keystone Realty Group, has hired Chris Carriere as Director of Finance. Mr. Carriere previously held positions at HDG Mansur and Williams Realty Group. He has seven years’ experience in Public Accounting, primarily as an Auditor. Carriere also spent a number of years leading the Accounting department for a division of a publicly traded company as it grew through mergers and acquisitions.

He has a Bachelor of Science degree in Accounting and a Master of Business Administration degree, both from

Louisiana State University.

Carriere received his Certified Public Accounting license in 1995. His responsibilities for Keystone include evaluating new opportunities, maximizing the value of existing properties, and securing financing for projects.

Dr. Arif Dalvi Joins Methodist Hospitals Methodist Hospitals recently hired Dr. Arif Dalvi, a renowned physician, neurologist, that specializes in Parkinsons and Movement Disorders. Dalvi is a Clinical Associate Professor of Neurology at the University of Chicago Pritzker School of Medicine, Board Certified in neurologist and Psychiatry.

Has been working for over 15 years in areas of deep brain stimulation and nerve factors for Parkinsons and has also worked on clinical trials of many of the recently FDA approved drugs for Parkinsons’s disease. Dalvi is also a member of the International Parkinson’s Study Group and has been awarded a Doctor of Excellence Award by the Systonia Medical Research Foundation. In addition to being a Neurologist, he is a Psychiatrist, a Pastor and has his MBA.

Ross Group Announces Symons as Senior Project Manager Kevin Symons of Portage recently joined the The Ross

Group, in Portage, as a Senior Project Manager. He comes to the firm from the Royal Bank of Scotland where he served the financial institution as a vice president and assistant funding manager for the United States Conduits.

Having some ten years experience as a carpenter in the construction trade, Symons also holds a B. S. in Business Administration and an M.B.A. from Indiana University. In addition, he has had training in areas of supervision, leadership and safety and is certified in the OSHA 30 program.

Symons is to oversee project planning to include site specific safety planning at the firm. He is married with one daughter.

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Photo Feature

A truckload of food was donated by NWIBRT members, given in the name of a member from Manta Industries, to the Northwest Indiana Food Bank.

Tons of Fun The 2013 Northwest Indiana Business Roundtable (NWIBRT) Golf Outing took place at the luxurious White Hawk Country Club. Over 300 golfers, representing business owners, contractors, subcontractors and suppliers, participated in the day of fun and outstanding networking opportunities.

This year’s golf outing featured more than 100 door prizes, raffles for prizes including $1,500 in top-shelf spirits and $1,000 cash, charitable donations to the Northwest Indiana Food Bank including a truckload of food, a delicious breakfast and luncheon, fine cigars, and the chance to golf on one of the region’s finest courses while engaging in dialogue with numerous other professionals.

“We’re so glad that we had the chance to hold the NWIBRT Golf Outing today, it’s a real privilege for us,” said Joe Coar, Chairman of the NWIBRT.“This is a rare chance for such a large part of the Northwest Indiana business community to come together for a day of fun and a round of golf on such a beautiful course.”

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www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Pictured (L to R) on the discussion panel are: Iron Workers 395 Business Manager Doug Strayer, Iron Workers 395 Apprenticeship Board Chairman and Business Agent Jeff Veach, Ironworkers 395 Sergeant-at-Arms Tom Williamson, and Pangere Corporation Vice President Bill Rathjen.

Discussions Held On Union Education The Quarterly Labor/Management Meeting between Iron Workers Local #395 and the NWI Contractors Association was recently held.

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A crowd comprised of professionals from all over Northwest Indiana listens to discussion at the Quarterly Labor/Management Meeting between Iron Workers Local #395 and members of the NWI Contractors Association.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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23

STATE OF THE INDUSTRY

An Upside Down

By Dewey Pearman, Executive Director, Construction Advancement Foundation

O

ne of the few things I remember from my experience as a business major in college almost four decades ago is that within our capitalist business system there is an expectation of an inverse relationship between risk and reward. That is, the greater the risk involved in a business venture the greater the potential reward, or profit. The lower the risk, the lower the potential reward.

Hence, your savings account should have little risk, so you get little reward, or interest. Put your money in a risky stock investment and you could hit it big, or lose it all.

Shortly after joining the staff of the Construction Advancement Foundation some years ago, my first association with the construction industry, it occurred to me that this principle appears to break down in the construction field. The longer I am affiliated with the construction industry the more I see that the profit margin is very small, or non-existent and the risks are very high.

Let’s look at the risk side of this equation first. In addition to the general business risks that all industries are faced with – an economic downturn, technologized changes, cultural changes, changes in public policies such as taxes and regulations, and increased competition from new firms entering the market, there are some risk factors that tend to expose con24

Business Model

The Construction Industry Brings Great Risks, and Small Rewards

tractors to considerable risk in unique ways and to an extent greater than in most industries. Here are just a few: Increased material prices: You bid a job today using current material prices. You might like to build in a little cushion to protect yourself from increased prices, but if you do you risk losing the job because your cost is higher than that of a competitor. In the construction boom of the mid 2000’s we saw dramatic and sudden increases in many material prices including structural steel, concrete and dry wall. Many contractors during that period lost large sums on their projects because they could not have anticipated such sharp price increases. In addition, as often happens during periods of price escalation, there were significant material shortages. Such shortages tend to cause project completion delays. Time is the enemy of the contractor and a principal cause of profit loss.

Weather: I just had a personal experience with this risk factor as the CAF was building its recently completed Safety Institute Training Center. The contractor was making great progress last fall. Unfortunately, about the time they were ready to start laying the block for the walls, the weather turned cold unexpectedly early and for months the warmest days were rainy ones. There were record levels of rain fall last spring which delayed the project

for many weeks. Often, even when the weather does permit work to proceed, it can really affect productivity. Both extreme heat and cold affects workers’ ability to perform. Again, time is the enemy of the contractor and weather is often its co-conspirator.

Accidents: There are some inherent safety risk factors in construction that most business don’t experience. Unlike, a manufacturing process where equipment, materials and people tend to either be in a stationary spot, or move along prescribed and predicable lines, a construction site has equipment materials and people constantly moving in all directions, including up and down. And, these movements are not always predictable. Plus, very often workers are working off the ground which presents risks of falls. While much is done by contractors to protect workers, unfortunately people occasionally do get hurt.

As any business person knows, injuries are expense. The increase risk inherent in construction imposes a higher risk on contractors than most business expenses.

Theft: Drive by a construction site at night and what do you see? Tens of thousands, perhaps hundreds of thousands of dollars of construction materials and equipment sit outside unprotected. One stolen piece of equipment and a contractor and easily lose money on the whole job.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Owner financial problems: Not too many years ago we saw a series of bankruptcies in the Northwest Indiana steel industry. Many contractors in the area who had hundreds of thousands of dollars, or millions of dollars of their money in the form of labor and materials sitting on the property of those companies internationally were forced out of business themselves.

These are just a few examples of some of the uncontrollable risks a contractor takes every day. Let’s now look at the reward/profit side of the equation.

In 2011 Bloomberg Businessweek published an article – Trading 2010 Profit Margins in 97 Industries. The article rank these industries by profitability, with the 97th being the least profitable the 1st the most profitable.

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Here are some interesting numbers:

•

At 97 the least profitable industry in the country – Nonresidential Building Construction with a net profit margin of 0.78%

•

The 96th least profitable – Highway, Street and Bridge Construction with a net margin of 0.88%

•

95 – Utility System Construction, 0.88%

•

94 – Building Material and Supplies Dealers, 1.25%

•

93 – Foundation, Structures, and Building Exterior Constructions, 1.35%

•

89 – Cement and Concrete Products, 2.03%

Admittedly, 2010 was not a particularly good year for the construction industry, but it wasn’t a good year for most industries. By comparison, according to a 2005 Forbes publication in 2005, a boom year for construction, the construction industry was the second least profitable industry in the country. Even in a great year construction lags behind in terms of profitability.

Construction seems to be an upside down business model. A lot of risk and little reward.

I often ask contractors why they are in the business, and suggest to them they might do better and have more fun in Las Vegas. www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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RULE OF LAW

The Curious Case of

Consequential Damages

templated by the parties? The question of whether damages are direct or indirect is a question for a Judge or Arbitrator. The issue of whether a loss was within the conndustry veterans like to say, “You are templation of the parties is a question of one bad job away from burying your fact to be resolved at trial or arbitration. company”. Perhaps what they should How do consequential damages apsay is, “consequential damages could ply in a construction setting? Due to the bury your company”. This statement is complex nature and number of parties on a bit extreme, but consequential damages a construction project, the scope of pocan pose significant financial risks to both tential damages may be vast. However, owners and contractors on a constructypical types of an owner’s consequential tion project that can dramatically impact, damages may include lost reveif not shift, the bottom line. The nue or profits, loss use, the cost difficulty is consequential damA contractor’s consequential damages may of lost financing or even the diages are a curious and nebulous include unabsorbed home office overhead, lost minished value of the completcreature which can be open-endprofits on other jobs, loss of project financing ed facility. On the other hand, ed and difficult to define and calor bonding, loss of goodwill or harm to business a contractor’s consequential culate. reputation. damages may include unabNaturally, the question is: sorbed home office overhead, What are consequential damlost profits on other jobs, loss ages?

The response may be of project financing or bonding, frustrating. There is no clear consensus or definition of consequential derance of the evidence that the breach loss of goodwill or harm to business repudamages that fits every contract or proj- was the cause in fact of its loss. Id. “This tation.

For example, an Owner is constructect, but this is precisely why they are dan- generally limits consequential damages to gerous. They are a potentially undefined reasonably foreseeable economic losses.” ing a new pharmaceutical plant. An issue of defective work arises with a concrete risk in your contract. Generally speak- Id. These rules provide the battleground slab pour, which delays the job. Owner ing, consequential damages are losses that do not flow directly from a breach of for establishing consequential damages: blames contractor, and contractor blames contract, but rather are an indirect conse- (1) Was there a breach?; (2) Did it flow or the architect for defective plans and speciquence or loss from the breach. Indiana result, albeit indirectly, from the breach; fications. Owner demands that contractor courts expressly recognize that a “[a] (3) Was it reasonably foreseeable and con- tear out and re-pour the concrete, which By: Patrick A. Drewry, Partner, Drewry Simmons Vornehm, LLP

I

26

party injured by a breach of contract may recover consequential damages from the breaching party.” L.H. Controls, Inc. v.

Custom Conveyor, Inc., 974 N.E.2d 1031 (Ind.Ct.App. 2012). The Court in that case held that “[c]onsequential damages may be awarded if the non-breaching party’s loss flows naturally and probably from the breach and was contemplated by the parties when the contract was made. Id. However, the party seeking such damages bears the burden of proving by a prepon-

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delays the job. Contractor incurs increased labor costs, inefficiencies, and extensive management and overhead costs while it devotes additional personnel to the project. In the meantime, it loses the chance to bid on other projects. Contractor claims lost profit on the current job as well as the other projects it could have built. Owner defaults the contractor and makes a performance bond claim, arguing that the delays to the job cost millions of lost dollars in revenue due to their inability to start manufacturing a brand new drug and that the facility has diminished value. This loss kills a loan refinancing for the owner and they subsequently have to refinance at a much higher rate. The bond claim hurts contractor’s bond line and increases its premiums. Both owner and contractor claim damage to their business reputation. A lawsuit ensues and the issue of consequential damages becomes front and center. While the defective floor, or the time and costs incurred to re-pour it may be the direct damages at issue, the owner and contractor have both claimed indirect damages far and above just those costs, which could amount to millions of dollars at stake.

Such litigation may turn on how consequential damages were treated in the contract. In the legal world, we are seeing more intense and extensive negotiation over consequential damage clauses in construction contracts. Some contracts provide for the affirmative right to recover consequential damages or costs, or may bury such right in a default or claim provision. The most obvious way to mitigate against the risk is to negotiate a mutual waiver of consequential damages. A common industry form, the American Institute of Architects (“AIA”) A201 General Conditions, §15.1.6, contains a standard mutual waiver clause: The Contractor and Owner waive against each other for consequential damages arising out of or relating to this Contract. This mutual waiver includes: 1. damages incurred by the Owner for rental expenses, for losses of use, income, profit, financing, business and reputation, and for loss of management or em-

Helping companies recover from a workplace injury • Lowered workers comp costs • Improved employee morale • Faster recovery times

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ployee productivity or of the services of such persons; and 2. damages incurred by Contractor for principal office expenses including the compensation of personnel stationed there, for losses of financing, business and reputation, and for loss of profit except anticipated profit arising directly from the Work.

3. What is critical in a mutual waiver is not only to include a general and broad statement that all consequential damages are waived, but also identify specific categories of such damages that the parties may encounter. This analysis may change for a public versus private project. A school may not have extensive consequential damages, but a large manufacturer or a casino, for example, could argue extensive consequential damages.

Consider alternatives to a full mutual waiver. Create a cap to the amount of consequential damages a party may recover, or negotiate a broader limitation of liability that prevents the recovery of both direct and consequential damages over a certain amount.

We have negotiated lump sum caps or limitations, or tied it to the overall contract price, or set it up not to exceed the amount of insurance coverage. Yet another vehicle is negotiation of a liquidated damage (“LDs”) amount in lieu of consequential damages. While LDs often have a high fear factor, frequently they can help reduce or limit the amount of exposure a contractor may have, or help an owner identify a reasonable amount of damages to recover if consequential damages are difficult to calculate (i.e. a public owner).

Another difficult aspect of consequential damages is that they are often not calculated until the end of a project or when there is a lawsuit. Often times it is better to flush out the specter of consequential damages through notice and claim requirements, or by forcing the parties to negotiate disputes early prior to mediation or litigation or arbitration.

When you are bidding and negotiating your next contract, stop and consider the curious case of consequential damages, and make sure such damages are addressed in

Comprehensive Safety Consulting Minimizing risks to employees and companies Site Auditing • Safety Training • Accident Investigation • Injury Case Management Hazard Abaitment • Staffing Assistance • Safety Program Development

your contract.

P.O. Box 3166, Munster, IN 46321 / Phone: (219) 228-2282

28

www.633Safety.com www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

SAFETY ZONE

Winning the

Culture War

By Mitchell Surovik, CSP, 633 Safety Services, ILLC

T

here is a culture at work in your company that drives the way decisions are made. What do you as a company value most; quality, time, reputation, safety, money? More importantly, how do your employees think you would answer that question? The answer is the key to understanding your company’s culture. Culture will affect your company’s overall safety performance more than any other motivating factor. It bleeds into every part of your business.

Your culture is defined by the way your employees make choices. Not necessarily what they choose but why they choose it. Employees wanting to be successful in a company will try to figure out what a company values most, and will take cues from supervision.

If a supervisor spends 15 minutes explaining new job expectations with no mention of safety precautions and follows it up with 30 seconds of safety instruction, there is a value message that is communicated. Whether it’s true or not, that supervisor just told his employee that safety accounts for less than 5% of overall job completion value. The way employees

build personal value with the company is being “the guy that gets it done”. Your job in building a successful safety culture is making sure your employees know that an injury free workplaces is the “it” you want done.

People don’t do what you expect, they do what you inspect. How much time and effort is spent ensuring that your employees are performing to your companies safety standards? We all know that if something is important it gets

People don’t do what you expect, they do what you inspect. checked. You will do more damage to your safety goals by creating safety policies and procedures while not ensuring compliance than you would by not having a policy at all. Are you bearing the burden of doing whatever it takes to protect employees? Safety inspections and audits should be performed at every level of your organization.

If the only person your employees ever see performing safety inspections is the safety professional they will mentally separate themselves from safety

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

responsibilities. If employees know that you feel a moral responsibility to protect them from death, injury, and illness and don’t just care about regulatory compliance, that employee will translate their supervisor’s actions into personal responsibilities as well. That’s a culture victory.

The National Association of Safety Professionals (NASP) expressed this safety culture concept precisely with its eight definitive characteristics of a successful workplace safety culture shown on the next page.

The NASP expressed this safety culture concept precisely with this safety philosophy excerpt. I wish I’d written it.

I do disagree with NASP on one point.

I don’t like calling safety “a company’s top priority”, implying that safety is on the priority list. Priorities can change and are affected by a number of external forces.

Safety has to be a value. Values aren’t subject to external forces, they stand against them. That’s the category you want your companies safety performance to be in. You can win the culture war. It’s hard. It takes time and commitment. Most importantly, you have to believe that’s it a war worth waging. If you act on that belief the culture will follow.

29

The National Association of Safety Professionals identified eight definitive characteristics of a successful workplace safety culture: Safety is an Ethical Responsibility. At its core, ethics holds up a positive vision of what is right and what is good. It defines what is “worth” pursuing as guidance for our decisions and actions. Workplace injuries and deaths are too often seen in the abstract as statistics. But when it happens to someone we love, we suddenly see the reality of the horrible pain and suffering and its widespread effect. It is our ethical responsibility to do what is necessary to protect employees from death, injury, and illness in the workplace. This is the only foundation upon which a true safety culture can be established in any workplace.

• Safety is a Culture Not a Program. The combined commitment and participation of the entire organization is necessary to create and maintain an effective safety culture. Every person in the organization, from the top management of the corporation to the newest employee, is responsible and accountable for preventing injuries.

• Management is Responsible. Management’s responsibility is to lead the safety effort in a sustained and consistent way, establishing safety goals, demanding accountability for safety performance, and providing the resources necessary for a safe workplace. Managing safety is the responsibility of every supervisor, from the first line supervisor to the Chairman of the Board.

• Employees Must Be Trained to Work Safely. Awareness of safety does not come naturally; we all need to be trained to work safely. Effective training programs both teach and motivate employees to be a productive part of the safety

culture.

• Safety is a Condition of Employment.

The employer must exhaust every reasonable means to lead, motivate, train, and provision employees to maintain a safe workplace. But, in the event the employee refuses to take the actions required to work safely, the employer must utilize a system of progressive discipline to enforce safety requirements and ensure the cooperation of the employee or the removal of the employee from the workplace in order to protect the employee and their coworkers.

• All Injuries Are Preventable. Sometimes accidents occur without the apparent indication of fault or blame. But there is always some chain of events that occurred leading up to the accident that, had we realized the eventual outcome, someone could have interceded. The fundamental belief that injuries are, by their nature, preventable is a catalyst that encourages us to prevent injuries.

• Safety Programs Must Be Site Specific with Recurring Audits of the Workplace and Prompt Corrective Action. The purpose of the workplace audit is to discover and remedy the actual hazards of the site before they can injure workers. Recurring hazard

LAND

analyses, comprehensive inspections, and

INDUSTRIAL

aggressive investigation of accidents or near misses, discover potential workplace hazards and identify weaknesses in safety plans, programs, policies, and procedures. Safety

RETAIL

regulations and generic safety programs are not sufficient means to discover hazards because they are not specific to the individual workplace. A safety audit program is site spe-

LEASING

cific. Whenever a safety deficiency is found, prompt action is required both to overcome the hazard and to reinforce the message that

OFFICE

safety is a priority.

• Safety is Good Business. Reducing workplace injuries and illnesses reduces the

SALES

YOUR ALL-IN-ONE COMMERCIAL REAL ESTATE SOLUTION 30

costs of workers’ compensation, medical expenses, potential government fines, and the expenses of litigation. Effective workplace safety is not an expense, it’s an asset.

www.commercialin-sites.com (219) 795-1100

Source: The National Association of Safety Professionals

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Joining forces to provide outstanding craftsmanship, leadership & education opportunities

We Stand For • Service • Leadership • Integrity • Safety • Unionism • Professionalism

NWI CO N T R AC TO R S A S S O C I AT I O N

Iron Workers Local #395 / 219-763-7900 / www.ironworkers395.com Construction Advancement Foundation / 219-764-2883 / www.cafnwin.org NWI Contractors Association / 219-764-2883 / www.nwicontractors.org

BOTTOM LINE

Big Changes Affect EMR Calculation New changes have the ability to raise (or lower) the EMR more quickly than in the past, making EMR management more important than ever.

By Jeff Biesen CPCU

T

he National Commission on Compensation Insurance

submitted changes which were adopted by the Indiana Compensation Rating Bureau (ICRB) as well as the other 38 states that subscribe to the NCCI. The changes are the first since the calculation was introduced 20 years ago and will have a material impact on the premium paid for Workers Compensation Insurance.

Item E-1402 allows the adjustment of the primary and excess loss split points. For the past 2 decades the max cap for primary losses has been $5000 and anything above $5,000 was considered excess. In 2013 the primary max cap was increased to $10,000. In 2014 it will increase to $13,500 and yet again to $15,000 in 2015. It is expected that 75% of employers will see a +/- 5% change in the mod. But for some the change could be dramatic.

The increase is said to be necessary as the cost of claims have tripled since the formula was adopted. Chief Actuary Dennis Mealy notes the changes will improve the accuracy 32

of the plan. “Experience rating” he states, “improves equity in pricing amongst individual business and encourages loss prevention.”

The truth is, those with solid Risk Management programs, will see their EMR reduce more quickly and pay less for Work Comp. Those with poor experience and without loss prevention measures in place will see the EMR increase quicker and pay more for Work Comp.

It is important to invest time and resources in Loss Prevention and Procedures. While the calculation change affects

Split Point Transition Program YEAR

SPLIT POINT

Currently

$5,000

2013

$10,000

2014

$13,500

2015

$15,000

Subsequent

Based on inflation

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

most states, here in Indiana we have distinct advantages over those in neighboring states. Employers in Indiana have the ability to control the Work Comp claim process.

Take control of the process; tighten reporting procedures and direct care for injuries. In Indiana the employer has the right to direct care; the employee must go to the designated medical facility. Before losses occur develop a relationship with an Occupational Medical facility. There are some very good clinics in the area. They know how to get the employee back to work quickly and help avoid wasted hours sitting in an Emergency Room.

Indiana allows for a 70% reduction in the reportable amount of a med only claim.

So if you can get an employee back to work without loss time (No TTD or PPD) the total amount of the loss can be reduced by 70%, helping to keep the mod down.

Invest your time in Safety to help avoid injuries in the first place. Most Insurance

Split Point Transition Program Examples by claim size Split Point

Current $5,000

Year 1 $10,000

Year 2 $13,500

$4,000 Claim

Primary

$4,000

$4,000

$4,000

Excess

$0

$0

$0

$12,000 Claim

Primary

$5,000

$10,000

$12,000

Excess

$7,000

$2,000

$0

$50,000 Claim

Primary

$5,000

$10,000

$13,500

Excess

$45,000

$40,000

$36,500

“Employers in Indiana have the ability to control the Work Comp claim process.

Take control of the process; tighten reporting procedures and direct care for injuries.”

- Jeff Biesen CPCU

Carriers and Agents have access to safety resources. Promoting a safe work environment everyday cannot be over emphasized.

Also, keep in mind that errors in the calculation can occur. Have your EMR audited annually well in advance of the anniversary date.

Manage the process before a loss occurs so you have the procedures in place to help keep your EMR in check. Many contractors would not be able to work for a number of owners and GC’s in our area if their mod is higher than 1.0. Employers with proven safety and loss prevention programs that reduce injuries will benefit from the NCCI recent calculation changes.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

33

CONSTRUCTION FEATURE Construction Partners for the CAF’s Construction Safety Institute Building Architects: Carras, Szany, Kuhn & Associates, and P.C. Architects Civil Engineer: Duneland Group, Inc. General Contractor: The Pangere Corporation Excavating: Biesen Excavating

American Made for American Builders The CAF’S New Training Facility is 100% American Made

By Nick Dmitrovich

T

he Construction Advancement Foundation’s (CAF) new Concrete: Walker Construction Construction Safety Institute building in Portage, Indiana, is nearing Mechanical Contractor: T & M Mechanical completion. The 7,000 square foot building incorporates only American made materials

Electrical Contractor: into its design, and will be used to provide Kopton Electric Company safety training to builders from all over the Plumbing Contractor: Mechanical Concepts, Inc. Northwest Indiana construction industry.

Totaling roughly $1.6 million, funded by Fire Sprinkler: CAF members, the new facility will house FE Moran state-of-the-art safety technology that will Roofing: be used to instruct individuals across Korellis Roofing both a classroom setting and a hands-on Painting: workspace environment.

Stans Painting “We realized that safety training Paving: learned by sitting in a chair and hearing Rock Solid Paving a lecture only goes so far,” said Dewey Masonry: Pearman, Executive Director of the CAF. MC Holstrom “We believe that hands-on learning goes a Fencing: lot further, and we want to make sure that Security Industries, a division of TAG our training is the absolute best, first-class Lumber Supplier: training that can be offered.”

Calumet Lumber “One of the driving forces behind Flooring: the pursuit of this facility is the level Midwest Tile of participation of our contractors Landscaping: and members,” Pearman added. “They T&J Landscaping are very committed to their safety performance, and the same is true of the 34

owner companies, and customer bases throughout the industry.”

Jim Arendas, Environmental Safety & Health Director with the CAF, spoke about how simple it was to design a 100% made in the U.S.A. building. “We thought that designing an all-U.S.A. made building was going to be difficult,” he said, “But it was as simple as adding what we wanted as a stipulation in the construction documents.

Our contractors told us that every part we’d need is built right here in the U.S., and it only cost us about 1% to 2% more depending on what the materials were.

Everything in the building is U.S.A. made; from the lights to the floors, the steel, the doors, windows, everything. It was easy.”

The general contractor for the project was The Pangere Corporation. Jim Vermillion, Project Manager with Pangere, said, “It was an privilege to be part of this unique project which was constructed of materials made in the U.S.A., built by local Union Labor and the new facility that will be used to further train union tradesmen about safety in our industry.”

The Safety Institute will provide a diverse array of educational methods to the students who train there. “We’ll have classroom seating here for up to fifty people, and we’re trying to make the

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

lessons much more hands-on rather than conceptual,” Arendas said.

“We have an obligation through our OSHA grants (OSHA Susan Harwood Training Grant) to provide safety training,” Adrenas said. “We’re hoping to improve union safety throughout the entire Northwest Indiana region. We’ve been exceeding our productivity on the grant by 500% each year, with our Site Safety Certification Program (which includes eight 8 hour classes on various safety topics).

This building is the culmination of fifteen years of work leading up it. Improving safety is a moving target, and the need to be as safe as possible keeps growing. It’s limitless what we’ll be able to do here.”

Photo depicting the CAF’s new Safety Training Institute, located in Portage, IND.

“We’re hoping to improve union safety throughout the entire Northwest Indiana region.

We’ve been exceeding our productivity on the grant by 500% each year, with our Site Safety Certification Program (which includes eight 8 hour classes on various safety topics). This building is the culmination of fifteen years of work leading up it.”

- Jim Arendas, Environmental Safety & Health Director with the CAF

The look and feel of the safety institute was designed with an industrial, real-world approach to what the students will be experiencing in the field. “Everything in the Safety Institute has an industrial look,” Arendas said. He went on to describe some of the building’s features, including: Exposed ceilings to reveal the inner workings of the structure. Shop tables for classroom instruction.

A garage door to bring in large equipment.

Various vendors will be bringing in new safety equipment items, any kind the students may encounter in the field. State-of-the-art scaffolding rigs designed to teach proper use and fall prevention. A confined space simulator equipped with cameras and a monitor so the students can watch what’s happening inside.

The walls will be covered with many kinds of different tools and equipment.

The CAF’s Safety Training Institute has space for both classroom instruction, and hands on practice with equipment.

This scaffolding assembly at the CAF’s Safety Training Institute was donated by Solid Platforms, Inc. The equipment is state-of-the-art, and will be used to teach fall prevention.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

35

All of us at The Pangere Corporation extend our sincerest congratulations to the

Construction Advancement Foundation

on its new, leading-edge Construction Safety Institute!

All materials for this facility were Made in the USA and Installed by Local Union Labor.

THE PANGERE CORPORATION

Commercial / Industrial Contractor

Gary, Indiana • (219) 949-1368

www.pangere.com

36

When asked what he was most looking forward to about the new building, the CAF’s Director of Education, Kevin Comeford, said, “I’m going to be able to schedule classes whenever we need them, and we’ll be freeing up space at our current center. With all the training we do, scheduling can sometimes be a challenge. With the new building we’ll have more options. Contractors will also be able to schedule time to use the space for their in-house training and the community can use it too, it’s open to all of our constituents.”

The new building will also feature numerous high-tech systems for safety training. “We’ll be able to offer scaffolding-user-training with the scaffolding that Solid Platforms, Inc. donated to us,” Arendas said. “This will be a permanent fixture in our institute, because it’s a state-of-the-art scaffolding rig. Solid Platforms really gave us the best, and we’re going to be able to show our students how to do everything correctly and safely.”

Tom Dunajeski, sales manager with Solid Platforms, Inc., said, “We staunchly support all of the building trades throughout the area.

We feel that by providing this scaffolding equipment to the CAF, it will enable their instructors to review the required safety procedures that each user should be aware of prior to using any type of scaffolding.”

Additionally, EMCOR Hyre Electric donated a lock-out simulator that will be used to train students in how to control various electrical systems, and The John Sakash Company will be donating a load rigging simulator, and will also be conducting some trade shows demonstrating innovations in rigging technology.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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BEING PRODUCTIVE

Hearing Ways to Cut the Red Tape

State Listens to Public’s Input on Obstructive Laws

By Nick Dmitrovich

E

arlier this year on his first day in office, Governor Mike Pence signed Executive Order 13-03, which called for a moratorium on new legislative regulations throughout the state of Indiana until existing ones could be reviewed by the Office of Management and Budget (OMB). Other than the possibility of new regulations needed for emergency situations, there will be a hold placed on new laws until the OMB can review the more than 11,000 pages of state regulations on the books today.

A spokesperson for the regulatory moratorium said, “Burdensome and unnecessary rules increase costs to business owners and create barriers to employment. These implications are considerably higher for small businesses.

There are more than 115,000 small businesses in Indiana and they account for more than 48% of Indiana’s jobs. Governor Pence believes that every dollar not spent on regulatory paperwork is a dollar that Indiana businesses can spend 38

putting Hoosiers to work.”

As part of this review initiative, the state created a new website called “Cut the Red Tape,” designed to allow the public and business community to make suggestions on laws that should be changed to improve Hoosiers’ lives and businesses.

“Every dollar spent on regulatory paperwork by Indiana businesses is a dollar they can spend putting Hoosiers to work,” Governor Pence said.

“Through the “Cut the Red Tape” website, Hoosiers across the state will lend critical insight and perspective about burdensome and unnecessary regulations that may impede hiring and increase costs for businesses in Indiana.

With their feedback, Indiana has the potential to be the best place in America to start or grow a business.”

Additionally, the Governor directed the newly created Office of State-Based Initiatives to work with state agencies to perform cost-benefit analyses on every federal grant opportunity and publish an annual study of the costs of federal

regulations that will be shared with Indiana’s congressional delegation. Pence’s office stated that in 2012, the federal government collected $51.2 billion from Hoosier taxpayers and businesses. This year, forty-nine state departments and agencies will receive almost 20 percent of that money in the form of federal grants, stipends, and programs that often come with expensive, burdensome mandates and regulations that stifle ingenuity, cost Hoosier taxpayers, and hamstring Hoosier businesses.

“I’ve long held the belief that Hoosiers hold the key to releasing Indiana from federally-created mandates and regulations that undermine state sovereignty and hinder economic growth,” said Governor Pence. “With the assistance of the Office of State-Based Initiatives, Indiana will work to untangle itself from burdensome federal policies, seek to increase state innovation, and ultimately strive to persuade the federal government to return to the principles of federalism.”

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

“The rules prohibiting minors from certain types of work, including specifically maintenance and repair of buildings, working as a helper on a truck, and any work in a warehouse or manufacturing facility, are unnecessarily strict and deter employment of youth. In many cases, youths would be paired with an experienced older worker to ensure their safety and to mentor the youths in the ethics and practices of work.

Painting, manual loading trucks, and sweeping floors are all activities that appear to be prohibited. I personally performed all of these activities as a youth and believe the opportunity helped to form my work ethic and prepared me for the workforce in ways that cannot be accomplished in the classroom.”

“I moved out of the Irvington neighborhood in Indianapolis a couple of months ago, and I’m selling several properties that I owned in Irvington because it has become too burdensome to appeal to the Historic Society for permission to do repairs. For instance, my elderly parents needed better steps out their side door. It was behind the fences and affected no one, but we had to make an application, send out 80 letters to adjoining property owners, wait months for a public hearing, and submit costly sketches and plans and estimates. All for an 8-foot square deck with comfortable stairs. In the end, the hearing officer imposed unilateral changes to it all; after the hearing and without any impute from anyone else. Additionally, our neighbors have been fined for doing nothing more than repairing their properties. Now no one will do anything to fix their properties because the application process is too onerous.

I just think the entire thing has gotten out of hand, and a couple of months ago I went out and bought new houses for myself and my parents outside the historic area. Now I’m going to sell all my rental properties too.”

“Our restaurant has a beer/wine retailer permit and we also have a catering division. Any time an event wants us to serve alcohol, we must go through an burdensome process that requires us to submit a temporary permit, signed by the local mayor’s office, the Chief of Police and the County Sheriff.

That permit is then sent to the Indiana Excise police with a $50 check for approval.

If we had a 3-way permit with a catering supplemental, the rules would be much more simplified. We only need to file a notice with the Indiana Excise Police with certain details of the event. No one seems to have an answer for why a catering supplemental permit is not available for two-way permits. If a permit of that type were available it would make caterers lives much easier and cut a significant amount of red tape in our industry.”

A FOUNDATION of Success

www.bcrcnet.com

A few of the suggestions from the public that Indiana officials have received through the “Cut the Red Tape” website, as provided by Kara Brooks, Press Secretary to Governor Pence:

“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.”

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

- Peter F. Drucker in The New Realities

BCRC is a non-for-profit corporation which offers a wide 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 and maintain a workplace free of the destructive effects caused by the use of drugs and alcohol.

We recognize our responsibility to communicate and educate our participants relative to the harmful effects of drugs and alcohol in our society and workplace.

Contact Us

6050 Southport • Suite B Portage, IN 46368

877-988-5400 info@bcrcnet.com

39

MASS PRODUCTION

Manufacturing Revenue

The Economic Impact of Indiana’s Manufacturing Industry

Industry research firms such as Manufacturer’s News Inc. and the Indiana Department of Workforce Development have stated ndiana is a state that makes things - manufacturing contrib- that Indiana has gained 8,020 manufacturing jobs from April 2012 utes more to the gross state product in Indiana than it does in to April 2013, an increase of 1.4 percent. The DWD also stated most other states. “Manufacturing is absolutely the dominant that the manufacturing industry gained 4,300 new jobs in June, industry over everything else in Indiana,” said Indiana Manufac- which made up more than 80 percent of the new private-sector turers Association President Pat Kiely. He also stated that the jobs added in the state that month. Across the entire U.S., Indiindustry is growing and becoming one of the best sources of rev- ana led the nation in the number of manufacturing jobs in June.

“Indiana is doing better than the nation as a whole,” said enue for Indiana families.

In 2012, the annual cumulative payroll for manufacturing em- Tom Dubin, president and CEO of Manufacturer’s News, an orployees was $27.75 billion, with an average of $533,611,000 paid ganization that has surveyed manufacturers across the country since 1912. “Industrial employment in other out in wages each week. That figure had states grew by about 0.5 percent, but Indigrown from the previous year, when the “Indiana is doing better than ana gained more than 8,000 jobs, a 1.4 perannual payroll was $26.6 billion in wages, the nation as a whole.” cent increase. The transportation industry coming to roughly $502,520,000 each week.

- Tom Dubin, president and CEO of in Indiana is especially strong, with Toyota, From the fourth quarter of 2011 to the Manufacturer’s News.

Subaru and automotive suppliers bouncfourth quarter of 2012, the number of maning back from the economic downturn.” He ufacturing firms in Indiana grew from 8,233 added that one of the most attractive feato 8,672 – a growth of 439 companies. This brought about a large increase in the amount of jobs that were tures for companies seeking to open locations in Indiana is the created from the addition of new businesses; from 468,769 manu- readily available logistics options that the Hoosier state offers. facturing jobs in 2011 to 485,543 in 2012 - an increase of 16,774 Indiana as a transportation hub is situated within a day’s drive of the majority of North America’s population, and manufacturers jobs, or roughly 3.5 percent growth.

These employees made an average of $1,072 per week in take advantage of the many highway, railway and waterway op2011 and rose to a wage of $1,099 per week the following year, tions that Indiana possesses.

Indiana has also recently moved up the ladder as an automowhich comes to a 2.5 percent increase annually from $55,000 to $57,148. “The increases in salary are partly due to the economy tive manufacturing giant. The U.S. Bureau of Economic Analysis getting better,” Kiely said, “They also don’t include the additional recently announced that Indiana has become the second-largest employment benefits that Indiana offers, which tend to be some state in terms of automotive gross domestic product. Previously the Hoosier state was in third place in auto manufacturing, fallof the best in the nation.”

This growth has continued into the first half of 2013 as well. ing behind Ohio, a state with twice the amount of inhabitants as

By Nick Dmitrovich

I

40

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

Indiana. Some recent major investments in Indiana by automotive companies like Toyota, Honda, General Motors, Chrysler and Subaru have made this growth possible – and the future looks bright. Subaru, for example, has announced plans to hire 900 more workers as part of its initiatives with producing the Impreza in Lafayette.

Indiana produced $9.9 billion worth of automotive goods in 2011, with more than 880,000 vehicles. It is estimated that 1 out of every ten cars on the road today were made in Indiana – meaning that cars are definitely Indiana’s largest export by value. A report entitled “Global Positioning” from the Indiana University’s Kelly School of Business stated that, “Vehicles and parts exports maintained its perch as Indiana’s largest export industry in 2011.

In 2011, industrial machinery products reemerged as the second-largest exported product category (in dollar value) from Indiana after being overtaken by pharmaceutical products in 2009.” The report went on to state that pharmaceuticals and industrial machinery are expected to jock-

OU

ey one another for second place for some time, leaving vehicle and parts exports in the number one slot.

The Hoosier state has shown itself to be a significant player in the global marketplace, with products from Indiana being sent to places all over the globe. The old notion about Indiana being strictly an agricultural state is certainly no longer

valid; that classic line from Indiana Beach comes to mind: “There’s more than corn in Indiana!” This is certainly more evident than ever with the rise of automotive manufacturing investment, and other investments from numerous other aspects of the manufacturing industries selecting Indiana over other states as the best place to locate their businesses.

Indiana’s Leading Manufactured Products by value (in millions) • • • • • • • • • •

Vehicles and Parts (Excluding Railway) - $7,732 Industrial Machinery (Including Computers) - $5,075 Pharmaceutical Products - $4,883 Optical and Medical Instruments - $2,305 Electric Machinery - $1,772 Iron, Steel and Articles Thereof - $1,444 Organic Chemicals - $1,430 Plastics and Articles Thereof - $1,112 Aircraft, Spacecraft and Parts Thereof - $961 Miscellaneous Chemical Products - $632

(Source: “Global Positioning: Indiana’s 2011 Export Data and Trends” from the Indiana University’s Kelly School of Business)

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41

LOGISTICS

(IU’s Kelley School of Business)

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43

COVER STORY

Training a New Labor Force

What Are Indiana’s Unions Doing To Educate the Workforce?

By Nick Dmitrovich

A

survey of 335 employers by Ready Indiana, a workforce development initiative of the Indiana Chamber, found that Hoosier employers are still quite concerned about a skills gap that exists throughout Indiana’s labor force. Specifically, the employers surveyed stated that: • 71% of employees are lacking in applied skills (problem solving, communication, work ethic, professionalism) • 36% are falling short on academic skills (math, reading, writing, English, etc.)

• 35% are missing computer-related skills • 51% of employers say most of their employees would benefit from additional training “The gap between worker skills and employer needs is certainly impacting our state’s economic growth,” says Ready Indiana Executive Director Kris Deckard. “Talent is the No. 1 factor in attracting new businesses and growing existing ones.”

To address this problem, many of Indiana’s unions throughout the construction industry have developed training programs to build up the skillsets of their employees. These programs not only serve as continued education for the individuals enrolled, they also help companies remain competitive in today’s markets by staffing them with highly trained individuals who are equipped 44

with the exact traits that companies need. Building Indiana reached out to several different unions and union organizations to gather information about what they’re doing to educate Indiana’s workforce, and here’s what they said:

Top Notch, Indianapolis Top Notch is labor/management association that represents more than 75,000 union tradesmen and 4,000 contractors throughout the state of Indiana. Executive Director Michelle Boyd shared some details from Top Notch’s new report about Indiana’s Union educational programs.

“There are a wide variety of union construction apprenticeship training programs in the state of Indiana, including electricians, carpenters, plumbers, ironworkers and operating engineers,” Boyd said. “All of these programs offer 4-5 year educational curriculums that feature a combination of formal classroom training and job site training. This training focuses on emerging technologies, safety, as well as industry specific training such as healthcare technologies and windmill maintenance. Programs are offered in state-of-the-art facilities throughout out the state.

Boyd also provided some statistics about apprenticeship enrollment throughout Indiana, which included details such as: There are 6,300 apprentices enrolled in construction

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

apprenticeship training in the state of Indiana (includes union and non-union programs).

The Indiana Union Construction Industry is training 83% of all apprentices in the construction industry (5,219 of the 6,300 enrolled).

86% of all non-traditional apprentices in the construction industry (minority, veterans and women) are being trained by the Indiana Union Construction Industry.

continued. “It’s important that we constantly hold new classes, such as sheeting classes for new buildings or certification on instillation of metal roofs, or welding classes, because Local 395 understands that in order to remain competitive we need to constantly upgrade our skills. With our high wages, we need better skills and better safety practices in order to remain competitive over non-union organizations with low wages.”

Construction Advancement Foundation, Portage

United Steelworkers Local #1010, East Chicago

The CAF is an organization that represents Northwest Indiana union contractors that work on commercial, industrial and civil projects. Presently, the CAF is wrapping up construction on a brand new Construction Safety Institute Building in Portage, designed using all made-in-the-U.S.A. materials and all Union labor. The new facility will house state-of-the-art safety technology that will be used to instruct individuals across both a classroom setting and a handson workspace environment.

“We realized that safety training learned by sitting in a chair and hearing a lecture only goes so far,” said Dewey Pearman, Executive Director of the CAF. “We believe that hands-on learning goes a lot further, and we want to make sure that our training is the absolute best, first-class training that can be offered.”

The new institute will feature: • Shop tables for classroom instruction.

• A garage door to bring in large equipment.

• Various vendors will be bringing in new safety equipment items, any kind the students may encounter in the field.

• State-of-the-art scaffolding rigs designed to teach proper use and fall prevention • The institute has a confined space simulator equipped with cameras and a monitor so the students can watch what’s happening inside.

• And much more.

“Several Contracts ago the USW agreed to take on more responsibility and accountability for training its members.

Through the collective bargaining process, joint USW/ management training programs have been established throughout the ArcelorMittal U.S.A. Facilities,” said Tom Hargrove, President of USW Local 1010.

“In-plant training has made a significant impact on worker productivity. Standardizing training procedures and qualification matrices and processes have improved workers’ skills in both craft and production occupations.”

“While improvement in training is a never ending process, production units are seeing the results of continually improving operator and maintenance training,” Hargrove said. “Our members, both production and maintenance, are getting more specific equipment knowledge, better equipment reliability, improved troubleshooting techniques, and simply becoming more knowledgeable operators. This has incrementally

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“It’s limitless what we’ll be able to do here,” said Jim Arendas, Environmental Safety & Health Director with the CAF. “We’ll be doing training with all of the members of our foundation here. We can show them the hands-on specifics of how they need to be working in the field through our demonstrations.”

Iron Workers Local #395, Portage “We’re constantly holding Journeyman updating classes,” 395’s Business Manager Doug Strayer said. “Recently we held superintendent training classes for 22 of our members in which they learn organizational skills like coordinating manpower and managing jobsites. Also, with regard to technology, we’re always learning everything we can. We’ve gone through windmill training to be certified to work on power-generating windmills, much like the ones you see along I-65. These windmills won’t be in our jurisdiction for about a year, but we’re getting prepared to be certified ahead of when they come.”

“We’ve also sent many of our members through OSHA 30, which provides an additional 20 hours of safety training,” Strayer

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improved operations at production units throughout the Indiana Harbor East facilities.”

“In 1989, we negotiated an USW/ArcelorMittal Career Development Program. The USW 1010 learning program/center is called Joblink. It’s a worker driven program guided by the Institute for Career Development. Joblink provides resources and support services for the education, training and personal development for our members. This training includes upgrading basic skills and educational levels by workers attending classes at their convenience. Onsite customized classes and a Tuition Assistance program are available to maximize the opportunity for our members to utilize this negotiated benefit.”

“I believe that worker training is a never ending process and if done well, leads to more safe and productive workers allowing our members to have good paying jobs to raise a family,” Hargrove said.

Sheet Metal Workers Local #20, Indianapolis “The Sheet Metal Workers Local 20 Apprenticeship and Training Program trains apprentices in all aspects of the sheet metal trade. During this five-year program, the Sheet Metal Apprentices receive 200 hours per year of classroom and handson training in conjunction with the on-the-job training they receive with their contractor,” said Joseph Lansdell, President of Poynter Sheet Metal.

“This classroom and hands-on training through the

apprenticeship program is designed to teach the apprentices the overall generalized skills all sheet metal workers require as a basis to become highly skilled Journeymen,” he said. “This curriculum includes high level math, industry safety, metal fabrication skills, reading plans and specifications, computer aided drafting, architectural sheet metal, HVAC, welding and industrial sheet metal. The apprentices all receive an OSHA 30 certification, an Associate’s Degree through Ivy Tech Community College, and several American Welding Society welding certifications while in the apprenticeship.”

“As part of the apprentices’ overall training, they receive very specialized skills and knowledge through on the job training with their contractors. The apprentice works alongside a Journeyman Sheet Metal Worker who trains the apprentice in the skills required to be proficient and productive in the specialized field in which their contractors employ them.”

These training programs across various unions will serve a twofold purpose: boosting the companies that put them in place, and augmenting the overall skillsets of the entire Hoosier labor force. Both of these factors will certainly create a positive economic impact for Indiana, and will contribute immensely toward the narrowing of the skills-gap. If successful, Indiana will have even more appeal to businesses looking to relocate and more options with regard to expanding home-grown companies.

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Treatment Options to South Central Indiana

Construction Partners for the Community Hospital South Regional Cancer Center project:

CONSTRUCTION FEATURE

Centralizing Cancer Treatment Community Health Network’s New Cancer Center Brings New

Architects: BSA Life Structures General Contractor: Pepper Construction Surveying: American Structurepoint Testing Services: Patriot Engineering Excavation/Site Utilities: Poindexter Excavating Site Concrete: Pepper Construction

By Nick Dmitrovich

C

ommunity Health Network is currently in the process of adding new cancer treatment facilities Curtain Wall: to better address the needs of patients Architectural Glass & Metal throughout the central Indiana region. The Drywall: new Community Hospital South Regional Gibson-Lewis of Indianapolis Cancer Center will combine the expertise Roofing: of Community Health and MD Anderson Henry C. Smither Roofing Cancer Centers in a convenient location Electrical: for Hoosier patients and their families.

Miller Eads The facility will offer “comprehensive” oncology services including onsite Spray-on Fireproofing: Circle B Construction laboratory, radiation and pharmacy services, plus mobile scanning units and Mechanical: Leach & Russell Mechanical a “healing garden.” Ground was broken on the $24 million project back in October Electrical: ERMCO of 2012, after Community Health Network Fire Protection: representatives determined a need to Ryan Fire Protection provide more treatment coverage to the Site Plumbing: South Central Indiana area.

Sullivan & Poore “Establishing a comprehensive, Elevators: multi-disciplinary cancer presence at ThyssenKrupp Elevator Community Hospital South, with a broader set of cancer treatment options, provides Asphalt: Rieth-Riley, Inc. a critical opportunity for Community,” said Bryan Mills, president and CEO of Doors/Frames/Hardware: LaForce Community Health Network. “With a larger geographic footprint, we will improve Concrete/Masonry: Hagerman Construction patient access to innovative treatments and combine that with the consistency Painting & Finishing: Bill Lawrence of high-quality care delivered across sites Structural Steel: Lenex

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

of service.”

Architectural design work for the site is being completed by BSA Life Structures, and the general contractor is Pepper Construction, both of which have offices in Indianapolis. Features of the new building include: • Three-stories dedicated to patient treatment, group support and physician offices • Treatment areas for radiation oncology, medical oncology, pharmacy and a laboratory • A welcoming lobby and waiting areas for patients, families and visitors • A dedicated entrance to the first floor cancer center, with a separate entry for physician offices located on floors two and three • A separate entrance for patients arriving by ambulance, as well as access to a PET/CT (Positron Emission Tomography and Computed Tomography) scanning unit • A healing garden where patients, families and visitors can gather, relax and recover • Room for future growth Construction was initially planned to be complete in Fall of 2013, but after a redesign in which the hospital and design teams added some important new features, the construction schedule has been extended to Spring of 2014.

“The original design only included the build out of the first floor,” said Lynda 47

de Widt, Media Relations Director for Community Health Network. “In the redesign, we expanded the scope of services and we increased the size of our outpatient clinic.

We’re consolidating services and adding ultrasound, “This new cancer center mammography, 3D MRI, and X-ray begins our strategic regional spaces. We’re not adding an additional growth in the field of cancer building as was once planned, just care and treatments.” filling this one up.

We also added the - Tony Lennen, President of PET/CT scanner to the first floor, and Community Hospital South increased the size of the pharmacy and the size of the oncology infusion suite. There will be a separate entrance for patients coming in on gurneys - for privacy.”

“The design of the 60,000 square foot building incorporates elements previously shown to positively impact clinical outcomes and create a comfortable healing environment,” BSA LifeStructures stated.

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Bob Shea, Principal of BSA LifeStructures, said, “The Community South Regional Cancer Center’s building systems were designed to be 30% more efficient than the current Energy Code baseline using VRF HVAC systems and LED lighting in addition to other sustainable design approaches.”

Chris Rayner, Project Executive with Pepper Construction, said, “The project has been challenging, which is also rewarding in itself. The Owner had an aggressive schedule for the project and Pepper Construction was able to accommodate this schedule by breaking the project into multiple phases to allow us to bid the project as the architect completed the design. Other aspects, such as a linear accelerator, have challenges that require a great deal of coordination early in the project in order to accommodate the mechanical and electrical systems in the concrete structure.”

He went on to describe aspects of the project in further detail, saying, “One of the most interesting features of the project is the linear accelerator, due to its complexity and the structure required to house it. The concrete walls for the linear accelerator are up to 3’ thick so they have to be right the first time. Also the exterior curtainwall is another interesting feature because it is curved.”

“The project features a “Healing Garden.”

This area is located outside of treatment bays and features a stone fountain, decorative concrete patios, lush landscaping and seating for those who wish to go outside. The serene garden area is enclosed by a brick wall to separate it from the parking area. This area is meant for patients to look upon while they are receiving treatment to make the treatment less noticeable and focus their minds on a more serene surrounding,” Rayner said.

Rayner also stated that Indiana construction materials were used on the project; including Lenex Steel, an Indiana Steel Fabricator, and all of the dirt and concrete work came from the Indianapolis area.

Tony Lennen, President of Community Hospital South, said, “This new cancer center begins our strategic regional growth in the field of cancer care and treatments. Our success will come in our ability to manage the overall health and well-being of our patients throughout the continuum of care.”

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

49

CONSTRUCTION FEATURE

Building a Center for Innovation IUPUI’s New $25M Science and Engineering Lab Will Grow Indiana’s Academic Community

Construction Partners for the IUPUI Science and Engineering Laboratory Project:

General Contractors / Construction Managers Keystone Construction Company JC Ripberger Construction Company Architects Blackburn Architects BSA LifeStructures Engineers BSA LifeStructures TRC Worldwide Engineering

50

By Nick Dmitrovich

I

nnovations in technology and scientific developments are an essential part of Indiana’s thriving industries, and currently a new facility is being established at Indiana University / Purdue University Indianapolis (IUPUI) to provide space where these innovations can come to life. The new Science and Engineering Laboratory Facilities, located at the southwest corner of Blackford and New York Street in Indianapolis, will encompass 80,000 gross square feet of room for the Schools of Science and Engineering to conduct research and educate its students. University officials have stated that the new buildings will “provide critically needed space for faculty to engage in path-breaking education and research that contribute extensively to the economic vitality of the state.”

Indiana University President Michael McRobbie said, “If great public universities like IU and Purdue are to continue to conduct the vital research that transforms our world and enhances our lives, then faculty and students must have the facilities and the space to support learning

and research.”

In previous years when he served as Vice President for Research, McRobbie formed a committee to study the growth potential and research space needs for both the IU Bloomington and the IUPUI campuses. “The School of Engineering and Technology and the School of Science at IUPUI - two schools that have experienced impressive growth - were estimated to be about 100,000 square feet short of laboratory research space, McRobbie said. He added that the new Science and Engineering Laboratory is an essential step in addressing the shortage of laboratory space.

“Science and Engineering Lab 1 is a research and teaching building made possible by research funding awarded to the outstanding faculty of the IUPUI Schools of Science and Engineering & Technology,” said Dr. Simon Rhodes, Dean of the School of Science at IUPUI. “It will house world-class research programs that reflect IUPUI’s mission as Indiana’s life and health sciences campus. Through participation in real research questions, IUPUI students pursuing STEM degrees develop critical skills that position

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

them for remarkably successful careers in the most advanced sectors of Indiana’s economy.”

The new laboratory was designed by BSA LifeStructures, and construction on the $25 million project began in March of 2012, bringing the University an additional milestone beyond a new building; the new lab will be the first non-medical science building to open on the Indianapolis campus in 20 years. The existing Science Building was built in 1992 and will be connected to the new structure. Work on the project is expected to wrap up this fall, and the building should be fully occupied and operational by the start of 2014.

“We’re holding a public dedication event in November. After that, members from the School of Science will begin moving into the building,” said David Hosick, Communications Director for IU’s School of Science. “We should be at full capacity by January 2014.” He added that roughly 80% of the building will be occupied by the School of Science, with the remaining 20% of the space designated for the School of Engineering.

Construction of the new building is divided into multiple phases, the first of which establishes teaching and research laboratories and vivarium spaces (indoor enclosures designed for keeping and raising live animals or plants under natural conditions for observation and research). TRC Worldwide Engineering, one of the construction partners on the project, has stated that “the facility is designed to foster collaboration and provide flexibility to meet the significant planned growth of the research programs.” As such, a two-story commons area has been developed to link the building to the quad and act as a student/faculty hub and gathering space. The logic behind the public gathering space is to encourage interaction and collaboration by providing areas to meet outside of the lab.

“Collaboration among undergraduates and researchers is the focus at the Science and Engineering Laboratory Building at IUPUI,” said Jim Hill, Principal at BSA LifeStructures.

“The building features informal meeting areas that we call collision zones. These areas are designed to encourage students and researchers to communicate and work together. Collaboration among these parties is important to generate excitement around the science and engineering fields and creates a sense of community among students and

researchers.”

Additional components of the first phase of construction include a mixture of faculty offices and research labs organized around a block of biology and biomedical engineering labs on the second level of the building. The departments of Biomedical Engineering, Psychobiology and the Renewable Energy Research programs will all be conducting their research within the new space. The third level will house a new animal resource center area to provide support to the schools’ research programs.

Future phases of the project will provide classrooms, meeting rooms, administrative offices and additional research laboratories.

Additionally, the Science and Engineering Laboratory Building project is pursuing LEED silver certification. As part of the LEED certification, this project is pursuing two points for the Materials and Resources credit for Regional Materials.

In order to obtain this credit, 20% of the materials used on this project came from within 500 miles of the project site.

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LOGISTICS

Indiana’s Heavy Haul New $22.5 Million Commerce Corridor Drives to Boost Southern Indiana

By Nick Dmitrovich

T

of its kind in Indiana.

This new commerce corridor, dubbed the “Heavy Haul”

he ability to move things from point A to point B is one

corridor, will provide a critical link between Indiana’s River

of Indiana’s finest characteristics. The Hoosier state is

Ridge Commerce Center and the Port of Indiana, Jeffersonville,

known as the ‘Crossroads of America’ with its central

maximizing the possibilities for economic growth around the

location within a half-day’s drive of more than 20 major metro-

new bridges.

politan markets. Indiana is the fifth busiest state for commer-

State officials hope the new road will attract steel and au-

cial freight traffic and has more intersecting interstate high-

tomotive manufacturers, who will be able to access the port

ways than anywhere else in the country.

facility and River Ridge’s 6,000-acre site. Governor Mike Pence

One thing Indiana is doing to maintain its title as the

announced that state and local partners will provide a com-

“Crossroads of America” is adding a new commerce corridor

bined $22.5 million in funding to complete the transportation

in Jeffersonville, near the border of Indiana and Louisville,

corridor.

Kentucky, to enhance the development of business that will ac-

The Indiana Department of Transportation will contrib-

company the East End Bridge Crossing’s development – a new

ute $11.25 million in infrastructure funding and a local quartet

bridge under construction by WVB East Partners that will con-

comprised of the city of Jeffersonville, Clark County Commis-

nect I-265 in Kentucky from its current termination at U.S. 42

sioners, River Ridge Development Authority and the Ports of

across the bridge to I-265 in Indiana from its current termina-

Indiana, Jeffersonville, will match dollar-for-dollar the state’s

tion at SR 62. This project will be the first commerce corridor

investment. The Clark County Commissioners late last month

52

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

pledged $2.4 million and the Jeffersonville re- after locations in the country to do business, both from a manufacturing and development board committed $2.2 million, distribution perspective.”

Through this initiative, Indiana will be able to add new logistics options

which will be added to a combined $6.65 mil-

lion from the River Ridge Development Author- between the East End Bridge, the Ports and the River Ridge Commerce Center, ity and the Ports of Indiana for the local-match allowing for better movement of goods and new infrastructure features to atportion. The funding will purchase right-of-way tract business to the state. With the establishment of new companies along for a road and rail transportation corridor and the corridor, the construct a heavy-haul road connecting the hundreds of new Port of Indiana - Jeffersonville and River Ridge created – furtherCommerce Center to each other, as well as to development and the East End Crossing of the Ohio River Bridges that Indiana is a Project.

state.

“Through-

By coordinating the completion of this new

heavy haul corridor and the East End Crossing history,

logistics

in 2016, the state will align schedules and re- will continue to

Throughout Indiana’s history, logistics has been and will continue to be a mainstay which makes our state desirable and competitive for economic development opportunities.”

- Indiana Governor, Mike Pence

potential

for

jobs will also be ing

economic

the perspective pro-business out

Indiana’s

has been and be a mainstay

sources so that construction of both projects which makes our

state desirable

can occur in tandem, reducing fiscal and sched- and

for

ule impacts.

competitive

economic

development opportunities. This partnership is a significant stride forward for

Port of Indiana-Jeffersonville Director Scott southern Indiana’s future infrastructure,” said Governor Mike Pence. “Indiana Stewart said, “We had this remarkable bridge has distinct advantages in location, infrastructure, economy, tax structure and project, but no real efficient connection to le- regulation environment. By leveraging a critical asset in the southeast corner verage that bridge to the two greatest econom- of our state, logistically speaking, this commitment will keep Indiana moving in ic assets in this part of the state, River Ridge the right direction as a state that works for business.” and the port. It’s all about investment, economic development and jobs.” Stewart added that completing the road will help market a megasite proposed at River Ridge designed to bring in a major manufacturer, as well as add to the development of the port.

“It’s not just a heavy-haul road,” Stewart said. “We’re also talking about a rail connection as well that’s vital to the development of River Ridge; it’s vital to the development of the ports.” A direct rail link is critical to allowing access to multiple Class 1 railroads, providing Indiana and prospective companies a competitive advantage.

“It was important for the Indiana Economic Development Corporation to facilitate these developments as this investment strategically maximizes the economic development opportunities of this area now so that when the Ohio River Bridge opens, companies will be able to fully realize the asset and move their products faster and more efficiently,” said Victor Smith, Indiana Secretary of Commerce.

“This project will stimulate new jobs and capital investment in the region and continue to position Indiana as one of the most sought www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

53

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WORKER’S COMP

Hoosier Workplaces Are Becoming Safer

New Data Shows Indiana Workplace Fatalities are on the Decline

By Nick Dmitrovich

I

ndiana set one of the best milestones in its industrial history last year when fewer workplace deaths occurred than any other time in employment-fatality documented record. When the Indiana Department of Labor (IDOL) released its annual preliminary Census of Fatal Occupational Injuries (CFOI) report for 2012, it was noted that 113 worker deaths occurred in 2012, the lowest experienced since the CFOI report was introduced in 1992.

Nearly all major Hoosier industry categories experienced a reduction in workplace fatalities in 2012, including transportation and warehousing, agriculture / forestry and fishing, manufacturing, wholesale trade, state and local government, retail trade, leisure and hospitality, and real estate / rental leasing. The most significant improvement was in manufacturing, which saw a 28 percent decrease in fatalities last year, from 14 fatalities in 2011 to 10 in 2012.

The CFOI uses multiple data sources to identify, document and verify work-related injury deaths. On an annual basis, thousands of documents including death certificates are reviewed by the Indiana Department of Labor’s QMS Division staff to provide this data. The report stated that “Potential reasons for the decrease in worker fatalities in Indiana may include: new safety measures, advanced workplace safety and health awareness and the enforcement of safety regulations and practices. Historically, Hoosiers have found their workplaces safer and healthier than in the past, and in general, the trend is toward fewer workplace deaths.”

Indiana Department of Labor Commissioner Sean M. Keefer said, “While we celebrate this achievement, we are reminded that Hoosier workers deserve a safe and healthy workplace, and the Indiana Department of Labor continues to push to achieve that goal. The record low number of workplace deaths means everyone, employers and employees alike, are doing a better job of protecting the Hoosier workforce. But we still have work to do to achieve a fully safe workplace environment statewide.”

The industries with the most workplace fatalities across both 2011 and 2012 were transportation and warehousing, construction, and agriculture / forestry and fishing. Transportation and warehousing and the construction industries each had 20 fatalities each, accounting for 36% of the workplace deaths across the state of Indiana in 2012. Agriculture / forestry and fishing made up

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

13% of deaths in 2012, with 15 fatalities.

“The overwhelming majority of workplace fatalities were attributed to transportation-related incidents (49.6%),” the IDOL stated. “These types of incidents included motor vehicle incidents, pedestrians struck by vehicles in a work zone and nonroadway incidents involving vehicles.” Types of transportation incidents that caused Hoosier fatalities were: motor vehicle crashes, pedestrians struck by vehicles, and mobile equipment/ machinery overturns. Tragically, this information is consistent with the workplace fatality reports issued over nearly all of the previous years.

Early on in 2013, the IDOL began developing a long-term strategic initiative to target key stakeholders in the transportation community in an effort to reduce the number of vehicular accidents. “Through the Indiana Department of Labor’s worker safety and health initiatives, partnerships, alliances and increased emphasis in staff training, Hoosier worker safety and health has the opportunity to improve even further,” the IDOL stated.

As part of this initiative, the IDOL has published safety materials for employers to put into practice. Surprisingly, the majority of workplace vehicle crashes leading to fatalities are directly related to cell phone use, either talking or texting. One of the IDOL publications states that “Reaction time is delayed for a driver talking on a cell phone as much as it is for a driver who is legally drunk.”

OSHA strongly recommends that employers prohibit texting while driving and to declare their vehicles “text-free zones” to em-

55

phasize that commitment to their workers, customers, and communities. Additionally, OSHA states that employers should set up clear procedures, times, and places for drivers’ safe use of texting and other technologies for communicating with managers, customers, and others.

The IDOL has also begun an aggressive marketing campaign to raise awareness about vehicular and roadwork safety. The IDOL is backing the Indiana Department of Transportation’s “Work Zone Safety Awareness Week” and has issued news releases aimed at educating key stakeholders—Hoosier motorists and trucking and construction industry associations and publications. More than 5,000 direct mail/emails were also sent to industry stakeholders. These stakeholders included trucking owner/operators, large trucking fleets and construction contractors.

Beyond the Indiana fatalities caused by vehicular accidents, the second most frequent cause of workplace fatality was contact with objects and equipment (18.6%) and the third most frequent event leading to worker fatality in 2012 in Indiana was falls, slips and trips (13.3%).

“We will proactively work with stakeholders to address the hazards prevalent in these industries. We have begun the process by partnering with the Indiana Department of Transportation (INDOT) to reach out to these at-risk workers, and we will continue to work within the industry to find new and innovative safety systems,” Keefer said. “Developing a culture of workplace safety and health is critical. The Indiana Department of Labor will continue to provide tools that can help achieve that goal.”

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www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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57

LIFELONG LEARNING

Purdue Research Park of Northwest Indiana: An Environment for Learning and Growth

By Steve Martin, Writer/Publicist, Marketing and Communications, Purdue Research Foundation

W

hen the Purdue Research Park of Northwest Indiana opened in January 2005, it became an engine of economic development that raised the region’s hightech business profile even higher.

The park not only offers physical space and access to amenities like a data station, human resources and marketing, but it also cultivates an atmosphere where executives and employees learn from one another and other industry experts. Of course, it helps that the culture at these companies encourages lifelong learning.

Existing culture Ursula Saqui is president of Saqui Research LLC, which helps clients develop a research-informed brand, engage customers and be more competitive in the marketplace. Recently, the company launched an online learning program for business executives in all sectors who need quantitative and qualitative data about their competition, clients and brand. “We see articles every day emphasizing the importance of continuing education for areas such as leadership, project management and adding to a skill set. At Saqui Research, we emphasize to our clients and partners the need for continuing education in market knowledge,” she said. “Market knowledge that is comprehensive and current is essential for developing competitive strategy, innovating through new products and services, and delivering a great customer experience, all of which leads to increased revenue. A well-rounded continuing education program in these areas results in a well-rounded organization that is poised to be the market leader.”

Rich Metzger is founder and managing director of interLink, which has developed an online care coordination website for healthcare providers and family caregivers, and a healthcare management site for state administrators and case management professionals. He said the company values ongoing education opportunities to strengthen its employees and services.

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“Our employees come to us with the imagination and drive to solve human service issues through technology. In order to ensure that continues, and that the corporate culture continues to be one that nourishes as much as it demands, our employees attend conferences, seminars and other educational events,” he said. “Networking with our peers, both online and in person; staying updated via the latest e-zine or blog; communicating directly with customers to ensure we understand needs and opportunities; and having time to explore, experiment with, and share ideas are some methods our staff employs to stay educated.”

An environment of engagement Metzger said the technology center’s environment, where business leaders can conduct engaging conversations with others even in the same hallway, is one reason the company opened an office there. “When evaluating options for new office space, PTC provided an environment that is not only easily accessible to our employees around the state, but also incorporates other creative, resourceful and energetic organizations with similar corporate drive - all in a relaxed but refined atmosphere,” he said.

“Before the paint was barely dry in our new space, several of our employees began to take advantage of the opportunity to connect with other like-minded companies. We are excited to have access to the IT knowledge within the building. It’s a great chance for interLink employees to broaden their knowledge and contacts, which, in turn, benefits our customers in the long run. Access to new knowledge also keeps everyone fresh and full of new ideas - a key to success when you are always looking to improve yesterday’s best effort.” This environment of engagement also is enhanced by regularly scheduled programming.

Cluster meetings The Purdue Research Park network provides space for monthly meetings of industry “clusters” – groups of business professionals who operate in a common sector. Meetings focus on a central topic of interest to attendees, and often include a speaker from outside the park network. Most meetings are held in the Purdue Research Park of West Lafayette, but they are www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

broadcast simultaneously to all park sites, including Northwest Indiana. All employees of park tenants and affiliates are welcome to join the clusters.

The Purdue Research Park Software Development Cluster meets the second Tuesday of each month. Recent topics include PHP, C# and .NET, and Android. The Life Science Forum meets the final Tuesday of each month. Recent topics include commercializing research products and how to build a company. The Indiana Defense Council meets the last Wednesday of each month.

Saqui said she personally benefits by participating in the Purdue Technology Center clusters.

“Being around other like-minded business people has resulted in shared knowledge, collegial support and even new projects,” she said. “Through the software development cluster monthly meetings, I am able to learn about new topics and trends in a variety of industries from market leaders in about an hour.”

Tech Talk events Owners of technology-based businesses in Northwest Indiana and Chicagoland meet and discuss industry news during networking events called Tech Talks. Every six weeks, Tech Talk events bring together business owners to make connections, showcase their business and identify key issues affecting their sectors, including service and resource gaps. “The Tech Talks are a great place to network with other local businesses and understand what is going on in the local landscape,” Saqui said.

Technology showcases An annual event highlights the latest Purdue University innovations in the domains of biotechnology, clean energy, computer technology, manufacturing, medical and pharmaceuticals that have high commercialization potential.

The Northwest Indiana Technology Road Show, organized by the Purdue Office of Technology Commercialization, includes presentations from Purdue faculty, staff and student innovators.

The latest showcase will be September 18 and features technologies that are ready to be commercialized. The showcases are free and open to the public.

Technology showcases The Purdue Technology Center of Northwest Indiana introduced a subscription program that provides more than 1,000 square feet of common area workspace so business people could strengthen their ability to complete operational tasks on a flexible schedule, 24 hours a day, 7 days a week. As with tenants and affiliates, co-working space subscribers can attend any of the programming events and engage in casual conversations with other executives. The Purdue Research Park of Northwest Indiana provides companies and organizations not only space, utilities and access to amenities, but also provides a solid foundation through its environment and programming to strengthen companies whose culture already encourages lifelong learning and growth.

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GREEN & SUSTAINABLE

Laying a Renewed Foundation

Granite Recycling Saves Money, Reduces Waste

By Nick Dmitrovich

E

very year, millions of tons of granite are thrown away and sent to landfills where they remain in the earth indefinitely. It is estimated during the course of the average granite countertop instillation between 20% and 30% of materials are discarded as waste. This unused product is a drain on the granite fabrication industry as well as the waste disposal agencies that have to haul it to the landfill - but there is a solution to the problem.

Recently a new industry has begun to form around the concept of recycling unused granite into cost-effective building solutions that not only provide a way to save a great deal of money on projects, but also work toward a solution of lessening the amount of material buried forever in landfills.

Julie Rizzo, of Northwest Indiana, is the Founder and Executive Director of the Granite Recycling Network, an international organization that has saved an estimated 20,000,000 pounds of granite from being needlessly thrown away. Rizzo literally created the granite recycling industry, beginning as a countertop consultant who noticed an abundance of granite just sitting out in the dumpster. She decided to dig into that still-usable stone for mosaic projects, and a few years down the road she created a completely new industry. After years of research, she established methods, machinery and markets to recycle scrap granite.

“I took an idea and turned it into an industry,” Executive Director Rizzo said. “We are literally throwing away millions of pounds of high-end granite across the country. I teach people how to take that post-consumer waste product and turn it into 60

sellable products right here in the U.S. We could do the exact same thing with our plastics too.”

The recycled granite comes from several different sources, from cuts made while building countertops to stone harvested from demolitions. Recycling experts harvest the material and bring it back to life through a machining process that shapes the stones to fit the customer’s requirements.

The result nets solid stones, not crushed or reconstituted pieces. Using intact stones allows for greater strength: in the cast of granite paving stones, the strength of each stone is generally 15,000 to 25,000 pounds per square inch. Compared to the average strength of concrete, which is typically between 3,000 and 5,000 pounds per square inch, granite can be up to 3 to 5 times stronger. In fact, it’s is so strong that granite structures from antiquity are still intact today.

But beyond the strength of recycled granite, one of the best features for those interested in choosing recycled materials over brand new material is the cost – recycled granite is considerably cheaper than new granite.

“Recycled split stone tile and landscaping pavers are priced in line with traditional tiles and paver products,” Rizzo said.

“Prices are kept low in order to sell more material, which in-turn recycles more waste and creates green jobs. Recycled products are very high-end at affordable prices for everyone.”

The size and scale of projects that can be completed using recycled granite are limited only by the builder’s imagination.

Anything that can be made out of conventional granite can also be made using recycled materials. The Granite Recycling Network has customers ranging from private citizens looking to www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

make home renovations to commercial contractors working on million dollar projects.

“Projects using recycled granite range from small bathrooms to very large feature walls in hotels across the country. We have about 150 million pounds a year to deal with, so we can do anything from high-rises to home improvement. There’s enough material for every budget and scale,” Executive Director Rizzo said.

Sherrie Benkovich, Manager at Opportunity Enterprises, a company that specializes in creating an integrated community for people with developmental disabilities, recently worked with five individuals with disabilities to install a 200 square-foot recycled granite wall installation at Opportunity Enterprise’s new Lakeside facility in Valparaiso. “It was an easy process to install it,” she said. “It was in our design to use recycled granite from the beginning. We created the back panel wall of our reception area and “We are literally throwing it turned out beautifully. away millions of pounds Everybody loves it, it’s the of high-end granite across thing you notice right away the country. when you enter.”

I teach people how to take After completing a recycled granite project that post-consumer waste on his home, J. Miller of product and turn it into Indiana wrote, “Everyone sellable products right that comes into our home here in the U.S. We could literally takes a step back, do the exact same thing gasps and then proceeds with our plastics too.” to tell us how beautiful it looks! Then they ask - Julie RIzzo, Founder/Executive where we came up with the Director of the Granite idea, who did we find to inRecycling Network stall it, was it really expensive, I bet that was expensive! To be honest, it does look expensive and “high end.” Our newly renovated kitchen turned out beautiful, but after installing the Split Stone Granite as our backsplash, our kitchen is breathtakingly beautiful now. It just gave our kitchen that added ‘wow’ and of course the finishing touch.”

Since the material used by recycling granite is manufactured from 100% post-consumer waste, buildings that utilize the granite can qualify for credit points under the Leadership in Energy and Environmental Design, or LEED, system. LEED Certification rates a building based on various factors pertaining to sustainability, energy efficiency, and green building. LEED Accreditation is sought by green building professionals for a multitude of reasons including adding validated green projects to their portfolios and receiving different tax credits and incentives.

Considering that recycled granite is cost effective for builders as they purchase materials, and building owners under LEED, as well as providing jobs for recycling businesses, and being environmentally friendly, it really is a win-win for all parties involved.

“The whole process is really amazing,” Rizzo said. “It’s amazing to see beautiful creations come from things that were just going to be thrown away.” www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

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WELCOME CENTER

Swing For the Fences

Westfield’s Grand Park Sports Complex is Expected to Generate All-Star Revenue

By Nick Dmitrovich he city of Westfield, Indiana, has developed an innovative idea to generate new tourism revenue: by building a massive new sports center, dubbed the Grand Park Sports Complex. The $45 million dollar, 360 acre, site just a few miles north of Indianapolis will be the largest youth sports complex in the United States and is expected to generate traffic of up to 1.5 million visitors annually. The increased traffic has the potential to bring $1.04 billion to the city of Westfield every five years in the form of retail and hospitality revenue, and mixed use recreation dollars.

The location will feature 26 diamonds for baseball and softball that will incorporate state-of-the-art irrigation and drainage systems; 31 multipurpose fields for soccer, lacrosse, football, rugby and field hockey; and two huge indoor facilities to accommodate off-season play and training. Eight of the multipurpose fields will be lighted, and seven of them will be synthetic. Current plans for seating at the two stadium fields will seat 750 spectators each, but plans call for that number to be expanded in the future to eventually accommodate 2,500.

One of the indoor facilities is a 360,000 square-foot soccer building that will contain three soccer fields under one roof, 115

T

x 75 yards each, and the other is a 96,000 square-foot baseball structure containing two full-size infields. The Grand Park Sports Complex will have more baseball and softball diamonds than any other site of its kind in the country.

The property that Grand Park sits on contains several wooded areas, nine miles of hiking trails (parts of which link to the Monon Trail), and scenic areas along Cool Creek, bordered

by SR 32 on the south, 196th Street on the north, U.S. 31 to the east, and Springmill Road to the west. The park will also include nine manmade ponds to help contain the drainage from all of the sports fields, and nine parking areas with enough room for 4,700 vehicles strategically placed throughout the complex so visitors can minimize their walking distance.

Sports and recreation tourism can potentially be a key industry for the city of Westfield, and Hamilton County. Westfield’s mayor, Andy Cook, aimed to complete two goals with the formation of the Grand Park Complex: design new facilities to meet the needs of Hamilton County’s 4000 sporting youths and the thousands who visit the Indianapolis area each year for tournaments, and capture part of the $7 billion-dollar-a-year national sporting tourism revenue stream. Beyond the 360-acre park, the increase in visitors will spur the additional development of 1,400 acres

Courtesy of the City of Westfield

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Land Use Plan Regional Retail & Hospitality Sports & Recreation Mixed-Use Sports Village Mixed-Use 1

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of commercial businesses – thereby increasing the assessed value of the area to $2 billion and lowering taxes for Westfield residents.

“It’s a great complex,” said Jason Wille, Sports Information Director with the Indiana High School Athletic Association.

“Members of our staff have already toured the site, and it is definitely a place we will consider when planning out tournaments that we will be hosting.”

Westfield is working toward the goal of creating an overall community atmosphere in the areas surrounding the sporting complex. Dining, retail and entertainment venues are going up around the park, all “geared toward supporting and enhancing the family sports atmosphere and experience,” representatives from Hamilton’s Convention and Visitor’s Bureau have stated. Additionally the Hamilton CVB has said, “The city’s pro-economic development climate is committed to fostering new and growing businesses as well as a wealth of recreation, arts, local sports and local activities for visitors.”

SR 32 Grand Junction Midland Trace Trail

0 North

375'

750'

1500'

Scale: 1"=750'

Courtesy of the City of Westfield

Grand Park is expected to be operational in the spring of 2014, but recent construction updates from Westfield have stated that some games may be taking place there as early as the latter months of 2013, weather permitting. Construction began in January of 2012.

www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

63

ECONOMIC DEVELOPMENT

Making A Huge Impact

2013 “Indiana Companies To Watch” Create Economic Development Throughout The State

By Nick Dmitrovich

ing between six to 150 full-time employees and having between $750,000 to $100 million in annual revenue or capital. In total, artnering organizations including the Indiana Economic 33 companies were selected from the 300 nominations that were Development Corporation (IECD), Indiana Small Business received. The winning companies come from 14 different Indiana Development Center (ISBDC), and the Edward Lowe Foun- counties and numerous different industries ranging from biotech dation, collaborated recently to present the “2013 Indiana Com- research and robotic part design to gourmet flavor manufacturpanies To Watch,” a list which celebrates high-performing com- ing and automotive safety, the IEDC stated. panies throughout the state.

“The entrepreneurial spir“This is not an award of the “top” or “best” “Known for their performance it soars in this year’s class of companies — the companies selected each year in the marketplace, innovative ‘Companies to Watch,’” said products, unique processes or Eric Doden, President of the make a point about Indiana’s diverse economic philanthropic actions, these Indiana Economic Developlandscape. They make an astounding impact on companies represent a wide ment Corporation. “With the the state’s economy by collectively providing range of industries from all spark of a great idea, the ingethousands of jobs and contributing millions of corners of Indiana,” represennuity to develop solutions and dollars of revenue.” tatives from Indiana Compathe determination to achieve - Representative from Indiana Companies to Watch nies To Watch said. greatness, these companies “This is not an award of demonstrate what it takes to the “top” or “best” companies stand out in the marketplace.

— the companies selected each year make a point about Indi- Because we offer a low-tax climate with a skilled workforce, comana’s diverse economic landscape. They make an astounding im- panies of all sizes know that they can exercise a competitive adpact on the state’s economy by collectively providing thousands vantage in Indiana, a state that works for business.” of jobs and contributing millions of dollars of revenue.”

The economic impact of the 33 winners is widespread and Requirements for nominated businesses included employ- felt throughout the state. “The chosen companies project to have

P

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www.buildingindiana.com | SEPTEMBER/OCTOBER 2013

combined revenues in excess of $422 million and create more than 345 new jobs this year. The revenue projections represent an increase of more than $218 million or 36 percent from 2012,” the IEDC stated.

“From 2009 through 2012, these companies generated $817 million in revenue and added 933 employees (both in Indiana and out of state), reflecting a 151 percent increase in revenue and 161 percent increase in jobs for the four-year period.

That translates into a 36 percent annual revenue growth and 39 percent annual growth in employees,” Indiana Companies To Watch reported.

“These companies project continued growth in 2013, with a 36 percent revenue increase and 23 percent growth in employees (both in Indiana and out of state) compared to 2012. If their projections hold, these companies will have generated $1.2 billion in revenue and added 1,281 employees over the last five years - a 240 percent increase in revenue and 221 percent increase in jobs since 2009.”

Mark Olson, President of Kinetech, one of the 2013 winners, said, “I’m so proud of this accomplishment. Our company is all about making a positive impact in the lives of everyone who comes into contact with our products. So this award is really recognition for everyone involved – manufacturers, employees, new car dealerships, and the end consumer. It’s very rewarding to be part of something that creates jobs, adds value to our lives, and ultimately saves lives.”

“We are honored to have received this recognition,” said Ari Vidali, Founder & CEO of Envisage, another of the 2013 winners. “It is a testament to our amazing team and their relentless passion for making the world a better and safer place. It is also recognition of our customers – the firefighters, police officers and men and women of our armed forces who believe in and contribute their ideas and expertise towards building technologies that

Economic Impact in 2012 of the 2013 Indiana Companies to Watch Awardees (33 Companies) •

$311 million in total annual revenue

•

41.3 percent increase in total annual revenue compared to 2011

•

1,513 full-time equivalent employees / 1,402 in Indiana and 112 out of state

•

349 net new jobs projected for 2013 --- 318 in Indiana and 31 out of state

Source: Indiana Companies to Watch

increase readiness and help save lives.”

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Contact: Harrison County Economic Development Corp 812.738.0120 dvoelker@hcedcindiana.org 65

The Last Word More than just a paycheck

By Linda Duran, Marketing Coordinator, CertifiedSafety

W

ith the economy struggling During a recent turnaround, Cherry monitoring are all components of and so many unemployed, was the confined space attendant for a classroom and agility training that is it would sound reasonable job on the cooling tower, where multiple precise and detailed. if workers simply concentrated on jobs were being performed, including Keeping people safe so they can earning a living rather than placing a burning and welding job. One work return home to their families each night emphasis on finding meaning in their group exited the confined space and is certainly a rewarding a fulfilling career jobs. But according a study by The Kelly shortly returned with a liquid that was choice. Employees from every level in Global Workforce Index, about half (51 going to be taken back into the confined the various safety career fields know percent) of the global workforce would space. Cherry would not allow them to the importance of their position. For sacrifice higher status and pay for more enter the space. example, safety attendant work is an meaningful work.

The Operations Department was entry-level position but also constitutes People want their jobs to provide called to the job site and Cherry’s a meaningful contribution to overall a degree of purpose and emotional concerns were warranted. The product project safety. Often, most of the meaning fulfillment.

Safety Attendant, and fulfillment from work comes Ms. Cherry Smith, is one “Remaining professional, possessing not just from being passionate a positive attitude and knowledge of CertifiedSafety’s field employee’s about it, but from specifically that finds meaning in her career. the task at hand, is my support key to a choosing and being intimately Having her husband’s life taken due successful completion of any project.” connected with a deeper purpose. to safety negligence in a refinery, When you’re working toward - Cherry Smith, CertifiedSafety’s Field Employee Cherry became passionate about a cause you deeply believe in, workplace safety and dedicated your tolerance for doing work herself to making a difference in that isn’t super exciting increases safety. was acetone, which is highly flammable dramatically and you can feel purposeful “I know what it feels like to be on and could have caused a possible fire or doing the work because you can actually the other end of one of those phone flash fire. relate to the purpose behind it. calls that we pray to never receive. I “Remaining professional, possessing Companies should look to hiring look at each contractor on a personal a positive attitude and knowledge of employees that have similar values, an level; someone’s sibling, spouse, parent the task at hand, is my support key to alignment of purpose, an attitude that is that I don’t want to receive that same a successful completion of any project,” contagious and that are passionate about heart breaking phone call I received. I says Cherry. “Professionalism, integrity, the work that they do each day, because go far and beyond what is required of values, attitude, permit evaluation, doing so will propel both the employee me to assure that it never happens on job hazard analysis, atmospheric and the company into a brighter my watch or anyone else’s watch,” said monitoring, confined space monitoring, future.

Cherry. fire watch monitoring and bottle watch

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 | SEPTEMBER/OCTOBER 2013

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