Building Indiana: September/October 2014

September/October 2014 $6.95

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Inside This Issue Setting the Standard | pg. 28 “Canstuction!” | pg. 34 Turbocharging the Economy | pg. 48

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Publisher’s Desk Expanding Indiana’s Logistics Network At Building Indiana, we’re always excited about our annual construction issue.

We pride ourselves on our ability to bring you the best business and economic development news from around the state, and construction is a key indicator for tracking these developments.

Thus far, our state has had a very solid summer in terms of growth, with construction serving as the catalyst for a considerable amount of job creation and new revenue streams being added to Hoosier communities. The Department of Workforce Development (DWD) has announced that “Indiana’s June private sector job growth of 10,000 is the largest June increase on record,” which signifies to us that campaigns to attract new businesses to the state have been very successful.

Indiana’s labor force has grown by more than 53,000 over the past year (+53,018), which means that right now Indiana leads the nation in terms of the number of new jobs added over the past 12 months. Of all the amazing things that our state could earn the top ranking for, this fact is truly one of the most inspiring. Companies in Indiana are expanding their operations and spreading their wings, ushering in what could potentially be an economic boom for our state.

Undoubtedly, Indiana’s manufacturing industry is perpetuating this charge, as more and more manufacturing companies make the decision to move here, or expand here. Aerospace manufacturing, particularly in the realm of engine components, has been quite an interesting topic to follow as new operations come to life across the state. Additionally, engine manufacturing of all kinds is also seeing positive changes taking place throughout the industry in Indiana. We’ve featured some of these exciting projects in this year’s construction issue to shine a spotlight on the outstanding companies who are bringing high-wage jobs to Hoosier communities.

Additionally we’ve made the decision to highlight some inspiring new construction and engineering related projects taking place among Hoosier youth organizations, which are exposing kids to technology that may very well be fostering their careers one day. We had so much fun covering NWI’s “Canstruction” project, in which youngsters got a taste of what it’s like to work as a structural engineer.

Our hope is that you’ll share in our enthusiasm us as our state continues to grow. This is an exciting chapter of Hoosier history unfolding right before our eyes. As always, our goal is to Kind Regards, bring you the news that affects your business; and right now, in Indiana, business is good.

Andrea M. Pearman Publisher

219.226.0300 • 317.632.1410 www.buildingindiana.com www.buildingindianablog.com

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

Indianapolis Office Business Development Manager Lee Ann Richardson 888.226.0330

Warsaw Office Business Development Manager Julie Monteith 888.226.0330

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Copyright ©2014 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at apearman@buildingindiana.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Innovations.

Startups.

Purdue Research Park is helping entrepreneurs commercialize technologies licensed from any Indiana or Illinois institution of higher education by offering: Leases on existing lab or office space in the Purdue Technology Center of Northwest Indiana for up to two years at a 50 percent reduction of the current building rate. » Secure office space » Conference room availability » Business center with mail services

» Receptionist services » Networking opportunities » Startup guidance, mentoring

219.644.3683 9800 Connecticut Drive Crown Point, Ind. dclamere@prf.org www.purdueresearchpark.com/merrillville

Contents SEPTEMBER

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OCTOBER

2014

E V ER Y I S S U E

04 Publisher’s Desk 08 Contributors 09 Business Buzz 24 People News E X PER T A D V I CE

D EP A R T ME N T S

46 BEING PRODUCTIVE

48

34

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State of the Industry NWI Union Construction Safety Data

30 32

mass production Making the Grade!

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Funding Indiana’s Logistics Future

Worker’s comp Changes Impacting

Workers Comp

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Lifelong learning Developing Indiana’s Entrepreneurial Ecosystem

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Real Estate Ready for Development

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facts & stats Construction

44

Well Being How Wellness Programs Can Impact Your Bottom Line

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small business spotlight Where are they now?

52

cover story

Generosity, Fun & Learning

Cummins is Expanding

The bottom line Prevent Falls in the Construction Industry

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54 logistics

38

PHOTO FEATURE

50 CONSTRUCTION FeatURE

Safety Zone What are the Odds?

27 34

CONSTRUCTION FeatURE Turbocharging the Economy

RULE OF LAW Notice Requirements

F E A T U RE S

Steps Toward a Solution

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50

Marketing

‘Tis the Season for Holiday Gift Giving

Economic Development Never Underestimate The Little Guys

66 the last word

Construction Rising from the Recession

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

THE AMERICAN GROUP OF CONSTRUCTORS

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

Hoosier Small Businesses Make a Large Impact on Indiana’s Economy

“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

Contributors Duane Schroeder Duane Schroeder is the Vice President of the Indiana Compensation Rating Bureau (ICRB). He graduated from Ball State University with a B.S. degree in Actuarial Science. He worked for the American States Insurance Group (subsequently Safeco Insurance), for 20 years prior to joining the ICRB. With the ICRB, Duane was instrumental in creating the Indiana Workers Compensation Reinsurance Pool, a mechanism for equitably apportioning the cost of Indiana’s Assigned Risk Plan, and assuring its financial integrity.

Laurie Wehner-Evans Laurie Wehner-Evans, RN, MS, is the director of Community and Corporate Wellness for Porter Health Care System. In her current position, Wehner-Evans directs Porter’s Health At Work program offering occupational and corporate wellness programs to companies throughout northwest Indiana. Wehner-Evans is a certified Wellness Coach. She has been with Porter for more than 35 years and has an extensive background in emergency services and management.

Randy Vale Randy Vale is President and Partner at Braman Insurance Services. Randy graduated Indiana University in 1987 with a Bachelor’s Degree in Public Finance. At Braman Insurance Services, Randy is responsible for a variety of high-level agency management functions. He contributes to new sales at Braman and oversees the management of in-force clients. He is a key note speaker for various educational seminars through the Construction Advancement Foundation.

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 Drewry Patrick A. Drewry is an attorney at Drewry Simmons Vornehm, LLP, where he practices Construction Law, Public Contract Law, and Surety Law. Mr. Drewry earned his B.A. from Purdue University, his J.D. from the Indiana University School of Law – Indianapolis, and was admitted to the Indiana bar in 2001.

Mike Stavitzke With over 30 years of construction experience, Mike is a director with the IKORCC and has vast experience as a Millwright, General Foreman, and Superintendent. He has been on staff with the Brotherhood since 1998 and considers the most rewarding part of his career to be organizing workers to collectively bargain with their employers.

David Holt David W. Holt is Vice Pesident of Operations and Business Development for Conexus Indiana. In his role with Conexus, Holt drives the logistics agenda and developed, recruited and led the formation of the Conexus Indiana Logistics Council Executive Committee, a forum of prominent logistics executives, throughout the state of Indiana. Holt formerly served as the Indiana Chamber of Commerce’s Vice-President of Health Policy and Federal Relations.

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.

M. J. Electric services the Calumet Region Industrial Corridor STEEL | OIL & GAS | POWER | MANUFACTURING | INSTRUMENTATION | SERVICE & COMMERCIAL

M. J. Electric, LLC

1190 Erie Court Crown Point, Indiana 46307 info@mjelectric.com www.mjelectric.com Jim Voss | Director of Operations | 312.350.6865 | jvoss@mjelectric.com Jeff Spies | Operations Manager | 219.746.8656 | jspies@mjelectric.com Tom Frame | Operations Manager | 312.350.6231 | tframe@mjelectric.com

INDUSTRIAL & POWER

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UTILITY PROCESS CONSTRUCTION CONTROLS & INSTRUMENTATION

DISTRIBUTION

SUBSTATION

WIND POWER

DRILLING

ENERGIZED SERVICES

STORM RESPONSE

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

MAIN BUZZ

Well-Deserved Recognition NWI’s Leading Female Professionals to be Honored at Awards Banquet

By Nick Dmitrovich

T

he 4th annual Influential Women of Northwest Indiana Awards will be a night of celebration and welldeserved recognition for the region’s most successful female professionals. The event is hosted by Northwest Indiana Business Events and will take place Thursday, November 6, from 5 to 8 PM at the Avalon Manor in Merrillville, Indiana.

The evening will include a networking reception with cocktails and hors d’oeuvres, dessert and the awards presentation, and proceeds will be donated to local charities who were nominated to receive funding.

This year, more than 500 business leaders are expected to convene for the annual banquet to recognize the incredible accomplishments of this year’s award winners.

“The opportunity to come together as a Northwest Indiana Region to celebrate women from across seven counties and across a diversity of business categories is really much more than just an awards ceremony,” said Diane Thalmann, Economic Development Manager with NIPSCO and a former Influential Women winner. “While it’s truly an honor to be recognized as an influential female business leader in Northwest Indiana, the Influential Women’s event is a unique and valuable venue to meet and interact with influential women, and men, who are outside of your usual business circle.”

“I’m always amazed at how many wonderful, intelligent, delightful, active, involved women there are in Northwest Indiana.

Whether you come to the Influential Woman’s Awards as an award recipient, a nominee or just an attendee, you will definitely leave the event as a winner,” Thalmann said.

Winners are selected by a review committee of representatives from the 11 different industries that were highlighted, including: Healthcare, Finance, Government, Construction/Interior Design, Service/Tourism, Education, Manufacturing, Law, Economic Development, Media/Marketing, and Nonprofit. The chosen nominees are evaluated on several criteria such as their accomplishments, their leadership skills, experience, integrity, and their impact on each respective industry.

In each of the 11 categories, two awards will be given. The “Influential Woman of the Year Award” recognizes women that are impacting their field presently and have ten or more years of experience, while the “Up and Coming Woman of the Year Award” honors those who are on the forefront of business leadership practices in Northwest Indiana with less than ten years of experience.

Beyond the 11 categories, there are also three remaining special awards – the “Community Leader Award” is given to the region’s top community leader, the “Supporter of the Year Award” is given to the individual who has submitted numerous nominations in support of this event, and the “Empowering Business of the Year Award” recognizes a business that supports the success of women. Additionally, awards will be given for the categories of Overall Influential Woman & Overall Up and Coming Influential Woman winners.

Since its inception, the Influential Women of Northwest Indiana Awards has been dedicated to giving back and supporting the community through charitable donations to local non-profits. This event has donated over $40,000 to charities and non-profits,

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

such as: Lake Area United Way, United Way of Porter County, Housing Opportunities, The Boys and Girls Club of Northwest Indiana, and Spring Valley Shelter.

Four nonprofit organizations will receive donations from proceeds generated at this year’s banquet, they are: St. Monica Home, The Salvation Army, Dunes Learning Center and Edgewater Systems for Balanced Living.

The funds will be used to complete projects that positively impact women and girls in Northwest Indiana.

“Our ability to donate to these nonprofits results from a collaborative effort with our sponsors,” stated Pearman.

Tickets to the event are $90 per person, or $800 for a table of ten. Sponsorship packages vary in size and offer the chance to sponsor specific award categories, receive prominent logo recognition and inclusion on event signage, and more. Tickets and sponsorships are available through the website at www.nwiwomen.com or by contacting Diversified Marketing at 219-226-0300.

Industry Categories for the Influential Women of Northwest Indiana Awards • Healthcare • Finance • Government • Construction/Interior Design • Service/Tourism • Education • Manufacturing • Law • Economic Development • Media/Marketing • Nonprofit 9

BUSINESS BUZZ

Northwest 2015 Beyond Safety and Reliability Conference is Calling for Presenters INDUSTRIES SERVED

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Refinery and Petroleum Chemical Steel Power Food Alternative Fuel Plant Maintenance

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AMEX NOOTER is an aggressive unionized prime mechanical contractor providing service and quality since its founding in 1979, utilizing the following skilled craftsmen in Northeast Illinois and Northwest Indiana:

• Pipefitters • Millwrights • Ironworkers • Boilermakers

• Operating Engineers • Teamsters • Laborers • Carpenters

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.

If you are searching for a prime mechanical contractor to combine safety, cost control, quality, production and professionalism with modern construction methods, we believe you will be satisfied with AMEX NOOTER, LLC. We offer the value that only experience can provide.

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AMEX NOOTER, LLC A Subsidiary of Nooter Construction w w w. a m e x n o o t e r. c o m

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The Beyond Safety Reliability Conference & Expo is searching for exceptional presenters to explore best practices and cutting-edge issues that influence the safety and reliability of construction and maintenance projects. Share your knowledge with hundreds of industry professionals.

In partnership with the Northwest Indiana Business Roundtable (NWIBRT) and the American Society of Safety Engineers (ASSE), the annual Beyond Safety and Reliability Conference & Expo brings together safety and reliability professionals from around the Midwest for education seminars, trade show, networking, and more. This special event offers a tripartite of the trades that unites the owners, the contractors, and the unions to learn about, discuss, and network the latest in safety and reliability procedures and technology. With over 600 in attendance, more than 50 exhibitors, and over 25 educational sessions there is something to be gained by everyone. Individuals interested in presenting should visit www.beyondsafetyexpo.com for additional info on how to register.

Illini Hi-Reach Moves to Indiana Illini Hi-Reach, Inc., a rental provider of aerial work platforms and material handling equipment, announced plans to relocate its corporate headquarters and service hub from Lemont, Illinois to Crown Point, Indiana, creating up to 13 new jobs by 2017.

The company will invest $13.6 million to construct and equip a 30,000 square-foot facility at 520 E. 110th St. in Crown Point. The facility, which will start construction next week and begin operations by November, will allow the company to better serve construction, industrial and commercial segments in northwest Indiana, as well as expand into new markets across Indiana and Michigan. The Indiana Economic Development Corporation offered Illini Hi-Reach, Inc. up to $115,000 in conditional tax credits based on the company’s job creation plans.

Amex Nooter Earns Safety Award Amex Nooter, LLC of Tinley Park, IL and Hammond, IN, has earned a ZERO Injury Safety Award (ZISA®) for 2013.The National Maintenance Agreements Policy Committee (NMAPC) ZISA® program was created to recognize world-class safety, as it is an integral part of the NMAPC system of tripartite governance. BP Products North America, Inc. and the United Association Local Union No. 597 will also be receiving an award for their role in attaining zero injuries on this project. The project name was BP Coker Project # CH 515-A at the Whiting Refinery and there were 475,581 hours of work performed with no injuries.

In the last few years Amex Nooter has added to their strong industrial piping expertise with other crafts like, boilermaker, iron workers, millwrights, operating engineers and more. These crafts have added greatly to the list of services and helped expand its business. www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Purdue Research Foundation Reports Record-Breaking Numbers

Purdue Research Reports Solid Year for Funding

Purdue University is reporting its second-best year for external research funding and its largest annual dollar increase.

Research awards for fiscal year 2014, which ended June 30, totaled $389 million, an increase of nearly $70 million – close to 22 percent - over 2013. The total funding for 2014 climbs to $390 million when including the one-time stimulus awards from the 2009 American Recovery and Reinvestment Act. Purdue’s top year, without factoring in ARRA funds, was $396 million in 2010-11.

The total awards from industry and foundations for this fiscal year remain strong at $98 million.

In the previous fiscal year, 3,767 awards were received compared with 4,104 this year. Among the awards received were: • $1.5 million grant from the National Science Foundation, to develop a method to mass-produce a new type of nanomaterial for advanced sensors and batteries, with an eye toward manufacturing in the Midwest.

In addition to the substantial investment in infrastructure, Tate & Lyle, which currently employs more than 500 Indiana associates, plans to add around 10 positions to the local workforce. The company’s global network of more than 30 production and research facilities includes two manufacturing facilities in Lafayette, along with grain elevators in Francesville and Fowler, Indiana. For its fiscal year ending in March 2014, Tate & Lyle’s sales totaled $5.32 billion.

UGN Expanding in Valpo

Construction Begins on New NWI Medical Resort

UGN, Inc., a supplier of high-quality acoustic, interior trim and thermal management products to the automotive industry, announced plans today to expand its operations in Valparaiso, creating up to 14 new jobs by 2015.

The Tinley Park, Illinois-headquartered company, a joint venture between Japanbased Nihon Tokushu Toryo Co. Ltd. and Switzerland-based Autoneum, will invest $4.8 million to expand and equip its manufacturing facility in Valparaiso, adding 30,000 square feet to its current 180,000 square-foot operations. With renovations expected to begin next month, the addition of new business will allow UGN to manufacture automotive parts for the next generation Honda Civic and Subaru Impreza. UGN, which has more than 325 full-time employees in Indiana, plans to begin hiring for manufacturing and technical positions next summer.

British Company Makes Large Investment in Lafayette Governor Mike Pence joined executives from Tate & Lyle (LSE: TATE), a global supplier of ingredients and solutions to the food and beverage industry, in London today to announce the company’s plans to invest more than $90 million in its Lafayette, Indiana operations over the next three years.

The substantial investment includes plans for a three-phased expansion of Tate & Lyle’s Lafayette Sagamore facility to increase its modified food starch production capacity, as well as a number of improvements to increase efficiencies at its Lafayette South facility. The planned expansion and upgrades are expected to be complete in 2017.

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

Construction on northwest Indiana’s latest Medical Resort development is now underway. Mainstreet and Symphony Post Acute Network broke ground on their newest partnership together, the Claremont of Dyer. The property, located at 1532 Calumet Ave. in Dyer, boasts 130 beds, 82,108 square feet and will provide short-term rehabilitation and therapy in a comfortable, hotel-like setting. Carmel, Indiana-based Mainstreet is developing the Claremont of Dyer and Illinois-based Symphony Post Acute Network will operate it. The project is expected to bring approximately 300 construction jobs and up to 115 part-time and full-time facility jobs. Construction should be complete by summer 2015.

MacAllister Machinery Breaks Ground in Rensselaer MacAllister Machinery’s Agriculture Division held a ground breaking ceremony in Rensselaer to celebrate the start of construction on their new agriculture machinery sales & service facility. The company is investing $1.4 million to construct a 12,000 square foot building on 12 acres adjacent to the Jasper County Airport on the State Route 114 corridor east of I-65.

The project will provide MacAllister’s customers with local support of their AGCO, Claas, and Caterpillar equipment.

Rensselaer based Titan Construction & Engineering is building the facility. It is expected to open in January, will initially employ 6 people, and will replace a much smaller location the company has been operating in Rensselaer since 2011.

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BUSINESS BUZZ

Purdue University had record-breaking numbers in commercialization activities highlighted by 24 startups based on Purdue intellectual property, tripling the previous year’s number, Purdue Research Foundation officials announced. This and other existing Purdue startups drew more than $20 million in publicly announced funding last year.

The growth trend for the 2014 fiscal year is reflected in other substantive increases in commercialization activities through Purdue’s Office of Technology Commercialization including 146 U.S. and global issued patents, representing a more than 30 percent increase over the previous year; and 120 licensing deals of Purdue intellectual property with startups and established companies, for an increase of more than 20 percent over the prior year. About two-thirds of the technologies resulting in this year’s startups were born of Purdue’s Discovery Park programs, which this year surpassed more than $1 billion in funding invested in research and facilities.

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

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

BUSINESS BUZZ

Superior Truss & Panel Moves to Gary Superior Truss & Panel, Inc., a manufacturer and installer of commercial building roof trusses and wall panels, announced plans to relocate its Markham, Ill. operations to Gary, creating up to 52 new jobs by 2016.

The company will invest $2.6 million to construct, equip and relocate its operations into two 24,000 square-foot buildings on 8.5 acres at 7592 East Melton Road in Gary. The facility, which will begin Indiana operations this fall, will allow the company to innovate new methods for panelizing light gauge steel trusses and wall panels for non-combustible classified structures.

The Indiana Economic Development Corporation offered Superior Truss & Panel, Inc. up to $425,000 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. The city of Gary approved additional incentives at the request of the Gary Economic Development Corporation.

RDA Helps Advance Hundreds of New Jobs The Board of Directors of the Northwest Indiana Regional Development Authority (RDA) continued to focus on jobs and connectivity to Chicago by agreeing to consider funding a transit center in Valparaiso and approving three contracts with private firms that will create more than 400 jobs in Munster, Merrillville and Portage.

The proposed transit center would be built on property currently owned by Von Tobel Lumber & Hardware adjacent to the CSX railroad tracks. Though it would initially focus on buses, this location would also be ideal for commuter trains that may eventually come to the city.

The first phase of development would include the transit center, parking lots, street improvements and stormwater management work. The plan envisions creation of retail and residential space between the CSX and Norfolk Southern rail tracks, as well as connections to Route 30 and to the unincorpo12

rated areas south of Route 30. Based on development patterns seen in Valparaiso as the city has invested in downtown improvements over the last several years, the project could create up to 1,000 local jobs. The Board accepted the plan for funding consideration and instructed RDA staff to work with the City of Valparaiso to refine the scope of the project and generate a final funding proposal.

The Board also approved funding for three job-creation projects with MonoSol, AM Manufacturing and Modern Forge.

All three projects had been previously approved by the Board; yesterday’s vote represents approval of final contracts for each deal. Under the contracts, the RDA will provide a combined $3.975 million to the three companies. In return for these and other state and local incentives, the companies are together investing more than $105 million and creating approximately 430 jobs in Northwest Indiana.

Purdue Begins Campus Unification

The Purdue Board of Trustees on Friday approved Purdue University Northwest as the name of the unified Calumet and North Central campuses. Combining the campuses reflects Purdue’s continuing emphasis on administrative cost savings and promoting student affordability and accessibility, they said.

The name’s adoption will be phased in over the next two years as work continues to unify administrative oversight functions into one central office and provide opportunities for students to seamlessly pursue degree programs at either campus location. For now, Purdue University Northwest will be used in activities connected with the continued unification plan.

Purdue Calumet and Purdue North Central will begin to market academic programs as one regional campus after gaining accreditation to do so by the Higher Learning Commission. The target date for completion of unification is July 1, 2016. Announced Feb. 26, the unification will include a formal plan that will be presented to trustees at a later meeting.

Once unification is complete, the

two campus locations will be respectively identified as the Purdue University Northwest-Calumet campus and the Purdue University Northwest-North Central campus. Current students will not see their curriculum, coursework or graduation requirements change. Incoming students will still apply and enroll at the campus location of their choice.

Grant Funds Come to Lake County Park

Congressman Pete Visclosky announced that the Indiana Department of Natural Resources has been awarded a $200,000 grant through the Land and Water Conservation Fund (LWCF) State and Local Assistance Program. This grant will be allocated to the Schererville Park Board for the development of Teibel Nature Park. The grant will provide funding for the Schererville Park Board to help secure 40 acres of additional land, which will be used to develop a picnic area, playground, trail, and additional parking.

Franciscan HealthcareMunster Develops Outpatient Pulmonary Rehabilitation Program

Franciscan Healthcare-Munster has developed an inpatient and outpatient pulmonary rehabilitation program.

This program provides chronic obstructive pulmonary patients (COPD) patients with pulmonary rehabilitation that focuses on exercise, self-care and nutrition education.

The respiratory therapy department is focusing their efforts on the hospital’s inpatient population and recently released patients. Over time, the program will expand to include other hospitals, clinics and the surrounding community.

The pulmonary rehabilitation department is staffed by registered respiratory therapists, registered nurses and exercise physiologists. Patients have access to a variety of exercise equipment including treadmills, stationary bicycles, recumbent steppers, arm ergometers and free weights.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

• Workers’ compensation coordination • Occupational health services • Preventive health and wellness services • General health service coordination • Personalized health coaching with certified nurse health coaches

HEALTHIER EMPLOYEES CAN MEAN A HEALTHIER BOTTOM LINE. Health At Work Clinic

809 LaPorte Avenue, Valparaiso

Portage Clinic Opening Soon Portage Hospital 3630 Willowcreek Road, Portage

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

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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BUSINESS BUZZ

The Porter Regional Hospital Health At Work program provides a full suite of job-related medical services. Our goal is to help prevent and reduce workplace illnesses and injuries and to avoid lost-time accidents, and lower your healthcarerelated expenditures. At Porter Regional Hospital, we know a healthy workforce contributes to a healthy bottom line.

To learn why more employers are choosing Porter Regional Hospital’s Health At Work program, or to schedule a consult, call 219-263-7200.

BUSINESS BUZZ

LCEA Halfway Through Investment Campaign

Indiana Expected to Have Strong Ag. Output in 2014

The Lake County Economic Alliance has announced that it has reached the half-way mark in its investment campaign.

The LCEA is an economic development group that was formed through a partnership between the Lakeshore and Crossroads Regional chambers of commerce.

The LCEA set a three-year goal of raising $450,000 in public/private funding to support its economic development initiatives, including such things as new business attraction, expansion, retention, and marketing of the region. Thus far, the LCEA has raised about $200,000 and expects to reach its goal by the end of 2014.

Bob Schaefer, former Economic Development Director for NIPSCO, is leading the LCEA’s investment campaign along with the LCEA’s Campaign Chairman Don Babcock, current Economic Development Director with NIPSCO, and LCEA Board Chairman Joel Gorelick, former People’s Bank President.

The federal government expects Indiana and the nation to grow bumper crops of corn and soybeans for the second consecutive year, adding to already adequate supplies but further holding down prices farmers will get for their productivity. Both total production and average yields per acre nationally for corn and soybeans could set records, the U.S. Department of Agriculture’s National Agricultural Statistics Service reported.

Indiana farmers are on track to harvest 1.04 billion bushels of corn - a record for the second year in a row - surpassing 1.03 billion last year. Nationwide, farmers are projected to produce 14 billion bushels, eclipsing the previous record of 13.9 billion, also of last year. Indiana’s soybean crop could reach 279.9 million bushels - third-largest for the state compared with 264.7 million last year. Farmers nationwide could produce a record 3.82 billion bushels, up from last year’s 3.29 billon.

While the total production signals a bounty of corn and soybean supplies that will provide enough product for livestock

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and ethanol producers and eventually help to moderate increases in food prices, futures prices for both crops have dropped to their lowest levels since 2010 - corn below $4 per bushel and soybeans under $11. Prices that farmers will receive could fall so low that they would trigger payments to farmers under provisions in the new farm bill.

Northeast Community Leaders Rally Behind Rail Fort Wayne Mayor Tom Henry and the mayors of eight other cities announced today that they will sign a memorandum of agreement (MOA) within the week calling for cooperation in development of a ChicagoFort Wayne-Columbus passenger rail corridor. The Indiana cities include Fort Wayne, Warsaw, Plymouth, Valparaiso and Gary.

The Ohio cities represented are Columbus, Marysville, Kenton and Lima.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

The MOA calls for the parties to systematically and incrementally develop the higher speed rail (“HSR”) intercity system in cooperation with existing freight rail operators and owners of right‐of--way along a corridor from Chicago to Columbus through northern Indiana hereafter known as the Northern Indiana/Ohio High Speed Rail Initiative.

Specifically, the MOA resolves that the parties will work together to secure funding for the federally required Environmental Impact Study (EIS), the next step in developing the passenger rail line. Once complete, the EIS would be submitted to the Federal Railroad Administration.

This study could begin in late 2014 and would take 18 months to complete.

A rail corridor feasibility study concluded that approximately 2.1 million riders would use the Chicago-Fort Wayne-Columbus route in 2020, with that number growing to more than three million in 2040. The study also estimated that for every $1 of investment, $1.70 would be generated in economic return through job growth and increased property values. The 300-mile-long passenger rail corridor would operate up to 12 trains daily, each direction, along the route.

Express services would link downtown Chicago to Columbus in less than four hours.

Jayco Expanding Production Jayco’s Motorhome Group announced plans to expand its manufacturing facilities at its headquarters in Middlebury, adding up to 50 jobs by the end of 2015. The new building will serve as the Entegra Coach manufacturing facility and will allow the current motorized building to house Jayco motorhomes. Jayco plans to have construction completed by second quarter, 2015.

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I&M Announces Major Solar Plan Indiana Michigan Power plans to build and operate five solar generation facilities, adding another emission-free source of power to the company’s generation portfolio, which already includes nuclear, wind and hydro. If approved by the Indiana Utility Regulatory Commission, the Clean Energy Solar Pilot Project will have a combined generation capacity of about 16 megawatts, producing energy equivalent to powering more than 2,500 homes for a year.

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Nello Gets Approval for Move Nello Corporation, Inc., a global designer and fabricator of galvanized steel towers and poles, announced plans to relocate its Fort Worth, Texas operations to Indiana, creating up to 639 new jobs by 2023.

The South Bend-headquartered company plans to invest millions of dollars to move its Texas operations to a 200,000 square-foot facility in South Bend, with the facility expected to be constructed by the early part of next year. The relocation will also include the construction of an additional 250,000 square-foot facility in South Bend at the same location of the initial expansion, expected to be constructed in the next five years. Nello anticipates additional expansion of its corporate headquarters in downtown South Bend and expects the completion of the relocation to take place over the next year and a half. Nello, which currently has two manufacturing facilities located in Bremen, Ind., plans to begin hiring manufacturing, information technology, engineering and administrative positions next year.

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service territory in the two states. Facilities are tentatively expected to be located in the Muncie-Marion area, South Bend area and in Michigan, but locations of all five facilities have yet to be finalized.

Construction is tentatively scheduled to begin in early 2016, with completion expected in in late 2016. The estimated cost of the project is $38 million. If approved by the IURC, the project would result in a minimal impact on customer rates of less than 1 percent.

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Nello designs and manufactures galvanized steel towers and poles. One of the largest tower providers in the wireless communications industry, the company produces more than 1,000 structures annually, growing at a rate of 25 percent per year. Nello serves customers such as Verizon Wireless, T-Mobile and AT&T. The Indiana Economic Development Corporation offered Nello Corporation, Inc. up to $2,900,000 in conditional tax credits and up to $75,000 in training grants based on the company’s job creation plans.

Two NE Indiana Companies Land Major Military Contracts GTA Containers Inc, of South Bend, Indiana, was awarded a $7,539,057 firm-fixed-price contract with options for 6,333 tarps and bows for the five-ton long wheel base vehicle. Work will be performed in South Bend, Indiana, with an estimated completion date of June 17, 2017. Bids were solicited via the Internet with 10 received. Fiscal 2011 other procurement funds in the amount of $3,967,737, and fiscal 2012 other procurement funds in the amount of $3,571, 320 are being obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity.

Secondly, ERAPSCO, of Columbia City, Indiana, is being awarded a $165,997,792 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of 141,263 AN/SSQ Series sonobuoys, and 5,000 MK-84 Signal Underwater Sound devices.

Work will be performed in DeLeon Springs, Florida (51.7 percent), and Columbia City, Indiana (48.3 percent), and is expected to be completed in October 2019. Fiscal 2014 other procurement (Navy) funds in the amount of $165,997,792 will be obligated at time of award, none of which will expire at the end of the current fiscal year.

This contract was competitively procured via an electronic request for proposals and one offer was received. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Cold Storage Company Investing in Woodburn, Ind. North American Cold Storage is breaking ground for its new location, 23202 Roemer Drive, Woodburn, IN. The 96,000 square foot facility will be the tallest cold storage facility in the area, allowing for more efficiencies in managing large numbers of stock keeping units (SKU) with a more accurate and timely deployment. The company will invest $28.1 million into the new facility over the next several years and add a total of 75 new jobs. The company is expected to have the first of two phases completed

by October 2014.

North American Cold Storage’s new facility will be equipped with a state‐of‐the‐art warehouse management system, radio‐frequency barcode scanning, electron data interchange, energy management, including variable frequency drives, and high bay LED lighting.

The total incentive package is valued at $2,991,356 from the Indiana Economic Development Corporation, Northeast Indiana Works, and the City of Woodburn. The phase‐in was granted back in March 2014. www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

$20M Health Center Progresses in Fort Wayne

Quality Hardwood Sales, LLC, a manufacturer of dimensioned wood products, announced plans to expand its operations in Nappanee, IN, creating up to 25 new jobs by 2016. The homegrownHoosier company will expand and equip its facility at 493 Shawnee Dr. in Nappanee. Moving all production in house, the company plans to add 50,000 square feet to its current facility for domestic and foreign inventory, which will allow it to utilize a total of 128,000 square feet of operational space by April.

Quality Hardwoods Sales, which currently employs approximately 85 full-time Indiana associates, plans to begin hiring machine operators, off bearing associates and forklift drivers in April. The Indiana Economic Development Corporation offered Quality Hardwood Sales, LLC up to $200,000 in conditional tax credits based on the company’s job creation plans.

According to Conexus Indiana, manufacturing from companies like Quality Hardwood Sales contributes $64 billion to the Hoosier economy annually.

Parkview leaders and employees celebrated the topping off of the Mirro Center for Research and Education. The state-of-theart facility is possible following millions in donations from donors throughout northeast Indiana and northwest Ohio. The new facility, located on the Parkview Regional Medical Center campus, will be among just a few research and education centers within the United States that are affiliated with a not-forprofit community hospital. Other facilities performing similar work include Mayo and

Cleveland clinics.

The Mirro Center for Research and Education will be nearly 82,000 sq. ft. with more than 90 rooms. The Mirro Center’s work will focus on translational research, device and pharmaceutical clinical trials, and education for medical professionals and their patients.

The Mirro Center will offer cutting-edge medical simulation, classrooms and more.

To date, numerous community members and foundations from around the region have donated more than $4M towards the facility.

These donations represent the largest cumulative philanthropic campaign since the opening of Parkview Hospital Randallia in 1953.

Shared Services Center Fort Wayne Adding 320 Jobs Shared Services Center Fort Wayne plans to expand its business operations in northeastern Indiana, creating up to 320 new jobs by 2017. Currently, there are more than 175 employees at Shared Services Center Fort Wayne who provide services including the processing of medical insurance claims, billing, appeals, insurance collection and customer service for Lutheran Health Network’s hospitals and others in the region. To accommodate future growth, it will relocate its offices to 1700 Magnavox Way where it will occupy more than 62,000 square feet of leased space.

The Indiana Economic Development Corporation offered Revenue Cycle Service Center, LLC up to $3,250,000 in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans.

Also, Northeast Indiana Works is supporting the project with $78,380 toward in-kind employment services and on-the-job training.

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Quality Hardwood Sales Expanding in Nappanee

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Central 300 Jobs Coming to Fishers Jarden Home Brands, a subsidiary of Jarden Corporation (NYSE: JAH), is bringing more than $16 million in investment and nearly 300 jobs to Fishers by 2019. Jarden Home Brands will acquire and occupy the former Sony building at 9999 E. 121st. St. Jarden Home Brands will use the more than 635,000 sq. ft. as a regional headquarters and distribution and packing center.

The company has experienced significant business growth in the last few years, and this facility will accommodate its continued growth in the future. The facility will handle products from a variety of brands and consumer goods categories. The investment includes the purchase of the property and $6.5 million in building improvements for a total investment of more than $16 million.

Jobs located at the site will be the result of new growth and the consolidation of multiple facilities, including an out-of-state operation. Multiple locations, including several outside of Indiana, were seriously considered during the site selection process.

Lowe’s Making Large Indiana Investment Governor Mike Pence joined executives from Lowe’s (NYSE: LOW) to announce the company’s plans to locate a Customer Support Center here, creating up to 1,000 new jobs by 2016.

The Mooresville, North Carolina-based company and world’s second largest home improvement retailer plans to invest $20.5 million to purchase, renovate and equip a 140,000 square-foot office facility at Intech Park 12, 6620 Network Way on the northwest side of Indianapolis. The new Customer Support Center will support stores and internet sales, delivery services and repair services for Lowe’s customers across the United States. The facility is expected to be operational in the first quarter of 2015 and will complement the company’s existing Customer Support Centers located in Wilkesboro, North Carolina and Albuquerque, New Mexico.

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Lowe’s, which currently employs nearly 7,900 people in Indiana, plans to begin hiring for positions at the new Customer Support Center immediately. EmployIndy will offer assistance during the hiring process. Available positions, beginning with the site director position, will be posted this week with additional positions to follow. Applications are accepted online at Lowes.com/careers.

The Indiana Economic Development Corporation offered Lowe’s Home Centers, LLC up to $5,500,000 in conditional tax credits and up to $100,000 in training grants 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. The city of Indianapolis will consider tax abatement and additional funding for the direct infrastructure associated with the facility at the request of Develop Indy, a business unit of the Indy Chamber.

Tempur Sealy International Bringing 300 Jobs to Plainfield Tempur Sealy International, Inc. (NYSE: TPX), a manufacturer, marketer and distributor of mattresses, foundations, pillows and other products worldwide, announced plans to locate a new manufacturing and distribution facility in Plainfield, creating up to 300 new jobs by 2015.

The Lexington, Kentucky-based company will open a 600,000 square-foot leased facility at 9597 East County Road 200 South in Plainfield. The multi-purpose facility, which is expected to be fully operational early in 2015, will handle manufacturing and distribution for the Tempur Sealy brands, in addition to being a distribution center for Tempur-Pedic.

This will be Tempur Sealy’s first combination assembly and distribution center.

Tempur Sealy International, Inc., which acquired Sealy Corporation in 2013, is the world’s largest bedding provider. The company’s brand portfolio includes Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster. The Indiana Economic Development Corporation offered Sealy Mattress Manufacturing Company, Inc. up to $2,800,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans.

Restaurant Owners Take on Big Project The owners of Kokomo’s Pastariffic Restaurant and Casa Bella Banquet Hall are topping even themselves. Construction is underway on a larger events center, the Bel Air, in the same block of South Webster Street as Pastariffic and Casa Bella. The Bel Air is scheduled to open in September. The new Bel Air center will be able to host as many as 500 people for events such as weddings, banquets and business and political events. Owners obtained financing to assist in building and equipping Bel Air from the U.S. Small Business Administration 504 loan program through Community First Bank and the Indiana Statewide Certified Development Corporation.

Butler Approves Major Projects The Butler University Board of Trustees has approved the development of two new facilities—a state-of-the-art student-housing facility with approximately 600 modern, suite-style beds and a 1,038-space multi-use parking facility.

Construction of the five-story parking structure, which is anticipated to open in August 2015, will begin this fall. Construction of the student-housing facility is expected to begin in spring 2015 with completion in fall 2016. The University has selected the existing Irwin Library parking lot along Sunset Avenue as the optimal site for the new student-housing facility, following detailed planning efforts in partnership with American Campus Communities (ACC) and input from a broad set of stakeholders.

Delicious Jobs Coming to Lebanon Maplehurst Bakeries, LLC, a manufacturer and seller of frozen bakery products for in-store and food service bakeries, announced plans today to expand its Indiana presence in Lebanon, creating up to 219 new jobs by 2017.

The Brownsburg, Indiana-headquartered company, which is a division of Canada-based Weston Foods, will invest $77.8 million to renovate and equip a new 180,000

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Grant to Boost Solar Energy Projects The Indiana Association for Community Economic Development (IACED) has received $400,000 to create a grant program - Solar Uniting Neighbors (SUN) - to boost new solar energy projects in communities in the service territory of Indiana Michigan Power, a unit of American Electric Power (I&M).

Through this project, IACED will offer technical and financial assistance to its members and other partners to install small solar energy projects (less than 0.5 megawatts). The grants likely will range from $20,000 to $30,000 for 10 to 17 separate installations. IACED will hold community meetings to educate local leaders about the project.

The funds provided come from American Electric Power, I&M’s parent company, under a legal settlement with the U.S. Environmental Protection Agency, eight states, and 13 citizens’ groups. The settlement included an agreement by AEP to invest $2.5 million to improve air quality in Indiana through various projects.

The AEP settlement monies are being overseen by an oversight committee that includes the Citizens Action Coalition, Hoosier Environmental Council, Indiana Wildlife Federation, the Sierra Club and Environmental Law & Policy Center.

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Staffing Company Bringing 40 Jobs to Columbus Elwood Staffing Services, Inc., a provider of talent-based employment solutions, announced plans to expand its headquarters in Columbus, creating up to 40 new jobs by 2017.

The homegrown-Hoosier company will purchase and renovate a building at 4105 Vickers Drive in Columbus, located across from its current headquarters facility. The new facility, which is expected to be operational in September, will house members of the company’s corporate staff and provide additional meeting and training space. Elwood Staffing, which employs 200 Hoosiers and approximately 1,000 internal employees across the country, will begin to hire accounting, legal, information technology, human resources and occupational safety positions beginning this fall.

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square-foot facility in Lebanon. The new facility, which is expected to be operational in March 2015, will house the company’s warehouse, distribution and manufacturing operations for its cake and cupcake products. Maplehurst Bakeries, which currently has more than 1,000 employees across the country, including more than 300 full-time employees in Indiana, plans to begin hiring in the beginning of December.

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State Touts 2014 Job Creation

At the midway point in the year, the Indiana Economic Development Corporation (IEDC) announced it has worked with 173 companies that have made decisions to expand or establish new business operations in Indiana for a total of more than 17,040 projected new jobs. This compares to 150 decisions by companies to locate a projected 11,715 new jobs in the state at this time last year and more than any other year on record at the midpoint.

The new positions, which companies anticipate hiring over the next five years, pay an expected average hourly wage of $21.27, above the state’s current average hourly wage of $20.03. The 173 www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

IUPUI Approves New Residence Hall The Indiana University Board of Trustees has approved a request to proceed with the design and construction of a new 700-bed residence hall at Indiana University-Purdue University Indianapolis. A site in close proximity to University Tower -IUPUI’s newest residence hall, with a stateof-the-art dining hall, at 900 W. Michigan St. -- is being explored as a possible location for the new residence hall.

Currently, more than 1,900 students reside on campus. Even with the addition of University Tower, which officially welcomed students on Aug. 17, 2013, and offered residential space to an additional 560 students, IUPUI’s current housing is at capacity. More than 800 students are waitlisted, compared to more than 200 before University Tower opened.

The total cost of the project is estimated to be $45.2 million and will be funded through revenue bonds repaid by IUPUI Housing Operating Funds ($41.7 million) and Campus Funds designated for this project ($3.5 million).

New Brewery Breaking Ground in Speedway

Daredevil Brewing Company has received final zoning approval to break

ground in Speedway. Plans include a 10,000 sq. ft. production brewery with a tap room and outside seating on the 2.0-acre site.

Production capacity will be about 12,000 bbls per year, which means a lot more flexibility for draft and canned beers. There is room to more than double the phase one plans in the future. The company hopes to be moving in toward the end of the year or early 2015 and will first focus on getting the production brewery up and running.

South Toyota Expanding in Princeton Toyota Indiana announced plans today to expand its operations in Princeton, creating up to 300 new jobs by 2016. The company will invest $100 million to boost production of the Highlander midsize sport utility vehicle at its Princeton plant. Since production of the third-generation Highlander began in the Indiana plant in December 2013, sales have been strong. From January through July 2014, Toyota sold about 90,000 Highlanders, an increase of 16 percent over the same period the previous year.

Currently, Toyota Indiana builds the Highlander only in the West Plant alongside the Sequoia full-size sport utility vehicle. To meet increasing demand for the Highlander, annual production of up to 30,000 of the midsize SUVs will be added to Toyota Indiana’s East Plant where the Sienna minivan is built. This step allows Toyota to utilize existing capacity in North America while providing additional flexibility to adjust its product mix to meet changing customer demand.

This expansion will bring Toyota Indiana’s overall investment to $4 billion.

Valeo Adding 250+ Jobs in Greensburg Valeo, a leading global automotive supplier, has announced plans to expand operations at its Greensburg location with a $27.8 million investment in new machinery that is expected to create approximately

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

257 new jobs by the end of 2015.

At the July 2014 Greensburg City Council regular meeting, A Valeo representative provided figures regarding the company’s $27.8 million investment and 257 new jobs. The Greensburg City Council then granted four new machinery tax abatements to Valeo, all for six years that decrease incrementally each year until 100% of taxes are paid in the 7th year.

Also during the meeting, the company expressed gratitude for the Greensburg city leaders’ support, as well as support received from the state and local economic development corporations during this expansion process. Valeo is presently working with the state’s IEDC on provision of state incentives for this project.

Manufacturer Opens $25M Operation Job creation powered by I-69 and area economic development collaboration is well underway in southern Indiana, as evidenced by the formal opening of the $25 million Alliance Barrier Films facility.

Federal, state and local officials were on hand to celebrate the formal opening of the new facility, and to hear details about a planned construction of a 40,000-60,000 sq. ft. shell building and new rail spur.

Several officials noted the value of I-69 to foster widespread economic growth and congratulated Alliance Barrier Films for selecting Daviess County for expansion of its state-of-the-art service offerings.

The construction of a new shell building near the Alliance Barrier facility is being planned and details are being actively considered by city and county officials to begin construction.

Convention Bringing Dollars to Evansville For the 11th consecutive year, the Jehovah’s Witness has selected Evansville as a site for their summer convention. The conference will be held at the Ford Center in downtown Evansville. The Evansville Convention & Visitors Bureau is spreading the word to local businesses and residents encouraging everyone to extend our special version of southern Hoosier Hospitality to 21

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companies anticipate investing $3.23 billion in their Indiana operations in the coming years. Meanwhile, the average amount of state conditional tax incentives offered to companies on a per job basis is $8,759, down from around $37,000 prior to 2005. Under the IEDC, state incentives are activated only when new jobs occur.

As the state with the largest percentage of manufacturing jobs in the country, Indiana continues to be a place where manufacturing companies, including industries from aerospace to automotive, find the talent and resources they need for success. Driven by companies like GE Aviation, Alcoa and Jasper Engines & Transmissions, the Hoosier State has welcomed commitments of more than 8,500 new jobs and more than $2.28 billion in capital investment from manufacturing companies thus far this year.

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them throughout their visit.

This is the largest religious group hosted by Evansville each year. Organizers anticipate 6,300 worshipers from Arkansas, Indiana, Illinois, Kentucky, Mississippi and Tennessee to attend each weekend. The city will be busy with people and traffic as they will stay in our hotels, eat in our restaurants and shop in our stores. The Evansville CVB calculates this group contributes $3.6 million annually for their standard twoweek conference. The additional weekend could increase that amount by $1.9 million in direct expenditures to Evansville and Vanderburgh County.

Groundbreaking Held for $6M Hotel In French Lick A groundbreaking ceremony was held recently for a new $6 million Best Western Plus hotel to be located at 613 Arnold Habig Boulevard in French Lick IN. C & B Hospitality, LLC owners/investors Kevin Beaty and Donavan Crews, Hillcrest Development Inc. president and CEO, Al Hill and General Hotels Corporation vice president

of sales and marketing, Glenn Brooks conducted the ceremony with French Lick Redevelopment Commission president Barry Wininger providing remarks.

Upon completion, the thoughtfully designed Best Western Plus French Lick will feature 68 well-appointed guest rooms, including 5 extended stay rooms along with limited function space to accommodate small meetings. Additional amenities and services will include complimentary breakfast, complimentary high-speed Internet, long distance access and local calls along with a business center, indoor swimming pool, fitness center and on-site guest laundry. Completion of the project is slated for spring 2015.

USI Breaks Ground on Griffin Center The University of Southern Indiana has broken ground on a new $5.75 million building that will meet the need for more meeting and conference space on campus.

The naming of the 12,700 square-foot Griffin Center was announced to honor

the Robert E. Griffin family. Their leadership gift of $5 million to Campaign USI: Elevating Excellence made the building possible. Funding of the center is one of several goals of the $50 million campaign.

An additional $750,000 from the University’s Parking and Transportation Reserve will be used to build an access road, to be known as Griffin Way, and a parking lot for the facility. Completion of the Griffin Center is expected in late 2015.

The Griffin Center will be constructed on the southwest side of campus overlooking Reflection Lake and facing east with views of campus. It will include a 2,400 square-foot meeting room accommodating approximately 150 guests.

Other meeting spaces, related breakout areas and food service support facilities also will be included.

IU’s Kelly School of Business Partnering with GE Indiana University’s Kelley School of Business announced that it is providing cus-

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Lawn and Garden Manufacturer Expanding in Jeffersonville Brinly-Hardy Company, Inc., a manufacturer of lawn and garden equipment, announced plans to expand its operations in Jeffersonville, creating up to 30 new jobs by 2015. The company will invest up to $4.63 million to renovate and equip its 240,000 square-foot facility in Jeffersonville. Following its purchase of Louisville Tin & Stove Co. this month, the company expects to begin producing residential gas and propane-fired heating equipment in Jeffersonville in 2015, adding to its current product line of lawn and garden tractors and attachments.

The Indiana Economic Development

Corporation offered Brinly-Hardy Company, Inc. up to $150,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans.

Brinly-Hardy’s growth comes on the heels of Michigan-based Mill Steel announcing plans earlier this year that it will locate its first Indiana flat rolled steel service center in Jeffersonville, renovating a facility at the Port of Indiana-Jeffersonville and creating up to 43 new Indiana jobs in the coming years.

New Labs at Ivy Tech Southwest Ivy Tech Community College Southwest unveiled a newly renovated state-of-the-art welding lab at its Tell City campus. Tell City Mayor, Barbara Ewing, and other community leaders were on site to celebrate the lab opening.

The new welding lab features 16 welding stations with cutting-edge equipment, including 34 new welders and two plasma cutting machines. Two of the new welders also include wireless remote foot controls.

The original lab, which opened in the 1980s, was completely emptied, cleaned, and painted as part of the renovation. New safety features were also added to the lab. The cost of the renovation was $110,000, and all services were provided by Perry County contractors. The welding lab will used by Ivy Tech students, as well as students from local high schools who are enrolled in Ivy Tech dual credit welding courses.

Ivy Tech also plans to add a new science lab at the Tell City campus. The renovations to add the lab will cost approximately $250,000, and construction is scheduled to be completed in the spring of 2015. The new lab will house general science classes as well as the popular Anatomy and Physiology courses. Ivy Tech officials are currently meeting with an architect to finalize plans for the remodel and will begin accepting bids in August. A portion of the lab equipment costs will be covered by a grant, and the remainder will be paid by Ivy Tech.

Trellis Earth Products Bringing 60 Jobs to Seymour

disposables, will soon begin operations at Seymour’s East Side Industrial Park, and employment is expected to reach over 60 by the end of the year. The company, based in Wilsonville, Ore., acquired the assets of Cereplast including production equipment, patents, inventory and trademarks as part of Chapter 7 liquidation proceedings, and plan to move into the building formerly occupied by Cereplast.

Trellis Earth is a 7-year old company with over 500 customers in the food service industry including Kroger, Trader Joe’s, and Wegmans. Key products provided include bio-based cutlery, food containers, and shopping bags.

Trellis Earth is a privately held company targeting $8.5 million in revenue for 2015, with the 105,000 square foot facility at the East Side Park having existing annual bioplastic manufacturing capacity to produce materials worth over $50 million.

Japanese Auto Supplier Breaks Ground in Crothersville A groundbreaking ceremony was held for Aisin Chemical Indiana’s new transmission component plant in Crothersville. Aisin is a Japan-based supplier to the automotive and industrial base industries.

In May, Aisin Chemical Indiana and Aisin Drivetrain announced plans to invest a combined $45.35 million in Crothersville and create up to 74 new jobs by 2016. As part of the project, Aisin Chemical Indiana will construct and equip a 100,000 squarefoot transmission component plant adjacent to its current facility, doubling its size at the Crothersville Industrial Park. Construction on the plant, which will produce friction disc plates, will start this month with plans to begin operations next year.

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

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tomized graduate-level educational programs for information technology professionals as part of General Electric’s (NYSE: GE) Information Technology Leadership Program.

GE’s challenging two-year early career leadership rotational program helps participants develop problem-solving skills through advanced courses in IT and technology projects, as well as presentations to senior leadership that are aligned with business objectives.

The customized curriculum, also being delivered by faculty in the School of Informatics and Computing at IU Bloomington, will consist of a 15-credit graduatelevel certificate program, which will be completed through a series of in-person and online courses.

Upon completion, and based on participant performance, GE professionals can continue working toward a MBA degree or a Master of Science degree in information technology management, finance, global supply chain management, management or marketing. Approximately 150 GE professionals will make up the first cohort.

Courses will focus on five specialty areas identified by GE, including analysis leading to solutions, program and project management, service management and platform and infrastructure management.

While these subjects are taught as part of Kelley’s degree programs, faculty will work with GE practice and thought leaders to customize existing courses and to develop new courses as needed.

People News LCEA Names New President/ CEO and VP of Economic Development

The Lake County IN Economic Alliance (LCEA) announced that Karen Lauerman will be the new President and CEO of the organization. Lauerman is the first to lead the county-centered economic development group and will take the helm in October.

Joining the leadership team as Vice President of Economic Development is Donald Koliboski.

Lauerman’s experience with organizational operations, community partnerships, business attraction/retention through various marketing efforts; media relations and fund development complement Koliboski’s expert skills in project management, economic development process, government relations, property identification and site selector relations.

Rose Joins IEDC as Development and Marketing Manager

Sherry Rose, a seasoned economic development and marketing manager, will serve as the director of outside sales of the Indiana Economic Development Corporation (IEDC). Rose joins the IEDC after an extensive 16-year career in economic, community, commercial and industrial development at Wabash Valley Power.

Prior to joining Wabash Valley Power, Rose also served in marketing and sales capacities with Bell Atlantic and GTE Mobilnet.

She is a graduate of Kent State University and has served as president of the Indiana Economic Development Association and the National Rural Economic Development Association.

USF’s Slagle Appointed to Accreditation Committee

Elizabeth (Betsy) Slagle, MS, RN, CST, chair of the Department of Surgical Technology

24

at the University of Saint Francis, has been appointed a Committee on Accreditation member to the Board of Directors of the Commission on Accreditation of Allied Health Education Programs (CAAHEP). Slagle represents the Accreditation Review Council on Education in Surgical Technology and Surgical Assisting. Formed in 1994, CAAHEP is a programmatic post-secondary accrediting agency recognized by the Council for Higher Education Accreditation, and accredits over 2,100 entry-level education programs in 25 health science professions.

Krieg DeVault Announces New Hires

Krieg DeVault announced that Gina Arnett Thompson, former Executive Director of Statewide Regulatory Affairs for Indiana University Health, has joined the Firm as Of Counsel. She will be a member of the firm’s growing Health Care Practice Group, and will counsel clients regarding compliance with the wide-ranging rules, regulations, and standards within the health care industry. Specific to Medicare/ Medicaid, her practice will provide guidance and assistance related to enrollment, participation and reimbursement, provider/supplier relations, and the application of Federal and State fraud and abuse laws.

Also, Krieg DeVault announced that Jonathan F. Yates has joined Krieg DeVault as Of Counsel. Mr. Yates is a member of the firm’s growing Intellectual Property and Technology Practice Group where he will concentrate his practice in the areas of patent and trademark prosecution and general intellectual property.

Methodist Hospitals Board of Directors Elects New Officers

Mamon Powers, Jr., was elected chairman of Methodist Hospitals Board of Directors. Also joining Powers as board officers are Scott T. Ribordy as Vice Chairman, Frances Taylor as Secretary and John A. Lowenstine as Treasurer.

Mr. Powers is President and CEO of Powers & Sons Construction Company, Inc. Scott T. Ribordy is an investment broker with Merrill Lynch and has been on the Board since 2001. Frances Taylor is a former Chief Nursing Officer at Methodist Hospitals and John A. Lowenstine owns his own practice, John A. Lowenstine, CPA.

Centier Names Campbell Senior VP

Centier Bank announced that Christopher Campbell has been promoted to Senior Vice President.

Campbell serves as Market President of Porter, La Porte, and Marshall Counties. Campbell joined Centier in 2006 as a management development trainee. Campbell, whose office is located in Downtown Valparaiso, also serves on the senior loan committee and board loan committee for Centier. He is a graduate of Wittenberg University and received his MBA from Valparaiso University. He is a 2010 graduate of the Cox Graduate School of Banking at SMU and a 2013 graduate of The Stonier Graduate School of Banking at Wharton. Campbell also serves as Treasurer of the Valparaiso Community Festivals and Events Board, and Secretary of the Valparaiso Economic Development Corporation.

Drewry Simmons Vornehm Adds Several New Partners

Drewry Simmons Vornehm, LLP (DSV) announced several new hires within the firm.

Janet A. McSharar joins the firm as a partner, concentrating her practice in the health care field.

She previously worked a partner with Harrison & Moberly, LLP, and was an Indiana Deputy

Attorney General from 19841986. Janet graduated from Indiana University (B.A.), and the Indiana University Robert H. McKinney School of Law in Indianapolis (J.D.).

Paul (Rick) Rauch, III joins the firm as a partner, assisting small businesses. Rick previously was a partner with Harrison & Moberly, LLP. Rick graduated from Wabash College (B.A.), Florida State University (M.S.M.), and the Indiana University Robert H. McKinney School of Law in Indianapolis (J.D.).

A. Barclay Wong joins the firm as a partner, concentrating his practice in the health care field. Barclay previously was a partner with Harrison & Moberly, LLP, and between 2002 and 2004 was an Indiana Deputy Attorney General in the Medical Licensing Section in the Division of Consumer Protection.

Barclay graduated from Oberlin College (B.A.) and Loyola Law School, Los Angeles (J.D.).

Utt to Lead KCDC

Kent E. Utt is slated to take over the reigns of the Knox County Development Corporation (KCDC).

A graduate of the North Knox School Corporation in 1984, Kent subsequently attended the University of South Florida majoring in Business Administration, Indiana State University where he earned a BS in Finance/Economics and Ball State University where he received his MBA in Business Administration. Utt comes to the KCDC from Regions Bank where he served as Community Bank President and southern Indiana /southeastern IL area manager.

Studebaker National Museum Names New Assistant Director

The Studebaker National Museum, in South Bend, IN, announced that Jo McCoy has been named Assistant Director. Jo was graduated from Indiana University/Bloomington and has worked at the Museum

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

since June 2011 as Director of Marketing, Development, & Special Projects. She is a 2009 graduate of the South Bend/Mishawaka Chamber’s Leadership Class and has also worked at Cassady Neeser & Brasseur, 1st Source Bank, Juhl Advertising, and North American Signs.

Walia Joins Centier Bank as VP of Internal Audit.

Pooja Walia joins Centier with 14 years of audit experience, specializing in finance, IT, and enterprise risk management. She previously worked for Baxter International, Sears Holdings, and Grant Thornton LLP. She will be responsible for reporting on operational, financial, regulatory, and compliance related audits for Centier Bank and its related entities. Walia received her Bachelor of Business Administration from Loyola University of Chicago with a double major in Finance and Management Information Systems and an MBA from the University of Notre Dame.

Indianapolis Museum of Art Names New Deputy Director

Kim Gattle has been named the Indianapolis Museum of Art’s new Deputy Director for Institutional Advancement. Gattle has more than 20 years of experience in fundraising and development work. She is currently the president and founder of Gattle & Company, an Indianapolis-based fundraising consulting firm. Previously, Gattle served as the director of fundraising and institutional advancement at The Center on Philanthropy at Indiana University. Gattle is a graduate of University of Florida and received her master’s degree in philanthropic studies from the Lilly Family School on Philanthropy at Indiana University. She is a faculty member at The Fund Raising School and an author on the subject of major gift fundraising.

IUPUI Names Science Department Chair

The School of Science at Indiana University-Purdue University Indianapolis (IUPUI) has named Joseph Rosenblatt,

Ph.D., as a professor of mathematics and chair of the Department of Mathematical Sciences. Before joining the IUPUI School of Science, Rosenblatt spent the last 40 years in education, research and administration at Ohio State University, the University of Missouri and, most recently, the University of Illinois. Rosenblatt earned his PhD in mathematics from the University of Washington in 1972 and completed a postdoctoral fellowship at the University of British Columbia in 1974.

Choose Methodist.

BAGI Names Johnson New Government Affairs Director

The Builders Association of Greater Indianapolis (BAGI) announced the hiring of Kate Johnson, the new Government Affairs Director.

BAGI is bringing back the Government Affairs position after having to eliminate the position in 2010 as a result of the downtown in the economy. Johnson previously worked for BAGI from 2006 to 2010 in the Government Affairs Division and went on to hold positions at the City of Indianapolis as their Public Information Officer, Legislative Liaison and Deputy Director of the Department of Code Enforcement, where she oversaw permitting and licensing.

Deborah Daniels Joins National Center for State Courts

Krieg DeVault Partner Deborah J. Daniels, former U.S. Attorney and U.S. Assistant Attorney General, has been selected to serve on the National Center for State Courts (NCSC) Board of Directors for a three-year term.

Daniels has extensive experience in criminal investigations and public safety. Her work has included responsibilities at the U.S. Department of Justice directly related to the nation’s response to the September 11th attack. She was instrumental in accomplishing a recent comprehensive revision of the Indiana Criminal Code.

She received her bachelor’s degree from DePauw University and her Juris Doctorate from Indiana University Robert H. McKinney School of Law.

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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Escape the Office...

O T O Head to E PH R U T A the Course E F More than 200 Northwest Indiana contractors, subcontractors, suppliers and other industry professionals gathered at the beautiful White Hawk Country Club in Crown Point, IN, recently for the annual Northwest Indiana Business Roundtable’s (NWIBRT) Golf Outing. The event brings regional professionals together for a day of fun and outstanding networking opportunities.

For information on how to join NWIBRT and take advantage of all membership benefits, please visit www.nwibrt.org, or call 219-226-0300

(From left to right) Greg Koszut, Bill Aguilera, Bob Bonta, Jeff Nix

(From left to right) Dan Gilligan, Mike Gleason, Brian Mansmith, Bruce Dystra. Elfco.

(From left to right) Kristi Chibicki, Erica Murdie, Tim Szepelak, Kari Campbell. Airgas Onsite Safety.

(From left to right) Bruce Rivera, John Manta, Mike Keneson, Jason Klaich. BMWC Constructors.

(From left to right) Dan Panice, Milt Hadt, Rick Dyer, Lynn Carmody.

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

(From left to right) Jon Layman, Steve Juszczak, Marty Harris, Paul Ostrander.

(From left to right) Jim Dyer, Kevin Comerford, Fred Shenvar, Scott Hamilton.

27

STATE OF THE INDUSTRY

Setting the Standard NWI Union Construction Safety Data Surpasses National Average

By Dewey Pearman, Executive Director, Construction Advancement Foundation

N

ew data calculated from over 30 million man-hours and nearly 40 NWI construction companies reflects the region’s union construction industry greatly surpasses national safety statistics.

The Northwest Indiana Business Roundtable (NWIBRT) released the information, which was determined based on the North American Industry Classification System (NAICS) code. Data from each company, including man-hours, recordables (TRIR), day(s) away cases & restricted work cases (DART), were entered into a formula that calculated the region’s rates as a whole and compared them to the national average. This was done for each of the last three years (2013, 2012 & 2011).

The results were highly impressive:

National Average NWIBRT

Days Away, Restricted or Transferred Rate (DART) Total Recordable Incident Rate (TRIR)

This means that NWI Union Contractors were 3.78 times below the National DART Average, and 14.8 times below the National TRIR Average.

“These numbers are very significant for all of the hardworking men and women of the Northwest Indiana union construction industry, and for the Construction Advancement Foundation,” said Jim Arendas, Environmental Safety and Health Director with the Construction Advancement Foundation (CAF) of Northwest Indiana.

“We’ve built some outstanding training programs throughout our region that focus on developing essential skills to keep workers safe on the job, keep productivity high, and reduce losses due to accidents and time away from work. We’re truly proud of these achievements, and everything this data represents,” Arendas said.

NWIBRT Executive Committee Chairman Joe Coar said, “In Northwest Indiana, both CAF and NWIBRT are dedicated to providing a safe environment for all involved. This is supported by a strong commitment by all industries, contractors and build28

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

ing trade representatives that want their workforce to remain healthy and safe.

NWI is one of the largest and fastest growing industrial areas in our country. So to see our safety average fall below the national average does not surprise me. For all of NWI we must stay focused on how we attained this distinction as we continue to move forward.”

He also said that this data has larger implications for the entire region’s economy.

“I believe that the availability of a well-educated workforce, which includes all forms of safety training, will help in the decision process as developers and industries select the locations that they want to establish their operations. NWI is ready to meet those goals,” Coar said.

In an effort to continue achieving safety excellence, last summer the CAF opened its new 7,000 square-foot Safety Training Institute. Each year the CAF provides 20,000 training hours to about 1,800 workers, and hopes to elevate that number in the future.

“We want to make sure that our training is the absolute best, first-class training that can be offered,” said Arendas. “One of the driving forces behind our establishment of the Safety Training Institute is the level of participation of our contractors and members. They are very committed to their safety performance, and the same is true of the owner companies, and customer bases throughout the industry.”

Numerous other Indiana companies and organizations were excited about the newly released safety data from NWIBRT. “Safety of our employees and customers is paramount at NIPSCO. We consistently review our safety practices, set goals and strive to improve our safety metrics on a daily basis. NIPSCO believes to achieve company goals in safety we must create a culture of safety within the work place,” said Rick Calinski, NIPSCO Public Affairs Manager.

Jim Stalley, Corporate Director of Safety at Amex Nooter LLC, said, “Management, in partnership with the unions, NWIBRT, and the CAF, have encouraged and endorsed a culture that injects safety into the bid process from the start. Prejob strategies now develop plans that offer a productive jobsite without sacrificing safety. The results are evident when you

see statistics like these.”

IDOL Commissioner Rick Ruble said, “The Indiana Department of Labor’s goal is to ensure workers in Indiana have a safe and healthy place to work and can go home each day to their families. To do this, Indiana employers, workers and agencies have to make safety a priority and vigorously reduce worker injuries, illnesses, and fatalities.”

“The BP Whiting Refinery Project is a model example of safety priorities in action. Their superior DART and TRIR figures show Indiana’s employees are healthier and feel safer at work. Their

rates translate in to cost savings for Indiana businesses. The data shows Indiana is an industry leader in safety and will continue to adhere to the highest safety standards,” Ruble said.

“BP congratulates the NWI construction industry on the recent safety statistics which show injury rates far better than national safety statistics,” said Tom Keilman, Director Government Affairs at BP, Whiting.

“These stats align with BP’s commitment that all workers “go home the same as how they came to work,” because in the end, it is about workers going home safely to their families and friends.”

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SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

29

RULE OF LAW

Take Notice of Notice Requirements

By Patrick Drewry, Attorney, Drewry Simmons Vornehm, LLP

I

n reviewing and negotiating construction contracts, we are seeing an increased emphasis on notice requirements. Such requirements should not simply be ignored as legal formalities drafted up by dastardly attorneys in dark rooms.

Notice requirements serve a very practical purpose, but also may result in a significant shifting of risk in your construction contract. Here is your notice: Take Notice of Notice Requirements.

Nearly every provision in a construction contract contains a notice requirement: requests for time extensions, change orders, warranty call backs, default and termination clauses and formal claims. The practical purpose of a notice requirement is to allow both parties to flag problems and issues encountered during construction, and to allow them the opportunity to address and hopefully resolve them quickly before significant schedule or cost impact. A typical notice requirement may require “written notice be furnished within 21 days from occurrence of an event, or observance or discovery of an event”. This is the standard notice period in the American Institute of Architects (“AIA”) standard contract forms.

Taken by itself, such a provision may appear to merely be an instrument to serve the aforementioned practical purpose of “early detection”.

However, with increasing frequency, such provisions are followed by language such as “failure to provide such written notice, may result in an irrevocable waiver of any right to a claim, or change order or time extension”. Suddenly, this notice requirement has very permanent consequences. The danger is further reinforced by the trend in Indiana courts over the last several years of strictly enforcing notice requirements and exculpatory clauses, which are clauses which reallocate the risk and liability of the respective parties. There are legal arguments and exceptions to try to circumvent enforcement of notice requirements, but construction

30

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

parties should now expect that there is a strong possibility that Indiana courts, or arbitrators, will enforce such notice requirements. Fail to comply, and you are facing an uphill battle.

So how does this affect you? Consider the excavating contractor who hits bad soils and needs to assert a differing site condition claim. Or the general contractor who must request a time extension due to delays caused by a lack of jobsite access or interference by an Owner. Perhaps the subcontractor who receives a field directive to perform what he or she considers work outside its scope and must seek a change order.

These are all scenarios which inevitably implicate notice requirements, and if the party fails to comply with such requirements, that party may lose the right to a claim, time extension, or a change order. Obviously such result may have enormous financial consequences.

Notice requirements should be addressed on two fronts: (1) in negotiating your contract; and (2) in ensuring compliance during construction of the project. On the negotiating front, the battleground will be likely be the length of the notice period, and the scope and extent of any waiver for failing to comply. Another legal nuance is whether notice begins to run from occurrence of the event, or when a party discovers, or should have discovered, the event. Such distinction can extend the notice period, often significantly.

Equally important is ensuring top down understanding within your project team of the various notice requirements. Your project staff should know how long they have to give notice for all of the key clauses mentioned above.

Does it have to be in writing? Via regular mail, certified mail, email, or in person? Who is the party designated to receive such notice? What is required to be furnished with the notice? Perhaps an updated schedule is required, or cost estimate with supporting and back-up documentation. With increasing frequency the scope of documentation required is extensive.

One difficulty in ensuring compli-

ance is actually recognizing the event that triggers the notice requirement.

It may be days or weeks before a party realizes an event has delayed them, or increased their labor or materials costs. Your project team must be diligent in monitoring such events and

“ Fail to comply, and you are facing an uphill battle.� taking action in time to preserve their rights. More difficult is the balancing of the art and science of the notice requirement. The science of formal compliance is easy for the attorney to preach in a vacuum. The difficulty is that contractors want to focus on the business of building projects, not the business of papering jobs to set up claims. Many of our clients speak of not wanting to become too adversarial and risk bogging down a project, or fear being perceived as claim

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

conscious. The art comes in the form of knowing how to document and provide enough notice to allow the job to progress and avoid constant conflict, but to preserve the right to a time extension, a claim, or a change order if necessary down the line.

One final practice pointer is to be aware of the use of email in satisfying notice requirements. The contract should address whether email notice is acceptable. On one end of the spectrum, the informal nature of emails may not rise to the level of satisfying a formal notice requirement. The flip side is that the constant flow of email communication wherein a party informally raises problems or issues demands diligence by the receiving party to recognize when an email becomes possible notice of a claim, and triggers the need to timely respond to such emails to rebut such attempts.

It may sound like an over simplification, but Take Notice of Your Notice Requirements. Rest assured a court or arbitrator will.

31

SAFETY ZONE

What’re the Odds?

Simple Statistics on the Odds of Being Killed by Dangerous Scenarios

By Nick Dmitrovich

T

hroughout our experiences in following media publications and our own corporate insurance / worker’s compensation reports, Americans often hear about obscure ways in which individuals are injured or killed by dangerous scenarios in both the workplace and our private lives.

Have you ever wondered about your own odds of dying in various situations such as a lightning strike or motor vehicle crash?

Furthermore, have you ever considered how these odds would affect your company’s safety reporting should they ever occur?

Here’s a look at your Lifetime Odds of Death for Selected Causes throughout the United States, ranked by likelihood: Unintentional poisoning by exposure to noxious substances – 1 in 123

Motor vehicle incidents – 1 in 108

Heart disease – 1 in 7 Cancer – 1 in 7 Chronic lower respiratory disease – 1 in 28

Assault by firearm – 1 in 340

Car occupant – 1 in 415

Pedestrian – 1 in 749 Motorcycle rider – 1 in 907

32

Intentional self-harm – 1 in 106

Falls – 1 in 158

Accidental drowning and submersion – 1 in 1,112

Air and space transport accidents – 1 in 7,229

Contact with hornets, wasps, and bees – 1 in 71,107

Exposure to fire, flames, or smoke – 1 in 1,419

Exposure to excessive natural heat – 1 in 11,111

Legal execution – 1 in 79,815

Choking from inhalation and ingestion of food – 1 in 3,842

Exposure to electric current, radiation, temperature, and pressure – 1 in 12,146

Bitten or struck by dog – 1 in 122,216

Pedalcyclist – 1 in 4,982

Contact with sharp objects – 1 in 32,322

Cataclysmic storm – 1 in 126,158

Firearms discharge – 1 in 7,059

Contact with heat and hot substances – 1 in 58,372

Lightning – 1 in 126,158

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

In 2013, the National Safety Council (NSC), a nonprofit organization that works to save lives through safety advocacy and education in both the corporate and consumer settings, published some interesting findings on the chances of being killed by various means. Though the information is rather unsettling to consider, the information is valuable when it comes to promoting awareness of the potentially dangerous situations that many of us encounter daily at both work and home.

Using the most recent mortality data available for the entire United States, the NSC calculated the one-year odds by dividing the 2009 population (307,006,550 people) by the number of deaths in a particular category for that year. The lifetime odds were approximated by dividing the one-year odds by the life expectancy of a person born in 2009 (78.5 years), which is still very comparable to the life expectancy in 2014 (78.7 years). It’s important to note that odds based on less than 20 deaths are likely to be unstable from year to year and

are therefore not included in the list.

Additionally, it’s important to remember that the odds given in the list are statistical averages over the whole U.S. population and do not necessarily reflect the chances of death for a particular person from a particular external cause. Obviously, any individual’s odds of dying from various external causes are affected by the activities in which they participate, where they live and drive, what kind of work they do, and other factors.

With regard to the impact of these facts on various industries throughout the country, recognizing that events such as falls, motor vehicle accidents, and unintentional poisoning rank among the most likely causes of death is critical information for all corporate safety professionals. Each one of these factors has the potential to be curbed by proper safety training and practices implemented in the workplace. While no one can really predict when an incident like a cataclysmic storm will occur, we can certainly prepare ourselves against the dangers from several of the most likely causes of death.

One Everything

Preparation is probably the single most important notion to take away from this information. Although, humorously, the NSC does note that the total likelihood of death from any cause is 100% for all individuals – it’s only through safety training and preparation that we can begin to alter, and hopefully reduce, several of these leading causes of death in the United States.

Source: National Safety Council estimates based on data from National Center for Health Statistics–Mortality Data for 2009, as compiled from data provided by the 57 vital statistics jurisdictions through the Vital Statistics Cooperative Program. Population and life expectancy data are from the U.S. Census Bureau. Deaths are classified on the basis of the 10th revision of the World Health Organization’s International Classification of Diseases (ICD-10).

Numbers following titles refer to External Cause of Morbidity and Mortality classifications in ICD-10.

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33

COVER STORY

Generosity, Fun, and

Learning Canstruction Northwest Indiana Exposes Kids to Engineering Technology and Raises 45,000 Meals for Food Bank of NWI

By Nick Dmitrovich

Here is a listing of the “Canstruction Northwest Indiana” teams and their sponsors: Signature sponsors: Purdue University Northwest-Calumet and Purdue University Northwest-North Central Boys and Girls Club of Valparaiso, and Boys and Girls Club of South Haven Sponsored by: Task Force Tips YWCA of Northwest Indiana Sponsored by: Lake Area United Way Boy Scouts Calumet Council Sponsored by: Lake Area United Way Boys and Girls Club of Portage Sponsored by: McAfee Animal Hospital Boys and Girls Club of Cedar Lake Sponsored by: BMWC Constructors Campagna Academy Sponsored by: Enbridge Energy Southlake YMCA Sponsored by: Lake Area United Way Boys and Girls Club of Chesterton, and Chesterton YMCA Sponsored by: Lakeside Wealth Management Griffith YWCA Sponsored by: Lake Area United Way

34

N

orthwest Indiana’s community leaders have found an innovative way to get kids interested in the construction and engineering fields through a collaborative event called “Canstruction.”

“Canstruction” is a big project that truly brings several exciting elements together: young kids compete to build impressive creations out of canned and boxed foods as they learn about designing, planning and budgeting throughout the creation process. In the end, the food items from their designs are donated to a local food bank. It’s an inspiring and educational event to witness, and this summer Northwest Indiana was a proud host for a very successful “Canstruction” competition.

“Canstruction Northwest Indiana” was developed through a partnership between the Lake Area United Way and United Way of Porter County in cooperation with Congressman Pete Visclosky, the Food Bank of Northwest Indiana, Crossroads YMCA and Purdue University Calumet’s Center for Innovation through Visualization and Simulation (CIVS). Participating youngsters came from organizations in both Lake and Porter county.

In total, some 45,000 meals were donated to the Food Bank throughout this event, but the lessons the kids learned about construction and engineering were probably among the most significant outcomes of this project.

Angie Williams, Director of Community Impact for Lake Area United Way, said, “This all started with an idea for a food drive. We knew of “Canstruction,” and with the support of Congressman Visclosky we were able to launch the project. Most of these students involved are middle school aged, and many would never have the opportunity to come to a university like Purdue and see anything like CIVS or its technology.” www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

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“Working with the professional engineers has inspired our kids to consider engineering as a career,” Williams added.

Congressman Visclosky added, “The role models that are helping out with these young people have done a fantastic job. The kids are enjoying this experience, and it’s an experience they’re having at a university using technology.”

As with any construction project, the kids began their designs on the drafting table. Their sketches were then given to the 3D imaging experts at Purdue Calumet’s CIVS, which is a multidisciplinary center that combines advanced simulation techniques with 3-D visualization and virtual reality technologies. The advanced technology provided the children with an opportunity to experience what it’s like to work in the field of engineering.

Jack Moreland, Senior Research Scientist at CIVS, explained, “The kids used a program called “3D Studio Max,” which is a modeling and animation program. We took their sketches and turned

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Done with Pride them into 3D models along with some help from our 3D experts; who use the tools and show how to revise the design. Then we took the design out of the program and brought it over to the immersive theater at CIVS so the kids could see their designs in full-scale virtual reality, in a system called a Virtual Reality Cave.”

“The key thing here is that we’re modeling all of the cans at the correct size and with the correct labels, because for this project, certain cans have certain colorings and various sizes and shapes – from restaurant-sized cans down to small tuna cans, etc. As the kids are building their structure they’re using this as a model to figure out what order they need to do things in, and this also shows them how tall their project is turning out. They need to fit into a sevenfoot cube, and height can be a concern as things get closer to the final product. This gives them a correct scale so the kids will know where the center of the project needs to be, and will help them finalize their design,” Moreland said.

“The kids were very engaged by this project, and were fascinated by the technology. This has been a truly great event here at CIVS,” said Robert Ennis, Legislative Liaison and Chief of Staff for Purdue Calumet’s Office of the Chancellor.

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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COVER STORY

Doreen Gonzalez-Gaboyan, Business Development and Outreach, CIVS, said, “This is much better than a traditional field trip to a museum. When the children come here, we encourage them to think beyond what they already know.

The energy behind this project is significantly high.”

Budgeting was also a key part of the process for the young builders. Each team was given $2,500 dollars to work with, and could make their own decisions regarding which food products to use as building materials. Every team had to make careful considerations relating to the size and look of the items, and also had to make choices based on the quantity of the items they’d be able to purchase.

“One of the most important things about this project is that the students also have a budget,” Congressman Peter Visclosky said. “I was struck by that because I majored in accounting in college, and it’s important that the kids learn about budgeting. One of the groups at Ivy Tech figured out that they could

36

spend “up to” their specific amount, and if they spent it all there would be more food to give away at the end of this – and all the other groups said, “Hey, that’s a good idea.” So they’re all trying to bump

up against the cap so there will be more food to donate – what’s there not to love about that?”

“I give a lot of credit to the United Ways of Lake and Porter County, and the

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Purdue campuses that have been very involved in this as well. One of the great pleasures and privileges I have with this office is to be able to participate with people like them; to help make sure that people come together and do good work in the community.”

He went on to explain a bit about how a project like this can have much larger implications on Indiana’s future, as it addresses numerous skills that many Hoosier employers are actively seeking.

“I think this project points out the value that Purdue, and other Indiana institutions, bring to our community more generally,” Visclosky said. “Purdue has programs now that are very technical, and these are skills that our young people need. Someone has to apply all of this knowledge in order to produce things here in the United States. Training people to do these things is important because manufacturing is so sophisticated and technically oriented; I think people still think of manufacturing the way it used to be. Go into some of these manufacturing

facilities today and you’ll see the technology, the machining, the computerization - we need serious training programs for companies. The companies are here, but they can’t find enough qualified laborers.

It’s a skillset that we have to get people trained to perform.”

“I think just the fact that these kids are here at Purdue reminds people that here’s another resource that we too often take for granted that is part of that redevelopment of our economy. Hopefully these young middle school students will be excited by all this, and inspired,” Visclosky said. “Whatever the kids end up doing in life, the fact that they recognize that this technology can help you solve problems, and that the educational experience can be fun – obviously even

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

though you have to work at it – there’s going to be a tangible result after you build this thing. So there are some real connections taking place with this project.”

For a complete list of the ‘Canstruction” winners, visit our website at www.buildingindiana.com.

37

BOTTOM LINE

New initiative launched to

prevent falls in the construction industry

By Randy Vale, President, Braman Insurance Services, with contributions from Amerisure Insurance Company

W

orkplace accidents and illnesses can become serious problems for employers across the country. Without a clear risk management plan and other safety features in place, it will be much more challenging to control costs and keep workers safe each day.

Thankfully for businesses everywhere, there are plenty of resources that can make this an easier goal. Planning ahead and providing valuable educational services to employees will help reduce the number of accidents 38

and workers’ compensation insurance claims, and it will demonstrate a willingness to improve safety efforts and ensure a productive, secure workplace.

Recently, a new initiative was launched with this exact goal in mind.

Headed by the U.S. Occupational Safety and Health Administration (OSHA), more than 1 million workers across the nation participated in their National Fall Safety Stand-Down event, which is a year-long voluntary event for employers to talk directly to employees about safety. This year focuses on “Fall Haz-

ards” and to reinforce the importance of “Fall Prevention.”

Stand-Down shines spotlight on fall hazards Falls are some of the most dangerous accidents at a workplace, especially for high-risk industries such as construction. A focus on preventing fall hazards and keeping employees safe should help reduce workers’ compensation insurance costs and prevent fatalities.

This recent event organized by OSHA helped shine a spotlight on these com-

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

mon risks and increase awareness of proper safety measures.

OSHA explained that falls are the leading cause of death for construction workers, with thousands of additional injuries reported each year. In fact, too many employers provide inadequate fall protection to workers, and a lack of the correct safety equipment and training will only compound issues. During the event, many businesses stopped work and discuss fall safety instead.

“This is an unprecedented event,” said U.S. secretary of labor Thomas Perez. “Tens of thousands of employers and hundreds of thousands of workers across the country have joined our campaign to save lives and prevent fatal falls in the construction industry. The economy is on the rebound, housing starts are on the rise and the summer construction season is getting underway. Now is the time to focus on this vital safety issue and make sure all construction workers come home at the end of every workday.”

“Tens of thousands of employers and hundreds of thousands of workers across the country have joined our campaign to save lives and prevent fatal falls in the construction industry.”

U.S. Secretary of Labor, Thomas Perez

The desire for change can improve results Introducing improved safety measures and widespread change at a construction company can be challenging if there isn’t a cohesive effort between all employees to adapt.

According to EHS Today, better fall prevention is driven by three main factors: motivation, money and training. If a company is willing to invest the resources into better measures, the results are likely to follow. This type of commitment starts at the top of the company. Upper management must want to incorporate key safety changes, and this desire will have a ripple effect throughout the organization. Unfortunately in too many ANTONE PROCESS COATED cases, safer workplaces are considered an impediment to proS 77-1 C duction and quick results - and this is never a good thing for -10 fewer accidents and a lower amount of workers’ compensation M-100 insurance claims.

-100 Most importantly, EHS Today stressed the value of training programs. Even strong motivation from the workforce won’t yield positive results unless the educational materials exist to back it up. Training starts with good communication, especially from managers and other supervisors. For starters, all new hires must undergo strict training procedures, and all current employees must participate in regular meetings to cover crucial safety measures and new trends in the industry.

With these steps in place, construction companies may have an easier time keeping workers safe and secure on the job. Otherwise, workers’ compensation insurance claims could start to rise, and an influx of accidents and illnesses might have a largescale negative effect on the organization.

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SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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39

construction Facts & STats Hoosier Construction Industry Sector Employment Data, May 2014

1. Apply good listening skills 2. Work as a team member 3. Adhere to safety procedures 4. Maintain safe work environment 5. Manage time efficiently 6. Follow detailed instructions 7. Use hand tools 8. Move heavy objects 9. Follow customer instructions 10. Serve customers/clients

• General construction

= 127,300

• Building construction

= 29,600

• Heavy and civil engineering construction

= 17,100

• Specialty trade contractors

Current Top Ten Skills in Demand for All Indiana Employers, 2014

Source: Indiana Department of Workforce Development, 2014

= 80,600

Source: STATS Indiana, using U.S. Bureau of Labor Statistics and Indiana Department of Workforce Development data

Indiana Construction Earnings The average weekly earnings for an Indiana construction employee is $964.44 – or roughly

$26.79 per hour.

22.55% by the year 2020.

Source: Hoosiers by the Numbers

Source: STATS Indiana, using U.S. Bureau of Labor Statistics and Indiana Department of Workforce Development data

Facts about Union Construction from Top Notch • The Indiana Union Construction Industry is the

largest trainer and supplier of skilled workers in the construction industry in Indiana.

• The Indiana Union Construction Industry has

almost 8,000 apprentices enrolled in training in Indiana alone.

• First-year union apprentices earn approximately the same amount most state college students pay for a year’s tuition.

• Union programs have also enrolled almost three times as many minorities and four times as many women as non-union apprenticeship programs.

• Union apprentices receive 1,700 to 2,000 hours of on-the-job education each year.

• Union apprentices receive a minimum of 216 hours of classroom instruction each year.

• Veterans make up 6.8 percent of union apprenticeship programs in Indiana.

• There are nearly 4,000 union contractors in the Indiana Union Construction Industry.

• The Indianapolis skyline was constructed by union contractors.

• Many of the construction unions in Indiana are more than 100 years old.

Source: Top Notch

40

Did you know?

The Construction and Extraction employment fields in Indiana are expected to grow by

Most Common Indiana Workplace Injuries • Back injuries

• Traumatic Brain Injury

• Reflex Sympathetic Dystrophy Syndrome • Toxic Mold Exposure (RSD) • Shoulder and Knee Injuries • Complex Regional Pain Syndrome (CRPS) • Joint Replacement (shoulder, knee and • Tendonitis hip injuries) • Stress fractures • Chronic Pain • Carpal Tunnel • Spinal Cord Injury Syndrome Source: Indiana Worker’s Compensation Information Portal

Indiana had the largest construction project in the country in 2014 with the Milton Madison Bridge project. Spanning nearly a half mile, the truss of the Milton-Madison Bridge is the longest bridge in North America – and perhaps the world.

It was slid 55 feet from temporary piers onto refurbished piers in April 2014.

Source: INDOT

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

P

Serving the Industrial Pipefitting and Construction Trades in the Midwest since 1976

What are the “Building Trades?”

The “Building Trades” are the 15 trade unions that work in the building and construction industry. In Indiana, the Building Trades are

75,000 members strong.

Source: Indiana State Building & Construction Trades Council

A Fact about Union Construction Wages Overall, union members earn 28 percent ($198) more per week than nonunion workers. Hispanic union members earn 50 percent ($258) more each week than nonunion Hispanics and African Americans earn 29 percent ($168) more each week if they are union members.

Source: Indiana State Building & Construction Trades Council

In 2013, union members accounted for 9.3 percent of wage and salary workers in Indiana, compared with 9.1 percent in 2012, the U.S. Bureau of Labor Statistics reported.

Source: BLS

New Residential Building Permits in the Indianapolis MSA, 2007 to 2013 $1,600

9,000

$1,400

8,000

$800 $600 $400

New Units

$1,000

7,000 Building Cost (in Millions)

$1,200

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5,000

• PVC Pipe Valves & Fittings

4,000

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3,000 Building Cost (left axis) Units (right axis)

$200 $0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013

Source: US Census Bureau

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

2,000 1,000 0

Indiana: 219-844-1900 Addison: 630-543-8145 Chicago: 312-347-1600

porterpipe.com 41

SMALL BUSINESS

Where Are They Now? Affairs to Remember of Northwest Indiana

By Nick Dmitrovich

To commemorate twenty years in business, the Regional Development Company (RDC) looks back at a few of the most successful borrowers and how the 504 Loan has helped their business evolve.

M

any businesses start out as an idea and, over the course of planning and dedication, a fortunate few graduate to see their plans come to fruition. Affairs to Remember of Northwest Indiana is a great example of one company’s journey from a big idea to a small business success story, all made possible through the support of SBA 504 loans.

Affairs to Remember of Northwest Indiana is an all-inclusive wedding venue that’s located in Valparaiso, Indiana. The company has everything one would need to plan and execute wedding ceremonies including a ballroom entitled Aberdeen Manor, full catering services, and a bridal shop called Affairs Wedding Details, all operating at the same location.

42

In the early 90’s, owner Denna Fyock conducted business out of her home as the sole employee of the company. Later on, in 1999, she partnered with the Regional Development Company (RDC) of Valparaiso, Indiana, and Dale Clapp of First Merchants Bank, for a Small Business Loan that would serve as the catalyst for her business plan. Fyock used this first loan to establish her original building.

In 2003, a second 504 loan was given to Affairs to Remember to be used for a large expansion; the company added 8,000 square feet to their building, which contained the bridal shop, office space, a full kitchen and additional storage space. At this point, the company was able to add about 20 jobs – but Affairs to Remember’s growth didn’t stop there.

In 2007, the company took advantage of a third 504 loan that allowed them to add on a wedding chapel. The addition of the chapel has given Affairs to Remember the ability to conduct wedding ceremonies year round, regardless of weather conditions, in addition to ceremonies in the garden outside the facilities. Denna Fyock said that the chapel now keeps her staff, of currently about 35 people, busy every day of the week.

“The story of Affairs to Remember is a true testament to how the SBA 504 loan program can provide opportunities for growth and expansion for small businesses in Indiana and Illinois. Affairs to Remember began with an entrepreneur who had a solid business idea. The RDC has had the pleasure of helping this en-

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

trepreneur turn her plans into a well-respected, successful business with nearly 40 employees. At the RDC, we are very proud to help small businesses find the right pathways toward growth. 504 financing can be a very effective and affordable tool for bringing small business goals to reality,” said Niccole Zell, Vice President of Lending with the RDC. “I’d recommend SBA loans for any company that’s considering expansion,” Denna Fyock said. “The process was easy and uncomplicated, and the interest rates were much more favorable than a bank could offer.”

“With these loans, our company basically went from being a single employee (me) wedding consulting firm located in a small rental house, to being a full-service wedding and event center that seats up to 300 guests, with nearly everything on site,” Fyock said. “Our five acre location has a formal garden for ceremonies, a stand-alone chapel as a backup or primary location for ceremonies. We also have 1,500 square feet of meeting space in the lower level, and a 3,500 square-foot bridal shop that carries invitations, tuxedo rentals and accessories, jewelry, favors and rentals for weddings.”

Dale Clapp, Senior Vice President with First Merchants Bank, said, “I started working with Denna and Jim Fyock in the early 90’s, when Denna managed Affairs from her home and the banquet center was simply a goal that she truly believed in, but had no idea how to pursue or make a reality. She approached me and the bank early in her career and had a vision that one day she could put everything wedding, under one roof. She traveled to numerous wedding shows, events and conferences to ultimately formulate her plans and her unique niche in this industry.”

“She looked at many sites and she and her husband Jim ran numerous “what if” and “worse case” scenarios,” Clapp said.

“Between Denna, who is always the optimist and Jim, who is more conservative and financially focused, she designed a strategy to ultimately build her own facility (versus trying to retrofit an existing building) and house Affairs, and her banquet center (with full kitchen) under

one roof. We utilized the RDC and 504 program for both the initial construction as well as the expansion.”

“The success of this company has been largely due to Denna’s drive for perfection, and as a result, her center is recognized as

one of the premier event centers in the region, evidenced by bookings well into the next year. This project blossomed early and I don’t think she ever experienced a month where she didn’t actually exceed her projections,” Clapp added.

The Regional Development Company is a Certified Development Company licensed to make loans under the SBA 504 with a focus on assisting small businesses prosper to their full potential. For more information on what RDC can do for your business, visit www.rdc504.org or call 219-476-0504.

Celebrate the Region’s Most Successful Women Professionals!

Join us at the 2014 Influential Women of NWI awards night. This event donates proceeds to local nonprofit charities.

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November 6, 2014 5-8pm Avalon Manor, Merrillville, IN

Call Shannon for more information at 219.226.0300 or email at szaronias@nwibusinessevents.com

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

43

MASS PRODUCTION

Making the

Grade

Indiana’s Manufacturing Industry Receives an “A” Grade for the Sixth Consecutive Year

By Nick Dmitrovich

I

ndiana’s manufacturing industry continues to elevate the state’s economy year after year, due to solid expansions throughout many aspects of the industry and the attraction of new business avenues. Very recently Conexus Indiana, the state’s advanced manufacturing and logistics initiative, and Ball State University’s Center for Business and Economic Research (CBER) collaborated to publish the 2014 Manufacturing and Logistics Re-

port Card, which ranks Indiana among the nation’s top states for manufacturing in four distinct categories: manufacturing health, logistics health, tax climate and global reach.

The report stated, “For six consecutive years, Indiana has boasted A-level performance in manufacturing health and four consecutive years of earned ‘A’s in logistics industry health. Indiana continues to lead the nation with the highest share of manu-

facturing employment per capita and highest manufacturing sector income share of total income.”

“Indiana’s growth in economic activity continues to be relatively robust,” said Michael J. Hicks, CBER Director and Ball State Economics Professor. “The data are conclusive evidence of Indiana’s competitive edge in the post-recession economy, both in comparison with surrounding states and on the national stage.”

Other key findings reported that: • Indiana also maintained an ‘A’ grade for tax climate and is among the top 20 percent relative to other

states for income tax, sales tax, unemployment insurance and property tax for fiscal year 2014.

Global reach also earned an ‘A’ grade for the sixth consecutive year, although Indiana saw a slight

decrease in export growth compared to 2013.

• Indiana improved grades in human capital (‘D’ to ‘C-‘) and worker benefits costs (‘C-‘ to ‘C’). Indiana

improved its first-year retention rate for first-time degree/certificate-seeking students, but is still

among the bottom 10 percent of states in terms of percentage population with a bachelor’s degree.

44

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Indiana’s labor force. It was pointed out that a one percent increase in older workers in Indiana translates to a more than four percent increase in job turnover in less than three years. And, more than one in six Indiana workers will near or reach retirement age in the next decade, raising the specter of job turnover rates in manufacturing exceeding 30 percent by 2020.

“The most significant factor facing Indiana’s manufacturing employers is the aging of the workforce,” Hicks said. “The share of the workforce aged 55 to 64 has increased 71 percent since 1998 – from 9.8 percent to 16.8 percent. The entire economy is experi-

encing that transition, but it is much larger and more rapid in manufacturing.”

Experts agreed that with the constant technological changes that occur in manufacturing, the state needs to continue building educational resources in an effort to keep up with the demand for trained workers as “baby boomers” transition out of the work force.

For Indiana, attaining such a prestigious reputation in manufacturing isn’t the end of the road. There’s lots of work that needs to be done to maintain our elite status, and continued evolution/adaptation is going to be a staple of that progress.

A FOUNDATION of Success

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“While our human capital grade showed some improvement this year, Conexus Indiana and our industry and education partners continue to concentrate considerable effort in shifting our statewide focus to developing a workforce equipped with the middle-skills necessary to succeed in today’s advanced manufacturing and logistics industries,” said Steven Dwyer, president and CEO of Conexus Indiana. “The workforce component is essential not only to our continued success in these sectors, but to an even stronger and more stable statewide economy.”

Over the past several months, several large manufacturing operations have moved into Indiana or expanded here; each citing key reasons for choosing the Hoosier state. One example is Tate & Lyle (LSE: TATE), London-based global supplier of ingredients and solutions to the food and beverage industry. The company plans to invest more than $90 million in its Lafayette, Indiana operations over the next three years.

“Our investments in Lafayette position us for future flexibility and growth within our markets and allow us to provide the solutions our customers need to meet consumer demands while making continued improvements in our environmental performance,” said Olivier Rigaud, President of Specialty Food Ingredients at Tate & Lyle.

“We’d like to thank the state of Indiana and the city of Lafayette for their ongoing support of these projects and look forward to our continued relationship with them.”

Superior Truss & Panel, Inc., an Illinois-based manufacturer and installer of commercial building roof trusses and wall panels, announced plans to relocate its Markham, IL, operations to Gary, IN, recently as well. “Gary provides easy access to interstate highways, allowing greater convenience in shipping to multiple states,” said Bryce Welty, president of Superior Truss & Panel.

This year, the 2014 Manufacturing and Logistics Report Card came with a companion report that cited some of the most critical challenges that are presently facing Indiana. Specifically, the effects of Indiana’s “baby boom” generation’s retirement were referenced as a significant challenge facing

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SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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45

BEING PRODUCTIVE

Steps Toward a Solution

Indiana Regional Works Councils Begin to Close the “Skills Gap”

By Nick Dmitrovich

T

his summer, the Indiana Works Council awarded $65,000 Career and Technical Education (CTE) Awareness grants to ten different regional works councils in an effort to bolster awareness of local career and technical education efforts. The Council announced that the goal of the grants is to expand knowledge of regional employer needs, highlight available training and education programs, and provide greater recognition of long-term career opportunities for local students and adults who may be changing careers.

The regional Indiana Works Councils bring together business, education, and work force leaders to identify regional needs for employers, students, and communities. The councils are charged by the state-level Indiana Career Council with evaluating the career and technical education opportunities within their regional communities, and working to create innovative programming to meet regional needs. All of the efforts of these organizations work toward finding solutions to the “skills gap” that exists in Indiana’s labor force.

“Initial surveys and evaluation efforts by the Works Councils determined overall awareness of CTE opportunities was lacking for many students and families,” said Jackie Dowd, special assistant to the governor for workforce innovation. “Regional plans to increase local awareness by a variety of methods will assist in informing students, institutions and employers of the needs and opportunities in the area, and the availability of successful programs to support individual goals and educational/training options.”

“We want every Hoosier to be well informed of available options as they choose their career paths, whether they be a student or adult changing careers,” added Dowd. “Matching talents, aptitudes and personal goals with employers who have or predict future job openings will sustain our communities, build our economies, and provide personal satisfaction for a job well done.”

Grants were awarded to ten regional works councils who provided specific proposals on their goals for state support. Projects to be completed include local business/industry tour days, expanding Purdue’s successful electric go-cart camp to engage more CTE students, and professional development and enrichment programming to better inform teachers and school counselors of industry trends and work environments.

Here’s a breakdown of some of the ways each council plans to use their grant: Region 1: Northwest Indiana • Provide a Counselors Academy during summer of 2014 with a Career Pathways Program • Coordinate five industry/partner facility tours for teachers and counselors • Create instructional guides, as well as 25 instructional videos, aimed at increasing CTE awarenes • Host CTE-focused summer camps for students during summer 2015.

Region 3: North East Indiana • Outreach to high schools and postsecondary institutions through film and written materials • High school counselors will participate in at least one activity where specific insight into CTE programming and opportunities will be reviewed

46

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Region 4: West Central Indiana • Provide marketing for the region’s CTE opportunities • Provide student program scholarships • Expand the Purdue Electric Go Cart Camp to include additional students with Subaru of Indiana, Caterpillar, and Chrysler of Kokomo and Tipton • Provide counselor and teacher in-service training through educator enrichment in the areas of advanced manufacturing and/or STEM education Region 5: Central Indiana • Provide professional development for counselors and teachers • Establish at least one annual school based Construction Skilled Trades Awareness & Information Event at each high school • Create a Regional Media Campaign Region 6: East Central Indiana • Focus and examine the business work force needs, existing communication linkages and the nature of their relation ships with business leaders

•

Address the perceptions of workforce training and education and roles of CTE teachers/administrators and business leaders

Region 7: West Central Indiana • Increase CTE awareness with a regional coordinator and outreach liaisons to bridge gap between industry and education • Establish a Counselor Academy to utilize tours of industry, Ivy Tech and 3 intensive interactive pathway events Region 8: South Central Indiana • Focus on the creation of an integrated marketing effort • Development of a career library and comprehensive website pages to serve as a central location of communication for students and staff to understand class offerings, dual credits, certifications, etc.

Region 9: Southeastern Indiana • Produce promotional and communication projects about skilled

•

trades utilizing Eco 15 and Dream It Do It Champion network Research the disconnect between students, parents schools, and CTE

Region 10: South Central •

•

•

Organize business/industry tour days for all counselors in Region 10 from June 2014 to June 2015 Provide informational and promotional presentations highlighting CTE to be conducted at the Career Center for Region 10 counselors Establish a comprehensive Work Ethic Certificate program in Greater Clark County Schools and Prosser Career Education Center to be completed and ready for implementation in 2016-2017

Region 11: Southwest • Develop vignettes featuring CTE stories • Develop and air news feature stories six times per year *Region 2: North Central Indiana - Region 2 did not submit a grant proposal.

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47

CONSTRUCTION FEATURE

Financial Partners for the Notre Dame Turbomachinery Project Notre Dame $7.5 million General Electric Co. $13.5 million The City of South Bend $4.4 million The State of Indiana (Indiana Economic Development Corp.) $600,000 in training grants and up to $2 million in infrastructure assistance Great Lakes Capital Upfront capital of $6 million to construct the facility Indiana Michigan Power $2 million for a new substation to provide the power needed to operate the facility Source: University of Notre Dame

48

Turbocharging the Economy New Notre Dame Turbomachinery Facility Bringing Economic Development to South Bend

By Nick Dmitrovich

T

he University of Notre Dame, and five additional public and private partners, announced plans to establish a $36 million project that will stand as the nation’s most advanced research and testing facility for massive gas turbine engines used by commercial and military aircraft, power plants and the oil and gas industry. Notre Dame plans to house five test facilities, a machine shop and a supercomputing center at the new facility to conduct research and test the performance of new gas turbine engine technologies.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Dubbed the Notre Dame Turbomachinery Facility, the new research center will occupy 25,000 square feet of a new 43,000 building in South Bend’s Ignition Park.

Construction will begin this summer and is expected to be completed by March of 2015, and the space is expected to be fully operational by July of 2016.

William G. Gilroy, Assistant Director for the Colleges of Engineering and Science, explained that the facility is expected to create approximately 60 new high-tech jobs for the South Bend Community with an average salary of $79,000 by 2018. An additional 60 jobs are expected through the growth of local suppliers to support the facility’s need for precision manufactured components. It is also anticipated to generate up to $15 million in direct revenue for its customers and is expected to attract suppliers to the South Bend area as well as existing Michiana companies to support its needs.

“The aerospace industry is reaching new heights in Indiana,” said Governor Mike Pence. “Universities like Notre Dame and others across the state are providing avenues for discovery, proving that the sky is the limit in Indiana when it comes to bringing a big vision to life. The next great technological innovation could come from the mind of a Hoosier, highlighting for the world the full range of possibilities when investing in a state that works.”

“This venture will be a cutting-edge research and testing facility for the turbine engine industry as well as a tremendous economic driver for our region,” said Rev. John I. Jenkins, C.S.C., the University’s president. “Notre Dame is grateful to our partners for their support of this project and excited about all that it will mean to our University, the city and state, the industry as a whole and our nation.”

Notre Dame will contribute $7.5 million to the project. Other partners are the General Electric Co., which has committed $13.5 million to fund research and testing for five years; the city of South Bend, which is contributing $4.4 million inclusive of equipment, land for a new power substation and tax abatements; the state of Indiana, through the Indiana Economic

Development Corp., which is providing up to $600,000 in training grants and up to $2 million in infrastructure assistance; Great Lakes Capital, which is providing upfront capital of approximately $6 million to construct the facility; and Indiana Michigan Power, which will be investing $2 million in a new substation to provide the considerable power needed to operate the facility’s multiple test cells.

Notre Dame’s Office of the Vice President for Research provided some details on the unique features of the Turbomachinery Facility. The new building will have five test rigs for evaluating turbomachinery, including a multistage turbine test rig as the highlight. This technology will take previous work to new heights by testing engine components at pressures and temperatures higher than any that exist at current U.S. university facilities.

It also will be used to advance current working relationships with both govern-

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

ment sponsors and all manufacturers of gas turbine engines. There will also be capability for advanced manufacturing and usage of new advanced materials provided in collaboration with the suppliers supporting the facility. The facility will also have supercomputing capabilities to perform advanced turbomachinery simulations.

Indiana is continually recognized as a state that promotes and supports the manufacturing industries. As more and more aerospace manufacturers begin to utilize Indiana for their operations, the state’s aeronautic production future seems to be on the rise. Notre Dame’s new turbomachinery research facility will be a focal point of this growth in the future, as new technology emerges from one of the most prestigious universities in the state. It’ll be exciting to witness innovation take place right here at home, and transcend directly into industry.

49

CONSTRUCTION FEATURE

Hoosier Giant Grows Taller

Work Begins on Cummins’ New Advanced Research and Development Facility

By Nick Dmitrovich

C

ummins Inc. (NYSE: CMI), an Indiana-born, Fortune 500 company, has recently begun construction of a new global technical center office for the High-Horsepower Engine Business in Seymour, Indiana.

The company announced that they will be investing $219 million in Seymour to add new warehouses, additional engineering and production test cells, a cylinder block line and parking for employees. The company will also construct a new office building that will house up to 500 associates and a new manufacturing facility for after-treatment components for high-horsepower engines. Upwards of 290 new jobs will be created in Jackson County by 2015.

“Over the past three years, we have seen nearly $500 million in new promised industrial investment in Jackson County, which is having a positive effect on overall quality of life issues in Seymour including new housing and other projects,” said Jim Plump, Executive Director of the Jackson County Industrial Development Corporation.

“And in regard to Cummins,” Plump said, “It is an understatement to say this is a tremendous project for our area. Cum50

Construction Partners for the Cummins High Horsepower Facility General Contractor: F.A. Wilhelm Construction Co., Inc. Architect: CSO Architects, Inc.

mins’ decision to locate their technical center for high horsepower in Seymour will bring with it many engineering positions and it comes on the heels of their decision to build and assemble their largest engines here. These projects are going to be creating many new, high-paying jobs.”

Seymour Mayor Craig Luedeman said, “We are proud to be able to partner with Cummins and the State to make this exciting project a reality. Cummins has been an outstanding partner as we work to grow our community.”

The Seymour Technical Center will be co-located with the Seymour Engine Plant in close proximity to 22 test cells dedicated to engine research and development work for mining, rail, oil and gas, marine, power generation and industrial applications.

The Seymour Technical Center will become the global focal point for Cummins engine development and low-emissions technology for 19- to 120-liter engine platforms. Close working connections will be maintained with the worldwide Cummins engineering community at other highhorsepower sites in the United States, United Kingdom, China and India.

“The completion of the new office building for the high-horsepower technical center will represent an important step forward in the transformation of the Seymour site to an industry-leading facility for engine design, testing and manufacturing with world-class credentials,” said Ed Pence, Vice President and General Manager of Cummins HighHorsepower Engine Business.

“The additional capability at Seymour in terms of research and development will power Cummins high-horsepower business ahead by introducing new diesel engines reaching over 5000 hp (3728 kW) and with best-in-class low emissions technology,” added Pence.

Cummins is planning to start up production of the QSK95 engine this year, which will be a significant milestone for the company. The QSK95 is the most powerful engine ever built by Cummins, and is intended to be initially used for locomotive and power generation purposes. The engine can produce up to a 4400 horsepower (3281 kW) output.

Additionally, the Cummins has announced that considerable progress has been made with “ultra-low” emissions

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

www.correctconstruction.com

Tribune Photo by Whitney Riggs. From L to R, Councilman Lloyd Hudson, State Rep. Jim Lucas, VP and General Manager for Cummins Inc. Edward Pence, VP for Cummins Inc. Jim Trueblood, Councilman Dave Earley, Mayor Craig Luedeman and Council President Jim Rebber

technology throughout the high-horsepower product line. By using their newly developed Selective Catalytic Reduction (SCR) exhaust aftertreatment technology, Cummins is helping to minimize environmental impact created by their engines’ exhaust output.

The design of the new Seymour Technical Center is intended to foster collaboration, as the various high-horsepower divisions of Cummins will now be centralized in one location consisting of existing and newly recruiting employees. The new facility boasts a whole array of state-of-the-art technology for the engineers who will be working there. Work space includes 22 engineering test cells, 12 of which were recently installed with up to 7000 hp (5220 kW) capability, sized for generator sets and power modules as well as engines.

The test-cell work will focus on specific aspects such as fuel efficiency, engine endurance under high load factors, or near-zero emissions measurement. Additionally, engines can be tested on every type of diesel and natural gas fuel, including fuel blends.

“The new Seymour Technical Center will create a highly productive working environment to both foster innovation and accelerate our development programs so that we can bring new products to market faster for our customers,” said Jim Trueblood, Vice President of Cummins High-Horsepower Engineering.

“The state-of-the-art test cells and laboratories we now have in place at Seymour bring a new capability by replicating the realworld duty-cycle conditions of equipment to a level of precision not seen before. That means we can precisely calibrate the engine from a much earlier point in the development process for specific applications,” added Trueblood.

Additionally, the new building will set new standards for a sustainability and eco-friendly operation. Features such as passive solar management for daylight control and active energy-efficiency management will reduce the carbon footprint of the building to the lowest possible levels. The latest ergonomic designs are used throughout the workspaces and for high-tech audiovisual capabilities.

The production capabilities and innovative ideas that will be taking place at Cummins’ new facility will bright about some bright potential for Indiana’s manufacturing industry. As more and more companies continually choose Indiana for their operations, the bar is raised ever higher for our manufacturing-intensive state.

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51

WELL BEING

The Value of Wellness

How Workplace Wellness Programs Can Impact Your Bottom Line

By Laurie Wehner-Evans, Director of Community and Corporate Wellness, Porter Health Care System

W

ith studies over the last several years showing how increased health care costs and decreased productivity are impacting corporate bottom lines, it’s time to take action and for Indiana companies to look at their rising benefit costs as a significant concern.

We know that poor health habits and unnecessary medical care costs consume portions of your corporate resources as well as the employee paycheck. An investment in your employees’ health through a workplace wellness program can lower health care costs or slow the increase in providing that important benefit. In fact, employees with more risk factors, including being overweight,

52

smoking and having diabetes, cost more to insure and pay more for health care than people with fewer risk factors.

The ultimate goal is to raise awareness of the benefits of good health and see a positive return on investment.

This begins with the development of an employee wellness program to raise awareness so employees with fewer risk factors remain in a lower-cost group; then by encouraging employees with more health risk factors to make lifestyle changes, seek help for emotional and physical health issues, and improve their quality of life and lower costs. The payoff in dollars as well as in quality of life can have a big impact on your company’s bottom line.

When it comes to productivity, it’s also apparent that healthier employees are more productive. This has been demonstrated in factory settings and in office environments in which workers with workplace wellness initiatives miss less work. “Presenteeism,” in which employees are physically present on the job but are not at their most productive or effective, is reduced in workplaces that have wellness programs. It also reduces absenteeism because healthier employees miss less work. It’s proven – companies that support wellness and healthy decisions have a greater percentage of employees at work every day. Good health practices also have a trickle down affect and frequently carry

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

over into better family choices. In turn, your employees may miss less work caring for ill family members as well. As you can see, the cost savings of providing a wellness program can be measured against reduced overtime to cover absent employees and other aspects of absenteeism.

And who doesn’t want to be known as the best place to work?

A worksite wellness program improves employee morale and enhances the organization’s image. Companies that care about their employees’ health are often seen as a better place to work. Those companies also save money by retaining workers who appreciate the benefit of a wellness program and have an edge-up on attracting new employees in a competitive market.

Now let’s talk chronic diseases related to healthcare costs. According to the Centers for Disease Control and Prevention (CDC), chronic diseases such as heart disease, stroke, cancer and diabetes are among the most prevalent, costly and preventable of heath problems. In a report by the CDC entitled Indiana: Burden of Chronic Diseases states that access to “ The ultimate goal is to high-quality and affordraise awareness of the benefits of good health able prevention meaand see a positive return sures (including screenon investment.” ing and appropriate follow-up) are essential steps in saving lives, reducing disability and lowering costs for medial care. The report compares Indiana with the United States on the five most common causes of death (disease of the heart, all cancers, stroke, chronic lower respiratory diseases and unintentional injuries). In every comparison, Indiana fares worse than the national average indicating a higher incidence of death than throughout the United States.

Chronic diseases also have a direct correlation to obesity – which is called a gateway condition because it leads to heart disease, diabetes and hypertension. When looking at risk factors and the prevalence of overweight and obesity, 63% of adults in Indiana were overweight or obese (2007). When outlining preventive measures and screenings for early detection for cancers, the report states that 28% of women in Indiana aged 40 years and older reported not having a mammogram in the last two years; and that 60% of deaths from colorectal cancer could be prevented if persons aged 50 and older were screened; but only 44% of Indiana residents in that age group reported ever having a colonoscopy screening (2006).

(Source: http://www.cdc.gov/chronicdisease/states/pdf/indiana.pdf) The relationship between health risks and health costs has been well documented. The reality is that Indiana employers are already paying for these chronic health-related issues and risk factors and it’s hurting their bottom line. A systematic review of 56 published studies of worksite health programs showed that well-implemented workplace health programs can lead to 25% savings on absenteeism, health care costs, workers’ compensation and disability management claims costs. (Source: National Center for Chronic Disease Prevention and Health Promotion.)

Now is the time for Indiana employers to make a good health investment in their employees’ health to lower overall healthcare costs, improve productivity and see a positive return on investment.

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53

LOGISTICS

Funding the Delivery of Indiana’s Logistics Future

By David W. Holt, Vice President, Operations and Development, Conexus Indiana

F

or decades, Indiana has worn its badge as the “Crossroads of America” with quiet pride and dependable efficiency, leveraging our central location and appreciable assets to maintain our position in the forefront of the logistics industry.

But with explosive growth in the industry on the horizon, maintaining our position is no longer a satisfactory strategy.

Freight movement in the United States is expected to double in the next 20 years, and Indiana’s logistics companies are committed to seeing our state grow and solidify its leadership advantage.

We made giant strides toward that goal with the 2010 publication of A Plan for Indiana’s Logistics Future, the statewide strategic plan developed by the Conexus Indiana Logistics Council (CILC) forum of industry executives. The plan was a blueprint for transforming the “Crossroads of America” into a global logistics magnet and, thanks

54

to dedicated partnerships of industry, academia and government, many of its goals have been achieved.

CILC is honored that many of our members were active participants on Gov. Mike Pence’s Blue Ribbon Panel for Transportation Infrastructure, and that Conexus Indiana Board member and CILC Vice-Chairwoman Cathy Langham served as its cochair along with Lt. Gov. Sue Ellspermann.

Many key objectives set forth in our second statewide strategic plan – released earlier this year under the title Delivering Indiana’s Logistics Future – are among the goals adopted by the Panel. Specifically, the 2014 strategic plan identifies goals and objectives in infrastructure, public policy, public awareness and workforce development.

The 2014 plan also offers unambiguous recommendations for federal and state financing that we believe are essential to the future of Indiana’s aviation, maritime,

rail and roadway transportation industries and, by extension, to the state’s economic growth. There are four principles that are included in these recommendations – indexing to inflation all modes of transportation, ensuring funding steams are user fees, ending any and all revenue diversions from transportation-related activities from their original intended funding purpose, and creating new dedicated funds with lockboxes to protect the funds collected from user fees, indexing and the original funding source.

The CILC explicitly calls for indexing funding sources to the rate of inflation from the previous year for aviation, highway and waterways fuel taxes as a short-term funding solution. CILC also calls for the end of any and all diversions from dedicated federal and state taxes for aviation-, highwayand waterway-related activities to uses other than those for which the taxes were

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

created. We strongly urge that highway fuel and sales taxes should be used for building and maintaining highways and bridges in Indiana, that airports should be the only beneficiary of sales taxes on aviation-related activities, and that IWTV and HMTF monies should be reserved for the construction and maintenance of navigable waterways. These are user fees and should be treated as such.

Similarly, the Council and its 2014 plan, Delivering Indiana’s Logistics Future, call for both federal and state lockbox protections where funds are driven directly into these programs and not to the general Federal or State General Revenue Fund.

Such protection would ensure that funds generated for specific transportation and logistics purposes would be reserved for those purposes only.

At the federal level, lockboxes would protect from the General Revenue Fund: • Airport and Airways Trust Fund, including taxes on domestic passenger tickets, domestic passenger flight segment tax, tax

At the state level, lockbox funds would protect from diversions: • A newly-created Aviation Account, including funds from the aircraft license excise tax and sales taxes on aviation-related activities.

• Motor Vehicle Highway Account, including state funds generated from the gas tax, vehicle mileage tax or state sales tax on fuel.

• A newly-created Waterways Account, including state sales tax on

With four major funding principles – indexing, user fees, end to diversions, and the creation and protections of federal and state lockbox legislation with new dedicated accounts – as the central focus of its infrastructure funding education, Delivering Indiana’s Logistics Future also identifies and counsels a number of short- and long-term solutions to infrastructure funding that respond to the changing economy and encourage funding mechanisms that ensure the state’s ability to adequately underwrite logistics innovations and technologies.

The CILC applauds and supports Gov. Pence’s Blue Ribbon Panel on logistics, and commits to continuing its expertise and counsel to ensure the “Crossroads of America” remains an honor Indiana wears with pride.

on flights between the continental U.S. and Alaska and Hawaii, frequent flyer taxes, domestic cargo/mail taxes, general aviation fuel taxes, commercial aviation fuel taxes, and aviation fund user fees.

• Highway Trust Fund, including federal funds generated from fuel taxes, vehicle mileage taxes or other highway fund user fees.

• Inland Waterways and Harbor Maintenance trust funds, including all diversions currently in place.

waterways-related activities on Ohio River- and/or the Great Lakes-related activities. These funds would be restricted to dredging, dredge material disposal and breakwater maintenance.

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southlakenissan.com 55

WORKERS COMP

Changes Impacting Your Workers Compensation Insurance

By Duane Schroeder, CPCU, WCP, Vice President, Indiana Compensation Rating Bureau

N

ew changes in worker’s compensation regulations have come to Indiana this summer, several of which will have an impact on many different types of businesses. Familiarizing yourself with these changes will be essential to ensure that your company is getting the most out of its worker’s comp policies.

Let’s begin by taking a look at the most significant of these changes: House Enrolled Act 1320 The most significant change to Indiana’s workers compensation system for 2014

Employer Costs All States % of total compensation (wages & benefits) Source: USDOL BLS “Employer Costs for Employee Compensation March 2013 Table 1, released 06/12/13

9%

9.0%

8%

arose from House Enrolled Act 1320 which was signed into law by Governor Pence on May 11, 2013.

Highlights •

•

•

•

Medical fee schedule - reimbursement at 200% of Medicare, effective July 1, 2014 Repackaged drugs - prices limited to average wholesale price, effective July 1, 2013 Benefit increases phased in over 3 years Impact on WC system costs decrease of -3.7%

Category

Medical

Indemnity

Country

58%

42%

Indiana

76%

24%

Health 2001

7% 6%

Prior to this change, Indiana medical reimbursement rates were guided by the somewhat ambiguous definition of usual and customary. This is an important development as the medical component of workers compensation insurance comprises 76% of all claims’ payments in Indiana.

6.6%

6.8%

7.0%

5%

2013

7.0% 5.6% 4.7%

4% 3%

3.5%

2%

2.5%

2.4%

1% 0%

1.5%

Insurance

Paid Leave

SS/Medicare

Retire/Save

Suppl Pay

1.4%

0.5% 0.8% Work Comp Unemployment

Senate Enrolled Act 294 Also effective July 1, 2014, SEA 294 allows any executive officer of a for-profit corporation to exclude himself/herself from workers compensation coverage. Previously, only a sole officer had this option. It works the opposite for executive officers of nonprofit and municipal corporations. By Statute, NFP’s Rate Changes for 2014 - Indiana advisory base rates have changed little over the past 10 years: executives are not included under Year Change Year Change insurance policies unless they 1/1/2005 3.2% 1/1/2010 -1.7% specifically elect to be included.

1/1/2006 1.9% 1/1/2011 +1.7% State Form 36097 (R6/7-13) must 1/1/2007 -3.1% 1/1/2012 +2.6% be filed with the Workers 1/1/2008 0.4% 1/1/2013 +5.0% Compensation Board under 1/1/2009 -3.4% ​1/1/2014 ​-7.7% either scenario.

Ten years -1.8% 56

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

So why haven’t your policy premiums

in the calculation.

By giving greater credibility to larger

followed this pattern? For one, the rates are

The rules and formula include methods

losses, in general, both credits and debits

multiplied by your total payroll, so as payroll

to limit the impact of any one severe accident

will become larger. For more details on these

rises so do policy premiums, all else being

on the EMR. One such method is to separate

and other topics related to workers compen-

equal. Secondly, Indiana has a competitive

any large claim into two components; prima-

sation insurance, consult the ICRB website

rating law for workers compensation, enact-

ry loss amount and excess loss amount. All

at www.icrb.net.

ed January 1, 1990. This means the Bureau

of the primary loss amount is included in the

files “advisory” rates with the Department of

calculation, but only a portion of the excess

Year

Split Point

Insurance. “Advisory” means that a carrier

amount is used. For more than 20 years prior

2012 and Prior

$5,000

has a choice: it can use the advisory rates,

to 2013 the split point between the two was

2013

$10,000

or file its own rates with the Department.

$5,000. Because the average lost time claim has more than tripled during this time, the

2014

$13,500

Many carriers use the advisory rates. Some use rates greater than the advisory rates, and

split point was changed beginning in 2013, to

2015

$15,000

others will use rates below the advisory rates.

maintain the formula’s integrity.

Subsequent

Based on Inflation

Also, market forces come into play. A carrier with favorable results on their Indiana Workers Compensation book of business likely will compete more intensely for your business than a carrier with unfavorable outcomes. The appetite for workers compensation business typically is cyclical. Although it has tightened up in the past couple of years, most signs point to a softening market beginning at the end of this year and into 2015.

How Do Indiana Rates Compare?

Indiana enjoys the second lowest rates in the nation. The state of Oregon updated its report in October 2012 titled “2012 Oregon Workers’ Compensation Premium Ranking Summary.” From highest to lowest, Indiana ranked 50 out of 51 jurisdictions with an index rate of $1.16. “Loaded” rate indices range from a low of $1.01 in North Dakota to a high of $3.01 in Alaska, with a median value of $1.88. As a percentage of total benefit costs, Workers Compensation costs comprise about 1.4% of total compensation nationally: Experience Rating The Indiana Compensation Rating Bureau promulgates Experience Rating Modifications (EMR) for all but the smallest Indiana employers. Insurance carriers are required to use the EMR factor in their premium calculations. Those employers with favorable claims’ records will develop a credit EMR (e.g., .85), and those with worse than average experience will generate a debit EMR (e.g., 1.20). Typically, three years of data, not including the most recent year, are used SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

57

LIFELONG LEARNING

Developing Indiana’s Entrepreneurial Ecosystem Four-site Purdue Research Park, Discovery Park support economic growth

By Steve Martin, Writer/Publicist, Purdue Research Foundation

T

hroughout Indiana, institutions of higher learning have taken the initiative to translate discoveries made in the laboratory into products and services for the public, industry or government. Several have built or are building incubators where startups that license university-developed innovations can grow, and thereby strengthen the state’s economy.

Among the oldest of these is the Purdue Research Park, a four-site network of business incubators that stretches from the northwest region of the state to the southeast along Interstate 65. Purdue Research Foundation established the first location in West Lafayette in 1961. The Foundation also established, and currently manages, the other sites in Merrillville (opened in 2005), Indianapolis (2009) and New Albany (2008).

The investment in constructing almost 60 buildings with office and laboratory spaces throughout the network has paid off for local economies, which have become more diverse as high-tech businesses establish themselves in several sectors including agriculture, defense, energy, information tech-

58

nology and medical devices. About 4,500 people work in the more than 260 companies in the park network, another benefit to local economies.

The benefits of these incubation centers extend throughout the state. An independent study conducted by Thomas P. Miller and Associates reported that $256 million were invested in Park facilities and infrastructure from 1999 to 2010. From this investment, the returns are as follows: • $1.3 billion annual economic

impact on the state.

• $49 million in Federal R&D grants for

small businesses brought to the state.

• $48 million contributed to state and local taxes.

• $63,000 average annual salary for employees of Park-based companies,

which is 65% higher than the state average.

Another economic development engine based at Purdue is Discovery Park, a group of large-scale centers focused on interdisci-

plinary research. The centers bring together more than 1,000 Purdue faculty, staff and graduate students from several academic disciplines to work together on issues of worldwide concern. Since being launched in October 2001 with a $26 million grant from Lilly Endowment, Discovery Park has surpassed the $1 billion milestone for generated sponsored research, private gifts and endowments.

Other highlights of Discovery Park, which will add two new research buildings this academic year, include: • 40 strategic global partnerships signed.

• 57 startup companies seeded and/or assisted.

• 426 invention disclosures, patents,

licenses/options on intellectual property facilitated within the park.

• 211,500 hours of work provided

by 540 students at 190 Indiana

startups through its Interns for Indiana program.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

Constructing buildings for world-class faculty, staff and students to make discoveries in the labs is just one means of developing a strong entrepreneurial environment to strengthen the state’s economy. Leaders at Purdue University, Purdue Research Foundation and Purdue Office of Technology Commercialization has implemented new policies and established new programs and resources to encourage innovators to become entrepreneurs: • Purdue Foundry, a business incubator to help Purdue faculty, staff and students create startups.

• Student-managed Anvil, a business

incubator to support student generated startups.

• Discovery Park Partners, a business

facility for industry and Purdue

research partnerships.

• Deliberate Innovation for Faculty

program that provides mentoring

from successful Purdue faculty entrepreneurs.

• Silicon Valley Boilermaker

Innovation Group, which leverages

Silicon Valley Purdue alumni to

provide mentoring for Purdue’s

new ventures.

• Creating the $12 million Foundry

Investment Fund to support life

sciences startups originating from

Purdue innovations.

• Changing intellectual property policy

so Purdue student inventors own

their innovations.

• Establishing an express license to

expedite the technology transfer process.

• Creating an SBIR option to give faculty

and staff the ability to option intellectual

property that received financial support

from an SBIR/STTR federal grant.

• Extending access to the Artisan and

Fabrication Lab so more faculty, staff and

students can build their prototypes.

• Launching an innovation and entrepreneurship landing page to drive

interested innovators to the right entrepreneurial resources online.

• Publishing a Purdue Innovator Startup

Guide to provide IP protection guidance,

startup advice and other resources.

The combination of building the infrastructure, establishing new policies to protect, license and market Purdue intellectual property, and encouraging innovators to commercialize their work has led to a record year at Purdue in the 2014 fiscal year.

• 24 startups based on Purdue IP were launched, tripling the previous

year’s number.

• 146 U.S. and global patents were issued, a 30 percent increase over

the previous year.

• 120 licensing deals were signed, an

increase of more than 20 percent over the previous year.

Institutions of higher education throughout the state are strengthening the national image of Indiana as one of the best places in the nation for innovative people to discover, develop and deliver products and services to the world. Not only do these developments – including those originating from Purdue – promise to benefit the state’s economy long-term, but they also will make people’s lives happier, healthier and more productive.

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59

REAL ESTATE

Ready for Development Energy Park in Greenfield, IN, Earns “Shovel Ready” Status

By Nick Dmitrovich

T

his summer, a new site in Greenfield, IN, received “Shovel Ready Silver” status from the Indiana Office of Community and Rural Affairs (ORCA), meaning that the location is primed and ready for economic development. Titled “Energy Park,” the site encompasses 166 acres of land located about 15 miles east of downtown Indianapolis in Hancock County, strategically within a mile of Interstate 70 and not far from the Indianapolis Regional Airport.

Indiana recognizes three tiers of readiness: Shovel Ready, Shovel Ready Silver, and Shovel Ready Gold. The base level defines boundaries with a clear title, establishes a price, demonstrates executive level local government support, defines utility capacity, and provides documentation such as Phase I environmental assessment, ALTA, topographical, property layout, and plat maps. Shovel Ready Silver builds upon those attributes by maintaining documentation that is less than one year old, has proper zoning, and has infrastructure built to the property. Currently, the Energy Park has all utilities installed.

The goal of the Shovel-Ready program is to expedite the business location process by making sites more attractive to companies who are looking to relocate or expand.

“Through Shovel Ready, OCRA has helped to establish a portfolio of development-ready sites across the state,” said Bill Davis, Executive Director at the Office of Community and Rural Affairs. “Greenfield and Hancock County have taken a big step forward with this designation because attracting business development is one of the keys to community prosperity. We recognize the potential of Energy Park and are excited to begin marketing it to those who can develop it as an even greater asset for Hancock County.”

“Having Shovel Ready certified land in

60

our community is a critical component to the University Loft is a furniture company that Site Description institutions and overall strategy for Hancock County,” said No- sells primarily to educational 166 Acres Available * $54,000/Acre lan “Skip” Kuker, CEO of the Hancock County government facilities, and Tsuda Industries  Energy Park, an East Indy Regional that areCenter key components Development Economic Development Council. “Hancock manufactures parts  such Locatedas at drives CR 300 Nand and chassis.

CR 400 W County and the Energy Park site continue our for automobiles, Greenfield, Indiana.

Kuker saidthat the Hancock County Ecodesire for development ready land.”

Zoned IBP Council’s goals for by the “This is the third “Shovel Ready” site nomic Development  Certified “Shovel Ready Silver” State of continue Indiana attracting manuin Hancock County,” Kuker said. “With 166 Energy Park are to  Duke Energy Site Readiness Certification acres we hope that this has a large poten- facturing centered commerce to the region.  Suitable for high energy user “This site is being considered for high tial economic impact in our community.

The location is fantastic. We have a huge energy needs as it is very close to a Duke workforce available and its access is great Energy substation. We are seeking to attract This information has been secured from sources we believe to be reliable, but we make no representations or warranadvanced manufacturing to complement the to Interstate traffic.” ties, expressed or implied, as to the accuracy of the information. References to size or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Energy Park has also earned Duke En- other new industry in the area,” he said.

All in all, the Greenfield community and ergy’s Site Readiness Certification, meaning it was one of the few sites to be selected for the Hancock County Economic Developadditional funding options from Duke Ener- ment Council are quite enthusiastic about gy to help promote the location. A site must all of the potential surrounding the Energy already be deemed “Shovel Ready” in order Park, and the corresponding development to receive the certification, and the distinc- of future sites that this project might foster.

“As an economic development profestion provides funding and expertise to help communities identify, assess, improve and sional I see the need to have as much comincrease awareness of industrial sites in pleted for a client that might be looking at the Duke Energy Indiana service territory. the area,” Kuker said. “Two years ago our Between three and five projects may be se- community had only one certified shovel ready site, we now have three, and working lected for this program annually.

“For many years, Duke Energy has worked on three more with potential for even further enthusiastically with the communities we future projects.”

The additional “Shovel Ready” sites in serve to attract new industries and businesses to Indiana,” said Bart Beal, Duke Energy In- Hancock County that Kuker referenced are: diana Vice President of Community Relations • “Progress Park II” - Hancock County and Economic Development. “This program certified the site with over 200 acres in works to improve a community’s competitive January of 2014, and it’s fully served edge by giving more certainty for businesses by all utilities in locating and developing projects quickly.”

• “Thompson Property” – 80 acres of Additionally, Duke Energy has deemed land that the county just submitted Energy Park suitable for any high-energy use for approval, should be certified in industrial services.

about 60 days In recent years, the area surrounding the • “Barr Property” - Hancock County is Energy Park has become a vibrant manu- working on certification for this site, and it’s expected to be complete by facturing hub for Hancock County with the the end of the year, with 156 acres activity generated by the existing University

along Interstate 70 Loft Company and Tsuda Industries facilities. www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

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Iron Workers Local #395 / 219-763-7900 / www.ironworkers395.com Construction Advancement Foundation / 219-764-2883 / www.cafnwin.org SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com NWI Contractors Association / 219-764-2883 / www.nwicontractors.org

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MARKETING

Making Brand Impressions with Holiday Gifts `Tis the Season.

Holiday Gift Giving.

By: Jennifer Muha, Digital Dynamo, Diversified Marketing Strategies

W

ith the Corporate gift-giving season upon us, it is time to kindle your generosity. Gift-giving presents the perfect opportunity to build your company’s brand and make a lasting impression. Branded products as gifts can offer an abundant return on investment and brand-building is important for all types of businesses. Branded products are actually useful; these items get used regularly which results in a higher brand recognition and recall than other advertising methods such as TV, radio, or magazines.

Advantages of giving branded products as gifts, goes beyond the instantaneous gratification of gift-giving. Branded products increase brand visibility with clients,

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vendors and within the community. Brand visibility creates awareness which helps promote your business while potentially attracting new clients. According to the Promotional Products Association, branded products evoke a response rate three times higher than TV, print, or online ads.

Gift-giving is a great way to build and strengthen relationships. Clients and vendors alike have daily interactions with companies, and most of those interactions are routine. Out of the ordinary interactions stand out in our minds, giftgiving is not an ordinary interaction and can facilitate the start or continuation of a mutually beneficial relationship. A positive interaction, such as receiving a gift,

also makes a lasting impression.

Improving brand loyalty can be done with a gift of appreciation. Showing appreciation should be a key business initiative. Many times companies focus on showing appreciation to new customers, which is smart, but the reach should also be extended to loyal customers and stagnant or recently lost customers. It will also prove wise to show appreciation to vendors, suppliers and employees as well.

These key people become brand ambassadors for your company, and according to the 2013 Edelman Trust Barometer, 41% of consumers believe that employees are the most credible source of information regarding a business.

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

You may be thinking to yourself, “This is all useful information, but Halloween has not even passed us by. I don’t have time or just don’t want to think about the holidays quite yet.” Actually, now is the time to buy. Many top products sell out or need to be backordered early on; this can delay your order and greatly narrow your options – especially when on a budget. Many times ordering during September and October can save money because vendors offer early bird pricings and specials.

Holiday parties are held starting in November and many take holiday vacations in December, this makes being prepared and having gifts ordered now a priority.

“The holiday gift giving grind isn’t without reward. It really is an investment in your company which is critical to maintaining and reinforcing relationships. While solidifying and strengthening bonds with loyal clients, you are also able to re-establish or develop new business relations,” said Tineka Wilson, Executive Executor at Diversified Marketing Strategies.

No matter what your budget, there is a gift option out there for you. According to the Advertising Specialty Institute, Promotional Calendars can generate 333 brand impressions for every dollar spent. A 2010 Global Advertising Specialties Impressions Study stated that calendars generate 10 daily brand impressions.

How many offices have you walked into that have a calendar hanging somewhere in this space? This is a highly utilized item.

“Some of the hottest new branded items are power banks and Bluetooth speakers.

Both of these items provide the recipient with high usability and the company with high brand impressions,” shares Tineka Wilson of DMS. These items are cutting edge and will be viewed favorably by the recipient and garner a second look by passers-by. The power bank is an external battery that can be carried and used to charge up any USB compatible device, especially cell phones, without access to an outlet. Bluetooth speakers are wireless and can be used anywhere to listen to music, videos and conference calls.

Corporate gifts can be given to many, in fact, the more the merrier! Mostly, clients and customers are the main focus when giving out gifts, but you can add employees, vendors and suppliers, and other strategic partners to that list. Many times when larger orders are placed for banded items, a discount can be gained.

While all this may seem overwhelming,

especially at a period where time seems scarce, there are some tips to aid your gift giving quest:

• Get a head start on building client, vendor and employee lists for tallying and grouping gift orders.

• Work with a company that can help you choose the correct gifts that make your company stand out, suit the recipients, brand your products and are mindful of your budget.

• Make the best use of your budget by ordering in September/October to get early bird pricing.

• Now is the time to purchase. Do not wait until you see holiday decorations that remind you to purchase.

Take the perfect opportunity to build your brand and make a lasting impression by giving a corporate gift to a customer, vendor, supplier and an employee. Show appreciation, strengthen relationships and increase brand visibility with one single gesture. Has this kindled your gift giving spirit? `Tis the season!

HOOSIERSTRONG

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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

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

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ECONOMIC DEVELOPMENT

Never Underestimate the Little Guys Hoosier Small Businesses Make a Large Impact on Indiana’s Economy

Indiana Employment

by Size of Firm - 2011

By Nick Dmitrovich

15%

100-499 employees

16%

53%

20-99 employees

16%

500+ employees

1-19 employees

Source: SUS3

T

hough they may be small in size, Indiana’s small business operations have a major impact on the state’s economy each year. Recently, the Office of Advocacy, an independent office within the U.S. Small Business Administration (SBA), released a report entitled “Small Business Profiles for the States and Territories,” an annual analysis of each state’s small business activities. The profile includes information on the number of firms, employment, demographics and other topics using the most recently available government data; and reflects a trend in Indiana that shows Hoosier small businesses truly support a substantial portion of the state’s overall business profile.

By SBA standards, businesses that have net income of less than $5 million annually (after taxes) and have less than $15 million net worth are defined as small businesses.

“Indiana’s small businesses contribute so much to the state’s economy,” said Dr. Winslow Sargeant, Chief Counsel for Advocacy with the SBA’s Office of Advocacy. “Rep 64

resenting 47.4 percent of the state’s private workforce, no one can doubt the significant role small businesses play in our economic landscape. I hope our state and national leaders will continue to recognize the importance of the American entrepreneur and utilize today’s research to move forward constructive policies for America’s financial foundation—our small businesses.”

Darrell Voelker, Director of the Harrison County Economic Development Corporation, said, “Since Indiana is a manufacturing state with many large employers, the impact small businesses make on our economy can sometimes be overlooked. But if we consider the fact that more than a third of all Indiana employment comes from small businesses and these businesses are so diverse in what they do, they keep our economy going during tough times. Harrison County is fortunate to have about 1,000 small businesses in our community and they collectively employ more than 10,000 people.

This rural community clearly recognizes the

benefits from Small Businesses every day.”

“Small businesses are vital to Indiana communities,” said Erica Dombey, President and Executive Director of the Regional Development Company, based in Valparaiso, IN. “Not only do they create new jobs, but they increase tax base via investment into real estate and equipment. At the RDC, we have seen a significant influx over the past year of new business starts as well as new construction projects and major renovations. These businesses are putting money back into the community.”

Some of the key finds of the Small Business Administration’s report stated that: • Indiana has 493,138 Small Businesses • There are 106,249 Small Businesses with Employees in Indiana • 386,889 Small Businesses without Employees (Nonemployers) • A total of 1,157,117 workers are employed by Small Businesses in Indiana, which accounts for roughly half of the state’s overall private workforce

www.buildingindiana.com | SEPTEMBER / OCTOBER 2014

• Almost all firms with employees in Indiana are small.

They make up 97.3 percent of all employers in the state • Firms with fewer than 100 employees have the largest share of small business employment • The three industries with the most small business employment in Indiana are: manufacturing, health care & social assistance, and accommodation & food services • The state’s private-sector employment increased in 2013 by 1.5 percent, which was below the national average growth rate of 2.1 percent • Most small businesses are sole proprietors. Annual income from sole proprietorships increased 5.5 percent in the 3rd quarter of 2013 and totaled $18.3 billion • Business bankruptcies declined in net from 2010 to 2013, signaling a stronger state economy • A total of 8,239 companies exported goods from the state in 2012. Of these, 6,995 or 84.9 percent were small firms;

they generated about one-sixth (16.4 percent) of the state’s total known export value

2014

Annual

Conference Network with Economic Development leaders throughout the entire state of Indiana.

For more information, or to reserve your spot: The report also contained details about the survival rates of Indiana’s small businesses, which are for the most part in line with national averages. “About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm’s age. Survival rates have changed little over time,” the SBA stated.

Contact Jill Ewing (317)454-7013 jillewing@ieda.org www.ieda.org

Thursday, December 4 through Friday, December 5, 2014 The Alexander Indianapolis

Survival Rates of Small Business Establishments in Indiana Establishments Opened*

Share Surviving Until 2012 (%)

2002

10,311

35.8

2007

10,322

47.1

2010

7,694

67.1

Source: BLS, BED. *Data year ending in March

It goes without saying that with such a tremendous economic impact, careful consideration needs to be given to future legislation and policies that effect Indiana’s small businesses. Though they often take less of the spotlight than larger companies, small businesses collectively encompass such a large portion of Indiana’s labor force that they simply cannot be ignored. Today’s modern entrepreneurs are boosting the state’s economy in continually interesting and innovative ways, and their efforts should be preserved, encouraged, and supported as the state moves forward into its fiscal future.

SEPTEMBER / OCTOBER 2014 | www.buildingindiana.com

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The Last Word Construction Rising from the Recession By: Mike Stavitzke, Director, IKORCC

Despite the ups and downs of our economy over the past five years, Indiana was blessed with large-scale projects in the industrial sector such as B.P. Amoco’s multibillion-dollar renovation of the Whiting refinery and Duke Energy’s new power plant in Edwardsport. These projects were a huge asset in keeping Indiana carpenters employed. Without jobs such as these, the construction industry in our state would have been hit much harder.

Fortunately, the construction industry is starting to rise out of this great recession. One clear indication of this uptick is the residential sector with new home construction up to 950,000 homes a month over its low in 2009 and 2010 of just 500,000. Additionally, the retail sector is beginning to see life again as contractors from across Indiana are reporting increased bidding.

With strong economic indicators pointing toward a bright future for our industry, it is easy to assume that all is well. But, there are many more areas we need to address to help the construction industry reach its maximum potential and employ as many Hoosiers as possible.

The industry faces many challenges.

The first is the threat of subsidized foreign steel being shipped into our markets. The steel industry is an important customer to construction contractors across Indiana so what impacts our steel mills, impacts our industry as a whole.

Secondly, our industry has serious systemic problems with regards to payroll fraud (worker misclassification).

This is rampant in our industry and can be found in every county in Indiana. This practice is illegal and undermines the legitimate contractors in Indiana that provide for many of the carpenters and families that live in our state. When contractors misclassify carpenters as subcontractors, the contractor evades all expenses a legitimate contractor pays, such as workers compensation, unemployment insurance, social security, state and local taxes, etc. The contractors that take advantage of this illegal business model are in every market and sector of Indiana’s construction industry.

This criminal activity means more money in the hands of the contractor at the expense of our cities, schools and workers while undermining the legitimate contractor’s ability to offer quality jobs to local workers.

As Hoosiers, we can work together to ensure that the future of the construction industry in Indiana is bright. To make that happen, we need everyone to get involved by advocating for the legislation that can help our local carpenters, contractors, communities and families prosper.

How can you get involved?

• Talk to your congressmen about steal dumping and our trade policy.

• Advocate for Indiana’s creation of a special task force of law enforcement professionals that specialize in the investiga-

tion of payroll fraud issues. This comes at no cost to the taxpayer and has proven to be effective in many other states. In fact, the state of Washington found that for every dollar spent on enforcement, $8 is returned to the community.

• Report suspected payroll fraud by visiting www.in.gov/dol/2868.htm.

• Support Common Construction Wage legislation that has been in Indiana since the 30s that states that publicly funded projects should not undermine the local economy by paying substandard wages.

They should pay the most commonly paid wage to construction workers in that locality. A recent study of 265 schools built in Ohio, Kentucky, and Michigan showed no statistical difference in cost to the taxpayer when prevailing wages were enforced. In fact, studies show that prevailing wage laws support greater productivity which is a product of high quality training and that when there is no prevailing wage, workers are more likely to be on public assistance, less educated, more transient thusly taking what wages are earned out of the state. The Common Wage Law supports local economies, local workers, and local contractors.

Just like a good construction site, a little planning goes a long way. If we develop our construction practices, the construction industry will continue be an economic engine for our state.

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 2014

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