Building Indiana: July/August 2013

jULY/AUgUST 2013

$6.95

Indiana’s Logistics framework

Inside This Issue 40 | Bridging the Gap 54 | Building for the Future 62 | Hoosier State’s New Marketing Initiative

CRITICAL THINKING. COLLABORATION. COMPLETION. RESULTS.

Construction Management Full-Service Mechanical Contractor Facility Maintenance Safety EPC Support

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Publisher’s Desk 219.226.0300 • 317.632.1410

Keeping Things Moving

www.buildingindiana.com www.buildingindianablog.com

D

id you know that 75% of the nation’s people and businesses are within a day’s drive of Indiana? That singular fact is one of the best features of our state – we’re perfectly suited to conduct business. From the north to the south, Indiana is plugged-in to a vast logistics network.

It’s one of the best selling points used to attract new business operations here – move your business to Indiana and you’ll have access to a wide array of shipping options. We have the number one spot on the list of states with the best highway access, we’re in the top ten states with the most railway miles, and the top twenty for freight shipped by water and air. It’s plain to see why the manufacturing industry loves the Hoosier state; getting materials in is a breeze, and sending goods out is just as easy.

Indiana is presently the number one state in the nation for attracting manufacturers. It is predicted that more than 5,000 manufacturing jobs will be available in Central Indiana over the next year as businesses grow and older workers retire.

Here at Building Indiana, we’re exceptionally proud of our state’s reputation for being welcoming and accommodating to the businesses community. Indiana’s reception of new business prospects, especially in manufacturing, is what kept us afloat during the economic recession and what’s led us into our current positive financial situation.

Many new developments are taking place across Indiana to maintain, and further, this initiative; new infrastructure is being put in place, and older structures are being renovated for the future. As a community taking advantage of all the logistical options available to us, our state has nowhere to go but up.

This summer as you take a ride down an Indiana highway toward your vacation destination, or as you listen to a train roll by on a warm August evening, or watch ships sail past the beach toward the Indiana Ports, think about all the effort that’s gone into designing one of the best logistically laid out states in the world. Consider that without these routes in place, our state’s industries would be facing the great problem of how to export goods to their customers, and advances in business would be at a near stand-still. Appreciate all of the opportunities that Indiana offers, and enjoy your summer as our home state continues its progress as one of the best places in the world for business.

CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher/Editor Andrea M. Pearman apearman@buildingindiana.com Director of Advertising Liza Hilliard lhilliard@buildingindiana.com Writer Nick Dmitrovich ndmitrovich@buildingindiana.com Creative Director Jen Labriola jlabriola@buildingindiana.com Graphic Designer Carlo Labriola clabriola@buildingindiana.com Accounting Craig Marshall cmarshall@buildingindiana.com

Indianapolis Office Business Development Manager Lee Ann Richardson 888.226.0330

Warsaw Office Business Development Manager Julie Monteith 888.226.0330

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

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Andrea M. Pearman Publisher

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Copyright ©2013 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at apearman@buildingindiana.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.

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Contents J U LY/A U G U S T

2013

EVERY ISSUE

04 Publisher’s Desk 08 Contributors 09 Main Buzz 26 People News E X P E RT A DV I C E

30

32

State of the Industry Employee Misclassification

D E PA R T M E N T S

40

30

F E AT U R E S

40 cover story

Bridging the Gap

52

40

6

Getting From Point A to Point B

Ideas Grow

FUTURE OF LOGISTICS Building for the Future

WELL being

A Clean Place to Work

58

LIfelong Learning

62

Growth through

Marketing

Hoosier State’s New

Marketing Initiative

66

Economic Development

Facts & Stats Logistics Statistics

LOGISTICS

Commerce, Technology &

Partnerships

MASS production Mass Production in the 21st Century

46

Five Places where

44

Construction Feature

56

The bottom line Indiana’s Infrastructure Investments

PHOTO FEATURE

48

34

Creating a Work Space that Promotes Your Productivity

54

SAFETY zone Training on a Cloud

28

BEING PRODUCTIVE

48

Gateway to Growth

70 the last word

Commuter Logistics

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Contributors 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.

Ports of Indiana The Ports of Indiana is a quasi-governmental organization that operates a statewide system of ports, foreign trade zones and economic development programs under the authority of the Indiana Port Commission, a seven-member bipartisan board appointed by the governor. The state’s three-port system serves the world’s most productive industrial and agricultural region through a combination of strategic location, intermodal connections and specialized facilities.

Building a Better World for All of Us TM

David W. 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.

Sherri Ziller Sherri Ziller, a lifelong resident of Northwest Indiana, was named Chief Operating Officer of the RDA in 2012, responsible for day-to-day operations, strategic planning and fiscal management of the organization. Previously she was the organization’s Finance and Grants Manager. Ziller has been with the RDA since its inception in the spring of 2006 and provides leadership to our efforts to support economic development and redevelopment throughout the region. She holds a Master’s degree in Education and a Bachelor’s in Political Science from Purdue University Calumet.

Kevin Eikenberry Kevin Eikenberry is a the bestselling author of “Remarkable Leadership” and “From Bud to Boss” and the Chief Potential Officer of the Kevin Eikenberry Group, a leadership and learning consulting company that has been helping organizations, teams and individuals reach their potential since 1993, and is based in Indianapolis. Kevin’s specialties include leadership, teams and teamwork, organizational culture, facilitating change, organizational learning and more.

Kelly O’Brien Kelly O’Brien is the Senior Vice President for Economic Development and is responsible for leading the Alliance for Regional Development at the Chicagoland Chamber of Commerce. Her career spans both the public and private sectors. Professional highlights include serving at the U.S. Department of Commerce Economic Development Administration (EDA) as Director of Public Affairs and as the liaison for the Secretary to the nation’s premier leaders of business, government and academia regarding American competitiveness.

She has a degree in Political Communications from The George Washington University and her J.D. from Loyola University Chicago School of Law.

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Scott Dobos Scott Dobos is a lecturer in the Kelley School of Business, Operations and Decision Technologies at Indiana University in Bloomington. Scott teaches various courses including Global Sourcing, Logistics and Transportation Management, Lean Six Sigma Greenbelt Certification and Operations Management.

Research interests include Supply Chain Management, Lean Systems and Strategic Sourcing. Prior to IU, Dobos spent 20-years in private corporations within various functions including accounting, finance, manufacturing, sales and sourcing. www.buildingindiana.com

MAIN BUZZ

How Logistics Can Affect Your Bottom Line

By Patrick S. Harbour, LEED AP, Harbor Contractors Inc.

L

ogistics. It’s a word that’s been used a lot lately. But beyond being a catchy word, what do we really know about it? Logistics is defined as the management of materials flow through an organization, from raw materials through to finished goods and it can have a huge impact on your company’s finances. Higher transportation costs lead to higher overall prices (without additional profit) and have been estimated to be 25% of a company’s bottom line.

As with many things, it often comes down to location, location, location! Proximity to transportation options (road, rail, air, or water) may produce a higher upfront cost for headquarters, production facilities, and warehouses, but can realize significant savings in shipping costs over the lifespan of a company. www.buildingindiana.com

A private rail spur, for example, puts you in control of your goods and materials. There are costs involved with upkeep and maintenance, but compared to the potential lost revenue for personnel time and sales when relying on an outside source for movement of goods, they’re miniscule.

Leveraging volume can also help keep overall costs down. We often think nothing of spending a small amount on a regular basis, but balk at a large capital output for the same thing. If your company alone doesn’t have output that would be considered “bulk,” coordination with a supplier or distributor to co-locate may produce similar savings results related to logistics costs.

Another way that improved logistics practices can help a company realize increased profitability is through reliability. As the distance of a product to travel decreases and the less touches it has in transition, the lower the chance of an error

(delay, damage or misdirection) prior to final destination. Decreasing these wasted costs increases the bottom line regardless of industry. This reliability in transport also improves the probability of on-time delivery and heightens customer satisfaction and the likelihood of repeat business.

The environmental impact of logistics considerations is often understated as well. Reducing the amount of energy used for transportation through improved logistics practices decreases the volume of greenhouse gases emitted. These changes can also reduce the carbon footprint of products over their entire life cycle and, perhaps, even qualify for grants or other savings options through environmental initiatives and programs.

Is your company investing for its future or are you looking at your bottom line now? A little planning for logistics now can pay big dividends in the long run and result in increased overall profitability.

9

BUSINESS BUZZ

Central Microsoft Obtains Hoosier-Made Software Blue Horseshoe announced a collaboration agreement with Microsoft that includes the acquisition of Blue Horseshoe’s Warehousing for AX (WAX) and Transportation for AX (TRAX) solutions. This technology will help Microsoft accelerate its Microsoft Dynamics AX supply chain management roadmap with plans to make the functionality available to the broader Dynamics AX channel partner and customer community.

Both WAX and TRAX are products within Blue Horseshoe’s Supply Chain Suite for Dynamics AX. These solutions embed industry-specific functionality directly into the business layer of Microsoft’s Dynamic AX architecture to offer identical performance, user-interface, and business logic as Dynamics AX. The Warehouse Management & Transportation Man-

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agement capabilities within WAX and TRAX can empower channel partners to focus on delivering packaged, end-toend, vertical solutions to customers operating businesses in the manufacturing, distribution or retail industries. The additions will help streamline distribution and warehouse operations, including: Improved Inventory Control, Embedded Radio Frequency, Improved Inbound & Outbound Warehouse Operations, Rate, Route and Load Planning, and Freight Reconciliation.

State approves $20 million for Ivy Tech campus in Anderson State Rep. Terri J. Austin (D-Anderson) announced today that Ivy Tech Community College has been authorized to proceed with construction of a new facility in Anderson.

Austin said members of the State Budget Committee gave final approval to the $24 million project during the group’s monthly business meeting today in Indianapolis. The new 76,000-square foot facility will be built on nearly 40 acres of land – located on 60th Street near Interstate 69 – that was donated to the college by the city of Anderson.

With the new facility on line, Austin said the existing Ivy Tech buildings at Main and 53rd Streets will be turned over

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BUSINESS BUZZ

to the School of Health Sciences and allow for expansion of programs there. Ivy Tech officials have been planning for new construction at the Anderson site as far back as 2007, when the Indiana General Assembly gave them the authority to start preparing for it. In 2009, lawmakers approved bonding authority for the project.

New Urban Farm Announced in Indy Community leaders including Mayor Greg Ballard and Lieutenant Governor Susan Ellspermann announced the development of a new urban agriculture site. BrightFarms 100,000 square-foot farm will create up to 25 green collar jobs and grow millions of pounds of produce that conserves natural resources and is thousands of miles fresher for the greater Indianapolis community. The farm will be built at 2219 W. Michigan Street. The nearly 5-acre parcel of land on which the farm will be built has been vacant since 1996. BrightFarms joins five new businesses, locating in this section of the Michigan Street corridor. The area near the site of this greenhouse farm has become a redevelopment hub, connecting commercial revitalization to residents of the community.

3D Parts Manufacturing Growing in Downtown Indy 3D Parts Manufacturing, LLC, an additive plastics and metal parts manufacturer, announced plans today to expand its operations in Indianapolis, creating up to 65 new jobs by the end of 2018. The company will invest $6 million to lease and equip 25,000 square feet of space in Indianapolis. Formerly producing parts overseas, 3D Parts will now house all part production at this new location. With equipment installation completed, the company has already begun producing plastic and steel parts.

3D Parts is currently filling engineering and manufacturing positions.

3D Parts produces metal, plastic and composite products through selective laser sintering and Polyjet additive manufacturing technologies. Founded by Brand, a former engineer and local businessman, the company uses three dimensional modeling systems as part of its manufacturing process and supports the medical, aerospace, automotive, defense and plastic molding industries. The Indiana Economic Development Corporation offered 3D Parts Manufacturing, LLC, up to $625,000 in conditional tax credits and up to $75,000 in training grants based on the company’s job creation plans.

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SmartFile Plans Indy Expansion Secured FTP Hosting, LLC, d/b/a SmartFile, an online file sharing and FTP hosting service, announced plans today to expand its operations in Indianapolis, creating up to 30 new jobs by 2016. The Hoosier company will invest $2.1 million to expand and equip its existing facility located at 212 W. 10th Street in Indianapolis. The 7,500 square-foot facility is expected to be operational by September.

SmartFile has already begun hiring new software engineers, web developers and systems administrators. SmartFile is a secure file sharing platform that allows companies to easily access and manage files of any size through the internet. The Indiana Economic Development Corporation offered Secured FTP Hosting, LLC up to $300,000 in conditional tax credits and up to $20,000 in training grants based on the company’s job creation plans.

Ogletree Deakins Recognized as a Top Ranking Law Firm Ogletree, Deakins, Nash, Smoak & Stewart, P.C., one of the largest labor and employment law firms representing management in all types of employment-related legal matters, announced that the firm’s Indianapolis office has been recognized by the Indiana Chamber of Commerce as one of the 2013 Best Places to Work in Indiana for the fourth consecutive year.

Ogletree Deakins ranked third overall in the Major Companies (1,000+ U.S. employees) category, and was the top-ranking law firm in the category.

The 2013 list, included in a special section of the May/ June issue of the Indiana Chamber’s BizVoice® magazine, recognizes companies that have set the standard for workplace excellence in the state of Indiana. The companies included in the 2013 Best Places to Work in Indiana list were determined through employer reports and comprehensive employee surveys.

Aerospace Parts Manufacturer Expands in Johnson County L&E Engineering Company, a manufacturer of tube and sheet metal fabrications for the aerospace industry, announced plans to expand its operations in Greenwood, Ind. creating up to 52 new jobs by 2016.

The company, which is a subsidiary of Franklin, Ohiobased Ferco Aerospace Group, will invest $3.7 million to add equipment and almost double the size of its existing 23,000 square-foot facility at 254 North Graham Road in Greenwood, the Indiana Economic Development Corporation Reported.

The expansion is slated to be complete by the summer of www.buildingindiana.com

Indiana Biosciences Research Institute Unveiled The Indiana Biosciences Research Institute, the first industry-led collaborative life sciences research institute in the country, was unveiled by Indiana Governor Mike Pence and numerous Indiana-based global life sciences and research university executives. Officials stated that the Indiana Biosciences Research Institute will be a statewide public-private partnership advanced by BioCrossroads and led by Indiana’s life sciences industry, with support from the State of Indiana and partnerships with Indiana’s research

universities to discover, develop and deliver biosciences innovations in Indiana.

The Indiana Biosciences Research Institute is the result of leadership from industry executives from Eli Lilly and Company, Dow AgroSciences, Roche Diagnostics, Cook Medical, Indiana University Health and Biomet and the Governor of Indiana, with active support in initial development

by BioCrossroads. Indiana’s research institutions, including Indiana University, Purdue University and the University of Notre Dame also are participating in the development process.

The estimated $360-million Indiana Biosciences Research Institute is a non-profit entity that is anticipated to be supported largely by corporate and philanthropic funding with oversight from a largely donor-based board of directors representing the life sciences industry, the state of Indiana, academia and nonprofit donors. The State of Indiana has appropriated $25 million for the biennium for start-up costs.

An additional $25 million in start-up funding is being sought from industry and philanthropic sources, which will be used in part to recruit a nationally recognized CEO and research fellows. The remaining capital funding will be sought from corporate and philanthropic sources, and ongoing operating costs will be funded through Institute endowment proceeds, industry-sponsored research and federally funded research.

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BUSINESS BUZZ

2014. The company plans to begin hiring new manufacturing, administrative and engineering associates later this year. L&E Engineering produces sheet metal and tube fabrications for aerospace and industrial gas turbine engines.

The Indiana Economic Development Corporation offered L&E Engineering Company up to $400,000 in conditional tax credits and up to $50,000 in training grants based on the company’s job creation plans. Until Hoosiers are hired, the company is not eligible to claim incentives. The city of Greenwood will consider additional tax abatement at the request of the Johnson County Development Corporation.

BUSINESS BUZZ

NASAA Conference Could Boost Indy Economy by $500,000

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

For more information, or to reserve your spot: Contact Jill Ewing (317)454-7013 jillewing@ieda.org www.ieda.org

Tuesday, September 24 through Thursday, September 26, 2013 Westin Indianapolis 50 S. Capitol Ave. Indianapolis, IN 46204

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Indiana Secretary of State Connie Lawson announced that her office won its bid to host the North American Securities Administrators Association (NASAA) Fall 2014 Conference in Indianapolis. The NASAA estimates its October annual conference will pump more than $500,000 into the local economy.

Securities Commissioner Chris Naylor, a NASAA board member, and the team at Visit Indy made the bid presentation to NASAA earlier this year. An estimated 400 participants will attend the October meeting which brings together securities regulators, securities law professionals, financial services industry professionals, consumer advocates and legislative and regulatory policymakers for an in-depth look at key financial services policy issues.

According to NASAA, the fall 2014 conference is expected to bring up to half a million dollars to the local economy through lodging, meals and meeting related expenses by its members.

NASAA is the association of all state, provincial and territorial securities regulators in North America. The Indiana Secretary of State’s office, which regulates the Securities industry in Indiana, is a member of NASAA.

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Muncie Council Backs $60M Project Near Ball State

Maxwell Milling of Indiana, a division of Goldsboro Milling Company, will receive a $35,000 Economic Development Income Tax (EDIT) grant from the Economic Development Corporation (EDC) of Wayne County for an expansion project in Richmond, Ind. The company is located at 4359 State Road 1 near Hagerstown and processes grains and minerals for production of swine feed. Maxwell Milling will invest $1.7 million in the project which will create five new, full-time equivalent jobs paying an average hourly wage of $16.35.

The expansion project will include construction of a 24 by 70 foot receiving building with two 125,000 bushel grain storage bins. The company will also purchase various bin loading and unloading equipment. The expansion project will allow the company to increase production from 3,200 tons of finished feed per week to 5,000 tons per week. The project will also enable the company to increase the amount of grain purchased from Indiana farmers.

The Muncie City Council has approved financing for a six-story parking garage as part of a planned $60 million project with apartments and commercial storefronts near the Ball State University campus.

Council members voted 7-2 Monday night in favor of plans for a $5 million bond issue. That money will go toward building the city-owned 342-space parking garage. The city will be repaid through the leasing of the garage’s parking spaces.

BUSINESS BUZZ

Maxwell Milling Expanding in Richmond

Simon to Buy $569M Stake in European Mall Operator Simon Property Group Inc., the largest U.S. mall owner, has agreed to invest $569 million in McArthurGlen Group, Europe’s biggest outlet-center operator. Simon, based in Indianapolis, will gain an ownership stake in six McArthurGlen properties and become a partner in the London-based firm’s real estate management and development business.

The investment will include properties in Austria, the Netherlands, Italy and the United Kingdom. Simon, the largest owner of U.S. outlet centers, also operates similar properties in Asia and has a minority stake in European mall owner Klepierre SA, which is based in Paris.

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BUSINESS BUZZ

Bio-Response Solutions, Inc Grows in Hendricks County Bio-Response Solutions, Inc., a waste treatment systems manufacturer, announced plans today to expand its operations in Danville, creating up to 25 new jobs by 2016. The homegrown-Hoosier company will invest $1.1 million to build and equip a 14,500 square-foot facility at the Danville Commerce Park. The facility, which will house the company’s entire operations, is expected to be operational early next year and features heating powered by solar panels.

Bio-Response Solutions has already begun hiring additional assembly, welding, sales, service, technical and engineering associates. The company designs, produces and installs decontamination systems that destroy infectious organisms in waste water produced at research facilities, universities and pharmaceutical companies around the world.

The Indiana Economic Development Corporation offered Bio-Response Solutions, Inc. up to $160,000 in conditional tax credits and up to $95,000 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 town of

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Businesses founded in Indiana continue to grow our state’s economy. Already this year, more than 30 homegrown-Hoosier companies have made plans to create upwards of 2,200 projected new jobs and invest more than $142 million in their Indiana operations.

Duke Energy Looks to Boost Economic Development Duke Energy has selected five Indiana properties for participation in its 2013 Site Readiness Program to prepare the properties for potential industrial development. They are: • The River Ridge Commerce Center, 100 acres in Jeffersonville (Clark Co.) • The East Side Industrial Park, 100 acres in Seymour (Jackson Co.) • The Industrial Business Complex, 135 acres in Wabash (Wabash Co.) • The North Warrick Industrial Business Park, 236 acres in Eberfield (Warrick Co.) • A 181,000-square-foot building at 2100 East Lincoln Road in Kokomo (Howard Co.) The Site Readiness Program is the cornerstone of Duke Energy’s economic development model. It identifies, evaluates and improves industrial sites in the company’s service territory to help communities served by the utility compete for new companies and jobs.

Duke Energy has hired McCallum Sweeney, a nationally known consulting firm, to conduct studies on four of the five sites.

Duke Energy will collaborate with county leaders and local economic development professionals to develop a strategy for providing water, sewer, natural gas and electricity to the sites. The parties may also recommend road improvements, easements and rights-of-way that will be required to develop the sites, as well as steps necessary to mitigate any potential environmental impacts. Banning Engineering will produce final drawings and conceptual site plans.

Duke Energy will present its findings - including a detailed report and conceptual drawings – to county officials when the studies are completed.

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Indiana University Kokomo Plans $14 Million Renovation

The Cellular Connection Opens New Office in Carmel The Cellular Connection (TCC), the largest Verizon

In the new single level 47,000-square foot office, there will be substantial space dedicated to TCC’s training department, including a fully functioning mock store. There will also be a call center for customer service and retention as well as technical support.

Over the past three years, TCC has grown revenue by 217 percent. The company was recently ranked No. 41 in Inc.’s Hire Power Awards listing, which recognizes small and mid-sized businesses that have generated the most jobs in the U.S. during the past three years.

The listing comes on the heels of TCC ranking No. 1,294 on the Inc. 500|5000 listing of America’s fastest-growing private companies for the third consecutive year. TCC also announced a partnership with entertainer Jennifer

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BUSINESS BUZZ

Indiana University Kokomo’s Main Building will receive its first major renovations in nearly two decades, with $14 million in funding from the Indiana General Assembly. Interim Chancellor Susan-Sciame Giesecke said the upgrades are critically needed on the building, which was the first on the Washington Street campus. It was built in 1965. Faculty Senate President Chris Darr said faculty members are enthusiastic about the plans.

Renovations will include upgrades to the heating and cooling systems and electrical systems for the entire building, along with installing more energy efficient windows and doors. It also will include asbestos removal and replacement of ceilings and fixtures where it is removed. The IU Board of Trustees approved the plans at its recent meeting. John Sarber, director of physical facilities, anticipates that IU will assign architects and engineers to the project quickly.

Premium Wireless Retailer in the U.S., announced the opening of its new office in Carmel at 525 Congressional Blvd. The company is looking to hire as many as 145 employees over the next three years. TCC operates nearly 900 locations across 28 states and employs nearly 500 Hoosiers. The company’s headquarters will remain in Marion. Positions being filled include accounting and finance, IT programming engineers, software programmers, legal staff, trainers, call center support, sales operations, graphic designers and marketing.

BUSINESS BUZZ

Lopez and distribution and services company Brightstar to launch a chain of wireless stores focusing on the shopping preferences of Hispanic consumers, called Viva Movil.

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

Northeast Artworks Galleria of Fine Arts Opens in Fort Wayne Artworks Galleria of Fine Art LLC celebrated its grand opening recently in Fort Wayne. Located at the Jefferson Pointe Shopping Center, the ribbon cutting ceremony featured a champagne artist reception and a featuring of new exhibits from local artists Karen Moriarty, Vicki Junk-Wright, Terry Ratliff, Santa Brink, Penny French-Deal, Janet Blumenthal, Diana Miller-Pierce, and Edward Alvarez. All original art

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is for sale. Music was provided by Maestro Robert Nance.

The mission of the Artworks Galleria is to serve as a leader in the presentation and promotion of contemporary fine art; to support and inspire both emerging and established artists from the local and regional communities; to foster creativity and art excellence; to provide exhibitions, educational programs, and events/activities that encourage public awareness, participation, and appreciation; and to actively contribute to the cultural enrichment in the community.

Arts United Breaks Ground on New ArtsLab in Fort Wayne Arts United of Greater Fort Wayne held a ceremonial groundbreaking for its new $1.6 million ArtsLab black box space, which will be built as an addition to the Auer Center for Arts and Culture, 300 E. Main St. The project should be done by Thanksgiving for use during the holiday season.

The space will be designed for innovative artistic programming and to encourage new cultural industries.

Possible uses include small theatrical productions, music and dance performances, temporary art exhibits, and educational programs. The design includes an overhead technology grid for sound and lighting and chairs that can seat 200 people or can be removed or set up in any desired

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An agreement between Indiana Michigan Power (I&M), an operating company of American Electric Power (NYSE:AEP), and EDP Renewables North America (EDPR) will result in the construction of a wind farm in Randolph County, Indiana. I&M will add 200 megawatts (MW) of wind power to its generation portfolio under the 20-year power purchase agreement.

Headwaters Wind Farm will be built in Randolph County, about 85 miles south of Fort Wayne and 85 miles east of Indianapolis. The wind farm’s turbines will be connected to the AEP transmission system to deliver power to I&M customers in both Michigan and Indiana. Construction on Headwaters Wind Farm is slated to begin before year’s end and is expected to be fully operational by the end of 2014.

The wind power contract resulted from a request for proposals that I&M issued in February to fulfill its commitment to add 200 megawatts of new wind energy. EDPR expects to create the equivalent of more than 150 full-time jobs throughout the construction phase and more than 20 permanent jobs once the project is completed in 2014. EDPR owns and operates 29 wind farms throughout the United States, including the Meadow Lake Wind Farm in White County, Indiana.

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BUSINESS BUZZ

configuration. The project will add 5,000 to 6,000 square feet of new construction to the Auer Center and involve renovation of 2,000 to 3,000 square feet of existing space for dressing rooms and other uses, Sparrow said.

Speaking at the groundbreaking, Fort Wayne Mayor Tom Henry; Indiana state Sen. David Long, R-Fort Wayne; and Sarah Bodner, director of communications and community relations for Indiana Michigan Power, also stressed the economic value the ArtsLab will have by contributing to attracting and retaining jobs and young people.

D WINN

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Nyloncraft Aquires NYX Fort Wayne Facility Nyloncraft Inc., a major supplier of under the hood and structural plastic components from Mishawaka, announced the acquisition of the NYX Fort Wayne facility, a leading manufacturer of highly engineered, pressurized fluid handling vessels and components for under-the-hood vehicle applications. The business will operate as part of Nyloncraft Inc., and will be called NCI Fort Wayne.

The NCI Fort Wayne facility provides products and technology for several automotive applications such as brake reservoirs, surge tanks and suspension components. These additional competencies will deliver benefits for customers of Nyloncraft, who will now have access to more world-class, www.buildingindiana.com

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BUSINESS BUZZ

under-the-hood capabilities from an existing, trusted partner.

Nyloncraft is part of TECHNIPLAS, a group of specialized leaders in plastics that includes Dickten Masch Plastics based in Nashotah Wisconsin and Vallotech based in Vallorbe, Switzerland.

Hertzler Systems Makes Big Investment in Solar Energy Hertzler Systems Inc. has made a substantial investment in reducing its carbon footprint through Northern Indiana Public Service Company’s (NIPSCO) Feed-in-Tariff program that “buys back” electrical power from customers that are generating their own clean energy.

Herztler is presently finishing the installation of 48 solar panels at its Goshen location that will feed electricity directly into NIPSCO’s power grid, generating an estimated 13,317 kWh per year and providing the equivalent of 44 percent of Hertzler’s current yearly electricity consumption.

The installing company estimates that over the next 25 years, the system will save 522,275 pounds of CO2 emissions, 1,676 pounds of smog-producing NOx, 1,517 pounds of acid rain-producing SOx, and 103 pounds of asthma-producing particulates. All of this is the equivalent of taking an average car off the road for 849,794 miles, or planting 4.5 acres of trees.

Shambaugh & Son Expanding Fort Wayne Headquarters Shambaugh & Son, LP, the third largest specialty contractor in the country, announced plans to expand its headquarters in Fort Wayne, creating up to 110 new jobs by 2016.

The homegrown-Hoosier company, which is a subsidiary of EMCOR Group (NYSE: EME), will invest $4.37 million to lease, expand and equip two facilities in Fort Wayne, bringing its total footprint in the community to 36.3 acres. The company will expand its existing facility to 140,000 square feet to house its administrative and engineering functions. In addition, Shambaugh will lease a 70,000 square-foot fabrication shop approximately 2.5 miles from its main campus. Both facilities are expected to be operational by September.

Shambaugh, which currently employs 528 full-time associates in Fort Wayne, 1,195 across Indiana and more than 1,800 nationally, has already begun hiring additional mechanical, process and refrigeration engineers, pipefitters and metal trades associates. The Indiana Economic Development Corporation offered Shambaugh & Son, LP up to $1,000,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans.

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GM Supplier Announces Facility in Indiana

Ground Effects, which currently employs more than 600 full-time associates across North America, will begin hiring for all production-related positions later this year. By centralizing operations near the General Motors assembly plant, the company plans to initially install 20,000 bed liners a year, with full production expected to eventually reach 50,000 a year. Ground Effects also operates locations across Canada, Michigan, Kentucky and Missouri. The Indiana Economic Development Corporation offered Ground Effects, LLC up to $825,000 in conditional tax credits based on the company’s job creation plans.

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

Northwest State Approves $45 million plan to replace IUN’s Tamarack Hall Indiana University Northwest’s plans for a new building to replace Tamarack Hall in Gary has been approved by the State Budget Committee. A plan approved by Indiana University trustees will cost $45 million, and will serve both Indiana University Northwest and Ivy Tech Community College Northwest. During flooding in 2008, Tamarack Hall sustained too much damage to safely hold classes in the building, according to state Rep. Vernon Smith, D-Gary, and an IUN professor.

Ivy Tech classes that may move to the new facility include some nursing programs as well as transfer programs set up for students planning to continue their education at IUN, said Jeff Fanter, Ivy Tech’s vice president of communications and enrollment.

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BUSINESS BUZZ

Ground Effects, LLC, an automotive installer of spray-in bed liners, announced plans to locate a new facility in Roanoke, creating up to 160 new jobs by 2017. The Ontario, Canadaheadquarted company will invest $3.4 million to lease and equip a 40,000 square-foot facility located at 13204 Aboite Road in Roanoke. The facility, which will be operational by December, will process bed liners and other automotive accessories for Roanoke’s General Motors plant.

BUSINESS BUZZ

Youth Development Corporation Receives $1 Million Grant Congressman Visclosky announced that Anew Life Youth Development Corporation of Gary will receive a grant in the amount $1,041,983 from the U.S. Department of Labor.

Youth Development plans to use the money for its YouthBuild Gary program.

Anew Life Youth Development Corporation works with partners throughout Northwest Indiana to assist youths looking to build professional skills while earning their degree. According to Anew Life Youth Development Corporation Executive Director Pastor Marvin Davis, this grant will enable the organization to raise its profile and expand on its existing framework, which has developed over 20 years as the YouthBuild program presence in Gary.

YouthBuild is a nonresidential, community-based alternative education program that provides classroom instruction and occupational skills training. YouthBuild participants learn valuable job skills and work toward industry-recognized certifications in a variety of occupations.

Students may earn AmeriCorps education awards through their homebuilding and other community service. At exit, they are placed in college, jobs, or both.

Falk-PLI Plans to Expand in Portage Falk-PLI Engineering & Surveying, Inc., an engineering and surveying firm, announced plans to expand its headquarters in Portage, creating up to 34 new jobs by 2016. FalkPLI, which currently has 33 full-time employees in Indiana, has already begun hiring engineers, technicians and administrative support associates.

The homegrown-Hoosier company will renovate and equip a 9,000 square-foot facility at AmeriPlex at the Port business park in Portage. The facility, which will be fully operational this fall, will allow the company to expand its market for engineering services to include the power generation industry.

Falk PLI specializes in laser scanning and tracking technology; it was the first company in the steel industry to utilize laser technology, allowing for the greatest possible accuracy and speed for precision measurements.

The Indiana Economic Development Corporation offered Falk PLI Engineering & Surveying, Inc. up to $350,000 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 Portage approved additional tax abatement at the request of the Portage Economic Development Corporation.

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ATI Physical Therapy Opens Two New Indiana Clinics ATI Physical Therapy continues its expansion in Indiana with the opening of two new clinics at 906 N. Main St. in Crown Point and 1675 N. National Road, in Columbus. The new clinics provide physical therapy and sports medicine services in a friendly and motivating environment.

Named “Best Physical Therapy Practice in the Nation”

by Advance Rehab Magazine, ATI has also achieved URAC Core Accreditation, a mark of distinction that recognizes ATI’s commitment to quality health care. ATI Physical Therapy now has nearly 50 locations in Indiana and more than 220 locations nationwide.

Electrical Workers and Contractors Donate $160,000 to TradeWinds for Building Fund The International Brotherhood of Electrical Workers (IBEW) Local 697 and the local chapter of the National Electrical Contractors Association joined forces last week and donated a total of $160,000 to the TradeWinds Building Fund.

TradeWinds Services, founded in 1966 to serve people with special needs, announced last year that it is moving from its current Gary location to a newer facility in Hobart to both enhance programs and expand outreach in the Northwest Indiana community. The Hobart building, valued at $1.25 million, was presented to TradeWinds by an anonymous donor and is currently under renovation.

On behalf of IBEW 697 Waldrop presented a check for $100,000 to TradeWinds CEO Jon Gold and Board Director Jim Dye to fund construction costs of the new sign shop — a TradeWinds business endeavor that employs adults with special needs. At the same time, Dody Russell, Treasurer of the local chapter of the National Electrical Contractors Association, signed and presented a check for $60,000 to underwrite a sign shop annex and fund a state-of-the-art computer lab.

Construction Safety Programs are a Benefit for Firms, According to Report Contractors are reporting business benefits from instituting strong safety programs, according to a new report by McGraw Hill Construction on safety management in the construction industry. In particular, construction companies report the

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following benefits due to the implementation of safety management practices:

Nooter Construction Receives Subcontractor of the Year Award Nooter Construction Company announced that it was recently named Bechtel Power’s Subcontractor of the Year at the annual Subcontractor and Supplier Recognition Awards event in Frederick, Maryland.

Nooter Construction was selected by providing outstanding support for Bechtel Power based on multiple factors including: overall performance; the ability to deliver quality equipment on time; the ability to work collaboratively to meet milestones; and meeting or exceeding project expectations in aspects of safety, construction performance, technical expertise, and environmental compliance.

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Whiting BP Refinery Hits Milestone

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BP announced that it has completed commissioning andBuilding Indiana - Workforce - 0511.indd 1 start-up of its new 250,000 barrel-per-day crude distillation unit at the Whiting Refinery, marking a major milestone in the multibillion dollar upgrade of the facility in Northwest Indiana. Building Indiana - Workforce - 0511.indd 1 www.buildingindiana.com

BUSINESS BUZZ

• 51% report increases in project ROI; with a fifth of those reporting increases of greater than 5% • 43% report faster project schedules, with half reporting schedule improvements of a week or more • 39% report a decrease in project budget from a safety program, with a quarter reporting decreases of 5% or more.

• Only 15% reported that safety programs cost firms more— debunking the myth that safety has to negatively affect a firm’s bottom line.

• 82% report an improved reputation • 71% report lower injury rates • 66% report they have a greater ability to contract new work • 66% report better project quality Firms are reporting that onsite safety training and education programs are currently most widely adopted (reported by 95% of firms) and considered most valued to jobsite workers (82% find it valuable). Online training programs are still an emerging trend, though the increase in mobile tools onsite will likely influence that.

The study’s premier partners include CPWR—The Center for Construction Research and Training, ClickSafety, United Rentals, and the National Institute of Building Sciences, its association partner.

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5/11/2011 2:51:08 P

5/11/2011 2:51:08 PM

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BUSINESS BUZZ

Construction of the Whiting Refinery upgrade project is more than 95 percent complete. BP expects to commission a new 105,000 barrel-per-day gasoil hydrotreater, a large 102,000 barrel-per-day coker and other associated units in the second half of 2013.

When all of the new equipment is in full operation, the refinery will have the ability to significantly increase heavy, sour crude processing to roughly 80 percent of its overall crude run.

The multi-billion dollar investment in the refinery is the largest private sector investment in Indiana history and also includes several hundred million dollars in state-of-the-art environmental controls for water treatment and air emissions, according to Whiting Refinery manager Nick Spencer.

Spencer also credited the 1,900 Whiting employees and large contractor workforce for safely reaching today’s important milestone in the project.

ACMS Contracted to Work on Modern Forge Project ACMS Group, Inc. has been contracted to install all of the process and power piping on the Modern Forge project.

Additionally ACMS will be completing some of the structural work for Modern Forge’s presses.

Modern Forge manufactures connecting rods and is in the process of relocating their facility from Illinois to Merrillville, Indiana. ACMS’s role on the project is expected to last about eight months, and will employ between 15 and 20 craftsmen.

ACMS’s administration said that Indiana materials will be used throughout construction, and that the company is excited to diversify its business beyond the industrial sector. They also stated that they were happy to be working on a project that will bring more jobs into Indiana and will foster growth in the community.

633 Safety Services Opens New Location in Munster 633 Safety Services, comprehensive safety consulting agency specializing in minimizing risks to employees and companies, has recently opened a new location in Northwest Indiana. 663 has worked with companies in construction, commercial and industrial settings, and over the last three years has tailored its techniques to the work environment of the Chicago and Northwest Indiana region. 633’s safety management system can be customized to a company’s specific needs, and additionally 633 assists companies 24

with site auditing, safety training, accident investigation, injury case management, professional representation, staffing assistance and safety program development.

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

South Expanding Pharmacy Benefit Manager Chooses Jeffersonville for New Facility One Southern Indiana (1si) today announced Catamaran Corp.(NASDAQ: CTRX, TSX: CCT), a provider of pharmacy benefit management and technology services, will build a facility that will employ pharmacists, technicians, call-center personnel and others at the River Ridge Commerce Center in Jeffersonville, Ind. Catamaran , an Illinois-based company, has already begun site work to construct the facility to support BriovaRx™, its national specialty brand that delivers personalized, holistic care to patients with complex, chronic conditions.

This good news marks One Southern Indiana’s (1si) 96th economic development announcement since the organization’s creation in July 2006. As the local economic development organization, 1si serves Clark and Floyd counties in southern Indiana. The decision by Catamaran Corp. to establish a new facility in southern Indiana means the company will inject new payroll dollars annually into the regional economy, and it will invest in new taxable capital in Clark County.

The build-to-suit facility, to be located on Patrol Road, is scheduled to open for business in November. Catamaran currently operates 11 other specialty pharmacy facilities across the country. The company also recently opened a Center of Excellence in Indianapolis.

Japanese Automotive Parts Manufacturer Expands in Columbus Sunright America, Inc., a Japanese manufacturer of autowww.buildingindiana.com

Proposed Evansville Sports Complex Moves Forward The Evansville Convention & Visitors Bureau (ECVB) Board of Commissioners voted to approve a purchase agreement for 99-acres of land in northern Vanderburgh County as the site for the proposed softball/baseball complex. The sale will be contingent on final approval by the Vanderburgh County Council. The sale price for the land is $1.35 million.

In Evansville and Vanderburgh County, there are approximately 16,000 youth and adults who play softball/baseball. For over a year, the ECVB staff and board members have spent countless hours evaluating the feasibility of building a softball/baseball complex. They traveled to five cities in

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our region that built similar complexes – ones capable of hosting 35-45 team tournaments.

After studying multiple sites, it was determined that the best location for building a combined first-class multi-sport facility is at the Goebel Soccer Complex. Based on a Sports Facility Plan approval by the Vanderburgh County Council, the proposed facility will be built on land located southwest of Goebel Soccer Complex with an estimated base cost of $10.6 - $13.5 million.

This cost does not include the land acquisition and projected $2.4 million for needed upgrades to the existing Goebel Complex.

With this addition to Evansville’s sports facility inventory, the ECVB can begin to capitalize on several years of attending sporting tradeshows to establish relationships with organizations such as National Association of Sports Commissions, Amateur Softball Association, National Softball Association and Independent Softball Association. All of these are points of contact for hundreds of organizations that schedule softball (and other sporting) events across the country. Events like these held in Evansville would generate an estimated $13-$16 million annually in direct expenditures to the local economy.

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

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BUSINESS BUZZ

motive nuts, bolts and specialty fasteners, announced plans to expand its operations in Columbus, creating up to 103 new jobs by 2016.

The company, which is a subsidiary of Japan-based Sugiura Seisakusho Co., Ltd., will invest $34.7 million to construct and equip two additional facilities on its 33-acre campus at the Northwest Industrial Park in Columbus. The new 176,000 square-foot and 160,000 square-foot facilities, which will stand next to its existing 322,000 squarefoot facility, will house additional lines for automotive nuts and bolts. The first production line is expected to be operational in April 2014.

The company is a tier 1 supplier to Toyota, with most of all nuts on Toyota cars in America manufactured - 5 million pieces per day - at the facility in Columbus.

With approximately 80 customers including Toyota and Hino, Sunright has more than 130 full-time employees in Indiana and plans to begin hiring additional manufacturing associates, engineers, supervisors and manufacturing managers this fall. The Indiana Economic Development Corporation offered Sunright America, Inc. up to $700,000 in performance-based tax credits based on the company’s job creation plans.

People News Lake Area United Way Names Jeremy Miller as ‘2012 Volunteer of the Year’ Jeremy Miller, regional vice president of Centier Bank, has been recognized as Lake Area United Way’s 2012 Volunteer of the Year. He was cited for his outstanding volunteer service on behalf of the regional community impact and fundraising organization. The award was made during the Indiana Association of United Ways’ Volunteer of the Year Awards Banquet held recently at the Fountains Banquet and Conference Center in Carmel, Indiana. Miller was cited for his outstanding contributions serving as Centier Bank’s employee campaign manager and captain of the company’s United Way Day of Caring team which built a children’s play area at Haven House, a LAUWfunded shelter for abused women and their children.

Riley Hospital Appoints Williams as New COO Riley Hospital for Children at Indiana University Health has appointed Russell Williams as its new chief operating officer. Williams joins Riley at IU Health from Fairview Health Services, a non-profit academic health system that includes the University of Minnesota Medical Center, Fairview, and the University of Minnesota 26

Amplatz Children’s Hospital.

Williams was formerly vice president of operations for Fairview Southdale Hospital, one of Fairview’s community hospitals. He has been leading the expansion of the emergency department, overseeing the growth of the cancer service line and directing operations of nearly 10 hospital-based clinics.

Greenawalt Appointed VP of Berry Plastics Group Berry Plastics Group, Inc. announced today that it has appointed Rodgers Greenawalt, who currently serves as Executive Vice President of Product Management for Berry Plastics’ Rigid Open Top division, to the position of Executive Vice President – Operations. As EVP - Operations, Greenawalt will provide strategic leadership for the Company-wide Operations, Safety, Product Development, and Creative Services teams.

Becker will remain with the Company for a short period of time to help with the transition of his operational responsibilities.

Greenawalt joined Berry Plastics more than 17 years ago through its acquisition of Venture Packaging. Throughout this time, he held a broad range of management positions, most recently serving as EVP of Product Management for the Company’s Rigid Open Top division.

Greenawalt holds Bachelor of Science and

Master of Science degrees in Management from Clemson University.

Indianapolis Power & Light Promotes Huntington K e l l y Huntington has been promoted to president of Indianapolis Power & Light Co. She most recently served as senior vice president and chief financial officer. Huntington joined IPL in 2011 after serving in business and financial leadership positions for parent company, AES Corporation, at its global headquarters in Arlington, Virginia. Prior to joining AES, Huntington worked in private equity investment and investment banking. She holds a bachelor’s degree in Management Science from Massachusetts Institute of Technology, master’s degree in Business Administration from Northwestern University’s Kellogg School of Management and is a CFA charterholder.

Bryan Moll Named Vice President at American Structurepoint Bryan J. Moll, Survey Group leader, has been promoted to Vice President of Indianapolis-based architecture and engineering firm American Structurepoint.

Since joining the firm, Moll, who has a background in civil engineering and land surveying, has led the charge

of expanding the Survey Group, growing the firm’s client base in Indiana, Ohio and beyond. During his career, Moll has been involved in hundreds of ALTA/ACSM Land Title surveys throughout the state of Indiana. He has also worked on large-scale route surveys ranging from two miles to 22 miles. Moll also works closely with INDOT on managing many right-of-way engineering projects throughout each district in Indiana.

Buchanan Named New Regional Chamber Director The Regional Chamber of Northeast Indiana has named Vince Buchanan to be its new Executive Director. Buchanan is a business entrepreneur who has served as the president of the New Haven Chamber since June 2005.

During his tenure there, the Chamber’s membership more than doubled and membership revenues grew by 300%. He has been closely engaged in regional activities over the past several years with both the Regional Chamber and the Chamber Coalition. Buchanan has been involved in several business ventures over the past 32 years, most of which have been in the restaurant industry. He attended Ball State University, majoring in Business Administration.

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Methodist Hospitals Promotes Howe to Relations Manager David Howe was recently promoted to Relations Manager at Methodist Hospitals, working out of the Valparaiso Family YMCA. With 30 years of healthcare, hospitality and community service experience, he is responsible for building a strong relationship with the community to promote better health and wellness in Porter County. David Howe has been a long time resident of Valparaiso Indiana.

Banning Engineering Hires Eric Walthen as Project Manger Banning Engineering announced that Eric Walthen has joined its team as a Project Manager. As a former Hendricks County Commissioner, Walthen has an extensive background in local government, Drainage Boards and Regional Sanitary Sewer Boards, which will add to the already existing expertise of the Banning Team. Walthen will focus on engineering services for municipal clients. With over 16 years of experience, Walthen most recently comes from the National Precast Concrete Association where he served as a Technical Services Engineer. Over the course of his career, Walthen has specialized in civil engineering and business development, including project management, construction management, transportation design, and QC/QA. He is registered as a Professional Engineer in Indiana, Kentucky, Michigan and Illinois and received his Bachelors of Science in Civil Engineering from Rose‐Hulman Institute of Technology.

Boone EDC Hires LePage as new Marketing Director The Boone County Economic Development Corporation (Boone EDC) has hired Joe LePage as the Director of Marketing and Communications. LePage will be responsible for developing, maintaining and enhancing all channels of communication and branding for the Boone EDC. A resident of Boone County, LePage comes from a successful career in broadcasting, most recently serving as a news reporter/anchor for Fox 59.

Grubb Named Partner at Cripe Architects + Engineers Michael J. Grubb, AIA, LEED BD+C has been named partner at Cripe Architects + Engineers. As a member of the Senior Leadership Team, Mr. Grubb serves as Director of Architecture as well as overseeing day to day operations. A registered architect in Wisconsin and Missouri, Mr. Grubb holds an Associates Degree in Architectural Engineering Technology; is a Leadership in Energy and Environmental Design Accredited Professional; and a graduate of the Indiana University Kelley School of Business Executive Leadership Program. He also serves on the Board of Directors for The Boys & Girls Club of Noblesville and is a past president of Chamber Action with the Greater Indianapolis Chamber of Commerce. www.buildingindiana.com

EVENT

NWIBRT SOUTHSHORE RAILCATS FAMILY SAFETY DAY This day will embrace the safety culture we work in everyday. nwibrt.org/railcats AIST GOLF OUTING Midwest Chapter. aist.org/mc_midwest.htm NIPSCO PORTER COUNTY SAFETY DAYS Gas, Line & Meter departments participate in safety education.

For exhibitor information call 219-226-0300.

AIST MIDWEST CHAPTER VENDOR FAIR Free buffet dinner, cash bar, no ticket required, all welcome.

Over 96 exhibitors.

VENUE

DATE & TIME

Southshore August 4, RailCats 2013 Stadium 2:10 P.M.

White Hawk Country Club Crown Point, IN Radisson Star Plaza Hotel

August 15, 2013

September 10-11, 2013

7:00-12:30 Merrillville, P.M. IN Each Day Radisson September Star Plaza 17, 2013 Hotel 3:00-8:00 Merrillville, P.M. IN

aist.org/mc_midwest.htm JAK’S WAREHOUSE & FOOD BANK OF NWI ANNUAL GALA JAK’s Warehouse has partnered up with our local Strack & Van Til stores to hold a food drive and raise funds to benefit the HOPE Project. www.foodbanknwi.org/index.php/ main/helper/jaks_warehouse/ NWIBRT 2013 FALL SAFETY SEMINAR The Northwest Indiana Business Roundtable (NWIBRT) and the Greater Calumet Chapter of the American Society of Safety Engineers (ASSE) will hold a safety seminar. www.nwibrt.org THE BIG SCHMOOZE Shake hands, exchange cards, & SCHMOOZE at this networkingfocused fundraising for the Lake Area United Way & United Way of Porter County. thebigschmooze.com FRANCISCAN ALLIANCE GALA The 7th annual black tie gala proceeds will benefit the Franciscan Alliance Northern Indiana Region Mission Programs. www.franciscanalliance.org BEYOND SAFETY EXPO Come learn from the industries BEST Safety experts, CEUs available.

Discuss topics related to safety and network.

JAK’S September Warehouse 25, 2013 Schererville, 5:00-9:00 IN P.M.

Purdue University Calumet

October 10, 2013

Avalon Manor

October 17, 2013

8:00 A.M– Hammond, 12:00 P.M. IN

Merrillville, 5:00–8:00 IN P.M.

Navy Pier Chicago, IL

October 19, 2013

Radisson February Star Plaza 11-12, 2014 Merrillville, IN

beyondsafetyexpo.com

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Photo Feature

The Labor Management Foundation award was given to Quality Construction of Central Indiana at this year’s Top Notch awards program.

Awards were presented in four categories to the following organizations: Training Excellence Award, Plumbers and Pipefitters Local 440 Apprenticeship Program; Union of the Year Award, Ironworkers Local 22; Contractor of the Year Award, Taylor Brothers ConstructionLabor/Management Foundation Award, Quality Connection of Central Indiana.

The awards program mirrors the Top Notch Standards of Excellence, which cover such industry areas as training, continuing education, safety, productivity, economic development and user/owner satisfaction.

Briane House, Tom Sneva, Chris Chastain and Tom O’Donnell pose together for a photo at the 4th annual Top Notch Standards of Excellence Awards program.

Top Notch Honors Excellence Top Notch of Indiana held it’s fourth annual Standards of Excellence Awards program honoring a select group of organizations that have earned the highest level of distinction over the past year in Indiana’s union construction industry. The awards program and luncheon took place at the Indianapolis Motor Speedway.Two award winners were selected to be the overall winners.

Nearly 600 guests attended the event, including a wide variety of professional tradesmen, contractors, construction users, political officials and civic leaders from around the state. The awards program was hosted by Todd Connor of WRTV6. Special remarks were made by former Indianapolis 500 winner Tom Sneva.

2828

Awards for 2013 were decided upon by a distinguished panel of judges including: Thomas Snyder, Ivy Tech Community College; Matt Gutwein, Health & Hospital Corporation of Marion County; Thomas Morrison, Indiana University; Jim Schellinger, CSO Architects; and Bob McMains, Purdue University.

The Apprentice Training Program of Plumbers and Pipefitters 440 Earned the Training Excellence Award at the Top Notch awards program.

This year’s Top Notch Contractor of the Year award went to Taylor Brothers Construction, pictured here with their award.

The Union of the Year award at the 2013 Top Notch awards program was given to Ironworkers Local 22.

www.buildingindiananews.com www.buildingindiana.com

Officials gather together to commerate the groundbreaking of the Dunes Kankakee Trail. Congressman Pete Visclosky is pictured on the far right.

Ground Broken on Dunes Kankakee Trail The project will link Lake Michigan to the Kankakee River via a pedestrian-bike trail. Regional Development Authority Chief Operating The groundbreaking kicks off construction of the first section of the trail connecting Indiana Dunes State Park to the Dune Park NICTD Station on U.S. 12. This section of the trail will stretch from the entrance to the Dunes back across the new bridges over routes 12 and 20 and connect to the Dorothy Buell Memorial Visitor Center.

The trail has received funding from a number of sources, including an earmark of $500,000 in federal funds secured by Visclosky; matching funds through NIRPC and the Indiana Department of Natural Resources; and a $19 million grant through the Regional Development Authority, which also includes economic development work for the U.S. 20 and Ind. 49 corridor.

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2929

STATE OF THE INDUSTRY

Employee Misclassification

Illegal Practices Create an Unfair Playing Field for Honest Businesses

By Dewey Pearman, Executive Advancement Foundation

T

Director,

Construction

here is a growing epidemic of dishonest employment practices across a broad spectrum of business sectors which is putting honest business people at a severe cost and price disadvantage. While these practices are seen in virtually all areas of business it is particularly problematic in the construction industry, especially in states such as Indiana where enforcement of proper employment practices is virtually nonexistent.

This practice is commonly referred to as “misclassification” of employees. It’s a rather simple matter where an employer will falsely claim that an employee is an “independent contractor”.

This results in the employer avoiding numerous and significant tax obligations that are being paid by honest business owners.

By claiming an individual is an independent contractor the employers avoids paying payroll taxes such as Social Security and Medicaid, workers compensation, unemployment taxes and overtime – all required by law. This practice reduces labor costs by 30% or more. That’s a significant cost, and therefore 30

bidding disadvantage for the honest contractor who is properly claiming his employees as legitimate employees. Winning a bid for a project where your competition has a labor cost bidding advantage of 30% or more is almost impossible. It’s also hard to swallow when you know that cost advantage is the result of illegal business practices.

Those who try to defend this practice often argue the state and federal law allows them to contract out work to independent “sub-contractors”. While the use of legitimate sub-contractors is an important part of the contractor business model, there are State and Federal rules that determine if a worker is an employee or an independent contractor. The companies improperly classifying employees as independent contractors simply ignore Internal Revenue Service and other regulations that clearly define who is and is not an employee.

Misclassification negatively impacts all citizens and business of Indiana in several ways. A 2010 study, The Economic Costs of Employee Misclassification in the State of Indiana, done by Dr. James I. Sturgeon and Dr. Michael P. Kelsey of the Department of Economics, University of Missouri-Kansas City quantified some of costs of misclassification to the State of Indiana. These findings www.buildingindiana.com

Employment by the numbers •

For the years 2007-2008, state audits found that 47.5% of audited employers had misclassified workers as independent contractors.

•

16.58% of employees in Indiana were misclassified as independent contractors for the period 20072008. The number of employees statewide that were affected by improper misclassification is estimated to have average 418,086 annually for the period 2007-2008.

•

The workers were directly impacted by being denied the protection of various employment laws and by being forced to pay costs normally borne by employers. State and local income tax revenues, the unemployment insurance system, and worker’s compensation in Indiana are adversely affected as well.

•

The unemployment insurance system lost an average of $36.7 million each year for the period 20072008 in unemployment insurance taxes that were not levied as a result of misclassification.

•

$147.5 million annually of state income tax revenues were lost in Indiana for the years 2007-2008.

An average of $59.9 million of Indiana local government income tax revenues were lost annually during the period 2007-2008 due to unreported income.

•

The practice of misclassification shifts the burden of paying worker’s compensation insurance premiums onto those employers who properly classify their employees.

It has the further effect of destroying the fairness and legitimacy of the bidding process.

•

For the period 2007-2008, $24.1 million annually of worker’s compensation premiums were not properly paid for misclassified workers. For the period 20072008 an annual average of $4.2 million of worker’s compensation premiums were not properly paid by construction employers in Indiana.

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are based on audits conducted by the Indiana Department of Workforce Development based on criteria and guidelines provided by the U.S. Department of Labor. Here are some of the key findings of the study.

Tens of millions of dollars of lost revenue to federal, state and local governments, including unemployment compensation and worker compensation programs must be made up by passing along additional costs to employers who properly classify their employees.

What’s the solution to this problem - enforcement? A more aggressive effort by the state of Indiana to enforce existing laws and regulations regarding the proper classification of employees will benefit all citizens and businesses in the State. A small investment in better enforcement will not only generate badly needed tax revenue for local and state government, it will also level the playing field for honest business people.

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SAFETY ZONE

Managing Training On a Cloud Online System Helps Companies Easily Manage Employee Training

latory compliance. “If a company is visited by an OSHA compliance officer, especially to address any of the National Emphasis onstruction industry professionals have begun taking ad- Program items, one of the areas they give special attention to is vantage of new software designed to streamline the entire training records,” he said. “Companies should always be prepared safety training process; online programs that can be ac- to provide detailed training records for each individual employee. cessed anytime, anywhere and provide the ability for host com- Companies should also remember that in the compliance world, panies and contractor companies to schedule, manage, track and the days of training records being complete with no more than a sign-in sheet displaying a company logo and a training topic are verify training history for individual employees.

With software like this, personal data and training records gone. Neither can companies assume that because every employee has their OSHA 10 that training requirestay with the individual person; for ments have been met. To show that an emexample a person’s OSHA and TWIC “If you think of your company as if ployee has been properly trained, companies (Transportation Worker’s Identification it were like a modern vehicle, trainneed to maintain records that include not only Credential) date are universal requireing tracker software would be the the training material used but also the name of ments at many job sites and as a perdashboard computer screen that the instructor who taught the class and his/her son switches back and forth between tells you what the vehicle needs. It credentials. For employers in the NWI region, contractor companies, the training he/ lets you know if your tire pressure one of the best avenues for accomplishing she has, no matter where, will always is low, that it’s time to change your their training goals is through the Construction be part of his/her record. oil, or that you need to get the car Advancement Foundation.”

“Software like this is a valuable to a mechanic.”

One such program helping companies tool for project planning,” said Mitchell - Mitchell Surovik, CSP and Consulting Manager, is the Virtual Training Management System 633 Safety Services Surovik, CSP and Consulting Manager (VTMS) managed by Safety Training & Tracing, with 633 Safety Services. “Instead of Inc. (ST&T). “This software helps contractors using your resource loaded schedule to identify your training needs, this type of software allows man- and their employees by providing an efficient method of schedulagers to easily identify previously trained employees to use for ing, administrating and reviewing contractor training. This systasks requiring specialized training. This technique eliminates tem is currently in place at the BP and Unilever sites and is used the need for additional training while ensuring employees have to access policies, procedures and other contractor specific communications,” said Beth Sciackitano, Communications Coordinabeen training for the task at hand.”

Surovik also said that programs like these can help with regu- tor for Safety Training and Tracing.

By Nick Dmitrovich

C

32

www.buildingindiana.com

VTMS is similar to other training management software such as the IndustrySafe Training Tracking Software and the Intelex Safety Management Program in that they all provide contractors the ability to easily establish training schedules and follow employee progress.

“Our web-based application allows contractor companies to check/track training history for individuals, easily register employees for training courses, it can be customized for individual contractor companies and much more,” said Sciackitano.

Using the software like this, contractors have the ability to view all available training courses that are offered and can schedule their employees for training at any time. Because all of the data is tied to the individual employee, the software allows for a more efficient check-in process and ease of access for all parties involved, thereby augmenting productivity of the user company.

“Beside the “training side” of VTMS, there is also much information that is useful and convenient for answering safety program questions. Access to the BP Manual of Safety Procedures, process safety information, safety personnel contact information, list of who is BP’s “Subject Matter Expert” and how to contact them for various topics has greatly improved our ability to perform our jobs as “safety consultants” for our company,” said John Kasang, Site Safety Manager, Brand Energy Services, LLC. The program is designed to be customized to meet the needs of the hosting company, providing contractors access to specific host policies and procedures and special reporting capabilities. This enables different host companies to track unique training, role and insurance requirements that are specialized to their project.

“I frequent ST&T’s website daily to ensure our manpower has the necessary training when assigned to various jobs. I am never farther than a few clicks away from registering individuals for training as needed. I would highly recommend the use of ST&T’s services to help assist companies in managing their employee’s current and future training needs,” said Casa Piasky, Safety Administrator with Solid Platforms Incorporated.

“VTMS is an efficiency and cost saving application vital in contractor management, saving both host and contractor company time and money. It has been instrumental in allowing contractor companies secure 24/7 access to host company policies and procedures, employee training information, availability of training classes and scheduling of training sessions,” said Michael Mantich, Chief Operating Officer for Safety Training & Tracing, Inc. Surovik went on to discuss how technology like this might impact the construction industry in the future. He said, “If you think of your company as if it were like a modern vehicle, training tracker software would be the dashboard computer screen that tells you what the vehicle needs. It lets you know if your tire pressure is low, that it’s time to change your oil, or that you need to get the car to a mechanic. Training tracker software keeps you apprised of upcoming needs allowing you to then create an adequate training plan. It’s a valuable tool.”

“In my opinion,” he added, “The largest impact technology is bringing to the industry, particularly when it comes to safety, will be through the use predictive analytics. Companies can now track and trend hazards in a way that allows them to predict future injuries with an accuracy rate of 80 to 97 percent! The ability to predict future incidents is the most valuable aspect of an effective safety management system.”

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www.amsmechanicalsystems.com 33

BOTTOM LINE

Indiana’s Infrastructure Investments

$7.5 billion invested in roadway improvements help attract new business to Indiana.

By Nick Dmitrovich

I

ndiana is a state that likes to keep things moving. One of the major selling points used to attract new business to the Hoosier state is the wide array of logistics options Indiana offers – especially when it comes to the highway system. 75% of the population of U.S. and Canadian citizens live within a day’s truck drive of Indiana, making the highway system essential for the shipping needs of manufacturing, agricultural and many other businesses.

Governor Mike Pence has stated that his infrastructure philosophy is based on three priorities: taking care of existing structures, finishing major projects and planning for the future. Currently across the state there are more than a dozen major highway infrastructure projects taking place that are meeting those priorities, and more than 20 smaller projects. $7.5 billion has been invested in roadway improvements over the last year. Here is a look at of some of the larger projects currently underway: New US 31, Hamilton County The goal of the new U.S. 31 project taking place in Hamilton County is to upgrade U.S. 31 to federal freeway standards between I-465 and State Road 38. Upgrading these thirteen miles of highway will be, in terms of dollars, the largest single road construction project ever conducted in Hamilton County.

The estimated construction cost of this project is $400-436 million, and funding will come from federal and state transportation dollars that are part of former Governor Daniels’ Major Moves program; financing that began with the long-term leasing of the Indiana Toll Road several years ago. Construction began in 2011 and is expected to be completed in 2015. Currently, construction is underway on the U.S. 31 from 146th Street to south of 169th Street.

The purpose of the project is intended to reduce congestion, improve safety, and provide continuity of commerce and regional 34

travel for a U.S. 31, which stretches from Michigan to Alabama.

The project’s components either upgrade or bypass congested sections of U.S. 31 that, when completed, are expected to cut a half hour off travel time between Indianapolis and South Bend.

Construction for the various sections of the project has been completed by several different companies. Some of the builders that have designed aspects of the road are: Beaty Construction of Boggstown, awarded $6.3 million to widen the 146th Street bridge; Milestone Contractors, awarded $19.6 million to build a new U.S. 31 freeway exit at State Road 38 Walsh Construction Company, awarded $35.7 million for new interchanges at Keystone Parkway and 146th Street Rieth-Riley Construction of Goshen, awarded $58.4 million for the stretch of U.S. 31 between 146th Street and 169th Street, including new freeway exits at 146th, 151st and 161st Streets Separately, there are also sections of U.S. 31 being improved in Kokomo and near South Bend. These projects are funded by the same means as the U.S. 31 Hamilton County project.

Hoosier Heartland – SR 25 The State Road (S.R.) 25 project is part of the $415 million Hoosier Heartland Highway Corridor, which extends from Toledo, Ohio to Lafayette, Indiana, a distance of approximately 200 miles.

The purpose of the project is to provide a safe route that meets current design standards such as reducing congestion, improving efficiency and capacity between Lafayette and Logansport, and to enhance the regional and local transportation network by improving and completing the transportation system between Fort Wayne and Lafayette.

Former Governor Mitch Daniels held a ribbon cutting ceremony for the first stretch of the project that opened to traffic; a 12-mile stretch between I-65 in Lafayette and US 421 in Delphi.

The last three segments of the project, spanning from Delphi to www.buildingindiana.com

Logansport, should be open to traffic at the end of 2013. This part of the state is a major agricultural area, and farmers in the area depend on the corridor to move supplies and products to markets in Logansport and Lafayette.

Several different contractors have worked on different phases of construction, including: Crider and Crider, Inc., from Bloomington, awarded nearly $16 million for work between County Road 400 West and County Road 100 West Milestone Contractors of Lafayette was awarded the two contracts for a total of nearly $41 million to complete many different parts of the project, such as new lane construction from County Road 100W to County Road 500S between Rockfield and Clymers, three new bridges, and a new interchange at U.S. 421/State Road 39 Primco Inc. of Fort Wayne was awarded just over $2 million to construct a bridge to carry the new alignment of State

Road 25 over Kokomo Pike I-69, Evansville to Indianapolis The I-69 highway connecting Evansville to Indianapolis has been a dream of many Hoosier planners going back all the way to the 1970’s. Presently, sections of the project from Evansville to the Crane Naval Surface Warfare Center in Crane, IN, are now open to traffic. The next section, from Crane to Bloomington, is slated to open by the end of 2014.

Total estimates for the cost of the entire project range from $1.73 to 1.83 billion. I-69 is included in INDOT’s Long Range Transportation Plan and it will be funded through a mix of federal and state dollars, as well as proceeds from the lease of the Indiana Toll Road. $700 million has been earmarked from the Major Moves Construction Program to fund I-69 construction from Evansville to just north of Crane Naval Surface Warfare Center.

One of the most attractive aspects of I-69 for businesses looking to relocate to Indiana is that the road is one of the

longest contiguous new terrain interstate construction projects in the U.S., making it a very viable logistics option for companies.

Some of the contractors involved with the I-69 project are: White Construction Inc of Clinton, Ind. was awarded a $57 million contract for a three-mile section of Interstate 69 in Greene County, beginning near Dry Branch Road and ending just before the State Road 45 Interchange Blankenberger Brothers, Inc. of Cynthiana, Ind., was awarded a $22.2 million contract for construction of new interstate roadways from the Pigeon Creek Bridges to State Road 168 in Gibson County Crider and Crider, Inc. of Bloomington, Ind. was awarded just under $27 million for 4.6 miles of construction in Greene and Monroe Counties beginning just east of the new U.S. 231 and I-69 interchange and stretching to Taylor Ridge Road.

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35

BEING PRODUCTIVE

Creating A Work Space That Promotes Your Productivity

By: Kevin Eikenberry, Chief Potential Officer, The Kevin Eikenberry Group

E

veryone reading these words has a place where they work.

And most of you have a place where you work best. The goal of this article is to help you make sure those places are one and the same.

If you work in a cubicle or office provided by your employer, you might think you can dismiss this article and move on to something else. Don’t.

Let’s go back to the start – I want you to find ways to make the place you work a place you can do great work.

All of the questions and advice below applies to you regardless of your working situation. It applies to you if you are an office designer or architect, creating new working spaces for others; as a leader of others who you want to support in doing great work; or as an individual doing your work as a team member and individual contributor.

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Our Starting Point Our environment impacts our results. When the environment is right we are more productive, less stressed, healthier and happier. We are also less likely to leave for another job, more likely to be more pleasant to co-workers and customers and generally better off personally and professionally.

Questions to Consider To get you thinking about the linkage between environment and productivity, let’s start with some questions. Get out you notepad or your journal and answer these questions on paper.

The answers are important enough for you to invest time in thinking on paper.

• In what situations/spaces/environments do you feel most personally productive?

• If your current working location isn’t in this list, what keeps it from making that list?

• What kind of space do you seek out if you can work wherever you wish? www.buildingindiana.com

Honoring Safety and Construction Excellence

MISSION: Northwest Indiana Business Roundtable (NWIBRT) provides a collaborative forum to Northwest Indiana business and industry to advance safety, quality, and value of construction and maintenance projects.

Congratulations to Our 2012 Winners Contractor of the Year

Superior Construction Co., Inc.

Graycor Industrial Constructors, Inc.

The American Group of Constructors, Inc.

KM Plant Services, Inc.

Pangere Corporation

Hayes Mechanical

Total Safety U.S., Inc.

Korellis Roofing, Inc.

Amex Nooter, LLC

Achievement Award

Atlantic Plant Services, Inc.

ACMS Group, Inc.

Kvaerner North American Construction Inc.

CertifiedSafety

AMS Mechanical Systems, Inc.

CET Incorporated

Code Red Safety

Cornerstone Electrical Consultants, Inc.

Correct Construction, Inc.

Superior Construction Co., Inc.

Excellence Award Ambitech Engineering Corporation

Hasse Construction Co., Inc.

Falk-PLI Engineering & Surveying

Morrison Construction Company

Interstate Environmental Services, Inc.

Thatcher Foundations, Inc.

Manta Industrial

Recognition Award

Sargent Electric Company

M&O Environmental Company M&O Insulation Company Nooter Construction Tranco Industrial Services, Inc. Tonn and Blank Construction, LLC

Innovation Award Solid Platforms, Inc.

Life Saver Award

Meade Industries

BMW Constructors, Inc.

Middough Inc.

Steve Cowsert, of Sargent Electric

R.J. Mycka, Inc.

BRAND Energy & Infrastructure Services

Roger Walters Award

Solid Platforms, Inc.

EMCOR Hyre Electric

Tom Owens, of Superior Construction Co., Inc.

Save the Date: Thursday, May 15, 2014 For a List of Members and Information, visit us at www.nwibrt.org or call us at 219-226-0300.

• How much of your time do you work in places where you feel productive?

• What could you do immediately (in less than a week) to improve or change your environment, based on your answers to these questions?

6. Get creative. As I said at the start of the article, be open-minded about this.

Perhaps the changes you can make to your space are limited, but what changes can you make?

Now What?

Taking action on your

7. Challenge assumptions. Talk to your

answers is more important. Here are some general steps to take, based on your answers

manager about the options for changing

above.

your working environment. If you come

1. Recognize how important your working environment is to your productivity. It isn’t

to them with a plan and reasons why you

just a nice to have, it is critical. As a working professional your productivity is a big

want to make adjustments (your answers

part of what you offer to your company. Make sure you are allowing yourself to bring

to the questions above will likely be

your best self.

pretty impressive and persuasive), you

2. Use any flexibility you have in where you work to your advantage. Use your answers

might be surprised what you could do –

to the questions above – don’t just go to a coffee shop because that is where everyone

to change your space or have flexibility

else goes or to the nearest place that happens to have Wi-Fi.

to work from different locations, etc.

Time spent thinking about those questions is important.

3. Think about how different kinds of work might be work better in different environments, and be willing to alter your location or environment, based on the work

These are general questions, valuable

needs.

for everyone to consider regardless of

4. Think ergonomic. If you haven’t thought about desk space, chair heights, and

your role. Now, let’s get specific for the

computer positioning, include them in your thinking. A small adjustment here could

designers and architects, then for leaders.

make a big difference.

If you are in a design role, doing the

5. Think emotional. What could you add or change to your environment to connect

steps above are great for your workspace

you to other important parts of your life beyond work? A picture could go a long way –

and they can also to put you in the right

the right picture might go further than you might imagine.

frame of mind when designing for others.

Remember though that you are designing for the client not for yourself! Given that, consider using the questions (or your own sub-set) above as a part of your design process with your clients.

When you

meet with them, don’t just learn about square feet and number of people, but also learn about the way people work, the organizational culture and other factors that might impact workplace design and layout.

If you are a leader, responsible for the productivity of your team, remember the importance of the working environment.

Again, use these questions for your own workspace, but consider using these questions to create a conversation with your team about how they can improve their workspaces with your help.

This

conversation will be welcomed and will likely lead to very positive results.

If you believe my premise – that our environment impacts our results – you know that taking the steps here will make a difference in how effective and productive you and those you work with are.

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www.buildingindiana.com

39

COVER STORY

Bridging the Gap Indiana Bridge Projects Connect the State

East End Bridge Project Construction

• Walsh Construction Company • VINCI Construction Grand Projects

Design

• Jacobs Engineering Group, Inc.

O&M

• VINCI Concessions S.A.S.

Other Design/Construction

• Milestone Contractors • International Bridge Technologies, Inc. • Haydon Bridge Company • Bizzack Construction, LLC • American Structurepoint, Inc. • Buckland & Taylor Ltd. • Stantec • Earth Exploration • Guthrie/Mayes • James H Drew • Freyssinet • Advitam • RWDI • PCSI • Macdonald Architects

The Milton-Madison CONSTRUCTION

•

Walsh Construction, Inc

DESIGN

•

Burgess & Burgess & Niple, Inc

•

Buckland & Taylor

40

By Nick Dmitrovich

G

overnor Mike Pence has stated that he is still committed to seeing the infrastructure improvement plans from Indiana’s previous administration come to life. “We’re going to finish what we started,” Pence stated.

“And we’re going to use all the resources that we have at our disposal to do that in a way that serves the interests of taxpayers and is efficient and effective and under budget. My philosophy of roads is simply this: you have three priorities when it comes to infrastructure. Number one, you take care of what you got.

Number two, you finish what you started. And number three, you plan for the future.”

Several years ago, former Governor Mitch Daniels began the “Major Moves” initiative; a 10-year campaign to complete a series of significant improvements and expansions to Indiana’s highway infrastructure and bridges. $2.6 billion was dedicated to the project, and as of last year more than 720 bridges have been rehabilitated or replaced (13% of the state’s bridges). By the year 2015, it is predicted that 1,070 bridges will be replaced (19.5% of the state’s bridges).

The largest bridge construction projects taking place in the state right now are the Milton-Madison bridge project in Jefferson County, and the Ohio River Bridges project in Clark County. Between the two of them, thousands of jobs will be created in both the short-term development stages, and throughout the

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future and traffic flow throughout the areas of construction will be improved.

Bridges that have already been rehabbed or replaced in 2012/2013 Location Vincennes, U.S. 231 Seymour, I-64 Greenfield, S.R. 26

Fort Wayne,

The Ohio River Bridges – East End Bridge

S.R. 15 Crawfordsville, S.R. 59

Description

Cost

Bridge replacement over Friends Creek, 2.4 miles south of U.S. 50 in Martin County

$3.1 million

Phase 2 rehabilitation of Sherman Minton Bridge over the Ohio River at New Albany

$18.1 million

Road rehabilitation and bridge widening from Clinton/Howard county line, through Russiaville, to Dixon Road in Kokomo.

$14 million

Bridge Replacement over the N&W Railroad, 4.02 miles north of S.R. 14 in Kosciusko County.

Superstructure replacement on the bridge over the south fork of Little Raccoon Creek, 0.81 miles south of S.R. 236 in Parke CO.

$4 million $906,978

One of the largest transportation projects currently underway in the United

(Source: “Major Progress” INDOT Capital Report, fiscal year 2012) States is the Ohio River Bridges project taking place in southern Indiana, bridging the gap between the Hoosier state and The new cable bridge is proposed to be efficient and aesthetically pleasing. Some Louisville, KY. This project is actually two of the key features include: two convex diamond towers rising 300 feet above the separate bridges; Kentucky is responsible river’s normal pool, four highway lanes (two in each direction) with extremely broad for the Downtown Crossing (which is the shoulders allowing the bridge to expand to six lanes in the future by only re-striping, I-65 bridge), and Indiana’s responsibility is a boater friendly navigational channel of 900 feet (three football fields) between the the East End Bridge, a brand new bridge two towers, a 13-foot-wide pedestrian/bicycle path along the downstream (west) side that will be constructed to run between the of the bridge, a design that fits the rural landscape by featuring soft edges and warm Gene Snyder Freeway in Louisville, KY., and gray tones.

State Road 265 in Jeffersonville, IN. WVB East End Partners, a team of Walsh Investors LLC, VINCI Concessions and Bil- The Milton-Madison Bridge Project finger Project Investments, is the team seThe Milton-Madison Bridge project will be replacing the old US 421 Ohio River lected to design, build, finance, operate and Bridge between Milton, Kentucky and Madison, Indiana. With the exception of just maintain the East End Crossing for a total a few days, the bridge has remained open to traffic throughout construction. Work cost of $763 million, much less (23%) than began in November of 2010 and will be completed by mid-2013. initial estimates predicted.

Of the submitted bids for construction costs, the wining bid was awarded to “The Bridges Project will improve Walsh Construction cross-river mobility and increase safety in of La Porte, Indiana one of the nation’s most congested and im- at just over $103 portant highway corridors. In the process, million, which came it will create thousands of jobs, both in in under the estimates short-term construction and in long-term of engineers. A $20 economic development,” a WVB spokesper- million Tiger Grant son said. was awarded to help Site preparation and pre-construction fund the project, and activities have been underway for months, Indiana and Kentucky but recently towards the end of spring 2013, will be splitting the rest Indiana Governor Mike Pence held a com- of the costs. Early on in mencement ceremony for the start of con- the project, economists struction. The bridge is expected to be open found the benefits of to traffic in October of 2016. bridge construction New truss being installed on the Milton-Madison Bridge.

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41

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from would result in the creation of approximately 1,382 jobs, many of them local, with a positive economic impact on the region totaling $152 million.

The project utilizes an interesting method of construction called bridge-sliding; a similar method was used on the Trenton Ontario Bridge and the San Francisco Bay Bridge. Essentially what the bridge-sliding method entails is designing support structures next to the existing bridge where a temporary structure can be erected to continue to allow traffic through. Then after the original bridge is strengthened and widened, it will be moved on to the new superstructure using steel rails and plates. To make a complicated process short, the construction management team will literally build the support columns next to the old bridge, and once it is improved, slide the improved bridge on to the new support columns. Using this innovative design method, the construction teams will able to speed up the timeline.

As of right now in the construction process, Traffic has switched from the old US 421 Milton-Madison Bridge to the new bridge, which is sitting on temporary piers. With traffic diverted to the new bridge, workers now begin the task of demolishing the road deck and steel truss of the old bridge. Using controlled explosives, sections of the old truss will be severed from the structure. The final construction step comes later this summer, when the new 2,427-foot-long bridge will be slid onto the renovated existing piers.

The Milton-Madison Bridge Project has received numerous awards. It was named one of the top 10 bridge projects in the country by Roads and Bridges Magazine, received a 2012 Best of What’s New Award from Popular Science magazine and received several state and national engineering awards for innovation.

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42

The Milton-Madison Bridge Project www.buildingindiana.com

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NWIBRT Safety Award 2009-2011

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MASS PRODUCTION

Mass Production in the 21st Century: Supply Chain Management with Integrated Logistics

across the entire supply chain of which transportation is a critical element. Resources include the traditional movement of material but now also include people, information, facilihistorical perspective of mass production would bring ties/equipment and services. back images of Henry Ford’s Model-T being produced When speaking to mass production companies there are in any color as long as it’s black. The vertically intemany initiatives occurring within managing a supply chain. grated factories would run with top-down management conThis article will only touch-on mass customization, supplier trol and highly specialized labor. The uninformed customer management, cellular manufacturing, lean six-sigma and busiwould simply chose what was available from large inventories ness analytics. Here is simply an introduction to these topof black Model T’s. ics. In addition, there are many more initiatives that can be Mass production in today’s environment is entirely differgrouped in multiple ways. ent. A well informed and demanding customer has created In today’s environment, the customer comes first. Comhighly competitive markets. These markets require product modity strategies around managing suppliers are now intevariety and flexibility to respond to market opportunities. grated with channel strategies with customers to create an Firms that once stressed efficiency are now measuring effecoverall category strategy. tiveness. Performance measures still Using a category strategy, the first track dollars; but just as important is initiative is moving from mass productracking cycle time. When speaking “In today’s environment, the tion to the notion of mass customizawith today’s firms in Indiana, the bention. Companies are moving away customer comes first. ” efits of mass production’s internal aufrom make-to-stock to a make-to-order - Scott Dobos, lecturer, Kelley School of Business, Operations and Decision tomation and economies of scale are mentality. Mass customization uses Technologies at Indiana University now supplemented with Supply Chain advanced technologies to customize Management (SCM) held together with products quickly and at a low cost by Integrated Logistics. stressing flexibility to respond to dyA Supply Chain (SC) is the global network of organizations namic environments and manufacturing postponement. One and activities involved in designing, transforming, consuming of a kind orders are quickly and efficiently delivered to many and disposing of goods and services. A SC is measured and customers. controlled starting with the base raw material through to the Most firms today are no longer are vertically integrated final customer. Directionally it is no longer simply a left-toand are moving from making 80% of the product to focusing right single-tier “over- the-wall” direction but now multi-tier on core competencies and outsourcing or buying 80% of the and circular in nature encompassing the notion of reverse product value. Therefore, a second major initiative is Supply logistics and cradle-to-cradle marketing. Lean supply chains Management (Procurement) which is the identification, acquiintegrate information and material in the never ending quest sition and management of inputs and supplier relationships. of perfect quality and waste reduction.

In addition to traditional market relationships with suppliers, Integrated Logistics serves to link and synchronize the firms may build collaborative relationships to promote innooverall supply chain as a continuous process and is essential vation. Firms also support Supplier Development initiatives for effective supply chain connectivity. Integrated Logistics by helping suppliers become more effective across their is the efficient/effective management of the flow of resources business.

By Scott Dobos, lecturer, Kelley School of Business, Operations and Decision Technologies at Indiana University

A

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www.buildingindiana.com

Increased outsourcing and customization has created the need for a third initiative of cellular manufacturing. Cellular manufacturing is the production of products with similar process characteristics on small assembly lines called cells and works well in services where information or customer processing needs can be grouped by their similar processing characteristics. Dedicated workers for each cell are trained in all of the activities within a cell.

Cells can be arranged and developed for internal manufacturing and even external suppliers.

Lean initiatives go by many names, can mean different things and encompass various parts of a business. Lean manufacturing is but one portion of a business. An overall lean systems approach is a philosophy of minimizing the resources needed for the entire business including marketing, research and service. In the fourth initiative, Lean Six Sigma, there are two fundamental pieces working together. The first is lean, which is the notion of waste reduction, that resonates from the bottom-up and empowers everyone in a SC. The second is six sigma with its roots in statistical process control and reducing variability. Together lean six sigma across an entire supply chain can be a very powerful initiative.

A critical portion of integrated logistics is transparency of the SC by using a common and real time Enterprise System (ES). Over the last decade firms have implemented and continue to implement common Enterprise Systems that are collecting vast amounts of data.

Firms are now data rich and information poor thus bringing the fifth initiative of business analytics. Business analytics is the analysis of data as a process of inspecting, cleaning, transforming, and modeling data with the goal of creating better decision making. Firms are now replacing inventory with information. As the saying goes, information is power. Detailed analysis and modeling enables resource optimization but also the forecasting of markets and even customer preferences.

Firms within Indiana have and continue to adapt the notion of mass production to compete in today’s global economy. The idea of simple efficiency is replaced with understanding effectiveness that centers around both profitability and responsiveness. Here is only an introduction of a few of the initiatives within the domain of Supply Chain Management and Integrated Logistics. www.buildingindiana.com

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45

LOGISTICS

U.S. manufacturers are the most productive workers in the world.

Twice as productive as workers in the next 10 leading manufacturing economies.

(National Association of Manufacturers, 2011)

Amount each year of freight travel through Indiana, making it the 5th busiest state for commercial freight traffic.

TOP 10 Indiana is among the top 10 states for logistics jobs.

(Conexus Indiana Logistics Council)

75% of the United

States and Canadian populations live within one day’s truck drive of Indiana.

Indiana exports manufactured goods to every continent except Antarctica.

(Conexus Indiana Logistics Council)

(Conexus Indiana: Indiana State Report, 2011)

Regional Grade Comparison:

50%

Indiana and Neighboring States

The percentage of what manufacturing workers earned more than non-manufacturing workers with the same educational levels.

(Conexus Indiana: Indiana State Report, 2011)

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Â

www.buildingindiana.com

Taken alone, U.S. Manufacturing would be the 10th largest economy in the world.

(National Association of Manufacturers, 2012)

4.6%

Percent that Indiana’s manufacturing employment has risen since the end of the recession.

that the US manufacturing 2% Percent employment has declined since the end of the recession.

(Conexus Indiana: Indiana State Report, 2011)

40,000

Estimated green manufacturing jobs that Indiana can create over the next decade. (“Dream it, Do it Indiana”)

Indiana has more manufacturing jobs than any other state, based on the size of its population (Conexus Indiana Logistics Council)

Indiana is #1

in attracting international manufacturing jobs and in interstate highway access.

The State of Indiana ranks in the top 10 in over 40 national logistics categories including: • 1st in intersecting highways • 1st in rail tons of primary metals originated • 1st in rail tons of primary metals terminated • 1st in shortest distance to median center of U.S. population • 2nd in world’s largest FedEx air hubs (Indianapolis) • 3rd in local freight railroads • 3rd in total freight railroads • 3rd in rail tons of waste & scrap material terminated • 4th in Class I railroads • 4th in number of long-distance trucking companies • 4th in rail tons of food products originated

(“Dream it, Do it Indiana”) (Source: 2012 Indiana Logistics Directory) www.buildingindiana.com

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CONSTRUCTION FEATURE

Five Places Where Commerce, Technology and Ideas Grow Indiana’s Certified Technology Parks Spark Innovation and Economic Development

By Nick Dmitrovich

T

hroughout the state of Indiana there are 21 different certified technology parks. Each of these parks is home to a multitude of businesses that create a tremendous economic impact on the state and supply a massive spectrum of products used all over the world. The Indiana Economic Development Corporation states that “The Certified Technology Parks (CTP) program was created as a tool to support the attraction and growth of high-technology business in Indiana and promote technology transfer opportunities.” But beyond just the intended goals, these technology parks are home to thousands of jobs and have become hubs of commerce and innovation.

Various criteria must be met in order to be deemed a CTP, but it all basically centers around a single concept: the CTP must be a place where technology, collaboration, learning and business come together to further the economic and professional growth of companies in Indiana, as outlined by the Indiana Economic Development Corporation.

Purdue Research Parks

The Purdue Research Parks are a network of four research sites across the state of Indiana, with locations in West Lafayette, 48

Indianapolis, Northwest Indiana, and Southwest Indiana – each of which is only a few miles Interstate 65. Developed by the Purdue Research Foundation, these four locations are currently home to more than 200 businesses that cover a wide range of industries; from biology, to information technologies, chemical engineering, materials sciences, and many others.

The West Lafayette location sits on 725 acres of land and provides over 356,000 feet of business space among the 50 buildings, with more than 3,000 people employed. There are many areas of the research park that are considered “business incubators,” meaning they help businesses learn how to grow.

Often, technology businesses are familiar with their product but less knowledgeable about business practices. The Purdue incubators help them grow into a fully-functional, well run company. With the help of Purdue’s Office of Technology Commercialization more than 65 Purdue faculty entrepreneurs have started companies based on their own work. www.buildingindiana.com

Overall, the West Lafayette location by itself contributes more than $50 million in taxes to the state every year and is one of Indiana’s top 20 employers; it also has a financial impact of more than $1.3 billion dollars a year, according to Joe Hornett, Purdue Research Foundation’s Senior Vice President. “The average wage of an employee here is over $63,000 a year.

This external validation took into account not only full-time jobs, but part-time jobs, student internship opportunities, and it came out to be significantly higher than we anticipated. It shows that we’re not only creating jobs, we’re creating very good jobs,” Hornett said.

Innovation Park at Notre Dame

“It’s a great environment that allows ideas to grow, and allows those ideas to be transferred into society,” said Dan Moriarity, Principal with CSO Architects.

Ann Hastings, Marketing Manager for the Innovation Park, said, “Innovation Park is a place that exists to serve companies in various stages of development and help them on their commercialization path. So we help companies find the right resources and tools to help their businesses grow and achieve commercial success.”

Currently the 12-acre campus is situated across the street from the University of Notre Dame. The Park’s state-of-the-art facility features 55,000 square feet of space for the more than 30 businesses located there.

East Side Industrial Park, Seymour, Ind. The East Side Industrial Park in Seymour, Indiana was built to take advantage of the unique location between I-65 and the CSX Rail System. Utilizing the excellent logistical options, the businesses at the industrial park have readily accessible

Information Inform that matters

The Innovation Park at Notre Dame is also a business incubator, in that it serves as a bridge between the University and the global marketplace. Dave Brenner, President and CEO of the Innovation Park at Notre Dame, said, “The initial dream for this facility leap-frogs from work at the campus. They’ve decided that research taken to the next level was an important step for Notre Dame. It’s like the Dean’s playground. You send them over here to play in the playground and figure out how to make things work.”

The park helps commercialize applied research in a number of fields, including advanced drug discovery, nanoelectonics, 3D printing, orthopedics/biomedical devices, aerospace and flow physics, imaging and others. The facility provides laboratory space, offices and many other features designed to help businesses flourish. www.buildingindiana.com

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If you require more information or would like to speak with us directly, please feel free to contact BCRC at anytime.

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BCRC is very passionate about what we do. Our services promote the well-being and safety of employees in the workplace. Empowering our members with information is just one way BCRC does this.

877-988-5400 info@bcrcnet.com

49

to continue that growth. We see that as a win for us.”

One of the most important logistical aspects available for these companies is fiber-optic broadband, which is essential since most of the companies are technology based. “We work really close with these companies to empower them and help them grow. They are all very familiar with their product, but many do not have much experience running a company. We like to see them develop their traits and expand into successful organizations,” Baker said.

Intech Park, Indianapolis, Ind.

methods of bringing in their supplies, and sending out their products. Presently, Pet Supplies Plus runs a 700,000 square foot distribution center at the Industrial Park. Aisin Holdings of America operates a 140,000 square foot office. And six other companies operate there, designing products ranging from pharmaceuticals to bio-plastics, and many things in between.

“The park is home to a number of domestic and international companies. Bordered by I-65 and the CSX, it is a wonderful location for business. We are continuing to develop infrastructure here as well,” said Jim Plump, Executive Director of the Jackson County Industrial Development Corporation.

Recently, Duke Energy announced that it had selected the East Side Industrial Park to be one of five sites to participate in its 2013 Site Readiness Program to prepare the properties for potential industrial development. Duke spokesperson described the Site Readiness Program, saying, “It identifies, evaluates and improves industrial sites in the company’s service territory to help communities served by the utility compete for new companies and jobs.”

Innovation Connector, Muncie, Ind. The Innovation Connector in Muncie, Indiana serves as a true business incubator for more than 13 up-andcoming technology companies. The 15,000 square-foot facility serves as a place for high-tech businesses to start their entrepreneurships.

Ted Baker, Executive Director of the Innovation Center, said, “We provide more than just office space for small businesses in the technology industries. Here, companies can have a home to connect, meet with consultants, gain accounting assistance, businesses management education and many other important elements of running a business. We help them grow their business and we set them up to work with economic development groups 50

Intech Park is presently the largest office development in Indiana and it’s Indiana’s only privately held Certified Technology Park. The 200-acre business park has some unique logistical opportunities available; it’s situated just a few minutes from the heart of downtown Indianapolis and the International Airport, and it’s near several major highways.

“The Indianapolis International Airport is a major benefit to support companies located within INTECH Park,” said Robert Stefanski, Vice President, with Lauth Group, Inc, developer of the Intech Park.

The site will contain over 2.5 million square feet of space across all of its buildings. Currently the park has a list of 26 companies that hold locations at Intech, and 2,500 employees.

Some of these companies are some of the most premier businesses in their respective industries; such as Eli Lilly & Company, State Farm Insurance, Purdue University, Best Buy, and many others.

The Intech Park maintains three central themes at its location: community, technology, and “parkology:” a natural environment conducive to innovation and creation.

These five locations are ideal for business and economic development, but they’re not the only ones - there are an additional 16 certified technology parks across the state. Not only are these parks home to hundreds of businesses, thousands of employees, and billions of dollars in revenue for the state of Indiana, they are also places where new inventions, new products and new ideas are generated. On a daily basis these technology parks are catapulting Indiana into a better and brighter future, both economically and intellectually, capitalizing on Indiana’s unique logistics options and business opportunities. www.buildingindiana.com

Great Things are Happening!

RDA investments in Northwest Indiana are bringing jobs and business to the region. To stay informed about RDA funding of transportation, economic development and shoreline improvement programs, visit rdatransformation.com, sign up for our monthly e-mail newsletter (you can “join our list” on facebook or send an e-mail to Dave Wellman at dwellman@rda.in.gov) and follow along on social media.

At rdatransformation.com/blog the RDA keeps the region apprised of the latest news, announcements and project updates.

Twitter Feed: @nwi_rda

Catalyst Newsletter

Facebook Feed: Northwest Indiana Regional Development Authority YouTube Video: Channel NWIRDA

Northwest Indiana Regional Development Authority 9800 Connecticut Dr., Crown Point, IN 46307 • 219.644.3500 (p) • 219.644.3502 (f)

Bill Hanna President/CEO bhanna@rda.in.gov

Sherri Ziller Chief Operating Officer sziller@rda.in.gov

Jillian Huber Assistant to the President/CEO Special Projects Coordinator jahuber@rda.in.gov

Amy Jakubin Administrative Assistant Scheduling Coordinator ajakubin@rda.in.gov

Dave Wellman Communications Manager dwelllman@rda.in.gov

LOGISTICS

Getting from Point A to Point B Direct West Coast Intermodal Access to Indiana

2008 to 2012, but fell through until an Indiana rail entrepreneur, Tom Hoback, president and CEO of Indiana Rail Road Company (INRD), saw an opportunity to strategically change Indiana’s ave you ever been stuck at Chicago O’Hare Airport logistics and business landscape.

Earlier this year, INRD and Canadian National Railway (CN) because of flight delays? Sat in a traffic jam on the Dan Ryan Expressway? If so, you know what a bottleneck announced a collaborative partnership to provide intermodal Chicago can be and if you are a business this means time and service direct from the Canadian West Coast to Indianapolis.

As a whole, Indiana’s logistics industry moves nearly a billion money.

Indiana companies have long been plagued by Chicagoland tons of freight to and from the state every year. The state has long established itself as an appealing traffic issues via air, rail and road Relocation experts say that one of the leading location for manufacturing for decades. It has cost Hoosier reasons for lost economic development and logistics, leveraging its companies millions of dollars opportunities to Illinois was companies’ need for favorable centralized geography, (potentially billions). In 2008, direct West Coast intermodal access. a business friendly environment Conexus Indiana’s Logistics and the largest network of easily Council (CILC), a group of accessible highways in the logistics executives and thought leaders throughout Indiana, was formed. CILC members felt that country. A key hurdle, however, has always been that inbound/ bypassing Chicago for air and rail cargo was of vital importance outbound containers must move through heavily congested to the future of the business community. So, CILC worked Chicago, negatively impacting Indiana business’ service as well with Indiana companies and built a case, with private sector as their bottom line.

OSP Group, a company based in Indianapolis, is indicative of intermodal users, on the need for direct intermodal rail access into Indiana via the West Coast. Many projects were pursued from many Indiana import supply chains. Thousands of containers are

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

H

52

www.buildingindiana.com

directly imported from Qingdao, Shanghai, and other points of origin throughout Asia for OSP Group. Previously, important containers were typically routed through the Ports of Los Angeles, Long Beach or Seattle, and then railed directly to Chicago.

Once in Chicago, product can sit idle anywhere from 2-7 days depending on the time of year, before being placed on a chassis to be trucked and routed to their facility in Indianapolis. An increasing shortage of truck drivers, as well as equipment, frequently creates delays and subsequently impacts their customer service.

Last year, OSP Group began routing all containers through the Ports of Prince Rupert in Canada, and reduced transit times by three days. The INRD/ CN partnership will allow OSP’s product to bypass Chicago beginning July 2013, reducing transit times by a minimum of 2-3 additional days, and considerably more during holiday peak time when congestion is much denser in Chicago. OSP, along with many other intermodal cargo users in Indiana, recognizes the opportunity to take a full week out of the supply chain as the difference between winning customers or losing them. It is clearly a decisive advantage which companies will now be able to leverage in Indiana.

OSP believes the possibilities are even more far reaching than indicated above. The direct rail service can now encourage third party logistics providers (i.e. consolidators, trucking companies) to focus more closely on potential business with local importers and exporters translating into increased local jobs. Additionally, the significant congestion issues in Chicago, coupled with the growing service demands of customers, may encourage neighboring states to consider Indiana as a viable option for direct rail in the future. Certainly the elimination in trucking and fuel costs along with detention charges associated with the container moving from Chicago to the destination point is appealing as well. Finally, the direct rail infrastructure improvement allows Indiana to now fully leverage its role both as the “Crossroads of America”, as well as being a low cost state, which could help www.buildingindiana.com

entice companies to relocate to Indiana where they can embrace the best of both worlds.

In fact, relocation experts say that one of the leading reasons for lost economic development opportunities to Illinois was companies’ need for direct West Coast intermodal access.

CILC believes this service will put that argument to rest and will give the Indiana Economic Development Corporation (IEDC) and local economic development organizations an additional tool that

will help us attract and retain Hoosier businesses.

From building the business case for the need for direct West Coast intermodal access, CILC is confident about the significantly positive impact that direct rail will have on Indiana businesses supply chain’s, both large and small, in service, cost and reliability; and furthermore, they are excited about the potential impact this will have in reshaping the future landscape and growth of the state’s logistics sector.

T FOR SOUTHSHORE RAI LCAT NWIBR S JOIN

NWIBRT is pleased to bring Family Safety Days to the Southshore RailCats Stadium. This day will embrace the safety culture we work in every day.

This

Splash-tastic

day at the ballpark is perfect for…

Employee Reward Programs

Team Building

Company Picnics

Incentive Plans

Family Outings

And more!

Amazing luxury suites, package deals and sponsorships available!

The game takes place Sunday, Aug. 4, at 2:10 p.m., featuring…

Postgame water gun fight on the field!

Water balloon fights with mascots during the game

First 500 get free squirt gun!

And much, much more!

Families run the bases after the game

Don’t miss out on all the fun! Get your tickets and/or secure your sponsorship now! Call DMS office at 219-226-0300 or By Fax at 219-226-0303. Register at nwibrt.org/railcats

53

FUTURE OF LOGISTICS

Building for the future

transport of fertilizer (+35%), minerals (+23%), grain (+20%) and steel (+14%).

Through May of 2013, maritime ustomer expansion, increased cargo is 15% ahead of the five-year avershipments and new infrastructure age. Most notably, construction equipprojects provide just a snapshot of ment and project cargo is 30 times higher the recent activities at the Ports of Indithan 2012 YTD. Coal cargo is seven times ana. To say the past two years have been higher than 2012 YTD, fertilizer is almost noteworthy for the statewide port audouble the previous year and grain is up thority that is moving industrial cargoes significantly. around the globe through port facilities “This port is a major hub for dimenat Burns Harbor, Jeffersonville and Mount sional and mega project cargo shipVernon is a bit of an understatements,” said Port Director Rick ment.

In 2012, the Port of Indiana-Burns Harbor Heimann. “The port’s facilities and Briefly, here’s why. set a record for total cargo by all modes, location allow companies to ship The Ports of Indiana is inwhich includes rail, truck, barge and ship cargoes by water directly into the vesting $8 million into new inan increase of 8 percent from 2011.

Midwest, which can significantly refrastructure projects at its three duce the transportation costs and ports in 2012 and 2013 - with permitting requirements for movmajor projects that include replacement of the internal sewer system modes, which includes rail, truck, barge ing large loads over the highway. Because and mainline rail road at Burns Harbor; and ship - an increase of 8 percent from of the experience of our labor force and Federal Marine Terminals, our terminal repair work to mooring cells in Mount Ver- 2011.

Twice, it has handled the world’s larg- operator, this port has developed an ennon; terminal roof repairs in Jeffersonville; and expansion projects at multiple ports. est crawler crane, which was made in Ger- viable track record for handling large carImprovements also included security and many, on its journey to and from BP’s mul- goes and established a world-wide reputavideo surveillance systems for Burns Har- tibillion dollar expansion in Whiting, Ind. tion as a port-of-choice for specialty shipbor and Mount Vernon to improve vis- The crane weighs 1.65 million pounds, is ments.”

Burns Harbor has welcomed four ibility of activities on the waterfront and 473 feet tall and boasts a 3,000-ton lift canew companies since the start of 2012: pacity. around the port.

Further, 2012 was the third straight Ratner Steel, Phoenix Services, PI&I TruckSeveral shipping lines are also making major investments by putting new ships year of strong maritime shipments for the ing and The Franciscan Alliance. Ratner on the Great Lakes/St. Lawrence Seaway, port – up 7% versus the five-year average Steel created 30 new jobs when it invested which is an indication that they are op- with significant increases in the cargo $14.25 million to build and equip a 102,000

By Ports of Indiana Staff

C

54

timistic about the future and increased need for shipping on the Great Lakes. Fednav, Algoma, Canada Steamship Lines and Polsteam are constructing 31 new, more efficient and environmentally-friendly ships with an investment of over $500 million.

But at the risk of sounding like a game show host - wait - that’s not all.

In 2012, the Port of Indiana-Burns Harbor set a record for total cargo by all

www.buildingindiana.com

square foot steel processing facility at the port. Phoenix Services created 80 jobs when it signed a multi-year contract with ArcelorMittal and opened a state of the art slag processing and distribution facility. P.I. & I. Motor Express opened a new trucking facility that will offer improved metal truck service to NLMK and provide new options for other tenants. The Franciscan Alliance is taking over the healthcare facility at the port and will expand services available to port workers, employers and neighboring areas around the port.

The Port of Indiana-Jeffersonville has seen maritime shipment increases in steel (34%) and fertilizer (13%) cargoes. It also welcomed a $6.7 million expansion by port customer Idemitsu Lubricants and Roll Forming Corporation added $7.5 million in new equipment, doubling the facility’s tubing production. This created 20 new jobs.

New customers include the Walsh/VINCI Grand Projects Inc. operations center and Walsh Construction Inc. which has installed a staging area for construction related to the $2.6 billion Ohio River Bridges project.

In addition, Airgas Industries is constructing an expanded facility at its new 2.2 acre site on Maritime Road.

The Port of Indiana-Mount Vernon in 2012 experienced an increase in maritime shipments of grain (+59%) and soy products (+34%).

Cimbar invested $5 million in new industry-leading grinders to produce micro-fine talc, which is used in various paints and cosmetic products. The port is working with the Indiana Depart-

ment of Transportation to construct a new road to handle trucks exiting the port, allowing truck traffic to bypass residential areas. Crop Production Services constructed new liquid tanks to expand fertilizer storage capacity and CGB built new grain bins to upgrade its grain storage facilities.

The 2013 Capital Budget for Mount Vernon includes $1.8 million for replacement of cell and dock repairs.

Economic Impact Study Last year, a new economic impact study of Indiana’s ports was conducted by top national maritime economic consultants Martin Associate. The study was peer-reviewed by economics professors from Notre Dame, Purdue University and Indiana University and it revealed that business activities at the port facilities annually generate 9,783 direct jobs and 51,577 total jobs for the state.

The Ports of Indiana contributes $2.8 billion in total personal income, $895 million in local purchases, $271 million in state and local taxes, and $6.4 billion in total value of economic activity.

Ports of Indiana CEO Rich Cooper said, “Some people would consider it a challenge to operate a port system 700 miles from an ocean. But the Great Lakes-St. Lawrence Seaway and Inland Waterway System provide Indiana companies with a tremendous advantage by bringing ocean shipments right to their doorstep at the crossroads of America. The economic and environmental benefits are tremendous when you consider one ship or a single towboat can haul hundreds of truckloads of cargo much more efficiently than other modes.”

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55

WELL BEING

A Clean Place to Work

The Economic Benefits of Drug Testing in the Workplace

By Nick Dmitrovich

W

ith an estimated 8.3 million American employees using illicit drugs, it is in an employer’s best interest to implement a drug testing program to stop problems before they start – saving companies a great deal of money in the long run.

Drug and alcohol use inhibit a user’s motor-skills, decision making, worth ethic, heath, and overall well-being leading to decreased productivity, increased risk of injury of self or another, and taking time off.

Robert Anadell, Executive Director of the Building Construction Resource Center (BCRC), states, “Companies with a drug testing program have shown reductions in absenteeism, decreased workers compensation rates, reduced turnover and

The US Department of Labor outlines statistics surrounding drug and alcohol users:

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increases in productivity. Quest Diagnostics has a “Return on Investment Calculator” (ROI) that tries to calculate the value of a drug testing program and the EBI Knowledge Center tries to quantify that value. Many company insurance policies require a drug testing program for employees before a policy can be initiated. Basically the economic value of drug testing employees is a safer and more productive workforce.”

The Quest Diagnostic ROI calculator that Anadell mentioned takes into account things like absenteeism costs, accident costs, worker’s compensation and recruiting/training expenses and works to show employers how much money they save by investing in drug screening. For example, a construction company with 50 full-time employees that see a turnover of about 5% employment on an annual basis and discovers a 5% positive results rate through drug testing will save an estimated $5.87 for every dollar

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accidents, and saves money in the long run.”

Alcohol abuse costs employers over $130 billion in lost productivity and over $91 billion in on-thejob accidents www.buildingindiana.com

10 to 20 percent of U.S. workers involved in fatal on-the-job accidents tested positive for illicit drugs and alcohol

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A company in the manufacturing industry with 100 employees that has an employee turnover rate of 3.3% annually and a 5% positive results rate discovered through drug testing would save an estimated $6.29 for every dollar invested in a screening program.

Quest Diagnostic states, “Whether your company drug tests or not, it’s hard to argue with the fact that employee drug use is bad for business. Drug users miss more work, they have more accidents, and they change jobs more frequently than non-drug users. All of these trends cost employers money.”

The EBI Knowledge Center, a company that conducts employee background investigations and drug testing, lists some less tangible benefits of drug testing such as improved workplace environment, employee morale, and customer satisfaction. While these are less easy to quantify, when the workplace is drug-free they are certainly noticed by the parties involved.

The most common use of drug screening in Indiana occurs during the pre-employment process, but the timing of the test can vary greatly by profession. For example, individuals holding a certified driver’s license (CDL) are required by state and federal law to be tested preemployment, randomly throughout employment, post-accident/incident, and during any times of reasonable suspicion whereas many individuals in other careers are typically only tested once before they are hired.

“If the company tests employees up front, they’re going to save money in the long run by avoiding costs incurred from accidents, lost time, things like that. If they have a zero-tolerance policy and test employees randomly, then they generally see a more productive and drug-free workforce. Lots of construction firms test randomly because if they have an accident their OSHA recordable incidents goes up, and they may lose out on bids because of that,” said Tim Ross, Regional Director Occupational / Employee Health with Franciscan WorkingWell.

Dr. Charles Mok, Osteopathic Physician with Franciscan WorkingWell, said, “One of the initial financial benefits for a company that drug tests is a potential savings on insurance and worker’s compensation insurance rates. Some insurance companies even require their clients to test their employees.”

“Other benefits are increased worker productivity,” Dr. Mok continued. “Much like preventive health care, it’s hard to measure the money you save, but solving problems early generates savings. Like any other tool, drug testing is a factor that companies should use in the interview process. A non-illicit drug using candidate would make for a better employee. Drugs like marijuana stay in the body’s system for quite some time and long term use can impair judgment and reaction times, so hiring individuals that don’t use drugs results in fewer

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LIFELONG LEARNING

Growth Through Partnerships How Illinois, Indiana and Wisconsin can Lead the Nation’s Economic Recovery By: Kelly O’Brien, Senior Vice President for Economic Development,

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Chamber

of

Commerce

ears before the “great recession” (2008) the leadership at the Chicagoland Chamber of Commerce questioned the sound bite “the fundamentals of the economy are strong” and decided to engage the Organization for Economic Co-operation and Development (OECD), an international economic research and discussion organization, to publish an analysis of the Gary-Chicago-Milwaukee corridor.

This groundbreaking economic analysis of the TriState Chicago Metropolitan Region (TSMR) includes the geographical areas of the States of Wisconsin, Illinois and Indiana. This internationally recognized study 58

evaluates our economic competitiveness, attractiveness and sustainability relative to other U.S. and international cities, as well as assess the effectiveness of policies that have been put in place to further these goals.

The OECD Review achieved three objectives: • It cross-referenced the TSMR’s competitiveness and performance with metropolitan areas around the world • It redefined economic opportunity based on the collective assets within the region rather than a single jurisdiction demarcated by out-of-date boundaries • Lastly, it developed a guidepost for public and private www.buildingindiana.com

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sector decision-makers to use as they formulate and evaluate new economic development policies and investment decisions.

“The Chicago Tri-State Metropolitan Area OECD Review” is over 300 pages and focuses on four policy areas: Matching Skills to Jobs, Innovation and Entrepreneurship, Transportation and Logistics, and Competitiveness through Green Growth. The report in its entirety can be viewed on the Chicagoland Chamber’s webpage. Key findings from the report include (but are not limited to): • The TSMR is the third most populous area in the United States with an estimated 9.8 million people. Its gross domestic product ranks third behind that of New York and Los Angeles.

logistics hub for both domestic and international passenger and freight traffic. Manufacturing continues to be important in traditional and new sectors such as nanotech, biotech, information and communication technology and green engineering.

In order to preserve and expand on these logistics options, the hub faces serious challenges: space constraints, congestion, financing issues and poorly integrated region-wide planning.

• The broad-based regional economy possesses a major transportation and • The TSMR benefits from a large and welleducated workforce, but struggles to attract and retain high-skilled labor. Reflecting a fragmented workforce-development infrastructure, skills training has been impeded for low- and medium-level labor.

• The TSMR possesses significant technology-based innovations and should use them to develop a global knowledge and technology hub. Instead of the current competition between local and state authorities, the region’s public sector needs greater collaboration and a pooling of scarce public resources, all aimed at supporting innovation.

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• Green jobs are growing in the tristate region, with the largest share of jobs in transportation and buildingrelated activities.

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• With nearly five million workers, the region is the third largest labor market in the United States. In the “Matching Skills to Jobs” chapter, the Review states: “The TSMR needs to articulate and implement workforce development strategies that respond effectively to the region’s business needs at all levels of activity. Workforce boards and agencies need to work across county and state boundaries to streamline processes and programming and improve data-gathering and information-sharing capacity.

Public authorities need to build on existing mechanisms to sustain a true region-wide dialogue between business and training service providers www.buildingindiana.com

so that training services better address skills needs in the TSMR.”

significant innovation potential but faces several structural challenges related to sustaining innovationdriven economic development.

In an effort to analyze and implement the recommendations outlined in the Review, the Alliance for Regional Development (Alliance) was created, a neutral platform bringing together leaders from government, academia and the private sector. Leading the Alliance are three Chairmen, one from each state:

Furthering the message of collaboration, the Review encourages both the federal and state governments to prioritize region-wide data collection and sequencing of public investment in transportation infrastructure. The region is North America’s premier transportation and logistics hub and a major continent-wide player in passenger air-travel, air cargo, railways and trucking. These hub functions Paul W. Jones: Wisconsin Chairman generate considerable employment and Paul Jones is the Chairman of A. O. Smith linkages with other business sectors. Corporation, a leading global supplier of As suspected by the Chicagoland water heaters and boilers for residential, Chamber, an economic snapshot of the commercial, and industrial applications region captured that its growth rate has and water treatment products. been slipping.

In fact, if employment in the TSMR Michael M. Mullen: Illinois had grown at the national rate Chairman Michael Mullen serves during the 1990-2010 period, the as Advisor to the Blackstone region would have gained nearly Group and is one of four Founding 600,000 more jobs. The Review Partners of CenterPoint Properties.

Falk_StructureAnalysis_ad_Jan2010:FALKSPCSHHEET 1/13/10 1:30 PM Page points out that our region possesses

Jim L. Stanley: Indiana Chairman Jim Stanley is Executive Vice President and Group CEO for Northern Indiana Public Service Company (NIPSCO).

Moving forward, the Alliance is committed to impelling effective, ongoing tri-state collaboration to actuate growth. Such efforts include organizing working committees to draft action plans and hosting a Summit on Regional Competitiveness with the Federal Reserve Bank of Chicago on September 27, 2013.

With attention and action, this pioneering initiative can help to demonstrate the region’s economic importance by putting into place truly integrated plans to address regional issues. The potential impact on state and federal decision makers to such bottomup leadership in the region shouldn’t be underestimated, and together, Illinois, Indiana and Wisconsin can lead our country’s economic recovery.

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MARKETING

Hoosier State’s New Marketing Initiative nesses looking to move to Indiana with site selector tools, links to the IECD and information to help businesses establish ecently, the Indiana Economic Dethemselves here. The IEDC also follows velopment Corporation (IEDC) up with interested parties, maintaining announced a new marketing camcommunication with businesses that have paign designed to showcase Indiana’s their eye on Indiana. characteristics as a pro-business state “Indiana has developed a reputation that strives to promote success for comas a state that collaborates to solve probpanies and organizations. The “Indiana: A lems as a family of agencies,” said Smith.

State That Works” campaign will draw at“Our ability to seamlessly work together at tention to the numerous reasons Indiana the speed of business enables us to offer is a state that works for business, and will long-term solutions for companies lookhighlight reasons why businesses should ing to grow here. Because we are all amconsider locating their operations within bassadors for the Hoosier State, it makes Hoosier boarders. sense for agencies across the state “From the passage of to promote the same message that the largest tax cut in state “From the passage of the largest tax cut in Indiana works for business.” history, to our talented state history, to our talented workforce and central The new marketing initiative workforce and central localocation, the spotlight shines on Indiana as one of touts the testing of cutting-edge tion, the spotlight shines the few states that actually work for business.” innovations and products on the on Indiana as one of the few - Victor Smith, Indiana Secretary of Commerce blacktop of Indiana’s Motor Speedstates that actually work way. “Nowhere on the planet will for business,” said Victor you find a greater concentration Smith, Indiana Secretary of of innovators and technicians, all workThe campaign will be implementing Commerce. “Our rise to the top in national rankings is proof that Indiana is more the use of digital, mobile widget and print ing toward coaxing out a new benchmark than just a good state for business, but a ads that feature the slogans: “we’re not for just how fast a vehicle can go than the state that is achieving greatness. As Indi- only a workforce, but a force that works,” Indianapolis 500,” an IEDC spokesperson ana separates itself from our competition, “we’re at the crossroads of what’s possi- wrote.

“It is a spectacle and an industry that it’s important to communicate to corpo- ble and what’s next” and “integrity is our rate decision makers across the globe the complexion, innovation is our currency,” not only generates high-speed excitement, countless reasons our pro-growth climate in advertisements targeting business lead- but also the high-tech products that fuel our economy toward an exciting future of works for companies’ growth and suc- ers.

In addition, AStateThatWorks.com job growth and investment opportunities. cess.”

The IEDC stated that the new adver- highlights Indiana as a state of thinkers, Indiana’s motorsports industry alone reptisements, which began running in early innovators and makers, showcasing a resents over 420,000 Hoosier jobs in over May, have already created the most activ- stream of stories focusing on Hoosier in- 24,000 firms, with exports to 20 countries,” ity in the history of IEDC marketing cam- novation, development and success sto- they added.

Another focus of Hoosier ingenuity paigns. With more than 11 million adver- ries. The site provides assistance to busi-

By Nick Dmitrovich

R

62

tisement viewers last month alone, the campaign had a .64 percent click through rate. This is significantly higher than the industry average of .01-.08 percent. The advertisements are targeted to national print and digital publications in high-tax states, including Illinois, New York, New Jersey, Massachusetts and California. In addition to signage at the Indianapolis International Airport and bus shelters, as well as search-based Google and other national publication advertisements, more than 12 million people have had the opportunity to see the “A State That Works” campaign.

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is the scientific accomplishments of Indiana’s academic community. Elizabeth K. Gardner, Communications and Marketing Specialist with Purdue University, wrote, “Indiana’s universities are training some of the top scientists in the world. And as we tackle the technical challenges of this planet in the 21st century, you can be confident that Hoosiers will be leading the charge to developing solutions.

Douglas Adams and five other Purdue Engineering grads helped design the parachute that safely landed NASA’s newest rover, Curiosity, on Mars. Also, IU Geology professors David Bish and Juregen Schieber developed two of the ten tools that will analyze the planet’s soil and geochemistry.”

“Indiana is unmatched at developing a collaborative economy that blurs the lines between public and private interests, and ultimately allows key players to work together as a family of agencies to deliver new products and technologies that benefit everyone at the table,” Gardner said.

This advertising campaign, combined with all of the facts about Indiana, from its incentives to its infrastructure, will surely propel the state to the front of the line in terms of attracting new businesses to the Hoosier state. Indiana has a lot to offer in terms of logistics, financing, and availability of opportunity, and the IEDC’s new advertising packages are showcasing these items to the world in a way that will present Indiana as the best state for business.

64

Above: An advertisement from the Indiana Economic Development Corporation’s new marketing campaign. This new initiative is designed to showcase Indiana’s pro-business stance that promotes success for companies and organization.

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ECONOMIC DEVELOPMENT

Gateway to Growth

By Nick Dmitrovich

N

othing stimulates economic growth like investments in infrastructure designed to enhance mobility between major economic centers, especially when the investment is a high-speed rail line between two of America’s cities. The Indiana Gateway Project aims to provide a faster link through northwest Indiana when traveling between Chicago and Detroit while helping to reduce some of the railway traffic congestion at some of Indiana’s junctions.

Congressman Peter Visclosky said, “As a hub of freight and passenger rail commerce for the rest of the nation, Northwest Indiana’s economic success depends on the quality of our rail infrastructure. The Indiana Gateway project will create jobs in the short-term, improve the transport of passengers and cargo in the mid-term, and build a foundation for a thriving rail infrastructure and a sound regional economy in the long-term.”

The eight different subprojects of the Indiana Gateway Project will be 66

Indiana’s $71.4 Million Rail Investment

funded by $71.4 million in stimulus money provided by the American Recovery and Reinvestment Act. The Indiana Department of Transportation (INDOT) stated that, depending upon the components and complexity, each subproject ranges from $4 to $21 million.

In addition, INDOT is investing another $2.2 million for project management of the 3-4 year project and Michigan was awarded a grant for $196.5 million more to complete the Chicago to Detroit high-speed route. Construction is expected to begin soon, in mid 2013, and is predicted to last 20 months.

Mike Riley, Manager with the INDOT Rail Office, described the eight subprojects. “The seven subprojects on the Norfolk Southern Chicago Line consist of five locations where universal crossovers will be added and three locations that will construct a third mainline track. The seven subprojects have an estimated cost of $ 66.9 million.”

“The subproject on the Amtrak Michigan line, located just north of the Porter Interlocking, will construct a new passing siding to enable meeting trains to pass each other,” Riley con-

In addition to improved passenger service, some of the other benefits that Indiana anticipates are: • Temporary job creation during the construction period (More than 700 construction jobs are estimated) • Improved mobility in Northwest Indiana for both train traffic and the travelling public • A reduction in railroad crossing blockages because the train dispatchers will have alternatives to keep trains moving • Improved passenger service to the east, towards South Bend, Elkhart, and Waterloo, Ind., and beyond to/from Washington for the Amtrak Capitol Limited and to\from New York and Boston with the Lake Shore Limited.

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tinued. “This subproject has an estimated cost of $ 4.5 million. Located in Porter, Ind., near Chesterton, Ind., Porter Interlocking is where the Norfolk Southern Chicago Line, the Amtrak Michigan Line, the CSX Grand Rapids Sub and the CSX Porter Branch intersect. The Michigan Line and the Grand Rapids Sub head towards Michigan. In addition to the trackwork construction, each subproject will involve signal work for train traffic control and crossing protection where vehicle traffic is affected by the trackwork.”

Each of the eight subprojects will be designed and constructed by the respective railroads. Each organization may or may not use subcontractors for portions or elements determined by the railroads and with the partnership of the Indiana Department of Transportation and the Federal Railroad Administration.

The most important of the eight subprojects is the Porter Junction portion, INDOT said. At this single point, 14 Amtrak trains and 90 freight trains cross paths every day, making it one of the most congested rail points in the country. Work on this part of the project will have to take place with the tracks remaining open to train traffic, and will require a great deal of collaboration between The Federal Railroad Administration, INDOT, Amtrak, and the Norfolk Southern Corporation.

Riley said that the planning and staging of construction throughout these busy rail intersections is going to comprise some of the most interesting parts of the project.

“One of the most important aspects of the Indiana Gateway Project will be the construction coordination,” Riley said.

“The Project involves two railroads, Norfolk Southern and Amtrak, constructing eight subprojects within 28 miles of one of the nation’s most congested railroad corridors leading in and out of Chicago. The sequencing of the projects is critical to success in keeping the corridors fluid for interstate commerce, passenger rail service and the traveling vehicular public in congested Northwest Indiana.”

Riley went on to describe some of the benefits to Indiana that this project will cre-

www.buildingindiana.com

ate. “Each of these subprojects will provide train dispatchers with additional alternatives when they are planning train meetings and passings in and out of Chicago,” Riley said.

“The Indiana Gateway Project will complement passenger service projects such as the Englewood Flyover construction in Illinois and the increased speed for passenger service in Michigan,” Riley added.

A report about the Gateway Project contained additional details about the types of subprojects being conducted. The report stated that improvements include: “Relocation, reconfiguration, and addition of high-speed crossovers and related signal system improvements, minor rail line additions at two locations achieved by lengthening and rehabilitation of existing sidings, and the creation of a new parallel passing siding. The improvement elements will have independent utility and can be constructed and placed into service on an indi-

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vidual and independent basis, thus providing immediate benefits in each proposed location as full implementation progresses.”

When it comes to the actual reductions in travel time that the improvements should provide, the report said, “A Rail Traffic Controller (RTC) study of the proposed improvements showed a reduction in train delay time for all train types of 11.6 minutes per 100 train-miles, a 24%

reduction; an increase in average speed of Amtrak trains of 3.7 mph, a 6.6% increase; and a reduction in cumulative hours of stop/delay time per week of 1.4 hours, a 61% travel reduction.”

At the 2013 Northwest Indiana Rail Conference, Northwest Indiana Forum CEO Mark Maassel stated that not only will the projects help speed the passenger Amtrak trains through the region, but freight shipments will also move through quicker. Reducing the time it take to ship goods brings about a corresponding reduction in the cost to ship those items, which is always good for the bottom lines of Indiana companies.

Northwest Indiana Building and Construction Trades Union Business Manager Randy Palmateer stated, “Thanks to the Indiana Gateway project, working families in Northwest Indiana will be able to count on good-paying jobs and a strong infrastructure that will support a thriving economy long into the future.

Projects like this are good for workers, good for business and good for Northwest Indiana’s long-term economic growth.”

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The Last Word Commuter Logistics

Commuter rail in northern Indiana is underdeveloped economic development opportunity

By Sherri Ziller, Chief Operating Officer, Regional Development Authority

I

magine there was an Indiana company This is possible solely because of of more than 16,000 jobs in construction with more than 10,000 employees and geography. There are only a handful of and related industries, rail expansion an annual payroll in the neighborhood locations around the country where remains stalled. of $250 million. It would be one of the one state can take advantage of a major In an effort to address these challenges state’s largest employers, outranked metropolitan center just across one of and unleash the economic potential of only by a few universities, and would be its borders. Examples include northern commuter rail in northern Indiana, NICTD catered to accordingly by business and New Jersey (abutting New York City) and and the Northwest Indiana Regional civic leaders mindful of its huge economic northern Virginia (outside of D.C.). And Development Authority (RDA) are jointly footprint. It would also doubtlessly be when you look at those areas, it’s not a funding the development of a strategic touted as a major Indiana success story coincidence that they boast strong mass business plan. Authored by URS Corp., by government officials and economic transit systems designed to move people the plan will examine operational issues, development groups looking to attract to and from jobs. expansion opportunities, transit-oriented new business to the state. And it certainly But in Indiana, not so much. NICTD is development, public-private partnerships wouldn’t have to go hat in hand to the currently petitioning the feds for money to and more, laying out a road map for longfederal government begging for funds replace signal equipment, some of which term success. The plan will be completed to upgrade 100-year-old in the spring of next year. equipment, right?

Obviously this is a just a NICTD is currently petitioning the feds for money to first step. Implementation of Yet that is currently the situation for the South replace signal equipment, some of which dates back the report’s recommendations Shore commuter railroad to the 1920s, in Michigan City and South Bend. will be its own challenge, and operated by the Northern - Sherri Ziller, Chief Operating Officer, Regional Development Authority whatever happens is not going Indiana Commuter to happen overnight. But the Transportation District status quo is not acceptable if we (NICTD). Every day, more than 10,000 dates back to the 1920s, in Michigan City want to grow jobs and promote economic Hoosiers board South Shore trains to get and South Bend. This funding challenge development in northern Indiana. Rail to and from jobs in Chicago. They work doesn’t only impact current service, it expansion brings immediate benefits in in Illinois – but bring their quarter-billion also makes expansion of commuter rail terms of construction jobs and long-term dollars’ worth of collective salaries back to in Northwest Indiana into something benefits as more Chicago workers relocate Indiana to spend. (Note that salary figure resembling a pipe dream. With NICTD to Indiana to take advantage of lower taxes is from a 2004 survey; NICTD is currently operating the South Shore on a shoestring and better quality of life. The Indiana conducting a new survey to update its already, where would funds come from Economic Development Corporation has numbers.) The commuter railroad is a to run trains on the proposed West a new marketing campaign lauding us as pipeline that exports labor and imports Lake Corridor in Lake County or out to “a state that works.” Making northern cash on a massive scale, to the great Valparaiso in Porter County? Thus despite Indiana a state that works for commuters benefit of both northern Indiana and the half a billion dollars in federal money is critical to growth in the region. state as a whole. available for construction and the promise Let’s get it done.

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.

70

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