SPECIAL REPORT
Colliers and the future of US Ports
August 2017
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TALKING
BIZ WITH:
10
TOP
SUCCESSFUL
SELF-MADE WOMEN IN THE US WHO’S A HE A D OF OPR A H?
D R I V I N G disr uption in the au tomoti ve industr y
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FOREWORD HELLO AND WELCOME to August’s edition of Business Review USA. To start with this month, James Breeze speaks to James Henderson about Colliers’ new report that offers customers valuable insight into the country’s nine busiest ports. Written with local businesses in mind, the Industrial U.S. Seaport Outlook provides crucial intelligence about port capabilities and fundamentals, and how they will affect the surrounding industrial real estate markets in the coming years. Our second feature looks at how technology is disrupting the automotive industry – are such things as ownership and manual driving
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about to become things of the past? We look at the new trends emerging in car-making, including full autonomy – it’s predicted that 10mn driverless cars will be on the road by 2020 – and mobility solutions; the development of vehicles to be shared for multiple modes of transportation. The magazine also has exclusive profiles of six organizations: Milbank, Banner Health, Nautilus Data Technologies, Fairfield University, Crescent Communities LLC and NICTD. We hope you enjoy this month’s issue and don’t forget that you can join the conversation on Twitter @BizReviewUSA
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August 2017
CONTENTS
P08 PROFILE
P18 TECHNOLOGY
F E AT U R E S
Colliers and the future of US Ports D R I V I N G disruption in the automotive industr y
P28 TOP10
Top 10 successful self-made women in the US
CONTENTS
P40
SUPPLY CHAIN 40 Milbank 54 Banner Health
CONSTRUCTION 66 Nautilus Data Technologies 76 Fairfield University 88 Crescent Communities LLC 100 Uptime Institute
GIGABIT 106 NICTD 6
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P100 P76
P66
P106 P88
S P EPCRIO AF LI R LE PORT
Colliers and the future of US ports Writ ten by: JAMES HENDERSON
SPECIAL REPORT
Colliers has just launched a major report detailing the information its customers will need to know regarding the United States’ nine main ports. James Breeze – the man behind the numbers – speaks to Business Review USA
THE PORTS AND shipping industry has been through a period of dramatic change in recent years, with the market hit by the perfect storm of a global downturn, a struggling Chinese economy and a glut of ships that has put some serious downward pressure on rates. The industry has also been characterized by a number of mergers and industry alliances, while companies big and small have fallen by the proverbial wayside, unable to survive the harsh conditions. It is hoped that the consolidation in the sector could help relieve the pressure on rates as previous adversaries work side-by-side to fill ever larger vessels to capacity, also helped by a cost savings from the stubbornly low price of crude. But opinions are mixed and a clear picture to calmer waters is by no means a 10
August 2017
given, at least not in the short-term. In uncertain times, Colliers has launched a service to ensure that its customers in the United States can keep abreast of changes in the sector, with its Industrial US Seaport Outlook covering the latest and most important information at the country’s nine major ports. Speaking from his California base on the United States’ western coast, James Breeze, National Director of Industrial Research explains: “Ports have undergone a significant change over the last couple of years as the global shipping industry has evolved. And with Colliers being an expert on commercial real estate this has had a real effect on our customers – both occupiers and landlords. “A lot of our clients need to know what is going on with the ports as they
JAMES BREEZE
“Opinions are mixed and a clear picture to calmer waters is by no means a given, at least not in the short-term…” – James Breeze, National Director of Industrial Research 11
SPECIAL REPORT
have a lot of products going through them. What we wanted to do was create an interactive report that gave them basic information on the nine major ports in the States, with some of the trends we see for the future and the drivers of demand for products.� East versus west? One of the clear trends apparent within the industry is the emergence of
Savannah Port 12
August 2017
increasingly gargantuan-sized ships, a shift which helps ports save money as it is more cost effective and convenient to load one large ship, rather than two or three smaller vessels. Breeze says that while western ports have traditionally been more effective at handling larger ships, the east coast is closing the gap – all information that could be worth potentially millions of dollars to a company considering
JAMES BREEZE
where to base their e-commerce or warehousing business. “West coast ports, especially Long Beach and California are better set up for bigger ships, at least in the past, because of their deeper harbors. But the Panama Canal has expanded to handle even larger ships and so the east coast ports have had to upgrade their facilities to handle those vessels. These
upgrades include dredging works to deepen harbors in Charleston and Savannah. A lot of east coast ports are adding capital improvements, including panama cranes and rail capacity that will help them handle these larger ships,” he comments. “In addition, improvement work has been conducted on the Bayonne Bridge and Outerbridge Crossing in New Jersey, which will see TEU
“We want to make sure that our clients are educated and have the most up-to-date data on the ports and the real estate that is related to where they’re located” – James Breeze, National Director of Industrial Research 13
SPECIAL REPORT
Long Beach Port
[twenty-foot equivalent unit, which is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals]. That cargo is going to the largest population concentration in that Tri-State area, so most of the products come through the canal will be going there. Once that project is complete there, I think there’ll be a slight shift.” Regionalization But as trends have changed at 14
August 2017
ports, so commercial tenants and landlords relying on the sectors have become savvier and have also changed their ways. “A shift we are seeing from an occupier’s position is a shift towards regional distribution; previously they’d have products come from one port and distributed throughout the country,” Breeze comments. “Now with e-commerce and the competition to offer customers speedy delivery of their goods, we seeing a move towards greater levels of
JAMES BREEZE
regional distribution where businesses clients are educated and have the are shipping to a greater number of most up-to-date data on the ports and ports and adding more warehouse the real estate that is related to where space to get their products to they’re located. Suppliers are using consumers more quickly. Companies these ports to bring their products are happy to keep their products for through so it’s really important they a few more days on a boat, as long have accurate information about what as they can keep warehouses fully is happening at them. A lot of changes stocked, and get have happened over their products out to the last few years customers. That’s a so knowing about real trend we’ve seen.” trends, intermodal The report that capabilities, depths goes out to customers and so on is going is interactive and to help them.” offers information Such an on the capabilities undertaking has of the ports – such taken no small effort; as the number of Breeze speaks with terminals, depth – James Breeze, National Director of members of each of ports, cranes – port who oversee Industrial Research areas and countries the ports economic development, pored the trade with most, the most common interest for information and worked types of products that are shipped with researchers from all of the local and any planned development or markets to put together each report. investment. In addition, customers As the sector looks to navigate can search for property – entailing a period of calmer waters, there e-commerce, warehousing, office are still bona-fide concerns – such and retail facilities – that is for sale, for as the country’s unpredictable lease, or even prices recently paid. President and a currency that “We want to make sure that our is one of the main drivers of the
“A shift we are seeing from an occupier’s position is a shift towards regional distribution”
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SPECIAL REPORT
Charleston Port 16
August 2017
JAMES BREEZE
world economy. But Breeze says that some experts’ worst-case scenarios have so far proven false. “As long as we keep our current trade deals, I don’t think we’ll see a negative effect on our import TEUs. I think there was a fear in the run up to the election that we were going to start trade deals with the likes of China and back out of other deals. However, that’s not what we’ve seen – in fact we’ve said we are going to increase trade with China, so those fears have subsided at least in the short-term. It’s probably a difficult administration to make long-term judgements about but we’ve not seen those fears become reality to date,” he comments. “In addition, I think the dollar has stabilized in recent months, so that is another fear that has subsided, but if the dollar were to strengthen again then demand would likely fall which has a knock-on effect at the ports.”
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TECHNOLOGY
DR IV ING
disruption in the automotive industr y The motor industry is changing beyond all comprehension. Even car ownership and manual driving are becoming out-dated notions. What are the disruptors driving these massive changes in how and what we drive? Edited by: ANDREW WOODS
TECHNOLOGY
TECHNOLOGY IS TAKING over the automotive industry, changing consumer behavior and driving change across all fronts. Innovation is center stage, reshaping how manufacturers address the needs of the modern driver, as they position themselves for the future. These current trends are making a lot of noise‌ Connectivity
This includes autonomous technology, giving drivers the freedom to take care of other personal activities while in motion. Technological advance
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will also allow cars to become upgradeable in public and private cars at a much faster pace. Mobility behaviour
Fit-for-purpose mobility solutions will continue to rise, with many vehicles becoming shared for multiple modes of transportation. This could be stark in bigger metropolitan cities much more receptive to changes in transport. Smaller, rural centers show more resilience to these changes. Shared mobility will fuel the consistent shifts in the
DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRY
automotive industry, as private car ownership declines in the United States. Tailored solutions that meet the needs of every consumer will lead the charge for specialized vehicles catering to specific needs.
automobiles are real. Forbes predicts that 10 million driverless cars will be on the road by 2020, with one in four cars being self-driven by 2030, which will surely signal the death knell for the traditional model of manually-driven cars.
Full autonomy
Regulation is being revamped to address the shift toward technologically automated vehicles. While fully autonomous vehicles may not be available from a commercial standpoint until at least 2020, advanced driver-assistance systems (ADAS) play a huge role in preparing consumers, corporations and regulators for the reality that driverless
Electric vehicles
Although electric vehicles are not new, they are becoming quite competitive in the automotive market. There are more options for charging batteries, and they come at a lower cost. With stricter emission regulations and increased consumer acceptance of these vehicles (fuel cell, hybrid, battery electric and plug-in), the number of
DISRUPTIVE TECHNOLOGIES have become a staple in the REBIRTH
AND REALIGNMENT OF THE AUTOMOTIVE INDUSTRY, and it won’t ever be the same again
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DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRY
electric vehicles could become almost 50 percent of new-vehicle sales by 2030. Indeed, many countries are beginning the outlawing of traditionally-fuelled vehicles. France plans to ban all petrol and diesel-fuelled cars by 2040. Ford is already planning wireless charging car park spaces and the Volkswagen I.D. – due to be fully autonomous by 2025 – will have a range of 400-600 miles on one charge. The Faraday Future selfdriving electric motor has faster acceleration than a Lamborghini Aventador. Volvo is also making
bold moves, scrapping petrolonly cars by 2019. Harvard Business Professor Clayton Christensen said disruptive technologies always enter the market as cheaper but inferior alternatives. He believes these technologies “underperform established products in mainstream markets”. That is not always true, as further advancements bring disruptive technologies to life in forms that constantly shape the direction of the automotive industry. These disruptive 23
TECHNOLOGY
technologies can also be called ‘Big Bang Disruptors’ that usually equate to being better and cheaper from inception, which completely negates Christensen’s theory and advice. Big Bang Disruptors are also called exponential technologies, where they benefit from unique economic properties, allowing them to become more powerful while they get cheaper. These technologies deliver repeat
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August 2017
improvements in performance and price over time. Intel’s cofounder Gordon Moore talked about computing power as an exponential technology, which turned into what we now call ‘Moore’s Law’. For over 50 years, his knowledge and expertise has been used to help transform the global economy. Moving towards the future
Big Bang Disruptions don’t stop
DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRY
with these four. Automotive design is also a factor as it becomes fully computerized. This transformation helps with the improvement of materials and longer life spans, simplified maintenance and on/offline integration. Of course, these technologies also bring additional areas of concern, with consumer issues of security and privacy paramount. Knowing what consumers want from their ‘autonomous’ car experience is key. Even with all the innovative offerings what
do consumers want to pay for, and how can the manufacturer guarantee security and safety once they have acquired the vehicle? According to research from the Bled eConference in 2016, car-to-car communications, authentic systems and stable connections must be in place. Critical software systems must be enhanced to the point where they cannot be infiltrated, utilizing systems that have at least a 20-year lifecycle in order to be effective. 25
TECHNOLOGY
MAJOR CAR MANUFACTURERS have started building partnerships with these new tech firms TO ENHANCE THEIR SYSTEMS
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August 2017
Over the last five years, there have been thousands of disruptive technology companies emerging to take their place in the rankings. From evolving business models, to advancements in AI, the ecosystem of the automotive industry will never be the same.
DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRY
Although these new companies are making waves, it takes a while to adopt a new innovation and there are still many traditional suppliers who don’t have an out-of-the-box mindset, preferring to stay within the current status quo. One thing to note, however -
these new start-ups are making it easier to become a player in the pond, bringing innovation to the forefront a lot faster, with fewer costs associated. Major car manufacturers have started building partnerships with these new tech firms to enhance their systems. While the standard innovations still point to the main four, the rise of cybersecurity, mapping solutions, eCommerce and driver safety investments are mainstays. More than 25 acquisitions were made by OEMs in 2016, with more to come. Disruptive technologies have become a staple in the rebirth and realignment of the automotive industry, and it won’t ever be the same again. Adopting new technologies and products that increase safety and efficiency while reducing costs is only the tip of the iceberg. With so many new incubator platforms waiting in the wings, new concepts are just a thought away.
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TOP 10
Top 10 successful selfmade women in the US We look at the remarkable achievements of the most successful self-made women in the United States (as featured in the Forbes survey) Writ ten by: ANDREW WOODS
TOP 10
10 LYNDA RESNICK Net worth: $2bn
Resnick and husband Stewart are behind some of the world’s biggest food and drink brands, including Pom Wonderful, Mandarin Halos, Wonderful Pistachios and Fiji Water; all produced by their The Wonderful Company. The most valuable asset to thebnaire couple’s fortune, however, are the thousands of acres of land they own, on which the almond, pistachio, orange and pomegranate groves thrive (in California, Texas and Mexico). The Resnicks’ Wonderful owns flowerdelivery service Teleflora and Mrs Resnick is also the author of the bestselling book Rubies In Your Orchard: How To Unlock The Hidden Gems In Your Business.
09 ELAINE WYNN Net worth: $2.2bn
Wynn has spent four decades revitalising the Las Vegas Strip as co-founder of both the Wynn and Mirage Resorts with former husband Steve Wynn. Theirbn-dollar Vegas empire included The Mirage, Treasure Island and The Bellagio where she helped put together the hotel/casino’s unprecedented fine art gallery. Now Wynn is applying the same passion to both her own private collection and her role as co-chair of the Los Angeles County Museum of Art, where she is spearheading a $600mn campaign to build a home for the museum’s permanent collection.
07 MEG WHITMAN
08 JOHNELLE HUNT Net worth: $2.5bn
Together with her late husband JB, Hunt established a rice hull packaging company in 1961. Eight years later they formed the trucking company JB Hunt Transport Services, when Red Hudson, founder of Hudson Foods, suggested they buy a refrigerated trucking company, complete with five tractors and seven trailers. Then in 1983, The Lowell Ark Business went public and is still one of the biggest transportation companies in the US. Since 2002, Hunt Ventures, set up by JB, and now run by his wife, has built more than 1mn square feet of retail and commercial space in the Pinnacle Hills area of Rogers, Arkansas, home to the 10-story Hunt Tower.
Net worth: $2.6bn A graduate of Princeton University and Harvard Business School, Whitman served as an executive in The Walt Disney Company throughout the 1980s where she was Vice President of Strategic Planning. The nineties saw Whitman serve as an executive for DreamWorks, Procter & Gamble and Hasbro, before serving as President and Chief Executive Officer of eBay from 1998 to 2008. Whitman also oversaw the expansion of eBay from a mere 30 employees and $4mn in annual revenue when she started, to more than 15,000 employees and $8bn in annual revenue during her 10 years with the online shopping company. In 2014, Whitman was named 20th in Forbes List of the 100 Most Powerful Women in the World. Whitman is currently the President and Chief Executive Officer of Hewlett Packard and Hewlett Packard Enterprise, as well as the Chairwoman of HP Inc.
TOP 10
06
DORIS F. FISHER Net worth: $2.6bn
Fisher started The Gap in 1969 as a San Francisco jeans and music store (initially selling Levi’s jeans)
Fisher is the 142nd richest person in the “Forbes 400” list and was ranked 503rd in the list of Worldbnaires. Fisher started The Gap in 1969 as a San Francisco jeans and music store (initially selling Levi’s jeans) along with her late husband Donald. The idea behind the store came from Don’s inability to find a pair of jeans that fitted him properly. The Gap Inc. and its five primary divisions (Gap, Banana Republic, Old Navy, Intermix and Athleta) has 135,000 employees and 3,727 stores around the world. Fisher served as the merchandiser of The Gap Inc from 1969 through to 2009 and her sons Robert and William both sit on the company’s board.
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05 JUDY FAULKNER Net worth: $2.7bn
Computer programmer Judy Faulkner started Epic Systems (formerly Human Services Computing) – which supports the medical records of half the population of the US – in 1979 with a staff of just three part-time employees and a $6,000 investment from her parents. Today, Epic has five satellite sites within the US, as well as its head office in Verona, Wisconsin, along with offices in The Netherlands, Dubai, Singapore and Copenhagen, employing 8,000 people involved with software developing, technical problem-solving, project managing and user experience designing. In May, Forbes named Ms. Faulkner the most successful female technology company founder.
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TOP 10
04 JUDY LOVE Net worth: $2.9bn
Judy and husband Tom Love started their business empire when Tom became manager of a gas station
Judy and husband Tom Love started their business empire when Tom became manager of a gas station; where he learned the ins and outs of the business, while Judy worked at Pan American Oil Company. The couple had an idea of buying up abandoned service stations in a bit to sell the cheapest gas around and first leased a station in Watonga, Oklahoma in January 1964. Today, Love’s Travel Stops & Country Stores has more than 300 locations in 40 states nationwide. Love still serves as executive secretary at Love’s and chairwoman at Love Family Fund, which saw revenues rise 13% to $16bn in 2016 thanks to 47 new locations.
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03 OPRAH WINFREY Net worth: $3bn
The ‘Oprah effect’ has seen the multimedia actor/TV presenter, author and all-round entrepreneur become one of the most bankable brands in the world. Having made a name for herself as Sofia in Steven Spielberg’s The Color Purple in 1985, Winfrey went on to host the nationally-syndicated Oprah Winfrey Show a year later; a talk show that established an audience of 10mn over 120 channels. The first year saw the show gross $125mn, of which Winfrey received $30mn. Winfrey’s Harpo Productions later bought the show from ABC and the rest is history, with best-selling books, magazines, TV, radio and digital production (and the establishment of the Oprah Winfrey Network) and numerous sponsorship deals with the likes of Weight Watchers.
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02 DIANE HENDRICKS Net worth: $4.9bn
Hendricks and her business partner and late husband Ken started from humble beginnings. She was raised on a small dairy farm in Wisconsin, while Ken was the son of a roofer. The couple met and formed a powerful business partnership initially making their way in real estate. But it was Ken’s inside knowledge of his father’s roofing business that led to the biggest success story: wholesale roofing distributor ABC Supply Co. Starting off as a single store, ABC now has more than 700 locations and 12,000 associates worldwide, making it the largest wholesale distributor of roofing in the US. In 2016, Hendricks acquired building materials distributor L&W Supply for $674mn. 37
TOP 10
01 MARIAN ILITCH
Ilitch is due to open an ambitious
$1.2bn sports
and entertainment district later this year that will connect Downtown and Midtown through 50 blocks of thriving businesses
Net worth: $5.1bn
After years of urban and economic decay, Detroit is bursting back into life and one of the key instigators is Marian Ilitch, currently rated as the most successful self-made woman in the US. Ilitch is due to open an ambitious $1.2bn sports and entertainment district later this year that will connect Downtown and Midtown through 50 blocks of thriving businesses, parks, restaurants, bars and event destinations. The park brings together four big Detroit sporting franchises,
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two of which – the Detroit Red Wings and Detroit Tigers – Ilitch owns. Another of Ilitch’s business successes to feature in the development is pizza chain Little Caesars – sponsor of the massive indoor sports arena – which is to gain a brand-new headquarters, employing 1,880 new staff. Little Caesars – currently the third biggest pizza chain in the States – was founded in 1959 by Ilitch and her late husband Mike.
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A meter for success Written by: Dale Benton Produced by: Denitra Price
Milbank has been a market leader for 90 years and through strategic leadership will forge ahead with a lean, technologically sound manufacturing process
MILBANK
F
ounded in 1927, Milbank has established itself as a leading manufacturer of metering, electrical enclosures and enclosed controls across the US. Now celebrating its 90th year, the third-generation, family-owned company must embrace the future of manufacturing, while maintaining the long history of significant growth and unquestionable success of earlier generations. What is the secret to almost a century of success? An unrivalled commitment to quality, innovation, financial strength and community involvement. “What I think has been truly instrumental for the company, particularly over the last 12 years, has been our move down the path of lean manufacturing,” says Brad Skinner, President of Milbank. “In 2005, the company started to instil lean manufacturing within all our facilities, working to eliminate waste.” This turn to lean manufacturing saw a significant shortening of lead times, improved inventory management and taking what Skinner describes as “unnecessary” steps out of the manufacturing process.
“Customers don’t want to pay for waste, they want the product as fast as possible. Lean manufacturing has been an incredible success over the past decade” – Brad Skinner, President, Milbank 42
August 2017
S U P P LY C H A I N
“Customers don’t want to pay for waste, they want the product as fast as possible. Lean manufacturing has been an incredible success over the past decade,” he says. Before Skinner became president in 2016, he worked his way through the company for over 31 years from factory floor to the top. Skinner now sits in a key position to oversee the company’s transition into the future of the manufacturing industry and maintain the marketleading reputation Milbank has earned. Master Plan Through a series of strategic planning meetings in 2016, Skinner and senior executives, board members and family owners sat down to pull together a strategy for the company’s future. Here, Milbank agreed to develop a Manufacturing Technology Master Plan. “This master plan serves as a tool to help us explore and develop a three-year timeline so we can prioritize the implementation of capital equipment, tools and technology,” says Douglas Ubel, Vice President
Brad Skinner President
of Purchasing. “We are looking for new capabilities to enhance quality, reduce costs, add capacity and improve safety. It’s not just to bring in new technology, but for a specific purpose to help with cost structure, improve products and enhance our capability in the marketplace.” Ubel joined the company in 2015 and has worked on a number of manufacturing projects including supply planning, capital investment processes and process improvements, and is now leading the strategic technology initiative. The master plan will see a series of subteams work through the company’s
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existing manufacturing plants and identify the current processes and technology that are in use, while also noting the age of current equipment. “We spent a number of meetings brainstorming and making an exhaustive list,” says Ubel. “From there, we identified where we had a known solution in place and where we didn’t. From those with a known solution, we could look at the benefits of what those solutions would bring.” The subteams are investigating to find potential solutions and will report back to the full team. This will generate a scope of work to be evaluated and prioritized. Milbank has targeted a completion date for this investigative work, and plans to begin implementation in early 2018. The company is committed to this effort, with automated technology being introduced to the fabrication element of the manufacturing process. “It’s a significant change, but already we are thinking about the next step in that process. You only know what you know. This technology scouting is helping us find new developments and possibilities we
Doug Ubel
Vice President of Purchasing
“This master plan serves as a tool to help us explore and develop a threeyear timeline so we can prioritize the implementation of capital equipment, tools and technology”
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didn’t know were out there,” says Ubel. Staying ahead With technology and innovation transforming on a daily basis, Ubel is all too aware of the need to stay abreast of the pace of change. “Technology scouting is not just a onetime occurrence; it’s an ongoing activity because developments are happening faster than ever before. We must keep up on those new possibilities.” This need to stay ahead of the game is a feeling shared by Skinner, who looks at it from a different perspective – the employee. “In order to retain high-preforming employees, we have to offer innovative technology. Adapting to,
Charlie Milbank
Founder of Milbank
and ultimately leading the technology shift, will allow us to develop our employees while simultaneously updating our product offerings. Implementing new technology is not an overnight process. As much as Milbank is improving and updating its processes, it still operates with existing technology and employees who are used to it. “When you look at the factory floor, some employees have worked at Milbank for more than 30 years. How do you take that employee, who’s used to working in a particular way and implement a piece of machinery or technology they aren’t used to?”
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“How are we going to adapt rapidlychanging technology? We have to work to be on the front side of that change to continue as an industry leader” – Brad Skinner, President, Milbank
Skinner says. “That has been a hurdle we are overcoming. We’ve had a number of business partners come in and effectively train our employees on new systems, machinery and software. We’ve also sent employees out to other manufacturers to get additional training, which has proved incredibly successful.” Engaged As president, Skinner oversees every facet of the company, including the transformational initiatives. In addition to the Technology Master Plan, Skinner and the executive team have implemented a new form of employee engagement. “The initiative team can go wherever they want inside and outside of the company, to figure out what
machinery or technology can help us grow,” he says. “We also wanted input from our employees. They’re the ones out on the floor everyday building our products. To gain insight on what we are doing right or how we can improve, we began visiting all our locations to conduct roundtable meetings where employees can voice their thoughts.” Employees are encouraged to share ideas on the company’s successes, shortfalls and areas for improvement that are personally relevant to their individual work. Skinner, speaking from his own
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Connecting You to the Right Product For more than 70 years, Connector Manufacturing Company has been dedicated to the design, engineer and manufacture of quality products for the OEM and MRO markets.
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experience, is a firm believer that the employees have the key vantage point to help the business to grow. “I want to hear from people on the floor. For us to take their messages and turn them into actual initiatives has really paid off – they feel valued, and they have a say.” As the company moves into the future, just shy of 100 years of operation, both Skinner and Ubel will play a huge role in the direction of Milbank through not only the Technology Master Plan,
but future initiatives that arise from both internal analysis and external market developments. For Skinner, the company must continue to ask the question that matters – how is the product going to change? “How are we going to adapt rapidly-changing technology? We have to work to be on the front side of that change to continue as an industry leader.”
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MILBANK
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S U P P LY C H A I N
But above all, Milbank looks forward, building upon its marketleading legacy and reputation. Skinner attributes the success of the company to the solid foundation established by the previous generations of ownership. “We are very lucky to have had a founder, second and third generation family who invested so heavily in the quality and safety of our product. Their leadership is what worked to guide us and set us up for the future,” Skinner says. “We pride ourselves on being agile and proactive to respond to customer needs and industry demands.”
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Delivering
wellness to the West
Banner Health’s supply chain is recognised by Gartner as one of the best in the country, and not just in the healthcare Supply Chain: this has been achieved by a culture that involves every decision making process from capital spending decisions down to the procurement of consumables Written by John O’Hanlon Produced by Denitra Price
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B A N N E R H E A LT H
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ased at Phoenix, Arizona, Banner Health is one of the largest not for profit healthcare organizations in the United Sates. It was founded in 1999 out of a merger between Samaritan Health System and Lutheran Health System, since when it has grown the number of hospitals and medical centers under its umbrella to almost 30. Its Western Region facilities serve a number of rural areas -- many are the only inpatient facilities available within the community. It also embraces nearly 300 clinics, and employs more than 50,000 people in seven western states. In the Arizona Region, Banner Health is the state’s largest private employer, and is one of Northern Colorado’s largest employers. As such, Banner Health operates a highly complex and important supply chain process, and it is one that is known for being datadriven, disciplined in cost controls, and results oriented with its supply chain, leaders, physicians and clinicians all working together. The company’s efforts were
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acknowledged in this year’s Healthcare Supply Chain Top 25, which recognizes leadership in improving human life at sustainable costs. A regular in the report, Banner Health placed twelfth in the 2017 edition, lining up alongside such well-known names as Johnson & Johnson, Cleveland Clinic and Pfizer. “The company maintained strong Truven Health Analytics results and a strong bond rating,” said the report. “Banner Health is a $7bn regional system that has methodically built a cadre of solutions in the centralized distribution center over the past five years. Most impressive is how the company managed these capital projects on a limited budget with partners. Capabilities of their vertically integrated supply chain include traditional distribution as well as custom procedure trays, home delivery, pharmacy repack, compounding operations and global sourcing initiatives. “The company’s supply chain continues to be a model for alignment to corporate strategy. The supply chain’s alignment to
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“Women play a major role in Banner Health’s workforce, comprising 76% of its nearly 49,900 employees as of late May”
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reshape healthcare IT
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Banner Health’s 2020 vision has the organization moving from an acute care focus to clinical quality to now a focus on population health in its supply chain response. “The company’s acquisition of the University of Arizona Health Network is progressing. It is showing savings through a segmented supply chain response that takes a slightly different approach to supply chain for academic medical centers vs. its base community health efforts.” As part of Banner Health’s
continuous commitment to improvement, it recently signed a strategic deal with Amsterdambased devicemaker Royal Philips. The 15-year contract that will use technology to improve efforts in telehealth, population-health management and other areas. It’s the fifth partnership Philips has signed in North America in roughly a year and a half, and one of dozens the company has signed globally in the past decade. The agreement with follows up on collaboration between the two
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organizations on telehealth. Banner previously piloted Philip’s Intensive Ambulatory Care program, which uses telehealth to support treatment of patients who are having complex medical issues due to multiple chronic conditions. By identifying populations that could benefit from coaching and linking care teams from different disciplines, the program aims to help hospitals better treat these patients, who carry significant healthcare costs. The companies say the Intensive Ambulatory Care program reduced overall costs of care by 35%, lowered hospitalisation by 50%, cut average length of stay by 50% and reduced 30-day readmissions by 75%. In the company’s history, there have been many mergers and alliances, a notable example of which is last year’s joint-venture with Aetna to develop a health plan in Arizona. The jointlyowned health plan company, Banner Aetna, was established with designs on improving quality, affordability and the patient experience. The partnership combines Banner’s care management capabilities and high-quality facilities, providers
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and delivery system with Aetna’s leading health plan expertise, cutting-edge analytics and health information technology. Together, they will provide health coverage to employers and their employees in Maricopa and Pinal counties with plans for future statewide expansion. The partnership builds on the success of Aetna and Banner’s five-year Accountable Care Organisation relationship, previously announced in 2011, strengthening the companies’ shared commitment to reward value over volume of care for the delivery of better outcomes and lower health care costs. The new health plan will focus on the consumer experience by combining fully integrated care teams, health insurance and administrative services, with a goal of eliminating redundancies in care as well as administrative hassles. Savings achieved by streamlining care and services will be passed on to consumers and employers through lower premiums. “We are committed to finding new ways to deliver more efficient and effective care for our members in
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“We are committed to finding new ways to deliver more efficient and effective care for our members in Arizona and across the country” Arizona and across the country,” said Gary Loveman, Aetna’s executive vice president and president of Consumer Health and Services. “Together, Aetna and Banner are rethinking, reimagining and redefining the health care model to reward better outcomes and create
healthier days for our customers.” Banner Health is also an organization with its finger on the technology pulse; its North Colorado Medical Centre (NCMC) recently announced its use of a 3D printer to enhance treatment for cancer
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S U P P LY C H A I N
Diversity at Banner Health
patients undergoing radiation. NCMC’s Oncology Department began treating its first skin cancer patient using 3D-printed molds, called bolus, earlier this month. Since then, providers are now treating multiple cases with plans to expand its use to other cancer treatments and other Banner hospitals later this year. “The sky’s the limit when it comes
to 3D printing,” said Dr. Alexander Markovic, Medical Physics Program Director for NCMC’s Radiation Oncology. “With the 3D printed bolus, we are able to better target the radiation dose so that the treatment is more effective.” Markovic and his team pioneered the new 3D printing program at NCMC’s Cancer Institute, paving
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“The sky’s the limit when it comes to 3D printing”
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the way for providers to roll out the programme at Banner MD Anderson Cancer Center in Gilbert, Ariz., as well as McKee Medical Center in Loveland, Colo., in the coming months. In addition, Banner has proudly announced that its Desert Medical Center’s executive leadership team is now comprised entirely of women, following the recent addition of Chief Operating Officer Cristal Mackay. The facility’s leadership team also includes Laura Robertson, CEO; Tanya Kne, chief medical officer; Cindy Helmich, chief nursing officer; Cheryl Tong, chief financial officer. Many members of this team also lead Cardon Children’s Medical Center, which is located on the Banner Desert campus, along with David Morimosato, MD, who is chief medical officer for that facility.
“Banner Health takes great effort to maintain a diverse workforce, bringing together a wide variety of professionals to provide excellent patient care,” said Jackie Hunter, executive recruiter who oversees Banner Health’s workforce diversity efforts. Women play a major role in Banner Health’s workforce, comprising 76% of its nearly 49,900 employees as of late May. Several members of Banner’s Senior Leadership Team are women, including Becky Kuhn, chief operating officer; Alexandra Morehouse, chief marketing officer; and Naomi Cramer, chief human resources officer. More than half of Banner’s 348 senior managers are female. Among 21 CEOs across the system’s acute care facilities, 57% are women.
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DATA THAT WALKS
ON WATER Written by: John O’Hanlon Produced by: Tom Venturo
Sometimes the best solutions are the most obvious. As the market wakes up to Nautilus Data Technologies, the question many will be asking is why nobody thought of this before
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he world is facing a data tsunami. With exponential growth happening already, how can more capacity be added quickly and economically? Where will all the energy needed come from when data centers are expected to consume 140 billion kilowatt-hours annually by 2020, costing American businesses $13 billion in electricity bills and emitting nearly 100 million metric tons of carbon pollution each year? How can emerging markets, the world’s fastest growing, even hope to keep up? The traditional model is unsustainable; that’s for sure.
Some eight years ago, Arnold Magcale had a lightbulb moment. A recognized technology industry expert with decades of
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experience in data centers and cloud management, he is also a US Navy Special Forces veteran. While assessing the large amounts of data that naval command centers process as they cruise in the Pacific, he asked the question: why can’t we integrate the compact watercooled solution they use to the world of enterprise? Why indeed do most of the world’s data centers rely on outdated air conditioning technologies for cooling? This led him to found Nautilus Data Technologies in 2013. At the time data centers were major contributors to the fact that 10 percent of global power production was being consumed by IT – a model that could not be sustained after 2025. He and his Director of Operations Byron Taylor set about bringing together the best engineering and technical minds to bear on the problem. Magcale had helped build one of the first data centers in Silicon Valley, close to where Nautilus is now located at
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Pleasanton, California. Taylor had held senior positions in the delivery of critical infrastructure – together they brought 60 years of experience in the data center environment. They did not waste any time. “We launched a proof of concept (POC) in 2014 to validate our idea, partnering with the US Navy, Applied Materials and Veolia. It was called ‘Project Nautilus’ and the goal was to demonstrate how our water cooling
We have something really different – we are pretty confident that the market will respond to significant cost savings Jim Connaughton CEO
Jim Connaughton CEO Jim Connaughton has served as Executive Vice President at several prominent clean energy and information technology companies. In 2001, the United States Senate unanimously confirmed Mr. Connaughton as Chairman of the White House Council on Environmental Quality, where he served until 2009 as President George W. Bush’s senior advisor on energy, environment and natural resources. There he helped develop and implement market-based policy and technology solutions to some of the world’s most pressing environmental challenges - including energy production, air and water pollution, climate change, wetlands restoration, and conservation of marine resources.
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technology could cut power usage, eliminate water consumption and significantly reduce air emissions without using any water treatment chemicals. The results exceeded our greatest expectations.� Validated by Jacobs Engineering and Critical Engineering Group, they succeeded in hitting unprecedented levels of power utilization efficiency (PUE), using high density racks. The exercise showed that Nautilus could cut a data center’s operating costs by 30 percent, while delivering fivefold higher power density per rack and an 80 percent improvement in overall energy efficiency.
Our goal was to show how our water cooled technology cuts power use, water usage and emissions to the atmosphere Arnold Magcale CTO and Founder
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How? Byron Taylor explains: “Data center temperatures must be kept cool inside the facility to maintain the equipment, but traditional air conditioning methods have been expensive and inefficient. Nautilus technology changes that. Arnold developed a way to use naturally chilled water to cool data center facilities. He integrated proven maritime and industrial technology with next generation data center infrastructure to advance the data center industry.”
The POC project was a fully functioning prototype, says Byron Taylor - a 100 foot vessel containing a five rack data center. “We ran that for five months, proved out all the systems and used it to do final design engineering. It helped us with componentry and design and it was on that basis that our final patents were issued.” The technology has been tested and validated at 74kW of load per rack and the new design is expected to reach 105 kW, with 10 times more capacity per rack than
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what’s available in the commercial marketplace, he adds. The vessel was built at the yard of Linn Marine at Mare Island just 45 miles north of Nautilus’ headquarters. Here too the company is now building a much larger 500-rack data center. Named Eli M, it is 230 feet long and 55 feet wide, nearly as big as a football field. Sustainable
By siting the data center racks on a floating facility – basically a barge – a very high density could be achieved, reducing the footprint of the data center by a factor of 60 percent.
The modular build methodology also allows Nautilus to deploy additional facilities in the same location, using the same connectivity and backbone infrastructure, by bringing another vessel to the site as demand dictates. The impact on its environment is greatly improved. The racks of servers are on the data deck with mechanical and electrical equipment and UPS systems housed below. Cooling is achieved through an open loop that draws in seawater and returns it to the ocean at a differential temperature
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The modular build methodology we are using allows us to deploy additional footprint in the same location Byron Taylor Director of Mission Critical Operations no more than four degrees Fahrenheit – undistinguishable 100 feet from the vessel. Through a heat exchanger it cools a closed freshwater loop that in turn cools the air being drawn from the racks. In March 2016 Arnold Magcale succeeded in attracting one of the country’s foremost environmentalists to lead the business, and himself stepped into the role of CTO. Jim Connaughton was Chairman of the White House Council on Environmental Quality from 2001 until 2009, and President George W. Bush’s senior adviser on energy, environment and natural resources. The task he took on
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as the new CEO was to transition the company to full commercial deployment. “We are leading the industry’s transition from air-cooled server farms to water-cooled facilities. Significant cost savings plus sustainability and innovation is our hallmark as we proceed to building our first commercial facility.” Connaughton is spending a lot of his time traveling the globe, particularly Europe and Asia, meeting with international business leaders, technology professionals and environmental experts who want to pursue a more sustainable and economical data center solution. His latest trip was to Monaco to pick up
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the 2017 Cutting Edge Breakthrough Award from Datacloud Europe. “This kind of recognition only comes if the market sees a real opportunity. The sector is ready for it. We have something really different – we are pretty confident that the market will respond to significant cost savings. They also like the low environmental footprint and will be interested to see how we accelerate the transition to high performance computing.” Jim Connaughton believes that in 10 years’ time most data centers will be water cooled. For now the global market is wide open to Nautilus and its investors, who according to Arnold Magcale, are right behind another of his visionary aims – to democratize the storage and transmission of data for the good of the developing world and the environment shared by us all.
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BUILDING
A STRONG EDUCATION Written by: Nell Walker Produced by: Tom Venturo
FA I R F I E L D U N I V E R S I T Y
Associate VP for Facilities at Fairfield University, David Frassinelli, discusses the various construction projects that have transformed the university into an incredibly attractive prospect for students and subcontractors alike
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airfield University in Fairfield, Connecticut, is dedicated to keeping itself fresh, innovative, and relevant; as a result, it is consistently a top tier choice for over 4,000 undergrads and their families per year. Fairfield is currently undergoing over $85.5mn in campus renovations, including a $12mn lacrosse pitch, a $22mn recreation complex, a $60mn residential building program, construction of a parking garage, a student center expansion, and the completion of the $31mn Center for Nursing and Health Studies, as well as an expansion to Fairfield Preparatory School. David Frassinelli, Associate Vice President for Facilities at the university, leads the innovative construction projects. He has spent his career in construction, having worked for Gilbane Building Company for 12 years before joining the Fairfield team. As he explains, the projects are part of the University’s strategic plan. “Our strategic plan explores how Fairfield University is going to be sustainable from a financial perspective on a long-term basis,� says
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David Frassinelli
Associate Vice President for Facilities
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“Image is a factor in deciding
to attend a school, and it’s important to continue to be a leader in modernizing college campuses, as Fairfield does� David Frassinelli, Associate Vice President for Facilities
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Frassinelli. “We are focused on the future of Fairfield, where we’re going, and how we maintain sustainability financially with the challenges of the private education market. The plan includes growth and undergrad enrollment, which begs the question: where do they eat, sleep, park, and learn? That informs our master plan to talk about the facilities needs we currently have and need.” Hence taking on multiple construction projects at once. The Rafferty Stadium lacrosse and athletic field is the beneficiary of a major donor; a project fitting the now nationally ranked teams. One of the goals of the Leslie C. Quick, Jr. Recreation Complex renovation was to promote the campus’ health and fitness concentration, which extends their Jesuit education dedication to mind, body, and spirit. “One project that’s approaching completion is the $31mn Center for Nursing and Health Studies building, which has been a bright star on the horizon, and is not necessarily limited to nursing,” Frassinelli says. “It’s about health studies in general,
and we see overlap with our Dolan School of Business and School of Engineering,” says Frassinelli. “For example, the Dolan School offers a Masters in Public Administration, so you can take some business classes and some health studies classes and come out with a multidimensional degree. Like most universities, we’re seeing a general increase in interest in the sciences, so we believe, in terms of academics, that we need to make an investment in those facilities.” As part of the school’s strategic plan, Fairfield began working on some projects this year to align with its 75th anniversary; it is important to Frassinelli that any additions are for the benefit of the student experience, as has been one of the main goals since the school’s founding in 1942. “There is a large amount of construction, but we found that we often have our best enrollment years when we are doing major building programs because it really speaks of a university that is thriving and growing,” he says. “It’s rare you’ll see this level of capital investment that is not only aimed at taking on
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more students, but also of improving the experience for enrollments we’ve consistently maintained. “It’s common to have competition with other schools, but what do the students actually look at on a college tour? Image is a factor in deciding to
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attend a school, and it’s important to continue to be a leader in modernizing college campuses, as Fairfield does.” Of course, priorities for students often go beyond the facilities available to them. Sustainability is an everevolving importance in deciding which
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college to attend, and Fairfield dedicates itself to address those needs with their continuous projects to be greener. Frassinelli chairs the sustainability committee for Fairfield, helping it to achieve local and national awards, including the EPA’s Energy Star Award for its 4.6MW cogeneration facility. The University even ended up on the Sierra Club’s
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list of “cool schools” for its sustainability efforts. “We typically design and build to the LEED silver standard, but we don’t necessarily pursue LEED certification,” Frassinelli explains. “We invest money associated with their certification back into our projects. For the parking garage, all the lighting is LED and one side of it has green screens growing up the side. One thing that’s unique about our university is that the heating and cooling of our central campus is
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handled by a combined heat and power cogeneration facility, so we are producing electricity and heat at very efficient rates. The buildings are also well insulated, and our school of nursing has some passive solar components in the form of baguettes – these are all very positive steps,” he adds. Fairfield collaborates with a group of architects for design of these projects. Frassinelli and his team took a lean approach to incorporating what was needed, bringing architects in early to ensure that necessities were met.
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Fairfield has the flexibility as a private institute to pre-qualify subcontractors for construction, but it does hold open and competitive bidding. The University’s ultimate goal is to create an attractive campus – not just for the students, but for contractors. “We have meetings with the subcontractors, and I encourage them to continue to do their best and how important their hard work is to the University, both esthetically and financially,” says Frassinelli. “If they work efficiently and safely, we make decisions quickly and pay quickly.
“The payback for the University is that if a subcontractor is shown four jobs and can pick one, they pick Fairfield University. I’ve received a lot of feedback from subcontractors to say they really do enjoy working here, and from one project to the next they’re bidding aggressively to stay on campus. That, to me, is an indication we’re doing something right.” Fairfield recently held an event during National Safety Week while four construction sites were active. Construction managers and trades were invited to have
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lunch and see a motivational speaker. 250 tradespeople arrived, signifying the popularity of the university within the industry. “We talked to them about how the university feels very strongly that everybody needs to go home in the same condition they came to work,” Frassinelli explains. “The event also provided the university with a forum to say ‘thank you’ to the trades. They
arrive on our campus, they work hard, they leave, and sometimes it may seem thankless, but the facilities they’re creating are so critical to our mission that as a university we wanted to thank them. I think that meant a lot.” By the time Fairfield’s students arrive in Fall 2017, the nursing school, student center, and the precasting for the parking garage and dormitory will be complete, minimizing the impact
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on students. Creating a streamlined construction process from planning to building helps to cement its status as a positive and innovative environment. Frassinelli concludes: “We aim to make decisions in a timely manner and do everything possible to mitigate or dissuade extensive changes when projects are already under construction. Those are the areas in which an owner can help themselves to make the process more efficient, so ultimately they end up with a better value at the end of the project. Because it’s really all about creating value in terms of cost and quality of the projects.”
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Building communities for a better quality of life Whether it’s envisioning communities with orchards and herb gardens, or with easy access to public transportation, Crescent Communities ensures the people who live in their neighbourhoods experience life on another level
Written by: Leila Hawkins Produced by: Tom Venturo
A
typical neighbourhood built by Crescent Communities might feature upscale grocery stores and shops on the ground floor, with apartment homes suitable for families above. They may be positioned intelligently next to multi-modal transportation hubs so cars are used as little as possible. Or they could be strongly themed around food, encouraging residents to grow their own produce and cook at home. Whatever the case, the element they all have in common is that they are designed to offer residents premium quality of life. Eric Rothrock, the company’s Vice President of Preconstruction, manages all estimating, general contractor selection and agreements, and design processes and standards of Crescent’s entire
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nationwide portfolio. Projects can vary from garden apartments for families who enjoy a suburban lifestyle to homes in high-rise buildings leased to millennials, along with increased numbers of people hailing from Generation X. In construction Crescent Lucerne in Orlando is one of several ambitious projects Crescent is currently working on. Formerly a hospital site, it is being transformed into a ground up luxury residential community stretching over 4.6
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Project Portfolio
Established in 1968, Johnson's Modern Electric Company, Incorporated provides electrical construction services throughout the Southeast. JME is licensed and has completed work in over 12 states. From our offices in East Bend, Mooresville, and Raleigh, North Carolina, we provide all facets of electrical construction services.
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acres, integrating 373 multi-family apartments with food retailers and parking. When it opens in the summer of 2018, it will comprise two separate sites bifurcated by a thoroughfare but connected by two bridges. In Charlotte, the largest city in the mostly rural, South-eastern state of North Carolina witnessing a huge boom in people moving in, Crescent is developing Crescent Providence Farm, which will be centred on food. Adding to the master planned restaurants, Crescent Providence Farm will have a garden for residents to plant their own herbs, communal dining areas featuring tables made from salvaged trees, and even an outdoor kitchen programmed for cooking demonstrations. Rothrock explains that although Crescent Providence Farm is in the suburbs, it will have a distinct urban vibe one might typically find in an urban setting, with the garden component being strongly influenced by the surrounding farmland. “It’s unique in the fact that
BRIAN J. NATWICK PRESIDENT, MULTIFAMILY
it’s not a traditional garden apartment,” he says. “It’s a fourstory elevator-served building with a food inspired theme that’s in a real hot spot with easy access to highways. We thought it made sense for people who wanted to live next to a boutique grocer, and wanted to make sure we delivered something harmonious.” Also underway in Charlotte is Crescent Stonewall Station. This community will feature a 19-story high-rise building directly adjacent to the public LYNX light railway station; allowing residents the luxury of never having to drive.
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Started in 1976, Quality Stone Veneer, Inc. has expanded to 13 offices located up and down the east coast and Colorado. Quality Stone Veneer, Inc. has served homeowners, builders, suppliers and architects with a unique blend of exceptional manufactured stone and masterful installation.
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DOUG LAWRIMORE
ERIC ROTHROCK
VICE PRESIDENT OF CONSTRUCTION
VICE PRESIDENT, PRECONSTRUCTION
The light rail has been in use for more than 10 years, but it is still expanding and its usage makes the areas it serves highly attractive sites for developers. “Obviously it’s great for us,” Rothrock explains, “because for anyone living in Uptown Charlotte for the last 10-15 years, the experience is different from what it used to be. This will be a great way for someone to never need to use their car. [They can] jump on the light rail, step right off the platform, get their groceries or whatever they need, jump back on the light rail, and head home
without ever getting into their car.” “It’s unique in the growing sunbelt” he adds. “In Chicago, or larger cities, people don’t use their cars as much; that’s common place. But in Charlotte and many cities in the south, everyone loves their car and that’s something that’s changing.” The first phase of this vast project is set to be completed in late 2017. Before construction began, Crescent reviewed seven different potential configurations. During a meeting with the various stakeholders, developers construction managers, architects,
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and Crescent Pre-construction personnel, the latter used 3D modelling to illustrate the massing of the project as the group was collaborating in real time. The Massing Models were saved using Nextplans, a workflow tool that makes it possible for them to be accessed by all. At the end of this six-hour meeting they arrived at Crescent Stonewall Station’s ultimate design. “The concepts created that day are very similar to the building you see standing today. It’s pretty amazing how that all came together,” he says. Brand new tech This real-time methodology, using software such as NextPlans that allows all the partners to be involved from start to finish is typical of Crescent’s projects. “It’s a collaborative platform. We’re able to customize folders and have secure access to all our projects, granting access to partners. This software for internal construction serves as
JARED FORD SENIOR VP OF CONSTRUCTION
a facilitation software. It also has a tablet and phone app so you can walk around and pull up the drawings on an iPad.” Crescent has recently started using Bluebeam, a piece of software that allows them to edit and share documents online. “We saw that most of our architects were using it” Rothrock says. “We prefer to control certain aspects of preconstruction and be the initiators of discussions, so we have all the stakeholders in the room and we can take notes in real time on the cloud. Our architects like it because it’s
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LCM ARCHITECTS
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all in one place. It’s been super beneficial for us, certainly from a time-saving standpoint.” Another piece of software that has proven invaluable is a photographic indexing database called Multivista. This service allows users to zoom in and capture crystal clear images of different building components during each phase of construction. One example could be a window, where constructors can very easily identify issues such as leaks or a lack of proper waterproofing without having to get up close or remove any of its components. Setting apart “Construction pricing is at an all-time Southern Energy Management (SEM) is proud of our long term partnership with Crescent Communities. Crescent adheres to the highest standards of construction and development in their projects and the work they do aligns well with SEM’s core mission of changing the way people make and use energy. We look forward to continue supporting in them in developing and constructing highly efficient and sustainable projects for years to come.
high,” says Rothrock. “Over the last four years it has consistently escalated and that makes it more difficult to get deals done. “General Contractors and certainly Developers, are feeling the pinch of the market pricing,” he says. However, using novel technology to cut down on costs and time, Crescent is ensuring it continues to get the best value both for itself and its customers to maintain a competitive advantage. “We’re doing everything we can to add value,” he says. “Particularly behind the walls and looking at the soil and under the ground, in places where no one sees so we can spend more money on the things that make an impact for our residents. “We’ve really taken a deep dive, and we look hard at how we can minimize unnecessary or inefficient costs. We’d rather spend our money on things that our residents want and value.”
THE PATH OF
RESILIENCE The seventh annual Uptime Institute Data Center Industry Survey shows that businesses are as wedded as ever to their data centers, cloud or no cloud Written by John O’Hanlon
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he cost of not having a robust plan for managing your company’s data properly can be very high – a major outage at a data center is an existential threat to any business that has relies on it to store and manage its operational and transactional processes. Even if recovery is possible, the consequences can set the business back severely through loss of productivity and the consequent dip in revenue. Down the line, customer relations may sour as a result of system unreliability. The list goes on and any senior executive should be concerned about it – after all, top jobs may be on the line as the dominoes fall. If they want to sleep better at night they should be moving towards IT-based resiliency, says Matt Stansberry, Uptime Institute’s Senior Director of Content & Publications. Uptime Institute is best known for its Tier Certification, accepted as the design, build and operational standard for data centers round the globe. Furthermore one of its key roles is to
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help business assess and improve their strategies in respect of data management. Any colossus of the digital world, Google or Amazon, for example, could lose an entire data center and nobody would notice because the affected traffic would be re-routed elsewhere in the world. This is the paradigm of multi-site application resiliency, and the world of enterprise is moving towards it though it may take some time before that tanker turns to its new heading. This year’s Data Center Industry Survey, drawn from the perspectives of more than 1,000 international data center professionals and IT practitioners, reveals that IT resilience is growing and that 68 percent of businesses rely on it. The extent varies from sector to sector – for example 85 percent of logistics companies have a multi-site resiliency strategy that incorporates multiple data centers and relies on live IT application failover. Surprisingly, retail can only muster 58 percent and is one of the sectors with the lowest adoption rate. What really surprises Matt
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Stansberry though is that only a third of companies say that they will meet the demand for increased data center capacity by shifting workloads to the cloud. “Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power.” One statistic thrown up by the survey has changed very little over the last four years. 65 percent of organizations deploy their IT assets in an enterpriseowned data center; 22 percent use a colocation or multi-tenant data center provider and only 13 percent have moved their assets to the cloud. “It
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Matt Stansberry is the Uptime Institute Senior Director of Content & Publications and Program Director for Uptime Institute Symposium. He has researched the convergence of technology, facility management, and energy issues in the data center since 2003. Mr. Stansberry operates the Uptime Institute social media outlets (Blog, Twitter, and YouTube channel), conducts the annual data center survey, and develops the agenda for Uptime Institute industry events including Symposium and Charrette. 104
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“Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power” – MATT STANSBERRY, Senior Director of Content & Publications
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is moving slower than I’d have thought,” he says. “It is probably because it’s not easy to re-architect their legacy applications for a cloud environment.” Digital transformation is a seismic and traumatic operation for a large organization, and it can be costly too, but it does clear the way to future growth. So don’t expect an exodus of enterprise data centers’ workloads to co-location or the cloud. Inertia is an enemy to change. Stansberry predicts that investment in traditional data centers will continue for some years to come. Though Uptime Institute still earns its bread by monitoring the design, build, commissioning and operation of data centers, it has a big role in promoting effective management policies to its clients and across its network. More than 70 percent of respondents to the 2017 survey admit that their organizational processes for evaluating colocation and cloud providers left room for improvement and at worst were incoherent. “Managers may
VIDEO: Uptime
Institute’s 2017 Data Center Industry Survey Results
not have the breadth of vision to make effective decisions. We are really going to work on helping people look across silos.” The survey does show that there’s a much more realistic awareness of the business critical nature of data to a business and the consequences of outages. However, though 90 percent of organizations say they conduct root cause analysis of any IT outage, only 60 percent report that they measure the cost of downtime as a business metric. There still seems to be something of a gap between perception and action.
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TAKING INDIANA’S
100-YEAR OLD RAILWAY INTO THE
FUTURE
Evening Eastbound Train departing Miller Station
The South Shore Line railway in Indiana, which connects metropolitan Chicago to small cities that surround Lake Michigan, has survived financial crashes and the surge in popularity of the car. Now its owner NICTD is taking this century-old railway into its next phase Written by: Leila Hawkins Produced by: David Kulowitch
NICTD
South Shore single level EMU
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he South Shore Line railway in Indiana, which connects metropolitan Chicago to small cities that surround Lake Michigan, has survived financial crashes and the surge in popularity of the car. Now its owner NICTD is taking this century-old railway into its next phase. Founded in 1977, the Northern Indiana Commuter Transportation District (NICTD) operates an intercity line with a total of 19 stops, between the Millennium Station in downtown Chicago to South Bend International Airport. This is a key location as the airport carries around 300,000 passengers every year, although the term “international� is a bit of a misnomer, as it only flies within the US to cities including Atlanta, Minneapolis and Las Vegas. However, the train station is incorporated into the airport building, so passengers can make use of all
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its amenities, including the shops, lounges, and even a meditation room. South Bend itself, near Lake Michigan, is typical of the cities the South Shore Line serves, connecting the similarly sized Gary and Michigan City, as well as smaller towns like Porter which numbers under two thousand residents, to Chicago, the third most populous city in the US. A brief history of the South Shore Line The railway has been in operation since 1908, when it opened with both a commuter line and a separate freight line. It has had a remarkable history - after surviving the Great Depression of the 1930s, it flourished during World War II when workers flocked to Indiana for the local industry. But when households began owning cars the railway entered a period of decline, along with many other train lines at the time. NICTD was founded in 1977 to aid the floundering line, and when it went bankrupt they began operating the passenger service, eventually going on to purchase it in 1989. The
Michael Noland
President of NICTD
line is currently governed by a board of trustees who represent each of the Indiana counties it serves. Meanwhile the freight line is still in operation too, run by a separate entity called the Chicago South Shore & South Bend Railroad.
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Dune Park Station
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TECHNOLOGY
“THE IMPLEMENTATION OF WI-FI HAS IMPROVED RELATIONS WITH OUR EXISTING CUSTOMER BASE, AND IT’S SOMETHING THAT REALLY DOES ATTRACT PEOPLE TO OUR SERVICE” – Boris Matakovic, Chief Information Officer Customer perks On board the trains today passengers can make use of wi-fi, which NICTD implemented in 2016. Boris Matakovic, the company’s Chief Information Officer, explains that this was put in place is so that commuters can be more productive while they travel, by carrying out simple, day-to-day tasks like checking emails and even catching up on work during their trip. This has
Boris Matakovic
Chief Information Officer
proved very beneficial to the company. “It has improved relations with our existing customer base,” Matakovic says, “and it’s something that really does attract people to our service.” It now also has a mobile app which customers can download on to their phones, enabling them to purchase
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Stahl 12-8-11 at Millenium Station new cars await departure
tickets without having to visit the stations. This has helped decrease the amount of resources NICTD uses for tickets and distribution, as well as making transactions easier for the passengers. “People can buy their train tickets right on their smart phones,” Matakovic explains, “because basically everybody owns their own ticket kiosk at that point.”
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Other perks include people being able to have their travel costs deducted directly from their wages so they can pay less tax, and activityrelated discounts like getting 50 percent off the entrance price for the local Gary SouthShore RailCats’ baseball games when presenting train tickets at the stadiums.
TECHNOLOGY
“People can buy their train tickets right on their smart phones, because basically everybody owns their own ticket kiosk at that point” – Boris Matakovic, Chief Information Officer
Trains versus cars These bonuses are all designed to encourage people to use public transport rather than drive, as aside from the obvious benefits to the environment, cars are NICTD’s main competitors. Matakovic explains, “it’s not so much within rail itself, but between us and other forms of transportation, like automobiles,
that’s our competition.” Matakovic says that generally people who live in the areas where the South Shore Line serves are more accustomed to driving rather than taking the train, except for Chicago. “For people who go out to Chicago for their jobs, no. They are very faithful to public transportation. The cost is probably four times more expensive
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to drive your car in Chicago than it is to take public transportation.” There are few problems in terms of finding train drivers as the company boasts a high retention rate. Matakovic says this is down to paying well and having very good benefits for the employees, who are usually recruited locally within the state, specifically within its four-county reach.
Looking ahead There is a vehicle location system currently at the contracting stage, which once implemented, will let customers know ahead of time when trains are approaching or if they can expect delays. While the line is split into single and double track railroads at the moment, the plan is to construct
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Info@ventek-intl.com www.ventek-intl.com
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TECHNOLOGY
Morning passengers waiting for approaching South Shore train at East Chicago
a continuous double track, which will increase scheduling flexibility, improve the reliability of the service, and decrease overall travel times. In terms of expanding, there’s a new route in the pipeline to connect cities in Lake County, over on the other side of Lake Michigan, to Chicago. This will boost employment by making
it easier for people to commute to the city for work, as well as lower the cost of travel, increase the value of properties near the stations, and attract more young people and families to the region. Matakovic anticipates these aspects are set to make NICTD’s service even more attractive in the near future.
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