Building Indiana: July/August 2014

July/August 2014

$6.95

Indiana’s

Logistics 2014

Inside This Issue Railroad Development | pg. 34 I-69 Project | pg. 48 New Partnerships | pg. 54

30 miles to Chicago Loop 6 miles to

Merrillville, Indiana

PURDUE

RESEARCH PARK

Crown Point, Indiana

Publisher’s Desk 219.226.0300 • 317.632.1410

Expanding Indiana’s Logistics Network

www.buildingindiana.com www.buildingindianablog.com

Indiana’s manufacturing industries have seen continuous growth over the last

CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307

few years, largely due to the state’s continuing efforts in moving products and freight throughout the world. No other state has the logistics capabilities that Indiana has,

Publisher/Editor Andrea M. Pearman apearman@buildingindiana.com

and here at Building Indiana, we recognize that logistics is a rare type of industry that impacts almost every manufacturing sector, and many other industries, throughout

Director of Advertising Diane Towle dtowle@buildingindiana.com

our 92 counties.

Simply stated, logistics is an essential factor that promotes business. It’s one of

Writer Nick Dmitrovich ndmitrovich@buildingindiana.com

the only industries that absolutely cannot be outsourced, and stands as a backbone of commerce for virtually every other type of business.

Art Directors Jeanette Cherry jcherry@buildingindiana.com

Indiana’s logistics options, whether companies are moving things by roads, rail or

Jeff Fogg jfogg@buildingindiana.com

water, are often cited as one of the most attractive features of the state when companies are considering locations in Indiana to establish their operations.

Accounting Craig Marshall cmarshall@buildingindiana.com

Tracey Puckering, Workforce Development Specialist with Conexus Indiana (the state’s logistics think-tank) wrote that, “Indiana continues to lead the nation with the highest share of manufacturing employment per capita and highest manufacturing sector

Indianapolis Office Business Development Manager Lee Ann Richardson 888.226.0330

income share of total income,” all of which is directly supported by our logistics network.

Our July-August issue of Building Indiana is dedicated to exploring the various

Warsaw Office Business Development Manager Julie Monteith 888.226.0330

aspects of Indiana Logistics, many of which are currently seeing some interesting new innovations. New regional logistics councils have been formed in six different regions across the state, new highways are being built, and multimillion dollar railways are undergoing development right now as Hoosier logistics experts are constantly striving to expand Indiana’s logistics network.

Building Indiana is published by Diversified Marketing Strategies

No matter what type of industry you’re in, these

WBE / DBE Certified

developments will have an impact on your business in one form or another. This is an exciting time for Indiana’s economy as our state grows into

Kind Regards,

its next chapter of business.

We hope that you enjoy this issue,

Visit us at thinkdiversified.com

and share in our enthusiasm

Andrea M. Pearman Publisher

for Indiana’s growth.

2006 Communicator Awards’ Award of Distinction 2009 Communicator Awards’ Award of Excellence 2011 Communicator Awards’ Award of Distinction

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2007 Summit Creative Award 2010 Summit Creative Award 2012 Summit Creative Award 2013 Summit Creative Award

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2008 Hermes Gold Award 2009 Hermes Gold Award 2010 Hermes Gold Award 2011 Hermes Gold Award

Andrea M. Pearman 2009 Small Business Journalist of the Year

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

www.buildingindiana.com | JULY / AUGUST 2014

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Contents J U LY

/

AUGUST

2014

E V E R Y I SSU E

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

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30 36

38

48

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27 PHOTO FEATURE 34 cover story

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Worker’s Comp

Economical Approach Managing Worker’s Comp

34

6

Laying an Academic Foundation

60

green & sustainable Environmental Compliance Resources for your Business

Marketing Market your Business by Sponsoring Local Events

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42

Mass Production A Whole New Door is Opening for Manufacturing

58 Lifelong learning

62

Facts & Stats Financial Statistics

WELL-BEING Reshaping Healthcare

New Partnerships Aim to Grow Hoosier Logistics

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44

CONSTRUCTION FeatURE Choosing Hoosier Logistics

54 Logistics

Railroading Development

Small Business Spotlight Where are they now?

50

Safety Zone Prevent Workplace Safety and Health Problems

F E A TU R E S

CONSTRUCTION FeatURE

I-69 Project Dubbed a “Corridor of the Future”

52

RULE OF LAW Indiana’s 2014 Tax Package

The bottom line Business Owner’s Guide to Financial Planning

BEING PRODUCTIVE Keeping Your Business Prepared

State of the Industry The 21st Century Construction Professional

D E P A R TM E N TS

48

Economic Development Regional Breakdown of the Largest Projects

66

the last word Cultivating Tomorrow’s Leaders

www.buildingindiana.com | JULY / AUGUST 2014

A Four Generation Schrage-Family Owned Bank Since 1895.

The Schrage family has built a banking legacy not merely through business but through their philanthropy extending throughout a number of Indiana communities. As Indiana’s largest private, family-owned bank, we stand firmly behind our “Not For Sale” commitment, pledging to our associates, clients, and the communities we serve that we will continue to preserve independent hometown banking in Indiana.

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Contributors

Kevin Comerford Kevin Comerford is the Director of Education and Workforce Development for the Construction Advancement Foundation of Northwest Indiana (Portage). He is responsible for developing educational programs and seminars, and also works with local high schools and universities to promote career opportunities in the building trades and with contractors.

Scott Drenkard Scott Drenkard is an economist with the Tax Foundation’s Center for State Tax Policy. He is a co-author of the Tax Foundation’s annual State Business Tax Climate Index. His work has been featured in media outlets across the country, and he has been highlighted in State Tax Notes’ “most influential in state tax policy” feature for three years running since 2011.

Cathy Csatari Cathy Csatari is a Senior Environmental Manager with the Indiana Department of Environmental Management. She holds a BS in Biology from Purdue University and has been in the environmental field for over 20 years. In her position at IDEM, Cathy crosses many different disciplines offering regulatory assistance to manufacturers, businesses and municipalities as well as presenting on topics of interest at conferences in the region.

Russell G. Taylor Russell G. Taylor is the Executive Director of the Foundations of East Chicago. Taylor also headed operations of the two preceding foundations that were merged 2007 to create the FEC: the East Chicago Community Development Foundation/Twin City

Education Foundation. As a planner, he not only created East Chicago’s first land use and comprehensive plan in 30 years and established the city’s Zoning Board of Appeals, but also designed the organizational structure and mission of what would evolve into the FEC. Juli Erhart-Graves Juli Erhart-Graves has been the President of Worley Erhart-Graves Financial Advisors since 2002. Before then she worked as a Senior Investment Analyst for Conseco Capital Management, and functioned as Investment Administrator for another financial planning firm. Erhart-Graves earned a Bachelor of Science in Business degree, concentrating in finance, from Indiana University. She successfully completed the College For Financial Planning’s CFP® Certification Professional Education Program and obtained the CERTIFIED FINANCIAL PLANNER™ certification.

Karen Johnson Karen Johnson is the Director of Marketing and Worker’s Compensation at Lakeshore Bone & Joint Institute. She is also the President of the Northwest Chapter of IWCI (Indiana Worker’s Compensation Institute). IWCI’s mission is to promote and conduct programs of general education in worker’s compensation and related areas, assist members in improving their skills so that they continue to be an asset to their employer and provide financial support for charitable organizations and educational institutions that benefit the area of worker’s compensation.

Tim Maley Tim Maley serves at the Deputy Commissioner of Labor for the State of Indiana, managing both Indiana OSHA construction and general industry compliance divisions, and the Indiana

Voluntary Protection Program. Prior to work with the Department of Labor, Tim was employed with Eli Lilly for 30 years, spending most of his time in safety management. Tim also served on the VPPPA Region V Board of Directors for five years both as a Directorat-Large and Vice Chairperson. After employment with Lilly, Tim worked as a Senior Safety Consultant with Advanced Worksite Solutions. He is a graduate of Purdue University, West Lafayette, Indiana.

Karen Lauerman Karen Lauerman is Director of Marketing and Communications for the Northwest Indiana Forum, the regional, economic development and business leadership organization for the region.

With extensive nonprofit experience, she is responsible for communicating various Forum services and initiatives, creating exciting programs and events, and strategically positioning and promoting northwest Indiana for economic development. Prior to joining the Forum in July 2007, Lauerman was the Director of Marketing and Communications for the Dental Assisting National Board.

Dave Wellman David Wellman is communications manager for the Northwest Indiana Regional Development Authority (RDA).

A 20 –year business-to-business media veteran, Wellman was previously with Diversified Marketing Strategies (Crown Point) where he served for three years as senior writer for Building Indiana magazine. Prior to that, he held various positions ranging from assistant editor to editor-inchief for a diverse collection of b2b publications, including Frozen Food Age, Supermarket Business and Food & Beverage Marketing

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www.buildingindiana.com | JULY / AUGUST 2014

MAIN BUZZ

Making Connections

By Nick Dmitrovich

R

ail executives, contractors, legislators and decision makers gathered together for the 2014 Rail Summit, an event that promotes networking, collaboration, and education on all matters related to rail throughout the Midwestern states. Several notable Hoosiers attended the event, including Indiana Secretary of Commerce Victor Smith, and David Holt, Vice President of Indiana’s logistics think-tank Conexus, in addition to officials from all around North America such as Joseph Szabo, Administrator with the Federal Railroad Administration, and Brad Skinner, Chairman of OmniTRAX. “Indiana is the “Crossroads of America,” and rail is a critical component of economic development in our region,” said Heather Ennis, President and CEO of the Northwest Indiana Forum. “It’s important to be here today to learn about all of the new ideas and developments that the experts are presenting today, because it all has a direct impact on our state.”

Brad Skinner, of OmniTRAX, said, “This event is a whole series of ideas that are useful to many people.”

David Holt, VP of Conexus, announced during his presentation “Logistics for the Future,” that Conexus’s second strategic plan will be released this summer, and the agency has formed close partnerships with the Indiana Department of Transportation, the Indiana Economic Development Corporation and the Ports of Indiana through which it will serve as a think-tank for the General Assembly and the Governor’s office. More importantly, Holt described how regional logistics councils have been formed in all six regions of the state, which have helped establish an inventory of Indiana’s transportation needs

for the future.

Several current trends in logistics were presented by Indraneel Kumar, a Regional Planner with the Purdue Center for Regional Development. He described some current trends that the research group has identified in the logistics industry, and said, “Logistics clusters are a catalyst for economic development because you cannot offshore logistics.

Presently, the Midwestern metropolitan areas have shown a large increase in competitiveness and job growth over the last few years.”

Key components of the “Grow America Act” were delivered from the Federal Railroad Administration. Joseph Szabo said, “The Grow America Act provides predict-

“ We’re serious about Hoosier rail, and we recognize the economic development that it brings.”

Indiana Secretary of Commerce Victor Smith

able and dedicated funding for rail that’s going to be used to enhance safety, promote innovation, modernize infrastructure and much more. Whether you’re moving people or goods, it has to be done safely – and in the majority of instances rail is the safest way.”

“2013 had a record low accident rate for the rail industry; rail is safer than ever,” Szabo said. “It’s about continuous safety improvement, and we’re finding that research and development is clearly the path that’s going to allow us to leap forward into the next chapter of rail safety.”

Don Babcock, Director of Economic Development at NIPSCO, provided Indiana Secretary of Commerce Victor Smith’s introduction, and said, “At NIPSCO, we love rail, and we love the business that rail brings. Right now, Indiana is hitting on all cylinders with

JULY / AUGUST 2014 | www.buildingindiana.com

economic development, and it’s a team effort that’s led by a lot of great people. Rail is a big part of that movement.”

Victor Smith touted many of Indiana’s recent achievements at attracting new business to the state, and said that infrastructure improvements are being made to further that draw. “Indiana has a speedy collaboration between the public and private sector, because we’re all working together,” Smith said. “Transportation industries in Indiana have grown tremendously over the last few years. The infrastructure investments we’ve made are an affirmation to the growth we’ve seen. We’re serious about Hoosier rail, and we recognize the economic development that it brings.”

“We’re improving rail and other intermodal infrastructure needs because the market has a high demand for it,” Smith said. “These improvements will allow for a quicker and more efficient movement of freight. And with these improvements in mind, Indiana becomes an obvious place for investment.”

He went on to describe the completion of several new projects that Indiana has recently undertaken, including the East End Bridge, the Heavy Haul Corridor and the massive new River Ridge Commerce Center industrial park, all of which are in Southern Indiana near the border with Louisville, KY. “It’s a pretty neat epicenter for business,” Smith said, and he encouraged the professionals at the Summit to consider investing in Indiana as their choice of location for their companies.

All in all, the 2014 Rail Summit was truly focused on the sharing of ideas and the presentation of new information from the experts. Indiana was, for the most part, the centerpiece of this year’s event with numerous presenters in attendance from the Hoosier state.

9

BUSINESS BUZZ

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Indiana Gateway Project Underway Governor Mike Pence joined representatives from Amtrak, the Federal Railroad Administration and Norfolk Southern to officially kick off the $71.4 million Indiana Gateway project to improve rail lines between Porter, Ind., and the Illinois state line.

The Indiana Gateway project will improve seven locations on Norfolk Southern’s Chicago Line and one on the Amtrak Michigan Line. Norfolk Southern will install universal crossovers at five locations and construct a third mainline track at three locations.

Amtrak will build a new passing siding near the Porter Interlocking, where Norfolk Southern, Amtrak and two CSX lines intersect. The project will improve Amtrak passenger rail service for several routes that terminate in Michigan, Boston, New York and Washington, D.C. With design nearing completion, construction hits full gear this spring and is expected to be completed in 2016. Funded under the American Recovery and Reinvestment Act, the Indiana Gateway project will complement rail improvements in neighboring states, such as the Englewood Flyover project in Chicago.

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AMEX NOOTER Honored with Safety Award

Construction Company AMEX NOOTER was recently presented with the 2013 Safety Recognition Award from the Northwest Indiana Business Round Table. This award was presented to the company with DAFW, DART and TRIR lower than the national industry averages of the company’s NAICS code group. AMEX NOOTER’s Ryan Winkelman, Site Safety Manager at BP-Whiting, Indiana was present to accept the award, which was presented by Joe Coar, NWIBRT President of the Executive Committee.

The Construction Advancement Foundation and Northwest Indiana Business Round Table are organizations dedicated to offering diverse programs and shared resources to manufacturers throughout the northwest Indiana area. Their annual Awards Banquet Dinner Meeting presents the opportunity for them to recognize companies such as AMEX NOOTER for their exceptional standards in manufacturing, construction and safety.

This information, combined with a proven design philosophy that focuses on attention to detail and fiscal responsibility, results in facilities that offer the perfect balance between creativity, functionality, and aesthetics.

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NIPSCO Extends Energy Efficiency Programs Northern Indiana Public Service Company (NIPSCO) renewed its commitment to helping customers save energy and money in a filing made with the Indiana Utility Regulatory Commission (IURC) to extend the availability of electric energy efficiency programs.

The programs outlined in the plan – available to all NIPSCO electric customers - will replace the state-wide Energizing Indiana programs which are set to expire at the end of 2014. Under the new plan, popular residential programs such as the Energy Efficiency Rebate Program, the New Construction Program and Low Income www.buildingindiana.com | JULY / AUGUST 2014

erty on Industrial Highway for immediate development of a facility to produce engineered fuel, where that facility will be developed jointly with Ohio-based Vexor Technologies.

In addition, the Industrial Park will be included as part of the inventory of developable land outlined in the public-private partnership between the City, the Gary/Chicago International Airport, and AFCO/AvPorts which took effect earlier this year.

ConAgra Foods Bringing 80 Jobs to Rensselaer ConAgra Foods (NYSE:CAG), one of

TAG Earns Award for Safety The American Group of Constructors (TAG) was recently awarded the Northwest Indiana Business Roundtable’s (NWIBRT) Safety Recognition Award. NWIBRT holds an awards banquet each year to honor Northwest Indiana companies that have exhibited outstanding achievements in safety practices throughout their facilities and jobsites.

The Recognition Award is achieved by a company with Days Away From Work (DAFW) & Total Recordable Incident Rate (TRIR) lower than the national industry average and three years improving EMR or < .9.

Gary and Carmeuse Detail $10 Million Agreement

The City of Gary has secured a significant investment from Carmeuse Lime in a transaction that will serve as a catalyst for development in an area designated as a clean-technology Industrial Park. The $10 million transaction should result in roughly 100 new jobs and a $250,000 infusion in workforce development programs in the region and in Gary.

Carmeuse Lime purchased a 200-acre property from the Majestic Star Casino to support development related to its existing operation in Buffington Harbor. In addition to this property, Carmeuse is acquiring propJULY / AUGUST 2014 | www.buildingindiana.com

North America’s largest packaged foods companies, announced plans today to expand its operations in Rensselaer, IN, creating up to 80 new jobs by 2015.

The Omaha, Neb.-based company will invest $8.9 million to renovate and equip its current 122,000 square-foot facility in Rensselaer. The expansion is expected to begin construction in August, with work anticipated to be complete by early next year. The company is expanding its popcorn operations at the facility. ConAgra Foods, which currently employs about 1,100 employees in Indiana.

BUSINESS BUZZ

Weatherization Program will continue.

NIPSCO is proposing to combine the Home Energy Assessment and Weatherization Program in an effort to streamline these offerings, making it easier for customers to participate. An expanded pilot program for income-qualified customers is also part of the plan. Through these programs, NIPSCO expects residential customers to save 49.5 million kilowatt hours (hWh) in 2015.

An opt-out provision for larger commercial and industrial customers is also included, as many of NIPSCO’s large customers have already implemented and continue to invest in energy efficiency measures outside of the standard utility programs.

However, NIPSCO will continue to offer interested industrial customers incentive programs for saving electricity.

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BUSINESS BUZZ

Tech Center Expands Collaborative Space

the first customer in the new Inland Logistics Port at Kingsbury Industrial Park. As an essential requirement of the transaction, nearly 2,500 feet of new railroad right-of-way was extended through the new lot from the existing active railroad line serviced by the Chicago South Shore & South Bend Railroad.

Future plans show the railroad line also connecting to the newly constructed rail spur leading to the CSX mainline tracks.

In 2012, CSX announced that it had given the Inland Logistics Park at Kingsbury its prestigious CSX Select Site certification. According to CSXâ&#x20AC;&#x2122;s recent marketing materials provided to the county, it is the only CSX Select Site in Indiana and the only such site serving the Chicago region.

Kingsbury Industrial Park Gets First Tennant

Make a Dream Come True For Children, with Make-A-Wish NWI

Purdue Research Foundation officials have revamped more than 1,000 square feet of co-working space in the Purdue Technology Center of Northwest Indiana and extended 24/7 access to officials of affiliate and tenant companies.

The co-working space opened in 2013 in the technology center, 9800 Connecticut Drive, Crown Point. The common area space features Wi-Fi connectivity, two portable flat screen TVs that users can remote into, six training tables, cubes, leather couches and chairs, hi-top tables and more. Ursula Saqui of Saqui Research LLC said the co-working space provides an added dimension to a company.

Halfwassen Group, LLC announced that Helena Chemical Company has purchased a parcel of land to become

12

Make-A-Wish NWI is looking to grant 50 wishes to local children faced

with life threatening illnesses and will be holding a charity golf outing on September 18, 2014 at The Course at Aberdeen. Proceeds of this event will be used to grant the wishes of children suffering from life threatening illnesses here in NWI, granting wishes brings hope, faith and happiness to these children and their families. With over 50 wishes to grant this year, charitable donations are critical.

This exclusive event will be held at The Course at Aberdeen.

After an eventful day of golfing, cocktails and silent auction will be held at the Sage-Popovich ranch, with live music by BarCode.

Gourmet dinner will be prepared

by Chef Nicole of Bartlettâ&#x20AC;&#x2122;s Gourmet Grill & Tavern. Individual players and foursomes can purchase tickets or donations can be made by contacting Lorri Zimmer at 219.241.5005 or LoriDoriz@aol.com.

www.buildingindiana.com | JULY / AUGUST 2014

Speaker and Present Applications Are Now Being Accepted for the 2015 Beyond Safety Reliability Conference & Expo BUSINESS BUZZ

The 5th Annual Beyond Safety Reliability Conference & Expo to be held on March 24-25, 2015 at the Radisson Star Plaza in Merrillville, Indiana is now accepting applications from interested presenters and speakers. In partnership with Northwest Indiana Business Roundtable (NWIBRT) and the American Society of Safety Engineers (ASSE), this event brings almost 600 safety professionals together each year to experience the latest in safety education and technology.

The Beyond Safety Conference hosts two full days of 30 educational sessions, over 50 exhibitors, keynote speakers, private rooms for corporate meetings, networking cocktail reception in the Expo Hall, and a VIP after-party. Parties interested in speaking or presenting can visit beyondsafetyexpo.com. For more information contact Alyssa Gawlinski at agawlinski@nwibusinessevents.com or call (219)226-0300. All speaker application forms are due no later than September 30th, 2014.

Sterling Energy Group Completes KY Acquisition Sterling Energy Group, Inc., a green energy independent power producer, through its wholly owned subsidiary, Kentucky Natural Gas and Oil Incorporated, has today completed the purchase of Viking Gas Pipeline, LLC, and Viking Oil and Gas, LLC. The acquired Companies, doing business as Kentucky Blue Gas, produce oil and gas from wells on leased property. Approximately 6500 acres of leases, held by production, are assets of the acquired Companies. Oil is pumped into tanks near wells and transported by trucks and sold to a refinery. The natural gas is transported via a pipeline gathering system. Sterling Energy Group, Inc. plans to connect this pipeline to the pipeline owned by its existing subsidiary, Gulf Star Oil and Gas, LLC and flow all natural gas to an existing industrial customer.

The acquisition includes 70 miles of natural gas pipeline, a liquid stripping plant, 91 oil and gas wells, and other assets required for the production of oil and natural gas from these fields near Bowling Green, KY. Combined assets of existing and acquired Companies will include more than 100 miles of natural gas pipeline, 115 wells, oil and natural gas reserves under more than 10,000 acres of owned and leased land.

www.correctconstruction.com

Film Manufacturer Creates 150 Portage Jobs

MonoSol, LLC, a manufacturer of water soluble polymer films, compounds and solutions, announced plans to locate a new facility in Portage, IN, creating up to 150 new jobs by 2020.

The Merrillville-headquartered company, which is a subsidiary of Japan-based Kuraray Co., Ltd., will invest $65 million to construct and equip the first two phases of a new 300,000 square-foot manufacturing facility at Ameriplex at the Port in Portage, with an additional $30 million investment planned for phase three. Phase one, which is expected to be operational by late 2016, will initially cover 90,000 square feet and will increase the company’s capacity by approximately 15 percent. Phases two and three are slated for 2017 and 2020, respectively. MonoSol, which currently has more than 445 employees, including 300 full-time in IndiJULY / AUGUST 2014 | www.buildingindiana.com

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BUSINESS BUZZ

ana, plans to begin hiring next year.

Founded in 1953, MonoSol is a provider of specialty water-soluble delivery systems around the world. Along with its Merrillville headquarters and existing facility in Portage, the company also operates production facilities in La Porte, Indiana and Hartlebury, England. In 2013, MonoSol was one of only 15 companies worldwide recognized by Proctor & Gamble as an External Business Partner of the Year.

The Indiana Economic Development Corporation offered MonoSol up to $1,575,000 in conditional tax credits. The Northwest Indiana Regional Development Authority supports the project through its no-interest securitized forgivable loan program. The city of Portage approved additional incentives at the request of the Portage Economic Development Corporation.

City of Gary, Ivy Tech Northwest, Methodist Hospitals and NIPSCO Announce Fitness Partnership

In an unprecedented display of collaboration to inspire personal growth among employees and greater community wellbeing, the City of Gary, Ivy Tech Community College Northwest, Methodist Hospitals, and NIPSCO are holding “Fitness Fridays.”

These diverse partners offer employees an eclectic range of activities, ranging from line dancing to a “Biggest Loser” contest, and from volunteer activities to even financial counseling. For example, Ivy Tech Northwest is holding Fitness Fridays from 3:30 to 4 p.m. at its Gary campus.

Fitness Fridays is just one of a series of activities to encourage better health leading up to a 5k Walk/Run Teen Violence Prevention Fundraiser at Marquette Park in Gary on Saturday, Aug. 2, 2014. Proceeds from the fundraiser will benefit the teen violence prevention programs of the Project Outreach and Prevention (POP) on Teen Violence Foundation. The community is invited to participate.

Purdue Joins OrthoWorx

OrthoWorx announced that Purdue University has joined the OrthoWorx University | Industry Advisory Board, which 14

was recently formed to better connect the technology and talent needs of Indiana’s orthopedic medical device industry with the assets and capabilities represented by Indiana’s higher education institutions.

Colleges and universities that have joined OrthoWorx as part of the University Industry Advisory Board include Indiana University, University of Notre Dame, Ivy Tech Community College, Indiana University-Purdue University Fort Wayne, Grace College, Manchester University, Trine University and Purdue. Discussions regarding membership are still underway with Ball State University, Rose-Hulman University, Valparaiso University and Indiana Tech.

Purdue has supported the orthopedic industry in Indiana through a number of avenues including the Technical Assistance Program, IPFW orthopedic educational courses and with basic and applied research projects among Purdue and orthopedic companies based in the state.

The Indiana medical device industry is the largest component of the overall life sciences economy in Indiana. OrthoWorx was formed in 2009 to improve the environment for success for an industry cluster based in Warsaw, Indiana that accounts for approximately 13,000 direct and indirect jobs, and contributes more than $3 billion in value annually to the Indiana economy.

Northeast $40 Million Project Gets Preliminary Approvals The Fort Wayne Plan Commission has granted preliminary approval for a proposed $40 million shopping center in Fort Wayne.

The developer will now seek to rezone the property, which will be located near Parkview Regional Medical Center on the city’s north side. Developers have been looking to open “complimentary” businesses along the corridor.

Illinois Company Moving to Columbia City Warner Electric LLC, a manufacturer of PTO clutches and brakes for lawn tractors,

agriculture equipment and diesel engines, announced plans to consolidate its South Beloit, IL. operations to Columbia City, IN, creating up to 20 new jobs by 2018.

The company will invest $2 million to lease a 96,000 square-foot facility on a 12.9 acre campus near Columbia City. The new facility will allow the company to consolidate its Midwest operations, including its three facilities across Whitley County, into one location. The new facility also provides room for additional Altra production to be transferred to Indiana in the future, while the company plans to still maintain its facility in South Beloit, Ill.

Continental Diamond Tool Expanding For the second time in two and a half years, Continental Diamond Tool, located at 1221 Hartzell Street in New Haven, has announced plans to expand its existing facilities. Continental Diamond Tool specializes in the design, manufacture, and application of diamond cutting and grinding products and services for industries including medical, oil and gas, automotive, aerospace, and electronics.

Continental Diamond Tool will invest $400,000 to add 7,000 square feet of manufacturing space and 7,000 square feet of office space. This additional square footage will allow for the purchase and installation of $3.375 million in new manufacturing equipment including CNC Lathes, mold presses, and inspection equipment. At present, the company employs 57 people. Over the next 5 years they plan to hire 47 additional people in manufacturing, sales, management, and clerical positions

Leadership Fort Wayne Inc. Joins with Greater Fort Wayne Inc. The Board of Directors of Leadership Fort Wayne, Inc. announced today that Leadership Fort Wayne, Inc. has joined forces with Greater Fort Wayne Inc. This bold move will better position the adult Leadership Fort Wayne program for sustainability, collaboration and engagement and add significant new programming to

www.buildingindiana.com | JULY / AUGUST 2014

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

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

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

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Portage Clinic Opening Soon Portage Hospital 3630 Willowcreek Road, Portage

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

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GFW’s investors and businesses.

The adult Leadership Fort Wayne program will become one of several programs under the Leadership Development and Community Engagement department of Greater Fort Wayne Inc. The mission of the adult signature program will remain “to train, prepare and inspire individuals to positively impact the community through civic engagement.”

University of St. Francis Hires Fort Wayne Design Team The University of Saint Francis has awarded its downtown campus project to Fort Wayne architecture and engineering firm Design Collaborative. The project will bring together the former Fort Wayne Area Chamber of Commerce building and Scottish Rite Center into learning space and opportunities for students to study new and established programs in the heart of downtown Fort Wayne.

The design will include renovations to the Chamber of Commerce building to accommodate programs offered there, including a new Risk Management and Insurance degree, in the new home of the Keith Busse School of Business and Entrepreneurial Leadership. The project size is approximately 69,700 square feet. Design work is set to begin Aug. 1. Construction is expected to begin in 2015.

Corrigan International Expands into Colombia City Corrigan International, a division of Michigan-based Corrigan Moving Systems, a full-service relocation company, announced that it has expanded its footprint into Indiana with the recent opening of its new Columbia City office.

Corrigan International specializes in the management and oversight of its customers entire international household goods moving process, including translation services, storage and temporary housing arrangements, furniture rental program, and custom packing and crating solutions. With its new 2,550-square-foot office located in the heart of Columbia City, Corrigan International has hired a dedicated team of Global Relocation Specialists that, together with its Michigan team, have the skills, knowledge and experience in the industry to facilitate successful moves anywhere in the world and continue to grow the company’s international relocation operations.

High-Wage Aviation Jobs Coming to South Bend

The University of Notre Dame and five public and private partners announced a $36 million project that will be the nation’s foremost research and test facility for advancing the technology used in the massive gas turbine engines used by commercial and military aircraft, power plants and the oil and gas industry.

Construction in South Bend’s Ignition Park on a 43,000square-foot building - of which 25,000 square feet will be for the Notre Dame Turbomachinery Facility - will begin this summer and be completed by March. The facility will be fully operational in July 2016.

Notre Dame will contribute $7.5 million to the project. Other partners are the General Electric Co., which has committed $13.5 www.buildingindiana.com | JULY / AUGUST 2014

The Blight Elimination Program provides an opportunity for local units of government in all 92 Indiana counties to compete for funding to eliminate blighted, vacant and abandoned homes and decrease foreclosures

Central Fastenal Company Expanding in Indy

Fastenal Company (NASDAQ: FAST), a distributor of industrial and construction equipment, announced plans to expand its operations in Indianapolis, creating up to 60 new jobs by 2016. The Winona, Minnesotabased company will invest $13 million to construct and equip a 167,000 square-foot addition to its current 900,000 square-foot regional distribution facility at 6003 Guion Rd. in Indianapolis. The facility, which will be fully operational by end of year, will allow the company to expand its national corporate distribution.

Fastenal, which currently employs

Blight Elimination Funds Coming to Northeast Indiana Cities Lt. Governor Sue Ellspermann announced that two Indiana cities received a combined award of more than $6.3 million to help eliminate blighted and abandoned homes in those communities through the Hardest Hit Fund Blight Elimination Program. The two cities receiving awards are Fort Wayne and South Bend. They are the successful applicants in the second of six rounds of funding that will make a total of $75 million available for blight elimination to reduce foreclosures and stabilize property values.

JULY / AUGUST 2014 | www.buildingindiana.com

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BUSINESS BUZZ

million to fund research and testing for five years; the city of South Bend, which is contributing $4.4 million inclusive of equipment, land for a new power substation and tax abatements; the state of Indiana, through the Indiana Economic Development Corp., which is providing up to $600,000 in training grants and up to $2 million in infrastructure assistance; Great Lakes Capital, which is providing upfront capital of approximately $6 million to construct the facility; and Indiana Michigan Power, which will be investing $2 million in a new substation to provide the considerable power needed to operate the facilityâ&#x20AC;&#x2122;s multiple test cells.

When fully operational, the Notre Dame Turbomachinery Facility will provide about 60 new jobs to directly operate the center, with an average salary and benefits package of about $79,000. An additional 60 jobs are expected through the growth of local suppliers to support the facilityâ&#x20AC;&#x2122;s need for precision manufactured components. At full operation, research expenditures generated through work conducted at the facility are expected to exceed $15 million annually.

The new facility, which will feature five test bays for compressor and turbine rig testing, will take previous work to new heights by testing engine components at pressures and temperatures higher than any that exist at current U.S. university facilities. It also will be used to advance current working relationships with both government sponsors and all manufacturers of gas turbine engines.

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approximately 18,000 employees worldwide, including more than 950 in Indiana, plans to begin hiring for additional fulltime positions this summer. The Indiana Economic Development Corporation offered Fastenal Company up to $285,000 in conditional tax credits based on the company’s job creation plans. The city of Indianapolis approved additional incentives at the request of Develop Indy, a business unit of the Indy Chamber.

OurHealth to Add 450 New Jobs in Indy

Executives from OurHealth, an integrated on-site health management company, announced the company’s plans to expand its headquarters here and add jobs across Indiana, creating up to 450 new high-wage jobs by 2018.

The homegrown-Hoosier company will invest $19.96 million, among other initiatives, to more than double the size of its corporate headquarters, leasing, renovating and equipping an additional 10,000 additional square feet of office space in Indianapolis. OurHealth headquarters are currently located at OneAmerica Tower in downtown Indianapolis. The company also plans to lease a network of 3,500 square-foot clinics across Indiana, providing healthcare services for employers of all sizes.

Indiana Lawmakers Forming Medical Device Manufacturing Committee Indiana lawmakers are set to spend part of this interim examining ways the state can assist and partner in the continued growth and success of Indiana’s medical device industry, which employs more than 20,000 Hoosiers and generates more than $10 billion in revenue annually. Legislative leaders have asked the Interim Study Committee on Commerce and Economic Development to consider expanding the partnership between state government and more than 300 companies across Indiana that specialize in the innovation and manufacturing of medical devices.

Recent listings showed that medical device companies make up more than half of the top 50 employers in the field of life 18

sciences in our state. Indiana consistently ranks among the leading medical device hubs in the country. The committee’s areas of study will be tax assistance in such areas as research and development, examining how to increase venture capital investment, and looking into training of employees at all levels, including the use of internships, cooperative education programs, and focused vocational education.

University of Indianapolis Breaks Ground on $28M Health Pavilion The University of Indianapolis has broken ground on a four-story, $28 million Health Pavilion that will house UIndy’s healthcare- and wellness-related academic programs as well as industry partners and clinical facilities to serve the community.

Local developer Strategic Capital Partners will construct the 156,000-square-foot building and lease space to the university for its School of Nursing, Krannert School of Physical Therapy, School of Occupational Therapy, School of Psychological Sciences, Athletic Training Program and departments of Kinesiology and Social Work - programs that account for more than half of UIndy’s 5,400-student enrollment. Designed by local firm CSO Architects, with construction to be overseen by Pepper Construction Group, the building is scheduled to open in August 2015. The building also will house the university’s Psychological Services Center, in which psychology faculty and graduate students serve the community on a sliding-fee scale.

The main entrance will open into a two-story atrium lobby, designed for public access with a café and adjacent outdoor plaza, social areas and a 140seat auditorium. Near the entrance on the second floor will be interactive space for students and faculty with access to a rooftop terrace.

Indiana Company “Onshoring” Productions Green Leaf, Inc., a manufacturer of liquid handling products located in Fontanet, Indiana, announced that a number

of its products being produced in China will return to be manufactured in America.

Many factors aided in Green Leafs return to domestic manufacturing, including increased energy and labor costs abroad, which are making America a cheaper place to manufacture goods.

IBRC Reports Whitestown has Indiana’s Highest Growth Rate The I-65 corridor just north of the Marion Boone County line is outpacing all other Indiana towns when it comes to growth. That’s where you’ll find the Town of Whitestown. According to new statistics from the Indiana Business Research Center Whitestown had the highest growth rate of any Indiana town between July 2010 and July 2013.

Whitestown swelled to nearly 4-thousand residents in 2013, a whopping 36.5 percent increase over the three year period. Boone county overall grew at a rate of 2.5 percent per year over the period second only to Hamilton County according to the IBRC.

TOA Breaks Ground in Mooresville Governor Mike Pence joined Shinichi Iizuka, Chief Executive Officer of TOA (USA) and president of its parent company, TOA Industries Co., Ltd. for a groundbreaking ceremony for TOA’s new manufacturing and warehouse space in Mooresville.

TOA (USA), a metal stamping and automotive suspension parts manufacturer, announced plans in April that it will expand its operations in Indiana, constructing and equipping an additional 360,000 square feet of manufacturing and warehouse space at its existing Mooresville facility. As part of the project, the company plans to create up to 220 new jobs by 2015, which includes robotics, engineering and electrician positions.

Pence met with Mr. Iizuka at TOA Industries’ headquarters in Ota City during his first gubernatorial overseas jobs and economic development mission to Japan last fall.

www.buildingindiana.com | JULY / AUGUST 2014

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Franciscan St. Francis Health Breaks Ground on $10 Million Hospice House

Franciscan St. Francis Health will break ground on its Hospice House at its future location on the hospital’s south side campus in Indianapolis. The project signals the realization of a long time goal of Franciscan Alliance Foundation St. Francis Health, and was financed by privately raised funds and by matching contributions provided by the Mishawaka, Ind.-based Franciscan Alliance. The facility and staff anticipate serving more than 600 families annually after its completion date in Fall 2015.

Total gifts, pledges and matching funds have propelled the project to near its $10 million total construction cost. The campaign will seek to raise an additional $2 million to establish an endowment to sustain Hospice House well into the future.

Conexus Indiana Logistics Council Releases Detailed Plan The Conexus Indiana Logistics Council (CILC), a group of statewide logistics executives, today released Delivering Indiana’s Logistics Future, its second statewide logistics strategic plan in the last four years that will serve as the blueprint to strengthen Indiana’s “Crossroads of America” position as a logistics industry leader.

The plan identifies long-term innovations, such as positioning Indiana at the forefront of automated vehicle technology, and focuses on strengthening academic and industry partnerships to develop skilled talent to fill logistics positions throughout the state. The plan also identifies Federal and State financing recommendations for all four modes of transportation (rail, roadway, air and waterborne) that, if implemented, will help sustain Indiana’s logistics advantages, and details more than a dozen public policy, infrastructure and workforce development accomplishments achieved since 2010 when Phase I: A Plan for Indiana’s Logistics Future, its first statewide logistics strategic plan, was released.

Delivering Indiana’s Logistics Future is the result of intensive work by CILC, a 20

group of 54 logistics leaders from around the state, representing air, rail, truck, waterborne, infrastructure, warehousing and distribution, advanced manufacturing and service companies. For more details about the strategic plan, you can download a copy of Delivering Indiana’s Logistics Future at www.ConexusIndiana.com.

New Walmart E-Commerce Center Coming to Plainfield

Walmart (NYSE: WMT), the world’s largest retailer and one of the fastest growing online retailers, announced plans today to locate a 1.2 million square-foot e-commerce fulfillment center in Plainfield, IN, creating up to 303 new jobs by 2016. The facility, which will allow the company to process and ship orders for its fast-growing online operation, will be operational in early 2015 at the AllPoints Midwest distribution park developed by Indiana-based Duke Realty and Browning.

The Indiana Economic Development Corporation offered Wal-Mart.com USA LLC up to $2,930,000 in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans.

Walmart joins a long list of companies that have recently selected Indiana as home the for their logistics operations. Indiana’s central location places it within a single day’s haul to 80 percent of the U.S. population.

Local Union Carpenters Volunteer for Indianapolis Community Project Members of the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC) volunteered their time and skills to Rebuilding Together Indianapolis, a local chapter of a nationwide initiative that provides home rehabilitation to homeowners in need. The Indy-based project chose 21 homes in the Crooked Creek neighborhood where they provided critical repairs, accessibility modifications and energy-efficient upgrades. Before beginning the repairs, each home that received upgrades received an initial evaluation for improvements and was assigned a team captain to coordinate the materials and labor and schedule the work.

IKORCC volunteers worked on subfloor repairs, flooring finishes, drywall repairs, grab bars, gutter repairs, gutter board and soffit replacements, door and hardware replacements or repairs, weather stripping and insulation. The majority of the volunteer work was completed during April, with a few remaining projects being wrapped up shortly after.

Healthiest Employer, LLC, Brings Jobs to Fishers

Healthiest Employer, LLC, a technology and health analytics company, announced plans to expand its operations in Fishers, IN, creating up to 90 new jobs by 2017. The homegrown-Hoosier company will invest $1 million to lease and equip 4,000 square feet of office space in Fishers.

With its new location, which will be operational by early 2015, Healthiest Employer will begin insourcing software development from Ohio for Springbuk, the company’s corporate health analytics software.

Healthiest Employer has already begun hiring for software development, business development and project management positions. The Indiana Economic Development Corporation offered Healthiest Employer, LLC up to $1,325,000 in conditional tax credits and up to $75,000 in training grants based on the company’s job creation plans.

Indy Expecting $60M Bump from Volleyball

USA Volleyball announced the City of Indianapolis will host the 2016 USA Volleyball Girls’ Junior National Championships (GJNC) at the Indiana Convention Center.

The USA Volleyball Girls’ Junior National Championships attracts a capped field of 1,264 teams (as of 2014), over 15,000 athletes and over 30,000 spectators annually. The tournament crowns 30 champions in age divisions ranging from 11 to 18. The event, showcasing the top talent from across the nation, also draws hundreds of college recruiters looking for the next stars for their programs. Visit Indy is expecting the events to generate over $59 million in economic impact for Central Indiana.

www.buildingindiana.com | JULY / AUGUST 2014

Indianapolis Motor Speedway Opens Solar Farm

Tech Company Adds 400 High-Wage Jobs

Governor Mike Pence joined executives from Systems in Motion, LLC, an enterprise technology consulting firm, to announce the company’s plans to expand its operations in Kokomo and Carmel, creating up to 400 new high-wage jobs by 2017.

The Newark, California-based company, which acquired Indiana-based Zuna Infotech earlier this year, will invest $5.4 million to lease, renovate and equip its Indiana delivery centers.

This includes leasing up to 25,000 additional square feet of office space in the Firestone Building in downtown Kokomo and growing its current Carmel office by approximately 15,000 square feet. The expansions, which are expected to be complete by December 2016, will allow the company to expand its service capabilities across the Midwest.

Systems in Motion, which currently employs hundreds of associates across the JULY / AUGUST 2014 | www.buildingindiana.com

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The Indianapolis Motor Speedway will expanded its commitment to renewable energy and green initiatives by participating in a partnership with SunWize Technologies, Blue Renewable Energy, and the Indianapolis Power & Light Company to build a 25-acre solar farm on IMS property northeast of the track.

The IMS installation is the largest solarpower system hosted at any sporting facility in the world, with 39,312 solar modules generating a total of 9.6 megawatts of power.

This commitment to solar generation at the Racing Capital of the World is equal to offsetting 10,288 tons of carbon annually.

Previous on-track green initiatives included the use of fuel-grade ethanol to power cars in the Indianapolis 500, E85 fuel powering NASCAR cars in the Crown Royal Presents the “Your Hero’s Name Here” 400 at the Brickyard and the Emerging Tech Day during the Indianapolis 500, including the Purdue eV Grand Prix.

The solar farm is a significant privatepublic partnership among national and Central Indiana companies, all of which are committed to finding creative solutions to increasing sustainability by helping to increase sources of renewable energy generation.

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country, plans to begin hiring in Indiana for additional software development and testing and support positions next month. As part of the project, approximately 240 of the 400 new positions will be located in Kokomo, with the remaining 160 new associates to be housed at its Carmel office.

The Indiana Economic Development Corporation offered Systems in Motion, LLC up to $5,650,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. The city of Kokomo approved additional incentives at the request of the Greater Kokomo Economic Development Alliance. The city of Carmel also supports the project.

High-tech companies are recognizing the advantage they gain in Indiana.

According to TechPoint, between 2009 and 2012 computer-related employment in Indiana grew 5.4 percent, six times faster than the state’s overall job market.

There are currently 61,000 computerrelated jobs in Indiana.

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Hoosier Lottery Reports Record Sales Hoosier Lottery officials today announced the Lottery has exceeded $1 billion in sales in a 12-month period, the highest in the Lottery’s 25-year history.

The milestone surpasses the previous sales record of $934 million in fiscal year 2013.

The $1 billion mark is reflected in an overall 7 percent year-over-year sales increase. The Hoosier Lottery’s performance surge is among the best in the United States, where average sales increases are 2.9 percent, based on data collected by the North American Association of State and Provincial Lotteries.

As a result of the solid fiscal performance, the State of Indiana will receive the largest contribution ever from the Hoosier Lottery, with more than $248 million in surplus revenue returning to Hoosiers for the Lottery’s fiscal year 2014 via the Build Indiana Fund and existing pension and retirement funds established for

Indiana teachers, firefighters and local police officers.

Hoosier Lottery distributions benefit every county throughout Indiana. Each fiscal year, the Hoosier Lottery contributes $30 million to local police and firefighters’ pensions and $30 million to the Teacher’s Retirement Fund. Hoosier Lottery earnings help reduce motor vehicle excise tax by 50 percent.

Since its inception in 1989, the Hoosier Lottery has transferred more than $4.5 billion to the State of Indiana for good causes.

During that same period, Hoosiers won over $9.9 billion in prizes and retailers earned more than $1.1 billion on commissions.

IUPUI Details Two New R&D Centers Indiana University-Purdue University Indianapolis has named two new centers -- one dedicated to diabetes research and the other focused on developing imaging methods for the diagnosis and treatment of kidney disease -- as 2014 recipients of initial

www.buildingindiana.com | JULY / AUGUST 2014

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Berry Plastics Completes $135 Million Deal W

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Berry Plastics Group, Inc. (NYSE:BERY) announced that it has completed the previously announced acquisition of Rexam’s Healthcare Containers and Closures (C&C) business. Berry Plastics paid approximately $135 million for the Healthcare C&C business unit. The Company expects the acquisition, which was funded from existing liquidity, to be deleveraging after achieving synergies.

The Healthcare C&C business produces bottles, closures and specialty products for pharmaceutical and OTC (over-the-counter) applications.

The transaction includes eight manufacturing locations - five in the United States and one each in Mexico, France, and India, with total employment of approximately 1,500 and 2013 sales of $262 million.

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funding under the IUPUI Signature Centers Initiative.

The IUPUI Signature Centers Initiative fosters the development of centers unique to IUPUI that can lead the way in world-class research and creative activities, and make a difference in the real world. The initiative provides each selected center with initial funding for a period of three years. This year’s recipients were selected from a pool of five applications.

The overall mission of the Indiana Diabetes Research Center is to support training and promote research in diabetes, obesity and related metabolic disorders.

The mission of the Research Center for Quantitative Renal Imaging is the development of quantitative imaging methods to diagnose and monitor kidney disease, and the evaluation of therapeutic intervention, said Hutchins, the John W. Beeler Professor of Radiology at the IU School of Medicine.

Currently, there is no comprehensive research center within the United States that is solely dedicated to achieving the center’s mission.

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Shoe Carnival Plans to Open 30-35 New Stores Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of valuepriced footwear and accessories, today reported results for the first quarter of 2014. The Company reported net sales of $235.8 million for the first quarter of fiscal 2014, a 1.5 percent increase, as compared to net sales of $232.3 million for the first quarter of fiscal 2013. Comparable store sales decreased 1.7 percent in the first quarter of fiscal 2014.

The company opened seven new stores during the first quarter of fiscal 2014 as compared to 13 stores in the first quarter of fiscal 2013. The company expects to open 30 to 35 new stores and close one store in fiscal 2014.

Net earnings for the first quarter of fiscal 2014 were $9.2 million, or $0.45 per diluted share. For the first quarter of fiscal 2013, the Company reported net earnings of $9.5 million, or $0.47 per diluted share. The Company expects second quarter net sales to be in the range of $223 to $228 million with comparable store sales in the range of flat to a decline of 3.0 percent.

JULY / AUGUST 2014 | www.buildingindiana.com

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Joint Venture Bringing Jobs to Jeffersonville Delaco Kasle Processing Indiana, LLC (DKP Indiana), a processor of exposed and unexposed aluminum and steel blanks, announced plans to locate its operations in Jeffersonville, creating up to 105 new jobs by 2017.

Earlier this month, the Diez Group and Steel Technologies LLC announced a joint venture that included Kasle Metal Processing, which had operated in Jeffersonville since 2004. The Diez Group and Steel Technologies will invest $14.28 million to upgrade and expand the existing 120,000 square-foot former Kasle Metal Processing facility at the Port of Indiana – Jeffersonville, which will grow to 226,000 square-feet by summer 2015. DKP Indiana has already retained 71 former Kasle Metal Processing employees.

The Indiana Economic Development Corporation offered Delaco Steel Corporation up to $750,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. Indiana’s unemployment rate fell to 5.7 percent in April, decreasing 2.1 percent over the last year, the third-largest decrease in the nation. In 2014 alone, Indiana’s labor force has added 37,000 Hoosiers.

EPA, IDEM Turn Down Evansville Sewer Project After a year of review, the U.S. Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM) have disapproved Evansville’s proposed Integrated Overflow Control Plan (IOCP), submitted by the City of Evansville and the Evansville Water and Sewer Utility (EWSU) in May 2013.

In response, the City of Evansville and EWSU has issued a Notice of Dispute regarding the disapproval of Evansville’s IOCP. A team representing the City of Evansville and EWSU will meet with the EPA and IDEM in July to gain an understanding of why they disapproved the plan and determine next steps. It is likely a series of meetings will follow. Already, several EPA-approved, preliminary IOCP projects are underway.

The EPA’s seven-page response 24

details several technical reasons for disputing the plan, but the primary objection appears to be a belief that Evansville can afford to pay more. Since 2010, the City of Evansville and EWSU have submitted voluminous material to the EPA regarding the City’s plan and financial capability.

Corydon Development Lands Tenant

Almost three years ago, Harrison County Government and Community leaders cut the ribbon to open a new connector road that opened “a mile of opportunity” north of Corydon, Indiana. The continuation of that development effort took a new step this week when the Harrison County Economic Development Corporation purchased 54 plus acres near the Harrison County Hospital campus. The organization says a local business has moved its office to the Northfield Commercial Development.

In order to stimulate economic growth in the county, the Harrison County Economic Development Corp. (EDC) entered into an agreement with Harrison County to borrow the funds necessary to complete the roadways, water, sewer and storm drainage work along Federal Drive and Pacer Court.

This connected the largest Commercial Development area in Corydon to the Harrison County Hospital campus. The complete cost was $1.6 million. The loan agreement to the county included the three property owners impacted repaying the EDC who would then repay the County for the improvements. An agreement was signed by all parties in October 2010. As of today, the EDC has repaid $439,000 to the County.

Earlier this year, the EDC worked together with a regional financial institution that owned about 54 acres to find a solution toward getting the property developed with the intent to create jobs and investment and to repay the loan to the county for the extension of the road and utilities.

One Southern Indiana Reaches Major Milestone One Southern Indiana (1si) reached a major milestone in its history when it welcomed the successful registration and sign-up of its 1,000th member. McRae Court Reporting LLC of New Albany, Ind.,

a local business that provides verbatim transcripts of legal proceedings, achieved this distinction.

1si is the local economic development organization and chamber of commerce for Clark and Floyd counties. 1si’s mission is to provide the connections, resources and services that help businesses innovate and thrive in the Southern Indiana/ Louisville metro area.

The announcement of 1si’s 1,000th member comes almost to the day of the organization’s eighth anniversary; 1si was formed on July 1, 2006, as a result of the mergers of the Southern Indiana Chamber of Commerce, the Southern Indiana Economic Development Council and SI 2020.

Since July of 2006, 1si also has worked with businesses to secure $775,358,148 in new taxable capital and commitments to add 9,650 jobs with a payroll of $340,041,234 annually in Southern Indiana. 1si also provides its economic development investors with a return on investment of $176.21 in new capital for each $1 invested into the program.

Southern Indiana Upgrading Rail Link U.S. Secretary of Commerce Penny Pritzker announced that the Department’s Economic Development Administration (EDA) is awarding a $1.6 million grant to the city of Madison, Indiana, to upgrade critical railroad infrastructure to support increased commerce.

The current 70-pound track in the railway system is insufficient for heavier rail cars. By upgrading to 115-pound track, Madison’s Meese Orbitron Dunne, a plastics design and manufacturing company, will be able to expand its product line. According to the grantee, this expansion will create 15 new jobs and save an existing 110 jobs.

Meese is dependent upon the rail system for distribution of its products and materials and has already invested $6 million toward the expansion. The grantee also predicts that the increased capacity of the railroad will assist with future economic development for the region.

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

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People News Van Hattem Inducted into National Waste & Recycling Hall of Fame Republic Services, Inc. (NYSE:RSG) announced that one of its founders, Richard Van Hattem, was inducted into the National Waste & Recycling Hall of Fame.

During his 44 years in the industry, Van Hattem launched successful business ventures that helped give rise to the modern waste industry. In 1972, Van Hattem founded National Scavenger Service in Chicago, which grew to become one of the region’s largest independent haulers until its combination with a Republic Services predecessor company in the 1990s. The company grew from $25 million to more than $6 billion at the time of his retirement in 2006.

Peoples Bank Adds 4, Promotes 3

Vice President, Wealth Management Officer; David Kwait has been promoted to Vice President, Wealth Management Officer; Peymon Torabi has been promoted to Senior Vice President, Controller.

Scott Poole Joins Southeastern Equipment Company Southeastern Equipment Company announced that Scott Poole has joined the company as operations manager at the Evansville, Indiana location. Poole is managing the parts, sales, and service departments for the branch, which includes Southern Indiana and Kentucky in its territory.

As parts manager for a John Deere dealership during the past sixteen years, Poole gained extensive experience with aftermarket sales and parts inventory management. He has over twenty-two years of experience with heavy equipment parts.

Clifford Bryan Earns Wells Fargo Advisors’ “Premier Advisor” Designation Peoples Bank has added four new members to its staff, in addition to promoting three current employees. Tammy Graff has joined Peoples Bank as a Mortgage Loan Originator; Joe Wiszowaty has joined Peoples Bank as a Mortgage Loan Originator; Kim Modigell has joined Peoples Bank as an Assistant Vice President, Business Banker; Don McCormick has joined Peoples Bank as a Vice President, Business Banker. Combined, those four individuals bring over 65 years of banking experience to the company.

Additionally, the three promotions were as follows: Thomas Devine has been promoted to 26

Wells Fargo Advisors has for the 2nd consecutive year, designated Clifford Bryan, Senior Vice President – Investment Officer, as a member of the firm’s Premier Advisors Program, a distinction that reflects Cliff’s achievement of professional success by meeting or exceeding Wells Fargo Advisors’ high standards as measured by one or more of the firm’s criteria for revenue generation, educational attainment and client-service best practices. Bryan has been a financial advisor with Wells Fargo Advisors for 5 years and has 19 years’ experience in the brokerage industry.

New Senior Attorney at Krieg DeVault

First Financial Adds Reis as New VP

Krieg DeVault announced that Sarah Stites Millspaugh has joined the company as a Senior Attorney of the firm’s Health Care and Litigation Practice Groups. Her practice focuses on medical malpractice defense of hospitals, nursing homes and other healthcare providers. Prior to joining Krieg DeVault LLP, Ms. Millspaugh served as the director of risk management and compliance for a large multi-specialty physician group

First Financial Bank is pleased to welcome Kirk Reis as a Vice President and Commercial Relationship Manager. Reis will serve clients in the Greater Indianapolis region.

He has more than 19 years of banking experience, and earned his degree in accounting from the University of Colorado at Boulder. He received his master’s degree from the University of Colorado at Denver.

Bement to Lead Indiana Academy of Science Arden L. Bement Jr., former director of the National Science Foundation and inaugural director of Purdue University’s Global Policy Research Institute, has been appointed president of the Indiana Academy of Science. Bement was the David A. Ross Distinguished Professor of Nuclear Engineering and retired from Purdue in December 2012 after helping launch the new Global Policy Research Institute in June 2010. He is former director of the National Science Foundation and former director of the National Institute of Standards and Technology.

Mejac Joins MC Industrial MC Industrial recently announced the addition of Industrial Construction Industry Scheduling Manager, Amy Mejac, who joined the firm as an experienced scheduling manager.

With nearly a decade of industry experience, Mejac will be responsible for improving process and increasing efficiency on large industrial construction projects awarded to MC Industrial.

Langham Logistics Hires Wareham as Business Development Mgr. Langham Logistics welcomes Brian Wareham to the team as their new Business Development Manager. Wareham received his bachelors of science in business management from Bowling Green State University.

He then went on to become the director of logistics for a national foodservice equipment distributor and now boasts 32 years of experience in supply chain and logistics.

BEDC Names Coyne President The Bloomington Economic Development Corporation (BEDC) Board of Directors announced that Lynn Coyne has been named President. Coyne has a long history of involvement in local economic development and commitment to the community which includes former work as Assistant Vice President for Real Estate and Associate Counsel at Indiana University, Adjunct Instructor at the IU School of Public and Environmental Affairs, a local attorney, and past Chair of the BEDC Board.

www.buildingindiana.com | JULY / AUGUST 2014

O T O E PH R U EAT F

Top Notch of Indiana Holds Statewide Construction Awards Program Top Notch of Indiana held its fifth 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 Indianaâ&#x20AC;&#x2122;s union construction industry. 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.

L to R: Mayor Greg Ballard, City of Indianapolis; Michelle Boyd, Executive Director of Top Notch; Matt Gutwein, President and CEO, Health and Hospital Corporation of Marion County.

Representatives from the IBEW 697 accept the Top Notch Union of the Year Award.

The Top Notch Standards of Excellence Awards program was followed by networking and friendly wagering.

Representatives from Wilhelm Construction accept the Top Notch Contractor of the Year Award.

Representatives from Bowen Engineering and Operating Engineers Local 103 accept the Top Notch Labor Management Foundation Award for their work on Citizens Energy Group Project.

Photo showing the bridge after the slide was complete.

Photo courtesy of the Milton-Madison Bridge Project.

Representatives from Bowen Engineering and Operating Engineers Local 103 accept the Top Notch Labor Management Foundation Award for their work on Citizens Energy Group Project.

Dr. Lisa Harris and representatives from Eskenazi Health celebrate the Top Notch Legacy Project Award.,

Representatives from Health and Hospital Corporation of Marion County accept the Top Notch Legacy Project Award for the Eskenazi Health project.

Gariup Construction Co. Completing Work on Erie-Lackawanna Trail Entrance Work is wrapping up on Crown Pointâ&#x20AC;&#x2122;s new $700,000 Erie-Lackawanna Trail Entrance project, located just off of Summit Street at the beginning of the trail.

The project involved building a shelter and other amenities to enhance the trail entrance. A red-roofed shelter/pavilion was added with the appearance of a train station, and restrooms and a paved lot were added, replacing what had previously makeshift parking. Further construction will be taking place at the 93rd Avenue location along the trail.

JULY / AUGUST 2014 | www.buildingindiana.com

27

STATE OF THE INDUSTRY

Raising the Bar The 21st Century Construction Professional

By Kevin Comerford – Director of Professional Development, Construction Advancement Foundation of Northwest Indiana

T

hroughout my career, I’ve attend career fairs as often as I can to talk with students, veterans, parents, and advisors about the various careers that exist in the professional building and construction industry. Periodically, I come across a teacher or an advisor who mistakenly believes that careers in construction are for “below average” students who have poor grades, behavioral issues, attendance problems, or other unfitting characteristics. Many of these misconceptions stem from the idea that a college degree is the only pathway to a viable career. Teachers and advisors often assume that if a student does not have the credentials to get accepted into college, then perhaps the construction industry will accept them.

The problem is that the skills required for construction careers on today’s jobsite are often more rigorous than those required to get into many colleges.

Where do these mistaken views of construction careers come from?

28

About forty years ago our society started promoting college at the expense of vocational training. Since then, American culture has been conditioned to view alternative forms of knowledge and training that takes place outside of the traditional classroom setting as being somehow subordinate to a college education. Educational policy makers started adopting a one size fits all approach towards educating our students, which has created a shortage of skilled workers coming out of high school. This current approach to education is alarming considering only 32% of high school graduates end up with a college degree within 6 years of graduation. The elimination of vocational classes and other forms of hands-on training in many of our high schools has been detrimental to an entire generation of young men and women who are entering the workforce.

People may not realize there are viable career opportunities in construction, so to help solve this problem a website

was created to help educate and inform students, veterans, and other people interested in career opportunities within the construction and maintenance industries. The need for such a website derived from the fact that the construction industry is seeking qualified men and women that meet the skilled labor demand. Additionally, there is so much misinformation among applicants, parents, and advisors regarding the true qualifications that are needed to become a professional craftsperson.

The website is called We Build Northwest Indiana. Visitors to the website will find that some career paths may require a college degree while most require a comprehensive training and education program known as an apprenticeship.

The information detailed on the We Build Northwest Indiana website is presented in a practical manner. Individuals interested in specific construction career paths can find comprehensive job descriptions, learn facts about the

www.buildingindiana.com | JULY / AUGUST 2014

Construction careers are extremely attractive and many young adults have no idea that they even exist. The realities of the apprenticeship programs are often not fully understood by applicants, parents, or advisors. There is this stigma in our culture that blue collar work isn’t glamorous and should be avoided. Yet the folks working in the construction industry have some of the highest job satisfaction among all careers. David Benedict, a second year Local 395 Ironworker apprentice put it this way, “The level of pride that comes

JULY / AUGUST 2014 | www.buildingindiana.com

with doing quality work is perhaps what stands out the most. Working all day next to arguably the most talented and innovative people in this country makes it an honor to come to work every day.

It inspires me to work hard and learn all I can so that one day I can pass on the knowledge I have learned to the next generation of Ironworkers.”

Find Out More

Those interested in finding about more about careers in the professional construction industry can visit the We Build Northwest Indiana at www.webuildnwi.com.

A FOUNDATION of Success

www.bcrcnet.com

training and education programs, and discover which educational courses are helpful in preparing for a career. If the career path requires an apprenticeship, then the individual can see the number of years required to complete the program, whether or not a college degree is earned upon successful completion of the program, and the location and phone number where applications are accepted.

One thing the new website makes perfectly clear is that construction careers, while lucrative, aren’t for everybody.

Competition for construction careers is extremely rigorous and only the best applicants will be accepted into the apprenticeship programs. All candidates are thoroughly screened and tested to ensure they are qualified and fit to perform the duties of the trade. The apprenticeship hiring committees only employ select individuals who demonstrate a unique blend of both academic and mechanical aptitude. An ideal construction apprentice must be physically fit, mentally sharp, responsible, and hard-working.

Men and women who are admitted into the apprenticeship program get to learn a skillset that is transferrable to every part of the world. Apprentices are taught in both a classroom setting by trained instructors and on actual jobsites under the guidance of journey-level master craft professionals. All apprentices earn a paycheck for the time they spend learning while working in their chosen profession.

Many apprentices even earn an Associates of Applied Science Degree from Ivy Tech Community College and do it without accumulating any student debt.

The We Build Northwest Indiana website will continue to evolve overtime as videos, testimonials, news, and social media content are updated. The site’s resources will help students and advisors stay up-to-date on local industry news and announcements such as scholarship deadlines and applications periods. Applicants can also find information on helpful organizations such Helmets to Hardhats which helps military veterans find employment in the skilled trades or the Indiana Plan which helps promote diversity within the construction industry.

“Knowledge is information that changes something or somebody -- either by becoming grounds for actions, or by making an individual (or an institution) capable of different or more effective action.”

- Peter F. Drucker in The New Realities

range of services to its participants in the unionized construction industry; which includes contractors, labor union organizations and construction industry and related workers.

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We recognize our responsibility to communicate and of drugs and alcohol in our society and workplace.

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29

RULE OF LAW

Indiana’s 2014 Tax Package

Continues State’s Pattern of Year-Over-Year Improvements

By Scott Drenkard, Economist, The Tax Foundation’s Center for State Tax Policy

I

ndiana tax reforms in the past few years have been impressive. In 2011, state senator Brandt Hershman addressed a weak link in the state’s tax code by leading a bill that set the corporate income tax rate on a four-year phasedown from 8.5 percent to 6.5 percent. In 2013, Governor Mike Pence worked with the legislature to maintain these corporate rate cuts while instituting a moderate cut in the state’s already well-structured individual income tax and speeding up the repeal of the state’s inheritance tax.

This year, policymakers have continued the Hoosier trend toward better tax laws, as the governor signed a major tax package on March 25 that will improve the state’s business tax climate further.

Indiana’s reforms to business personal property taxes are of particular interest, as they could serve as a template for tax reform discussions by policymakers in other states. This report lists some major changes in the tax reform 30

bill and the impact they will have on the state economy.

New Law Cuts Corporate Income Taxes and Reforms Business Personal Property Taxes The new tax law, Senate Enrolled Act No. 1, is a compromise of S.B. 1, originally authored by Sens. Brandt Hershman and Luke Kenley, and H.B. 1001, originally authored by Rep. Eric Turner.

Major components of the package will: •

Phase down the corporate in come tax rate to 4.9 percent by 2022, which would make Indiana’s the second lowest corporate tax rate of any state levying the tax.

•

Allow localities the option to enact a business personal property tax filing threshold for

businesses with less than $20,000 in personal property (this threshold is based on acquisition cost of the property).

•

Allow localities the option to exempt new property from the business personal property tax.

•

Create a designated body that may establish an enhanced personal property abatement schedule on a project-toproject basis.

•

Create a business personal property commission of legislators, local officials, and industry representatives to further study business personal property taxes and other business taxes.

www.buildingindiana.com | JULY / AUGUST 2014

Corporate Tax Cuts Further Improve Business Climate Indiana’s recent corporate rate cuts have made it one of the best tax climates in the county. Last year, the state ousted Texas from the top ten of our State Business Tax Climate Index, a ranking of business tax competitiveness. As this year’s package phases in (Table 1), Indiana is projected to move up from 10th place to 8th place overall. The corporate code subcomponent ranking is expected to improve from 24th to 10th (Table 2).

Corporate taxes are a relatively small part of state and local tax collections in most states, and Indiana collects just 3.1 percent of state and local collections from the corporate income tax. Empirical studies that distinguish between types of taxes additionally find that corporate taxes are the most harmful to economic growth. Because of this, corporate rate cuts are often a relatively inexpensive way for policymakers to increase economic growth and improve business climate.

Further, economists agree that corporate taxes are ultimately not borne by corporations themselves, but are passed on

to consumers in the form of higher prices, workers in the form of lower wages, and shareholders in the form of lower dividends. As the state moves to the secondlowest corporate rate in the country (of the states that levy the tax), it will be more attractive to businesses looking to make location changes.

Indiana Business Personal Property Tax Reform is a Model for other States States have moved away from tangible personal property taxes in recent years.

Between 2000 and 2009, collections per

Table 1: Indiana Corporate Income Tax Decreases, Past and Future Fiscal Year

Rate

FY 2012

8.50%

FY 2013

8.00%

FY 2014

7.50%

FY 2015

7.00%

FY 2016

6.50%

FY 2017

6.25%

FY 2018

6.00%

FY 2019

5.75%

FY 2020

5.50%

FY 2021

5.25%

FY 2022

4.90%

Note: The Indiana corporate tax year starts on July 1, the first day of the fiscal year. (e.g., FY 2015 starts July 1, 2014)

Table 2: Indiana State Business Tax Climate Index Ranking under New Law under 2014 new RanK law Overall

10 8

Corporate

24

10

Individual 10 10 Sales

11 11

Unempl. Insur. 13

13

Property 5 5

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Note: Index run assumes full phase-in of the law in place as of the report’s snapshot, July 1, 2013. 1 is best, 50 is worst.

JULY / AUGUST 2014 | www.buildingindiana.com

31

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capita have declined by 20 percent. Seven states (Delaware, Hawaii, Iowa, Illinois, New York, Ohio, and Pennsylvania) have eliminated tangible personal property taxes entirely and four states (Minnesota, New Jersey, North Dakota, and South Dakota) tax very little tangible personal property.

This movement away from tangible personal property taxes is good policy, because these taxes distort the market by subjecting capital and machinery to taxes that labor inputs are not subjected to. In the long run, this puts a penalty on cost-saving, innovative investments.

However, the way states have gone about eliminating tangible personal property taxes has been a mixed bag. A recurring challenge is the conflict of using the state legislature to reform a tax that is relied on for local revenue. Municipal leagues are quick to send lobbyists to the state capitol to halt reforms, even if the reforms are good policy.

In Ohio, the tangible personal property tax was removed in 2005 and replaced by state revenues from a new (and arguably worse) gross receipts tax called the Commercial Activities Tax. In Illinois, the tangible personal property tax was repealed and replaced by a statewide additional 2.5 percent corporate income tax that stacks on top of the already high 7 percent state rate. Sources sometimes neglect to mention the 2.5 percent add-on corporate income tax, misrepresenting the corporate rate that Illinois businesses face.

Indiana’s approach, by contrast, gives autonomy to localities to enact a filing threshold for businesses with small amounts of capital (less than $20,000 in acquisition costs) or to exempt new property (which phases down the tax base as old property is retired). Both of these help localities compete against neighboring states with lower personal property tax burdens, but only if they so choose.

The filing threshold provision deserves special mention as an innovative policy solution. If localities enact this option, they will entirely eliminate the compliance costs for small businesses that file tangible personal property taxes. The business personal property tax forms include calculating all assets and depreciating them according to schedules, a process that causes unnecessary taxpayer headache for what amounts to a small amount of tax collections in the case of small businesses.

In these reforms, Indiana has given localities options to move away from a damaging tax while staying away from poor revenue replacement mechanisms that have crept into reform attempts elsewhere. Other states can look to Indiana as a model for healthy, viable tangible personal property tax reform.

The tax reform efforts in Indiana deserve special recognition as a success at cutting corporate income taxes and reforming personal property taxes in inventive ways. Policymakers reached compromise despite varying approaches and ended up enacting policy that could serve as a starting point for discussion in other states.

Editor’s note: For the full list of Mr. Drenkard’s references, please visit: http://taxfoundation.org/article/indiana-s-2014-tax- package-continues-state-s-pattern-year-over-year-improvements

www.buildingindiana.com | JULY / AUGUST 2014

HONORING SAFETY AND CONSTRUCTION EXCELLENCE Owner Excellence in Leadership Awards

Congratulations to Our 2013 Winners

BP

NIPSCO

Contractor of the Year Brandenburg Industrial Service Company

Excellence Award Airgas On-Site Safety Services Ambitech Engineering Corporation Brandenburg Industrial Service Company Cardno ATC CATSI, Inc. Cornerstone Electrical Consultants, Inc. Imperial Crane Services Inc. Interstate Environmental Services, Inc. Manta Industrial, Inc.

MC Industrial, Inc. Meade Mid-American Group Middough Inc. Nooter Construction Co. R.J. Mycka, Inc. Scheck Mechanical Corporation Solid Platforms, Inc. Stevenson Crane Service, Inc. Superior Construction Co., Inc

Achievement Award MISSION: Northwest Indiana Business Roundtable (NWIBRT) provides a collaborative forum to Northwest Indiana

ACMS Group, Inc. BMWC Constructors BRAND Energy & Infrastructure Services, Inc. Correct Construction, Inc. DLZ Industrial, LLC G. E. Marshall, Inc.

business and industry to advance safety, quality, and value of construction and maintenance projects.

Save the Date: Thursday, May 14, 2015

Gariup Construction Co., Inc. Hayes Mechanical M & O Environmental Company Mechanical Concepts, Inc. Thatcher Foundations Inc. The Ross Group, Inc. Walsh & Kelly, Inc.

Recognition Award Amex Nooter, LLC AMS Mechanical Systems, Inc. Atlantic Plant Services, LLC Code Red Safety EMCOR Hyre Electric Company of Indiana, Inc. Graycor Industrial Constructors Inc. Hasse Construction Co., Inc. KM Plant Services, Inc.

Korellis Roofing, Inc. M & O Insulation Company Matrix North American Construction Inc. Safway Services, LLC Sargent Electric Company The American Group of Constructors Tonn and Blank Construction, LLC Tranco Industrial Services, Inc.

Innovation Award TO JOIN visit us at www.nwibrt.org or call us at 219-226-0300.

JULY / AUGUST 2014 | www.buildingindiana.com

Hayes Mechanical

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Rogers Walters Award Matt Ireland, Hayes Mechanical

33

COVER STORY

Railroading Development After more than two decades of study and discussion, expanding South Shore commuter rail service to south Lake County is moving forward.

By David Wellman, Communications Manager, Regional Development Authority

W

hen Site Selection magazine released its analysis of business growth in major cities around the country in 2013, it contained both good news and bad for Northwest Indiana. To the good, the Chicago metro area, of which the region is a part, was the No. 1 metro area in the U.S. for corporate investment. The magazine counted 373 new and expanding businesses in the area last y e a r.

34

Their total investment was $2.8 billion, and they created more than 10,000 jobs.

The bad news? Virtually all those companies were on the Illinois side of the border.

Despite Indiana’s tax advantage over Illinois and the state’s lower cost of living, only a few companies invested in Lake, Porter and La Porte counties. At the same time, the lack of options for commuting into Chicago from Northwest Indiana meant Hoosiers had a harder time competing for those thousands of new Chicago jobs.

This is why numerous groups and leaders around Northwest Indiana, including Connext, an umbrella organization for several young professionals groups in Lake and Porter counties; the Regional Development Authority (RDA); the heads of major

universities; county and municipal leaders; and Congressman Pete Visclosky, have joined together to champion expanded South Shore service in Northwest Indiana.

“This is a generational imperative,” Congressman Visclosky says. Northwest Indiana faces a declining and aging population, dwindling household income and a growing lack of opportunity. Yet just over the state line, he notes, is a vibrant city with an economy the size of Sweden’s. The only way to reverse trends here is to connect more closely with the economy there.

The numbers are compelling. The Chicago Metropolitan Statistical Area (MSA) is a tri-state economy – Illinois, Indiana and Wisconsin – with a population of 9.5 million people living in 14 counties. It ranks as the eighth-largest economy by GDP in the world and the third-largest in the U.S.,

www.buildingindiana.com | JULY / AUGUST 2014

behind only New York City and Los Angeles. There are 4.5 million jobs in the Chicago MSA – more than in the entire state of Indiana. An investment by Northwest Indiana counties and the state in more closely connecting the region’s workforce to the job generator that is Chicago will reap long-term economic benefits.

The extension, also known as the West Lake Corridor, “will create jobs, increase property values and make Northwest Indiana a more attractive place to live, says Bill Hanna, President and CEO of the Northwest Indiana Regional Development Authority (RDA). “And by increasing our connectivity to Chicago, where the same job pays almost 40 percent more than it does here, we also create more opportunity for our children.

They don’t have to leave to pursue a career.”

The federally required NEPA environmental study for the West Lake Corridor, which would run from Hammond to Dyer along the old Monon line, is underway. The $571 million project will be paid for with a combination of federal, local and RDA funds.

The RDA has pledged $8 million annually for the project, and Congressman Visclosky has spearheaded an effort to raise an additional $8 million annually from local and county governments. So far, Lake County and more than a dozen communities within it have agreed to provide funds for the extension.

A glance at U.S. Census data shows there is plenty of room for growth in Northwest Indiana commuting. Between 29 percent and 40 percent of residents of the counties surrounding Cook County in Illinois commute into Cook County to work. But only about 20 percent of Lake County residents, and just six percent of Porter County residents, do the same, despite similar travel distances.

Because of our lack of connectivity to Chicago, Northwest Indiana doesn’t get its “fair share” of either job opportunities in Chicago, or business development in the metro area.

Still, what the region does get from current riders of the South Shore line is significant. According to NICTD’s most recent ridership survey, the average household income of South Shore riders is $82,400. Nearly half – 47% – of households have annual incomes of $75,000 or more, and 31% have annual incomes exceeding $100,000. More than 4 in 10 current riders (43%) are company officers, managers/ supervisors, professionals

or technical specialists.

If opened on schedule (by 2023) the West Lake Corridor project is forecast to increase total ridership on the South Shore system by approximately 5,600 riders by 2033. This represents a 40% increase in ridership over the commuters currently transported into Chicago. The commuter income returned to

the region by these new riders is $147.3 million annually, a 62% increase over the $237.5 million that the South Shore line commuters now bring back to Northwest Indiana.

That money, when spent in Northwest Indiana, adds to the local economy in the form of increased employment, wages and regional production. The West Lake Corridor and related improvements are projected to add 1,984 jobs to the Northwest Indiana economy. Efficiencies are projected to generate $2.5 billion in economic output and $1.3 billion in gross regional product.

The South Shore line with the West Lake Corridor investment will also create overall efficiencies for the region’s transportation networks. These investments will save approximately 300,000 vehicle miles traveled daily – saving time, conserving fuel, decreasing congestion and reducing environmental damage for the citizens of Northwest Indiana.

duce travel time to Chicago. It would cost about $7 million.

Consolidate or improve stations in Gary.

The plan presents two options for Gary’s three current stations. One option is to close the Miller Beach and Gary Metro stations and build a new station near the terminus of I-65.

This would cost about $38 million. A second option is to close the Clark Road stop near the Gary/Chicago International Airport, and rebuild the existing Gary Metro and Miller stations with high-level boarding platforms. At $54 million, this is the more expensive option.

Build a continuous double track between Gary and Michigan City. Right now, the South Shore line features two tracks from Chicago to Gary, but then narrows to a single track (with a few long passing sidings) to Michigan City. Double-tracking the entire route would greatly reduce commuting times from Porter and LaPorte counties. The cost is estimated at $98 million.

Build an additional track to access NICTD platforms at Millennium Station. The South Shore has only a single track leading into its platforms at Millennium Station in Chicago, creating a potential bottleneck. And additional track would ensure the ability of commuter trains to get in and out of the station.

This project would cost $30 million.

Details on the West Lake Corridor Project The West Lake Corridor is just one project of many identified in NITCD’s new 20Year Strategic Business Plan, completed this year in cooperation with the RDA. The plan calls for about $1.6 billion in investment (including the cost of the West Lake extension) in the South Shore over the next 20 years. This includes new rail cars, station upgrades, double-tracking and realignments in South Bend and Michigan City.

Most of these projects are eligible for up to 50% federal funding. Among them: Construct a high-level boarding platform at Portage/Ogden Dunes station. This will speed boarding at the station and re-

JULY / AUGUST 2014 | www.buildingindiana.com

For an executive summary of the plan detailing all of the projects, visit Facebook.com/rdacatalyst.

35

SAFETY ZONE

Indiana Department of Labor Programs

Prevent Workplace Safety and Health Problems

By Tim Maley, Deputy Commissioner of Labor, State of Indiana

A

s the Indiana Department of Labor’s (IDOL) Deputy Commissioner, I’ve learned companies that experience a workplace fatality are not necessarily bad companies. Companies never plan for their employees to suffer a workplace injury, illness or fatality, and no one thinks these incidents will actually happen to them.

Often companies that experience a tragic incident have a written safety program, provide employee training and use safety equipment. Yet the incident still happens. They all too often come from a gap between the safety programs and comprehensive implementation.

And when it comes to worker safety and health, any program with less than comprehensive transfer to practice will eventually fail.

The IDOL doesn’t only investigate when an injury, fatality or catastrophe occurs; it also offers companies proactive measures to avoid these unfortunate incidents all together. The INSafe division of the IDOL provides free consultation services to help employers achieve voluntary safety and health compliance.

36

www.buildingindiana.com | JULY / AUGUST 2014

through INSafe, businesses invite the IDOL to comprehensively evaluate and inspect their worksites and bring workers and employers together to develop and implement programs to control hazards and prevent worker incidents. If a violation is found, INSafe does not impose fines, but instead offers programs and services to educate and assist employers in safety compliance. Employers interested in this free program can request a consultation online at www.in.gov/dol/2405.htm.

For companies wanting to take their worksites to the next level of safety, the IDOL offers the Voluntary Protection Program (VPP). VPP participants haven proven systems to effectively identify, evaluate, prevent, and control occupational hazards to prevent employee injuries and illnesses. Work sites that participate in VPP are committed to effective employee protection beyond standard OSHA requirements.

And because the company has been proactive and successful in every sense when it comes to workplace safety and health, IOSHA removes these participants from programmed inspection lists.

In addition to the VPP, the IDOL offers the Indiana Safety and Health Achievement Recognition Program (INSHARP).

This program recognizes, rewards, and provides ongoing support to small Hoosier employers that operate exemplary safety and health management systems. INSHARP includes a complete hazard identification survey, program review, and assessment.

INSHARP-certified employers also are exempt from programmed IOSHA inspections during their certification period.

The difference between companies that proactively work with the department and companies who don’t make safety a priority is evident. The average VPP worksite has a DART case rate 52 percent below the average for its industry. And INSHARP certification singles out small employers among business peers as a model worksite for occupational safety and health.

Recently, I celebrated safety milestones with two Indiana companies―CF Industries and Covanta of Indianapolis.

CF Industries celebrated 15,000 days without a lost-time incident and Covanta was

recertified in the VPP with no lost-time injuries and only one OSHA recordable incident in the last four years. These two companies are among more than 60 VPP Hoosier workplaces that have proven occupational safety and health programs.

Companies involved in these programs have not only made a commitment to safety, but are proven leaders by making safety a core value. The Indiana Department of Labor stands ready to work with any Hoosier company that wants to improve its workplace safety and health program.

Although achieving workplace safety and health is challenging and may require a monetary investment, the value is clear: employees return home safe and healthy and feel their workplace is safe. Workplace safety and health translates into company cost savings and a positive community image. It strengthens Indiana’s industries and economic future. It advances the safety, health and prosperity of Hoosiers in the workplace. It’s what I’m striving for every day― and is the primary mission of all who work at the Indiana Department of Labor.

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www.amsmechanicalsystems.com JULY / AUGUST 2014 | www.buildingindiana.com

37

BOTTOM LINE

A Business Owner’s Guide to the

Overlooked Aspects of Financial Planning

By Juli Erhart-Graves, President, Worley Erhart-Graves Financial Advisors, Inc.

W

e’ve all heard the saying attributed to Benjamin Franklin, “Those who fail to plan, plan to fail.” Nowhere does that ring more true than in our financial lives - keeping in mind our financial lives encompass more than just our investments. All too often the sole focus of financial health is a portfolio, when, in reality, our investments are just one piece of the pie. Our insurance coverages, estate plan, taxes, cash management, benefits package, and more have a significant effect on our financial health… and to stay healthy we need a plan.

In addition to the personal areas to address in a financial plan, business owners 38

have additional requirements to ensure a smooth transition for the business. First and foremost is the business contingency plan. In this written document the business owner outlines how the business will continue in the event of his or her death or disability. If the business will not continue, it should include instructions on how to dispose of the company. This document should include information on who will be responsible for day-to-day management until the business can be sold or dissolved. To start the contingency plan, business owners should ask themselves, “What would I want to happen to my business if I died tomorrow?”

When business partnerships are involved, failing to have a buy/sell agreement can be detrimental to all involved, including loved ones left behind after death. Buy/sell agreements, sometimes called buy-out agreements, outline the terms to be followed when a partner leaves the partnership. Sometimes the departure is in happier times, such as retirement, but many times it is because of the death or disability of one of the partners. By agreeing in advance on how these events will be handled, how the company will be valued, and the structure of the financial transaction, the partners and their families can ensure a

www.buildingindiana.com | JULY / AUGUST 2014

smooth transition and avoid legal battles.

Along that same line, when a partnership executes a buy/sell agreement, it is important to put the appropriate insurance products in place to support the agreement. Many times this means the partners or the business will purchase life and disability insurance on the partners. Depending on the financial arrangements in the agreement, life insurance and disability insurance is used by the company or the remaining partner to buy the interest of the departing partner.

Disability insurance isn’t only needed for a buy/sell agreement though. One of the most common shortfalls for business owners is their personal disability coverage. Sometimes it is the complete lack of disability insurance, but other times it is the inadequacy of the coverage they have. Disability insurance is like paycheck insurance – it pays when you are disabled and can’t work – so it allows you to continue to pay your living expenses when you no longer have earnings. Generally, having a disability ben-

efit that pays 50% to 70% of earnings is needed for most workers to avoid drastic reductions in lifestyle, although personal situations should be evaluated for the most appropriate level of coverage.

Many times disability insurance is part of a benefits package. Keep in mind, however, for higher earning individuals and business owners, company coverage and old personal policies may not be adequate. Company coverage has a maximum monthly benefit, so those with higher earnings can end up with a fraction of the amount actually needed.

And, unless additional coverage has been purchased as income has risen, a personal policy usually doesn’t keep up with jumps in pay over the years.

Finally, for business owners, one of the most overlooked aspects of financial planning is building investments outside of the business. Frequently, business owners pour blood, sweat and tears into their business…and follow that up with their money. Not necessarily by writing a check, but most often by taking the approach

that someday they will sell their business so they don’t need to save/invest for their retirement. Just as investing an entire retirement portfolio in one or two stocks is extremely risky, wrapping an entire retirement life (which for most people will be 20 to 30 years) into one company’s success or failure is extremely risky.

Addressing each of these items is critical for business owners and their families. No one wants to fail, so take the time today to plan!

Disclosure: Investment advisory services are offered through Worley Erhart-Graves Financial Advisors, a Registered Investment Advisor. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators nor does it indicate that the advisor has attained a particular level of skill or ability. Always consult an attorney or tax professional regarding your specific legal or tax situation.

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39

logistics Facts & STats Indiana Rail Traffic Statistics

56.2 Million Total Carloads: 656,900

Commodity

Tons

Coal

22,996,000 207,200

Snapshot of Indiana’s Infrastructure

Total Tons:

Carloads

Primary Metal

10,340,000

115,300

Farm Products

7,191,000

68,400

Food Products

6,882,000

70,000

Chemicals

2,737,000 30,000

Other

6,057,000 165,900

Public road miles = 97,066 Miles of railroad used for freight transport = 4,273 Miles of inland waterway = 350 Number of road bridges = 18,789 Structurally deficient bridges = 10.84% Functionally obsolete bridges = 11.65% Source: U.S. Department of Transportation, 2011, 2012

Source: Association of American Railroads, 2011

Fuel Efficiency of Rail In 2012, America’s railroads moved a ton of freight an average of 476 miles on one gallon of fuel. That’s like going from Indianapolis to Birmingham, AL. On average, railroads are four times more fuel efficient than trucks.

Moving freight by rail instead of truck reduces greenhouse gas emissions by 75 percent.

Cutting Highway Gridlock One train can carry as much freight as several hundred trucks. It would have taken approximately 16.1 million additional trucks to handle the 289.7 million tons of freight that originated in, terminated in, or moved through Indiana by rail in 2011.

Source: Association of American Railroads

Did you know?

• Each year, 724 million tons of freight travel through Indiana, making it the 5th busiest state for commercial freight traffic.

• Indiana maintains a network of more than 680 commercial and general aviation airports.

• Indiana ranks 15th in the nation in total foreign and domestic waterborne shipping with 67.5 million tons.

• Indiana ranks 4th in total freight railroads with 41.

• Indiana ranks 9th among all states for railroad mileage with 4,448 miles.

Indiana’s Leading Export Destinations

• 75 percent of the United States and Canadian populations live within one day’s truck drive of Indiana.

Canada

• No state has more pass-through interstates than Indiana.

Mexico

• Indiana has the 6th largest cargo airport in the nation at Indianapolis International Airport.

• Indiana is 10th in the nation in rail tons originated with 50,331,803 tons.

Germany France

Source: Conexus Indiana

Percent of Indiana’s Shipments, 2012

Japan China United Kingdom

“Logistics is an industry segment on the verge of explosive growth due to the fact that U.S. freight movement is expected to double by 2035.”

Source: Conexus Indiana

Spain Brazil South Korea Rest of the World 0%

5%

10%

15%

20%

25%

30%

Share of Indiana Total Exports, 2012 Source: WISEB Trade

40

35%

•

•

Indiana exports Quick Facts from manufactured goods to every continent Conexus Indiana except Antarctica Centrally located, Indiana is roughly a day’s drive away from 76% of the U.S. and Canadian population – that amounts to 232,484,209 people.

Source: Conexus Indiana

www.buildingindiana.com | JULY / AUGUST 2014

Ports of Indiana Shipping Numbers for Last Year • The Port of Indiana-Burns Harbor handed 2.5 million tons of cargo last year. There were increases in shipments of steel, fertilizer, road salt, coal and limestone.

• On the Ohio River, the Port of Indiana-Jeffersonville handled 1.6 million tons last year, with increased shipments of grain, steel, oils and minerals.

• The Port of Indiana-Mount Vernon handled 4.2 million tons for the year - up 21 percent from 2012. Key drivers for the Ohio River port were increases in coal, grain, fertilizer, coke and minerals.

Source: Ports of Indiana

Indiana Population Transit Stats • Percent of Hoosiers who drive alone to work – 85.7 percent of workers aged 16 years and over, national average 79.3 percent • Car Pooled to Work – 9.6 percent of workers aged 16 years and over, national average 10.6 percent • Used Public Transportation to Work – 1 percent of workers aged 16 years and over, national average 5.2 percent • Mean Travel Time to Work – 22.8 minutes, nationally 25.2 minutes • Zero Car Households – 158,114 (6.4 percent), of the total 2.4 million households Source: INDOT

Indiana’s Top Five Export Industries 2012 Exports (in millions)

Average Annual Growth Rate, 2002-2012

$7,156

5.4%

Pharmaceutical Products

$6,040

24.0%

Industrial Machinery (including computers)

$5,536

5.4%

Optical and medical instruments

$2,484

10.1%

Electric Machinery

$2,109

4.4%

Industry Vehicles and Parts (excluding railway)

Source: Kelly School of Business, IU

Major Companies with Distribution Centers in Indiana • Amazon.com • ULTA • Walmart • Target • Dollar General • JC Penny

• Napa Auto Parts • Pep Boys • CVS • Casey’s General Store • Shoe Carnival • Carl Buddig Source: Building Indiana

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41

SMALL BUSINESS

Where Are They Now? Calumet Testing

By Nick Dmitrovich

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

I

t’s interesting to trace back the roots of a company’s success – often you’ll find that many success stories begin with a simple decision, a step forward, that put a business on the right path for growth and expansion. For Calumet Testing Services of Griffith, Indiana, one of the most important decisions the company made was to partner with the Regional Development Company (RDC) for the acquisition of a 504 Small Business Loan. This first step launched more than a decade of growth for the company and helped them expand into a new facility, adding several new services for their customers along the way.

Calumet Testing Services (CTS) provides a wide array of industrial component testing and inspections, involving 42

both nondestructive and mechanical testing methods. CTS’s facility can examine materials using radiography, magnetic particle testing, ultrasonic testing, liquid penetrant testing, alloy verification/positive material identification, tensile testing (600,000 pound capacity), bending and breaking testing, and much more. Basically, if a contractor needs to learn something about their construction materials, CTS can tell them exactly what they want to know.

Additionally, CTS is an American Welding Society Accredited Testing Facility through its Calumet Welding Center site.

Business partners Larry Kondrat and John Korienek took out their first small business loan through the RDC back in 2001, when they purchased Calumet

Testing Services from its founder Robert J. Vidimos. In 2010, the company took out two additional loans with the help of the RDC, and used those funds to conduct a major expansion at their site – a second building was added to house the Calumet Welding Center, and new offices were added on to the existing building that essentially doubled Calumet Testing’s available space.

“This loan really allowed us to accomplish a lot more than we had originally imagined in a very short time,” said Renae Kondrat, Director of Business Development at the Calumet Welding Center. As a result of their small business loan, Calumet Testing Services was able to nearly double its revenue stream; changing from roughly a $3 million company into a $5

www.buildingindiana.com | JULY / AUGUST 2014

million one over the last four years.

Erica Dombey, Executive Director of the Regional Development Company, said, “Calumet Testing is the perfect example of a RDC success story. The owners first used the program to purchase their facility. When the time came to expand their business operations, they used the value of their existing property as their equity injection. Because of the 504 loan program, they were able to obtain 100% financing of the new expansion project and retain their cash as working capital for the new business line. Calumet Testing’s investment into their facility has created jobs and well-trained workers throughout the region.”

Renae Kondrat said that most recently the RDC connected Calumet Testing with Elevate Venture’s Economic Gardening Program, which provides Indiana businesses with free market research, leadership training, and other services designed to help companies grow their business.

First Merchants Bank partnered with the RDC for Calumet Testing’s Loans.

Vice President John Freyek said, “By any measure, both times Calumet Testing has used the program have been rousing successes. Initially to buy the business, and then when they planned a major expan“ Every time a company generates a product, or builds a building, or hires new employees, they are putting money back into the economy.”

Vice President, First Merchants Bank, John Freyek

sion, they wisely utilized the partnership between the bank and the 504 for financing and made their plans come to life.”

He went on to comment a bit about how other small businesses should be considering 504 programs, and how loans of this type impact the community overall. “There are two main reasons that a company should consider the 504 loan program. First, the long term fixed rate on the SBA portion just can’t be beat, and second, the 90% loan to value

reduces the need for a company to deplete cash that can be better put toward operations,” Freyek said.

“Every time a company generates a product, or builds a building, or hires new employees, they are putting money back into the economy. These loans serve as a fuel for the community’s economic engine,” he added.

Kondrat had some words for other companies considering a 504 loan. She said, “If there are other companies out that that are considering a small business loan, I’d recommend getting one. It helped us a great deal, and was low interest. You’d be foolish not to get a small business loan if you’re eligible for one.

It’s easy, and smooth.”

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

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JULY / AUGUST 2014 | www.buildingindiana.com

43

MASS PRODUCTION

A Whole New Door is Opening for Manufacturing Numerous Hoosier Agencies, and three Universities, are Helping Establish New Manufacturing Hub

By Nick Dmitrovich

T

hree Hoosier academic institutions are playing a key role in a nationwide manufacturing initiative established by President Barack Obamaâ&#x20AC;&#x2122;s administration, the most important part of which is a new $320 million digital manufacturing thinktank in Chicago, dubbed the Digital Manufacturing and Design Innovation Institute. The President has stated the specific goal of the program is to bring the brightest minds in industry and academia together to develop and produce new technologies in an effort to help support the United Statesâ&#x20AC;&#x2122; position as a technology leader.

The Digital Manufacturing and Design Innovation Institute aims to create thousands of jobs in advanced manufacturing fields to make the U.S. economy more competitive, generating billions of dollars in value to the Department of Defense and U.S. industrial base. Though the lab is technically a national facility, local companies will have a lot to gain from the work being conducted at the site. Lab officials have stated that the site will host public events where companies can meet potential customers, vendors and form new relationships in addition to collaborative opportunities on research and development projects that many businesses could not pursue on their own, via free online software.

The whole idea for this institute started in 2012, when the Department of Defense (DOD) could not fill orders for 40,000 kinds of parts because there were no contractors who placed a bid. As such, the DOD made advancing digital manufacturing technology a priority, and opened up certain aspects of defense contracting to companies that normally serve other tech markets. The DOD then offered $70 million to seed development of the new $320 million facility.

44

www.buildingindiana.com | JULY / AUGUST 2014

Three schools, Purdue University, The University of Notre Dame, Indiana University, are all partnering to help bring the new institute to life. Conexus Indiana, which acts as the manufacturing and logistics agency for the Hoosier state, and Project Lead The Way Inc. (PLTW), which is an Indianapolisbased science, technology, engineering and math education organization, are also both involved on this project.

Conexus Indiana also plans to partner with the Digital Manufacturing and Design Innovation Institute and major industry members like Rolls-Royce to raise awareness of digital manufacturing opportunities for Indiana manufacturers, improve the local supply chain by helping Indiana manufacturers adopt new digital manufacturing capabilities, and help up-skill Indiana’s workforce to take advantage of careers utilizing digital manufacturing technologies.

“It is significant to have the presidential spotlight focused on the advancement of lightweight materials manufacturing and digital manufacturing, two industry sectors that have a large Indiana presence,” said Steven Dwyer, president and CEO of Conexus Indiana. “As the statewide industry-led organization that has been supporting Indiana’s advanced manufacturing and logistics sectors for seven years, we are honored to be part of these historic projects.

“We know, for example, that digital manufacturing will make military acquisition faster and cheaper. To the extent that Conexus Indiana can help educate in-state aerospace and defense companies about these institutes, and help them improve their digital manufacturing capabilities in particular, we see great potential for our state to attract more defense business,” Dwyer concluded.

Susan Murray, Director of the Engineering Improvement Center at Rolls-Royce, said, “The ‘Digital Lab’ is unique from other institutes with its focus on developing the integrated digital capability of processes, tools and large computing infrastructure underpinned with training a new workforce of the future. We will be applying this to the entire lifecycle of our products to ensure we are being competitive and providing innovation to our customers.”

Through its work with the Digital Manufacturing and Design Innovation

Institute, Conexus Indiana, through the Indiana Aerospace and Defense Council, aims to help the state attract more defense business by getting aerospace and defense companies to adopt new digital manufacturing capabilities.

PLTW Chief Executive Officer Vince Bertram said that the partnerships are a natural fit for this project. “The core of our work in PLTW,” he said, “Is to build this next generation of innovation and problem solvers, critical thinkers and collaborators: students that are inspired and go into various STEM disciplines including manufacturing. For years we just tried to attract industry. We looked

JULY / AUGUST 2014 | www.buildingindiana.com

at the economic and geographic regions and tried to attract companies to those regions to grow businesses. Now we’re going to invest in the core of this work in helping build this manufacturing ecosystem.”

This is certainly an exciting time for manufacturing, not just for Indiana but for the entire country. The Hoosier state has always been a leader in advanced manufacturing, and the new institute has the potential to usher in a whole new era of technological developments and possibly even some new industries. Without a doubt, Indiana’s collaborative efforts on this project are sure to bring some positive rewards to the state.

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45

BEING PRODUCTIVE

Keeping Your Business Prepared How to Address Issues Surrounding Information Security

By Karen Lauerman, Director of Marketing and Communications, Northwest Indiana Forum

W

hen large-scale security breaches

limit the number of times and impact an ill-

Clinical Health) Act of 2009 and its increased

occur, it makes headline news

ness has on their lives. Organizations have

fines and penalties, compliance in this area

and everyone talks about how

to minimize the opportunity for breaches

is of utmost importance.

bad the problem is. People get very un-

Meeting the requirements is a chal-

and avoid impacting their customers.

comfortable; businesses feel vulnerable. Al-

In addition to standard information se-

lenge for any business. Organizations of

though the paperless office still eludes most

curity, regulatory, competitive and physi-

all shapes and sizes need to address infor-

businesses, technology has brought us to

cal limitations have narrowed backup and

mation security.

the point that electronic records are easier

recovery windows, while government com-

Ron Bush of DRD is an expert in the field.

to secure from unauthorized viewing, easier

pliance and corporate governance have

His company is an information management

to keep safe from disaster, and quicker and

placed new demands on document reten-

company that digitizes and stores docu-

easier access.

tion and archiving, including more exten-

ments with a focus on helping businesses

sive archiving with expedient, precision-

comply with various government regula-

point data recovery requirements.

tions, e.g., FRCP, which applies to everyone.

Businesses need to recognize that that no matter what an organization does, they will be targeted and potentially compro-

HIPAA regulations (The Healthcare Insur-

HIPAA-HITECH for health care, Sarbanes-

mised. Saying an organization will never

ance Portability and Accountability Act of

Oxley, etc. Though located in Northwest In-

suffer a security breach is as naĂŻve as say-

1996) mandate that health care providers en-

diana, DRD serves clients nationwide, small

ing that a person will never get sick. We

sure the privacy of patient medical records.

businesses to large conglomerates.

donâ&#x20AC;&#x2122;t approach life believing we will never

With the implementation of HITECH (Health

There are immediate fixes available.

become sick; instead, most people seek to

Information Technology for Economic and

Employers should first secure computer

46

www.buildingindiana.com | JULY / AUGUST 2014

servers or documents with any sensitive

tor’s offices, for instance, often leave pa-

dures with the added protection from an

or private information in locked rooms,

tient files with sensitive personal health

information management company. These

Bush said. Employees should be screened

information out in the open.”

companies tailor services to an organiza-

to make sure they are trustworthy, and pro-

“Most importantly, you cannot audit pa-

tion’s records management needs to pro-

cedures should be put in place about how

per documents,” Ogden said. “You cannot

tect your business/client information and

and when they can access the files. An ad-

tell if they have been breached, if they have

help avoid costly violation fines.

ministrative assistant should know not to

been sent anywhere and the reason and the

Bush said that most good document

allow people who show up claiming to be

recipient. I’ve been to banks where they

management companies have state-of-the-

technicians access to the servers without

have paper documents in file cabinets in the

art facilities for document and electronic

first verifying who they are and whether

middle of the lobby so loan officers can get

files to ensure information security. Surveillance cameras 24/7, smoke detection,

they are supposed to be there.

He notes that “An appropriate document retention schedule that is adhered to will help decrease legal liabilities. As many recent court cases have shown, it can in-

“ Records are more secure in digital form, where they can be indexed and tracked.”

sprinkler system and theft deterrent systems provide a safe and secure environment. In his company, they do no publish our location and access is restricted, and all employees undergo full background

crease your company’s liability just as much to retain a record too long as to keep

to them. But there are times when no one is

checks, random drug testing and receive

it for too short a time.”

in that lobby, and no one would ever know if

extensive initial and ongoing training in

the documents are missing or not missing.”

information management and compliance.

Steve Ogden, a client development manager for Digitech Systems, a Denver-

While security takes energy and ef-

“Ultimately with a security breach, be it

based document capture and retrieval

fort, if organizations focus in on the right

credit card number or personal medical in-

company, offered that “Records are more

areas they can greatly reduce the impact.

formation, the bottom line is affected,” Bush

secure in digital form, where they can be

One of the best game changers for an or-

said. “Statistically, a third of breached cus-

indexed and tracked. Paper files are more

ganization is to make sure the business

tomers never return to those organizations.

vulnerable to fires, floods and theft. Doc-

is aligned with internal security proce-

Most businesses couldn’t survive that”

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47

CONSTRUCTION FEATURE

Making Connections I-69 Project Dubbed a “Corridor of the Future”

By Nick Dmitrovich

Construction Contractors for the I-69 Corridor Project, by section Section 1 Section 2 Section 3 Section 4 Section 5 Section 6

Contractor Gohmann Asphalt Clarksville, IN Weddle Bros.

Bloomington, IN Gohmann Asphalt Clarksville, IN

Indianapolis

Blankenberger Brothers Cynthiana, IN E.S. Wagner Oregon, OH Gohmann Asphalt Clarksville, IN Kokosing Construction Columbus, OH Gohmann Asphalt Clarksville, IN Gohmann Asphalt Clarksville, IN Crider & Crider Bloomington, IN Force Construction Columbus, IN Walsh Construction Force Construction Columbus, IN White Construction Clinton, IN TJ Lambrecht/FH Paschen Joliet, IL Fred Weber Maryland Heights, MO Crider & Crider Bloomington, IN Weber/Kolb MO White Construction Clinton, IN Milestone Construction Indianapolis, IN Gohmann Construction Clarksville, IN E.S. Wagner Oregon, OH Crider & Crider Bloomington, IN

Evansville

H

oosier legislators have been dreaming of a “Southwest Indiana Highway” connecting Evansville to Bloomington since the 1970’s – but none of those visionaries ever expected just how far the idea would eventually stretch. Presently, contractors are working on developing this new artery to serve as a link between Indianapolis and the Southwestern parts of the state, ultimately forming a massive interstate pathway that will extend from the United States’ border with Mexico all the way up to Canada. This means that the primary north-south venue for the movement of goods and services in the U.S. will pass right through the heartland of Indiana, and its capital city.

Officially designated as one of the Federal Highway Administration’s six “Corridors of the Future,” the I-69 project is expected to bring several great things to Indiana in terms of job creation, economic development and incredibly enhanced logistical options. Additionally, at the peak of construction in 2011, I-69 was the longest contiguous new terrain interstate construction project in the U.S., further putting Indiana in an enviable position to attract new jobs in a competitive global market place.

“The new I-69 between Evansville and Indianapolis is a key component to the future economic vitality of southwestern Indiana, and will connect an entire region with improved access to jobs, education and healthcare. During its first 20 years, I-69 is predicted to generate $3.5 billion in additional personal income growth, prevent nearly 40,000 serious injuries, and save $1.1 billion in driver time and vehicle operating costs,” said Will Wingfield, Media Relations for the Indiana Department of Transportation (INDOT).

Officials with INDOT have reported that initial cost estimates have been on target, because bids from contractors have come in lower than expected and INDOT is using new methods to design and build the road. “INDOT has been completing work concurrently instead of consecutively to improve speed and contracts are bid with alternate

Source: INDOT, May 2014

48

www.buildingindiana.com | JULY / AUGUST 2014

INDOT has divided the Corridor into six sections as follows: •

•

•

•

•

•

Section 1 - from I-64 (near Evansville) via the SR 57 corridor to SR 64 (near Princeton/Oakland City) Section 2 – from SR 64 (near Princeton/Oakland City) via the SR 57 corridor to US 50 (near Washington).

Section 3 - from US 50 (near Washington) via the SR 57 corridor and cross-country to US 231 (near Crane Naval Surface Warfare Center).

Section 4 - from US 231 (near Crane Naval Surface Warfare Center) via cross-country to the intersection of Victor Pike Road and State Road 37 (south of Bloomington).

Section 5 – from State Road 37 just north of the intersection of Victor Pike Road (south of Bloomington) via State Road 37 to State Road 39 (Martinsville).

Section 6 – located from State Road 39 (Martinsville) via State Road 37 to I-465 (Indianapolis).

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and option pavement designs for increased price competition,” the agency has reported.

The I-69 project was funded largely through the $3.85 billion that Indiana gained through the 2006 “Major Moves” deal, which involved the 75-year lease of a Northern Indiana toll road in exchange for upfront capital that was routed into pressing infrastructure needs.

The project has been divided into six sections, each of which is being treated as its own project. Presently, Sections 1 through 3 from Evansville to Crane Naval Surface Warfare Center now open to traffic and Section 4 from Crane to Bloomington slated to open by early 2015.

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Construction Costs (for the active and completed sections): • Sections 1-3, Evansville to Crane: $640 million • Section 4, Crane to Bloomington: $443 million • Section 5, Bloomington to Martinsville: $325 million Source: INDOT, May 2014

Kevin Brinegar, President and CEO of the Indiana Chamber, said “The opening of the new I-69 extension is a real game changer and it will benefit our state’s economy by making Indiana a more viable hub for commerce through enhanced transportation capabilities.

Communities along the corridor will see long-desired benefits from increased business investment.”

Sam Sarvis, INDOT’s Deputy Commissioner of Capital Program Management, said, “The new I-69 corridor will deliver significantly reduced travel times and we look forward to sharing more information about that key benefit at the grand opening. It is also important to note that work continues on Section 4 that will connect I-69 from the US 231 interchange to State Road 37 south of Bloomington by the end of 2014.”

The I-69 expansion project is certainly going to be one to keep an eye on over the next few years. As more and more phases of the project are completed, new critical links will develop for Hoosier businesses. Indiana has always had a reputation for outstanding logistics, but this new national pathway from Mexico to Canada through our state will surely catapult Indiana into a new economic chapter of continued success.

JULY / AUGUST 2014 | www.buildingindiana.com

49

CONSTRUCTION FEATURE

Choosing Hoosier Logistics

Mill Steel Company Brings New Facility to Port of Indiana-Jeffersonville, Takes Advantage of Indiana Logistics

By Nick Dmitrovich

T

he Port of Indiana-Jeffersonville’s

120,000-square-feet. Three new cranes

provide Mill Steel with direct connec-

“steel campus” is getting a big

will be installed in October, and the newly

tions to multiple rail carriers including

boost this summer with the addi-

added expansion and rail system will be

CSX Transportation, the Louisville & In-

tion of a new state-of-the-art processing

completed by the end of this year. Pres-

diana Railroad Co., and Norfolk South-

facility from Mill Steel Company, a leading

ently, the existing portions of the building

ern Railway. These three railroads also

North American flat-rolled steel supplier.

are operational, and are shipping painted

interchange with Canadian National, Ca-

The economic benefits surrounding this

steel now, taking advantage of the Port of

nadian Pacific, the Indiana Rail Road Co.

project are predicted to be widespread,

Indiana-Jeffersonville’s logistics options

and Paducah & Louisville Railway Inc.

which will be substantial addition to the

along the Ohio River.

Additionally, the Port offers year-round

“steel campus” alliance of more than a

“Mill Steel and other companies gain an

barge shipping with access to the Gulf

dozen companies that work together to

advantage by locating at one of Indiana’s

of Mexico and Great Lakes through the

provide a range of metals-related industrial

three ports,” said Victor Smith, Indiana Sec-

Ohio-Mississippi river system.

services at the Port.

retary of Commerce. “The Ports of Indiana

“Mill Steel’s advanced manufacturing

The expansion of the company’s oper-

helps businesses boost their logistics skills

capabilities are a perfect fit for our mul-

ations to Jeffersonville, IN location brings

through direct rail-to-barge capabilities,

timodal port environment,” said Ports of

a capital investment of $16.1 million and

strategically located at the crossroads of

Indiana CEO Rich Cooper. “This company

an estimated 43 new full-time positions

America. Companies can transport goods

has an extremely impressive leadership

to the region. Mill Steel purchased an

to their clients more efficiently here, mak-

team that is keenly aware of the com-

existing 105,000-square-foot facility and

ing Indiana a state that works.”

petitive advantages created by our multi-

immediately began an expansion to add 50

The Port of Indiana-Jeffersonville will

modal connectivity and existing synergies

www.buildingindiana.com | JULY / AUGUST 2014

between the world-class steel processors

existing steel service center processing

Steel Dynamics, Voss Clark, Kinder Morgan,

located at the port. We welcome Mill Steel

locations. Jeffersonville fills a geographi-

Omni Source and Metals USA to name a few.

to our port family and look forward to

cal gap between our northern facilities of

The developments surrounding this

helping the company expand its business

Grand Rapids, MI and Melvindale (Detroit),

project are just further validation that Indi-

in southern Indiana.”

MI, and our southern facility in Birming-

ana is one of the best states in the country

David Samrick, CEO of Mill Steel Co.,

ham, AL – as it is almost exactly half way

for manufacturing. Hoosier logistics serve

said, “We are very excited by the oppor-

between our Melvindale (Detroit) and Bir-

as the backbone for the state’s manufactur-

tunity to locate in Jeffersonville, which we

mingham facilities. We have been targeting

ing-based industries, and companies are

feel is an outstanding complement to our

this region for the past few years, selling

increasingly taking notice of the full effects

existing steel service center processing

aggressively priced material and programs.

of the multimodal system that Indiana has

locations of Grand Rapids, MI, Melvindale

Accordingly, we already have a first shift of

built. With the plethora of different options

(Detroit), MI, and Birmingham, AL. We felt

production sold with existing business.”

available to companies when it comes to

it was absolutely critical to position our-

“The Port of Indiana—Jeffersonville’s

moving their products, it’s plain to see why

selves at a location that will enable us to

central location and inter-modal transpor-

so many companies are choosing Indiana

continue our delivery of outstanding just-

tation options make it a desirable area for

as the number one place to locate their op-

in-time services to our growing automo-

our business as well. The port is accessible

erations and grow their client base.

tive, construction, appliance and general

via rail, barge, and is directly connected to

manufacturing customer base.”

several interstate highways,” Heglund said.

Pam Heglund, Vice President of Sales

Several new industrial collaborations

with Mill Steel Co., detailed some of the

are predicted to develop as a result of Mill

specific reasons behind the company’s de-

Steel Co. choosing this location. The Ports

cision to locate its operations at the Port of

have reported that Mill Steel Co. is expect-

Indiana-Jeffersonville site. She explained,

ed to further develop established relation-

“The Jeffersonville, IN, location is an out-

ships with other port service providers

standing logistical complement to our

and companies such as Roll Forming Corp.,

Construction Companies Developing Mill Steel Company’s Expansion • •

•

AML Inc. – Contractor/Builder LEE Construction Company – Equipment Installation CRB Crane and Service Company – Crane Suppliers

Source: Mill Steel Co.

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JULY / AUGUST 2014 | www.buildingindiana.com

51

Reshaping Healthcare

WELL BEING

Governor Pence Announces HIP 2.0 Plan, Bringing Changes to Indiana Medicaid

By Nick Dmitrovich

J

ust a few short weeks ago, Indiana Governor Mike Pence announced his new plan to advance private, market-based Medicaid reforms in Indiana. Dubbed the HIP 2.0 plan, this concept would serve as a consumer-driven health care coverage program for low-income adults that builds on Indiana’s history of consumer-driven health care and would replace traditional Medicaid for all nondisabled adults. Pence’s proposed changes to Medicaid contain aspects that are a first nationwide, putting Indiana at the forefront of healthcare reform.

“The facts are clear. Today we have 350,000 low-income, working Hoosiers— those below 100 percent of the federal poverty level or a family of four making about $24,000 a year or less—who lack access to the kind of quality health insurance that their better-off neighbors enjoy. Experts 52

rightly call this the “coverage gap.” Many Hoosiers up to 138 percent of poverty, or $33,000 for a family of four, also cannot access affordable coverage and live in uncertainty,” Governor Pence said.

“There are two futures in health care – government-directed health care or consumer-driven health care. Indiana has chosen consumer-driven health care and intends to give eligible Hoosiers the power to make their own health care decisions through HIP 2.0,” he said.

“Reforming traditional Medicaid is essential to creating better health outcomes and curbing the dramatic growth in Medicaid spending,” said Governor Pence. “HIP 2.0 takes consumer-driven Medicaid reform to the next level by replacing traditional Medicaid for many in Indiana with a plan that empowers participants to take charge of their health and

to be cost-conscious consumers.”

Key components of the changes under HIP 2.0 include the addition of choices for Hoosiers that promote HIP’s consumerdriven model, while providing new incentives for members to take personal responsibility for their health. Additionally:

•

•

•

•

HIP 2.0 introduces a new HIP Employer Benefit Link plan that supports participation in employer-sponsored insurance plans It maintains and increases the Personal Wellness and Responsibility (POWER) account, modeled after a Health Savings Account, from which members would pay for medical services It provides a new option for families to be covered by the same health plan.

It facilitates linkages to employment

services and rewards individuals for securing employment and moving off public assistance

www.buildingindiana.com | JULY / AUGUST 2014

HIP 2.0 will be an option for Hoosiers ages 19 to 64 with incomes up to 138 percent of the federal poverty level, which for 2014 is approximately $16,105 annually for an individual or $32,913 for a family of four. It creates a benefit structure similar to commercial health insurance plans. HIP 2.0 will not raise taxes and will be fully funded through Indiana’s existing cigarette tax revenue and Hospital Assessment Fee program, in addition to federal Medicaid funding, officials have stated.

HIP 2.0 incents Hoosiers with incomes below 138 percent of the federal poverty level to contribute to their POWER account by rewarding those who contribute with access to the HIP Plus plan, an enhanced benefit plan that covers dental and vision care. Individuals who do not make financial contributions will maintain coverage through the HIP Basic plan.

The HIP Basic plan will provide all essential health benefits, but will not cover vision and dental care, provides a less generous pharmacy benefit, and will require copayments for all services. Members with incomes more than 100 percent

of the poverty level would have access only to the HIP Plus plan and would be incented to make their contributions or risk losing access to the program.

“The modified design of HIP 2.0 maintains emphasis on the principles of personal responsibility and represents our continuing efforts in Indiana to find innovative, fiscally responsible ways to get people the care they need,” said Debra Minott, Secretary of the Indiana Family and Social Services Administration. “All individuals in HIP will have incentives to get recommended preventive services and manage their POWER account funds appropriately.”

Pence said that much of the reasoning behind this new initiative comes from the levels of success that the Healthy Indiana Plan has already attained. Several statistics he cited included: • HIP has lowered inappropriate emergency room use by 7 percent compared to traditional Medicaid • 60 percent of HIP enrollees use preventive care

• HIP enrollees choose generic drugs at a much higher rate than people covered by other private insurance plans • Consumer-driven health plans have been shown to decrease health care spending by 25 percent • Indiana’s public employees saved Hoosier taxpayers $23 million annually by adopting consumer-driven plans, and a downward trend in health care costs has arisen with HIP as well

Pence said, “The Healthy Indiana Plan integrated the principles of consumer behavior with Medicaid, encouraging enrollees to take charge of their health care and empowering them to act as consumers in the health care market. And here in ‘the state that works’…it works.”

Nationally, these proposed changes to Medicaid have placed Indiana in the spotlight as other states begin to examine the concepts presented. It will be interesting to see the effects of this new plan as it’s set in place, and exciting to consider the possibility of other states following suit with similar plans in the future.

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The Conexus Indiana Central Regional Logistics Council is represented by the following companies:

LOGISTICS

ABF Freight Systems Allison Transmission American Structurepoint Appian Backhaul Direct Becton Dickinson Belkin Bernardin Lochmueller & Associates Butler Fairman & Seufert Civil Engineers Cargo Services, Inc. Caterpillar CB Richard Ellis CDM Smith Celadon Group Central Indiana & Western Railroad CHA Companies Citizens Energy Group Coca-Cola Refreshments USA Container Port Group Coregistics Corradino D-A Lubricant Company Dematic Corporation Dow AgroSciences Duke Realty Eli Lilly and Company Fed Ex Corporation Finish Line Firestone Building Products Company Fraley & Schilling Genco G.S. Transportation Goodwill Industries of Central Indiana Guitar Center Hanzo Logistics HNTB Corporation HP Products Ice Miller Indiana Rail Road Company Indianapolis Airport Authority Ingram Micro Company Integrated Distribution Services Jacobson Companies Katz Sapper & Miller Langham Logistics Magnum Transportation Solutions MD Logistics Merchandise Warehouse Co. MJ Insurance MKM Distributing Monarch Beverage Montgomery Aviation OHL Contract Logistics OSP Group Perkins Companies Red Gold Reese Alexander Regal Beloit Roche Diagnostics Operations Rolls-Royce Corporation Sentry Logistics Solutions Spot Freight Stoops Freightliner Summit Realty Group Telamon Corporation The Phoenix Group Tippmann Group/Interstate Warehousing Tucker Commercial Real Estate UPS URS Corporation Venture Logistics Source: Conexus Indiana

54

New Partnerships Aim to Grow Hoosier Logistics

Central Regional Logistics Council Formed, Completing the Framework of Regional Logistics Networks Throughout the State

By Nick Dmitrovich

I

t’s no secret that Indiana is a national leader when it comes to logistics; other states have been using Hoosier logistics innovation for years as an example that should be followed when forming their own infrastructure planning. The real question is: What is Indiana doing to maintain, and grow, this high level of success? Presently, Indiana logistics experts are forming new partnerships that aim to support and advance Hoosier logistics well into the future.

The new Central Regional Logistics Council (CRLC) was recently announced, having been born through a collaborative effort between the Central Indiana Corporate Partnership and Conexus Indiana. The specific goal of this project is to create an industry-led initiative that’s designed to identify and advance local projects and policies in an effort to strengthen the region’s logistics sector.

The CRLC will impact a 28-county region including Marion and surrounding counties

as far north as Howard County, extending east to Wayne County, west to Vermillion County and south to Monroe County. This council is the sixth regional council launched in Indiana since early 2013; previously Conexus had partnered with other local entities (mostly regional economic development groups) around the state to form Northwest, Northeast, North Central, Southwest, and Southeast regional logistics councils.

The mission of the regional councils are to advance the logistics industry in all six regions through prioritizing state and regional needs and projects from a logistics industry’s perspective, including but not limited to: (1) documenting future regional logistics industry needs through identifying and filtering unidentified logistics industry weaknesses; (2) creating a forum for regional input regarding current strategic initiatives; (3) providing awareness to government leaders through a recognized ve-

www.buildingindiana.com | JULY / AUGUST 2014

hicle; (4) identifying research needs for the transportation and logistics industry; and (5) expanding industry involvement.

The CRLC will provide input to the Conexus Indiana Logistics Council statewide logistics plan, and develop strategic initiatives to help transportation, distribution and supply chain firms on a regional and local level. The Conexus Indiana Logistics Council has identified a number of projects and priorities on the state level, which are outlined in a new plan, “Delivering Indiana’s Logistics Future.”

David L. Johnson, president and CEO of the Central Indiana Corporate Partnership, said, “Conexus Indiana has advanced significant projects throughout the state that have defined and strengthened our logistics industry. Because of the depth and breadth

growth,” Holt added.

Mark DeFabis, President and CEO of Integrated Distribution Services Inc. in Plainfield, has been named chairman of the Central Regional Logistics Council. DeFabis also serves as a member and chairman of the Public Policy Task Force of the Conexus Indiana Logistics Council (CILC), a 54-member statewide industry-led council that guides the development of infrastructure, public policy, awareness and workforce development priorities for the state’s logistics industry.

“Central Indiana has major logistics infrastructure assets and our goal is to protect and grow those assets to continue to

strengthen our logistics industry and our position as the ‘Crossroads of America,’” DeFabis said. “Like other businesses in Central Indiana, Integrated Distribution Services recognizes how important it is to leverage our existing position and continue to plan for future growth.”

This entire regional council initiative could bring about some very positive things for Indiana in the future. The linkage of public and private entities into one collaborative body provides more eyes on the ground, so to speak, when it comes to developing ideas for continued growth due to more direct stakeholder involvement.

“Indiana gains the development of assets needed to keep us competitive in being a logistics capital for employment and company growth,” of CICP member companies and the high caliber of the region’s logistics firms, this Council has great potential to discover more opportunities for economic growth.”

David Holt, Vice President of Operations and Business Development with Conexus, said, “The deliverables for each of these groups are to identify statewide logistics needs not yet identified by the Conexus Indiana Logistics Council and to launch regional strategic plans that identifies infrastructure, public policy, and workforce development needs for all 92 counties.”

“We were asked to form these in all six areas of the state by INDOT, IEDC and the Ports of Indiana after the success of our statewide strategic plan. They wanted regional specific needs that were identified by the private sector that would ensure the Indiana remains and grows our designation as the Crossroads of America,” he said.

“Indiana gains the development of assets needed to keep us competitive in being a logistics capital for employment and company

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WOEKERS COMP

Managing Worker’s Compensation with an Economical Approach New Workers Comp Regulations Begin Summer 2014

By Karen Johnson, President of the Northwest Chapter of the Indiana Worker’s Compensation Institute / Director of Marketing & Worker’s Compensation, Lakeshore Bone & Joint Institute

P

assed by the Indiana General Assembly in 1915, The Worker’s Compensation Act of Indiana’s purpose is to provide a means for financial assistance to injured workers when injured on

the job. The goal of this act was to protect injured workers and their families with a solution for personal injury or death.

The First Regular Session of the 118th General Assembly (2013) for HEA (House Enrolled Act) No. 1320 made some amendments to the previously existing statute. One of the biggest discussed items was the change in payment of charges to “Medical Service Facilities”, which would include hospitals, a hospital based health facility or a medical center. Sections IC 22-3-2 through IC22-3-6 give provisions for the new rulings that will begin on July 1, 2014. Payment of the charges in a reasonable amount to a medical service facility, which is established by payment of one of the following:

(A) The amount negotiated at any time between the medical service

facility and any of the following, if an amount has been negotiated: i. The employer. ii. The employer’s insurance carrier. iii. A billing review service on behalf of a person described in item (i) or (ii). iv. A direct provider network that has contracted with a person

described in (i) or (ii).

(B) Two hundred percent (200%) of the amount that would be paid to

the medical service facility on the same date for the same service or

product under the medical service facility’s Medicare reimbursement

rate, if an amount has not been negotiated under clause (A).

56

www.buildingindiana.com | JULY / AUGUST 2014

So what does all this mean? Medical

the injured worker returning to work as

As medical care costs are rising at-

service providers are now being limited on

soon and as safe as possible should be the

tention should be given to all factors in

what will be reimbursed for work comp pa-

objective in the end.

choosing appropriate services and pricing.

tients. If an agreement has not been made

On the other hand, third party pricing

Quality of care needs to be a component in

between insurance carriers and medical fa-

agencies can offer a work comp insurance

determining if it is beneficial to have a dis-

to keep the claim cost down. However, the

carrier or employer a means to manage

counted rate or if taking the discount will

use of third parties sometimes does not re-

their claims very efficiently. By contracting

cost more in the long run. A good way to

duce cost due to the quality of the service

with third parties a substantial savings can

make sure a claim is handled as efficiently

that was rendered and negotiated. An ex-

be applied to the total cost of the claim.

as possible is to be aware of all the op-

ample of this would be having a good quali-

What service would typically cost $2500;

tions available before making a decision.

ty MRI. As a physician recommends an MRI

with a third party can cost $700. This

The cost of services provided is only one

as a way to diagnose an injury, being able

would be a considerable savings when try-

aspect in handling a work comp claim the

to obtain a quality reading is vital in mak-

ing to get the most bang for your buck and

most resourcefully.

ing the correct diagnosis. With costs on

will be evident in your bottom line.

cilities, payment will be based on 200% of the Medicare reimbursement rate.

Work comp insurance carriers and employers are becoming more and more concerned with keeping costs low and managing their work comp claims with an economical approach. The use of third party pricing agencies is a method insurance carriers or employers can use to cut costs while providing care for the injured worker.

This in theory makes good sense as a way

the forefront hiring a third party to schedule and bill for this service can sometimes backfire. If the MRI radiologistâ&#x20AC;&#x2122;s report is poor it leaves the chance to have a misdiagnosis or the need for reimaging which will add up to additional unnecessary costs.

It is important to understand when negotiating pricing for services that cost is not the only factor that comes into play.

The quality of service that can be provided at the most reasonable price is the primary objective to be considered when figuring the pricing for a particular claim.

Just as one would shop for a home all factors both good and bad about the property should be presented and then based on cost the appropriate decision can be made whether to purchase the home or not. The same goes for medical services. What are the advantages or disadvantages to using a network provider versus going out of network? Will a cheaper service provide the same outcome or will an injured workerâ&#x20AC;&#x2122;s care be compromised? Sometimes you get what you pay for and things end up costing more than they should. In all situations JULY / AUGUST 2014 | www.buildingindiana.com

57

LIFELONG LEARNING

Laying an Academic Foundation Big Boost to STEM Teacher Recruitment will Impact Hoosier Industries

By Nick Dmitrovich

A

s a manufacturing intensive state, how can Indiana maintain its position as a manufacturing leader for future generations of Hoosiers? By equipping our educators with targeted skills that will be necessary to prepare our students for careers heavily centered around scientific, technical and mathematical skills.

Earlier this year, Indiana’s Education Roundtable, a group co-chaired by Governor Mike Pence and Superintendent for Public Instruction Glenda Ritz that works to improve educational opportunity and achievement for all Indiana students, announced a major boost towards Indiana’s efforts in recruiting more teachers into scientific, technological, engineering and math (STEM) fields of practice. $9.7 million in funding will be provided to several academic institutions and industry outreach groups from the STEM Teacher Recruitment Fund to encourage the recruitment and retention of teachers in STEM Fields.

This funding boost will have direct impacts on Hoosier manufacturing, and other technical industries, because of the pathways set in place by the Education Roundtable. Members of the roundtable consist of key leaders from education, business, community groups and government, and concepts have been designed to provide skills in the classroom that will relate directly to industry as the student grows older.

The Indiana Education Roundtable has reported that more than 115,000 new STEM jobs are projected for Indiana by 2018, with 40 percent requiring post-secondary education leading to an associate’s degree, and 60% requiring a four-year degree. Putting 58

of Indiana Teach for America participants continue to teach in Indiana beyond their initial commitment. Teach or America’s participants receive training through Marian University and the University of Phoenix.

“ The Indiana Education Roundtable has reported that more than 115,000 new STEM jobs are projected for Indiana by 2018, with 40 percent requiring postsecondary education leading to an associate’s degree, and 60% requiring a four-year degree. ” qualified teachers in place is going to be absolutely essential to fulfill the training needs of these workers.

“Our employers tell us that tomorrow’s workers will need more STEM skills, and Indiana’s goal is to identify and encourage quality teachers to broaden our students’ learning experiences,” said Governor Mike Pence. “Continuing to recruit top educators and expand our students’ options will only enhance the outstanding work of our teachers, but also help our students as they make decisions about future career opportunities.”

Here’s a look at what the ten grant recipients plan to do with the funds: Teach for America, $1,976,426 Recent college graduates will be recruited to teach STEM subjects in Indianapolis and Northwest Indiana low-income schools; Participants commit to at least two year teaching assignments in Indiana schools with high at-risk student populations; more than 70%

Woodrow Wilson Indiana Teaching Fellowship Program, $3,716,304 By recruiting recent college graduates and professionals who have already completed undergraduate degrees in STEM fields, the Woodrow Wilson Indiana Teaching Fellowship program has partnered with Ball State University, the University of Indianapolis, Purdue University, and IUPUI to support 180 participants complete Master’s Degrees to become licensed to teach STEM subjects.

Graduates commit to teach for at least three years in Indiana schools with high at-risk student populations.

Independent Colleges of Indiana, $1,529,550 The thirty-one Indiana independent, nonprofit colleges and universities will collaborate to train more STEM teachers by (1) strengthening STEM preparation for pre-service teachers to become licensed in STEM subjects; (2) expanding STEM graduate course opportunities for teachers to complete licensing requirements in STEM subjects; and (3) organizing course and other training for teachers to become certified to teach STEM dual credit courses.

University of Southern Indiana Foundation, $835,138 The University of Southern Indiana departments of biology, chemistry, engineering, geology, physics, mathematics, and teacher

www.buildingindiana.com | JULY / AUGUST 2014

education will recruit STEM majors to complete secondary education teacher licensure requirements and will support elementary education majors interested in completing science teaching or elementary/middle level math minors.

Program participants—Teaching Eagles—will also be engaged in co-curricular service learning opportunities.

Indiana Association of Career & Technical Education Directors, $290,881 The IACTED will partner with the Indiana Department of Education, Ball State University, Indiana State University, IUPUI and Vincennes University to recruit and train teachers for STEM career and technical education courses. Participants will complete the Workplace Specialist I CTE teacher training program and Workplace Specialist II licensure requirements.

credit courses in partnership with three of the state’s major research universities (Purdue University, Indiana University, and Ball State University).

Purdue University Research Foundation: Agricultural Science, $173,250 To increase the number of agricultural science teachers, Purdue University will partner with Vincennes University, Ivy TechColumbus, and Ivy Tech-Ft. Wayne to recruit students completing agricultural science associate degrees to transfer to baccalaureate degree agricultural science teacher licensure programs. This 2 + 2 model will be supplemented with a distance-based introduc-

Conexus, $393,141 Through the development of the Hire Technology advanced manufacturing and logistics curriculum for high school students, Conexus is preparing students for middle-skills jobs in high wage economic growth sectors. Conexus will expand the recruitment and training of Hire Technology teacher by including Pre-service teachers at Marian University and Ball State University.

Additionally, Conexus will recruit college graduates and working professionals to complete Hire Technology teaching certification requirements through Ivy Tech Community College.

tory agricultural science education course to be offered to associate degree students.

Project Lead the Way, $247,500 Recognized as a national leader in high school engineering and biomedical science curricula, Project Lead the Way will expand training opportunities for teachers to become certified to teach PLTW Pathway to Engineering, Biomedical Science, and Gateway Technology courses and curricula.

PLTW will focus on STEM career and technical education pathways for high school students aligned with work-based learning opportunities, particularly in advanced manufacturing.

Attend the Annual Influential Women of Northwest Indiana 2014 Event

Indiana After School Network, $311,850 The Indiana After School Network will partner with Marian University and Indiana UniversitySouth Bend to recruit undergraduate STEM majors who are not yet enrolled in teacher education programs and pre-service teacher education students who are not yet in STEM fields to participate in STEM instructional activities for students during out-of-school time. Through the Ignite! Scholars Program, these undergraduate students will engage students in after school programs at Indiana Department of Education 21st Century Community Learning Center, using NASA Ignite and First Robotics curricula.

Hamilton Southeastern School Corporation Foundation, $188,100 By establishing “senior academies” to transform the senior year of high school so that eligible students can complete college coursework, the Hamilton Southeastern School Corporation will train teachers to be licensed or certified to teach STEM Advanced Placement and International Baccalaureate courses and STEM dual JULY / AUGUST 2014 | www.buildingindiana.com

This event honors Influential Women in business who have made an impact in our community Join us on November 6th 2014 5:00-8:00pm Avalon Manor in Merrillville Sponsorship opportunities are available Proceeds donated to local charities Call 219.226.0303 or visit www.nwiwomen.com 59

GREEN & SUSTAINABLE

Environmental Compliance Resources for Your Business IDEM’s Compliance and Technical Assistance Program (CTAP) Offers a Free One-Stop Shop for Environmental Regulatory Compliance Needs

By Cathy Csatari, Senior Environmental Manager, Indiana Department of Environmental Management’s Office of Pollution Prevention and Technical Assistance

“It was good to receive assistance without the risk of potential fines. CTAP (Compliance and Technical Assistance Program) is a great program.”

“It was nice to discuss issues without worrying about consequences; the site visit was relaxed and informative.”

T

hese quotes are just a sample of the positive feedback the Indiana Department of Environmental Management (IDEM) has received from businesses that have sought and received free, confidential on-site environmental compliance assistance from the agency’s Compliance and Technical Assistance Program (CTAP). Thousands more have received assistance from CTAP via telephone and/or electronic mail.

CTAP is a non-regulatory program within IDEM offering free, confidential compliance assistance to help Hoosier businesses understand and meet their environmental responsibilities. CTAP staff members are

60

highly-skilled environmental professionals dedicated to assisting businesses understand and comply with environmental regulations and requirements.

CTAP’s goal is to confidentially inform Indiana businesses of applicable air, water, and waste requirements and empower them to better manage environmental compliance issues. Many of the businesses IDEM works with do not have an experienced environmental professional on staff.

Therefore, CTAP can: •

•

•

•

Help a business understand environmental regulations and avoid environmental compliance issues.

Assess an entire facility’s compliance with environmental requirements.

Address specific concerns about a particular process or regulation.

Help analyze where money can be saved throughout manufacturing processes.

CTAP offers a Quality Assurance Guarantee (QAG) to on-site consultation customers.

This guarantee assures customers that IDEM

will not issue a Notice of Violation (NOV) assessing a gravity-based penalty against a regulated entity that has sought out, received, and relied upon CTAP’s written compliance assistance prior to the alleged violation.

“By assisting businesses in evaluating their waste streams, CTAP is able to help them identify changes that may save them money and reduce their environmental burden,” said Rick Bossingham, Assistant Commissioner for IDEM’s Office of Compliance Support. “CTAP is a free, confidential assistance program designed to help Hoosier businesses understand and achieve environmental compliance.”

CTAP’s confidential telephone and email consultations, confidential on-site consultations and assessments, confidential training sessions and workshops, and on-line resources are offered completely free of charge.

To obtain compliance assistance on environmental requirements or to schedule an on-site consultation, businesses can call CTAP toll free at (800) 988-7901 or e-mail staff at ctap@idem.in.gov. To learn more about CTAP and what the program offers, visit www.in.gov/idem/ctap/index.htm.

www.buildingindiana.com | JULY / AUGUST 2014

“P4P2,”“ESP” and “CLEAN” programs offer benefits Along with CTAP, IDEM’s Office of Pollution Prevention and Technical Assistance (OPPTA) offers additional programs in which businesses and communities can find free incentives, recognition for exemplary environmental performance, and opportunities to network with others who are eager to share beneficial information and experience.

The Partners for Pollution Prevention (P4P2) is an organization comprised of Indiana industries, businesses, nonprofit organizations, and governmental entities interested in Pollution Prevention (P2), as well as the financial and environmental benefits P2 projects can bring. This organization provides a forum where Indiana businesses can network and exchange ideas about P2 experiences and discuss how P2 fits into IDEM’s regulatory programs. For more information regarding the Partners for Pollution Prevention and becoming a member, visit www.in.gov/idem/ppp/.

The Environmental Stewardship Program (ESP) is a voluntary, performance-based leadership program designed to recognize and reward Indiana businesses for going above and beyond current environmental regulatory requirements. Businesses are recognized as ESP members after implementing an Environmental Management System (EMS) and committing to continual environmental improvement through pollution prevention and source reduction activities. In return for exemplary environmental performance, members are eligible for incentives including regulatory flexibility, public recognition, and networking opportunities. For more information about the Environmental Stewardship Program and its incentives, visit www.in.gov/idem/prevention/2359.htm.

The CLEAN Community Challenge is a voluntary, recognition program rewarding cities, towns, and counties for proactively managing environmental impacts associated with the community’s operations. CLEAN members develop and implement a Quality of Life Plan (QLP) and select environmental

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priorities to focus on during the designation period. CLEAN can potentially help communities cut operating costs, while improving the quality of life for residents. Participants making small, positive changes impacting the environment can reap valuable rewards, including decreased costs, increased efficiencies, state-wide recognition, improved relationships with regulators, and certain financial and regulatory incentives from IDEM and state agency partners. For more information about CLEAN and its incentives, visit www.in.gov/idem/prevention/2361.htm.

IDEM’s Office of Pollution Prevention and Technical Assistance understands the ongoing challenges businesses and communities face in meeting regulatory requirements while still trying to efficiently and effectively operate. OPPTA programs are available to assist businesses easing concerns, coordinate efforts and create an atmosphere of networking and education, and incentivize thoughtful actions to improve both the environment and the economy.

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MARKETING

Market Your Business

by Sponsoring Local Events Generate Exposure through Community Involvement

By Nick Dmitrovich

E

ven though we live in an interconnected world of technology and social media, there is still no substitute for faceto-face marketing. One of the most effective ways to keep your company personally connected to your surrounding region is to actively participate in major events, specifically, integrating your company with those events through sponsorship.

The United States Small Business Administration published materials on the significance of this form of marketing, and said, “Event marketing can work for all types of small businesses; from a service business to a product-oriented business; from a B-to-B company to a consumer focused company.

Whether you own an accounting firm, a yoga studio, an auto repair shop, a bookstore or an office supply store, there’s a way to make event marketing pay off for your business.”

The first step to think about when your company is looking into event sponsorship is how much your company is willing to invest in the event. Like any other form of advertising, sponsorship will require a donation or participation on your part, but the return on this investment almost always makes the contribution worth the effort.

Finding the right event to match your company and clientele is the next essential step. Every company has its own targeted audience, and it’s important to figure out which events are likely to bring the kinds of customers that your company is seeking. Additionally, it’s important to look for specific community business events that may foster outstanding networking opportunities for your company. Events like this would include things like corporate golf outings, or awards banquets, where many local professionals will be gathered together in one location, allowing you to maximize your exposure among the business community.

Finding an event with a proven track record 62

of high attendance and media exposure should definitely be something to look for with this type of sponsorship.

When looking for the right type of event to sponsor, it would be wise to contact other companies that have acted as sponsors for that event in the past. That way you could assess whether or not that particular event was worth sponsoring for other companies in the past. Sometimes events just don’t live up to their own hype, so it’s important to acquire some first-hand assessments about the value in that particular investment.

The next important step would be to contact the orchestrators of the event to find out what kinds of sponsorship opportunities exist. Occasionally you’ll find that your donation simply gets your company logo added to the program, or event signage, but in many cases your company might be presented with the opportunity to take things a step further. It would be a great benefit to your company to have members of your own staff incorporated into the event, perhaps having a booth established where your employees could spread information about your services, distribute samples, or possibly actually selling some of your products. When potential customers can “put a face with the name,” so to speak, the chances of a bigger return on your investment increase. Each event is different, so you’ll have to ask about costs, requirements, and opportunities.

It’s at this point that companies should really be thinking creatively about what they’ll be doing at these special events. Thinking outside the box will help earn your company extra attention. Consider handing out specialty items to people, or a fun game near your designated space that visitors can enjoy.

Advanced planning and general preparedness are going to be a must for your company if you have members of your staff actually working at the event. If your goal

is collecting leads, or making new contacts, make sure your employees are prepared to distribute contact information or other published materials about your company. It’s truly all about leaving a strong impression on the attendees – you want them to remember you in a positive way. Your company must make sure to send enthusiastic, energetic, and professional staff members to the event in order to generate the best impression.

It’s going to be important to set specific goals for the employees that you plan to send, so you can better evaluate your return on investment after the event has concluded. Fine-tuning your approach based on what you’ve learned will lead to better results with each event that your company chooses to participate in and sponsor.

Summertime is the best time of year for event sponsorship; it’s time to break the ice, and get your staff members out into the community to promote your business. With so many chances to capture new leads, sales, and contract opportunities (all while enjoying the fine weather and summer sun), smart business owners know that investing in a local event is a solid choice to make when looking into ways to promote their companies.

Recap •

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•

•

•

•

Determine what you’d like to invest in sponsored events Find the right event to match your target audience Reach out to the event planners to learn costs, options, and opportunities Think creatively, and plan something interesting and attention-getting for the event Plan ahead, and establish specific goals Assess whether or not those goals were met, and fine-tune your approach for next time

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FRANCISCAN ALLIANCE EIGHTH ANNUAL NORTHERN INDIANA REGION GALA

SATURDAY, OCTOBER 18, 2014 HILTON CHICAGO

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For information, call Colleen Lannon, (219) 933-2178, or email colleen.lannon@franciscanalliance.org All proceeds will benefit the Franciscan Alliance Northern Indiana Region Mission Programs

JULY / AUGUST 2014 | www.buildingindiana.com

63

ECONOMIC DEVELOPMENT

Economic Development is Taking Place in Each Indiana Region Regional Breakdown of the Largest Projects

By Nick Dmitrovich

N

o matter where you go in Indiana, development and growth are taking place. Each of Indiana’s regions is seeing a boom this summer in terms of new jobs added, new construction, companies relocating to Indiana and new companies starting up. In this article we’ve compiled a regional breakdown of some of the largest new developments that have recently begun to take flight across the Hoosier state.

Northeast – Indiana’s defense industry received a big push recently with the groundbreaking of BAE Systems’ new $39 million facility in Fort Wayne, IN., near the international airport. BAE Systems is a global company that’s engaged in the development, delivery and support of advanced defense, security and aerospace systems.

The company will retain over 1,000 jobs at its new location which plans to be a 355,000 square-foot state-of-the-art engineering and production facility. BAE Systems considered alternative locations, but ultimately chose to remain in Fort Wayne.

“Today’s event demonstrates the unprecedented positive momentum we’re seeing in the City of Fort Wayne,” said Mayor Tom Henry. “Job growth, job retention, economic development opportunities, and quality of life are the key components that make our City a leader in attracting and retaining jobs and businesses.”

“Aerospace innovations are skyrocketing to new heights, powered by Hoosier-built systems at BAE. In turn, these Hoosier systems are powering our troops with advanced technology, as well as supporting the commercial aircraft dotting our skies today,” said Eric Doden, President of the Indiana Economic Development Corporation.

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Northwest – Just a few short weeks ago, leading aerospace manufacturer Alcoa (NYSE: AA) broke ground on its state-of-the-art, $100 million aerospace expansion in La Porte, Indiana where it will produce nickel-based superalloy jet engine parts. The new 320,000-square-foot facility will expand Alcoa’s reach from structural engine components for business and regional jets to large commercial aircraft, including narrow- and wide-body and military airplanes. Engines for narrow-body aircraft are among the top selling jet engines in the world.

Construction of the plant is underway and is expected to be complete by the fourth quarter of 2015. Indiana Governor Mike Pence and other state and local dignitaries joined Alcoa executives, employees and community members to celebrate the expansion which will create 329 jobs by 2019.

In Indiana, the Alcoa employs more than 3,200 associates at three locations: Evansville, Lafayette and La Porte.

“Hoosiers are expert builders, constructing airplane components and lifting our Indiana economy,” said Governor Pence. “Indiana-manufactured goods serve industries in all corners of the world, reaching new heights in business and, for Alcoa, in the skies.”

Central – Recreation revenue is expected to grow considerably around the Indianapolis Zoo this summer, with the opening of the $26 million Simon Skjodt International Orangutan Center. The new facility is expected to have more than a $130 million annual economic impact on the state’s economy, and its will serve as a significant hub for ground-breaking research, education efforts and global conservation outreach. The zoo is expecting up to a 25-percent increase in attendance during the first year for the exhibit.

The new Center allows orangutans to engage in their natural behaviors while challenging their curiosity and creativity.

It accommodates the orangutans’ arboreal lifestyle, stimulates and engages their remarkable intelligence, and supports their unique social structure.

“The International Orangutan Center provides the apes with a rich and complex environment perfectly suited to their needs,” said Dr. Robert Shumaker, Vice President of Life Sciences at the Indianapolis Zoo and a foremost orangutan expert. “It is quite simply one of the best zoo habitats for orangutans in the world. Zoo visitors will marvel at the orangutans’ grace, abilities and intellect, and will hopefully feel compelled to take action to protect their future in the wild.”

South More than 235 jobs are expected to come to Jasper, IN, by 2017, with the Jasper Engines & Transmissions $6.9 million expansion project that the company recently announced.

Jasper Engines & Transmissions is planning to renovate and equip a 220,000 square-foot facility located half a mile southwest of its 367,000 square-foot Jasper headquarters. The additional facility will house the company’s transmission division and is expected to be operational this fall. Jasper Engines & Transmissions currently employs more than 1,445 people in Indiana.

“Jasper Engines & Transmissions is a great Indiana economic success story. The company that has prospered and provided hundreds of jobs for Hoosiers for over 70 years is expanding again,” said Lt. Governor Sue Ellspermann.

Doug Bawel, Chairman and CEO of Jasper Engines & Transmissions, said, “When looking at our options for expansion, no other place measured up to the business climate in Indiana.”

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65

The Last Word The Greenhouse Fellowship: Cultivating Tomorrow’s Leaders

By Russell G. Taylor, Executive Director, The Foundations of East Chicago

How do you spark revitalization in communities where health, community economic opportunities and optimism have diminished?

It’s a persistent challenge in an environment where the population is aging, resources are stretched and cynicism, low education attainment and politics are at all-time highs.

The solution, of course, lies with the next generation: Young people who are still optimistic, unfettered by the limitations of the past, and blessed with equal parts curiosity and a passion for “The Next Big Thing.” They hold the keys for hope. The trick is to find ways to harness their potential and counter the “brain drain” that stymies the recovery of ailing communities.

The Foundations of East Chicago is launching a way to bring hope to reality. It’s an innovative initiative called The Greenhouse Fellowship. Created by the FEC with Insight Labs, a foundation focusing on social innovation, the program is being piloted in East Chicago with hopes it will be a model for other cities to follow.

For one year, the first “class” in this program will be encouraged, taught the skills and given the tools to bring about social change. Ten Fellows, each awarded a salary of $24,000 with benefits, were chosen based on their capacity for networking, leadership, affinity for creative thinking and outside-the-box perspectives – not their test scores. In fact, many aren’t even college bound at this stage of their life.

This September, the Fellows will be paired with local nonprofit agencies with-

in their community. During the first half of the year-long program, they will learn from prominent professionals whose work engages with social-economic issues.

Then the Fellows will identify, design and implement their own social or community development project during the last six months of the program.

It’s appropriate that East Chicago is the source of innovative thinking about community revitalization and will host the Greenhouse Fellowship’s pilot. It is representative of Rust Belt cities that were struggling even before the Great Recession to find their way: the population base has been shrinking (by 9 percent since 2000) as the industrial base has diminished, and double-digit unemployment persists, while statewide (outside of Northwest Indiana) it has dropped to the 6 percent range. It’s no wonder the median household income of $27,666 falls well short of the statewide median of $46,438.

In East Chicago and hundreds of postindustrial cities like it, leaders from businesses, churches and schools all understand the causes of the problems afflicting their neighborhoods and how to fix them.

But diagnoses and ideas are not enough to help communities heal. When young people are engaged to meet the challenge, the outcomes and payoff are huge.

In fact, the National League of Cities Institute on Youth Family and Education has found that “the advice, support and action of young people can help ensure that cities craft effective policies, cultivate the next generation of citizens, and find ways to enhance the quality of life in

their communities.” It notes that authentic youth engagement has led to budget savings and revenue generation, improved school curriculum, and more relevant and accessible services for youth and families.

The value and impact of outcomes like that are lost on no one. The implications of the program for revitalizing communities has led the Greenhouse Fellowship to attract several dozen experienced advisors from academia, business, community organizing, education, government, philanthropy and science in support of the effort.

Many have voiced an interest in applying the lessons they hope to glean from East Chicago back to their own communities.

As one of our advisors noted: “As a society, we need to start thinking about empowering our youth to deal with the issues taking hold that ultimately are really going to affect them.

“The transformation of our cities – ways to improve economic growth and development, jobs and prosperity – is crucial. This program has the right of it. Start small, investing in local ownership by the next generation of leadership. Then let’s show everyone how to make the concept big.”

Russell G. Taylor is Executive Director of The Foundations of East Chicago, dedicated to leading social change by strengthening and improving the quality of life in East Chicago through strategic grant and scholarship programs. To learn more about The Greenhouse Fellowship and opportunities to partner with the FEC to grow the concept, contact Taylor at rgtaylorfoundationsec.org or visit www.greenhousefellowship.org

The opinions expressed in this article are the views of the authors. We welcome your response.

If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.

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