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Erasing the Lines As children, we’re all taught to color within the lines, and that’s a habit that tends to stick with us through the rest of our lives. But it also leads to a tendency to draw lines, creating artificial borders that limit our own thinking. Too often, businesses miss opportunities not because they aren’t capable of taking advantage of them, but because it would cross some line drawn long ago, for what may or may not have been a good reason. Wisely, erasing lines has come into favor in Indiana in the wake of the recession. New groups are forming, like the new MidWestern Indiana Economic Development Initiative (see page 76), as local economic development organizations join forces to better market themselves as regions. New strategies are being developed, new success stories being written. That’s why Building Indiana News is expanding coverage statewide. For those of you reading us for the first time, we’ve spent the last five years chronicling business and economic development in northern Indiana – Lake, Porter, St. Joseph, La Porte, Starke, Jasper and Newton counties. But for all that’s going on in this region, there’s even more happening elsewhere. And it’s through sharing everyone’s stories that we can best serve our readership and help them build business, jobs and communities in Indiana. So help us help you: let us know what’s happening with your company and in your region. Drop us a note at firstname.lastname@example.org, or call us at 219226-0300. Your stories are our stories – the stories of how we’re building Indiana. Kind Regards,
Publisher/Editor Andrea M. Pearman email@example.com 219.226.0300 ext. 301 Senior Writer David Wellman firstname.lastname@example.org 219.226.0300 ext. 307 Creative Director Rebekah Hendricks email@example.com 219.226.0300 Office Coordinator Jean Fostini firstname.lastname@example.org 219.226.0300 ext. 303 Assistant Office Coordinator Joan Ranta email@example.com 219.226.0300 ext. 308 Special Projects Coordinator Maureen McShane firstname.lastname@example.org 219.226.0300 ext. 302 Director of Marketing Chrischelle Schmidt email@example.com 219.226.0300 ext. 304 Media Director Kristin Harkin firstname.lastname@example.org 219.226.0300 ext. 307 Sales & Consulting Kathleen Schneider email@example.com 219.226.0300 ext. 305 Account Manager Desiree Brummett firstname.lastname@example.org 219.226.0300 Website www.buildingindiananews.com
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for lower taxes, business and housing costs Indiana is the smart move for companies looking for lower business costs, a skilled and dependable workforce, and a supportive business climate. Did you know? • Indiana ranks first in the Midwest and 12th nationally in the Tax Foundation’s 2010 Business Tax Climate Index. • Indiana ranks first in the Midwest and fourth nationally for Business Friendliness in CNBC’s “America’s Top States for Business.” • Indiana has the lowest business cost index in the Midwest and fourth lowest in the country, according to Forbes. • Indiana has a state budget that preserves $1 billion in cash reserves. a AAA credit rating, and is one of only a handful of states not considering a massive general tax increase.
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40 Being Productive Managing Mobility
46 Small Business Spotlight Fee-Free Boost
04 Publisher’s Desk 08 Contributors
09 Business Buzz
64 Logistics Lock Up
28 People News 56 Facts & Stats Employee Statistics
66 Worker’s Comp Compensation Clarity
59 Real Estate Corridor Report Indy on the Upswing
83 Location Finder Economic Developers 84 Real Estate Marketplace 42 MASS PRODUCTION It’s Raining Green
53 Feature Slam Dunk 76 Community Spotlight Joining Forces 79 FEATURE Silver Indiana
30 State of the Industry Vox Populi
48 Cover Story Healthy Development
32 Rule of Law Waivers Done Right 35 SAFETY ZONE Saving on Safety 37 The Bottom Line Better Late Than Never
68 Your Well-Being Centers of Caring 70 Lifelong Learning “National Model” for Leadership Training Launched 72 Green & Sustainable From Roof to Road 74 Welcome Center Indiana Online 80 Company Spotlight Wittenberg Village 86 The Last Word Unions Prepare for Future Success www.buildingindiananews.com
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Contributors DONALD A. BIESEN, CPCU Don Biesen is Vice President with Braman Insurance Services. He graduated from Indiana University with a Bachelor of Science degree in Management. He received his CPCU designation from the American Institute for Property and Casualty Underwriters in 1998. Prior to joining the Braman Insurance Services, Don was a sales professional with Frank B. Hall in Chicago, Illinois. He is also a member of the Construction Advancement Foundation. MICHELLE BOYD Michelle Boyd is Executive Director of Top Notch, the largest labor/ management association representing union construction in the state of Indiana, representing more than 75,000 union tradesmen and 4,000 contractors. Michelle has served as the Executive Director of Top Notch for more than 10 years and brings over 17 years of marketing experience to the organization. RAMAN CHOPRA Raman “Rum” Chopra is Principal with The C/N Group. He is responsible for the company’s diagnostic imaging business and real estate. He serves on the Advisory Board for the Imaging 100 Conference, and on the Board of Managers for Banyan Enterprises, a private equity group. Prior to joining The C/N Group in the Spring of 1997, Rum spent seven years in Strategic Consulting. Rum holds a BS in Economics and an MBA from Southern Methodist University.
GREG HARPER Greg Harper is President of Runzheimer International, a workforce mobility management company based in Waterford, WI. Harper is frequently requested to speak at industry events on the topic of workforce mobility management. He has delivered numerous presentations to Fortune 500 organizations and professional associations, including the Society for Human Resource Management (SHRM) Annual Conference. He holds a Bachelor of Business Administration degree from Iowa State University.
CARRIE A. KOONTZ Carrie A. Koontz is an attorney with Kopka, Pinkus, Dolan & Eads. She has extensive experience in various areas of the law, including areas of corporations, bankruptcy, family law, immigration, intellectual property, general civil litigation, probate administration and insurance defense. Her professional affiliations include the Indiana Bar Association, the St. Joseph County Bar Association, Phi Alpha Delta Legal Fraternity, the Volunteer Lawyers Network, Lawyers for the Creative Arts, and the Young Professionals Network.
DAVID HOLT David Holt is Vice President of Operations and Business Development for Conexus Indiana. He is responsible for budgeting, business development and engagement activities, development of a statewide strategic plan for Indiana’s logistics industry, promotion of a defense asset study and internal office operations.
CRAIG A. LAUDER Craig A. Lauder is a Midwest Account Manager for Total Safety US, Inc. Upon honorably serving with the 18th Airborne Corps during Desert Storm from 1990-1994, Craig went on to receive his BA from Purdue University. Craig resides in the Valparaiso area with his wife, four children, and two Golden Retrievers.
STEVEN A. JOHNSON Steven A. Johnson is a partner in Johnson, Rappa & Ivancevich, LLC, in Merrillville. He concentrates his practice in the areas of litigation, labor relations and construction law. Johnson has served as an adjunct professor at Valparaiso School of Law and has taught labor relations at Purdue University Calumet.
DEWEY PEARMAN Dewey Pearman serves as the Executive Director for the Construction Advancement Foundation. He holds a Masters Degree in Economics from Indiana State University. The Foundation promotes the union construction industry of northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development.
RANDY C. VALE Randy Vale is Vice President with Braman Insurance Services. He graduated from Indiana University in 1987 earning a Bachelor of Arts degree from the School of Public and Environmental Affairs. He began his insurance career in 1987 with Bankers Life and Casualty, joining the Braman Insurance Services in 1990. Randy specializes in Property and Casualty Insurance and Risk Management. He is also a member of the Construction Advancement Foundation. Jeremy York Jeremy York is a consultant with Flashpoint Human Resources Consulting in Indianapolis. York has a Master of Science in Management from Indiana Wesleyan University and a Bachelor of Science in Organizational Leadership and Supervision from the Purdue School of Engineering and Technology-Indianapolis, where he is also an adjunct faculty member. Experienced in human resources, communication, training and management, York is the vice president of programs for the Human Resource Association of Central Indiana and a member of the Society for Human Resource Management.
Building Indiana Expands Coverage Statewide
MARCH/APRIL 2009 2009 JULY/AUGUST
State of the Industry The Union Difference 30
Passing the Test 66
The Last Word
Tourism Powers the Region 70
Community With a “Y” 43
A Link to the Future 52
Welcome Center Super Crowd 64
or five years, Building Indiana News has worked to bring its northern Indiana audience the best coverage of the region’s businesses, tourism and economic development efforts, growing communities and challenges for the future. And for the past year, our sister publication, Indiana Employer, has worked to bring the best in human resources, worker’s compensation, and employee and business management advice to businesses statewide. Now, we are combining those efforts: Building Indiana is merging with Indiana Employer to create the largest statewide business-to-business magazine in Indiana, reaching 60,000 readers with the best of both magazines. The consolidation of the two magazines was driven by demand for a statewide b2b magazine, according to Publisher Andrea Pearman. “We’ve created one publication that covers economic development, real estate, manufacturing, healthcare, finance, and technology – core industries in the state,” she said. “We also remain dedicated to our C-Suite readers who want coverage on worker’s compensation, human resources and employment topics. “In short, we’re remaining true to the integrity of both publications while providing a business voice statewide – we are about ‘building’ Indiana in the true sense of the word.” The publication will continue as a bimonthly magazine with popular regular
articles, features and coverage like “Who’s Who,” “Facts and Stats” and “Swanky Awards.” In addition, the Building Indiana team will also be adding conferences and events statewide. “Our expansion to statewide coverage is really about facilitating communication, relationships and new business for our readers – both in print and in person,” Pearman said. We are also planning conferences, facilitator luncheons and networking events throughout 2010 to ensure our audience can interact and grow their business.” In addition to the magazine, Building Indiana will also engage business and civic leaders throughout the state online at www.buildingindiana.com and through face-to-face events. The 3rd Annual “Build Indiana” conference covering northern Indiana is planned as a half-day conference event May 6th in Merrillville. A statewide event is already in planning stages for the fall. The team of senior executives Chrischelle Schmidt, Kristin Jurczak and Kathleen Schneider, Senior Editor Dave Wellman and Associate Desiree Brummett are leading the statewide expansion. “I couldn’t ask for a better team,” Pearman said. “The range of experience they bring to the table are an asset to our publishing and event efforts, and also to our partners in developing their own promotional efforts.” For complete details on the new Building Indiana, visit our website at www. buildingindiana.com 9
National Contractor Wins Concrete Award The American Group of Constructors was awarded an Outstanding Concrete Achievement Award from Ozinga Indiana RMC and the Indiana Ready Mix Concrete Association (IRMCA). The award recognizes TAG’s work on the 34K Relocate/Heavy Haul Road as part of BP’s ongoing Whiting refinery modernization project.
Economic Development Company Updates Name, Logo, Web Site
in the region, and provides a platform for continued growth and success,” said Jim Newman, P.E., SEH of Indiana’s President. Kerry Keith and Matt Reardon join Newman as officers of the subsidiary. SEH has maintained an office in northwest Indiana since 1994, and offers clients a full range of services including municipal engineering, planning, economic development, water, wastewater, environmental, transportation and energy services.
The Starke County Economic Development Foundation (SCEDF) unveiled its new name, branding and Web site in December. According to President Bill Sonnemaker, adding the word “Economic” to the former name better conveys the mission and function of the SCEDF. Meanwhile, the new Web site (www.scedf.biz) offers improved access to those considering a location in Starke County. “One of the needs of this organization was a Web site specifically designed for site consultants, industrial real estate brokers and companies searching for new locations to establish businesses,” said Executive Director Charles Weaver. The new site has a Site Selector Hot Button, as well as pertinent information for resident companies, including forms for reports regularly required to be filed with the State of Indiana and Starke County. SCEDF Vice President Diane Thalmann headed up development of the new Web site. Jim Wagner, SCEDF Secretary, said that “the new logo presents a modern, identifiable, eye-catching brand reflecting the forward movement of SCEDF.” SCEDF is a not-for-profit Local Economic Development Organization (LEDO) providing economic development opportunities on behalf of Starke County, the City of Knox and the Towns of North Judson and Hamlet.
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Accounting Professionals Establish New Firm
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Braman Insurance Services (Merrillville) will mark its 13th year of partnership with Amerisure Mutual Insurance Company in 2010, continuing a relationship that helps provide Braman’s clients in Indiana with the best and most complete suite of insurance and risk management products. “Amerisure is committed to a strong service culture, and to the success of its partners,” said Randy C. Vale, Partner at Braman Insurance Services. “We share the same values – our businesses are all about meeting the needs of our clients so that they can prosper despite any challenges they encounter.”
Thomas Sponsel, CPA/ABV, CVA, CFF, has announced the formation of Sponsel CPA Group, LLC, a new Indianapolis-based full service accounting firm. The firm begins with more than a dozen accounting professionals and plans to hire 30 employees by the end of 2010. The company’s executive leadership team includes four partners: Thomas (Tom) J. Sponsel, Lisa Purichia, Jason Thompson and Nick Hopkins. “We formed a new kind of CPA firm,” said Managing Partner Sponsel, who has more than 30 years of strategic accounting and business consulting experience in the Indiana marketplace “In this economy, clients expect more depth of knowledge and value from their strategic partners and employees want more opportunities to contribute to their companies.” Sponsel CPA Group offers auditing and assurance services; tax strategy, planning, consulting and preparation; strategic financial and business consulting; entrepreneurial services; financial planning and wealth management; litigation, business valuation and appraisal services; merger and acquisition consulting and facilitation; succession planning; and bookkeeping. www.buildingindiananews.com
Community Health Network Foundation, the Indianapolis-based philanthropic organization of Community Health Network, has received a $1 million cash donation from John W. “Jack” Heiney, the largest financial donation in the organization’s history. Heiney, a retired president and CEO of Indiana Gas Company and a civic leader who has served on various Community Health Network boards for nearly 40 years, made the unrestricted gift to fund the foundation’s mission to support Community’s commitment to improve the health of the central Indiana communities it serves. The unrestricted donation will provide funding to improve community health through outreach, wellness and prevention programs, to invest in Community’s network of health care facilities and employees who deliver the best coordinated and convenient care possible, and to lead patient-centered health care reform. According to Heiney, his donation was also made to celebrate his wife, Betty, who passed away in July 2009 after they enjoyed nearly seven decades of marriage. Community Health Network will commemorate the gift by naming a portion of Community Hospital North the John W. “Jack” and Betty Heiney Patient Care Tower.
Patent Sought on Improved Crude Refining Process
Indianapolis Company Receives Largest-Ever Grant
Purdue University has filed a patent application for a new crude distillation method that researchers believe could save refineries millions of dollars in energy costs annually. The new method rearranges the distillation sequence needed to separate crude petroleum into products. Chemical plants spend from 50 percent to 70 percent of their energy in “separations,” which are usually distillation steps required to separate a raw material into various products. In the case of petroleum, four distillation columns are needed to separate raw crude into five separate components – naphtha, kerosene, diesel fuel, gas oil and heavy residue. Some of these components are later used to make gasoline. “Improving efficiency by only a few percentage points translates into major saving,” said Rakesh Agrawal, the Winthrop E. Stone Distinguished Professor of Chemical Engineering at Purdue. “For every 100 barrels of - continued on pg 12
Horizon Acquires American Trust & Savings Horizon Bancorp, parent company of Michigan City-based Horizon Bank NA, is acquiring American Trust & Savings Bank (Whiting) and its parent company Am Tru, Inc. Founded in 1920, American has four offices in Whiting, Hammond, Crown Point and Porter. Horizon currently operates nineteen offices throughout Northern Indiana and Southwest Michigan. Following the transaction, American will continue to independently operate its insurance business as American Trust Insurance Services, as well as its American Trust Investment subsidiary. “We are extremely pleased to have the opportunity to expand our market presence in Northwest Indiana,” said Horizon Bancorp Chief Executive Officer Craig M. Dwight. “The markets served by American are a natural fit, enabling the combined companies to provide our customers with additional branch locations and services throughout the region.” www.buildingindiananews.com
oil distilled, nearly two barrels go into supplying energy for distillation. Improving efficiency by 10 percent at a refinery processing 250,000 barrels per day would save in excess of $12 million a year if oil were priced at $70 a barrel. For the U.S. petroleum industry as a whole, this is a huge potential savings.” Research findings appeared online this month in the AIChE Journal, the official peer-reviewed journal of the American Institute of Chemical Engineers, and will be included in a future issue of the magazine.
Elkhart and Goshen Banks to Merge Capitol Bancorp Limited will consolidate two Indiana affiliate banks, Elkhart Community Bank and Goshen Community Bank, into one charter, Indiana Community Bank. Goshen Community Bank President and CEO Douglas Johnston will serve as the President and CEO of the consolidated bank. “This strategic action allows us to align resources and leverage the collective strengths of the two banks,” said Johnston. “The consolidation will help the bank continue to build balance sheet strength, generate efficiencies and reinforce risk management practices.”
EPA Grant to Reduce Emissions ArcelorMittal has received an Environmental Protection Agency (EPA) Diesel Emission Reduction Act/Midwest Clean Diesel Initiative grant in the amount of $164,032 to repower three diesel engines on front-end loaders at the Indiana Harbor facility. The Northwest Indiana Forum facilitated the grant and ArcelorMittal matched the grant monies to cover the total project cost. Repowering the engines will not only reduce air emissions from the facility, but will also reduce fuel consumption and the facility’s overall carbon footprint. “ArcelorMittal is a proactive organization with a history of working to reduce emissions,” said Kay Nelson, Director of Environmental Affairs at the Forum. “Repowering the engines is not mandatory. ArcelorMittal stepped up their efforts to create a better environment.”
Ivy Tech Adds Degrees The Indiana Commission for Higher Education has granted approval for Ivy Tech Community College to offer a new Associate of Applied Science in Health Care Support, as well as Certificates in Pharmacy Technician, Patient Care, Phlebotomy Technician, Therapeutic Massage and Electrocardiography. The new programs will be offered at Ivy Tech’s 23 full-service campuses in addition to the learning sites in Wabash, Greencastle, Connersville and Batesville, although not all programs will be available at each site. The new degree and certificates, which will begin in Spring 2010, have been made available by combining a portion of the college’s allied health program offerings, particularly those related to short-term certificates required for professional certification or state licensure and supporting career ladder opportunities for students. The integrated curricular design would allow students to pursue a single certificate, multiple certificates or an associate degree.
Fort Wayne Chamber Eyes New Downtown Digs The Greater Fort Wayne Chamber of Commerce has listed its current office for sale and is seeking a new location that will increase its downtown presence and, potentially, enhance collaboration with fellow economic development groups. “This is a decision that follows our strategic plan,” said Pat Sullivan, Chairman, Chamber Board of Directors. “We utilized a committee of ten business leaders who considered all of our options and needs. We need to be an organization built for the 21st century, as well as the best stewards of our members’ investment in our mission. From our perspective, those needs led us to the decision to explore new facilities for the Chamber.” Discussing specific location options for the new headquarters, Mike Landram, President and CEO of the Chamber, stressed two things: The Chamber will remain centrally located in downtown Fort Wayne to best serve its member base and, as part of that commitment, it is exploring possibilities in co-locating with several other economic development organizations in one downtown facility. “The benefits of a co-location are numerous,” Landram said. “The improvements in efficiency, communication and collaboration are all things that would benefit our members and the Fort Wayne and Northeast Indiana business community.” www.buildingindiananews.com
Forbes magazine has rated Notre Dame as the secondmost-valuable college football program in the country, behind only the University of Texas. Using a set of standardized revenue and expense streams for each university surveyed, Forbes placed the team value of Fighting Irish football at $108 million. The University of Texas was rated first with a value of $119 million. Forbes also listed the “dividends” generated by each football program by analyzing how much money was contributed back to the university as a whole and to other athletics programs after subtracting the cost of running the football operation. The magazine also factored into the dividend equation money generated by a football program through bowl game revenue and for its surrounding community. Notre Dame’s overall dividend was placed at $38 million, and the magazine reported that St. Joseph County was the “only county in the nation in which incremental spending topped $10 million on home football weekends this season.”
Hendricks County Economic Development Wins Marketing Award Hendricks County Economic Development has been selected for the 2009 Best of Avon Award in the Economic Consultant category by the U.S. Commerce Association (USCA). The USCA “Best of Local Business” Award Program
recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community. The U.S. Commerce Association (USCA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USCA is to promote local business through public relations, marketing and advertising.
South Bend Football Scores in Forbes
Twoson Tool Expanding in Muncie Twoson Tool has announced that it will be expanding in Muncie, purchasing the TK Constructors building in the Park One Business Park, adding a 100,000-square-foot addition and adding between 150 and 250 new jobs with a projected annual payroll of $4.7 to $7.9 million. The total investment from the project is projected to be in excess of $12 million. “We are excited to be here today to make this announcement,” said Todd Murray, President of Twoson Tool. “This is continuing to build on the dream my father had in making Twoson Tool a world class, diverse manufacturing business. We are excited to grow and diversify here in Delaware County and are happy to have the opportunity to provide good jobs for the people who live here.”
Southern, Northern Groups Win Economic Development Awards One Southern Indiana copped a first-place Best in the Midwest Award from the Mid-America Economic Development Council (MAEDC) for its Business Retention and Expansion Program, while the Northeast Indiana Regional Partnership garnered six economic development marketing honors, including four first place awards and two third place awards, from the Council. “We are honored to receive this recognition from our partners at the MAEDC.” said Michael Dalby, President and CEO of One Southern Indiana. “Since our founding in 2006, One Southern Indiana has worked hard to grow and retain existing southern Indiana businesses.” Since July 2006, One Southern Indiana’s economic development efforts have helped area businesses add $256 million in new initial capital and 5,520 net new jobs worth $192 million in new payroll annually to the regional economy. The Northeast Indiana Regional Partnership earned first place finishes for its monthly Northeast Indiana LEADS e-newsletter, the 2008 Northeast Indiana Regional Partnership Annual Report, the Regional Partnership’s Web site, ChooseNEIndiana. com, and the Success Stories Marketing Campaign which was launched in December of 2008 and carried through the Spring of 2009. Earning third place awards were the monthly Partnership Update e-newsletter and the Success Has a Home brochure. Created in 2006, the Northeast Indiana Regional Partnership is made up of local economic development organizations in Adams, Allen, DeKalb, Huntington, LaGrange, Noble, Steuben, Wabash, Wells and Whitley counties. MAEDC’s annual awards were presented at the MidAmerica Competitiveness Conference in December. Organizations within MAEDC’s ten-state region (Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin) were eligible.
Greater Lafayette Commerce 2009 Efforts Pay Off In 2009, Greater Lafayette Commerce’s economic development efforts led to projects resulting in 702 new jobs and more than $172 million in capital investment, said Greater Lafayette Commerce’s President and CEO Joe Seaman. “We are not going to pretend 2009 was not a difficult year for local business and industry and affected employees, but there are many bright spots in 2009 that are worth acknowledging,” he said. In 2009, Greater Lafayette Commerce presented four major events in Downtown Lafayette – West Lafayette: Dancing in the Streets, Uptown Jazz and Blues Festival, Dickens of a Christmas and the Christmas Parade. These events attracted more than 40,000 visitors. Greater Lafayette Commerce hosted more than 60 ribbon cuttings in 2009 and began a new small business networking group: Networking ‘n Nachos. GLC’s monthly events attracted more than 1,000 attendees to Industrial Luncheon, Eggs ‘n Issues and Women in Business. The organization was also recognized by peers and site 14
selectors at the Mid America Economic Development Council’s (MAEDC) “The Best of the Midwest” Awards, receiving three awards for economic development marketing in the small market (annual marketing budget less than $100,000) category.
Business Parks Certified “Shovel-Ready” Lake County’s NorthWind Crossings Business Park is the latest site to be certified for speedier development and by earning status as “shovel ready” from the state of Indiana. NorthWind Crossings joins seven new sites located in Blackford, Daviess, Madison, Monroe, Orange, Vigo and Wayne counties announced in September. Indiana’s 56 total “shovel-ready” sites have undergone extensive title work, proof of ownership, legal and environmental review and qualify for expedited permitting with state regulatory agencies. NorthWind Crossings is a 189-acre business park along Interstate 65 near Interstate I-80/94 in Hobart. Located along the Canadian National Railroad, the park is designed to house up to 1.2 million square feet of industrial space. Hobart is located approximately 40 miles southeast of Chicago.
Indiana Electric Rates Projected to Rise Sharply Indiana electricity rates are projected to increase 12 percent over the next four years, though the recession and more efficient appliances will lower overall demand, according to analysts at Purdue University. Major factors driving up rates will be new federal airquality standards, coupled with increasing construction and fuel costs, said Douglas Gotham, director of the State Utility Forecasting Group, a state-funded panel of researchers based at Purdue. The report, entitled “Indiana Electricity Projections: The 2009 Forecast,” contains projections of the state’s energy needs between 2008 and 2027 and was prepared for the Indiana Utility Regulatory Commission (IURC). Driving up rates are more stringent environmental guidelines that will hit Indiana harder than some states because of its heavy use of coal, Gotham said. More than 90 percent of the electricity generated in the state is from coal-fired power plants. As of 2007, Indiana ranked fourth in the United States in the amount of nitrogen oxides and sulfur dioxide emitted annually. Clean-air standards from the U.S. Environmental Protection Agency require Indiana utilities to increase the amount of equipment for reducing sulfur dioxide and nitrogen oxides emissions from coal-burning power plants. “Utilities have added pollution-control equipment, which turned out to be much more expensive than previous estimates, largely because of an increase in construction costs,” Gotham said. Among the report’s findings is the prediction that by 2013 electricity rates will increase by 12 percent overall, with residential rates rising 14 percent, commercial 13 percent and industrial 11 percent. Rates are projected to rise slightly over the rest of the 20-year period, increasing a total of 15 percent by 2027, Gotham said.
Economic Development Alliance Launches TV Show The Fort Wayne-Allen County Economic Development Alliance has launched a new television show, “Expanding Your View,” to promote the benefits of working with the Alliance on expansion, retention and attraction projects. The show is being broadcast on Access Fort Wayne’s City TV, which airs on Comcast Channel 58 and Verizon Chanel 28. “Expanding Your View” will highlight Alliance projects, and incentives available to companies looking to grow in the region. “We believe that it is important to focus on connecting with those who are in need of our services, but may not be aware of our existence,” said Andi Udris, Alliance President.
HP Completes Great Lakes Acquisition HP Products Corporation (Indianapolis) has completed the acquisition of Great Lakes Supply and Chemical, located in Michigan City. Great Lakes Supply is a regional distributor of janitorial equipment, cleaning supplies and industrial packaging goods. In addition to supplies and goods, Great Lakes Supply provides value-added services such as helping
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customers increase efficiencies while reducing operating costs. HP Products provides a full line of cleaning, packaging, safety products and cutting-edge green practices. In addition to Indianapolis, the company has branches in Illinois, Ohio, Michigan, Kentucky and Missouri.
Muncie Gets Grant The Ball Brothers Foundation has awarded a grant to the High Performance Government Network to help the City of Muncie implement their strategic performance plan. “I am grateful to the Ball Brothers Foundation for their support as we work to improve the operational performance of city government by focusing on providing high quality core services to citizens,” said Mayor Sharon McShurley. “In difficult financial times, the Ball Brothers Foundation has provided us with a resource that will make a lasting impact on city government.” The strategic performance plan is the roadmap developed by city government leaders that identifies core competencies and performance improvement opportunities. The five strategic objectives outlined in the plan are: enhanced information technology; economic sustainability; strategic partnering; financial viability; and employee development. The focus of this grant will be on building an organizational culture that embraces continuous improvement by providing city employees with tools and resources to carry out the goals identified in the strategic performance plan.
EDGE Award Winners Announced Twenty Hoosier firms were honored with the Indiana Small Business Development Center Network’s Economic Development through Growth and Entrepreneurship (EDGE) Awards in Janaury. Sponsored by the Indiana Economic Development Corporation’s Small Business Development Centers, the awards recognize clients of the agency’s 10 regional centers located throughout the state in two categories: Emerging and Established. Recipients of the award collectively employ more than 350 in Indiana and in total finished 2009 with more than $10 million in sales. “These awards showcase businesses from a wide range of industries representing all regions of Indiana, not just major metropolitan areas,” said Jeff Heinzmann, IEDC’s state director of the Indiana Small Business Development Centers. “From Lowell to Scottsburg, Indiana small businesses continue to create new jobs.” In the Emerging category, the winners were: • Axis Home Health Care (Plainfield) • AeroCat LLC (Portland) • Wildcat Creek Winery (Lafayette) • USCOMBATGEAR.com LLC (Butler) • Total Green Energy Solutions (Lowell) • Wear to Win (Granger) • ReFrame LLC (Bloomington) • Stray Light Optical Technologies (Scottsburg) • Nichols Fire and Fleet (Evansville) • Hallie Hound Barkery (West Terre Haute) Established honorees were: • Taste of Indiana (Indianapolis) • Mosey Manufacturing Co. (Richmond) • AndyMark Inc. (Kokomo) • Visionary Web LLC and Visionary Computers LLC (Wabash) www.buildingindiananews.com
Airline to Consolidate in Indianapolis Republic Airways Holdings will consolidate its business operations in its Indianapolis headquarters, creating up to 300 jobs in 2010. The company plans to expand its headquarters facility on the city’s north side to support the transfer of Frontier Airlines’ Operation Control Center, and consolidated back office positions from various locations throughout the company’s network. Republic acquired Denver-based Frontier Airlines in August. It plans to begin hiring dispatchers, engineers, crew schedulers and other operations positions in the second quarter of 2010. The Indiana Economic Development Corporation offered Republic up to $3.8 million in performance-based tax credits and up to $50,000 in training grants based on the company’s job creation plans.
creation,” said IEDI President and CEO Scott Miller. Since 2008, IEDI has secured commitments from companies to create 7,581 new jobs, retain 13,146 existing jobs, and to invest more than $490 million.
• Global Land Surveying (Michigan City) • Valley Screen Process Co., Inc. (Mishawaka) • Sherlock Homes Inspection Service Inc. (Bloomington) • AUTOBEYOURS.com (Scottsburg) • Milestone Investments LLC (Evansville) • Accurate Insulation (West Terre Haute)
Survey: Hoosiers Support Property Tax Cap Amendment There is strong sentiment among Hoosiers in favor of the constitutional amendment to cap property taxes, according to a public opinion survey from Ball State University. The Hoosier Survey produced by Ball State’s Bowen Center for Public Affairs found that about 64 percent of Indiana residents favored the constitutional amendment, which has been championed by Gov. Mitch Daniels for several years. Approval of the amendment for placement on this November’s
- continued on pg 18
IEDI Secured More Job Commitments in 2009 Work by the Indianapolis Economic Development, Inc. (IEDI) resulted in commitments for 11,135 jobs and $157 million in private investment from 45 companies for the city of Indianapolis in 2009, one of the best year-end totals of the decade. Thirty of the 45 successful projects were with existing Indianapolis businesses, which have agreed to add 4,153 new jobs and retain 6,982 existing jobs. AIT Laboratories, Gilchrist & Soames, SPG Graphics, Maingate, BioStorage Technologies, Dow, Republic Airways, and Beckman Coulter were among the list of growing companies last year. These companies and others reported an average hourly wage for new and retained jobs of $21.66, which is above the state’s current hourly average wage of $18.32. “We were fortunate to work with companies from all different industries in 2009, but our focus remains on our targeted industry clusters, which accounted for more than half of our successful projects with life sciences and information technology leading the way in job www.buildingindiananews.com
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ballot was one of the first task accomplished by the Legislature when it returned to work in January. “We were surprised by the support the constitutional amendment received, but many Hoosiers are fed up with rising property taxes on their homes and businesses,” said Ray Scheele, center co-director and a political science professor at Ball State. “A cap would force local government units to be less reliant on property taxes. But there will have to be mechanisms put in place to allow local governments to raise revenue in other ways, or we’ll see major cutbacks in services.” The constitutional amendment was embraced by voters in every region of the state with the strongest support in the extreme northern and southern counties. About 14 percent of respondents were undecided on the issue. The survey also found that job creation is the top priority among Hoosiers. Seventy-three percent said the state needs to do more to bring jobs to Indiana, even though 53 percent of respondents are either very satisfied or somewhat satisfied with the state’s record on this issue. If the state needs additional revenues to fund operations, 35 percent of respondents indicated that expanding casino gaming was their preferred method. Extending sales taxes to services with exemptions for medical and legal services was favored by 22 percent, increasing the current sales tax, 13 percent; extending sales taxes to all services, 10 percent; and increasing property taxes, 2 percent.
Consulting Group Expands North Miller Consulting Group, an Indianapolis-based technology company, has opened a new office in Warsaw and hired Doug Miller as Territory Account Executive. The new office marks the beginning of Miller’s expansion plan into Northern Indiana for 2010. Miller plans to employ ten CAD and engineering
technicians at the Warsaw facility by the end of the first quarter, and 25 by year-end. “There are tremendous opportunities for enterprising companies on the horizon in 2010,” said Dale Miller, President of Miller Consulting Group. “With new industry returning to Elkhart and other Northern Indiana cities, and the steady growth in demand for our services to the medical manufacturing companies, this next phase of expansion promises to be one of the largest growth periods yet for our company.” Founded in 1999, Miller Consulting Group is an IT services firm that specializes in CAD/CAM solutions.
2010 Great Lakes Grand Prix Dates Set The La Porte County Convention and Visitors Bureau has renewed its contract with Super Boat International and will bring the Great Lakes Grand Prix offshore powerboat race back to Michigan City in 2010. Sports Development Manager Jason Miller said the second annual race will take place Aug. 5-8, 2010, at Washington Park in Michigan City. The inaugural event in 2009 brought an estimated 80,000 people to the park on Lake Michigan’s southern shore and injected more than $5 million into the local economy. The CVB plans to extend the event into an additional day in 2010 and will add several ancillary events to the now four-day event. Miller said the week will begin Thursday evening with a kickoff event at Michigan City Harbor Grill. Other events will include a silent auction for charity, a rescue and boarding demonstration by the United States Coast Guard, a Venetian Night boat parade and possibly a youth sailing regatta.
West Central Indiana Property Receives Mega Site Certification A 4,500-plus-acre property that straddles the border between Clay and Vigo County counties in west central Indiana has been certified as a CSX Transportation Large Industrial/ Light Manufacturing Mega Site by McCallum Sweeney Consulting, a site selection consulting firm based in Greenville, South Carolina. The evaluation of the property, known as Chinook, is part of an initiative by CSX Transportation, Inc. and McCallum Sweeney Consulting to identify and evaluate potential sites within the CSXT service area suitable 18
17th Annual MICCS Awards Scheduled The Metro Indianapolis Coalition for Construction Safety (MICCS) will hold its Seventeenth Annual Awards Anniversary and Celebration April 15th at the Indiana Convention Center’s Sagamore Ballroom. The Awards Celebration is the largest gathering of the construction industry in Indiana and an important resource for companies use to review and improve their safety program. Companies can compete for several different awards and categories. Those that win the “Safety Leader Award” in their category then compete against each other for the “Excellence in Safety Award,” symbolized by the Crystal Eagle Award. Last year, the Crystal Eagle was awarded to Eli Lilly and the Contractors of the Central Indiana Alliance.
To find out more about attending the event and how to submit for an award, visit miccs.org.
for large-scale manufacturing projects. Property size, access to CSX rail service, proximity to an interstate highway, labor force availability, utility infrastructure availability, environmental assessment and geotechnical considerations, are some of the criteria that were reviewed during the certification process. The Chinook property is the first property in Indiana, and one of only 15 sites within the entire CSX service area, to hold the certification. Submission of the property for certification was a team effort by the Clay County Commissioners, the Vigo County Commissioners, the Terre Haute Economic Development Corporation and other stakeholders over a 30-month period.
Company to Build ‘Holiday Village’ in Elkhart Family Holiday Village Elkhart, Inc., in concert with European partners and investors, plans to invest more than $205 million in a “family holiday village” in Elkhart County. Modeled after successful European holiday villages, it will offer more than 100 different recreational activities and services, including an enclosed tropical water park, shopping facilities, spa and restaurants. Approximately 600 family villas will surround the Village Center. The site location for the village is the American Countryside Farmers Market in Elkhart. The construction of the village is expected to create 500 jobs during the building phase; an additional 500 permanent jobs will support the operation of the holiday village. The Village is expected to generate $135 million in revenues and draw more than one million tourists every year. The Family Holiday Village concept has been successful in Europe for the past 20 years and has held a strong market share regardless of the economy. Currently, occupancy levels in Europe in similar villages remain high, at around 85 percent year-round. The family holiday villages are aimed at the needs of urban residents who wish to escape city living and spend quality time with friends and family. - continued on pg 20
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The group behind this development includes the current operators of the American Countryside Farmers Market, the International Leisure Consultancy Group (ILCG), which will be responsible for the development and operation of the villages, and Carpathia Global Capital as co-investor and financial advisor.
Bank Marks 100th Anniversary People Bank (Munster) celebrated its 100th anniversary in Northwest Indiana in Janaury. In that time, Peoples has grown from a single location in East Chicago to 11 branches in Lake and Porter counties, with a 12th branch set to open in St. John later this year. Over the past century, Peoples has expanded services from basic deposit accounts to residential lending in the Thirties, commercial lending in the Seventies and wealth management in the Eighties. Growth has been particularly strong over the last third of its existence: from $63 million in assets in 1976 to $678.3 million in 2009. Peoples went public in 1984. Peoples opened its first location outside of Lake County, in Valparaiso, last year. Since opening in the middle of the year, the branch has taken in more than $9 million in deposits, and Peoples executives are already planning to open a second location in the city in the near future.
Purdue to Create Center for High Performance Buildings Purdue University will create a $23.5 million Center for High Performance Buildings to design systems for future structures that are more environmentally and user friendly, energy efficient and safe. Half of the project’s cost is funded by the U.S. Commerce Department’s National Institute of Standards and Technology, with NIST providing $11.75 million and the other half coming largely from private donors. Construction on the Purdue project is expected to begin in February and be completed by December 2012. The center will be housed in a new 68,000-square-foot facility upgrading Purdue’s Ray W. Herrick Laboratories.
“Typical buildings may actually be more polluted than the surrounding ambient environment,” said Patricia Davies, director of the Herrick Labs and a professor of mechanical engineering. “One of the grand challenges of the center will be to develop an understanding of the relationships between indoor environments and human health and productivity, leading to better systems.”
BKD Named Best by Accounting Today Accounting Today named BKD, LLC one of the “Best Accounting Firms to Work For” in 2009, marking the second consecutive year the firm has received the honor. The 2009 list consists of 100 firms divided into three groups: 20 small companies with 15-24 employees, 65 midsized companies with 25-249 employees and 15 large companies with more than 250 employees. “Receiving this distinction two years in a row isn’t a fluke, but rather a reflection of BKD’s people-first focus,” BKD CEO Neal Spencer said. “The firm’s emphasis on worklife balance, competitive benefits and career advancement has not wavered, even in the face of a fragile economy. As evidenced by their survey responses, our employees recognize and appreciate that ongoing commitment.”
Community Health Network Partners with FedEx for On Site Health Services Community Health Network’s occupational health services, health promotion services and MedCheck are working with employers, including FedEx, to create an integrated health care medical model. Community has begun providing care for approximately 3,500 FedEx employees at Indianapolis International Airport, where the company operates its second-largest hub. Two certified/licensed athletic trainers are on-site for 54 hours a week, divided between the day and night shifts. They provide special ergonomic training and focus in particular on new employees, who are six times more likely to be injured in the first 90 days. “It benefits both the employer and the employee,” says Kevin Connelly, Senior Safety Specialist at FedEx. “If you can reduce or eliminate injuries on the front end, you’re saving costs and benefiting the employee.”
Gibson Insurance Announces Heath Care Summit Gibson Insurance Group will conduct the 4th annual Healthcare Summit in early March 2010 on the topic of Healthcare Reform. Employers and industry leaders are invited to attend an interactive panelist discussion focusing on the hottest topics and trends in employee benefits. This year, the panel will focus on the healthcare reform bill. The event will provide in-depth perspective, lively discussion, and plenty of audience interaction. Speakers include: Ron Cornwell, Milliman; Debra Oberman, United Healthcare; Shery Purkeypile, Allied Physicians of Michiana; and Mike Miley, Gibson Insurance Group. The Summit will be held in Elkhart. Registration and breakfast begin at 7:30 a.m., followed by a panel discussion with audience participation at 8 a.m. The event concludes at noon. To attend, RSVP at www.gibsonins. com/healthcaresummitreg.html. There is no cost to attend, however registration is required.
Kokomo Launches Supply Chain Linking Initiative The Walmart Foundation awarded the Greater Kokomo Economic Development Alliance (GKEDA) $82,500 for a program designed to link businesses and increase economic development. The grant will help fund the “Linking Supply Chain Management with Emerging Economies” project, which is managed in partnership with Purdue University’s Krannert School of Management’s Global Supply Chain Management Center. “The Alliance is excited about leading this partnership program that will provide us with a unique and distinguishing tool for both existing and new business recruitment,” said Jeb A. Conrad. “We could not launch this program without the commitment from the Walmart Foundation, Purdue University and the City of Kokomo.”
Monument Shop Opens Valparaiso Location Kovenz Memorial, specializing in monuments and granite engraving, opened a second location in Valparaiso in early January. The La Porte-based business has supplied archi- continued on pg 22 www.buildingindiananews.com
tects and builders with engraved granite for cornerstones, brick patios, fireplace mantles and granite signs, as well as engraving new monuments, gravestone repair and resetting broken monuments. It has also made numerous additions to veterans’ memorials in Lake, Porter, La Porte, Starke, Pulaski, and St. Joseph Counties.
Bloomington Chamber Launches Sustainability Recognition Program Green Business Bloomington, the newest initiative from the Bloomington Chamber of Commerce, is an environmental recognition program that encourages members to formulate goals and a plan of action that will help move businesses down the path to environmental sustainability. Green Business Bloomington also provides a means to recognize those businesses with exemplary environmental performance and holds those businesses as a model for others to learn from. “In addition to a recognition program for those businesses who consciously and consistently incorporate sustainable business practices into their daily operations, this program also serves as a guide to educate all businesses on actions they can take that will both improve operational efficiency and reduce the impact on our environment,” said Mike Sonneborn of Commercial Service of Bloomington, Inc., and Chair for The Chamber’s Environmental Stewardship Team.
Pinnacle Express Medical Center Opens Crown Point-Pinnacle Hospital has opened Pinnacle Express Medical Care, a center treating minor to moderate medical problems. Pinnacle Express Medical Care provides non-urgent medical care. It has extended hours and service six days a week, with both onsite laboratory and radiology services. Pinnacle Express Medical Care will offer occupational health services including drug screenings, injury assessment for workman’s compensation and employer physicals, including CDL physicals.
Bill Boosts Mechanical Insulation A bill to encourage small businesses to save money and help local tradesmen get to work doing mechanical insulation installations in non-residential buildings was recently introduced in Congress by Rep. Debbie Halvorsen (D-IL). The Mechanical Insulation Installation Incentive Act of 2009 would offer businesses a tax credit good for 30 percent of the cost of installation. The Congresswoman also sponsored a resolution, HRES 389, which encourages energy efficient and environmentfriendly building and facility certification programs to incorporate the use of mechanical insulation as part of their standards and ratings system.
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Kindred Plans Westfield Facility
Waste Company Announces Expansion Plans
Kindred Healthcare (Lexington, KY) plans to open a new 120-bed Transitional Care Center in Westfield, north of Indianapolis. The center will specialize in intensive short-term rehabilitation therapy. Pending regulatory approvals, the company will break ground this quarter and open in the first quarter of 2011. Kindred currently operates two long-term acute care hospitals, six nursing and rehabilitation centers and one hospice location in the Indianapolis market.
Stericycle Inc., a provider of medical waste disposal services, is expanding its operations in Indianapolis and plans to add up to 109 new positions this year and next. The company will invest more than $390,000 to consolidate product return operations from Florida and Georgia to its existing facility near the Indianapolis International Airport. The Return Management Services division of Stericycle currently employs about 350 associates in Indianapolis and plans to begin hiring additional warehouse and supervisory associates immediately as operations are transitioned to the city. Founded in 1989, the Lake Forest, IL-based company employs more than 6,500 associates at facilities in North and South America and Europe. The company serves more than 440,000 customers worldwide.
Small Business Cloud Computing Service Launched n|Frame, a Carmel-based technology infrastructure and data center, has introduced scalable cloud computing and virtualization services aimed at companies of all sizes, including the small business market. “With our cloud computing model, we eliminate capital investments in technology equipment by putting our clients’ networks on a secure, off-site, shared computing platform,” said COO Robert J. Alcorn. “This approach frees up our clients’ working capital for revenuegenerating activities such as research and development, sales and marketing, or expansion initiatives, rather than IT equipment that will quickly become obsolete.”
Relocation Plans Derailed? Consider Starke County, IN.
Conexus Gets Boost The Central Indiana Corporate Partnership has received a $3.45 million grant from Lilly Endowment Inc., for its manufacturing and logistics initiative, Conexus Indiana. The grant will support the efforts of Conexus to showcase career opportunities and connect potential workers with the right education and training opportunities in high-tech industry sectors. “Excellent jobs are available in manufacturing and logistics, but they are different from the assembly line positions of the past, and many require advanced skills,” said Sara B. Cobb, Lilly Endowment’s Vice President for Education. “Lilly Endowment is pleased to support Conexus Indiana as a catalyst to bring industry and education together to prepare Hoosiers better to seize these opportunities.” Since its launch in 2007, Conexus has helped create five new post-secondary programs in manufacturing and logistics, including a new advanced manufacturing curriculum being implemented across the state by Ivy Tech Community College. Conexus also has engaged 28 high schools and career centers across Central Indiana to counsel students on manufacturing and logistics careers, and it is helping create a first-of-its-kind secondary education curriculum that will enable high schoolers to work toward advanced degrees or certificates in these areas.
Funding Drive Launched for New Med School Starke County Economic Development Foundation offers a variety of rail-served sites and incentives to help your company get back on track. SCEDF, a one-stop-shop, provides a business-friendly climate and works with you to build infrastructure, buildings with leaseback, rail, and more. If you’re tired of the switchback — your next stop should be Starke County, Indiana. Tel. 800-359-5627 24
Marian University in Indianapolis is seeking to raise $75 million for a new college of osteopathic medicine. The University has already received a pledge of $30 million from an anonymous donor toward the school. Marian’s Board of Trustees approved a feasibility/implementation study that includes accreditation milestones, curriculum design, facility construction and faculty search in January. “Indiana does not currently have a college of osteopathic medicine, and those who want to become an osteopathic physician must go out of the state,” said Marian University President Daniel J. Elsener. A college of osteopathic medicine would complement and strengthen Indiana’s existing medical programs, particularly as it www.buildingindiananews.com
relates to educating more primary care physicians to meet the healthcare needs of underserved urban and rural communities. The American Osteopathic Association (AOA) is keenly interested in educating more doctors who are willing to practice in underserved rural and urban communities. “Osteopathic physicians are twice as likely as their colleagues who graduate from medical school as MDs to be primary care physicians, and twice as likely to practice in rural areas,” said IOA Executive Director Michael H. Claphan, CAE. There are currently 855 actively licensed DOs in Indiana, 62 percent of which are primary care physicians. They are concentrated in three counties: Marion (191), Lake (169) and Saint Joseph (130).
Electronics Retailer to Open in Terre Haute Electronics retailer Best Buy is renovating space in Terre Haute for a new location that would bring with it about 80 new jobs. Renovations began in mid-January and are scheduled to be done by May 1, at a cost of approximately $1.2 million. The Minneapolis-based retailer has stores in Canada, Mexico, Europe and China as well as the U.S., and annual sales of $45 billion.
IPFW Secures Funding for Tech Slots Indiana University-Purdue University Fort Wayne (IPFW) will use $3 million in grant funds from Community Partnerships Inc., to establish faculty positions related to systems engineering and wireless communications. “These funds give crucial support to a long time partner of IPFW, the defense industry, which in turn is a major contributor to northeast Indiana’s economic health,” said IPFW Chancellor Michael A. Wartell. “Our students will benefit from the expansion of both of these programs which will allow them to be better trained and ready for the job market.” Half the money will be used to hire an associate director for the Center for Systems Engineering, who will also serve as a professor of systems engineering. The other half will fund an associate director of the Center for Wireless Technology and a professor of wireless technology. This addition will allow the Center to expand its offerings and - continued on pg 26
launch a graduate certificate in wireless communication. Ultimately, this position is intended to help establish and grow a national-level wireless communication research and trade conference in Fort Wayne. The funds were made available through the Talent Initiative program funded by the Lilly Endowment and managed regionally by the Northeast Indiana Foundation.
Ethanol Plant to Restart Production Valero Renewable Fuels completed its purchase of the ASA Ethanol plant in Linden and will resume production within three to six months. The San Antonio, TX-based company spent $200 million to buy the facility, and another like it in Ohio, from ASA Ethanol Holdings. The plants each have an annual production capacity of 110 million gallons.
New e-Newsletter Launched The Center of Workforce Innovations (Valparaiso) has launched IN-demand career beat, a new e-newsletter that informs parents, educators, youth, and job seekers about careers in Northwest Indiana’s leading industries. The e-newsletter will be distributed twice a month and will include information on career paths in demand by local businesses, a question and answer section with an educator or industry expert, trends in local business
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and industry, and tips on preparing for work, college and life after school The Center of Workforce Innovations is an Indiana 501c3 dedicated to bringing private sector leaders together with policy makers from government, education, economic development, labor, and community-based organizations in Northwest Indiana.
Ironworkers Dedicate New Hall, Memorial Ironworkers Local 395 held a dedication ceremony for its new Union Hall in Portage in December. The dedication included the unveiling of a memorial statue in honor of ironworkers who lost their lives on the job. The new 16,000-square-foot, two-story location includes offices for union staff as well as the meeting hall itself. The union moved from its previous facility in Hammond, where it had been for 85 years, because Portage was a more convenient location for its 1,300-strong membership. The new hall was built by The Ross Group, a development and construction firm also headquartered in Portage.
Microbreweries Eye Sunday Sales The Indiana Legislature is considering a bill that would allow the state’s 32 microbreweries to conduct carryout sales on Sunday. Under the proposal, a customer could buy up to 864 fluid ounces of beer – about three cases’ worth – to take home. Microbrewers say the change would put them on a par with Indiana’s wineries, which are already exempted from laws barring carryout alcohol sales on Sundays. Removing the antiquated ban on alcohol sales on Election Day is also under consideration in a separate piece of legislation.
Safety Management Gets its Wish(ard) Safety Management Group will collaborate with Pillar Group Risk Management to deliver an Owner Controlled Insurance Program (OCIP) for $754 million Wishard Hospital Campus Project in Indianapolis. Safety Management’s Andy Cleeter, CSP, will lead the OCIP safety program, serving in the position of Owner OCIP Project Safety Manager. He will begin supporting the project team in early February 2010. Both companies are based in Indianapolis.
Small Business Center Expands
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The SouthEast Indiana Small Business Development Center (SouthEast ISBDC), which serves existing and startup businesses in a thirteen county region, has moved its offices, and expanded its staff and resources. Instead of operating all staff out of one location, the SouthEast ISBDC now has five main locations, with additional meeting spaces available in each county. The headquarters is located at the Purdue Technology Center in New Albany, while service centers staffed with local employees can be found in Columbus, Scottsburg, Madison and Lawrenceburg. Additional sites include Batesville, Corydon and Greensburg, with North Vernon to come soon. www.buildingindiananews.com
Packaging Company Consolidates in Kentland
(when excluding gasoline sales). This is a sharp contrast to 2008, when holiday retailing dropped by 9.4 percent as the American economy retrenched due to a deep recession. “I was cautiously optimistic about how consumers would react to deep price cuts offered by many retailers,” said Hicks, director of Ball State’s Center for Business and Economic Research (CBER). “It turned out to be a holiday retail sales bonanza for many retailers. “Auto sales growth was exactly four times better than I’d forecasted, and that’s great news. Clothing stores, furniture and general merchandise were all really much better than I’d predicted. Maybe the best news of all is that consumer electronics, which I’d predicted to really suffer, actually grew over last year,” he said.
“Since 2000, the SouthEast ISBDC has assisted over 2,700 clients in starting 285 businesses, creating 1,247 new jobs and investing over $27.4 million in their local businesses,” said Blayr Barnard, Regional Director. “The SouthEast ISBDC has hosted 580 workshops with almost 8,900 attendees. This program affects the small business community in a very positive way and is positioned to increase the efficiency and effectiveness with tools and technologies available to all of our clients at little or no cost.”
Vector USA, Inc., a manufacturer of flexible packaging products for the food industry, will establish a distribution operation in Kentland, creating up to 50 new jobs this year. The company will invest approximately $2.9 million to lease and equip space in the northwest Indiana city. Vector is consolidating facilities in New York, Ohio, Florida and Illinois at the site, and plans to be at full operation by the middle of 2010. “We chose to locate our facility in northwest Indiana for the central location to our broad customer base and the strong manufacturing workforce in the area,” said Rick Heyde, Senior Vice President and Chief Operating Officer of Vector USA. “While establishing a central location was a key element for Vector USA; the state, county and local officials were able to provide a package that convinced us to select Kentland for our facility.” The Indiana Economic Development Corporation offered Vector USA up to $370,000 in performance-based tax credits and $40,000 in training grants based on the company’s job creation plans. The town of Kentland will consider additional property tax abatements.
Holiday Sales Surprisingly Strong Ball State University economist Michael Hicks says 2009’s retail holiday season was far better than he and many other analysts predicted, as consumers took advantage of deep discounts in late November. In a report released in early November, Hicks projected holiday retail sales would fall 0.93 percent from the same time period in 2008, resulting in total sales worse than any of the past five years. In reality, retail sales grew by 2.6 percent www.buildingindiananews.com
o Western Moves Berndt to Indianpolis
Ochander Appointed at VU
Western Waterproofing Company has named Justin Berndt Branch Manager of its Indianapolis Branch. Branch had served in the company’s Minneapolis Branch for the last five years as a Project Manager and Department Manager.
Scott D. Ochander has been appointed to Valparaiso University’s senior leadership team as Vice President of Integrated Marketing and Communications. Ochander served most recently as senior vice president of market innovation at New Edge + The Brewery, an innovation strategy consulting firm based in Richland, WA., and London, England.
Galgano Joins Braman Insurance
Eileen K. Galgano has joined Braman Insurance Services as Employee Benefits Account Executive. Before coming to Braman, Galgano served as District Sales Coordinator with Aflac for three years, during which time she grew her portfolio of worksite clients by more than 400 percent.
Trans-United Names National Account Director
The Ross Group Adds Four
Two Ice Miller Attorneys Among Indiana’s Best
The Ross Group (Portage) has added four to its staff. New Senior Project Manager Steve Gierke brings 28 years of construction experience in heavy industrial, light industrial, commercial, institutional, multi-family and retail. Michael Bixeman, previously a project engineer at U.S. Steel Gary Works, joins as a Sales Engineer within the Industrial Venture Group. David Kosinski comes over from The Boeing Company as Contracts and Procurement Administrator. New Outside Sales Engineer Walter (Wally) Troelsen brings more than 20 years experience in design-build, industrial and commercial, and general construction, plus extensive expertise in cost modeling and financial proformas as part of the design-build process. Ozinga’s Miller Retires Ozinga’s Bill Miller has retired after 40 years with the company. Bill starter in 1969 as a laborer at the Portage plant and eventually rose to the post of Indiana Division Operations Manager. 28
Trans-United, Inc., a Burns Harbor-based Specialized Transportation provider has named Robert Ontolchik Director of National Accounts.
John R. Thornburgh was named “Indianapolis Best Lawyers Corporate Lawyer of the Year” and Zeff A. Weiss was chosen as the “Indianapolis Best Lawyers Real Estate Lawyer of the Year” for 2010 by Best Lawyers magazine. Both are with Indianapolisbased Ice Miller. Shebel Joins Physicans Hospital System Michigan City native Ed Shebel has joined the staff of Physicians Hospital System, a for-profit system of three northern Indiana hospitals, as Director of Business Development. Shebel brings to his new role more than 15 years of experience in marketing and business development. Fort Wayne-Allen County EDA Adds Two Ashley Steenman and Karl Bandemer have joined the Fort Wayne-Allen County Economic Development Alliance as senior development officers. Steenman was previ-
ously with the Allen County Department of Planning Services’ Economic Development Division. Bandemer has held vice president positions with Sturges Development Group and Northill Corporation. Guyott Elected Indiana AFL-CIO President The Indiana State AFL-CIO has elected Nancy Guyott its new President, and reelected Joe Breedlove its Secretary-Treasurer. Guyott makes history by becoming the first woman, and, at age 41, the youngest person in nearly fifty years, to lead the labor organization. She was unanimously elected at the AFLCIO’s state convention to replace retiring President Ken Zeller. Guyott is now one of only the six women in the nation to head a state AFL-CIO. Six Added at Somerset CPAs Somerset CPAs (Indianapolis) has added Ashley Apperson, CPA , Kurt D. Kussman, CPA and Sean M. Rizer, CPA as senior accountants, and Jennifer L. Budreau, Lauren A. Mills and Brandon M. Walters as new staff accountants. Conrad Tapped for Kokomo Economic Development Post Jeb Conrad will serve as the first President of the Greater Kokomo Economic Development Alliance. Conrad brings more than 17 years of economic development experience. He most recently served as the executive director of Indianapolis Economic Development, Inc. (IEDI). Under his leadership, IEDI completed over 400 successful projects, resulting in 23,000 new jobs, 52,000 retained jobs and $2.7 billion in private capital investment. Rice Promoted At Eli Lilly Derica Rice, Senior Vice President and CFO, Eli Lilly and Company, has been prowww.buildingindiananews.com
moted to Executive Vice President, Global Services and CFO. Fishers Chamber Names Interim President The Fishers Chamber of Commerce has appointed Jenny Banks, IOM, Vice President of Operations, as interim President of the Fishers Chamber of Commerce and Community and Economic Development Commission. Banks will fill in for Christi Wolf, who stepped down as Chamber President in November after 13 years. Milstone Recognized for Pro Bono Work James Milstone, Partner in the Mishawaka office of Kopka, Pinkus, Dolan & Eads, was named Outstanding Pro Bono Attorney for St. Joseph County by the Volunteer Lawyer Network. Skaff Boosted at Republic Republic Airways Holdings has named Drew Skaff, Director - Supply Chain at Frontier Airlines, to the position of Vice
President, Supply Chain of Republic Airways. With the appointment, Skaff will relocate to Indianapolis and direct purchasing, material control, repair and warranty, spare parts inventory management, and additional Supply Chain functions across the Republic Airways enterprise.
Chaddock Named Executive Director
Dealer Services Names New CEO
Brian R. Mylrea is the new Director of International Student Services Purdue University Fort Wayne.
Carmel-based Dealer Services Corporation has appointed Brian Geitner as its Chief Executive Officer, replacing John Fuller, who will remain as Chairman of the Board. Marty McFarland, the company’s current CFO, was promoted to President of DSC. Ackerman Takes Over at Indiana Furniture Bret Ackerman has succeeded the retiring Rich Slayton as President and CEO of Jasper-based Indiana Furniture. Ackerman has been with Indiana Furniture for 12 years as CFO and Executive Vice President.
The Downtown Westfield Neighborhood Association has hired Robin Chaddock as Executive Director. Mylrea New at Purdue Fort Wayne
Helsper to COO at Ball Memorial Richard Helsper has been named to the position of Chief Operating Officer at Ball Memorial Hospital in Muncie. Freeland to Helm Cummins’ Engine Business Cummins Inc. (Columbus) named Rich Freeland the next President of the company’s Engine Business.
STATE OF THE INDUSTRY
Vox Populi A lobbyist’s role is to act as the voice of businesses and their employees on legislative issues that will impact their industry. By Dewey Pearman, Executive Director, Construction Advancement Foundation
t’s that time of year again – the Indiana General Assembly is in session. And as the old adage goes, “no one’s life or property is safe while the Legislature is in session.” Indeed, this year the General Assembly will again consider hundreds of legislative proposals, some of which will have profound impact on the people and businesses of Indiana. Others are a bit more mundane, affecting a narrow slice of Indiana’s residents and businesses. An example of those that will likely have a significant long-term effect is the initiative to cap property taxes at one, two and three percent of the assessed valuation of homesteads, other residential and business property, respectively. This has such great impact on the state that it requires a constitutional amendment. At the other end of the spec30
trum is House Bill 1345, a bill concerning spray tanning. While the property tax cap proposal appears to be the top priority of the session, it appears the No. 2 priority is lobbying reform. House Bill 1001 and Senate Bill 114 both contain provisions for reform of lobbying activities. The intent of these bills is to “reign in the power of lobbyists.” Having been engaged in what I consider to be the honorable profession of lobbying for 30-plus years, I feel compelled to offer some comments on these proposals. Suddenly, it seems all of the problems the state, and perhaps our society face are the fault of lobbyists, and something must be done. This matter became a front-burner issue after newspapers around the state coordinated a campaign calling for lobbying reform. Also, not coincidently, it is
an election year for most members of the Legislature and getting tough on lobbyists could be a good campaign issue. There could even be an editorial endorsement at stake. It is interesting to note that the impetus for these bills is not a rash of inappropriate or illegal dealings between state officials www.buildingindiananews.com
and lobbyists, but the need to find a fall guy. At a time when Indiana, like most states, is experiencing some severe problems – high unemployment, dramatically falling tax reserves, severe budget shortfalls – someone has to be blamed, and who better than lobbyists? I was recently asked by a reporter what a lobbyist really does. This is an excellent question given that the role of the lobbyist in the legislative process is so poorly understood. Contrary to the common public perception that the lobbyist simply does the “wining and dining” thing and throws money around, the lobbyist’s job is to professionally articulate the perspective of his or her client or employer on matters that affect the client or employer which are pending before the legislature. This is a constitutionally protected right to petition the government. That adage about the security of life and property is based on some reality. The legislature has the power to dramatically change the fortunes of every resident and business
in the state. As such, it is critical that people, businesses, organizations and interest groups communicate how those laws would affect them. That, simply, is the function of the lobbyist, when a person, business, organization or interest feels the need to facilitate that communication. Very often, the lobbyist serves a role as expert on a legislative proposal. Most bills considered by the Legislature are more complex than they might first appear. It is the job of the lobbyist to present to the elected officials the comments, questions, concerns and perspective of his or her client or employer on these complex matters. After all, members of the General Assembly can not be expected to be experts on all aspects of every bill considered by the legislature. If you go to the General Assembly web-site (IN.GOV) and look at the subject list of bills, you will find hundreds of subjects (taxation, environment, transportation, finance, education, labor, public finance to name a few) covered by hundreds of
bills introduced in this year’s General Assembly. Lobbyists help bring to the table expertise on a subject that a legislator might find useful in considering the bill. Take the industry I represent as an example. There are dozens of bills in this year’s legislative session that will directly impact the construction industry. Few members of the Legislature have a background in construction. Most others might find it helpful to know how these bills will affect Indiana contractors, and the tens of thousands of people they employ. It is my job, and the job of others who represent the industry to make sure decision makers fully understand how their decisions will affect the construction industry. As the merits of the various lobbying reform proposals are being considered. my hope is that decision-makers do not lose sight of the important role lobbyists play in communicating the position of their clients and employers. Decisionmakers frequently need more information, not less.
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RULE OF LAW
If properly drafted, waivers of discrimination claims can help employers avoid costly discrimination lawsuits.
Waivers Done Right W By Steven A. Johnson of Johnson, Rappa & Ivancevich, LLC
here are we going… and why are we in this handbasket? Your business isn’t going as well as you anticipated…not by a long shot. You tried bringing more through the door, but others are bidding on what little work is out there at prices so low that you wonder whether you missed some memo that lumber, concrete, windows and block are now extras. Those who could be laid off were gone long ago. Now it’s time for deeper cuts. Core employees are crucial to your future, but cash flow is crucial to your
present. You have made the decision that you need to let one or more of your oldest people go. You want to give them a modest severance package to help them on their way; you want very much not to get sued. How do you protect the company against claims of discrimination and the lawsuits that follow? Employers are generally familiar with waivers of discrimination claims in severance agreements. But what provisions are necessary to make the waivers binding? Are there statutory requirements? Does one set of rules take care of every problem? Does there have to be a severance agreement or can the waiver
Indiana is an at-will state. While limitations are few, among them is termination in violation of the right not to be discriminated against on the baisis of age, race, gender national origin, religion or disability.
stand alone? Indiana is an at-will state – why do we need to worry about this? Yes, Indiana is an at-will state, meaning generally that the employment relationship can be terminated by either party www.buildingindiananews.com
Knowing and Voluntary
What’s necessary to make a waiver valid? First, a waiver must be “knowing and voluntary.” There are seven factors that must be satisfied in this regard: • The waiver must be written in a manner that is clearly understood by the employee. Consideration of the employee’s education and level of comprehension is necessary. It may not mislead or confuse the employee, nor fail to inform him, nor misinform him. It may not exaggerate the benefits nor minimize the detriments of the waiver. • The waiver must specifically refer to the rights arising under the ADEA. • It must advise the employee to consult an attorney before accepting the severance agreement. • It must provide the employee with at least 21 days to consider the offer. • It must give the employee at least seven days to revoke his signature. • A waiver cannot waive rights that arise after the execution date. Overly broad release language often used by lawyers when drafting a release in a civil suit will render a waiver invalid. • A waiver must be supported by consideration, usually a sum of money.
In addition to those considerations, common law will protect an employee whose waiver was obtained as a result of fraud, undue influence or coercion. Material misstatements will render a waiver invalid, as may omissions and mistakes. And after an employee has signed the severance agreement, waived his discrimination claims and taken the money, what happens when he then files a charge and/or files suit? Must he return the money? Will his case be dismissed? The law doesn’t come with a guarantee, and the law involving this topic is evolving.
How many waivers can be properly drafted for the cost of defending one discrimination suit? What is certain is that last year’s or last week’s waiver may not be valid today because courts are addressing these issues every day. So are the waivers worth the expense? That’s a decision for each business owner, but consider this: how many waivers can be properly drafted for the cost of defending one discrimination suit?
A FOUNDATION of Success
at any time for any reason whatsoever: good cause, bad cause or no cause at all. But while limitations are few, among them is that an employee may not be terminated in violation of a protected right, namely the right not to be discriminated against on the basis of age, race, gender, national origin, religion, disability. The Equal Employment Opportunity Commission (EEOC) enforces Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA) and the Equal Pay Act (EPA). Only one of these statutes has specific statutory requirements regarding the waiver of discrimination claims: The Older Workers Benefit Protection Act (OWBPA) governs waivers under the ADEA, and, because the requirements are most stringent under the OWBPA (for workers 40 and over), that’s where we set the bar.
“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
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Saving on Safety Evaluating your safety programs for “soft dollars,” best practices and overall utilization of resources can lower costs without lowering safety.
n 1979 Kenny Loggins and Michael McDonald penned a hit song called “This is it.” At that time, who would’ve thought it would be a perfect description of our economy 31 years later. This isn’t meant as a dismissal of the economic recovery, but rather as a warning against complacency. Even with the economy getting better, the road back to where we were before 2008 will be long and jittery. Remember the oil price rollercoaster that year? Having a background in commodities, I was especially happy to have a spectator’s seat. Oil prices started at $100 a barrel in January, rose to $147 a barrel by July, then fell to $35 a barrel late in the year. The dynamics for this type of market fluctuation have not disappeared. But more often than not, if the slightest economic improvement is shown in any area, we hear that recovery is around the www.buildingindiananews.com
By Craig A. Lauder, Midwest Account Manager, Total Safety US, Inc.
corner. This can lead some into risky decision-making or, even worse, cause some folks to do nothing in the belief that “it will all work itself out.” This is where Kenny and Michael’s words could not be clearer – This is it. This is the new economy we have inherited, and
Soft dollars represent savings companies can commonly reap by becoming more efficient, typically through consolidation or the application of new technology to existing practices. the manner in which your programs and procurement activities are administered have never been more important. For example, think about your safety program. Is it as efficient as it could (and needs) to be? Have you seriously consid-
ered the terms “soft dollars” and “utilization rates” as they pertain to your established program? If you have not had indepth discussions pertaining to these areas of concentration, then there are most likely huge steps towards improvement for your company and your bottom line. Soft dollars represent savings companies can commonly reap by becoming more efficient, typically through consolidation or the application of new technology to existing practices. For example, in the refining industry, safety requirements understandably call for continuous atmospheric monitoring throughout a refinery. Historically, this has been done by having employees whose job it is to stand around holding a monitor. With modern wireless technology, this monitoring process can be automated and atmospheric reports delivered to a central location on a continuous basis, freeing up manpower, lowing costs 35
and increasing safety. Equipment is another potential place to find savings. If safety contractors on your site need to rent specialized equipment for your industry, they will pass that rental cost (with a markup, of course) along to you. Moreover, they are unlikely to pick that equipment up the day of the job, so you end up being billed for rental costs before the equipment was even used. In this case, it’s worthwhile to examine whether it makes sense for your company to purchase and maintain, or arrange to rent, this equipment itself. In similar vein, reviewing the utilization of safety equipment you already have can often reveal savings. When a facility is at full production, it typically fully utilizes its inventory of safety equipment. Unfortunately, all too many companies today are not operating at full capacity, meaning that equipment is sitting around collecting dust, while still incurring maintenance costs. In this case, renting the equipment on an asneeded basis may make more sense than owning it.
Improving your medical management can also result in substantial savings, especially if it leads to a lower emergency modification rate (EMR) which will in turn lead to lower insurance premiums. Trained, on-site paramedics or emergency medical technicians can discourage reports by unscrupulous employees of non-job-related injuries as job related, reducing recordable
When you hear, “well that’s the way we have always done it here,” you’re on the right track to uncovering efficiencies. incidents and thus EMR. In addition, they can conduct wellness programs at your facility to improve employee health and well-being. Even if your company can’t afford its own on-site paramedic, such services are available through safety suppliers, including my own company. The ability to analyze an established program and the hidden costs associated with it isn’t a task that should be taken
lightly. We are fortunate enough to have a daily presence within more than 37 domestically based refining and chemical facilities to use to establish our best practices. Whether you choose to examine your safety program in-house, or employ an outside organization, the most important thing to remember is this: when you hear, “well, that’s way we have always done it here,” you’re on the right track to uncovering efficiencies. In the new economic climate, the balance between safety and fiscal performance can only be maintained by continual attention and innovation. Remember, this is it. This is the economy that Managers, Project Planners, Turnaround / Outage Managers, and Procurement professionals will be judged within. Evaluate your programs for the “soft dollars,” best practices and overall utilization of the resources you are already putting forth. Odds are that your safety-related spending is well over what it needs to be, and efficiencies may be identified and implemented without ever spending an additional dime.
THE BOTTOM LINE
Better Late Than Never The recession has boosted concerns about employee fraud and theft. But that can – and will – occur in any economy. Here’s how employee dishonesty coverage can help.
By Don Biesen and Randy Vale, Braman Insurance Services
ince the recession began in the second half of 2008, there has been an increase in interest among business owners in protecting their companies from employee dishonesty, and in particular www.buildingindiananews.com
theft and fraud. As times tighten, executive worries grow about employees who steal to supplement shrinking incomes, or retaliation by workers who are laid off or let go. The good news is that the economy traditionally plays only a small role in employee dishonesty. Workers angry and upset over losing their jobs will be just as angry and upset to lose them in good times as bad. The biggest factor in employee theft and fraud is opportunity, not need. People steal because they can. The bad news is that worried business owners are right to be concerned. How much fraud and theft and damage occurred when the economy was flush and they weren’t paying attention? According to The Association of Certified Fraud Examiners’ 2008 Report to the Nation on Occupational Fraud & Abuse, the cost of employee fraud to U.S. businesses is now about seven
percent of total annual revenues – or a staggering $994 billion every year. And that, ACFE notes, comes despite the fact that corporations continue to ratchet up procedures and safeguards to prevent fraud. One of our clients recently found this out the hard way, when a long-term officer of the company was caught em-
The biggest factor in employee theft and fraud is opportunity, not need. People steal because they can. bezzling funds. Long before the current economic downturn, this person, viewed as a trusted employee by the company, had found way to circumvent the controls in place and stolen more than $2 million over a five-year period. That experience is, sadly, about par
for the course. In 2008, Marquet International, an investigative, litigation support and due diligence firm, analyzed 174 “major” cases of embezzlement, and found that the average loss was more than $2.2 million, and that the average scheme lasted about 4.5 years. In short, there’s probably not more white collar crime going on now due to the recession than before, but rather the perception that it’s more likely now is leading to more existing scams being identified. Certainly, convictions are climbing. The Transactional Records Access Clearninghouse (TRAC) at Syracuse University reports that there were 5,561 convictions for white collar crimes through the first nine months of the year. If the rate of convictions remains steady, 2009 will be up 2.5 percent over 2008. Fortunately for our aforementioned client, they had earlier availed them-
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selves of employee dishonesty coverage, which enabled them to recover the financial loss and avoid the potential loss of valued customers and lasting damage to their image. Also called crime coverage or a fidelity bond, employee dishonesty insurance provides an employer with protection against fraudulent activities by employees. The lev-
The cost of employee fraud to U.S. businesses is about 7% of total annual revenues - a staggering $994 billion every year! el of coverage, and precisely what employees are covered, are specific to individual policies. Generally speaking, “basic” employee dishonesty insurance covers losses due to theft (of both money and business property, such as inventory), robbery and safe burglaries by salaried and/or commissioned employees. Coverage can also be expanded to include items such as credit card, money order, funds transfer or counterfeit fraud, as well as computer fraud and forgery. Which employees are covered should be specified in the policy; any employee, from top executives to part-time or seasonal workers, can be covered.
Minimum limits for employee dishonesty insurance are usually $100,000, and most policies will cover up to $500,000. In a relatively new development, coverage can now also be extended to a third party, such a client with which a business has a written contract to perform services. This covers a company in case one of its employees steals from the client. Likewise, independent contractors, who typically www.buildingindiananews.com
don’t qualify as “employees” can be added to coverage by special request. Owners and partners are typically excluded from standard employee dishonesty coverage, under the theory that you can’t steal from yourself, but some partnerships can arrange for customized policies that will cover them. Minimum limits for employee dishonesty insurance are usually $100,000, and most policies with
cover up to $500,000 without additional premium costs. Coverage for items such as forgery and funds transfer fraud come with their own, separate limits and premiums. Employee dishonesty coverage can often be purchased as part of an insurance package, but limits are often much lower than those found in stand-alone policies, and some features, such as the ability to extend coverage to a third party, may not be present.
Northwest Indiana Construction Awards The Construction Advancement Foundation and the Northwest Indiana Business Roundtable cordially invite you to the Northwest Indiana Construction Awards Banquet. Last year’s banquet attracted more than 700 key business owners, developers, civic leaders and design and construction executives from Northwest Indiana.
M a y 1 4 th 2 0 1 0
a v a l o n M a n o r
M e r r i l lv i l l e , i n
Join with us to honor the region’s best and safest industrial, commercial and public works projects - and the people behind them.
For more information visit www.buildingindiananews.com 39
nter into most any business environment today and it is immediately apparent that the way the workforce operates is very different from how it did ten – or even five – years ago. The workforce continues to become more mobile as people work outside of the office, travel for businesses and reside in different locations around the globe. But while the benefits can be significant in terms of productivity and effectiveness, the growing mobile workforce also brings with it unforeseen costs and risks that threaten short and longterm effectiveness for businesses without structured management and measurement in place to address them. Take into consideration recent findings from interviews with executives from 90 small, mid-sized and large organizations across the U.S.: • Fifty-one percent of the workforce is mobile on any given day, whether traveling, working from a virtual office or driving for business. This number has increased by 31 percent since 2006. • Total cost of workforce mobility peremployee, per-year, has increased significantly in the last four years, and currently stands at $7,426. This number increased by three percent year-over-year and is significant when compared to budget cuts companies have enforced in areas like IT Security, HR Training, Marketing and Legal Counsel in 2009. • Businesses lack insight into management of employee mobility programs. In the case of virtual office programs, 73 percent of respondents have no policies in place and 57 percent were unable to provide support cost information. Sixty-four percent of organizations reported that corporate travel costs were loosely managed. • Mobile workforce program ownership often involves multiple departments. More than 80 percent of employees fall into multiple categories of drivers, travelers and virtual office, and often need to interact with three to four different departments regarding policies and systems. • In many cases, companies are not aware of how the money they are spending on employee mobility is benefitting the organization. In the case of virtual office programs, 56 percent are unaware if the programs they have instituted are productive. 40
From cell phones to laptops to home offices to business travel, today’s mobile workforce can be an expensive proposition. Businesses need to make managing those costs a priority. By Greg Harper, President, Runzheimer International
This data reveals where gaps exist for high-value, high-cost mobile workforce programs. Without insight into the effectiveness of these programs, companies are taking chances with operational efficiency and are more susceptible to liability exposure and damaging employee satisfaction.
Taking Control of Employee Mobility While employee mobility is not a strategic corporate initiative for all organizations, those companies that have put an emphasis on the mobile workforce are seeing a tangible, positive impact. For example, USAA – a company of www.buildingindiananews.com
control over carrier and device selection, no control over billing and payment processes and limited understanding of the impact mobile device programs had on its bottom line. Through ten months of work developing a strategy for better managing its mobile device programs, JFG has reduced the number of its primary wireless providers, maximizing discounts and service levels with the primary carriers and standardizing its mobile device and laptop fleet. It also achieved a 15 percent reduction in its average monthly wireless bills through automating expense and invoicing processes.
sitioned from the Ford Taurus fleet vehicle to the Ford Fusion in 2008, which saved more than $1.5 million in operating costs, when compared to benchmarks. The proactive approach USAA has taken to managing its mobile employee programs, including vehicle and corporate aircraft, has benefited the organization through enhanced employee safety and security, and realized cost savings of close to $4 million in 2008 alone. A growing mobile workforce brings with it new challenges related to technology. This was the case for Johnson Financial Group (JFG), a full-service financial services company with 60 offices in Wisconsin and Arizona. The company, which employs over 1,311 employees, is committed to attracting, retaining and developing top talent. To that end, it offers a Flexible Work Options (FWO) program that consists of job sharing, telework, offsite work and flexible work hours. Mobile devices area a key part of the FWO program Only a year ago, JFG had multiple mobile device vendors, no guidelines for mobile device eligibility, little
22,000 employees that provides financial products and services, primarily to the armed forces and their families – relies on many diverse transportation options, including commercial air transport, private aircraft, and/or business vehicles, depending on business requirements. Employee mobility programs are critical to supporting USAA in facilitating financial security for its members. Placing the right person in the right place at the right time to support clients is critical to the company’s success. After taking a closer look at its overall employee mobility strategy, USAA developed a number of programs to ensure operational efficiencies and employee approval. The company established a vehicle management program to oversee its more than 1,000 fleet vehicles in 48 states, as well as three overseas locations. Through USAA’s commitment to safety and efficiency, the company has benefited with crash rates well below the industry average, high customer satisfaction and low costs. Its unique pool vehicle reservation system saves an estimated 233 man-hours annually. And, to address fuel costs and green initiatives, USAA tran-
Rules of Engagement The need for structured employee mobility programs will increase as the feverish pace of mobile workforce growth continues. Industry research firm IDC predicts that close to 75 percent of the workforce will be mobile by year-end 2011. Organizations that create a centralized, tightly measured mobile workforce strategy now will be positioned well to reap the rewards associated with effectively managing the workforce of the future.
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The eco-conomy is booming in Indiana, with millions for fuel efficiency and clean energy projects as well as a proposal for a job-creating ethanol pipeline across the state.
It’s Raining Green
proposal for an 1,800-mile ethanol pipeline that would create more than 7,000 jobs in Indiana headlined green investment news for the state in early 2010. Combined with roughly $90 million in funding from the Department of Energy (DOE) for research on and development of more fuel-efficient engines, and another $35 million in tax credits for Indiana clean energy companies to expand operations, these projects could create more than 13,000 green-related jobs over the next several years. “We have been working on the pipeline project since late 2007,” says Bruce Heine of Magellan Midstream Partners, a Tulsa, OK-based company which transports, stores and distributes refined petroleum products in twenty-two states. “We” in this case is Magellan and POET (Sioux City, IA), the world’s largest ethanol producer. In a joint venture, the two companies have been building a case for the pipeline for the past two years. At this point, Heine says, the need 42
is obvious. “The 2007 energy bill really stepped up the renewable fuel requirements,” he notes. Those requirements mandate that an ever-increasing amount of renewable fuels be “sold or introduced into commerce” in the U.S. The quota for 2010 is nearly 13 billion gallons – a figure which will jump to more than 20 billion gallons by 2015, and 36 billion gallons by 2022. “So with that comes the opportunity to enhance the transportation system for those fuels,” Heine says. Two issues remain to be resolved before the pipeline can be built. First, Heine says, a loan guarantee from DOE is necessary for the $4 billion project to move forward. Since the Department’s loan program was created in 2005, two years before Congress stepped up fuel requirements, a guarantee of this size was never envisioned. Congress is currently considering amendments to DOE’s program to include largescale renewable fuel pipeline projects. The second is commercial factors: basically, ethanol producers in the Midwest would have to commit to supplying enough
Hoosier companies awarded Advanced Energy Manufacturing Tax Credits were: • Think North America ($17 million) to establish a U.S. manufacturing operation in Bristol to assemble electric vehicles and produce component parts. • Brevini Wind USA ($12.8 million) will build a new facility in Yorktown to produce parts for wind turbine manufacturers. • Guardian Automotive Products ($5.2 million) will upgrade its manufacturing capacity in Auburn to produce solar bent mirrors. • Acuity Brands ($550,000) will expand its manufacturing operation in Crawfordsville to produce energy-efficient outdoor lighting products.
volume to make the pipeline economically viable. If built, it would take on ethanol from suppliers at points in Iowa, Indiana and eastern Ohio, and www.buildingindiananews.com
move it eastward for consumption in Cleveland, Pittsburgh and points east, terminating in Linden, NJ. Construction of the pipeline would create more than 7,000 jobs in Indiana alone, and about 80,000 project-wide, according to a report by consulting firm LECG (Emeryville, CA). It would contribute $6.6 billion to U.S. economic growth, add $3.7 billion in household income, and create $1.3 billion in federal, local and state tax revenues. If these factors can be addressed, Heine says the two companies estimate that it would take about two years to get through the permitting process and acquire the needed right-of-ways, and then another two years for the actual construction of the pipeline. That would put it on a timetable similar to that projected by companies who received $187 million in funding in January from DOE for fuel efficiency projects to improve the gas mileage of long-haul trucks and passenger cars. Nearly all the companies involved are located in Michigan and Indiana. Initially, these projects are expected to create around 500 jobs, primarily among the researchers, engineers, and managers who will develop the new technologies. But by 2015, the projects are projected to result in more than 6,000 jobs, many in manufacturing and assembly. Columbus-based Cummins was the biggest winner, receiving nearly $54 million for two projects aimed at creating cleaner-burning and more efficient diesel engines. It will invest its windfall in a partnership with Peterbilt Motors Company (Denton, TX) on DOE’s SuperTruck project, which seeks to develop a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling. The project’s goal is a 50 percent increase in vehicle freight efficiency. “Cummins has long enjoyed a collaborative partnership with the DOE. These R&D programs have helped us develop the best products for our customers and the environment,” says Cummins President and Chief Operating Officer Tom Linebarger. “We appreciate the funding provided by the DOE for the Cummins SuperTruck and Light-Duty programs, which will create jobs, help address climate change and reduce oil consumption. This public-private partnership is a win for our economy, a win for the environment and a win for energy challenges.” More 60 technical positions will be dedicated to the project work at Cummins, and successful production implementation would result in additional long-term positions. Fort Wayne-based Navistar also got in on the action, securing more than $37 million for its Advanced Technology Powertrains for Light-Duty Vehicles (ATP-LD) program, which involves developing a diesel engine that delivers a 40 percent fuel economy improvement over conventional gasoline engines without sacrificing performance. At the same time, word was released by Indiana Senator Evan Bayh’s office that four Hoosier companies (see list at left) would receive more than $35 million in tax credits under the The American Recovery and Reinvestment Act’s (ARRA) Advanced Energy Manufacturing Tax Credits program. “This funding will put Hoosiers to work and strengthen Indiana’s position as one of the nation’s hubs for the next generation of manufacturing jobs,” Bayh says. “As we work toward economy recovery, this investment in Indiana will help energize our new economy and keep our state at the forefront of developing clean technologies that will reduce our dependence on foreign oil and safeguard our natural environment.” www.buildingindiananews.com
SMALL BUSINESS SPOTLIGHT
Fee-Free Boost A program that wiped out fees on 504 loans was a big hit with small business borrowers in 2009, and could be extended this year.
By David Wellman
hen President Barack Obama proposed in early December to use some of the $200 billion in unused Troubled Asset Relief Program (TARP) funds to extend a popular fee waiver program for small business 504 loans, and to raise the 504 loan ceiling, he drew widespread applause from 504 lending organizations nationwide. “The fee waiver was a very big deal for a lot of our borrowers,” says Erica Passauer, Senior Vice President of the Regional Development Company (Valparaiso), one of five Certified Development Companies in Indiana which administer loans under the Small Business Association’s 504 loan program. As part of last year’s American Recovery and Reinvestment Act (ARRA, a.k.a. the stimulus package), a pool of $37 million was set aside at the SBA to cover most of the fees companies would normally pay as part of taking out a 504 loan. “So that saved about two percent of project costs,” Passauer explains. “For our loans, that could be five, ten, fifteen thousand dollars saved in fees.” The RDC’s experience was very much the norm nationwide, adds Merril Ferber, Director, Communications & Outreach for NADCO, the National Association of Development Companies. 46
Initially, the fee waiver, which became available in February of 2009, didn’t have much of an impact on a small business community frozen into inaction by the magnitude of the economic collapse. “But then, as things started to improve over the summer, we got a landslide,” she says. In fact, so many companies rushed to take advantage of the fee waiver that the funds allocated under ARRA were exhausted before the end of November. In late December, the SBA got additional funding to cover the program through the end of February The prospects of the waiver program being extended further are murky, despite Presidential support. “The Small Business Association is behind extending the fee elimination; the Small Business Committee in the Senate is behind the larger debenture,” Merril says. “Mostly it’s about getting Congress to pay for it.” Her prediction: “it will be months away, if it happens.” With calls on Congress to reduce spending on the rise, reluctance to extend the program is understandable, but there are compelling job creation and return on investment numbers to support it. According to a study commissioned by NADCO in 2007, the SBA spent an estimated $46.6 million on the 504 program from 2003 through 2005. This resulted in a net gain of 54,000
Q: What can be financed? A: Eligible Uses of Funds • Purchase of land and existing buildings • Construction of new facilities, including infrastructure costs, utilities, parking lots landscaping and professional fees • Modernization, renovation or conversion of existing facilities • Expansion of existing facilities • Purchase of machinery and equipment with a useful life of 10 years of more Ineligible uses of Funds • Working capital • Inventory • Consolidating or repaying debt • Purchase of goodwill • Refinancing current debt • Franchise fees • Vehicles or airplanes Q: How much will it cost? A: Interest rate • The interest rate will be fixed for the entire term of the loan • Interest rates are priced at a margin above the current market rate for five-year and 10-year U.S. Treasury issues • Maturities of 10 and 20 years are available • Loan is fully amortized over the chosen 10 or 20 year term • Lines of credit are not eligible Fees • Fees total approximately three (3) percent of the debenture and will be financed into the SBA loan Q: How much can I finance? A: Minimum Debenture • The minimum debenture for the SBA portion of the loan is $60,000. This equates into a total project amount of about $150,000 Maximum Debenture • $1,500,000 when meeting the Job Creation Criteria or a Community Development Goal • $2.0 million when meeting a Public Policy Goal • $4.0 million for small manufacturers. Certain guidelines must be met to qualify for this higher debenture amount Borrower Injection The borrower may provide the 10-20% injection in the following ways: • Personal or business cash • Equity in real estate (special conditions apply) • Personal or business loan Amount Financed Typically, the partner bank finances 50% of the total project amount, the SBA finances 40% and the small business injects 10% cash/equity. If the building is deemed Special Purpose, the borrower would be required to inject an additional 5% cash/equity, for a total injection of 15%. If the business is considered a New Business, the borrower would be required to inject an additional 5% cash or equity, for a total injection of 15% If the business is a new business and the building is special purpose, the borrower would be required to inject an additional 10% cash or equity, for a total injection of 20%. Source: RDC www.buildingindiananews.com
jobs and $4.6 billion in added labor income at the businesses that took out the loans, and supported the creation of an estimated 66,000 jobs and $4.5 billion in wages and salaries elsewhere in the economy. And of course, all of that leads to increased federal, state and local taxes. For every $1 in program costs, the study determined that federal revenues rose more than $37.50, while state and local revenues grew by about $57 combined, putting the program’s ROI to the government at about $94 for every dollar invested. Another related point in favor of extending the fee waiver program is that the cost of doing so amounts to “a drop in the bucket,” Ferber points out. “What we got out of the stimulus was miniscule; the SBA’s portion was minute.” And at the same time, banks are generally still leery of making more conventional loans. Passauer reports that, since last September, the RDC has seen an influx of companies who have gone to banks for loans, and been referred to the RDC and the 504 program in order to mitigate their risks. “The banks are starting to loosen up, but they are still hesitant,” she says. “It will probably take most of 2010 before they start to feel com-
fortable again.” Extending the waiver program would be one way to help bridge that gap. The other proposal supported by the President, an increase in the maximum debenture of 504 loans, is also seen as a low-cost way to boost growth. In general, under the 504 loan program, a partner bank covers 50 percent of the loan, the SBA funds 40 percent and the remaining 10 percent is the responsibility of the borrower. In most cases, the SBA portion
Nationally, for fiscal 2009 (through October 30), the average 504 loan was for $584,658. is capped at $2 million, which severely limits the total loan amount. The Obama Administration has proposed increasing the cap to $5 million. “I get calls every day from CDCs who say, we have people who would take out loans, but they need more than we can provide,” Ferber says. “So there’s growth there that could occur.” Since increasing the limit wouldn’t cost anything, Ferber is confident that an increase in the cap is coming. One other 504 loan-focused program
change – this one permanent – made by ARRA last February that has yet to have a significant impact was allowing for a portion of a 504 loan’s proceeds to include the refinance of existing debt. Previously, only money for new project expenditures could be financed by the program. To date, the change hasn’t been a big draw. “We have done a couple, but it’s somewhat limited,” Passauer says. In order to qualify for refinancing of existing debt, a business has to be doing an expansion – specifically the acquisition, construction or improvement of land, a building or equipment – and the amount of debt refinanced can’t exceed 50 percent of the projected cost of the expansion. Moreover, debt to be refinanced has to be debt that was originally accumulated due to projects that meet standard 504 criteria. “So you can’t just refinance inventory or your line of credit,” Passauer explains. These and other restrictions have strictly limited the number of companies who can take advantage of the new refinancing rules. “I called the SBA back in June and asked how many refinancings there had been, and it was a surprisingly low number,” Farber says.
2929 W. Lincoln Highway • Merrillville, IN 46410
Development The new Wishard Hospital, the nation’s third-largest health care construction project, highlights health care development in Indiana. By David Wellman
The new St. Joseph Regional Medical Center in Mishawaka at a glance: • $355 million construction project • 90-acre campus • 658,000 total square feet • 254 private inpatient rooms • 69 outpatient beds
t a time when many business sectors are, at best, treading water, the health care industry continues to push forward with plans for new and expanded facilities throughout Indiana. Though growth won’t be as robust as it’s been in recent years, capital spending for health care construction is still projected to increase in 2010. Total healthcare construction spending in Indiana is estimated at $953.2 million this year, an increase of 0.6 percent over 2009, according to IHS Global Insight (Lexington, MA). That, however, is the smallest year-over-year increase since 2005, when total healthcare construction spending in the state actually declined by 2.8 percent compared to prior year.
Rendering of the new garage, first phase of the Wishard Hospital project in Indianapolis.
The financial collapse in the second half of 2008 put a damper not only on hospital construction and expansion in Indiana, but nationwide as well. By December of 2008, nearly half of all hospitals surveyed by the American Hospital Association (AHA) had delayed or halted capital improvement projects for want of funds. As of August 2009, www.buildingindiananews.com
Projected Health Care Construction Spending in Indiana 2009-13 2009
Hospitals Medical Office
Source: IHS Global Insight. Figures in millions (2005 dollars)
only 11 percent of hospitals queried by the Association said that their ability to access capital had improved (though that was up from three percent in March). Notable exceptions to the capital crunch rule include the huge Wishard Hospital project in Indianapolis, funding for which was approved by 85 percent of Marion County voters last November – a record for capital project referenda in the county. The first construction bid package for the project – currently the third-largest healthcare facility construction project in the country, according to Reed Construction Data/RS Means – was released in December. It covers a six-level, 2,300-car parking garage, the first of five buildings to be constructed. The bid package also includes a utility tunnel running under the garage, on- and off-site utilities and rough grading for the new hospital and portions of the site. www.buildingindiananews.com
This year, the garage and demolition work are projected to generate a total of 315 jobs, and in 2011, the garage will create 524 jobs. The garage package and demolition work will provide an estimated economic impact to Marion County of nearly $28 million in 2010, and more than $46.5 million in 2011. Work on the garage is scheduled to begin this Spring. The hospital building project will create more than 4,400 jobs at the height of construction. When complete, the entire 1.2-million square foot facility will house 315 inpatients beds, 18 operating rooms, 12 labor and delivery rooms and a 90-bed treatment room emergency department. Wishard will also construct an ambulatory clinic building, an administrative office building and a central utility plant on the site. In mid-December, the Indiana Subcontractors Association held a meeting at the
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Indiana Historical Society, where Wishard project leaders delivered a presentation on the bidding process to more than 400 interested building trades leaders. Program coordinators said no project has drawn interest comparable to that of the Wishard project – not even the United Airlines Facility Maintenance Hub nearly 20 years ago, which was then the largest project in the history of central Indiana. Wishard will construct the new hospital in phases, beginning with the parking garage, and plans to complete the project at the end of 2013.
Bend, the $355 million hospital includes 254 private inpatient rooms on a landscaped 90-acre campus. The entire campus was designed to “promote safety, efficiency and healing in a soothing environment,” and was developed following the Green Guide for Healthcare, a national selfcertification program for In the Central Laboratory of Community Healthcare System, Tessa Sorba, Histology healthcare construction. Assistant, checks in specimens using the new Dako True Positive ID Tracking System. One major focus of these green guidelines Community Healthcare Debuts Cutting-Edge Tracking System is the use of recycled and other environmenThe hospitals of Community Healthcare System are among the first in the tally conscious materials country to use bar-coding technology providing more efficient results for for greater sustainabilphysicians and reducing the opportunity for identification errors of surgical ity, such as the bamboo specimens processed in the laboratory. wood on doors, walls and “Investing in groundbreaking technology, such as the new specimen trackfloors. On the construcing system, enables our hospitals to attain new levels of patient safety and Green Surge tion end, approximately security, and set a new standard in the quality care we provide,” says John Among the announced 75 percent of all the conGorski, Chief Operating Officer for Community Healthcare System, which plans for the new Wishard struction waste was recyoperates Community Hospital in Munster; St. Catherine Hospital in East Hospital is an adherence to cled by general contracChicago; and St. Mary Medical Center in Hobart. LEED building standards, tors Mortenson and Tonn including a green roof and & Blank. After a surgical procedure, tissue specimens are sent to the Central Laboraother sustainable features. Like more than half tory for processing. The new system provides a reliable and efficient way for every single tissue cassette and slide to be permanently identified by a Green design and construcof new facilities nationbar code, from check-in through log-out. This eliminates the possibility of a tion practices, as well as the wide, St. Joseph’s boasts patient’s tissue sample being mixed up with another patient’s tissue sample ground-up integration of newer, more efficient and helps the pathologist provide a more accurate diagnosis. technology, have become mechanical systems. The as commonplace in healthhospital also invested in a care facility development Low Impact Storm Water as they have elsewhere in the Management System and The most common green practices building industry. And for clinics and involved mechanical systems, like high- Erosion Control Plan that both reduced hospitals, going green has the added efficiency HVAC systems to reduce en- cost and lowered the facility’s impact benefit of creating healthier, safer facili- ergy usage, power costs and provide on the nearby Juday Creek. ties. cleaner air. Other measures ranged from According to a survey conducted in water-saving plumbing systems to the Improved Work Flow 2009 by Health Facilities Management use of interior finishes with low-volatile Other innovations included larger magazine and the American Society for organic compounds. Design and con- windows for more natural light, and a Healthcare Engineering, the percentage struction changes included optimizing floor and department layout that maxiof hospitals specifying environmentally floor layouts and recycling or reusing mizes work flow. “The new building is friendly building materials in some or construction materials. more efficient in that it significantly imall construction projects rose from 55 Many of these elements went into proves the workflow of our care givers percent in 2006 to 81 percent in 2008. the development and construction of so that we can help our patients achieve Likewise, the percentage not specify- the new Saint Joseph Regional Medi- what they truly want, which is getting ing green materials in any projects at all cal Center, which opened in December back home,” says Public Relations plummeted from 27 percent in 2006 to of last year in Mishawaka. Replacing Manager Mike Stack. just six percent in ’08. St. Joseph’s also incorporates digian older facility in neighboring South 50
tal and wireless technology which allows staff to spend less time looking up records and more time with patients. This is another feature that’s becoming common in healthcare design, now found in 56 percent of new construction, per the Health Facilities Management/ASHE survey. “The new Saint Joseph Regional Medical Center is designed for the comfort, convenience, and safety of our patients and their families, as well as providing the best possible working conditions for our physicians, nurses, and other healthcare providers,” Stack says. Reform Ramifications Less welcome news for health care development and construction in Indiana came in the form of federal health care reform. Not only did medical facilities see capital dry up, they also found themselves faced with an increase in uninsured patients, coupled
Hospitals Go Green Top three green/sustainable features being incorporated into hospital design:
• High-efficiency HVAC - 59% • High-efficiency building controls - 57% • Low-flow water fixtures - 49% Top three green construction practices:
• Use of physical and mechanical design and building materials to improve indoor air quality - 49% • Optimize layout and orientation of building to optimize energy performance - 32% • Reuse/recycle demolition materials - 31% Source: Health Facilities Management/ASHE 2009 Construction Survey
with a decrease in elective procedures by those who did have the ability to pay and lower Medicaid reimbursements. Public hospitals also found themselves squeezed between revenue-starved legislatures eyeing their tax-exempt status and competition from private,
physician-owned hospitals – a situation which led to language in federal health care reform legislation which would ban future construction and expansion of physician-owned hospitals. This is alarming for Indiana because the state is a leading location for physician-owned hospitals. Of the more than 200 such facilities nationwide, 15 are operating in Indiana and two more are in development, according to the Indiana Physician Hospital Association (IN PHA), a group formed in December of 2009 in response to the federal healthcare reform bill. Physician-owned hospitals currently serve several cities throughout the state, including Evansville, New Albany, Munster, Fort Wayne, Mishawaka and Indianapolis. In Indiana, physician hospitals employ more than 4,000 nurses and staff and 2,610 physicians; which provides the state with a payroll
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Indiana Orthopedic Hospital
By the Numbers: Indiana Physician-Owned Hospitals •15 physician-owned hospitals are in Indiana. • 750 physician-owners. • 4060 total employees at these hospitals. • 2610 credentialed physicians treat patients at these hospitals. • $180,400,000 total payroll. • $50,489,000 in taxes paid. • 2.4 percent of profits to charity care, which is on top of the taxes paid by the hospitals. This percentage is on par with the tax-exempt hospitals. • $242,000,000 trade payables. Source: Physician Hospitals of America (PHA) Economic Impact Analysis 2008-2009
of $180.4 million and $50 million in taxes, according to the 2008-2009 Economic Impact Analysis by the Physician Hospitals of America. “I feel deeply threatened by the fact there is legislation on the table that has the potential to further damage our already battered economic climate,” says Jane Keller, CEO at Indiana Orthopedic Hospital and President of IN PHA. “Not only would we be eliminating jobs, but we would also lose the ability to offer proven quality of care to patients all across the state.” Language in federal health care reform legislation places caps on growth for existing physician-owned hospitals and prohibits them from receiving reimbursements for services rendered under Medicare and Medicaid. It also bans the construction of new facilities, or expansion of existing ones, unless a set of rigorous criteria is met. The restrictions would take effect in 2013, though industry representatives on Capitol Hill were hoping to push that back to 2014 at press time. IN PHA says the legislation could kill the two Indiana physician hospitals already in development, ending the promise of another 200 jobs. “The latest version said that any existing physicianowned hospital could not grow any larger or expand beds or services,” says Paul Skowron, CEO of the Surgical Hospital of Munster and Treasurer of IN PHA. “We were surprised to be attacked so specifically.” Skowron understands why mainstream, tax-exempt hospitals object to competition from
St. Joeseph Medical Office Building
Top Ten States for Hospital Construction (based on square footage of new hospitals and clinics under construction as of October 2009)
1. Texas 2. California 3. Illinois 4. Maryland 5. Indiana 6. New York 7. Ohio 8. North Carolina 9. Florida 10. Kentucky Source: Reed Construction/RS Means
physician-owned hospitals, but doesn’t believe that banning them will accomplish their goals. “There will just be some new model developed as competition for the mainline hospitals,” he says, and predicts that the immediate beneficiaries will be physician-owned Ambulatory Surgical Centers. The number of ASCs has been rising rapidly in recent years (see page 68) and “we will see them grow just as we saw freestanding dialysis centers grow,” he says. The one piece of good news (such as it is) is that existing physican-owned hospitals in the state don’t have an immediate need to expand. “Not every one is utilizing all its capacity,” Skowron notes. “We are at about 45 to 50 percent capacity, and very few are at 80 percent or more.” But, he adds, like any business, they want to project their financial future out more than just a few years, and a ban on expansion obviously sets a hard cap on growth. www.buildingindiananews.com
Courtyard by Marriott & Springhill Suites by Marriott White Lodging Services Corp. Development Contractor List Design Team Circle Design Group, Inc. Fink Roberts & Petrie, Inc. PFVS Architects, Inc. Shiel Sexton Company Construction Manager Shiel Sexton Company Materials Testing Patriot Engineering & Environmental Concrete Sitework F.A. Wilhelm Construction Co., Inc. Sitework & Utilities MCI Network Services The Simmons Company Concrete Superstructure Midwest Form Constructors, Inc. Structural Steel Interstate Steel HVAC & Plumbing International Piping Systems, Inc. Electrical Barth Electric Co., Inc. Elevators Thyssenkrupp Elevator Drywall Circle B Construction Systems, LLC Doors Taylor Door Installation Roofing Smither Roofing Company, Inc. Glass & Glazing Hoosier Glass Co., Inc. Painting Landis Painting Co., Inc. Fire Sprinkler Systems Ryan Fireprotection, Inc. Cultured Marble Mincey Marble Manufacturing, Inc. Mobile Office & Modular Buildings Tyson Corporation
Slam Dunk The first pieces of White Lodging’s Marriott Place Indianapolis are ready to welcome March Madness to town.
hanks to the dedication of its museums. All together, Marriott Place Indiabuilding partners – a group that napolis will bring 1,626 new rooms to downRussell Louderback, White town Indianapolis, and should be a powerLodging’s Executive Vice ful marketing asset to the city. “We feel this President and Director, Design & Construc- development was a positive factor when the tion, says he “would take anywhere” – the first elements of White’s Marriott Place Indianapolis project are set to open 010 Feb. 2 on schedule and in time for March Madness. While the centerpiece of the development, the Midwest Form Constructors 104,000-square-foot JW MarStructural Concrete & Formwork riott, won’t be completed 317.784.6400 www.midwestform.com until early next year, college basketball fans who will pour into Indianapolis in April Mincey Marble Manufacturing, Inc. for the 2010 NCAA basketCast Marble 800.533.1806 ball tournament’s Final Four www.minceymarble.com games will have a pair of brand new hotels to choose from. Tyson Corporation Mobile Offices, Modular Buildings The $450 million Marri& Storage Containers ott Place development assem800.538.2597 bles five Marriott properties, www.tysoncorporation.com all connected to the Indianapolis Convention Center. Ryan Fireprotection, Inc. They will also have direct Fire Sprinkler Systems access to Circle Center Mall 800.409.7606 via an indoor connector, and www.ryanfp.com are adjacent to White River State Park, a cultural district Courtyard & Springhill Suites featuring the Indianapolis By Marriott Zoo and several world-class
Congratulations White Lodging
Fairfield Inn & Suites by Marriott White Lodging Services Corp. Development Contractor List
Engineer Circle Design Group, Inc. Architect CSO Architects, Inc. Construction Manager F.A. Wilhelm Construction Co., Inc. Concrete F.A. Wilhelm Construction Co., Inc. Sitework & Utilities MCI Network Services The Simmons Company Sheet Metal Poynter Sheet Metal HVAC & Plumbing Downtown & West, Inc. Electrical Barth Electric Co., Inc. Elevators Schindler Elevator Corp. Doors Business Interiors Ltd., Inc. Door Installation of Indiana Glass & Glazing Top Quality Glass & Mirror Co., Inc. Flooring Marburger Flooring, Inc. Drywall Performance Contracting, Inc. Finish Carpentry Taylor Bros. Construction Co., Inc. Painting Landis Painting Co., Inc. Fire Sprinkler Systems Ryan Fireprotection, Inc. Mobile Office/Modular Buildings Tyson Corporation
NFL selected Indianapolis for the 2012 Super Bowl location,” Louderback notes. One of the new hotels holds special significance for Dean White, head of Whiteco Industries and a primary investor in the project. “This site was Mr. White’s first location for a hotel, when he purchased the old Howard Johnson’s,” Louderback says. “That structure remains there today and has been renovated into a Fairfield Inn.” The renovated Fairfield Inn & Suites features nine floors, 168 rooms and a total of 105,000 square feet. Work on the makeover was overseen by F.A. Wilhelm Construction of Indianapolis. “Basically, we gutted the whole thing except for the frame,” says Operations Manager Michael Kerr. “Then we put in new mechanical systems, elevators and a completely new interior and exterior.” Despite the challenges inherent in refitting an existing structure with more modern equipment, the renovation was completed on time and under budget. “It was on a very fast track,” Kerr says. “The demolition started in November of 2008, but the renovation didn’t really begin until March of ’09, and the project was completed in December.” He credits good work by the company’s many subcontractors, as well as strong management by Wilhelm’s team, for the accomplishment. “We just had to stay on top of deliveries and
materials,” he says. “We were constantly expediting deliveries, because there was no room for error.” A lot of that coordination happened in on-site mobile offices and and modular buildings supplied by Tyson Corporation (Indianapolis). “Especially for a large project like this, getting all the personnel on site is an integral part of success,” says Sales Coordinator Peggy Gerber. When it opens this month, the new Fairfield’s guest rooms will each include a large work desk, free high-speed Internet access and LCD televisions. Suites boast separate living and entertainment areas, as well as a microwave and mini fridge. The hotel also houses a TGI Friday’s restaurant, which will reopen along with it. The second property opening on-site this month is actually two Marriott brands in one, a combination Courtyard by Marriott and SpringHill Suites by Marriott. They are housed in a single, 260,000-square-foot 14-story tower with 453 total rooms – 297 Courtyards, 156 Springhill Suites. Unlike the Fairfield Inn, this hotel is a completely new facility. “It was a pretty straightforward project,” reports Neal Burnett, President of Midwest Form Constructors (Indianapolis), which handled the foundation and structural concrete work for the www.buildingindiananews.com
building. “It was close quarters with the JW Marriott, but we completed it more than on schedule, in under 26 weeks.” In addition to providing space for visitors to the city, the Marriott Place is a tourist destination in its own right, including an art plaza which features a piece of iconic sculpture designed by Indianapolis’ 2nd Globe Studios and donated by the Dean and Barbara White to the city of Indianapolis. Dedicated in September, the multi-million dollar plaza was designed by Indianapolis landscape architects Claire Bennett Associates. The signature sculpture is a nearly 36-foot-tall stylized sculpture of a cardinal, the state bird. When viewed from above, the cardinal appears to be perched on tulip tree branch formed by the stonework in the plaza. The tulip tree is Indiana’s state tree. The plaza is also home to a 60-foot-long waterwall featuring a multitude of peonies – Indiana’s state flower – depicted in tile behind a cascade of water.
Employee Statistics By Jeremy C. York, SPHR, Flash Point
It remains important to
Top 10 Fastest Growing Occupations in the U.S. - 2008-2009
stay abreast of trends in the
1. Network systems and data communications
employment climate in order
2. Personal and home care aides
to effectively manage your workforce and business strategies. Any changes could affect the way you conduct business and even how you carry out your overall strategy. The employment climate encompasses such things as
3. Home health aides
employment, best- and notso-best practices, and more. It reflects the current state of
5. Veterinary technologists and technicians 6. Personal financial advisors
employment climate can be advantageous: it can help
8. Medical assistants 9. Veterinarians 10. Substance abuse and behavioral disorder counselors Source: Bureau of Labor Statistics
25% New healthcare legislation
Got a better paying job 12%
Took a pay cut 48%
Landed a job with similar pay 40%
13% Cost of recruiting and finding talent
won’t help you stay on top of change. But it can provide you with essential information you need to create and imple-
strategies to ensure your busi-
Average increase in base salary in 2009 is the lowest in 33 years.
ness remains successful.
Source: Hewitt Associates
ment viable action plans and
My own job security
The flexibility of my workforce
Granted, knowledge of the employment climate alone
strategy; it can help you think
you maintain your competitive
Employee Free Choice Act
The administration’s stance on workplace and employment law
strategy with your business
new ideas; and it can help
Just 28 percent of workers 55 and older who were laid off in the past year have found new jobs. Of those:
you better align your people
innovatively and implement
35% Staff retention
7. Makeup artists, theatrical and performance
employment both locally and nationally. Understanding the
Quality of workforce—attracting the highest level of talent
4. Computer software engineers, applications
ability of workers in the job es in technology that affect
Future of workforce, shortage of long-term talent
unemployment rates, availmarket, new trends or advanc-
What’s Keeping HR Professionals Up at Night?
6% Effectively managing all of the external vendors we rely on everyday Source: Ajilon Professional Staffing Critical Takeaways from SHRM 2009 Report
How Excited Are HR Professionals About Their Own Jobs and Career Opportunities? Utterly frustrated 4.4%
Not very engaged and ready 6.7%
Very engaged and ready 40.9%
Percentage of Companies that Froze Salaries… • in 2008: 2% • in 2009: 48% Source: Hewitt Associates
Highly engaged and excited 18.9%
Source: Bersin & Associates, 2009
Somewhat engaged and ready 29.0%
December 2009 National Unemployment Rate:
November 2009 Indiana Unemployment Rate:
Source: Department of Labor
$7,426 Average annual per employee cost of workforce mobility programs. Source: Runzheimer International
…of senior executives interviewed by Robert Half International said it is “common” for candidates with promising resumes not to live up to expectations during the interview.
How has the recession impacted benefit plans? • 26% of companies have increased employee contributions • 12% eliminated benefits • 12% offered employee-paid voluntary options • 10% added benefits • 9% increased employer contributions Source: Colonial Life & Accident Insurance Company
Top advice from HR professionals to the leadership of their companies Advice
Percent Important to Employees
Be more visible to employees right now - it's very important Invest more in training and development Retention, even in a downturn, is a concern - invest more in keeping top talent The actions you're taking now are responsible and necessary Our workforce should be more flexible to better withstand economic cycles Pay cuts and furloughs are a better option than additional layoffs Treat employees better as they are laid off Stop laying off staff The actions you're taking now are going to hurt us in the long run
Not Confident 11%
29% 20% 18% 14% 12%
Source: Ajilon Professional Staff Critical Takeways from SHRM 2009 Report
How Confident Are Employees That They Could Find a New Job If Laid Off?
Source: Spherion July 2009 Employee Confidence Index
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on the Upswing T
he Indianapolis metro area has emerged from the recession in better shape than the majority of the country’s largest metro areas, according to a recent report by the Brookings Institute. Issued in December, the Institute’s third-quarter Metro Monitor placed Indianapolis in the top 40 metros overall, out of the top 100 nationwide. Brookings’ rankings take into account changes in employment and unemployment, gross metro product and housing prices during the recession. Two key factors behind the city’s rebound have been the aggressive effort to attract and retain jobs by groups like Indianapolis Economic Development, Inc. (IEDI), as well as the fact that the real estate bubble underlying the downturn was never as large here as it was elsewhere. “I was a broker in California for years, and the swing didn’t happen nearly as much in the Midwest,” notes Josh Caruana, Regional Manager of the Indianapolis office www.buildingindiananews.com
Conditions are ripe for a recovery in Indianapolis. of commercial real estate investment firm Marcus & Millichap. “I’m very bullish on Indianapolis. There won’t be a boom in 2010, but the market is well-positioned for growth.” While unemployment is up in Indianapolis just as it is nationwide, IEDI nonethe-
IEDI had one of its best years ever in terms of job commitments and investment in the city. less had one of its best years ever in terms of job commitments and investment in the city. The organization helped secure more than 11,000 job commitments and $157 million in investment in 2009. Indianapolis Mayor Greg Ballard called the performance “a testament to the fact that our city, even during difficult economic times, remains a very competitive place to do business.” The work economic development officials have put in was reflected in the unex-
pected strength of the industrial real estate market toward the end of 2009. Colliers International reports that, through the third quarter of last year, the industrial market had positive net absorption of some 2.4 million square feet, and that the vacancy rate for industrial space was just 7.4 percent, substantially lower than that for retail or office space. Colliers credits numerous build-to-suit projects, many of which were approved in 2008 and completed at various points in ’09, with propping up the market. For example, in March, U.S. Cold Storage opened a 6.2 million cubic foot temperature-controlled distribution center in the Lebanon Business Park. The company cited easy access via Interstates 65 and 74 to the St. Louis, Columbus (OH), Cincinnati and Louisville markets, as well as improved access to the southern and eastern U.S., as reasons for selecting the location. In similar vein, beer and wine distributor Monarch Beverages invested $50 million to transform 100 acres of abandoned 59
Top Metro Performance Overall performance on change in employment, unemployment rate, GMP, and housing pricesduring the recession.
Source: Brookings Institute
property in Lawrence into its largest distribution center in the country, which opened in August. Other companies moving in, or on to new facilities, included Medco, SMB and Greybar Electric, Colliers said. On the other hand, the office real estate market continued to struggle last year as companies trimmed staff or closed up shop all together. In its fourth-quarter report on the Indianapolis market for office real estate, Marcus & Millichap projected that continued employment weakness would lead to a 5.9 percent reduction in office-using head count in the city. As a result, the firm forecast 18.8 percent metro-wide vacancy rate by the end of the year, 280 basis points higher than at the close of 2008. The silver lining for businesses is that the oversupply of office space has pushed rents down significantly. For full-year 2009, Marcus & Millichap pegged asking rents at $17.50 per square foot, and effective rents at $13.95 per square foot, annual decreases of 1.7 percent and 4.9 percent, respectively. “Businesses have the opportunity to get into good-quality assets at reasonable rates,” Caruana says. “There’s a good availability of space.” He expects that tenants will continue to have the upper hand through the first half of 2010 as vacancy rates continue to tick up, but thinks that the office market will stabilize in the second half of the year. Also betting on a 2010 bounceback is 60
real estate developer Fischer Group, which announced plans in January for a big push into the Indianapolis market. The Cincinnatibased company, which has built more than 70 new home neighborhoods in Ohio, Kentucky and Indiana, is expanding into the Indianapolis market, with a first-year goal of selling 150 to 200 homes – which would immediately catapult the company into the ranks of the city’s top homebuilders. “We think Indianapolis is a great market with tremendous potential,” says Fischer President Bob Hawksley. “We feel confident that Fischer can bring some much-needed growth to the Indianapolis market.” The expansion will bring approximately 150 new jobs to the city by the end of 2010. In addition to the homes, Fischer is opening a new 8,000-square-foot Lifestyle Design Center at the intersection of I-69 and I-465. The showroom will feature exterior, interior, kitchen, lighting, plumbing, flooring, tile, countertop and other options, and vignettes of finished and furnished rooms. Five model Fischer homes are currently open in Geist, Carmel, Westfield, Zionsville and Avon. Fischer’s entry comes in the wake of only modest declines in the Indianapolis residential housing market. According to the Metropolitan Indianapolis Board of Realtors (MIBOR), the median sale price of homes in Indianapolis declined just two percent for the 12 months ended November 30 versus yearwww.buildingindiananews.com
ago. Total sales volume was down eight percent, due primarily to fewer listings. Indianapolis was one of the harder-hit cities when it came to retail real estate. Of the 43 major markets surveyed by Colliers in the third quarter of 2009, 15 had retail vacancy rates above 12 percent, up from eight in the fourth quarter of 2008. As of September, the vacancy rate in retail real estate in Indianapolis was 14 percent, though that was up just 0.3 percentage points versus December of 2008. Asking rents were down about 4.7 percent as of last September. Nationally, rents were down a bit more (4.83 percent) but the 10.8 percent vacancy rate was lower. The flip side of this decline has been plummeting prices for retail land, making it much less expensive for companies looking to expand into the Indianapolis market. Colliers pegs the average
decline in prices at 25 percent, with declines of up to 75 percent in some markets. Still, with the economy weak, Colliers predicts a “buy and hold” strategy, as investors scoop up land at bargain prices, but wait for consumer spending to return before developing the property. Current retailers have been able to turn this situation -- which Colliers calls a “once in a generation tenant’s market” to their advantage as well. “Virtually every major retail chain has actively been seeking reduced rents on existing leases from their landlords and most have been successful,” Colliers reports. “For those retailers looking for space, the options have never been more plentiful and the deals have never been better.” A similar situation obtains on the real estate investment front, though Caruana says that expectations and capital barriers remain.
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Colliers Turley Martin Tucker Rebrands as Cassidy Turley Colliers Turley Martin Tucker, Cassidy & Pinkard Colliers, Colliers Pinkard, Colliers ABR, BT Commercial in Northern California, BRE Commercial in Southern California, BRE Commercial in Arizona, and Colliers Houston & Co. of New Jersey are rebranding as Cassidy Turley effective March 1. The merger includes the addition of the four companies – BT Commercial in Northern California, BRE Commercial in Southern California and Arizona, and Colliers Houston & Co., in New Jersey – to the new Cassidy Turley brand. These companies add 24 new locations and 500 new brokers. Cassidy Turley will expand and broaden service offerings to both investors and users and capitalize on market-driven businesses such as distressed assets, allowing the company to remain competitive in today’s marketplace.
Throughout ’09, “buyers have expected that everything’s going to be a fire sale, and sellers still wanted their 2007 appraisal,” he says. That’s starting to shift, albeit slowly. Another, even more important, issue is access to capital, which is also slowly improving. “We’ve seen some smaller, regional banks moving in to lend money,” he notes. That investment challenge has ramifications for Indianapolis’ economic development efforts. For example, “cities struggle to recruit larger conventions without a prominent hotel of at least 1,000 keys,” says Russ Louderback, Executive Vice President and Director, Design & Construction, for White Lodging. The Merrillville-based company is building just such a hotel, the JW Marriott, centerpiece of the company’s Marriott Place Indianapolis complex (see page 53) but the project was very nearly caught in the capital crunch. The $450 million project maintained course thanks to entrepreneur and developer Dean White. “After the lending market stopped for all hospitality projects, Mr. White decided to move forward by self-financing
the project,” Louderback explains. “His $300 million participation in the project was in addition to the incentives provided by the City of Indianapolis. Without Dean White’s personal commitment, this project would not have happened. He did this because he believes in the City of Indianapolis.” Though at the moment just a shell of its future self – with its concrete foundation and structure completed – the JW Marriot Hotel in Indianapolis is set to open in February 2011. At 1,005 room and 376 feet tall, it will be the largest JW Marriot in the world, and the third-tallest concrete frame structure in Indianapolis to boot. When completed, it should be a huge draw for business, conventions and tourism in the city. “It acts as a bookend for downtown which will connect to the Convention Center and is adjacent to Victory Field, The Eiteljorg museum, NCAA headquarters, White River State Park and the Indianapolis Zoo,” Lauderback notes. It also offers convenient access to downtown, Indiana University-Purdue University Indianapolis and the Indianapolis International Airport.
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Indiana’s position as a national logistics leader could be threatened by aging infrastructure in-state and around the region.
By David W. Holt, Vice President, Conexus Indiana
he future success of Indiana’s steel industry, the cost of the state’s electric bills, and the bottom lines of many Indiana businesses may rest on an aging locks system on the Great Lakes. The Soo Locks on the St. Mary’s River connect Lake Superior to the lower Great Lakes. Some 81 million tons of cargo pass through the locks each year, making it the busiest canal in the world in terms of tonnage. Among this volume are many of the raw materials needed to fuel industry in Indiana. However, the two operating locks – constructed in 1948 and 1968 – are in jeopardy of catastrophic failure. The primary source of iron ore feeding northern Indiana’s steel mills is shipped from Minnesota via the Great Lakes, where large vessels must pass 64
through the Soo Locks en route to Lake Michigan. The Soo Locks also enable the shipment of low-sulfur coal used by the region’s electric utilities to generate power, as well as agricultural products destined for export markets. Indiana is home to 22 percent of all U.S. raw steel production, a majority of which is located in Northwest Indiana. If the Soo Locks were to burst, it would have a significant and immediate impact that would be felt throughout the rest of the state – and the country. Congress authorized construction of a replacement lock in 1986, but when states in the region failed to come up with the required 35 percent funding, the project stalled. It was revived in 2007 when Congress agreed to fully fund the project with federal dollars, and the Army Corps of Engineers was directed to move forward with construction.
Congress appropriated $17 million to the project for fiscal year 2009, and the Army Corps awarded the first phase of contracts for the project last summer, including the construction of coffer dams and excavation. For fiscal year 2010, however, Congress awarded less than $1 million to the project. John Niemiec, project manager for the Soo Locks construction, said this level of funding won’t allow the Army Corps to move forward with awarding additional contracts, despite the project’s shovel-ready status. Future funding remains uncertain, as it is set by Congress during its annual appropriation process, which begins early in 2010. Infrastructure upgrades like the Soo Locks project are critical in ensuring that Indiana remains a leader in the transportation of goods. More than 724 million tons of freight pass through Indiana each year, www.buildingindiananews.com
workforce through innovative education programs, increase public awareness of the industry’s role in the state, identify public policy issues that will support and facilitate the movement of goods through our state, and enhance public and private infrastructure like the Soo Locks. With U.S. freight
expected to double by 2035, Indiana is in prime position to capitalize on its position in the global supply chain. However, failing infrastructure such as the Soo Locks presents a major roadblock to future growth. Conexus Indiana has taken the pulse of industry and will soon present a roadmap for how we need to move forward, including other infrastructure projects in need of immediate attention. We need to act now to solidify our position as a logistics leader and invest in infrastructure that will drive economic growth in the coming years.
making it the fifth-busiest state in terms of freight volume. Indiana ranks first in the nation for interstate highway access, ninth in rail miles and 14th in cargo moved by water. Indiana’s shipping industry is a big part of these rankings, and our position would be compromised if the Great Lakes were no longer a competitive means of shipping goods. When it comes to moving goods from manufacturers to consumers, Indiana clearly has several advantages from a geographical and infrastructure standpoint. What’s needed is a coordinated, comprehensive strategy to harness these assets and secure its position as “The Crossroads of America.” To that end, Conexus Indiana is working to finalize a statewide strategic plan to strengthen the state’s logistics industry, from a human capital, infrastructure, public awareness and public policy standpoint. The Soo Locks, as well as other locks infrastructure improvements on the Ohio River, are key components of this longrange strategy. To develop the plan, Conexus Indiana assembled the Logistics Council Executive Committee (LCEC), a group of business leaders representing all aspects of the logistics industry, including air, rail, trucking, waterborne shipping, advanced manufacturing, warehousing and distribution. The LCEC traveled the state, holding roundtable discussions with local leaders about their region’s most pressing logistics issues. These discussions identified potential challenges and opportunities for growth that will benefit all regions of the state. The plan, scheduled for release in early 2010, aims to cultivate a skilled logistics www.buildingindiananews.com
Indiana employers should ultimately begin to see lower verdicts due to a recent ruling allowing evidence of medical discounting to be presented at trial.
By Carrie Koontz Gaines of Kopka, Pinkus, Dolin & Eads
he fact that worker’s compensation covered the cost of an injured employee’s medical treatment has not, historically, prevented those employees from filing personal injury lawsuits. And when that happens, many companies have been surprised to find that, if the case reaches trial, they were not allowed to tell the jury that such compensation had been given! Fortunately for Indiana employers, this is beginning to change. The culprit has been a common evidentiary rule called the collateral source rule, which bars the admissibility of evidence at trial to show that a plaintiff’s losses have been compensated from other sources, such as the plaintiff’s insurance or workers’ compensation benefits. Over time, this rule has been extended not only to actual payments by insurance companies or employers, but also to the practice of medical care pro-
viders’ discounting of bills. It is often argued that this allows plaintiffs to leave the jury with the false impression that all the monies they award would go toward paying medical providers in full, when in fact the bills had been substantially discounted, providing a windfall to the plaintiff. Around the country, courts have taken many different approaches. Some states, such as Wisconsin, continue to deprive the defendant of any mention of discounting. States like Virginia limit the mention of discounts, depending upon whether the discounting was the result of an insurance policy actually purchased by the claimant. Other states, such as Louisiana, are allowing jury awards to be offset by the amount paid to plaintiffs by collateral sources, less the amount paid by the plaintiff to secure the benefit. Florida and Idaho have held that medical discounts are a collateral source, but that courts are compelled to set off the collateral source amount against an award of compensatory damages under their respective state statutes. Massachusetts treats benefits that the plaintiff has received from non-party sources as a windfall, giving no credit to the defendants. The rule in Massachusetts based upon the rationale that, if there is to be a windfall, such benefit should accrue to the injured party rather than the wrongdoer. California’s treatment of the colwww.buildingindiananews.com
lateral source evidentiary issue has not been so clear. The California Supreme Court stated in Helfend v. Southern California Rapid Transit District, “if an injured party receives some compensation for his injuries from a source wholly independent of the [at-fault party], such payment should not be deducted from the damages which the plaintiff would otherwise collect from the [at-fault party].” But this opinion has experienced some erosion over the years by opinions such as in Hanif v. Housing Authority of Yolo County, in which the court held that the plaintiff was only entitled to recover the amount of money actually paid by Medi-Cal (California’s Medicaid
It is argued that the collateral source rule allows plantiffs to leave the jury with a false impression that all the money awarded will go toward paying medical providers in full, when in fact the bills have been discounted.
plan) on the plaintiff’s behalf. As such, it reduced the trial court’s award, which exceeded the actual amount paid. On May 27, 2009, the Indiana Supreme Court addressed the issue in Stanley v. Walker. In this decision, the Court determined that the Defendant had the right to admit evidence of the discounted amounts of the Plaintiff’s damages without reference to insurance, or the actual collateral source. The Court reasoned that it was crucial to the jury’s determination, which www.buildingindiananews.com
is limited to reasonable medical bills actually incurred. The actual value of medical services is not exclusively based on the actual amount paid or the amount originally billed, though these amounts are evidence as to the reasonable value of medical services. The Indiana Supreme Court reasoned that it is the jury’s task to determine the reasonable amount of medical expenses in each case for which a defendant will be liable. However, determining reasonableness is no easy task. In fact, the Indiana Supreme Court ultimately stated in Stanley v. Walker that it is to aid the jury in this very elusive determination that it has decided to allow the admission of collateral source evidence in instances where the plaintiff’s medical expenses had been discounted. In Indiana, evidence regarding the amount of the payments, amounts billed by medical service providers, and other relevant evidence may now be admitted to assist the jury in its determination of the amount of reasonable medical expenses. Also, a defendant may cross-examine any witness called by the plaintiff to establish reasonableness. Furthermore, the defendant may introduce its own witnesses to testify that the billed amounts do not represent the reasonable value of services. Additionally, the defendant may introduce the discounted amounts into evidence to rebut the reasonableness of charges introduced by the plaintiff. This ruling in Indiana should be cited and urged upon Courts in other jurisdictions in an effort to unblock evidence of actual medical expenses incurred and provide juries with a more realistic picture of plaintiffs’ damages. 67
Centers of Care
The rise of low-cost, high-quality Ambulatory Surgical Centers was only possible because of physicians’ investment in their communities.
By Raman “Rum” Chopra, Chief Information Officer, The C/N Group
90 percent of ASCs have physician investment.
Technology, convenience factor into ASC success.
Reduced wait times are a popular feature.
ver the past several decades, ambulatory surgery centers (ASCs) have revolutionized the way in which Americans go “under the knife.” These centers, which allow patients to undergo surgical procedures and return home the same day, have led a radical shift in the delivery of surgical services. Where once, surgery all but guaranteed a hospital stay – and thus a big bill – today it is estimated that more than 80 percent of all surgery in the U.S. is done on an outpatient basis. This change, which has brought with it more convenient scheduling and increased personal attention in addition providing higher-quality care at a lower cost, would not have been possible without the investment of physicians, in terms of vision, expertise, and capital. Without leadership and equity participation, the proliferation of ASCs as an alternative to hospital-based surgery would not have come to fruition. In fact, physicians hold some measure of interest in roughly 90 percent of all ASCs. Simply put, the ASC model would not exist without physicians assuming the business risk. This trend has saved third-party insurers and government health programs billions of dollars through lower fees and the avoidance of costly hospitalizations. Employers save in benefits costs as well, since employees are back to work more quickly. With everyone in Washington working towards curbing the growth in our nation’s healthcare spending, ASCs have shown a rare ability to both improve quality and dramatically lower costs.
However, it should be noted that like any business venture, there is no guarantee that investing in an ASC project will be profitable. Thus, there are usually other reasons physicians develop ASCs and take an active role in their operations, even if a third-party management company has been retained. Specifically, through ownership physicians gain control over the following elements: • Staffing decisions—selecting anesthesiologists, nurses, and other staff that are more qualified and who work repeatedly with that same surgical team improves quality because there is accountability. Staff turnover is nearly always lower at an outpatient center versus a hospital, keeping overall human resources costs down and ensuring a continuity of care. • Equipment selection—ensuring that the most appropriate technology at the most appropriate price point is important for both quality and cost-effectiveness. • Scheduling and workflow—this is often times the primary reason to establish an ASC, as tremendous efficiency can be obtained through lower operating room turnover times. This reduces wait times for patients, and offers physicians the ability to prioritize patient needs directly without dealing with unanticipated delays. And yet, there are those in Washington that are now debating whether new legal restrictions should be imposed on ASC ownership by physicians—a debate similar to that of physician-owned hospitals (see page 48). These discussions do not seem motivated by any evidence of abuse or conflicts of interest resulting www.buildingindiananews.com
from such ownership. Rather, the idea of imposing new restrictions usually originates from those lobbying against ASCs due to competitive challenges. Such concerns should be dealt with directly rather than attempting to restrict competition – especially since it has produced wonderful results for the American consumer. In addition, critics of physician investment wrongly liken ASCs to other types of clinical services that are more likely to be over-utilized. However, no such abuses are commonplace with respect to ASCs, since an ordering physician cannot generate income “passively” with the help of other medical providers. By contrast, a surgeon almost always performs surgery on patients he or she directly refers. In this way, physicians utilize ASCs as extensions of their office practice, since surgeries taken to an outpatient setting are typically procedures that cannot be conducted within a physician’s office. Another reason abuses are uncommon is that many ASC services are paid through a composite rate. In other words,
additional testing ordered through the facility is not reimbursed. Medicare pays ASCs a fixed fee that covers all of the facility services provided as it relates to a covered surgical procedure. This provides no real financial incentive for a physician to order extra lab and diagnostics tests as part of the referred surgical procedure. In summary, the prevalence of physician ownership in ASCs is more important than ever before. At a time when our nation’s healthcare system is wholly criticized for massive waste, excessive cost, medical errors, and poor customer service, physician-led ASCs provide solutions to each problem. ASCs are efficient in their use of both financial and human capital, and provide increased productivity for physicians and consumers alike. ASCs experience superior clinical outcomes, fewer medical errors, and a decreased risk of infection. And ASCs succeed in reducing costs to patients, employers, insurers, and government programs. Does this sound like a part of our healthcare system in need of a fix?
ASCs helped make outpatient surgery common.
Equipment selection is one reason physicians invest in ASCs.
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“National Model” for Leadership Training Launched
The respected AGC Supervisory Training Program returns to northwest Indiana in partnership with Purdue University.
hanks to the efforts of the Northwest Indiana Business Roundtable (NWIBRT) and the Construction Advancement Foundation (CAF), the construction industry’s premiere leadership training program is returning to Northwest Indiana – along with a groundbreaking partnership allowing participants to earn up to 12 college credit hours toward a degree in Construction Management and Engineering Technologies at Purdue University Calumet. “This is the first time in my experience that an organization like NWIBRT has been motivated to come together with the building trades and identify the need for leadership training, and then work together to implement the Supervisory Training Program (STP),” says Amy Fields, Se70
nior Director of Curriculum and Program Development at The Associated General Contractors of America. The NWIBRT initiative will also be one of the few examples in which the STP will earn participants college credits. Currently, Fields says, only a “handful” of educational institutions do so. “We hope that this partnership will become a national model,” adds Daphene Cyr Koch, Ph. D., Assistant Professor at Purdue University in West Lafayette. “The shortage of trained supervisors in the construction industry is a national issue, not one limited to Northwest Indiana.” The STP is a comprehensive and rigorously updated curriculum with an extensive track record of success. “It is already conducted in 75 locations around the U.S., and more than 122,000 people have been
trained since the program’s inception,” Koch says. The STP consists of 12 units covering every facet of construction management. Each unit is updated on a regular basis, and most have been updated multiple times over the years. “The STP series are reviewed yearly by a national committee and comments are reviewed from those who have taken or given the training,” Koch explains. “Examples of updates include adding the sustainable, LEED and Building Information Modeling (BIM) into units where it applies. “It takes about a year to update a subject,” she concludes. “Then we do a pilot study to make sure that the update makes sense.” The STP isn’t new to the region. “It used to be offered 15 or 20 years ago www.buildingindiananews.com
through the CAF,” notes T. J. Ferrantella, President, Engineered Constructors, Inc. and a member of NWIBRT’s Education Committee. The discussion to bring it back was prompted by concerns that a wave of retirements in the construction industry would leave it short of trained and experienced supervisors. “We have an elite workforce in Northwest Indiana,” he says. “It’s among the highest-paid and best-educated in the country – and if it’s going to be sustainable, we have to look toward the future.” Training is especially important in the area, he adds, because so much construction activity revolves around steel mills, refineries and other heavy industrial sites that are inherently more challenging than the typical jobsite. NWIBRT’s plans to bring back the STP filtered back to Tony Gregory, Professor of Civil Engineering Technology and Department Head at Purdue University Calumet. It wasn’t a new topic to him, either. “I can remember hearing discussions about STP 20 to 25 years ago,” he recalls. “But there wasn’t a way to fit it in with our Construction Technology courses then.” Times have changed. As part of a reorganization three years ago, the Construction Technology Department at PUC was merged with the Organizational Leadership and Supervision program to create the Construction Science and Organizational Leadership Department. “There are synergies, like safety and leadership, that make that marriage work,” Gregory explains. It also had the side-effect of better aligning the Department with the STP. After meeting with NWIBRT officials, Gregory took the program back to his colleagues, and they began to match up STP units with PUC course requirements for a Bachelor’s Degree in Construction Management and Engineering Technologies. “First, we had to look at contact hours,” Gregory says. At 16 hours per unit, the individual units had significantly less face time than a three-credit hour college course, which typically clocks in with a minimum 45 contact hours. Second, as an accredited organization, PUC had to satisfy itself as to the quality of the instructors. And finally, a method of assessment to see if participants actually learned what they were supposed to learn (“In college, we typically assess via exams and quizzes,” he says) had to be worked out. To address the issue of hours, the STP units were grouped into four blocks of three modules, with each block corresponding to one of four different courses, two in a student’s freshman www.buildingindiananews.com
year, and two in their senior campaign. Each block is worth three credit hours, so completing all 12 STP units will earn participants 12 credit hours at PUC. For instructors, NWIBRT has established a set of qualifications, and the construction faculty at PUC will have an opportunity to review their bona-fides. On this, Gregory anticipates no problems, since the organization “is insisting on seasoned professionals.” Assessment metrics, it turned out, had been built into the STP over the years as units were reviewed and updated, allowing PUC to set its final concern to rest. “All our concerns were handled amicably and easily,” Gregory says. “The Roundtable folks have really done
a wonderful job.” Instruction in the first two STP units is already underway, and NWIBRT officials hope to have the “first crop” of trained supervisors produced by the end of 2010. And the partnership with PUC means their education doesn’t have to stop there. “We have to keep investing in our people,” says Ferrantella. “Imagine a union construction worker who goes through his apprenticeship and becomes a journeyman, then goes on to Ivy Tech, then through the STP, where he earns 12 credit hours toward a degree in construction management at Purdue. STP isn’t just a stand-alone piece; it’s part of lifelong learning.”
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An Indiana company has partnered with building materials giant Owens Corning to take a shingle recycling program nationwide.
fter a test in Indianapolis proved the concept, Heritage Environmental Services, LLC has teamed up with building materials titan Owens Corning in order to expand an asphalt shingle recycling program nationwide. For owners, developers, builders and contractors, the program offers potential cost and time savings, as well as LEED benefits that could give them a bidding edge in today’s competitive environment. And for the planet, it’s a first step in removing some 11 million tons of asphalt shingles that are dumped in the nation’s landfills each year from the waste stream. Under an agreement with Owens Corning, Indianapolis-based Heritage, the largest privately-held environmental services company in the United States, will provide dedicated, convenient drop-off centers that will recycle and process shingle tear-offs. Though the centers will accept shingles from any contractors, Owens Corning’s Preferred Roofing Contractors get preferred treatment, in exchange for Owens Corning’s marketing muscle to brand and build the program nationwide. “The technology exists today to recycle asphalt shingles, but the roadblock to increasing shingle recycling has been a lack of infrastructure for collecting and processing used shingles,” says Barry Hornbacher, Owens Corning Shingle Recycling Business Leader. “By creating this program, Owens Corning is the first roofing manufacturer to simplify shingle recycling by connecting contractors directly with cost-effective and convenient recycling facilities through a national strategic alliance.” Once in Heritage’s hands, old asphalt shingles are ground down and incorporated into hot-mix asphalt used for paving projects. The process itself, and the program that grew out of it, were spurred initially by a spike in asphalt prices in late 2007, says Heritage’s Director of Sustainable Solutions Rodney Pierce. “In late 2007 and early 2008, asphalt prices went 72 72
through the roof as part of a larger commodity price bubble,” he says. “So we researched how we might make a product out of shingles.” About 11 million tons of shingles are discarded in landfills each year, Pierce says. Roughly 10 million tons are the result of roof replacements; the other million consists of manufacturing scraps. The Asphalt Institute, a Lexington, KY-based trade association, estimated in 2008 that the market value of the asphalt in all those discarded shingles and scraps was more than $1 billion. With only about six percent of those waste shingles being recycled, the potential For the planet, it’s a first return to Heritage for a successstep in removing some developing ful process was sig11 million tons of as- nificant. “Basically, we are phalt shingles that are dumped in the nation’s grinding up the shinPierce explains. landfills each year from gle,” “The shingle has a lot the waste stream. of asphalt, and the rest is like aggregate. We have to make sure that there’s no debris material from re-roofing jobs, and we have to watch out for asbestoscontaining material from older roofs, but once you sort out that debris, you can grind the shingle and introduce it straight into hot-mix, or even warm-mix, asphalt.” In order to tackle the collection challenge, Heritage partnered in a pilot test with Clayton-based Ray’s Trash Service, Inc., to make disposing of old roofing materials easier and less expensive. “If a roofing contractor goes to a landfill, they usually have to drive a ways, then get in line and wait, and then they get charged a fee,” Pierce says. “It’s a lot of hassle.” By contrast, Ray’s offered six central Indiana facilities for convenient disposal. “The centers are nearer to where they work, so they just come in, dump the load, www.buildingindiananews.com www.buildingindiananews.com
Heritage shingle recycling drop-off partners in Indiana include: Reese Wholesale 1140 E. 46th Street Indianapolis
Ray’s Resource Recovery & Transfer 3830 E US Hwy 40 Clayton
334 Recycling & Transfer 6251 Indianapolis Road Whitestown
White River Recycling & Transfer 200 S Harding Street Indianapolis
Farnsworth Metal Recycling 3602 Farnsworth Street Indianapolis
and they’re gone,” Pierce says. “It saves them time, and we charge less than landfill fees.” “We are also building awareness through distributors,” he adds, “which is another model we derived out of the pilot.” However, the partnership with Owen Corning promises to take shingle recycling to a whole new level. “They can market and brand this program in a way we never could,” he says. Owens Corning Preferred Roofing Contractors will receive specialized training and marketing materials as part of the program, including a certificate for homeowners certifying that their old shingles will be recycled. “This program not only preserves valuable resources, but allows an affordable and convenient outlet for the tear-off material,” notes Hornbacher. It also provides a point of differentiation on an issue important to homeowners. “A recent market study showed that recycling tear-off shingles had an importance of eight out of 10, on a scale of zero to 10, for homeowners.” Owens Corning’s contractors will also get a discounted recycling fee at Heritage’s collection centers. Bone Dry Roofing, headquartered in Indianapolis, was the first roofing contractor company to sign up for the Owens Corning recycled shingle program. “The Owens Corning shingle recycling program is a win-win for the contrac-
tor and the homeowner,” says President Gene Judd. “As a contractor, this kind of offering helps us differentiate ourselves, while allowing homeowners, who are seeking greener options for their home, to have peace of mind about their torn off shingles.” At a time when green construction is a hot topic around the country, the program offers dual LEED benContractors can get LEED efits as well. Contraccredits for recycling and tors can get builders who use asphalt LEED credcontaining the recycled its for recymaterials can earn LEED cling, Pierce observes, credits as well. and builders who use asphalt containing the recycled materials can earn LEED credits as well. A national rollout of the program will start in 2010, but is expected to take some time, with five to 10 new markets being added each year. The lakefront corridor – Chicago, through Northwest Indiana and over to South Bend – as well as Cincinnati, OH, are among the locations scheduled to be added this Spring, along with “several more markets outside the Midwest,” Pierce says.
Indiana Online Tourism bureaus around the state are building digital bridges to better attract business and leisure travelers to the state. By David Wellman
ourism bureaus across Indiana are increasingly adopting e-mail, online and social media tools in their efforts to lure both business travelers and vacationers to the Hoosier State. While such digital marketing isn’t going to displace traditional advertising and promotional efforts any time soon, it is demonstrating its worth as part of an integrated marketing strategy. “One reason we got involved was simply to listen and to be accessible,” says Betsy Perry Patton, Communications Manager for the Fort Wayne Convention and Visitors Bureau. “We know we aren’t going to book 90 percent of our room nights through Twitter, but with 75 percent of travel arrangements now being made online, if you are not in the game, you’ll be ignored.” The Fort Wayne CVB began ramping up its online efforts in late 2008, she says, and boosting the use of its Web site, as well as social media, were key planks in the organization’s 2009 marketing campaign, “More,” which encouraged visitors to “do more, get more” in the city. YouTube, FaceBook and Twitter “have worked well,” she says. YouTube provided a place for the bureau to post a gallery of videos to give prospective visitors a taste of the city’s offerings. FaceBook was most useful on a local level in engaging people already in the region. Less so with Twitter, where a 74
“be a tourist in your own hometown” contest fell flat. Twitter was, however, a strong driver of traffic to the Fort Wayne CVB’s Web site, helping them reach their goal of doubling unique visitors to the site in 2009. “We had one group through recently with which we communicated through FaceBook and Twitter before, during and after their visit,” Perry Patton relates. Twitter was especially useful during their stay, as it allowed her to act as a sort of virtual concierge. “If they were looking for a place for dinner, I could put a link to a map to help them find a restaurant and enhance their stay,” she says. Such tactics have allowed the bureau to improve visitors’ experience at little additional monetary cost. “It’s not free, because it takes a lot of time and people power,” she cautions, “but compared to other advertising methods the cost is nominal.” Yet as digital marketing sophistication grows, the virtues of the old adage, “you have to spend money to make money,” become apparent. One such investment was made by the South Shore Convention and Visitors Authority. Since 2006, the SSCVA has spent approximately $10,000 to purchase and keep updated its own online housing system, a system which is possibly unique around the country and for which it recently won a Silver Adrian Award from the Hospitality Sales and Marketing Asso-
ciation International. “When speaking to meeting and event planners, the South Shore CVA has been told we are the only CVA/CVB that is using this form of marketing direct to event attendees in the nation,” says Erika Scheeringa, Public Relations Director for the authority. “When a group manages an event through the SSCVA, the CVA is able to secure hotel rooms for groups and families online and via phone, receive feedback from attendees through post-event surveys, send direct e-mails that include money-saving coupons and direct the visitors to Web sites, maps and more information.” The SSCVA captures contact information when the visitor uses the online housing software managed by the authority. The visitor is able to access a microsite, housing information and a live person during business hours. The SSCVA is in direct contact with visitors before and after an event. Emails are sent approximately one week before the group’s arrival date and contain information about the area, maps and coupons from area business partners appropriate to the demographics of the visiting group. After an event, the SSCVA e-mails a survey to the attendee. Completed surveys provide spending patterns, number of travelers in each party, patronized businesses and more. Additional information is given to planners about the event itself. www.buildingindiananews.com
The Silver Adrian Award was awarded to the SSCVA specifically for the 2009 email marketing campaign, which provided visitors with information through direct e-
mails and educated them on the variety of things to do in the South Shore. From the campaign, the SSCVA was able to measure the number of people visiting for events, increase visitation to area attractions, events and restaurants during their stay and survey visitors to get feedback. The e-mail campaign was used for a variety of events, including the National Softball Association World Series, Lutheran Basketball and the Model A Ford Restorers Club. Each e-mail costs approximately one cent to send, making the cost approximately $93 (9,309 emails were sent) from January through July of this year. During that time, the SSCVA’s housing software generated more than $53,000 in commissions. At least 60 percent of the revenue generated through the reservation system was given back to the event planner to offset the cost of an event. Each year since the system went live in 2007, commissions have increased more than 10 percent. E-mail marketing also plays a strong role for the Indianapolis Convention & Visitors Association, whose leisure program that sends out more than 80,000+ emails a month. The ICVA was also an early leader
in video development for destination promotion. Now in its fourth season, its “Doing Indy” video podcasts are available on visitindy.com, YouTube and via the “On Demand” service available through local cable providers. ICVA’s social media programs include a blog program with seven different authors who speak to different audiences and subject matter, such as things to do and places to go for families with kids, visiting business people, sports fans, and food fanatics. Its Facebook site now has over 20,000 fans and its Twitter page has over 900 followers. These different programs combine to give ICVA a strong online presence to promote travel and tourism to potential visitors in the medium that suits them best. Currently, ICVA’s Web site, visitindy. com, offers the staples such as contact information, direct links to partner organizations’ Web sites along with brief descriptions of what people likely to experience while visiting. It also provides maps and links to those destinations. The organization is in the process of launching a new-look Web site, which it hopes will be even more helpful.
Joining Forces Nine Indiana counties come together to form the MidWest Indiana Economic Development Initiative.
mall may be beautiful in some circumstances, but in others, bigger is definitely better. And at least in Indiana, economic development efforts fall into the latter category, a fact that recently led nine Indiana counties to pool marketing efforts under the MidWestern Indiana Economic Development Initiative. Announced by regional business and community leaders, and Lt. Gov. Becky Skillman, in late October 2009, the group consists of Benton, Carroll, Cass, Fountain, Montgomery, Pulaski, Tippecanoe, Warren and White counties. Collectively, the region includes more than 330,000 residents, 20 cities and towns with populations over 1,000 people and a wide-ranging mix of business, education, and tourism opportunities upon which to build. In part, the Initiative owes its formation to the North Central Indiana Workforce Innovation in Regional Economic Development program. Funded by federal grants and run by Purdue University via the Indiana Department of Workforce Development, NCI WIRED has been working since 2006 to encourage entrepreneurship, 76
develop a skilled workforce, and build competitive industries and supportive civic networks across a 14-county swath of the state. “The WIRED initiative brought us together,” says Connie Neininger, Secretary of the White County Economic Development Organization and Chairwoman of the
The Nine-County Region at a Glance: • Largest city: Lafayette (63,639 in 2007) • Total resident labor force: 166,674 (2008) • Average annual wage: $38,792 (2007) • Top industry by employment: Manufacturing • % of population with high school degree or higher: 90% new MidWest Indiana Initiative. “And with the Indiana Economic Development Corporation focusing on regional economic development, we realized it was time.” Without a regional group, the various counties involved risked getting left out when companies considered Indiana as a
place to locate or consolidate facilities. “When companies start looking at where they are going to go, they start out with the whole world, and then look for reasons to cut you out,” Neininger says. This process proceeds in smaller and smaller segments, and once businesses pick a state, the next step down is “region,” not county. “When companies or site consultants look for new sites, they don’t see political boundaries, they are looking at the region and the labor shed,” notes Jim Plump, Executive Director of the Jackson County Industrial Development Organization and President of a similar 10-county alliance in southern Indiana, the South Central Indiana Economic Development Group. “They don’t know the names of specific counties, but at least ‘south central Indiana’ gives them some sense of where we are. Once they determine where to look, that’s when individual counties get involved.” And in that conversation, the nine counties of the MidWest Indiana Initiative will have plenty of bright spots on their resumes to highlight. These include: • Alternative energy projects, including wind farms in White and Benton counties, www.buildingindiananews.com
The people behind the MidWest Indiana Economic Development Initiative: • Connie Neininger (Chair) White County Economic Development Organization • Jody Hamilton (Vice Chair) Greater Lafayette Commerce • Bill Henderson Montgomery County Economic Development • Steve Eberly Warren County Local Economic Development Organization, Inc. • Michelle White Benton County LEDO • Daryl Smith Carroll County Economic Development Corporation • Amanda Smith Purdue Extension Fountain County • Daniel Dolezal Pulaski County Community Development Commission • “Skip” Nolan Kuker Logansport-Cass County Economic Development Foundation
and ethanol production in Cass County. • The logistics advantages of Interstates 65 and 74, and U.S. Highways 52 and 24, which put the region within a day’s drive of three-quarters of the U.S. and Canadian populations. • A strong manufacturing base, including companies like Tate and Lyle to Subaru, Ball, Tyson, Braun and Caterpillar, among others. • An educational backbone that includes Purdue University, Wabash College and the 8,000-enrollement strong Ivy Tech Community College in Lafayette. • Tourism opportunities highlighted by Purdue football, three state parks, and the Indiana Beach amusement park on Lake Schafer. “By far our most important aspect is our people,” Neininger says. “We have an educated workforce with a long history of manufacturing expertise. But we are not tied into any one industry too heavily. Years ago, that wasn’t the case, but we have been able to diversify.” To date, the MidWest Indiana Initiative has established a presence on the Web at midwestindiana.com, and begun gathering region-specific data to supple-
ment that available on sites like STATS Indiana. “We are also working with existing companies to find out what their needs are,” Neininger says. “We are beginning with a strong focus on retention and expansion.” Going forward, plans call for the development of a unified marketing campaign, and the development of recognition programs for area businesses. The various counties have agreed to donate $1,000 apiece to get the ball rolling, with various responsibilities being assumed by participating county economic development officials on top of their “day jobs.” There’s precedent for such a decentralized approach. In fact, the SCIEDG operates in the same manner. “We don’t have a paid staff,” Plump explains. “Instead we meet on a monthly or quarterly basis, and people are assigned different responsibilities.” He acknowledges that this creates the potential for things to fall through the cracks occasionally, but works well as long as everyone involved is willing to share the load. It also means that pooled funds actually get spent on regional promotional efforts versus staff overhead.
An aging Hoosier population is set to increase demand for 55+ housing, but what builders are building today doesn’t always meet expectations.
ith retirement community development slowed over the past year due to the housing market downturn, the time is now for builders, as well as existing communities, to use the interruption to gauge how well their offerings match buyers’ demands. And this is only an interruption. Indiana, like the rest of America, isn’t getting any younger. According to the Indiana Chamber’s Workforce Wise Project, roughly 1.65 million Hoosiers will retire over the next 20 years, and the 65+ population alone will account for well over half (63 percent) of the state’s population growth in the next three and a half decades. By 2040, that group will number around 1.48 million – double its current size. It has been difficulty selling their current homes in a slumping housing market, not a lack of demand, that has would-be retirees stuck – and which creates a perfect time for fine-tuning. The good news, according to recent survey of both builders and 55+ housing buyers, is that overall, what’s wanted and what’s on offer match up pretty well. However, there also remains ample room for improvement. “These surveys were conducted as consumers were watching their savings shrink and as builders were seeing sales grind to a halt,” said National Association of Home Builders (NAHB) Chief Economist David Crowe. “So this study reflects the very latest in the changing perceptions www.buildingindiananews.com
of what is most important in housing for reluctant to pay for. this age cohort.” By far the most consistent difference The survey, “55+ Housing: Builders, between buyers and builders is in the area Buyers and Beyond,” conducted by the of services. Outdoor maintenance services MetLife Mature Market Institute and the were by far the most common amenity NAHB, found that some gaps could be provided by 55+ housing developers, with closed simply by better-educating buyers. - continued on pg 82 For instance, new and expanding retirement community construction makes strong use of universal design (UD) principles, such as lever-handle doorknobs and separate showers and baths, which are appropriate for all ages and ability QUALITY PROJECTS, EXPERTLY EXECUTED levels. Buyers, though, AT REASONABLE RATES often greet these with a shrug, unaware of the benefits they offer. Conversely, there are less standard features desired by buyers to which developers are assigning lower priorities, including non-slip COMMERCIAL • RESIDENTIAL • LIGHT INDUSTRIAL floors, larger medicine cabinets and emergency call buttons. Builders also appear to have begun adding “green” fea(219) 989-0721 (219) 934-0559 tures to retirement con2345 - 167th Avenue 2633 45th Street Hammond, IN 46323 Highland, IN 46322 struction, which buyers www.superiordesignbuild.com like in concept but are 79
The Caring Continuum With new Villa Homes and the Greenview Terrace Suites under construction, Wittenberg Village in Crown Point is expanding options for retirement living.
ver the past decade, a new type of retirement community has taken root around the country. Known as continuing care retirement communities, or CCRCs, these residential neighborhood-style developments provide a complete continuum of senior lifestyle and care options, ranging from independent living in free-standing homes or apartments to assisted living facilities and nursing care. One community which has been on the cutting edge of this trend is Wittenberg Village in Crown Point, IN. Wittenberg was actually early to the CCRC party. As part of what is now known as Lutheran Life Communities (comprised of six communities in three states), it began life in 1978 with the opening of the Lutheran Home of Northwest Indiana, a 181-bed total health care community for the aged. Construction of the first four independent living Villa Homes began shortly thereafter in 1980, and they were ready for occupancy by 1982. With the addition of the 32-suite Hearthstone Assisted Living facility in the late Nineties, the continuum of care at Wittenberg was complete -- but by no means finished.
Proulx-Buinicki. “There comes a point where they don’t want to mow the lawn or shovel the snow. When they come to a place like Wittenberg, they think, yes, this is what I want; I’ve earned this.” Fortunately, even with Hearthstone Assisted Living, Wittenberg Manor’s skilled nursing, 32 independent living villas and the Crown of Life Chapel and Fellowship Hall, dedicated in 1991, less than half of the 47-acre campus had been developed. So last year, Wittenberg embarked on a major expansion project that, when complete, will more than double its independent living capacity for those aged 55 and older via the addition of 46 new Villa Homes and the Greenview Terrace Suites, a three-story, 57-unit apartment building. “Between the new Villas and the Suites, we will have 103 homes on par with anything you would find being built by any residential developer,” says Sharon De St. Jean, Marketing Director for Wittenberg. “People don’t normally think of a retirement community as a source of economic development, but here we are putting people in the construction industry to work, all so we can attract more people to the area.”
u Services for Residents
u All the Frills
CCRCs have been growing rapidly over the last several years largely in anticipation of the looming retirement of the 77-million-strong Baby Boom generation. “The Boomers don’t want to give up what they have worked so hard for – but they want the services, too,” notes Foundation regional Director Andrea
The new duplex Villa Homes provide residents with a private, one-level, maintenancefree home. With 9’ ceilings, ample windows for natural lighting, two bedrooms, two baths, patios, attached garages, and optional fireplaces, sunrooms and more, these homes offer all the amenities of a modern home,
combined with the convenience, safety and quick access to health care of a CCRC. Every home features a full kitchen with all appliances and cabinetry; a washer and dryer; a master bedroom suite with ample closet space; and a landscaped yard. Residents also enjoy a number of perks, including 30 free lifetime healthcare days in Wittenberg Manor; the option of dinner each day in the Terrace Dining Room at the Village Square; lawn maintenance, snow removal and appliance repair; all utilities (except phone) insurance and property taxes; and a 24-hour security and emergency call system, among other amenities. Many of the same benefits will accrue to residents of the Greenview Terrace Suites. Each suite boasts a full kitchen with appliances, washer and dryer, large closets, optional heated underground parking -- and most will feature patios or balconies. The ground floor of Greenview will house numerous conveniences, including a deli, convenience store, beauty shop, wellness center, doctor’s office, restaurant-style dining (with outdoor terrace, weather permitting), a computer center, and a lounge and bar. Construction of the new Villa Homes is scheduled to be complete in the Spring of this year. The Greenview Terrace Suites should be finished in the first half of 2011. “We are already over 75 percent reserved,” says Pamela Pazera, Director of Marketing for the new development. “The need for communities like ours is really increasing.” There’s potential for more growth at Wittenberg, she adds, noting that even after the current projects are done, www.buildingindiananews.com
COMPANY SPOTLIGHT 1 3
1. Greenview Terrace
the campus will still have about 10 undeveloped acres.
u Spacious Assisted Living For older adults seeking a lifestyle that combines the desire for independence with the need for supportive services, Hearthstone Assisted Living combines exceptional accommodations, unique amenities and customized personal care. Hearthstone offers spacious private apartments that open onto a grand social area, all on a single level design. With no elevators, long hallways or stairwells, residents are safer and more connected to their neighbors. Round-the-clock caring and cross-trained staff assure that all their needs are quickly met. Studio and one-bedroom apartments are complete with kitchenettes, full-sized bathrooms, wall-towall carpeting, spacious closets, individual climate controls and an emergency response system. Unique amenities include dining services three times daily and snacks, medication reminders, assistance with and transportation to medical appointments or shopping and outings, a personal care services program, safety reassurance checks and an array of life-enriching activities. Private settings are available for entertaining, and outdoor amenities enable residents www.buildingindiananews.com
2. Villa Homes
3. 40 Acre Campus
to enjoy a stroll or a quiet moment relaxing. Residents have priority access to nursing care at Wittenberg Manor and, if needed, can receive courtesy calls from the Manor’s licensed nursing professionals.
u All Levels of Care Wittenberg Manor itself offers both short- and long-term care options, with care customized to the needs of the individual. Those requiring long-term care call it home, while for others, it’s a recuperative retreat to regain mobility or strength following surgery, illness or other trauma such as stroke. The Manor is also uniquely equipped to provide safety, security, socialization and dignity to residents with dementia and Alzheimer’s Disease in its memory support continuum. This separate care unit accommodates residents with private space to personalize their living area with familiar pictures, furniture or objects of interest or comfort. As a Lutheran Life Community (though all faiths are welcome!) Wittenberg Village believes that nurturing one’s health and spirit is the foundation for wellness of both body and soul. To that end, Wittenberg Village hosts a full-time Chaplain to minister to each resident’s spiritual needs. Assisted by a
team of dedicated volunteers, our Chaplain coordinates with clergy from all faith-groups in order to bring spiritual life enrichment programs appropriate to the special needs of those served, who often have connections with varying fellowships. The Crown of Life Chapel offers a peaceful place for Christian services, devotional services, and personal quiet time. At the heart of Wittenberg’s campus, the Chapel is also the focal point of many inspirational celebrations and events. These range from weddings, baptisms and worship to fun, community-building events. “We do a spaghetti supper in the Chapel on Fat Tuesday,” says De St. Jean. “Once a quarter, we go on a ‘cruise.’ We have activities appropriate to the ‘destination,’ set up ports of call, have a little casino in one corner, and end the evening with a Captain’s Dinner.” For more information about retirement living at Wittenberg Village, including floor plans and options for the new Villa Homes and Greenview Terrace Suites, and a complete list of comprehensive services enjoyed by residents, visit wittenbergvillage.org.
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more than seven in 10 including them in their projects. That, though, is the exception. There is a laundry list of services (including laundry service!) that anywhere from a third to half of 55+ buyers want which are being offered by fewer than 20 percent of builders. These include home repair services, housekeeping and onsite health care. It’s understandable why builders shy away from the prospect of providing community services, but also points out an opportunity for them to differentiate their developments. As regards communities’ proximity to off-site services like grocery stores, shopping centers, churches, doctor’s of-
fices and restaurants, new developments are generally overdelivering against buyers’ demands. Generally speaking, buyers are looking for more for less in a retirement home. The median square footage they want in their new home, 1,903 square feet, is slightly larger than that of their existing home (1,886 s.f.). However, they also expect to pay less – a median of $189,426 – for their new home than they did for their current one (median price of $198,119 paid). They are looking for a location in the suburbs, either closein (32 percent) or outlying (31 percent) versus a rural community (28 percent) or
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Boomers Warm to Adult Communities Most Baby Boomers, like their parents, are choosing to “age in place,” but a large and growing number – more than 1.2 million households – are choosing to move to communities designed to meet their needs, according to an analysis of Census data by the National Association of Home Builders and the MetLife Mature Market Institute. The data is significant because by 2010 the Boomers will represent one-quarter of the U.S. population – a group that will greatly impact the choices available in the housing market. While most 55+ consumers prefer to stay in their current homes as they age, an increasing number (3 percent, compared to 2.2 percent in 2001) will opt for age-restricted communities designed to attract “active adults” with a heavy emphasis on lifestyle. The analysis also confirmed that while most consumers were generally happy with their current homes, residents of age-restricted active-adult communities had the highest satisfaction rates. Of the Baby Boomers who are close to the traditional retirement age of 65, many are not yet planning to retire, and are looking for a community close to their place of employment, or one that allows them to transition into a work-from-home situation. The number of people who chose a community close to work increased from 11.4 percent in 2001 to 16.6 percent in 2007. city (nine percent). Green concerns were not especially high on 55+ buyers’ lists. Twenty-seven percent of potential buyers said they were not concerned about the impact of home building on the environment, and 23 percent who said they were concerned added that wouldn’t be a consideration when they make a purchase. More than a third, 37 percent, desired an “environmentfriendly” home, but just 12 percent indicated that they would be willing to pay more for it. www.buildingindiananews.com
The Location-Finders’ Directory of Economic Developers Economic Development Corporation Greensburg/Decatur County
Greater La Porte Economic Development Corporation
Easy access to rail as well as to an extensive highway network including Interstate 74, State Road 3, U.S. Highways 421 and 46, and easy access to the Ohio River make Greensburg and Decatur County, Indiana, the ideal location to develop businesses. Discover Decatur County, Indiana – a gem in the crowns of advanced manufacturing, renewable energy and life sciences.
La Porte County is situated at the bottom of Lake Michigan approximately 60 miles from Chicago. This strategic location provides access to all of the major Class 1 Eastern railroads; the Chicago South Shore Freight serves the Western Class 1 railroads as well. La Porte County has an abundance of fiber and natural gas pipelines that go around the lake. With plenty of available land, access to I94, I80/90, Hwy 30, and US 20 La Porte County is ideal for all transportation and logistical needs.
P.O. Box 525 • 201 N Broadway, 2nd Floor Greensburg, IN 47240 Phone: (812) 222-2520 • Fax: (812) 222-2506 Vicki Kellerman, Executive Director firstname.lastname@example.org
Harrison County Economic Development Corporation 310 N. Elm Street Corydon, IN 47112 Phone: (812) 738-2137 Fax: (812) 738-6438 Darrell Voelker email@example.com www.hcedcindiana.org
809 Washington Street, Ste. A La Porte, IN 46350 Phone: (219) 324-8584 • Fax: (219) 379-5651 Timothy J. Gropp, Executive Director • firstname.lastname@example.org Bert Cook, Project Manager • email@example.com www.gledc.com • www.laportecounty.biz
Highland Redevelopment Commission 3333 Ridge Road Highland, IN 46322 Phone: (219) 972-7598 Fax: (219) 972-5097 Cecile Petro, Redevelopment Director firstname.lastname@example.org www.highland.in.gov
In the western part of Metro Louisville, Harrison County, IN offers a rural setting with small town charm and all the amenities of one of the nation’s largest cities. Only 30 minutes from the city center and the International Airport and UPS World Port Air Hub, this highly accessible business community is The Ideal Location!
The Highland Redevelopment Commission builds relationships with new and expanding businesses and developers by providing individualized assistance and valuable incentive programs.
Knox County Development Corporation
Michigan City EDC
1101 North 3rd Street / P.O. Box 701 Vincennes, Indiana 47591 Phone: (812) 886-6993 Fax: (812) 886-0888 Gary L. Gentry, President email@example.com www.kcdc.com
2 Cadence Park Plaza Michigan City, IN 46360 Phone: (219) 873-1595 John Regetz, Executive Director firstname.lastname@example.org www.mc-edc.com
Located in southwest Indiana, Knox County is near the center of Mid-America and most of America’s central markets and industries. It offers an excellent transportation system, 270,000 potential employees, excellent quality of life, and generous tax incentives including industry specific technical training assistance through Vincennes University. Shovel ready sites and buildings up to 253,780sf await in business friendly Knox County.
The Michigan City Economic Development Corporation is committed to growing and attracting industry and business to the Community. Our services, programs and oneon-one assistance demonstrate our commitment to providing the optimum business environment for commerce and industry. Our incentive packages make Michigan City the place to build or expand.
NIPSCO Economic Development
Starke County Economic Development Foundation
801 E. 86th Avenue Merrillville, IN 46410 Phone: (800) 262-6477 Fax: (219) 647-6380 Diane Thalmann Manager Economic Development email@example.com
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BULK TRANSPORT CORP. BUILDING II 4333 Ohio Street Michigan City, Indiana 46360
MICHIGAN CITY, IN FOR SALE
Phone: 219-879-7985 Website: Loopnet Listing ID: 16361913 Broker Name: Commercial Investment Transactions, Inc. Email: email@example.com Total Square Feet: 92,800 Square Feet Available: 92.800 Property Type: Manufacturing Zoned M-2 of which 25,200 Sq Ft Office on 2 floors Description: Sturcture Sited up to 13.5 acres - 22 ft clear height - 2,000 AMP 480,277 3 PHASE. Located next to 421, 20 I-94, I-65 (30 minutes), Chicago (60 minutes) Michigan State line (15 minutes).
EASTPORT TOWER 3001 Leonard Drive Valparaiso, IN 46383
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Phone: 219-879-7985 Website: Loopnet Listing ID: 16369356 Broker Name: Commercial Investment Transactions, Inc. Email: firstname.lastname@example.org Total Square Feet: 27,000 Square Feet Available: 15,000 Property Type: Multi Tenant - Office Building Description: Three story, sited on 6.23 acres, within EASTPORT CENTRE Valparaiso 2009 Community of the Year. Located next to Porter County Airport, Hwy 30, 49 & 2, Port of Indiana (30 minutes) Chicago via I-94 Toll Road (60 minutes).
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LastWord opinion page
Unions Prepare for Future Success
Construction may be down, but union contractors are putting their time to good use with training and education programs that will pay off when the economy bounces back.
By Michelle Boyd, Executive Director, Top Notch
ndianapolis houses some of the most prominent landmarks, museums and schools in the state. Often admired for its structural development, Indianapolis and its surrounding counties have provided many opportunities for members of the Indiana Union Construction Industry. For decades, union construction has thrived in the Circle City. But, with the still-downtrodden economy and credit crisis that continues to affect construction on both the state and national level, even Indianapolis is struggling to recover in the current construction crunch. For members of the Indiana Union Construction Industry, the road to economic salvation may be a long one, but an investment in valuable training and education will prove to be the key to recovery once work opportunities return. The largest trainer and supplier of skilled workers in the state, the Indiana Union Construction Industry provides a combination of on-site training and classroom education to ensure the safest, most productive work practices. Union apprentices receive approximately 2,000
hours of on the job training and a minimum of 216 hours of classroom instruction every year. Union contractors and owners know good labor productivity not only reduces project costs, but also improves the projectâ€™s schedule and quality. When it is time to expand the Indianapolis skyline with a key project, owners consistently turn to union contractors for a project built on schedule and within budget. As work has been more difficult to obtain, the best of the best in our industry are focused internally on education, training and improving their employeeâ€™s skills. While 2009 was certainly a difficult year for construction and 2010 will more than likely prove to be the same, there is an undercurrent of improvement that permeates our industry. The Indiana Union Construction Industry is ripe with stories of people working to raise the bar within their own firms and in their communities. Stories such as Rebuilding Together Indianapolis â€“ where union tradesmen and union contractors come together to provide neighborhood and home improvements for low-income homeowners. Stories of union
locals working to provide food banks and other support services to members who are out of work as a result of the recession. Or, stories such as the Carpenters Regional Council Joint Training Apprenticeship Committee, comprised of both labor representatives and contractors, who are building a brand new training facility on the south side of Indianapolis. Despite the slowdown in work, training and education remain a good investment in the Indiana Union Construction Industry. On May 20, 2010, Top Notch will host its inaugural Standards of Excellence Awards Program. This unique awards program is designed to honor contractors, unions and apprenticeship programs which have excelled beyond our standards of excellence. During a tight economy, it is often difficult to maintain the high standards that have long been association with the Indiana Union Construction Industry. However, many contractors, unions and apprenticeship programs have done just that. Join us in May to celebrate the best of the best. More information on the Top Notch Standards of Excellence Awards program can be found at www.topnotch.org.
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Industries Served Power Peaker & Co-Generation Petroleum Refining Pulp & Paper Commercial & Institutional
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Dedicated to Safety It is the policy of Scheck Industries to uphold the highest Safety, Health, and Environmental Standards to achieve an injury and accident-free workplace. With this effort in mind, Scheck created the new J.A.W.S. Safety Program, which was honored with the MCAA’s 2009 award for “Most Innovative Safety Program”. In its first year of implementation, Scheck performed over 1 million work hours nationally, without a single OSHA lost time or recordable injury.
The Scheck Difference Scheck was founded on the basis of earning. Scheck has earned its reputation through years of proven efforts that have brought growth, prosperity, proven techniques and innovations to the industry. Scheck believes it has a responsibility to foster the industry and take it to new levels through the success of its customers, their employees and the people and families that contribute so much to their continued success. One job, one task, one opportunity: Let Scheck earn your trust with the opportunity to make a difference.
Contact us today for a quote or more information:
Scheck Industries Phone: 708-482-8100 Fax: 708-482-8185 www.GoScheck.com
Published on Feb 18, 2010
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