EDUCATION FOR THE
JW Marriott Indianapolis: Into the Blue 40
Family Express: A New Family Home 44
The Big Pre-Game 68
SURE FOUNDATION INSPIRES CONFIDENCE, ENCOURAGES CREATIVE THINKING, AND ENABLES US ALL TO ACHIEVE WONDERFUL THINGS….”
THE AMERICAN GROUP
FOUNDATION STONES OF
The business of The American Group of Constructors shall be evidenced by the following values: • Determination in our Commitment to Safety Allowing a TAG Employee to be placed in harm’s way is unacceptable. We will place the safety of our Employees before proﬁt, before any project, and before any potential customer.
• Pride in our Workmanship The ﬁnished product of an American Group of Constructors project will be held to the strictest of standards, meeting or exceeding all of the expectations of our Customer.
• Trust in our Relationships Our Customers, Vendors, and Employees must know that we fulﬁll our commitments, meet our schedules, and make honesty our watchword.
• Care in our Stewardship We will preserve and grow those things placed in our trust. We will be good stewards regarding: the well-being of our Employees; the state of our ﬁnances; the natural environment in which we work and live; and the knowledge which we can share regarding our ﬁelds of expertise.
Phone 877-937-1508 • Fax 219-937-1512 • www.tagconstructors.com
Call for Nominations: Influential Women of Northwest Indiana I am pleased to announce that we are now accepting nominations for our first-ever Influential Women of Northwest Indiana Awards. Intended to honor Northwest Indiana’s most successful women from both the public and private sectors, these awards will recognize both an Influential Woman and an Up and Coming Woman in ten industry categories including construction, education, healthcare, not-for-profit and more. In addition, we will also present a special Supporting Business of the Year Award, acknowledging a business or organization that supports the success of women. There is no cost to nominate a candidate for the Awards. We are looking for women who are influential in their company or industry; have a solid reputation based on leadership, integrity and experience; and have a track record of accomplishment. For a complete list of categories and the online nomination form, go to www.nwiwomen.com. Winners will be featured in a special 48-page supplement, NWI Women, and recognized in person at a reception in their honor on June 2, 2011 at the Avalon Manor in Merrillville. Tickets to the event are $85, with a portion of the proceeds – matched at 100 percent through Eli Lilly – going to a women’s charity in the region. The deadline for nominations is March 15th. Please help us to identify and honor the leading women of Northwest Indiana. Go to www.nwiwomen.com and nominate someone today. Kind Regards,
219.226.0300 • 317.632.1410 www.buildingindiananews.com www.buildingindianablog.com
CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher/Editor Andrea M. Pearman email@example.com Senior Writer David Wellman firstname.lastname@example.org Creative Director Rebekah Hendricks email@example.com Office Coordinator Carrie Sovola firstname.lastname@example.org Special Projects Coordinator Jen Labriola email@example.com Director of Marketing Chrischelle Schmidt firstname.lastname@example.org Director of Events Kristin Jurczak email@example.com Director of Creative Media Sumer Rex firstname.lastname@example.org Director of Communications Melissa Garcia email@example.com Administrative Assistant Jennifer Ward firstname.lastname@example.org 219.226.0300 ext. 305 Administrative Assistant Liza Hilliard email@example.com 219.226.0300 ext. 313 Accounting Lindsey Andershock firstname.lastname@example.org INDIANAPOlIS OFFICE Business Development Manager Lee Ann Richardson email@example.com 317.632.1410 WARSAW OFFICE Business Development Manager Julie Monteith firstname.lastname@example.org 574.267.0614
Andrea M. Pearman Publisher
Building Indiana is published by Diversified Marketing Strategies. Visit us at 3dms.com. Subscriptions: Standard rates: $24.95/year Single copy price: $6.95 2006 Communicator Awards’ Award of Distinction 2009 Communicator Awards’ Award of Excellence
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Copyright ©2011 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at email@example.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.
04 Publisher’s Desk
08 Contributors 09 Business Buzz 24 People News 77 Location Finder Real Estate Professionals
36 BEING PRODUCTIVE Staff Scoop
77 Real Estate Marketplace 26 PHOTO FEATURE • Methodist Celebrates Expansion, Renovation • Repro Graphix Honored for Giving Back in 2010 • Indiana Sheriffs’ Association Welcomes New Sheriffs
40 SMAll BUSINESS SPOTlIGHT Making a Difference 62 CORRIDOR REPORT Better Days
64 YOUR WEll-BEING Accelerating to Lifespeed
SPECIAl REPORT: EDUCATION IN INDIANA 48 COVER STORY Skill Set 56 FACTS & STATS Higher Education Statistics 58 lOGISTICS Charting the Course 60 lIFElONG lEARNING Tips for Training
44 FEATURE A New Family Home 34
28 STATE OF THE INDUSTRY 2010 Legislative Outlook
40 FEATURE Into the Blue
66 GREEN & SUSTAINABlE Green Development 68 WElCOME CENTER The Big Pre-Game 70 MARkETING Searching for Success
30 RUlE OF lAW Student Sheriffs
72 REGION FOCUS Setting the Stage
32 SAFETY ZONE Raising Your Game
74 REGION FOCUS Working on the Railroad
34 THE BOTTOM lINE Banking on Entrepreneurs
78 THE lAST WORD An Out “Pour” of Generosity www.buildingindiananews.com
Contributors JOHN P. BUSHEMI
asset study and internal office operations.
John P. Bushemi is a partner with the law firm of Burke Costanza & Cuppy LLP (Valparaiso). His practice is focused in the areas of corporate, business, civil litigation, government, personal injury, real estate and zoning matters. Bushemi is a former Indiana State Senator.
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
MATT O’BRIEN With more than five years experience, O’Brien has directed search campaigns for companies such as Arm and Hammer and Fein Power Tools, as well as many popular “as seen on TV” products including the Snuggie. Most recently O’Brien consults as an independent contractor for companies throughout the Chicagoland and South Bend areas. He is a native of Michigan City and an Indiana University graduate. DAVID KOSINSKI
Know a woman at the top of her game?
David Kosinski, a graduate from Purdue University West Lafayette, has been in Contracts and Procurement for the past 5 years within the manufacturing and construction industries. He is currently employed with The Ross Group, Inc. as the Contract and Procurement Manger. DEWEY PEARMAN
- Established Leader Award - Emerging Leader Award
www.nwiwomen.com Nominations due by 3/15/11
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. SUSAN AND RICK RIDDERING Susan and Rick Riddering are owners of NorthStar360 Business Solutions, LLC, in Dyer which specializes in helping businesses hire and develop great employees, and overcome challenges facing their workforce. Services include assessments, talent benchmarking, and employee development programs designed to enhance leadership abilities, improve sales, and create high performance teams.
Awards Presentation Thursday, June 2 • 5-8pm • Avalon Manor, Merrillville, IN Tickets & Sponsorships available, visit www.nwiwomen.com or call Kristin at 219.226.0300. 8
Top Industry Executives Among 2,000 Expected for Midwest Event
nternational cigar executives Carlito Fuente, President of the Dominican Republic-based Tabacalera A. Fuente y Cia, and Rocky Patel, Founder of Rocky Patel Premium Cigars will be in Northwest Indiana this April as special guests of the second annual Midwest Smoke Out. The Midwest Smoke Out, the largest cigar show and exhibition in the Midwest, will be held Thursday, April 7 at The Venue at Horseshoe Casino in Hammond. Created and produced by Diversified Marketing Strategies (DMS), which also publishes Building indiana, the event attracts cigar enthusiasts from around the country for a night of premium cigars, fine spirits and wines, gourmet foods and more. “People still haven’t stopped talking about the first Midwest Smoke Out last April,” says Kristin Jurczak, Director of Events at DMS. “It totally surpassed our expectations, our vendors’ and sponsors’ expectations, and the expectations of more than 1,500 attendees.” www.buildingindiananews.com
Tickets and a limited number of luxury suites for the 2011 event went on sale at the beginning of January. “It’s a great opportunity not just for cigar lovers but for companies who want to show their appreciation to employees or key customers,” Jurczak says. “In addition to the suites, we have corporate packages and group discounts available.” Those who came to the show last year had great things to say about it. “It was phenomenal,” said Phil Sino of Chicago. “There were a lot of interesting vendors and everyone seemed very happy. People didn’t just come in for 20 minutes and leave; they stayed for hours.” Sino was just one of hundreds who came to Indiana for the event. “We had people from 16 states as well as Canada,” Jurczak notes. “And with Carlito and Rocky on hand to talk tobacco at this year’s show, I think we will draw even more, which is great for the region since it means increased business for local hotels, restaurants and stores.”
Just 2,000 tickets will be available for the Midwest Smoke Out and Jurczak expects the event to sell out well in advance. Tickets are $150 each and include a coupon book good for more than 16 free cigars with a total retail value of over $200, so attendees get their money back, and more, in cigars alone. There will also be spirits, wine and beer tastings, gourmet foods to sample and cigar-related gifts on display. This year, the ticket price also includes a one-year membership (or renewal) to Cigar Rights of America (CRA), a $35 value. “We have really focused on adding as much value for attendees as possible,” Jurczak says. The list of participating cigar manufacturers includes Rocky Patel, CAO, Xikar, General, Fonseca, Gran Habano, Arganese, Falto, Double Gun and more. Compared to last year’s show, she says the 2011 event will feature even more cigars, more food, and more spirits, wine and beer. “It will be a night of absolute luxury.” Visit www.midwestsmokeout.com or call 888-226-0330 for complete details. 9
CAF, NWIBRT Now Accepting Nominations for Construction and Safety Awards The Construction Advancement Foundation (CAF) and the Northwest Indiana Business Roundtable are now accepting nominations for the 2011 CAF Construction Awards and the 2010 NWIBRT Safety Awards. The CAF Awards honor the best commercial, industrial, highway and public works projects, contractors and owners in Northwest Indiana. To be eligible for an award, a project must have been completed between May 1, 2010 and April 1, 2011. Complete nomination information may be found at www.cafnwin.org. The NWIBRT Safety Awards recognize area companies who demonstrate their dedication to safety with strong safety programs and a commitment to continuous improvement. Visit www.nwibrt.org for complete details and nomination forms. Winners will be honored at the annual CAF/NWIBRT Awards Banquet on May 12, 2011 at the Avalon Manor in Merrillville.
Construction Giant Opening NWI Operations Center Industrial construction powerhouse Graycor Industrial Constructors has selected Portage as the site of its new Northwest Indiana operations center. The facility, scheduled to be completed this summer, will offer 44,000 square feet of office and operations support space at the Ameriplex at the Port business park. “The Northwest Indiana operations center’s proximity to key resources and business partners will help us continue to offer quality services as we broaden in scope and geography,” says Tom Muchesko, Senior Vice President of Graycor Industrial. “We appreciate being warmly welcomed by the community and are excited about having a facility close to our Northwest Indiana clients.”
Steelmaker Plans Gary Facility Olympic Steel (Cleveland, OH), a national steel service center, has signed agreements to purchase a new temper mill and cut-tolength line, and plans to locate it on U.S. Steel’s Gary Works. The company expects to invest approximately $25 million in the project, including the purchase of an existing 150,000-squarefoot facility for the line, the temper mill itself and multiple pieces of plate burning equipment. The mill and line are expected to be operational in the first half of 2012.
Schererville Lands Sports Tournament
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The Schererville Cal Ripken Baseball League and The Ohio Valley Region, a division of Babe Ruth League, Inc., have signed two contracts for the Schererville baseball league to host the Ohio Valley Regional 12-year old Major 70 division and 8-year old machine pitch tournaments. These events will bring more than 30 teams, 360 kids, and more than 1,200 people to the region. The tournament will run from July 21st through July 26th in 2011.
Colleges Back Small Business Development Indiana University Northwest and Ivy Tech Northwest Community College have joined Purdue University Calumet as sponsors of the Northwest Indiana Small Business Development Center for 2011. The three institutions will provide financial assistance to the NWISBDC, which is hosted at Purdue Calumet. The NWISBDC provides support for small business development in a seven-county area in Northwest Indiana.
Auto Parts Supplier Expands Facility Automotive parts manufacturer UGN is investing more than $3 million to expand its Valparaiso operations to nearly 200,000 square feet. The expansion, scheduled to be complete by March, www.buildingindiananews.com
Texas Lender Expands into Indiana Dallas-based PrimeLending is expanding its residential mortgage operations into the Midwest, including locations in Indianapolis, Fort Wayne and Schererville. A fourth location in Portage was scheduled to open in February, according to Kathy Peck, Branch Manager of the Schererville office. Peck, previously head of Bank of America’s residential mortgage lending in Northwest Indiana, says the Schererville and Portage offices will employ about nine people, “but we are growing.” PrimeLending’s Northwest Indiana staff is made up primarily of ex-Bank of America personnel who preferred a company that allowed more control and local decision-making, Peck says. The team includes: loan officers Barb Tithof, Robin Carey, Sandra Vargas and Mickey Lugar; and support staffers Amanda McKenzie, Heather Noojin, Michelle Arceo and Deena Galich. PrimeLending has also opened offices in Indianapolis
(Mack Howell, Manager) and Fort Wayne (Mark Cowen, Manager), as well as locations in Dayton and Columbus OH (Linda Klum, Manager). All were opened under the leadership of Bret Head, area manager for Indiana/Ohio for PrimeLending. PrimeLending is a unit of PlainsCapital Bank, the largest privately held bank in Texas and the 15th-largest retail mortgage loan producer in the U.S.
will create up to 28 new jobs this year, bringing the company’s total work force to about 278 employees. Tinley Park, IL-based UGN, a joint venture between Japanbased Nihon Tokushu Toryo Co. and Switzerland-based Rieter Automotive Systems, employs 1,100 associates across multiple locations in the U.S. The Indiana Economic Development Corporation offered UGN up to $200,000 in performance-based tax credits based on its job creation projections.
Realtor Relocates to New Offices Dawn Collins Century 21 Executive Realty has relocated from the Eastport Center Business Park near the Porter County Municipal Airport to new offices at 1211 Cumberland Crossing in Valparaiso. Executives say the new, modern office space provides a more centralized location for the business and more space for its growing needs. Currently, the office is home to about 18 agents. Led by Dawn Collins, Dawn Collins Century 21 Executive Realty has served the needs of Porter County residents for more than 10 years. Collins is among the Top 1% of Realtors worldwide and has been awarded the Double Centurion award for real estate excellence.
University to Create Master Plan Valparaiso University has selected JJR to prepare a campus master plan that will guide the University’s physical develop-
- continued on pg 12
ment over the next 20 years. A leading campus planning and design firm, JJR will draw on the experience of staff members who have participated in more than 200 campus projects, including the development of master plans for Baylor University, the University of Michigan and Lakeland College. The firm maintains offices in cities throughout the United States, including Chicago.
High Voltage Line Project to Cross Indiana Construction Management General Contracting Facilities Management
Electric Transmission America (ETA) has signed a memorandum of understanding with Exelon to jointly develop 420 miles of 765-kilovolt (kV) high-voltage line running from Ohio into Illinois. The lines will extend from the Ohio border west across Indiana into Henry County, Illinois. Columbus, OH-based ETA will develop the 104 miles of proposed transmission lines located in Indiana. Commonwealth Edison, a subsidiary of Exelon, will build the Illinois portion of the project. The $1.6 billion project would be built in phases, likely between 2015 and 2018, depending on the timing of regulatory approvals.
County Receives Infrastructure Funds 6983 corporate circle, indianapolis in 46278 p 317.328.8003 f 317.328.8013
The Newton County Rural Electric Membership Corporation (NCREMC) has received a $1.7 million loan via the U.S. Department of Agriculture’s Rural Utilities Service to fund system improvements, including extending service to 80 new customers, building 12 miles of new distribution line, and making improvements to 27 miles of distribution line.
Top NWI Execs Tapped for Chamber The Indiana Chamber of Commerce has named three Northwest Indiana business leaders to its Board of Directors. They are: • Michael Rippey, President and CEO, ArcelorMittal Steel USA in Burns Harbor. • Jill Ritchie, Manager, Public Policy and Government Affairs, U.S. Steel Gary Works in Gary. • Jimmy Staton, President, NiSource in Merrillville. The Indiana Chamber Board is comprised of 150 Presidents, CEOs and high-level executives from companies throughout the state. Rippey, Ritchie and Staton will each serve a three-year term running through 2013.
Building Recognized as a Top Speculative Development Tobin Development and TCB Development, developers of Midpoint USA at Ameriplex at the Port (Portage) received special recognition by NAIOP, the Commercial Real Estate Development Association, Chicago Chapter, as one of two finalists for the Industrial Speculative Development of the Year. 12
New Name, Location for CVB The Convention and Visitors Bureau of Fort Wayne and Allen County has changed its name to “Visit Fort Wayne” and moved to new offices at 927 S. Harrison Street in Fort Wayne. The new location includes a Visitors Center which serves as a “front door,” welcoming guests and offering visitor guides, maps, directions and event listings. The new space also features improved visitor services including digital signage and touch screen kiosks, additional souvenirs and merchandise, and seating areas. The new name reflects a desire by the organization’s board of directors to move to a “more clear and less bureaucratic version.” It is also consistent with its Web site, www. VisitFortWayne.com.
Electronics Firm Grows in Whitley Ultra Electronics-USSI has acquired the former Autoliv building in Park 30 Business Center in Columbia City and plans to create up to 45 new jobs at the Whitley County site. USSI, which designs, develops and manufactures advanced military sensor and sensor systems as well as audio products, will invest $3.85 million to expand and equip its facilities to accommodate the manufacturing and refurbishment of Ultra Electronics’ line of high-pressure air systems for use on military aircraft. USSI is a division of UK-based Ultra Electronics. The company currently employs nearly 400 employees in Whitley County and plans to begin hiring additional skilled technicians and quality associates in second half of 2011. - continued on pg 14 www.buildingindiananews.com
Though Midpoint USA did not capture the top prize, it was the only Indiana building among the nominees. The 574,249-squarefoot, $22 million building, the largest speculative industrial building in Northwest Indiana, was leased by BP in December 2009.
We Know the Feeling - We Can Help! Make Pinnacle Express Medical Care your choice for non-urgent medical care at an affordable price. Pinnacle Express Medical Care provides patients with immediate safe and quality medical care from highly trained physicians. We have extended hours and service six days a week with onsite laboratory and radiology services. Walk-ins welcome and no referrals are necessary. Pinnacle Express Medical Care, where we measure your wait in minutes not hours.
For more information please call 219.796.4150
is conveniently located on 93rd, just east of Broadway in Crown Point 9301 Connecticut Drive Crown Point, IN 219.796.4150 www.pinnaclehealthcare.net 13
South Bend Bank Leads Indiana Small Business Lenders South Bend-based 1st Source Bank ranked No. 1 among all banks in the state for the number of Small Business Administration (SBA) 504 loans closed during the last fiscal year, according to SBA figures. 1st Source received the No. 1 ranking out of more than 120 active SBA lenders in the state. The bank has also been recognized by the South Bend Business Development Corporation (BDC) for its SBA lending in 2010. 1st Source closed more 504 loans through the BDC than any other bank, and 1st Source banker Ryan Fenstermaker was recognized for closing more 504 loans through the BDC than any other individual.
Bank Hits Fort Wayne Milestone Lake City Bank (Warsaw) has reached a milestone with loans outstanding in excess of $500 million in the Fort Wayne market. The bank has been in the Fort Wayne market since 1999. It serves Northern Indiana with 43 branches located in 12 Indiana counties and also has a Loan Production Office in Indianapolis.
Steel Distributor Announces Plans for Whitley County
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Triad Metals International, a distributor of structural steel, will locate its newest and first distribution facility in the Midwest in Whitley County, creating up to 35 new jobs by 2013. The company, which processes and distributes steel, tubing and hot rolled coil, will invest more than $10 million to construct a new 170,000-square-foot distribution center at the newly established Rail Connect Business Park east of Columbia City. Based on the company’s job-creation plans, The Indiana Economic Development Corporation has offered Triad Metals International up to $340,000 in performance-based tax credits.
Vera Bradley Wows Wall Street Vera Bradley’s October initial public offering was a big hit. The Fort Wayne company sold about 11 million shares on its first day, raising $176 million in the process. The company plans to use the funds to open 12 new stores. Prior to the IPO, the company owned and operated 29 stores and employed 1,059 people.
Dumps • FlatbeDs • lowboys • stretch Flats tippers/walking Floors • construction aggregates
Electric Car Maker Accelerates Production Think North America has begun production in Elkhart ahead of schedule. The Norwegian company’s original timetable called for full production to begin in 2011 (which is still the plan) but in order to provide a limited number of vehicles to targeted markets around the country, Think began shipping unfinished vehicles to the U.S. for final assembly at the Elkhart plant in late 2010. About 500 electric vehicles were scheduled to be assembled at www.buildingindiananews.com
DeKalb Memorial Hospital has selected Weigand Construction as general contractor for an $8.7 million, 44,000-square-foot expansion project. The addition includes a 15,000-square-foot emergency department, 18,000 square feet of imaging and laboratory departments, and an 8,000-square-foot critical care unit. Construction is scheduled to be completed this year.
Utility Breaks Ground on $25 Million Project Indiana American Water, a subsidiary of American Water Company, has broken ground on a new water treatment facility in Warsaw. The company says the $25 million project will enhance water quality, improve system reliability and enable it to continue to meet the needs of its customers. The design team of Hazen and Sawyer and River City Construction was selected to design and construct the new facilities. The project will employ several “green building” design features and will be submitted for LEED certification upon completion.
Another RV Maker Rolls Into Elkhart Nexus RVS, LLC a startup manufacturer of recreational vehicles, will establish production operations in Elkhart, creating up to 90 new jobs by 2013. The company, which manufactures Class B and Class C motor homes, will invest more than $2.8 million to lease and equip an existing 109,000-squarefoot manufacturing facility adjacent to the Indiana Toll Road. Nexus, currently headquartered at Notre Dame’s Innovation Park, planned to begin hiring production, supervisory and support associates at the Elkhart facility by the end of 2010.
Information Inform that matters - continued on pg 16
BCRC is very passionate about what we do. Our services promote the well-being and safety of employees in the workplace. Empowering our members with information is just one way BCRC does this. It is our purpose to provide a vehicle to help establish and maintain a workplace free of the destructive effects caused by the use of drugs and alcohol.
LaGrange County Manufacturer Grows Tri-State Hardwood Co. has announced plans for an expansion of its operations in South Milford. The expansion will involve the construction and installation of two new 50,000-board-foot drying kilns as well as a new log de-barker. The new equipment will allow the company to increase operational efficiency and lumber processing capacity. The expansion will also create four new positions, bringing total employment to at least 33 employees.
Manufacturer Consolidates in Fort Wayne Precise Manufacturing will consolidate manufacturing operations in Fort Wayne, rewww.buildingindiananews.com
If you require more information or would like to speak with us directly, please feel free to contact BCRC at anytime.
6050 Southport • Suite B Portage, IN 46368
Hospital Expanding in Auburn
sulting in 24 additional jobs for Allen County. The company will also retain 19 employees and invest $1.33 million in new equipment and real estate improvements. The new jobs will be in engineering, quality control and CNC/Screw machine operation.
the facility before the end of the year, creating about 25 jobs. The company expects to hire a total of 400 people by 2013.
The Indiana Economic Development Corporation offered Nexus up to $725,000 in performance-based tax credits and up to $50,000 in training grants based on the company’s plans.
New Business Leads to Expansion in Plymouth After landing a major contract from an international agricultural equipment manufacturer, Whitley Products will expand its Plymouth operations, and add 30 jobs by 2012. Warsaw-based Whitley, a supplier of fabricated tubular products serving the diesel engine, agricultural, off-highway equipment and HVAC industries, will invest more than $1 million to equip and lease a portion of a 62,000-square-foot building in the Plymouth Industrial Park from Plymouth Industrial Development Corporation. The site will be in addition to Whitley’s existing 40,000-square-foot Plymouth location. The Indiana Economic Development Corporation has offered Whitley up to $250,000 in tax credits based on its plans.
Boat Accessories Manufacturer Docks in Fort Wayne DOWCO Inc., a manufacturer of covers, canopies and accessories for the marine and personal vehicle industries, will
launch operations in Fort Wayne, initially adding 10 new jobs to the local economy. DOWCO’s Fort Wayne facility will be home to cut and sew operations for the company. The facility is located within the City of Fort Wayne’s Urban Enterprise Zone, which entitles the company to several tax benefits.
Hardware Maker Coming to Portland Fort Recovery Industries, Inc., an aluminum and zinc die cast hardware manufacturer, willlocate a new manufacturing facility in Portland, IN, creating up to 40 new jobs by 2013. The 65-year-old company plans to invest approximately $4.5 million to purchase and equip an existing 50,000-squarefoot facility in the northeast Indiana city. The company expected to begin hiring manufacturing and warehousing associates early this year once upgrades are completed at the facility. The city of Portland has approved a tax abatement at the request of the Jay County Development Corporation, and the Indiana Economic Development Corporation has also offered the company up to $275,000 in performance-based tax credits.
Startup Hiring 53 in Huntington Perfection Wheel Corporation, a Huntington-based startup, will invest $1.7 million and hire 53 people over the next
Quality Quality •• Integrity Integrity •• Excellence Excellence
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Toolmaker Moving to Greenfield Stanley Black & Decker, Inc., will relocate some of its manufacturing operations to Greenfield, bringing up to 80 new jobs to the town by 2012. Manufacturing work from two existing Stanley Black & Decker locations, including one in Shelbyville, will be moved to a larger, 220,000-square-foot building in Greenfield. In addition to new jobs, workers at the existing Shelby County site will be transferred to neighboring Hancock County. The new facility will manufacture industrial fasteners, various types of steel fasteners and industrial applications equipment and will assemble pneumatic tools. The Indiana Economic Development Corporation has offered Stanley Black & Decker up to $600,000 in performance-based tax credits and up to $50,000 in training grants.
Purdue Professor Shares Nobel Prize Professor Ei-ichi Negishi, the Herbert C. Brown Distinguished Professor of Chemistry at Purdue University in West Lafayette, was one of three professors sharing the 2010 Nobel Prize in Chemistry. The Nobel was awarded to Negishi, Richard F. Heck, Professor Emeritus at University of Delaware and Akira Suzuki, Distinguished Professor Emeritus at Hokkaido University, Sapporo, Japan, for the development of palladium-catalyzed cross coupling. This chemical tool has vastly improved the possibilities for chemists to create sophisticated chemicals. Palladium-catalyzed cross coupling is used in research worldwide, as well as in the commercial production of pharmaceuticals and molecules used in the electronics industry.
Aftermarket Parts Distributor Acquires Repair Service
302 Tyler Street • La Porte, IN 46350
Power Train Service (Indianapolis) has acquired Truckers 24 Hr. Road Service, one of Indianapolis’ largest truck and trailer repair service providers. Following the acquisition, Truckers 24 Hr. Road Service now operates as a wholly owned subsidiary of Power Train Companies. Truckers 24 Hr. will continue 24/7 operations at their current 11- continued on pg 18 www.buildingindiananews.com
Your Contractor for Better Building Solutions 17
two years. The company will re-fabricate aluminum wheels for the after-market automotive sector. The City of Huntington collaborated with the Huntington County Board of Commissioners to jointly offer a grant to support infrastructure improvements at the facility to accommodate the new employer. The Indiana Economic Development Corporation has also offered tax credits associated with the commitment to job creation.
bay facility. The company operates five road service vehicles. Power Train employs about 200 people. In 2009, it served more than 3,500 customers and was voted Distributor of the Year by Truck Parts and Service Magazine.
New Agreement to Lower Airport Costs The Indianapolis Airport Authority Board has approved a new airline use agreement which is projected to lower costs for airlines using the airport, making it more attractive for additional or expanded service. The agreement is the foundation upon which airlines will operate at Indianapolis International Airport (IND) for the next five years. It determines airline costs for doing business at IND and defines the rates and charges the airport authority will assess for leased space in the terminal, landed aircraft weights, and parking on the tarmac, among other key business operations.
Collectively, these costs are known in the industry as cost per enplanement (CPE), which has a major impact on the bottom-line profitability for airline operations at specific airports. In most U.S. cities, the rates airlines pay are forecasted to increase. In Indianapolis, however, those costs will actually decrease steadily over the next five years.
Indianapolis Company Expands for Third Time Beckman Coulter, a manufacturer of biomedical test instruments and supplies will expand its operations in Indianapolis for the third time in the last four years, creating up to 95 new jobs by 2013. The company, which develops, manufactures and markets testing instruments and supplies for hospital laboratories as well as scientific research and drug discovery, will invest more than $18.2 million to add new equipment at its West 76th Street facility. The Indiana Economic Development Corporation has offered the company up to $800,000 in performance-based tax credits and up to $300,000 in training grants.
Rural Broadband Network Begun The Indiana Rural Health Association (IRHA) has begun development of the Indiana Telehealth Network (ITN). When completed, ITN will connect 22 of Indianaâ€™s rural critical access hospitals with fiber optic broadband. ITN will allow doctors and patients to access specialty services anywhere in the state, nation, or world in real time in order to increase diagnostic capabilities through telemedicine. The total cost of the ITN is approximately $7 million. The Federal Communications Commission (FCC) is providing 85 percent of the funding, and the additional 15 percent will be provided through a local match.
Canadian Company Picks Miami County Conforce International Inc., a manufacturer of composite flooring systems for the transportation industry, will invest $13.8 million to purchase and equip a 155,000-squarefoot facility in Miami County and create up to 18
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Cummins to Add 350 Jobs
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Cummins Inc. has reached an agreement to purchase the First Financial Bank branch and office tower at 500 Washington St. in Columbus, IN to meet the demand for office space for its Southern Indiana workforce. Cummins plans to add at least 350 engineering, technical and other professional positions over the next 18 months, largely as result of the company’s expected strong global growth. Cummins, which currently employs about 6,000 people in Indiana, began moving employees into its newest office in downtown Columbus in 2009. That building is expected to be filled this year. The State of Indiana is providing Cummins with tax incentives to support the job growth as well as providing financial resources and other support to the community to enhance its educational systems.
ExactTarget to Enlarge Indianapolis Headquarters
175 new jobs by 2013. The Peru facility is the Canadian company’s first U.S. operation. Conforce planned to begin hiring manufacturing and supervisory associates in the first quarter of this year. The facility will manufacture the company’s trademarked EKO-FLOR flooring brand. The Indiana Economic Development Corporation offered Conforce up to $865,000 in performance-based tax credits and up to $57,500 in training grants based on the its job creation plans.
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Email marketing and interactive marketing provider ExactTarget plans to expand its headquarters in Indianapolis, creating up to 500 new jobs by 2015. ExactTarget’s latest expansion in Indiana is the company’s third in three years. The company, which employs more than 580 in Indiana and more than 750 around the globe, plans to invest more than $45 million over the next five years in technology and infrastructure in downtown Indianapolis. The Indiana Economic Development Corporation has offered the company as much as $11 million in performance-based tax credits and up to $225,000 in training grants.
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Progress Rail Services plans to locate a locomotive manufacturing facility in Muncie to serve the diesel-electric locomotive market. The company, a subsidiary of Caterpillar, plans to invest $50 million and create up to 650 new jobs by 2012. The company will launch operations in a 740,000-square-foot facility formerly occupied by ABB Power T&D Co., which closed in 1998. Founded in 1983, Progress Rail Services manufactures repairs and refurbishes freight cars, locomotives and rail track, and oversees the reclamation of used rail, wrecked or retired railcars and locomotives and other scrap metal. It has more than 130 oper-
Locomotive Maker Chugs into Muncie
- continued on pg 20 www.buildingindiananews.com
ating facilities throughout the world. The Indiana Economic Development Corporation has offered the company up to $3.5 million in performance-based tax credits, up to $1 million in training grants, and is providing the city of Muncie with up to $1 million in infrastructure assistance grants.
Lender Consolidating in Indiana Sallie Mae is consolidating operations in Indiana as part of a company-wide restructuring effort following recent federal legislation. The consolidation will create approximately 350 new jobs at Sallie Mae’s existing facilities in Fishers and Muncie. In 2010 the company, which services more than $200 billion in student loans, announced it would reduce its geographic footprint from 25 major locations across the country to between five and seven. Sallie Mae currently employs more than 2,600 associates at its Indiana facilities.
Construction Group Goes Greek C.F. Jones Group, a contracting, consulting and construction firm based in Lebanon, has added a new division dedicated to construction planning and management consultation for Greek house boards embarking on ground-up fraternal facility construction or chapter house renovation. C.F. Jones’ first fraternal renovation was completed
in 1989. Since then company experts have been contracted to plan and manage projects by dozens of house corporations in the Midwest and Ohio Valley. Last fall the company won two Associated Builders and Contractor’s (ABC) Excellence in Construction Awards for fraternity projects at Indiana University and Purdue University. Bart Fisher has been named Greek Services Director. He also serves as marketing director for C.F. Jones and is a University of Kansas and Sigma Alpha Epsilon alumnus.
Coating Company to Add 50 Jobs KECO Coatings has acquired a second Indianapolis facility for its coating operation where the company plans to invest $1 million and hire 50 additional workers by 2013. The new jobs will include engineering, management, customer service and manufacturing positions with an average wage of $40,000 annually. KECO currently employs 25 people at its downtown facility. Projected sales at the second location will reach up to $3 million by 2013 bringing the total company revenue to more than $6 million. The new 40,000-square-foot facility on the city’s west side has two additional acres for future expansion.
Indiana Facility Named Top Plant Toyota Industrial Equipment Mfg., Inc. (TIEM) in Columbus, IN, was named the 2010 “Top Plant” by Plant Engineering magazine. TIEM, which produces the No. 1-selling lift truck in the U.S., is the only manufacturer selected for this year’s honor. TIEM was selected based on a number of factors including safety, efficiency and respect for the environment.
Chrysler Plans $843 Million Investment Chrysler Group LLC will invest $843 million into its existing transmission manufacturing facilities in Kokomo to accommodate production of a new advanced front-wheel drive automatic transmission for future Chrysler Group vehicles. When combined with previously announced investments totaling $343 million in its Kokomo facilities, this new investment would make the city the recipient of the largest investment, $1.1 billion, in a single year in a single community. The investment will fund the installation of equipment and special tooling to modernize the Indiana Transmission Plants and the Kokomo Casting Plant, extending the life of these facilities and helping to retain nearly 2,250 jobs.
South INDOT to Spend Big on Green Projects The Indiana Department of Transportation (INDOT) anticipates investing roughly $77 million in environmental mitigation 20
Economic Development Group Touts Successes The Economic Development Coalition of Southwest Indiana, an umbrella economic development organization for Gibson, Posey, Vanderburgh and Warrick Counties in Southwest Indiana, touted its success in 2010 at its annual November board meeting. “The Coalition has been a great success in a very short period of time,” said Chairperson Michelle Hudson. “Since its formation in late 2006, the Coalition has helped to secure $346 million in new investment from existing and new companies.” “These companies represent not only new investment but more importantly 1,780 new jobs as well,” added Greg Wathen, President and CEO.
Over the past three years, the Coalition has also secured $47 million in grants for such things as expansion of water and sewer systems, building new community centers and making improvements to the region’s levee system.
and enhancement measures tied to the construction of I-69 in southwest Indiana. The efforts will include forest and wetland replacement and stream improvements related to the conservation of threatened and endangered species. The work covers nearly 10 square miles from 40-50 mitigation properties between Evansville and Bloomington. Enhancement efforts include, but are not limited to expanding existing mature forests and wetlands, conservation of threatened and endangered species, purchase of Indiana bat cave(s) and efforts to protect Eastern Box turtle populations.
Hotel Undergoes $10 Million Facelift The Plaza Hotel on Highway 41 North in Evansville has been closed for $10 million in renovations to convert the 120room property to a Hampton Inn by Hilton Worldwide. The new, modernized look Hilton has adopted for this Hampton Inn includes an oversized indoor pool with spa, a 500-square-foot fitness center, an expanded business center, four suites, complimentary Internet access in each guestroom, and three meeting and banquet rooms totaling more than 4,500 square feet. It will open in the fall of 2011.
Coal Gasification Plant to Create 1,000 Construction Jobs in Spencer County After four years of planning and negotiation, the Indiana Finance Authority (IFA) Board voted unanimously to approve a $2.65 billion project to build a new generation substitute natural gas plant (SNG) in Spencer County, bringing 1,000 construction jobs to southern Indiana. The proposed $2.65 billion SNG plant would also produce - continued on pg 22
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200 full-time jobs at the plant and 300 mining jobs. It would operate with 99 percent fewer pollutants than a traditional coal plant and will be designed to capture 90 percent of its carbon dioxide emissions. IFA will enter into a 30-year contract with Indiana Gasification, LLC, a subsidiary of Leucadia National Corporation, to purchase 38 million MMBtus of substitute natural gas when SNG production begins in late 2015. The plant will be built and operated by Indiana Gasification, which will assume the entire risk for construction and operation. In addition to SNG sold under contract to the IFA, the plant will produce additional SNG and other byproducts (sulfuric acid, argon, and other rare gases) that will be sold to generate incremental revenues, half of which will be passed on to benefit the ratepayer. Vitreous slag, which is one of the byproducts of the facility, will be given to the state for free and used for other processes such as building roads.
Stink Stopper Expanding in Rising Sun
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OMI Industries Inc., a provider of environmentally friendly odor management products, will expand its production and warehousing operations in Rising Sun, creating as many as 21 new jobs by 2013. The company will invest more than $1.2 million to add 16,000 square feet of space and an additional production line at its Ohio County facility. The new space will include warehouse, production and laboratory areas. The Indiana Economic Development Corporation offered OMI up to $170,000 in performance-based tax credits based on its plans.
Radius Indiana, the regional economic development group serving Crawford, Daviess, Dubois, Greene, Lawrence, Martin, Orange, and Washington counties, has moved its main office to Bedford. The organization will also be opening a new satellite office in Jasper. “By opening a new main office and satellite office, Radius Indiana is able to better address economic development needs South Central Indiana,” said R.J. Reynolds, President and C.E.O of Radius Indiana. “We’re also maintaining the office we currently have at NSWC Crane.” Radius Indiana’s main office is now located at 1504 I Street in Bedford.
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Kentuckiana Trading has chosen the Borden Business Park in Borden as the site for its first facility. The company anticipates the creation of 15 jobs over the next three years. Through modification, restoration and recirculation of used equipment, Kentuckiana’s new venture provides a solution to companies with obsolete or unwanted equipment. The company received performance-based tax credits from the Indiana Economic Development Corporation based on its plan to invest more than $1.5 million in the facility over the next four years.
Steelmaker Investing in Jeffersonville VOSS Clark, which operates a 485,000 square-foot steel processing plant in Jeffersonville, is planning a $5.2 million expansion which will create at least eight new jobs. The company will invest $3.65 million in new equipment and $1.66 million in real estate improvements through 2011. The company currently employs 111 and has plans to add at least 8 new jobs within the next 12 months. These new jobs represent a total of approximately $400,000 in new annual payroll. The Jeffersonville City Council approved a $5.2 million tax abatement for the project at the request of One Southern Indiana. www.buildingindiananews.com
Metals USA Holdings Corp., a provider of processed carbon steel, stainless steel, aluminum and other metals, has entered into an agreement to purchase an affiliate of Eagle Steel Products, Inc. which will be named Ohio River Metal Services, Inc. (ORMS). Located in Jeffersonville, Eagle and ORMS operate a flat rolled metal service center providing processing and warehousing services. Under President Charles R. Moore, ORMS will continue to operate from its 320,000-square-foot facility. Eagle Steel Products will continue to operate from its Louisville, KY, facility under its CEO and majority owner, Shirley Ohta. bringing 1,000 construction jobs to southern ISNG production begins in late 2015.
million bushels of storage capacity. Cargill is also adding a fifth truck receiving pit to complement the facility’s existing rail and truck unload capabilities. In addition, the company is installing new, automated control systems to monitor grain temperatures in all of the facility’s grain storage areas. The total investment will increase Cargill’s grain storage capacity by more than 50 percent, and grain unloading capacity by an additional 20 percent. “We are pleased to invest in these upgrades as they will directly benefit our producer customers while giving a boost to the local economy,” said Facility Manager Brett Ridge. Construction is scheduled for completion in November. Cargill expects to hire 75 local Indiana contract workers for the 10-month project. Cargill has 20 dedicated employees at its Mt. Vernon grain elevator helping farmers with grain handling, crop insurance, and grain marketing needs. Cargill also operates grain elevators year-round in Evansville, Princeton and Vincennes and it has a grain put-through agreement with the Wheeler Creek Grain facility in McLeansboro, IL.
Jeffersonville Steelmaker Acquired
Holiday World Sets Record Holiday World (Santa Claus, IN) finished its 64th season in 2010 by setting a new seasonal attendance record, up nearly 14 percent from the previous record, set in 2009. With a final count of 1,182,636 guests, President Dan Koch credits the season’s growth to the addition of Wildebeest, the world’s longest water coaster, the parks’ budget-friendly free soft drink policy, and a continued concentration on cleanliness and friendliness throughout the park.
Auto Supplier Boosts Jobs Components manufacturer TG Missouri will expand its operations in New Albany, creating up to 30 new jobs by 2013. The company, which manufactures consoles, dashboard equipment, painted trim parts and other safety components, will invest more than $3 million to upgrade machinery at its existing facility. The Indiana Economic Development Corporation offered TG Missouri Corporation up to $200,000 in performance-based tax credits based on the company’s job creation plans.
Cargill Upgrades in Mt. Vernon Cargill is significantly upgrading its Mt. Vernon grain operations through construction of four new grain storage bins totaling 3.4 www.buildingindiananews.com
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o Rush Joins Trans-United Kyle Rush has joined TransUnited, Inc. (Burns Harbor) as an Account Manager covering north central Indiana and southwest Michigan concentrating on the wind energy transportation market. Rush is originally from Lafayette, and graduated from Wabash College with a bachelor’s in economics.
IEDC Names Kenworthy Director for Central Indiana The Indiana Economic Development Corporation has named Mindy Kenworthy Director of Central Indiana Business Development, which serves a 29 county region surrounding Indianapolis. Her previous experience includes time with the Economic Development Corporation of Wayne County and the Blackford County Economic Development Corporation.
OE Taps Trowbridge Bill Trowbridge has been named President and CEO of Opportunity Enterprises (Valparaiso). Trowbridge comes to OE with seven years experience in the banking industry, including three years as Vice President of the Personal Asset Management Group at 1st Source Bank Valparaiso. He also worked for four years as a Gift Planning Officer for Valparaiso University, and has served on the OE Board of Directors since 2005. Mayor Earns Certificates Crown Point Mayor David Uran has been awarded Bronze and Silver Certificates in Advanced City Leadership from the Indiana Association of Cities and Towns –IU School of Public and Environmental Affairs Mayors Institute. To earn this status, over the past two years Mayor Uran has completed six day and a half courses geared toward the continuing education of Indiana’s municipal CEOs. 24
Financial Management Association.
divisions, adding a key role for future growth.
Jones Named District Manager Harsco Minerals has announced the appointment of Jeff Jones to Western District Manager. Jones has an extensive steel industry background having worked in the steel industry for 37 years. He is an Executive Board Member of the AIST Midwest Chapter, and a member of the AIST National Operating Committee.
Bekan Snags Pittman Bekan Insurance Group, one of Northwest Indiana’s largest insurance agencies has announced that John W. Pittman has joined the firm as an Agent/Producer focusing on business insurance and risk management. He recently completed the 30-week training program through Indiana Insurance to obtain the Accredited Advisor in Insurance (AAI) designation. Previously, Pittman was with the CDI Agency in Chicago.
Acton Advanced at BMW Constructors BMW Constructors (Indianapolis) has named Brian K. Acton President and Chief Operating Officer of the company, reporting to Thomas E. O’Brien, who will continue as Chairman and Chief Executive Officer. He currently serves on the Advisory Board of the Construction and Engineering Department at Purdue University, and is a member of Young President’s Organization (YPO). Michna Joins LRHS Richard Michna has joined La Porte Regional Health System (LRHS) as Director of Reimbursement and Managed Care. Michna brings more than 27 years of experience in finance departments of various hospitals throughout the region. He has a Bachelor of Arts from Augustana College, is a Certified Public Accountant and a Fellow in the Healthcare
Zavacky Benefits Gibson Bob Zavacky, Jr. has joined Gibson Insurance Group (South Bend) as a Consultant in the Employee Benefits Practice. He is responsible for working with employers to provide an analysis of their existing employee benefits and assisting with the implementation of new or redesigned programs. Prior to joining Gibson, Bob worked as an account executive at 1st Source Insurance. Another Toothaker for CBRE South Bendbased CB Richard Ellis | Bradley has announced that Bryse Toothaker, son of Robert Toothaker, Chairman and brother of Brad Toothaker, President and CEO, has joined the family businesses as a Vice President and Partner. Bryse brings added depth within the residential brokerage and management
Lohmeyer a Throughbred Rick Lohmeyer of Anderson Insurance in Valparaiso, a Keystone Insurers Group partner, received Keystone’s “Thoroughbred Award” in recognition of outstanding new business production, at Keystone’s Annual Carrier Meeting in September. This award is presented to the top two producers in each state in which Keystone has partners, as well as the top producer with two years or less in the agency business. Lugar Lands at Somerset Todd Lugar has joined Somerset CPAs as Director of Somerset’s Business Advisory Team. He will work with owners and C-level management teams in a variety of industries to leverage their time www.buildingindiananews.com
and abilities to better position their company for future growth. Lugar came to Somerset from a mid-sized privately-held company based in central Indiana where he served as President for two years and held primary responsibilities for administration, finance, governance and operations. Farmers Bank Harvests Loomis Sydney S. Loomis has joined The Farmers Bank (Frankfort) as Assistant Vice President and Small Business Lender/Market Manager at the bank’s new Noblesville Office. Loomis brings over 30 years of banking experience and was most recently with Harris Bank. Loomis is a member of the Noblesville Chamber of Commerce and the Board of the Shepherd’s Center of Hamilton County. Johnsen Named Council President Dale Johnsen has been named President of the Indiana State Building and Construction Trades Council. Johnsen, a business agent for International Bricklayers and Allied Craft Workers Local 4 of Indiana and Kentucky, has served on the Council for 14 years and has been its Secretary-Treasurer for the past two. Johnsen is replacing Jay K. Podesta, who is transitioning to Assistant Director of Government Affairs for the Sheet Metal Workers’ International Association. Braman Insurance Grabs Gardiner Andrew R. Gardiner has joined Braman Insurance Services as an Account Executive. Gardiner graduated from Indiana University in 2010 with a Bachelor of Arts degree in economics, while also studywww.buildingindiananews.com
ing business, math and Spanish. He began working at Braman Insurance Services in June of 2010 and is pursuing his CISR designation. Gardiner currently resides in Crown Point and is a member of the NWI Contractors Association. McNeil Joins Board Bose McKinney & Evans LLP Partner Andrew McNeil has joined the Board of Directors for the Neighborhood Christian Legal Clinic, which provides quality, pro bono legal assistance to low income families. McNeil is a Partner in the Indianapolis law firm’s Labor and Employment, Litigation and Appellate Groups. DeHaven Named Executive of the Year S. Joe DeHaven, President and CEO of the Indiana Bankers Association (IBA), has been named 2010 Association Executive of the Year by the Indiana Society of Association Executives. Since joining the Indiana Bankers Association (IBA) in 2006, DeHaven has guided the Association through a complex merger process and navigated it through the worst financial recession in decades. His leadership has positioned the IBA as a leading state bank trade association nationwide, posting historic milestones in gross revenue, net revenue and member equity. Relocation Strategies Adds Cunningham Sally Cunningham has joined Indianapolisbased Relocation Strategies as Project Manager. Over the past 13 years, Sally has practiced Interior Design in Wilmington, DE. She is a graduate of Purdue University (West Lafayette) earning a Bachelor of Arts in Interior Design.
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photo feature Methodist Celebrates Expansion, Renovation Methodist Hospitals has reopened its satellite office in Griffith following a renovation and expansion, and opened a new physician’s office in Crown Point. Dr. Sungshik An, Family Practice, is practicing out of the new 1,800-square-foot location, Crown Point location. The office occupies about a third of an existing building in Crown Point, and during the dedication ceremonies, Ian McFadden, President and CEO of Gary-based Methodist Hospitals, said Methodist was in negotiations to occupy the rest of the building. “We see Crown Point as one of our primary service areas,” he said. “This office is the first of several plans we have for Crown Point. We want to lease the rest of the building and build a multispecialty presence here.” Methodist also recently opened an outpatient behavioral health services program in Gary and implemented an electronic record-keeping system to ensure top-quality care.
Methodist Hospitals opens its newest office in Crown Point. (l. to r.) Robert Johnson, Methodist Hospitals Board of Directors; Dr. Sungshik An, Family Practice; Ian McFadden, CEO, Methodist Hospitals; Glenn Hannah, Methodist Hospitals Board of Directors; Mamon Powers, Methodist Hospitals Board of Directors
Methodist Hospitals celebrated the renovation, expansion and re-opening of its satellite office in Griffith with an official ribbon-cutting ceremony. The hospital plans to add two more satellite offices in Schererville and two in Valparaiso, in 2011, as well as a new spine/orthopedic center,
Law Firm Boosts Capital Campaign Members of the Merrillville-Valparaiso law firm of Hoeppner Wagner and Evans LLP donated $5,000 to the Saint Anthony Medical Center Capital Campaign, which is raising funds to build a new Neonatal Intensive Care Unit and has funded construction of a new complex to house St. Clare Health Clinic and the Prenatal Assistance Program. Front row, l. to r.: Joe Allegretti, Capital Campaign Chairman; and Hoeppner Wagner and Evans LLP members Kevin Keough, Robert Dignam, William Satterlee III and Joseph Jaskowiak. Back row, l. to r.: Robert Corbin, Franciscan Alliance, Northern Indiana Regional Counsel; and David Ruskowski, Saint Anthony President.
Indiana Sheriffs’ Association Welcomes New Sheriffs The Indiana Sheriffs’ Association (ISA) welcomed newly elected and re-elected sheriffs to its New Sheriff’s School in Indianapolis in December. Held every four years, the program is designed to help newcomers by giving them an opportunity to learn from sheriffs already on the job and meet with officials from other law enforcement agencies and related branches of government. For more on the School, turn to page 30.
(l. to r.) Tippecanoe County Sheriff Tracy Brown and Jasper County Sheriff Terry Risner at the ISA’s New Sheriff’s School. Sheriffs from around the state gathered to network and learn at the ISA’s New Sheriff’s School in December.
STATE OF THE INDUSTRY
2010 Legislative Outlook
With Indiana facing major budget challenges, now is not the time for the state legislature to pick a fight with union workers.
By Dewey Pearman, Executive Director, Construction Advancement Foundation
t’s that time of year again: the Indiana General Assembly has begun its 2011 legislative session. This year’s legislature will feature several high-profile issues. As the nation and the state slowly crawl out of the economic hole that opened in 2007, the state must pass a two-year budget. To say the least, this will be a difficult task. Tax revenues in the current twoyear budget have fallen far short of projections and the state will end the current budget cycle with a dramatic deficit. That will make formulating the next two-year budget that much more difficult as state agencies, local governments, schools and various interest group clamor for more resources to provide needed services. No small part of the state’s budget woes is an Unemployment Insurance Trust Fund which is broke and owes the federal government billions of dollars. In 2009, the General Assembly enacted legislation to fix it by way of higher premium rates and an increase in the wage base against which the rate is applied. But in 2010 the legislature, citing a continued depressed economy, delayed the imposition of the tax increase until 2011. So the current session now has an even bigger problem to fix. Any number of proposed fixes will be up for discussion, none of them good for employers, workers or the economy. One proposal will likely be to shift part of the burden to workers by imposing an unemployment insurance tax on the worker. Another idea, discussed in 2009, is making construction craft workers “sea28
sonal employees” who are not eligible for unemployment insurance benefits. Many in the state believe that the construction industry is a significant drain on the trust fund. And while it is true that craft workers are laid off from time to time, this is misguided on two points. First, given the unique labor market mechanism at work in the vast majority of the Indiana construction industry in the unionized sector, a given craft worker often works for two or more employers during the course of a year. As a result, in many cases more than one employer has paid up to the maximum into the trust fund for a given worker. As an example, John Smith may work for ABC Construction for two months and earn $10,000. The company would apply the insurance rate to the base wage and pay up to the maximum $940.00 for him. John then works for XYZ Construction for three months earning $15,000.00. His new employer pays another $940.00. Each employer John works for pays into the trust fund on the base wage John earns from that employer, unlike more traditional employees who tend to work for just one employer during the year and for whom only a single maximum $940.00 may be made. The second point to consider is that the intent of the unemployment insurance system is to provide families with unemployed workers the short term relief they need until new employment can be secured. If craft workers, through no fault of their own become temporarily unemployed, the system is supposed to be there to help them. Workers in the construction
industry should not be treated differently than workers in other fields. As important as the budget, the unemployment insurance and other issues on the table in the 2011 legislature session are, there is one which could be a major political and procedural distraction. That is the so-called “right-to-work” legislation. Some call this the “right-to-work-forlower-wages” legislation. This law, in effect in many low-wage states, is intended to dismantle labor unions. Obviously, this issue will be strongly resisted by labor, and if pushed will become highly polarizing and disrupt the important work the legislature needs to do on other critical issues. It is often thought that union-busting is something employers support. Speaking for the unionized sector of Indiana’s construction industry I can tell you that is not true. Union contractors employ union workers because they choose to. They rely on craft unions to provide valuable services such as a hiring hall system that allows contractors to secure as many of the besttrained, most skilled craftsmen as they need, when they need them. The union also provides the contractor with portability. That is, the contractor can move from one geographic market to another and know he will have access to skilled craftsmen. The unions provide skill training, relieving the contractor of the cost and burden of training. We hope the legislature stays focused on the important issues facing the state and stays away from the politically divisive ones such as right-to-work. www.buildingindiananews.com
RULE OF LAW
Student Sheriffs The New Sheriff’s School gives Indiana’s newest law enforcement professionals a crash course in wearing a star in the Hoosier State.
Report Recommends Sentencing Changes
By David Wellman
he job of sheriff in Indiana these days bears little resemblance to the gig seen in old Hollywood westerns. “Today, a sheriff is a lot like a CEO,” says Steve Luce, Executive Director of the Indiana Sheriffs’ Association (ISA), pointing to financial, risk management and liability issues that have become a big part of the job. “You really have to be on top of your game.” To help sheriffs around the state – especially those newly elected to the position – get a handle on their duties, the ISA holds a New Sheriff’s School in Indianapolis every four years, the most recent of which occurred in early December 2010. The weeklong school provides both incoming and established sheriffs with education and networking opportunities designed to inform and offer solutions to the challenges they face. Many of those challenges revolve around the fact that, as the top law enforcement official in a county, sheriffs and their departments are responsible for county jails. “There are huge liability issues in running a jail,” Luce explains. “We really stress the importance of risk management because 70 percent of county lawsuits are centered around that jail.” 30
Warren County Sheriff Rusty Hart agrees. “Our biggest headache isn’t fighting crime or dealing with the public, it’s the cost and risk of the day-to-day operations of the jail,” he says. And managing those jails has become exponentially more difficult over the past couple of years as the recession delivered a double whammy to sheriffs’ departments. On the one hand, the sheriff’s department’s budget is often the county’s biggest expense, which inevitably puts it first on the list for cuts. But on the other hand, cuts to other local, state and federal services – such as psychiatric hospitals and drug treatment programs – has increased the number of sick or addicted people that sheriffs are faced with. (This hasn’t escaped the attention of the state of Indiana, which is considering significant sentencing changes to reduce costs and the prison population; see box at right.) At the New Sheriff’s School, Hart says he can see when some incoming sheriffs “realize there is a lot more to this then they thought,” he says. “The school allows us to brace them for what’s coming.” “It really amounts to training,” says Tippecanoe County Sheriff Tracy Brown. “There were 46 new
A review of Indiana’s criminal code and sentencing policies by the Pew Center on the States and the Council of State Governments (CSG) Justice Center has recommended changes in sentencing policies to reduce prison costs and prisoner populations. The report was endorsed by Gov. Mitch Daniels who forwarded it to the Indiana General Assembly for their consideration. The review found that Indiana’s prison population grew by more than 40 percent in the last 10 years – three times faster than any neighboring state – while the state’s crime rate declined slightly. The growth occurred primarily because more property and drug offenders were sentenced to prison. Without action, the population is projected to grow from approximately 29,000 today to nearly 35,000 in 2017. The report recommended that Indiana: • Improve proportionality in sentencing and ensure prison space for the worst offenders by creating a more precise set of drug and theft sentencing laws and providing judges with more sentencing options for individuals who commit the least serious felony offenses. • Strengthen community supervision by focusing resources on high-risk offenders and creating incentives for supervision agencies to coordinate better with one another. • Reduce recidivism and bolster public safety by increasing access to community-based substance abuse and mental health treatment and enabling probation officers to respond with more effective, swift and certain sanctions. Such changes would avoid spending $1.2 billion ($630 million in construction costs and $571 million in operating costs) associated with the state’s prison population. www.buildingindiananews.com
IndIana SherIffS COUNTY Adams Allen Bartholomew Benton Blackford Boone Brown Carroll Cass Clark Clay Clinton Crawford Daviess Dearborn Decatur DeKalb Delaware Dubois
SHERIFF Shane Rekeweg Kenneth Fries Mark Gorbett B.L. Pritchett John Lancaster Ken Campbell Rick Followell Tony Burns Randy Pryor Danny Rodden Michael Heaton Mark Mitchell Tim Wilkerson Jerry Harbstreit Michael Kreinhop Greg Allen Donald Lauer Mike Scroggins Donald Lampert
COUNTY Elkhart Fayette Floyd Fountain Franklin Fulton Gibson Grant Greene Hamilton Hancock Harrison Hendricks Henry Howard Huntington Jackson Jasper Jay
SHERIFF Bradley Rogers William Wayson Darrell Mills William Sanders Kenneth Murphy Walker Conley George Ballard Darrell Himelick Terry Pierce Mark Bowen Michael Shepherd Rodney Seelye David Galloway Butch Baker Steve Rogers Terry Stoffel Michael Carothers Terry Risner Ray Newton, Jr.
Sheriffs elected in Indiana last year and the responsibilities that fall on our shoulders are complex.” Many of the presentations during the event are done by existing or exiting sheriffs, he notes, giving newcomers the benefit of their experience. Other sessions are conducted by groups or agencies they will be partnering with, from healthcare and inmate health experts to the Indi-
COUNTY Jefferson Jennings Johnson Knox Kosciusko LaGrange Lake La Porte Lawrence Madison Marion Marshall Martin Miami Monroe Montgomery Morgan Newton Noble
SHERIFF Bill Andrews Stephan Hoppock Douglas Cox Mike Morris William Goshert Terry Martin John Buncich Michael Mollenhauer Samuel Craig Ronald Richardson John Layton Thomas Chamberlin Rob Street Tim Miller James Kennedy Mark Casteel Robert Downey Donald Hartman Doug Harp
COUNTY Ohio Orange Owen Parke Perry Pike Porter Posey Pulaski Putnam Randolph Ripley Rush Scott Shelby Spencer St. Joseph Starke Steuben
ana Department of Corrections to state and U.S. attorneys general. “It’s pretty dynamic and there is a lot to do,” Brown says. “It’s meant to start the conversation and get everyone on the same page.” Luce, a former sheriff himself, says one of his primary goals with the New Sheriff’s School, as well as other, annual,
SHERIFF Eldon Fancher Richard Dixon Chester Richardson III Michael Eslinger Lee Chestnut Jeremy Britton David Lain Greg Oeth Michael Gayer Steve Fenwick Ken Hendrickson Thomas Grills Jeffery Sherwood Dan McClain Michael Bowlby Kermitt Lindsey Mike Grzegorek Oscar Cowen Tim Troyer
COUNTY Sullivan Switzerland Tippecanoe Tipton Union Vanderburgh Vermillion Vigo Wabash Warren Warrick Washington Wayne Wells White Whitley
SHERIFF Bryan Kinnett Roy Leap Tracy Brown John Moses Eric Cantrell Eric Williams Robert Spence Greg Ewing Bob Land Russel Hart Marvin Heilman Claude Combs Jeff Cappa Monte Fisher Patrick Shafer Mark Hodges
Source: Indiana Sheriffs’ Association
events hosted by the ISA, is to create a more standardized sheriff’s office. “Indiana is one of only three states in which sheriffs are term-limited,” he notes, so there is going to be regular turnover in the office. The more that processes and procedures for cooperation across county and agency lines can be worked out ahead of time and presented to incoming sheriffs, the better.
New OSHA crane standards mandate increased training, communication and inspections in order to boost job site safety. By N. Joseph Hudson, REM, CHMN, Manager, Corporate Health and Safety Programs, NiSource Corporate Services
n early November of last year, the new 29 CFR 1926 subpart CC regulation from the Occupational Safety and Health Administration (OSHA) for cranes and derricks went into effect. Broadly speaking, the new standards will impact project owners, contractors and subcontractors in three areas: training and communication; documentation and inspection criteria; and equipment requirements. There were also significant changes to the rules about crane operation and power line safety.
ing order. These devices include: the crane level indicator; boom stops (not required on hydraulic booms); jib stops (if a jib is attached); foot pedal brake locks; integral holding devices/check valves on hydraulic outrigger jacks and stabilizer jacks; and a horn for the operator.
DoCumeNTaTIoN & INSPeCTIoNS
The new standards cover equipment which “can hoist, lower and horizontally move a suspended load.” This includes everything from gigantic portal cranes down to forklifts that have been fitted with a winch or hook. There are, of course, numerous exceptions. For example, helicopter cranes, permanently installed overhead bridge and gantry cranes and self-propelled elevating work platforms are all among equipment excluded from the new standards. Some equipment switches from included to excluded depending on use. For instance, mechanic trucks, which are usually included, are excluded when used in activities related to equipment maintenance and repair, and articulating knuckle/boom truck cranes are excluded when performing certain types of material deliveries at a job site. The rules also cover crane assembly and disassembly procedures as well as required safety devices for cranes. In terms of assembly and disassembly, employers can choose one of two options: follow the crane or derrick manufacturer’s procedures, or follow their own procedures. In the latter case, those procedures must be developed up by a “qualified person,” and must: prevent any unintended dangerous movement and collapse of any part of the equipment; provide adequate support and stability of all parts of the equipment; and position employees so that their exposure to unintended movement or collapse is minimized. Employers must use a “qualified rigger” for rigging operations during assembly and disassembly and other activities where workers must be in the fall zone to handle a load. Criteria for a qualified rigger is set out in the new standards. The standards also state that crane or derrick operation can not begin until all safety devices are in proper work32
Per shift, monthly and annual inspections are required by the new standards. A “competent person” must conduct a visual inspection of the equipment (including wire) in each shift in which it is used. This inspection must include: • Control mechanisms • Air, hydraulic, and other pressurized lines • Hydraulic system fluid levels • Hooks and latches. • Wire rope reeving • Wire rope • Electrical apparatus • Tires • Ground conditions • Operator cab windows • Safety devices and operational aids A competent person must also perform an inspection (covering the same elements) once a month, and a record of that inspection musty be kept for three months. Finally, a “qualified person” has to inspect the equipment annually. A qualified individual must also inspect the equipment post-assembly or if it is modified, repaired or adjusted. Some cranes have additional inspection requirements. For example, tower cranes require a pre-erection inspection after transportation to the work site and prior to erection of the crane. For certain parts, the standards establish deadlines for repair and replacement. Category 1 items such as boom www.buildingindiananews.com
hoist limiting devices, luffing jib limiting devices and anti twoblocking devices must be repaired within seven days of the discovery of a deficiency. Category II items, including the boom angle or radius indicator, boom length indicator, load weighing devices, jib angle indicator, outrigger/stabilizer position sensor/monitor and hoist drum rotation indicator, must be fixed within 30 days.
CommuNICaTIoN & TRaININg
Ensuring communication on all levels is a major focus of the new standards. The controlling entity on any job site must inform crane users and operators of any known underground hazards. This includes all information known about ground conditions, including written information possessed by the controlling employer, whether on- or off-site. Crane inspectors must have access to all documentation required by the inspection provisions, and when any necessary repairs or adjustments are needed for the equipment and alternative methods are being implemented, the employer must communicate this information to all affected employees at the beginning of each shift. If there is a safety concern, the operator must have authority to stop until a qualified person has determined that safety has been assured. The new standards also require that all crane operators be certified or qualified in the next three years. The standards provide four options for certification: by an accredited testing organization; by an audited employer program; by the U.S. military; or by a state or local government. In all cases, certification requires a written and a practical test. Employers must pay for certification or qualification of their currently uncertified or unqualified operators. All operators must be certified or qualified by Nov. 10, 2014.
PoWeR LINe SaFeTY
One of the most significant changes to come from 29 CFR 1926 Subpart CC regulation is the change from a minimum power line clearance distance of 10 feet to a minimum of 20 feet for lines of up to 350 kV. For lines from 350 kV to 1000 kV, the minimum distance is
now 50 feet. For lines over 1000 kV, the minimum distance must be established by the utility or registered professional engineer. The crane operator’s employer must identify the work zone by either demarcating boundaries and prohibiting the operator from operating past the boundaries or defining the work zone as the area 360 degrees around the equipment The employer must erect and maintain an elevated warning line, barricade or line of signs, in view of the operator, equipped with flags or similar high-visibility markings, at 20/50 feet from the power line. If the crane operator is unable to see the elevated warning line, a dedicated spotter must be used In cases where the minimum power line clearance would make it infeasible to do the work, and the utility can’t de-energize the line, hang grounds or relocate the line then, after the utility determines the minimum clearance distance, the contractor and utility conduct a planning meeting to determine all of the following are in place: • Dedicated spotter • Elevated warning line/barricade • Insulating link/device • Nonconductive rigging • Range limiter (if equipped) • Nonconductive tag line (if used) • Barricades 10’ from equipment • Limit access to essential workers • Prohibit non-operator workers from touching above insulating link • Properly ground crane • Turn off automatic re-energizer • Insulating line cover-up installed Further, the employer must train each operator and crew member on procedures to be followed in the event of contact with a power line. Such training must include: • The danger of electrocution from simultaneously touching the equipment and the ground. • The importance of remaining inside the cab except where there is an imminent danger such as fire. • The safest means of evacuating from energized equipment. • The danger of the potentially energized zone around the equipment (step potential). • The need for crew to avoid approaching or touching the equipment or load. • Safe clearance distance from power lines.
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THE BOTTOM LINE
entrepreneurs Despite tight credit conditions overall, small business lending in Indiana jumped significantly in 2010. By David Wellman
ndiana outpaced the nation in small business lending in 2010, with loans to Indiana business through U.S. Small Business Administration programs increasing nearly 28 percent versus 2009, according to fiscal 2010 (ended September 30) figures from the SBA’s Indiana District Office in Indianapolis. A total of 1,322 SBA loans adding up to nearly $340 million were made to Indiana small businesses last year. That compares to 1,035 SBA loans for $267 million in 2009. Nationally, SBA loans rose 23 percent to $1.59 billion, a 50-year high. The strong increase in SBA lending was
SMALL BUSINESS LOANS BY ECONOMIC GROWTH REGION – 2010 EGR 1 2 3 4 5 6 7 8 9 10 11
LOANS 172 119 155 92 495 72 22 38 42 44 69
$ $31,877,817 $26,999,400 $41,264,600 $27,245,600 $132,130,000 $22,439,900 $7,358,500 $11,922,400 $9,804,500 $5,986,700 $22,812,900
Source: Indiana Small Business Administration
Source: Indiana Small Business Administration
driven primarily by two factors, says Erica Passauer, Senior Vice President of Lending at the Regional Development Company (Valparaiso). The RDC is a Certified Development Company (CDC), a type of regional economic development organization licensed by the SBA to make loans under its 504 loan program. “First, in the American Recovery and Reinvestment Act (ARRA), there was a significant amount of fee waivers and increases in guarantee amounts,” she says. “Those made SBA loans more powerful and desireable.” Second, she continues, was that banks were looking to strengthen their loan portfo-
TOP 10 ARC LENDERS – 2010 RANK 1 2 3 4 5 6 7 8 9 10
INSTITUTION Shelby County Bank Centier Bank Chase Bank N.A. Horizon Bank N.A. First Harrison Bank 1st Source Bank Lafayette Savings Bank, FSB Professional FCU Keybank N.A. Wells Fargo Bank N.A.
25 22 10 9 6 5 4 4 4 6
$871,500 $687,007 $308,100 $301,010 $210,000 $147,700 $140,000 $140,000 $140,000 $138,700
Source: Indiana Small Business Administration
Number of Veteran-Owned small business loans in 2010 for a total amount of $12,572,372.
lios, and the increases in guarantees offered them a way to do so with little risk. “Depending on the loan it could be up to 90 percent guaranteed,” Passauer notes, “so even if the business failed the bank would still recoup most of its investment. Banks are willing to help but are still very afraid, and those guarantees make banks feel a lot better about lending.” Most of Indiana’s loans in 2010 – 79 percent for $268 million – fell under the SBA’s 7(a) loan program, which provides financing for a variety of general business purposes. Loans in the 504 program, which are specifically aimed at construction and expan-
TOP 10 SMALL BUSINESS LENDERS BY DOLLAR AMOUNT – 2010 RANK 1 2 3 4 5 6 7 8 9 10
INSTITUTION Indiana Statewide Certified Development Corporation Premiere Capital Corporation Chase Bank N.A. Bank of Indiana N.A. Fifth Third Bank The Huntington National Bank First Capital Bank (First Colorado) Keybank N.A. 1st Source Bank Regional Development Company
$ $25,408,000 $21,999,000 $13,965,200 $13,676,300 $12,672,400 $12,254,500 $11,972,000 $11,180,300 $10,390,900 $9,694,000
Source: Indiana Small Business Administration
Number of Woman-Owned small business loans in 2010 for a total amount of $14,149,000.
sion, increased eight percent over 2009 to $71 million last year. Banks also lent Indiana businesses more than $4.6 million through the America’s Recovery Capital, or ARC, program, another part of the ARRA. This program provided deferredpayment loans of up to $35,000 to help small businesses make payments on existing small business debt. Forty-four SBA loans for more than $21 million went to minority- and women-owned firms in Indiana in 2010. Almost twice that number of loans – 86 – were made to veteran-owned companies, mostly under the SBA’s Patriot Express Loan Initiative. Created in 2007, the Patriot Express program provides an expedited process for loans of up to $500,000 for veterans, reservists and their spouses. The program, which has provided nearly 7,000 veterans with $560 million nationwide, was just renewed in early December for three more years. Unsurprisingly, the Indianapolis area soaked up the biggest single chunk of SBA loans in 2010. More than $65 million was disbursed to 226 businesses in Marion County alone. Neighboring counties Hamilton, Johnson and Hendricks also finished in the top 10 Indiana counties for SBA loans, combining for another 184 loans for $51.4 million. Northern Indiana was also well-repre-
TOP 10 SMALL BUSINESS LENDERS BY NUMBER OF LOANS – 2010 RANK 1 2 3 4 5 6 7 8 9 10
INSTITUTION Chase Bank N.A. The Huntington National Bank Superior Financial Group, LLC 1st Source Bank Keybank N.A. Star Financial Bank Premiere Capital Corporation Indiana Statewide Certified Development Corporation Centier Bank Fifth Third Bank
Source: Indiana Small Business Administration
TOP 10 SMALL BUSINESS LOAN COUNTIES BY DOLLAR AMOUNT – 2010 LOANS 116 99 76 61 53 51 50 44 36 35
Number of Minority-Owned small business loans in 2010 for a total amount of $7,531,000.
sented among leading SBA counties, with Allen, Lake, St. Joseph and Elkhart together accounting for 277 loans for $62 million. Only two counties outside these regions, Delaware (Muncie) and Vanderburgh (Evansville) ranked in the top 10 for SBA loans last year. In total, those top 10 SBA loan counties accounted for more than $201 million, or nearly 60 percent, of all Indiana SBA loan dollars. Overall, at least one SBA loan was made in 80 of Indiana’s 92 counties in 2010. Megabanks such as Chase and Fifth Third were prominent among top SBA lenders in 2010, but some local institutions such as Danabased Bank of Indiana, 1st Source Bank (South Bend), Fort Wayne’s Star Financial and Merrillville’s Centier Bank also stepped up activity last year. Among banks making ARC loans, the state’s top player was the Shelby County Bank, which made 25 ARC loans for $871,500. Whether the growth in SBA lending will continue in 2011 remains an open question. The fee waivers and increased guarantees contained in the ARRA expired at the end of the federal government’s fiscal year last September, and while a temporary extension was granted to deal with a backlog of pending loans, that ran out at the end of 2010. Renewing the waivers and higher guarantees “is not currently being discussed,” Passauer says. There is one potential new development that could launch another surge in SBA lending in 2011. The Small Business Jobs Act signed into law last year included a provision expanding 504 loans to allow them to be used to refinance existing debt. “That could equal a huge number of deals,” she says. However, at press time Passauer remained cautious about the impact since the precise rules about what could be done were still being finalized at the federal level and were not expected to be issued until sometime in the first quarter of 2011.
RANK COUNTY 1 2 3 4 5 6 7 8 9 10
Marion 226 Allen 87 Hamilton 106 Lake 92 Johnson 36 Hendricks 42 Vanderburgh 33 Delaware 32 St. Joseph 53 Elkhart 45
$65,249,900 $22,290,200 $21,163,900 $21,047,307 $17,221,200 $13,003,900 $11,711,500 $10,636,400 $10,059,900 $8,620,200
Source: Indiana Small Business Administration
Source: Indiana Small Business Administration
Temporary staffing and outsourcing services are increasingly popular options for companies who need to ramp up but still aren’t sure about the recovery’s strength. By David Wellman
hen it comes to improvements in the economy, skepticism remains the order of the day among Indiana business owners. Predictions of weak growth have led to a great deal of exhaling and some guarded optimism, but not surprisingly most owners remain in a “Missouri” state of mind: Show-Me. One result has been a reluctance to expand payrolls even as business starts to pick up. Instead, companies have been turning to temporary staffing and outsourcing services. “They want to get a feel for what will happen a few months down the road,” says Debbie Davis, President of Davis Staffing. The Olympia Fields, IL-based company, which serves the Chicago and Northwest Indiana markets, had about 575 people working in temporary positions at the end of 2010, “and that’s probably the highest number we have seen since summer of 2008,” Davis says. John Elwood, President of Elwood Staffing (Columbus, IN) has seen the same pattern, both in Indiana and the ten other states in which Elwood, thanks to a pair of acquisitions last year, now operates. “The American Staffing Association has a barometer of staffing for the whole country that was benchmarked in June of 2006 when things were really popping,” he says. “That stayed high for 2006 and 2007, and then took a tumble in the last quarter 36
of 2008. But it bottomed out in May /June 2009. Elwood had a strong second half of 2009 and we have been steadily increasing our number of placements through 2010.” Put in terms of sales, Elwood estimates that the staffing industry nationwide was up 25 to 30 percent last year. DEMAND SOARS Staffing firms aren’t the only ones benefitting from a business community that remains wary of the recovery, yet still needs to ramp up operations. LeadJen, an Indianapolis company that specializes in sales lead generation, saw demand for its services soar over the course of 2010. “We start-
ed the year with 20 people,” says President Jenny Vance. As of last November, that had risen to 50, and the company was on track to triple its starting head count by the end of the year. Both Davis and Elwood point to Indiana’s manufacturing and warehousing/logistics industries as key drivers of temporary staffing in the state. “We specialize in suppliers to the automotive and warehousing industries, and that’s where we see our biggest increase,” Davis says. At least as far as staffing is concerned, warehousing and logistics “has come back in a lot of ways to pre-recession levels,” Elwood adds. More broadly, companies are also starting to boost investments in sales and marketing. 2010 was “vastly different than 2009,” Vance says. “In 2009 it was hiring freezes and travel freezes; in 2010 we have seen investment trending in the right direction. In 2009, we had several clients who had to put lead generation on hold; in 2010 it was the first thing they turned back on.” Another reason that staffing and outsourcing are seeing growth is that more and more companies are coming to realize that these industries can provide much more than entry-level help. “Fifteen years ago you had to explain that you could recruit and place a variety of skill level jobs,” Elwood recalls. “Today we have to do much less of that – by and large companies get it.” Some myths still persist, however, such as www.buildingindiananews.com
the idea that “we only get people who are unemployed,” he adds. In fact, many people Elwood places have college degrees, but for reasons of their own are not seeking full-time work. Some companies, like LeadJen, actively target such people. “We have identified a great niche: women who have had a sales and marketing career, but stepped away to start a family and now want to get back in,” Vance explains. With LeadJen, they can return to work on a parttime basis, which still gives them time with their families and also helps moderate the high-burnout nature of lead generation jobs. “We have people have been with us for five years,” Vance says. REDUCING COSTS This development has only served to enhance the ability of staffing and outsourcing companies to reduce their clients’ human resources costs. “We have people with MBAs,” Elwood says. “We can probably fill any job faster than most companies can because it’s our core competency.” Vance notes that while the costs of outsourcing sometimes look higher, companies tend to overlook two key areas of savings: attention and turnover. “Companies say that people are doing their jobs 30 or 50 percent of the time,” she says, with the rest of their time spent in everything from meetings to water cooler conversations. “In the right outsourced environment, that should be 95 percent.” And for high-pressure positions like inside sales, where turnover can hit 100 percent annually, “outsourcing in a bargain when you look at the opportunity costs of having no one on the phone, plus the cost to train someone new.” For companies interested in bringing aboard temporary help or farming out key functions, partnering with the right company is critical for success. “We want customers who want to create a partnership, not just www.buildingindiananews.com
a warm body to do a job,” Davis says. Good questions to ask when shopping for a temp service, she says, include: • Do they have a safety program in place? A drug-screening program? Do they verify employees’ education claims? Don’t just take their word for it, ask to see documentation. • Do their employees have benefits? • How to they pay their employees? Is it direct-deposit or a debit card, or old-fashioned paper checks? • Are their services available after normal business hours? Elwood advises that companies should always check a temporary staffing company’s references, and make sure they meet requirements for things like liability insurance and worker’s compensation insurance. “One thing that is often overlooked is the financial strength of the staffing company,” he adds. “Sometimes staffing companies have a hard time getting good banking relationships. So, do they have trouble meeting payroll?” Many did, he notes, and the result was that “a lot of staffing companies went out of business during the last recession.” On the outsourcing front, Vance echoes Davis that companies should look for strategic partners, not just a company that reports putting in lots of calls or hours. “I would ask, what metrics will you be capturing for us?” she says. “What value propositions are people responding to? What industries are responding? What will we get beyond appointments? And how will you provide that data back to me?” And like Elwood, Vance advises checking the company’s track record. Companies are often reluctant to outsource key functions because they have to trust someone who is not in the office to be doing their job. “When clients hear what we’ve been involved in, it gives them a lot of confidence,” she says. 37
SMALL BUSINESS SPOTLIGHT
Making a Innovations in Learning is Northwest Indiana’s first center providing intensive applied behavioral analysis services for autistic children.
By David Wellman
r. Bridget Harrison never expected to become a CEO. “I was just going to have a small private practice,” she says. But when Harrison, a clinical psychologist, partnered with counselor and therapist Sarah Schaefer to open Innovations in Learning in Hobart in 2005, she began down a path that, today, has led her to a 12,000-square-foot facility in Merrillville with more than 50 employees and a payroll over $1 million annually. “We started in 2005 at the corner of Randolph and Route 30 in Hobart,” she recalls. With the aid of a small business loan from Centier Bank, facilitated by the Regional Development Company (RDC) in Valparaiso, the partners purchased one of the two 1,500-square-foot condos that made up the building’s second story. It wasn’t long before the need for more room led them to buy the other condo as well, doubling space to 3,000 square feet. “We operated from there until we purchased here [in Merrillville] in January of 2010,” Harrison says. That purchase, funded by another small business loan from the RDC and Centier, quadrupled space for the rapidly growing company. “We had 15 or 20 employees in the old location,” she says. “Now we have 52 here. It’s been absolutely incredible.” 38
Harrison cites two factors in Innovation in Learning’s success. First, “I have a fantastic team,” she says. Second, “we do provide a service that’s not well-served in Northwest Indiana. Indianapolis has five or six centers like ours. We should have three – at least.”
Historically, about four out of every 10,000 kids were diagnosed as autistic. Over the last 15 years, that rate has risen to three to six children out of every 100. While Innovations in Learning offers a number of behavior therapy and mental health services for children and adults, its specialty is intensive applied behavioral analysis (ABA), generally considered the most effective therapeutic approach to treating autism. If begun early in an autistic child’s life, ABA stands a good chance of building their verbal and social skills to the point where they can lead a normal life, or something close to it. About 60 percent of autistic children can significantly benefit from ABA, Harrison says. Sadly, the need for such intervention is increasing. For reasons that are not yet understood – theories range from vaccines
to diet to better diagnoses – autism rates have been rising since the mid-Nineties. Historically, about four out of every 10,000 kids were diagnosed as autistic. But over the last 15 or so years, that rate has risen to three to six children out of every 100. Complicating this increase is the challenge of paying for treatment, since some health insurance plans decline to cover treatment of autism through ABA because they regard it as educational rather than medical in nature. A 2007 survey of employers with 100 or more workers found that only 62 percent had plans offering coverage of autism treatment. However, an increasing number of states – of which Indiana was the first in 2001 – are mandating that insurance companies cover treatment for autism. And during the course of 2009, Harrison also discovered that Medicaid would cover ABA treatment. Because of that, “we now have kids who are able to receive treatment even though they are on Medicaid, so it isn’t just affluent families who can afford it anymore.” Because ABA involves 25 or more hours a week of one-on-one sessions with a therapist, costs can easily run into the tens of thousands of dollars, but Harrison argues that in the long run both insurers and taxpayers come out ahead. “If they don’t get treatment now, it will cost a lot more www.buildingindiananews.com
when they are 16 and need full-time care,” she points out. About one-third of the 21 children currently in the ABA program at Innovations in Learning are covered by Medicaid. The additional space provided by the new Merrillville location was key to allowing some of those and other children to participate. “We still have a wait list, but it’s not as extensive as it once was,” Harrison says. “At one point it was up to 12 months.” Demand, though, has only grown and she believes their waiting list will soon
start to lengthen again. The new space has also allowed Harrison to add day services for adults with autism, learning disabilities and other conditions such as Down Syndrome. “Adults are very underserved, so when I got the larger building I wanted to offer a quality program for adults,” she says. There were 25 adults in the program at the end of 2010 and Harrison was expecting another eight to join in early 2011. For now, Harrison has no plans for further expansion, preferring instead to allow
Since its founding in 2005, Innovations in Learning has gone from a 3,000-square-foot space in Hobart to this 12,000-square-foot office in Merrillville.
the company to digest the more than half a million in loans it took out to fund its two locations (the former offices in Hobart are for sale, but remain open offering outpatient services). She says the whole venture would not have been possible without the support of the RDC and Centier. “The RDC was absolutely wonderful,” she says. “We couldn’t have done it without them because there’s no way this could have gone through as a traditional bank loan.” Centier, meanwhile, has been generous with advice as well as financial support. “It was sort of a trial by fire to become a businessperson,” Harrison says. “They have provided me with good mentoring.” And in the end, the CEO of Innovations in Learning still has one thing in common with the woman who was just going to have that small private practice: job satisfaction. One of the kids currently in the ABA program, who arrived completely nonverbal a year ago, is on course to graduate out and move into the regular school system next fall. “He will probably need some tutoring but his family is thrilled,” Harrison says. “That’s the best thing – no other job makes the kind of difference we get to make.”
JW Marriott Indianapolis Contractor list Construction Manager Hunt Construction Group Associate Construction Managers Finch Constructors Inc. Mezzetta Construction Services, Inc. The Smoot Construction Company Mass Excavation kreager Brothers Excavating Incorporated Earth Retention Beaty Construction Inc. Temporary Construction Dewatering kelley Dewatering and Construction Company Temporary Construction Elevators, Freight Elevators Metro Elevator Co., Inc. Temporary Electric ERMCO, Inc. Site Utilities Poindexter Excavating, Inc. Concrete Structure & Site FA Wilhelm Construction Co., Inc. Structural Steel Fabricators Geiger & Peters, Inc. Steel Erector Millenium Steel Service, llC Hoisting Maxim Crane Works, l.P. Garage Masonry Batts Construction Inc. Garage Coating & Caulking VTI Contracting Garage Level & Podium Drywall Partition Quality Interiors, Inc. Garage Level Flooring McCammack Tile, Inc. Roofing, Tower & Podium Henry C. Smither Roofing Company, Inc. Central Plant HVAC Equipment General Piping, Inc. Tower & Podium HVAC Dry Bright Sheet Metal Company, Inc. Tower HVAC Wet, Plumbing International Piping Systems, Inc. Podium HVAC Wet & Plumbing North Mechanical Contracting, Inc. Podium Tile Flooring & Walls Santa Rosa Tile Supply Tower & Podium Electric Barth Electric Co., Inc. Bridge Electrical Brook Hayden Electrical Co. Bridge General Trades Glenroy Construction Co., Inc. Exterior Bar Masonry Broady-Campbell, Inc. Millwork D&l Wood Products, Inc. Fire Protection Dalmatian Fire, Inc. For more contractors go to www.buildingindiananews.com
Into The Blue Soaring 375 feet into the sky, the JW marriott Indianapolis sets a new standard for both marriott hotels and Indiana’s capital city.
By David Wellman
ith the long-anticipated opening of the JW Marriott Indianapolis, the capital of Indiana’s quest to become a bona-fide convention town took a thousand-room leap forward. “It makes Indianapolis a new destination for large conventions because we haven’t had the hotel room inventory in the past,” says Cory Chambers, Director of Sales and Marketing for the new hotel. In fact, he adds, the majority of business the hotel had booked by late last year for 2011 and beyond – more than half a million room nights across the entire Indianapolis Marriott Place development – “is above and beyond what the city could previously hold.”
Its construction went above and beyond as well. The $450 million hotel required the resources of 265 subcontractor firms (some of which are listed at left and on page 42) and gobbled up more than 1.5 million man-hours of work, according to Bill Sewall, Construction Manager for Hunt Construction Group. The Indianapolis-based company, a fixture on the city’s construction scene since 1944, served as Construction Manager on the project. “It’s been an exciting project,” he says, “and it was a great honor to participate.” Of course, excitement takes on a certain amount of relativity on a project of this scope. In fact, with 29 floors of similar, if not identical, guest rooms, avoiding boredom and burnout was a factor. “So we carved it www.buildingindiananews.com
ing – for a multi-day event. “It’s the first time the group has been in Indianapolis,” Chambers says, and so represents the first fruits of the project. ALREADY A DRAW It won’t be the last. Already, the combination of the JW Marriott and the massive expansion of the nearby Indiana Convention Center have helped Indianapolis score multiple new events, including the National Organization of Black Law Enforcement Executives’ (NOBLE) annual convention in 2015, and the Pumper & Cleaner Environmental Expo, which will begin a three-year run in Indianapolis in February of 2012. The NOBLE convention is expected to attract more than 1,500 attendees, book 5,000 hotel room nights, and generate more than $2 million in direct visitor spending. “Indianapolis’ growing convention facilities, its central location, and first-class tourism offerings make it an ideal location to host our annual convention,” says NOBLE Executive Director Jessie Lee. The Pumper & Cleaner Environmental Expo, the 75th largest tradeshow in the U.S. and one of the 50 fastest-growing, attracts more
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Dalmatian Fire, Inc. up into zones that we turned over on a regular basis to White Lodging to start their activities,” Sewall explains. “Basically what we were doing was to make the building smaller so that at the end we weren’t trying to finish a million square feet, but just trying to finish a kitchen.” Getting finished on time became even more important last fall after the hotel moved its opening date up four days to accommodate 1,200 members of the American Association of Community Colleges who will begin arriving Feb. 6 – just two days after the Feb 4. openwww.buildingindiananews.com
Fire Sprinkler Installation 317.299.3889 www.dalmatianfire.net
Finch Constructors, Inc. Mechanical, Electrical & General Contracting 317-916-6770 www.m-r-const.com
Construction Services 317-328-8003 www.mcfsi.com
JW Marriott Indianapolis 41
destination now is that our brand exceeds expectations,” Chambers says. “So many people have never been here or have a perception of it as a small Midwestern city. Now we have the 16th-largest convention center, the biggest JW Marriott in the world and a vibrant downtown with 200 restaurants within walking distance.”
JW MARIOTT INDIANAPOLIS
BY THE NUMBERS
• Largest JW Marriott hotel in the world (# of rooms) • 1,626 total rooms including: - 1,005 in JW Marriott Indianapolis - 297 in Courtyard by Marriott Downtown Indianapolis - 168 in Fairfield Inn & Suites by Marriott Downtown Indianapolis - 156 in SpringHill Suites by Marriott Downtown Indianapolis • 950 underground parking spots • More than 700 permanent jobs • Workforce will generate more than $4.3 million in state and local income taxes within the first five years • Three restaurants - Osteria Pronto (~285 seats) - High Velocity (~285 seats) - Tavern on the Plaza (~100 seats) • 375 feet tall with 34 stories (tallest hotel in Indianapolis) • 104,000+ square feet of meeting and event space including: - 40,500-square-foot Grand Ballroom (largest in the state) - 20,700-square-foot Junior Ballroom - 20,000-square-foot area of exhibition space - 23,000 square feet of additional meeting space than 12,000 attendees and will generate an estimated $8 million a year in visitor spending. “With its first-tier convention facilities, convenient hotel skywalk system, and compact downtown core, Indianapolis is the perfect home for our thriving expo,” adds Bob Kendall, CEO of Cole Publishing, owner of the Expo. “The thing about Indianapolis as a 42
INDIANAPOLIS ICON The JW Marriott itself is almost certain to become an iconic part of the Indianapolis skyline. Not only is it the tallest hotel in the city, but it is sheathed in a striking blue glass facade made up of 7,300 blue-colored glass panels. Each panel, supplied by ASI Limited (Whitestown) is four feet by ten feet and weighs approximately 800 pounds. If laid end-to-end, the panels would stretch nearly 14 miles. “I love to look at it,” says Robert Finch, President of Finch Constructors, an associate construction manager and provider of mechanical-electrical-plumbing (MEP) supervision on the project. “Working on this project with Hunt Construction Group was just a monumental opportunity for us.” One of the first African-American firms to provide MEP supervision, Finch has worked with Hunt for more than two decades, and had prior experience with most of the subcontractors on the project as well. Still, given the size of the job, he admits it was a challenge at the start simply getting everyone on the same page, “but you always have that at the beginning of any project, and everyone wanted to do a good job.” Planning and coordination were crucial to the project’s success, Sewall says. “White selected the design and construction management team early enough for us to get involved in the early design meetings,” Sewall recalls. “So we gained an intimate knowledge of what they were looking for.” Hunt subsequently set up and managed a design assist program. “That was a good opportunity to get contractors up to speed so that the project was contractor-friendly,” he explains. Under the design assist program, the architect would take projects to the design development phase and then bids would be solicited from contractors based on that. The winning contractors would then work with the design firm to advance the plans to a final version. “It allows you to look at more efficient ways to do things,” Sewall says. “You might
change a pipe size so it becomes an off-theshelf piece or find places where you could prefabricate some pieces.” Hunt also met regularly with teams working on the adjacent expansion of the Indianapolis Convention Center to help ensure that the two projects weren’t stepping on each others’ toes. “We hit a lull in the economy so while both projects were significant in size, the benches were full and we both got our pick of the litter with tradesmen and tradeswomen,” Sewall says. “We also paid attention to our prebid schedules so we did not clash with bid dates or prebid meetings.” To make sure everyone stayed safe on the job site, Hunt tapped Mezzetta Construction Services to assist with its safety program and manage the contractors’ insurance program. “It was a great project, and we were privileged to be a part of a landmark building,” says co-owner Remo Mezzetta. The Hispanic, woman-owned firm also served as an office manager on-site and as a labor service to project contractors. “Prior to this we came off the Lucas Oil Stadium project as assistant construction manager,” he says. “We have a long relationship with Hunt.” Like most new structures today, the JW Marriott Indianapolis incorporates a number of green building features, ranging from low-flow water fixtures and toilets to energy-saving LED lighting. Both guestrooms and staff areas incorporate motion-detectors to automatically adjust thermostats and lighting when they aren’t required. $3 BILLION IN INVESTMENTS In order to spread the word about the new hotel, Marriott launched an aggressive direct sales effort and even brought in key convention and meeting planners to see the facility as it was being built, and the surrounding area. “We needed to let them know that they could now consider Indianapolis,” Chambers says. The Indianapolis Convention & Visitors Association and the Indianapolis International Airport have been key partners in this effort, he adds. “They have just done a fantastic job,” he says. “If you put it all together – the new airport, the new convention center, the new NFL stadium and then the Marriott – you have $3 billion in investment. There are few places outside of Las Vegas that can say that they have gone through that kind of reinvention in the last few years.” www.buildingindiananews.com
. e r a c t n ie t a p g in m r o f s n a r t is ls a it p s o H t is d o h t e M Methodist Hospitals is the first in Northwest Indiana to implement Epic hospitalwide. This advanced technology solution creates a single, secure electronic record for every patient, and gives Methodist physicians and staff real-time access to complete patient records for every hospital department and specialty. That means… • Shorter Waiting Times • Less Time Documenting Care, More Time Giving Care • Enhanced Patient Safety • Streamlined Registration
Methodist: Leading the way to better health.
Nwww.buildingindiananews.com ORTHLAKE CAMPUS
S O U T H L A K E C A M P U43S
Family Express Headquarters Contractor list General Contractor larson-Danielson Construction Co., Inc. Architect
Design Organization Testing Alt & Witzig Engineers Site Clearing Pavey Excavating Structural Steel kerrCon Roofing Charles Glulth & Son Roofers, Inc Plumbing & HVAC Circle “R” Mechanical, Inc. Electrical
Building the front façade of the new Family Express headquarters took careful planning, says Terry Larson, Owner, Larson-Danielson Construction, since the roof drained to the front of the structure.
Dodrill Electric, Inc. Drywall & Acoustical Huggett Betten CMU Half Highs Illiana Block and Brick Tile & Resilient Flooring Midwest Tile & Interiors Operable Panel Partitions Modernfold Doors of Chicago, Inc. Sectional Doors Overhead Door of South Bend Painting Stan’s Painting & Decorating, Inc. Glass & Glazing Trout Glass & Mirror, Inc. Project Screens & Roller Window Shades SPD Textile & Drapery, Inc. Fire Protection US Fire Protection of Illinois, Inc.
Family Home Family Express’ new corporate headquarters reflects the growing Indiana retailer’s focus on its customers and its brands. By David Wellman www.buildingindiananews.com
ife is full of surprises – like the one which can be found by just walking in to Family Express’ new corporate headquarters on state route 49 in Valparaiso. From the outside, it’s an unassuming tan building that, at first glance, might be mistaken for a library. But take one step inside and you are met by a space that is at once vast but warm, and modern yet elegant. The sudden, striking transition is intentional, says architect Peter Andreou, Associate Principle at Design Organization: “We wanted to have that ‘wow factor’ as soon as you come in.’” That wow factor reflects what Family Express wants its customers to experience every time they walk into one of its 52 Indiana stores. It took “quite a few conversations” with President and CEO Gus Olympidis to get
The mock store provides a full-scale opportunity for training.
vehicles, but also in every in-store interaction its 500 employees have with consumers. So it’s no surprise that the heart of the new corporate headquarters is a hightech learning center and a full-scale mock Family Express store, complete with gas pumps and fully functional restrooms. The mock store is actually the one piece of the new headquarters that was already there when construction began. “They did have the store there when we started, and that was brought into the remodeling process,” recalls Terry Larson, Owner, Larson-Danielson Construction (La Porte), which handled the job. “It was one heck of a transformation. Before, it was just a typical manufacturing/warehouse facility. Now it’s totally different.” “The whole scheme revolves around the training store,” says Andreou. “You can see it no matter where you are.” The
large training room can be split into two smaller conference rooms, Larson notes, and boasts PC workstations at every seat, allowing trainers to focus on the material and not moving bodies around. In early 2011, Family Express plans to take the next step, placing PCs tied into its training system in the back rooms of every store to allow for online training and re-certification of associates in the field. “Bringing the living brand into the model is much more profound than just saying, ‘customer service is a good thing,’” Olympidis says. “You won’t find anyone in this industry who doesn’t think customer service is a good thing. With a living brand – think Southwest Airlines, Disney, Nordstrom – all those customer service occasions revolve around a very special person.” To find those people, Family Express
Visitors to the new Family Express headquarters are greeted by the company logo and brands floating in a glass pane.
his sense of the company’s culture and then incorporate that into the design, says Interior Designer Michael Davis. “Listening to his vision and the history of Family Express brought us to the point where we couldn’t do any less than our best,” he says. Central to that vision is Family Express’ “living brand” strategy, which emphasizes building and reinforcing a brand not only through traditional advertising and marketing www.buildingindiananews.com
Design Organization, Inc. Architecture & Interior Design 219.476.1400 www.designorg.com
Larson-Danielson Construction Company, Inc. General Contractor 219.362.2127 www.ldconstruction.com
The reception area of the new Family Express headquarters features a curved reception desk beneath a “cloud” opposite a sweeping staircase to the second level.
A view of the main floor from atop the stairs to the second level. Through the windows in the center can be seen the mock training store, complete with cars and gas pumps.
The wellness center, which features a separate entrance so it can be accessed after hours. “In the near future I believe a health workforce will amount to a competitive advantage,” says Family Express President and CEO Gus Olympidis.
rigorously screens applicants. “Often, our industry has functioned as last-resort employment,” he says. Not at Family Express. “We screen 50 people to qualify one person. You can’t create a human inclination toward a living brand; we have to identify people with that inclination toward relationshipbuilding and then provide an environment where than inclination can flourish.” As human resources challenges go, it’s an admittedly daunting task, and all the more so because Family Express isn’t the only
company to have adopted this approach. “In some markets we find Walgreens hunting for the same people, in which case we may have to screen 100 to 150 people to find one,” Olympidis says. The company has deployed online screening technology to help manage the process, but despite increased cost and complexity, Olympidis says the results speak for themselves. “Our turnover is onefifth or one-sixth of the industry’s and customers choose us over our competitors, so you can argue that we are saving a fortune.”
Those who pass the initial screening are invited into an extensive training program touching on everything from brand management to conflict resolution to effective store greetings; only about 75 to 80 percent of those who enter complete the program, Olympidis says. The success of this approach has allowed Family Express to expand from its Northwestern Indiana base as far east as Plymouth and as far south as Lebanon on the outskirts of Indianapolis, and placed it at the
Building our track record on 80 years of client satisfaction.
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top of its peer group nationwide as well. “Family Express is probably one of the top five or ten most-successful [convenience store] operators in the under-200-stores category,” says Mitch Morrison, Group Editor at CSP Information Services (Milford, CT), publisher of CSP Magazine, the leading convenience retailing trade magazine. “Though they only have 52 stores, they operate like a 200- to 300-store operator,” Morrison says. “That’s because they are willing to make the kind of up-front investment that other c-store operators their size are either unwilling or unable to make.” One example he cites is Family Express’ logistics. “Family Express is totally vertical,”
line for purchases of select items in-store, with a mobile phone app. “We are the first in the country to be able to zap your F.E. Perks from your hand-held so you don’t need your card,” Olympidis says. Instead, the app presents the bar code that would normally be on the card for scanning. The app also lets consumers check gas prices at any Family Express location and submit comments or feedback. And since like any loyalty card it tracks consumers’ purchase habits, it allows Family Express to deliver relevant coupons based on individual customers’ purchasing history. These are delivered directly to, and are
redeemable from, the phone as well. “This allows us to network aggressively with our customers,” Olympidis says. “It’s a new frontier for consumer engagement.” In yet another first, in early 2011 Family Express will debut a branded dispensed oatmeal in its stores. Similar in appearance to a fountain drink dispenser, the oatmeal machine will offer three flavors. “It’s never happened before in a c-store,” Olympidis says. “People who have tried it loved it, and it will provide a healthy breakfast alternative for healthconscious consumers.”
The Book LisT
Recommended reading from gus olympidis, President and Ceo of Family express. •The Customer-Driven Company: moving From Talk to action by R.C. Whiteley •good to great: Why Some Companies make the Leap… and others Don’t by Jim Collins •Pour Your Heart Into It: How Starbucks Built a Company one Cup at a Time by Howard Schultz and Dori Jones Yang •Blue ocean Strategy: How to Create uncontested market Space and make Competition Irrelevant by W. Chan Kim and Renée mauborgne
Morrison says, pointing to how the company has consolidated direct store delivery (DSD) shipments at a dedicated distribution and manufacturing facility. “That eliminates a lot of costs on the front end, and there are very few companies of their size that have done that,” he says. By consolidating DSD deliveries at a central location, Family Express was able to replace the 25 weekly deliveries from various suppliers to each store with a single daily delivery. This is both more efficient and provides for fresher product. That consolidation facility is, for the moment, adjacent to the new headquarters, but Family Express is in the process of connecting the two buildings because it needs the additional warehousing space. When that project is complete, the entire complex – the consolidation/distribution/warehouse facility, a commercial bakery where it produces items like its signature square doughnuts, and the new headquarters – will total about 110,000 square feet. Family Express also continues to push on the tech front, expanding its F.E. Perks program, a loyalty program that provides cents-off gasowww.buildingindiananews.com
Special RepoRt: Education in indiana
With “middle-skill” jobs growing fast, businesses, educators and lawmakers in Indiana are joining forces to expand opportunities to train and learn.
By David Wellman
he changing nature of the Indiana job market is sparking new approaches to job training and education. From manufacturing and logistics to health care, the next generation of jobs will require both a higher level of basic education, often including at least some
college, as well as more “lifelong learning” programs to keep skills up-to-date. With education funding still being squeezed by the economy, educators and employers are joining forces to bridge the gap and ensure that Indiana’s work force remains competitive in the 21st century. www.buildingindiananews.com
The scope of the challenge was outlined in a recent report released by the National Skills Coalition (NSC), in partnership with the Indiana Institute for Working Families, which identified 2011 as the midpoint of shifting job and education trends. According to the report, there will be nearly half a million more “middle-skill” job openings – jobs requiring more than a high school diploma but less than a four-year college degree – in Indiana five years from now versus five years ago. “We have released similar reports in other states, and in Indiana about 55 percent of jobs are middle-skill,” says the NSC’s Andrea Ray. “That’s a larger share than the neighboring states, which are 51 to 53 percent. But only 49 percent of Indiana workers have the necessary training for these jobs.” Investing in training and development to bring that number up is hampered not only by cuts in education spending, but also because state education spending isn’t normally focused on adults and middleskill job preparation. “Nearly two-thirds of the work force that will be working in 2020 was already
working in 2005,” Ray points out, “so investing in K-12 education won’t help them. But in Indiana, as in most states, the money goes to kids and four-year colleges.” Legislators are working on a fix. “We fund higher education by a formula based on a number of factors and one factor that
The number of four-year grads continues to decline while demand for two-year degrees and adult education has grown. weighs heavily is, how many students do you graduate in four years?” explains Karen Tallian, Indiana State Senator from District 4. However, the number of four-year grads continues to decline while demand for financial aid for two-year degrees and adult education has grown. “We are trying to figure out how to change that formula to reflect adult learners because right now the money available for four-year degrees isn’t available for that,” Tallian says. “We need to change that so people can go back for retraining.” Tallian has also proposed allowing
entities other than local school districts to provide adult education programs. Currently, funding for adult education comes from a combination of state funds and matching federal dollars, but under Indiana law only school corporations can access the state monies. However, the federal funds can also be used by nonprofit organizations. Tallian introduced Senate Bill 287 in January, which would allow other providers such as WorkOne to access state education funds if the local school corporation cannot meet the adult education demand. While the state tinkers with the system, some companies are themselves taking the lead role in training employees and keeping their skills current. Indianapolis-based AIT Laboratories, which conducts compliance monitoring, forensics, and clinical and pharmaceutical testing, cites its work with Purdue University’s Technical Assistance Program/Manufacturing Extension Partnership (TAP/MEP) for helping to land it next to the likes of Microsoft and UPS on Training magazine’s list of the top 125 U.S. companies for excellence in employer-sponsored training and development programs.
“Training is supported and administered by a group of 83 subject matter experts who deliver training on a variety of topics. The collaboration and team environment is what will continue to make this program successful,” notes AIT Training Coordinator Kathy Lee. AIT offers employees many training options including the Training Within Industry (TWI) certification from Purdue’s TAP/ MEP. TWI uses existing training methodologies to improve quality, increase transfer of knowledge and heighten employee engagement. New employees to AIT undergo an extensive threeday training session to learn about all aspects of the business. Managers and supervisors are also involved in the company’s Leadership Development Program, and the company regularly invites community leaders to speak to the group to provide insights into their success. Purdue has also seen enthusiastic response from companies around the state to its Six Sigma training program. Six Sigma is a customer-focused waste and variation reduction program combining a detailed roadmap and statistical tools to solve critical business issues. Successful Six Sigma projects produce measurable results and help increase a company’s skills in process optimization and continuous improvement. “It’s one thing to talk about it, but we are seeing real results from this partnership with Purdue TAP/MEP,” says Wendell Aldrich, Plant Manager for Oji Intertech Inc. of North Manches-
ter, which serves the automotive/transportation and industrial packaging industries. “Productivity has risen more than 20 percent, and we have seen significant cost savings in our molding, extrusion coating and warehouse units. The Purdue TAP/MEP staff was professional and provided the technical leadership necessary for Oji to implement Lean and Six Sigma programs and maintain an edge over our competitors. Oji historically has promoted a culture that encourages our employees to better themselves, and all 85 Oji employees are benefitting from this collaboration.” Purdue offers Six Sigma courses in Indianapolis, Fort Wayne, Evansville and New Albany. PUBLIC/PRIVATE PARTNERS For those who are out of work, or soon to be, public/ private partnerships are springing up around the state to try to retain and even grow key business sectors. One example can be found in Northeast Indiana where efforts to deal with the departure of a major employer, Navistar, have brought disparate interests together in Fort Wayne. Truck and engine manufacturer Navistar announced plans in 2009 to wind down activities in Fort Wayne as part of a consolidation that will move the company’s headquarters and engineering operations to the Chicago suburb of Lisle. The announcement sparked a flurry of ultimately unsuccessful counterproposals from regional leaders and left them faced with the prospect of as many as 1,200 job
Projected Indiana Demand for Middle-Skill Occupations, 2008-2018 Police Officers Employment 2008: 11,264 2018: 12,267 INCReaSe
Painters Employment 2008: 7,655 2018: 8,482 INCReaSe
Mechanics Employment 2008: 15,648 2018: 16,043 INCReaSe
Dental Hygienists Employment 2008: 3,996 2018: 5,451 INCReaSe
Source: Indiana Department of Workforce Development www.buildingindiananews.com
losses, many of which were middle-skill engineering jobs. “Communities with talent are the communities that are going to win on a global basis,” says John Sampson, President and CEO of the Northeast Indiana Regional Partnership. “That certainly leaves us at a disadvantage if that talent were to pull out.” To prevent that from happening, the city of Fort Wayne, WorkOne Northeast and the Partnership embarked on a multi-year, multifaceted effort to retain and retrain engineers displaced by Navistar’s move, and to turn that talent base into an asset that will attract new employers to the region. Though Navistar’s wind-down will take a couple years, meaning that many people are still working, the response to the initiatives has been noticeably different compared to similar situations in the past. “In prior years,
The retraining programs are already starting to bear fruit. “We have a concentration of engineering firms and there is a demand for engineering talent, so a material number of people are being connected to opportunities already,” Sampson says. Key regional employment clusters include healthcare and defense, “which allows us to tailor training programs to something applicable to the region,” he notes. TALENT AN ASSET Beyond existing firms, he adds, the Partnership has drawn up a list of companies it is contacting to make sure they
understand the talent base available in the region. “One of our core missions is to attract new firms and in our view this concentration of engineering talent is a huge asset,” he says. Funds for on-the-job training have been found as well. “We have received a grant through which we will pay part of a worker’s salary for a period of time while they learn the job,” says Fort Wayne Mayor Tom Henry. Pointing to the success of the engineer-focused program, he is bullish on expanded efforts such as an online “virtual job fair” being put together by WorkOne Northeast that would act as a resume distribution and
“People are buying into the mantra...there is skill security... and they want to get moving on those skills now.” - Kathleen Randolph, WorkOne Northeast President & CEO
you would have a small group go through the process at the start, then more would trickle in over time – and then there would be a mad rush at the end,” says Gary Gatman, Vice President of WorkOne Services. “But this group is pretty specific about what they want to do. They’re coming to us with a plan.” “People are buying into the mantra that there is no job security, but there is skill security,” says WorkOne Northeast President and CEO Kathleen Randolph. “And they want to get moving on those skills now.” Working with interested employees, WorkOne Northeast has identified and established skill development and training programs aimed at helping these engineers get new degrees or certifications that will allow them to transfer their existing skills to new and growing industries. Since there are common areas of interest, the organization has been able to modularize some of these efforts to speed up training. They are also facilitating contact between engineers and prospective employers via the Web. About $1 million in funding for the efforts was been cobbled together says from a combination of federal and state funds and money provided by the Lilly Endowment for a regional talent initiative. “I don’t believe it will be enough, but we will go after more,” Randolph says. www.buildingindiananews.com
ACCEPTING NOMINATIONS for CAF Awards & NWIBRT Awards
Visit buildingindiananews.com for nomination forms. All nominations due March 2011.
Nomination Categories include: NWIBRT
• Progress • Recognition • Achievement • Excellence • Innovation • Contractor of the Year
• Commercial Project • Industrial Project • Public Works Project • Highway Contractor • Commercial Contractor • Industrial Contractor • Subcontractor
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contact hub for all workers and companies. “This has revealed the best characteristics of Fort Wayne,” he says. “We are getting creative and innovative.” While Fort Wayne’s challenge involves skilled workers who need jobs, the opposite is the case for ArcelorMittal, which has skilled jobs in need of workers. In Indiana, the steelmaker has partnered with Ivy Tech Community College on its Steelworker For The Future Program, which is aimed at providing the knowledge needed to work in modern mills. The program involves four semesters of classroom education as well as time on the job site (during which students earn a wage) and culminates in an associate’s degree upon completion. According to Dr. Rebecca Nickoli, Vice President for Workforces and Economic Development and Grants Administration at Ivy Tech Community College, about three dozen students were in the program last fall, but that’s only a fraction of what ArcelorMittal expects to need in the coming years. DEMOGRAPHIC PRESSURE “We have a growing problem in demographics,” says Andrew Harshaw, Executive Vice President of Operations at ArcelorMittal. “We expect six to seven percent attrition going forward and when you look at Indiana that’s 700 jobs a year we need to replace with an employee who can be flexible and grow with the technology.” Similar concerns led to the establishment of a new orthope-
dics-related degree at Grace College in Warsaw, the “orthopedics capital of the world.” The new program is the result of a partnership between Grace College and OrthoWorx, an industry, community and education initiative founded in 2009 to advance and support the region’s orthopedics devices sector. Offered through the OrthoWorx Center of Excellence in Orthopedic Regulatory and Clinical Affairs at Grace College, the program will be the nation’s first graduate program in orthopedic regulatory and clinical affairs.
“We need to engage more young people and unemployed workers in learning skills that translate to high-quality jobs in our economy.” - Emily DeRocco, Manufacturing Institute President
“A key element in OrthoWorx’s mission is to help foster an environment where the orthopedic industry can continue to thrive, and the availability of employees with specialized skills and knowledge is critical to sustaining the cluster in the Warsaw region,” says Brad Bishop, OrthoWorx Executive Director. Classes will start this spring. Grace isn’t the only Indiana school looking to support industry-specific training. The Manufacturing Institute, an affiliate of the National Association
Projected Indiana Demand for Middle-Skill Occupations, 2008-2018
(219) 662-9177 • Fax: (219) 662-9572 615 N. Indiana Avenue Crown Point, IN 46307 www.dlwoodproductsinc.com
Plumbers Employment 2008: 13,460 2018: 15,593 INCReaSe
Fire Fighters Employment 2008: 6,243 2018: 7,422 INCReaSe
Paralegals Employment 2008: 3,598 2018: 4,585
Commercial Pilots Employment 2008: 602 INCReaSe 2018: 701
Source: Indiana Department of Workforce Development www.buildingindiananews.com
Source: National Skills Coalition
of Manufacturers, has partnered with Ivy Tech and Indiana’s four-year public universities to create college education programs aligned to nationally portable, industry-recognized skills credentials for careers in advanced manufacturing. The partnership is
supported by a $650,000 grant from Lumina Foundation for Education. The initiative will build college programs that prepare students, particularly low-income young adults and transitioning workers, with entry-level skills necessary to succeed
in advanced manufacturing careers such as aerospace, transportation, logistics, and machining. The effort is being coordinated by Conexus Indiana (for more on the program, see page 58). “We need to engage more young people and unemployed workers in learning skills that translate to high-quality jobs in our economy,” says Manufacturing Institute President Emily DeRocco. “By deploying the Manufacturing Skills Certification System as stackable credentials in Indiana colleges, we will be offering new pathways to employment and advancement in manufacturing, which is a mainstay of the state’s economy.” In central Indiana, EmployIndy (formerly the Indianapolis Private Industry Council) kicked off recruiting for a local job training and placement initiative called PriorITize in January. Funded by a $2.9 million grant from the Department of Labor, the program’s goal is to train and place 300 participants in one of three of the fastest-growing career positions in the Indianapolis area. According to EmployIndy President and CEO Brooke Huntingon, unemployed and underemployed workers in Marion and surrounding counties will be recruited with the
focus on preparing a pipeline of workers to fill high-demand career positions of Health Information Technology, PC Support, and Security Systems Technicians. Those who complete the program will earn an associate’s degree in Health Information Technology or Computer Information Technology, or certification as a security systems technician. Key partners in PriotITize are Ivy Tech, the Region 5 Workforce Board, Goodwill Industries’ Excel Center, St. Vincent Metropolitan Indianapolis Central Indiana Area Health Education Center, Stanley Security Systems, Community Health Network, Also underway in Indianapolis is a major Ivy Tech project aimed at lifelong learning. The college is using the largest grant it has ever received – $22.9 million
“Communities with talent are the communities that are going to win on a global basis.” - John Sampson, President & CEO, Northeast Indiana Regional Partnership
from the Lilly Endowment – to purchase and renovate the former Stouffer’s Hotel in Indianapolis as the Indiana Center for Workforce Solutions. The 196,000-squarefoot facility, including 13 floors and a rooftop space, will house the college’s workforce development operations and will be able to accommodate training for 25,000 individuals a year. In southern Indiana, Vincennes University will continue its Technology Ap-
Projected Indiana Demand for Middle-Skill Occupations, 2008-2018 Carpenters Employment 2008: 30,681 2018: 34,000
Electricians Employment 2008: 16,741 2018: 18,308 INCReaSe
prenticeship program, a partnership between Vincennes, the Indiana Department of Workforce Development and the Associated Builders and Contractors (ABC). The Department of Workforce Development gave the university a $1.5 million grant in late 2010 to continue the initiative, which has about 700 apprenticeship students working to achieve Journeyman Level in the electrical, carpentry, HVAC, lineman, pipefitting, plumbing or sheet metal trade enrolled. Approved by the Department of Labor’s Bureau of Apprenticeship Training, the university offers the program at seven ABC regional sites in Indiana. “This is a wonderful partnership for Vincennes University, a great program for ABC, and it is a wonderful opportunity for workers across the state to get training and higher education all at the same time,” says David Tucker, Vice President for Workforce Development and Community Services. For more on educating Indiana’s 21st century work force, go to www.buildingindiananews.com.
Source: Indiana Department of Workforce Development
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.
Lower costs. Perfect location. Indiana. Smart Move. Find out more at IndianaSmartMove.com.
A proud SupporTer oF INdIANA’S eCoNoMIC developMeNT eFForTS www.buildingindiananews.com
Higher Education Statistics Indiana is not alone in facing a gap
ees. According to the U.S. Department of Education, at least 32 states are in similar straits. And by 2012 – that’s just next year – the Education Department
Education in indiana
COLLEGE COMPLETION RATES
between the needs of employers and the education levels of would-be employ-
% HS GRADS GOING DIRECTLY TO COLLEGE
% WITH BACHELOR’S IN 6 YEARS
% WITH ASSOCIATES IN 3 YEARS
% 25-TO-35-YEAR-OLDS WITH DEGREE
Indiana Illinois Ohio
63.4% 60.7% 60.0%
55.5% 58.7% 55.3%
27.9% 24.8% 25.9%
36.0% 42.7% 36.4%
Source: The Center for Evaluation and Education Policy at Indiana University
Source: The Center for Evaluation and Education Policy at Indiana University
estimates that 40 percent of factory floor
Since 2008, fewer than half
jobs will require some form of postsec-
ondary education, as will 60 percent of new jobs and 90 percent of the fastestgrowing occupations.
of school funding issues have been approved by Indiana voters.
The Secretary of Education’s Commission on the Future of Higher Educa-
Source: The Center for Evaluation and Education Policy at Indiana University
tion has recommended several changes to address the crisis. These include:
GRADUATION RATES OF FULL-TIME IVY TECH COMMUNITY COLLEGE STUDENTS
• Expanding access to higher education
Graduate within two years Graduate within three years Graduate within seven years
by improving access for minorities and low-income students;
16% 23% 33%
Source: Indiana Commission for Higher Education, 2008
Source: Indiana Commission for Higher Education, 2008
• Restructuring the entire student financial aid system, and; • Creating a robust culture of accountability and transparency throughout higher education. Indiana has been making strides. According to the 2009-2010 State-Level Dashboard of Key Indicators, Indiana is on pace to reach its 2015 goal of being in the top 10 states for on-time and sixyear total and minority graduation rates at public four-year institutions, and threeyear graduation rates at community colleges. Indiana’s adult college enrollment and low-income student college participation rate are also on pace to rank in the top 10 by 2015. 56
more Hoosier students took content-specific Advanced Placement exams in 2010 versus 2009, and the number of students earning a 3, 4, or 5 (the score needed to gain college credit at a state college or university) grew by 13.3% over 2009. Source: The College Board
PERCENT OF MEDIAN FAMILY INCOME NEEDED TO PAY FOR COLLEGE
INDIANA’S RANK IN JOBS FORECASTED FOR 2018 BY EDUCATION LEVEL EDUCATION LEVEL
High school dropouts 330,000 High school graduates 1,132,000 Some college, no degree 291,000 Associate’s degree 696,000 Bachelor’s degree 527,000 Graduate degree 234,000
COMMUNITY COLLEGE RANK
22 7 26 27 42 40
Source: The Georgetown Centerand the Workforce Source: The Georgetown UniversityUniversity Center on Education on Education and the Workforce
1 2 3 4 5 6 7 8 9 10
Wyoming Kansas Georgia Texas Arizona Indiana Ohio Oregon Vermont Pennsylvania
14.8% 14.9% 18.2% 19.4% 23.3% 23.4% 25.7% 28.7% 31.7% 34.5%
RANK 1 2 3 4 5 6 7 8 9 10
Wyoming Georgia Texas Kansas Arizona Indiana Ohio Oregon Connecticut Pennsylvania
9.9% 16.6% 22.8% 23.5% 23.8% 28.8% 35.4% 35.8% 38.1% 38.8%
Source: Indiana Department of Education Source: Indiana Department of Education
TOP 10 MIDWESTERN COLLEGES BY SALARY POTENTIAL
15% of Indiana high school graduates had no higher education plans in 2008. Source: Indiana Department of Education
1 2 3 4 5 6 7 8 9 10
Indiana Minnesota Illinois Ohio Indiana Illinois Illinois Missouri Michigan Ohio
University of Notre Dame Carleton College University of Chicago Case Western Reserve University Rose-Hulman Institute of Technology University of Illinois at Urbana-Champaign Illinois Institute of Technology Missouri University of Science and Technology Kettering University Kenyon College
$54,100 $42,300 $50,000 $54,600 $59,400 $51,500 $54,900 $56,700 $55,900 $40,600
$112,000 $105,000 $100,000 $98,600 $97,300 $96,500 $96,300 $93,200 $92,500 $92,500
INDIANA MEDIAN EARNING BY DEGREE TYPE – 2008
Source: payscale.com 2010-11 College Salary Report
of factory floor jobs will require some form of postsecondary education, as will 60% of new jobs and 90% of the fastestgrowing jobs. Source: The Center for Evaluation and Education Policy at Indiana University, U.S. Census Bureau
AVERAGE PUBLISHED TUITION, PUBLIC TWO-YEAR UNIVERSITY (IN-STATE) Kentucky Indiana Ohio Illinois Michigan
MID-CAREER MEDIAN PAY
Source: payscale.com 2010-11 College Salary Report
STARTING MEDIAN PAY
$3,759 $3,298 $3,266 $2,754 $2,554
$3,684 $3,137 $3,244 $2,597 $2,455
of bachelor’s degree graduates work full-time, compared to 40.7% of high school graduates.
Certificates Certificates STEM* Certificates Health** Associates Associates STEM Associates Health Bachelors Bachelors STEM Bachelors Health Masters Masters STEM Masters Health Doctorates Doctorates STEM Doctorates Health First-Professionals First-Professionals Health
$20,589 $45,554 $26,396 $30,552 $51,737 $42,234 $36,662 $63,351 $52,793 $47,514 $73,324 $57,030 $61,103 $78,416 $105,586 $47,725 $101,839
* Science, Technology, Engineering, Math ** Health and Health Sciences Source: National Center for Higher Education Management Systems
Source: Indiana Business Research Center
Source: National Center for Higher Education Management Systems
AVERAGE PUBLISHED TUITION, PUBLIC FOUR-YEAR UNIVERSITY (IN-STATE)
% CHANGE 2.0% 5.1% 0.7% 6.0% 4.0%
Source: The College Board, weighted by enrollment
Source: The College Board, weighted by enrollment
Census Bureau data for Indiana show that
Illinois Michigan Ohio Indiana Kentucky
$10,553 $9,784 $8,146 $7,676 $7,118
2008-09 $10,021 $9,130 $8,068 $7,222 $6,809
% CHANGE 5.3% 7.2% 1.0% 6.3% 4.5%
Source: The College Board, weighted by enrollment
Source: The College Board, weighted by enrollment
Charting the Course
Special RepoRt: Education in indiana
a new program aims to prepare Indiana’s workforce for high-tech, high-skill logistics careers.
By David Holt, Vice President, Operations and Business Development, Conexus Indiana
he retirement of the Baby Boom generation will create thousands of job openings in Indiana’s manufacturing and logistics industries in coming years. But unlike the assembly line and warehousing jobs of past generations, today’s manufacturing and logistics careers demand high-tech skills. But a gap has formed between employer demand and the number of qualified workers for these positions as the U.S. has slipped to 12th among developed countries in the percentage of 25-to-34-year-olds with an associate degree or higher. A high school diploma just isn’t enough preparation for these high-tech jobs; however, success doesn’t hinge solely on a four-year bachelor’s degree, either. Half of all U.S. jobs today are considered “middle-skill,” and one of every two new jobs will fall into this category over the next five years. Today, in Indiana alone, middle-skill jobs dominate the state’s job mix and will continue to do so. In response, Conexus Indiana has consulted logistics and advanced manufacturing human resources and operations executives in an effort to ensure future workers are prepared for increasingly high-tech logistics and advanced manufacturing careers. Participating companies ranged from small firms to large employers who represent a full spectrum of indus58
try products and services. The result is a skills template and statewide program designed to draw high school students to Advanced Manufacturing and Logistics (AML) and help postsecondary educators develop curricula for a portable logistics credential. The Indiana Department of Education and the Indiana Commission for Higher Education have both embraced this template and Conexus is working with our educational partners to create industry-approved programs that can steer students into the most in-demand jobs. The template identifies the skills required for a successful AML employee and lays out a pathway for the employee to learn what they need to know. If the pathway is completed, the employee would have proficiency in: import/export control laws; regulatory compliance; lean principles; Six Sigma tools; Total Quality Management; Material Requirement Planning and Systematic Product Movement; stream mapping and process flows; and a working knowledge of Homeland Security and TSA requirements. Today’s sophisticated global customers require that logistics companies understand their business and not only manage the physical movement of goods but also understand the specific nuances of their sales channels and financial transactions. Conexus is encouraging young Hoo-
siers to enroll in these programs through a campaign called “Dream It. Do it.” The campaign is aimed at connecting the most technology-savvy generation in history with high-tech industry jobs. A logistics curriculum is not a “nice to have” but is now a “cost of entry.” The good news is that many jobs in advanced manufacturing and logistics are high-paying—manufacturing positions pay an average of 40 percent above the state’s median income, while logistics jobs pay 30 percent more. DreamItDoItIndiana.com is a clearinghouse for advanced manufacturing and logistics career info in Indiana. The campaign encourages high school educators to direct students to the site to learn about job opportunities, resources and companies in their region of the state. Conexus Indiana also implemented the “Dream It. Do It. Champion Program” through which regional champions work within high schools to raise student awareness through field trips, career fairs and presentations. As Indiana continues to grow its leadership position in the logistics industry, it’s never been more important to invest in the industry’s single-most important resource, people. Conexus Indiana realizes this and is prepared to develop and deliver a curriculum specifically geared toward the logistics industry and the people it employs as a significant component of its larger statewide growth strategy. www.buildingindiananews.com
To Think Beyond the Label in Indiana, visit ThinkBeyondtheLabel.com Under Start Hiring > Find Local Resources, select â€œIndianaâ€?.
www.buildingindiananews.com 8by10.5_Jargon_FullPage.indd 1
59 5/19/2010 12:51:51 PM
Special RepoRt: Education in indiana
Training Key things to consider when beginning an employee training development program.
By Susan Riddering and Rick Riddering, NorthStar360 Business Solutions, LLC
Popular Developments Depending upon the type of company, organizations may be required to conduct different types of specialized training, such as safety training or food handling training. But here are the most common focuses for employee development programs outside of training required for an industry. • Sales Effectiveness – helping salespeople to be more successful even when the market is tough. • Technology – due to its ever-changing nature. • Leadership – huge leadership gap coming as Baby Boomers retire; preparing next generation of leaders. • Emotional Intelligence – a selfperceived ability to identify, assess and control the emotions of oneself, of others, and of groups. Effective for employee personal team development, and to help create a more productive work environment. • Change Management – helping employees to cope as companies and industries change processes, technologies, and even people.
ore and more companies are embracing the idea of ongoing professional development programs for employees. Whether it’s a case of new employees who come to the job with outdated skills, or current workers whose skills aren’t geared for foreseeable changes in the work environment, training and development is emerging as a key factor in keeping Indiana companies competitive. “In today’s economy, if your business isn’t learning, then you’re going to fall behind. And a business learns as its people learn,” advised to Paul Sarvadi, CEO and co-founder of the leading professional employer organization Administaff, in an article he wrote for Entrepreneur magazine. “Your employees are the ones that produce, refine, protect, deliver and manage your products or services every day, year in, year out. With the rapid pace and international reach of the 21st century marketplace, continual learning is critical to your business’s continued success.” Study after study shows that investing in training and development reaps huge benefits, including productivity gains, increased efficiency and reduced employee turnover. However, these benefits are amplified when a business owner or manager treats their employee training and development programs like other ventures in which the business is involved – strategically and methodically. Here are some critical things to consider before
starting any employee development efforts. Are you and your organization really committed to supporting training for employees? Think of this as your corporate heart check. Training takes time, money and the patience of an organization while its employees are learning. How does your organization check out? Do the training and development programs under consideration align with your corporate objectives? This is critical because the valuable resources you are about to invest in employee training and development must effectively contribute to achieving one or more of your objectives. Otherwise, it’s money and time wasted. Even more so, employees can quickly lose interest when the linkage between the training and development – between their work and corporate mission – is murky. This is a sure recipe for derailing training initiatives and wounding employee morale. Take inventory – what skills do your people need? Once you’ve determined that your organization is fully committed to employee development and how it will support the organizational objectives, it’s time to assess what skills and knowledge your employees will need to carry out the company’s mission. This really is an exercise of www.buildingindiananews.com
taking an inventory of what skills your employees already possess and comparing it to what skills they’ll need in order to carry out the strategic plan for growth. It all starts by assessing the skills and traits of your current workforce by using a reputable assessment instrument and possibly even a reputable consultant to oversee the project. Once you have a clear understanding of your skill strengths, compare them to what skills you anticipate will be needed for the future. The difference between your company’s current skill bank and anticipated skill needs is called a “skill gap.” These identified gaps will help you to determine how to prioritize your training and development program so that the most important skills are developed first. Let’s take a look at how one example plays out using this approach. We’ll assume that The Make-Believe Company is a wellrun organization with a very experienced leadership team all nearing retirement in the next three to seven years. The assessment of the employees revealed that the company had a good group of managers at the level just below senior leadership, but they lacked significant leadership skills, abilities and experience that would position them to take on the responsibilities of a senior leader once the
current ones retire. Additionally, this MakeBelieve Company study determined that other workers at the company generally enjoy their work, but are concerned about what changes may be coming due to the impending retirements of the company’s key leaders. In many ways, this “make-believe” scenario is reality to many companies today as they prepare for mass exodus retirements of the Baby Boom Generation. However, after determining the skill gaps at the Make-Believe Company, it makes sense that its leadership team considers implementing training and development interventions focused on preparing its middle-level managers for leadership responsibility someday. Additionally, it would behoove the organization to implement change management training for all its employees in preparation for the inevitable changes on the horizon as the company’s leaders retire. Who do you call? Numerous factors should be considered when determining which training or even training consultant to use. These include reputation of the consultant, quality of training and development services they offer, cost of products and services they offer, delivery methods, and follow-up after the training is complete.
However, the most critical thing that needs to happen is ongoing evaluation to check the training’s effectiveness. Don’t wait until the end to evaluate whether the program is helping your employees to develop. Monitor the learning process and make adjustments as necessary. Additionally, some companies build rewards into the process as a way of recognizing learning accomplishments. These certainly do not have to be extravagant, but they can range from such things as certificates of completion to lunch with the boss. Whatever you decide, just remember that employees need to know that they’re meeting and exceeding the company’s expectations for professional development. Catch them doing things right! This helps to assure their continued buy-in to the learning and development process. Pragmatically speaking, training is not a cure-all for every challenge that companies face. Likewise, a single catch-all program does not exist. However, the self-worth of employees typically improves as companies invest in them and as they become more valuable to the organization. More times than not, these gains equate to gains for the organization by way of improved productivity, stronger employee engagement and increased employee retention.
3209 W Lincoln Hwy • Merrillville, IN 46410
Better Days W
The industrial real estate picture is improving across northern Indiana.
By David Wellman
hile it can by no means be characterized as robust, the industrial real estate market across northern Indiana continued to move in a positive direction through the second half of 2010, and experts believe it will continue to strengthen modestly throughout 2011. “For a lot of companies, the goal for 2009 and 2010 was just to survive,” says Kevin Tobin, President of Tobin Development (Chicago). “For 2011, some sense of normalcy is returning.” Capital markets are still tight, he notes, and speculative development is unlikely to revive any time soon, but locations like Northwest Indiana “have a chance to bloom” because of the state’s stronger financial position compared to its neighbors. “The next couple of years look like they are shaping up to be slow but steady growth,” agrees Brad Toothaker, Managing Director of the South Bend office of CB Richard Ellis. Financing and valuation issues continue to plague deals, he says, but for companies looking to build, costs remain low, and those looking to lease are enjoying a very competitive market. Even property that was vacant prior to the recession is beginning to show signs of life, which came as a bit of a surprise to Jim Skillen, Vice President for Grubb & Ellis | Cressy & Everett in Elkhart. “We all thought that if you had a building on the market before 2009, you may never have a market for it,” he says. “But in 2010 I have seen a half a dozen transactions, so property that was stagnant has found a place in this market.” And in further good news, Mark Miller, Senior Broker for Grubb & Ellis | Cressy & Everett in St. Joseph County, reports that interest in industrial space continues to rise. “There has been more activity over the last six months,” he says. “It hasn’t translated into deals on a one-for-one basis, but the 62
activity is exciting.” Industrial vacancy rates fell in northern Indiana’s major markets in 2010. The biggest decline came in Northwest Indiana, where vacancy rates dropped from nearly 9.9 percent at the end of 2009 to 8.75 percent as of Q3 2010, according to Colliers International. In contrast, industrial vacancy rates in the neighboring Chicago metro market barely budged, falling just 0.1 percent to 12.35 percent in the same period. That trend could continue, and even accelerate, thanks to Illinois’ budget mess. “Illinois has dug itself into a deep hole and now they have multi-billiondollar problems at ever level – city, county and state,” says Tobin. ILLINOIS FACING SHORTFALL Headed into 2011 with a $13 billion deficit – equal to 47 percent of its entire budget – Illinois was in the worst shape of any of the 35 states with a projected 2011 budget shortfall. Estimates of Chicago’s 2011 budget hole range as high as $1 billion, while Cook County may come up $500 million or more short. While Indiana has challenges of its own, the state’s projected 2011 deficit of between $700 million and $1.3 billion is pocket change in comparison. “If you are a company looking for new facilities, would you A) choose a city/ county/state that’s headed for bankrupt-
cy, or B) a place that’s pro-business, has exhibited fiscal responsibility and also has an attractive labor pool and rates?” Tobin asks. Some deals are on the horizon. “We have three sites we are looking at that have strong build-to-suit potential and we have some interested parties,” he says. “I think we will get some industrial development deals done in 2011.” If so, the rental market could turn around. “Rents vary, but are softer everywhere, because getting any vacancy filled right now is highly desirable,” says Toothaker. Not surprisingly, that’s led to a renter’s market as landlords chop rents to attract tenants. Likewise, building prices have fallen. “There are opportunities to purchase with good pricing,” he notes. “The big boogey remains financing, and also valuation because there is a total dearth of good comps right now.” However, Toothaker adds that values have firmed up over the course of 2010, giving them a better yardstick for 2011. Industrial space is at its scarcest in the South Bend/Mishawaka market, where vacancy rates were down to 6.6 percent by the end of the third quarter of 2010, and that percentage may soon fall again. “There are a couple deals in the works that could fill up 200,000 or 300,000 square feet of space in St. Joseph County,” says Miller. www.buildingindiananews.com
CHICAGO/NORTHWEST INDIANA INDUSTRIAL REAL ESTATE SNAPSHOT – Q3 2010 ASKING RENT VACANCY NET ABSORBTION AVERAGE ANNUAL AVERAGE ANNUAL SALES PRICE PER SF ASKING RATE YTD RATE 8.75% 396,835 $3.46 $31.21 Northwest Indiana 12.35% -6,250,570 $4.23 $47.50 Metro Chicago Source: Colliers International
SOUTH BEND/MISHAWAKA INDUSTRIAL REAL ESTATE SNAPSHOT – Q3 2010 ASKING RENT VACANCY NET ABSORBTION AVERAGE ANNUAL AVERAGE ANNUAL ASKING RATE SALES PRICE PER SF YTD RATE 10.60% -9,292 $2.84 $5.49 Airport Industrial Area 3.80% 234,709 na $7.75 Granger 8.20% -41,510 $5.75 $4.85 Mishawaka North 9.60% -102,475 $4.19 $5.23 Mishawaka South na na New Carlisle Industrial Area 3.30% 4.80% -5,080 $3.71 $3.81 South Bend North 7.00% -197,263 $2.96 $4.12 South Bend South 6.60% -120,911 $3.26 $4.56 TOTAL Source: Grubb & Ellis | Cressy & Everett
ELKHART/GOSHEN INDUSTRIAL REAL ESTATE SNAPSHOT – Q3 2010
Elkhart North Elkhart South Goshen TOTAL
ASKING RENT VACANCY NET ABSORBTION AVERAGE ANNUAL AVERAGE ANNUAL ASKING RATE SALES PRICE PER SF YTD RATE 13.20% 245,528 $2.50 $5.50 11.40% -160,545 $2.30 $8.66 10.00% -82,295 $2.94 $2.15 11.80% 2,688 $2.41 $2.38
Source: Grubb & Ellis | Cressy & Everett
Lower vacancy rates and increased activity are due in part to property owners finally facing reality. “Sellers have finally come to understand that the market has changed,” he says. The result has been a “huge” decrease in rents and asking prices. Medical Development around the new St. Joseph’s Regional Medical Center in Mishawaka, completed in early 2010, has also “been a real bright spot,” he adds. Similar factors are at play in Elkhart. “The momentum that began in the second quarter continued into the third and almost 600,000 square feet got absorbed,” says Skillen. “So a consistent deal flow is being established.” However, most deals are happening at very low prices and much of the gains in absorption are being offset by new properties coming on to the market. One encouraging trend for the Northeast Indiana’s future that
Skillen has noticed is the number of new businesses appearing. “Half my transactions in 2010 were start-ups, and they are not weak start-ups,” he says. “The majority are people who worked for a larger company that closed and who are now doing the same thing on a smaller scale.” Skillen predicts that 2011 will be a lot like 2010, and that there will be no quick return to the heady days of 2007. “If we got [prices increasing] five percent a year for the next five years, it would be a miracle, and we still wouldn’t be back to 2007.” Long-term, Toothaker is slightly more optimistic. “2007 is three to five years away,” he says. “Not for everything: some segments were well outside rational growth and investment property pricing got out of control, but predicated on the debt market five years from now valuations can get back.”
Accelerating to Lifespeed Indiana’s position as a national – and global – leader in life sciences grew stronger in 2010 thanks to a record amount of new investment and jobs coming over the next few years.
By David Wellman
ndiana’s life sciences sector told the Great Recession to take a long walk off a short pier in 2010 as firms large and small established or expanded operations in the state, leading to a record level of proposed investment and potential new jobs over the next several years. According to figures from the Indiana Economic Development Corporation (IEDC), 20 life sciences told the state they plan future investments of more than $570 million and 4,071 jobs, the highest number of jobs and investment ever recorded for the industry by the state’s lead economic development agency. The more than 4,000 projected jobs tops 1,228 projected jobs in 2009, 1,329 projected jobs in 2008, 2,990 projected jobs in 2007, 2,620 projected jobs in 2006 and 2,272 projected jobs in 2005. “The state’s strong recruitment of new life sciences jobs to Hoosier soil proves the point we’ve been making for several years: Indiana is truly home base when it comes to life sciences opportunities, a fact that is increasingly well known both here and far beyond our borders,” says David Johnson, President and CEO of BioCrossroads, a public-private partnership dedicated to growing life sciences businesses in Indiana. “With key alignment among our public, private and university sectors, Indiana is the smart place to be for growing or sustaining companies in the complex business of finding, developing and delivering better products for better human health.” 64
The 2010 life sciences investment growth was anchored by Dow AgroSciences’ March announcement of plans to invest $343.9 million at its Indianapolis headquarters and create 577 new jobs by 2015 (as of December, 90 new jobs had already materialized). “Not only is the volume of jobs and investment particularly strong this year, but life sciences jobs are typically high-wage which is great news for Indiana workers throughout the state,” says Mitch Roob, Secretary of Commerce and CEO of the IEDC. Indeed, according to the 2010 report of State Biosciences Initiatives from the Biotechnology Industry Organization (BIO) and Battelle, a nationwide nonprofit research and development firm, the average annual wage in Indiana’s bioscience industries in 2008 (the latest year for which figures were available) was $82,463. That was more than double the $38,457 annual salary for all private sector industries. Moreover, BIO/Battelle reports that while the overall number of jobs in Indiana slipped 0.9 percent from 2001 to 2008, the number of positions in biosciences fields in the state rose 17.2 percent. The report also estimates that BIOSCIENCE-RELATED VENTURE CAPITAL INVESTMENTS 2004-2009 – INDIANA YEAR 2004 2005 2006 2007 2008 2009
DOLLARS (millions) $52.90 $5.40 $48.90 $53.40 $58.30 $56.90
Source: BIO/Battelle 2010 State Biosciences Initiatives Report
BIOSCIENCERELATED PATENTS 2004-2009 – INDIANA YEAR 2004 2005 2006 2007 2008 2009
PATENTS 312 279 340 349 272 378
Source: BIO/Battelle 2010 State Biosciences Initiatives Report
INDIANA LIFE SCIENCE INVESTMENTS – 2010 COMPANY ACell, Inc. Advantis Medical, Inc. American Institute of Toxicology, Inc. Arcadia Resources, Inc. Ascension Health, Inc. Beckman Coulter, Inc. Biomet Dow AgroSciences LLC Evonik Degussa Corporation In Touch Pharmaceuticals, Inc. Intensive Air, Inc. Iotron industries USA L.H. Medical Corporation MED-1 Solutions, LLC Pharmaceutical Vessel Engineering Rexam Consumer Plastics Inc. Stericycle Theoris Group, Inc. Vortek Surgical, LLC Zimmerman Biotechnologies
PROJECTED LOCATION JOBS 38 Lafayette 92 Indianapolis 160 Indianapolis 934 Indianapolis 500 Indianapolis Indianapolis 95 278 Warsaw Indianapolis 577 650 Lafayette 90 Valparaiso 150 South Bend 20 Columbia City 65 Ft. Wayne 53 Greenwood 22 Sellersburg 46 Franklin 109 Indianapolis 50 Indianapolis 72 Brownsburg 70 Greenwood
PROJECTED INVESTMENT $745,424 $5,600,000 $74,100,000 $3,900,000 $10,900,000 $18,200,000 $26,000,000 $343,900,000 na $2,200,000 $17,700,000 $15,300,000 $5,400,000 $4,400,000 $1,500,000 $2,900,000 $390,000 $985,800 $10,700,000 $28,400,000
the almost 53,000 jobs in the industry as of 2008 had a multiplier effect that supported more than 260,000 more jobs statewide. Despite the poor economy, BIO/Battelle notes that Indiana continued to attract fresh interest and investment. Venture
capital investments in Indiana bioscience firms held relatively steady from 2007 through 2009, and the number of bioscience-related patents issued to Indiana firms hit an all-time high of 378 in 2009. The resiliency of the state’s life sciences sector comes from a longtime focus on the industry, says Lori LeRoy, Public Relations and Marketing Director for Biocrossroads. She points out that that this commitment goes back more than 40 years to the 1969 founding of the Regenstreif Foundation and the Regenstreif Institute at Indiana University, whose mission was to research and develop ways to track and store patient information by electronic means. As a result, today, Central Indiana is home to the largest and most advanced Health Information Technology (HIT) cluster in the U.S.
“When you have been in the game that long, you get a bit insulated when the economy starts to crumble,” she says. LeRoy predicts that life sciences in Indiana will continue to expand thanks to a strong focus on key clusters like HIT. In addition to technology, the state is also strong in bio/pharmaceutical contracting services – companies that provide highly sophisticated and specialized services to major suppliers in the industry – and the orthopedic device sector, which is being driven by demand from both an aging domestic Baby Boom population as well as a booming global market for its wares. Warsaw in Northeast Indiana is home to companies which account for 33 percent of the global orthopedics industry and reported sales of $12 billion in 2009.
GREEN & SUSTAINABLE
Green Development Successful industrial zoning approval balances economic development benefits with environmental protection.
By John P. Bushemi, Attorney, Burke, Costanza & Cuppy
oning is the system of local government regulation of the use of private land for the public benefit. Because industrial land uses have the greatest potential to impact
public land, air and water resources, industrial zoning is typically subject to critical local regulatory review. Successful approval of new industrial land uses, therefore, requires balancing economic development benefits with reasonable environmental protections. Industrial zoning approval typically involves the following process: Presentation of detailed project information to local zoning staff; engaging in project dialogue with local elected and appointed officials; conducting a series of work sessions and public hearings to present the zoning petition and consider remonstrators; assessment of any project impact on public health and safety; assessment of any project impact on the use and value of adjacent property; and consideration of reasonable conditions for project approval. Here are four sample industrial zoning projects we handled for clients: Wolf Lake Terminals in Hammond was granted zoning approval to oper-
ate a new biodiesel production plant at its facility located in an I-2 manufacturing zoning district. Local economic development benefits included the multi-million dollar capital investment for the plant and new jobs. An environmental benefit of the plant was production of a clean-burning alternative fuel blend from soybean oil, a domestic renewable resource. Environmental impact concerns included air emissions, odors and groundwater protection. The Hammond Board of Zoning Appeals approved a conditional use permit for the plant. Zoning for the biodiesel production plant was approved with conditions that stack emission test data be provided to the city, no odors impact adjacent properties and a corrective action plan be used in the event of a liquid spill or release. Dover Chemical Corporation sought zoning approval to produce a new antioxidant engine oil additive at its Hammond plant. The plant is located in a manufacturing zone of the city. Economic development benefits for Dover included production of a new product to keep the plant competitive in the fuel additives market and creation of new jobs. A primary environmental concern was the use of two toxic chemicals in the production process. City zoning laws required a variance of use approved by the Board of Zoning Appeals and the City Council. In this case, city environmental staff issued a negative recommendation based upon use of the two toxic chemicals in the project and the zoning request was not approved. Consolidated Fabrication and Constructors, Inc. of Gary won zoning approval to operate a new oil storage tank manufacturing and fabrication facility in Tulsa, OK. The new facility was proposed in an I-2 general industrial zoning district in an unincorporated area of the county. Local economic development benefits included the capital www.buildingindiananews.com
investment for the facility and new hourly wage jobs in the plant and new salaried positions in the business office. Environmental impact concerns included odors, dust and noise emissions. The County Board of Adjustment approved a special exception for the facility. Zoning for the oil storage tank manufacturing facility was approved with conditions that all fabrication work be completed within enclosed buildings, no odors, dust or noise be emitted beyond the property line and specific on-site parking, loading and vehicle movement requirements. ArcelorMittal steel company was granted zoning approval to operate a solid waste landfill at its Burns Harbor steel mill. The landfill was proposed in an I-2 heavy industrial zoning district. The primary economic development benefit for ArcelorMittal was significant longterm reduction of solid waste management and disposal costs. Local environmental benefits included disposal of industrial solid wastes in a state-of-the-art Indiana Department of Environmental Management (IDEM) approved landfill and elimination of significant heavy truck traffic previously required to transport the wastes to offsite disposal facilities. Environmental concerns included ensuring that materials disposed in the landfill were non-hazardous wastes and groundwater protection. The Town of Burns Harbor Board of Zoning Appeals (BZA) initially denied the zoning request. Following brief litigation, the BZA approved the special exception allowing the landfill. Zoning for the solid waste landfill was approved with conditions that the disposed solid wastes be limited to those approved by IDEM and that the landfill not accept waste from any other facility or location. In each of these cases, obvious economic development benefits were present for the company and the local economy. However, critical local regulatory review of the client’s zoning request focused upon environmental protections. In each case, successful industrial zoning approval turned on whether environmental concerns were satisfied. Companies seeking industrial zoning approval should be guided by these key strategies when negotiating projects with local government officials: • Participate in open exchange of information with local zoning staff • Develop a sound working relationship with local elected officials • Recognize that local citizen groups are stakeholders in the approval process • Detail the local economic development benefits of your project www.buildingindiananews.com
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An upscale evening to treat and entertain clients. Receive 16+ cigars, premium spirits, gourmet foods, luxury gifts, & more! midwestsmokeout.com
CAF & NwiBRt sAFety AwARds BANquet
Recognizing local firms committed to the improvement of construction and maintenance projects in NW Indiana. buildingindianananews.com
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Celebrate the Leading and Up & Coming Women of NWI. Nominations now open! Premium networking! nwiwomen.com This is not your average round of 18; network with the business leaders of NWI. The outing includes prizes & giveaways. nwibrt.org
Shake hands, exchange cards, & SCHMOOZE at this networking-focused event. Building Indiana News will recognize the Who’s Who nominees. thebigschmooze.com
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BeyoNd sAFety expo
Come learn from the industries BEST Safety experts, CEUs available. Discuss topics related to safety and network with industry giants.
The Entrepreneurial Excellent Awards Luncheon & Conference recognizes the outstanding entrepreneurs & small business owners in NW Indiana.
June 2, 2011 5-8pm
Sept. 29, 2011 10am-2pm
e-dAy luNCheoN ANd CoNFeReNCe
Date & Time
Oct. 26 8am-5pm Oct. 27 8am-3pm
The Big Pre-Game
Indianapolis’ 2012 NFL Super Bowl will come and go, but projects currently underway due to the game will have a lasting impact on the city.
By David Wellman
n February of 2012, the National Football League will bring its championship game, the Super Bowl, to Indianapolis for the first time. For two weeks, the city will be awash in football fans, professional athletes and media who will inject millions of dollars into the local economy. And then two teams will play a game, someone will win and it will be over. And if that’s all it was, it would be a missed opportunity, but neither the city of Indianapolis nor its 2012 Super Bowl Host Committee wanted that to be the case. “We wanted to find something to leave a lasting legacy,” says Dianna Boyce, Director of Communications for the Host Committee. “We wanted to make this about more than just one game in February of 2012.” The first part of that “something” broke ground in Indianapolis’ Near Eastside neighborhood just before Thanks68
giving. For every host city, NFL Charities provides $1 million for the construction of an NFL Youth Education Town (or YET) Center in an economically disadvantaged neighborhood; these Centers provide a variety of services, from health and wellness programs to family counseling. However, in Indianapolis’ case, the Host Committee decided to step things up by soliciting additional private donations and looking for an existing project that the YET could be added to. “There were six neighborhoods already working on improvements, and we honed in on the best one on the Near Eastside,” Boyce explains. “It was already going to happen, but we were able to bring a bigger spotlight to it.” Indianapolis-area companies and organizations – including Chase Bank, the Lilly Endowment, the Lumina Foundation, United Water and the United Way of Central Indiana – also responded, adding more than $10 million
to the money provided by the NFL. The result is the Chase Near Eastside Legacy Center and Indianapolis Youth Education Town, an $11.2 million, 27,000-square-foot center currently under construction on the campus of Arsenal Technical High School. It will offer neighborhood activities including community youth leagues and educational programs in match, science, technology, literacy, arts and fitness. More improvements are planned following the 2012 Super Bowl, including the installation of a new FieldTurf football field and resurfacing the track inside the football stadium. Numerous partners, ranging from Big Brothers Big Sisters to the Indianapolis Arts Center and the Marion CountyPurdue Cooperative Extension have already committed to more than 200 hours of programming a week at the facility. According to the NFL, it will be the largest YET project ever undertaken by a www.buildingindiananews.com
host city, Boyce says. Work on a second legacy element was set to begin in January: the reconstruction of several blocks of Georgia Street in downtown Indianapolis into a pedestrian thoroughfare running from the Conseco Fieldhouse to the Indianapolis Convention Center. A federal grant is covering 80 percent of the cost of the $11.3 million project, with the balance
coming from the city. “It will create a tree-lined ‘Rue Indianapolis’ with lots of green elements,” Boyce says. “It will be good for when they are having events at both the convention center and Conseco Fieldhouse, and can be used for street fairs and outdoor concerts.” The project will transform three blocks of Georgia Street from a four-lane
street with curbs, gutters and parking along the sidewalk to a two-lane curbless street with parking along the median. A pedestrian mall will be placed in the median itself, and wide pedestrian facilities will be built in front of buildings on either side. Other planned improvements include historical signing, lighting, irrigation and alternative drainage systems. Scheduled for completion in December, it will receive its trial by fire as the centerpiece of “Super Bowl Village,” a tenday block party during the weeks leading up to the big game. Boyce is expecting a record crowd to descend on the Village. “Indianapolis is somewhat unique versus other NFL markets in that we have eight other NFL markets within a day’s drive,” she notes. “We plan to reach out to those markets and encourage fans to come.” Artists’ renderings of the Chase Near Eastside Legacy Center and Indianapolis Youth Education Town (far left) and the new three-block pedestrian mall in downtown Indianapolis (left). The two projects represent a combined $22.5 million in long-term investment stemming from the 2012 Super Bowl.
Looking for more from your Web site? make sure you are taking proper advantage of search engines.
By Matt O’Brien, Search Engine Marketing Consultant, Crafted Content, LLC
earch Engine Marketing (SEM) is about getting visitors to a Web site, turning visitors into sales or leads, and measuring the results. Search Engine Optimization (SEO) is the practice of increasing a Web site’s visibility specifically through unpaid search results. It is about improving your company’s online presence with the major search engines like Google and Bing/Yahoo. It’s not about the “sponsored links” that appear on the search engine results page, but the natural “organic” links. When done right, SEO will allow a company’s Web site to expand its traffic by boosting its visibility on the internet.
Web site. A search engine may stop sending visitors to a Web site, effectively banning you from their index, for using “black hat” techniques. These include:
What exactly is Seo?
A business that commits a lot of resources on unpaid search can suffer if this happens. It is sensible to consider SEO as part of a SEM plan and overall marketing plan.
SEO places a Web site link higher (or earlier) on the search engine results page by utilizing techniques that the search engine algorithms look for. The higher the Web site link(s) appears the more visitors it receives from the search engine. In turn, the Web site gains more Web presence. The more Web presence your Web site has the more opportunity you have to convert visitors into leads or sales.
Black Hat Seo - What Not to Do Be skeptical of companies that guarantee a No. 1 ranking. Many of these companies use “black hat” or unethical SEO techniques to achieve a higher ranking for your 70
• Keyword stuffing (excessive use of keywords in Web site content and/or meta tags) • Link farming (a group of Web sites set up for the sole purpose of spamming search engines with links) • Web site cloaking (creating one Web page that the search engines see and a separate one that visitors see) • E-mail spamming (search engines and people both hate spam)
White Hat Seo What You Should Be Doing Proper SEO uses “white hat” or search engine-approved methods to increase visitors to a Web site. Here are just a few examples of these methods: • Keywords in your content, page title, url and meta tags but don’t overdo it. • Create a site map for your Web site. This makes it much easier for a search engine to identify the structure of your
Web site. It will also let the search engines know when new content on your Web site is published. • Content is king. If you create compelling, frequently updated content then you have a better chance of other Web sites linking to you. When other Web sites link to you the search engines will reward you for your hard work with higher rankings. Optimizing a Web site is often offered as a service by Web site designers, but unless your Web site host or company has a trained Search Engine Optimizer on staff, you may be paying for ideal strategies, but not receiving them. If you are not sure about your Web presence, talk to your Web site developer and ask specific questions about rankings, content changes, and linking strategies. If unsure, contact an optimizer (consultant) or specialized SEO company. Google’s Webmaster Central contains many articles and resources to not only guide you in choosing the right optimizer for the job but to also educate you on proper SEO techniques. A Web site may need its contents and coding edited to increase its relevance to specific keywords related to your business and to remove any obstacles that hinder a search engine’s ability to index your Web site properly. When choosing an optimizer or specialized company, choose one who can provide your Web site with the right type of project manager that can work with all parties. www.buildingindiananews.com
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Bloomington enters 2011 with an eye on economic development and tourism growth.
Setting the Stage
Bloomington enters 2011 with an eye on economic development and tourism growth.
By David Wellman
fter notching up several wins on the jobs front in the last few months of 2010, officials in Bloomington have set the stage for further growth with a downtown investment focused on conventions and tourism and a revamped Web site which makes it easier for prospective employers to examine the advantages of the Monroe County seat. The city of more than 70,000 has weathered the economic downturn better than many parts of the state, with unemployment at 6.5 percent in November of 2010 compared to 9.4 percent statewide. The city also snatched back a couple hundred jobs late in the year with the announcement that General Electric would not follow through on a plan announced in 2008 to close its Bloomington refrigerator plant, costing the community about 190 jobs. Instead, GE is investing $93 million in the facility, part of an overall $432 million plan to create four new “centers of excellence” for refrigeration products in Bloomington, Louisville, KY, Decatur, AL, and Selmer, TN. The revamped Bloomington plant is expected to employ about 200 workers and 72
will be the center of excellence for side-byside refrigerators, tasked with creating appliances that can meet 2014’s anticipated high-efficiency Energy Star standards. The initiative came on top of a $68 million investment in the plant’s current product lines announced three weeks earlier, bringing GE’s total planned investment in the location to $161 million over the next four years. Bloomington also welcomed grocery distributor Nash Finch, which is putting $10.6 million into an existing 300,000-square-foot facility that is projected to create up to 100 new jobs by 2014. The location will house the Minnesota company’s MDV division, which specializes in grocery and related products for military commissaries. It will serve 11 military commissaries and exchanges across eight states, including Indiana. Increased activity in the area spurred one of Indiana’s largest commercial real estate firms, Summit Realty Group, to open a Bloomington office in October. “We’ve worked on many Bloomington projects and, in doing so, established some key relationships that will be valuable to other Summit clients,” says Bill Ehret, SIOR, President
and a co-founder of Summit Realty. “Establishing a physical presence [in Bloomington] will enable us to provide even more services to a broader client base.” To help keep the flow of businesses and jobs to Bloomington going, the Bloomington Economic Development Corporation (BEDC) rolled out a new Web site, BloomingtonIndiana.ZoomProspector.com, at the end of the year. Using Geographic Information System (GIS) Software, the site provides instant access to in-depth information that previously took weeks to research. Site selection industry data suggest that more than 97 percent of initial site selection screening is done online, making easy and immediate access critical. The new site “goes far beyond a simple database of available sites and buildings,” says Ron Walker, BEDC President. “The portal provides dynamic mapping capabilities including the ability to view geographic ‘layers’ of information such as special economic development areas, including Tax Increment Finance districts and the City of Bloomington Urban Enterprise Zone.” Visitors can view available commercial properties in Monroe County, along with www.buildingindiananews.com
size, use, cost and development incentives. The site also serves as a showcase for Monroe County’s two “Shovel Ready” properties. For each, corresponding demographic reports such as labor force, education levels, consumer spending, and population characteristics can be automatically generated. Meanwhile, Monroe County officials put tourism on the front burner with an investment in downtown Bloomington. The Monroe County Convention Center Building Corporation purchased three acres near the current Convention Center site from local landowners for approximately $5.5 million, and plans to seek convention and tourism-related economic development opportunities for the land. “Improving the amenities we offer visitors means more people in the area attending events, shopping, dining and supporting local businesses,”says Lee Marchant, Chair of the Monroe County Convention Center Building Corporation, which also purchased the current Monroe County Convention Center that opened in 1991. The new land was purchased with funds from the Monroe County Innkeeper’s Tax. The same funds were used to pay for the current Monroe County Convention Center.
Once slated for closure, General Electric’s Bloomington refrigerator plant will now focus on developing highly energy-efficient side-by-side refrigerators.
That debt was retired in 2010, allowing the money to be invested in this new land. Ideas being discussed include expanding the current Convention Center and building a hotel. “Our long range vision is to grow Sunday through Thursday night business for the lodging industry in the entire county. That creates overall economic growth,” says Thom Simmons, Chair of
the Monroe County Convention & Visitors Commission. One point of contention between county officials and the Bloomington business community continues to be the Monroe County Comprehensive Plan, meant to govern land use policies in the county over the next 20 years. The Greater Bloomington Chamber of Commerce called for county commissioners to reject the most recent proposal unless “significant amendments” were made. The Chamber argued that the Plan’s restrictions on private property use would limit economic development. “We have raised concerns with the Plan Commission that this plan is prohibitive to expanding economic vitality in our community over the 20-year planning period,” says Morgan Hutton, Director of Advocacy for the Chamber. “Additionally, little has been done to address the concerns brought forth by community representatives and landowners in the most current proposed draft.” After five years of working on the Plan, the County Planning Commission voted to send the document to the county commissioners in late December. The county commissioners are expected to take up the issue in the first half of this year.
Working on the
Will a $71 million high-speed rail project that will provide hundreds of construction jobs and make Northwest Indiana more competitive logistically get underway in 2011?
By David Wellman
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ew industry sectors in Northwest Indiana took as hard a shot from the economic downturn as construction. According to Don Coffin, Assistant Professor of Economics at Indiana University Northwest in Gary, there were about 25 percent fewer construction firms in Northwest Indiana reporting activity last year versus 2007 and about 35 percent fewer construction workers employed. Among firm reporting activity, he adds, revenues were off 30 percent. The good news, such as it is, is that “construction jobs will grow about three percent in Northwest Indiana in 2011, the second-fastest growth after health care,” he says. But three percent isn’t a lot. “It’s going to be a tough year again,” he says.
One initiative that could boost those numbers significantly is the Indiana Gateway Project, a 20-month, $71.4 million federally funded high-speed rail project that will redesign 29.3 miles of Norfolk Southern’s Chicago Line from Porter County through Lake County to the Indiana/Illinois state line in order to relieve rail congestion in the region. But as of early January, the project and its more than 700 construction jobs remained in limbo as the various parties involved, including Norfolk Southern, Amtrak and federal government continued to work on an agreement under which it would be carried out. Indiana isn’t the only state waiting on papers to be signed. The $71.4 million was part of $8 billion in high-speed rail money www.buildingindiananews.com
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doled out to numerous states by the U.S. Department of Transportation in January of last year. It took until December 23rd for the first state, Illinois, to reach a deal allowing its project to go forward. “It’s been slow,” understates Jim Pinkerton, Media Relations Director for the La Porte District of the Indiana Department of Transportation (INDOT). On the Indiana Gateway, “they are still in negotiations, but we’re optimistic because a state finally reached an agreement, so now there is a template to follow.” As originally proposed, the work would consist of infrastructure improvements at seven locations on the Chicago Line in Gary, Burns Harbor and
think they are at the point yet where they are talking about pushing it back,” he says. The project would give both jobs and logistics in Northwest Indiana a boost. Roughly 100 passenger and freight trains roll through the corridor on a typical day, resulting in the single mostdelay-prone piece of rail in the country. A Rail Traffic Controller (RTC) study done by the INDOT to model the results of the improvements showed a 27 percent reduction in train delay time for all train types, a 6.6 percent increase in the average speed of Amtrak trains and a 61 percent reduction in cumulative hours of stop/delay time per week. In addition, the study found that the reduction in delays will reduce
7,800 jobs will be created for every $1 billion spent of freight rail. It would also create or sustain between 12,300 and 26,600 more if you factor in re-spending by freight rail and supporting industry employees. Whiting, and one location on the Amtrak Michigan Line in Porter. These improvements include: track relocation, reconfiguration and addition of high-speed crossovers and related signal systems; minor rail line additions at two locations achieved by lengthening and rehabilitating existing siding; and the creation of a new parallel passing track. Norfolk Southern would manage the project in coordination with INDOT and Amtrak, and also contribute an additional $4 million for bridge rehabilitation work on the territory encompassed by the project. Once an agreement is reached, the project will proceed to a final design phase before construction commences. Pinkerton believes that the 2011 start date will hold up. “I don’t www.buildingindiananews.com
fuel consumption by Amtrak trains by 332 gallons per week (cumulative) and fuel consumption by freight trains by 430 gallons per week (cumulative). RegIoNaL RaIL BeNeFITS And in addition to fueling local construction jobs, the broader $8 billion spent nationwide on high-speed rail promises to give rail-related businesses in the region a lift as well. “Investing and expanding freight rail is an opportunity to jumpstart the economy of Indiana by creating good, green jobs,” says Robin Rich, spokeswoman with United Steelworkers District 7. She notes that more than 900 Northwest Indiana steelworkers work for companies such as ASI-Keystone in Hammond, ATI Casting in La Porte and ArcelorMittal
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in Burns Harbor manufacturing springs, rolled plate, engine blocks and other rail industry needs. Nationally, “7,800 jobs will be created for every $1 billion spent on freight rail,” she says, pointing to a recently released survey by the BlueGreen Alliance, a coalition of steelworkers and environmentalists. The study, Full Speed Ahead: Creating Green Jobs Through Freight Rail Expansion, notes that in addition to the jobs directly created by spending on freight rail expansion, it would also create or sustain between 12,300 and 26,600 more
if you factor in re-spending by freight rail and supporting industry employees. “Jobs in freight rail really are green jobs, because rail is much more efficient than trucking and traditional highway transportation,” adds Bowden Quinn, the Conservation Program Coordinator of the Sierra Club Hoosier Chapter. “By implementing smart policies, like tax credits for capital investment in rail, we will create and preserve jobs in Indiana and leave a better economy and environment for future generations.” According to Tom Conway, Region-
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NWI Forum Expands, Names New Leadership
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al Program Manager for the BlueGreen Alliance in Indiana, one of the most important things that Congress could do to encourage freight rail expansion is to pass the Freight Rail Construction Capacity Expansion Act, which would provide a tax credit covering 25 percent of the cost of qualifying rail expansion. Doing so, he says, would mean that railroads would be able to invest even more in building their rail networks.
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After serving nearly a year as Interim President, the Northwest Indiana Forum has named Mark Maassel President and CEO. A former President of NIPSCO, Maassel has worked in Northwest Indiana for more than 30 years. He has long been active in promoting regional efforts to grow the economy of Northwest Indiana and also has served and continues to serve on numerous notfor-profit boards. In addition to naming Maassel to its top leadership post, the Forum is also expanding its reach beyond Lake, Porter, La Porte and Starke Counties to include Newton, Jasper and Pulaski Counties. This change allows the Forum to represent Northwest Indiana in its entirety, matching the service areas of the Indiana Economic Development Corporation Northwest Region, the Center of Workforce Innovation Region 1 and other partner organizations. “We are extremely pleased to now expressly represent the whole of Northwest Indiana. Doing so affords us larger offerings and a wider variety of sites, buildings and business/industrial parks for companies looking to establish, relocate or consolidate operations in the region,” Maassel says. “Speaking collectively as a region, our voice becomes stronger and our actions more effective, be they in economic development, environmental affairs or public policy issues.” The Northwest Indiana Forum is the regional voice for the business community and provides a full package of services that promote economic development and retention of quality jobs. www.buildingindiananews.com
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opinion page An Out “Pour” of Generosity Communities are built one small step at a time, and there’s no better time to start taking those step than now.
By David Kosinski, Contracts & Procurement Administrator, The Ross Group
n today’s tough economy, it’s hard for people to find the time or the financial ability to donate to noteworthy causes. According to the Nonprofit Research Collaborative, an industry coalition which includes the Center on Philanthropy at Indiana University, just 36 percent of charities reported an increase in donations in the first nine months of 2010 as compared to the same period in 2009. The good news was that the number reporting a decrease in donations dropped from 51 percent in the first nine months of 2009 to 37 percent in the first three quarters of 2010. Still, one-fifth of charities surveyed said they would have to trim budgets in 2011, primarily by reducing services and operating hours. Of course, this comes at a time when demand for their services has grown dramatically: 78 percent human services nonprofits, and 66 percent of charities overall, reported an increased demand for their services in 2010. Looking at those numbers can produce an urge to just throw up your hands. Everyone would love to help, but the size of the challenge and the lack of time and money make just about anything seem like a drop in the bucket. But put in enough drops, and that bucket
will slowly fill up – and to the people who benefit, those drops won’t seem small at all. One example: on October 9, 2010 at Karst Farms Park (Play Escape) in Bloomington, a group of individuals decided to get together to help put smiles on the faces of the handicap children in the community. In an effort lead by Ross Pangere, President of The Ross Group, Mike Summers, Business Manager for Ironworker Local 395 in Northwest Indiana, and Lexi Orfanos, Member of the Monroe County Access to Recreation Endowment Advisory Committee, this group donated their time to a concrete pour to make the park accessible to the handicap children in the area. This project was the definition a team
effort. The materials needed for the project were donated by Pangere and Orfanos, while Summers was instrumental in organizing the labor for the pour. His effort in finding expert tradesmen to donate their time was aided by Ron Morin, Business Agent for Concrete Finishers Local 692 out of Indianapolis. Local 692 Union members spent the day donating their time and expertise to this noteworthy cause. Monroe County Park employees were responsible for all the prep work on the site and R.L. McCoy made the pump truck available for use. This concrete pour has made it possible for handicap children to enjoy the park without the fear of accessibility. When asked what the highlight of this project was, Pangere stated, “the teamwork and willingness to donate by everyone involved.” Karst Farms Park (Play Escape) is located in Monroe County and is now open for all to enjoy. This certainly wasn’t the biggest project we had ever done, and it won’t win any awards, but it was very satisfying nonetheless. Take a look around your own community – there are plenty more where this came from. If we all put a drop in the bucket, it will be overflowing soon enough.
The opinions expressed in this article are the views of the authors. We welcome your response. If you are interested in writing an opinion piece, send an e-mail to email@example.com.
We have issues. OSHA. Contracting compliance. Worker’s compensation. It’s difficult to stay current on the latest construction industry issues and still run your day-to-day operations. So, who has the time to monitor it all? We do. Introducing The Monitor from the Indiana, Illinois and Iowa Foundation For Fair Contracting. It’s a free, quarterly newsletter designed to keep labor, management and public bodies in stride with the biggest issues facing our industry.
Register now at www.iiiffc.org. You can’t afford to miss an issue.
Trustees David A. Fagan—Chairman Financial Secretary—IUOE, Local 150
Marshall Douglas— Trustee Treasurer—IUOE Local 150
James Sieracki—Secretary President—Central Teaming Company, Inc.
David Snelten—Trustee President—Excavators, Inc.
James M. Sweeney—Trustee President—Business Manager—IUOE Local 150 James J. McNally—Trustee Vice President—IUOE Local 150
Larrie Reiling— Trustee Assoc. Contractors of Quad Cities Gene Yarkie—Trustee Regional Vice President—Reith-Riley Construction Co., Inc. Marc R. Poulos—Executive Director
Steven M. Cisco—Trustee Rec – Corresponding Secretary—IUOE Local 150
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